Document:

Exhibit 10.8

 

EXECUTION VERSION

 

PLEDGE AND SECURITY AGREEMENT (SECOND LIEN)

 

 

dated as of February 22, 2008

 

 

between

 

 

EACH OF THE GRANTORS PARTY HERETO

 

 

and

 

LEHMAN COMMERCIAL PAPER INC.,

 

as Collateral Agent

 

 

TABLE OF CONTENTS

 

	
   

  	
  PAGE

  
	
  SECTION 1.         DEFINITIONS;
  GRANT OF SECURITY

  	
  1

  
	
  1.1

  	
  General Definitions

  	
  1

  
	
  1.2

  	
  Definitions; Interpretation

  	
  7

  
	
  1.3

  	
  Intercreditor Agreement

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 2.         GRANT
  OF SECURITY

  	
  8

  
	
  2.1

  	
  Grant of Security

  	
  8

  
	
  2.2

  	
  Certain Limited Exclusions

  	
  9

  
	
   

  	
   

  
	
  SECTION 3.         SECURITY
  FOR OBLIGATIONS; GRANTORS REMAIN LIABLE

  	
  10

  
	
  3.1

  	
  Security for Obligations

  	
  10

  
	
  3.2

  	
  Continuing Liability Under Collateral

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 4.         CERTAIN
  PERFECTION REQUIREMENTS

  	
  10

  
	
  4.1

  	
  Delivery Requirements

  	
  10

  
	
  4.2

  	
  Control Requirements

  	
  11

  
	
  4.3

  	
  Intellectual Property Recording
  Requirements

  	
  12

  
	
  4.4

  	
  Other Actions

  	
  13

  
	
  4.5

  	
  Timing and Notice

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 5.         REPRESENTATIONS
  AND WARRANTIES

  	
  14

  
	
  5.1

  	
  Grantor Information & Status

  	
  14

  
	
  5.2

  	
  Collateral Identification, Special
  Collateral

  	
  14

  
	
  5.3

  	
  Reserved

  	
  15

  
	
  5.4

  	
  Status of Security Interest

  	
  15

  
	
  5.5

  	
  Goods & Receivables

  	
  16

  
	
  5.6

  	
  Pledged Equity Interests, Investment
  Related Property

  	
  17

  
	
  5.7

  	
  Intellectual Property

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 6.         COVENANTS
  AND AGREEMENTS

  	
  18

  
	
  6.1

  	
  Grantor Information & Status –
  Pledge Supplement

  	
  18

  
	
  6.2

  	
  Collateral Identification; Special
  Collateral

  	
  18

  
	
  6.3

  	
  Ownership of Collateral and Absence of
  Other Liens

  	
  19

  
	
  6.4

  	
  Status of Security Interest

  	
  19

  
	
  6.5

  	
  Goods & Receivables

  	
  19

  
	
  6.6

  	
  Pledged Equity Interests, Investment
  Related Property

  	
  21

  
	
  6.7

  	
  Intellectual Property

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 7.         ACCESS;
  RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS

  	
  24

  
	
  7.1

  	
  Intentionally Omitted

  	
  24

  
	
  7.2

  	
  Further Assurances

  	
  24

  
	
  7.3

  	
  Additional Grantors

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 8.         COLLATERAL
  AGENT APPOINTED ATTORNEY-IN-FACT

  	
  25

  
	
  8.1

  	
  Power of Attorney

  	
  25

  
	
  8.2

  	
  No Duty on the Part of Collateral
  Agent or Secured Parties

  	
  26

  

 

i

 

	
  SECTION 9.         REMEDIES

  	
  27

  
	
  9.1

  	
  Generally

  	
  27

  
	
  9.2

  	
  Application of Proceeds

  	
  28

  
	
  9.3

  	
  Sales on Credit

  	
  28

  
	
  9.4

  	
  Investment Related Property

  	
  29

  
	
  9.5

  	
  Grant of Intellectual Property License

  	
  29

  
	
  9.6

  	
  Intellectual Property

  	
  29

  
	
  9.7

  	
  Cash Proceeds; Deposit Accounts

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 10.         COLLATERAL
  AGENT

  	
  31

  
	
   

  	
   

  
	
  SECTION 11.         CONTINUING
  SECURITY INTEREST; TRANSFER OF LOANS

  	
  32

  
	
   

  	
   

  
	
  SECTION 12.         STANDARD
  OF CARE; COLLATERAL AGENT MAY PERFORM

  	
  32

  
	
   

  	
   

  
	
  SECTION 13.         MISCELLANEOUS

  	
  33

  
	
   

  	
   

  
	
  SCHEDULE 5.1
  — GENERAL INFORMATION

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 5.2
  — COLLATERAL IDENTIFICATION

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 5.4 — FINANCING STATEMENTS

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 5.5
  — LOCATION OF EQUIPMENT AND INVENTORY

  	
   

  
	
   

  	
   

  
	
  EXHIBIT A —
  PLEDGE SUPPLEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT B —
  UNCERTIFICATED SECURITIES CONTROL AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT C —
  SECURITIES ACCOUNT CONTROL AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT D —
  DEPOSIT ACCOUNT CONTROL AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT E —
  TRADEMARK SECURITY AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT F —
  COPYRIGHT SECURITY AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT G —
  PATENT SECURITY AGREEMENT

  	
   

  

 

ii

 

This PLEDGE AND SECURITY AGREEMENT (Second Lien),
dated as of February 22, 2008 (this “Agreement”), between Aldabra
Holding Sub LLC, a Delaware limited liability company (“Holdings”),
Aldabra Sub LLC, a Delaware limited liability company (“Aldabra”
and, prior to the BPH Merger (as defined below), the “Borrower”,
to be merged (the “BPH Merger”)
with and into Boise Paper Holdings, L.L.C., a Delaware limited liability
company (“BPH” and, after the BPH Merger, the “Borrower”))
and each of the undersigned, whether as an original signatory hereto or as an
Additional Grantor (as herein defined) (other than the Collateral Agent,
collectively, the “Grantors” and
each, a “Grantor”),
and Lehman Commercial Paper Inc., as collateral agent for the Secured Parties
(as herein defined) (in such capacity as collateral agent, together with its
successors and permitted assigns, the “Collateral Agent”).

 

RECITALS:

 

WHEREAS,
reference is made to that certain Second Lien Credit and Guaranty Agreement,
dated as of the date hereof (as it may be amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among Borrower, Holdings, certain
subsidiaries of Aldabra, as Guarantors, the lenders party thereto from time to
time (the “Lenders”), Lehman Commercial Paper Inc., as
Administrative Agent and Collateral Agent, Goldman Sachs Credit Partners L.P.,
as Syndication Agent, and Lehman Brothers Inc., as Documentation Agent;

 

WHEREAS,
in consideration of the extensions of credit and other accommodations of
Lenders as set forth in the Credit Agreement, each Grantor has agreed to secure
such Grantor’s Obligations under the Credit Documents as set forth herein;

 

WHEREAS,
in order to secure the obligations under the First Lien Credit Agreement, Hedge
Agreements and (if requested by Borrower) Treasury Services Agreements,
Grantors are concurrently granting to the First Lien Collateral Agent for the
benefit of the holders of such obligations, a first priority security interest
in the Collateral (it being understood that the relative rights and priorities
of the grantees in respect of the Collateral are governed by the Intercreditor
Agreement, dated as of the date hereof (as amended, restated, supplemented or
otherwise modified from time to time, the “Intercreditor Agreement”),
among Borrower, the First Lien Collateral Agent and the Collateral Agent); and

 

NOW,
THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, each Grantor and the
Collateral Agent agree as follows:

 

SECTION 1.                            DEFINITIONS;
GRANT OF SECURITY.

 

1.1          General Definitions.  In this Agreement, the following terms shall
have the following meanings:

 

“Additional Grantors”
shall have the meaning assigned in Section 7.3.

 

“Agreement” shall
have the meaning set forth in the preamble.

 

“Aldabra” shall have
the meaning set forth in the preamble.

 

“Borrower” shall
have the meaning set forth in the preamble.

 

 

“BHK” shall have the
meaning assigned in Section 2.2.

 

“BPH” shall have the
meaning set forth in the preamble.

 

“BPH Merger” shall
have the meaning set forth in the preamble.

 

“Cash Proceeds”
shall have the meaning assigned in Section 9.7.

 

“Collateral” shall
have the meaning assigned in Section 2.1.

 

“Collateral Account”
shall mean any account established by the Collateral Agent.

 

“Collateral Agent”
shall have the meaning set forth in the preamble.

 

“Collateral Records”
shall mean books, records, ledger cards, files, correspondence, customer lists,
blueprints, technical specifications, manuals, electronic records, computer
printouts, tapes, disks and similar items that at any time evidence or contain
information relating to any of the Collateral or are otherwise necessary or
helpful in the collection thereof or realization thereupon.

 

“Collateral Support”
shall mean all property (real or personal) assigned, hypothecated or otherwise
securing any Collateral and shall include any security agreement or other
agreement granting a lien or security interest in such real or personal
property.

 

“Control” shall mean:  (1) with respect to any Deposit Accounts,
control within the meaning of Section 9-104 of the UCC, (2) with
respect to any Securities Accounts, Security Entitlements, Commodity Contracts
or Commodity Accounts, control within the meaning of Section 9-106 of the
UCC, (3) with respect to any Uncertificated Securities, control within the
meaning of Section 8-106(c) of the UCC, (4) with respect to any
Certificated Security, control within the meaning of Section 8-106(a) or
(b) of the UCC, (5) with respect to any Electronic Chattel Paper,
control within the meaning of Section 9-105 of the UCC and (6) with
respect to Letter of Credit Rights, control within the meaning of Section 9-107
of the UCC.

 

“Copyright Licenses”
shall mean any and all agreements providing for the grant of any right in or to
Copyrights (whether such Grantor is licensee or licensor thereunder) including,
without limitation, each agreement referred to in Schedule 5.2(II) under
the heading “Copyright Licenses” (as such schedule may be amended or
supplemented from time to time), and all rights under any such agreement.

 

“Copyrights” shall mean
all United States and foreign copyrights, including but not limited to
copyrights in software and all rights in and to databases, and all Mask Works
(as defined under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered
or unregistered, moral rights, reversionary interests, termination rights, and,
with respect to any and all of the foregoing: (i) all registrations and
applications therefor including, without limitation, the registrations and
applications referred to on Schedule 5.2(II) under the heading “Copyrights”
(as such schedule may be amended or supplemented from time to time), (ii) all
extensions and renewals thereof, (iii) all rights corresponding thereto
throughout the world, (iv) all rights to sue for past, present and future
infringements thereof, and (v) all Proceeds of the foregoing, now and
hereinafter due and/or payable thereunder, including, without limitation,
royalties, income, payments, claims, damages and proceeds of suit.

 

2

 

“Credit Agreement”
shall have the meaning set forth in the recitals.

 

“Discharge of First Lien Obligations” shall have the meaning
set forth in the Intercreditor Agreement.

 

“Excluded Asset” shall mean any asset of any
Grantor excluded from the security interest hereunder by virtue of Section 2.2
hereof but only to the extent, and for so long as, so excluded thereunder.

 

“Grantors” shall
have the meaning set forth in the preamble.

 

“Holdings” shall
have the meaning set forth in the preamble.

 

“Insurance” shall
mean (i) all insurance policies covering any or all of the Collateral
(regardless of whether the Collateral Agent is the loss payee thereof) and (ii) any
key man life insurance policies.

 

“Intellectual Property”
shall mean, collectively, the Copyrights, the Patents, the Trademarks, the
Trade Secrets, the Internet domain names, and the rights granted to any of the
Grantors under the Intellectual Property Licenses.

 

“Intellectual Property Licenses” shall mean,
collectively, the Copyright Licenses, the Patent Licenses, the Trade Secret
Licenses and the Trademark Licenses.

 

“Intercreditor Agreement”
shall have the meaning set forth in the recitals hereto.

 

“Investment Accounts”
shall mean the Collateral Account, Securities Accounts, Commodities Accounts and Deposit Accounts.

 

“Investment Related Property”
shall mean:  (i) all “investment
property” (as such term is defined in Article 9 of the UCC) and (ii) all
of the following (regardless of whether classified as investment property under
the UCC): all Pledged Equity Interests, Pledged Debt and the Investment
Accounts.

 

“Lenders” shall have
the meaning set forth in the recitals.

 

 “Material Intellectual Property”
shall mean any Intellectual Property of a Grantor (including, without
limitation, the rights granted to a Grantor under the Material Trademark
License) which is included in the Collateral and is material to the business of
such Grantor.

 

“Material Trademark License” shall mean that
certain Intellectual Property License Agreement by and between Boise Cascade,
LLC as licensor and Boise Paper Holdings, L.L.C., as licensee, dated September 7,
2007 (as it may be from time to time amended, restated, modified or
supplemented).

 

“Patent Licenses”
shall mean all agreements providing for the grant of any right in or to Patents
(whether such Grantor is licensee or licensor thereunder) including, without
limitation, each agreement referred to in Schedule 5.2(II) under the
heading “Patent Licenses” (as

 

3

 

such schedule may be amended or supplemented from time to time), and
all rights under any such agreement.

 

“Patents”
shall mean all United States and foreign patents and certificates of invention,
or similar industrial property rights, and applications for any of the
foregoing, including, but not limited to: (i) each patent and patent
application referred to on Schedule 5.2(II) hereto under the heading “Patents”
(as such schedule may be amended or supplemented from time to time), (ii) all
reissues, divisions, continuations, continuations-in-part, extensions,
renewals, and reexaminations thereof, (iii) all rights corresponding
thereto throughout the world, (iv) all inventions and improvements
described therein, (v) all rights to sue for past, present and future
infringements thereof, (vi) all claims, damages, and proceeds of suit
arising therefrom, and (vii) all Proceeds of the foregoing, now and
hereinafter due and/or payable thereunder, including, without limitation,
royalties, income, payments, claims, damages, and proceeds of suit.

 

“Pledge Supplement”
shall mean any supplement to this agreement in substantially the form of Exhibit A.

 

“Pledged Debt” shall
mean all Indebtedness for borrowed money owed to such Grantor, including,
without limitation, all Indebtedness described on Schedule 5.2(I) under
the heading “Pledged Debt” (as such schedule may be amended or supplemented
from time to time), issued by the obligors named therein, the instruments
evidencing such Indebtedness, and all interest, cash, instruments and other
property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any such Indebtedness.

 

“Pledged Equity Interests”
shall mean all Pledged Stock, Pledged LLC Interests, Pledged Partnership
Interests and Pledged Trust Interests.

 

“Pledged LLC Interests”
shall mean all interests directly owned by a Grantor in any limited liability
company including, without limitation, all limited liability company interests
listed on Schedule 5.2(I) under the heading “Pledged LLC Interests” (as
such schedule may be amended or supplemented from time to time) and the
certificates, if any, representing such limited liability company interests and
any direct interest of such Grantor on the books and records of such limited
liability company or on the books and records of any securities intermediary
pertaining to such interest and all dividends, distributions, cash, warrants,
rights, options, instruments, securities and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such limited liability company interests.

 

“Pledged Partnership Interests”
shall mean all interests directly owned by a Grantor in any general
partnership, limited partnership, limited liability partnership or other
partnership including, without limitation, all partnership interests listed on
Schedule 5.2(I) under the heading “Pledged Partnership Interests” (as such
schedule may be amended or supplemented from time to time) and the
certificates, if any, representing such partnership interests and any direct
interest of such Grantor on the books and records of such partnership or on the
books and records of any securities intermediary pertaining to such interest
and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such partnership interests.

 

“Pledged Stock”
shall mean all shares of capital stock directly owned by such Grantor,
including, without limitation, all shares of capital stock described on
Schedule 5.2(I)

 

4

 

under the heading “Pledged Stock” (as such schedule may be amended or
supplemented from time to time), and the certificates, if any, representing
such shares and any direct interest of such Grantor in the entries on the books
of the issuer of such shares or on the books of any securities intermediary
pertaining to such shares, and all dividends, distributions, cash, warrants,
rights, options, instruments, securities and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such shares.

 

“Pledged Trust Interests”
shall mean all interests directly owned by a Grantor in a Delaware business
trust or other direct trust including, without limitation, all direct trust
interests listed on Schedule 5.2(I) under the heading “Pledged Trust
Interests” (as such schedule may be amended or supplemented from time to time)
and the certificates, if any, representing such trust interests and any direct
interest of such Grantor on the books and records of such trust or on the books
and records of any securities intermediary pertaining to such interest and all
dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received receivable
or otherwise distributed in respect of or in exchange for any or all of such
trust interests.

 

“Receivables” shall
mean all rights to payment, whether or not earned by performance, for goods or
other property sold, leased, licensed, assigned or otherwise disposed of, or
services rendered or to be rendered, including, without limitation all such
rights constituting or evidenced by any Account, Chattel Paper, Instrument,
General Intangible or Investment Related Property, together with all of Grantor’s
rights, if any, in any goods or other property giving rise to such right to
payment and all Collateral Support and Supporting Obligations related thereto
and all Receivables Records.

 

“Receivables Records”
shall mean (i) all original copies of all documents, instruments or other
writings or electronic records or other Records evidencing the Receivables, (ii) all
books, correspondence, credit or other files, Records, ledger sheets or cards,
invoices, and other papers relating to Receivables, including, without
limitation, all tapes, cards, computer tapes, computer discs, computer runs,
record keeping systems and other papers and documents relating to the
Receivables, whether in the possession or under the control of Grantor or any
computer bureau or agent from time to time acting for Grantor or otherwise, (iii) all
evidences of the filing of financing statements and the registration of other
instruments in connection therewith, and amendments, supplements or other
modifications thereto, notices to other creditors, secured parties or agents
thereof, and certificates, acknowledgments, or other writings, including,
without limitation, lien search reports, from filing or other registration
officers, (iv) all credit information, reports and memoranda relating
thereto and (v) all other written, electronic or other tangible forms of
information related in any way to the foregoing or any Receivable.

 

“Secured Obligations”
shall have the meaning assigned in Section 3.1.

 

“Secured Parties”
shall mean the Agents and the Lenders, and shall include, without limitation,
all former Agents and Lenders to the extent that any Obligations owing to such
Persons were incurred while such Persons were Agents and Lenders and such
Obligations (other than contingent obligations) have not been paid or satisfied
in full.

 

“Trademark Licenses”
shall mean any and all agreements providing for the grant of any right in or to
Trademarks (whether such Grantor is licensee or licensor thereunder) including,
without limitation, each agreement referred to on Schedule 5.2(II) under
the heading

 

5

 

“Trademark Licenses” (as such schedule may be amended or supplemented
from time to time), and all rights under such agreement.

 

“Trademarks” shall
mean all registered and unregistered, common law, state, United States,
multinational, and foreign trademarks, trade names, corporate names, company
names, business names, fictitious business names, service marks, certification
marks, collective marks, logos, other source or business identifiers, designs
and general intangibles of a like nature, all registrations and applications
for any of the foregoing including, but not limited to: (i) the
registrations and applications referred to in Schedule 5.2(II) under the
heading “Trademarks” (as such schedule may be amended or supplemented from time
to time), (ii) all extensions or renewals of any of the foregoing, (iii) all
of the goodwill of the business connected with the use of and symbolized by the
foregoing, (iv) the right to sue for past, present and future infringement
or dilution of any of the foregoing or for any injury to goodwill, and (v) all
Proceeds of the foregoing, now and hereinafter due and/or payable thereunder,
including, without limitation, royalties, income, payments, claims, damages,
and proceeds of suit.

 

“Trade Secret Licenses”
shall mean any and all written agreements providing for the grant of any right
in or to Trade Secrets (whether such Grantor is licensee or licensor thereunder)
and all rights under any such agreement, and rights under such agreement.

 

“Trade Secrets”
shall mean all trade secrets and all other confidential or proprietary
information and know-how whether or not such Trade Secret has been reduced to a
writing or other tangible form, including all documents and things embodying,
incorporating, or referring in any way to such Trade Secret, including but not
limited to: (i) the right to sue for past, present and future
misappropriation or other violation of any Trade Secret, and (ii) all
Proceeds of the foregoing, including, without limitation, royalties, income,
payments, claims, damages, and proceeds of suit.

 

“UCC” shall mean the
Uniform Commercial Code as in effect from time to time in the State of New
York; provided, however, that in the event that, by reason of mandatory
provisions of law, any or all of the perfection or priority of, or remedies
with respect to, any Collateral is governed by the Uniform Commercial Code as
enacted and in effect in a jurisdiction other than the State of New York, the
term “UCC” shall mean the Uniform Commercial Code as enacted and in effect in
such other jurisdiction solely for purposes of the provisions hereof relating
to such perfection, priority or remedies.

 

“U.S. Copyrights” shall
mean copyrights that are registered with, or for which an application for
registration has been filed with, the United States Copyright Office.

 

“U.S. Patents” shall
mean patents that have been issued by, or for which an application for a patent
has been filed with, the United States Patent and Trademark Office.

 

“U.S. Registered Intellectual Property”
shall mean the U.S. Copyrights, the U.S. Patents, the Internet domain names,
and the U.S. Trademarks.

 

“U.S. Trademarks”
shall mean trademarks that have been registered by, or for which an application
for registration has been filed with, the United States Patent and Trademark
Office.

 

“United States” or “U.S.”
shall mean the United States of America.

 

6

 

1.2          Definitions; Interpretation.

 

(a)           In this Agreement, the following
capitalized terms shall have the meaning given to them in the UCC (and, if
defined in more than one Article of the UCC, shall have the meaning given
in Article 9 thereof): Account, Account Debtor, As-Extracted Collateral,
Bank, Certificated Security, Chattel Paper, Consignee, Consignment, Consignor,
Commercial Tort Claims, Commodity Account, Commodity Contract, Deposit Account,
Document, Entitlement Order, Equipment, Electronic Chattel Paper, Farm
Products, Fixtures, General Intangibles, Goods, Health-Care-Insurance
Receivable, Instrument, Inventory, Letter of Credit Right, Manufactured Home,
Money, Payment Intangible, Proceeds, 
Record, Securities Account, Securities Intermediary, Security Certificate,
Security Entitlement, Supporting Obligations, Tangible Chattel Paper and
Uncertificated Security.

 

(b)           All other capitalized terms used
herein (including the preamble and recitals hereto) and not otherwise defined
herein shall have the meanings ascribed thereto in the Credit Agreement.  The incorporation by reference of terms
defined in the Credit Agreement shall survive any termination of the Credit
Agreement until this Agreement is terminated as provided in Section 11
hereof.   Any of the terms defined herein
may, unless the context otherwise requires, be used in the singular or the
plural, depending on the reference. 
References herein to any Section, Appendix, Schedule or Exhibit shall
be to a Section, an Appendix, a Schedule or an Exhibit, as the case may be,
hereof unless otherwise specifically provided. 
Any references in this Agreement to “Articles” and/or “Sections” which
make reference to any particular piece of legislation or statute, including,
without limitation, the Bankruptcy Code and/or the UCC shall for greater
certainty mean the equivalent section in the applicable piece of legislation to
the extent that the context implies reference to such other similar or
equivalent legislation as in effect from time to time in any other applicable
jurisdiction, as applicable.  Section headings
in this Agreement are included herein for convenience of reference only and
shall not constitute a part of this Agreement for any other purpose or be given
any substantive effect.  The use herein
of the word “include” or “including”, when following any general statement,
term or matter, shall not be construed to limit such statement, term or matter
to the specific items or matters set forth immediately following such word or
to similar items or matters, whether or not non-limiting language (such as “without
limitation” or “but not limited to” or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or
matters that fall within the broadest possible scope of such general statement,
term or matter.  The terms lease and
license shall include sub-lease and sub-license, as applicable.  If any conflict or inconsistency exists between
this Agreement and the Credit Agreement, the Credit Agreement shall govern.  All references herein to provisions of the
UCC shall include all successor provisions under any subsequent version or
amendment to any Article of the UCC.

 

1.3          Intercreditor
Agreement.  All
rights and obligations of the Collateral Agent under this Agreement shall be
subject to the Intercreditor Agreement. 
Notwithstanding anything to the contrary contained herein, the Liens and
security interests granted to the Collateral Agent pursuant to this Agreement
and the exercise of any right or remedy by the Collateral Agent hereunder are
subject in all respects to the provisions of the Intercreditor Agreement.  In the event of any conflict between the
terms of the Intercreditor Agreement and this Agreement, such conflict shall be
resolved in accordance with Section 8.1 of the Intercreditor
Agreement.  Any reference in this
Agreement to “second priority lien” or words of similar effect in describing
the security interests created hereunder shall be understood to refer to such
priority as set forth in the Intercreditor Agreement.  All representations, warranties and covenants
in this Agreement shall be subject to the provisions and qualifications set
forth in this Section 1.3.  All provisions of this

 

7

 

Agreement and the other Credit Documents (including, without
limitation, all further assurances provisions, conditions precedent, grants of
power of attorney, representations, provisions regarding application of
proceeds, warranties, covenants (both affirmative and negative), defaults,
events of default and other agreements herein and therein) shall be deemed to
be modified to the extent necessary to recognize that First Lien Collateral
Agent holds a Lien senior and prior to that of the Collateral Agent against the
Collateral and it is hereby expressly understood that any covenants of any
Grantor contained herein to (a) deliver Collateral to the Collateral
Agent, (b) comply with any instruction of the Collateral Agent with
respect to the Collateral or (c) take steps to better the quality of
perfection of the Collateral Agent in the Collateral shall be expressly subject
to the Intercreditor Agreement, and it is further understood that the failure
of any Grantor to comply with the terms and conditions hereof or thereof shall
not cause any Default or Event of Default if such compliance would have been
inconsistent with the Intercreditor Agreement.

 

SECTION 2.         GRANT
OF SECURITY.

 

2.1          Grant of Security.  Each
Grantor hereby grants to the Collateral Agent for its benefit and for the
benefit of the Secured Parties a security interest in and continuing lien on
all of such Grantor’s right, title and interest in, to and under all personal
property of such Grantor including, but not limited to the following, in each
case whether now owned or existing or hereafter acquired or arising and
wherever located (all of which being hereinafter collectively referred to as
the “Collateral”):

 

(a)           Accounts;

 

(b)           Chattel Paper (including Electronic Chattel
Paper);

 

(c)           Documents;

 

(d)           General Intangibles;

 

(e)           Goods (including, without limitation,
Inventory and Equipment);

 

(f)            Instruments;

 

(g)           Insurance;

 

(h)           Intellectual Property;

 

(i)            Investment
Related Property (including, without limitation, Deposit Accounts) and
certificates of deposit;

 

(j)            letters of credit and Letter of Credit
Rights;

 

(k)           Money;

 

(l)            Receivables and Receivable Records;

 

(m)          Commercial Tort Claims now or hereafter
described on Schedule 5.2;

 

8

 

(n)           to the extent not otherwise included above,
all other personal property of any kind and all Collateral Records, Collateral
Support and Supporting Obligations relating to any of the foregoing; and

 

(o)           to the extent not otherwise included above,
all Proceeds, products, accessions, rents and profits of or in respect of any
of the foregoing.

 

2.2          Certain Limited Exclusions. 
Notwithstanding anything herein to the contrary, in no event shall the
Collateral include or the security interest granted under Section 2.1
hereof attach to (a) any lease, license, contract, property rights or
agreement to which any Grantor is a party, any of its rights or interests
thereunder or any property to which Grantor has any right, title or interest
which is subject to any such lease, license, contract, property right or
agreement if and for so long as the grant of such security interest (i) shall
constitute or result in the abandonment, invalidation or unenforceability of
any right, title or interest of any Grantor therein, (ii) would give any
other party to such lease, license, contract, property right or agreement the
right to terminate its obligations thereunder, (iii) would cause the
forfeiture or require the transfer of any property subject to such lease,
license, contract, property right or agreement or (iv) is prohibited by or
in violation of (1) any law, rule or regulation applicable to such
Grantor or governing any such lease, license, contract, property right or
agreement, or (2) a term, provision or condition of any such lease, license,
contract, property right or agreement (unless such law, rule, regulation, term,
provision or condition would be rendered ineffective with respect to the
creation of the security interest hereunder pursuant to Sections 9-406, 9-407,
9-408 or 9-409 of the UCC (or any successor provision or provisions) of any
relevant jurisdiction or any other applicable law (including the Bankruptcy
Code) or principles of equity); provided however that the Collateral shall
include (and such security interest shall attach) immediately at such time as (w) the
condition causing such abandonment, invalidity or unenforceability, (x) the
right to terminate, (y) the condition causing such forfeiture or transfer
or (z) the contractual or legal prohibition, in each case, shall no longer
be applicable and to the extent severable, shall attach immediately to any
portion of such lease, license, contract, property right or agreement not
subject to the prohibitions specified in (i), (ii), (iii) or (iv) above;
provided further that the exclusions referred to in clause (a) of this Section 2.2
shall not include any Proceeds of any such lease, license, contract, property
right or agreement; (b) any of the outstanding Equity Interests of a
first-tier Foreign Subsidiary in excess of 65% of the voting power of all
classes of Equity Interests in such Foreign Subsidiary entitled to vote;
provided that immediately upon the amendment of the Internal Revenue Code to
allow the pledge of a greater percentage of the voting power of Equity
Interests in such first-tier Foreign Subsidiary without adverse tax
consequences, the Collateral shall include, and the security interest granted
by each Grantor shall attach to, such greater percentage of Equity Interests of
such Foreign Subsidiary; (c) all Equity Interests of Foreign Subsidiaries
which are not first-tier Foreign Subsidiaries; (d) Equipment owned by any
Grantor on the date hereof or hereafter acquired that is subject to a Lien
securing a purchase money obligation or capitalized lease obligation permitted
to be incurred pursuant to the Credit Agreement, for so long as the contract or
other agreement in which such Lien is granted (or the documentation providing
for such purchase money obligation or capitalized lease obligation) validly
prohibits the creation of any other Lien on such Equipment; (e) any
interest in joint ventures and non-wholly owned Subsidiaries which cannot be
pledged without the consent of one or more third parties; (f) any
intent-to-use trademark application prior to the filing and acceptance by the
United States Patent and Trademark Office of a “Statement of Use” or “Amendment
to Allege Use” with respect thereto, to the extent that, and solely during the
period, in which, the grant of a security interest therein would impair the
validity or enforceability of such intent-to-use trademark application under
applicable law; (g) any motor vehicles, trailers, tractors and other like
property title thereto 

 

9

 

which
is governed or evidenced by a certificate of title or ownership or similar
document; (h) Equity Interests in Boise Hong Kong Limited (“BHK”) so long as BHK does not account for
more than $2,500,000 of Consolidated Adjusted EBITDA during any Fiscal Year of
Borrower; (i) any Margin Stock held by any Credit Party; and (j) any
assets with respect to which the Collateral Agent and the Borrower shall
reasonably determine that the cost of creating and/or perfecting a security
interest therein is excessive in relation to the benefit to the Secured
Parties.  Notwithstanding anything
contained herein to the contrary, (x) except as otherwise provided for in
this Agreement, the Grantors shall not be required to take any action intended
to cause any Excluded Asset to constitute Collateral, (y) each defined
term used in describing types or categories of Collateral, including those used
in Sections 2.1 (a) through (o) above, shall be deemed to exclude all
Excluded Assets and (z) none of the representations, warranties and
covenants shall be deemed to apply to any property constituting Excluded
Assets.

 

SECTION 3.         SECURITY
FOR OBLIGATIONS; GRANTORS REMAIN LIABLE.

 

3.1          Security for Obligations.  This
Agreement secures, and the Collateral is collateral security for, the prompt
and complete payment or performance in full when due, whether at stated
maturity, by required prepayment, declaration, acceleration, demand or
otherwise (including the payment of amounts that would become due but for the
operation of the automatic stay under Section 362(a) of the Bankruptcy
Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all
Obligations with respect to every Grantor (the “Secured Obligations”).

 

3.2          Continuing Liability Under
Collateral.  Notwithstanding anything herein to the
contrary, (i) each  Grantor
shall remain liable for all obligations under the Collateral and nothing
contained herein is intended or shall be a delegation of duties to the
Collateral Agent or any Secured Party, (ii) each Grantor shall remain
liable under each of the agreements included in the Collateral, including,
without limitation, any agreements relating to Pledged Partnership Interests,
Pledged Trust Interests or Pledged LLC Interests, to perform all of the
obligations undertaken by it thereunder all in accordance with and pursuant to
the terms and provisions thereof and neither the Collateral Agent nor any
Secured Party shall have any obligation or liability under any of such
agreements by reason of or arising out of this Agreement or any other document
related thereto nor shall the Collateral Agent nor any Secured Party have any
obligation to make any inquiry as to the nature or sufficiency of any payment
received by it or have any obligation to take any action to collect or enforce
any rights under any agreement included in the Collateral, including, without
limitation, any agreements relating to Pledged Partnership Interests, Pledged
Trust Interests or Pledged LLC Interests, and (iii) the exercise by the
Collateral Agent of any of its rights hereunder shall not release any Grantor
from any of its duties or obligations under the contracts and agreements
included in the Collateral.

 

SECTION 4.         CERTAIN
PERFECTION REQUIREMENTS

 

4.1          Delivery Requirements.

 

(a)           With respect to any Certificated Securities
included in the Collateral, each Grantor shall deliver to the Collateral Agent
the Security Certificates evidencing such Certificated Securities duly indorsed
by an effective indorsement (within the meaning of Section 8-107 of the
UCC), or accompanied by share transfer powers or other instruments of transfer
duly endorsed by such an effective endorsement, in each case, to the Collateral
Agent or in blank; provided, however, that until the Discharge of First Lien
Obligations has occurred, the 

 

10

 

requirements
for delivery under this paragraph shall be deemed to have been satisfied by
delivery of such Collateral to the First Lien Collateral Agent.

 

(b)           With respect to any Instruments (including
any certificates of deposit) or Tangible Chattel Paper included in the
Collateral, each Grantor shall deliver to the Collateral Agent all such
Instruments or Tangible Chattel Paper to the Collateral Agent duly indorsed in
blank; provided, however, that such delivery requirement shall not apply to any
Instruments (including any certificates of deposit) or Tangible Chattel Paper
having a face amount of less than $500,000 individually or $1,000,000 in the
aggregate; provided, however, that until the Discharge of First Lien
Obligations has occurred, the requirements for delivery under this paragraph
shall be deemed to have been satisfied by delivery of such Collateral to the
First Lien Collateral Agent.

 

4.2          Control Requirements.

 

(a)           With respect to any Deposit Accounts
(including any certificates of deposit), Securities Accounts, Security
Entitlements, Commodity Contracts and Commodity Accounts included in the
Collateral, each Grantor shall cause the Collateral Agent to have Control
thereof (i) within 60 days after the Closing Date (or such longer period as
the Collateral Agent may approve) for any Deposit Accounts (including any
certificates of deposit), Securities Accounts, Security Entitlements, Commodity
Contracts and Commodity Accounts set forth on Schedule 5.2(I) as of the
Closing Date or (ii) within 60 days (or such longer period as the
Collateral Agent may approve) after the opening of or entering into any Deposit
Account (including any certificate of deposit), Securities Account, Security
Entitlement, Commodity Contract and Commodity Account; provided,
however, that such Control requirement shall not apply to any Deposit Accounts
(including any certificates of deposit), Securities Accounts, Security
Entitlements, Commodity Contracts and Commodity Accounts (A) exclusively
used for all or any of payroll, benefits, taxes, escrow, customs, insurance
impress accounts or other fiduciary purposes, (B) any disbursement account
that is a zero balance account, (C) maintained with a foreign bank or
foreign securities intermediary with a value of less than, or having funds or
other assets credited thereto with a value of less than, $10,000,000 in the
aggregate for all such Deposit Accounts (including certificates of deposit),
Securities Accounts, Security Entitlements, Commodity Contracts and Commodity
Accounts or (D) with a value of less than, or having funds or other assets
credited thereto with a value of less than (i) $5,000,000 in the aggregate
at the close of business on any day and (ii) $10,000,000 in the aggregate
at any time outstanding, in each case for all such Deposit Accounts (including
any certificates of deposit), Securities Accounts, Security Entitlements,
Commodity Contracts and Commodity Accounts. 
With respect to any such Securities Accounts or such Securities
Entitlements, such Control shall be accomplished by the Grantor causing the
Securities Intermediary maintaining such Securities Account or such Security
Entitlement to enter into an agreement substantially in the form of Exhibit C
hereto (or such other agreement in form and substance reasonably satisfactory
to the Collateral Agent) pursuant to which the Securities Intermediary shall
agree to comply with the First Lien Collateral Agent’s or the Collateral Agent’s,
as the case may be, “entitlement orders” without further consent by such
Grantor; provided, however, the Collateral Agent agrees that it shall not issue
any entitlement orders unless an Event of Default has occurred and is
continuing.  With respect to any Deposit
Account (including any certificate of deposit), each Grantor shall cause the
depositary institution maintaining such account to enter into an agreement
substantially in the form of Exhibit D hereto (or such other agreement in
form and substance reasonably satisfactory to the Collateral Agent), pursuant
to which the Bank shall agree to comply with the First Lien Collateral Agent’s
or the Collateral Agent’s, as the case may be, instructions with respect to
disposition of funds in such Deposit Account without further consent by such
Grantor; 

 

11

 

provided,
however, the Collateral Agent agrees that it shall not issue any entitlement
orders unless an Event of Default has occurred and is continuing.  With respect to any Commodity Accounts or
Commodity Contracts, each Grantor shall cause Control in favor of the
Collateral Agent in a manner reasonably acceptable to the Collateral Agent
(subject to the interest of the First Lien Collateral Agent until the Discharge
of First Lien Obligations has occurred).

 

(b)           If any Grantor at any time holds or acquires
an interest in any Uncertificated Security included in the Collateral (other
than any Uncertificated Securities credited to a Securities Account), each
Grantor shall cause the issuer of such Uncertificated Security to either (i) register
the Collateral Agent as the registered owner thereof (subject to the interest
of the First Lien Collateral Agent until the Discharge of First Lien
Obligations has occurred) on the books and records of the issuer or (ii) execute
an agreement substantially in the form of Exhibit B hereto (or such other
agreement in form and substance reasonably satisfactory to the Collateral
Agent), pursuant to which such issuer agrees to comply with the First Lien
Collateral Agent’s or the Collateral Agent’s, as the case may be, instructions
with respect to such Uncertificated Security without further consent by such
Grantor; provided, however, the Collateral Agent agrees that it shall not issue
any entitlement orders unless an Event of Default has occurred and is
continuing.

 

(c)           With respect to any Letter of Credit Rights
with respect to letters of credit with an undrawn face amount of more than
$500,000 individually or $1,000,000 in the aggregate included in the Collateral
(other than any Letter of Credit Rights constituting a Supporting Obligation
for a Receivable in which the Collateral Agent has a valid and perfected
security interest), Grantor shall cause the Collateral Agent to have Control
thereof by obtaining the written consent of each issuer of each related letter
of credit to the assignment of the proceeds of such letter of credit to (1) until
the Discharge of the First Lien Obligations has occurred, the First Lien
Collateral Agent and (2) thereafter, the Collateral Agent.

 

(d)           With respect any Electronic Chattel Paper
included in the Collateral, Grantor shall cause the Collateral Agent to have
Control thereof; provided, however, that such Control requirement shall not
apply to any Electronic Chattel Paper or transferable record having a face
amount of less than $500,000 individually or $1,000,000 in the aggregate.

 

4.3          Intellectual Property Recording
Requirements.

 

(a)           With respect to any Collateral consisting of
U.S. Patents constituting Material Intellectual Property, Grantor shall execute
and deliver to the Collateral Agent a Patent Security Agreement in
substantially the form of Exhibit G hereto (or a supplement thereto)
covering all such U.S. Patents in appropriate form for recordation with the
U.S. Patent and Trademark Office with respect to the security interest of the
Collateral Agent in such U.S. Patents.

 

(b)           With respect to any Collateral consisting of
U.S. Trademarks (which includes, without limitation, U.S. Trademarks for which
applications are pending that are not excluded under Section 2.2)
constituting Material Intellectual Property, Grantor shall execute and deliver
to the Collateral Agent a Trademark Security Agreement in substantially the
form of Exhibit E hereto (or a supplement thereto) covering all such U.S.
Trademarks in appropriate form for recordation with the U.S. Patent and
Trademark Office with respect to the security interest of the Collateral Agent
in such U.S. Trademarks.

 

12

 

(c)           With respect to any Collateral consisting of (i) U.S.
Copyrights constituting Material Intellectual Property and (ii) Copyright
Licenses of U.S. Copyrights constituting Material Intellectual Property, and
for which any Grantor is the exclusive licensee of such U.S. Copyrights,
Grantor shall execute and deliver to the Collateral Agent a Copyright Security
Agreement in substantially the form of Exhibit F hereto (or a supplement
thereto) covering all such Copyrights and Copyright Licenses in appropriate
form for recordation with the U.S. Copyright Office with respect to the security
interest of the Collateral Agent in such U.S. Copyrights.

 

(d)           With respect to Collateral consisting of
Patents, Trademarks or Copyrights constituting Material Intellectual Property
registered in any foreign country, if an Event of Default shall have occurred
and be continuing, Grantor shall promptly execute and deliver to the Collateral
Agent any documents reasonably requested by the Collateral Agent and take all
actions reasonably requested by the Collateral Agent and necessary to permit
the Collateral Agent to record its security interest against such Patents,
Trademarks, and Copyrights in the applicable filing office or registry in such
foreign country and to create, perfect, preserve and enforce a valid and second
priority security interest, subject to any Permitted Liens, in favor of the
Collateral Agent in all such foreign-registered Intellectual Property.

 

(e)           With respect to Collateral consisting of (i) Patent
Licenses of U.S. Patents that constitute Material Intellectual Property, and (ii) Trademark
Licenses of U.S. Trademarks that constitute Material Intellectual Property, for
which any Grantor is the licensee of such U.S. Patents or U.S. Trademarks,
Grantor shall promptly execute and deliver to the Collateral Agent any
documents reasonably requested by the Collateral Agent and take all actions
reasonably requested by the Collateral Agent as may 

 

be
necessary to create, perfect, preserve and enforce a valid and second priority
security interest, subject to any Permitted Liens, in favor of the Collateral
Agent but, in any event excluding actions required to be taken by, or with
respect to property owned by, the licensor under any such Patent License or
Trademark License.

 

4.4          Other Actions.

 

(a)           If any issuer of any Pledged Equity Interest
is organized under a jurisdiction outside of the United States, each Grantor
shall take such additional actions, including, without limitation, causing the
issuer to register the pledge on its books and records or making such filings
or recordings, in each case as may be necessary or, in the Collateral Agent’s
reasonable judgment, advisable under the laws of such issuer’s jurisdiction to
insure the validity, perfection and priority of the security interest of the
Collateral Agent (in the case of priority, subject to Liens granted to the
First Lien Collateral Agent).

 

(b)           Each Grantor consents to the grant by each
other Grantor of a Lien in all Investment Related Property to the Collateral
Agent and without limiting the generality of the foregoing consents to the
transfer of any Pledged Partnership Interest and any Pledged LLC Interest to,
until the Discharge of the First Lien Obligations has occurred, the First Lien
Collateral Agent and thereafter, to the Collateral Agent or its designee if an
Event of Default has occurred and is continuing and to the substitution of the
First Lien Collateral Agent or the Collateral Agent or their respective
designees as a partner in any partnership or as a member in any limited
liability company with all the rights and powers related thereto if an Event of
Default has occurred and is continuing.

 

13

 

4.5          Timing and Notice.  With
respect to any Collateral in existence on the Closing Date, each Grantor shall
comply with the requirements of Section 4 on the date hereof (unless
otherwise specified in this Agreement) and with respect to any Collateral
hereafter owned or acquired Grantor shall comply with such requirements within
the time periods set forth in Section 4 or, if no such time period is
specified, at the time of delivery of quarterly financial statements with
respect to the Fiscal Quarter during which such Collateral is created or
acquired pursuant to Section 5.1(b) of the Credit Agreement.

 

SECTION 5.         REPRESENTATIONS
AND WARRANTIES.

 

Each
Grantor hereby represents and warrants that:

 

5.1          Grantor Information &
Status.

 

(a)           on the Closing Date, Schedule 5.1(A) & (B) (as such schedule may be
amended or supplemented from time to time) sets forth under the appropriate
headings: (1) the full legal name of such Grantor, (2) all trade
names or other names under which such Grantor currently conducts business, (3) the
type of organization of such Grantor, (4) the jurisdiction of organization
of such Grantor, (5) its organizational identification number, if any, and
(6) the jurisdiction where the chief executive office or its sole place of
business is, and for the one-year period preceding the date hereof has been,
located;

 

(b)           on the Closing Date, except as provided on Schedule 5.1(C) (as such schedule
may be amended or supplemented from time to time), it has not changed its name,
jurisdiction of organization, chief executive office or sole place of business
or its corporate structure in any way (e.g., by merger, consolidation, change
in corporate form or otherwise) and has not done business under any other name,
in each case, within the last year;

 

(c)           on the Closing Date, other than in connection
with Permitted Liens, it has not within the last year become bound (whether as
a result of merger or otherwise) as debtor under a security agreement entered
into by another Person (other than another Grantor), which has not heretofore
been terminated with respect to any such Grantor other than the agreements
identified on Schedule 5.1(D) (as such schedule may be amended or
supplemented from time to time); and

 

(d)           on the Closing Date, such Grantor has been duly organized and is validly existing
as an entity of the type as set forth opposite such Grantor’s name on Schedule
5.1(A) (as such schedule may be amended or supplemented from time to time)
solely under the laws of the jurisdiction as set forth opposite such Grantor’s
name on Schedule 5.1(A) (as such schedule may be amended or supplemented
from time to time) and remains duly existing as such.  Such Grantor has not filed any certificates
of dissolution or liquidation, any certificates of domestication, transfer or
continuance in any other jurisdiction.

 

5.2          Collateral Identification,
Special Collateral.

 

(a)           at the time of delivery of quarterly financial
statements pursuant to Section 5.1(b) of the Credit Agreement (and in
connection with a Permitted Acquisition where the acquisition consideration is
in excess of $5,000,000 for such Permitted Acquisition), Schedule 5.2 (as such
schedule may be amended or supplemented from time to time) sets forth under the
appropriate headings all of such Grantor’s: (1) Pledged Equity Interests, (2) Pledged
Debt, (3) 

 

14

 

Deposit
Accounts, Securities Accounts, Security Entitlements, Commodity Contracts and
Commodity Accounts subject to Section 4.2(a) above, (4) all
United States and foreign registrations of and applications for patents,
trademarks, Internet domain names, and copyrights owned by each Grantor, (5) all
Patent Licenses, Trademark Licenses (including, without limitation, the
Material Trademark License), Trade Secret Licenses and Copyright Licenses that,
in each case, constitute Material Intellectual Property, (6) Commercial
Tort Claims other than any Commercial Tort Claims having a value of less than
$500,000 individually or $1,000,000 in the aggregate with each other Commercial
Tort Claim not listed on Schedule 5.2, (7) Letter of Credit Rights for
letters of credit having a value in excess of $500,000 individually or
$1,000,000 in the aggregate, and (8) the name and address of any
warehouseman, bailee or other third party in possession of any Inventory,
Equipment and other tangible personal property other than any Inventory,
Equipment or other tangible person property having a value less than $5,000,000
in the aggregate at each location.  Each
Grantor shall supplement such schedules as necessary to ensure that such
schedules are accurate in all material respects at the time of delivery of
quarterly financial statements with respect to the Fiscal Quarter most recently
ended pursuant to Section 5.1(b) of the Credit Agreement;

 

(b)           on the Closing Date, no material portion of the Collateral constitutes, or is the
Proceeds of, (1) Farm Products, (2) As-Extracted Collateral, (3) Manufactured
Homes, (4) Health-Care-Insurance Receivables; (5) timber to be cut
(other than timber located on real property owned or leased by any Grantor as
described on Schedule 5.2) or (6) aircraft (other than fractional
interests therein), aircraft engines, satellites, ships or railroad rolling
stock; and

 

(c)           on the Closing Date, all written information supplied by any Grantor with respect
to any of the Collateral (in each case taken as a whole with respect to any
particular Collateral) is accurate and complete in all material respects.

 

5.3          Reserved.

 

5.4          Status of Security Interest.

 

(a)           on the Closing Date, upon the timely and proper filing of financing statements
naming each Grantor as “debtor” and the Collateral Agent as “secured party” and
describing the Collateral in the filing offices set forth opposite such Grantor’s
name on Schedule 5.4 hereof (as such schedule may be amended or supplemented
from time to time), the security interest of the Collateral Agent in all
Collateral that can be perfected by the filing of a financing statement under
the Uniform Commercial Code as in effect in any jurisdiction will constitute a
valid, perfected, second priority Lien subject in the case of priority only, to
any Permitted Liens with respect to Collateral. 
Other than the Collateral Agent, the First Lien Collateral Agent and any
automatic control in favor of a Bank, Securities Intermediary or Commodity
Intermediary maintaining a Deposit Account, Securities Account, Commodity
Contract or Commodity Account, no Person is in Control of any Collateral;

 

(b)           on the Closing Date, to the extent perfection or priority of the security
interest therein is not subject to Article 9 of the UCC, and to the extent
that the security interest of the Collateral Agent in Intellectual Property can
be perfected by recording the Trademark Security Agreement, the Patent Security
Agreement or the Copyright Security Agreement, as the case may be, with the
United States Patent and Trademark Office or the United States Copyright
Office, for the security interests granted hereunder in Collateral consisting
of U.S. Patents, U.S. Trademarks, and U.S. Copyrights that are, in each case,
set forth on Schedule 5.2, if such security 

 

15

 

interests
are timely and properly recorded in the United States Patent and Trademark
Office and the United States Copyright Office, as applicable, the security
interests granted to the Collateral Agent hereunder in such U.S. Copyrights,
U.S. Patents and U.S. Trademarks shall constitute valid, perfected, second
priority Liens (subject, in the case of priority only, to Permitted Liens); and

 

(c)           on the Closing Date, no authorization, consent, approval or other action by, and
no notice to or filing with, any Governmental Authority or regulatory body or
any other Person is required for the exercise by Collateral Agent of any rights
or remedies in respect of any Collateral (other than Pledged Equity Interests
issued by a Foreign Subsidiary, foreign Intellectual Property, foreign deposit
accounts or accounts maintained with foreign securities intermediaries)
(whether specifically granted or created hereunder or created or provided for
by applicable law), except (1) for the filings contemplated by clauses (a) and
(b) above, (2) as may be required, in connection with the disposition
of any Investment Related Property, by laws generally affecting the offering
and sale of Securities, (3) for authorizations, consents or approvals that
have been obtained, (4) for actions required with respect to Receivables
where the government of the United States, any agency or instrumentality
thereof, any state or municipality or any foreign sovereign is an Account
Debtor, (5) for actions required (A) pursuant to the terms of
agreements the Collateral Agent has entered into with any landlord,
warehouseman, bailee or other third party, (B) with respect to Collateral
permitted under the Credit Documents to be in the possession of third parties
or (C) with respect to Collateral constituting timber subject to timber
deeds, authorizations, consents, approvals or actions by, or notices to or
filings with, the owner of the real property where such timber is located, (6) for
actions required pursuant to the terms of any agreement conferring Control on
the Collateral Agent or any of its sub-agents, (7) authorizations,
consents, approvals or other actions by, or notices to or filings with, holders
of Permitted Liens, (8) authorizations, consents, approvals or other
actions by, or notices to or filings with, third parties with respect to rights
in Collateral or obligations to a secured party which are not rendered
ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or
any successor provision or provisions) of any relevant jurisdiction or any
other applicable law (including the Bankruptcy Code) or principles of equity, (9) as
may be required by the applicable court in connection with any Commercial Tort
Claim, (10) as may be required in connection with enforcement against an
Account Debtor under applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws, (11) notices required to be given hereunder,
(12) as may be required by laws generally applicable to the enforcement of
remedies, (13) for any filings or actions required to perfect or record a Lien
on, or security interest in, any Intellectual Property that arises under the
laws of any country or jurisdiction other than the United States, (14) for
actions required by the terms of any agreement, document or instrument
constituting or governing any Collateral which are not rendered ineffective
pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor
provision or provisions) of any relevant jurisdiction, (15) for actions which
are not required to be taken by the Grantors pursuant to the Credit Documents
and (16) for actions with respect to Collateral with an aggregate fair market
value of less than $5,750,000.

 

5.5          Goods & Receivables.

 

(a)           on the Closing Date, each Receivable (1) is and will be the legal, valid and
binding obligation of the Account Debtor in respect thereof, representing an
unsatisfied obligation of such Account Debtor, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws, (2) is enforceable in accordance with its terms, except as may be
limited by applicable bankruptcy, insolvency, reorganization,

 

16

 

moratorium
or other similar laws, (3) is not and will not be subject to any credits,
rights of recoupment, setoffs, defenses, taxes, counterclaims (except with
respect to refunds, returns and allowances in the ordinary course of business)
and (4) is and will be in compliance in all material respects with all
applicable laws, whether federal, state, local or foreign;

 

(b)           on the Closing Date, none of the Account Debtors in respect of any Receivable in
excess of $1,000,000 individually or $2,000,000 in the aggregate is the
government of the United States, any agency or instrumentality thereof, any
state or municipality or any foreign sovereign;

 

(c)           on the Closing Date, any Goods now or hereafter produced by any Grantor included
in the Collateral have been and will be produced in all material respects in
compliance with the requirements of the Fair Labor Standards Act, as amended,
and the rules and regulations promulgated thereunder; and

 

(d)           on the Closing Date, other than any Inventory or Equipment (i) in transit, (ii) undergoing
repairs, (iii) consisting of sales samples in the possession of employees
in the ordinary course of business, (iv) in possession of the Collateral
Agent or Lenders, (v) consisting of mobile equipment, (vi) of an
immaterial value kept on the premises of customers in the ordinary course of
business or (vii) having a value of less than $1,000,000 in the aggregate,
all of the Equipment and Inventory included in the Collateral is located only
at the locations specified in Schedule 5.5 (as such schedule may be amended or
supplemented from time to time).

 

5.6          Pledged Equity Interests,
Investment Related Property

 

(a)           on the Closing Date, except as otherwise set forth on Schedule 5.1(I) (as
such schedule may be amended or supplemented from time to time), all of the
Pledged LLC Interests and Pledged Partnership Interests are or represent
interests that by their terms provide that they are securities governed by the
Uniform Commercial Code of an applicable jurisdiction.

 

5.7          Intellectual Property.

 

(a)           on the Closing Date, each Grantor is the sole and exclusive owner of the entire
right, title, and interest in and to all patents, copyrights, trademarks and
Internet domain names listed on Schedule 5.2(II)(A) (as such schedule may
be amended or supplemented from time to time), which are used in or necessary
to conduct its business, free and clear of all Liens except for, in the case of
priority only, Permitted Liens and the licenses set forth on Schedule 5.2, and
each Intellectual Property License of Material Intellectual Property licensed
to Grantor listed on Schedule 5.2(II)(B) (as such schedule may be amended
or supplemented from time to time) is in full force and effect;

 

(b)           on the Closing Date, each Grantor has performed all acts and has paid all
renewal, maintenance, and other fees and taxes required to maintain each and
every current registration and application of U.S. Copyrights, U.S. Patents and
U.S. Trademarks owned by Grantor that, in each case, constitute Material
Intellectual Property;

 

(c)           on the Closing Date, to the Grantor’s actual knowledge, all Material Intellectual
Property owned by a Grantor is valid and enforceable; and except as would not
reasonably be expected to have a Material Adverse Effect, no holding, decision, ruling, or judgment
has been rendered in any action or proceeding before any court or
administrative

 

17

 

authority challenging the
validity or scope of, or challenging such Grantor rights to own, license or
use, any Material Intellectual Property owned by Grantor, and no such action or
proceeding is currently pending or threatened against such Grantor in writing;

 

(d)           on the Closing Date, all registrations of and applications for registration of,
copyrights, patents and trademarks as well as Internet domain names that are
set forth on Schedule 5.2(II)(A) (as such schedule may be amended or
supplemented from time to time), are standing in the name of such Grantor,
except as disclosed in Schedule 5.2(II)(C);

 

(e)           on the Closing Date, each Grantor uses
adequate standards of quality in the manufacture, distribution, and sale of all
products sold and in the provision of all services rendered under or in
connection with all Trademarks that constitute Material Intellectual Property;

 

(f)            on the Closing Date, to such Grantor’s actual knowledge, the conduct of such
Grantor’s business as currently conducted does not infringe upon or
misappropriate or otherwise violate any trademark, patent, copyright, trade
secret or other intellectual property right of any other Person, and no claim
or suit is pending charging such Grantor as a defendant in any proceeding
involving a claim that the use of any Material Intellectual Property owned or
used by such Grantor infringes upon, misappropriates or otherwise violates the
Intellectual Property rights of any other Person;

 

(g)           on the Closing Date, to such Grantor’s actual knowledge, no other Person is
infringing upon, misappropriating or otherwise violating any rights in any
Material Intellectual Property owned by such Grantor in any material respect;
and

 

(h)           on the Closing Date, no settlement or consents, covenants not to sue, co-existence
agreements, non-assertion assurances, or releases have been entered into by
Grantor that binds Grantor in a manner that materially adversely affects
Grantor’s rights to own, license or use any Material Intellectual Property
owned by Grantor as of such date, other than (i) those licensed by Grantor
under any Intellectual Property License or (ii) those subject to Permitted
Liens.

 

SECTION 6.         COVENANTS
AND AGREEMENTS.

 

Each
Grantor hereby covenants and agrees that:

 

6.1          Grantor Information &
Status – Pledge Supplement.

 

(a)           In connection with any notice provided under Section 5.1(l) of
the Credit Agreement in connection with a merger or other change in corporate
structure, such Grantor shall execute and deliver to the Collateral Agent a
completed Pledge Supplement, substantially in the form of Annex A attached
hereto, upon completion of such merger or other change in corporate structure
confirming the grant of the security interest hereunder.

 

6.2          Collateral Identification;
Special Collateral.

 

(a)           in the event that it hereafter acquires any
Collateral of a type described in Section 5.2(b) hereof, it shall
promptly notify the Collateral Agent thereof in writing and take such actions
and execute such documents and make such filings all at Grantor’s expense as
the 

 

18

 

Collateral Agent may
reasonably request in order to ensure that the Collateral Agent has a valid,
perfected, second priority security interest in such Collateral, subject in the
case of priority only, to any Permitted Liens. 
Notwithstanding the foregoing, no Grantor shall be required to notify
the Collateral Agent or take any such action unless such Collateral is material
to such Grantor’s business.

 

(b)           in the event that it hereafter acquires or
has any Commercial Tort Claims in excess of $500,000 individually or $1,000,000
in the aggregate it shall deliver to the Collateral Agent a completed Pledge
Supplement, substantially in the form of Exhibit A attached hereto,
together with all Supplements to Schedules thereto, identifying such new
Commercial Tort Claims.

 

6.3          Ownership of Collateral and
Absence of Other Liens.

 

(a)           except for the security interest created by
this Agreement, it shall not create or suffer to exist any Lien upon or with
respect to any of the Collateral, other than Permitted Liens, and such Grantor
shall use commercially reasonable efforts to defend the Collateral against all
Persons at any time claiming any Lien thereon other than a Permitted Lien; and

 

(b)           it shall not sell, transfer or assign (by
operation of law or otherwise) any Collateral to another Person or provide an
Exclusive IP License (as such term is defined in the Credit Agreement) to
another Person except as otherwise permitted by the Credit Agreement.

 

6.4          Status of Security Interest.

 

(a)           Subject to the limitations set forth in
subsection (b) of this Section 6.4 and subject to rights to sell,
transfer or assign permitted under Section 6.5(b), each Grantor shall
maintain the security interest of the Collateral Agent hereunder in all
Collateral as valid, perfected, second priority Liens (subject, in the case of
priority only, to Permitted Liens).

 

(b)           Notwithstanding the foregoing, no Grantor
shall be required to take any action to perfect any Collateral that can only be
perfected by (i) Control, (ii) federal or foreign filings with
respect to Intellectual Property, (iii) filings with registrars of motor
vehicles or similar governmental authorities with respect to goods covered by a
certificate of title, or (iv) any method other than filing of a UCC filing
or delivery to the Collateral Agent, in each case except as and to the extent
specified in Section 4 hereof.

 

6.5          Goods & Receivables.

 

(a)           it shall not deliver any Document evidencing
any Equipment and Inventory to any Person other than the issuer of such
Document to claim the Goods evidenced therefor, the First Lien Collateral Agent
or the Collateral Agent, any issuer of a letter of credit payable on delivery
of such Document, any customs broker in possession of such Inventory or
Equipment or any other Person required by the issuer of such Document in
connection with the payment or delivery of such Equipment and Inventory;
provided, however, that until the Discharge of First Lien Obligations has
occurred, any requirements for delivery to the Collateral Agent under this
paragraph shall be deemed to have been satisfied by delivery of such Collateral
to the First Lien Collateral Agent;

 

19

 

(b)           if any Equipment or Inventory in excess of
$5,000,000 in the aggregate at each location is in possession or control of any
warehouseman, bailee or other third party (other than a consignee under a
consignment for which such Grantor is the Consignor), each Grantor shall use
commercially reasonable efforts to notify the third party of the Collateral
Agent’s security interest and obtain an acknowledgment from the third party
that it is holding the Equipment and Inventory for the benefit of the
Collateral Agent and will permit the Collateral Agent to have access to
Equipment or Inventory for purposes of inspecting such Collateral or, following
the occurrence and during the continuance of an Event of Default, to remove
same from such premises if the Collateral Agent so elects;

 

(c)           it shall keep and maintain at its own cost
and expense satisfactory and complete records of the Receivables, including,
but not limited to, the originals of all documentation with respect to all
Receivables and records of all payments received and all credits granted on the
Receivables, all merchandise returned and all other dealings therewith;

 

(d)           other than in the ordinary course of business
(i) it shall not amend, modify, terminate or waive any provision of any
Receivable in any manner which could reasonably be expected to have a material
adverse effect on the value of such Receivable; (ii) following and during
the continuation of an Event of Default, such Grantor shall not (w) grant
any extension or renewal of the time of payment of any Receivable, (x) compromise
or settle any dispute, claim or legal proceeding with respect to any Receivable
for less than the total unpaid balance thereof, (y) release, wholly or
partially, any Person liable for the payment thereof, or (z) allow any
credit or discount thereon; and

 

(e)           if an Event of Default shall have occurred
and be continuing, the Collateral Agent shall have the right after notice to
the applicable Grantor to notify, or require any Grantor to notify, any Account
Debtor of the Collateral Agent’s security interest in the Receivables and any
Supporting Obligation and, in addition, at any time following the occurrence
and during the continuation of an Event of Default, the Collateral Agent
may:  (1) direct the Account Debtors
under any Receivables to make payment of all amounts due or to become due to
such Grantor thereunder directly to the Collateral Agent; (2) notify, or
require any Grantor to notify, each Person maintaining a lockbox or similar
arrangement to which Account Debtors under any Receivables have been directed
to make payment to remit all amounts representing collections on checks and
other payment items from time to time sent to or deposited in such lockbox or
other arrangement directly to the Collateral Agent; and (3) enforce, at
the expense of such Grantor, collection of any such Receivables and to adjust,
settle or compromise the amount or payment thereof, in the same manner and to
the same extent as such Grantor might have done.  If the Collateral Agent notifies any Grantor
that it has elected to collect the Receivables in accordance with the preceding
sentence, any payments of Receivables received by such Grantor shall be
forthwith (and in any event within two (2) Business Days) deposited by
such Grantor in the exact form received, duly indorsed by such Grantor to the
Collateral Agent if required, in the Collateral Account maintained under the
sole dominion and control of the Collateral Agent (subject to the control of
the First Lien Collateral Agent until the Discharge of First Lien Obligations
has occurred), and until so turned over, all amounts and proceeds (including
checks and other instruments) received by such Grantor in respect of the
Receivables, any Supporting Obligation or Collateral Support shall be received
in trust for the benefit of the Collateral Agent hereunder and shall be
segregated from other funds of such Grantor and such Grantor shall not adjust,
settle or compromise the amount or payment of any Receivable, or release wholly
or partly any Account Debtor or obligor thereof, or allow any credit or
discount thereon; provided, however, that until the Discharge of First Lien
Obligations has occurred, the requirements for 

 

20

 

deposit or delivery under
this paragraph shall be deemed to have been satisfied by delivery of such
Collateral to the First Lien Collateral Agent.

 

6.6          Pledged Equity Interests,
Investment Related Property.

 

(a)           except as provided in the next sentence, in
the event such Grantor receives any dividends, interest or distributions on any
Pledged Equity Interest or other Investment Related Property, upon the merger,
consolidation, liquidation or dissolution of any issuer of any Pledged Equity
Interest or Investment Related Property (other than a merger or consolidation
with, or a liquidation or dissolution the proceeds of which are distributed to
another Grantor), then (a) such dividends, interest or distributions and
securities or other property shall be included in the definition of Collateral
without further action and (b) such Grantor shall immediately take all
steps, if any, that are necessary or, in the Collateral Agent’s reasonable
judgment, advisable to ensure the validity, perfection, priority and, if
applicable, Control of the Collateral Agent over such Investment Related
Property (including, without limitation, delivery thereof to the Collateral
Agent; provided, however, that until the Discharge of First Lien Obligations
has occurred, the requirements for Control or delivery under this paragraph
shall be deemed to have been satisfied by Control of such Collateral in favor
of, or delivery of such Collateral to the First Lien Collateral Agent) and
pending any such action such Grantor shall be deemed to hold such dividends,
interest, distributions, securities or other property in trust for the benefit
of the Collateral Agent and shall segregate such dividends, distributions,
Securities or other property from all other property of such Grantor.  Notwithstanding the foregoing, so long as no
Event of Default shall have occurred and be continuing and so long as the
Collateral Agent has not given notice to the applicable Grantor to the
contrary, the Collateral Agent authorizes each Grantor to retain all ordinary
cash dividends and distributions paid and all payments of principal and
interest;

 

(b)           Voting.

 

(i)            So long as no Event of Default shall have
occurred and be continuing and the Collateral Agent has not given the
applicable Grantor notice to the contrary, except as otherwise provided under
the covenants and agreements relating to Investment Related Property in this
Agreement or elsewhere herein or in the Credit Agreement, each Grantor shall be
entitled to exercise or refrain from exercising any and all voting and other
consensual rights pertaining to the Investment Related Property or any part
thereof for any purpose not inconsistent with the terms of this Agreement or
the Credit Agreement; provided, no Grantor shall exercise or refrain from
exercising any such right if such action could reasonably be expected to have a
Material Adverse Effect on the value of the Investment Related Property or any
part thereof; it being understood, however, that neither the voting by such
Grantor of any Pledged Stock for, or such Grantor’s consent to, the election of
directors (or similar governing body) at a regularly scheduled annual or other
meeting of stockholders or with respect to ordinary course of business matters
at any such meeting, nor such Grantor’s consent to or approval of any action
otherwise permitted under this Agreement and the Credit Agreement, shall be
deemed inconsistent with the terms of this Agreement or the Credit Agreement
within the meaning of this Section 6.6(b)(i) and no notice of any
such voting or consent need be given to the Collateral Agent; and

 

(ii)           Upon the occurrence and during the
continuation of an Event of Default and after the Collateral Agent has given
the applicable Grantor notice:

 

21

 

(1)                                  all rights of each Grantor to exercise or
refrain from exercising the voting and other consensual rights which it would
otherwise be entitled to exercise pursuant hereto shall cease and all such
rights shall thereupon become vested (A) until the Discharge of First Lien
Obligations has occurred, in the First Lien Collateral Agent and (B) thereafter,
in the Collateral Agent who shall thereupon have the sole right to exercise
such voting and other consensual rights; and

 

(2)                                  in order to permit the Collateral Agent to
exercise the voting and other consensual rights which it may be entitled to
exercise pursuant hereto and to receive all dividends and other distributions
which it may be entitled to receive hereunder: (1) each Grantor shall
promptly execute and deliver (or cause to be executed and delivered) (A) to
the First Lien Collateral Agent, until the Discharge of First Lien Obligations
has occurred, and (B) thereafter, Collateral Agent all proxies, dividend
payment orders and other instruments as the Collateral Agent may from time to
time reasonably request and (2) each Grantor acknowledges that the
Collateral Agent may utilize the power of attorney set forth in Section 8.1;

 

(c)           except as expressly permitted by the Credit
Agreement, without the prior written consent of (I) until the Discharge of
the First Lien Obligations has occurred, the First Lien Collateral Agent, and (II) thereafter,
the Collateral Agent, it shall not vote to enable or take any other action to: (i) amend
or terminate any partnership agreement, limited liability company agreement,
certificate of incorporation, by-laws or other organizational documents in any
way that materially adversely affects the rights of such Grantor with respect
to any Investment Related Property or materially adversely affects the
validity, perfection or priority of the Collateral Agent’s security interest, (ii) permit
any issuer of any Pledged Equity Interest to issue any additional stock,
partnership interests, limited liability company interests or other equity
interests of any nature or to issue securities convertible into or granting the
right of purchase or exchange for any stock or other equity interest of any
nature of such issuer except to another Grantor or, to the extent required by
applicable law, other Persons (e.g., directors’ qualifying shares) who have
caused such property to become subjected to a perfected Lien thereon in favor
of the Collateral Agent, (iii) other than as permitted under the Credit
Agreement, permit any issuer of any Pledged Equity Interest to dispose of all
or a material portion of their assets, (iv) waive any default under or
breach of any terms of organizational document relating to the issuer of any
Pledged Equity Interest or the terms of any Pledged Debt, or (v) cause any
issuer of any Pledged Partnership Interests or Pledged LLC Interests which are
not securities (for purposes of the UCC) on the date hereof to elect or
otherwise take any action to cause such Pledged Partnership Interests or
Pledged LLC Interests to be treated as securities for purposes of the UCC;
provided, however, notwithstanding the foregoing, if any issuer of any Pledged
Partnership Interests or Pledged LLC Interests takes any such action in
violation of the foregoing in this clause (v), such Grantor shall promptly
notify the Collateral Agent in writing of any such election or action and, in
such event, shall take all steps necessary or, in the Collateral Agent’s
reasonable judgment, advisable to establish the Collateral Agent’s “Control”
thereof (subject to the interest of the First Lien Collateral Agent until the
Discharge of First Lien Obligations); provided, however, that until the
Discharge of First Lien Obligations has occurred, the requirements for Control
or delivery under this paragraph shall be deemed to have been satisfied by
Control of such Collateral in favor of, or delivery of such Collateral to, the
First Lien Collateral Agent; and

 

(d)           except as expressly permitted by the Credit
Agreement, without the prior written consent of (I) until the Discharge of
the First Lien Obligations has occurred, the First Lien 

 

22

 

Collateral Agent, and (II) thereafter,
the Collateral Agent, it shall not permit any issuer of any Pledged Equity
Interest to merge or consolidate unless (i) such issuer creates a security
interest that is perfected by a filed financing statement (that is not
effective solely under section 9-508 of the UCC) in collateral in which such
new debtor has or acquires rights, (ii) all the outstanding capital stock
or other equity interests of the surviving or resulting corporation, limited
liability company, partnership or other entity is, upon such merger or
consolidation, pledged hereunder; provided that if the surviving or resulting
Grantors upon any such merger or consolidation involving an issuer which is a
Foreign Subsidiary, then such Grantor shall only be required to pledge equity
interests in accordance with Section 2.2.

 

6.7          Intellectual Property.

 

(a)           subject to such Grantor’s reasonable business
judgment, it shall not knowingly do any act or knowingly omit to do any act
whereby any registrations of the Material Intellectual Property lapses, becomes
abandoned, dedicated to the public, or unenforceable, which would adversely
affect the validity, grant, or enforceability of the security interest granted
therein;

 

(b)           subject to such Grantor’s reasonable business
judgment, it shall not, with respect to any Trademarks constituting Material
Intellectual Property (including, without limitation, such Trademarks licensed
pursuant to the Material Trademark License), cease the use of any of such
Trademarks or fail to maintain the level of the quality of products sold and
services rendered under any of such Trademark at a level at least substantially
consistent with the quality of such products and services as of the date
hereof;

 

(c)           it shall notify the Collateral Agent, on a
quarterly basis, if it knows that any item of currently registered Material
Intellectual Property has become (i) abandoned or dedicated to the public
or placed in the public domain, (ii) invalid or unenforceable or (iii) subject
to any adverse determinations in any action or proceeding in the United States
Patent and Trademark Office, the United States Copyright Office, any state
registry, any foreign counterpart of the foregoing, or any court;

 

(d)           subject to such Grantor’s reasonable business
judgment, it shall take all steps in the United States Patent and Trademark
Office, the United States Copyright Office, any state registry or any foreign
counterpart of the foregoing, necessary to pursue any filed application and
maintain any registration of each Trademark, Patent, and Copyright owned or
exclusively licensed under the Material Trademark License (to the extent
Grantor has the rights therein to do so) by such Grantor and that, in each
case, constitutes Material Intellectual Property;

 

(e)           subject to such Grantor’s reasonable business
judgment, in the event that any Material Intellectual Property owned, or
exclusively licensed under the Material Trademark License (to the extent
Grantor has the rights therein to do so) by such Grantor is infringed,
misappropriated, or diluted by a third party, and if Grantor knows of such
infringement, misappropriation or dilution, such Grantor shall promptly take
reasonable actions to stop such infringement, misappropriation, or dilution or
to otherwise protect its rights in such Material Intellectual Property
including, but not limited to, the initiation of a suit for injunctive relief
and to recover damages;

 

(f)            subject to such Grantor’s reasonable business
judgment, it shall take all reasonable steps under the circumstances to protect
the secrecy of all Trade Secrets which 

 

23

 

constitute Material
Intellectual Property, including, without limitation, entering into confidentiality
agreements with employees and consultants and labeling and restricting access
to secret information and documents; and

 

(g)           Grantor shall use commercially reasonable
efforts to continue to collect, at its own expense, all amounts due or to become
due to such Grantor in respect of the Material Intellectual Property or any
portion thereof.  In connection with such
collections, each Grantor may take (and, at the Collateral Agent’s reasonable
direction, shall take) such action as such Grantor or the Collateral Agent may
deem reasonably necessary or, in the Collateral Agent’s reasonable judgment,
advisable to enforce collection of such amounts.  Notwithstanding the foregoing, the Collateral
Agent shall have the right at any time, to notify, or require any Grantor to
notify, any obligors with respect to any such amounts of the existence of the
security interest created hereby.

 

SECTION 7.         ACCESS;
RIGHT OF INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS.

 

7.1          Intentionally Omitted.

 

7.2          Further Assurances.

 

(a)           Each Grantor agrees that from time to time,
at the expense of such Grantor, that it shall promptly execute and deliver all
further instruments and documents, and take all further action necessary or, in
the Collateral Agent’s reasonable judgment, advisable in order to create and/or
maintain the validity, perfection or priority of and protect any security
interest granted hereby or to enable the Collateral Agent to exercise and
enforce its rights and remedies hereunder with respect to any Collateral;
provided, however, that until the Discharge of First Lien Obligations has
occurred, any requirements for delivery under this paragraph shall be deemed to
have been satisfied by delivery of such Collateral to the First Lien Collateral
Agent. Without limiting the generality of the foregoing, each Grantor shall:

 

(i)            file such financing or continuation
statements, or amendments thereto, record security interests in intellectual
property and execute and deliver such other agreements, instruments, endorsements,
powers of attorney or notices, as the Collateral Agent may reasonably request,
in order to effect, reflect, perfect and preserve the security interests
granted or purported to be granted hereby;

 

(ii)           ensure the recordation of appropriate
evidence, as the Collateral Agent may reasonably request, of the liens and
security interest granted hereunder in the U.S. Patents, U.S. Copyrights, and
U.S. Trademarks that are, in each case, owned by a Grantor, with any
intellectual property registry in which said U.S. Patents, U.S. Copyrights, and
U.S. Trademarks are registered or in which an application for registration is
pending including, without limitation, the United States Patent and Trademark
Office, the United States Copyright Office and the various Secretaries of State
of the several states of the United States;

 

(iii)          at any reasonable time, upon request by the
Collateral Agent and subject to Section 5.6 of the Credit Agreement, allow
inspection of the Collateral by the Collateral Agent, or persons designated by
the Collateral Agent and, if an Event of Default has occurred and is
continuing, assemble the Collateral; and

 

24

 

(iv)          at the Collateral Agent’s request, appear in
and defend any action or proceeding that may affect such Grantor’s title to or
the Collateral Agent’s security interest in all or any part of the Collateral.

 

(b)           Each Grantor hereby authorizes the Collateral
Agent to file a Record or Records, including, without limitation, financing or continuation
statements, intellectual property security agreements and amendments to any of
the foregoing, in any jurisdictions and with any filing offices as the
Collateral Agent may reasonably determine are necessary to perfect the security
interest granted to the Collateral Agent herein.  Such financing statements may describe the
Collateral in the same manner as described herein or may contain an indication
or description of collateral that describes such property in any other manner
as the Collateral Agent may reasonably determine is necessary to ensure the
perfection of the security interest in the Collateral granted to the Collateral
Agent herein, including, without limitation, describing such property as “all
assets, whether now owned or hereafter acquired” or words of similar
effect.  Each Grantor shall furnish to
the Collateral Agent from time to time statements and schedules further
identifying and describing the Collateral and such other reports in connection
with the Collateral as the Collateral Agent may reasonably request, all in
reasonable detail.

 

(c)           Each Grantor hereby authorizes the Collateral
Agent to modify this Agreement after obtaining such Grantor’s approval of and
signature to such modification by amending Schedule 5.2 (as such schedule may
be amended or supplemented from time to time) to include reference to any
Intellectual Property acquired or developed by any Grantor after the execution
hereof (which Intellectual Property would be required to be referenced on
Schedule 5.2) or to delete any reference to any right, title or interest in any
Intellectual Property in which any Grantor no longer has or claims any right,
title or interest.

 

7.3          Additional Grantors.  From
time to time subsequent to the date hereof, additional Persons may become
parties hereto as additional Grantors (each, an “Additional Grantor”), by executing a Pledge Supplement.  Upon delivery of any such Pledge Supplement
to the Collateral Agent, notice of which is hereby waived by Grantors, each
Additional Grantor shall be a Grantor and shall be as fully a party hereto as
if Additional Grantor were an original signatory hereto.  Each Grantor expressly agrees that its
obligations arising hereunder shall not be affected or diminished by the
addition or release of any other Grantor hereunder, nor by any election of
Collateral Agent not to cause any Subsidiary of Borrower to become an
Additional Grantor hereunder.  This
Agreement shall be fully effective as to any Grantor that is or becomes a party
hereto regardless of whether any other Person becomes or fails to become or
ceases to be a Grantor hereunder.

 

SECTION 8.         COLLATERAL
AGENT APPOINTED ATTORNEY-IN-FACT.

 

8.1          Power of Attorney. 
Until payment in full in cash of all Secured Obligations (other than
contingent obligations), each Grantor hereby irrevocably appoints the
Collateral Agent (such appointment being coupled with an interest) as such
Grantor’s attorney-in-fact, with full authority in the place and stead of such
Grantor and in the name of such Grantor, the Collateral Agent or otherwise,
from time to time in the Collateral Agent’s discretion to take any action and
to execute any instrument that may be necessary or, in the Collateral Agent’s
reasonable judgment, advisable to accomplish the purposes of this Agreement, including,
without limitation, the following:

 

25

 

(a)           upon the occurrence and during the
continuance of any Event of Default, to obtain and adjust Insurance required to
be maintained by such Grantor or paid to the Collateral Agent pursuant to the
Credit Agreement;

 

(b)           upon the occurrence and during the
continuance of any Event of Default, to ask for, demand, collect, sue for,
recover, compound, receive and give acquittance and receipts for moneys due and
to become due under or in respect of any of the Collateral;

 

(c)           upon the occurrence and during the
continuance of any Event of Default, to receive, endorse and collect any drafts
or other instruments, documents and chattel paper in connection with clause (b) above;

 

(d)           upon the occurrence and during the
continuance of any Event of Default, to file any claims or take any action or
institute any proceedings that the Collateral Agent may deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce
the rights of the Collateral Agent with respect to any of the Collateral;

 

(e)           to prepare and file any UCC financing
statements against such Grantor as debtor;

 

(f)            to prepare, sign, and file for recordation in
any intellectual property registry, appropriate evidence of the lien and
security interest granted herein in the Intellectual Property in the name of
such Grantor as debtor;

 

(g)           upon the occurrence and during the
continuance of any Event of Default, to take or cause to be taken all actions
necessary to perform or comply or cause performance or compliance with the
terms of this Agreement, including, without limitation, access to pay or
discharge taxes or Liens (other than Permitted Liens) levied or placed upon or
threatened against the Collateral, the legality or validity thereof and the
amounts necessary to discharge the same to be determined by the Collateral
Agent in its sole discretion, any such payments made by the Collateral Agent to
become obligations of such Grantor to the Collateral Agent, due and payable
immediately without demand; and

 

(h)           upon the occurrence and during the
continuance of any Event of Default, generally to sell, transfer, lease,
license, pledge, make any agreement with respect to or otherwise deal with any
of the Collateral as fully and completely as though the Collateral Agent were
the absolute owner thereof for all purposes, and to do, at the Collateral Agent’s
option and such Grantor’s expense, at any time or from time to time, all acts
and things that the Collateral Agent deems reasonably necessary to protect,
preserve or realize upon the Collateral and the Collateral Agent’s security
interest therein in order to effect the intent of this Agreement, all as fully
and effectively as such Grantor might do.

 

8.2          No Duty on the Part of
Collateral Agent or Secured Parties.   The powers conferred on the
Collateral Agent hereunder are solely to protect the interests of the Secured
Parties in the Collateral and shall not impose any duty upon the Collateral
Agent or any Secured Party to exercise any such powers.  The Collateral Agent and the Secured Parties
shall be accountable only for amounts that they actually receive as a result of
the exercise of such powers, and neither they nor any of their officers,
directors, employees or agents shall be responsible to any Grantor for any act
or failure to act hereunder, except for their own gross negligence, bad faith
or willful misconduct.

 

26

 

SECTION 9.                            REMEDIES.

 

9.1          Generally.

 

(a)           If any Event of Default shall have occurred
and be continuing, the Collateral Agent may exercise in respect of the
Collateral, in addition to all other rights and remedies provided for herein or
otherwise available to it at law or in equity, all the rights and remedies of a
secured party on default under the UCC (whether or not the UCC applies to the
affected Collateral) to collect, enforce or satisfy any Secured Obligations
then owing, whether by acceleration or otherwise, and also may pursue any of
the following separately, successively or simultaneously:

 

(i)            require any Grantor to, and each Grantor
hereby agrees that it shall at its expense and promptly upon request of the
Collateral Agent forthwith, assemble all or part of the Collateral as directed
by the Collateral Agent and make it available to the Collateral Agent at a
place to be designated by the Collateral Agent that is reasonably convenient to
both parties;

 

(ii)           enter onto the property during normal
business hours where any Collateral is located and take possession thereof with
or without judicial process;

 

(iii)          prior to the disposition of the Collateral,
store, process, repair or recondition the Collateral or otherwise prepare the
Collateral for disposition in any manner to the extent the Collateral Agent
deems reasonably appropriate; and

 

(iv)          without notice except as specified below or
under the UCC, sell, assign, lease, license (on an exclusive or nonexclusive
basis) or otherwise dispose of the Collateral or any part thereof in one or
more parcels at public or private sale, at any of the Collateral Agent’s
offices or elsewhere, for cash, on credit or for future delivery, at such time
or times and at such price or prices and upon such other terms as the
Collateral Agent may deem commercially reasonable.

 

(b)           The Collateral Agent or any Secured Party may
be the purchaser of any or all of the Collateral at any public or private (to
the extent to the portion of the Collateral being privately sold is of a kind
that is customarily sold on a recognized market or the subject of widely
distributed standard price quotations) sale in accordance with the UCC and the
Collateral Agent, as collateral agent for and representative of the Secured
Parties, shall be entitled, for the purpose of bidding and making settlement or
payment of the purchase price for all or any portion of the Collateral sold at
any such sale made in accordance with the UCC, to use and apply any of the
Secured Obligations as a credit on account of the purchase price for any Collateral
payable by the Collateral Agent at such sale. 
Each purchaser at any such sale shall hold the property sold absolutely
free from any claim or right on the part of any Grantor, and each Grantor
hereby waives (to the extent permitted by applicable law) all rights of
redemption, stay and/or appraisal which it now has or may at any time in the
future have under any rule of law or statute now existing or hereafter
enacted.  Each Grantor agrees that, to
the extent notice of sale shall be required by law, at least ten (10) days
notice to such Grantor of the time and place of any public sale or the time
after which any private sale is to be made shall constitute reasonable
notification.  The Collateral Agent shall
not be obligated to make any sale of Collateral regardless of notice of sale
having been given.  The Collateral Agent
may adjourn any public or private sale from time to time by announcement at the
time and place fixed therefor, and such sale may, without further

 

27

 

notice, be made at the
time and place to which it was so adjourned. 
Each Grantor agrees that it would not be commercially unreasonable for
the Collateral Agent to dispose of the Collateral or any portion thereof by using
Internet sites that provide for the auction of assets of the types included in
the Collateral or that have the reasonable capability of doing so, or that
match buyers and sellers of assets.  Each
Grantor hereby waives any claims against the Collateral Agent arising by reason
of the fact that the price at which any Collateral may have been sold at such a
private sale was less than the price which might have been obtained at a public
sale, even if the Collateral Agent accepts the first offer received and does
not offer such Collateral to more than one offeree.  If the proceeds of any sale or other
disposition of the Collateral are insufficient to pay all the Secured
Obligations, Grantors shall be liable for the deficiency and the reasonable
fees of any attorneys employed by the Collateral Agent to collect such
deficiency.  Each Grantor further agrees
that a breach of any of the covenants contained in this Section will cause
irreparable injury to the Collateral Agent, that the Collateral Agent has no
adequate remedy at law in respect of such breach and, as a consequence, that
each and every covenant contained in this Section shall be specifically
enforceable against such Grantor, and such Grantor hereby waives and agrees not
to assert any defenses against an action for specific performance of such
covenants except for a defense that no default has occurred giving rise to the
Secured Obligations becoming due and payable prior to their stated
maturities.  Nothing in this Section shall
in any way alter the rights of the Collateral Agent hereunder.

 

(c)           The Collateral Agent may sell the
Collateral without giving any warranties as to the Collateral.  The Collateral Agent may specifically
disclaim or modify any warranties of title or the like.  This procedure will not be considered to
adversely affect the commercial reasonableness of any sale of the Collateral.

 

(d)           The Collateral Agent shall have no
obligation to marshal any of the Collateral.

 

9.2          Application
of Proceeds.  Except as
expressly provided elsewhere in this Agreement or in the Credit Agreement or in
the Intercreditor Agreement, all proceeds received by the Collateral Agent in
respect of any sale, any collection from, or other realization upon all or any
part of the Collateral shall be applied in full or in part by the Collateral
Agent against, the Secured Obligations in the following order of priority:  first, to the payment of all
reasonable out-of-pocket costs and expenses of such sale, collection or other
realization, including reasonable compensation to the Collateral Agent and its
agents and counsel, and all other reasonable out-of-pocket expenses,
liabilities and advances made or incurred by the Collateral Agent in connection
therewith, and all amounts for which the Collateral Agent is entitled to
indemnification hereunder (in its capacity as the Collateral Agent and not as a
Lender) and all advances made by the Collateral Agent hereunder for the account
of the applicable Grantor, and to the payment of all reasonable out-of-pocket
costs and expenses paid or incurred by the Collateral Agent in connection with
the exercise of any right or remedy hereunder or under the Credit Agreement,
all in accordance with the terms hereof or thereof; second, to the
extent of any excess of such proceeds, to the payment of all other Secured
Obligations for the ratable benefit of the Lenders pursuant to the terms of the
Credit Agreement; and third, to the extent of any excess of such
proceeds and subject to the Intercreditor Agreement, to the payment to or upon
the order of such Grantor or to whosoever may be lawfully entitled to receive
the same or as a court of competent jurisdiction may direct.

 

9.3          Sales
on Credit.  If
Collateral Agent sells any of the Collateral upon credit, Grantor will be
credited only with payments actually made by purchaser and received by 

 

28

 

Collateral
Agent and applied to indebtedness of the purchaser.  In the event the purchaser fails to pay for
the Collateral, Collateral Agent may resell the Collateral and Grantor shall be
credited with proceeds of the sale.

 

9.4          Investment Related Property.  Each Grantor recognizes that, by reason of
certain prohibitions contained in the Securities Act and applicable state
securities laws, the Collateral Agent may be compelled, with respect to any
sale of all or any part of the Investment Related Property conducted without
prior registration or qualification of such Investment Related Property under
the Securities Act and/or such state securities laws, to limit purchasers to
those who will agree, among other things, to acquire the Investment Related
Property for their own account, for investment and not with a view to the
distribution or resale thereof.  Each
Grantor acknowledges that any such private sale may be at prices and on terms
less favorable than those obtainable through a public sale without such
restrictions (including a public offering made pursuant to a registration
statement under the Securities Act) and, notwithstanding such circumstances,
each Grantor agrees that any such private sale shall be deemed to have been
made in a commercially reasonable manner and that the Collateral Agent shall
have no obligation to engage in public sales and no obligation to delay the
sale of any Investment Related Property for the period of time necessary to
permit the issuer thereof to register it for a form of public sale requiring
registration under the Securities Act or under applicable state securities
laws, even if such issuer would, or should, agree to so register it.  If the Collateral Agent determines to exercise
its right to sell any or all of the Investment Related Property, upon written
request, each Grantor shall and shall cause each issuer of any Pledged Stock to
be sold hereunder, each partnership and each limited liability company from
time to time to furnish to the Collateral Agent all such information as the
Collateral Agent may request in order to determine the number and nature of
interest, shares or other instruments included in the Investment Related
Property which may be sold by the Collateral Agent in exempt transactions under
the Securities Act and the rules and regulations of the Securities and
Exchange Commission thereunder, as the same are from time to time in effect.

 

9.5          Grant of Intellectual Property
License.  For the
purpose of enabling the Collateral Agent, during the continuance of an Event of
Default, to exercise the rights and remedies under Section 9 hereof at
such time as the Collateral Agent shall be lawfully entitled to exercise such
rights and remedies, and for no other purpose, each Grantor hereby grants to
the Collateral Agent, to the extent assignable by such Grantor, an irrevocable
(during the continuance of an Event of Default), non-exclusive license
(subject, (i) in the case of Trademarks, to sufficient rights to quality
control and inspection in favor of such Grantor to avoid the risk of
invalidation of such Trademarks, and (ii) in the case of Trade Secrets, to
an obligation of the Collateral Agent to take steps reasonable under the
circumstances to keep the Trade Secrets confidential to avoid the risk of
invalidation of such Trade Secrets) to use or sublicense any of the
Intellectual Property now owned or hereafter acquired by such Grantor, wherever
the same may be located.  Such license
shall include access to all media owned by such Grantor in which any of the
licensed items may be recorded or stored.

 

9.6          Intellectual Property.

 

(a)           Anything contained herein to the contrary
notwithstanding, but subject to Section 1.3, in addition to the other
rights and remedies provided herein, upon the occurrence and during the
continuation of an Event of Default:

 

29

 

(i)            the
Collateral Agent shall have the right (but not the obligation) to bring suit or
otherwise commence any action or proceeding in the name of any Grantor, the
Collateral Agent or otherwise, to enforce any Intellectual Property, in which
event such Grantor shall, at the request of the Collateral Agent, do any and
all lawful acts and execute any and all documents reasonably required by the
Collateral Agent in aid of such enforcement and, subject to Sections 10.2 and
10.3 of the Credit Agreement, such Grantor shall promptly, upon demand,
reimburse and indemnify the Collateral Agent as provided in Section 10
hereof in connection with the exercise of its rights under this Section, and,
to the extent that the Collateral Agent shall elect not to bring suit to
enforce any such Intellectual Property as provided in this Section, each
Grantor agrees to use all reasonable measures, whether by action, suit,
proceeding or otherwise, to prevent the infringement or other violation of any
of such Grantor’s rights in such Intellectual Property by others and for that
purpose agrees to diligently maintain any action, suit or proceeding against
any Person so infringing as shall be necessary to prevent such infringement or
violation;

 

(ii)           upon
written demand from the Collateral Agent, each Grantor shall grant, assign,
convey or otherwise transfer to the Collateral Agent or such Collateral Agent’s
designee all of such Grantor’s right, title and interest in and to the
Intellectual Property and shall execute and deliver to the Collateral Agent
such documents as are necessary or appropriate to carry out the intent and
purposes of this Agreement;

 

(iii)          each
Grantor agrees that such an assignment and/or recording shall be applied to reduce
the Secured Obligations outstanding only to the extent that the Collateral
Agent (or any Secured Party) receives cash proceeds in respect of the sale of,
or other realization upon, the Intellectual Property;

 

(iv)          the
Collateral Agent shall have the right to notify, or require each Grantor to
notify, any obligors with respect to amounts due or to become due to such
Grantor in respect of the Intellectual Property, of the existence of the
security interest created herein, to direct such obligors to make payment of
all such amounts directly to the Collateral Agent, and, upon such notification
and at the expense of such Grantor, to enforce collection of any such amounts
and to adjust, settle or compromise the amount or payment thereof, in the same
manner and to the same extent as such Grantor might have done;

 

(v)           all
amounts and proceeds (including checks and other instruments) received by
Grantor in respect of amounts due to such Grantor in respect of the Collateral
or any portion thereof shall be received in trust for the benefit of the
Collateral Agent hereunder, shall be segregated from other funds of such
Grantor and shall be forthwith paid over or delivered to the Collateral Agent
in the same form as so received (with any necessary endorsement) to be held as
cash Collateral and applied as provided by Section 9.7 hereof; provided,
however, that until the Discharge of First Lien Obligations has occurred, the
requirements for delivery under this paragraph shall be deemed to have been
satisfied by delivery of such Collateral to the First Lien Collateral Agent;
and

 

(vi)          Grantor
shall not adjust, settle or compromise the amount or payment of any such amount
or release wholly or partly any obligor with respect thereto or allow any
credit or discount thereon.

 

30

 

(b)           If (i) an Event of Default shall have
occurred and, by reason of cure, waiver, modification, amendment or otherwise,
no longer be continuing, (ii) no other Event of Default shall have
occurred and be continuing, (iii) an assignment or other transfer to the
Collateral Agent of any rights, title and interests in and to the Intellectual
Property shall have been previously made and shall have become absolute and
effective, and (iv) the Secured Obligations shall not have become
immediately due and payable, upon the written request of any Grantor, the
Collateral Agent shall promptly execute and deliver to such Grantor, at such
Grantor’s sole cost and expense, such assignments or other transfer as may be necessary
to reassign to such Grantor any such rights, title and interests as may have
been assigned to the Collateral Agent as aforesaid, subject to any disposition
thereof that may have been made by the Collateral Agent; provided, after giving
effect to such reassignment, the Collateral Agent’s security interest granted
pursuant hereto, as well as all other rights and remedies of the Collateral
Agent granted hereunder, shall continue to be in full force and effect; and
provided further, the rights, title and interests so reassigned shall be free
and clear of any other Liens granted by or on behalf of the Collateral Agent
and the Secured Parties.

 

9.7          Cash
Proceeds; Deposit Accounts.   (a)  If any Event of Default shall have
occurred and be continuing, in addition to the rights of the Collateral Agent
specified in Section 6.5 with respect to payments of Receivables, upon the
Collateral Agent giving notice to the applicable Grantor (other than in the
case of an Event of Default under Sections 8.1(f) and 8.1(g) of the
Credit Agreement), all proceeds of any Collateral received by any Grantor
consisting of cash, checks and other near-cash items (collectively, “Cash Proceeds”) shall be held by such
Grantor in trust for the Collateral Agent, segregated from other funds of such
Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to
the Collateral Agent in the exact form received by such Grantor (duly indorsed
by such Grantor to the Collateral Agent, if required) and held by the
Collateral Agent in the Collateral Account to the extent required to pay
Secured Obligations due and payable; provided, however, that until the
Discharge of First Lien Obligations has occurred, the requirements for delivery
under this paragraph shall be deemed to have been satisfied by delivery of such
Collateral to the First Lien Collateral Agent. 
Any Cash Proceeds received by the Collateral Agent (whether from a
Grantor or otherwise) shall be applied by the Collateral Agent against the
Secured Obligations then due and owing.

 

(b)  If any Event of
Default shall have occurred and be continuing, the Collateral Agent may, upon
giving notices to the applicable Grantor (other than in the case of an Event of
Default under Sections 8.1(f) and 8.1(g) of the Credit Agreement),
apply the balance from any Deposit Account or instruct the bank at which any
Deposit Account is maintained to pay the balance of any Deposit Account to or
for the benefit of the Collateral Agent to be applied by the Collateral Agent
against the Secured Obligations then due and owing.

 

SECTION 10.       COLLATERAL AGENT.

 

The Collateral Agent has
been appointed to act as Collateral Agent hereunder by Lenders and, by their
acceptance of the benefits hereof, the other Secured Parties. The Collateral
Agent shall be obligated, and shall have the right hereunder, to make demands,
to give notices, to exercise or refrain from exercising any rights, and to take
or refrain from taking any action (including, without limitation, the release
or substitution of Collateral), solely in accordance with this Agreement and
the Credit Agreement.  In furtherance of
the foregoing provisions of this Section, each Secured Party, by its acceptance
of the benefits hereof, agrees that it shall have no right individually to
realize upon any of the Collateral hereunder, it being understood and agreed by
such Secured Party that all rights and remedies hereunder may be exercised
solely by the 

 

31

 

Collateral
Agent for the benefit of Secured Parties in accordance with the terms of this
Section.   The provisions of the Credit
Agreement relating to the Collateral Agent including, without limitation, the
provisions relating to resignation of the Collateral Agent and the powers and
duties and immunities of the Collateral Agent are incorporated herein by this
reference and shall survive any termination of the Credit Agreement.

 

SECTION 11.       CONTINUING SECURITY INTEREST; TRANSFER OF LOANS.

 

This Agreement shall create
a continuing security interest in the Collateral and shall remain in full force
and effect until the payment in full of all Secured Obligations (other than
contingent obligations), be binding upon each Grantor, its successors and
assigns, and inure, together with the rights and remedies of the Collateral
Agent hereunder, to the benefit of the Collateral Agent and its successors and
permitted assigns.  Without limiting the
generality of the foregoing, but subject to the terms of the Credit Agreement,
any Lender may assign or otherwise transfer any Loans held by it to any other
Person, and such other Person shall thereupon become vested with all the
benefits in respect thereof granted to Lenders herein or otherwise.  Upon the payment in full of all Secured
Obligations (other than contingent obligations), the security interest granted
hereby shall automatically terminate hereunder and of record and, subject to
the Intercreditor Agreement, all rights to the Collateral shall revert to
Grantors.  Upon any such termination the
Collateral Agent shall, at Grantors’ expense, execute and deliver to Grantors
or otherwise authorize the filing of such documents as Grantors shall
reasonably request, including financing statement amendments to evidence such
termination.  Upon any disposition of
property permitted by the Credit Agreement, the Liens granted herein shall be
deemed to be automatically released and such property shall automatically
revert to the applicable Grantor with no further action on the part of any
Person.  The Collateral Agent shall, at
Grantor’s expense, execute and deliver or otherwise authorize the filing of
such documents as Grantors shall reasonably request, in form and substance
reasonably satisfactory to the Collateral Agent, including financing statement
amendments to evidence such release.

 

SECTION 12.       STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.

 

The powers conferred on the
Collateral Agent hereunder are solely to protect its interest in the Collateral
and shall not impose any duty upon it to exercise any such powers.  Except for the exercise of reasonable care in
the custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, the Collateral Agent shall have no duty as
to any Collateral or as to the taking of any necessary steps to preserve rights
against prior parties or any other rights pertaining to any Collateral.  The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of Collateral in its
possession if such Collateral is accorded treatment substantially equal to that
which the Collateral Agent accords its own property.  Neither the Collateral Agent nor any of its
directors, officers, employees or agents shall be liable for failure to demand,
collect or realize upon all or any part of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or otherwise.  If any Grantor fails to perform any agreement
contained herein, the Collateral Agent may itself perform, or cause performance
of, such agreement, and the expenses of the Collateral Agent incurred in
connection therewith shall be payable by each Grantor under Section 10.2
of the Credit Agreement.

 

32

 

SECTION 13.       MISCELLANEOUS.

 

Any notice required or
permitted to be given under this Agreement shall be given in accordance with Section 10.1
of the Credit Agreement.  No failure or
delay on the part of the Collateral Agent in the exercise of any power, right
or privilege hereunder or under any other Credit Document shall impair such
power, right or privilege or be construed to be a waiver of any default or
acquiescence therein, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of any
other power, right or privilege.  All
rights and remedies existing under this Agreement and the other Credit
Documents are cumulative to, and not exclusive of, any rights or remedies
otherwise available.  In case any
provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired
thereby.  All covenants hereunder shall
be given independent effect so that if a particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or would otherwise be within the limitations of, another covenant
shall not avoid the occurrence of a Default or an Event of Default if such
action is taken or condition exists. 
This Agreement shall be binding upon and inure to the benefit of the
Collateral Agent and Grantors and their respective successors and assigns.  No Grantor shall, without the prior written
consent of (I) until the Discharge of the First Lien Obligations has
occurred, the First Lien Collateral Agent, and (II) thereafter, the
Collateral Agent given in accordance with the Credit Agreement, assign any
right, duty or obligation hereunder. 
This Agreement and the other Credit Documents embody the entire
agreement and understanding between Grantors and the Collateral Agent and
supersede all prior agreements and understandings between such parties relating
to the subject matter hereof and thereof. 
Accordingly, the Credit Documents may not be contradicted by evidence of
prior, contemporaneous or subsequent oral agreements of the parties.  There are no unwritten oral agreements
between the parties.  This Agreement may
be executed in one or more counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document.  Delivery of an executed signature page to
this Agreement by facsimile or electronic transmission (in .pdf format) shall
be as effective as delivery of a manually signed counterpart of this Agreement.

 

THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL
CLAIMS AND CONTROVERSIES ARISING OUT OF THE SUBJECT MATTER HEREOF WHETHER
SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THAT WOULD RESULT IN THE
APPLICATION OF ANY OTHER LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC
RELATING TO THE LAW GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OF THE
SECURITY INTEREST).

 

THE
PROVISIONS OF THE CREDIT AGREEMENT UNDER THE HEADINGS “CONSENT TO JURISDICTION”
AND “WAIVER OF JURY TRIAL” ARE INCORPORATED HEREIN BY THIS REFERENCE AND SUCH
INCORPORATION SHALL SURVIVE ANY TERMINATION OF THE CREDIT AGREEMENT.

 

33

 

IN WITNESS WHEREOF, each
Grantor and the Collateral Agent have caused this Agreement to be duly executed
and delivered by their respective officers thereunto duly authorized as of the
date first written above.

 

 

	
   

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name: Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name: Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name: Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  

 

34

 

	
   

  	
  BOISE
  WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE
  PACKAGING & NEWSPRINT,

  
	
   

  	
   

  	
  L.L.C.

  
	
   

  	
  BOISE
  CASCADE TRANSPORTATION

  
	
   

  	
   

  	
  HOLDINGS
  CORP.

  
	
   

  	
  BOISE
  WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE
  WHITE PAPER HOLDINGS CORP.

  
	
   

  	
  INTERNATIONAL
  FALLS POWER 

  
	
   

  	
   

  	
  COMPANY

  
	
   

  	
  MINNESOTA,
  DAKOTA & WESTERN 

  
	
   

  	
   

  	
  RAILWAY
  COMPANY

  
	
   

  	
  BEMIS
  CORPORATION

  
	
   

  	
  BC
  CHINA CORPORATION

  
	
   

  	
  B C T, INC.,

  
	
   

  	
  as Grantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name: Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  

 

35

 

	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  
	
   

  	
  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Laurie B. Perper

  
	
   

  	
   

  	
  Name: Laurie B. Perper

  
	
   

  	
   

  	
  Title: Managing Director

  

 

36

 

SCHEDULE 5.1

TO PLEDGE AND SECURITY AGREEMENT

 

GENERAL
INFORMATION

 

(A)          Full Legal Name, Type of
Organization, Jurisdiction of Organization, Chief Executive Office/Sole Place
of Business and Organizational Identification Number of each Grantor:

 

	
  Full
  Legal

  Name

  	
   

  	
  Type of

  Organization

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Chief Executive

  Office/Sole Place of 

  Business

  	
   

  	
  Organization I.D.#

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B)           Other Names (including any
Trade Name or Fictitious Business Name) under which each Grantor currently
conducts business:

 

	
  Full
  Legal Name

  	
   

  	
  Trade Name or Fictitious Business Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

(C)           Changes in Name,
Jurisdiction of Organization, Chief Executive Office or Sole Place of Business
and Corporate Structure within the past year:

 

	
  Grantor

  	
   

  	
  Date of Change

  	
   

  	
  Description of Change

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(D)          Agreements pursuant to which
any Grantor is bound as debtor within the last year:

 

	
  Grantor

  	
   

  	
  Description of Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5.1-1

 

SCHEDULE 5.2

TO PLEDGE AND SECURITY AGREEMENT

 

COLLATERAL
IDENTIFICATION

 

I.              INVESTMENT
RELATED PROPERTY

 

(A)          Pledged Stock:

 

	
  Grantor

  	
   

  	
  Stock

  Issuer

  	
   

  	
  Class of

  Stock

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Stock

  Certificate

  No.

  	
   

  	
  Par Value

  	
   

  	
  No. of

  Pledged

  Stock

  	
   

  	
  Percentage

  of

  Outstanding

  Stock of the

  Stock Issuer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
LLC Interests:

 

	
  Grantor

  	
   

  	
  Limited

  Liability

  Company

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  No. of Pledged

  Units

  	
   

  	
  Percentage of

  Outstanding

  LLC Interests of

  the Limited

  Liability

  Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Partnership Interests:

 

	
  Grantor

  	
   

  	
  Partnership

  	
   

  	
  Type of

  Partnership

  Interests (e.g.,

  general or

  limited)

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  Percentage of 

  Outstanding

  Partnership

  Interests of the 

  Partnership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Trust Interests:

 

	
  Grantor

  	
   

  	
  Trust

  	
   

  	
  Class of Trust

  Interests

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  Percentage of

  Outstanding

  Trust Interests 

  of the Trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Debt:

 

	
  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Original

  Principal

  Amount

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Issue Date

  	
   

  	
  Maturity Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5.2-1

 

Securities
Accounts:

 

	
  Grantor

  	
   

  	
  Share of Securities

  Intermediary

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Deposit
Accounts:

 

	
  Grantor

  	
   

  	
  Name of Depositary Bank

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Commodities
Accounts:

 

	
  Grantor

  	
   

  	
  Name of Commodities

  Intermediary

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II.  INTELLECTUAL PROPERTY

 

(A)          Copyrights

 

	
  Grantor

  	
   

  	
  Description of Copyright

  	
   

  	
  Registration Number (if

  any)

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B)           Copyright Licenses

 

	
  Grantor

  	
   

  	
  Description of Copyright

  License

  	
   

  	
  Registration Number (if

  any) of underlying

  Copyright

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(C)           Patents

 

	
  Grantor

  	
   

  	
  Description of Patent

  	
   

  	
  Registration Number

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5.2-2

 

(D)          Patent Licenses

 

	
  Grantor

  	
   

  	
  Description of Patent

  License

  	
   

  	
  Registration Number of

  underlying Patent

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(E)           Trademarks

 

	
  Grantor

  	
   

  	
  Description of Trademark

  	
   

  	
  Registration Number

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(F)           Trademark Licenses

 

	
  Grantor

  	
   

  	
  Description of Trademark

  License

  	
   

  	
  Registration Number of

  underlying Trademark

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(G)           Trade Secret Licenses

 

III.
COMMERCIAL TORT CLAIMS

 

	
  Grantor

  	
   

  	
  Commercial Tort Claims

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

IV. LETTER OF CREDIT RIGHTS

 

	
  Grantor

  	
   

  	
  Description of Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

V.  WAREHOUSEMAN, BAILEES AND
OTHER THIRD PARTIES IN POSSESSION OF COLLATERAL

 

	
  Grantor

  	
   

  	
  Description of Property

  	
   

  	
  Name and Address of Third Party

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5.2-3

 

VI.  TIMBER

 

	
  Grantor

  	
   

  	
  Location

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5.2-4

 

SCHEDULE 5.4 TO

PLEDGE AND SECURITY AGREEMENT

 

FINANCING STATEMENTS:

 

	
  Grantor

  	
   

  	
  Filing Jurisdiction(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5.4-1

 

SCHEDULE 5.5

TO PLEDGE AND SECURITY AGREEMENT

 

	
  Grantor

  	
   

  	
  Location of Equipment and Inventory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5.5-1

 

EXHIBIT A

TO PLEDGE AND SECURITY AGREEMENT

 

PLEDGE
SUPPLEMENT

 

This PLEDGE SUPPLEMENT, dated [mm/dd/yy], is
delivered by [NAME OF GRANTOR] a [NAME OF STATE OF INCORPORATION] [Corporation] (the “Grantor”)
pursuant to the Pledge and Security Agreement (Second Lien), dated as of February 22,
2008  (as it may be from time to
time amended, restated, modified or supplemented, the “Security Agreement”),
among Aldabra Holding Sub LLC, a Delaware
limited liability company, Aldabra Sub LLC,
a Delaware limited liability company, to be merged with and into Boise Paper Holdings, L.L.C., a Delaware limited liability
company, the other Grantors named therein, and Lehman Commercial Paper Inc., as the Collateral Agent.  Capitalized terms used herein not otherwise
defined herein shall have the meanings ascribed thereto in the Security
Agreement.

 

Grantor hereby confirms the
grant to the Collateral Agent set forth in the Security Agreement of, and does
hereby grant to the Collateral Agent, a security interest in all of Grantor’s
right, title and interest in and to all Collateral to secure the Secured
Obligations, in each case whether now or hereafter existing or in which Grantor
now has or hereafter acquires an interest and wherever the same may be
located.  Grantor represents and warrants
that the attached Supplements to Schedules accurately and completely in all
material respects set forth the additional information required to be provided
pursuant to the Security Agreement and hereby agrees that such Supplements to
Schedules shall constitute part of the Schedules to the Security Agreement.

 

THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL
CLAIMS AND CONTROVERSIES ARISING OUT OF THE SUBJECT MATTER HEREOF WHETHER
SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THAT WOULD RESULT IN THE
APPLICATION OF ANY OTHER LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC
RELATING TO THE LAW GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OF THE
SECURITY INTEREST).

 

IN WITNESS
WHEREOF, Grantor has caused this Pledge Supplement to be duly executed and
delivered by its duly authorized officer as of [mm/dd/yy].

 

	
   

  	
  [NAME OF GRANTOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-1

 

SUPPLEMENT TO SCHEDULE 5.1

TO PLEDGE AND SECURITY AGREEMENT

 

Additional Information:

 

GENERAL
INFORMATION

 

(A)          Full Legal Name, Type of
Organization, Jurisdiction of Organization, Chief Executive Office/Sole Place
of Business and Organizational Identification Number of each Grantor:

 

	
  Full Legal

  Name

  	
   

  	
  Type of

  Organization

  	
   

  	
  Jurisdiction of 

  Organization

  	
   

  	
  Chief Executive

  Office/Sole Place of

  Business

  	
   

  	
  Organization I.D.#

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B)          Other Names (including any
Trade Name or Fictitious Business Name) under which each Grantor currently
conducts business:

 

	
  Full Legal Name

  	
   

  	
  Trade Name or Fictitious Business Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

(C)          Changes in Name,
Jurisdiction of Organization, Chief Executive Office or Sole Place of Business
and Corporate Structure within the past year:

 

	
  Grantor

  	
   

  	
  Date of Change

  	
   

  	
  Description of Change

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(D)          Agreements pursuant to which
any Grantor is bound as debtor within the past year:

 

	
  Grantor

  	
   

  	
  Description of Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-2

 

SUPPLEMENT TO SCHEDULE 5.2

TO PLEDGE AND SECURITY AGREEMENT

 

COLLATERAL
IDENTIFICATION

 

I.   INVESTMENT RELATED PROPERTY

 

(A)          Pledged Stock:

 

	
  Grantor

  	
   

  	
  Stock

  Issuer

  	
   

  	
  Class of

  Stock

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Stock

  Certificate

  No.

  	
   

  	
  Par

  Value

  	
   

  	
  No. of

  Pledged

  Stock

  	
   

  	
  Percentage

  of

  Outstanding

  Stock of the

  Stock Issuer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
LLC Interests:

 

	
  Grantor

  	
   

  	
  Limited

  Liability

  Company

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  No. of Pledged 

  Units

  	
   

  	
  Percentage of 

  Outstanding

  LLC Interests of

  the Limited

  Liability

  Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Partnership Interests:

 

	
  Grantor

  	
   

  	
  Partnership

  	
   

  	
  Type of

  Partnership

  Interests (e.g.,

  general or

  limited)

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  Percentage of 

  Outstanding

  Partnership

  Interests of the 

  Partnership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Trust Interests:

 

	
  Grantor

  	
   

  	
  Trust

  	
   

  	
  Class of Trust

  Interests

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Certificate No. 

  (if any)

  	
   

  	
  Percentage of 

  Outstanding

  Trust Interests 

  of the Trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Debt:

 

	
  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Original

  Principal

  Amount

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Issue Date

  	
   

  	
  Maturity Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-3

 

Securities
Account:

 

	
  Grantor

  	
   

  	
  Share of Securities

  Intermediary

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Deposit
Accounts:

 

	
  Grantor

  	
   

  	
  Name of Depositary Bank

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Commodities
Accounts:

 

	
  Grantor

  	
   

  	
  Name of Commodities

  Intermediary

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

II.  INTELLECTUAL PROPERTY

 

(A)          Copyrights

 

	
  Grantor

  	
   

  	
  Description of Copyright

  	
   

  	
  Registration Number (if

  any)

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B)           Copyright Licenses

 

	
  Grantor

  	
   

  	
  Description of Copyright

  License

  	
   

  	
  Registration Number (if

  any) of underlying

  Copyright

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(C)           Patents

 

	
  Grantor

  	
   

  	
  Description of Patent

  	
   

  	
  Registration Number

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-4

 

(D)          Patent Licenses

 

	
  Grantor

  	
   

  	
  Description of Patent

  License

  	
   

  	
  Registration Number of

  underlying Patent

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(E)           Trademarks

 

	
  Grantor

  	
   

  	
  Description of Trademark

  	
   

  	
  Registration Number

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(F)           Trademark Licenses

 

	
  Grantor

  	
   

  	
  Description of Trademark

  License

  	
   

  	
  Registration Number of

  underlying Trademark

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(G)           Trade Secret Licenses

 

III.
COMMERCIAL TORT CLAIMS

 

	
  Grantor

  	
   

  	
  Commercial Tort Claims

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

IV. LETTER OF CREDIT RIGHTS

 

	
  Grantor

  	
   

  	
  Description of Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-5

 

V.  WAREHOUSEMAN, BAILEES AND OTHER THIRD PARTIES
IN POSSESSION OF COLLATERAL

 

	
  Grantor

  	
   

  	
  Description of Property

  	
   

  	
  Name and Address of Third Party

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

VI.  TIMBER

 

	
  Grantor

  	
   

  	
  Location

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-6

 

SUPPLEMENT
TO SCHEDULE 5.4 TO

PLEDGE
AND SECURITY AGREEMENT

 

Financing Statements:

 

	
  Grantor

  	
   

  	
  Filing Jurisdiction(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-7

 

SUPPLEMENT TO SCHEDULE 5.5

TO PLEDGE AND SECURITY AGREEMENT

 

	
  Name of Grantor

  	
   

  	
  Location of Equipment and Inventory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-8

 

EXHIBIT B

TO PLEDGE AND SECURITY AGREEMENT

 

UNCERTIFICATED
SECURITIES CONTROL AGREEMENT

 

This Uncertificated
Securities Control Agreement dated as of [                             ],
20[        ] (the “Agreement”)
among [                                        ]
(the “Pledgor”),
Goldman Sachs Credit Partners L.P., as collateral agent for the Secured Parties
under the First Lien Security Agreement (as defined herein) (the “First Lien Collateral
Agent”), Lehman Commercial Paper Inc., as collateral agent for the
Secured Parties referred to in the Second Lien Security Agreement (as defined
herein) (the “Second Lien Collateral Agent” and,
together with the First Lien Collateral Agent, the “Collateral
Agents”) and [                      ],
a [               ]
[corporation] (the “Issuer”) is delivered pursuant to (i) Section 4.2
of the Pledge and Security Agreement (First Lien) (as amended, supplemented or
otherwise modified from time to time, the “First Lien Security
Agreement”) dated as of February 22, 2008 among Aldabra Holding Sub LLC,  a Delaware limited liability company, Aldabra Sub LLC, a Delaware limited liability company, to be
merged with and into Boise Paper Holdings,
L.L.C., a Delaware limited liability company, the other Grantors
party thereto and the First Lien Collateral Agent, and (ii) Section 4.2
of the Pledge and Security Agreement (Second Lien) (as amended, supplemented or
otherwise modified from time to time, the “Second Lien Security
Agreement”) dated as of February 22, 2008 among Aldabra Holding Sub LLC, Aldabra Sub LLC, Boise Paper Holdings, L.L.C., the other Grantors party
thereto and the Second Lien Collateral Agent. 
Capitalized terms used but not defined herein shall have the meaning
assigned in the First Lien Security Agreement. 
All references herein to the “UCC”
shall mean the Uniform Commercial Code as in effect in the State of New York.

 

Section 1.  Registered Ownership of Shares.  The Issuer hereby confirms and agrees that as
of the date hereof the Pledgor is the registered owner of [                          ]
shares of the Issuer’s [common] stock (the “Pledged Shares”) and the Issuer
shall not change the registered owner of the Pledged Shares without the prior
written consent of the First Lien Collateral Agent (or, if the First Lien
Collateral Agent has delivered a Notice of Termination (as defined below), the
Second Lien Collateral Agent).

 

Section 2.  Instructions.  If at any time the Issuer shall receive
instructions originated by the First Lien Collateral Agent or the Second Lien
Collateral Agent (with, until the First Lien Collateral Agent shall have
delivered to the Issuer a Notice of Termination, the consent of the First Lien
Collateral Agent) relating to the Pledged Shares, the Issuer shall comply with
such instructions without further consent by the Pledgor or any other
person.  The Collateral Agents hereby agree
that it shall not give any instructions relating to the Pledged Shares unless
an Event of Default has occurred and is continuing.

 

Section 3.  Additional Representations and Warranties of
the Issuer.  The Issuer
hereby represents and warrants to the Collateral Agents:

 

(a)  It has not entered
into, and until the termination of this Agreement will not enter into, any
agreement with any other person relating the Pledged Shares pursuant to which
it has agreed to comply with instructions issued by such other person; and

 

B-9

 

(b)  It has not entered
into, and until the termination of this Agreement will not enter into, any
agreement with the Pledgor or the Collateral Agents purporting to limit or
condition the obligation of the Issuer to comply with Instructions as set forth
in Section 2 hereof.

 

(c)  Except for the
claims and interest of the Collateral Agents and of the Pledgor in the Pledged
Shares, the Issuer does not know of any claim to, or interest in, the Pledged
Shares.  If any person asserts any lien,
encumbrance or adverse claim (including any writ, garnishment, judgment,
warrant of attachment, execution or similar process) against the Pledged
Shares, the Issuer will promptly upon obtaining notice thereof notify the
Collateral Agents and the Pledgor thereof.

 

(d)  This Agreement is
the valid and legally binding obligation of the Issuer.

 

Section 4.  Choice of Law.  This Agreement shall be governed by the laws
of the State of New York.

 

Section 5.   Conflict with Other Agreements.  In the event of any conflict between this
Agreement (or any portion thereof) and any other agreement (except for the
Credit Agreement and other Credit Documents) now existing or hereafter entered
into, the terms of this Agreement shall prevail.  No amendment or modification of this
Agreement or waiver of any right hereunder shall be binding on any party hereto
unless it is in writing and is signed by all of the parties hereto.

 

Section 6.  Voting Rights.  Until such time as the Collateral Agents
shall otherwise instruct the Issuer in writing, the Pledgor shall have the
right to vote the Pledged Shares.  The
Collateral Agent hereby agrees not to give any such instruction unless an Event
of Default has occurred and is continuing.

 

Section 7.  Successors; Assignment.  The terms of this Agreement shall be binding
upon, and shall inure to the benefit of, the parties hereto and their
respective corporate successors or heirs and personal representatives who
obtain such rights solely by operation of law. 
The Collateral Agents may assign their rights hereunder only (i) with
the express written consent of the Issuer and (ii) by sending written
notice of such assignment to the Pledgor.

 

Section 8.   Indemnification
of Issuer.  The Pledgor and
the Collateral Agents hereby agree that (a) the Issuer is released from
any and all liabilities to the Pledgor and the Collateral Agents arising from
the terms of this Agreement and the compliance of the Issuer with the terms
hereof, except to the extent that such liabilities arise from the Issuer’s
negligence, willful misconduct, bad faith or material breach of this Agreement
and (b) the Pledgor, its successors and assigns shall at all times
indemnify and save harmless the Issuer from and against any and all claims,
actions and suits of others arising out of the terms of this Agreement or the
compliance of the Issuer with the terms hereof, except to the extent that such
arises from the Issuer’s negligence, willful misconduct, bad faith or material
breach of this Agreement, and from and against any and all liabilities, actual
losses, damages, reasonable, out-of-pocket costs and expenses, charges,
reasonable counsel fees and other expenses of every nature and character
arising by reason of the same, until the termination of this Agreement.

 

Section 9.  Notices.  Any notice, request or other communication
required or permitted to be given under this Agreement shall be in writing and
deemed to have been properly given when delivered in person, or when sent by
telecopy or other electronic means and electronic confirmation of error free
receipt is received or two (2) days after being sent by certified or 

 

B-10

 

registered
United States mail, return receipt requested, postage prepaid, addressed to the
party at the address set forth below.

 

	
  Pledgor:

  	
  [Name
  and Address of Pledgor]

  
	
   

  	
  Attention: [                                ]

  
	
   

  	
  Telecopier: [                                ]

  
	
   

  	
   

  
	
  First
  Lien

  	
   

  
	
  Collateral
  Agent:

  	
  Goldman Sachs Credit Partners, L.P.

  
	
   

  	
  c/o
  Goldman, Sachs & Co.

  
	
   

  	
  30
  Hudson Street, 36th Floor

  
	
   

  	
  Jersey
  City, NJ 07302

  
	
   

  	
  Attention:
  SBD Operations

  
	
   

  	
  Attention: 
  Andrew Caditz

  
	
   

  	
  Telecopier: 
  (212) 428-1243

  
	
   

  	
  Email:
  gsd.link@gs.com

  
	
   

  	
   

  
	
   

  	
  with
  a copy to:

  
	
   

  	
   

  
	
   

  	
  Goldman
  Sachs Credit Partners L.P.

  
	
   

  	
  1
  New York Plaza

  
	
   

  	
  New
  York, New York 10004

  
	
   

  	
  Attention: 
  Rob Schatzman

  
	
   

  	
  Telecopier: 
  (212) 902-3000

  
	
   

  	
   

  
	
  Second
  Lien

  	
   

  
	
  Collateral
  Agent:

  	
  Lehman Commercial Paper Inc.

  
	
   

  	
  745
  Seventh Avenue

  
	
   

  	
  New
  York, NY 10019

  
	
   

  	
  Attention:
  Maritza Ospina

  
	
   

  	
  Telecopier: 
  (646) 758-4648

  
	
   

  	
   

  
	
  Issuer:

  	
  [Insert
  Name and Address of Issuer]

  
	
   

  	
  Attention: [                                ]

  
	
   

  	
  Telecopier: [                                ]

  

 

Any party may change its
address for notices in the manner set forth above.

 

Section 10.  Termination.  The obligations of the Issuer to the First
Lien Collateral Agent pursuant to this Agreement shall continue in effect until
the security interest of the First Lien Collateral Agent in the Pledged Shares
has been terminated pursuant to the terms of the First Lien Security
Agreement.   The First Lien Collateral
Agent shall notify the Issuer of such termination in writing.  The obligations of the Issuer to the Second
Lien Collateral Agent pursuant to this Agreement shall continue in effect until
the security interest of the Second Lien Collateral Agent in the Pledged Shares
has been terminated pursuant to the terms of the Second Lien Security
Agreement.  The Second Lien Collateral
Agent shall notify the Issuer of such termination in writing.  Each Collateral Agent agrees to provide
Notice of Termination (“Notice of Termination”)
in substantially the form of Exhibit A hereto to the Issuer upon the
request of the Pledgor on or after the termination of the applicable Collateral
Agent’s security interest in the Pledged Shares pursuant to the terms of the
applicable Security Agreement.  The
termination of this Agreement shall not terminate the Pledged Shares or alter
the obligations of the Issuer to the Pledgor pursuant to any other agreement
with respect to the Pledged Shares.

 

B-11

 

Section 11.  Intercreditor Agreement.  The terms and conditions of
this Agreement and the lien and security interest granted to the Collateral
Agents pursuant to this Agreement and the exercise of any right or remedy by
the Collateral Agents hereunder are subject to the terms and conditions of the
Intercreditor Agreement in all respects. 
In the event of any conflict between the terms and conditions of this
Agreement and the terms and conditions of the Intercreditor Agreement, such
conflict shall be resolved in accordance with Section 8.1 of the
Intercreditor Agreement.

 

Section 12.  Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall constitute one and the same instrument, and
any party hereto may execute this Agreement by signing and delivering one or
more counterparts.  Delivery of an
executed signature page to this Agreement by facsimile, Adobe .pdf file or
other electronic transmission shall be as effective as delivery of a manually
signed counterpart of this Agreement.

 

	
   

  	
  [NAME OF PLEDGOR],

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS 

  L.P.,

  
	
   

  	
  as First Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  
	
   

  	
  as Second Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF ISSUER],

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-12

 

Exhibit A

 

[Letterhead of First Lien Collateral Agent/
Second Lien Collateral Agent]

 

[Date]

 

[Name and Address of Issuer]

Attention: [                                  ]

 

Re:  Termination
of Uncertificated Securities Control Agreement

 

You are hereby notified that
the Uncertificated Securities Control Agreement between you, [Name of Pledgor]
(the “Pledgor”), [First Lien Collateral
Agent/ Second Lien Collateral Agent] and the undersigned (a copy of which is
attached) is terminated and you have no further obligations to the undersigned
pursuant to such Agreement. 
Notwithstanding any previous instructions to you, you are hereby
instructed to accept all future directions with respect to Pledged Shares (as
defined in the Agreement) from the Pledgor. 
[IF THE AGREEMENT IS TO REMAIN IN EFFECT WITH RESPECT TO THE FIRST LIEN
COLLATERAL AGENT/ SECOND LIEN COLLATERAL AGENT, ADD: Note however, that the
Agreement remains in effect with respect to the First Lien Collateral Agent/
Second Lien Collateral Agent.] [IF THE AGREEMENT IS BEING TERMINATED AS TO ALL
PARTIES, ADD: Notwithstanding any previous instructions to you, you are hereby
instructed to accept all future directions with respect to the Pledged Shares
from the Pledgor.]   This notice terminates any obligations you
may have to the undersigned with respect to the Pledged Shares, however nothing
contained in this notice shall alter any obligations which you may otherwise
owe to the Pledgor pursuant to any other agreement.

 

You are instructed to
deliver a copy of this notice by facsimile transmission to the Pledgor.

 

	
   

  	
  Very truly yours,

  
	
   

  	
  [Goldman Sachs Credit Partners L.P., as First

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-13

 

EXHIBIT C

TO PLEDGE AND SECURITY AGREEMENT

 

SECURITIES
ACCOUNT CONTROL AGREEMENT

 

This Securities Account
Control Agreement dated as of [                      ],
20[     ] (this “Agreement”) among [                                            ]
(the “Debtor”),
Goldman Sachs Credit Partners L.P., as collateral agent for the Secured Parties
referred to in the First Lien Security Agreement (as defined herein) (the “First Lien Collateral Agent”), Lehman Commercial Paper Inc.,
as collateral agent for the Secured Parties referred to in the Second Lien
Security Agreement (as defined herein) (the “Second Lien
Collateral Agent” and, together with the First Lien Collateral
Agent, the “Collateral Agents”) and [                                 ],
in its capacity as a “securities intermediary” as defined in Section 8-102
of the UCC (in such capacity, the “Securities Intermediary”) is
delivered pursuant to (i) Section 4.2 of the Pledge and Security
Agreement (First Lien) (as amended, supplemented or otherwise modified from
time to time, the “First Lien Security
Agreement”), dated as of February 22, 2008 among Aldabra Holding Sub LLC,  a Delaware limited liability company, Aldabra Sub LLC, a
Delaware limited liability company, to be merged with and into  Boise Paper Holdings, L.L.C., a Delaware limited liability
company, the other Grantors party thereto and the First Lien Collateral Agent,
and (ii) Section 4.2 of the Pledge and Security Agreement (Second
Lien) (as amended, supplemented or otherwise modified from time to time, the “Second Lien Security Agreement” and, together with the First
Lien Security Agreement, the “Security Agreements”),
dated as of February 22, 2008 among Aldabra Holding Sub LLC, Aldabra Sub LLC, Boise Paper Holdings,
L.L.C., the other Grantors party thereto and the Second Lien
Collateral Agent.  Capitalized terms used
but not defined herein shall have the meaning assigned thereto in the First
Lien Security Agreement.   All references
herein to the “UCC” shall mean the Uniform Commercial Code as in effect in
the State of New York.

 

Section 1. 
Establishment of Securities Account.  The Securities Intermediary hereby confirms
and agrees that:

 

(a)           The Securities Intermediary has established account number
[IDENTIFY ACCOUNT NUMBER] in the
name “[IDENTIFY
EXACT TITLE OF ACCOUNT]” (such account and any successor account,
the “Securities
Account”) and the Securities Intermediary shall not change the name
or account number of the Securities Account without the prior written consent
of the First Lien Collateral Agent (or, if the First Lien Collateral Agent has
delivered a Notice of Termination (as defined below), the Second Lien
Collateral Agent);

 

(b)           All securities or other property underlying any financial
assets credited to the Securities Account shall be registered in the name of
the Securities Intermediary, indorsed to the Securities Intermediary or in
blank or credited to another securities account maintained in the name of the
Securities Intermediary and in no case will any financial asset credited to the
Securities Account be registered in the name of the Debtor, payable to the
order of the Debtor or specially indorsed to the Debtor except to the extent
the foregoing have been specially indorsed to the Securities Intermediary or in
blank;

 

(c)           All property delivered to the Securities Intermediary
pursuant to the Security Agreement will be promptly credited to the Securities
Account; and

 

C-1

 

(d)           The Securities Account is a “securities account” within
the meaning of Section 8-501 of the UCC and the Securities Intermediary is
a “securities intermediary” within the meaning of Section 8-102 of the
UCC.

 

Section 2.  “Financial
Assets” Election.  The
Securities Intermediary hereby agrees that each item of property (including,
without limitation, any investment property, financial asset, security,
instrument, general intangible or cash) credited to the Securities Account
shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of
the UCC.

 

Section 3. 
Control of the Securities Account.  If at any time the Securities Intermediary
shall receive any order or direction from the First Lien Collateral Agent or
the Second Lien Collateral Agent (with, until the First Lien Collateral Agent
shall have delivered to the Securities Intermediary a Notice of Termination,
the consent of the First Lien Collateral Agent) directing transfer or
redemption of any financial asset relating to the Securities Account and all
securities entitlements therein, the Securities Intermediary shall comply with
such entitlement order or direction without further consent by the Debtor or
any other person.  If the Debtor is otherwise
entitled to issue entitlement orders and such orders conflict with any
entitlement order or direction issued by either Collateral Agent, the
Securities Intermediary shall follow the orders issued by the applicable
Collateral Agent.  In the event the
Securities Intermediary receives conflicting orders or directions from the
First Lien Collateral Agent and the Second Lien Collateral Agent, the Second
Lien Collateral Agent hereby expressly instructs the Securities Intermediary to
follow the orders and directions originated by the First Lien Collateral Agent.

 

Section 4. 
Subordination of Lien; Waiver of Set-Off.  In the event that the Securities Intermediary
has or subsequently obtains by agreement, by operation of law or otherwise a
security interest in the Securities Account or any security entitlement
credited thereto, the Securities Intermediary hereby agrees that such security
interest shall be subordinate to the security interest of the Collateral
Agents.  The financial assets and other
items deposited to the Securities Account will not be subject to deduction,
set-off, banker’s lien, or any other right in favor of any person other than
the Collateral Agents (except that the Securities Intermediary may set off (i) all
amounts due to the Securities Intermediary in respect of customary fees and
expenses for the routine maintenance and operation of the Securities Account
and (ii) the face amount of any checks which have been credited to such
Securities Account but are subsequently returned unpaid because of uncollected
or insufficient funds).

 

Section 5. 
Choice of Law.  This
Agreement and the Securities Account shall each be governed by the laws of the
State of New York.  Regardless of any
provision in any other agreement, for purposes of the UCC, New York shall be
deemed to be the Securities Intermediary’s jurisdiction (within the meaning of Section 8-110
of the UCC) and the Securities Account (as well as the securities entitlements
related thereto) shall be governed by the laws of the State of New York.

 

Section 6. 
Conflict with Other Agreements.

 

(a)           In the event of any conflict between this Agreement (or
any portion thereof) and any other agreement now existing or hereafter entered
into, the terms of this Agreement shall prevail;

 

C-2

 

(b)           No amendment or modification of this Agreement or waiver
of any right hereunder shall be binding on any party hereto unless it is in
writing and is signed by all of the parties hereto;

 

(c)           The Securities Intermediary hereby confirms and agrees
that:

 

(i)  There are no other control agreements
entered into between the Securities Intermediary and the Debtor with respect to
the Securities Account;

 

(ii)  It has not entered into, and until the
termination of this Agreement, will not enter into, any agreement with any
other person relating to the Securities Account and/or any financial assets
credited thereto pursuant to which it has agreed to comply with entitlement
orders (as defined in Section 8-102(a)(8) of the UCC) of such other
person; and

 

(iii) It has not entered into, and until the
termination of this Agreement, will not enter into, any agreement with the
Debtor or the Collateral Agents purporting to limit or condition the obligation
of the Securities Intermediary to comply with entitlement orders as set forth
in Section 3 hereof.

 

Section 7. 
Adverse Claims. 
Except for the claims and interest of the Collateral Agents and of the
Debtor in the Securities Account, the Securities Intermediary does not know of
any claim to, or interest in, the Securities Account or in any “financial asset”
(as defined in Section 8-102(a) of the UCC) credited thereto.  If any person asserts any lien, encumbrance
or adverse claim (including any writ, garnishment, judgment, warrant of
attachment, execution or similar process) against the Securities Account or in
any financial asset carried therein, the Securities Intermediary will promptly
notify the Collateral Agents and the Debtor thereof.

 

Section 8.  Maintenance of Securities Account.  In addition to, and not in lieu of, the
obligation of the Securities Intermediary to honor entitlement orders and
directions as agreed in Section 3 hereof, the Securities Intermediary
agrees to maintain the Securities Account as follows:

 

(a)           Notice of Sole Control.  If at any time the First Lien Collateral
Agent or the Second Lien Collateral Agent (with, until the First Lien
Collateral Agent shall have delivered to the Securities Intermediary a Notice
of Termination, the consent of the First Lien Collateral Agent) delivers to the
Securities Intermediary a Notice of Sole Control in substantially the form set
forth in Exhibit A hereto, the Securities Intermediary agrees that after
receipt of such notice, it will take all instruction with respect to the
Securities Account solely from such Collateral Agent until further notice from
such Collateral Agent.

 

(b)           Voting Rights. 
Until such time as the Securities Intermediary receives a Notice of Sole
Control pursuant to subsection (a) of this Section 8, the Debtor
shall direct the Securities Intermediary with respect to the voting of any
financial assets credited to the Securities Account or any other direction or
entitlement order with respect thereto.

 

(c)           Permitted Investments.  Until such time as the Securities
Intermediary receives a Notice of Sole Control signed by the First Lien
Collateral Agent or the Second Lien Collateral Agent (with, until the First
Lien Collateral Agent shall have delivered to the Securities Intermediary a
Notice of Termination, the consent of the First Lien Collateral Agent), the
Debtor 

 

C-3

 

shall direct the Securities
Intermediary with respect to the selection of investments to be made for the
Securities Account.

 

(d)           Statements and Confirmations.  The Securities Intermediary will promptly
send copies of all statements, confirmations and other correspondence
concerning the Securities Account and/or any financial assets credited thereto
simultaneously to each of the Debtor and the Collateral Agents at the address
for each set forth in Section 12 of this Agreement.

 

(e)           Tax Reporting. 
All items of income, gain, expense and loss recognized in the Securities
Account shall be reported to the Internal Revenue Service and all state and
local taxing authorities under the name and taxpayer identification number of
the Debtor.

 

Section 9.  Representations, Warranties and Covenants of
the Securities Intermediary.  The Securities Intermediary hereby makes the
following representations, warranties and covenants:

 

(a)           The Securities Account has been established as set forth
in Section 1 above and such Securities Account will be maintained in the
manner set forth herein until termination of this Agreement; and

 

(b)           This Agreement is the valid and legally binding obligation
of the Securities Intermediary.

 

Section 10  Indemnification of Securities Intermediary.  The Debtor and the Collateral Agents hereby
agree that (a) the Securities Intermediary is released from any and all
liabilities to the Debtor and the Collateral Agents arising from the terms of
this Agreement and the compliance of the Securities Intermediary with the terms
hereof, except to the extent that such liabilities arise from the Securities
Intermediary’s negligence, willful misconduct, bad faith or material breach of
this Agreement and (b) the Debtor, its successors and assigns shall at all
times indemnify and save harmless the Securities Intermediary from and against
any and all claims, actions and suits of others arising out of the terms of
this Agreement or the compliance of the Securities Intermediary with the terms
hereof, except to the extent that such arises from the Securities Intermediary’s
negligence, willful misconduct, bad faith or material breach of this Agreement,
and from and against any and all liabilities, actual losses, damages,
reasonable, out-of-pocket costs and expenses, charges, reasonable counsel fees
and other expenses of every nature and character arising by reason of the same,
until the termination of this Agreement.

 

Section 11.  Successors; Assignment.  The terms of this Agreement shall be binding
upon, and shall inure to the benefit of, the parties hereto and their
respective corporate successors or heirs and personal representatives who
obtain such rights solely by operation of law. 
The Collateral Agents may assign their rights hereunder only (i) with
the express written consent of the Securities Intermediary and (ii) by
sending written notice of such assignment to the Debtor.

 

Section 12.  Notices.   Any notice, request or other communication
required or permitted to be given under this Agreement shall be in writing and
deemed to have been properly given when delivered in person, or when sent by
telecopy or other electronic means and electronic confirmation of error free
receipt is received or two (2) days after being sent by certified or
registered United States mail, return receipt requested, postage prepaid,
addressed to the party at the address set forth below.

 

C-4

 

	
  Debtor:

  	
  [Name
  and Address of Debtor]

  
	
   

  	
  Attention: [                                 ]

  
	
   

  	
  Telecopier: [                                 ]

  
	
   

  	
   

  
	
  First
  Lien

  	
   

  
	
  Collateral
  Agent:

  	
  Goldman Sachs Credit Partners, L.P.

  
	
   

  	
  c/o
  Goldman, Sachs & Co.

  
	
   

  	
  30
  Hudson Street, 36th Floor

  
	
   

  	
  Jersey
  City, NJ 07302

  
	
   

  	
  Attention:
  SBD Operations

  
	
   

  	
  Attention: 
  Andrew Caditz

  
	
   

  	
  Telecopier: 
  (212) 428-1243

  
	
   

  	
  Email:
  gsd.link@gs.com

  
	
   

  	
   

  
	
   

  	
  with
  a copy to:

  
	
   

  	
   

  
	
   

  	
  Goldman
  Sachs Credit Partners L.P.

  
	
   

  	
  1
  New York Plaza

  
	
   

  	
  New
  York, New York 10004

  
	
   

  	
  Attention: 
  Rob Schatzman

  
	
   

  	
  Telecopier: 
  (212) 902-3000

  
	
   

  	
   

  
	
  Second
  Lien

  	
   

  
	
  Collateral
  Agent:

  	
  Lehman Commercial Paper Inc.

  
	
   

  	
  745
  Seventh Avenue

  
	
   

  	
  New
  York, NY 10019

  
	
   

  	
  Attention:
  Maritza Ospina

  
	
   

  	
  Telecopier: 
  (646) 758-4648

  
	
   

  	
   

  
	
  Securities Intermediary:

  	
  [Name
  and Address of Securities Intermediary]

  
	
   

  	
  Attention: [                                 ]

  
	
   

  	
  Telecopier: [                                 ]

  

 

Any party may change its
address for notices in the manner set forth above.

 

Section 13.  Termination.  The obligations of the Securities
Intermediary to the First Lien Collateral Agent pursuant to this Agreement
shall continue in effect until the security interest of the First Lien
Collateral Agent in the Securities Account has been terminated pursuant to the
terms of the First Lien Security Agreement. 
The First Lien Collateral Agent shall notify the Securities Intermediary
of such termination in writing.  The
obligations of the Securities Intermediary to the Second Lien Collateral Agent
pursuant to this Agreement shall continue in effect until the security interest
of the Second Lien Collateral Agent in the Securities Account has been
terminated pursuant to the terms of the Second Lien Security Agreement. The
Second Lien Collateral Agent shall notify the Securities Intermediary of such
termination in writing.  Each Collateral
Agent agrees to provide Notice of Termination (“Notice of
Termination”) in substantially the form of Exhibit C hereto to
the Securities Intermediary upon the request of the Debtor on or after the
termination of the applicable Collateral Agent’s security interest in the
Securities Account pursuant to the terms of the applicable Security
Agreement.  The termination of this
Agreement shall not terminate the Securities Account or alter the obligations
of the Securities Intermediary to the Debtor pursuant to any other agreement
with respect to the Securities Account.

 

C-5

 

Section 14.  Intercreditor Agreement.  The terms and conditions of
this Agreement and the lien and security interest granted to the Collateral
Agents pursuant to this Agreement and the exercise of any right or remedy by
the Collateral Agents hereunder are subject to the terms and conditions of the
Intercreditor Agreement in all respects. 
In the event of any conflict between the terms and conditions of this
Agreement and the terms and conditions of the Intercreditor Agreement, such
conflict shall be resolved in accordance with Section 8.1 of the
Intercreditor Agreement.

 

Section 15.  Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall constitute one and the same instrument, and
any party hereto may execute this Agreement by signing and delivering one or
more counterparts.  Delivery of an
executed signature page to this Agreement by facsimile, Adobe .pdf file or
other electronic transmission shall be as effective as delivery of a manually
signed counterpart of this Agreement.

 

C-6

 

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

 

	
   

  	
  [DEBTOR],

  
	
   

  	
  as Debtor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS

  L.P.,

  
	
   

  	
  as First Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  
	
   

  	
  as Second Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF SECURITIES 

  INTERMEDIARY],

  
	
   

  	
  as Securities Intermediary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

C-7

 

EXHIBIT A

TO SECURITIES ACCOUNT CONTROL AGREEMENT

 

[Letterhead of the First Lien Collateral
Agent/ Second Lien Collateral Agent]

 

[Date]

 

[Name and Address of Securities Intermediary]

Attention: [                                    ]

 

Re:  Notice of Sole Control

 

Ladies and Gentlemen:

 

As referenced in the
Securities Account Control Agreement dated as of [                ],
20[      ] among [Name of Debtor] (the “Debtor”), you, [First Lien Collateral Agent/ Second Lien
Collateral Agent] and the undersigned (a copy of which is attached), we hereby
give you notice of our sole control over securities account number [                    ]
(the “Securities
Account”) and all financial assets credited thereto.  You are hereby instructed not to accept any
direction, instructions or entitlement orders with respect to the Securities
Account or the financial assets credited thereto from any person other than the
undersigned, unless otherwise ordered by a court of competent jurisdiction.

 

You are instructed to
deliver a copy of this notice by facsimile transmission to the Debtor.

 

	
   

  	
  Very truly yours,

  
	
   

  	
  [Goldman Sachs Credit Partners L.P., as First

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

cc: 
[Name of Debtor]

 

C-8

 

EXHIBIT C

TO SECURITIES ACCOUNT CONTROL AGREEMENT

 

[Letterhead of First Lien Collateral Agent/
Second Lien Collateral Agent]

 

[Date]

 

[Name and Address of Securities Intermediary]

Attention: [                                    ]

 

Re:  Termination of Securities Account Control
Agreement

 

You are hereby notified that
the Securities Account Control Agreement dated as of [                ],
20[     ] among you, [Name of Debtor] (the “Debtor”),
[First Lien Collateral Agent/ Second Lien Collateral Agent]  and the undersigned (a copy of
which is attached) is terminated and you have no further obligations to the
undersigned pursuant to such Agreement. 
[IF THE CONTROL AGREEMENT IS TO REMAIN IN EFFECT WITH RESPECT TO THE
FIRST LIEN COLLATERAL AGENT/ SECOND LIEN COLLATERAL AGENT, ADD: Note however,
that the Control Agreement remains in effect with respect to the First Lien
Collateral Agent/ Second Lien Collateral Agent.] [IF THE CONTROL AGREEMENT IS
BEING TERMINATED AS TO ALL PARTIES, ADD: Notwithstanding any previous
instructions to you, you are hereby instructed to accept all future directions
with respect to account number(s) [                                         ]
from the Debtor.]  This notice terminates any obligations you
may have to the undersigned with respect to such accounts, however nothing
contained in this notice shall alter any obligations which you may otherwise
owe to the Debtor pursuant to
any other agreement.

 

You are instructed to
deliver a copy of this notice by facsimile transmission to the Debtor.

 

	
   

  	
  Very truly yours,

  
	
   

  	
  [Goldman Sachs Credit Partners L.P., as First 

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

C-9

 

EXHIBIT D

TO PLEDGE AND SECURITY AGREEMENT

 

DEPOSIT
ACCOUNT CONTROL AGREEMENT

 

This Deposit Account Control
Agreement dated as of [                    ],
20[      ] (this “Agreement”) among [                   ]
(the “Debtor”),
Goldman Sachs Credit Partners L.P., as collateral agent for the Secured Parties
referred to in the First Lien Security Agreement (as defined herein) (the “First Lien Collateral Agent”), Lehman Commercial Paper Inc.,
as collateral agent for the Secured Parties referred to in the Second Lien
Security Agreement (as defined herein) (the “Second Lien
Collateral Agent” and, together with the First Lien Collateral
Agent, the “Collateral Agents”) and [                      ],
in its capacity as a “bank” as defined in Section 9-102 of the UCC (in
such capacity, the “Financial Institution”) is
delivered pursuant to (i) Section 4.2 of the Pledge and Security
Agreement (First Lien) (as amended, supplemented or otherwise modified from
time to time, the “First Lien Security
Agreement”), dated as of February 22, 2008 among Aldabra Holding Sub LLC,  a 

Delaware limited liability company, Aldabra Sub LLC, a Delaware limited liability company,
to be merged with and into Boise Paper Holdings,
L.L.C., a Delaware limited liability company, the other Grantors
party thereto and the First Lien Collateral Agent, and (ii) Section 4.2
of the Pledge and Security Agreement (Second Lien) (as amended, supplemented or
otherwise modified from time to time, the “Second Lien Security
Agreement” and, together with the First Lien Security Agreement, the
“Security Agreements”), dated as of February 22,
2008 among Aldabra Holding Sub LLC, Aldabra Sub LLC, Boise Paper Holdings,
L.L.C., the other Grantors party thereto and the Second Lien
Collateral Agent.  Capitalized terms used
but not defined herein shall have the meaning assigned thereto in the First
Lien Security Agreement.  All references
herein to the “UCC” shall mean the Uniform Commercial Code as in effect in the
State of New York.

 

Section 1.  Establishment of Deposit Account.  The Financial Institution hereby confirms and
agrees that:

 

(a)  The Financial
Institution has established account number [IDENTIFY
ACCOUNT NUMBER] in the name “[IDENTIFY EXACT TITLE OF ACCOUNT]”
(such account and any successor account, the “Deposit Account”) and the
Financial Institution shall not change the name or account number of the
Deposit Account without the prior written consent of the First Lien Collateral
Agent (or, if the First Lien Collateral Agent has delivered a Notice of
Termination (as defined below), the Second Lien Collateral Agent) and, prior to
delivery of a Notice of Sole Control in substantially the form set forth in Exhibit A
hereto, the Debtor; and

 

(b)  The Deposit
Account is a “deposit account” within the meaning of Section 9-102(a)(29)
of the UCC and the bank is a “Bank” within the meaning of Section 9-102 of
the UCC.

 

Section 2.  Control of the Deposit Account.  If at any time the Financial Institution
shall receive any instructions or directions originated by the First Lien
Collateral Agent or the Second Lien Collateral Agent (with, until the First
Lien Collateral Agent shall have delivered to the Financial Institution a
Notice of Termination, the consent of the First Lien Collateral Agent)
directing the disposition of funds in the Deposit Account, the Financial
Institution shall comply with such instructions or directions without further
consent by the Debtor or any other person. 
The Financial Institution hereby acknowledges that it has received
notice of the security interests of the Collateral Agents in the Deposit
Account and hereby acknowledges and consents to such liens.  If the Debtor is otherwise entitled to issue
instructions and such instructions conflict with

 

E-10

 

any
instructions issued by either Collateral Agent, the Financial Institution shall
follow the instructions issued by the applicable Collateral Agent.  In the event the Financial Institution
receives conflicting instructions or directions from the First Lien Collateral
Agent and the Second Lien Collateral Agent, the Second Lien Collateral Agent
hereby expressly instructs the Financial Institution to follow the instructions
or directions issued by the First Lien Collateral Agent.

 

Section 3. 
Subordination of Lien; Waiver of Set-Off.  In the event that the Financial Institution
has or subsequently obtains by agreement, by operation of law or otherwise a
security interest in the Deposit Account or any funds credited thereto, the
Financial Institution hereby agrees that such security interest shall be
subordinate to the security interest of the Collateral Agents.  Money and other items credited to the Deposit
Account will not be subject to deduction, set-off, banker’s lien, or any other
right in favor of any person other than the Collateral Agents (except that the
Financial Institution may set off (i) all amounts due to the Financial
Institution in respect of customary fees and expenses for the routine
maintenance and operation of the Deposit Account and (ii) the face amount
of any checks which have been credited to such Deposit Account but are
subsequently returned unpaid because of uncollected or insufficient funds).

 

Section 4.  Choice of Law.  This Agreement and the Deposit Account shall
each be governed by the laws of the State of New York.  Regardless of any provision in any other
agreement, for purposes of the UCC, New York shall be deemed to be the Financial
Institution’s jurisdiction (within the meaning of Section 9-304 of the
UCC) and the Deposit Account shall be governed by the laws of the State of New
York.

 

Section 5.  Conflict with Other Agreements.

 

(a)  In the event of
any conflict between this Agreement (or any portion thereof) and any other
agreement now existing or hereafter entered into, the terms of this Agreement
shall prevail;

 

(b)  No amendment or
modification of this Agreement or waiver of any right hereunder shall be
binding on any party hereto unless it is in writing and is signed by all of the
parties hereto; and

 

(c)  The Financial
Institution hereby confirms and agrees that:

 

(i)            There
are no other agreements entered into between the Financial Institution and the
Debtor with respect to the Deposit Account [other than                        ];
and

 

(ii)           It
has not entered into, and until the termination of this Agreement, will not
enter into, any agreement with any other person relating the Deposit Account
and/or any funds credited thereto pursuant to which it has agreed to comply
with instructions originated by such persons as contemplated by Section 9-104
of the UCC.

 

Section 6.  Adverse Claims.  Except for the claims and interest of the
Collateral Agents and the Debtor, the Financial Institution does not know of
any liens, claims or encumbrances relating to the Deposit Account.  If any person asserts any lien, encumbrance
or adverse claim (including any writ, garnishment, judgment, warrant of attachment,
execution or similar process) against the Deposit Account, the Financial
Institution will promptly notify the Collateral Agents and the Debtor thereof.

 

E-11

 

Section 7.  Maintenance of Deposit Account.  In addition to, and not in lieu of, the
obligation of the Financial Institution to honor instructions or directions as
set forth in Section 2 hereof, the Financial Institution agrees to
maintain the Deposit Account as follows:

 

(a)  Notice of Sole
Control.  If at any time the First
Lien Collateral Agent or the Second Lien Collateral Agent (with, until the
First Lien Collateral Agent shall have delivered to the Financial Institution a
Notice of Termination, the consent of the First Lien Collateral Agent) delivers
to the Financial Institution a Notice of Sole Control in substantially the form
set forth in Exhibit A hereto, the Financial Institution agrees that after
receipt of such notice, it will take all instruction with respect to the
Deposit Account solely from such Collateral Agent until further notice from the
Collateral Agent.

 

(b)  Statements and
Confirmations.  The Financial
Institution will promptly send copies of all statements, confirmations and
other correspondence concerning the Deposit Account simultaneously to each of
the Debtor and the Collateral Agents at the address for each set forth in Section 11
of this Agreement; and

 

(c)  Tax Reporting.  All interest, if any, relating to the Deposit
Account, shall be reported to the Internal Revenue Service and all state and
local taxing authorities under the name and taxpayer identification number of
the Debtor.

 

Section 8.   Representations, Warranties and Covenants of
the Financial Institution.  The
Financial Institution hereby makes the following representations, warranties
and covenants:

 

(a)  The Deposit
Account has been established as set forth in Section 1 and such Deposit
Account will be maintained in the manner set forth herein until termination of
this Agreement; and

 

(b)  This Agreement is
the valid and legally binding obligation of the Financial Institution.

 

Section 9.   Indemnification of Financial Institution.  The Debtor and the Collateral Agents hereby
agree that (a) the Financial Institution is released from any and all
liabilities to the Debtor and the Collateral Agents arising from the terms of
this Agreement and the compliance of the Financial Institution with the terms
hereof, except to the extent that such liabilities arise from the Financial
Institution’s negligence, willful misconduct, bad faith or material breach of
this Agreement and (b) the Debtor, its successors and assigns shall at all
times indemnify and save harmless the Financial Institution from and against
any and all claims, actions and suits of others arising out of the terms of
this Agreement or the compliance of the Financial Institution with the terms
hereof, except to the extent that such arises from the Financial Institution’s
negligence, willful misconduct, bad faith or material breach of this Agreement,
and from and against any and all liabilities, actual losses, damages,
reasonable, out-of-pocket costs and expenses, charges, reasonable counsel fees
and other expenses of every nature and character arising by reason of the same,
until the termination of this Agreement.

 

Section 10.  Successors; Assignment.  The terms of this Agreement shall be binding
upon, and shall inure to the benefit of, the parties hereto and their
respective corporate successors or heirs and personal representatives who
obtain such rights solely by operation of law. 
The Collateral Agents may assign their rights hereunder only (i) with
the express written consent of the Financial Institution and (ii) by
sending written notice of such assignment to the Debtor.

 

E-12

 

Section 11.  Notices.   Any notice, request or other communication
required or permitted to be given under this Agreement shall be in writing and
deemed to have been properly given when delivered in person, or when sent by
telecopy or other electronic means and electronic confirmation of error free
receipt is received or two (2) days after being sent by certified or
registered United States mail, return receipt requested, postage prepaid,
addressed to the party at the address set forth below.

 

	
  Debtor:

  	
  [Name
  and Address of Debtor]

  
	
   

  	
  Attention: [                                 ]

  
	
   

  	
  Telecopier: [                                 ]

  
	
   

  	
   

  
	
  First
  Lien

  	
   

  
	
  Collateral
  Agent:

  	
  Goldman Sachs Credit Partners, L.P.

  
	
   

  	
  c/o
  Goldman, Sachs & Co.

  
	
   

  	
  30
  Hudson Street, 36th Floor

  
	
   

  	
  Jersey
  City, NJ 07302

  
	
   

  	
  Attention:
  SBD Operations

  
	
   

  	
  Attention: 
  Andrew Caditz

  
	
   

  	
  Telecopier: 
  (212) 428-1243

  
	
   

  	
  Email:
  gsd.link@gs.com

  
	
   

  	
   

  
	
   

  	
  with
  a copy to:

  
	
   

  	
   

  
	
   

  	
  Goldman
  Sachs Credit Partners L.P.

  
	
   

  	
  1
  New York Plaza

  
	
   

  	
  New
  York, New York 10004

  
	
   

  	
  Attention: 
  Rob Schatzman

  
	
   

  	
  Telecopier: 
  (212) 902-3000

  
	
   

  	
   

  
	
  Second
  Lien

  	
   

  
	
  Collateral
  Agent:

  	
  Lehman Commercial Paper Inc.

  
	
   

  	
  745
  Seventh Avenue

  
	
   

  	
  New
  York, NY 10019

  
	
   

  	
  Attention:
  Maritza Ospina

  
	
   

  	
  Telecopier: 
  (646) 758-4648

  
	
   

  	
   

  
	
  Financial Institution:

  	
  [Name
  and Address of Financial Institution]

  
	
   

  	
  Attention: [                                 ]

  
	
   

  	
  Telecopier: [                                 ]

  

 

Any party may change its
address for notices in the manner set forth above.

 

Section 12.  Intercreditor Agreement.  The terms and conditions of
this Agreement and the lien and security interest granted to the Collateral
Agents pursuant to this Agreement and the exercise of any right or remedy by
the Collateral Agents hereunder are subject to the terms and conditions of the
Intercreditor Agreement in all respects. 
In the event of any conflict between the terms and conditions of this
Agreement and the terms and conditions of the Intercreditor Agreement, such
conflict shall be resolved in accordance with Section 8.1 of the
Intercreditor Agreement.

 

Section 13.  Termination.  The obligations of the Financial Institution
to the First Lien Collateral Agent pursuant to this Agreement shall continue in
effect until the security interest of the First Lien Collateral Agent in the
Deposit Account has been terminated pursuant to the terms

 

E-13

 

of
the First Lien Security Agreement and the First Lien Collateral Agent has
notified the Financial Institution of such termination in writing.  The obligations of the Financial Institution
to the Second Lien Collateral Agent pursuant to this Agreement shall continue
in effect until the security interest of the Second Lien Collateral Agent in
the Deposit Account has been terminated pursuant to the terms of the Second
Lien Security Agreement and the Second Lien Collateral Agent has notified the
Financial Institution of such termination in writing.  Each Collateral Agent agrees to provide
Notice of Termination in substantially the form of Exhibit B hereto (a “Notice of Termination”) to the Financial Institution upon
the request of the Debtor on or after the termination of the applicable
Collateral Agent’s security interest in the Deposit Account pursuant to the
terms of the applicable Security Agreement. 
The termination of this Agreement shall not terminate the Deposit
Account or alter the obligations of the Financial Institution to the Debtor
pursuant to any other agreement with respect to the Deposit Account.

 

Section 14.  Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall constitute one and the same instrument, and
any party hereto may execute this Agreement by signing and delivering one or
more counterparts.  Delivery of an executed
signature page to this Agreement by facsimile, Adobe .pdf file or other
electronic transmission shall be as effective as delivery of a manually signed
counterpart of this Agreement.

 

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

 

 

	
   

  	
  [DEBTOR],

  
	
   

  	
  as Debtor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS

  L.P.,

  
	
   

  	
  as First Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  
	
   

  	
  as Second Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

E-14

 

	
   

  	
  [NAME OF FINANCIAL INSTITUTION], 

  
	
   

  	
  as Financial Institution

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT A

TO DEPOSIT ACCOUNT CONTROL AGREEMENT

 

[Letterhead of First Lien Collateral Agent/
Second Lien Collateral Agent]

 

[Date]

 

[Name and Address of Financial Institution]

Attention: [                                    ]

 

Re:  Notice
of Sole Control

 

Ladies and Gentlemen:

 

As referenced in the Deposit
Account Control Agreement dated as of [              ],
20[    ] among [Name
of Debtor] (the “Debtor”),
you, [First Lien Collateral Agent/ Second Lien Collateral Agent] and the
undersigned (a copy of which is attached), we hereby give you notice of our
sole control over deposit account number [                      ]
(the “Deposit
Account”) and all financial assets credited thereto.  You are hereby instructed not to accept any
direction, instructions or entitlement orders with respect to the Deposit
Account or the financial assets credited thereto from any person other than the
undersigned, unless otherwise ordered by a court of competent jurisdiction.

 

You are instructed to
deliver a copy of this notice by facsimile transmission to the Debtor.

 

	
   

  	
  Very truly yours,

  
	
   

  	
  [Goldman Sachs Credit Partners L.P., as First

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

cc: 
[Name of Debtor]

 

 

E-15

 

EXHIBIT B

TO DEPOSIT ACCOUNT CONTROL AGREEMENT

 

[Letterhead of the First Lien Collateral
Agent/ Second Lien Collateral Agent]

 

[Date]

 

[Name and Address of Financial Institution]

Attention: [                                    ]

 

Re:  Termination
of Deposit Account Control Agreement

 

You are hereby notified that
the Deposit Account Control Agreement dated as of [                 ],
20[     ] among [Name of Debtor] (the “Debtor”),
you, [First Lien Collateral Agent/ Second Lien Collateral Agent] and the
undersigned (a copy of which is attached) is terminated and you have no further
obligations to the undersigned pursuant to such Agreement.  [IF THE CONTROL AGREEMENT IS TO REMAIN IN
EFFECT WITH RESPECT TO THE FIRST LIEN COLLATERAL AGENT/ SECOND LIEN COLLATERAL
AGENT, ADD: Note however that the Control Agreement remains in effect with
respect to the First Lien Collateral Agent/ Second Lien Collateral Agent.] [IF
THE CONTROL AGREEMENT IS BEING TERMINATED AS TO ALL PARTIES, ADD:
Notwithstanding any previous instructions to you, you are hereby instructed to
accept all future directions with respect to account number(s) [                        ]
from the Debtor.]  This notice terminates any obligations you
may have to the undersigned with respect to such account, however nothing
contained in this notice shall alter any obligations which you may otherwise
owe to the Debtor pursuant to
any other agreement.

 

You are instructed to
deliver a copy of this notice by facsimile transmission to the Debtor.

 

	
   

  	
  Very truly yours,

  
	
   

  	
  [Goldman Sachs Credit Partners L.P., as First 

  Lien Collateral Agent] [Lehman Commercial 

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

E-16

 

EXHIBIT E

TO PLEDGE AND SECURITY AGREEMENT

 

FORM OF TRADEMARK SECURITY
AGREEMENT (SECOND LIEN)

 

TRADEMARK SECURITY AGREEMENT
(SECOND LIEN), dated as of                 ,
20       (as amended, restated or otherwise
modified from time to time, the “Trademark Security Agreement”), by and
among ALDABRA SUB LLC, a Delaware limited liability company (to be merged with and into BOISE PAPER HOLDINGS, L.L.C., a
Delaware limited liability company, the “Borrower”), ALDABRA HOLDING SUB
LLC, a Delaware limited liability company (“Holdings”), CERTAIN
SUBSIDIARIES OF THE BORROWER, as Guarantors (together with the Borrower and
Holdings, collectively, the “Grantors”), and LEHMAN COMMERCIAL PAPER
INC., in its capacity as collateral agent for the Secured Parties (together
with any successors and assigns thereto in such capacity, the “Collateral
Agent”).

 

Reference is made to the
Pledge and Security Agreement (Second Lien) dated as of February 22, 2008
(as amended, supplemented or otherwise modified from time to time, the “Security
Agreement”), between each of the Grantors and the Collateral Agent.  The Lenders have agreed to extend credit to
the Borrowers subject to the terms and conditions set forth in the Credit
Agreement dated as of February 22, 2008 (as amended, supplemented or
otherwise modified from time to time (the “Credit Agreement”)) by and
among each of the Grantors, the Lenders and Lehman Commercial Paper Inc., as
Administrative Agent.  The obligations of
the Lenders to extend such credit are conditioned upon, among other things, the
execution and delivery of this Agreement. 
Accordingly, the parties hereto agree as follows:

 

SECTION 1.           Defined Terms.  Capitalized terms used in this Agreement and
not otherwise defined herein have the meanings given to them in the Security
Agreement or the Credit Agreement.  The rules of
construction specified in Article I of the Credit Agreement also apply to
this Agreement.

 

SECTION 2.           Grant of Security Interest in
Trademark Collateral.  As security
for the payment or performance in full of the Obligations, each Grantor,
pursuant to and in accordance with the Security Agreement, did and hereby
pledges and grants to the Collateral Agent, its successors and assigns, for
the benefit of the Secured Parties, a lien and security interest in and to all
of such Grantor’s right, title and interest in, to and under the following
assets and properties, whether now owned or at any time hereafter created or
acquired by such Grantor or in which such Grantor now has or at any time in the
future may acquire any right, title, or interest, but not including any
Excluded Assets (collectively, the “Trademark Collateral”):

 

(a) 
all of
its registered and unregistered, common law, state, United States,
multinational, and foreign trademarks, trade names, corporate names, company
names, business names, fictitious business names, service marks, certification
marks, collective marks, logos, other source or business identifiers, designs
and general intangibles of a like nature, all registrations and applications
for any of the foregoing including, but not limited to: (i) the
registrations and applications, (ii) all extensions or renewals of any of
the foregoing, (iii) all of the goodwill of the business connected with
the use of and symbolized by the foregoing, (iv) the right to sue for
past, present and future infringement or dilution of any of the foregoing or
for any injury to goodwill, and (v) all Proceeds of the foregoing, now and
hereinafter due and/or payable thereunder, including, without limitation, royalties,
income, payments, claims, damages, and proceeds of suit (“Trademarks”),
including, but not limited to the registrations and applications referred to in
Schedule I attached hereto (as such schedule may be amended or
supplemented from time to time).

 

E-17

 

SECTION 3.           Supplement to the Security
Agreement.  The security interests
granted to the Collateral Agent pursuant to this Trademark Security Agreement
are granted in furtherance of, and not in limitation of or expansion of, the
security interests granted to the Collateral Agent for the Secured Parties
pursuant to the Security Agreement and the rights and obligations of the
parties thereto.  Each party hereto hereby
acknowledges and affirms that the rights and remedies of the each other party
hereto with respect to the security interest in the Trademark Collateral made
and granted hereby are more fully set forth in the Security Agreement, the
terms and provisions of which are incorporated by reference herein as if fully
set forth herein.  In the event that any
provision of this Trademark Security Agreement is deemed to conflict with the
Security Agreement, the provisions of the Security Agreement shall govern.

 

SECTION 4.           Intercreditor Agreement.  The terms and conditions of this Trademark
Security Agreement and the Liens and security interests granted to the
Collateral Agent pursuant to this Trademark Security Agreement and the exercise
of any right or remedy by the Collateral Agent hereunder are subject to the
terms and conditions of the Intercreditor Agreement in all respects.  In the event of any conflict between the
terms and conditions of this Trademark Security Agreement and the terms and
conditions of the Intercreditor Agreement, such conflict shall be resolved in
accordance with Section 8.1 of the Intercreditor Agreement.

 

SECTION 5.           Termination.  This Agreement is made to secure the
satisfactory payment and performance of the Obligations.  This Trademark Security Agreement and the
security interest granted hereby shall automatically terminate with respect to
all of a Grantor’s Obligations and any Lien arising therefrom shall be
automatically released upon termination of the Security Agreement or release of
such Grantor’s obligations thereunder.  The
Collateral Agent shall, in connection with any termination or release herein or
under the Security Agreement, execute and deliver to any Grantor as such
Grantor may request, an instrument in writing releasing the security interest
in the Trademark Collateral acquired under this Agreement suitable for filing
with any office or agency in which the Collateral Agent has filed this, or a
similar, instrument. Additionally, upon such satisfactory payment, the
Collateral Agent shall reasonably cooperate with any efforts made by a Grantor
to make of record or otherwise confirm such satisfaction including, but not
limited to, the release and/or termination of this Agreement and any security
interest in, to or under the Trademark Collateral.

 

SECTION 6.           Counterparts.  This Trademark Security Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

 

SECTION 7.           Miscellaneous.  The provisions of Section 13 of the
Security Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signatures
on following page]

 

E-18

 

IN WITNESS WHEREOF, each
Grantor has caused this Trademark Security Agreement to be executed and
delivered by its duly authorized officer as of the date first set forth above.

 

	
   

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

[Trademark Security Agreement]

 

 

	
   

  	
  BOISE WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE PACKAGING & NEWSPRINT,

  L.L.C.

  
	
   

  	
  BOISE CASCADE TRANSPORTATION

  HOLDINGS CORP. 

  
	
   

  	
  BOISE WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE WHITE PAPER HOLDINGS CORP.

  
	
   

  	
  INTERNATIONAL FALLS POWER

  COMPANY

  
	
   

  	
  MINNESOTA, DAKOTA & WESTERN RAILWAY COMPANY

  
	
   

  	
  BEMIS CORPORATION

  
	
   

  	
  BC CHINA CORPORATION

  
	
   

  	
  B C T, INC.,

  
	
   

  	
  as Grantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

[Trademark
Security Agreement]

 

 

Accepted and Agreed:

 

 

	
  LEHMAN COMMERCIAL PAPER
  INC.,

  	
   

  
	
   

  	
   

  
	
  as Collateral Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

 

[Trademark
Security Agreement]

 

 

SCHEDULE I

to

TRADEMARK SECURITY AGREEMENT

 

 

U.S.
TRADEMARK REGISTRATIONS

 

 

U.S.
TRADEMARK APPLICATIONS

 

 

F-22

 

EXHIBIT F

TO PLEDGE AND SECURITY AGREEMENT

 

FORM OF COPYRIGHT SECURITY
AGREEMENT (SECOND LIEN)

 

COPYRIGHT SECURITY AGREEMENT
(SECOND LIEN), dated as of                   ,
20      (as amended, restated or otherwise modified
from time to time, the “Copyright Security Agreement”), by and among ALDABRA
SUB LLC, a Delaware limited liability company (to be merged with and into BOISE
PAPER HOLDINGS, L.L.C., a Delaware limited liability company, the “Borrower”),
ALDABRA HOLDING SUB LLC, a Delaware limited liability company (“Holdings”),
CERTAIN SUBSIDIARIES OF THE BORROWER, as Guarantors (together with the Borrower
and Holdings, collectively, the “Grantors”), and LEHMAN COMMERCIAL PAPER
INC., in its capacity as collateral agent for the Secured Parties (together
with any successors and assigns thereto in such capacity, the “Collateral
Agent”).

 

Reference is made to the
Pledge and Security Agreement (Second Lien) dated as of February 22, 2008
(as amended, supplemented or otherwise modified from time to time, the “Security
Agreement”), between each of the Grantors and the Collateral Agent.  The Lenders have agreed to extend credit to
the Borrowers subject to the terms and conditions set forth in the Credit
Agreement dated as of February 22, 2008 (as amended, supplemented or
otherwise modified from time to time (the “Credit Agreement”)) by and
among each of the Grantors, the Lenders and Lehman Commercial Paper Inc., as
Administrative Agent.  The obligations of
the Lenders to extend such credit are conditioned upon, among other things, the
execution and delivery of this Agreement. 
Accordingly, the parties hereto agree as follows:

 

SECTION 1.           Defined Terms.  Capitalized terms used in this Agreement and
not otherwise defined herein have the meanings given to them in the Security
Agreement or the Credit Agreement.  The rules of
construction specified in Article I of the Credit Agreement also apply to
this Agreement.

 

SECTION 2.           Grant of Security Interest in
Copyright Collateral.  As security
for the payment or performance in full of the Obligations, each Grantor,
pursuant to and in accordance with the Security Agreement, did and hereby
pledges and grants to the Collateral Agent, its successors and assigns, for the
benefit of the Secured Parties, a lien and security interest in and to all of
such Grantor’s right, title and interest in, to and under the following assets
and properties, whether now owned or at any time hereafter created or acquired
by such Grantor or in which such Grantor now has or at any time in the future
may acquire any right, title, or interest, but not including any
Excluded Assets (collectively, the “Copyright Collateral”):

 

(a) 
all of its United
States and foreign copyrights, including but not limited to copyrights in
software and all rights in and to databases, and all Mask Works (as defined
under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or
unregistered, moral rights, reversionary interests, termination rights, and,
with respect to any and all of the foregoing: (i) all registrations and
applications therefor, (ii) all extensions and renewals thereof, (iii) all
rights corresponding thereto throughout the world, (iv) all rights to sue
for past, present and future infringements thereof, and (v) all Proceeds
of the foregoing, now and hereinafter due and/or payable thereunder, including,
without limitation, royalties, income, payments, claims, damages and proceeds
of suit (“Copyrights”), including, without limitation, the registrations and
applications required to be listed in Schedule I attached hereto (as
such schedule may be amended or supplemented from time to time); and

 

F-23

 

(b) all agreements
providing for the grant of any right in or to U.S. Copyrights for which Grantor
is the exclusive licensee of such U.S. Copyrights, including those referred to
on Schedule I hereto (collectively, “Copyright Licenses”) and all
rights and proceeds under such agreement.

 

SECTION 3.           Supplement to the Security
Agreement.  The security interests
granted to the Collateral Agent pursuant to this Copyright Security Agreement
are granted in furtherance of, and not in limitation or expansion of, the
security interests granted to the Collateral Agent for the Secured Parties
pursuant to the Security Agreement and the rights and obligations of the
parties thereto.  Each party hereto
hereby acknowledges and affirms that the rights and remedies of each other
party hereto with respect to the security interest in the Copyright Collateral
made and granted hereby are more fully set forth in the Security Agreement, the
terms and provisions of which are incorporated by reference herein as if fully
set forth herein.  In the event that any
provision of this Copyright Security Agreement is deemed to conflict with the
Security Agreement, the provisions of the Security Agreement shall govern.

 

SECTION 4.           Intercreditor Agreement.  The terms and conditions of this Copyright
Security Agreement and the Liens and security interests granted to the
Collateral Agent pursuant to this Copyright Security Agreement and the exercise
of any right or remedy by the Collateral Agent hereunder are subject to the
terms and conditions of the Intercreditor Agreement in all respects.  In the event of any conflict between the
terms and conditions of this Copyright Security Agreement and the terms and
conditions of the Intercreditor Agreement, such conflict shall be resolved in
accordance with Section 8.1 of the Intercreditor Agreement.

 

SECTION 5.           Termination.  This Agreement is made to secure the
satisfactory payment and performance of the Obligations.  This Copyright Security Agreement and the
security interest granted hereby shall automatically terminate with respect to
all of a Grantor’s Obligations and any Lien arising therefrom shall be
automatically released upon termination of the Security Agreement or release of
such Grantor’s obligations thereunder. 
The Collateral Agent shall, in connection with any termination or
release herein or under the Security Agreement, execute and deliver to any
Grantor as such Grantor may request, an instrument in writing releasing the
security interest in the Copyright Collateral acquired under this Agreement
suitable for filing with any office or agency in which the Collateral Agent has
filed this, or a similar, Agreement. Additionally, upon such satisfactory
payment, the Collateral Agent shall reasonably cooperate with any efforts made
by a Grantor to make of record or otherwise confirm such satisfaction
including, but not limited to, the release and/or termination of this Agreement
and any security interest in, to or under the Copyright Collateral.

 

SECTION 6.           Counterparts.  This Copyright Security Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

 

SECTION 7.           Miscellaneous.  The provisions of Section 13 of the
Security Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signatures
on following page]

 

F-24

 

IN WITNESS WHEREOF, each
Grantor has caused this Copyright Security Agreement to be executed and
delivered by its duly authorized officer as of the date first set forth above.

 

 

	
   

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as
  Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as
  Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as
  Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Copyright
Security Agreement]

 

 

	
   

  	
  BOISE WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE PACKAGING & NEWSPRINT,

  L.L.C.

  
	
   

  	
  BOISE CASCADE TRANSPORTATION

  HOLDINGS CORP. 

  
	
   

  	
  BOISE WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE WHITE PAPER HOLDINGS CORP.

  
	
   

  	
  INTERNATIONAL FALLS POWER

  COMPANY

  
	
   

  	
  MINNESOTA, DAKOTA & WESTERN RAILWAY COMPANY

  
	
   

  	
  BEMIS CORPORATION

  
	
   

  	
  BC CHINA CORPORATION

  
	
   

  	
  B C T, INC.,

  
	
   

  	
  as Grantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Copyright
Security Agreement]

 

 

Accepted and Agreed:

 

 

	
  LEHMAN COMMERCIAL PAPER
  INC.,

  	
   

  
	
   

  	
   

  
	
  as Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

[Copyright Security Agreement]

 

 

SCHEDULE I

to

COPYRIGHT SECURITY AGREEMENT

 

U.S.
COPYRIGHT REGISTRATIONS

 

U.S.
COPYRIGHT APPLICATIONS

 

COPYRIGHT
LICENSES:

 

G-28

 

EXHIBIT G

TO PLEDGE AND SECURITY AGREEMENT

 

FORM OF PATENT SECURITY
AGREEMENT (SECOND LIEN)

 

PATENT SECURITY AGREEMENT
(SECOND LIEN), dated as of             ,
20        (as amended, restated or otherwise
modified from time to time, the “Patent Security Agreement”), by and
among ALDABRA SUB LLC, a Delaware limited liability company (to be merged with and into BOISE PAPER HOLDINGS, L.L.C., a
Delaware limited liability company, the “Borrower”), ALDABRA HOLDING SUB
LLC, a Delaware limited liability company (“Holdings”), CERTAIN
SUBSIDIARIES OF THE BORROWER, as Guarantors (together with the Borrower and
Holdings, collectively, the “Grantors”), and LEHMAN COMMERCIAL PAPER
INC., in its capacity as collateral agent for the Secured Parties (together
with any successors and assigns thereto in such capacity, the “Collateral
Agent”).

 

Reference is made to the
Pledge and Security Agreement (Second Lien) dated as of February 22, 2008
(as amended, supplemented or otherwise modified from time to time, the “Security
Agreement”), between each of the Grantors and the Collateral Agent.  The Lenders have agreed to extend credit to
the Borrowers subject to the terms and conditions set forth in the Credit
Agreement dated as of February 22, 2008 (as amended, supplemented or
otherwise modified from time to time (the “Credit Agreement”)) by and
among each of the Grantors, the Lenders and Lehman Commercial Paper Inc., as
Administrative Agent.  The obligations of
the Lenders to extend such credit are conditioned upon, among other things, the
execution and delivery of this Agreement. 
Accordingly, the parties hereto agree as follows:

 

SECTION 1.           Defined Terms.  Capitalized terms used in this Agreement and
not otherwise defined herein have the meanings given to them in the Security
Agreement or the Credit Agreement.  The rules of
construction specified in Article I of the Credit Agreement also apply to
this Agreement.

 

SECTION 2.           Grant of Security Interest in
Patent Collateral.  As security for
the payment or performance in full of the Obligations, each Grantor, pursuant
to and in accordance with the Security Agreement, did and hereby pledges and
grants to the Collateral Agent, its successors and assigns, for the benefit of
the Secured Parties, a lien and security interest in and to all of such Grantor’s
right, title and interest in, to and under the following assets and properties,
whether now owned or at any time hereafter created or acquired by such Grantor
or in which such Grantor now has or at any time in the future may acquire any
right, title, or interest, but not including any Excluded Assets (collectively,
the “Patent Collateral”):

 

(a)  all of its United
States and foreign patents and certificates of invention, or similar industrial
property rights, and applications for any of the foregoing, including, but not
limited to: (i) each patent and patent application, (ii) all
reissues, divisions, continuations, continuations-in-part, extensions,
renewals, and reexaminations thereof, (iii) all rights corresponding
thereto throughout the world, (iv) all inventions and improvements
described therein, (v) all rights to sue for past, present and future
infringements thereof, (vi) all claims, damages, and proceeds of suit
arising therefrom, and (vii) all Proceeds of the foregoing, now and
hereinafter due and/or payable thereunder, including, without limitation,
royalties, income, payments, claims, damages, and proceeds of suit (“Patents”),  including, but not limited to each patent and
patent application referred to on 

 

G-29

 

Schedule I attached
hereto (as such schedule may be amended or supplemented from time to time).

 

SECTION 3.           Supplement to the Security
Agreement.  The security interests
granted to the Collateral Agent pursuant to this Patent Security Agreement are
granted in furtherance of, and not in limitation or expansion of, the security
interests granted to the Collateral Agent for the Secured Parties pursuant to
the Security Agreement and the rights and obligations of the parties
thereto.  Each party hereto hereby
acknowledges and affirms that the rights and remedies of each other party
hereto with respect to the security interest in the Patent Collateral made and
granted hereby are more fully set forth in the Security Agreement, the terms
and provisions of which are incorporated by reference herein as if fully set
forth herein.  In the event that any
provision of this Patent Security Agreement is deemed to conflict with the
Security Agreement, the provisions of the Security Agreement shall govern.

 

SECTION 4.           Intercreditor. The terms and
conditions of this Patent Security Agreement and the Liens and security
interests granted to the Collateral Agent pursuant to this Patent Security Agreement
and the exercise of any right or remedy by the Collateral Agent hereunder are
subject to the terms and conditions of the Intercreditor Agreement in all
respects.  In the event of any conflict
between the terms and conditions of this Patent Security Agreement and the
terms and conditions of the Intercreditor Agreement, such conflict shall be
resolved in accordance with Section 8.1 of the Intercreditor Agreement.

 

SECTION 5.           Termination.  This Agreement is made to secure the
satisfactory payment and performance of the Obligations.  This Patent Security Agreement and the
security interest granted hereby shall automatically terminate with respect to
all of a Grantor’s Obligations and any Lien arising therefrom shall be
automatically released upon termination of the Security Agreement or release of
such Grantor’s obligations thereunder. 
The Collateral Agent shall, in connection with any termination or
release herein or under the Security Agreement, execute and deliver to any
Grantor as such Grantor may request, an instrument in writing releasing the
security interest in the Patent Collateral acquired under this Agreement
suitable for filing with any office or agency in which the Collateral Agent has
filed this, or a similar, Agreement. 
Additionally, upon such satisfactory payment, the Collateral Agent shall
reasonably cooperate with any efforts made by a Grantor to make of record or
otherwise confirm such satisfaction including, but not limited to, the release
and/or termination of this Agreement and any security interest in, to or under
the Patent Collateral.

 

SECTION 6.           Counterparts.  This Patent Security Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

 

SECTION 7.           Miscellaneous.  The provisions of Section 13 of the
Security Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signatures
on following page]

 

G-30

 

IN WITNESS WHEREOF, each
Grantor has caused this Patent Security Agreement to be executed and delivered
by its duly authorized officer as of the date first set forth above.

 

 

	
   

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as
  Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Patent Security Agreement]

 

 

	
   

  	
  BOISE WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE PACKAGING & NEWSPRINT,

  L.L.C.

  
	
   

  	
  BOISE CASCADE TRANSPORTATION

  HOLDINGS CORP. 

  
	
   

  	
  BOISE WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE WHITE PAPER HOLDINGS CORP.

  
	
   

  	
  INTERNATIONAL FALLS POWER

  COMPANY

  
	
   

  	
  MINNESOTA, DAKOTA & WESTERN RAILWAY COMPANY

  
	
   

  	
  BEMIS CORPORATION

  
	
   

  	
  BC CHINA CORPORATION

  
	
   

  	
  B C T, INC.,

  
	
   

  	
  as Grantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Patent Security Agreement]

 

 

Accepted and Agreed:

 

 

	
  LEHMAN COMMERCIAL PAPER
  INC.,

  	
   

  
	
   

  	
   

  
	
  as Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

[Patent Security Agreement]

 

 

SCHEDULE I

to

PATENT SECURITY AGREEMENT

 

U.S. PATENT
REGISTRATIONS

 

U.S.
PATENT APPLICATIONS

 

G-1Exhibit 10.9

 

EXECUTION COPY

 

TRADEMARK SECURITY AGREEMENT (FIRST LIEN)

 

TRADEMARK
SECURITY AGREEMENT (FIRST LIEN), dated as of February 22, 2008 (as
amended, restated or otherwise modified from time to time, the “Trademark
Security Agreement”), by and among ALDABRA SUB LLC, a Delaware limited
liability company (to be merged with and into BOISE PAPER HOLDINGS, L.L.C., a
Delaware limited liability company, the “Borrower”), ALDABRA HOLDING SUB
LLC, a Delaware limited liability company (“Holdings”), CERTAIN SUBSIDIARIES
OF THE BORROWER, as Guarantors (together with the Borrower and Holdings,
collectively, the “Grantors”), and GOLDMAN SACHS CREDIT PARTNERS L.P.,
in its capacity as collateral agent for the Secured Parties (together with any
successors and assigns thereto in such capacity, the “Collateral Agent”).

 

Reference
is made to the Pledge and Security Agreement (First Lien) dated as of the date
hereof (as amended, supplemented or otherwise modified from time to time, the “Security
Agreement”), between each of the Grantors and the Collateral Agent.  The Lenders have agreed to extend credit to
the Borrowers subject to the terms and conditions set forth in the Credit
Agreement dated as of February 22, 2008 (as amended, supplemented or
otherwise modified from time to time (the “Credit Agreement”)) by and
among each of the Grantors, the Lenders and Goldman Sachs Credit Partners L.P.,
as Administrative Agent.  The obligations
of the Lenders to extend such credit are conditioned upon, among other things,
the execution and delivery of this Agreement. 
Accordingly, the parties hereto agree as follows:

 

SECTION 1.           Defined Terms.  Capitalized terms used in this Agreement and
not otherwise defined herein have the meanings given to them in the Security
Agreement or the Credit Agreement.  The rules of
construction specified in Article I of the Credit Agreement also apply to
this Agreement.

 

SECTION 2.           Grant of Security Interest in
Trademark Collateral.  As security
for the payment or performance in full of the Obligations, each Grantor,
pursuant to and in accordance with the Security Agreement, did and hereby
pledges and grants to the Collateral Agent, its successors and assigns, for the
benefit of the Secured Parties, a lien and security interest in and to all of
such Grantor’s right, title and interest in, to and under the following assets
and properties, whether now owned or at any time hereafter created or acquired
by such Grantor or in which such Grantor now has or at any time in the future
may acquire any right, title, or interest, but not including any Excluded
Assets (collectively, the “Trademark Collateral”):

 

(a) 
all of its registered and unregistered, common law, state, United States,
multinational, and foreign trademarks, trade names, corporate names, company
names, business names, fictitious business names, service marks, certification
marks, collective marks, logos, other source or business identifiers, designs
and general intangibles of a like nature, all registrations and applications
for any of the foregoing including, but not limited to: (i) the
registrations and applications, (ii) all extensions or renewals of any of
the foregoing, (iii) all of the goodwill of the business connected with
the use of and symbolized by the foregoing, (iv) the right 

 

1

 

to
sue for past, present and future infringement or dilution of any of the
foregoing or for any injury to goodwill, and (v) all Proceeds of the
foregoing, now and hereinafter due and/or payable thereunder, including,
without limitation, royalties, income, payments, claims, damages, and proceeds
of suit (“Trademarks”), including, but not limited to the registrations and
applications referred to in Schedule I attached hereto (as such schedule
may be amended or supplemented from time to time).

 

SECTION 3.           Supplement to the Security
Agreement.  The security interests
granted to the Collateral Agent pursuant to this Trademark Security Agreement
are granted in furtherance of, and not in limitation of or expansion of, the security
interests granted to the Collateral Agent for the Secured Parties pursuant to
the Security Agreement and the rights and obligations of the parties
thereto.  Each party hereto hereby
acknowledges and affirms that the rights and remedies of the each other party
hereto with respect to the security interest in the Trademark Collateral made
and granted hereby are more fully set forth in the Security Agreement, the
terms and provisions of which are incorporated by reference herein as if fully
set forth herein.  In the event that any
provision of this Trademark Security Agreement is deemed to conflict with the
Security Agreement, the provisions of the Security Agreement shall govern.

 

SECTION 4.           Intercreditor Agreement.  The terms and conditions of this Trademark
Security Agreement and the Liens and security interests granted to the
Collateral Agent pursuant to this Trademark Security Agreement and the exercise
of any right or remedy by the Collateral Agent hereunder are subject to the
terms and conditions of the Intercreditor Agreement in all respects.  In the event of any conflict between the
terms and conditions of this Trademark Security Agreement and the terms and
conditions of the Intercreditor Agreement, such conflict shall be resolved in
accordance with Section 8.1 of the Intercreditor Agreement.

 

SECTION 5.           Termination.  This Agreement is made to secure the
satisfactory payment and performance of the Obligations.  This Trademark Security Agreement and the
security interest granted hereby shall automatically terminate with respect to
all of a Grantor’s Obligations and any Lien arising therefrom shall be
automatically released upon termination of the Security Agreement or release of
such Grantor’s obligations thereunder. 
The Collateral Agent shall, in connection with any termination or
release herein or under the Security Agreement, execute and deliver to any
Grantor as such Grantor may request, an instrument in writing releasing the
security interest in the Trademark Collateral acquired under this Agreement
suitable for filing with any office or agency in which the Collateral Agent has
filed this, or a similar, instrument. Additionally, upon such satisfactory
payment, the Collateral Agent shall reasonably cooperate with any efforts made
by a Grantor to make of record or otherwise confirm such satisfaction
including, but not limited to, the release and/or termination of this Agreement
and any security interest in, to or under the Trademark Collateral.

 

SECTION 6.           Counterparts.  This Trademark Security Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be 

 

2

 

deemed
an original, but all such counterparts together shall constitute but one and
the same instrument.

 

SECTION 7.           Miscellaneous.  The provisions of Section 13 of the
Security Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signatures on following page]

 

3

 

IN
WITNESS WHEREOF, each Grantor has caused this Trademark Security Agreement to
be executed and delivered by its duly authorized officer as of the date first
set forth above.

 

 

	
  

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as
  Grantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name: Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as
  Grantor

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name: Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as
  Grantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name: Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  

 

 

	
  

  	
  BOISE WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE PACKAGING & NEWSPRINT,

  
	
   

  	
  L.L.C.

  
	
   

  	
  BOISE CASCADE TRANSPORTATION

  
	
   

  	
  HOLDINGS CORP.

  
	
   

  	
  BOISE WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE WHITE PAPER HOLDINGS

  CORP.

  
	
   

  	
  INTERNATIONAL FALLS POWER

  COMPANY

  
	
   

  	
  MINNESOTA, DAKOTA &
  WESTERN 

  RAILWAY COMPANY

  
	
   

  	
  BEMIS CORPORATION

  
	
   

  	
  BC CHINA CORPORATION

  
	
   

  	
  B C T, INC.,

  
	
   

  	
  as Grantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name: Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  

 

 

	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  	
   

  
	
   

  	
   

  
	
  as Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  
	
  By:

  	
  /s/ Tom Connolly

  	
   

  
	
   

  	
  Name: Tom Connolly

  	
   

  
	
   

  	
  Title: Authorized Signatory

  	
   

  

 

 

SCHEDULE I

to

TRADEMARK SECURITY AGREEMENT

 

U.S. TRADEMARK REGISTRATIONS

 

	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application No.

  	
   

  	
  Registration No.

  	
   

  	
  Filing Date

  	
   

  	
  Grantor Entity

  	
   

  
	
  ARRIVL

  	
   

  	
  USA

  	
   

  	
  75/450,484

  	
   

  	
  2,261,702

  	
   

  	
  03/16/1998

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  BEWARE

  	
   

  	
  USA

  	
   

  	
  78/447,193

  	
   

  	
  3,184,482

  	
   

  	
  07/07/2004

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  CHECKPROTECT

  	
   

  	
  USA

  	
   

  	
  75/576,535

  	
   

  	
  2,292,769

  	
   

  	
  10/26/1998

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  CHECKPROTECT AND DESIGN

  	
   

  	
  USA

  	
   

  	
  76/648,999

  	
   

  	
  3,254,435

  	
   

  	
  10/21/2005

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  DAKOTA DIGITAL BOOK

  	
   

  	
  USA

  	
   

  	
  76/486,005

  	
   

  	
  2,797,246

  	
   

  	
  01/30/2003

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  FLEXOFOLD

  	
   

  	
  USA

  	
   

  	
  75/241,117

  	
   

  	
  2,265,356

  	
   

  	
  09/25/1996

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  PENTAGON

  	
   

  	
  USA

  	
   

  	
  75/505,616

  	
   

  	
  2,411,129

  	
   

  	
  06/19/1998

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  RATTANWEAVE

  	
   

  	
  USA

  	
   

  	
  76/031,728

  	
   

  	
  2,589,429

  	
   

  	
  04/20/2000

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  SPLOX

  	
   

  	
  USA

  	
   

  	
  78/206,517

  	
   

  	
  2,909,191

  	
   

  	
  01/23/2003

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  SUMMIT

  	
   

  	
  USA

  	
   

  	
  73/235,118

  	
   

  	
  1,159,974

  	
   

  	
  10/15/1979

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  SUMMIT

  	
   

  	
  USA

  	
   

  	
  72/140,535

  	
   

  	
  740,924

  	
   

  	
  03/23/1962

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  TIMBERLINE BOND

  	
   

  	
  USA

  	
   

  	
  74/229,776

  	
   

  	
  1,802,697

  	
   

  	
  12/12/1991

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  TONER GRIP

  	
   

  	
  USA

  	
   

  	
  75/257,071

  	
   

  	
  2,135,927

  	
   

  	
  03/14/1997

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  VALUESAFETY

  	
   

  	
  USA

  	
   

  	
  76/627,760

  	
   

  	
  3,044,175

  	
   

  	
  01/13/2005

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  WYOMING BOOK

  	
   

  	
  USA

  	
   

  	
  76/141,909

  	
   

  	
  2,573,147

  	
   

  	
  10/04/2000

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  X-9000

  	
   

  	
  USA

  	
   

  	
  76/370,361

  	
   

  	
  2,685,989

  	
   

  	
  02/12/2002

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  

 

 

U.S. TRADEMARK APPLICATIONS

 

	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application No.

  	
   

  	
  Filing Date

  	
   

  	
  Grantor Entity

  	
   

  
	
  ASPEN

  	
   

  	
  USA

  	
   

  	
  77/276,002

  	
   

  	
  09/10/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  Beyond What’s Expected.

  	
   

  	
  USA

  	
   

  	
  77/276,914

  	
   

  	
  09/11/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  BUNDLE

  	
   

  	
  USA

  	
   

  	
  76/683,245

  	
   

  	
  10/24/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  BUNDLE (Design)

  	
   

  	
  USA

  	
   

  	
  76/683,247

  	
   

  	
  10/24/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  EVOKE

  	
   

  	
  USA

  	
   

  	
  77/127,394

  	
   

  	
  03/09/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  FIREWORX and Design

  	
   

  	
  USA

  	
   

  	
  77/156,680

  	
   

  	
  04/13/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  PAPER ON THE GO

  	
   

  	
  USA

  	
   

  	
  76/683,246

  	
   

  	
  10/24/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  SPLOX DESIGN

  	
   

  	
  USA

  	
   

  	
  76/683,375

  	
   

  	
  10/29/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  SPLOX SPEED LOADING BOX

  	
   

  	
  USA

  	
   

  	
  76/676,637

  	
   

  	
  05/10/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  X-9

  	
   

  	
  USA

  	
   

  	
  76/683,248

  	
   

  	
  10/24/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  
	
  XMP

  	
   

  	
  USA

  	
   

  	
  76/683,506

  	
   

  	
  10/31/2007

  	
   

  	
  Boise White Paper, L.L.C.

  	
   

  

 

In
accordance with Section 2.2 of the Security Agreement, the following
intent-to-use trademark applications are Excluded Assets until the filing and
acceptance by the United States Patent and Trademark Office of a “Statement of
Use” or “Amendment to Allege Use” with respect thereto.

 

	
  Mark

  	
   

  	
  Country

  	
   

  	
  Application No.

  	
   

  	
  Filing Date

  	
   

  
	
  EVOKE

  	
   

  	
  USA

  	
   

  	
  77/127,394

  	
   

  	
  03/09/2007

  	
   

  
	
  FIREWORX and Design

  	
   

  	
  USA

  	
   

  	
  77/156,680

  	
   

  	
  04/13/2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]