Document:

Form of Indemnity Agreement

 Exhibit 10.35 
 INDEMNIFICATION AGREEMENT 
 This INDEMNIFICATION
AGREEMENT is made and executed effective as of this              day of
                    , 2009, by and between CELLU TISSUE HOLDINGS, INC., a Delaware corporation (the “Company”), and
                    , an individual resident of the State of
                     (the “Indemnitee”). 
 WHEREAS, the Company is aware that, in order to induce highly competent persons to serve the Company as directors or officers or in other capacities, the Company must provide such persons with adequate
protection through indemnification against risks of claims and actions against them arising out of their service to and activities on behalf of the Company; 
 WHEREAS, the Board of Directors of the Company has determined that it is in the best interests of the Company’s stockholders that the Company act to assure such persons that there will be increased
certainty of such protection in the future; 
 WHEREAS, it is reasonable, prudent and necessary for the Company contractually to
obligate itself to indemnify such persons to the fullest extent permitted by applicable law so that they will continue to serve the Company free from undue concern that they will not be so indemnified; 
 WHEREAS, the Indemnitee is willing to serve, continue to serve, and take on additional service for or on behalf of the Company on the
condition that he/she be so indemnified; and 
 WHEREAS, Indemnitee is a representative of Weston Presidio V, L.P. or certain of
its affiliates (collectively, the “Fund Indemnitors”) and may have certain rights to indemnification, advancement of expenses and/or insurance provided by the Fund Indemnitors, which Indemnitee, the Company and the Fund Indemnitors intend
to be secondary to the primary obligation of the Company to indemnify Indemnitee as provided herein, with the Company’s acknowledgement of and agreement to the foregoing being a material condition to Indemnitee’s willingness to serve as a
director of the Company. 
 NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants contained
herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Indemnitee do hereby agree as follows: 
 1. Service by the Indemnitee. The Indemnitee agrees to serve and/or continue to serve as a director or officer of the Company
faithfully and will discharge his/her duties and responsibilities to the best of his/her ability so long as the Indemnitee is duly elected or qualified in accordance with the provisions of the Certificate of Incorporation of Cellu Tissue Holdings,
Inc. (as may be amended from time to time, the “Certificate”), the Bylaws of Cellu Tissue Holdings, Inc. (as may be amended from time to time, the “Bylaws”), the General Corporation Law of the State of Delaware, as amended (the
“DGCL”) and any other applicable law in effect on the date of this Agreement and from time to time, or until his/her earlier death, resignation or

 
removal. The Indemnitee may, at any time and for any reason, resign from such position (subject to any other contractual obligation or other obligation imposed by operation by law), in which
event the Company shall have no obligation under this Agreement to continue the employment or directorship of the Indemnitee and Indemnitee shall have no further obligation to serve. Nothing in this Agreement shall confer upon the Indemnitee the
right to continue in the employ of the Company or as a director of the Company or affect the right of the Company to terminate the Indemnitee’s employment at any time in the sole discretion of the Company, with or without cause, subject to any
contract rights of the Indemnitee created or existing otherwise than under this Agreement. 
 2. Indemnification. The
Company shall indemnify the Indemnitee against all Expenses (as defined below), judgments, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee as provided in this Agreement to the fullest extent permitted by the
Certificate, Bylaws and DGCL or other applicable law in effect on the date of this Agreement and to any greater extent that applicable law may in the future from time to time permit. 
 3. Partial Indemnification. If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for
some or a portion of the Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee in connection with the investigation, defense, appeal or settlement of any Proceeding, but is not entitled to
indemnification for the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion of such Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by the Indemnitee to
which the Indemnitee is entitled. For purposes of this Section and without limitation, (1) the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as
to such claim, issue or matter, and (2) a decision by any government, regulatory or self regulatory authority, agency or body not to commence or pursue any investigation, civil or criminal enforcement matter or case or in any civil suit, shall
be deemed to be a successful result as to such claim, issue or matter. 
 4. Indemnity for Expenses Incurred to Secure
Recovery or as a Witness. 
 (a) The Company shall, to the fullest extent permitted by law, indemnify
Indemnitee with respect to, and hold Indemnitee harmless from and against, any and all Expenses and, if requested by Indemnitee, shall advance on an as-incurred basis (as provided in Section 7 of this Agreement) such Expenses to Indemnitee,
which are reasonably incurred by Indemnitee in connection with any action or proceeding or part thereof brought by Indemnitee for (i) indemnification or advance payment of Expenses by the Company under this Agreement, any other agreement, the
Certificate of Incorporation or By-laws of the Company as now or hereafter in effect; or (ii) recovery under any director and officer liability insurance policies maintained by the Company. 
 (b) To the extent that Indemnitee is, by reason of Indemnitee’s status as a director or officer of the Company, a
witness (or is forced or asked to respond to discovery requests) in any Proceeding to which Indemnitee is not a party, the Company shall, to the fullest extent permitted by law, indemnify Indemnitee with respect to, and hold Indemnitee harmless

 
from and against, and the Company will advance on an as-incurred basis (as provided in Section 7 of this Agreement), all Expenses actually and reasonably incurred by Indemnitee or on behalf
of Indemnitee in connection therewith. 
 5. Procedure for Determination of Entitlement to Indemnification. 

(a) To obtain indemnification under this Agreement, Indemnitee shall submit a written request for indemnification
hereunder. The time at which Indemnitee submits a written request for indemnification shall be determined by the Indemnitee in the Indemnitee’s sole discretion. Once Indemnitee submits such a written request for indemnification (and only at
such time that Indemnitee submits such a written request for indemnification), a Determination (as defined by Section 23 of this Agreement) shall thereafter be made, as provided in and only to the extent required by Section 5(c) of this
Agreement. In no event shall a Determination of Indemnitee’s entitlement to indemnification be made, or be required to be made, as a condition to or otherwise in connection with any advancement of Expenses pursuant to Section 7 of this
Agreement or, with respect to any Proceeding, to the extent Indemnitee has been successful on the merits or otherwise in such Proceeding. If, at the time of receipt of any such request for indemnification, the Company has director and officer
insurance policies in effect, the Company will promptly notify the relevant insurers in accordance with the procedures and requirements of such policies. 
 (b) The Secretary of the Company shall, promptly upon receipt of a claim for indemnification from the Indemnitee, advise the Board of Directors in writing that Indemnitee has requested indemnification.
Any Expenses incurred by the Indemnitee in connection with the Indemnitee’s request for indemnification hereunder shall be borne by the Company. The Company hereby indemnifies and agrees to hold the Indemnitee harmless for any Expenses incurred
by Indemnitee under the immediately preceding sentence irrespective of the outcome of the determination of the Indemnitee’s entitlement to indemnification. 
 (c) Upon submission of a written request by the Indemnitee for indemnification as provided in Section 5(a), a
Determination shall be made as to Indemnitee’s entitlement to indemnification. Any such Determination shall be made within thirty (30) days after receipt of Indemnitee’s written request for indemnification pursuant to
Section 5(a), unless Indemnitee agrees to a longer period, and such Determination shall be made either (i) by a majority of the Disinterested Directors, so long as Indemnitee does not request that such Determination be made by Independent
Counsel, or (ii) if so requested by Indemnitee, in Indemnitee’s sole discretion, by Independent Counsel in a written opinion to the Company and Indemnitee. If a Determination is made that Indemnitee is entitled to indemnification, payment
to Indemnitee shall be made within twenty (20) days after such Determination. Indemnitee shall reasonably cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such Determination. Any Expenses incurred by Indemnitee in so cooperating shall be advanced and borne by the Company (irrespective of the Determination as to Indemnitee’s entitlement to indemnification) and the Company is liable to
indemnify and hold Indemnitee harmless therefrom. If the person, persons or entity making such

 
Determination shall determine that the Indemnitee is entitled to indemnification as to part (but not all) of the application for indemnification, such person, persons or entity shall reasonably
prorate such part of indemnification among such claims, issues or matters. 
 (d) In the event Indemnitee
requests that the Determination be made by Independent Counsel, Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection by made by the Board of Directors, in which event the Board of Directors shall
make such selection on behalf of the Company, subject to the remaining provisions of this Section 5(d)), and Indemnitee or the Company, as the case may be, shall give written notice to the other, advising the Company or Indemnitee of the
identity of the Independent Counsel so selected. The Company or Indemnitee, as the case may be, may, within ten (10) days after such written notice of selection shall have been received, deliver to Indemnitee or the Company, as the case may be,
a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in
Section 23 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written objection is so
made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within twenty
(20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 5(a) of this Agreement, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may
petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person
selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under this Agreement. Any expenses incurred by
Independent Counsel shall be borne by the Company (irrespective of the Determination of Indemnitee’s entitlement to indemnification) and not by Indemnitee. 
 6. Presumptions and Effect of Certain Proceedings.  
 (a) In making a Determination with respect to entitlement to indemnification, the Indemnitee shall be presumed to be entitled to indemnification hereunder and the Company shall be required to make any showing necessary to the making of any
determination contrary to such presumption. 
 (b) If the Board of Directors or, if so elected by Indemnitee,
Independent Counsel shall have failed to make a Determination as to entitlement to indemnification under Section 5 of this Agreement within 45 days after receipt by the Company of such request, the requisite determination of entitlement to
indemnification shall be deemed to have been made and the Indemnitee shall be absolutely entitled to such indemnification, absent actual fraud in the request for indemnification or a prohibition of indemnification under applicable law. The
termination of any Proceeding covered by Section 2 hereof by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself adversely affect the rights of the Indemnitee to
indemnification, except as may be provided herein. 

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

 9. Notification and Defense of Claim. Indemnitee agrees to notify the Company
promptly upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses hereunder. Any failure by
Indemnitee to notify any the Company will relieve the Company of its advancement or indemnification obligations under this Agreement only to the extent the Company can establish that such omission to notify resulted in actual prejudice to it, and
the omission to notify the Company will, in any event, not relieve the Company from any liability which it may have to indemnify Indemnitee otherwise than under this Agreement. A notice provided under this Section 9 shall not be construed as a
request for indemnification pursuant to Section 5 or a request for advancement of Expenses under Section 7 of this Agreement. 
 Notwithstanding any other provision of this Agreement, with respect to any such Proceeding as to which the Indemnitee gives notice to the Company of the commencement thereof: 
 (a) The Company will be entitled to participate therein at its own expense. 
 (b) If Indemnitee is a participant in a Proceeding with any other Company directors or officers to whom the Company owes an
indemnification obligation, the Company shall not be required to advance expenses for more than one law firm (and, if necessary, an additional law firm to act as local counsel) to represent collectively Indemnitee and such other Company
directors or officers in respect of the same matter unless Indemnitee reasonably concludes that the representation of Indemnitee and such other Company directors or officers gives rise to a actual or potential conflict of interest.
 (c) The Company shall not, without the prior written consent of Indemnitee, which may be provided or withheld in
Indemnitee’s sole discretion, effect any settlement of any Proceeding against Indemnitee or which could have been brought against Indemnitee or which potentially or actually imposes any cost, liability, exposure or burden on Indemnitee,
including without limitation the entry of any contribution bar order, other bar order or other similar order, decree or stipulation pursuant to 15 U.S.C. § 78u-4 or any other foreign, federal or state statute, regulation, rule or law, unless
such settlement solely involves the payment of money or performance of any obligation by persons other than Indemnitee and includes an unconditional release of Indemnitee from all liability on any matters that are the subject of such Proceeding. The
Company shall not be obligated to indemnify Indemnitee against amounts paid in settlement of a Proceeding against Indemnitee if such settlement is effected by Indemnitee without the Company’s prior written consent, which consent shall not be
unreasonably withheld. 
 10. Other Right to Indemnification. Except with regard to the Company’s primary
obligations, as set forth in Section 12 hereof, the indemnification and advancement of Expenses provided by this Agreement are cumulative, and not exclusive, and are in addition to any other rights to which the Indemnitee may now or in the
future be entitled under any provision of the Bylaws or Certificate, any vote of stockholders or Disinterested Directors, any provision of law

 
or otherwise. Except as required by applicable law, the Company shall not adopt any amendment to the Bylaws or Certificate the effect of which would be to deny, diminish or encumber the
Indemnitee’s right to indemnification under this Agreement. 
 11. Director and Officer Liability Insurance.
The Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors
of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage. In the event the Company maintains directors’ and officers’ liability insurance, the Indemnitee shall be named as an insured in such manner as to provide the Indemnitee the same
rights and benefits as are accorded to the most favorably insured of the Company’s officers or directors. However, the Company agrees that the provisions hereof shall remain in effect regardless of whether liability or other insurance coverage
is at any time obtained or retained by the Company; except that any payments made to, or on behalf of, the Indemnitee under an insurance policy shall reduce the obligations of the Company hereunder (except with regard to the Company’s primary
obligations, as set forth in Section 12 hereof). Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available,
if the premium costs for such insurance are disproportionate to the amount of coverage provided or if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit. 
 12. Company Obligations Primary. The Company shall not be liable to pay or advance to Indemnitee any amounts otherwise
indemnifiable under this Agreement or under any other indemnification agreement if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise; provided, however, that
(a) the Company hereby agrees that its obligations to Indemnitee under this Agreement or any other agreement or undertaking to provide advancement, indemnification or both to Indemnitee are primary, and any obligation of the Fund Indemnitors to
provide advancement or indemnification for the any Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines
and amounts paid in settlement) incurred by Indemnitee are secondary, and (b) if the Fund Indemnitors pays or causes to be paid, for any reason, any amounts otherwise indemnifiable hereunder or under any other indemnification agreement with
Indemnitee (whether pursuant to the Bylaws or Certificate or another contract), then (i) the Fund Indemnitors shall be fully subrogated to all rights of Indemnitee with respect to such payment and (ii) the Company shall fully indemnify,
reimburse and hold harmless the Fund Indemnitors for all such payments actually made by the Fund Indemnitors. In addition, the Company hereby unconditionally and irrevocably waives, relinquishes, releases, and covenants and agrees not to exercise,
any rights that the Company may now have or hereafter acquires against the Fund Indemnitors or Indemnitee that arise from or relate to contribution, subrogation or any other recovery of any kind under this Agreement or any other indemnification
agreement (whether pursuant to the Bylaws or Certificate or another contract). The Company and Indemnitee hereby agree that this Section 12 shall be deemed exclusive and shall be deemed to

 
modify, amend and clarify any right to indemnification or advancement provided to Indemnitee under any other contract, agreement or document with the Company. 
 13. Spousal Indemnification. The Company will indemnify the Indemnitee’s spouse to whom the Indemnitee is legally married at any
time the Indemnitee is covered under the indemnification provided in this Agreement (even if Indemnitee did not remain married to him or her during the entire period of coverage) against any Proceeding for the same period, to the same extent and
subject to the same standards, limitations, obligations and conditions under which the Indemnitee is provided indemnification herein, if the Indemnitee’s spouse (or former spouse) becomes involved in a pending or threatened action, suit,
proceeding or investigation solely by reason of his or her status as Indemnitee’s spouse, including, without limitation, any pending or threatened action, suit, proceeding or investigation that seeks damages recoverable from marital community
property, jointly-owned property or property purported to have been transferred from the Indemnitee to his/her spouse (or former spouse). The Indemnitee’s spouse or former spouse also shall be entitled to advancement of Expenses to the same
extent that Indemnitee is entitled to advancement of Expenses herein. The Company may maintain insurance to cover its obligation hereunder with respect to Indemnitee’s spouse (or former spouse) or set aside assets in a trust or escrow fund for
that purpose. 
 14. Intent. This Agreement is intended to be broader than any statutory indemnification rights
applicable in the State of Delaware and shall be in addition to any other rights Indemnitee may have under the Certificate, Bylaws, applicable law or otherwise. To the extent that a change in applicable law (whether by statute or judicial decision)
permits greater indemnification by agreement than would be afforded currently under the Certificate, Bylaws, applicable law or this Agreement, it is the intent of the parties that Indemnitee enjoy by this Agreement the greater benefits so afforded
by such change. 
 15. Attorney’s Fees and Other Expenses to Enforce Agreement. In the event that the Indemnitee is
subject to or intervenes in any Proceeding in which the validity or enforceability of this Agreement is at issue or seeks an adjudication or award in arbitration to enforce the Indemnitee’s rights under, or to recover damages for breach of,
this Agreement the Indemnitee, if he/she prevails in whole or in part in such action, shall be entitled to advancement of Expenses, including for attorneys’ fees and disbursements reasonably incurred by the Indemnitee, in accordance with the
terms set forth in Section 7 of this Agreement. 
 16. Effective Date. The provisions of this Agreement shall cover
claims, actions, suits or proceedings whether now pending or hereafter commenced and shall be retroactive to cover acts or omissions or alleged acts or omissions which heretofore have taken place. The Company shall be liable under this Agreement, to
the extent specified in Section 2 hereof, for all acts and omissions of the Indemnitee while serving as a director and/or officer, notwithstanding the termination of the Indemnitee’s service, if such act was performed or omitted to be
performed during the term of the Indemnitee’s service to the Company. 
 17. Duration of Agreement. This Agreement
shall survive and continue even though the Indemnitee may have terminated his/her service as a director, officer, employee, agent or fiduciary of the Company or as a director, officer, partner, employee, agent or fiduciary of any other entity,
including, but not limited to another corporation, partnership, limited liability

 
company, employee benefit plan, joint venture, trust or other enterprise or by reason of any act or omission by the Indemnitee in any such capacity. This Agreement shall be binding upon the
Company and its successors and assigns, including, without limitation, any corporation or other entity which may have acquired all or substantially all of the Company’s assets or business or into which the Company may be consolidated or merged,
and shall inure to the benefit of the Indemnitee and his/her spouse, successors, assigns, heirs, devisees, executors, administrators or other legal representations. The Company shall require any successor or assignee (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company, by written agreement in form and substance reasonably satisfactory to the Company and the Indemnitee, expressly to assume and
agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession or assignment had taken place. 
 18. Third-Party Beneficiary. The Fund Indemnitors and Independent Counsel are express third-party beneficiaries of this
Agreement, and may specifically enforce the Company’s obligations hereunder (including, but not limited to, the obligations specified in Section 12 hereof) as though a party hereunder. 
 19. Disclosure of Payments. Except as required by any Federal or state securities laws or other Federal or state law, neither party
shall disclose any payments under this Agreement unless prior approval of the other party is obtained. 
 20.
Severability. If any provision or provisions of this Agreement shall be held invalid, illegal or unenforceable for any reason whatsoever, (a) the validity, legality and enforceability of the remaining provisions of this Agreement
(including, but not limited to, all portions of any Sections of this Agreement containing any such provision held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and (b) to the fullest extent
possible, the provisions of this Agreement (including, but not limited to, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifest by the provision held invalid, illegal or unenforceable. 
 21. Counterparts. This Agreement may be executed by one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. 
 22. Captions. The captions and headings used in this Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof. 
 23. Definitions. For purposes of this
Agreement: 
 (a) “Change in Control” shall mean any of the following events or transactions:

  

	 	(i)	 the sale by the Company of all or substantially all of its assets or the consummation by the Company of any merger, consolidation,

	 	 
reorganization, or business combination with any person, in each case, other than in a transaction: 

  

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

  

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

 

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

  

	 	(ii)	the acquisition directly or indirectly by any “person” or “group” (as those terms are used in Sections 13(d), and 14(d) of the Securities Exchange
Act of 1934, including without limitation, Rule 13d-5(b)) of “beneficial ownership” (as determined pursuant to Rule 13d-3 under the Securities Exchange Act of 1934) of securities entitled to vote generally in the election of directors
(“voting securities”) of the Company that represent 30% or more of the combined voting power of the Company then-outstanding voting securities, other than: 

  

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

  

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

  

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

	 	D.	an acquisition of voting securities pursuant to a transaction described in Section 23(a)(i) hereof that would not be a Change in Control under Section 23(a)
hereof; and 

 for purposes of clarification, an acquisition of the Company’s securities by the Company that
causes the Company voting securities beneficially owned by a person or group to represent 30% or more of the combined voting power of the Company’s then-outstanding voting securities is not to be treated as an “acquisition” by any
person or group for purposes of this Section 23(a)(ii); 
  

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

  

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

  

	 	B.	a director whose election or nomination as director was approved by a vote of at least two-thirds of the then directors described in Sections 23(a)(iii)(A), (B) or
(C) hereof by prior nomination or election, but excluding, for the purposes of this Section 23(a)(iii)(B), any director whose initial assumption of office occurred as a result of an actual or threatened (x) election contest with
respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a person or group other than the Board of Directors or (y) tender offer, merger, sale of substantially all of
the Company’s assets, consolidation, reorganization, or business combination that would be a Change in Control under Section 23(a)(i) hereof on the consummation thereof; or 

  

	 	C.	a director who was serving on the Board of Directors as a result of the consummation of a transaction described in Section 23(a)(i) that would not be a Change in
Control under Section 23(a)(i); or 

  

	 	(iv)	the approval by the Company’s stockholders of a liquidation or dissolution of the Company other than in connection with a transaction described in
Section 23(a)(i) that would not be a Change in Control thereunder. 

 (b)
“Determination” shall mean that either (x) there is a reasonable basis for the conclusion that indemnification of Indemnitee is proper in the circumstances because Indemnitee met a particular standard of conduct or (y)

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

 (f) “Proceeding” shall include any actual, threatened, pending or completed action, suit,
arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened, pending or completed proceeding, whether brought by or in the right of the Company or otherwise and whether civil,
criminal, administrative or investigative in nature, in which Indemnitee was, is, may be or will be involved as a party, witness or otherwise, by reason of Indemnitee’s status as a director or officer of the Company or by reason of any action
taken by Indemnitee or of any inaction on Indemnitee’s part while acting as director or officer of the Company (in each case whether or not he is acting or serving in any such capacity or has such status at the time any liability or expense is
incurred for which indemnification or advancement of Expenses can be provided under this Agreement), or any foreign equivalent of the foregoing. 
 24. Entire Agreement, Modification and Waiver. This Agreement constitutes the entire agreement and understanding of the parties hereto regarding the subject matter hereof, and no supplement,
modification or amendment of this Agreement shall be binding unless executed

 
in writing by both parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor
shall such waiver constitute a continuing waiver. No supplement, modification or amendment of this Agreement shall limit or restrict any right of the Indemnitee under this Agreement in respect of any act or omission of the Indemnitee prior to the
effective date of such supplement, modification or amendment unless expressly provided therein. 
 25. Notices. All
notices, requests, demands or other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand with receipt acknowledged by the party to whom said notice or other communication shall have
been directed or if (ii) mailed by certified or registered mail, return receipt requested with postage prepaid, on the date shown on the return receipt: 
  

	 	(a)	If to the Indemnitee to: 

  

	 	 	____________________ 

	 	 	____________________ 

	 	 	____________________ 

  

	 	(b)	If to the Company, to: 

 Cellu
Tissue Holdings, Inc. 
 1855 Lockeway Drive, Suite 501 
 Alpharetta, Georgia 30004 
 Attention: General Counsel 
 with a copy to: 
 King & Spalding LLP 
 1180 Peachtree Street 
 Atlanta, Georgia 30309 
 Attention: Alan J. Prince 
 or to
such other address as may be furnished to the Indemnitee by the Company or to the Company by the Indemnitee, as the case may be. 
 26. Governing Law. The parties hereto agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, applied without giving effect to any conflicts-of-law principles.

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

			
	CELLU TISSUE HOLDINGS, INC.
		
	By	 	 
	Name:	 	 
	Title:	 	 

  

			
	INDEMNITEE:
		
	By	 	 
	Name:Annual Executive Bonus Program

 Exhibit 10.36 
 CELLU TISSUE HOLDINGS, INC. 
 ANNUAL EXECUTIVE BONUS PROGRAM

 § 1 
 PURPOSE 
 The purpose of the Program is to give each Participant the
opportunity to receive an annual bonus for each Fiscal Year payable in cash if, and to the extent, the Committee determines that the Performance Goals set by the Committee for such Participant for such year have been met. 
 § 2 
 DEFINITIONS 
 Code. The term “Code” for purposes of this Program means the Internal Revenue
Code of 1986, as amended from time to time. 
 Committee. The term “Committee” for purposes of this Program
means the compensation committee of the Board of Directors of the Company or, for periods after the reliance period in Treas. Reg. § 1.162-27(f)(2) expires, if all the members of such committee fail to satisfy the requirements to be an
“outside director” under § 162(m) of the Code, a sub-committee of such committee which consists solely of members who satisfy such requirements. 
 Company. The term “Company” for purposes of this Program means Cellu Tissue Holdings, Inc., a Delaware corporation and any successor to Cellu Tissue Holdings, Inc. 
 Covered Executive. A “Covered Executive” for purposes of this Program means for each Fiscal Year an executive of the
Company whose compensation for such Fiscal Year is subject to the compensation deduction limitations under § 162(m) of the Code. 
 Fiscal Year. The term “Fiscal Year” for purposes of this Program means the Company’s fiscal year. 
 Participant. The term “Participant” for purposes of this Program means for each Fiscal Year each individual who is designated as such by the Committee under § 3. 
 Performance Criteria. The term “Performance Criteria” means (1) the Company’s return over capital costs or
increases in return over capital costs, (2) the Company’s total earnings or the growth in such earnings, (3) the Company’s consolidated earnings or the growth in such earnings, (4) the Company’s earnings per share or
the growth in such earnings, (5) the Company’s net earnings or the growth in

 
such earnings, (6) the Company’s earnings before interest expense, taxes, depreciation, amortization and other non-cash items or the growth in such earnings, (7) the Company’s
earnings before interest and taxes or the growth in such earnings, (8) the Company’s consolidated net income or the growth in such income, (9) the value of the Company’s stock or the growth in such value, (10) the
Company’s stock price or the growth in such price, (11) the Company’s return on assets or the growth on such return, (12) the Company’s cash flow or the growth in such cash flow, (13) the Company’s total
shareholder return or the growth in such return, (14) the Company’s expenses or the reduction of such expenses, (15) the Company’s sales growth, (16) the Company’s overhead ratios or changes in such ratios,
(17) the Company’s expense-to-sales ratios or the changes in such ratios, or (18) the Company’s economic value added or changes in such value added. 
 Performance Goals. The term “Performance Goals” for purposes of this Program means the goal, or the combination of goals, set under § 4 by the Committee for each Participant for
each Fiscal Year based on the Performance Criteria selected by the Committee for such Fiscal Year. 
 Program. The term
“Program” means this Cellu Tissue Holdings, Inc. Annual Executive Bonus Program as in effect from time to time. 
 § 3 
 PARTICIPATION 
 The Committee for each Fiscal Year shall have the right to designate any executive officer of the Company and any other employee of the Company who the Committee deems a key employee as a Participant in
this Program for such Fiscal Year if (1) such designation is made no later than 90 days after the beginning of such Fiscal Year or (2) such designation is effective on the date an individual is first employed if he or she will be a key
employee on the date he or she is first employed. 
 § 4 
 PERFORMANCE GOALS 
 The Committee shall set in writing
the Performance Goals for each Participant for each Fiscal Year based on such Performance Criteria as the Committee deems appropriate under the circumstances, and such Performance Goals shall be set (1) for each Participant described in
§3(1) no later than 90 days after the beginning of such Fiscal Year and (2) for each Participant described in §3(2) no later than the end of the 30 day period which starts on the date he or she is first employed by the Company. The
Committee shall have the right to use different Performance Criteria for different Participants, and the Committee shall have the right to set different Performance Goals for Participants whose goals look to the same Performance Criteria. The
Performance Goals for a Participant may be based on company-wide performance, division-specific performance, department-specific performance, region-specific performance, personal performance or on any combination of such criteria or other criteria
the Committee

  

 -2- 

 
deems appropriate under the circumstances. A Performance Goal may be set in any manner determined by the Committee, including looking to achievement on an absolute or relative basis in relation
to peer groups or indexes, and the Committee may set more than one goal. No change may be made to a Performance Goal after the goal has been set. However, the Committee may express any goal in terms of alternatives, or a range of alternatives, as
the Committee deems appropriate under the circumstances, such as including or excluding (1) any acquisitions or dispositions, restructuring, discontinued operations, extraordinary items and other unusual or non-recurring charges, (2) any
event either not directly related to the operations of the Company or not within the reasonable control of the Company’s management or (3) the effects of tax or accounting changes. Finally, no Performance Goal shall be treated as satisfied
under this § 4 until the Committee certifies that such goal has been satisfied in accordance with § 5. 
 § 5 
 CERTIFICATION AND RIGHT TO PAYMENT 
 The Committee at the end of each Fiscal Year shall certify the extent, if any, to which the Performance Goals set for
each Participant for such Fiscal Year have been met and shall determine the bonus payable to each Participant based on the extent, if any, to which he or she met his or her Performance Goals. However, the Committee shall have the right to reduce a
Participant’s bonus as determined under this § 5 to the extent that the Committee acting in its discretion determines that such a reduction is appropriate. If the Committee certifies that a bonus is payable to a Participant for any
Fiscal Year, such bonus shall be paid in cash as soon as practical after such certification has been made. However, no Participant shall have a right to the payment of a bonus for any Fiscal Year if his or her employment with the Company has
terminated for any reason whatsoever before the date the bonus is actually paid unless the Committee in the exercise of its absolute discretion expressly waives this employment requirement; provided, however, if the Committee so waives this
requirement for any Participant for any Fiscal Year, his or her bonus, if any, earned under this Program shall be paid no later than 2 1/2 months after the end of such Fiscal Year. 
 § 6 
 BONUS CAP 
 No bonus shall be paid to any Participant for any Fiscal Year under this Program to the extent such bonus would exceed 200% of the
Participant’s base salary paid to the Participant during such Fiscal Year or $2,000,000, whichever is less. However, the Committee shall have the discretion to set a lower cap on the bonus payable to any Participant for any Fiscal Year.

  

 -3- 

 § 7 
 ADMINISTRATION 
 The Committee shall have the power to interpret and
administer this Program as the Committee in its absolute discretion deems in the best interest of the Company, and the Committee to the extent practicable shall do so to protect the Company’s right to deduct any bonus payable to a Covered
Executive in light of § 162(m) of the Code. 
 § 8 
 AMENDMENT AND TERMINATION 
 The Committee shall have
the power to amend this Program from time to time as the Committee deems necessary or appropriate and to terminate this Program if the Committee deems that such termination is in the best interest of the Company. 
 § 9 
 MISCELLANEOUS 
 9.1. General Assets. Any bonus payable under this Program shall be paid exclusively from
the Company’s general assets. 
 9.2. General Creditor Status. The status of each Participant with respect to his or
her claim for the payment of a bonus under this Program shall be the same as the status of a general and unsecured creditor of the Company. 
 9.3. No Assignment. No Participant shall have the right to assign or otherwise alienate or commute all or any part of the bonus which might be payable to such Participant under this Program, and
any attempt to do so shall be null and void. 
 9.4. No Contract of Employment. The designation of any individual as a
Participant in this Program shall not constitute an agreement by the Company to employ any such individual for any period of time or affect the Company’s right to terminate his or her employment at any time and for any reason or for no reason.

  

			
	CELLU TISSUE HOLDINGS, INC.
		
	By:	 	 
		
	Title:	 	 
		
	Date:	 	 

  

 -4-

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