Document:

Class C(2008-1) Terms Document

 Exhibit 4.1 
 CHASE ISSUANCE TRUST 
 as Issuing Entity 
 CLASS C(2008-1) TERMS DOCUMENT 
 dated as of April 1, 2008 
 to 
 AMENDED AND RESTATED 
 CHASESERIES INDENTURE SUPPLEMENT 
 dated as of October 15, 2004 
 to 
 THIRD AMENDED AND 
 RESTATED INDENTURE 
 dated as of December 19, 2007 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 as Indenture Trustee and Collateral Agent 

					
	TABLE OF CONTENTS	  	
		
	 	  	PAGE
	ARTICLE I	  	
		
	Definitions and Other Provisions of General Application	  	
			
	 Section 1.01
	  	Definitions	  	1
	 Section 1.02
	  	Governing Law	  	5
	 Section 1.03
	  	Counterparts	  	5
	 Section 1.04
	  	Ratification of Indenture and Indenture Supplement	  	5
		
	ARTICLE II	  	
		
	The Class C(2008-1) Notes	  	
			
	 Section 2.01
	  	Creation and Designation	  	6
	 Section 2.02
	  	Interest Payment	  	6
	 Section 2.03
	  	Calculation Agent; Determination of LIBOR	  	6
	 Section 2.04
	  	Payments of Interest and Principal	  	7
	 Section 2.05
	  	Targeted Amount to be on Deposit in the Class C Reserve Sub-Account	  	7
	 Section 2.06
	  	Form and Delivery of Class C(2008-1) Notes; Depository; Denominations	  	8
	 Section 2.07
	  	Delivery and Payment for the Class C(2008-1) Notes	  	9
	 Section 2.08
	  	Supplemental Indenture	  	9
		
	ARTICLE III	  	
		
	Restrictions on Transfer of the Class C(2008-1) Notes	  	
			
	 Section 3.01
	  	Private Placement of the Class C(2008-1) Notes	  	10
	 Section 3.02
	  	Transfer of the Class C(2008-1) Notes	  	10
		
	ARTICLE IV	  	
		
	Miscellaneous Provision	  	
			
	 Section 4.01
	  	Amendments	  	19

  

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 THIS CLASS C(2008-1) TERMS DOCUMENT (this “Terms Document”), by and between the CHASE ISSUANCE
TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuing Entity”), having its principal office at c/o Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-1600, and WELLS FARGO BANK,
NATIONAL ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”) and collateral agent (the “Collateral Agent”), is made and entered into as of April 1, 2008. 
 Pursuant to this Terms Document, the Issuing Entity and the Indenture Trustee shall create a new Tranche of CHASEseries Class C Notes and shall specify
the principal terms thereof. 
 ARTICLE I 
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 
 Section 1.01 Definitions. For
all purposes of this Terms Document, except as otherwise expressly provided or unless the context otherwise requires: 
 (1)
the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular; 
 (2) all other terms used herein which are defined in the Indenture Supplement, the Indenture or the Asset Pool Supplement, either directly or by reference therein, have the meanings assigned to them therein;

 (3) as used in this Terms Document and in any certificate or other document made or delivered pursuant hereto or thereto,
accounting terms not defined in this Terms Document or in any such certificate or other document, and accounting terms partly defined in this Terms Document or in any such certificate or other document to the extent not defined, shall have the
respective meanings given to them under GAAP. To the extent that the definitions of accounting terms in this Terms Document or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP, the definitions
contained in this Terms Document or in any such certificate or other document shall control; 
 (4) the words
“hereof,” “herein,” “hereunder” and words of similar import when used in this Terms Document shall refer to this Terms Document as a whole and not to any particular provision of this Terms Document; references to any
subsection, Section, clause, Schedule or Exhibit are references to subsections, Sections, clauses, Schedules and Exhibits in or to this Terms Document unless otherwise specified; the term “including” means “including without
limitation”; references to any law or regulation refer to that law or regulation as amended from time to time and include any successor law or regulation; references to any Person include that Person’s successors and assigns; and
references to any 

  

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agreement refer to such agreement, as amended, supplemented or otherwise modified from time to time; 
 (5) in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained
in the Indenture Supplement, the Indenture or the Asset Pool Supplement, the terms and provisions of this Terms Document shall be controlling; and 
 (6) each capitalized term defined herein shall relate only to the Class C(2008-1) Notes and no other Tranche of CHASEseries Notes issued by the Issuing Entity. 
 “Asset Pool Supplement” means the Second Amended and Restated Asset Pool One Supplement to the Indenture, dated as of December 19,
2007, by and among the Issuing Entity, the Indenture Trustee and the Collateral Agent. 
 “Bank” means Chase Bank USA,
National Association, a national banking association. 
 “Beneficiary” means Chase Bank USA, National Association, in its
capacity as beneficial owner of the Issuing Entity. 
 “Calculation Agent” is defined in Section 2.03(a). 

“Class C Reserve Account Percentage” means, for any Monthly Period, (i) zero, if the Quarterly Excess Spread Percentage for such
Monthly Period is greater than or equal to 4.50%, (ii) 1.00%, if the Quarterly Excess Spread Percentage for such Monthly Period is less than 4.50% and greater than or equal to 4.00%, (iii) 1.50%, if the Quarterly Excess Spread Percentage
for such Monthly Period is less than 4.00% and greater than or equal to 3.50%, (iv) 2.50%, if the Quarterly Excess Spread Percentage is less than 3.50% and greater than or equal to 3.00%; (v) 4.00%, if the Quarterly Excess Spread
Percentage for such Monthly Period is less than 3.00% and greater than or equal to 2.50%, (vi) 5.00%, if the Quarterly Excess Spread Percentage is less than 2.50% and greater than or equal to 2.00% and (vii) 5.75%, if the Quarterly Excess
Spread Percentage for such Monthly Period is less than 2.00%. 
 “Class C(2008-1) Note” means any Note, substantially in the
form set forth in Exhibit A-3 to the Indenture Supplement, designated therein as a Class C(2008-1) Note and duly executed and authenticated in accordance with the Indenture. 
 “Class C(2008-1) Noteholder” means a Person in whose name a Class C(2008-1) Note is registered in the Note Register. 
 “Class C(2008-1) Tax Opinion” means an Opinion of Counsel stating that the Class C(2008-1) Notes will be characterized as debt for
United States federal income tax purposes. 
 “Class C(2008-1) Termination Date” means the earliest to occur of (a) the
Principal Payment Date on which the Outstanding Dollar Principal Amount of the Class C(2008- 

  

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1) Notes is paid in full, (b) the Legal Maturity Date and (c) the date on which the Indenture is discharged and satisfied pursuant to Article V
thereof. 
 “Controlled Accumulation Amount” means $20,833,333.34; provided, however, if the Accumulation
Period Length is determined to be less than twelve months pursuant to Section 3.12(b)(ii) of the Indenture Supplement, the Controlled Accumulation Amount for any Note Transfer Date with respect to the Class C(2008-1) Notes will be the amount
specified in the definition of “Controlled Accumulation Amount” in the Indenture Supplement. 
 “Eligible
Purchaser” means a corporation, partnership or other entity which can make the representations set forth in Section 3.02(b) or (c) hereof, as applicable, and that is either (x) a QIB, or in the case of an initial Transfer by
the Bank only, an “Accredited Investor” within the meaning of Rule 501(a)(1)(2)(3) or (7) of Regulation D under the Securities Act or (y) a Non-U.S. Person (as defined in Regulation S under the Securities Act) in an offshore
transaction in compliance with Rule 903 or Rule 904 of Regulation S under the Securities Act. 
 “Exempt Transaction” means
a Transfer to an Eligible Purchaser in a transaction exempt from the registration requirements of the Securities Act and applicable state securities or “blue sky” laws. 
 “Indenture” means the Third Amended and Restated Indenture, dated as of December 19, 2007, between the Issuing Entity and the
Indenture Trustee. 
 “Indenture Supplement” means the Amended and Restated CHASEseries Indenture Supplement, dated as of
October 15, 2004, among the Issuing Entity, the Indenture Trustee and the Collateral Agent. 
 “Initial Dollar Principal
Amount” means $250,000,000. 
 “Interest Payment Date” means May 15, 2008 and the 15th day of each month
thereafter, or if such 15th day is not a Business Day, the next succeeding Business Day. 
 “Interest Period” means, with
respect to any Interest Payment Date, the period from and including the previous Interest Payment Date (or in the case of the initial Interest Payment Date, from and including the Issuance Date) to but excluding such Interest Payment Date.

 “Issuance Date” means April 1, 2008. 
 “Legal Maturity Date” means May 16, 2011. 
 “LIBOR” means, for any
Interest Period, the London interbank offered rate for one-month United States dollar deposits determined by the Calculation Agent on the LIBOR Determination Date for each Interest Period in accordance with the provisions of Section 2.03.

 “LIBOR Determination Date” means (1) March 28, 2008 for the period from and including the Issuance Date through
but excluding May 15, 2008 and (2) for each interest period 

  

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thereafter, the second London Business Day prior to the commencement of the second and each subsequent Interest Period. 
 “London Business Day” means any Business Day on which dealings in deposits in United States Dollars are transacted in the London
interbank market. 
 “Note Interest Rate” means a rate per annum equal to 4.50% in excess of LIBOR as determined by the
Calculation Agent on the related LIBOR Determination Date with respect to each Interest Period. 
 “Paying Agent” means
Wells Fargo Bank, National Association. 
 “Predecessor Note” means, with respect to any particular Note, every previous
Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 3.06 of the Indenture in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note. 
 “QIB” means a “qualified institutional buyer,” as defined in Rule 144A under the Securities Act. 
 “Quarterly Excess Spread Percentage” means, for each Determination Date, the percentage equivalent of a fraction the numerator of which is the sum of the Excess Spread Percentages with respect to the immediately preceding
three Monthly Periods and the denominator of which is three. 
 “Record Date” means, for any Note Transfer Date, the last
Business Day of the preceding Monthly Period. 
 “Reference Banks” means four major banks in the London interbank market
selected by the Beneficiary. 
 “Reuters Screen LIBOR01 Page” means the display page so designated on the Reuters Monitor
Money Rates (or such other page as may replace that page on that service, or such other service as may be nominated as the information vendor, for the purposes of displaying rates comparable to LIBOR). 
 “Scheduled Principal Payment Date” means May 15, 2009. 
 “Stated Principal Amount” means $250,000,000. 
 “Targeted Holders” means each holder of a right to receive interest or principal with respect to any interest in the Issuer with respect to which a Class C(2008-1) Tax Opinion has not been rendered;
provided, however, that any Person holding more than one right or interest each of which would cause such Person to be a Targeted Holder shall be treated as a single Targeted Holder. 
  

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 “Transfer” means a sale, conveyance, assignment, hypothecation, pledge, participation,
or other form of transfer of any Class C(2008-1) Note. 
 Section 1.02 Governing Law. THIS TERMS DOCUMENT WILL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

Section 1.03 Counterparts. This Terms Document may be executed in any number of counterparts, each of which so executed will be deemed to be an
original, but all such counterparts will together constitute but one and the same instrument. 
 Section 1.04 Ratification of Indenture
and Indenture Supplement. As supplemented by this Terms Document, each of the Indenture, the Asset Pool Supplement and the Indenture Supplement is in all respects ratified and confirmed and the Indenture as so supplemented by the Asset Pool
Supplement and the Indenture Supplement as so supplemented by this Terms Document shall be read, taken and construed as one and the same instrument. 
 [END OF ARTICLE I] 
  

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 ARTICLE II 
 THE CLASS C(2008-1) NOTES 
 Section 2.01 Creation and Designation. There is hereby
created a Tranche of CHASEseries Class C Notes to be issued pursuant to the Indenture and the Indenture Supplement to be known as the “CHASEseries Class C(2008-1) Notes.” 
 Section 2.02 Interest Payment. 
 (a)
For each Interest Payment Date, the amount of interest due with respect to the Class C(2008-1) Notes shall be an amount equal to the product of (i)(A) a fraction, the numerator of which is the actual number of days in the related Interest Period and
the denominator of which is 360, times (B) the Note Interest Rate in effect with respect to the related Interest Period, times, (ii) the Outstanding Dollar Principal Amount of the Class C(2008-1) Notes determined as of the
close of business on the Interest Payment Date preceding the related Note Transfer Date for the Class C(2008-1) Notes; provided, however, that for the first Interest Payment Date the amount of interest due with respect to the Class
C(2008-1) Notes shall be an amount equal to the product of (x) the Outstanding Dollar Principal Amount of the Class C(2008-1) Notes on the Issuance Date, (y) 44 divided by 360 and (z) the Note Interest Rate in effect with respect to
the Class C(2008-1) Notes determined on March 28, 2008. Interest on the Class C(2008-1) Notes will be calculated on the basis of the actual number of days elapsed and a 360-day year. 
 (b) Pursuant to Section 3.03 of the Indenture Supplement, on each Note Transfer Date with respect to the Class C(2008-1) Notes, the Indenture
Trustee shall deposit into the Class C(2008-1) Interest Funding Sub-Account the portion of CHASEseries Available Finance Charge Collections allocable to the Class C(2008-1) Notes. 
 Section 2.03 Calculation Agent; Determination of LIBOR 
 (a) The Issuing Entity hereby agrees that for so long as any Class C(2008-1) Notes are Outstanding, there shall at all times be an agent appointed to calculate LIBOR for each Interest Period (the “Calculation
Agent”). The Issuing Entity hereby initially appoints the Indenture Trustee as the Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation Agent may be removed by the Issuing Entity at any time. If the
Calculation Agent is unable or unwilling to act as such or is removed by the Issuing Entity, or if the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuing Entity shall promptly appoint a replacement Calculation Agent that
does not control or is not controlled by or under common control with the Issuing Entity or its Affiliates. The Calculation Agent may not resign its duties, and the Issuing Entity may not remove the Calculation Agent, without a successor having been
duly appointed. 
 (b) On each LIBOR Determination Date, the Calculation Agent shall determine LIBOR on the basis of the rate for deposits in
United States dollars for a one-month period which appears on Reuters Screen LIBOR01 Page or on such comparable system as is 

  

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customarily used to quote LIBOR as of 11:00 a.m., London time, on such date. If such rate does not appear on Reuters Screen LIBOR01 Page or on a comparable
system as is customarily used to quote LIBOR the rate for that LIBOR Determination Date shall be determined on the basis of the rates at which deposits in United States dollars are offered by the Reference Banks at approximately 11:00 a.m., London
time, on that day to prime banks in the London interbank market for a one-month period. The Calculation Agent shall request the principal London office of each of the Reference Banks to provide a quotation of its rate. If at least two such
quotations are provided, the rate for that LIBOR Determination Date shall be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that LIBOR Determination Date will be the arithmetic mean of the
rates quoted by major banks in New York City, selected by the Beneficiary, at approximately 11:00 a.m., New York City time, on that day for loans in United States dollars to leading European banks for a one-month period. 
 (c) The Note Interest Rate applicable to the then current and the immediately preceding Interest Periods may be obtained by telephoning the Indenture
Trustee at its corporate trust office at (612) 667-8058 or such other telephone number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to time.

 (d) On each LIBOR Determination Date, the Calculation Agent shall send to the Indenture Trustee and the Beneficiary, via email or by
facsimile transmission, notification of LIBOR for the following Interest Period. 
 Section 2.04 Payments of Interest and Principal.

 (a) Any installment of interest or principal, if any, payable on any Class C(2008-1) Note which is punctually paid or duly provided for by
the Issuing Entity and the Indenture Trustee on the applicable Interest Payment Date or Principal Payment Date shall be paid by the Paying Agent to the Person in whose name such Class C(2008-1) Note (or one or more Predecessor Notes) is registered
on the Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written instructions received by the Paying Agent from such Person not later than the close of business on the third Business
Day preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date, except that with respect to Notes
registered on the Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee. 
 (b) The right of the Class C(2008-1) Noteholders to receive payments from the Issuing Entity will terminate on the first Business Day following the Class
C(2008-1) Termination Date. 
 Section 2.05 Targeted Amount to be on Deposit in the Class C Reserve Sub-Account. 
 (a) The amount targeted, with respect to any Monthly Period, to be on deposit in the Class C Reserve Sub-Account for the Class C(2008-1) Notes on the Note
Transfer 

  

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Date in the immediately succeeding Monthly Period, will, on the Issuance Date, be zero and, thereafter, will be an amount equal to the product of
(A) the Class C Reserve Account Percentage for such Monthly Period times (B) the Initial Dollar Principal Amount of the CHASEseries Notes (exclusive of (x) any Class or Tranche of CHASEseries Notes which will be paid in full on the
applicable Payment Date for such Class or Tranche of CHASEseries Notes in the immediately succeeding Monthly Period and (y) any Class or Tranche of CHASEseries Notes which will have a Nominal Liquidation Amount of zero on the applicable Payment
Date for such Class or Tranche of CHASEseries Notes in the immediately succeeding Monthly Period) times (C) a fraction, the numerator of which is the Nominal Liquidation Amount of the Class C(2008-1) Notes as of the close of business on the
last day of such Monthly Period (exclusive of the amount deposited with respect to the Targeted Principal Deposit Amount on the applicable Note Transfer Date for such Tranche of CHASEseries Class C Notes in the next succeeding Monthly Period) and
the denominator of which is the Nominal Liquidation Amount of all Class C Notes in the CHASEseries as of the close of business on the last day of such Monthly Period (exclusive of the amount deposited with respect to the Targeted Principal Deposit
Amount on the applicable Note Transfer Date for all Tranches of CHASEseries Class C Notes in the next succeeding Monthly Period); provided however, that if an Early Redemption Event or Event of Default occurs with respect to the Class C(2008-1)
Notes, the amount targeted to be on deposit will be the Initial Dollar Principal Amount of the Class C(2008-1) Notes. 
 (b) The Issuing
Entity may change the percentage and methodology set forth above for calculating the amount targeted to be on deposit in the Class C Reserve Sub-Account for the Class C(2008-1) Notes without the consent of any Noteholder so long as the Issuing
Entity has (i) received written confirmation from each Note Rating Agency that has rated any Outstanding Notes that the change in such percentage or formula will not result in a Ratings Effect with respect to any Outstanding Notes and
(ii) delivered to the Indenture Trustee and the Note Rating Agencies a Master Trust Tax Opinion and an Issuing Entity Tax Opinion. 
 Section 2.06 Form and Delivery of Class C(2008-1) Notes; Depository; Denominations. 
 (a) The Class C(2008-1) Notes, together
with the Indenture Trustee’s certificate of authentication, shall be in substantially the form set forth in Exhibit A. The terms of Class C(2008-1) Notes set forth in Exhibit A are part of the terms of this Terms Document. 
 (b) The Class C(2008-1) Notes shall initially be issued in definitive, fully registered, certificated form and shall initially be retained by and
registered in the name of the Bank. In the event any Class C(2008-1) Note is Transferred in an Exempt Transaction, such Class C(2008-1) Note may be issued either in the form of a global Registered Note as provided in Sections 2.02 and 3.01(i) of the
Indenture, respectively, or in definitive, fully registered, certificated form, as applicable, and shall initially be registered in the name of the beneficial owner as listed in the Note Register. If, however, any Class C(2008-1) Note is Transferred
pursuant to an effective registration under the Securities Act and applicable state securities or “blue sky” laws, such Class C(2008-1) Note shall be issued in the form of a global Registered Note as provided in Sections 2.02 and 3.01(i)
of the Indenture, respectively. The Depository for any Class C(2008-1) Notes issued as global Registered Notes shall be The Depository Trust 

  

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Company, with each such Class C(2008-1) Note being registered in the name of Cede & Co., its nominee. 
 (c) The Class C(2008-1) Notes (i) initially issued to and retained by the Bank and any Class C(2008-1) Notes Transferred in an Exempt Transaction
will be issued in minimum denominations of $250,000 and integral multiples of $1,000 in excess of that amount and (ii) Transferred pursuant to an effective registration statement will be issued in minimum denominations of $1,000 and integral
multiples of that amount. 
 Section 2.07 Delivery and Payment for the Class C(2008-1) Notes. The Issuing Entity shall execute and
deliver the Class C(2008-1) Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Class C(2008-1) Notes when authenticated, each in accordance with Section 3.03 of the Indenture. 
 Section 2.08 Supplemental Indenture. The Issuing Entity may enter into a supplemental indenture with respect to the Class C(2008-1) Notes as
provided in Section 9.01 of the Indenture; provided, however, that any supplemental indenture which provides for an additional or alternative form of credit enhancement for the Class C(2008-1) Notes shall, in addition to the
requirements set forth in Section 9.01 of the Indenture, require confirmation from the Note Rating Agencies that have rated any Outstanding Notes of the CHASEseries that such change in credit enhancement will not result in a Ratings Effect with
respect to any Outstanding Notes of the CHASEseries. 
 [END OF ARTICLE II] 
  

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 ARTICLE III 
 RESTRICTIONS ON TRANSFER OF THE CLASS C(2008-1) NOTES 
 Section 3.01 Private Placement of
the Class C(2008-1) Notes. 
 (a) The Class C(2008-1) Notes have not been registered under the Securities Act, or any state securities or
blue sky law. No Transfer of any Class C(2008-1) Note shall be made except either (i) pursuant to an effective registration under the Securities Act and applicable state securities or “blue sky” laws or (ii) in an Exempt
Transaction. The Class C(2008-1) Notes initially purchased by the Bank and any Class C(2008-1) Notes Transferred in an Exempt Transaction shall bear a legend to the effect set forth in subsection (b) below. None of the Issuing Entity, the
Transfer Agent and Note Registrar, the Owner Trustee or the Indenture Trustee is obligated to register the Class C(2008-1) Notes under the Securities Act or any other securities or “blue sky” law or to take any other action not otherwise
required under this Terms Document, the Indenture, the Indenture Supplement, the Asset Pool Supplement or the Transfer and Servicing Agreement to permit the Transfer of Class C(2008-1) Notes without registration or as described above; provided
however that in connection with any Transfer of a Class C(2008-1) Note, the Bank may, in its sole discretion, register the Class C(2008-1) Notes under the Securities Act or any other securities or “blue sky” law. 
 (b) Each Class C(2008-1) Note (i) initially issued to the Bank or (ii) Transferred in an Exempt Transaction shall bear a restrictive legend to
the following effect: 
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE, OR ANY INTEREST OR PARTICIPATION HEREIN, MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES
ACT AND OTHER APPLICABLE PROVISIONS OF ANY STATE BLUE SKY OR SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH PROVISIONS. 
 Section 3.02 Transfer of the Class C(2008-1) Notes. 
 (a) Transfer of the Class C(2008-1) Notes Pursuant to an Effective
Registration under the Securities Act with a Class C(2008-1) Tax Opinion. If, at the time of any proposed Transfer of the Class C(2008-1) Notes by the Bank, as initial holder of the Class C(2008-1) Notes, the Class C(2008-1) Notes have been
registered under the Securities Act and a Class C(2008-1) Tax Opinion is rendered, then the proposed Transfer will not be subject to any additional restrictions with respect to such Transfer or its proposed transferee. With respect to any such
Transfer, the Class C(2008-1) Note shall be transferred for a global Registered Note which shall bear a legend to the following effect: 
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK 

  

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CORPORATION (“DTC”), TO THE ISSUING ENTITY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE CHASE ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER
TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE CHASE ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, IN, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN
CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE. 
 THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH
HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF CHASE BANK USA, NATIONAL ASSOCIATION FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW
AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 
 (b) Transfer of the Class C(2008-1) Notes in an Exempt Transaction
with a Class C(2008-1) Tax Opinion. If, at the time of any proposed Transfer of the Class C(2008-1) Notes in an Exempt Transaction, a Class C(2008-1) Tax Opinion is rendered, then such Transfer shall be made in compliance with the restrictions
set forth in this subsection 3.02(b) (including the applicable legends to be set forth on the face of the Class C(2008-1) Note as provided in Exhibit A) (i) to a Person (A)(x) who the Issuing Entity reasonably believes is a QIB or (y) only
in connection with an initial Transfer by the Bank of Class C(2008-1) Notes, who is an “Accredited Investor” as defined in Rule 501(a)(1)(2)(3) or (7) of Regulation D (“Regulation D”) under the Securities Act, and
(B) that is aware that the resale or other transfer is being made in reliance on Rule 144A or (ii) in an offshore transaction in accordance with Rule 903 or Rule 904 of Regulation S (“Regulation S”) under the Securities Act. Each
Eligible Purchaser who becomes a Holder of a Class C(2008-1) Note in connection with an Exempt Transaction, by its acceptance of such Class C(2008-1) Note, will, in the case of a global Registered Note, be deemed to have acknowledged, represented to
and agreed with the Issuing Entity and the Bank (and in the case of a certificated Class C(2008-1) note will be required to provide a certificate acknowledging, representing to and agreeing with the Issuing Entity and the Bank) as follows:

 (i) It understands and acknowledges that the Class C(2008-1) Notes may only be Transferred (A) in the United States to
QIBs pursuant to Rule 144A, or (B) outside the United States pursuant to Regulation S. 
  

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 (ii) It understands that the Class C(2008-1) Notes have not been and will not be
registered under the Securities Act or any state or other applicable securities law and that the Class C(2008-1) Notes, or any interest or participation therein, may not be Transferred unless registered pursuant to, or exempt from registration
under, the Securities Act and any other applicable securities law. 
 (iii) It has had access to such financial and other
information concerning the Issuing Entity, the Bank and the Class C(2008-1) Notes as it has deemed necessary in connection with its decision to purchase the Class C(2008-1) Notes. 
 (iv) It acknowledges that the Class C(2008-1) Notes will bear legends to the following effect unless the Issuing Entity determines
otherwise, consistent with applicable law: 
 “THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE, OR ANY INTEREST OR PARTICIPATION HEREIN, MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE PROVISIONS OF ANY STATE BLUE SKY OR SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH PROVISIONS AND ONLY (1) TO THE ISSUING ENTITY, (2) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QIB”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A
QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (3) IN THE CASE OF INITIAL TRANSFERS ONLY, PURSUANT TO SECTION 4(2) UNDER THE SECURITIES ACT TO A PERSON
THAT THE HOLDER REASONABLY BELIEVES IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1)(2)(3) or (7) OF REGULATION D (“REGULATION D”) UNDER THE SECURITIES ACT (AN “ACCREDITED INVESTOR”) PURCHASING FOR ITS OWN
ACCOUNT OR AN ACCREDITED INVESTOR PURCHASING FOR THE ACCOUNT OF AN ACCREDITED INVESTOR, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 501(a)(1)(2)(3) or (7) OF
REGULATION D OR (4) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT. EACH NOTE OWNER BY ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE PURSUANT TO CLAUSE (2) ABOVE, IS DEEMED TO
REPRESENT THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB. 
  

 12 

 THIS NOTE IS SUBJECT TO ADDITIONAL RESTRICTIONS ON RESALE OR TRANSFER SET FORTH IN THE CLASS C(2008-1)
TERMS DOCUMENT (AS HEREINAFTER DEFINED). 
 PRIOR TO PURCHASING ANY NOTES, PURCHASERS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY
AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. THE ISSUING ENTITY HAS NOT AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES LAWS OF ANY STATE OR TO PROVIDE REGISTRATION RIGHTS
TO ANY PURCHASER. 
 AS SET FORTH HEREIN, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
FACE HEREOF.” 
 (v) If it is acquiring any Class C(2008-1) Note, or any interest or participation therein, as a
fiduciary or agent for one or more investor accounts, it represents that it has sole investment discretion with respect to such account and that it has full power to make the acknowledgements, representations and agreements contained herein on
behalf of each such account. 
 (vi) It (A)(i) is a QIB, (ii) is aware that the sale to it is being made in reliance on
Rule 144A and if it is acquiring such Class C(2008-1) Notes or any interest or participation therein for the account of another QIB, such QIB is aware that the sale is being made in reliance on Rule 144A and (iii) is acquiring such Class
C(2008-1) Notes or any interest or participation therein for its own account or for the account of a QIB, (B) in the case of initial Transfers only (i) is an Accredited Investor, (ii) is aware that the sale to it is being made in
reliance on Section 4(2) under the Securities Act and if it is acquiring such Class C(2008-1) Notes or any interest or participation therein for the account of another Accredited Investor, such Accredited Investor is aware that the sale is
being made in reliance on Section 4(2) under the Securities Act and (iii) is acquiring such Class C(2008-1) Notes or any interest or participation therein for its own account or for the account of an Accredited Investor, or (C) is not
a U.S. Person (as defined in Regulation S) and is purchasing such Class C(2008-1) Notes or any interest or participation therein in an offshore transaction pursuant to Regulation S. 
 (vii) It is purchasing the Class C(2008-1) Notes for its own account, or for one or more investor accounts for which it is acting as
fiduciary or agent, in each case for investment, and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act, subject to any requirements of law that the disposition of its property or
the property of such investor account or accounts be at all times within its or their control and subject to its or their ability to resell such Class C(2008-1) Notes, or any interest or participation therein pursuant to the provisions of this Terms
Agreement. 
  

 13 

 (viii) It agrees that if in the future it should offer, sell or otherwise transfer such
Class C(2008-1) Note or any interest or participation therein, it will do so only (A) to the Issuing Entity, (B) pursuant to Rule 144A to a person who it reasonably believes is a QIB in a transaction meeting the requirements of Rule 144A,
purchasing for its own account or for the account of a QIB, whom it has informed that such offer, sale or other transfer is being made in reliance on Rule 144A or (C) in an offshore transaction meeting the requirements of Rule 903 or Rule 904
of Regulation S under the Securities Act. 
 (ix) If it is acquiring such Class C(2008-1) Note or any interest or
participation therein in an offshore transaction (as defined in Regulation S), it acknowledges that the Class C(2008-1) Notes will be represented in the form of a global Registered Note as provided in Sections 2.02 and 3.01(i) of the Indenture,
respectively or in definitive, fully registered, certificated form, as applicable, and that transfers thereof or any interest or participation therein are restricted as set forth in this Terms Agreement. If it is a QIB, it acknowledges that the
Class C(2008-1) Notes offered in reliance on Rule 144A will be represented in the form of a global Registered Note as provided in Sections 2.02 and 3.01(i) of the Indenture, respectively or in definitive, fully registered, certificated form, as
applicable, and that transfers thereof or any interest or participation therein are restricted as set forth in this Terms Agreement. 
 (x) It acknowledges that the Issuing Entity, the Indenture Trustee, the Bank and others will rely on the truth and accuracy of the foregoing acknowledgments, representations and agreements, and agrees that if any of the foregoing
acknowledgments, representations and agreements deemed to have been made by it are no longer accurate, it shall promptly notify the Issuing Entity, the Owner Trust, and the Bank. 
 (xi) With respect to any foreign purchaser claiming an exemption from United States income or withholding tax, it shall have delivered to
the Indenture Trustee a true and complete Form W-8, Form 1001 or Form 4224 or such equivalent form then in effect, indicating such exemption. 
 (xii) It acknowledges that transfers of the Class C(2008-1) Notes or any interest or participation therein shall be subject in all respects to the restrictions applicable thereto contained in this Terms Agreement.

 (c) Transfer of the Class C(2008-1) Notes in an Exempt Transaction without a Class C(2008-1) Tax Opinion. If, at the time of any
proposed Transfer of the Class C(2008-1) Notes in an Exempt Transaction by the Bank, as initial holder of the Class C(2008-1) Notes, a Class C(2008-1) Tax Opinion has not been rendered, then the Transfer restrictions described in subsection
3.02(b)(i) through (iii) and (v) through (xii) (other than clause (iv)), in addition to the restrictions set forth below, will govern. Each Eligible Purchaser who becomes a Holder of a Class C(2008-1) Note, in connection with an
Exempt Transaction for which a Class C(2008-1) Tax Opinion has not been rendered, by its acceptance of such Class C(2008-1) Note, will be required to execute a certificate addressed to the Issuing Entity and the Bank in the form 

  

 14 

 
of Exhibit B attached hereto acknowledging and representing and agreeing to the restriction described in subsection (b)(i) through (iii) and
(v) through (xii) and as follows: 
 (i) Unless a Class C(2008-1) Tax Opinion is rendered, no portion of the Class
C(2008-1) Notes or any interest therein may be Transferred in an Exempt Transaction except in accordance with this subsection 3.02(c). No portion of the Class C(2008-1) Notes or any interest therein may be Transferred in an Exempt Transaction,
unless the Indenture Trustee has received an Issuing Entity Tax Opinion with respect to such Transfer. 
 (ii) Any attempted
Transfer of a Class C(2008-1) Note that would cause the number of Targeted Holders to exceed ninety-five shall be void. 
 (iii) Such Eligible Purchaser is, for federal income tax purposes, either (i) a citizen or resident of the United States, (ii) a corporation or partnership organized in or under the laws of the United States or any state or the
District of Columbia which, if such entity is a tax exempt entity, recognizes that payments with respect to the Class C(2008-1) Notes may constitute unrelated business taxable income, (iii) an estate the income of which is includible in gross
income for U.S. federal income tax purposes regardless of its source, or (iv) (a) a trust for which a court within the United States is able to exercise primary supervision over its administration and for which one or more persons
described in this paragraph are able to control all substantial decisions or (b) a trust for which a valid election has been made to be treated as an United States person. Such Eligible Purchaser also shall agree that it will furnish to the
Person from whom it is acquiring any interest in the Class C(2008-1) Notes and the Indenture Trustee, a properly executed U.S. Internal Revenue Service Form W 9 (and will agree to furnish a new Form W 9, or any successor applicable form, upon the
expiration or obsolescence of any previously delivered form) and such other certifications, representations or Opinions of Counsel as may be requested by the Indenture Trustee. 
 (iv) Such Eligible Purchaser has not acquired and will not Transfer any interest in the Class C(2008-1) Notes or cause an interest in the
Class C(2008-1) Notes to be marketed, on or through an “established securities market” within the meaning of Section 7704(b)(1) of the Code and any Treasury regulations thereunder, including, without limitation, an over the counter
market or an interdealer quotation system that regularly disseminates firm buy or sell quotations. In addition, such Eligible Purchaser shall certify to the Issuing Entity and the Indenture Trustee, prior to any delivery or Transfer to it of any
Class C(2008-1) Notes, (i) that it is not and will not become (and that, if it is disregarded as an entity separate from its owner within the meaning of Treasury Regulations Section 301.7701-3(a) (a “DRE”), its owner is
not and will not become), for so long as the Eligible Purchaser holds an interest in the Class C(2008-1) Notes, a partnership, Subchapter S corporation or grantor trust for U.S. federal income tax purposes (a “Flow-Thru Entity”), or
(ii) that if the Eligible 

  

 15 

 
Purchaser (or, if the Eligible Purchaser is a DRE, its owner) is, or becomes, a Flow-Thru Entity, for so long as the Eligible Purchaser (or, if the Eligible
Purchaser is a DRE, its owner) is a Flow-Thru Entity and the Eligible Purchaser holds an interest in the Class C(2008-1) Notes, not more than 50% of the value of any interests in such Eligible Purchaser (or, if the Eligible Purchaser is a DRE, its
owner) will be attributable to interests in the Issuing Entity held by such Eligible Purchaser. Such Eligible Purchaser of an interest in the Class C(2008-1) Notes acknowledges that the Opinion of Counsel to the effect that the Issuing Entity will
not be treated as an association or publicly traded partnership taxable as a corporation is dependent in part on the accuracy of its certifications described in this subsection 3.02(c). 
 (v) Any request for registration of Transfer of all or any portion of the Class C(2008-1) Notes in an Exempt Transaction pursuant to
subsection 3.02(c) shall be made at the office of the Indenture Trustee, as Transfer Agent and Note Registrar. Only upon receipt by the Indenture Trustee of the written consent of the Issuing Entity to such Transfer shall the Class C(2008-1) Notes
(or such portion thereof) be transferred upon the Note Register; provided, however, that such consent shall only be withheld based upon the reasonable belief of the Issuing Entity that such Transfer may cause the number of Targeted
Holders to exceed ninety-five. Such Transfers of all or any portion of the Class C(2008-1) Notes shall be subject to the restrictions set forth in this subsection 3.02(c). Successive registrations and registrations of Transfers as aforesaid may be
made from time to time as desired, and each such registration shall be noted on the Note Register. 
 (vi) No portion of the
Class C(2008-1) Notes or any interest therein may be Transferred in an Exempt Transaction to (a) an “employee benefit plan” (as defined in Section 3(3) of ERISA), including governmental plans and church plans, (b) any
“plan” (as defined in Section 4975(e)(1) of the Code) including individual retirement accounts and Keogh plans, or (c) any other entity whose underlying assets include “plan assets” (within the meaning of Department of
Labor Regulation Section 2510.3 101, 29 C.F.R. § 2510.3 101 or otherwise under ERISA) by reason of a plan’s investment in the entity, including, without limitation, an insurance company general account. 
 (vii) It acknowledges that the Class C(2008-1) Notes will bear legends to the following effect unless the Issuing Entity determines
otherwise, consistent with applicable law: 
 “THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE, OR ANY INTEREST OR PARTICIPATION HEREIN, MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) TO THE ISSUING ENTITY, (2) PURSUANT TO RULE 144A UNDER THE 

  

 16 

 
SECURITIES ACT TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A
“QIB”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (3) IN THE
CASE OF INITIAL TRANSFERS ONLY, PURSUANT TO SECTION 4(2) UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1)(2)(3) or (7) OF REGULATION D (“REGULATION
D”) UNDER THE SECURITIES ACT (AN “ACCREDITED INVESTOR”) PURCHASING FOR ITS OWN ACCOUNT OR AN ACCREDITED INVESTOR PURCHASING FOR THE ACCOUNT OF AN ACCREDITED INVESTOR, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER,
RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 501(a)(1)(2)(3) or (7) OF REGULATION D. EACH NOTE OWNER BY ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE PURSUANT TO CLAUSE (2) ABOVE, IS DEEMED TO REPRESENT THAT IT IS
EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB. 
 PRIOR TO PURCHASING ANY NOTES, PURCHASERS
SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. THE ISSUING ENTITY HAS NOT AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE
SECURITIES LAWS OF ANY STATE OR TO PROVIDE REGISTRATION RIGHTS TO ANY PURCHASER. 
 AS SET FORTH HEREIN, THE OUTSTANDING PRINCIPAL AMOUNT OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
 THIS NOTE IS SUBJECT TO ADDITIONAL RESTRICTIONS ON RESALE OR
TRANSFER SET FORTH IN THE CLASS C(2008-1) TERMS DOCUMENT (AS HEREINAFTER DEFINED). THIS NOTE MAY NOT BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT THE PRIOR WRITTEN CONSENT OF THE ISSUING ENTITY. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE CHASE ISSUANCE TRUST, THE FIRST
USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE CHASE ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, IN, ANY BANKRUPTCY PROCEEDINGS UNDER ANY
UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE. 
  

 17 

 THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS
NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF CHASE BANK USA, NATIONAL ASSOCIATION FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX
IMPOSED ON OR MEASURED BY INCOME. 
 EACH PURCHASER OR HOLDER REPRESENTS AND WARRANTS FOR THE BENEFIT OF THE ISSUING ENTITY AND THE INDENTURE
TRUSTEE THAT SUCH PURCHASER OR HOLDER IS NOT (A) AN “EMPLOYEE BENEFIT PLAN” (AS DEFINED IN SECTION 3(3) OF ERISA), INCLUDING GOVERNMENTAL PLANS AND CHURCH PLANS, (B) ANY “PLAN” (AS DEFINED IN SECTION 4975(E)(1) OF THE
CODE) INCLUDING INDIVIDUAL RETIREMENT ACCOUNTS AND KEOGH PLANS, OR (C) ANY OTHER ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” (WITHIN THE MEANING OF DEPARTMENT OF LABOR REGULATION SECTION 2510.3 101, 29 C.F.R. § 2510.3
101 OR OTHERWISE UNDER ERISA) BY REASON OF A PLAN’S INVESTMENT IN THE ENTITY, INCLUDING, WITHOUT LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT.” 
 The Issuing Entity will facilitate any Transfer of the Class C(2008-1) Notes consistent with the requirements of this Section 3.02, including assisting in the determination as to whether the number of
Targeted Holders would exceed ninety-five. 
 Any transfer, resale, pledge or other transfer of the Class C(2008-1) Notes contrary to the
restrictions set forth in this Section 3.02 and in this Terms Agreement shall be deemed void ab initio by the Indenture Trustee. As used in this Section 3.02, the terms “United States” and “U.S. persons” have the
meaning given them in Regulation S. 
 [END OF ARTICLE III] 
  

 18 

 ARTICLE IV 
 MISCELLANEOUS PROVISION 
 Section 4.01 Amendments. Notwithstanding anything to the
contrary contained herein, each Class C(2008-1) Note and this Terms Document may be amended or supplemented to modify the restrictions on and procedures for Transfer of the Class C(2008-1) Notes to reflect any change in applicable law or regulation
(or the interpretation thereof) or in practices relating to the Transfer of restricted securities generally. Each Noteholder shall by its acceptance of such Class C(2008-1) Note, have agreed to any such amendment or supplement. 
 [END OF ARTICLE IV] 
  

 19 

 IN WITNESS WHEREOF, the parties hereto have caused this Terms Document to be duly executed, all as of the
day and year first above written. 
  

			
	 CHASE ISSUANCE TRUST

		
	 By:
	 	CHASE BANK USA, NATIONAL ASSOCIATION, as Beneficiary and not in its individual capacity
		
	 By:
	 	 /s/ Keith W. Schuck

	 Name:
	 	Keith W. Schuck
	 Title:
	 	President
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Indenture Trustee and Collateral Agent
		
	 By:
	 	 /s/ Cheryl Zimmerman

	 Name:
	 	Cheryl Zimmerman
	 Title:
	 	Assistant Vice President

 Chase Issuance Trust 
 CHASEseries Class C(2008-1) Terms Document 
 Signature Page 

 EXHIBIT A 
 FORM OF CLASS C NOTE 
 I. Legends to be applied with respect to the initial Class C(2008-1) Note issued to the
Bank: 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE CHASE ISSUANCE
TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE CHASE ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, IN, ANY BANKRUPTCY
PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE. 
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE, OR ANY INTEREST
OR PARTICIPATION HEREIN, MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS AND ONLY (1) TO THE ISSUER, (2) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT TO A
PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QIB”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER
HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (3) IN THE CASE OF INITIAL TRANSFERS ONLY, PURSUANT TO SECTION 4(2) UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER
REASONABLY BELIEVES IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1)(2)(3) or (7) OF REGULATION D (“REGULATION D”) UNDER THE SECURITIES ACT (AN “ACCREDITED INVESTOR”) PURCHASING FOR ITS OWN ACCOUNT OR AN
ACCREDITED INVESTOR PURCHASING FOR THE ACCOUNT OF AN ACCREDITED INVESTOR, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 501(a)(1)(2)(3) or (7) OF REGULATION D OR
(4) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 

  

 A-1 

 
OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT. EACH NOTE OWNER BY ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE PURSUANT TO CLAUSE (2) ABOVE, IS
DEEMED TO REPRESENT THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB. 
 PRIOR TO PURCHASING ANY
NOTES, PURCHASERS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. THE ISSUER HAS NOT AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER
THE SECURITIES OR BLUE SKY LAWS OF ANY STATE OR TO PROVIDE REGISTRATION RIGHTS TO ANY PURCHASER. 
 AS SET FORTH HEREIN, THE OUTSTANDING PRINCIPAL AMOUNT OF
THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  

 A-2 

 II. Legends to be applied with respect to Class C(2008-1) Notes Transferred pursuant to an effective registration
under the Securities Act and a Class C(2008-1) Tax Opinion: 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT
AT ANY TIME INSTITUTE AGAINST THE CHASE ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE CHASE ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE
CREDIT CARD MASTER TRUST, IN, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE. 
 THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO
TREAT THE NOTES AS INDEBTEDNESS OF CHASE BANK USA, NATIONAL ASSOCIATION FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 
 UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN. 
  

 A-3 

 III. Legends to be applied with respect to Class C(2008-1) Notes Transferred in an Exempt Transaction with a Class
C(2008-1) Tax Opinion: 
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE, OR ANY INTEREST OR PARTICIPATION HEREIN, MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES
ACT AND OTHER APPLICABLE LAWS AND ONLY (1) TO THE ISSUER, (2) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT (A “QIB”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A,
(3) IN THE CASE OF INITIAL TRANSFERS ONLY, PURSUANT TO SECTION 4(2) UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1)(2)(3) or (7) OF REGULATION D
(“REGULATION D”) UNDER THE SECURITIES ACT (AN “ACCREDITED INVESTOR”) PURCHASING FOR ITS OWN ACCOUNT OR AN ACCREDITED INVESTOR PURCHASING FOR THE ACCOUNT OF AN ACCREDITED INVESTOR, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT
THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 501(a)(1)(2)(3) or (7) OF REGULATION D OR (4) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT. EACH
NOTE OWNER BY ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE PURSUANT TO CLAUSE (2) ABOVE, IS DEEMED TO REPRESENT THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB. 
 PRIOR TO PURCHASING ANY NOTES, PURCHASERS SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER.
THE ISSUER HAS NOT AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE OR TO PROVIDE REGISTRATION RIGHTS TO ANY PURCHASER. 
  

 A-4 

 AS SET FORTH HEREIN, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
FACE HEREOF. 
 THIS NOTE IS SUBJECT TO ADDITIONAL RESTRICTIONS ON RESALE OR TRANSFER SET FORTH IN THE CLASS C(2008-1) TERMS DOCUMENT (AS HEREINAFTER
DEFINED). 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE CHASE ISSUANCE TRUST,
THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE CHASE ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, IN, ANY BANKRUPTCY PROCEEDINGS
UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES OR THE INDENTURE. 
 THE HOLDER
OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF CHASE BANK USA, NATIONAL ASSOCIATION FOR APPLICABLE
FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 
  

 A-5 

 IV. Legends to be applied with respect to Class C(2008-1) Notes Transferred in an Exempt Transaction without a
Class C(2008-1) Tax Opinion: 
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAW. THE HOLDER HEREOF, BY PURCHASING THIS NOTE, AGREES THAT THIS NOTE, OR ANY INTEREST OR PARTICIPATION HEREIN, MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES
ACT AND OTHER APPLICABLE LAWS AND ONLY (1) TO THE ISSUER, (2) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT (A “QIB”) PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR
(3) IN THE CASE OF INITIAL TRANSFERS ONLY, PURSUANT TO SECTION 4(2) UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501(a)(1)(2)(3) or (7) OF REGULATION D
(“REGULATION D”) UNDER THE SECURITIES ACT (AN “ACCREDITED INVESTOR”) PURCHASING FOR ITS OWN ACCOUNT OR AN ACCREDITED INVESTOR PURCHASING FOR THE ACCOUNT OF AN ACCREDITED INVESTOR, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT
THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 501(a)(1)(2)(3) or (7) OF REGULATION D. EACH NOTE OWNER BY ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE PURSUANT TO CLAUSE (2) ABOVE, IS DEEMED TO REPRESENT
THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF ANOTHER QIB. 
 PRIOR TO PURCHASING ANY NOTES, PURCHASERS
SHOULD CONSULT COUNSEL WITH RESPECT TO THE AVAILABILITY AND CONDITIONS OF EXEMPTION FROM THE RESTRICTION ON RESALE OR TRANSFER. THE ISSUER HAS NOT AGREED TO REGISTER THE NOTES UNDER THE SECURITIES ACT, TO QUALIFY THE NOTES UNDER THE SECURITIES OR
BLUE SKY LAWS OF ANY STATE OR TO PROVIDE REGISTRATION RIGHTS TO ANY PURCHASER. 
  

 A-6 

 AS SET FORTH HEREIN, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE
FACE HEREOF. 
 THIS NOTE IS SUBJECT TO ADDITIONAL RESTRICTIONS ON RESALE OR TRANSFER SET FORTH IN THE CLASS C(2008-1) TERMS DOCUMENT (AS HEREINAFTER
DEFINED). THIS NOTE MAY NOT BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT THE PRIOR WRITTEN CONSENT OF THE ISSUER. 
 THE HOLDER OF THIS
NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT WILL NOT AT ANY TIME INSTITUTE AGAINST THE CHASE ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE CHASE
ISSUANCE TRUST, THE FIRST USA CREDIT CARD MASTER TRUST OR THE CHASE CREDIT CARD MASTER TRUST, IN, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES
OR THE INDENTURE. 
 THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A
BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS OF CHASE BANK USA, NATIONAL ASSOCIATION FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME.

 EACH PURCHASER OR HOLDER REPRESENTS AND WARRANTS FOR THE BENEFIT OF THE ISSUER AND THE INDENTURE TRUSTEE THAT SUCH PURCHASER OR HOLDER IS NOT (A) AN
“EMPLOYEE BENEFIT PLAN” (AS DEFINED IN SECTION 3(3) OF ERISA), INCLUDING GOVERNMENTAL PLANS AND CHURCH PLANS, (B) ANY “PLAN” (AS DEFINED IN SECTION 4975(E)(1) OF THE CODE) INCLUDING INDIVIDUAL RETIREMENT ACCOUNTS AND KEOGH
PLANS, OR (C) ANY OTHER ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” (WITHIN THE MEANING OF DEPARTMENT OF LABOR REGULATION SECTION 2510.3-101, 29 C.F.R. § 2510.3-101 OR OTHERWISE UNDER ERISA) BY REASON OF A PLAN’S
INVESTMENT IN THE ENTITY, INCLUDING, WITHOUT LIMITATION, AN INSURANCE COMPANY GENERAL ACCOUNT. 
  

 A-7 

			
	REGISTERED	  	up to $                    

 No. R-1 
 CHASE ISSUANCE TRUST 
 Floating Rate 
 CHASEseries CLASS C(2008-1) NOTE 
 Chase Issuance Trust, a statutory trust created under the laws of
the State of Delaware (herein referred to as the “Issuing Entity”), for value received, hereby promises to pay to [            ], or registered assigns, subject to the following
provisions, a principal sum of TWO HUNDRED AND FIFTY MILLION DOLLARS payable on May 15, 2009 (the “Scheduled Principal Payment Date”), except as otherwise provided below or in the Indenture; provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on May 16, 2011 (the “Legal Maturity Date”). Interest will accrue on this Note at the rate of LIBOR plus 4.50% per annum, as more specifically set forth in the
Class C(2008-1) Terms Document, dated as of April 1, 2008 (the “Class C(2008-1) Terms Document”), between the Issuing Entity, the Indenture Trustee and the Collateral Agent, and shall be due and payable on each Interest Payment Date
from the Monthly Interest Accrual Date in the related Monthly Period (or, in the case of the first Interest Payment Date, from and including the date of issuance of this Note) to but excluding the first Monthly Interest Accrual Date after the end of
that Monthly Period. Interest will be computed on the basis of a 360-day year and the actual number of days elapsed. Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 
 The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender
for payment of public and private debts. All payments made by the Issuing Entity with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note. 

Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note. 
 Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears
below by manual signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose. 
  

 A-8 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or in facsimile,
by its Authorized Officer. 
  

			
	CHASE ISSUANCE TRUST, as Issuing Entity
		
	By:	 	CHASE BANK USA,
		 	NATIONAL ASSOCIATION, not in its individual capacity but solely as Beneficiary under the Trust Agreement
		
	By:	 	  

	Name:	 	Keith W. Schuck
	Title:	 	President
		
	Date:	 	April 1, 2008

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is the one of the Notes designated above and referred to in the within-mentioned Indenture. 
  

			
	WELLS FARGO BANK,
	NATIONAL ASSOCIATION, not in its individual capacity but solely as Indenture Trustee
		
	By:	 	  

	Name:	 	Cheryl C. Zimmerman, CCTS
	Title:	 	Assistant Vice President
		
	Date:	 	April 1, 2008

  

 A-9 

 [REVERSE OF NOTE] 
 This Class C Note is one of the Notes of a duly authorized issue of Notes of the Issuing Entity, designated as its “CHASEseries Class C(2008-1) Notes” (herein called the “Notes”), all issued under
an Third Amended and Restated Indenture dated as of December 19, 2007 (such indenture, as supplemented or amended, is herein called the “Indenture”), between the Issuing Entity and Wells Fargo Bank, National Association, as indenture
trustee (the “Indenture Trustee,” which term includes any successor Indenture Trustee under the Indenture), as supplemented by an Second Amended and Restated Asset Pool One Supplement dated as of December 19, 2007 (the “Asset
Pool One Supplement”), an Amended and Restated CHASEseries Indenture Supplement, dated as of October 15, 2004 (the “Indenture Supplement”), and the Class C(2008-1) Terms Document, each between the Issuing Entity and Wells Fargo
Bank, National Association, as Indenture Trustee and collateral agent (the “Collateral Agent”), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations
thereunder of the Issuing Entity, the Indenture Trustee, the Collateral Agent and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the Indenture, as so supplemented or amended. 
 Although a summary of
certain provisions of the Indenture is set forth below, this Note is qualified in its entirety by the terms and provisions of the Indenture and reference is made to that Indenture for information with respect to the interests, rights, benefits,
obligations, proceeds and duties evidenced hereby and the rights, duties and obligations of the Indenture Trustee. 
 The Class A Notes
and the Class B Notes will also be issued under the Indenture. 
 The Notes are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture and the Asset Pool One Supplement. 
 Principal of this Note will be payable on the
Scheduled Principal Payment Date in an amount described on the face hereof, subject to the provisions of the Indenture. 
 As described
above, the entire unpaid principal amount of this Note shall be due and payable on the Legal Maturity Date. Notwithstanding the foregoing, the entire unpaid principal amount of the Notes shall be due and payable on the date on which an Event of
Default relating solely to the non-payment of interest on the Notes shall have occurred and be continuing and the Indenture Trustee or the Holders of more than 66b% of the Outstanding Dollar Principal Amount of the Notes have declared the Notes to
be immediately due and payable in the manner provided in Section 6.02 of the Indenture; provided, however, that such acceleration of the entire unpaid principal amount of the Notes may be rescinded by the holders of more than 66b%
of the Outstanding Dollar Principal Amount of the Notes. All principal payments on the Notes shall be made pro rata to the Noteholders entitled thereto. 
  

 A-10 

 On any Payment Date on or after the Payment Date on which the aggregate Nominal Liquidation Amount (after
giving effect to all payments on such Payment Date) of any class of Notes is reduced to less than 10% of its highest Outstanding Dollar Principal Amount at any time, the Servicer has the right, but not the obligation, to redeem such class of Notes
in whole but not in part, pursuant to Section 11.02 of the Indenture. The redemption price of such Notes will equal 100% of the Outstanding Dollar Principal Amount of such Tranche plus accrued, unpaid and additional interest or principal
accreted and unpaid on such Tranche to but excluding the date of redemption. 
 Subject to the terms and conditions of the Indenture, the
Issuing Entity may, from time to time, issue one or more series of Notes secured by one or more asset pools. Subject to the terms of the Asset Pool One Supplement, the Issuing Entity may, from time to time, issue one or more series of Notes secured
by Asset Pool One. Subject to the terms and conditions of the Indenture Supplement, the Issuing Entity may, from time to time, issue one or more Tranches of CHASEseries Notes. 
 On each Payment Date, the Paying Agent shall distribute to each Noteholder of record on the related Record Date (except for the final distribution with
respect to this Note) such Noteholder’s pro rata share of the amounts held by the Paying Agent that are allocated and available on such Payment Date to pay interest and principal on the Notes. Final payments of this Note will be made
only upon presentation and surrender of this Note at the office or offices therein specified. 
 Payments of interest on this Note due and
payable on each Interest Payment Date, together with the installment of principal, if any, due and payable on each Principal Payment Date, to the extent not in full payment of this Note, shall be made by check mailed to the Person whose name appears
as the Registered Holder of this Note (or one or more Predecessor Notes) on the Note Register as of the close of business on each Record Date, except that with respect to Notes registered on the Record Date in the name of the nominee of the clearing
agency (initially, such nominee to be Cede & Co.), as applicable, payments will be made by wire transfer in immediately available funds to the account designated by such nominee. Such checks shall be mailed to the Person entitled thereto at
the address of such Person as it appears on the Note Register as of the applicable Record Date without requiring that this Note be submitted for notation of payment. Any reduction in the principal amount of this Note (or any one or more Predecessor
Notes) effected by any payments made on any Payment Date shall be binding upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If
funds are expected to be available, as provided in the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuing Entity, will
notify the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date by notice mailed within five days of such Payment Date and the amount then due and payable shall be payable only upon presentation and surrender
of this Note at the Indenture Trustee’s principal Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for such purposes located in the City of New York. On any payment of interest or principal being made,
details of such payment shall be entered by the Indenture Trustee on behalf of the Issuing Entity in Schedule A hereto. 
  

 A-11 

 As provided in the Indenture and subject to certain limitations set forth therein, the transfer of this
Note may be registered on the Note Register upon surrender of this Note for registration of transfer at the office or agency designated by the Issuing Entity pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his attorney duly authorized in writing, with such signature guaranteed by a commercial bank or trust company located, or having a correspondent located,
in the City of New York or the city in which the Corporate Trust Office is located, or a member firm of a national securities exchange, and such other documents as the Indenture Trustee may require, and thereupon one or more new Notes of authorized
denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees. No service charge will be charged for any registration of transfer or exchange of this Note, but the Issuing Entity may be required
to pay a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any such registration of transfer or exchange. 
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee, the Collateral Agent or
the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee, the Collateral Agent or
the Owner Trustee in its individual capacity, any holder of a beneficial interest in the Issuing Entity, the Owner Trustee, the Collateral Agent or the Indenture Trustee or of any successor or assign of the Indenture Trustee, the Collateral Agent or
the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration
for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
 Each Noteholder or Note Owner, by
acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that by accepting the benefits of the Indenture that such Noteholder will not at any time institute against First USA Credit Card Master
Trust, Chase Credit Card Master Trust or the Issuing Entity, or join with any institution against First USA Credit Card Master Trust, Chase Credit Card Master Trust or the Issuing Entity, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture, the Asset Pool One Supplement, the CHASEseries Indenture
Supplement, the Terms Agreement or any Derivative Agreement. 
 Prior to the due presentment for registration of transfer of this Note, the
Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 
  

 A-12 

 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuing Entity and the rights of the Holders of the Notes under the Indenture at any time by the Issuing Entity with the consent of the Holders of Notes representing more than 66b% of the Outstanding
Dollar Principal Amount of the Notes. The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Dollar Principal Amount of the Notes, on behalf of the Holders of all the Notes, to
waive compliance by the Issuing Entity with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any one of more Predecessor Notes) shall
be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made
upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued thereunder. 
 The term “Issuing Entity” as used in this Note includes any successor to the Issuing Entity under the Indenture. 
 The Issuing Entity is permitted by the Indenture, under certain circumstances, to merge or consolidate, subject to the rights of the Indenture Trustee
and the Holders of Notes under the Indenture. 
 The Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth. 
 THIS NOTE AND THE INDENTURE WILL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuing Entity, which
is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein prescribed. 
 No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuing Entity on the Notes or under the Indenture or any certificate or other writing delivered in connection herewith or
therewith, against (i) the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity or (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the Issuing Entity or the Owner Trustee or of any successor or assign of the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it
being understood that the Owner Trustee has no such obligations in its individual capacity). The Holder of this Note by the acceptance hereof agrees that, except as expressly provided in the Indenture, the Asset Pool One Supplement, the CHASEseries

  

 A-13 

 
Indenture Supplement and the Class C(2008-1) Terms Document, in the case of an Event of Default under the Indenture, the Holder shall have no claim against
any of the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuing Entity for any and all liabilities,
obligations and undertakings contained in the Indenture or in this Note. 
 Notwithstanding the allocation provisions of the Indenture, the
Asset Pool One Supplement, each additional Asset Pool Supplement, the CHASEseries Indenture Supplement and the indenture supplements for each other Series of Notes, if any, to the extent that the CHASEseries Noteholders are deemed to have any
interest in any assets of the Issuing Entity allocated to other Notes, each Noteholder or Note Owner, by acceptance of a Note, or in the case of a Note Owner, a beneficial interest in a Note, shall agree that their interest in those assets is
subordinate to claims or rights of such other Noteholders to those other assets. Further, each Noteholder or Note Owner, by acceptance of a Note, or in the case of a Note Owner, a beneficial interest in a Note, shall agree that such agreement
constitutes a subordination agreement for purposes of Section 510(a) of the Bankruptcy Code. 
  

 A-14 

 ASSIGNMENT 
 Social Security or taxpayer I.D. or other identifying number of assignee 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto 
 (name and address of assignee) 
 the within Note and all
rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 
  

					
	Dated:	 	  
	 	

  

			
	  
	 	*

			
	Signature Guaranteed:

  

	*	NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration,
enlargement or any change whatsoever. 

  

 A-15 

 SCHEDULE A 
 PART I 
 INTEREST PAYMENTS 
  

									
	 Interest
Payment Date
	  	 Date of
Payment
	  	 Total Amount
of Interest
Payable
	  	 Amount of
Interest Paid
	  	 Confirmation
 of payment by
 or on behalf
 of the Trust

  

 A-16 

 PART II 
 PRINCIPAL PAYMENTS 
  

							
	 Date of
 Payment
	  	 Total Amount
Payable
	  	 Total Amount
Paid
	  	 Confirmation of
 payment by or on
 behalf of the
Trust

		  		  		  	
		  		  		  	
		  		  		  	
	 Date of
Payment
	  	 Total Amount
Payable
	  	 Total Amount
Paid
	  	 Confirmation of
 payment by or on
 behalf of the
Trust

  

 A-17Fourth Amendment, dated as of March 31, 2008

 Exhibit 10.1 
 EXECUTION COPY 
 FOURTH AMENDMENT 
 This Fourth Amendment (the “Agreement”) to the Credit Agreement referred to below is dated as of March 31, 2008, by and among
BOWATER INCORPORATED, a corporation organized under the laws of Delaware, in its capacity as Borrower under the Credit Agreement referred to below (the “Borrower”), certain Subsidiaries of the Borrower party hereto (the
“Subsidiary Grantors”), AbitibiBowater Inc., a corporation organized under the laws of Delaware (the “Parent”), the Lenders and the Canadian Lenders party hereto (collectively, the “Consenting
Lenders”) pursuant to an authorization (in the form attached hereto as Exhibit A, each a “Lender Authorization”‘) and WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative agent (the “Administrative
Agent”) for the Lenders party to the Credit Agreement referred to below. 
 STATEMENT OF PURPOSE: 
 The Borrower, the Lenders, certain other financial institutions and the Administrative Agent are parties to the Credit Agreement dated as of May 31,
2006 (as amended by that certain First Amendment dated as of July 20, 2007, that certain Second Amendment dated as of October 31, 2007, that certain Third Amendment and Waiver dated as of February 25, 2008, as amended hereby and as
further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). 
 The Borrower
has requested that the Administrative Agent, the Lenders and the Canadian Lenders agree to amend the Credit Agreement as more specifically set forth herein. Subject to the terms and conditions set forth herein, the Administrative Agent and each of
the Consenting Lenders have agreed to grant such requests of the Borrower. 
 NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Capital Terms. Except as
otherwise provided herein, all capitalized undefined terms used in this Agreement (including, without limitation, in the introductory paragraph and the statement of purpose hereto) shall have the meanings assigned thereto in the Credit Agreement (as
amended by this Agreement). 
 2. Credit Agreement Amendments. The Credit Agreement is hereby amended as set forth on Exhibit
B; provided, that the Administrative Agent (in consultation with the Lenders and the Canadian Lenders) may effect such other amendments to the Credit Agreement as may be necessary or appropriate, in the opinion of the Administrative Agent
(in consultation with the Lenders and the Canadian Lenders), to reflect changes in the structure of the New Borrower Transactions from the structure described in the Credit Agreement so long as (a) any such new structure has substantially the
same economic end result as the structure described in the Credit Agreement and (b) any such changes are limited to changes that are not materially adverse to the Lenders or the Canadian Lenders. 
 3. Conditions to Effectiveness. Upon the satisfaction of each of the following conditions, this Agreement shall be deemed to be effective as of
the date hereof: 
 (a) the Administrative Agent shall have received counterparts of this Agreement executed by the Administrative Agent (on
behalf of itself and each of the Consenting Lenders by virtue of each Consenting Lender’s execution of a Lender Authorization), the Borrower, the Parent and the Subsidiary Grantors; 
 (b) the Administrative Agent shall have received executed Lender Authorizations from the requisite Consenting Lenders; 
  

 1 

 (c) the Administrative Agent shall have been reimbursed for all fees (including, without limitation, the
fees set forth in that certain letter agreement dated as of March 18, 2008 (as amended, restated, supplemented or otherwise modified) between Wachovia Capital Markets, LLC and the Borrower) and out-of-pocket charges and other expenses incurred
in connection with this Agreement, including, without limitation, the reasonable fees and disbursements of counsel for the Administrative Agent; 
 (d) the Administrative Agent and the Canadian Administrative Agent shall have received (i) Schedule 1.1(c) to the Credit Agreement and (ii) Schedule 1.l(c) to the Canadian Credit Agreement, in each case, in form
and substance reasonably satisfactory to the Administrative Agent and the Canadian Administrative Agent; 
 (e) the Administrative Agent
shall have received a corresponding amendment to the Canadian Credit Agreement, in form and substance substantially consistent with this Agreement (with such changes as are applicable only to the Canadian Credit Agreement), duly executed by the
Canadian Administrative Agent, the Canadian Borrower, the Parent, each Canadian Guarantor and the requisite Consenting Lenders (whether directly or through a lender authorization); 
 (f) the Borrower shall have paid to the Administrative Agent (or its applicable affiliates), for the account of each Consenting Lender (including the
Administrative Agent and the Canadian Administrative Agent) that executes and delivers this Agreement or a Lender Authorization to the Administrative Agent (or its counsel) on or prior to 12:00 noon (Eastern Time) on March 27, 2008, an
amendment fee in an amount equal to (a) 15 basis points times the principal amount of such Consenting Lender’s Commitment plus (b) 15 basis points times the principal amount of such Consenting Lender’s
“Commitment” (as defined in the Canadian Credit Agreement); 
 (g) the Administrative Agent shall have received a duly executed
counterpart of the Parent Guaranty Agreement and each other document required to be delivered in connection therewith pursuant to, and in accordance with, Section 8.10(e)(i) of the Credit Agreement; 
 (h) the Administrative Agent shall have received favorable opinions of counsel to the Parent addressed to the Administrative Agent and the Lenders with
respect to the Parent, this Agreement and the other Loan Documents to which the Parent is a party and such other matters as the Lenders shall request (which such opinions shall expressly permit reliance by successors and assigns of the
Administrative Agent or any Lender); 
 (i) the Administrative Agent shall have received a copy of the fully executed Purchase Agreement
dated March 24, 2008 by and between the Parent and Fairfax Financial Holdings Limited (including the exhibits and schedules thereto) and each other material document, instrument, certificate and agreement executed or delivered in connection
therewith, all of which shall be in form and substance satisfactory to the Administrative Agent (the “April 2008 Convertible Indebtedness Documents”) (it being agreed by the Parent that none of the April 2008 Convertible
Indebtedness Documents shall be amended, modified, waived or supplemented after March 24, 2008 in any respect which would adversely affect the rights or interests of the Administrative Agent, the Canadian Administrative Agent, the Lenders or
the Canadian Lenders); and 
 (j) the Administrative Agent shall have received such other instruments, documents and certificates as the
Administrative Agent shall reasonably request in connection with the execution of this Agreement. 
 4. Effect of the Agreement.
Except as expressly provided herein, the Credit Agreement and the other Loan Documents shall remain unmodified and in full force and effect. Except as expressly set 

  

 2 

 
forth herein, this Agreement shall not be deemed (a) to be a waiver of, or consent to, a modification or amendment of, any other term or condition of
the Credit Agreement or any other Loan Document, (b) to prejudice any other right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the Credit Agreement or the other Loan
Documents or any of the instruments or agreements referred to therein, as the same may be amended, restated, supplemented or otherwise modified from time to time, (c) to be a commitment or any other undertaking or expression of any willingness
to engage in any further discussion with the Borrower or any other Person with respect to any waiver, amendment, modification or any other change to the Credit Agreement or the Loan Documents or any rights or remedies arising in favor of the Lenders
or the Administrative Agent, or any of them, under or with respect to any such documents or (d) to be a waiver of, or consent to or a modification or amendment of, any other term or condition of any other agreement by and among the Borrower, on
the one hand, and the Administrative Agent or any other Lender, on the other hand. References in the Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”, ‘“herein”,
and “hereof) and in any Loan Document to the Credit Agreement shall be deemed to be references to the Credit Agreement as modified hereby. 
 5. Representations and Warranties/No Default. By their execution hereof, 
 (a) the Borrower and each
Subsidiary Grantor hereby certifies, represents and warrants to the Administrative Agent and the Lenders that after giving effect to the amendments set forth in Section 2 above, each of the representations and warranties set forth in the
Credit Agreement and the other Loan Documents is true and correct in all material respects as of the date hereof (except to the extent that (A) any such representation or warranty that is qualified by materiality or by reference to Material
Adverse Effect, in which case such representation or warranty is true and correct in all respects as of the date hereof or (B) any such representation or warranty relates only to an earlier date, in which case such representation or warranty
shall remain true and correct as of such earlier date) and that no Default or Event of Default has occurred or is continuing; 
 (b) the Borrower, the Parent and each of the Subsidiary Grantors hereby certifies, represents and warrants to the Administrative Agent and the Lenders that: 
 (i) it has the right, power and authority and has taken all necessary corporate and other action to authorize the execution, delivery and
performance of this Agreement and each of the other documents executed in connection herewith to which it is a party in accordance with their respective terms and the transactions contemplated hereby; and 
 (ii) this Agreement and each other document executed in connection herewith has been duly executed and delivered by the duly authorized
officers of the Borrower, the Parent and each of the Subsidiary Grantors, and each such document constitutes the legal, valid and binding obligation of the Borrower, the Parent and each of the Subsidiary Grantors, enforceable in accordance with its
terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability
of equitable remedies. 
 6. Reaffirmations. Each Credit Party (a) agrees that the transactions contemplated by this Agreement
shall not limit or diminish the obligations of such Person under, or release such Person from any obligations under, the Subsidiary Guaranty Agreement, the Collateral Agreement and each other Security Document to which it is a party,
(b) confirms and reaffirms its obligations under the Subsidiary Guaranty Agreement, the Collateral Agreement and each other Security Document to which it is a party and (c) agrees that the Subsidiary Guaranty Agreement, the Collateral
Agreement and each other Security Document to which it is a party remain in full force and effect and are hereby ratified and confirmed. 
  

 3 

 7. Acknowledgement by Parent. The Parent hereby acknowledges receipt of a copy of the Credit
Agreement and agrees, for the benefit of the Administrative Agent and the Secured Parties, to be bound thereby and to comply with the terms thereof insofar as such terms are applicable to it (including, without limitation, Sections 7.1(f),
8.10(e)(i), 10.5(i); 10.6(i) and 11.1(o)). 
 8. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THEREOF. 
 9.
Counterparts. This Agreement may be executed by one or more of the parties hereto in any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 
 10. Electronic Transmission. A facsimile, telecopy, pdf or other reproduction of this Agreement may be executed by one or more parties hereto, and
an executed copy of this Agreement may be delivered by one or more parties hereto by facsimile or similar instantaneous electronic transmission device pursuant to which the signature of or on behalf of such party can be seen, and such execution and
delivery shall be considered valid, binding and effective for all purposes. At the request of any party hereto, all parties hereto agree to execute an original of this Agreement as well as any facsimile, telecopy, pdf or other reproduction hereof.

 11. Consent of Delivery of Audited Statements. By its execution of a Lender Authorization, each of the Consenting Lenders hereby
agrees to extend the time period for delivery of the audited Consolidated financial statements of the Borrower and its Subsidiaries for the fiscal year ended December 31, 2007 and related information (in each case as required pursuant to
Sections 7.l(b), 7.1(c), 7.2 and 7.3. of the Credit Agreement; such information, the “2007 Audited Financials”) to no later than April 15, 2008. The consent set forth in this Section shall apply only
to the 2007 Audited Financials and the fiscal year ended December 31, 2007 and shall not affect subsequent fiscal periods. The parties hereto agree that failure by the Borrower to deliver the 2007 Audited Financials by April 15, 2008 shall
be a breach of Sections 7.1(b), 7.1(c), 7.2 and 7.3 and an immediate Event of Default under Section 11.1(d) of the Credit Agreement. 
 (Signature Pages Follow) 
  

 4 

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

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

	Name:	 	William G. Harvey
	Title:	 	Vice President & Treasurer
	
	PARENT:
	
	ABITIBIBOWATER INC.
		
	By:	 	 /s/ William G. Harvey

	Name:	 	William G. Harvey
	Title:	 	Sr. Vice President & CFO
	
	SUBSIDIARY GRANTORS:
	
	BOWATER MISSISSIPPI HOLDINGS INC.
		
	By:	 	 /s/ William G. Harvey

	Name:	 	William G. Harvey
	Title:	 	Vice President & Treasurer
	
	BOWATER MISSISSIPPI LLC
		
	By:	 	 David A. Spraley

	Name:	 	David A. Spraley
	Title:	 	Manager
	
	BOWATER AMERICA INC.
		
	By:	 	 /s/ William G. Harvey

	Name:	 	William G. Harvey
	Title:	 	President
	
	BOWATER NUWAY INC.
		
	By:	 	 William G. Harvey

	Name:	 	William G. Harvey
	Title:	 	Vice President

 [Signature Pages Continue] 
  

 [Fourth Amendment – Bowater] 

			
	BOWATER NUWAY MID-STATES INC.
		
	By:	 	 /s/ William A. McCormick

	Name:	 	William A. McCormick
	Title:	 	Assistant Secretary
	
	BOWATER ALABAMA INC.
		
	By:	 	 /s/ William G. Harvey

	Name:	 	William G. Harvey
	Title:	 	Vice President & Treasurer

 [Signature Pages Continue] 
 [Fourth Amendment – Bowater] 

			
	WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent (on behalf of itself and the Consenting Lenders who have executed a Lender Authorization) and as Issuing Lender,
Swingline Lender and a Lender
		
	By:	 	 /s/ James Travagline

	Name:	 	James Travagline
	Title:	 	Vice President

 [Fourth Amendment – Bowater] 

 Exhibit A 
 Form of Lender Authorization 

 LENDER AUTHORIZATION 
 Bowater Incorporated 
 Bowater Canadian Forest Products Inc. 
 Fourth Amendment 
 March
    , 2008 
 Wachovia Bank, National Association 
 NC0680 
 1525 West W.T. Harris Blvd. 
 Charlotte, North Carolina 28262 
 Attention: Syndication Agency Services 
 The Bank of Nova Scotia 
 40 King Street West 
 Scotia Plaza, 62nd Floor 
 Toronto, Ontario M5W 2X6 
 Attention: Corporate
Banking Loan Syndication 
  

	 	Re:	(a) the Fourth Amendment dated as of March 31, 2008 (the “U.S. Agreement”) to that certain Credit Agreement dated as of May 31, 2006 (as amended, the
“U.S. Credit Agreement”) among Bowater Incorporated (the “U.S. Borrower”), the lenders party thereto (the “U.S. Lenders”), and Wachovia Bank, National Association, as administrative agent (the
“U.S. Administrative Agent”) for the U.S. Lenders and (b) the Fourth Amendment dated as of March 31, 2008 (the “Canadian Agreement” and, together with the U.S. Agreement, the “Agreements”)
to that certain Credit Agreement dated as of May 31, 2006 (as amended, the “Canadian Credit Agreement”) among Bowater Canadian Forest Products Inc. (the “Canadian Borrower”), the U.S. Borrower, the lenders
party thereto (the “Canadian Lenders”), and The Bank of Nova Scotia, as administrative agent (the “Canadian Administrative Agent”) for the Canadian Lenders. 

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

 A facsimile, telecopy, pdf or other reproduction of this Lender Authorization may be executed by one or
more parties hereto, and an executed copy of this Lender Authorization may be delivered by one or more parties hereto by facsimile or similar instantaneous electronic transmission device pursuant to which the signature of or on behalf of such party
can be seen, and such execution and delivery shall be considered valid, binding and effective for all purposes. 
  

			
	  

	[Insert name of applicable financial institution]
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 EXECUTION COPY 
 Exhibit B 
  

			
	Published CUSIP Number:	 	10218JAA3
	Revolving Credit CUSIP Number:	 	10218JAB1

  
  
  
 CREDIT AGREEMENT 
 dated as of May 31, 2006 
 (as amended by
that certain First Amendment dated as of July 20, 2007, 
 that certain Second Amendment dated as of October 31, 2007, 
 that certain Third Amendment and Waiver dated as of February 25, 2008 and 
 that certain Fourth Amendment dated as of March 31, 2008) 
 by and among 
 BOWATER INCORPORATED, 
 as Borrower,

 the Lenders referred to herein, 
 WACHOVIA BANK, NATIONAL ASSOCIATION, 
 as Administrative Agent, 
 Swingline Lender and Issuing Lender, 
 JPMORGAN CHASE BANK, N.A. and UBS
SECURITIES LLC, 
 each as a Syndication Agent, 
 and 
 WELLS FARGO FOOTHILL, LLC 
 as Documentation Agent 
 WACHOVIA CAPITAL MARKETS, LLC, 
 as Sole Book Manager 
 WACHOVIA CAPITAL
MARKETS, LLC, 
 as Lead Arranger 
  
  
  

 Table of Contents 
  

					
	 	 	 	  	Page
	ARTICLE I DEFINITIONS	  	1
			
	        SECTION 1.1	 	Definitions	  	1
	        SECTION 1.2	 	Other Definitions and Provisions	  	42
	        SECTION 1.3	 	Accounting Terms	  	43
	        SECTION 1.4	 	UCC Terms	  	43
	        SECTION 1.5	 	Rounding	  	43
	        SECTION 1.6	 	References to Agreement and Laws	  	43
	        SECTION 1.7	 	Times of Day	  	44
	        SECTION 1.8	 	Letter of Credit Amounts	  	44
	        SECTION 1.9	 	Amount of Obligations	  	44
		
	ARTICLE II REVOLVING CREDIT FACILITY	  	44
			
	        SECTION 2.1	 	Revolving Credit Loans	  	44
	        SECTION 2.2	 	Swingline Loans	  	44
	        SECTION 2.3	 	Procedure for Advances of Revolving Credit Loans and Swingline Loans	  	46
	        SECTION 2.4	 	Repayment and Prepayment of Revolving Credit and Swingline Loans	  	47
	        SECTION 2.5	 	Permanent Reduction of the Commitment	  	48
	        SECTION 2.6	 	Termination of Credit Facility	  	48
		
	ARTICLE III LETTER OF CREDIT FACILITY	  	48
			
	        SECTION 3.1	 	L/C Commitment	  	48
	        SECTION 3.2	 	Procedure for Issuance of Letters of Credit	  	49
	        SECTION 3.3	 	Commissions and Other Charges	  	49
	        SECTION 3.4	 	L/C Participations	  	50
	        SECTION 3.5	 	Reimbursement Obligation of the Borrower	  	51
	        SECTION 3.6	 	Obligations Absolute	  	52
	        SECTION 3.7	 	Effect of Letter of Credit Application	  	52
		
	ARTICLE IV GENERAL LOAN PROVISIONS	  	52
			
	        SECTION 4.1	 	Interest	  	52
	        SECTION 4.2	 	Notice and Manner of Conversion or Continuation of Loans	  	54
	        SECTION 4.3	 	Fees	  	54
	        SECTION 4.4	 	Manner of Payment	  	55
	        SECTION 4.5	 	Evidence of Indebtedness	  	55
	        SECTION 4.6	 	Adjustments	  	56
	        SECTION 4.7	 	Nature of Obligations of Lenders Regarding Extensions of Credit; Assumption by the Administrative Agent	  	56
	        SECTION 4.8	 	Changed Circumstances	  	57
	        SECTION 4.9	 	Indemnity	  	58

  

 i 

					
	        SECTION 4.10	 	Increased Costs	  	58
	        SECTION 4.11	 	Taxes	  	60
	        SECTION 4.12	 	Mitigation Obligations; Replacement of Lenders	  	62
	        SECTION 4.13	 	Security	  	63
	        SECTION 4.14	 	Additional Subsidiary Borrowers	  	63
	        SECTION 4.15	 	Nature of Obligations; Bankruptcy Limitations; Agreement for Contribution	  	64
	        SECTION 4.16	 		  	64
		
	ARTICLE V CLOSING; CONDITIONS OF CLOSING AND BORROWING	  	67
			
	        SECTION 5.1	 	Closing	  	67
	        SECTION 5.2	 	Conditions to Closing and Initial Extensions of Credit	  	67
	        SECTION 5.3	 	Conditions to All Extensions of Credit	  	70
	        SECTION 5.4	 	Post-Closing Conditions	  	71
		
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF THE BORROWER	  	72
			
	        SECTION 6.1	 	Representations and Warranties	  	72
	        SECTION 6.2	 	Survival of Representations and Warranties, Etc	  	80
		
	ARTICLE VII FINANCIAL INFORMATION AND NOTICES	  	80
			
	        SECTION 7.1	 	Financial Statements and Projections	  	80
	        SECTION 7.2	 	Officer’s Compliance Certificate	  	83
	        SECTION 7.3	 	Accountants’ Certificate	  	84
	        SECTION 7.4	 	Other Reports	  	84
	        SECTION 7.5	 	Notice of Litigation and Other Matters	  	84
	        SECTION 7.6	 	Accuracy of Information	  	85
		
	ARTICLE VIII AFFIRMATIVE COVENANTS	  	85
			
	        SECTION 8.1	 	Preservation of Corporate Existence and Related Matters	  	86
	        SECTION 8.2	 	Maintenance of Property; Reinvestment	  	86
	        SECTION 8.3	 	Insurance	  	87
	        SECTION 8.4	 	Accounting Methods and Financial Records	  	87
	        SECTION 8.5	 	Payment of Taxes	  	88
	        SECTION 8.6	 	Compliance With Laws and Approvals	  	88
	        SECTION 8.7	 	Environmental Laws	  	88
	        SECTION 8.8	 	Compliance with ERISA	  	88
	        SECTION 8.9	 	Visits and Inspections	  	89
	        SECTION 8.10	 	Additional Subsidiaries	  	89
	        SECTION 8.11	 	Use of Proceeds	  	95
	        SECTION 8.12	 	Further Assurances	  	95
		
	ARTICLE IX FINANCIAL COVENANTS	  	95
			
	        SECTION 9.1	 	Consolidated Senior Secured Leverage Ratio	  	95
	        SECTION 9.2	 	Interest Coverage Ratio	  	95

  

 ii 

					
	ARTICLE X NEGATIVE COVENANTS	  	96
			
	        SECTION 10.1	 	Limitations on Indebtedness	  	96
	        SECTION 10.2	 	Limitations on Liens	  	100
	        SECTION 10.3	 	Limitations on Loans, Advances, Investments and Acquisitions	  	101
	        SECTION 10.4	 	Limitations on Mergers and Liquidation	  	102
	        SECTION 10.5	 	Limitations on Asset Dispositions	  	103
	        SECTION 10.6	 	Limitations on Dividends and Distributions	  	104
	        SECTION 10.7	 	Limitations on Exchange and Issuance of Capital Stock	  	105
	        SECTION 10.8	 	Transactions with Affiliates	  	106
	        SECTION 10.9	 	Certain Accounting Changes; Organizational Documents	  	106
	        SECTION 10.10	 	Amendments; Payments and Prepayments of Indebtedness	  	106
	        SECTION 10.11	 	Restrictive Agreements	  	108
	        SECTION 10.12	 	Nature of Business	  	108
	        SECTION 10.13	 	Borrower Jurisdiction	  	109
	        SECTION 10.14	 	Impairment of Security Interests	  	109
		
	ARTICLE XI DEFAULT AND REMEDIES	  	109
			
	        SECTION 11.1	 	Events of Default	  	109
	        SECTION 11.2	 	Remedies	  	114
	        SECTION 11.3	 	Rights and Remedies Cumulative; Non-Waiver; etc	  	115
	        SECTION 11.4	 	Crediting of Payments and Proceeds	  	115
	        SECTION 11.5	 	Administrative Agent May File Proofs of Claim	  	116
		
	ARTICLE XII THE ADMINISTRATIVE AGENT	  	117
			
	        SECTION 12.1	 	Appointment and Authority	  	117
	        SECTION 12.2	 	Rights as a Lender	  	117
	        SECTION 12.3	 	Exculpatory Provisions	  	117
	        SECTION 12.4	 	Reliance by the Administrative Agent	  	118
	        SECTION 12.5	 	Delegation of Duties	  	119
	        SECTION 12.6	 	Resignation of Administrative Agent	  	119
	        SECTION 12.7	 	Non-Reliance on Administrative Agent and Other Lenders	  	120
	        SECTION 12.8	 	No Other Duties, etc	  	120
	        SECTION 12.9	 	Collateral and Guaranty Matters	  	120
		
	ARTICLE XIII MISCELLANEOUS	  	121
			
	        SECTION 13.1	 	Notices	  	121
	        SECTION 13.2	 	Amendments, Waivers and Consents	  	122
	        SECTION 13.3	 	Expenses; Indemnity	  	124
	        SECTION 13.4	 	Right of Set-off	  	126
	        SECTION 13.5	 	Governing Law	  	126
	        SECTION 13.6	 	Waiver of Jury Trial	  	127
	        SECTION 13.7	 	Reversal of Payments	  	127
	        SECTION 13.8	 	Injunctive Relief; Punitive Damages	  	127
	        SECTION 13.9	 	Accounting Matters	  	128
	        SECTION 13.10	 	Successors and Assigns; Participations	  	128

  

 iii 

					
	        SECTION 13.11	 	Confidentiality	  	131
	        SECTION 13.12	 	Performance of Duties	  	131
	        SECTION 13.13	 	All Powers Coupled with Interest	  	131
	        SECTION 13.14	 	Survival of Indemnities	  	132
	        SECTION 13.15	 	Titles and Captions	  	132
	        SECTION 13.16	 	Severability of Provisions	  	132
	        SECTION 13.17	 	Counterparts	  	132
	        SECTION 13.18	 	Integration	  	132
	        SECTION 13.19	 	Term of Agreement	  	132
	        SECTION 13.20	 	Advice of Counsel, No Strict Construction	  	132
	        SECTION 13.21	 	USA Patriot Act	  	133
	        SECTION 13.22	 	Inconsistencies with Other Documents; Independent Effect of Covenants	  	133
	        SECTION 13.23	 	No Novation	  	133

  

 iv 

					
	EXHIBITS	  		  	
			
	 Exhibit A-1
	  	—	  	Form of Revolving Credit Note
	 Exhibit A-2
	  	—	  	Form of Swingline Note
	 Exhibit B
	  	—	  	Form of Notice of Borrowing
	 Exhibit C
	  	—	  	Form of Notice of Account Designation
	 Exhibit D
	  	—	  	Form of Notice of Prepayment
	 Exhibit E
	  	—	  	Form of Notice of Conversion/Continuation
	 Exhibit F
	  	—	  	Form of Officer’s Compliance Certificate
	 Exhibit G
	  	—	  	Form of Assignment and Assumption
	 Exhibit H
	  	—	  	Form of Subsidiary Guaranty Agreement
	 Exhibit I
	  	—	  	Form of Collateral Agreement
	 Exhibit J
	  	—	  	Form of Intercompany Subordination Agreement
	 Exhibit K
	  	—	  	Form of Borrowing Base Certificate

  

					
	SCHEDULES	  		  	
			
	Schedule 1.1(a)	  	—	  	Existing Letters of Credit
	Schedule 1.1(b)	  	—	  	Specified Existing Notes
	Schedule 1.1(c)	  	—	  	Description of New Borrower Real Property
	Schedule 6.1(b)	  	—	  	Subsidiaries and Capitalization
	Schedule 6.1(i-1)	  	—	  	ERISA Plans
	Schedule 6.1(i-2)	  	—	  	Canadian Plans
	Schedule 6.1(l)	  	—	  	Significant Indebtedness
	Schedule 6.1(n)	  	—	  	Burdensome Provisions
	Schedule 6.1(t)	  	—	  	Litigation
	Schedule 10.1	  	—	  	Permitted Indebtedness
	Schedule 10.2	  	—	  	Existing Liens
	Schedule 10.3	  	—	  	Existing Loans, Advances and Investments
	Schedule 10.8	  	—	  	Transactions with Affiliates

  

 v 

 CREDIT AGREEMENT, dated as of May 31, 2006, by and among BOWATER INCORPORATED, a Delaware
corporation (the “Original Borrower”), together with each additional borrower that becomes a party hereto pursuant to the terms hereof, as Borrower, the lenders who are party to this Agreement or who may become a party to this
Agreement pursuant to Section 13.10 hereof, as Lenders, and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent for the Lenders. 
 STATEMENT OF PURPOSE 
 The Borrower has requested, and the Lenders have agreed,
to extend certain credit facilities to the Borrower on the terms and conditions of this Agreement. 
 NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, such parties hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1 Definitions. The following terms when used in this Agreement shall have the meanings assigned to them below: 
 “Abitibi” means Abitibi-Consolidated Inc. 
 “Abitibi Entities” means, collectively, Abitibi and
its Subsidiaries. 
 “Accounts” has the meaning specified in Section 1.1 of the Collateral Agreement.

 “Administrative Agent” means Wachovia, in its capacity as Administrative Agent hereunder, and any successor thereto
appointed pursuant to Section 12.6. 
 “Administrative Agent’s Office” means the office of the
Administrative Agent specified in or determined in accordance with the provisions of Section 13.1(c). 
 “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
 “Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such first Person or any of its Subsidiaries. As used in this
definition, the term “control” means (a) the power to vote ten percent (10%) or more of the securities or other equity interests of a Person having ordinary voting power (excluding, however, a Person or group whose ownership in
another Person is permitted to be reported on Schedule 13G pursuant to Rule 13d-1(b) under the Securities Exchange Act of 1934, as amended) or (b) the possession, directly or indirectly, of any other power to direct or cause the direction of
the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. Notwithstanding the foregoing, (i) no individual shall be an Affiliate of the Borrower or any of its Subsidiaries solely and
exclusively by reason of his or her being a director, officer or 

  

 1 

 
employee of the Borrower or any of its Subsidiaries, (ii) none of the Subsidiaries of the Borrower shall be Affiliates of the Borrower or any of its
Subsidiaries and (iii) no Borrower shall be an Affiliate of any other Borrower; provided that the Abitibi Entities shall be Affiliates of the Borrower and its Subsidiaries for the purposes of this Agreement and the other Loan Documents
and the Canadian Credit Agreement and the “Loan Documents” (as defined in the Canadian Credit Agreement). 
 “Aggregate
Credit Exposure” means the sum of (a) the aggregate amount of outstanding Loans and (b) the aggregate amount of outstanding Canadian Loans. 
 “Agreement” means this Credit Agreement, as amended by (a) the First Amendment dated as of July 20, 2007 by and among the Original Borrower, the Subsidiary Guarantors and the Administrative
Agent (on behalf of itself and the Lenders party thereto), (b) the Second Amendment dated as of October 31, 2007 by and among the Original Borrower, the Subsidiary Guarantors and the Administrative Agent (on behalf of itself and the
Lenders party thereto), (c) the Third Amendment and (d) the Fourth Amendment and as further amended, restated, supplemented or otherwise modified from time to time. 
 “Applicable Insolvency Laws” means all Applicable Laws governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of
debtors, dissolution, insolvency, fraudulent transfers or conveyances or other similar laws (including, without limitation, 11 U.S.C. Sections 544, 547, 548 and 550 and other “avoidance” provisions of Title 11 of the United States Code, as
amended or supplemented). 
 “Applicable Law” means all applicable provisions of constitutions, laws, statutes, ordinances,
rules, treaties, regulations, permits, licenses, approvals, legally binding policies, interpretations and orders of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators. 
 “Applicable Margin” means the corresponding percentages per annum as set forth below based on the Average Utilization: 
 (a) as of any date of determination prior to the Conversion Date: 
  

									
	 Pricing
Level
	  	 Average Utilization Percentage
	  	LIBOR +	 	 	Base Rate +	 
	I	  	Greater than 75%	  	3.25	%	 	2.00	%
	II	  	Greater than 35%, but less than or equal to 75%	  	3.00	%	 	1.75	%
	III	  	Less than or equal to 35%	  	2.75	%	 	1.50	%

  

 2 

 (b) as of any date of determination on or after the Conversion Date: 
  

									
	 Pricing
Level
	  	 Average Utilization Percentage
	  	LIBOR +	 	 	Base Rate +	 
	I	  	Greater than 75%	  	3.75	%	 	2.50	%
	II	  	Greater than 35%, but less than or equal to 75%	  	3.50	%	 	2.25	%
	III	  	Less than or equal to 35%	  	3.25	%	 	2.00	%

 The Applicable Margin shall be determined by the Administrative Agent and adjusted quarterly on each
Calculation Date; provided that the Applicable Margin shall be based on Pricing Level I until the first Calculation Date occurring after the Fourth Amendment Effective Date and, thereafter the Pricing Level shall be determined by reference to
the Average Utilization Percentage as of the last day of the most recently ended fiscal quarter of the Borrower preceding the applicable Calculation Date. The Applicable Margin shall be effective from one Calculation Date until the next Calculation
Date. Any adjustment in the Applicable Margin shall be applicable to all Extensions of Credit then existing or subsequently made or issued. 
 “Approved Fund” means any Person (other than a natural Person), including, without limitation, any special purpose entity, that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its business; provided, that such Approved Fund must be administered, managed or underwritten by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
Affiliate of an entity that administers or manages a Lender. 
 “April 2008 Convertible Indebtedness” means that certain
Indebtedness incurred by the Parent in accordance with the terms of Section 11.1(o)(viii) on or prior to April 15, 2008, which is convertible into Capital Stock of the Parent. 
 “Asset Coverage Amount” means, as of any date of determination, an amount equal to seventy-five percent (75%) of the net book value
of the Coverage Assets as set forth on the Consolidated balance sheet of the Borrower and its Consolidated Subsidiaries most recently delivered pursuant to Sections 5.2 or 7.1 hereof. 
 “Asset Disposition” means the disposition of any or all of the assets (including, without limitation, any Capital Stock owned thereby)
of the Borrower or any of its Subsidiaries whether by sale, lease, transfer or otherwise. The term “Asset Disposition” shall not include any Insurance and Condemnation Event. 
 “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of
any party whose consent is required by Section 13.10), and accepted by the Administrative Agent, in substantially the form of Exhibit G or any other form approved by the Administrative Agent. 
 “Attributable Indebtedness” means, on any date, (a) in respect of any Capital Lease of any Person, the capitalized amount thereof
that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease, 

  

 3 

 
the capitalized amount or principal amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP if such lease were accounted for as a Capital Lease. 
 “Average
Utilization” means, for any calendar quarter, the average daily principal balance of Loans outstanding during such calendar quarter. 
 “Base Rate” means, at any time, the higher of (a) the Prime Rate and (b) the Federal Funds Rate plus 1/2 of 1%; each change in the Base Rate shall take effect simultaneously with the corresponding change or
changes in the Prime Rate or the Federal Funds Rate. 
 “Base Rate Loan” means any Loan bearing interest at a rate based
upon the Base Rate as provided in Section 4.1(a). 
 “BCFC Notes” means the 7.95% Notes due 2011 issued pursuant
to the Indenture dated as of October 31, 2001 among Bowater Canada Finance Corporation, as Issuer, the Original Borrower, as Guarantor, and The Bank of New York, as Trustee. 
 “Borrower” means (a) prior to the receipt by the Administrative Agent of all documentation required to be delivered pursuant to
Sections 8.10(e)(i), (ii)(A) and (ii)(B) of this Agreement and Section 8.10(e)(i) of the Canadian Credit Agreement, the Original Borrower and (b) upon the receipt by the Administrative Agent of all documentation
required to be delivered pursuant to Sections 8.10(e)(i), (ii)(A) and (ii)(B) of this Agreement and Section 8.10(e)(i) of the Canadian Credit Agreement, collectively, the Original Borrower and New Borrowers.

 “Borrowing Base” means, at any time, the amount equal to: 
 (a) the sum of: 
 (i) up to
eighty-five percent (85%) of Eligible Domestic Accounts; plus  
 (ii) up to the Credit Insurance Policy limit
with respect to Eligible Foreign Accounts, reduced dollar for dollar by the aggregate amount of premium payments payable with respect to such Credit Insurance Policy; provided that such amount shall in no event whatsoever exceed one hundred
percent (100%) of the Eligible Foreign Accounts; 
 plus 
 (b) the sum of: 
 (i) with
respect to Eligible Inventory consisting of raw materials and work in process, the lesser of: (A) up to eighty-five percent (85%) of the Net Recovery Percentage of such Eligible Inventory; and (B) up to sixty percent (60%) of the
Value of such Eligible Inventory; plus  
 (ii) with respect to Eligible Inventory consisting of finished goods, the
lesser of: (A) up to eighty-five percent (85%) of the Net Recovery Percentage of such Eligible Inventory and (B) up to seventy-five percent (75%) of the Value of such Eligible Inventory; 
  

 4 

 plus 
 (c) the lesser of: 
 (i) up to fifty percent (50%) of the sum of: 
 (A) the Net Orderly Liquidation Value of Eligible Machinery and Equipment; 
 plus 
 (B) the fair market value of Eligible Real Property (based on the most recent appraisal of Eligible Real Property delivered to the Administrative Agent pursuant to Section 7.1(h)); and 
 (ii) $40,000,000 
 minus 
 (d) any Reserves. 
 Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, the amount included in the Borrowing Base pursuant to clause (c) above shall be deemed to be $0 until such time as
the Original Borrower shall have delivered to the Administrative Agent an appraisal pursuant to and in accordance with the terms and conditions of Section 7.1(h)(vi)(A). 
 “Borrowing Base Certificate” means a certificate substantially in the form of Exhibit K. 
 “Borrowing Limit” means, at any time, the least of: 
 (a) the aggregate principal amount of the Commitments at such time less, except with respect to Sections 2.4(b) and 5.2(e)(iii), 
 (i) in the case of any request for Revolving Credit Loans, the sum of all outstanding Swingline Loans and L/C Obligations; 
 (ii) in the case of any request for Swingline Loans, the sum of all outstanding Revolving Credit Loans and L/C Obligations; or 

(iii) in the case of any request for issuance of a Letter of Credit, the sum of all outstanding Loans; 
 (b) the amount which, when aggregated with the aggregate amount of all other Consolidated Total Senior Secured Indebtedness, does not exceed the Asset
Coverage Amount; and 
 (c) at any time on or after the Conversion Date, the Borrowing Base at such time less, except with respect to
Section 2.4(b), 
 (i) in the case of any request for Revolving Credit Loans, the sum of all outstanding Swingline
Loans and L/C Obligations; 
  

 5 

 (ii) in the case of any request for Swingline Loans, the sum of all outstanding Revolving
Credit Loans and L/C Obligations; or 
 (iii) in the case of any request for issuance of a Letter of Credit, the sum of all
outstanding Loans. 
 “Bowater-Calhoun Arrangement” means that certain intercompany loan arrangement pursuant to which:

 (a) the Original Borrower loaned $33,294,000 of proceeds of the McMinn County pollution control bonds to Calhoun Newsprint Company as
evidenced by an intercompany note payable to the Original Borrower; and 
 (b) Calhoun Newsprint Company loaned such proceeds back to the
Original Borrower as evidenced by an intercompany note payable to Calhoun Newsprint Company and secured by the Original Borrower’s intercompany note receivable referred to in clause (a). 
 “Business Day” means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday
or legal holiday on which banks in Charlotte, North Carolina, New York, New York and Toronto, Ontario, are open for the conduct of their commercial banking business, and (b) with respect to all notices and determinations in connection with, and
payments of principal and interest on, any LIBOR Rate Loan, any day that is a Business Day described in clause (a) and that is also a day for trading by and between banks in Dollar deposits in the London interbank market. 
 “Calculation Date” means (a) each date that is ten (10) Business Days after the end of each fiscal quarter of the Original
Borrower and (b) the Conversion Date. 
 “Canadian Administrative Agent” means The Bank of Nova Scotia in its capacity
as the administrative agent under the Canadian Credit Agreement. 
 “Canadian Borrower” means Bowater Canadian Forest
Products Inc., as borrower under the Canadian Credit Facility. 
 “Canadian Borrowing Limit” means the “Borrowing
Limit” as defined in the Canadian Credit Agreement. 
 “Canadian Collateral” means the “Collateral” as
defined in the Canadian Credit Agreement. 
 “Canadian Credit Agreement” means that certain credit agreement dated as of
even date herewith by and among the Canadian Borrower, as borrower, the Original Borrower, as guarantor, the lenders party thereto, as lenders, and The Bank of Nova Scotia, as administrative agent. 
  

 6 

 “Canadian Credit Facility” means that certain revolving credit facility established
pursuant to the Canadian Credit Agreement. 
 “Canadian Credit Party” means the Canadian Borrower and each Canadian
Guarantor. 
 “Canadian Dollar” or “C$” means, at any time of determination, the lawful currency of Canada.

 “Canadian Employee Benefit Plan” means (a) any employee benefit plan that is maintained for the benefit of employees
or former employees of the Canadian Borrower or any of the Canadian Subsidiaries registered in accordance with the ITA or other Applicable Law which the Borrower or any of its Subsidiaries sponsors, maintains, or to which it makes, is making, or is
obligated to make, contributions or (b) any Canadian Pension Plan or Canadian Multiemployer Plan that has at any time within the preceding six (6) years been maintained for the employees of the Borrower or any of its Subsidiaries, and
shall not include any Employee Benefit Plan. 
 “Canadian Extensions of Credit” means the “Extensions of Credit”
as defined in the Canadian Credit Agreement. 
 “Canadian Guarantors” means the “Guarantors” as defined in the
Canadian Credit Agreement. 
 “Canadian Lender” means any “Lender” as defined in the Canadian Credit Agreement.

 “Canadian Loans” means “Loans” as defined in the Canadian Credit Agreement. 
 “Canadian Multiemployer Plan” means a “multi-employer pension plan” as defined by Applicable Laws and registered in accordance
with the ITA or other Applicable Laws and as to which the Borrower or any of its Subsidiaries is making, or is accruing an obligation to make, or has accrued an obligation to make, contributions within the preceding six (6) years, and shall not
include any Multiemployer Plan. 
 “Canadian Obligations” means the “Obligations” as defined in the Canadian
Credit Agreement. 
 “Canadian Pension Plan” means any Canadian Employee Benefit Plan, other than a Canadian Multiemployer
Plan, which is registered in accordance with the ITA or other Applicable Law and which (a) is maintained for the employees of the Borrower or any of its Subsidiaries or (b) has at any time within the preceding six (6) years been
maintained for the employees of the Borrower or any of its Subsidiaries which the Borrower or any of its Subsidiaries sponsors, maintains, or to which it makes, is making or is obligated to make, contributions, and shall not include any Pension
Plan. 
 “Canadian Required Agreement Lenders” means the “Required Agreement Lenders” as defined in the Canadian
Credit Agreement. 
  

 7 

 “Canadian Secured Parties” means the “Secured Parties” as defined in the
Canadian Credit Agreement. 
 “Canadian Subsidiary” means any Subsidiary that is organized under the laws of Canada or any
province or political subdivision thereof. 
 “Capital Asset” means, with respect to the Borrower and its Subsidiaries, any
asset that should, in accordance with GAAP, be classified and accounted for as a capital asset on a Consolidated balance sheet of the Borrower and its Subsidiaries. 
 “Capital Expenditures” means, with respect to the Borrower and its Subsidiaries for any period, the aggregate cost of all Capital Assets acquired by the Borrower and its Subsidiaries during such
period, as determined in accordance with GAAP. 
 “Capital Lease” means any lease of any property by the Borrower or any of
its Subsidiaries, as lessee, that should, in accordance with GAAP, be classified and accounted for as a capital lease on a Consolidated balance sheet of the Borrower and its Subsidiaries. 
 “Capital Stock” means (a) in the case of a corporation, capital stock, (b) in the case of an association or business entity,
any and all shares, interests, participations, rights or other equivalents (however designated) of capital stock, (c) in the case of a partnership, partnership interests (whether general or limited), (d) in the case of a limited liability
company, membership interests and (e) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 
 “Cash Equivalents” means, collectively: 
 (a) marketable obligations issued or unconditionally guaranteed by the United States, Canada or any agency thereof maturing within two hundred seventy (270) days from the date of acquisition thereof; 

(b) commercial paper maturing no more than two hundred seventy (270) days from the date of creation thereof and currently
having the highest rating obtainable from either S&P, Moody’s or DBRS; 
 (c) certificates of deposit, time
deposits and bankers’ acceptances maturing no more than two hundred seventy (270) days from the date of creation thereof issued by commercial banks incorporated under the laws of the United States or Canada, each having combined capital,
surplus and undivided profits of not less than $500,000,000 and having a rating of “A” or better by a nationally recognized rating agency; provided that the aggregate amount invested in such certificates of deposit shall not at any
time exceed $5,000,000 for any one such certificate of deposit and $10,000,000 for any one such bank; 
 (d) repurchase
obligations for underlying securities of the types described in, and satisfying the requirements specified in, clauses (a) and (c) above entered into with any bank satisfying the requirements specified in clause (c) above; 

 

 8 

 (e) demand deposit accounts maintained in the ordinary course of business; and

 (f) (i) money market mutual or similar funds which (A) invest solely in assets of the types described in clauses
(a) through (e) above, without regard to the limitations as to the maturity of such obligations, bankers’ acceptances, time deposits, certificates of deposit, repurchase agreements or commercial paper set forth above, (B) are
rated at least “AAm” or “AAmg” or their equivalent by both S&P and Moody’s, provided that there is no “r-highlighter” affixed to such rating and (C) comply with Rule 2a-7 of the Investment Company Act of
1940, as amended; and 
 (ii) the money market fund called Columbia Cash Reserves, so long as Columbia Cash Reserves continues
to buy only “first tier” securities as defined by Rule 2a-7 of the Investment Company Act of 1940, as amended. 
 “Change
in Control” means an event or series of events by which (a) except in the case of the conversion to Capital Stock of the April 2008 Convertible Indebtedness (as to which this clause (a) shall not apply), any person or group of
persons (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) shall obtain ownership or control in one or more series of transactions of more than thirty-five percent (35%) of the Capital Stock or
thirty-five percent (35%) of the voting power of the Parent entitled to vote in the election of members of the board of directors of the Parent, (b) after giving effect to the conversion to Capital Stock of the April 2008 Convertible
Indebtedness and solely in connection therewith, any person or group of persons (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended) shall obtain ownership or control in one or more series of transactions of
fifty percent (50%) or more of the Capital Stock or fifty percent (50%) or more of the voting power of the Parent entitled to vote in the election of members of the board of directors of the Parent, (c) during any period of
twenty-five (25) consecutive calendar months, a majority of the members of the board of directors of the Parent cease to be composed of Continuing Directors, (d) there shall have occurred under any indenture or other instrument evidencing
any Indebtedness of the Borrower or any of its Subsidiaries in excess of $25,000,000 any “change in control” or similar provision (as set forth in the indenture, agreement or other evidence of such Indebtedness) obligating the Borrower or
any of its Subsidiaries to repurchase, redeem or repay all or any part of such Indebtedness or Capital Stock provided for therein (provided that if such obligation is contingent on any other event or circumstance, then such “change in
control” shall not constitute a Change in Control hereunder unless such other event or circumstance also has occurred or exists), (e) the Parent shall cease to own one hundred percent (100%) of the Capital Stock of the Original
Borrower or (f) after the receipt of the documentation required pursuant to Section 8.10(e)(ii)(A) and (ii)(B) of this Agreement and Section 8.10(e)(i) of the Canadian Credit Agreement, the Parent shall cease to
own one hundred percent (100%) of the Capital Stock of any New Borrower. 
 For the purposes hereof, “Continuing Directors”
means, during any period of twenty-five (25) consecutive calendar months, individuals (i) who were members of the board of directors on the first day of such period, (ii) whose election or nomination to the board of directors was
approved by individuals who comprised a majority of the board of directors on the first day of such period or (iii) whose election or nomination to the board of directors was approved by (A)

  

 9 

 
individuals who were members of the board of directors on the first day of such period or (B) individuals whose election or nomination to the board of
directors was approved by a majority of the board of directors on the first day of such period; provided that in each case such individuals referenced in clause (A) and clause (B) constituted a majority of the board of directors at
the time of such election or nomination. 
 “Change in Law” means the occurrence, after the date of this Agreement, of any
of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation or application thereof by any Governmental Authority
or (c) the making or issuance of any request, guideline or directive (whether or not having the force of law) by any Governmental Authority. 
 “Closing Date” means the date of this Agreement or such later Business Day upon which each condition described in Section 5.2 shall be satisfied or waived in all respects in a manner acceptable to the
Administrative Agent, in its sole discretion. 
 “Code” means the Internal Revenue Code of 1986, and the rules and
regulations thereunder, each as amended or modified from time to time. 
 “Collateral” means the collateral security for the
Obligations and/or the Canadian Obligations (as the case may be) pledged or granted pursuant to the Security Documents. 
 “Collateral Agreement” means the collateral agreement of even date executed by the Credit Parties in favor of the Administrative Agent, for the benefit of itself and the other Secured Parties, substantially in the form of
Exhibit I, as amended, restated, supplemented or otherwise modified from time to time. 
 “Combination” means
the combination of the Original Borrower with Abitibi-Consolidated Inc., with the Parent as a common holding company, pursuant to the terms of the Combination Agreement. 
 “Combination Agreement” means that certain Combination Agreement and Agreement and Plan of Merger dated as of January 29, 2007 among the Parent, Abitibi-Consolidated Inc., the Original Borrower,
Alpha-Bravo Merger Sub Inc., a Delaware corporation, and Bowater Canada, Inc., as the same may be amended, modified or supplemented from time to time. 
 “Commitment” means (a) as to any Lender, the obligation of such Lender to make Extensions of Credit to the Borrower hereunder in an aggregate principal amount at any time outstanding not to
exceed the amount set forth opposite such Lender’s name on the Register, as such amount may be modified at any time or from time to time pursuant to the terms hereof and (b) as to all Lenders, the aggregate commitment of all Lenders to
make Extensions of Credit, as such amount may be modified at any time or from time to time pursuant to the terms hereof. The Commitment of all the Lenders on the Closing Date shall be $415,000,000. 
 “Commitment Percentage” means, as to any Lender at any time, the ratio of (a) the amount of the Commitment of such Lender to
(b) the Commitments of all the Lenders. 
  

 10 

 “Consolidated” means, when used with reference to financial statements or financial
statement items of any Person, such statements or items on a consolidated basis in accordance with applicable principles of consolidation under GAAP; provided, however, that upon receipt by the Administrative Agent of all documentation
required to be delivered pursuant to Sections 8.10(e)(i), (ii)(A) and (ii)(B) of this Agreement and Section 8.10(e)(i) of the Canadian Credit Agreement, when used with respect to the Borrower,
“Consolidated” shall include the Original Borrower and its Subsidiaries (other than the Abitibi Entities) combined with each New Borrower and its Subsidiaries (if any). 
 “Consolidated Adjusted EBITDA” means, for any period, the sum for the Borrower and its Consolidated Subsidiaries (determined on a
Consolidated basis, without duplication, in accordance with GAAP) of the following: (a) Consolidated EBITDA for such period plus (b) any net gain on any Asset Disposition during such period minus (c) any net loss on any
Asset Disposition during such period; provided that, for purposes of this Agreement, Consolidated Adjusted EBITDA shall be adjusted on a pro forma basis, in a manner consistent with Regulation S-X of the SEC or otherwise
reasonably acceptable to the Administrative Agent, to include or exclude, as applicable, as of the first day of any applicable period, (A) any Permitted Acquisition closed during such period or (B) any permitted Asset Disposition closed
during such period (other than Asset Dispositions permitted pursuant to Section 10.5(a)-(h)) of assets having an aggregate fair market value (at the time of the closing of such Asset Disposition) in excess of $50,000,000. 
 “Consolidated EBITDA” means, for any period, the sum for the Borrower and its Consolidated Subsidiaries (determined on a Consolidated
basis, without duplication, in accordance with GAAP) of the following: 
 (a) Consolidated Net Income for such period,

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

 11 

 (vi) any cost savings and synergies associated with a Permitted Acquisition not to exceed
five percent (5%) of the Consolidated EBITDA of the Borrower and its Subsidiaries (as calculated without giving effect to this clause (vi) or clause (v) above); and 
 (vii) any net loss on any Asset Disposition during such period, 
 less  
 (c) the sum of the following to the extent included in determining Consolidated Net Income for such period: 
 (i)
the aggregate amount of interest income for such period; 
 (ii) any extraordinary gains during such period; 
 (iii) any unusual or non-recurring gains during such period; and 
 (iv) any net gain on any Asset Disposition during such period; 
 provided that, for purposes of this Agreement, Consolidated EBITDA shall be adjusted on a pro forma basis, in a manner consistent with Regulation S-X of the SEC or otherwise reasonably acceptable to the
Administrative Agent and the Canadian Administrative Agent, to include or exclude, as applicable, as of the first day of any applicable period, (A) any Permitted Acquisition closed during such period or (B) any permitted Asset Disposition
closed during such period (other than Asset Dispositions permitted pursuant to Section 10.5(a)-(h)) of assets having an aggregate fair market value (at the time of the closing of such Asset Disposition) in excess of $50,000,000.

 “Consolidated Interest Expense” means, with respect to the Borrower and its Consolidated Subsidiaries for any
period, (a) the gross interest expense (including, without limitation, interest expense attributable to Capital Leases and plus the net amount payable (or minus the net amount receivable) under any Interest Rate Contracts of the
Borrower and its Consolidated Subsidiaries), plus (b) the aggregate amount of all cash distributions or dividends paid by the Borrower and its Consolidated Subsidiaries to the Parent pursuant to, and in accordance with,
Section 10.6(j), all determined for such period on a Consolidated basis without duplication, in accordance with GAAP. 
 “Consolidated Net Income” means, with respect to the Borrower and its Consolidated Subsidiaries, for any period of determination, the net income (or loss) of the Borrower and its Consolidated Subsidiaries for such period,
determined on a Consolidated basis in accordance with GAAP. 
 “Consolidated Senior Secured Leverage Ratio” means, as of any
date of determination, the ratio of (a) Consolidated Total Senior Secured Indebtedness on such date to (b) the sum, without duplication, of (i) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on
or immediately prior to such date plus (ii) the amount of Specified Non-Recurring Charges taken during the period of four (4) consecutive fiscal quarters ending on or immediately prior to such date. 
  

 12 

 “Consolidated Subsidiary” means, for any Person, each Subsidiary of such Person (whether
now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of such Person in accordance with GAAP. 
 “Consolidated Total Indebtedness” means, as of any date of determination, without duplication, all Indebtedness (excluding clause
(h) of the definition thereof) of the Borrower and its Consolidated Subsidiaries. 
 “Consolidated Total Leverage
Ratio” means, as of any date of determination, the ratio of (a) Consolidated Total Indebtedness on such date to (b) Consolidated EBITDA for the period of four (4) consecutive fiscal quarters ending on or immediately prior to
such date. 
 “Consolidated Total Senior Secured Indebtedness” means, 
 (a) for purposes of determining the Consolidated Senior Secured Leverage Ratio, as of any date of determination with respect to the
Borrower and its Consolidated Subsidiaries on a Consolidated basis, without duplication, the sum of (i) all outstanding Extensions of Credit (including, without limitation, each outstanding Letter of Credit and each outstanding Swingline Loan)
under the Credit Facility plus (ii) all outstanding Canadian Extensions of Credit (including, without limitation, each outstanding letter of credit and each outstanding swingline loan) plus (iii) all other outstanding
Indebtedness of the Borrower and its Consolidated Subsidiaries which is secured by any assets of the Borrower and its Consolidated Subsidiaries other than any Hedging Agreement; and 
 (b) for all other purposes, as of any date of determination with respect to the Borrower and its Consolidated Subsidiaries on a
Consolidated basis, without duplication, the sum of (i) all outstanding Extensions of Credit (including, without limitation, each outstanding Letter of Credit and each outstanding Swingline Loan) under the Credit Facility plus
(ii) all other outstanding Indebtedness (other than any Hedging Agreement) of the Borrower and its Consolidated Subsidiaries which is secured by a Lien on the Coverage Assets. 
 “Conversion Date” means November 15, 2008. 
 “Coverage Assets” means all accounts receivable (excluding any intercompany accounts receivable) and all inventory of the Borrower and its Consolidated Subsidiaries other than accounts receivable and
inventory of the Canadian Borrower or any Consolidated Subsidiary of the Canadian Borrower; provided that for purposes of calculating the Asset Coverage Amount, the net book value of inventory constituting Coverage Assets shall not, at any time,
exceed $220,000,000. 
 “Credit Facility” means, collectively, the Revolving Credit Facility, the Swingline Facility and the
L/C Facility. 
 “Credit Insurance Policy” means a foreign accounts receivable credit insurance policy payable to the
Administrative Agent, for the benefit of the Secured Parties, and issued by an insurer reasonably acceptable to the Administrative Agent and containing terms and provisions (including, without limitation, coverage amounts, limits, deductibles and
exclusions from coverage) acceptable to the Administrative Agent in its sole discretion. 
  

 13 

 “Credit Parties” means, collectively, the Borrower and the Subsidiary Guarantors.

 “DBRS” means Dominion Bond Rating Service Limited and any successor thereto. 
 “Default” means any of the events specified in Section 11.1 which with the passage of time, the giving of notice or any
other condition, would constitute an Event of Default. 
 “Defaulting Lender” means any Lender that (a) has failed to
fund any portion of the Revolving Credit Loans, participations in L/C Obligations or participations in Swingline Loans required to be funded by it hereunder within one (1) Business Day of the date required to be funded by it hereunder,
(b) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one (1) Business Day of the date when due, unless such amount is the subject of a good faith
dispute, or (c) has been deemed insolvent or become the subject of a bankruptcy, receivership or insolvency proceeding. 
 “Disputes” means any dispute, claim or controversy arising out of, connected with or relating to this Agreement or any other Loan Document, between or among parties hereto and to the other Loan Documents. 
 “Document” has the meaning specified in Section 1.1 of the Collateral Agreement. 
 “Dollars” or “$” means, unless otherwise qualified, dollars in lawful currency of the United States. 
 “Domestic Subsidiary” means any Subsidiary organized under the laws of any political subdivision of the United States. 
 “Eligible Accounts” means, at any time, Accounts of the Borrower and its Consolidated Subsidiaries which the Administrative Agent
determines, in the exercise of its reasonable business and credit judgment as a secured asset based lender, are eligible as the basis for the extension of Revolving Credit Loans and Swingline Loans and the issuance of Letters of Credit hereunder.
Without limiting the Administrative Agent’s discretion provided herein, Eligible Accounts shall not include any Account: 
 (a) that does not arise out of actual and bona fide sales of goods or rendering of services in the ordinary course of the Borrower’s or the relevant Subsidiary’s business, which transactions are completed in accordance with the
terms and provisions of any documents related thereto; 
 (b) that would otherwise be an Eligible Domestic Account, but is
payable other than in Dollars, or that is otherwise on terms other than those normal or customary in the Borrower’s or the relevant Subsidiary’s business; 
 (c) that would otherwise be an Eligible Foreign Account, but is payable other than in Dollars, Canadian Dollars, Euros or Pounds Sterling
or that is otherwise on terms other than those normal or customary in the Borrower’s or the relevant Subsidiary’s business; 
  

 14 

 (d) that is owing from an account debtor where the account debtor or any officer or
employee of the account debtor with respect to such Account is an officer, employee, agent or other Affiliate of the Borrower or any Subsidiary; 
 (e) that is unpaid more than ninety (90) days past original invoice date or more than sixty (60) days past the original due date; 
 (f) of any account debtor where fifty percent (50%) or more of the Accounts owing from such account debtor are not deemed Eligible
Accounts; 
 (g) that is owing by an account debtor to the extent the aggregate amount of Accounts owing from such account
debtor and its Affiliates to the Borrower or any of its Subsidiaries exceeds ten percent (10%) of the aggregate Eligible Accounts, but only the amount in excess thereof shall be ineligible; 
 (h) that is owing from any Person that (i) has disputed liability for any Account owing from such Person or (ii) has otherwise
asserted any claim, demand or liability against the Borrower or any of its Subsidiaries, whether by action, suit, counterclaim or otherwise; 
 (i) that is owing from any Person that shall take or be the subject of any action or proceeding of a type described in Section 11.1(i) or (j); 
 (j) that is owing from any account debtor not deemed creditworthy at all time by the Administrative Agent in good faith; 
 (k) with respect to which any check or other instrument of payment has been returned uncollected for any reason; 
 (l) which is evidenced by a promissory note, chattel paper or instrument; 
 (m) which is owed by an account debtor located in any jurisdiction which requires filing of a “Notice of Business Activities
Report” or other similar report in order to permit the Borrower or its applicable Subsidiary to seek judicial enforcement in such jurisdiction of payment of such Account, unless the Borrower or its applicable Subsidiary has filed such report or
qualified to do business in such jurisdiction; 
 (n) (i) owing from any Person that is also a supplier to or creditor of
the Borrower or any of its Subsidiaries or (ii) representing any manufacturer’s or supplier’s credits, discounts, incentive plans or similar arrangements entitling the Borrower or any of its Subsidiaries to discounts on future
purchase therefrom; 
 (o) that is owing by an account debtor whose chief executive office with respect to such Account is
located outside the United States, other than Eligible Foreign Accounts; 
  

 15 

 (p) which (i) is not evidenced by an invoice or other documentation satisfactory to
the Administrative Agent which has been sent to the account debtor, (ii) is contingent upon the Borrower’s or its Subsidiary’s completion of any further performance, (iii) represents a progress billing, or (iv) arises out of
sales on a bill-and-hold, guaranteed sale, sale-or-return, sale on approval, consignment, cash on delivery basis or subject to any right of return, repurchase, setoff or charge back; 
 (q) owing from an account debtor that is an agency, department or instrumentality of the United States or any state thereof unless the
Borrower or its relevant Subsidiary shall have satisfied the requirements of the Assignment of Claims Act of 1940, and any similar state legislation and the Administrative Agent is satisfied as to the absence of setoffs, counterclaims and other
defenses on the part of such account debtor; 
 (r) with respect to which any representation and warranty set forth in any
Loan Document applicable to Accounts is not true and correct; 
 (s) in respect of which the Collateral Agreement, after
giving effect to the related filings of financing statements that have then been made, if any, does not or has ceased to create a valid and perfected first priority lien or security interest in favor of the Administrative Agent, on behalf of the
Secured Parties, securing the Obligations or which is subject to any Lien except those permitted under this Agreement which does not have priority over the Liens of the Administrative Agent hereunder; 
 (t) which is owing to a non-Wholly Owned Subsidiary; 
 (u) that is, in accordance with GAAP, classified as a contra-account which offset other assets on the balance sheet of the Borrower or its
Subsidiaries; or 
 (v) which the Administrative Agent otherwise determines, in the exercise of its reasonable business and
credit judgment as a secured asset based lender, is unacceptable for any reason whatsoever. 
 “Eligible Assignee” means
(a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund, and (d) any other Person (other than a natural person) approved by (i) the Administrative Agent, (ii) the Swingline Lender, (iii) each Issuing
Lender and (iv) unless a Default or Event of Default has occurred and is continuing, the Original Borrower (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible
Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or Subsidiaries. 
 “Eligible Domestic
Accounts” means Eligible Accounts owing by an account debtor whose chief executive office with respect to such Accounts is located in the United States of America. 
 “Eligible Foreign Accounts” means Eligible Accounts owing by an account debtor whose chief executive office with respect to such
Accounts is located outside the United States and (a) the account debtor has delivered to the Borrower an irrevocable letter of credit issued or confirmed by a bank reasonably satisfactory to the Administrative Agent and payable only in the

  

 16 

 
United States and in Dollars, sufficient to cover such Account, in form and substance satisfactory to the Administrative Agent and if required by the
Administrative Agent, the original of such letter of credit has been delivered to the Administrative Agent and the issuer thereof, and the Borrower has assigned the proceeds of such letter of credit to the Administrative Agent or named the
Administrative Agent as transferee beneficiary thereunder or (b) such Account is subject to a Credit Insurance Policy. 
 “Eligible Inventory” means, at any time, Inventory of the Borrower and its Consolidated Subsidiaries which the Administrative Agent determines, in the exercise of its reasonable business and credit judgment as a secured
asset based lender, are eligible as the basis for the extension of Revolving Credit Loans and Swingline Loans and the issuance of Letters of Credit hereunder. Without limiting the Administrative Agent’s discretion provided herein, Eligible
Inventory shall not include any Inventory: 
 (a) that is located on leaseholds as to which the lessor has not entered into a
collateral access agreement providing the Administrative Agent with the right to receive notices of default, the right to repossess such Inventory at any time and such other rights as may be requested by the Administrative Agent, unless the
Administrative Agent has established acceptable Reserves against such Inventory in lieu of obtaining a collateral access agreement; 
 (b) that is slow moving, obsolete, unusable, unmerchantable, damaged, defective, unfit for sale, perishable or otherwise unavailable for sale; 
 (c) consisting of promotional, marketing, packaging or shipping materials and supplies, prototypes, displays or display items, bill-and-hold goods, goods held on consignment or goods not of a types held for sale in
the ordinary course of business; 
 (d) that fails to meet all standards imposed by any Governmental Authority having
regulatory authority over such Inventory or its use or sale; 
 (e) that is subject to any licensing, patent, royalty,
trademark, trade name or copyright agreement with any third party unless the Administrative Agent is satisfied that it may sell or otherwise dispose of such Inventory without (i) infringing the rights of such party, (ii) violating any
contract with such party, (iii) incurring any liability with respect to payment of royalties other than royalties incurred pursuant to the sale of such Inventory under the current licensing agreements; 
 (f) that is subject to a Lien of any other Person (unless such Person has entered into an intercreditor agreement, in form and substance
satisfactory to the Administrative Agent which subordinates such Lien to the Liens of the Administrative Agent); 
 (g) that
is located outside the United States; 
 (h) that is not in the possession of or under the sole control of the Borrower or any
of its Subsidiaries (including any Inventory that is owned in part by another Person); 
  

 17 

 (i) with respect to which any representation and warranty set forth in any Loan Document
applicable to Inventory is not true and correct; 
 (j) in respect of which the Collateral Agreement, after giving effect to
the related filings of financing statements that have then been made, if any, does not or has ceased to create a valid and perfected first priority lien or security interest in favor of the Administrative Agent, on behalf of the Secured Parties,
securing the Obligations; 
 (k) that is located in any third party warehouse or is in the possession of a bailee (other than
a third party processor) and is not evidenced by a Document, unless such warehouseman or bailee has delivered to the Administrative Agent a collateral access agreement in form and substance acceptable to the Administrative Agent and such other
documentation as the Administrative Agent may require; 
 (l) which is being processed offsite at a third party location or
outside processor, or is in transit to or from said third party location or outside processor; 
 (m) which is not reflected
in a current perpetual inventory report of the Borrower delivered to the Administrative Agent pursuant to Section 7.1(h); 
 (n) for which reclamation rights have been asserted by the seller; 
 (o) which is owned by
any non-Wholly-Owned Subsidiary; or 
 (p) which the Administrative Agent otherwise determines, in the exercise of its
reasonable business and credit judgment as a secured asset based lender, is unacceptable for any reason whatsoever. 
 “Eligible
Machinery and Equipment” means, at any time, that portion of the New Borrower Fixed Assets (other than the Coosa Pines Mill Real Property, Grenada Mill Real Property or any other real property owned by the New Borrowers) which the
Administrative Agent determines, in the exercise of its reasonable business and credit judgment as a secured asset based lender, is eligible as the basis for the extension of Revolving Credit Loans and Swingline Loans and the issuance of Letters of
Credit hereunder. Without limiting the Administrative Agent’s discretion provided herein, Eligible Machinery and Equipment shall not include any New Borrower Fixed Asset: 
 (a) that is located on leaseholds as to which the lessor has not entered into a collateral access agreement providing the Administrative
Agent with the right to receive notices of default, the right to repossess such New Borrower Fixed Asset at any time and such other rights as may be requested by the Administrative Agent; 
 (b) that fails to meet all standards imposed by any Governmental Authority having regulatory authority over such New Borrower Fixed Asset
or its use or sale; 
 (c) that is subject to a Lien of any other Person (unless such Person has entered into an intercreditor
agreement, in form and substance satisfactory to the Administrative Agent, which subordinates such Lien to the Liens of the Administrative Agent); 
  

 18 

 (d) that is located outside the United States; 
 (e) that is not in the possession of or under the sole control of the Borrower or any of its Subsidiaries (including any New Borrower
Fixed Asset that is owned in part by another Person); 
 (f) with respect to which any representation and warranty set forth
in any Loan Document applicable to property of the type represented by such New Borrower Fixed Assets is not true and correct; 
 (g) in respect of which the New Borrower Mortgages, the New Borrower Security Documents or any other mortgages or security documents entered into in favor of the Administrative Agent after the Fourth Amendment Effective Date, after giving
effect to the related filings of financing statements that have then been made, if any, do not or have ceased to create a valid and perfected first priority lien or security interest in favor of the Administrative Agent, on behalf of the Secured
Parties, securing the Obligations; or 
 (h) which the Administrative Agent otherwise determines, in the exercise of its
reasonable business and credit judgment as a secured asset based lender, is unacceptable for any reason whatsoever. 
 “Eligible Real
Property” means, at any time, that portion of the New Borrower Fixed Assets consisting of the Coosa Pines Mill Real Property, Grenada Mill Real Property or any other real property owned by any New Borrower that is subject to a mortgage in
favor of the Administrative Agent, in each case which the Administrative Agent determines, in the exercise of its reasonable business and credit judgment as a secured asset based lender, is eligible as the basis for the extension of Revolving Credit
Loans and Swingline Loans and the issuance of Letters of Credit hereunder. Without limiting the Administrative Agent’s discretion provided herein, Eligible Real Property shall not include any New Borrower Fixed Asset: 
 (a) that is subject to a Lien of any other Person (unless such Person has entered into an intercreditor agreement, in form and substance
satisfactory to the Administrative Agent, which subordinates such Lien to the Liens of the Administrative Agent); 
 (b) that
is located outside the United States; 
 (c) that is not in the possession of or under the sole control of the Borrower or any
of its Subsidiaries (including any real property that is owned in part by another Person); 
 (d) with respect to which any
representation and warranty set forth in any Loan Document applicable to real property is not true and correct; 
  

 19 

 (e) in respect of which the New Borrower Mortgages or any other mortgages entered into in
favor of the Administrative Agent after the Fourth Amendment Effective Date, after giving effect to the related filings of financing statements that have then been made, if any, do not or have ceased to create a valid and perfected first priority
lien or security interest in favor of the Administrative Agent, on behalf of the Secured Parties, securing the Obligations; 
 (f) which is not reflected in a current appraisal delivered to the Administrative Agent pursuant to Section 7.1(h); or 
 (g) which the Administrative Agent otherwise determines is unacceptable for any reason whatsoever. 
 “Employee Benefit Plan” means (a) any employee benefit plan within the meaning of Section 3(3) of ERISA that is maintained for employees of the Borrower or any of its Subsidiaries which the Borrower or any of its
Subsidiaries or any of their ERISA Affiliates sponsors, maintains, or to which it makes, is making, or is obligated to make, contributions or (b) any Pension Plan or Multiemployer Plan that has at any time within the preceding six
(6) years been maintained for the employees of the Borrower or any of its Subsidiaries or any of their current or former ERISA Affiliates. 
 “EMU Legislation” means legislative measures of the Council of European Union for the introduction of, change over to or operation of the euro. 
 “Environmental Claims” means any and all administrative, regulatory or judicial actions, suits, demands, demand letters, claims, liens, accusations, allegations, notices of noncompliance or violation,
investigations (other than internal reports prepared by any Person in the ordinary course of business and not in response to any third party action or request of any kind) or proceedings relating in any way to any actual or alleged violation of or
liability under any Environmental Law or relating to any permit issued, or any approval given, under any such Environmental Law, including, without limitation, any and all claims by Governmental Authorities for enforcement, cleanup, removal,
response, remedial or other actions or damages, contribution, indemnification cost recovery, compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to human health or the environment.

 “Environmental Laws” means any and all federal, foreign, state, provincial and local laws, statutes, ordinances, codes,
rules, legally binding policies, standards and regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities, relating to the protection of human health or the environment, including, but not limited to,
requirements pertaining to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or remediation of Hazardous Materials. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, and the rules and regulations thereunder, each as amended or modified
from time to time. 
  

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 “ERISA Affiliate” means any Person who together with the Borrower or any of its
Subsidiaries is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA. 
 “euro” means the single currency to which the Participating Member States of the European Union have converted. 
 “Eurodollar Reserve Percentage” means, for any day, the percentage (expressed as a decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for such day as
prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency reserves) in respect of eurocurrency
liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City. 
 “Event of
Default” means any of the events specified in Section 11.1; provided that any requirement for passage of time, giving of notice, or any other condition, has been satisfied. 
 “Exchangeable Shares” means those shares of Capital Stock issued by Bowater Canada, Inc. and listed on the Toronto Stock Exchange (under
stock symbol BWX) which are exchangeable at any time at the option of the holder of such shares into common stock of the Parent and which entitle the holders thereof to similar voting rights and dividend payments (on a per share basis) as those
granted to holders of the common stock of the Parent. 
 “Excluded Taxes” means, with respect to the Administrative Agent,
any Lender, any Issuing Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income (however denominated), and franchise taxes
imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its
applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case of a Foreign Lender (other than an
assignee pursuant to a request by the Borrower under Section 4.12(b)), any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or designates a new Lending
Office) or is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with Section 4.11(e), except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new Lending Office (or assignment), to receive additional amounts from the Borrower with respect to such withholding tax pursuant to Section 4.11(a). 
 “Existing Facilities” means the collective reference to (a) the credit facility established pursuant to that certain Credit
Agreement dated as of April 22, 2004 (as amended, restated, supplemented or modified) by and among the Canadian Borrower and the Original Borrower, as borrowers, JPMorgan Chase Bank, as U.S. administrative agent, The Bank of Nova Scotia, as
Canadian administrative agent and the lenders party thereto and (b) the conduit facility established pursuant that certain Loan Agreement dated as of December 19, 2002 (as amended, restated, supplemented or modified) by and among Bowater
Funding Inc., as borrower, the 

  

 21 

 
Original Borrower, as initial servicer, the lenders party thereto, SunTrust Capital Markets, Inc. and Wachovia Bank, National Association, as co-agents, and
SunTrust Capital Markets, Inc., as administrative agent. 
 “Existing Letters of Credit” means those letters of credit
existing on the Closing Date and identified on Schedule 1.1(a). 
 “Existing Notes” means the collective
reference to each of the senior unsecured notes and debentures set forth on Schedule 10.1. 
 “Extensions of
Credit” means, as to any Lender at any time, (a) an amount equal to the sum of (i) the aggregate principal amount of all Revolving Credit Loans made by such Lender then outstanding, (ii) such Lender’s Commitment
Percentage of the L/C Obligations then outstanding and (iii) such Lender’s Commitment Percentage of the Swingline Loans then outstanding or (b) the making of any Loan or participation in any Swingline Loan or any Letter of Credit by
such Lender, as the context requires. 
 “FDIC” means the Federal Deposit Insurance Corporation, or any successor thereto.

 “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day (or, if such day is not a Business Day, for the immediately preceding Business Day), as published by the Federal Reserve Bank of New
York on the Business Day next succeeding such day, provided that if such rate is not so published for any day which is a Business Day, the average of the quotation for such day on such transactions received by the Administrative Agent from
three Federal Funds brokers of recognized standing selected by the Administrative Agent. 
 “Fee Letter” means the separate
fee letter agreement executed by the Original Borrower and Wachovia and/or certain of its affiliates dated April 3, 2006. 
 “Fiscal Year” means the fiscal year of the Borrower and its Subsidiaries ending on December 31. 
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes. For purposes of this definition, the United States, each State thereof
and the District of Columbia shall be deemed to constitute a single jurisdiction. 
 “Foreign Pledge Documents” means any
pledge agreements, charges and other similar documents and agreements granting a lien on the Capital Stock of any first-tier Foreign Subsidiary of any Credit Party in favor of the Administrative Agent, for the ratable benefit of the Secured Parties.

 “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary. 
  

 22 

 “Fourth Amendment” means that certain Fourth Amendment dated as of Fourth Amendment
Effective Date by and among the Original Borrower, the Subsidiary Guarantors and the Administrative Agent (on behalf of itself and the Lenders party thereto). 
 “Fourth Amendment Effective Date” means March 31, 2008. 
 “GAAP”
means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently
applied. 
 “Governmental Approvals” means all authorizations, consents, approvals, permits, licenses and exemptions of,
registrations and filings with, and reports to, all Governmental Authorities. 
 “Governmental Authority” means the
government of the United States, Canada or any other nation, or of any political subdivision thereof, whether state, provincial or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank). 
 “Guarantors” means the Parent Guarantor and each Subsidiary Guarantor. 
 “Guaranty Obligation” means, with respect to the Borrower and its Subsidiaries, without duplication, any obligation, contingent or
otherwise, of any such Person pursuant to which such Person has directly or indirectly guaranteed any Indebtedness of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or
otherwise, of any such Person (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness (whether arising by virtue of partnership arrangements, by agreement to keep well, to purchase assets, goods,
securities or services, to take-or-pay, or to maintain financial statement condition or otherwise) or (b) entered into for the purpose of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such
obligee against loss in respect thereof (in whole or in part); provided, that the term Guaranty Obligation shall not include endorsements for collection or deposit in the ordinary course of business. 
 “Hazardous Materials” means any substances or materials (a) which are or become defined as hazardous wastes, hazardous substances,
pollutants, contaminants, chemical substances or mixtures or toxic substances under any Environmental Law, (b) which are toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise harmful to human
health or the environment and are or become regulated by any Governmental Authority, (c) the presence of which require investigation or remediation under any Environmental Law or common law, (d) the discharge or emission or release of
which requires a permit or license under any Environmental Law or other Governmental Approval, (e) which are 

  

 23 

 
deemed to constitute a nuisance or a trespass which pose a health or safety hazard to Persons or neighboring properties, (f) which consist of
underground or aboveground storage tanks, whether empty, filled or partially filled with any substance, or (g) which contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons,
petroleum derived substances or waste, crude oil, nuclear fuel, natural gas or synthetic gas. 
 “Hedging Agreement” means
any agreement with respect to any Interest Rate Contract, forward rate agreement, commodity swap, forward foreign exchange agreement, currency swap agreement, cross-currency rate swap agreement, currency option agreement or other agreement or
arrangement designed to alter the risks of any Person arising from fluctuations in interest rates, currency values or commodity prices, all as amended, restated, supplemented or otherwise modified from time to time. 
 “Hedging Obligations” means all existing or future payment and other obligations owing by any Credit Party under any Hedging Agreement
(which such Hedging Agreement is permitted hereunder) with any Person that is a Lender or an Affiliate of a Lender at the time such Hedging Agreement is executed. 
 “Immaterial Subsidiary” means: 
 (a) each QSPE; 
 (b) any Domestic Subsidiary that is not a Wholly-Owned Subsidiary to the extent that (i) there is a provision in the organizational documents of
such Domestic Subsidiary or (ii) the Borrower or any of its Subsidiaries is party to a legally enforceable agreement, in either case that would prohibit such Domestic Subsidiary from being a Subsidiary Guarantor without the consent of (or the
approval of directors appointed by) a third party owner of such Domestic Subsidiary; and 
 (c) any individual Domestic Subsidiary having
total assets with a book value that is less than one percent (1%) of the aggregate book value of the total Consolidated assets of the Borrower and its Subsidiaries (as of the most recent date for which financial statements have been delivered).

 “Indebtedness” means, with respect to any Person at any date and without duplication, the sum of the following:

 (a) all liabilities, obligations and indebtedness for borrowed money of such Person, including, but not limited to, obligations evidenced
by bonds, debentures, notes or other similar instruments of such Person; 
 (b) all obligations of such Person to pay the deferred purchase
price of property or services (including, without limitation, all obligations under non-competition, earn-out or similar agreements in connection with an acquisition), except trade payables and accrued obligations arising in the ordinary course of
business, so long as such trade accounts payable are payable within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; 
  

 24 

 (c) the Attributable Indebtedness of such Person with respect to such Person’s obligations in
respect of Capital Leases and Synthetic Leases (regardless of whether accounted for as indebtedness under GAAP); 
 (d) all Indebtedness of
any other Person secured by a Lien on any asset owned by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited
in recourse; 
 (e) all Guaranty Obligations of such Person; 
 (f) all obligations, contingent or otherwise, of such Person in connection with letters of credit, whether or not drawn, including, without limitation, any reimbursement obligation, and bankers’ acceptances
issued for the account of such Person; 
 (g) all cash obligations of any such Person to redeem, repurchase, exchange, defease or otherwise
make payments in respect of Capital Stock of such Person, unless such redemption, repurchase, exchange, defeasance or other payment is contingent (unless such contingency has been satisfied) or is not required prior to the date that is ninety-one
(91) days after the Maturity Date; 
 (h) all Net Hedging Obligations of such Person; and 
 (i) the outstanding attributed principal amount under any asset securitization program of such Person. 
 For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person is a general partner or a joint venturer, unless such Person is not legally liable therefor under Applicable Law or as a result of any legally enforceable contractual
limitation with respect to such Indebtedness. 
 “Indemnified Taxes” means Taxes and Other Taxes other than Excluded Taxes.

 “Insurance and Condemnation Event” means the receipt by the Borrower or any of its Subsidiaries of any cash insurance
proceeds or condemnation award payable by reason of theft, loss, physical destruction or damage, taking or similar event with respect to any of their respective property or assets. 
 “Intercompany Subordination Agreement” means an Intercompany Subordination Agreement substantially in the form of Exhibit
J by and among the Administrative Agent and the applicable Credit Parties or Subsidiaries thereof party thereto. 
 “Interest
Period” has the meaning assigned thereto in Section 4.1(b). 
 “Interest Rate Contract” means any
interest rate swap agreement, interest rate cap agreement, interest rate floor agreement, interest rate collar agreement, interest rate option or any other agreement regarding the hedging of interest rate risk exposure executed in connection with
hedging the interest rate exposure of any Person and any confirming letter executed pursuant to such agreement, all as amended, restated, supplemented or otherwise modified from time to time. 
  

 25 

 “Inventory” has the meaning specified in Section 1.1 of the Collateral
Agreement. 
 “ISP98” means the International Standby Practices (1998 Revision, effective January 1, 1999),
International Chamber of Commerce Publication No. 590. 
 “Issuing Lender” means (a) with respect to Letters of
Credit issued hereunder on or after the Closing Date, Wachovia, in its capacity as issuer thereof, or any successor thereto or any other Lender designated as an Issuing Lender by the Original Borrower (with reasonable prior notice of such
designation by the Original Borrower to the Administrative Agent) and (b) with respect to the Existing Letters of Credit, the issuers thereof as identified on Schedule 1.1(a). 
 “ITA” means the Income Tax Act (Canada), as amended or modified from time to time. 
 “L/C Commitment” means the lesser of (a) One Hundred Million Dollars ($100,000,000) and (b) the aggregate Commitments of the
Lenders. 
 “L/C Facility” means the letter of credit facility established pursuant to Article III. 
 “L/C Obligations” means at any time, an amount equal to the sum of (a) the aggregate undrawn and unexpired amount of the then
outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit which have not then been reimbursed pursuant to Section 3.5. 
 “L/C Participants” means the collective reference to all of the Lenders other than the applicable Issuing Lender. 
 “L/C Supporting Documentation” has the meaning assigned thereto in Section 3.2. 
 “Lender” means each Person that is bound by the terms of this Agreement as a Lender (including, without limitation, each Issuing Lender
and the Swingline Lender unless the context otherwise requires) and each Person that hereafter becomes a party to this Agreement as a Lender pursuant to Section 13.10. 
 “Lending Office” means, with respect to any Lender, the office of such Lender maintaining such Lender’s Extensions of Credit.

 “Letter of Credit Application” means an application, in the form specified by the applicable Issuing Lender from time to
time, requesting the applicable Issuing Lender to issue a Letter of Credit. 
 “Letters of Credit” means the collective
reference to letters of credit issued pursuant to Section 3.1 and the Existing Letters of Credit. 
 “LIBOR”
means the rate of interest per annum determined on the basis of the rate for deposits in Dollars in minimum amounts of at least $5,000,000 for a period equal to the 

  

 26 

 
applicable Interest Period which appears on the Reuters Page LIBOR01 (or any successor page) at approximately 11:00 a.m. (London time) two (2) Business
Days prior to the first day of the applicable Interest Period (rounded upward, if necessary, to the nearest 1/100th of 1%). If, for any reason, such
rate does not appear on Reuters Page LIBOR01 (or any successor page) then “LIBOR” shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in Dollars in minimum amounts of at
least $5,000,000 would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two (2) Business Days prior to the first day of the applicable Interest Period for a
period equal to such Interest Period. Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all purposes, absent manifest error. 
 “LIBOR Rate” means a rate per annum (rounded upwards, if necessary, to the next higher 1/100th of 1%) determined by the Administrative Agent pursuant to the following formula: 
  

									
		  	LIBOR Rate	 	=	  	 LIBOR
	  	
		  		 		  	1.00-Eurodollar Reserve Percentage	  	

 “LIBOR Rate Loan” means any Loan bearing interest at a rate based upon the LIBOR
Rate as provided in Section 4.1(a). 
 “Lien” means, with respect to any asset, any mortgage, leasehold
mortgage, lien, pledge, charge, security interest, hypothec, hypothecation, assignment by way of security or encumbrance of any kind in respect of such asset. For the purposes of this Agreement, a Person shall be deemed to own subject to a Lien any
asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, Capital Lease or other title retention agreement relating to such asset. 
 “Loan Documents” means, collectively, this Agreement, each Note, the Letter of Credit Applications, the Security Documents, the
Intercompany Subordination Agreement, and each other document, instrument, certificate and agreement executed and delivered by the Parent, the Borrower or any of their respective Subsidiaries in connection with this Agreement or otherwise referred
to herein or contemplated hereby (excluding any Hedging Agreement), all as may be amended, restated, supplemented or otherwise modified from time to time. 
 “Loans” means the collective reference to the Revolving Credit Loans and the Swingline Loans, and “Loan” means any of such Loans. 
 “Material Adverse Effect” means, with respect to the Borrower or any of its Subsidiaries, a material adverse effect on (a) the
business, assets, liabilities (actual or contingent), operations or condition (financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole, or (b) the ability of any such Person to perform its obligations under the Loan
Documents to which it is a party. 
 “Material Subsidiary” means: 
 (a) each Domestic Subsidiary of the Borrower, other than the Immaterial Subsidiaries; and 
  

 27 

 (b) each Subsidiary that, notwithstanding the definition of Immaterial Subsidiary, is
designated as a Material Subsidiary pursuant to Section 8.10(b). 
 Notwithstanding anything to the contrary contained in this
Agreement or any other Loan Document, any Subsidiary that (i) owns a Material Subsidiary or (ii) provides a guaranty of (A) the Existing Notes, (B) any Indebtedness incurred to refinance, refund, renew or extend the Existing
Notes as permitted pursuant to Section 10.1(d) or (C) any Indebtedness permitted pursuant to Section 11.1(o)(viii), in each case, shall be a Material Subsidiary. 
 “Maturity Date” means the earliest to occur of: 
 (a) May 25, 2011; provided, however, that such date shall be accelerated to: 
 (i) the date which is ninety-one (91) days prior to the then current maturity date of any Specified Existing Note if on the date
which is one hundred twenty (120) days prior to the then current maturity date of such Specified Existing Note either (A) the remaining outstanding principal balance thereof (excluding any such balance as to which sums have been set aside
for the payment thereof pursuant to any defeasance or sinking fund or escrow arrangement or similar provisions) is in excess of $75,000,000 or (B) the Aggregate Credit Exposure is in excess of $100,000,000 and the outstanding principal balance
of such Specified Existing Note (excluding any such balance as to which sums have been set aside for the payment thereof pursuant to any defeasance or sinking fund or escrow arrangement or similar provisions) has not been paid in full; or

 (ii) the date which is ninety-one (91) days prior to the then current maturity date of any Indebtedness permitted
pursuant to Section 11.1(o)(viii) if, on the date which is one hundred twenty (120) days prior to the then current maturity date of such Indebtedness, such Indebtedness has not been paid in full in accordance with the terms of this
Agreement or extended or refinanced such that the maturity of such Indebtedness is more than ninety-one (91) days after May 25, 2011. 
 (b) the date of termination of the entire Commitment by the Borrower pursuant to Section 2.5; or 
 (c) the date of termination of the Commitment by the Administrative Agent on behalf of the Lenders pursuant to Section 11.2(a). 
 “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto. 
 “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Borrower or any
of its Subsidiaries or any of their ERISA Affiliates is making, or is accruing an obligation to make, or has accrued an obligation to make contributions within the preceding six (6) years. 
 “Net Cash Proceeds” means, as applicable; 
  

 28 

 (a) with respect to any Asset Disposition, the gross cash proceeds received by the
Borrower or any of its Subsidiaries therefrom less the sum of the following, without duplication, (i) selling expenses incurred in connection with such Asset Disposition (including reasonable brokers’ fees and commissions, legal,
accounting and other professional and transactional fees, transfer and similar taxes and the Original Borrower’s reasonable good faith estimate of income taxes paid or payable in connection with such sale), (ii) reasonable reserves with
respect to post-closing adjustments, indemnities and other contingent liabilities established in connection with such Asset Disposition (provided that, to the extent and at the time any such amounts are released from such reserve, such
amounts shall constitute Net Cash Proceeds), (iii) the principal amount, premium or penalty, if any, interest and other amounts on any Indebtedness secured by a Lien on the assets (or a portion thereof) sold in such Asset Disposition, which
Indebtedness is repaid with such proceeds and (iv) the Original Borrower’s reasonable good faith estimate of cash payments required to be made within ninety (90) days of such Asset Disposition with respect to retained liabilities
directly related to the assets (or a portion thereof) sold in such Asset Disposition (provided that, to the extent that cash proceeds are not used to make payments in respect of such retained liabilities within ninety (90) days of such
Asset Disposition, such cash proceeds shall constitute Net Cash Proceeds); and 
 (b) with respect to any Insurance and
Condemnation Event, the gross cash proceeds received by the Borrower or any of its Subsidiaries therefrom less the sum of the following, without duplication, (i) all fees and expenses in connection therewith and (ii) the principal
amount, premium or penalty, if any, interest and other amounts on any Indebtedness secured by a Lien on the assets (or a portion thereof) subject to such Insurance and Condemnation Event, which Indebtedness is repaid in connection therewith.

 “Net Hedging Obligations” means, with respect to any Hedging Agreement as of any date, the Termination Value of such
Hedging Agreement on such date. 
 “Net Orderly Liquidation Value” means, with respect to the Eligible Machinery and
Equipment, the orderly liquidation value thereof, net of all costs of liquidation thereof, including operating expenses, commissions and other expenses thereof, as determined by the Administrative Agent from time to time based upon the most recent
appraisal conducted pursuant to Section 7.1(h). 
 “Net Recovery Percentage” means, at any time, the fraction,
expressed as a percentage, (a) the numerator of which is the amount equal to the recovery in respect of Eligible Inventory at such time on a net orderly liquidation value basis as set forth in the most recent acceptable appraisal of Eligible
Inventory received by the Administrative Agent, net of operating expenses, liquidation expenses and commissions, and (b) the denominator of which is the applicable original Value of the aggregate amount of the Inventory subject to such
appraisal. 
 “New Borrowers” means (a) Bowater Alabama, Inc., an Alabama corporation; (b) Bowater Mississippi,
LLC, a Delaware limited liability company; and/or (c) another Person that, as of the Fourth Amendment Effective Date, is a Wholly-Owned Subsidiary of the Original 

  

 29 

 
Borrower; provided that such Person is identified to the Administrative Agent and the Canadian Administrative Agent by the Original Borrower on or
prior to April 15, 2008 and is acceptable to the Administrative Agent and the Canadian Administrative Agent (each in its sole discretion). 
 “New Borrower Fixed Assets” means, collectively, the Coosa Pines Mill, the Coosa Pines Mill Real Property, the Coosa Pines Mill Equipment, the Grenada Mill, the Grenada Mill Real Property, the Grenada Mill Equipment and any
and all other real property and equipment owned or thereafter acquired by any New Borrower or in which any New Borrower has or at any time in the future may acquire any right, title or interest, and wherever located or deemed located to the extent
related to or forming a part of the Coosa Pines Mill, the Coosa Pines Mill Real Property, the Coosa Pines Mill Equipment, the Grenada Mill, the Grenada Mill Real Property or the Grenada Mill Equipment; provided, that in no event shall the New
Borrower Fixed Assets include any Coverage Assets. 
 “New Borrower Mill Assets” means, collectively: 
 (a) (i) that certain mill owned as of the Fourth Amendment Effective Date by Bowater Alabama, Inc., a Subsidiary of the Original Borrower, and located in
Coosa Pines, Alabama (the “Coosa Pines Mill”), along with the real property upon which the Coosa Pines Mill is situated (as more particularly described on Schedule 1.1(c) hereto, the “Coosa Pines Mill Real
Property”); 
 (ii) all equipment used in connection with the Coosa Pines Mill and located at the Coosa Pines Mill
Real Property (the “Coosa Pines Mill Equipment”); and 
 (iii) all other rights and assets used for the
operation, administration and maintenance of the Coosa Pines Mill Real Property; 
 (b) (i) that certain mill owned (directly or
beneficially) as of the Fourth Amendment Effective Date by a Subsidiary of the Original Borrower, and located in Grenada, Mississippi (the “Grenada Mill”), along with the real property upon which the Grenada Mill is situated (as
more particularly described on Schedule 1.1(c) hereto, the “Grenada Mill Real Property”); 
 (ii) all
equipment used in connection with the Grenada Mill and located at the Grenada Mill Real Property (the “Grenada Mill Equipment”); and 
 (iii) all other rights and assets used for the operation, administration and maintenance of the Grenada Mill Real Property; and 
 (c) all operations of the foregoing. 
 “New Borrower Mortgages” means those certain
mortgages, deeds of trust, security agreements or other real property security documents encumbering the New Borrower Fixed Assets, in each case in form and substance reasonably satisfactory to the Administrative Agent and the Canadian
Administrative Agent and executed by the applicable New Borrower in favor of the Administrative Agent, for the ratable benefit of the Secured Parties and the Canadian Secured Parties, as amended, restated, supplemented or otherwise modified from
time to time. 
  

 30 

 “New Borrower Notes” has the meaning assigned thereto in Section 10.5(h).

 “New Borrower Security Documents” has the meaning assigned thereto in Section 8.10(e)(ii)(B)(5). 
 “New Borrower Transactions” means the transfer of the Capital Stock of each New Borrower from the Original Borrower to the Parent in
exchange for the New Borrower Notes, in each case, to the extent permitted pursuant to, and in accordance with the terms of, this Agreement and the Canadian Credit Agreement. 
 “New Material Subsidiary” has the meaning assigned thereto in Section 8.10. 
 “Notes” means the collective reference to the Revolving Credit Notes and the Swingline Note. 
 “Notice of Account Designation” has the meaning assigned thereto in Section 2.3(b). 
 “Notice of Borrowing” has the meaning assigned thereto in Section 2.3(a). 
 “Notice of Conversion/Continuation” has the meaning assigned thereto in Section 4.2. 
 “Notice of Prepayment” has the meaning assigned thereto in Section 2.4(c). 
 “Obligations” means, in each case, whether now in existence or hereafter arising: (a) the principal of and interest on (including
interest accruing after the filing of any bankruptcy or similar petition) the Loans, (b) the L/C Obligations, (c) all Hedging Obligations and (d) all other fees and commissions (including reasonable attorneys’ fees), charges,
indebtedness, loans, liabilities, financial accommodations, obligations, covenants and duties owing by the Borrower or any of its Subsidiaries to the Lenders or the Administrative Agent, in each case under any Loan Document, with respect to any Loan
or Letter of Credit, of every kind, nature and description, direct or indirect, absolute or contingent, due or to become due, contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any note. 
 “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control. 
 “Officer’s Compliance Certificate” means a certificate of the chief financial officer, the treasurer, or the assistant treasurer of
the Original Borrower substantially in the form of Exhibit F. 
 “Operating Lease” means, as to any Person as
determined in accordance with GAAP, any lease of property (whether real, personal or mixed) by such Person as lessee which is not a Capital Lease. 
 “Original Borrower” has the meaning assigned thereto in the introductory paragraph. 
 “Other
Taxes” means all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or
enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
  

 31 

 “Parent” means AbitibiBowater Inc., a Delaware corporation f/k/a Alpha-Bravo Holdings,
Inc. 
 “Parent Guarantor” means the Parent, as guarantor pursuant to the Parent Guaranty Agreement. 
 “Parent Guaranty Agreement” means the unconditional guaranty agreement executed by the Parent as required by the Fourth Amendment in
favor of the Administrative Agent, for the ratable benefit of the Secured Parties, in form and substance satisfactory to the Administrative Agent, as amended, restated, supplemented or otherwise modified from time to time. 
 “Parent Overhead Expenses” means (a) accounting and auditing costs and expenses incurred by the Parent in the ordinary course of
its business in connection with preparing financial reports and tax filings; (b) customary fees and expenses payable to the SEC and other reasonable and customary costs and expenses payable in connection with the Parent being a publicly traded
company (including, without limitation, reasonable and customary fees and expenses required to be paid for professional and regulatory compliance); (c) reasonable and customary legal fees and expenses required for the corporate maintenance of
the Parent and the Borrower and its Subsidiaries; (d) reasonable and customary director fees; (e) reasonable and customary costs and expenses payable for director and officer insurance; (f) transfer agent fees payable in connection
with Capital Stock of the Parent; and (g) franchise taxes and other fees payable to the jurisdiction of incorporation or qualification of the Parent incurred in the ordinary course of conducting its business; provided that in no event
shall Parent Overhead Expenses include management fees, salaries, bonuses, debt service and dividends and other distributions in respect of the Capital Stock of the Parent. 
 “Participant” has the meaning assigned thereto in Section 13.10(d). 
 “Participating Member State” means each state so described in any EMU Legislation. 
 “PBGC” means the Pension Benefit Guaranty Corporation or any successor agency. 
 “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to the provisions of Title IV of ERISA
or Section 412 of the Code and which (a) is maintained for the employees of the Borrower or any of its Subsidiaries or any of their ERISA Affiliates or (b) has at any time within the preceding six (6) years been maintained for
the employees of the Borrower or any of its Subsidiaries or any of their current or former ERISA Affiliates which the Borrower or any of its Subsidiaries or any of their ERISA Affiliates sponsors, maintains, or to which it makes, is making or is
obligated to make, contributions. 
 “Permitted Acquisition” means any investment by the Borrower or any of its Subsidiaries
in the form of the acquisition of all or substantially all of the business or assets, or any portion of the business or assets that constitutes a line of business, a business unit or a division (whether by the acquisition of Capital Stock, assets or
any combination thereof), of any other Person if each such acquisition or investment meets all of the following requirements: 
  

 32 

 (a) with respect to any acquisition: 
 (i) such acquisition is not a hostile acquisition (with evidence thereof to be provided to the Administrative Agent or the Canadian
Administrative Agent upon its reasonable request); 
 (ii) the Person or business to be acquired shall be in a substantially
similar line of business as the Borrower and its Subsidiaries pursuant to Section 10.12; 
 (iii) if such
transaction is a merger or consolidation involving a Credit Party or a Canadian Credit Party, the surviving Person shall be a Credit Party or Canadian Credit Party and no Change of Control shall have been effected thereby; 
 (iv) if the acquisition will result in the acquisition of, or creation of, any New Material Subsidiary, the Borrower shall comply with
Section 8.10 hereof; 
 (v) no Default or Event of Default shall have occurred and be continuing both before and
after giving effect to such acquisition; and 
 (vi) after giving effect to the acquisition, at least (A) $50,000,000 in
availability shall exist under the Credit Facility and (B) $25,000,000 in availability shall exist under the Canadian Credit Facility; and 
 (b) with respect to any acquisition for which the Permitted Acquisition Consideration is greater than $50,000,000 or any acquisition funded (in whole or in part) by Extensions of Credit or Canadian Extensions of
Credit (in addition to the requirements set forth in clause (a) above): 
 (i) no less than fifteen (15) Business
Days prior to the proposed closing date of such acquisition, the Original Borrower shall have delivered written notice of such acquisition to the Administrative Agent and the Canadian Administrative Agent, which notice shall include the proposed
closing date of such acquisition; 
 (ii) no later than five (5) Business Days prior to the proposed closing date of such
acquisition, the Original Borrower shall have delivered to the Administrative Agent and the Canadian Administrative Agent an Officer’s Compliance Certificate demonstrating, in form and substance reasonably satisfactory thereto,
(A) pro forma compliance (as of the most recent fiscal quarter ended for which financial statements have been delivered pursuant hereto, adjusted to give effect the acquisition and any Extensions of Credit or Canadian Extensions
of Credit made or to be made in connection therewith) with each covenant contained in Article IX and (B) a pro forma Consolidated Senior Secured Leverage Ratio (as of the most recent fiscal quarter ended for which financial
statements have been delivered pursuant hereto, adjusted to give effect the acquisition and any Extensions of Credit or Canadian Extensions of Credit made or to be made in connection therewith) not to exceed 1.00 to 1.00; 
  

 33 

 (iii) no later than five (5) Business Days prior to the proposed closing date of
such acquisition, the Original Borrower, to the extent requested by the Administrative Agent or the Canadian Administrative Agent, (A) shall have delivered to the Administrative Agent or the Canadian Administrative Agent, as applicable,
promptly upon the finalization thereof, copies of substantially final Permitted Acquisition Documents, which shall be in form and substance reasonably satisfactory to the Administrative Agent or the Canadian Administrative Agent, as applicable, and
(B) shall have delivered to, or made available for inspection by, the Administrative Agent or the Canadian Administrative Agent, as applicable, substantially complete Permitted Acquisition Diligence Information, which shall be in form and
substance reasonably satisfactory to the Administrative Agent or the Canadian Administrative Agent, as applicable; 
 (iv) the
Original Borrower shall provide such other documents and other information as may be reasonably requested by the Administrative Agent or the Canadian Administrative Agent in connection with the acquisition; and 
 (v) the Original Borrower shall demonstrate, in form and substance reasonably satisfactory to the Administrative Agent and the Canadian
Administrative Agent, that the entity to be acquired had positive Consolidated EBITDA for the four (4) fiscal quarter period ended prior to the proposed closing date of such acquisition (it being agreed and acknowledged that clause (b)(vi) of
the definition of “Consolidated EBITDA” shall be calculated solely with respect to the Person or business to be acquired); and 
 (c) with respect to any acquisition for which the Permitted Acquisition Consideration is less than $50,000,000 and such acquisition is not funded (in whole or in part) by Extensions of Credit or Canadian Extensions of
Credit (in addition to the requirements set forth in clause (a) above): 
 (i) no more than ten (10) days following
the closing date of such acquisition, the Original Borrower shall have delivered written notice of such acquisition to the Administrative Agent and the Canadian Administrative Agent, which notice shall include the closing date of such acquisition;
and 
 (ii) to the extent requested by the Administrative Agent or the Canadian Administrative Agent, the Original Borrower
shall have delivered to the Administrative Agent or the Canadian Administrative Agent, as applicable, promptly upon the finalization thereof (but no later than fifteen (15) days after the closing date of such acquisition) copies of
substantially final Permitted Acquisition Documents. 
  

 34 

 Notwithstanding anything to the contrary contained in this Agreement or the other Loan Documents, the Original Borrower
shall have obtained the prior written consent of the Required Lenders prior to the consummation of such acquisition if (1) the Permitted Acquisition Consideration for any such acquisition (or series of related acquisitions), together with all
other acquisitions consummated during the previous twelve (12) month period exceeds $100,000,000 in the aggregate (excluding any portion of the acquisitions paid with the proceeds from any equity issuance by the Borrower) and (2) the
Permitted Acquisition Consideration for such acquisition (or series of related acquisitions), together with all other acquisitions consummated during the term of this Agreement, exceeds $300,000,000 in the aggregate (excluding any portion of the
acquisitions paid with the proceeds from any equity issuance by the Borrower). 
 “Permitted Acquisition Consideration”
means the aggregate amount of the purchase price (including, but not limited to, any assumed debt, earn-outs (valued at the maximum amount payable thereunder), deferred payments, or Capital Stock of the Borrower, net of the applicable acquired
company’s cash and Cash Equivalent balance as shown on its most recent financial statements delivered in connection with the applicable Permitted Acquisition) to be paid on a singular basis in connection with any applicable Permitted
Acquisition as set forth in the applicable Permitted Acquisition Documents executed by the Borrower or any of its Subsidiaries in order to consummate the applicable Permitted Acquisition. 
 “Permitted Acquisition Diligence Information” means with respect to any acquisition proposed by the Borrower or any of its Subsidiaries,
to the extent applicable and in the possession of the Borrower or any of its Subsidiaries, all material financial information, all material contracts, all material customer lists, all material supply agreements, and all other material information,
in each case, reasonably requested to be delivered to the Administrative Agent or the Canadian Administrative Agent in connection with such acquisition (except to the extent that any such information is (a) subject to any confidentiality
agreement, unless mutually agreeable arrangements can be made to preserve such information as confidential, (b) classified or (c) subject to any attorney-client privilege). 
 “Permitted Acquisition Documents” means with respect to any acquisition proposed by the Borrower or any of its Subsidiaries, the
purchase agreement, sale agreement, merger agreement or other similar agreement evidencing such acquisition (whichever is applicable), including, without limitation, all schedules and exhibits thereto and each other material document executed,
delivered, contemplated by or prepared in connection therewith and any amendment, modification or supplement to any of the foregoing. 
 “Permitted Liens” means the Liens permitted pursuant to Section 10.2. 
 “Person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, governmental authority or other entity. 
 “Pounds Sterling” means, at any time of determination, the then official currency of the United Kingdom. 
 “Prime Rate” means, at any time, the rate of interest per annum publicly announced from time to time by Wachovia as its prime rate. Each change in the Prime Rate shall be effective as 

  

 35 

 
of the opening of business on the day such change in such prime rate occurs. The parties hereto acknowledge that the rate announced publicly by Wachovia as
its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its customers or other banks. 
 “QSPE” means each of the following: (a) Calhoun Note Holdings AT LLC, (b) Calhoun Note Holdings TI LLC, (c) Bowater Catawba Note Holdings I LLC, (d) Bowater Catawba Note Holdings II LLC, (e) Bowater
Saluda Note Holdings LLC, (f) Timber Note Holding LLC and (g) any other qualified special purpose entity created to facilitate the sale and/or the monetization of receivables from the sale of timberlands pursuant to
Section 10.5(g); provided that: 
 (i) no portion of the Indebtedness or any other obligations (contingent
or otherwise) of any such Person (1) may be guaranteed by the Borrower or any of its Subsidiaries, (2) may be recourse to or obligate the Borrower or any of its Subsidiaries in any way or (3) may subject any property or asset of the
Borrower or any of its Subsidiaries, directly or indirectly, contingently or otherwise, to the satisfaction thereof (other than, in the case of clauses (1) (solely with respect to guaranties of make-whole premiums), (2) and (3), pursuant
to Standard Securitization Undertakings); 
 (ii) the Borrower and its Subsidiaries may not have any material contract,
agreement, arrangement or understanding with any such Person other than on terms no less favorable to the Borrower or any of its Subsidiaries than those that might be obtained at the time from Persons that are not Affiliates of the Borrower or any
of its Subsidiaries; and 
 (iii) the Borrower and its Subsidiaries may not (A) have any obligation to maintain or
preserve the financial condition of any such Person or (B) cause any such Person to achieve certain levels of operating results. 
 “Register” has the meaning assigned thereto in Section 13.10(c). 
 “Reimbursement
Obligation” means the obligation of the Borrower to reimburse the applicable Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit. 
 “Related Parties” means, with respect to any Person, such Person’s Affiliates and the directors, officers, employees, agents and
advisors of such Person and of such Person’s Affiliates. 
 “Required Agreement Lenders” means, at any date, any
combination of Lenders having more than fifty percent (50%) of the sum of the aggregate amount of the Commitment under this Credit Facility or, if the Commitment under this Credit Facility has been terminated, any combination of Lenders holding
more than fifty percent (50%) of the aggregate Extensions of Credit. 
 “Required Lenders” means, at any date, any
combination of Lenders and Canadian Lenders having more than fifty percent (50%) of the sum of (a) the aggregate amount of the Commitment under this Credit Facility (or if the Commitment has been terminated, the aggregate amount of
Extensions of Credit under this Credit Facility) plus (b) the aggregate amount of the commitments under the Canadian Credit Facility (or, if the commitments under the Canadian Credit Facility have been terminated, the aggregate amount of
the Canadian Extensions of Credit). 
  

 36 

 “Reserves” means, as of any date of determination, such amounts as the Administrative
Agent may from time to time establish and revise in good faith reducing the amount of the Extensions of Credit which would otherwise be available to the Borrower under the lending formulas provided herein: (a) to reflect events, conditions,
contingencies or risks which, as determined by the Administrative Agent in good faith, adversely affect, or would have a reasonable likelihood of adversely affecting, either (i) the Collateral or any other property which is security for the
Obligations, its value or the amount that might be received by the Administrative Agent from the sale or other disposition or realization upon the Collateral, or (ii) the assets, business or prospects of the Borrower or any of its Consolidated
Subsidiaries or (iii) the security interests and other rights of the Administrative Agent or any Lender in the Collateral (including the enforceability, perfection and priority thereof) or (b) to reflect the Administrative Agent’s
good faith belief that any collateral report or financial information furnished by or on behalf of the Borrower or any of its Consolidated Subsidiaries to the Administrative Agent is or may have been incomplete, inaccurate or misleading in any
material respect or (c) in respect of any state of facts which the Administrative Agent determines in good faith constitutes a Default or an Event of Default. Without limiting the generality of the foregoing, Reserves may, at the Administrative
Agent’s option, be established to reflect environmental liabilities. To the extent that the Administrative Agent may revise the lending formulas used to determine the Borrowing Base or establish new criteria or revise existing criteria so as to
address any circumstances, condition, event or contingency in any manner satisfactory to the Administrative Agent, the Administrative Agent shall not establish a Reserve for the same purpose. The amount of any Reserve established by the
Administrative Agent shall have a reasonable relationship to the event, condition, or other matter which is the basis for the Reserve as determined by the Administrative Agent in good faith. 
 “Responsible Officer” means, as to any Person, the chief executive officer, president, chief financial officer, controller, treasurer or
assistant treasurer of such Person or any other officer of such Person reasonably acceptable to the Administrative Agent and the Canadian Administrative Agent. Any document delivered hereunder that is signed by a Responsible Officer of a Person
shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of such Person and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Person.

 “Restricted Jurisdictions” means California, North Dakota, South Dakota or Vermont. 
 “Restricted Subsidiary” means any Person that is a “Restricted Subsidiary” pursuant to the definition thereof as contained in
the Existing Notes as in effect as of the Closing Date, for so long as such Existing Notes or any Indebtedness incurred to refinance such Existing Notes is outstanding and includes provisions restricting the granting of a lien on the capital stock
or indebtedness of such Restricted Subsidiaries. 
 “Revolving Credit Facility” means the revolving credit facility
established pursuant to Article II. 
  

 37 

 “Revolving Credit Loan” means any revolving loan made to the Borrower pursuant to
Section 2.1, and all such revolving loans collectively as the context requires. 
 “Revolving Credit Note” means
a promissory note made by the Borrower in favor of a Lender evidencing the Revolving Credit Loans made by such Lender, substantially in the form of Exhibit A-1, and any amendments, supplements and modifications thereto, any substitutes
therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part. 
 “S&P” means
Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. and any successor thereto. 
 “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions. 
 “Sanctioned Entity” shall mean (a) an agency of the government of, (b) an organization directly or indirectly controlled by, or (c) a person resident in a country that is subject to a
sanctions program identified on the list maintained by OFAC and available at http://www.treas.gov/offices/enforcement/ofac/sanctions/index.html, or as otherwise published from time to time as such program may be applicable to such agency,
organization or person. 
 “Sanctioned Person” shall mean a person named on the list of Specially Designated Nationals or
Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/ enforcement/ofac/sdn/index.html, or as otherwise published from time to time. 
 “Secured Parties” means the Administrative Agent, the Lenders and/or any party to a Hedging Agreement that was a Lender or an Affiliate of a Lender at the time such Hedging Agreement was executed.

 “Security Documents” means the collective reference to the Collateral Agreement, the Subsidiary Guaranty Agreement, the
Parent Guaranty Agreement, the New Borrower Mortgages, each Foreign Pledge Document and each other agreement or writing pursuant to which the Parent or any Credit Party purports to pledge or grant a security interest in any property or assets
securing the Obligations or any such Person purports to guaranty the payment and/or performance of the Obligations, in each case, as amended, restated, supplemented or otherwise modified from time to time. 
 “Significant Indebtedness” means Indebtedness (other than the Obligations and the Canadian Obligations) of the Borrower and its
Subsidiaries the outstanding principal amount of which is in excess of $25,000,000. 
 “Solvent” means, as to the Borrower
and its Subsidiaries on a particular date, that any such Person (a) has capital sufficient to carry on its business and transactions and all business and transactions in which it is about to engage and is able to pay its debts as they mature,
(b) has assets having a value, both at fair valuation and at present fair saleable value, greater than the amount required to pay its probable liabilities (including contingencies), and (c) does not believe that it will incur debts or
liabilities beyond its ability to pay such debts or liabilities as they mature. 
  

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 “Specified Existing Notes” means each of the Existing Notes which (a) as of the
Closing Date, matures or is subject to mandatory redemption prior to May 25, 2011 and (b) has an outstanding principal amount, as of the Closing Date, in excess of $75,000,000. The Specified Existing Notes shall be set forth on Schedule
1.1(b). 
 “Specified Non-Recurring Charges” means the non-recurring charges against income taken by the Original
Borrower during the following periods in the following amounts: 
 (a) with respect to the fiscal quarter ended March 31,
2007, non-recurring charges in the amount of $9,500,000; 
 (b) with respect to the fiscal quarter ended June 30, 2007,
non-recurring charges in the amount of $20,000,000; 
 (c) with respect to the fiscal quarter ended September 30, 2007,
non-recurring charges in the amount of $46,000,000; 
 (d) with respect to the fiscal quarter ending December 31, 2007,
non-recurring charges consisting of the following, without duplication, (i) severance expenses of the Original Borrower, (ii) merger costs incurred with respect to the Combination and (iii) other mill closure costs, in each case,
taken during such quarter, in an aggregate amount to be determined in accordance with GAAP, but not to exceed $100,000,000; and 
 (e) with respect to the fiscal quarter ending March 31, 2008, non-recurring charges consisting of the following, without duplication, (i) severance expenses of the Original Borrower, (ii) merger costs incurred with respect to
the Combination and (iii) other mill closure costs, in each case, taken during such quarter, in an aggregate amount to be determined in accordance with GAAP, but not to exceed $100,000,000 less the amount of Specified Non-Recurring
Charges taken pursuant to clause (d) above with respect to the fiscal quarter ended December 31, 2007; 
 provided that,
notwithstanding anything to the contrary contained in this Agreement or any other Loan Document, for purposes of calculating the Consolidated Senior Secured Leverage Ratio and the interest coverage ratio as set forth in Section 9.2, such
non-recurring charges shall be excluded from the non-recurring charges included in clause (b)(v) of the definition of Consolidated EBITDA. 
 “Standard Securitization Undertakings” means, collectively, (i) customary arms-length servicing obligations (together with any related performance guaranties), (ii) obligations (together with any related
performance guaranties) to refund the purchase price or grant purchase price credits for dilutive events or misrepresentation (in each case unrelated to the collectibility of receivables or creditworthiness of the associated account debtors),
(iii) representations, warranties, covenants and indemnities (together with any related performance guaranties) of a type that are reasonably customary in accounts receivable securitizations and (iv) in the case of a QSPE, a guarantee by
the Borrower or its Subsidiaries of any make whole premium (but not any principal or interest) on Indebtedness of such QSPE. 
  

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 “Subordinated Indebtedness” means the collective reference to any Indebtedness of the
Borrower or any of its Subsidiaries subordinated in right and time of payment to the Obligations and containing such other terms and conditions, in each case as are satisfactory to the Administrative Agent and the Canadian Administrative Agent.

 “Subsidiary” means as to any Person, any corporation, partnership, limited liability company or other entity of which
more than fifty percent (50%) of the outstanding Capital Stock having ordinary voting power to elect a majority of the board of directors or other persons or governing body performing similar functions of such corporation, partnership, limited
liability company or other entity is at the time directly or indirectly owned or controlled by such Person and/or one or more Subsidiaries of such Person (irrespective of whether, at the time, Capital Stock of any other class or classes of such
corporation, partnership, limited liability company or other entity shall have or might have voting power by reason of the happening of any contingency); provided, however, notwithstanding the foregoing, the terms “Subsidiary” and
“Subsidiaries”: 
 (a) shall include (i) all Subsidiaries of the Original Borrower (other than those noted in
clause (b) below) and (ii) all Subsidiaries of each New Borrower; and 
 (b) shall exclude (i) all QSPEs and
(ii) all of the Abitibi Entities. 
 Unless otherwise qualified, references to “Subsidiary” or “Subsidiaries” herein shall refer to
those of the Borrower. 
 “Subsidiary Borrower” means any Domestic Subsidiary of the Borrower that is designated as a
borrower under this agreement in accordance with the terms of Section 4.14. 
 “Subsidiary Guarantors” means
each direct or indirect Material Subsidiary of the Borrower (a) in existence on the Closing Date or (b) which becomes a party to the Subsidiary Guaranty Agreement in accordance with Section 8.10. 
 “Subsidiary Guaranty Agreement” means the unconditional guaranty agreement of even date executed by the Subsidiary Guarantors in favor
of the Administrative Agent, for the ratable benefit of the Secured Parties, substantially in the form of Exhibit H, as amended, restated, supplemented or otherwise modified from time to time. 
 “Swingline Commitment” means the lesser of (a) Ten Million Dollars ($10,000,000) and (b) the Commitment. 
 “Swingline Facility” means the swingline facility established pursuant to Section 2.2. 
 “Swingline Lender” means Wachovia in its capacity as swingline lender hereunder. 
 “Swingline Loan” means any swingline loan made by the Swingline Lender to the Borrower pursuant to Section 2.2, and all such
swingline loans collectively as the context requires. 
  

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 “Swingline Note” means a promissory note made by the Borrower in favor of the Swingline
Lender evidencing the Swingline Loans made by the Swingline Lender, substantially in the form of Exhibit A-2, and any amendments, supplements and modifications thereto, any substitutes therefor, and any replacements, restatements,
renewals or extension thereof, in whole or in part. 
 “Swingline Termination Date” means the first to occur of (a) the
resignation of Wachovia as Administrative Agent in accordance with Section 12.6 and (b) the Maturity Date. 
 “Synthetic Lease” means any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product where such transaction is considered borrowed money indebtedness for tax
purposes but is classified as an Operating Lease in accordance with GAAP. 
 “Taxes” means all present or future taxes,
levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 
 “Termination Event” means except for any such event or condition that could not reasonably be expected to have a Material Adverse
Effect: (a) a “Reportable Event” described in Section 4043 of ERISA for which the notice requirement has not been waived by the PBGC, or (b) the withdrawal of the Borrower or any of its Subsidiaries or any of their ERISA
Affiliates from a Pension Plan during a plan year in which it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, or (c) the termination of a Pension Plan, the filing of a notice of intent to terminate a
Pension Plan or the treatment of a Pension Plan amendment as a termination, under Section 4041 of ERISA or similar provision of other Applicable Law, if the plan assets are not sufficient to pay all plan liabilities, or (d) the institution
of proceedings to terminate, or the appointment of a trustee with respect to, any Pension Plan by the PBGC or any other applicable Governmental Authority under other Applicable Law, or (e) any other event or condition which would constitute
grounds under Section 4042(a) of ERISA or other Applicable Law for the termination of, or the appointment of a trustee to administer, any Pension Plan, or (f) the imposition of a Lien pursuant to Section 412 of the Code or
Section 302 of ERISA or the provisions of any other Applicable Law, or (g) the partial or complete withdrawal of the Borrower or any of its Subsidiaries or of any of their ERISA Affiliates from a Multiemployer Plan if withdrawal liability
is asserted by such plan, or (h) any event or condition which results in the reorganization or insolvency of a Multiemployer Plan under Sections 4241 or 4245 of ERISA, or (i) any event or condition which results in the termination of a
Multiemployer Plan under Section 4041A of ERISA or the institution by PBGC of proceedings to terminate a Multiemployer Plan under Section 4042 of ERISA, or (j) the termination of a Canadian Pension Plan, the filing of a notice of
intent to terminate a Canadian Pension Plan or the treatment of a Canadian Pension Plan amendment as a termination, under Applicable Law, if the plan assets are not sufficient to pay all plan liabilities, or (k) the institution of proceedings
to terminate, or the appointment of a trustee with respect to, any Canadian Pension Plan by any applicable Governmental Authority under Applicable Law, or (l) any other event or condition which would constitute grounds under Applicable Law for
the termination of, or the appointment of a trustee to administer, any Canadian Pension Plan, or (m) the partial or complete withdrawal of the Borrower or any of its Subsidiaries from a Canadian Multiemployer Plan if withdrawal liability

  

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is asserted by such plan, or (n) any event or condition which results in the reorganization or insolvency of a Canadian Multiemployer Plan, or
(o) any event or condition which results in the termination of a Canadian Multiemployer Plan or the institution by any Governmental Authority of proceedings to terminate a Canadian Multiemployer Plan. 
 “Termination Value” means, in respect of any one or more Hedging Agreements, after taking into account the effect of any legally
enforceable netting agreement relating to such Hedging Agreements, (a) for any date on or after the date such Hedging Agreements have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and
(b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Hedging Agreements, as determined based upon one or more mid-market or other readily available quotations provided by
any recognized dealer in such Hedging Agreements (which may include a Lender or any Affiliate of a Lender). 
 “Third
Amendment” means that certain Third Amendment and Waiver dated as of Third Amendment Effective Date by and among the Original Borrower, the Subsidiary Guarantors and the Administrative Agent (on behalf of itself and the Lenders party
thereto). 
 “Third Amendment Effective Date” means February 25, 2008. 
 “UCC” means the Uniform Commercial Code as in effect in the State of New York, as amended or modified from time to time. 
 “United Kingdom” means the United Kingdom of Great Britain and Northern Ireland. 
 “United States” means the United States of America. 
 “Value” means, with respect to Inventory, the lower of (a) cost computed on a first-in first-out basis in accordance with GAAP or (b) market value; provided that, for purposes of the
calculation of the Borrowing Base, (i) the value of the Inventory shall not include: (A) intercompany profit or (B) write-ups or write-downs in value with respect to currency exchange rates and (ii) notwithstanding anything to
the contrary contained in this Agreement, the cost of the Inventory shall be computed in the same manner and consistent with the most recent appraisal of the Inventory received and accepted by the Administrative Agent. 
 “Wachovia” means Wachovia Bank, National Association, a national banking association, and its successors. 
 “Wholly-Owned” means, with respect to a Subsidiary, that all of the shares of Capital Stock of such Subsidiary are, directly or
indirectly, owned or controlled by the Borrower and/or one or more of its Wholly-Owned Subsidiaries (except for (a) directors’ qualifying shares or other shares required by Applicable Law to be owned by a Person other than the Borrower and
(b) the Exchangeable Shares). 
 SECTION 1.2 Other Definitions and Provisions. With reference to this Agreement and each other
Loan Document, unless otherwise specified herein or in such other Loan Document: (a) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined, (b) whenever the context may require, any
pronoun shall include the 

  

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corresponding masculine, feminine and neuter forms, (c) the words “include”, “includes” and “including” shall be deemed to
be followed by the phrase “without limitation”, (d) the word “will” shall be construed to have the same meaning and effect as the word “shall”, (e) any definition of or reference to any agreement, instrument
or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications
set forth herein), (f) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (g) the words “herein”, “hereof” and “hereunder”, and words of similar import,
shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (h) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement, (i) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including
cash, securities, accounts and contract rights, (j) the term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced,
whether in physical or electronic form, (k) in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including;” the words “to” and “until”
each mean “to but excluding;” and the word “through” means “to and including”, and (l) Section headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the
interpretation of this Agreement or any other Loan Document. 
 SECTION 1.3 Accounting Terms. All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity with GAAP as in
effect from time to time, applied on a consistent basis and in a manner consistent with that used in preparing the audited financial statements required by Section 7.1(b), except as otherwise specifically prescribed herein.

 SECTION 1.4 UCC Terms. Terms defined in the UCC in effect on the Closing Date and not otherwise defined herein shall, unless the
context otherwise indicates, have the meanings provided by those definitions. Subject to the foregoing, the term “UCC” refers, as of any date of determination, to the UCC then in effect. 
 SECTION 1.5 Rounding. Any financial ratios required to be maintained pursuant to this Agreement shall be calculated by dividing the appropriate
component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

 SECTION 1.6 References to Agreement and Laws. Unless otherwise expressly provided herein, (a) references to formation
documents, governing documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the
extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) references to any Applicable Law shall include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such Applicable Law. 
  

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 SECTION 1.7 Times of Day. Unless otherwise specified, all references herein to times of day shall
be references to Eastern time (daylight or standard, as applicable). 
 SECTION 1.8 Letter of Credit Amounts. Unless otherwise
specified, all references herein to the amount of a Letter of Credit at any time shall be deemed to mean the maximum face amount of such Letter of Credit after giving effect to all increases thereof contemplated by such Letter of Credit or the
Letter of Credit Application therefor, whether or not such maximum face amount is in effect at such time. 
 SECTION 1.9 Amount of
Obligations. Unless otherwise specified, for purposes of this Agreement, any determination of the amount of any outstanding Canadian Extensions of Credit (including, without limitation, Canadian Loans) or Canadian Obligations shall be based upon
the Dollar Amount of such outstanding Canadian Extensions of Credit (including, without limitation, Canadian Loans) or Canadian Obligations. For the purpose of this Section 1.9, “Dollar Amount” means the amount of Dollars which
is equivalent to the amount so expressed in Canadian Dollars at the most favorable spot exchange rate reasonably determined by the Administrative Agent to be available to it at the relevant time and “Canadian Dollar” means, at any
time of determination, the then official currency of Canada. 
 ARTICLE II  
 REVOLVING CREDIT FACILITY 
 SECTION 2.1 Revolving Credit Loans.
Subject to the terms and conditions of this Agreement, and in reliance upon the representations and warranties set forth herein, each Lender severally agrees to make Revolving Credit Loans to the Borrower from time to time from the Closing Date
through, but not including, the Maturity Date as requested by the Borrower in accordance with the terms of Section 2.3; provided, that (a) the aggregate principal amount of all outstanding Revolving Credit Loans (after giving
effect to any amount requested) shall not exceed the Borrowing Limit and (b) the principal amount of outstanding Revolving Credit Loans from any Lender shall not at any time exceed such Lender’s Commitment less such Lender’s
Commitment Percentage of outstanding L/C Obligations and outstanding Swingline Loans. Each Revolving Credit Loan by a Lender shall be in a principal amount equal to such Lender’s Commitment Percentage of the aggregate principal amount of
Revolving Credit Loans requested on such occasion. Subject to the terms and conditions hereof, the Borrower may borrow, repay and reborrow Revolving Credit Loans hereunder until the Maturity Date. 
 SECTION 2.2 Swingline Loans. 
 (a)
Availability. Subject to the terms and conditions of this Agreement, the Swingline Lender agrees to make Swingline Loans to the Borrower from time to time from the Closing Date through, but not including, the Swingline Termination Date;
provided, that the aggregate principal amount of all outstanding Swingline Loans (after giving effect to any amount requested), shall not exceed the lesser of (i) the Borrowing Limit and (ii) the Swingline Commitment. 
  

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 (b) Refunding. 
 (i) Swingline Loans shall be refunded by the Lenders on demand by the Swingline Lender. Such refundings shall be made by the Lenders in accordance with their respective Commitment Percentages and shall thereafter be
reflected as Revolving Credit Loans of the Lenders on the books and records of the Administrative Agent. Each Lender shall fund its respective Commitment Percentage of Revolving Credit Loans as required to repay Swingline Loans outstanding to the
Swingline Lender upon demand by the Swingline Lender but in no event later than 1:00 p.m. on the next succeeding Business Day after such demand is made. No Lender’s obligation to fund its respective Commitment Percentage of a Swingline Loan
shall be affected by any other Lender’s failure to fund its Commitment Percentage of a Swingline Loan, nor shall any Lender’s Commitment Percentage be increased as a result of any such failure of any other Lender to fund its Commitment
Percentage of a Swingline Loan. 
 (ii) The Borrower shall pay to the Swingline Lender on demand the amount of such Swingline Loans to the
extent amounts received from the Lenders are not sufficient to repay in full the outstanding Swingline Loans requested or required to be refunded. In addition, the Borrower hereby authorizes the Administrative Agent to charge any account maintained
by the Borrower with the Swingline Lender (up to the amount available therein) in order to immediately pay the Swingline Lender the amount of such Swingline Loans to the extent amounts received from the Lenders are not sufficient to repay in full
the outstanding Swingline Loans requested or required to be refunded. If any portion of any such amount paid to the Swingline Lender shall be recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of
the amount so recovered shall be ratably shared among all the Lenders in accordance with their respective Commitment Percentages (unless the amounts so recovered by or on behalf of the Borrower pertain to a Swingline Loan extended after the
occurrence and during the continuance of an Event of Default of which the Administrative Agent has received notice in the manner required pursuant to Section 12.3 and which such Event of Default has not been waived by the Required
Lenders, the Required Agreement Lenders or the Lenders, as applicable). 
 (iii) Each Lender acknowledges and agrees that its obligation to
refund Swingline Loans in accordance with the terms of this Section is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, non-satisfaction of the conditions set forth in Article
V. Further, each Lender agrees and acknowledges that if prior to the refunding of any outstanding Swingline Loans pursuant to this Section, one of the events described in Section 11.1(i) or (j) shall have occurred, each
Lender will, on the date the applicable Revolving Credit Loan would have been made, purchase an undivided participating interest in the Swingline Loan to be refunded in an amount equal to its Commitment Percentage of the aggregate amount of such
Swingline Loan. Each Lender will immediately transfer to the Swingline Lender, in immediately available funds, the amount of its participation and upon receipt thereof the Swingline Lender will deliver to such Lender a certificate evidencing such
participation dated the date of receipt of such funds and for such amount. Whenever, at any time after the Swingline Lender has received from any Lender such 

  

 45 

 
Lender’s participating interest in a Swingline Loan, the Swingline Lender receives any payment on account thereof, the Swingline Lender will distribute
to such Lender its participating interest in such amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded). 
 SECTION 2.3 Procedure for Advances of Revolving Credit Loans and Swingline Loans. 
 (a) Requests for Borrowing. The Original Borrower shall give the Administrative Agent irrevocable prior written notice substantially in the form of
Exhibit B (a “Notice of Borrowing”) not later than 12:00 p.m. (i) on the same Business Day as each Base Rate Loan (including each Swingline Loan) and (ii) at least three (3) Business Days before each
LIBOR Rate Loan, of its intention to borrow, specifying (A) the date of such borrowing, which shall be a Business Day, (B) the amount of such borrowing, which shall be, (x) with respect to Base Rate Loans (other than Swingline Loans)
in an aggregate principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof, (y) with respect to LIBOR Rate Loans in an aggregate principal amount of $3,000,000 or a whole multiple of $1,000,000 in excess thereof and
(z) with respect to Swingline Loans in an aggregate principal amount of $100,000 or a whole multiple of $100,000 in excess thereof, (C) whether such Loan is to be a Revolving Credit Loan or Swingline Loan, (D) in the case of a
Revolving Credit Loan whether the Loans are to be LIBOR Rate Loans or Base Rate Loans, and (E) in the case of a LIBOR Rate Loan, the duration of the Interest Period applicable thereto. A Notice of Borrowing received after 12:00 p.m. shall be
deemed received on the next Business Day. The Administrative Agent shall promptly notify the Lenders of each Notice of Borrowing. 
 (b)
Disbursement of Revolving Credit and Swingline Loans. Not later than 2:00 p.m. on the proposed borrowing date, (i) each Lender will make available to the Administrative Agent, for the account of the Original Borrower, at the
Administrative Agent’s Office in funds immediately available to the Administrative Agent, such Lender’s Commitment Percentage of the Revolving Credit Loans to be made on such borrowing date and (ii) the Swingline Lender will make
available to the Administrative Agent, for the account of the Original Borrower, at the Administrative Agent’s Office in funds immediately available to the Administrative Agent, the Swingline Loans to be made on such borrowing date. The
Borrower hereby irrevocably authorizes the Administrative Agent to disburse the proceeds of each borrowing requested pursuant to this Section in immediately available funds by crediting or wiring such proceeds to the deposit account of the Original
Borrower identified in the most recent notice substantially in the form of Exhibit C (a “Notice of Account Designation”) delivered by the Original Borrower to the Administrative Agent or as may be otherwise agreed upon
by the Original Borrower and the Administrative Agent from time to time. Subject to Section 4.7 hereof, the Administrative Agent shall not be obligated to disburse the portion of the proceeds of any Revolving Credit Loan requested
pursuant to this Section to the extent that any Lender has not made available to the Administrative Agent its Commitment Percentage of such Loan. Revolving Credit Loans to be made for the purpose of refunding Swingline Loans shall be made by the
Lenders as provided in Section 2.2(b). 
  

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 SECTION 2.4 Repayment and Prepayment of Revolving Credit and Swingline Loans. 
 (a) Repayment on Maturity Date. The Borrower hereby agrees to repay the outstanding principal amount of (i) all Revolving Credit Loans in full
on the Maturity Date, and (ii) all Swingline Loans in accordance with Section 2.2(b), together, in each case, with all accrued but unpaid interest thereon. 
 (b) Mandatory Prepayments. 
 (i) Borrowing Limit. If at any time the outstanding principal amount of all Revolving Credit Loans plus the sum of all outstanding Swingline Loans and L/C Obligations exceeds the Borrowing Limit, the Borrower agrees to prepay
(A) if such excess results from a change to the Asset Coverage Amount, within three (3) Business Days following the delivery of the applicable financial statements resulting in such change or (B) in any other circumstance, immediately
upon notice from the Administrative Agent, by payment to the Administrative Agent for the account of the Lenders, Extensions of Credit in an amount equal to such excess with each such repayment applied first to the principal amount of
outstanding Swingline Loans, second to the principal amount of outstanding Revolving Credit Loans and third, with respect to any Letters of Credit then outstanding, a payment of cash collateral into a cash collateral account opened by
the Administrative Agent, for the benefit of the Lenders in an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit (such cash collateral to be applied in accordance with Section 11.2(b)). 

(ii) Excess L/C Obligations. If at any time the outstanding amount of all L/C Obligations exceeds the L/C Commitment, then, in
each such case, the Borrower shall promptly make a payment of cash collateral into a cash collateral account opened by the Administrative Agent, for the benefit of itself and the Lenders, in an amount equal to the aggregate then undrawn and
unexpired amount of such Letters of Credit (such cash collateral to be applied in accordance with Section 11.2(b)). 
 (c)
Optional Prepayments. The Borrower may at any time and from time to time prepay Revolving Credit Loans and Swingline Loans, in whole or in part, with irrevocable prior written notice to the Administrative Agent substantially in the form of
Exhibit D (a “Notice of Prepayment”) given not later than 12:00 p.m. (i) on the same Business Day as the prepayment of each Base Rate Loan and each Swingline Loan and (ii) at least three
(3) Business Days before the prepayment of each LIBOR Rate Loan, specifying the date and amount of prepayment and whether the prepayment is of LIBOR Rate Loans, Base Rate Loans, Swingline Loans or a combination thereof, and, if of a combination
thereof, the amount allocable to each. Upon receipt of such notice, the Administrative Agent shall promptly notify each Lender. If any such notice is given, the amount specified in such notice shall be due and payable on the date set forth in such
notice. Partial prepayments shall be in an aggregate amount of $1,000,000 or a whole multiple of $500,000 in excess thereof with respect to Base Rate Loans (other than Swingline Loans), $3,000,000 or a whole multiple of $1,000,000 in excess thereof
with respect to LIBOR Rate Loans and $100,000 or a whole multiple of $100,000 in excess thereof with respect to Swingline Loans. A Notice of Prepayment received after 12:00 p.m. shall be deemed received on the next Business Day 
  

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 (d) Limitation on Prepayment of LIBOR Rate Loans. The Borrower may not prepay any LIBOR Rate Loan
on any day other than on the last day of the Interest Period applicable thereto unless such prepayment is accompanied by any amount required to be paid pursuant to Section 4.9 hereof. 
 (e) Hedging Agreements. No repayment or prepayment pursuant to this Section shall affect any of the Borrower’s obligations under any Hedging
Agreement. 
 SECTION 2.5 Permanent Reduction of the Commitment. 
 (a) Voluntary Reduction. The Borrower shall have the right at any time and from time to time, upon at least five (5) Business Days prior
written notice to the Administrative Agent, to permanently reduce, without premium or penalty, (i) the entire Commitment at any time or (ii) portions of the Commitment, from time to time, in an aggregate principal amount not less than
$5,000,000 or any whole multiple of $5,000,000 in excess thereof. Any reduction of the Commitment shall be applied to the Commitment of each Lender according to its Commitment Percentage. All commitment fees accrued until the effective date of any
termination of the Commitment shall be paid on the effective date of such termination. 
 (b) Corresponding Payment. Each permanent
reduction permitted or required pursuant to this Section or Section 8.2(b) shall be accompanied by a payment of principal sufficient to reduce the aggregate outstanding Revolving Credit Loans, Swingline Loans and L/C Obligations, as
applicable, after such reduction to the Commitment as so reduced and if the Commitment as so reduced is less than the aggregate amount of all outstanding Letters of Credit, the Borrower shall be required to deposit cash collateral in a cash
collateral account opened by the Administrative Agent in an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit. Such cash collateral shall be applied in accordance with Section 11.2(b). Any
reduction of the Commitment to zero shall be accompanied by payment of all outstanding Revolving Credit Loans and Swingline Loans (and furnishing of cash collateral for all L/C Obligations) and shall result in the termination of the Commitment and
the Credit Facility. Such cash collateral shall be applied in accordance with Section 11.2(b). If the reduction of the Commitment requires the repayment of any LIBOR Rate Loan, such repayment shall be accompanied by any amount required
to be paid pursuant to Section 4.9 hereof. 
 SECTION 2.6 Termination of Credit Facility. The Credit Facility shall
terminate on the Maturity Date. 
 ARTICLE III  
 LETTER OF CREDIT FACILITY 
 SECTION 3.1 L/C Commitment. Subject to the terms and conditions
hereof, each Issuing Lender, in reliance on the agreements of the other Lenders set forth in Section 3.4(a), agrees to issue standby letters of credit (“Letters of Credit”) for the account of the 

  

 48 

 
Borrower on any Business Day from the Closing Date to but not including the fifth (5th) Business Day prior to the Maturity Date in such form as may be approved from time to time by the applicable Issuing Lender; provided, that no Issuing Lender shall have any obligation to issue any Letter
of Credit if, after giving effect to such issuance, (a) the aggregate amount of L/C Obligations would exceed the L/C Commitment or (b) the aggregate amount of L/C Obligations would exceed the Borrowing Limit. Each Letter of Credit shall
(i) be denominated in Dollars in a minimum amount of $100,000 (or such lesser amount as agreed to by the applicable Issuing Lender), (ii) be a standby letter of credit issued to support obligations of the Borrower or any of its
Subsidiaries, contingent or otherwise, (iii) expire on a date that is no later than the earlier of (A) twelve (12) or thirteen (13) months (as requested by the Original Borrower) after the date of issuance or last renewal of such
Letter of Credit, and (B) the fifth (5th) Business Day prior to the Maturity Date and (iv) be subject to ISP98 and, to the extent not
inconsistent therewith, the laws of the State of New York. No Issuing Lender shall at any time be obligated to issue any Letter of Credit hereunder if such issuance would conflict with, or cause such Issuing Lender or any L/C Participant to exceed
any limits imposed by, any Applicable Law. References herein to “issue” and derivations thereof with respect to Letters of Credit shall also include extensions or modifications of any outstanding Letters of Credit, unless the context
otherwise requires. As of the Closing Date, each of the Existing Letters of Credit shall constitute, for all purposes of this Agreement and the other Loan Documents, a Letter of Credit issued and outstanding hereunder. 
 SECTION 3.2 Procedure for Issuance of Letters of Credit. The Borrower may from time to time request that an Issuing Lender issue a Letter of
Credit by delivering to such Issuing Lender at such Issuing Lender’s Lending Office and to the Administrative Agent at the Administrative Agent’s Office a Letter of Credit Application therefor, completed to the reasonable satisfaction of
the applicable Issuing Lender and the Administrative Agent, and such other certificates, documents and other papers and information as such Issuing Lender and the Administrative Agent may reasonably request (the “L/C Supporting
Documentation”). Upon receipt of any Letter of Credit Application and the L/C Supporting Documentation, the applicable Issuing Lender shall process such Letter of Credit Application and the L/C Supporting Documentation delivered to it in
connection therewith in accordance with its customary procedures and shall, after approving the same and receiving confirmation from the Administrative Agent that sufficient availability exists under the Credit Facility for the issuance of such
Letter of Credit, subject to Section 3.1 and Article V, promptly issue the Letter of Credit requested thereby (but in no event shall the applicable Issuing Lender be required to issue any Letter of Credit earlier than three
(3) Business Days after its receipt of the Letter of Credit Application therefor and the L/C Supporting Documentation relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed by
the applicable Issuing Lender and the Original Borrower. The applicable Issuing Lender shall promptly furnish to the Original Borrower and the Administrative Agent a copy of such Letter of Credit and the Administrative Agent shall promptly notify
each Lender of the issuance of such Letter of Credit and, upon request by any Lender, furnish to such Lender a copy of such Letter of Credit and the amount of such Lender’s participation therein. 
 SECTION 3.3 Commissions and Other Charges. 
 (a) Letter of Credit Commissions. The Borrower shall pay to the Administrative Agent, for the account of the each applicable Issuing Lender and the L/C Participants, a letter of 

  

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credit commission with respect to each Letter of Credit in an amount equal to the face amount of such Letter of Credit (as such amount may be reduced by
(i) any permanent reduction of such Letter of Credit or (ii) any amount which is drawn, reimbursed and no longer available under such Letter of Credit) multiplied by the Applicable Margin with respect to LIBOR Rate Loans (determined
on a per annum basis). Such commission shall be payable quarterly in arrears on the last Business Day of each calendar quarter, on the Maturity Date and thereafter on demand of the Administrative Agent. The Administrative Agent shall, promptly
following its receipt thereof, distribute to each applicable Issuing Lender and the L/C Participants all commissions received pursuant to this Section in accordance with their respective Commitment Percentages. 
 (b) Issuance Fee. In addition to the foregoing commission, the Borrower shall pay to the Administrative Agent, for the account of each applicable
Issuing Lender, an issuance fee with respect to each Letter of Credit issued by such Issuing Lender in an amount equal to the face amount of such Letter of Credit multiplied by one-eighth of one percent (0.125%) per annum. Such issuance fee
shall be payable quarterly in arrears on the last Business Day of each calendar quarter commencing with the first such date to occur after the issuance of such Letter of Credit, on the Maturity Date and thereafter on demand of the applicable Issuing
Lender. 
 (c) Other Costs. In addition to the foregoing fees and commissions, the Borrower shall pay or reimburse each Issuing Lender
for such normal and customary costs and expenses as are incurred or charged by such Issuing Lender in issuing, effecting payment under, amending or otherwise administering any Letter of Credit. 
 SECTION 3.4 L/C Participations. 
 (a)
Each Issuing Lender irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce such Issuing Lender to issue Letters of Credit hereunder, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and
purchases from such Issuing Lender, on the terms and conditions hereinafter stated, for such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s Commitment Percentage in such Issuing Lender’s
obligations and rights under and in respect of each Letter of Credit issued by such Issuing Lender hereunder and the amount of each draft paid by such Issuing Lender thereunder. Each L/C Participant unconditionally and irrevocably agrees with each
Issuing Lender that, if a draft is paid under any Letter of Credit issued by such Issuing Lender for which such Issuing Lender is not reimbursed in full by the Borrower through a Revolving Credit Loan or otherwise in accordance with the terms of
this Agreement, such L/C Participant shall pay to such Issuing Lender upon demand at such Issuing Lender’s Lending Office an amount equal to such L/C Participant’s Commitment Percentage of the amount of such draft, or any part thereof,
which is not so reimbursed. 
 (b) Upon becoming aware of any amount required to be paid by any L/C Participant to the applicable Issuing
Lender pursuant to Section 3.4(a) in respect of any unreimbursed portion of any payment made by such Issuing Lender under any Letter of Credit issued by it, such Issuing Lender shall notify the Administrative Agent and each L/C
Participant of the amount and due date of such required payment and such L/C Participant shall pay to such Issuing Lender the amount specified on the applicable due date. If any such amount is paid to such Issuing Lender after the date such payment
is due, such L/C Participant shall pay to such Issuing 

  

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Lender on demand, in addition to such amount, the product of (i) such amount, multiplied by (ii) the daily average Federal Funds Rate as
determined by the Administrative Agent during the period from and including the date such payment is due to the date on which such payment is immediately available to such Issuing Lender, multiplied by (iii) a fraction, the numerator of
which is the number of days that elapse during such period and the denominator of which is 360. A certificate of the applicable Issuing Lender with respect to any amounts owing under this Section shall be conclusive in the absence of manifest error.
With respect to payment to an Issuing Lender of the unreimbursed amounts described in this Section, if the L/C Participants receive notice that any such payment is due (A) prior to 2:00 p.m. on any Business Day, such payment shall be due that
Business Day, and (B) after 2:00 p.m. on any Business Day, such payment shall be due on the following Business Day. 
 (c) Whenever, at
any time after the applicable Issuing Lender has made payment under any Letter of Credit and has received from any L/C Participant its Commitment Percentage of such payment in accordance with this Section, such Issuing Lender receives any payment
related to such Letter of Credit (whether directly from the Borrower or otherwise), or any payment of interest on account thereof, such Issuing Lender will distribute to such L/C Participant its pro rata share thereof; provided,
that in the event that any such payment received by such Issuing Lender shall be required to be returned by such Issuing Lender, such L/C Participant shall return to such Issuing Lender the portion thereof previously distributed by such Issuing
Lender to it. 
 SECTION 3.5 Reimbursement Obligation of the Borrower. In the event of any drawing under any Letter of Credit, the
Borrower agrees to reimburse (either with the proceeds of a Revolving Credit Loan as provided for in this Section or with funds from other sources), in same day funds, the applicable Issuing Lender on each date on which such Issuing Lender notifies
the Original Borrower of the date and amount of a draft paid under any Letter of Credit for the amount of (a) such draft so paid and (b) any amounts referred to in Section 3.3(c) incurred by such Issuing Lender in connection
with such payment. The applicable Issuing Lender shall promptly deliver written notice of any drawing under any Letter of Credit issued by such Issuing Lender to the Administrative Agent and the Original Borrower. Unless the Borrower shall
immediately notify the applicable Issuing Lender that the Borrower intends to reimburse such Issuing Lender for such drawing from other sources or funds, the Borrower shall be deemed to have timely given a Notice of Borrowing to the Administrative
Agent requesting that the Lenders make a Revolving Credit Loan bearing interest at the Base Rate on such date in the amount of (a) such draft so paid and (b) any amounts referred to in Section 3.3(c) incurred by such Issuing
Lender in connection with such payment, and the Lenders shall make a Revolving Credit Loan bearing interest at the Base Rate in such amount, the proceeds of which shall be applied to reimburse such Issuing Lender for the amount of the related
drawing and costs and expenses. Each Lender acknowledges and agrees that its obligation to fund a Revolving Credit Loan in accordance with this Section to reimburse the applicable Issuing Lender for any draft paid under a Letter of Credit is
absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, non-satisfaction of the conditions set forth in Section 2.3(a) or Article V. If the Borrower has elected to pay
the amount of such drawing with funds from other sources and shall fail to reimburse the applicable Issuing Lender as provided above, the unreimbursed amount of such drawing shall bear interest at the rate which would be payable on any outstanding
Base Rate Loans which were then overdue from the date such amounts become payable (whether at stated maturity, by acceleration or otherwise) until payment in full. 
  

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 SECTION 3.6 Obligations Absolute. The Borrower’s obligations under this Article III
(including, without limitation, the Reimbursement Obligation) shall be absolute and unconditional under any and all circumstances and irrespective of any set-off, counterclaim or defense to payment which the Borrower may have or have had against any
Issuing Lender or any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees that no Issuing Lender nor any L/C Participant shall be responsible for, and the Borrower’s Reimbursement Obligation under
Section 3.5 shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between
or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee.
No Issuing Lender shall be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions caused by
the applicable Issuing Lender’s gross negligence or willful misconduct, as determined by a court of competent jurisdiction by final nonappealable judgment. The Borrower agrees that any action taken or omitted by the applicable Issuing Lender
under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful misconduct shall be binding on the Borrower and shall not result in any liability of such Issuing Lender or
any L/C Participant to the Borrower. The responsibility of the applicable Issuing Lender to the Borrower in connection with any draft presented for payment under any Letter of Credit shall, in addition to any payment obligation expressly provided
for in such Letter of Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment are in conformity with such Letter of Credit. 
 SECTION 3.7 Effect of Letter of Credit Application. To the extent that any provision of any Letter of Credit Application or L/C Supporting
Documentation related to any Letter of Credit is inconsistent with the provisions of this Article III, the provisions of this Article III shall apply. 
 ARTICLE IV  
 GENERAL LOAN PROVISIONS 
 SECTION 4.1 Interest. 
 (a)
Interest Rate Options. Subject to the provisions of this Section, at the election of the Original Borrower, (i) Revolving Credit Loans shall bear interest at (A) the Base Rate plus the Applicable Margin or (B) the LIBOR
Rate plus the Applicable Margin and (ii) Swingline Loans shall bear interest at the Base Rate plus the Applicable Margin. The Original Borrower shall select the rate of interest and Interest Period, if any, applicable to any
Revolving Credit Loan at the time a Notice of Borrowing is given pursuant to Section 2.3 or at the time a Notice of 

  

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Conversion/Continuation is given pursuant to Section 4.2. Any Revolving Credit Loan or any portion thereof as to which the Original Borrower has
not duly specified an interest rate as provided herein shall be deemed a Base Rate Loan. 
 (b) Interest Periods. In connection with
each LIBOR Rate Loan, the Original Borrower, by giving notice at the times described in Section 2.3 or 4.2, as applicable, shall elect an interest period (each, an “Interest Period”) to be applicable to such
Revolving Credit Loan, which Interest Period shall be a period of one (1), two (2), three (3), or six (6) months; provided that: 
 (i) the Interest Period shall commence on the date of advance of or conversion to any LIBOR Rate Loan and, in the case of immediately successive Interest Periods, each successive Interest Period shall commence on the
date on which the immediately preceding Interest Period expires; 
 (ii) if any Interest Period would otherwise expire on a
day that is not a Business Day, such Interest Period shall expire on the next succeeding Business Day; provided, that if any Interest Period with respect to a LIBOR Rate Loan would otherwise expire on a day that is not a Business Day but is a
day of the month after which no further Business Day occurs in such month, such Interest Period shall expire on the immediately preceding Business Day; 
 (iii) any Interest Period with respect to a LIBOR Rate Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of
such Interest Period) shall end on the last Business Day of the relevant calendar month at the end of such Interest Period; 
 (iv) no Interest Period shall extend beyond the Maturity Date; and 
 (v) there shall be no more than eight
(8) Interest Periods in effect at any time. 
 (c) Default Rate. Subject to Section 11.3, (i) immediately upon
the occurrence and during the continuance of an Event of Default under Section 11.1(a), (b), (i) or (j), or (ii) at the election of the Required Agreement Lenders, upon the occurrence and during the
continuance of any other Event of Default, (A) the Borrower shall no longer have the option to request LIBOR Rate Loans, Swingline Loans or Letters of Credit, (B) all outstanding LIBOR Rate Loans shall bear interest at a rate per annum of
two percent (2%) in excess of the rate then applicable to LIBOR Rate Loans until the end of the applicable Interest Period and thereafter at a rate equal to two percent (2%) in excess of the rate then applicable to Base Rate Loans, and
(C) all outstanding Base Rate Loans and other Obligations arising hereunder or under any other Loan Document shall bear interest at a rate per annum equal to two percent (2%) in excess of the rate then applicable to Base Rate Loans.
Interest shall continue to accrue on the Obligations after the filing by or against the Borrower of any petition seeking any relief in bankruptcy or under any act or law pertaining to insolvency or debtor relief, whether state, federal or foreign.

 (d) Interest Payment and Computation. Interest on each Base Rate Loan shall be due and payable in arrears on the last Business Day
of each calendar quarter commencing September 30, 2006; and interest on each LIBOR Rate Loan shall be due and payable on the last day of each 

  

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Interest Period applicable thereto, and if such Interest Period extends over three (3) months, at the end of each three (3) month interval during
such Interest Period. Interest on LIBOR Rate Loans and all fees payable hereunder shall be computed on the basis of a 360-day year and assessed for the actual number of days elapsed and interest on Base Rate Loans shall be computed on the basis of a
365/366-day year and assessed for the actual number of days elapsed. 
 (e) Maximum Rate. In no contingency or event whatsoever shall
the aggregate of all amounts deemed interest under this Agreement charged or collected pursuant to the terms of this Agreement exceed the highest rate permissible under any Applicable Law which a court of competent jurisdiction shall, in a final
determination, deem applicable hereto. In the event that such a court determines that the Lenders have charged or received interest hereunder in excess of the highest applicable rate, the rate in effect hereunder shall automatically be reduced to
the maximum rate permitted by Applicable Law and the Lenders shall at the Administrative Agent’s option (i) promptly refund to the Original Borrower any interest received by the Lenders in excess of the maximum lawful rate or
(ii) apply such excess to the principal balance of the Obligations on a pro rata basis. It is the intent hereof that the Borrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender receive or contract to
receive, directly or indirectly in any manner whatsoever, interest in excess of that which may be paid by the Borrower under Applicable Law. 
 SECTION 4.2 Notice and Manner of Conversion or Continuation of Loans. Provided that no Default or Event of Default has occurred and is then continuing, the Borrower shall have the option to (a) convert all or any portion of any
outstanding Base Rate Loans (other than Swingline Loans) in a principal amount equal to $3,000,000 or any whole multiple of $1,000,000 in excess thereof into one or more LIBOR Rate Loans and (b) upon the expiration of any Interest Period,
(i) convert all or any part of its outstanding LIBOR Rate Loans in a principal amount equal to $1,000,000 or a whole multiple of $500,000 in excess thereof into Base Rate Loans (other than Swingline Loans) or (ii) continue such LIBOR Rate
Loans as LIBOR Rate Loans. Whenever the Borrower desires to convert or continue Revolving Credit Loans as provided above, the Original Borrower shall give the Administrative Agent irrevocable prior written notice in the form attached as
Exhibit E (a “Notice of Conversion/Continuation”) not later than 12:00 p.m. three (3) Business Days before the day on which a proposed conversion or continuation of such Loan is to be effective specifying
(A) the Loans to be converted or continued, and, in the case of any LIBOR Rate Loan to be converted or continued, the last day of the Interest Period therefor, (B) the effective date of such conversion or continuation (which shall be a
Business Day), (C) the principal amount of such Loans to be converted or continued, and (D) the Interest Period to be applicable to such converted or continued LIBOR Rate Loan. The Administrative Agent shall promptly notify the Lenders of
such Notice of Conversion/Continuation. 
 SECTION 4.3 Fees. 
 (a) Commitment Fee. The Borrower shall pay to the Administrative Agent, for the account of the Lenders, a non-refundable commitment fee at a rate
per annum equal to 0.50% on the average daily unused portion of the Commitment as in effect from time to time during the period commencing on the Closing Date and ending on the Maturity Date; provided, that the amount of outstanding Swingline
Loans shall not be considered usage of the Commitment for the 

  

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purpose of calculating such commitment fee. The commitment fee shall be payable for each calendar quarter in arrears on the last Business Day of such
calendar quarter during the term of this Agreement commencing with the calendar quarter ending September 30, 2006 and ending on the Maturity Date. Such commitment fee shall be distributed by the Administrative Agent to the Lenders pro
rata in accordance with the Lenders’ respective Commitment Percentages. 
 (b) Other Fees. The Borrower agrees to pay any
fees (and other expenses) as set forth in the Fee Letter. 
 SECTION 4.4 Manner of Payment. Each payment by the Borrower on account of
the principal of or interest on the Loans or of any fee, commission or other amounts (including the Reimbursement Obligation) payable to the Lenders under this Agreement shall be made not later than 2:00 p.m. on the date specified for payment under
this Agreement to the Administrative Agent at the Administrative Agent’s Office for the account of the Lenders (other than as set forth below) pro rata in accordance with their respective Commitment Percentages, (except as specified
below), in Dollars, in immediately available funds and shall be made without any set-off, counterclaim or deduction whatsoever. Any payment received after such time but before 3:00 p.m. on such day shall be deemed a payment on such date for the
purposes of Section 11.1, but for all other purposes shall be deemed to have been made on the next succeeding Business Day. Any payment received after 3:00 p.m. shall be deemed to have been made on the next succeeding Business Day for
all purposes. Upon receipt by the Administrative Agent of each such payment, the Administrative Agent shall distribute to each Lender at its Lending Office its pro rata share of such payment in accordance with such Lender’s Commitment
Percentage, (except as specified below) and shall wire advice of the amount of such credit to each Lender. Each payment to the Administrative Agent of the applicable Issuing Lender’s fees or L/C Participants’ commissions shall be made in
like manner, but for the account of the applicable Issuing Lender or the L/C Participants, as the case may be. Each payment to the Administrative Agent of Administrative Agent’s fees or expenses shall be made for the account of the
Administrative Agent and any amount payable to any Lender under Sections 4.9, 4.10, 4.11 or 13.3 shall be paid to the Administrative Agent for the account of the applicable Lender. Subject to
Section 4.1(b)(ii), if any payment under this Agreement shall be specified to be made upon a day which is not a Business Day, it shall be made on the next succeeding day which is a Business Day and such extension of time shall in such
case be included in computing any interest if payable along with such payment. 
 SECTION 4.5 Evidence of Indebtedness. 
 (a) Extensions of Credit. The Extensions of Credit made by each Lender shall be evidenced by one or more accounts or records maintained by such
Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Extensions of Credit made by the
Lenders to the Borrower and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the
Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall
control in the absence of manifest 

  

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error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the
Administrative Agent) a Revolving Credit Note and/or Swingline Note, as applicable, which shall evidence such Lender’s Revolving Credit Loans and/or Swingline Loans, as applicable, in addition to such accounts or records. Each Lender may attach
schedules to its Notes and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto. 
 (b)
Participations. In addition to the accounts and records referred to in subsection (a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts or records evidencing the purchases and sales by
such Lender of participations in Letters of Credit and Swingline Loans. In the event of any conflict between the accounts and records maintained by the Administrative Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error. 
 SECTION 4.6 Adjustments. If any
Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Loans or other obligations hereunder resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations (other than pursuant to Sections 4.9, 4.10, 4.11 or 13.3 hereof) greater than its pro rata share thereof as
provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other
Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and
other amounts owing them; provided that: 
 (i) if any such participations are purchased and all or any portion of the
payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and 
 (ii) the provisions of this paragraph shall not be construed to apply to (A) any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in Swingline Loans and Letters of Credit to any
assignee or participant, other than to the Borrower or any of its Subsidiaries (as to which the provisions of this paragraph shall apply). 
 Each Credit
Party consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against each Credit Party rights of setoff and
counterclaim with respect to such participation as fully as if such Lender were a direct creditor of each Credit Party in the amount of such participation. 
 SECTION 4.7 Nature of Obligations of Lenders Regarding Extensions of Credit; Assumption by the Administrative Agent. The obligations of the Lenders under this Agreement to make the Loans and issue or
participate in Letters of Credit are several and are not joint or 

  

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joint and several. Unless the Administrative Agent shall have received notice from a Lender prior to a proposed borrowing date with respect to a LIBOR Rate
Loan or prior to 12:00 noon on a proposed borrowing date with respect to a Base Rate Loan that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of the amount to be borrowed on such date (which notice
shall not release such Lender of its obligations hereunder), the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the proposed borrowing date in accordance with Sections 2.3(b),
and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If such amount is made available to the Administrative Agent on a date after such borrowing date, such Lender
shall pay to the Administrative Agent on demand an amount, until paid, equal to the product of (a) the amount not made available by such Lender in accordance with the terms hereof, multiplied by (b) the daily average Federal Funds
Rate during such period as determined by the Administrative Agent, multiplied by (c) a fraction, the numerator of which is the number of days that elapse from and including such borrowing date to the date on which such amount not made
available by such Lender in accordance with the terms hereof shall have become immediately available to the Administrative Agent, and the denominator of which is 360. A certificate of the Administrative Agent with respect to any amounts owing under
this Section shall be conclusive, absent manifest error. If such Lender’s Commitment Percentage of such borrowing is not made available to the Administrative Agent by such Lender within three (3) Business Days after such borrowing date,
the Administrative Agent shall be entitled to recover such amount made available by the Administrative Agent with interest thereon at the rate per annum applicable to Base Rate Loans hereunder, on demand, from the Borrower. The failure of any Lender
to make available its Commitment Percentage of any Loan requested by the Borrower shall not relieve it or any other Lender of its obligation, if any, hereunder to make its Commitment Percentage of such Loan available on the borrowing date, but no
Lender shall be responsible for the failure of any other Lender to make its Commitment Percentage of such Loan available on the borrowing date. 
 SECTION 4.8 Changed Circumstances. 
 (a) Circumstances Affecting LIBOR Rate Availability. If with respect to any
Interest Period the Administrative Agent or any Lender (after consultation with the Administrative Agent) shall determine that, by reason of circumstances affecting the foreign exchange and interbank markets generally, deposits in eurodollars, in
the applicable amounts are not being quoted via the Reuters Page LIBOR01 (or any successor page) or offered to the Administrative Agent or such Lender for such Interest Period, then the Administrative Agent shall forthwith give notice thereof to the
Original Borrower. Thereafter, until the Administrative Agent notifies the Original Borrower that such circumstances no longer exist, the obligation of the Lenders to make LIBOR Rate Loans and the right of the Borrower to convert any Loan to or
continue any Loan as a LIBOR Rate Loan shall be suspended, and the Borrower shall repay in full (or cause to be repaid in full) the then outstanding principal amount of each such LIBOR Rate Loan together with accrued interest thereon, on the last
day of the then current Interest Period applicable to such LIBOR Rate Loan or convert the then outstanding principal amount of each such LIBOR Rate Loan to a Base Rate Loan as of the last day of such Interest Period. 
 (b) Laws Affecting LIBOR Rate Availability. If, after the date hereof, the introduction of, or any change in, any Applicable Law or any change in
the interpretation or 

  

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administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or
compliance by any of the Lenders (or any of their respective Lending Offices) with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful or
impossible for any of the Lenders (or any of their respective Lending Offices) to honor its obligations hereunder to make or maintain any LIBOR Rate Loan, such Lender shall promptly give notice thereof to the Administrative Agent and the
Administrative Agent shall promptly give notice to the Original Borrower and the other Lenders. Thereafter, until the Administrative Agent notifies the Original Borrower that such circumstances no longer exist, (a) the obligations of the
Lenders to make LIBOR Rate Loans and the right of the Borrower to convert any Loan or continue any Loan as a LIBOR Rate Loan shall be suspended and thereafter the Borrower may select only Base Rate Loans hereunder, and (b) if any of the Lenders
may not lawfully continue to maintain a LIBOR Rate Loan to the end of the then current Interest Period applicable thereto as a LIBOR Rate Loan, the applicable LIBOR Rate Loan shall immediately be converted to a Base Rate Loan for the remainder of
such Interest Period. 
 SECTION 4.9 Indemnity. The Borrower hereby indemnifies each of the Lenders against any loss or expense which
may arise or be attributable to each Lender’s obtaining, liquidating or employing deposits or other funds acquired to effect, fund or maintain any Loan (a) as a consequence of any failure by the Borrower to make any payment when due of any
amount due hereunder in connection with a LIBOR Rate Loan, (b) due to any failure of the Borrower to borrow, continue or convert on a date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation or (c) due to any
payment, prepayment or conversion of any LIBOR Rate Loan on a date other than the last day of the Interest Period therefor. The amount of such loss or expense shall be determined, in the applicable Lender’s sole discretion, based upon the
assumption that such Lender funded its Commitment Percentage of the LIBOR Rate Loans in the London interbank market and using any reasonable attribution or averaging methods which such Lender deems appropriate and practical. A certificate of such
Lender setting forth the basis for determining such amount or amounts necessary to compensate such Lender shall be forwarded to the Original Borrower through the Administrative Agent and shall be conclusively presumed to be correct save for manifest
error. 
 SECTION 4.10 Increased Costs. 
 (a) Increased Costs Generally. If any Change in Law shall: 
 (i) impose, modify or
deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, any Lender (except any
reserve requirement reflected in the LIBOR Rate) or an Issuing Lender; 
 (ii) subject any Lender or any Issuing Lender to any
tax of any kind whatsoever with respect to this Agreement, any Letter of Credit, any participation in a Letter of Credit or any LIBOR Rate Loan made by it, or change the basis of taxation of payments to such Lender or such Issuing Lender in respect
thereof (except for Indemnified Taxes or Other Taxes covered by Section 4.11 and the imposition of, or any change in the rate of any Excluded Taxes payable by such Lender or such Issuing Lender); or 
  

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 (iii) impose on any Lender or any Issuing Lender or the London interbank market any other
condition, cost or expense affecting this Agreement or LIBOR Rate Loans made by such Lender or any Letter of Credit or participation therein; 
 and the
result of any of the foregoing shall be to increase the cost to such Lender of making, converting into or maintaining any LIBOR Rate Loan (or of maintaining its obligation to make any such Loan), or to increase the cost to such Lender or such
Issuing Lender of participating in, issuing or maintaining any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by such Lender or such
Issuing Lender hereunder (whether of principal, interest or any other amount) then, upon written request of such Lender or such Issuing Lender, the Borrower shall promptly pay to any such Lender or such Issuing Lender, as the case may be, such
additional amount or amounts as will compensate such Lender or such Issuing Lender, as the case may be, for such additional costs incurred or reduction suffered. 
 (b) Capital Requirements. If any Lender or any Issuing Lender determines that any Change in Law affecting such Lender or such Issuing Lender or any lending office of such Lender or such Issuing Lender or such
Lender’s or such Issuing Lender’s holding company, if any, regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s or such Issuing Lender’s capital or on the capital of such
Lender’s or such Issuing Lender’s holding company, if any, as a consequence of this Agreement, the Commitment of such Lender or the Loans made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued
by such Issuing Lender, to a level below that which such Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s
or such Issuing Lender’s policies and the policies of such Lender’s or such Issuing Lender’s holding company with respect to capital adequacy), then from time to time upon written request of such Lender or such Issuing Lender the
Borrower shall promptly pay to such Lender or such Issuing Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuing Lender or such Lender’s or such Issuing Lender’s holding company for
any such reduction suffered. 
 (c) Certificates for Reimbursement. A certificate of a Lender or an Issuing Lender setting forth the
amount or amounts necessary to compensate such Lender or such Issuing Lender or its holding company, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Original Borrower shall be conclusive absent
manifest error. The Borrower shall pay such Lender or such Issuing Lender, as the case may be, the amount shown as due on any such certificate within ten (10) days after receipt thereof. 
 (d) Delay in Requests. Failure or delay on the part of any Lender or any Issuing Lender to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender’s or such Issuing Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender or an Issuing Lender pursuant to this Section for any increased
costs incurred or reductions suffered more than nine (9) months prior 

  

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to the date that such Lender or such Issuing Lender, as the case may be, notifies the Original Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s or such Issuing Lender’s intention to claim compensation therefor (except that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period
referred to above shall be extended to include the period of retroactive effect thereof). 
 SECTION 4.11 Taxes. 
 (a) Payments Free of Taxes. Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document
shall be made free and clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes; provided that if the Borrower shall be required by Applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from
such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or Issuing
Lender, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall timely pay the full amount deducted to the
relevant Governmental Authority in accordance with Applicable Law. 
 (b) Payment of Other Taxes by the Borrower. Without limiting the
provisions of paragraph (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental Authority in accordance with Applicable Law. 
 (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative Agent, each Lender and each Issuing Lender, within ten (10) days after demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid by the Administrative Agent, such Lender or such Issuing Lender, as the case may be, and
any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of such payment or liability delivered to the Original Borrower by a Lender or an Issuing Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Lender or an Issuing Lender,
shall be conclusive absent manifest error. 
 (d) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes
or Other Taxes by the Borrower to a Governmental Authority, the Original Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the
return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
 (e) Status of
Lenders. Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident for tax purposes, or any treaty to which such jurisdiction is a party, with
respect to payments hereunder or under any other Loan Document shall deliver to the Original Borrower (with a copy 

  

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to the Administrative Agent), at the time or times prescribed by Applicable Law or reasonably requested by the Original Borrower or the Administrative Agent,
such properly completed and executed documentation prescribed by Applicable Law as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if requested by the Original Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Original Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or
not such Lender is subject to backup withholding or information reporting requirements. Without limiting the generality of the foregoing, in the event that the Borrower is a resident for tax purposes in the United States, any Foreign Lender shall
deliver to the Original Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time
thereafter upon the request of the Original Borrower or the Administrative Agent, but only if such Foreign Lender is legally entitled to do so), whichever of the following is applicable: 
 (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the
United States is a party, 
 (ii) duly completed copies of Internal Revenue Service Form W-8ECI, 
 (iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code,
(x) a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) duly completed copies of Internal Revenue Service Form W-8BEN, or 
 (iv) any other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in United States Federal
withholding tax duly completed together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower to determine the withholding or deduction required to be made. 
 (f) Treatment of Certain Refunds. If the Administrative Agent, a Lender or an Issuing Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section, it shall pay to the Borrower an amount equal to such refund
(but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent,
such Lender or such Issuing Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the Borrower, upon the request of the Administrative
Agent, such Lender or such Issuing Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other 

  

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charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or such Issuing Lender in the event the Administrative
Agent, such Lender or such Issuing Lender is required to repay such refund to such Governmental Authority. This paragraph shall not be construed to require the Administrative Agent, any Lender or any Issuing Lender to make available its tax returns
(or any other information relating to its taxes which it deems confidential) to the Borrower or any other Person. 
 (g) Survival.
Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section shall survive the payment in full of the Obligations and the termination of the Commitment.

 SECTION 4.12 Mitigation Obligations; Replacement of Lenders. 
 (a) Designation of a Different Lending Office. If any Lender requests compensation under Section 4.10, or requires the Borrower to pay
any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 4.11, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its
Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to
Section 4.10 or Section 4.11, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 
 (b)
Replacement of Lenders. If any Lender requests compensation under Section 4.10, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 4.11, or if any Lender defaults in its obligation to fund Loans hereunder, or if any Lender notifies the Administrative Agent and the Original Borrower pursuant to Section 10.13 that it may not legally do business
with a Borrower or Subsidiary Borrower incorporated, organized or formed in a Restricted Jurisdiction, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and
delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 13.10), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an
assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that: 
 (i) the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 13.10; 
 (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and participations in Letters of Credit, accrued interest thereon, accrued fees and all other amounts payable
to it hereunder and under the other Loan Documents (including any amounts under Section 4.9) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other
amounts); 
  

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 (iii) in the case of any such assignment resulting from a claim for compensation under
Section 4.10 or payments required to be made pursuant to Section 4.11, such assignment will result in a reduction in such compensation or payments thereafter; 
 (iv) in the case of any assignment resulting from a claim that a Lender may not legally do business with a Borrower or a Subsidiary
Borrower incorporated, organized or formed in a Restricted Jurisdiction, such new Lender may legally do business with a Borrower or a Subsidiary Borrower incorporated, organized or formed in a Restricted Jurisdiction; and 
 (v) such assignment does not conflict with Applicable Law. 
 A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and
delegation cease to apply. 
 SECTION 4.13 Security. The Obligations of the Borrower shall be secured as provided in the Security
Documents. 
 SECTION 4.14 Additional Subsidiary Borrowers. The Original Borrower may designate any Domestic Subsidiary as a
Subsidiary Borrower under this Agreement and the other Loan Documents upon satisfaction of each of the following conditions. 
 (a) The
Borrower shall have delivered to the Administrative Agent a written notice requesting that such Domestic Subsidiary be designated as a new Subsidiary Borrower and indicating such Domestic Subsidiary’s jurisdiction of incorporation, organization
or formation. The Administrative Agent agrees that promptly upon receipt of such notice it will forward such notice to the Lenders requesting their approval of such Domestic Subsidiary as a Subsidiary Borrower. If the Required Agreement Lenders
approve such designation (which approval shall occur no earlier than five (5) Business Days after the Lenders receive written notice of the request that such Domestic Subsidiary be designated as a new Subsidiary Borrower), the applicable
Domestic Subsidiary shall be deemed a “Borrower” under this Agreement and the other Loan Documents and all references herein (other than the references in Articles V, VI, VII, VIII, IX and X of
this Agreement) to “Borrower” shall be deemed to include the Subsidiary Borrower. 
 (b) The Administrative Agent shall have
received a duly executed supplement to this Agreement and any other applicable Loan Documents joining such Domestic Subsidiary as a Subsidiary Borrower hereunder (such supplement to be in form and substance reasonably satisfactory to the
Administrative Agent). 
 (c) Such Domestic Subsidiary shall deliver to the Administrative Agent such documents and certificates referred to
in Section 5.2 as may be reasonably requested by the Administrative Agent (it being agreed by the Borrower that, if the designation of such Domestic Subsidiary as a Subsidiary Borrower obligates the Administrative Agent or any Lender to
comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall, promptly upon the 

  

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request of the Administrative Agent or any Lender, supply such documentation and other evidence as is reasonably requested by the Administrative Agent or any
Lender in order for the Administrative Agent or such Lender to carry out, and be satisfied it has complied with the results of, all necessary “know your customer” or other similar checks under all Applicable Laws). 
 (d)(i) If not previously granted to the Administrative Agent under the Security Documents, such Domestic Subsidiary shall pledge a security interest
in all Collateral owned by such Domestic Subsidiary by delivering to the Administrative Agent a duly executed supplement to each applicable Security Document or such other documents as the Administrative Agent shall reasonably deem appropriate for
such purpose. 
 (ii) To the extent not previously delivered to the Administrative Agent under the Security Documents, the
Borrower shall deliver to the Administrative Agent such original Capital Stock or other certificates and stock or other transfer powers evidencing the Capital Stock of such Domestic Subsidiary and, to the extent required by the Security Documents,
all Capital Stock or other certificates and stock or other transfer powers evidencing the Capital Stock owned by such Domestic Subsidiary. 
 (e) The Borrower shall deliver to the Administrative Agent such updated Schedules to the Loan Documents as requested by the Administrative Agent with respect to such Domestic Subsidiary. 
 (f) The Borrower shall deliver to the Administrative Agent such other documents (including, without limitation, legal opinions) as may be reasonably
requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the Administrative Agent. 
 (g) The
obligations of each Subsidiary Borrower hereunder and under the other Loan Documents shall be joint and several with the Obligations of the Borrower and each other Subsidiary Borrower. 
 SECTION 4.15 Nature of Obligations; Bankruptcy Limitations; Agreement for Contribution. 
 (a) Nature of Obligations. All of the Borrowers shall be jointly and severally liable for the Obligations, however incurred. 
 (b) Bankruptcy Limitations. Notwithstanding anything to the contrary contained in this Agreement, it is the intention of each Borrower, the
Administrative Agent and the Lenders that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or insolvency or any similar proceeding with respect to any Borrower or its
assets, the amount of such Borrower’s obligations with respect to the Obligations shall be equal to, but not in excess of, the maximum amount thereof not subject to avoidance or recovery by operation of Applicable Insolvency Laws after giving
effect to Section 4.15(c). To that end, but only in the event and to the extent that after giving effect to Section 4.15(c), such Borrower’s obligations with respect to the Obligations or any payment made pursuant to
such Obligations would, but for the operation of the first sentence of this Section 4.15(b), be subject to 

  

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avoidance or recovery in any such proceeding under Applicable Insolvency Laws after giving effect to Section 4.15(c), the amount of such
Borrower’s obligations with respect to the Obligations shall be limited to the largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws, render such Borrower’s obligations with respect to the
Obligations unenforceable or avoidable or otherwise subject to recovery under Applicable Insolvency Laws. To the extent any payment actually made pursuant to the Obligations exceeds the limitation of the first sentence of this
Section 4.15(b) and is otherwise subject to avoidance and recovery in any such proceeding under Applicable Insolvency Laws, the amount subject to avoidance shall in all events be limited to the amount by which such actual payment exceeds
such limitation and the Obligations as limited by the first sentence of this Section 4.15(b) shall in all events remain in full force and effect and be fully enforceable against such Borrower. The first sentence of this
Section 4.15(b) is intended solely to preserve the rights of the Administrative Agent and the Lenders hereunder against such Borrower in such proceeding to the maximum extent permitted by Applicable Insolvency Laws and neither such
Borrower, any other Borrower, any Guarantor nor any other Person shall have any right or claim under such sentence that would not otherwise be available under Applicable Insolvency Laws in such proceeding. 
 (c) Agreement for Contribution. The Borrowers hereby agree among themselves that, if any Borrower shall make an Excess Payment (as defined below),
such Borrower shall have a right of contribution from each other Borrower in an amount equal to such other Borrower’s Contribution Share (as defined below) of such Excess Payment. The payment obligations of any Borrower under this
Section 4.15(c) shall be subordinate and subject in right of payment to the Obligations until such time as the Obligations have been paid in full, and none of the Borrowers shall exercise any right or remedy under this
Section 4.15(c) against any other Borrower until such Obligations have been paid in full. For purposes of this Section 4.15(c): 
 (i) “Excess Payment” shall mean the amount paid by any Borrower in excess of its Ratable Share of any Obligations; 
 (ii) “Ratable Share” shall mean, for any Borrower in respect of any payment of Obligations, the ratio (expressed as a
percentage) as of the date of such payment of Obligations of (A) the amount by which the aggregate present fair salable value of all of the assets and properties of such Borrower exceeds the amount of all debts and liabilities of such Borrower
(including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Borrower hereunder) to (B) the amount by which the aggregate present fair salable value of all assets and other
properties of all of the Borrowers exceeds the amount of all of the debts and liabilities (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of the Borrowers hereunder) of the
Borrowers; provided, however, that, for purposes of calculating the Ratable Shares of the Borrowers in respect of any payment of Obligations, any Borrower that became a Borrower subsequent to the date of any such payment shall be
deemed to have been a Borrower on the date of such payment and the financial information for such Borrower as of the date such Borrower became a Borrower shall be utilized for such Borrower in connection with such payment; and 
  

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 (iii) “Contribution Share” shall mean, for any Borrower in respect of
any Excess Payment made by any other Borrower, the ratio (expressed as a percentage) as of the date of such Excess Payment of (A) the amount by which the aggregate present fair salable value of all of the assets and properties of such Borrower
exceeds the amount of all debts and liabilities of such Borrower (including probable contingent, subordinated, unmatured, and unliquidated liabilities, but excluding the obligations of such Borrower hereunder) to (B) the amount by which the
aggregate present fair salable value of all assets and other properties of the Borrowers other than the maker of such Excess Payment exceeds the amount of all of the debts and liabilities (including probable contingent, subordinated, unmatured, and
unliquidated liabilities, but excluding the obligations of the Borrowers) of the Borrowers other than the maker of such Excess Payment; provided, however, that, for purposes of calculating the Contribution Shares of the Borrowers in
respect of any Excess Payment, any Borrower that became a Borrower subsequent to the date of any such Excess Payment shall be deemed to have been a Borrower on the date of such Excess Payment and the financial information for such Borrower as of the
date such Borrower became a Borrower shall be utilized for such Borrower in connection with such Excess Payment. 
 Each of the Borrowers recognizes and
acknowledges that the rights to contribution arising hereunder shall constitute an asset in favor of the party entitled to such contribution. No Borrower shall have any right of subrogation, indemnity or reimbursement under Applicable Law in respect
of any payment of Obligations (other than the contribution rights set forth in this Section 4.15(c)) against any other Borrower. 
 (d) Appointment of Original Borrower as Agent. Each Borrower hereby irrevocably appoints and authorizes the Original Borrower (i) to provide the Administrative Agent with all notices with respect to Extensions of Credit obtained
for the benefit of such Borrower and all other notices and instructions under this Agreement, (ii) to take such action on behalf of the Borrowers as the Original Borrower deems appropriate on its behalf to obtain Extensions of Credit and to
exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement and (iii) to act as its agent for service of process and notices required to be delivered under this Agreement or the other Loan
Documents, it being understood and agreed that receipt by the Original Borrower of any summons, notice or other similar item shall be deemed effective receipt by such Borrower and its Subsidiaries. 
 For purposes of this Section, the term “Borrowers” means the collective reference to the Original Borrower, each New Borrower and each
Subsidiary Borrower and “Borrower” means the Original Borrower, one of the New Borrowers or one of the Subsidiary Borrowers, as applicable. 
  

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 ARTICLE V 
 CLOSING; CONDITIONS OF CLOSING AND BORROWING 
 SECTION 5.1 Closing. The closing shall take
place at the offices of Kennedy Covington Lobdell & Hickman, L.L.P. at 10:00 a.m. on May 31, 2006 or at such other place, date and time as the parties hereto shall mutually agree. 
 SECTION 5.2 Conditions to Closing and Initial Extensions of Credit. The obligation of the Lenders to close this Agreement and to make the initial
Loan or issue or participate in the initial Letter of Credit, if any, is subject to the satisfaction of each of the following conditions: 
 (a) Executed Loan Documents. This Agreement, a Revolving Credit Note in favor of each Lender (if requested thereby), a Swingline Note in favor of the Swingline Lender (if requested thereby) and the Security Documents, together with
any other applicable Loan Documents, shall have been duly authorized, executed and delivered to the Administrative Agent by the parties thereto, shall be in full force and effect and no Default or Event of Default shall exist hereunder or
thereunder. 
 (b) Closing Certificates; Etc. The Administrative Agent shall have received each of the following in form and substance
reasonably satisfactory to the Administrative Agent: 
 (i) Officer’s Certificate of the Original Borrower. A certificate from a
Responsible Officer of the Original Borrower to the effect that all representations and warranties of the Original Borrower and its Subsidiaries contained in this Agreement and the other Loan Documents are true, correct and complete in all material
respects (provided that any representation or warranty that is qualified by materiality or by reference to Material Adverse Effect shall be true, correct and complete in all respects); that neither the Original Borrower nor any of its
Subsidiaries is in violation of any of the covenants contained in this Agreement and the other Loan Documents; that, after giving effect to the transactions contemplated by this Agreement, no Default or Event of Default has occurred and is
continuing; and that each of the Credit Parties, as applicable, has satisfied each of the conditions set forth in Section 5.2 and Section 5.3. 
 (ii) Certificate of Secretary of each Credit Party. A certificate of a Responsible Officer of each Credit Party certifying as to the incumbency and genuineness of the signature of each officer of such Credit
Party executing Loan Documents to which it is a party and certifying that attached thereto is a true, correct and complete copy of (A) the articles or certificate of incorporation or formation of such Credit Party and all amendments thereto,
certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of incorporation or formation, (B) the bylaws or other governing document of such Credit Party as in effect on the Closing Date, (C) resolutions
duly adopted by the board of directors or other governing body of such Credit Party authorizing the transactions contemplated hereunder and the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a
party, and (D) each certificate required to be delivered pursuant to Section 5.2(b)(iii). 
  

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 (iii) Certificates of Good Standing. Certificates as of a recent date of the good standing of each
Credit Party under the laws of its jurisdiction of organization and, to the extent requested by the Administrative Agent, each other jurisdiction where such Credit Party is qualified to do business and, to the extent available, a certificate of the
relevant taxing authorities of such jurisdictions certifying that such Credit Party has filed required tax returns and owes no delinquent taxes. 
 (iv) Opinions of Counsel. Favorable opinions of counsel to the Credit Parties addressed to the Administrative Agent and the Lenders with respect to the Credit Parties, the Loan Documents and such other matters as the Lenders shall
request. 
 (v) Tax Forms. Copies of the United States Internal Revenue Service forms required by Section 4.11(e).

 (c) Personal Property Collateral. 
 (i) Filings and Recordings. The Administrative Agent shall have received all filings and recordations that are necessary to perfect the security interests of the Administrative Agent, on behalf of itself and
the Lenders, in the Collateral shall have been received by the Administrative Agent and the Administrative Agent shall have received evidence reasonably satisfactory to the Administrative Agent that upon such filings and recordations such security
interests constitute valid and perfected first priority Liens thereon. 
 (ii) Pledged Collateral. The Administrative Agent shall have
received original stock certificates or other certificates evidencing the Capital Stock pledged pursuant to the Security Documents, together with an undated stock power for each such certificate duly executed in blank by the registered owner
thereof. 
 (iii) Lien Search. The Administrative Agent shall have received the results of a Lien search (including a search as to
judgments, pending litigation and tax matters), in form and substance reasonably satisfactory thereto, made against the Credit Parties under the Uniform Commercial Code (or applicable judicial docket) as in effect in any state in which any of the
assets of such Credit Party are located, indicating among other things that its assets are free and clear of any Lien except for Permitted Liens. 
 (iv) Hazard and Liability Insurance. The Administrative Agent shall have received certificates of property hazard, business interruption and liability insurance, evidence of payment of all insurance premiums for the current policy
year of each insurance policy (naming the Administrative Agent as additional insured on all certificates for liability insurance and loss payee (or mortgagee) with respect to the Collateral on all certificates for property insurance), and, if
requested by the Administrative Agent, copies (certified by a Responsible Officer) of insurance policies in the form required under the Security Documents and otherwise in form and substance reasonably satisfactory to the Administrative Agent.

 (d) Consents; Defaults. 
 (i) Governmental and Third Party Approvals. The Credit Parties shall have received all material governmental, shareholder and third party consents and approvals necessary 

  

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(or any other material consents as determined in the reasonable discretion of the Administrative Agent) in connection with the transactions contemplated by
this Agreement and the other Loan Documents and the other transactions contemplated hereby and all applicable waiting periods shall have expired without any action being taken by any Person that could reasonably be expected to restrain, prevent or
impose any material adverse conditions on any of the Credit Parties or such other transactions or that could seek or threaten any of the foregoing, and no law or regulation shall be applicable which in the reasonable judgment of the Administrative
Agent could reasonably be expected to have such effect. 
 (ii) No Injunction, Etc. No action, proceeding, investigation, regulation
or legislation shall have been instituted, threatened or proposed before any Governmental Authority to enjoin, restrain, or prohibit, or to obtain substantial damages in respect of, or which is related to or arises out of this Agreement or the other
Loan Documents or the consummation of the transactions contemplated hereby or thereby, or which, in the Administrative Agent’s sole discretion, would make it inadvisable to consummate the transactions contemplated by this Agreement or the other
Loan Documents or the consummation of the transactions contemplated hereby or thereby. 
 (e) Financial Matters. 
 (i) Financial Statements. The Administrative Agent shall have received (A) the audited Consolidated balance sheet of the Original Borrower and
its Subsidiaries as of December 31, 2005 and the related audited statements of income and retained earnings and cash flows for the Fiscal Year then ended, (B) any interim unaudited Consolidated balance sheet of the Original Borrower and
its Subsidiaries and related unaudited interim statements of income, cash flows and retained earnings for each interim quarterly period (if any) ended at least forty-five (45) days prior to the Closing Date and (C) if requested by the
Administrative Agent (on behalf of itself or any Lender), any financial statements or projections of the Canadian Borrower and its Subsidiaries required to be delivered by the Canadian Borrower to the Canadian Administrative Agent pursuant to
Section 5.2 of the Canadian Credit Agreement. 
 (ii) Financial Projections. The Administrative Agent shall have received
projections prepared by management of the Original Borrower, of balance sheets, income statements and cash flow statements on a quarterly basis for 2006 and on an annual basis for each year thereafter during the term of the Credit Facility.

 (iii) Financial Condition Certificate. The Original Borrower shall have delivered to the Administrative Agent a certificate, in
form and substance satisfactory to the Administrative Agent, and certified as accurate by a Responsible Officer of the Original Borrower, that (A) the Original Borrower and each of its Subsidiaries are each Solvent, (B) the material
payables of the Original Borrower and each of its Subsidiaries are current and not past due, (C) attached thereto are calculations, as determined on a pro forma basis as of March 31, 2006 and after giving effect to the transactions
contemplated hereby and any Extensions of Credit or Canadian Extensions of Credit to be made on the Closing Date, with the covenants contained in Article IX; (D) the financial projections previously delivered to the Administrative Agent
represent the good faith estimates (utilizing assumptions believed to be reasonable) of the financial condition and operations of the Original Borrower and its Subsidiaries; (E) attached 

  

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thereto is a calculation of the ratio of (1) Consolidated Total Indebtedness as of the Closing Date (after giving effect to any Extensions of Credit or
Canadian Extensions of Credit on the Closing Date) to (2) Consolidated EBITDA for the most recently ended four (4) consecutive fiscal quarters for which financial statements have been delivered, demonstrating that such ratio is less than
5.80 to 1.00; (F) attached thereto is a calculation of Consolidated Adjusted EBITDA for the most recently ended four (4) consecutive fiscal quarters for which financial statements have been delivered, demonstrating to the reasonable
satisfaction of the Administrative Agent that Consolidated Adjusted EBITDA (as determined in such manner) is not less than $500,000,000; and (G) attached thereto is a calculation of the Borrowing Limit as of the Closing Date. 
 (iv) Payment at Closing; Fee Letters. The Original Borrower shall have paid to the Administrative Agent and the Lenders the fees set forth or
referenced in Section 4.3 and any other accrued and unpaid fees or commissions due hereunder (including, without limitation, legal (including, without limitation, local counsel) fees and expenses) and to any other Person such amount as
may be due thereto in connection with the transactions contemplated hereby, including all taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents. 
 (f) Miscellaneous. 
 (i) Notice of
Borrowing. The Administrative Agent shall have received a Notice of Borrowing from the Original Borrower in accordance with Section 2.3(a) with respect to any Loans (if any) to be made on the Closing Date, and a Notice of Account
Designation specifying the account or accounts to which the proceeds of any Loans made on or after the Closing Date are to be disbursed. 
 (ii) Existing Facilities. Each of the Existing Facilities shall be repaid in full and terminated and all collateral security therefor shall be released, and the Administrative Agent shall have received pay-off letters in form and
substance satisfactory to it evidencing such repayment, termination and release. 
 (iii) Closing of the Canadian Credit Facility. The
Canadian Credit Facility shall simultaneously close on the Closing Date. 
 (iv) Other Documents. All opinions, certificates and other
instruments and all proceedings in connection with the transactions contemplated by this Agreement shall be satisfactory in form and substance to the Administrative Agent. The Administrative Agent shall have received copies of all other documents,
certificates and instruments reasonably requested thereby, with respect to the transactions contemplated by this Agreement. 
 SECTION 5.3
Conditions to All Extensions of Credit. The obligations of the Lenders to make any Extensions of Credit (including any initial Extensions of Credit), convert or continue any Loan and/or any Issuing Lender to issue or extend any Letter of
Credit are subject to the satisfaction of the following conditions precedent on the relevant borrowing, continuation, conversion, issuance or extension date: 
 (a) Continuation of Representations and Warranties. The representations and warranties contained in Article VI shall be true and correct in all material respects on and as of 

  

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such borrowing, continuation, conversion, issuance or extension date with the same effect as if made on and as of such date, except for any representation
and warranty made as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date; provided that any representation or warranty that is qualified by materiality or by reference to Material
Adverse Effect shall be true and correct in all respects on and as of such borrowing, continuation, conversion, issuance or extension date. 
 (b) No Existing Default. No Default or Event of Default shall have occurred and be continuing (i) on the borrowing, continuation or conversion date with respect to such Loan or after giving effect to the Loans to be made,
continued or converted on such date or (ii) on the issuance or extension date with respect to such Letter of Credit or after giving effect to the issuance or extension of such Letter of Credit on such date. 
 (c) Notices. The Administrative Agent shall have received a Notice of Borrowing or Notice of Conversion/Continuation, as applicable, from the
Original Borrower in accordance with Section 2.3(a) or Section 4.2, as applicable. 
 SECTION 5.4 Post-Closing
Conditions. 
 — (a) Prior to July 14, 2006, as such date may be extended by the Administrative
Agent in its sole discretion, the Administrative Agent shall have received (a) a duly executed copy of each applicable Foreign Pledge Document with respect to a pledge of sixty-five percent (65%) of the total outstanding Capital Stock of
Bowater-Korea Co., Ltd., including, without limitation, if applicable, original stock certificates (or the equivalent thereof pursuant to the Applicable Laws and practices of the Republic of Korea) evidencing the Capital Stock of Bowater-Korea Co.,
Ltd., together with an appropriate undated stock power for each certificate duly executed in blank by the Original Borrower), (b) such documents and certificates referred to in Section 5.2 as may be reasonably requested by the
Administrative Agent in connection therewith (including, without limitation, favorable legal opinions of counsel addressed to the Administrative Agent and the Lenders with respect to Bowater-Korea Co., Ltd., the Loan Documents and such other matters
as the Administrative Agent shall reasonably request), and (c) such other documents and certificates as may be reasonably requested by the Administrative Agent (in consultation with the Original Borrower), all in form, content and scope
reasonably satisfactory to the Administrative Agent. Notwithstanding the foregoing, subject to Section 12.3, the Administrative Agent may waive any or all of the requirements contained in this Section 5.4 to the extent that,
in the sole discretion of the Administrative Agent, they are impracticable or pose a materially undue burden on the Original Borrower or Bowater-Korea Co., Ltd. 
 (b) Prior to June 30, 2006, as such date may be extended by the Administrative Agent in its sole discretion, the Administrative Agent shall have received the following control agreements, in each case in form and
substance satisfactory to the Administrative Agent: 
 (i) A deposit account control agreement executed by the applicable
Credit Party, the Administrative Agent and Bank of America, N.A. with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Credit Parties at Bank of America, N.A.;

  

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 (ii) A deposit account control agreement executed by the applicable Credit Party, the
Administrative Agent and JPMorgan Chase Bank, N.A. with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Credit Parties at JPMorgan Chase Bank, N.A.; 
 (iii) A deposit account control agreement executed by the applicable Credit Party, the Administrative Agent and Wachovia Bank, National
Association with respect to all Deposit Accounts, other than Excluded Deposit Accounts (in each case as defined in the Collateral Agreement), of the Credit Parties at Wachovia Bank, National Association; 
 (iv) A securities account control agreement executed by the applicable Credit Party, the Administrative Agent and Bank of New York with
respect to all securities accounts of the Credit Parties at Bank of New York; and 
 (v) All other control agreements which
the Administrative Agent requires to be delivered pursuant to the Collateral Agreement, in each case in form and substance satisfactory to the Administrative Agent. 
 (c) Prior to June 30, 2006, as such date may be extended by the Administrative Agent in its sole discretion, the Administrative Agent shall have received any warehouse or similar agreement, and any other
ancillary documentation, required to be delivered thereto pursuant to Section 4.6(b) of the Collateral Agreement (or, if any such warehouse or similar agreement, and any other ancillary documentation, has not been delivered by such date,
the Original Borrower shall take all actions required by the Administrative Agent pursuant to Section 4.6(b) in connection therewith). 
 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES OF THE BORROWER 
 SECTION 6.1 Representations and Warranties. To induce the Administrative Agent and Lenders to enter into this Agreement and to induce the Lenders
to make Extensions of Credit, the Borrower hereby represents and warrants to the Administrative Agent and Lenders both before and after giving effect to the transactions contemplated hereunder that: 
 (a) Organization; Power; Qualification. Each of the Borrower and its Subsidiaries is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or formation, has the power and authority to own its properties and to carry on its business as now being and hereafter proposed to be conducted and is duly qualified and authorized to do business in
each jurisdiction in which the character of its properties or the nature of its business requires such qualification and authorization except in jurisdictions where the failure to be so qualified or in good standing could not reasonably be expected
to result in a Material Adverse Effect. 
 (b) Ownership. Each Subsidiary of the Borrower as of the Closing Date is listed on
Schedule 6.1(b) (which schedule shall be updated pursuant to, and in connection with, the 

  

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consummation of the transactions contemplated by Sections 8.10(e)(i), (ii)(A) and (ii)(B)) together with (i) its jurisdiction of
formation and each jurisdiction in which it is qualified to do business as of the Closing Date, (ii) each Person holding ownership interests in such Subsidiary, (iii) the nature of the ownership interest held by each such Person and the
percentage of ownership of such Subsidiary represented by such ownership interests and (iv) a designation of each Subsidiary that is inactive. All outstanding shares have been duly authorized and validly issued and are fully paid and
nonassessable, with no personal liability attaching to the ownership thereof, and not subject to any preemptive or similar rights, except as described in Schedule 6.1(b) (which schedule shall be updated pursuant to, and in connection with,
the consummation of the transactions contemplated by Sections 8.10(e)(i), (ii)(A) and (ii)(B)). As of the Closing Date, there are no outstanding stock purchase warrants, subscriptions, options, securities, instruments or other
rights of any type or nature whatsoever, which are convertible into, exchangeable for or otherwise provide for or permit the issuance of Capital Stock of the Borrower or its Subsidiaries, except as described on Schedule 6.1(b) (which schedule
shall be updated pursuant to, and in connection with, the consummation of the transactions contemplated by Sections 8.10(e)(i), (ii)(A) and (ii)(B)). 
 (c) Authorization of Agreement, Loan Documents and Borrowing. Each of the Borrower and its Subsidiaries has the right, power and authority and has taken all necessary corporate and other action to authorize the
execution, delivery and performance of this Agreement and each of the other Loan Documents to which it is a party in accordance with their respective terms. This Agreement and each of the other Loan Documents have been duly executed and delivered by
the duly authorized officers of the Borrower and each of its Subsidiaries party thereto, and each such document constitutes the legal, valid and binding obligation of the Borrower or its Subsidiary party thereto, enforceable in accordance with its
terms, except as such enforceability may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar state or federal laws from time to time in effect which affect the enforcement of creditors’ rights in general and
(ii) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 
 (d) Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. The execution, delivery and performance by the Borrower and its Subsidiaries of the Loan Documents to which each such Person is a party,
in accordance with their respective terms, the Extensions of Credit hereunder and the transactions contemplated hereby do not and will not, by the passage of time, the giving of notice or otherwise, (i) require any Governmental Approval or
violate any Applicable Law relating to the Borrower or any of its Subsidiaries, (ii) conflict with, result in a breach of or constitute a default under the articles of incorporation, bylaws or other organizational documents of the Borrower or
any of its Subsidiaries, (iii) conflict with, result in a breach of or constitute a default under any indenture, agreement or other instrument to which such Person is a party or by which any of its properties may be bound or any Governmental
Approval relating to such Person, which could reasonably be expected to have a Material Adverse Effect, (iv) result in or require the creation or imposition of any Lien upon or with respect to any property now owned or hereafter acquired by
such Person other than Liens arising under the Loan Documents or (v) require any consent or authorization of, filing with, or other act in respect of, an arbitrator or Governmental Authority and no consent of any other Person is required in
connection with the execution, delivery, performance, validity or enforceability of 

  

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this Agreement other than consents, authorizations, filings or other acts or consents for which the failure to obtain or make could not reasonably be
expected to have a Material Adverse Effect and other than consents or filings under the UCC. 
 (e) Compliance with Law; Governmental
Approvals. Each of the Borrower and its Subsidiaries (i) has all Governmental Approvals required by any Applicable Law for it to conduct its business, each of which is in full force and effect, is final and not subject to review on appeal
and is not the subject of any pending or, to the best of its knowledge, threatened attack by direct or collateral proceeding, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, (ii) is in
compliance with its articles of incorporation, bylaws or other organizational documents of the Borrower or any of its Subsidiaries, except where the failure to comply could not reasonably be expected to have a Material Adverse Effect, (iii) is
in compliance with each Governmental Approval applicable to it and in compliance with all other Applicable Laws relating to it or any of its respective properties, except where the failure to comply could not reasonably be expected to have a
Material Adverse Effect, and (iv) has timely filed all reports, documents and other materials required to be filed by it under all Applicable Laws with any Governmental Authority and has retained all records and documents required to be
retained by it under Applicable Law, except where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. 
 (f) Tax Returns and Payments. Each of the Borrower and its Subsidiaries has duly filed or caused to be filed all federal and other material tax
returns required by Applicable Law to be filed, and has paid, or made adequate provision for the payment of, all federal and other material taxes, assessments and governmental charges or levies upon it and its property, income, profits and assets
which are due and payable. Such returns accurately reflect in all material respects all liability for taxes of the Borrower and its Subsidiaries for the periods covered thereby. There is no ongoing audit or examination or, to the knowledge of the
Borrower, other investigation by any Governmental Authority of the tax liability of the Borrower and its Subsidiaries, except, in each case, as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. No
Governmental Authority has asserted any Lien or other claim against the Borrower or any of its Subsidiaries with respect to unpaid taxes which has not been discharged or resolved other than Permitted Liens. The charges, accruals and reserves on the
books of the Borrower and any of its Subsidiaries in respect of federal and other material taxes for all Fiscal Years and portions thereof since the organization of the Borrower and any of its Subsidiaries are in the judgment of the Borrower
adequate, and the Borrower does not anticipate any material amount of additional taxes or assessments for any of such years. 
 (g)
Intellectual Property Matters. Each of the Borrower and its Subsidiaries owns or possesses rights to use all franchises, licenses, copyrights, copyright applications, patents, patent rights or licenses, patent applications, trademarks,
trademark rights, service mark, service mark rights, trade names, trade name rights, copyrights and other rights with respect to the foregoing which are reasonably necessary to conduct its business, except where the failure to own or possess such
rights, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. No event has occurred which permits, or after notice or lapse of time or both would permit, the revocation or termination of any such
rights, and neither the Borrower nor any of its Subsidiaries is liable to any Person for infringement under Applicable Law with respect to any such rights as a result of its business operations except as could not reasonably be expected to have a
Material Adverse Effect. 
  

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 (h) Environmental Matters. 
 (i) The properties owned, leased or operated by the Borrower and its Subsidiaries now or in the past do not contain, and to their knowledge have not
previously contained, any Hazardous Materials in amounts or concentrations which (A) constitute or constituted a violation of applicable Environmental Laws or (B) could give rise to liability under applicable Environmental Laws except
where such violation or liability could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect; 
 (ii) Except to the extent such matters could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, the Borrower, each of its Subsidiaries and such properties and all operations conducted in
connection therewith are in compliance, and have been in compliance, with all applicable Environmental Laws, and there is no contamination at, under or about such properties or such operations which could interfere with the continued operation of
such properties; 
 (iii) Neither the Borrower nor any of its Subsidiaries has received any written notice of violation, alleged violation,
non-compliance, liability or potential liability regarding environmental matters, Hazardous Materials, or compliance with Environmental Laws, nor does the Borrower or any of its Subsidiaries have knowledge or reason to believe that any such notice
will be received or is being threatened, except where such violation, alleged violation, non-compliance, liability or potential liability which is the subject of such notice could not reasonably be expected, individually or in the aggregate, to have
a Material Adverse Effect; 
 (iv) Hazardous Materials have not been transported or disposed of to or from the properties owned, leased or
operated by the Borrower and its Subsidiaries in violation of, or in a manner or to a location which could give rise to liability under, Environmental Laws, nor have any Hazardous Materials been generated, treated, stored or disposed of at, on or
under any of such properties in violation of, or in a manner that could give rise to liability under, any applicable Environmental Laws, except where such violation or liability could not reasonably be expected, individually or in the aggregate, to
have a Material Adverse Effect; 
 (v) No judicial proceedings or governmental or administrative action is pending, or, to the knowledge of
the Borrower, threatened, under any Environmental Law to which the Borrower or any of its Subsidiaries is or will be named as a potentially responsible party with respect to such properties or operations conducted in connection therewith, nor are
there any consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to the Borrower, any of its Subsidiaries or such
properties or such operations that could reasonably be expected to have a Material Adverse Effect; and 
 (vi) There has been no release, or
to the best of the Borrower’s knowledge, threat of release, of Hazardous Materials at or from properties owned, leased or operated by the Borrower or any Subsidiary, now or in the past, in violation of or in amounts or in a manner that could
give rise to liability under Environmental Laws that could reasonably be expected to have a Material Adverse Effect. 
  

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 (i) ERISA. 
 (i) As of the Closing Date, neither the Borrower nor any of its Subsidiaries nor any ERISA Affiliate maintains or contributes to, or has any obligation under, any Employee Benefit Plans other than those identified on
Schedule 6.1(i-1) and neither the Borrower nor any of its Subsidiaries maintains or contributes to, or has any obligation under, any Canadian Employee Benefit Plans other than those identified on Schedule 6.1(i-2). 
 (ii) The Borrower, each of its Subsidiaries and each of their ERISA Affiliates is in material compliance with all applicable provisions of ERISA and the
regulations and published interpretations thereunder with respect to all Employee Benefit Plans except for any required amendments for which the remedial amendment period as defined in Section 401(b) of the Code has not yet expired and except
where a failure to so comply could not reasonably be expected to have a Material Adverse Effect. The Borrower and each of its Subsidiaries is in material compliance with all applicable provisions of the ITA and other Applicable Law and the
regulations and published interpretations thereunder with respect to all Canadian Employee Benefit Plans except where a failure to so comply could not reasonably be expected to have a Material Adverse Effect. Each Employee Benefit Plan that is
intended to be qualified under Section 401(a) of the Code has been determined by the Internal Revenue Service to be so qualified, and each trust related to such plan has been determined to be exempt under Section 501(a) of the Code except
for such plans that have not yet received determination letters but for which the remedial amendment period for submitting a determination letter has not yet expired. No liability has been incurred by the Borrower, any of its Subsidiaries or any of
their ERISA Affiliates which remains unsatisfied for any taxes or penalties with respect to any Employee Benefit Plan or any Multiemployer Plan except for a liability that could not reasonably be expected to have a Material Adverse Effect. No
liability has been incurred by the Borrower or any of its Subsidiaries which remains unsatisfied for any taxes or penalties with respect to any Canadian Employee Benefit Plan or any Canadian Multiemployer Plan, except for a liability that could not
reasonably be expected to have a Material Adverse Effect. 
 (iii) Except as set forth on Schedule 6.1(i-1) or Schedule
6.1(i-2), as of the Closing Date, no Pension Plan or Canadian Pension Plan has been terminated, nor has any accumulated funding deficiency (as defined in Section 412 of the Code or any other Applicable Law) been incurred (without regard to
any waiver granted under Section 412 of the Code or any other Applicable Law), nor has any funding waiver from the Internal Revenue Service been received or requested with respect to any Pension Plan, nor has the Borrower, any of Subsidiaries
or any of their ERISA Affiliates failed to make any contributions or to pay any amounts due and owing as required by Section 412 of the Code, Section 302 of ERISA or the terms of any Pension Plan prior to the due dates of such
contributions under Section 412 of the Code or Section 302 of ERISA, nor has there been any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of ERISA with respect to any Pension Plan. 
 (iv) Except where the failure of any of the following representations to be correct in all material respects could not reasonably be expected to have a
Material Adverse 

  

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Effect, neither the Borrower nor any of its Subsidiaries nor any of their ERISA Affiliates has: (A) engaged in a nonexempt prohibited transaction
described in Section 406 of the ERISA or Section 4975 of the Code, (B) incurred any liability to the PBGC which remains outstanding other than the payment of premiums and there are no premium payments which are due and unpaid,
(C) failed to make a required contribution or payment to a Multiemployer Plan or a Canadian Multiemployer Plan, (D) failed to make a required installment or other required payment under Section 412 of the Code, other Applicable Laws
or its Employee Benefit Plans or (E) failed to make a required installment or other required payment under Applicable Laws or its Canadian Employee Benefit Plans. 
 (v) No Termination Event has occurred or is reasonably expected to occur. 
 (vi) Except where the failure of
any of the following representations to be correct in all material respects could not reasonably be expected to have a Material Adverse Effect, no proceeding, claim (other than a benefits claim in the ordinary course of business), lawsuit and/or
investigation is existing or, to the best knowledge of the Borrower after due inquiry, threatened concerning or involving any (A) employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently maintained or contributed to by
the Borrower, any of its Subsidiaries or any of their ERISA Affiliates, (B) Pension Plan or Canadian Pension Plan or (C) Multiemployer Plan or Canadian Multiemployer Plan. 
 (j) Margin Stock. Neither the Borrower nor any of its Subsidiaries is engaged principally or as one of its activities in the business of extending
credit for the purpose of “purchasing” or “carrying” any “margin stock” (as each such term is defined or used, directly or indirectly, in Regulation U of the Board of Governors of the Federal Reserve System). No part of
the proceeds of any of the Loans or Letters of Credit will be used for purchasing or carrying margin stock or for any purpose which violates, or which would be inconsistent with, the provisions of Regulation T, U or X of such Board of Governors.

 (k) Government Regulation. Neither the Borrower nor any of its Subsidiaries is an “investment company” or a company
“controlled” by an “investment company” (as each such term is defined or used in the Investment Company Act of 1940, as amended) and neither the Borrower nor any of its Subsidiaries is, or after giving effect to any Extension of
Credit or Canadian Extension of Credit will be, subject to regulation under the Interstate Commerce Act, as amended, or any other Applicable Law which limits its ability to incur or consummate the transactions contemplated hereby. 
 (l) Significant Indebtedness. Schedule 6.1(l) sets forth a complete and accurate list of all Significant Indebtedness of the Borrower and
its Subsidiaries in effect as of the Closing Date. As of the Closing Date, other than as set forth in Schedule 6.1(l), each indenture, agreement or other instrument governing such Significant Indebtedness is, and after giving effect to the
consummation of the transactions contemplated by the Loan Documents will be, in full force and effect in accordance with the terms thereof. To the extent requested by the Administrative Agent, the Borrower and its Subsidiaries have delivered to the
Administrative Agent a true and complete copy of each indenture, agreement or other instrument governing the Significant Indebtedness required to be listed on Schedule 6.1(l). As of the Closing Date, neither the Borrower nor any Subsidiary
(nor, to the knowledge of the Borrower, any other party thereto) is in breach of or in default under any Significant Indebtedness in any material respect. 
  

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 (m) Employee Relations. Each of the Borrower and its Subsidiaries has a stable work force in
place, except as could not reasonably be expected to have a Material Adverse Effect. The Borrower knows of no pending, threatened or contemplated strikes, work stoppage or other collective labor disputes involving its employees or those of its
Subsidiaries that could reasonably be expected to have a Material Adverse Effect. 
 (n) Burdensome Provisions. Except as described on
Schedule 6.1(n), no Subsidiary is party to any agreement or instrument or otherwise subject to any restriction or encumbrance that restricts or limits its ability to make dividend payments or other distributions in respect of its Capital
Stock to the Borrower or any Subsidiary or to transfer any of its assets or properties to the Borrower or any other Subsidiary in each case other than restrictions or encumbrances existing under or by reason of (i) the Loan Documents,
(ii) Applicable Law and (iii) legally enforceable provisions which are contained in either (A) the organizational documents of any Subsidiary that a not Wholly-Owned Subsidiary or (B) any other agreements with the other owner(s)
of such Subsidiary (which, in the case of such provisions existing on the Closing Date, are described on Schedule 6.1(n)). 
 (o)
Financial Statements. The audited and unaudited financial statements delivered pursuant to Section 5.2(e)(i) are complete and correct and fairly present in all material respects on a Consolidated basis the assets, liabilities and
financial position of the Borrower and its Subsidiaries as at the respective dates of such statements, and the results of the operations and changes of financial position for the periods then ended (other than customary year-end adjustments for
interim financial statements). All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with GAAP. Such financial statements show all material indebtedness and other material liabilities,
direct or contingent, of the Borrower and its Subsidiaries as of the date thereof, including material liabilities for taxes, material commitments, and Indebtedness, in each case, to the extent required to be disclosed under GAAP. The projected
financial statements delivered pursuant to Section 5.2(e)(ii) were prepared in good faith on the basis of the assumptions stated therein, which assumptions are believed to be reasonable in light of then existing conditions. 

(p) No Material Adverse Change. Since December 31, 2005, there has been no material adverse change in the business, assets, liabilities
(actual or contingent), operations, or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole and no event has occurred or condition arisen that could reasonably be expected to have a Material Adverse Effect.

 (q) Solvency. As of the Closing Date and after giving effect to each Extension of Credit made hereunder and each Canadian Extension
of Credit, each of the Credit Parties will be Solvent. 
 (r) Titles to Properties. Each of the Borrower and its Subsidiaries has such
title to the real property owned or leased by it as is reasonably necessary to the conduct of its business and valid and legal title to all of its personal property and assets, including, but not limited to, those 

  

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reflected on the balance sheets of the Borrower and its Subsidiaries delivered pursuant to Sections 5.2(e)(i), 7.1(a) and (b), except
those which have been disposed of by the Borrower or its Subsidiaries subsequent to such date which dispositions have been in the ordinary course of business or as otherwise expressly permitted hereunder. 
 (s) Liens. None of the properties and assets of the Borrower or any of its Subsidiaries is subject to any Lien, except Permitted Liens. Neither
the Borrower nor any of its Subsidiaries has signed any financing statement or any security agreement authorizing any secured party thereunder to file any financing statement, except to perfect those Permitted Liens. 
 (t) Litigation. Except for matters existing on the Closing Date and set forth on Schedule 6.1(t), there are no actions, suits or
proceedings pending nor, to the knowledge of the Borrower, threatened against or in any other way relating adversely to or affecting the Borrower or any of its Subsidiaries or any of their respective properties in any court or before any arbitrator
of any kind or before or by any Governmental Authority that has or could reasonably be expected to have a Material Adverse Effect. 
 (u)
Senior Indebtedness Status. The Obligations of each Credit Party under this Agreement and each of the other Loan Documents ranks and shall continue to rank at least senior in priority of payment to all Subordinated Indebtedness of each such
Person and is designated as “Senior Indebtedness” under all instruments and documents, now or in the future, relating to all Subordinated Indebtedness of such Person. 
 (v) OFAC. None of the Borrower, any Subsidiary of the Borrower or any Affiliate of the Borrower or any Guarantor: (i) is a Sanctioned Person,
(ii) has more than ten percent (10%) of its assets in Sanctioned Entities, or (iii) derives more than ten percent (10%) of its operating income from investments in, or transactions with Sanctioned Persons or Sanctioned Entities.
The proceeds of any Loan will not be used and have not been used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity. Solely for purposes of this subsection (v),
“Subsidiary” shall include (A) each Abitibi Entity and (B) each QSPE. 
 (w) Disclosure. The Borrower and/or its
Subsidiaries have disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which the Borrower or any of its Subsidiaries are subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. The financial statements, material reports, material certificates or other material information furnished (whether in writing or orally), taken
together as a whole, by or on behalf of any of the Borrower or any of its Subsidiaries to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder (as
modified or supplemented by other information so furnished) do not contain any material misstatement of fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided that, with respect to projected financial information, pro forma financial information, estimated financial information and other projected or estimated information, such information was prepared in good faith
based upon assumptions believed to be reasonable at the time. 
  

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 SECTION 6.2 Survival of Representations and Warranties, Etc. All representations and warranties
set forth in this Article VI and all representations and warranties contained in any certificate, or any of the Loan Documents (including, but not limited to, any such representation or warranty made in or in connection with any amendment
thereto) shall constitute representations and warranties made under this Agreement. All representations and warranties made under this Agreement shall be made or deemed to be made at and as of the Closing Date (except those that are expressly made
as of a specific date), shall survive the Closing Date and shall not be waived by the execution and delivery of this Agreement, any investigation made by or on behalf of the Lenders or any borrowing hereunder. 
 ARTICLE VII  
 FINANCIAL INFORMATION
AND NOTICES 
 Until all the Obligations have been paid and satisfied in full and the Commitment terminated, unless consent has been
obtained in the manner set forth in Section 13.2, the Borrower will furnish or cause to be furnished to the Administrative Agent (for distribution to the Lenders) at the Administrative Agent’s Office at the address set forth in
Section 13.1 or such other office as may be designated by the Administrative Agent from time to time: 
 SECTION 7.1 Financial
Statements and Projections. 
 (a) Quarterly Financial Statements. As soon as practicable and in any event within forty-five
(45) days (or, if earlier, on the date of any required public filing thereof) after the end of each of the first three (3) fiscal quarters of each Fiscal Year, an unaudited Consolidated balance sheet of the Borrower and its Subsidiaries as
of the close of such fiscal quarter and unaudited Consolidated statements of income, retained earnings and cash flows and a report containing management’s discussion and analysis of such financial statements for the fiscal quarter then ended
and that portion of the Fiscal Year then ended, including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the corresponding period in the preceding Fiscal Year and
prepared by the Borrower in accordance with GAAP and, if applicable, containing disclosure of the effect on the financial position or results of operations of any change in the application of accounting principles and practices during the period,
and certified by the chief financial officer of the Borrower to present fairly in all material respects the financial condition of the Borrower and its Subsidiaries on a Consolidated basis as of their respective dates and the results of operations
of the Borrower and its Subsidiaries for the respective periods then ended, subject to normal year end adjustments.  
 (b) Annual
Financial Statements. As soon as practicable and in any event within ninety (90) days (or, if earlier, on the date of any required public filing thereof) after the end of each Fiscal Year, an audited Consolidated balance sheet of the
Borrower and its Subsidiaries as of the close of such Fiscal Year and audited Consolidated statements of income, retained earnings and cash flows and a report containing management’s discussion and analysis of such financial statements for the
Fiscal Year then ended, including the notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures as of the end of and for the preceding Fiscal Year and prepared in accordance with GAAP and, if applicable,
containing disclosure of the effect on the financial position or results of operations of any change in the 

  

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application of accounting principles and practices during the year. Such annual financial statements shall be audited by an independent certified public
accounting firm acceptable to the Administrative Agent and the Canadian Administrative Agent, and accompanied by a report thereon by such certified public accountants that is not qualified with respect to scope limitations imposed by the Borrower or
any of its Subsidiaries or with respect to accounting principles followed by the Borrower or any of its Subsidiaries not in accordance with GAAP. 
 (c) Annual Business Plan and Financial Projections. As soon as practicable and in any event within ninety (90) days after the beginning of each Fiscal Year, a business plan of the Borrower and its Subsidiaries for such Fiscal
Year, such plan to be prepared in accordance with GAAP and to include, on a quarterly basis, the following: a projected income statement, statement of cash flows and balance sheet and a statement containing the volume and price assumptions by
product line used in preparing the business plan, accompanied by a certificate from a Responsible Officer of the Borrower to the effect that, to the best of such officer’s knowledge, such projections are good faith estimates (utilizing
assumptions believed to be reasonable) of the financial condition and operations of the Borrower and its Subsidiaries for such Fiscal Year. 
 (d) Financial Statements of the Canadian Borrower and its Subsidiaries. If requested by the Administrative Agent (on behalf of itself or any Lender), any financial statements of the Canadian Borrower and its Subsidiaries required to
be delivered by the Canadian Borrower to the Canadian Administrative Agent pursuant to Section 7.1 of the Canadian Credit Agreement. 
 (e) Monthly Borrowing Limit Calculation. Within fifteen (15) Business Days after the last day of each calendar month beginning after the Third Amendment Effective Date, a report in form and substance reasonably satisfactory to
the Administrative Agent showing a calculation of the Asset Coverage Amount and clauses (a) and (b) of the Borrowing Limit as of the last day of the preceding calendar month. 
 (f) Parent Cash Balance Reporting. On Monday of each week beginning after the first week that the Parent establishes its initial deposit,
securities or investment account, the Parent will deliver a written daily cash balance summary to the Administrative Agent and the Canadian Administrative Agent showing the aggregate available cash balance in the deposit, securities and other
investment accounts of the Parent as of the end of business on each Business Day of the preceding week. 
 (g) Monthly Borrowing
Base Certificate. As soon as available, but in any event within ten (10) days after the end of each calendar month, commencing with the calendar month ending June 30, 2008, a Borrowing Base Certificate, in form and substance
satisfactory to the Administrative Agent as at the end of such calendar month, duly certified by a Responsible Officer of the Original Borrower. 
 (h) Other Reporting. 
 (i) As soon as available but in any event within twenty
(20) days after the end of each calendar month, commencing with the calendar month ending September 30, 2008, and at such other times as may be requested by the Administrative Agent, as of the monthly period then ended, all delivered
electronically in a text formatted file acceptable to the Administrative Agent: 
  

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 (A) a detailed schedule and aging of the Accounts (1) including all invoices aged by
invoice date and due date (with an explanation of the terms offered) and (2) reconciled to the Borrowing Base Certificate delivered as of such date prepared in a manner reasonably acceptable to the Administrative Agent, together with a summary
specifying the name, address, and balance due for each account debtor; 
 (B) a schedule detailing the Borrower’s and its
Subsidiaries’ Inventory, in form and substance satisfactory to the Administrative Agent, (1) by location (showing Inventory in transit, any Inventory located with a third party under any consignment, bailee arrangement, or warehouse
agreement), by class (raw material, mill store inventory, work-in-process and finished goods), and by volume on hand, which Inventory shall be valued at the lower of cost (determined on a first-in, first-out basis) or market and adjusted for
Reserves as the Administrative Agent has previously indicated to the Borrower are deemed by the Administrative Agent to be appropriate, (2) including a report of any variances or other results of Inventory counts performed by the Borrower or
any of its Subsidiaries since the last Inventory schedule (including information regarding sales or other reductions, additions, returns, credits issued by the Borrower or any of its Subsidiaries and complaints and claims made against the Borrower
or any of its Subsidiaries), and (3) reconciled to the Borrowing Base Certificate delivered as of such date; 
 (C) a
worksheet of calculations prepared by the Original Borrower to determine Eligible Accounts and Eligible Inventory, such worksheets detailing the Accounts and Inventory excluded from Eligible Accounts and Eligible Inventory and the reason for such
exclusion; 
 (D) a reconciliation of the Accounts and Inventory between the amounts shown in the Borrower’s general
ledgers and financial statements and the reports delivered pursuant to clauses (A) and (B) above; 
 (E) a
reconciliation of the loan balance per the Borrower’s general ledgers to the loan balance under this Agreement; and 
 (F) a schedule and aging of Borrower’s and its Subsidiaries’ accounts payable; 
 (ii) At such times as may
be requested by the Administrative Agent, as of the quarter most recently ended, a list of all customer addresses, delivered electronically in a text formatted file acceptable to the Administrative Agent; 
 (iii) On or after September 30, 2008, promptly upon the Administrative Agent’s request: 
  

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 (A) an appraisal of all of the Inventory of the Borrower and its Subsidiaries, which
appraisal shall be in form and substance satisfactory to the Administrative Agent, prepared by an independent third party appraiser acceptable to the Administrative Agent, and upon which the Administrative Agent and the Lenders (and the successors
and assigns of the Administrative Agent and each Lender) is expressly permitted to rely; and 
 (B) a schedule, which schedule
shall be in form and substance satisfactory to the Administrative Agent, detailing the balance of all intercompany accounts of the Borrower and its Subsidiaries; 
 (iv) As soon as available but in any event within thirty (30) days after the end of each calendar month, commencing with the calendar
month ending September 30, 2008, and at such other times as may be requested by the Administrative Agent, as of the period then ended, the Borrower’s and its Subsidiaries’ sales journals, cash receipts journals (identifying trade and
non-trade cash receipts) and debit memo/credit memo journals; 
 (v) After September 30, 2008, as soon as possible and in
any event within thirty (30) days after filing thereof, copies of all tax returns filed by the Borrower or any of its Subsidiaries with the U.S. Internal Revenue Service, and any other applicable Governmental Authority in any jurisdiction; and

 (vi)(A) At the option of the Original Borrower, a current appraisal or appraisals of all New Borrower Fixed Assets which the Original
Borrower intends to include in the Borrowing Base as Eligible Real Property or Eligible Machinery and Equipment, which appraisal or appraisals shall be in form and substance satisfactory to the Administrative Agent, prepared by an independent third
party appraiser selected by the Administrative Agent for the benefit of, and in the name of, the Administrative Agent (which such appraisal or appraisals shall expressly permit reliance by the Lenders and each of the respective successors and
assigns of the Administrative Agent and the Lenders); and 
 (B) Upon the reasonable request of the Administrative Agent at
any time after the Conversion Date, an update of each appraisal required to be delivered pursuant to clause (A) above (or a new appraisal with respect to the property which is the subject thereof), which update or new appraisal shall be in form
and substance satisfactory to the Administrative Agent, prepared by an independent third party appraiser selected by the Administrative Agent for the benefit of, and in the name of, the Administrative Agent (which such update or new appraisal shall
expressly permit reliance by the Lenders and each of the respective successors and assigns of the Administrative Agent and the Lenders). 
 SECTION 7.2 Officer’s Compliance Certificate. At each time financial statements are delivered pursuant to Sections 7.1(a) or (b) and at such other times as the Administrative Agent shall reasonably request, an
Officer’s Compliance Certificate. 
  

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 SECTION 7.3 Accountants’ Certificate. At each time financial statements are delivered
pursuant to Section 7.1(b), a certificate of the independent public accountants certifying such financial statements that in connection with their audit, nothing came to their attention that caused them to believe that the Borrower
failed to comply with the terms, covenants, provisions or conditions of Articles IX, or, if such is not the case, specifying such non-compliance and its nature and period of existence. 
 SECTION 7.4 Other Reports. 
 (a)
Promptly upon their becoming available, copies of all registration statements (other than on Form S-8) and regular periodic reports on Forms 10-K, 10-Q and 8-K that the Parent, the Borrower or any of its Subsidiaries shall have filed with the SEC,
or any similar periodic reports filed with any comparable agency in Canada (it being agreed that each such report or statement shall be deemed delivered on the date that (i) such report or statement is posted on the website of the SEC at
www.sec.gov, on SEDAR at www.sedar.com or on the website of the Original Borrower at www.Bowater.com and (ii) the Original Borrower has provided the Administrative Agent with written notice of such posting). 
 (b) Promptly upon the mailing thereof to the shareholders of the Parent or the Borrower generally, copies of all financial statements, reports and proxy
statements so mailed (it being agreed that such mailing shall be deemed delivered on the date that (i) such information is posted on the website of the SEC at www.sec.gov, on SEDAR at www.sedar.com or on the website of the
Borrower at www.Bowater.com and (ii) the Original Borrower has provided the Administrative Agent with written notice of such posting). 
 (c) Such other information regarding the Collateral or the operations, business affairs and financial condition of the Borrower or any of its Subsidiaries as the Administrative Agent (for itself or on behalf of any Lender) may reasonably
request. 
 SECTION 7.5 Notice of Litigation and Other Matters. Prompt (but in no event later than ten (10) days after any Credit
Party obtains knowledge thereof) telephonic and written notice of: 
 (a) the commencement of all proceedings and investigations by or before
any Governmental Authority and all actions and proceedings in any court or before any arbitrator against or involving the Borrower or any of its Subsidiaries or any of their respective properties, assets or businesses that if adversely determined
could reasonably be expected to have a Material Adverse Effect; 
 (b) any notice of any violation received by the Borrower or any of its
Subsidiaries from any Governmental Authority including, without limitation, any notice of violation of Environmental Laws which in any such case could reasonably be expected to have a Material Adverse Effect; 
 (c) any labor controversy that has resulted in, or threatens to result in, a strike or other work action against the Borrower or any of its Subsidiaries
which in any such case could reasonably be expected to have a Material Adverse Effect; 
  

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 (d) any attachment, judgment, lien, levy or order exceeding $10,000,000 that is assessed against the
Borrower or any of its Subsidiaries; 
 (e)(i) any Default or Event of Default or (ii) any event which constitutes or which with the
passage of time or giving of notice or both would constitute a default or event of default under any Significant Indebtedness to which the Borrower or any of its Subsidiaries is a party or by which the Borrower or any of its Subsidiaries or any of
their respective properties may be bound which could reasonably be expected to have a Material Adverse Effect; 
 (f)(i) any unfavorable
determination letter from the Internal Revenue Service regarding the qualification of an Employee Benefit Plan under Section 401(a) of the Code (along with a copy thereof), (ii) all notices received by the Borrower or any of its
Subsidiaries or any of their ERISA Affiliates of the PBGC’s or any other Governmental Authority’s intent to terminate any Pension Plan or Canadian Pension Plan or to have a trustee appointed to administer any Pension Plan or Canadian
Pension Plan, (iii) all notices received by the Borrower or any of its Subsidiaries or any of their ERISA Affiliates from a Multiemployer Plan or Canadian Multiemployer Plan sponsor concerning the imposition or amount of withdrawal liability
pursuant to Section 4202 of ERISA or any other Applicable Law and (iv) the Borrower obtaining knowledge or reason to know that the Borrower or any of its Subsidiaries or any of their ERISA Affiliates has filed or intends to file a notice
of intent to terminate any Pension Plan or Canadian Pension Plan under a distress termination within the meaning of Section 4041(c) of ERISA or otherwise; 
 (g) any event which makes any of the representations set forth in Section 6.1 that is subject to materiality or Material Adverse Effect qualifications inaccurate in any respect or any event which makes any
of the representations set forth in Section 6.1 that is not subject to materiality or Material Adverse Effect qualifications inaccurate in any material respect; and 
 (h) any notice delivered to the Borrower or the Canadian Borrower, or sent by or on behalf of the Borrower or the Canadian Borrower, with respect to the
Canadian Credit Agreement or any of the loan documents executed in connection therewith (including a copy of any such notice). 
 SECTION 7.6
Accuracy of Information. All written information, reports, statements and other papers and data furnished by or on behalf of the Parent or the Borrower to the Administrative Agent or any Lender whether pursuant to this Article VII or
any other provision of this Agreement, or any of the Security Documents, shall, at the time the same is so furnished, comply with the representations and warranties set forth in Section 6.1(w). 
 ARTICLE VIII  
 AFFIRMATIVE
COVENANTS 
 Until all of the Obligations have been paid and satisfied in full and the Commitment terminated, unless consent has been
obtained in the manner provided for in Section 13.2, the Borrower will, and will cause each of its Subsidiaries to: 
  

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 SECTION 8.1 Preservation of Corporate Existence and Related Matters. Except as permitted by
Section 10.4, preserve and maintain its legal existence and all material rights, franchises, licenses and privileges and qualify and remain qualified as a foreign corporation and authorized to do business in each jurisdiction in which
the failure to so qualify could reasonably be expected to have a Material Adverse Effect. 
 SECTION 8.2 Maintenance of Property;
Reinvestment. 
 — (a) Protect and preserve all properties used or useful in its business, including
copyrights, patents, trade names, service marks and trademarks; maintain in good working order and condition, ordinary wear and tear excepted, all buildings, equipment and other tangible real and personal property; and from time to time make or
cause to be made all repairs, renewals and replacements thereof and additions to such property necessary for the conduct of its business; in each case, to the extent necessary so that the business carried on in connection therewith may be conducted
in a commercially reasonable manner, it being understood and agreed that nothing in this paragraph shall prohibit the idling or abandonment of any property in the reasonable business judgment of the Borrower and its Subsidiaries. 
 (b)(i) If the Borrower or any of its Subsidiaries receives Net Cash Proceeds in excess of $10,000,000 from any Asset Disposition permitted under this
Agreement (other than (A) any Asset Disposition permitted pursuant to clauses (a), (b), (c), (d), (e), (f) or (h) of Section 10.5 or (B) any Asset Disposition described in clause (ii) and clause (iii) below)
or consented to by the requisite Lenders pursuant to Section 13.2, or from any Insurance and Condemnation Event, and the Aggregate Credit Exposure is in excess of $100,000,000 at the end of the fiscal quarter following the time such
proceeds are received, the Borrower shall no later than twelve (12) months following such quarter end, apply such portion of such Net Cash Proceeds to repayment of the outstanding amounts under this Credit Facility or the Canadian Credit
Facility as shall reduce the Aggregate Credit Exposure to an amount less than $100,000,000; provided that no such repayment shall be required to the extent that such portion of the Net Cash Proceeds is within such twelve (12) month
period either (A) reinvested in the business (including Capital Expenditures, Permitted Acquisitions, purchases of assets in the ordinary course of business and other business expenditures permitted hereunder) or (B) subject to compliance
with Section 10.10, applied to repayment of the Existing Notes. 
 (ii) No later than five (5) Business Days
following the date of receipt by the Borrower or any of its Subsidiaries of any Net Cash Proceeds from any Asset Disposition permitted pursuant to Section 10.5(j) or from any Insurance and Condemnation Event with respect to the New
Borrower Fixed Assets, the Borrower shall, subject to the terms of, and in the allocations and manner specified in, the applicable New Borrower Mortgage, apply such Net Cash Proceeds (A) to permanently reduce the Commitment under this Agreement
and the “Commitment” (under and as defined in the Canadian Credit Agreement) and (B) to permanently repay Extensions of Credit under this Agreement and Canadian Extensions of Credit under the Canadian Credit Agreement; provided
that no such reduction or repayment shall be required from the Net Cash Proceeds received by the Borrower or any of its Subsidiaries with respect to any Asset Disposition of any Coosa Pines Mill Equipment or any Grenada Mill Equipment, or any

  

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Insurance and Condemnation Event with respect to any Coosa Pines Mill Equipment or any Grenada Mill Equipment, so long as such Net Cash Proceeds are
committed to be reinvested in replacement Coosa Pines Mill Equipment (in the case of a Asset Disposition or Insurance and Condemnation Event with respect to Coosa Pines Mill Equipment) or Grenada Mill Equipment (in the case of a Asset Disposition or
Insurance and Condemnation Event with respect to Grenada Mill Equipment), within three (3) months after receipt of such Net Cash Proceeds and are thereafter actually reinvested in such assets within twelve (12) months after receipt of such
Net Cash Proceeds; provided, that any portion of the Net Cash Proceeds not committed to be reinvested within such three (3) month period or actually reinvested within such twelve (12) month period shall be applied in accordance with
clauses (A) and (B) of this clause (ii); provided further, that the aggregate amount of the Net Cash Proceeds to be reinvested shall either (x) be deposited in a Deposit Account (as such term is defined in the Collateral
Agreement) subject to control (as such term is defined in the Collateral Agreement) of the Administrative Agent, for the benefit of the Secured Parties and the Canadian Secured Parties, until so reinvested or (y) with respect to any amounts to
be reinvested that are not deposited in a Deposit Account per clause (x) above, be used to repay Extensions of Credit and Canadian Extensions of Credit, to be allocated in the manner specified in the applicable New Borrower Mortgage
(provided that each of the Borrowing Limit and the Canadian Borrowing Limit shall be temporarily reduced by an amount equal to the principal amount of all such repayments, as applicable, made pursuant to this clause (y), until such time as
such reinvestment actually occurs and the Borrower delivers written notice thereof to the Administrative Agent and the Canadian Administrative Agent). 
 (iii) No later than five (5) Business Days following the date of receipt by the Borrower or any of its Subsidiaries of any Net Cash Proceeds from any Asset Disposition of timberlands permitted pursuant to
Section 10.5(g) or consented to by the requisite Lenders pursuant to Section 13.2, the Borrower shall apply such Net Cash Proceeds to repayment of the outstanding amounts under this Credit Facility or the Canadian Credit
Facility in an aggregate amount equal to the lesser of (A) fifty percent (50%) of the aggregate amount of such Net Cash Proceeds or (B) the amount which when used to repay the outstanding amounts under this Credit Facility or the
Canadian Credit Facility will reduce the Aggregate Credit Exposure to an amount less than $100,000,000. 
 SECTION 8.3 Insurance.
Maintain insurance with financially sound and reputable insurance companies against such risks and in such amounts as are customarily maintained by similar businesses and as may be required by Applicable Law and as are required by any Security
Documents (including, without limitation, hazard and business interruption insurance), and on the Closing Date and from time to time thereafter deliver to the Administrative Agent upon its reasonable request information in reasonable detail as to
the insurance then in effect, stating the names of the insurance companies, the amounts of the insurance, the dates of the expiration thereof and the properties and risks covered thereby. 
 SECTION 8.4 Accounting Methods and Financial Records. Maintain a system of accounting, and keep proper books, records and accounts (which shall be
true and complete in all material respects) as may be required or as may be necessary to permit the preparation of financial statements in accordance with GAAP and in compliance with the regulations of any Governmental Authority having jurisdiction
over it or any of its properties. 
  

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 SECTION 8.5 Payment of Taxes. Pay and discharge all taxes, assessments and other governmental
charges that may be levied or assessed upon it or on its income or profits or any of its property; except for any such tax, assessment or other governmental charge the payment of which is being contested in good faith so long as adequate reserves
are maintained with respect thereto in accordance with GAAP. 
 SECTION 8.6 Compliance With Laws and Approvals. Observe and remain in
compliance with all Applicable Laws and maintain in full force and effect all Governmental Approvals, in each case applicable to the conduct of its business, except where the failure to do so could not reasonably be expected to have a Material
Adverse Effect. 
 SECTION 8.7 Environmental Laws. In addition to and without limiting the generality of Section 8.6,
(a) comply with, and ensure such compliance by all tenants and subtenants with all applicable Environmental Laws and obtain and comply with and maintain, and ensure that all tenants and subtenants, if any, obtain and comply with and maintain,
any and all licenses, approvals, notifications, registrations or permits required by applicable Environmental Laws, except where the failure to do so could not reasonably be expected, individually or in the aggregate, to have a Material Adverse
Effect, (b) conduct and complete all investigations, studies, sampling and testing, and all remedial, removal and other actions required under Environmental Laws, and promptly comply with all lawful orders and directives of any Governmental
Authority regarding Environmental Laws, except where the failure to conduct or complete such actions, or comply with such orders or directions, could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect and
(c) defend, indemnify and hold harmless the Administrative Agent and the Lenders, and their respective parents, Subsidiaries, Affiliates, employees, agents, officers and directors, from and against any claims, demands, penalties, fines,
liabilities, settlements, damages, costs and expenses of whatever kind or nature known or unknown, contingent or otherwise, arising out of, or in any way relating to the presence of Hazardous Materials, or the violation of, noncompliance with or
liability under any Environmental Laws applicable to the operations of the Borrower or any of its Subsidiaries, or any orders, requirements or demands of Governmental Authorities related thereto, including, without limitation, reasonable
attorney’s and consultant’s fees, investigation and laboratory fees, response costs, court costs and litigation expenses, except to the extent that any of the foregoing directly result from the gross negligence or willful misconduct of the
party seeking indemnification therefor, as determined by a court of competent jurisdiction by final nonappealable judgment. 
 SECTION 8.8
Compliance with ERISA. In addition to and without limiting the generality of Section 8.6, (a) except where the failure to so comply could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect, (i) comply with all material applicable provisions of ERISA with respect to Employee Benefit Plans and the ITA and other Applicable Law with respect to all Canadian Employee Benefit Plans, (ii) not take any action or fail
to take action the result of which could be a liability to the PBGC or any other Governmental Authority or to a Multiemployer Plan or a Canadian Multiemployer Plan, (iii) not participate in any prohibited transaction that could result in any
civil penalty under ERISA or tax 

  

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under the Code and (iv) operate each Employee Benefit Plan in such a manner that will not incur any tax liability under Section 4980B of the Code
or any liability to any qualified beneficiary as defined in Section 4980B of the Code and (b) furnish to the Administrative Agent upon the Administrative Agent’s request such additional information about any Employee Benefit Plan or
Canadian Employee Benefit Plan as may be reasonably requested by the Administrative Agent. 
 SECTION 8.9 Visits and Inspections.
Permit representatives of the Administrative Agent or any Lender, from time to time upon prior reasonable notice and during normal business hours, at the Borrower’s expense, to visit and inspect its properties; inspect, audit and make extracts
from its books, records and files, including, but not limited to, management letters prepared by independent accountants; discuss with its principal officers, and its independent accountants, its business, assets, liabilities, financial condition,
results of operations and business prospects; and conduct field audits, examinations and appraisals with respect to the Collateral (including, but not limited to, the Accounts, the Inventory and the New Borrower Fixed Assets). Upon the occurrence
and during the continuance of an Event of Default, the Administrative Agent may do any of the foregoing at any time without advance notice. Notwithstanding the foregoing, field audits, examinations and appraisals with respect to the Collateral shall
be conducted only by the Administrative Agent, in its sole discretion or at the request of any Lender. 
 SECTION 8.10 Additional
Subsidiaries. 
 (a) Within thirty (30) days after (i) the redesignation of an Immaterial Subsidiary as a Material Subsidiary in
accordance with Section 8.10(b) below or (ii) the creation or acquisition of any Material Subsidiary, including in connection with any Permitted Acquisition (any such Subsidiary, a “New Material Subsidiary”), cause
to be executed and delivered to the Administrative Agent (unless otherwise agreed to by the Administrative Agent): (A) a duly executed joinder agreement in form and substance reasonably satisfactory to the Administrative Agent joining such New
Material Subsidiary to the Subsidiary Guaranty Agreement, the Collateral Agreement and any other applicable Security Documents, (B) such updated Schedules to the Loan Documents as requested by the Administrative Agent with regard to such Person
(including, without limitation, updated Schedule 6.1(b) reflecting the creation or acquisition of such New Material Subsidiary), (C) such original stock or other certificates and stock or other transfer powers evidencing the ownership
interests of the Borrower or the applicable Material Subsidiary, as applicable, in such New Material Subsidiary (unless such New Material Subsidiary is a Restricted Subsidiary), (D) such documents and certificates referred to in
Section 5.2 as may be reasonably requested by the Administrative Agent (including, without limitation, favorable legal opinions of counsel addressed to the Administrative Agent and the Lenders with respect to the New Material Subsidiary,
the Loan Documents and such other matters as the Lenders shall request), and (E) such other documents and certificates as may be reasonably requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the
Administrative Agent. 
 (b) The Borrower may, at any time and upon written notice to the Administrative Agent, redesignate any Immaterial
Subsidiary as a Material Subsidiary. Further, promptly after the date on which the Borrower or the Administrative Agent determines that any Subsidiary no longer qualifies as an Immaterial Subsidiary such Subsidiary shall be redesignated as a
Material Subsidiary and shall comply with clause (a) of this Section. 
  

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 (c) Notify the Administrative Agent at the time that any Person becomes a first tier Foreign Subsidiary
of the Borrower or any Material Subsidiary, and promptly thereafter (and in any event within forty-five (45) days after notification), cause to be executed and delivered to the Administrative Agent (unless otherwise agreed to by the
Administrative Agent): (i) Foreign Pledge Documents pledging sixty-five percent (65%) of the total outstanding Capital Stock of such new Foreign Subsidiary and a consent thereto executed by such new Foreign Subsidiary (including, without
limitation, if applicable, original stock certificates (or the equivalent thereof pursuant to the Applicable Laws and practices of any relevant foreign jurisdiction) evidencing the Capital Stock of such new Foreign Subsidiary, together with an
appropriate undated stock power for each certificate duly executed in blank by the registered owner thereof), (ii) such updated Schedules to the Loan Documents as requested by the Administrative Agent with regard to such Person (including,
without limitation, updated Schedule 6.1(b) reflecting the creation or acquisition of such Person), (iii) such documents and certificates referred to in Section 5.2 as may be reasonably requested by the Administrative Agent
(including, without limitation, favorable legal opinions of counsel addressed to the Administrative Agent and the Lenders with respect to such Person, the Loan Documents and such other matters as the Lenders shall request), and (iv) such other
documents and certificates as may be reasonably requested by the Administrative Agent, all in form, content and scope reasonably satisfactory to the Administrative Agent. 
 (d) Within thirty (30) days after the creation or acquisition of any new Subsidiary, including in connection with any Permitted Acquisition, cause to be executed and delivered to the Administrative Agent (unless
otherwise agreed to by the Administrative Agent) a duly executed joinder agreement in the form attached to the Intercompany Subordination Agreement joining such new Subsidiary thereto. 
 (e) (i) Parent Loan Documentation. On or prior to the Fourth Amendment Effective Date, the Administrative Agent shall have received: 
 (A) a duly executed copy of the Parent Guaranty Agreement, in form and substance reasonably satisfactory to the Administrative Agent; and

 (B) such documents and certificates referred to in Section 5.2 as may be reasonably requested by the
Administrative Agent with respect to the Parent (including, without limitation, favorable opinions of counsel addressed to the Administrative Agent and the Lenders with respect to the Parent, the Loan Documents to which it is a party and such other
matters as the Lenders shall request); 
 (ii) New Borrower Loan Documentation. 
 (A) As soon as practicable, but in no event later than April 15, 2008, the Administrative Agent shall have received: 
  

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 (1) evidence satisfactory to the Administrative Agent that the Borrower shall be
diligently pursuing in good faith the rendering of the solvency opinion referred to in Section 8.10(e)(ii)(B) by a third party consultant reasonably acceptable to the Administrative Agent (including having delivered to such third party
consultant all financial and other information necessary to provide the basis for the delivery of such solvency opinion); and 
 (2) information, in form and substance reasonably satisfactory to the Administrative Agent, confirming (x) that the New Borrowers own, free and clear of any Liens, the New Borrower Fixed Assets and (y) the ability of the New
Borrowers to grant to the Administrative Agent, on behalf of the Secured Parties and the Canadian Secured Parties, a perfected first priority security interest in the New Borrower Fixed Assets without the consent or approval of any third Person; and

 (B) As soon as practicable, but in no event later than April 30, 2008; the Administrative Agent shall have received:

 (1) a copy of a solvency opinion from an opinion provider reasonably acceptable to the Administrative Agent as to the
solvency of the Original Borrower and the New Borrowers, in each case after giving effect to the New Borrower Transactions and the transactions contemplated by the Fourth Amendment, this Agreement and the joinder agreement referred to in clause
(2) below and such other matters as the Lenders shall request (which such opinion shall expressly permit reliance (or be accompanied by a letter, in form and substance satisfactory to the Administrative Agent, executed by the opinion provider
that expressly permits reliance) by the Administrative Agent, the Lenders and any successors and assigns of the Administrative Agent or any Lender); 
 (2) a duly executed joinder agreement, in form and substance reasonably satisfactory to the Administrative Agent, joining each New Borrower to the Credit Agreement, the Intercompany Subordination Agreement and any
other applicable Loan Documents; 
 (3) such updated Schedules to the Loan Documents as requested by the Administrative Agent
or the Canadian Administrative Agent with regard to the New Borrowers (including, without limitation, an updated Schedule 6.1(b)); 
 (4) a certificate of a Responsible Officer of each New Borrower certifying as to the incumbency and genuineness of the signature of each officer of each New Borrower executing the Loan Documents to which it is a party
and certifying that attached thereto is a true, correct and complete copy of (w) the articles or certificate of incorporation or 

  

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formation of each New Borrower and all amendments thereto, certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of
incorporation or formation, (x) the bylaws or other governing document of each New Borrower as in effect on the date hereof, (y) resolutions duly adopted by the board of directors or other governing body of each New Borrower authorizing
the transactions contemplated hereunder and the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party, and (z) certificates as of a recent date of the good standing of each New Borrower under
the laws of its jurisdiction of incorporation or formation; 
 (5) an originally executed counterpart of a collateral
agreement, in form and substance satisfactory to the Administrative Agent, executed by each New Borrower in favor of the Administrative Agent and the other Secured Parties and all other Security Documents entered into in connection therewith (the
“New Borrower Security Documents”), together with all schedules, exhibits and annexes thereto; 
 (6) all
filings and recordations that are necessary to perfect the security interests of the Administrative Agent, on behalf of itself and the other Secured Parties, in the Collateral granted by each New Borrower under the New Borrower Security Documents
and evidence satisfactory to the Administrative Agent that upon such filings and recordations such security interests constitute valid and perfected first priority Liens therein; 
 (7) the results of a Lien search (including a search as to judgments, pending litigation and tax matters) made against each New Borrower
under the Uniform Commercial Code (or applicable judicial docket) as in effect in each jurisdiction in which filings or recordations under the Uniform Commercial Code should be made to evidence or perfect security interests in all assets of each New
Borrower, indicating among other things that the assets of each New Borrower are free and clear of any Liens (except Permitted Liens); 
 (8) evidence in form and substance reasonably satisfactory to the Administrative Agent confirming: (x) the adequacy and effectiveness of the property and liability insurance coverage of the Borrower (including,
without limitation, coverage of each New Borrower) and its Subsidiaries and (y) the interest of the Administrative Agent (as loss payee and additional insured and, with respect to the real property subject to the New Borrower Mortgages, as
mortgagee) with respect to such insurance coverage; 
 (9) a duly executed counterpart of each New Borrower Mortgage;

  

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 (10) all filings and recordations that are necessary to perfect the security interests
of the Administrative Agent, on behalf of itself, the other Secured Parties and the Canadian Secured Parties, in the Collateral granted by each New Borrower under each New Borrower Mortgage and evidence satisfactory to the Administrative Agent that
upon such filings and recordations such security interests constitute valid and perfected first priority Liens therein; 
 (11) duly executed copies of amended and restated Notes to replace the Notes issued to the applicable Lenders on or prior to the date each New Borrower is joined pursuant to clause (1) above; 
 (12) each original New Borrower Note, along with a blank endorsement executed by the applicable Subsidiary of the Original Borrower
(which such endorsement shall be in form and substance satisfactory to the Administrative Agent); 
 (13) favorable opinions
of counsel of each New Borrower addressed to the Administrative Agent and the Lenders with respect to the New Borrowers, this Agreement, each of the New Borrower Mortgages and the other Loan Documents to which the New Borrowers are a party and such
other matters as the Lenders shall request (which such opinions shall expressly permit reliance by successors and assigns of the Administrative Agent or any Lender); and 
 (14) such other instruments, documents and certificates as the Administrative Agent shall reasonably request. 
 (C) Within forty-five (45) days of the date upon which each New Borrower is joined as a Credit Party pursuant to
Section 8.10(e)(ii)(B): 
 (1) a final title policy, insuring the first priority Liens of the Secured Parties and
the Canadian Secured Parties and showing no Liens prior to the Liens of the Secured Parties and the Canadian Secured Parties other than for ad valorem taxes not yet due and payable, with title insurance companies acceptable to the Administrative
Agent, on each of the Coosa Pines Mill Real Property and Grenada Mill Real Property (it being agreed that the Borrower and its Subsidiaries shall provide or obtain any customary affidavits and indemnities as may be required or necessary to obtain
title insurance satisfactory to the Administrative Agent); 
 (2) copies of all recorded documents creating exceptions to the
title policies referred to in Section 8.10(e)(ii)(C)(1);  
 (3) a certification form of a certification from the
National Research Center, or any successor agency thereto, regarding each of the Coosa Pines Mill Real Property and the Grenada Mill Real Property; 
  

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 (4) copies of as-built surveys of a recent date of each of the Coosa Pines Mill Real
Property and the Grenada Mill Real Property, in each case certified as of a recent date by a registered engineer or land surveyor. Each such survey shall be accompanied by an affidavit (a “Survey Affidavit”) of an authorized
signatory of the owner of such property stating that there have been no improvements or encroachments to the property since the date of the respective survey such that the existing survey is no longer accurate. Each such survey shall show the area
of such property, all boundaries of the land with courses and distances indicated, including chord bearings and arc and chord distances for all curves, and shall show dimensions and locations of all easements, private drives, roadways, and other
facts materially affecting such property, and shall show such other details as the Administrative Agent may reasonably request, including, without limitation, any encroachment (and the extent thereof in feet and inches) onto the property or by any
of the improvements on the property upon adjoining land or upon any easement burdening the property; any improvements, to the extent constructed, and the relation of the improvements by distances to the boundaries of the property, to any easements
burdening the property, and to the established building lines and the street lines; and if improvements are existing, (x) a statement of the number of each type of parking space required by Applicable Laws, ordinances, orders, rules,
regulations, restrictive covenants and easements affecting the improvement, and the number of each such type of parking space provided, and (y) the locations of all utilities serving the improvement; 
 (5) a Phase I environmental assessment and such other environmental report reasonably requested by the Administrative Agent regarding
each of the Coosa Pines Mill Real Property and the Grenada Mill Real Property, in each case prepared by an environmental engineering firm acceptable to the Administrative Agent showing no environmental conditions in violation of Environmental Laws
or liabilities under Environmental Laws, either of which could reasonably be expected to have a Material Adverse Effect; and 
 (6) such other certificates, documents and information (including, without limitation, engineering and structural reports, permanent certificates of occupancy and evidence of zoning compliance, in each case, with respect to each of the
Coosa Pines Mill Real Property and the Grenada Mill Real Property) as may be reasonably requested by the Administrative Agent, all in form, consent and scope reasonably satisfactory to the Administrative Agent. 
 (iii) In each case noted above, the Administrative Agent shall have received, on behalf of itself, the Lenders and any other applicable
Person, all accrued and unpaid fees, expenses or commissions payable to the Administrative Agent and the Lenders under this Agreement (including, without limitation, legal (including, without limitation, 

  

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local counsel) fees and expenses) and such amounts as may be due to any other Person in connection with the transactions contemplated hereby, including all
taxes, fees and other charges in connection with the execution, delivery, recording, filing and registration of any of the Loan Documents. 
 SECTION 8.11 Use of Proceeds. The Borrower shall use the proceeds of the Extensions of Credit (a) to finance the acquisition of Capital Assets, (b) to refinance the Existing Facilities and (c) for working capital and
general corporate purposes of the Borrower and its Subsidiaries, including the payment of certain fees and expenses incurred in connection with this Agreement. 
 SECTION 8.12 Further Assurances. Make, execute and deliver all such additional and further acts, things, deeds and instruments as the Administrative Agent or the Required Agreement Lenders (through the
Administrative Agent) may reasonably require to document and consummate the transactions contemplated hereby and to vest completely in and insure the Administrative Agent and the Lenders their respective rights under this Agreement, the Letters of
Credit and the other Loan Documents. 
 ARTICLE IX 
 FINANCIAL COVENANTS 
 Until all of the Obligations have been paid and satisfied in full and the
Commitment terminated, unless consent has been obtained in the manner set forth in Section 13.2, the Borrower and its Subsidiaries on a Consolidated basis will not: 
 SECTION 9.1 Consolidated Senior Secured Leverage Ratio: As of any fiscal quarter end, permit the Consolidated Senior Secured Leverage Ratio to be greater
than the corresponding ratio set forth below: 
  

			
	 Applicable Period
	  	 Maximum Ratio

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

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

  

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date, to (b) Consolidated Interest Expense paid or payable in cash for the period of four (4) consecutive fiscal quarters ending on or immediately
prior to such date, to be less than the corresponding ratio set forth below: 
  

			
	 Applicable Period
	  	 Minimum Ratio

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

 ARTICLE X 
 NEGATIVE COVENANTS 
 Until all of the Obligations have been paid and satisfied in full and the
Commitment terminated, unless consent has been obtained in the manner set forth in Section 13.2, the Borrower will not and will not permit any of its Subsidiaries to: 
 SECTION 10.1 Limitations on Indebtedness. Create, incur, assume or suffer to exist any Indebtedness except: 
 (a) (i) the Obligations (excluding Hedging Obligations permitted pursuant to Section 10.1(c)) and (ii) the Guaranty Obligations in favor
of the Administrative Agent for the benefit of the Secured Parties; 
 (b) (i) the Canadian Obligations (excluding any Canadian Obligations
pursuant to Hedging Agreements permitted pursuant to Section 10.1(c)) and (ii) the Guaranty Obligations in respect of the Canadian Obligations in favor of the Canadian Administrative Agent for the benefit of the Canadian Secured
Parties; 
 (c) Indebtedness incurred in connection with a Hedging Agreement (i) which is entered into for interest rate, foreign
currency or other business purposes and not for speculative purposes and (ii) with a counterparty reasonably satisfactory to the Administrative Agent and the Canadian Administrative Agent; provided that any counterparty that is a Lender,
a Canadian Lender or any Affiliate thereof shall be deemed satisfactory to the Administrative Agent and the Canadian Administrative Agent; 
 (d) Indebtedness existing on the Closing Date and not otherwise permitted under this Section and, to the extent that the outstanding principal amount of such Indebtedness is in excess 

  

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of $25,000,000, listed on Schedule 10.1 (including any Indebtedness (including, without limitation, any Guaranty Obligation of Indebtedness of another
Person, but excluding the April 2008 Convertible Indebtedness) issued to refinance or to refund such Indebtedness or any Indebtedness which constitutes a renewal or extension of such Indebtedness); provided that (i) the principal amount
of such Indebtedness may not be increased at the time of such refinancing, refunding, renewal or extension except (A) by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in
connection with such refinancing, refunding, renewal or extension and by an amount equal to any existing commitments unutilized thereunder and (B) by additional amounts, to the extent that the Consolidated Total Leverage Ratio, on a pro
forma basis after giving effect to such increase, would be no greater than 5.50 to 1.00, (ii) no Default or Event of Default exists and is continuing or would be caused by the refinancing, refunding, renewal or extension thereof,
(iii) the Administrative Agent and the Canadian Administrative Agent shall have received satisfactory written evidence that the Borrower and its Subsidiaries would be in compliance with all covenants in this Agreement and the Canadian Credit
Agreement on a pro forma basis after giving effect to the refinancing, refunding, renewal or extension thereof, (iv) the weighted average life of such Indebtedness shall not be shorter than the weighted average life of the Indebtedness
being refinanced, refunded, renewed or extended, (v) any terms of subordination set forth in the Indebtedness being refinanced, refunded, renewed or extended are not adversely affected in any material respect and (vi) none of the Existing
Notes nor any Indebtedness incurred in accordance with this paragraph to refinance, refund, renew or extend the Existing Notes shall be guaranteed by the Borrower or any of its Subsidiaries (other than (A) those Existing Notes which are
guaranteed by the Borrower as of the Closing Date and identified on Schedule 10.1 as being so guaranteed and (B) any Indebtedness issued to refinance any Existing Notes which, as of the Closing Date, (1) have an outstanding
principal balance in excess of $50,000,000 and (2) mature or are subject to mandatory redemption prior to the Maturity Date); 
 (e)
Indebtedness incurred in connection with Capital Leases, including those Capital Leases existing on the Closing Date, and purchase money Indebtedness, including all purchase money Indebtedness existing on the Closing Date, in an aggregate amount not
to exceed $50,000,000 on any date of determination; 
 (f) (i) Guaranty Obligations with respect to Indebtedness permitted pursuant to
subsections (c), (e), (h), (l) and (n) of this Section (provided that any Guaranty Obligations of Indebtedness incurred pursuant to subsection (h) or, to the extent applicable,
subsection (n) of this Section shall be subordinated to the Obligations and the Canadian Obligations to the same extent as the Indebtedness that is being guaranteed); or 
 (ii) Guaranty Obligations of the Original Borrower with respect to the April 2008 Convertible Indebtedness; provided that
(A) the Original Borrower shall not be permitted to create, incur, assume or suffer to exist such Guaranty Obligations unless (1) it shall have delivered to the Administrative Agent evidence, in form and substance reasonably satisfactory
to the Administrative Agent, that the Abitibi Entities shall have consummated (or will concurrently consummate) their previously announced financing plan which will consist of the following: (x) $250,000,000 to $325,000,000 of new senior
unsecured exchange notes of Abitibi, (y) $350,000,000 to $450,000,000 of new 364-day term loans of Abitibi and (z) approximately $400,000,000 of new senior secured notes or 

  

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a term loan of Abitibi not to exceed a five year term (provided that Abitibi may replace or amend the financings described in this clause (A)(1) above
so long as such replacement or amendment consists of non-convertible debt financings of Abitibi that are not guaranteed by, or secured by the assets of, the Borrower or any of its Subsidiaries and would not reduce the aggregate amount of proceeds
reflected above in this clause (A) in excess of $50,000,000) or (2) the proceeds of such Indebtedness are used to permanently reduce, on a pro rata basis, the Commitment under this Agreement and the “Commitment” under and as
defined in the Canadian Credit Agreement and to permanently repay, on a pro rata basis, Extensions of Credit under this Agreement and Canadian Extensions of Credit under the Canadian Credit Agreement or for such other use approved in writing by the
Required Lenders (it being understood that any use that involves the reduction of the commitments or repayment of the extensions of credit under this Credit Facility or the Canadian Credit Facility shall continue to be applied to this Credit
Facility and the Canadian Credit Facility on a pro rata basis unless otherwise agreed to by the Required Agreement Lenders and the Canadian Required Agreement Lenders); and (B) such Guaranty Obligations shall be unsecured and shall not exceed
$350,000,000 in an aggregate principal amount (plus any paid-in-kind interest thereon) on any date of determination. 
 (g) (i) (A)
Indebtedness owed by any Credit Party to any other Credit Party including, without limitation, Indebtedness evidenced by the New Borrower Notes (provided that, if requested by the Administrative Agent, such Indebtedness shall be subordinated
to the Obligations on terms and conditions reasonably satisfactory to the Administrative Agent) and (B) Indebtedness owed by any Canadian Credit Party (other than the Borrower) to any other Canadian Credit Party (other than the Borrower)
(provided that, if requested by the Canadian Administrative Agent, such Indebtedness shall be subordinated to the Canadian Obligations on terms and conditions reasonably satisfactory to the Canadian Administrative Agent); 
 (ii) (A) Indebtedness owed by any Canadian Credit Party (other than the Borrower) to any Credit Party (provided that such Indebtedness shall be
payable by such Canadian Credit Party on demand by the applicable Credit Party) and (B) Indebtedness owed by any Credit Party to any Canadian Credit Party (provided that such Indebtedness shall be payable by such Credit Party (other than
the Borrower) on demand by the applicable Canadian Credit Party); 
 (iii) Indebtedness owed by any Subsidiary which is not a Credit Party or
a Canadian Credit Party to any other Subsidiary which is not a Credit Party or a Canadian Credit Party; 
 (iv) Indebtedness owed by any
Credit Party or any Canadian Credit Party to a Subsidiary that is not a Credit Party or a Canadian Party (provided that such Indebtedness (other than Indebtedness existing as of the Closing Date pursuant to the Bowater-Calhoun Arrangement)
shall be subordinated to the Obligations and the Canadian Obligations, as applicable, pursuant to an Intercompany Subordination Agreement); and 
 (v) Indebtedness owed by any Subsidiary that is not a Credit Party or a Canadian Credit Party to a Credit Party or a Canadian Credit Party (provided that such 

  

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Indebtedness shall be payable by such Subsidiary on demand by the Credit Party or the Canadian Credit Party, as applicable, to the extent required pursuant
to the Intercompany Subordination Agreement); provided that the aggregate amount of such Indebtedness incurred after the Closing Date, together with any equity or capital investments made after the Closing Date permitted pursuant to
Section 10.3(g) (without duplication), shall not exceed $50,000,000 outstanding on any date of determination (which amount shall be calculated as the net balance of such loans, advances and investments as reduced by any repayments or
distributions made with respect thereto); provided further that the limitation set forth in the preceding proviso shall not be applicable to any loans and advances made by the Borrower to Bowater Canada Finance Corporation to pay interest on
the BCFC Notes; 
 (h) Subordinated Indebtedness; provided that in the case of each issuance of Subordinated Indebtedness, (i) no
Default or Event of Default shall have occurred and be continuing or would be caused by the issuance of such Subordinated Indebtedness, (ii) the Consolidated Total Leverage Ratio on pro forma basis after giving effect to issuance of such
Subordinated Indebtedness is no greater than 5.50 to 1.00 and (iii) the Administrative Agent and the Canadian Administrative Agent shall have received satisfactory written evidence that the Borrower and its Subsidiaries would be in compliance
with all covenants contained in this Agreement and the Canadian Credit Agreement on a pro forma basis after giving effect to the issuance of any such Subordinated Indebtedness; 
 (i) Indebtedness of the Borrower or any of its Subsidiaries as an account party in respect of trade letters of credit in an aggregate amount not to
exceed $25,000,000 on any date of determination; provided that no such trade letter of credit shall be secured by any assets of the Borrower or any of its Subsidiaries other than the assets being acquired or shipped pursuant to such letter of
credit; 
 (j) Indebtedness (i) of any Person that becomes a Subsidiary after the Closing Date in connection with any Permitted
Acquisition or (ii) assumed in connection with any assets acquired in connection with any Permitted Acquisition, and the refinancing, refunding, renewal and extension (but not the increase in the aggregate principal amount) thereof;
provided that (A) such Indebtedness exists at the time such Person becomes a Subsidiary or such assets are acquired and is not created in contemplation of, or in connection with, such Person becoming a Subsidiary or such assets being
acquired and (B) notwithstanding anything to the contrary contained in this Agreement, neither the Borrower nor any other Subsidiary (other than such Person) shall have any liability or other obligation with respect to such Indebtedness (other
than any liability or other obligation of the Borrower or any of its Subsidiaries permitted hereunder which existed prior to the time that such Person became a Subsidiary or such asset was acquired); 
 (k) [Intentionally Omitted]  
 (l) Indebtedness in an aggregate principal amount not to exceed $125,000,000 in the form of Canadian cash management facilities; 
 (m) [Intentionally Omitted]; and 
  

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 (n) Additional Indebtedness not otherwise permitted pursuant to this Section in an aggregate amount
outstanding not to exceed $25,000,000. 
 SECTION 10.2 Limitations on Liens. Create, incur, assume or suffer to exist, any Lien on or
with respect to any of its assets or properties (including, without limitation, shares of Capital Stock), real or personal, whether now owned or hereafter acquired, except: 
 (a) (i) Liens of the Administrative Agent for the benefit of the Secured Parties, (ii) Liens of the Canadian Administrative Agent for the benefit of
the Canadian Secured Parties and (iii) Liens on the New Borrower Fixed Assets of the Administrative Agent for the benefit of the Secured Parties and the Canadian Secured Parties pursuant to the New Borrower Mortgages; 
 (b) Liens not otherwise permitted by this Section and in existence on the Closing Date and, with respect to each Credit Party and each Canadian Credit
Party, described on Schedule 10.2 (including Liens incurred in connection with any refinancing, refunding, renewal or extension of Indebtedness pursuant to Section 10.1(d) solely to the extent that the such Liens were in existence
on the Closing Date and described on Schedule 10.2); provided that the scope of any such Lien shall not be increased, or otherwise expanded, to cover any additional property or type of asset, as applicable, beyond that in existence on
the Closing Date; 
 (c) Liens for taxes, assessments and other governmental charges or levies not yet due or as to which the period of grace
(not to exceed thirty (30) days), if any, related thereto has not expired or which are being contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent required by GAAP; 
 (d) the claims of materialmen, mechanics, carriers, warehousemen, processors or landlords for labor, materials, supplies or rentals incurred in the
ordinary course of business, (i) which are not overdue for a period of more than thirty (30) days or (ii) which are being contested in good faith and by appropriate proceedings if adequate reserves are maintained to the extent
required by GAAP; 
 (e) Liens consisting of deposits or pledges made in the ordinary course of business in connection with, or to secure
payment of, obligations under workers’ compensation, unemployment insurance or similar legislation; 
 (f) Liens constituting
encumbrances in the nature of zoning restrictions, easements and rights or restrictions of record on the use of real property or other similar restrictions, which do not, in any case, impair the use thereof in the ordinary conduct of business;

 (g) Liens securing Indebtedness permitted under Sections 10.1(e); provided that (i) such Liens shall be created
substantially simultaneously with the acquisition or lease of the related asset, (ii) such Liens do not at any time encumber any property other than the property financed by such Indebtedness, (iii) the amount of Indebtedness secured
thereby is not increased and (iv) the principal amount of Indebtedness secured by any such Lien shall at no time exceed one hundred percent (100%) of the original purchase price or lease payment amount of such property at the time it was
acquired; 
  

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 (h) Liens securing judgments for the payment of money not constituting an Event of Default under
Section 11.1(m) or securing appeal or other surety bonds relating to such judgments; 
 (i) Liens on tangible property or
tangible assets of the Borrower or any of its Subsidiaries acquired pursuant to a Permitted Acquisition, or on tangible property or tangible assets of any Subsidiary of the Borrower which are in existence at the time that such Subsidiary of the
Borrower is acquired pursuant to a Permitted Acquisition (provided that such Liens (i) are not incurred in connection with, or in anticipation of, such Permitted Acquisition, (ii) are applicable only to specific tangible property or
tangible assets, (iii) are not “blanket” or all asset Liens and (iv) do not attach to any other property or assets of the Borrower or any of its Subsidiaries); 
 (j) Liens in existence as of the Closing Date in connection with the Bowater-Calhoun Arrangement as described in clause (b) of the definition
thereof; 
 (k) [Intentionally Omitted]; and 
 (l) Liens not otherwise permitted hereunder securing obligations not at any time exceeding in the aggregate $25,000,000. 
 SECTION 10.3 Limitations on Loans, Advances, Investments and Acquisitions. Purchase, own, invest in or otherwise acquire, directly or indirectly, any Capital Stock, interests in any partnership or joint venture
(including, without limitation, the creation or capitalization of any Subsidiary), evidence of Indebtedness or other obligation or security, all or substantially all of the business or assets of any other Person (or any portion of the business or
assets of any other Person that constitutes a line of business, a business unit or a division) or any other investment or interest whatsoever in any other Person, or make or permit to exist, directly or indirectly, any loans, advances or extensions
of credit to, or any investment in cash or by delivery of property in, any Person (collectively, “Investments”) except: 
 (a) Investments: 
 (i) existing on the Closing Date in Subsidiaries existing on the Closing Date; 
 (ii) after the Closing Date in Subsidiaries formed after the Closing Date so long as the Borrower, the Canadian Borrower and their respective
Subsidiaries comply with the applicable provisions of Section 8.10 of this Agreement and Section 8.10 of the Canadian Credit Agreement; 
 (iii) existing on the Closing Date (other than Investments in Subsidiaries on the Closing Date) and described on Schedule 10.3; 
 (b) Investments in cash and Cash Equivalents; 
 (c) Investments by the Borrower or any of its Subsidiaries in
the form of Permitted Acquisitions; 
  

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 (d) Hedging Agreements permitted pursuant to Section 10.1; 
 (e) Investments in the form of loans and advances to employees in the ordinary course of business, which, in the aggregate, do not exceed at any time
$2,000,000; 
 (f) (i) Investments in the form of intercompany Indebtedness permitted pursuant to Section 10.1(g) (other than
clause (v) of Section 10.1(g), but including, without limitation, Investments by the Original Borrower in the Parent evidenced by the New Borrower Notes so long as each of the New Borrower Notes is pledged as security for the
Obligations and delivered to the Administrative Agent, for the ratable benefit of the Secured Parties, in each case, pursuant to the terms of the Collateral Agreement), (ii) equity or capital investments made by the Borrower or any of its
Subsidiaries in any Credit Party or any Canadian Credit Party (or made in a Wholly-Owned Subsidiary that is not a Credit Party or a Canadian Credit Party and immediately contributed (directly or indirectly through one or more intermediate
Wholly-Owned Subsidiaries) into a Credit Party or a Canadian Credit Party) and (iii) equity or capital investments made by any Subsidiary that is not a Credit Party or a Canadian Credit Party in any other Subsidiary that is not a Credit Party
or a Canadian Credit Party; 
 (g) Investments in the form of intercompany Indebtedness permitted by clause (v) of
Section 10.1(g), together with equity or capital investments made by any Credit Party or any Canadian Credit Party to any Subsidiary which is not a Credit Party or a Canadian Credit Party; provided that the aggregate amount of
such intercompany Indebtedness and equity or capital investments, in each case incurred or made after the Closing Date, shall not exceed $50,000,000 outstanding on any date of determination (which amount shall be calculated as the net balance of
such loans, advances and equity or capital investments as reduced by any repayments or distributions made with respect thereto); provided further that the limitation set forth in the preceding proviso shall not be applicable to any
loans and advances made by the Borrower to Bowater Canada Finance Corporation to pay interest on the BCFC Notes; 
 (h) [Intentionally
Omitted]; and 
 (i) Investments made after the Closing Date and not otherwise permitted hereunder (including minority investments in
joint ventures) in an aggregate amount not to exceed $20,000,000 on any date of determination (which amount shall be calculated as the net balance of such Investments as reduced by any repayments or distributions made with respect thereto).

 SECTION 10.4 Limitations on Mergers and Liquidation. Merge, amalgamate, consolidate or enter into any similar combination with any
other Person or liquidate, wind-up or dissolve itself (or suffer any liquidation or dissolution) except: 
 (a) any Wholly-Owned Subsidiary of
the Borrower may be merged, amalgamated or consolidated with or into: 
 (i) the Borrower (provided that the continuing
or surviving Person shall be the Borrower); or 
 (ii) any other Wholly-Owned Subsidiary of the Borrower (provided that
the continuing or surviving Person shall (A) be a Subsidiary Guarantor in the case of a 

  

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merger, amalgamation or consolidation involving a Subsidiary Guarantor, (B) include the Canadian Borrower in the case of a merger, amalgamation or
consolidation involving the Canadian Borrower and (C) subject to clauses (i) and (ii)(B) above, be a Canadian Guarantor in the case of a merger, amalgamation or consolidation involving a Canadian Guarantor); 
 provided further that no Credit Party may be merged, amalgamated or consolidated with or into a Canadian Credit Party and no Canadian Credit Party may be
merged, amalgamated or consolidated with or into a Credit Party; 
 (b) any Wholly-Owned Subsidiary of the Borrower may merge or amalgamate
into the Person such Wholly-Owned Subsidiary was formed to acquire in connection with a Permitted Acquisition; 
 (c) any Wholly-Owned
Subsidiary of the Borrower may merge or amalgamate into any Person pursuant to an Asset Disposition of all of the assets of such Wholly-Owned Subsidiary permitted pursuant to Section 10.5; and 
 (d) any Subsidiary of the Borrower (other than the Canadian Borrower) may wind-up, liquidate or dissolve provided that (i) its assets are
transferred to the Borrower or any Wholly-Owned Subsidiary of the Borrower and (ii) if such Subsidiary is (A) a Subsidiary Guarantor then the transferee shall be a Credit Party and (B) a Canadian Guarantor (other than the Borrower)
then the transferee shall be a Canadian Credit Party. 
 SECTION 10.5 Limitations on Asset Dispositions. Make any Asset Disposition
(including, without limitation, the sale of any receivables and leasehold interests and any sale-leaseback or similar transaction) except: 
 (a) the sale of inventory in the ordinary course of business; 
 (b) the sale of obsolete, worn-out or surplus assets no longer used
or usable in the business of the Borrower or any of its Subsidiaries; 
 (c) the transfer of assets to the Borrower, the Canadian Borrower or
any Wholly-Owned Subsidiary (provided that, in the case of any such transfer of assets, (i) if the transferee of such assets is a Credit Party or a Canadian Credit Party, such Credit Party or Canadian Credit Party shall not pay more than
the fair market value of such assets (determined as of the date of the applicable transfer) and (ii) if the transferor of such assets is a Credit Party or a Canadian Credit Party, the transferee shall not pay less than the fair market value of
such assets (determined as of the date of the applicable transfer); 
 (d) the sale or discount without recourse of accounts receivable
arising in the ordinary course of business in connection with the compromise or collection thereof; 
 (e) the disposition of any Hedging
Agreement; 
 (f) the disposition of cash or Cash Equivalents; 
  

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 (g) subject to the requirements of Section 8.2(b), the sale of timberlands by the Borrower or
its Subsidiaries; 
 (h) the transfer by the Original Borrower of the Capital Stock of the New Borrowers to the Parent in connection with the
New Borrower Transactions in exchange for a promissory note or promissory notes, in form and substance satisfactory to the Administrative Agent, payable by the Parent to the Original Borrower (such notes, as amended, restated, supplemented or
otherwise modified, the “New Borrower Notes”); 
 (i) [Intentionally Omitted]; and 
 (j) Asset Dispositions of all or any portion of the New Borrower Fixed Assets; provided that: 
 (i) such Asset Disposition shall be for no less than fair market value; 
 (ii) both before and after giving to such Asset Disposition, no Default or Event of Default shall have occurred and be continuing;

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

 (iv) the terms of such Asset Disposition shall be reasonably satisfactory to the Administrative Agent and the Canadian
Administrative Agent, each in its sole discretion; and 
 (v) the Net Cash Proceeds of such Asset Disposition shall be applied
in accordance with Section 8.2(b)(ii); and 
 (k) additional Asset Dispositions not otherwise permitted pursuant to this Section
in an aggregate amount not to exceed $250,000,000 in the aggregate during the term of this Agreement (it being understood and agreed that this clause (k) shall not permit the sale of any New Borrower Fixed Assets). 
 SECTION 10.6 Limitations on Dividends and Distributions. Declare or pay any dividends upon any of its Capital Stock; purchase, redeem, retire or
otherwise acquire, directly or indirectly, any shares of its Capital Stock, or make any distribution of cash, property or assets among the holders of shares of its Capital Stock, or make any change in its capital structure which such change in its
capital structure could reasonably be expected to have a Material Adverse Effect; provided that: 
 (a) the Borrower or any Subsidiary
may pay dividends in shares of its own Capital Stock; 
 (b) the Borrower or any Subsidiary may make cash distributions or equity repurchases
pursuant to employee benefit plans or incentive compensation plans, in each case to the extent such distributions constitute compensation to executives or employees of the Borrower or of the applicable Subsidiary; 
  

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 (c) any Subsidiary may pay dividends to the holders of its Capital Stock (other than payment of dividends
to holders of the Exchangeable Shares); provided that in the case of any dividend paid by a Subsidiary that is not a Wholly-Owned Subsidiary, such dividend may be paid only if such dividend is paid on a ratable basis to the holders of such
Capital Stock in accordance with their respective ownership percentages in such Subsidiary; 
 (d) [Intentionally Omitted];

 (e) [Intentionally Omitted]; 
 (f) Bowater Canada, Inc. or Bowater Canadian Holdings Incorporated may repurchase all or a portion of the Exchangeable Shares solely through an exchange of common stock of the Parent for the Exchangeable Shares being
repurchased; 
 (g) the Borrower may make dividends and distributions to the Parent to pay: 
 (i) taxes attributable to the consolidated operations of the Borrower and its Subsidiaries; 
 (ii) the Parent Overhead Expenses in an aggregate amount per Fiscal Year not to exceed fifty percent (50%) of the aggregate amount of
Parent Overhead Expenses during such Fiscal Year; and 
 (iii) so long as no Default or Event of Default has occurred and is
continuing or would result after giving effect to such dividends or distributions, an additional amount of Parent Overhead Expenses in an aggregate amount not to exceed $10,000,000 per Fiscal Year; 
 (h) [Intentionally Omitted]; 
 (i) subject
to Section 11.1(o)(ix); so long as (i) no Default or Event of Default shall have occurred and be continuing or would be caused thereby and (ii) the Borrower shall have complied with the requirements set forth in Sections
8.10(e)(i), (ii)(A) and (ii)(B) of this Agreement and Section 8.10(e)(i) of the Canadian Credit Agreement, the Borrower may make cash distributions or dividends to the Parent which shall be invested in a Credit Party;
and 
 (j) subject to Sections 10.10 and 11.1(o)(viii)(E), the Borrower and its Subsidiaries may make cash distributions or
dividends to the Parent to allow the Parent to make required payments on Indebtedness incurred by the Parent as permitted pursuant to Section 11.1(o)(viii); provided that on each date any distribution or dividend is paid and after
giving effect thereto: 
 (i) no Default or Event of Default shall have occurred and be continuing; and 
 (ii) the Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX and
Section 11.1(o)(ix). 
 SECTION 10.7 Limitations on Exchange and Issuance of Capital Stock. Except to the extent included
as Indebtedness and incurred in accordance with Section 10.1 hereof, issue, 
  

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sell or otherwise dispose of any class or series of Capital Stock that, by its terms or by the terms of any security into which it is convertible or
exchangeable, is, or upon the happening of an event or passage of time would be, (a) convertible or exchangeable into Indebtedness unless such Indebtedness is permitted at the time pursuant to Section 10.1 or (b) required to be
redeemed or repurchased, including at the option of the holder, in whole or in part, or has, or upon the happening of an event or passage of time would have, a redemption or similar payment due. 
 SECTION 10.8 Transactions with Affiliates. Directly or indirectly (a) make any loan or advance to, or purchase or assume any note or other
obligation to or from, any of its officers, directors, shareholders or other Affiliates, or to or from any member of the immediate family of any of its officers, directors, shareholders or other Affiliates, or subcontract any operations to any of
its Affiliates or (b) enter into, or be a party to, any other transaction not described in clause (a) above with any of its Affiliates other than: 
 (i) transactions permitted by Section 10.3, 10.4, 10.6 or 10.7; 
 (ii) transactions existing on the Closing Date and described on Schedule 10.8; 
 (iii) normal compensation and reimbursement of reasonable expenses of officers and directors; and 
 (iv) other transactions in the ordinary course of business on terms as favorable as would be obtained by it on a comparable arms-length
transaction with an independent, unrelated third party. 
 SECTION 10.9 Certain Accounting Changes; Organizational Documents.

 (a) Change its Fiscal Year end, or make any change in its accounting treatment and reporting practices except as required by GAAP.

 (b) Amend, modify or change its articles of incorporation (or corporate charter or other similar organizational documents) or amend,
modify or change its bylaws (or other similar documents) in any manner which materially adversely affects the rights or interests of the Lenders or the Canadian Lenders. 
 SECTION 10.10 Amendments; Payments and Prepayments of Indebtedness. 
 (a) Amend, modify or change any
indenture or other agreement governing the Existing Notes in any respect which would materially adversely affect the rights or interests of the Administrative Agent, the Canadian Administrative Agent, the Lenders and the Canadian Lenders.

 (b) Amend, modify or change (i) any provision of this Agreement which, under Section 13.2, is subject to the approval of
the Required Lenders without amending, modifying or changing the corresponding provision in the Canadian Credit Agreement or (ii) any provision of the Canadian Credit Agreement which, under Section 14.2 of the Canadian Credit
Agreement, is subject to the approval of the Required Lenders without amending, modifying or changing the corresponding provision in this Agreement. 
  

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 (c) Amend or modify (or permit the modification or amendment of) any of the terms or provisions of any
Subordinated Indebtedness in any respect which would materially adversely affect the rights or interests of the Administrative Agent, the Canadian Administrative Agent, the Lenders and the Canadian Lenders. 
 (d) Cancel, forgive, make any payment (other than regularly scheduled interest payments) or prepayment on, or redeem or acquire for value (including,
without limitation, by way of depositing with any trustee with respect thereto money or securities before due for the purpose of paying when due, but excluding payments at the scheduled maturity thereof) all or any portion of any Subordinated
Indebtedness (other than Indebtedness incurred pursuant to Section 10.1(g)(i)), the Existing Notes or any Indebtedness incurred to refinance the Existing Notes as permitted pursuant to Section 10.1(d), except for: 

(i) refinancings, refundings, renewals, extensions or exchange of any Subordinated Indebtedness permitted by
Section 10.1(h) subject to the satisfaction of each of the conditions to a refinance, refunding, renewal or extension set forth in Section 10.1(d); 
 (ii) [Intentionally Omitted]; 
 (iii) refinancings, refundings, renewals, extensions or exchange of any Existing Notes permitted by Section 10.1(d); and 
 (iv) cash redemptions or repayments of the Existing Notes or any Indebtedness incurred to refinance the Existing Notes as permitted
pursuant to Section 10.1(d); provided that (A) no Default or Event of Default shall have occurred and be continuing at the time of such redemption or repayment or would result from such redemption or repayment and (B) if
at the time of such redemption or repayment (or immediately after giving effect thereto), the sum of (x) the principal amount of the outstanding Loans under this Credit Facility plus (y) the principal amount of the outstanding
Canadian Loans is in excess $100,000,000, the Administrative Agent shall have received satisfactory written evidence that: 
 (1) the Borrower and its Subsidiaries would be in compliance with all covenants in this Agreement on a pro forma basis after giving effect to such redemption; 
 (2) the principal amount of availability under this Credit Facility and the Canadian Credit Facility both before and after giving effect
to such redemption is equal to or greater than $50,000,000; 
 (3) the Consolidated Total Senior Secured Indebtedness, both
before and immediately after giving effect thereto, is less than or equal to eighty percent (80%) of the net book value of the Coverage Assets as set forth on the Consolidated balance sheet of the Borrower and its Consolidated Subsidiaries most
recently delivered pursuant to Section 5.2 or 7.1 hereof; and 
  

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 (4) the principal amount of outstanding loans and the face amount of outstanding letters
of credit under the Canadian Credit Facility, both before and immediately after giving effect thereto, is less than or equal to fifty percent (50%) of the net book value of the accounts receivable and inventory owned by the Canadian Borrower
and each of its Canadian Subsidiaries as set forth on the Consolidated balance sheet of the Canadian Borrower and its Consolidated Subsidiaries most recently delivered pursuant to Section 5.2 or 7.1 of the Canadian Credit
Agreement. 
 (e) Amend, modify, waive or supplement (or permit the modification, amendment, waiver or supplement of) any of the terms or
provisions of the April 2008 Convertible Indebtedness (including the Purchase Agreement dated March 24, 2008 by and between the Parent and Fairfax Financial Holdings Limited (including the exhibits and schedules thereto) and each other material
document, instrument, certificate and agreement executed or delivered in connection therewith), other than the waiver of any of the closing conditions set forth in Section 6 of the Purchase Agreement, in any respect which would adversely affect
the rights or interests of the Administrative Agent, the Canadian Administrative Agent, the Lenders and the Canadian Lenders. 
 SECTION
10.11 Restrictive Agreements. 
 (a) Enter into any Indebtedness which: 
 (i) contains any covenants more restrictive than the provisions of Articles VIII, IX and X; or 
 (ii) contains any negative pledge on assets or restricts, limits or otherwise encumbers its ability to incur Liens on or with respect to
any of its assets or properties other than the assets or properties securing such Indebtedness (other than (A) the Existing Notes (provided that such provisions may not be amended or modified to be more restrictive), (B) any
Indebtedness incurred in accordance with Section 10.1(d) to refinance the Existing Notes (provided that such provisions may not be more restrictive than those contained in the Existing Notes) and (C) the Canadian Credit
Facility (provided that such provisions shall not be amended or modified except as permitted hereunder and thereunder). 
 (b) Enter
into or permit to exist any agreement which impairs or limits the ability of any Subsidiary of the Borrower to pay dividends to the Borrower or to make or repay loans or advances to the Borrower other than (i) restrictions and conditions
imposed by Applicable Law or the Loan Documents, (ii) legally enforceable restrictions and conditions which are permitted by clause (iii) of Section 6.1(n) and (iii) customary restrictions and conditions contained in
agreements relating to the sale of a Subsidiary or its assets pending such sale; provided that such restrictions and conditions apply only to the Subsidiary that is to be sold and such sale is permitted under this Agreement. 
 SECTION 10.12 Nature of Business. Alter in any material respect the character or conduct of the business conducted by the Borrower and its
Subsidiaries as of the Closing Date. 
  

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 SECTION 10.13 Borrower Jurisdiction. No Borrower nor any Subsidiary Borrower shall at any time be,
or become, incorporated, organized or formed (as the case may be) in a Restricted Jurisdiction unless: 
 •        (a)    the Original Borrower has provided thirty (30) days prior written notice to the Administrative Agent and the Lenders of such circumstance; and 

•        (b)    subject to the rights of the Original Borrower pursuant to
Section 4.12(b), no Lender has indicated in writing to the Administrative Agent and the Original Borrower that is unable to legally do business with a Borrower or Subsidiary Borrower incorporated, organized or formed under the laws of
such Restricted Jurisdiction. 
 SECTION 10.14 Impairment of Security Interests. Take or omit to take any action, which might or would
have the result of materially impairing the security interests in favor of the Administrative Agent with respect to the Collateral or grant to any Person (other than the Administrative Agent for the benefit of itself and the Secured Parties or the
Canadian Secured Parties, as the case may be, pursuant to the Security Documents) any interest whatsoever in the Collateral, except for Permitted Liens and Asset Dispositions permitted under Section 10.5. 
 ARTICLE XI  
 DEFAULT AND REMEDIES

 SECTION 11.1 Events of Default. Each of the following shall constitute an Event of Default, whatever the reason for such event
and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment or order of any court or any order, rule or regulation of any Governmental Authority or otherwise: 
 (a) Default in Payment of Principal of Loans and Reimbursement Obligations. The Borrower or any other Credit Party shall default in any payment of
principal of any Loan or Reimbursement Obligation when and as due (whether at maturity, by reason of acceleration or otherwise). 
 (b)
Other Payment Default. The Borrower or any other Credit Party shall default in the payment when and as due (whether at maturity, by reason of acceleration or otherwise) of interest on any Loan or Reimbursement Obligation or the payment of any
other Obligation, and such default shall continue for a period of three (3) or more Business Days. 
 (c) Misrepresentation. Any
representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower or any other Credit Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith that is
subject to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in any respect when made or deemed made or any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the
Borrower or any other Credit Party herein, any other Loan Document, or in any document delivered in connection herewith or therewith that is not subject to materiality or Material Adverse Effect qualifications, shall be incorrect or misleading in
any material respect when made or deemed made. 
  

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 (d) Default in Performance of Certain Covenants. 
 (i) The Borrower or any other Credit Party shall default in the performance or observance of any covenant or agreement contained in
Sections 5.4, 7.1 (other than, solely during the time period from the Fourth Amendment Effective Date through the Conversion Date, any reporting required pursuant to subsections (g) and (h) thereof (it being agreed and
acknowledged that subsections (g) and (h) thereof shall be subject to this subsection (d) on and after the Conversion Date)), 7.2, 7.5(e)(i), 8.2(b)(ii), 8.10(e)(i), 8.10(e)(ii)(A) or
8.10(e)(ii)(C) or Articles IX or X. 
 (ii) The Borrower shall default in the performance or observance
of any covenant or agreement contained in Section 8.10(e)(ii)(B) and such default shall continue for a period of fifteen (15) days. 
 (e) Default in Performance of Other Covenants and Conditions. The Borrower or any other Credit Party shall default in the performance or observance of any term, covenant, condition or agreement contained in
this Agreement (other than as specifically provided for otherwise in this Section) or any other Loan Document and such default shall continue for a period of thirty (30) days after written notice thereof has been given to the Borrower by the
Administrative Agent. 
 (f) Hedging Agreement. The Borrower or any other Credit Party shall default in the performance or observance
of any terms, covenant, condition or agreement (after giving effect to any applicable grace or cure period) under any Hedging Agreement and such default causes the termination of such Hedging Agreement and the Termination Value owed by such Credit
Party as a result thereof exceeds $25,000,000. 
 (g) Indebtedness Cross-Default. 
 (i) Any “Event of Default” (as defined in the Canadian Credit Agreement) shall occur under the Canadian Credit Agreement.

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

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

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

  

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when due of all amounts which, under the provisions of any Canadian Pension Plan or other Applicable Law, the Borrower or any of its Subsidiaries is required
to pay as contributions thereto, (iii) an accumulated funding deficiency in excess of $25,000,000 occurs or exists, whether or not waived, with respect to any Pension Plan or Canadian Pension Plan, (iv) a Termination Event, (v) the
Borrower or any of its Subsidiaries or any of their ERISA Affiliates as employers under one or more Multiemployer Plans makes a complete or partial withdrawal from any such Multiemployer Plan and the plan sponsor of such Multiemployer Plan notifies
such withdrawing employer that such employer has incurred a withdrawal liability requiring payments in an amount exceeding $25,000,000 or (vi) the Borrower or any of its Subsidiaries as employers under one or more Canadian Multiemployer Plans
makes a complete or partial withdrawal from any such Canadian Multiemployer Plan and the plan sponsor of such Canadian Multiemployer Plans notifies such withdrawing employer that such employer has incurred a withdrawal liability requiring payments
in an amount exceeding $25,000,000. 
 (m) Judgment. A judgment or order for the payment of money which causes the aggregate amount of
all such judgments or orders to exceed (i) $10,000,000 in the aggregate (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage) or (ii) $50,000,000 in the aggregate (regardless of
insurance) shall be entered against the Borrower or any of its Subsidiaries by any court and such judgment or order shall continue without having been paid and satisfied, discharged, vacated or stayed for a period of thirty (30) days after the
entry thereof. 
 (n) Environmental. Any one or more Environmental Claims shall have been asserted against the Borrower or any of its
Subsidiaries; the Borrower or any of its Subsidiaries would be reasonable likely to incur liability as a result thereof; and such liability would be reasonably likely, individually or in the aggregate, to have a Material Adverse Effect. 

(o) Activities of Parent. The Parent shall engage in any business, operations or activities other than: 
 (i) (A) holding all of the Capital Stock of the Original Borrower, each New Borrower, the Donohue Corp., a Delaware corporation (or an
intermediate holding company that owns the Capital Stock of the Donahue Corp.) and Abitibi-Consolidated Inc. or any of its subsidiaries; (B) holding certain preferred Capital Stock of Bowater Canadian Holdings Incorporated, a company organized
under the laws of Nova Scotia, so long as promptly upon receipt thereof, the Parent either (1) distributes such Capital Stock to the Original Borrower, (2) distributes such Capital Stock to another Credit Party or (3) pledges such
Capital Stock as collateral support for the Obligations in accordance with the Collateral Agreement, (C) the employment of management and (D) activities reasonably complimentary and related to the foregoing (including, without limitation,
investments in the Borrower); 
 (ii) guaranteeing the Obligations in favor of the Administrative Agent, for the ratable
benefit of the Secured Parties, pursuant to the Parent Guaranty Agreement; 
 (iii) [Intentionally Omitted];

  

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 (iv) granting a security interest in its assets and properties (other than (A) the
Capital Stock of the Borrower or (B) in connection with the Indebtedness permitted pursuant to the following clause (viii)); provided that (x) the Administrative Agent is given a Lien on such assets and properties that is prior to
such other Lien, or (y) to the extent that a Lien is granted in the stock of Abitibi-Consolidated Inc., then the Administrative Agent shall be granted a Lien in the stock of the Original Borrower; 
 (v) granting a security interest in the Capital Stock of the Borrower in favor of the Administrative Agent, for the ratable benefit of the
Secured Parties, to secure the Obligations; 
 (vi) engaging in non-revenue generating activities reasonably related to
restructuring of the Subsidiaries of the Parent; provided, that in the case of any restructuring involving the Credit Parties or the Canadian Credit Parties, the Administrative Agent and the Canadian Administrative Agent shall have received
(A) an organizational chart of the Parent and its Subsidiaries after giving effect thereto and (B) a final summary of the steps involved in any such restructuring; 
 (vii) guaranteeing obligations of Subsidiaries of the Parent or of the Abitibi Entities to the extent that such obligations are unsecured,
relate to indemnification obligations with respect to asset sales or trade obligations incurred in the ordinary course of business and do not constitute Indebtedness of such Subsidiary or of such Abitibi Entity; and 
 (viii) to the extent not otherwise permitted hereunder and so long as the Borrower shall have complied with the requirements set forth in
Section 8.10(e)(i) of this Agreement, incurring unsecured Indebtedness; provided, that: 
 (A) the
Administrative Agent and the Canadian Administrative Agent shall have received reasonably satisfactory written evidence that the Borrower and its Subsidiaries would be in compliance with the covenants set forth in Article IX and
Section 11.1(o)(ix) on a pro forma basis after giving effect to such Indebtedness; 
 (B) no Default or
Event of Default shall have occurred and be continuing or would be caused by the issuance of such Indebtedness; 
 (C) no
portion of such Indebtedness of the Parent may be recourse to any Credit Party (except to the extent permitted pursuant to Section 10.1(d) or (f)(ii)) or any Canadian Credit Party (it being understood and agreed that no Credit
Party (except to the extent permitted pursuant to Section 10.1(d) or (f)(ii)) or Canadian Credit Party shall have any obligation whatsoever to repay such Indebtedness or any other obligation related thereto); 
 (D) [Intentionally Omitted]; 
 (E) the Parent may not cancel, forgive or make any payment (other than regularly scheduled interest payments) or prepayments on, or redeem or 

  

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acquire for value (including, without limitation, by way of depositing with any trustee with respect thereto money or securities before due for the purpose
of paying when due, but excluding payments at the scheduled maturity thereof) any such Indebtedness; provided, that the Parent may pay a cash settlement of any convertible Indebtedness so long as on the date of any such payment and after
giving effect thereto: 
 (1) no Default or Event of Default shall have occurred and be continuing; 
 (2) the Borrower shall be in pro forma compliance with each of the covenants set forth in Article IX; 
 (3) the Aggregate Credit Exposure shall not exceed $100,000,000; and 
 (4) the pro forma Consolidated Total Leverage Ratio shall not exceed 4.50 to 1.00; 
 (F) except to the extent such Indebtedness is guaranteed by a Credit Party pursuant to Section 10.1(d), the proceeds of such
Indebtedness are used solely for working capital and general corporate purposes of, or to repay outstanding Indebtedness of, the Parent and its Subsidiaries or any Abitibi Entity; 
 (ix) holding a cash balance in the deposit, securities and other investment accounts of the Parent as of the end of any Business Day in
excess of $25,000,000, unless the amount of such balance that is in excess of $25,000,000 is as promptly as possible, but in no event later than one (1) Business Day, invested in the Borrower; provided that notwithstanding this
Section 11.1(o)(ix), the Parent may retain the proceeds of the April 2008 Convertible Indebtedness until no later than April 15, 2008; and 
 (x) to the extent not otherwise permitted hereunder, incurring Indebtedness payable to the Original Borrower pursuant to the New Borrower Notes. 
 SECTION 11.2 Remedies. Upon the occurrence of an Event of Default, with the consent of the Required Agreement Lenders, the Administrative Agent
may, or upon the request of the Required Agreement Lenders, the Administrative Agent shall, by notice to the Borrower: 
 (a)
Acceleration; Termination of Facilities. Terminate the Commitment and declare the principal of and interest on the Loans and the Reimbursement Obligations at the time outstanding, and all other amounts owed to the Lenders and to the
Administrative Agent under this Agreement or any of the other Loan Documents (including, without limitation, all L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented or shall be entitled to
present the documents required thereunder) and all other Obligations (other than Hedging Obligations), to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other notice
of any kind, all of which are expressly waived by each Credit Party, anything in this Agreement or the other Loan Documents to the contrary notwithstanding, and terminate the 

  

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Credit Facility and any right of the Borrower to request borrowings or Letters of Credit thereunder; provided, that upon the occurrence of an Event of
Default specified in Section 11.1(i) or (j), the Credit Facility shall be automatically terminated and all Obligations (other than Hedging Obligations) shall automatically become due and payable without presentment, demand,
protest or other notice of any kind, all of which are expressly waived by each Credit Party, anything in this Agreement or in any other Loan Document to the contrary notwithstanding. 
 (b) Letters of Credit. With respect to all Letters of Credit with respect to which presentment for honor shall not have occurred at the time of an
acceleration pursuant to the preceding paragraph, the Borrower shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit.
Amounts held in such cash collateral account shall be applied by the Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully
drawn upon, if any, shall be applied to repay the other Obligations on a pro rata basis. After all such Letters of Credit shall have expired or been fully drawn upon, the Reimbursement Obligation shall have been satisfied and all other
Obligations shall have been paid in full, the balance, if any, in such cash collateral account shall be returned to the Borrower. 
 (c)
Rights of Collection. Exercise on behalf of the Lenders all of its other rights and remedies under this Agreement, the other Loan Documents and Applicable Law, in order to satisfy all of the Borrower’s Obligations. 
 SECTION 11.3 Rights and Remedies Cumulative; Non-Waiver; etc. The enumeration of the rights and remedies of the Administrative Agent and the
Lenders set forth in this Agreement is not intended to be exhaustive and the exercise by the Administrative Agent and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be
cumulative, and shall be in addition to any other right or remedy given hereunder or under the other Loan Documents or that may now or hereafter exist at law or in equity or by suit or otherwise. No delay or failure to take action on the part of the
Administrative Agent or any Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the
exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default. No course of dealing between the Borrower, the Administrative Agent and the Lenders or their respective agents or employees shall be
effective to change, modify or discharge any provision of this Agreement or any of the other Loan Documents or to constitute a waiver of any Event of Default. 
 SECTION 11.4 Crediting of Payments and Proceeds. In the event that the Borrower shall fail to pay any of the Obligations when due or the Obligations have been accelerated pursuant to Section 11.2,
all payments received by the Lenders upon the Obligations and all net proceeds from the enforcement of the Obligations shall be applied: 
 First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts, including attorney fees, payable to the Administrative Agent in its capacity as such and each Issuing Lender in its
capacity as such (ratably among the Administrative Agent and each Issuing Lender in proportion to the respective amounts described in this clause First payable to them); 
  

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 Second, to payment of that portion of the Obligations constituting fees, indemnities and other
amounts (other than principal and interest) payable to the Lenders, including attorney fees (ratably among the Lenders in proportion to the respective amounts described in this clause Second payable to them); 
 Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and Reimbursement Obligations
(including any accrued and unpaid interest thereon) (ratably among the Lenders in proportion to the respective amounts described in this clause Third payable to them); 
 Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and Reimbursement Obligations (ratably among the
Lenders in proportion to the respective amounts described in this clause Fourth held by them); 
 Fifth, to the Administrative
Agent for the account of each Issuing Lender, to cash collateralize any L/C Obligations then outstanding (ratably among the Issuing Lenders in proportion to the respective amounts described in this clause Fifth payable to them); 

Sixth, to the payment of that portion of the Obligations constituting Hedging Obligations (including any termination payments and any accrued
and unpaid interest thereon) (ratably among the Secured Parties providing the Hedging Agreements giving rise to such Hedging Obligations in proportion to the respective amounts described in this clause Sixth payable to them); and 

Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by
Applicable Law. 
 SECTION 11.5 Administrative Agent May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or L/C Obligation shall
then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention in such proceeding or
otherwise: 
 (a) to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C
Obligations and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Sections 3.3, 4.3 and 13.3)
allowed in such judicial proceeding; and 
 (b) to collect and receive any monies or other property payable or deliverable on any such claims
and to distribute the same; 
  

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 and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent
any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Sections 3.3, 4.3 and 13.3.

 Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any
plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding. 
 ARTICLE XII  
 THE ADMINISTRATIVE
AGENT 
 SECTION 12.1 Appointment and Authority. Each of the Lenders and each of the Issuing Lenders hereby irrevocably appoints
Wachovia to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative
Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and the Issuing Lenders, and neither
the Borrower nor any of its Subsidiaries shall have rights as a third party beneficiary of any of such provisions. 
 SECTION 12.2 Rights
as a Lender. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent and the term
“Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were
not the Administrative Agent hereunder and without any duty to account therefor to the Lenders. 
 SECTION 12.3 Exculpatory
Provisions. The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents. Without limiting the generality of the foregoing, the Administrative Agent: 
 (a) shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing; 
 (b) shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly
contemplated hereby or by the other Loan Documents that the Administrative Agent is required to exercise as directed in writing by the Required Lenders or Required Agreement Lenders, as applicable (or such other 

  

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number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents), provided that the Administrative Agent
shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law; and 
 (c) shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity. 
 The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders or Required
Agreement Lenders, as applicable (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 13.2
and Section 11.2) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final nonappealable judgment. The Administrative Agent shall be deemed not to have
knowledge of any Default unless and until notice describing such Default is given to the Administrative Agent by the Borrower, a Lender or an Issuing Lender in accordance with Section 13.1. In the event that the Administrative Agent
receives such a notice, it shall promptly give notice thereof to the Lenders and the Issuing Lenders. 
 The Administrative Agent shall not be responsible
for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document
delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default,
(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document or (v) the satisfaction of any condition set forth in Article V or
elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
 SECTION 12.4
Reliance by the Administrative Agent. The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition hereunder to the making of a Loan, or the
issuance of a Letter of Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the applicable Issuing Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender or such Issuing Lender
unless the Administrative Agent shall have received notice to the contrary from such Lender or such Issuing Lender prior to the making of such Loan or the issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel
(who may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 

 

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 SECTION 12.5 Delegation of Duties. The Administrative Agent may perform any and all of its duties
and exercise its rights and powers hereunder or under any other Loan Document by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all of its duties and
exercise its rights and powers by or through their respective Related Parties. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall
apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as Administrative Agent. 
 SECTION 12.6 Resignation of Administrative Agent. 
 (a) The Administrative Agent may at any time give
notice of its resignation to the Lenders, each Issuing Lender and the Borrower. Upon receipt of any such notice of resignation, the Required Agreement Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which
shall be a bank with an office in the United States, or an Affiliate of any such bank with an office in the United States. If no such successor shall have been so appointed by the Required Agreement Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may on behalf of the Lenders and the Issuing Lenders, appoint a successor Administrative Agent meeting the
qualifications set forth above provided that if the Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective in accordance with
such notice and (i) the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on
behalf of any Lender or any Issuing Lender under any of the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (ii) all
payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender and each Issuing Lender directly, until such time as the Required Agreement Lenders appoint a
successor Administrative Agent as provided for above in this paragraph. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this paragraph). The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor. After the
retiring Administrative Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article and Section 13.3 shall continue in effect for the benefit of such retiring Administrative Agent, its sub-agents
and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent. 
  

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 (b) Any resignation by Wachovia as Administrative Agent pursuant to this Section shall also constitute
its resignation as an Issuing Lender and the Swingline Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, (i) such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring Issuing Lender and Swingline Lender, (ii) the retiring Issuing Lender and Swingline Lender shall be discharged from all of their respective duties and obligations hereunder or under the other Loan
Documents, and (iii) the successor Issuing Lender shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or make other arrangement satisfactory to the retiring Issuing Lender
to effectively assume the obligations of the retiring Issuing Lender with respect to such Letters of Credit. 
 SECTION 12.7 Non-Reliance
on Administrative Agent and Other Lenders. Each Lender and each Issuing Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender and each Issuing Lender also acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder. 
 SECTION 12.8
No Other Duties, etc. Anything herein to the contrary notwithstanding, none of the syndication agents, documentation agents, co-agents, book manager, lead manager, arranger, lead arranger or co-arranger listed on the cover page or signature
pages hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or an Issuing Lender hereunder. 
 SECTION 12.9 Collateral and Guaranty Matters. The Lenders irrevocably authorize the Administrative Agent, at its option and in its discretion,

 (a) to release any Lien on any Collateral granted to or held by the Administrative Agent, for the ratable benefit of the Secured Parties,
under any Loan Document (i) upon repayment of the outstanding principal of and all accrued interest on the Loans and Reimbursement Obligations, payment of all outstanding fees and expenses hereunder, the termination of the Commitment and the
expiration or termination of all Letters of Credit, (ii) that is sold or to be sold or otherwise transferred as part of or in connection with any sale or transfer permitted hereunder or under any other Loan Document, or (iii) subject to
Section 13.2, if approved, authorized or ratified in writing by the Required Agreement Lenders; 
 (b) to subordinate or release
any Lien on any Collateral granted to or held by the Administrative Agent under any Loan Document to the holder of any Permitted Lien; and 
 (c) to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement, the Collateral Agreement and any other Loan Documents if such Person ceases to be a Subsidiary as a result of a transaction(s) permitted
hereunder. 
  

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 Upon request by the Administrative Agent at any time, the Required Agreement Lenders will confirm in
writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Subsidiary Guarantor from its obligations under the Subsidiary Guaranty Agreement pursuant to this
Section. 
 ARTICLE XIII  
 MISCELLANEOUS 
 SECTION 13.1 Notices. 
 (a) Method of Communication. Except as otherwise provided in this Agreement, all notices and
communications hereunder shall be in writing (for purposes hereof, the term “writing” shall include information in electronic format such as electronic mail and internet web pages), or by telephone subsequently confirmed in writing. Any
notice shall be effective if delivered by hand delivery or sent via electronic mail, posting on an internet web page, telecopy, recognized overnight courier service or certified mail, return receipt requested, and shall be presumed to be received by
a party hereto (i) on the date of delivery if delivered by hand or sent by electronic mail, posting on an internet web page, telecopy, (ii) on the next Business Day if sent by recognized overnight courier service and (iii) on the
third (3rd) Business Day following the date sent by certified mail, return receipt requested. A telephonic notice to the Administrative Agent
as understood by the Administrative Agent will be deemed to be the controlling and proper notice in the event of a discrepancy with or failure to receive a confirming written notice. 
 (b) Addresses for Notices. Notices to any party shall be sent to it at the following addresses, or any other address as to which all the other
parties are notified in writing. 
  

			
	If to the Borrower:	  	Bowater Incorporated
		  	55 East Camperdown Way
		  	Greenville, SC 29602-1028
		  	Attention: Treasurer
		  	Telephone No.: (864) 282-9413
		  	Telecopy No.: (864) 282-9219
		
	With copies to:	  	Hazen H. Dempster
		  	Troutman Sanders LLP
		  	Suite 5200
		  	600 Peachtree Street, N.E.
		  	Atlanta, Georgia 30308-2216
		  	Telephone No.: (404) 885-3126
		  	Telecopy No.: (404) 962-6544
		
	If to Wachovia as	  	Wachovia Bank, National Association
	Administrative Agent:	  	NC0680
		  	1525 West W. T. Harris Blvd.
		  	Charlotte, North Carolina 28262

  

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	 	  	Attention: Syndication Agency Services
		  	Telephone No.: (704) 590-2703
		  	Telecopy No.: (704) 590-3481
		
	If to any Lender:	  	To the address set forth on the Register

 (c) Administrative Agent’s Office. The Administrative Agent hereby designates its
office located at the address set forth above, or any subsequent office which shall have been specified for such purpose by written notice to the Borrower and Lenders, as the Administrative Agent’s Office referred to herein, to which payments
due are to be made and at which Loans will be disbursed and Letters of Credit requested. 
 SECTION 13.2 Amendments, Waivers and
Consents. Except as set forth below or as specifically provided in any Loan Document, any term, covenant, agreement or condition of this Agreement or any of the other Loan Documents may be amended or waived by the Lenders, and any consent given
by the Lenders, if, but only if, (a) in the case of an amendment, waiver or consent for which a substantially similar corresponding amendment, waiver or consent with regard to the Canadian Credit Agreement will be made effective thereunder
contemporaneously, such amendment, waiver or consent is in writing signed by the Required Lenders (or by the Administrative Agent with the consent of the Required Lenders) and delivered to the Administrative Agent and, in the case of an amendment,
signed by the Borrower and (b) in the case of any other amendment, waiver or consent specifically impacting only this Agreement and the other Loan Documents, such amendment, waiver or consent is in writing signed by the Required Agreement
Lenders (or by the Administrative Agent with the consent of the Required Agreement Lenders) and delivered to the Administrative Agent and, in the case of an amendment, signed by the Borrower; provided, that no amendment, waiver or consent
shall: 
 (a) waive any condition set forth in Section 5.2 without the written consent of each Lender directly affected thereby;

 (b) extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 11.2) or the
amount of Loans of any Lender without the written consent of such Lender; 
 (c) postpone any date fixed by this Agreement or any other Loan
Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided, that only
the consent of the Required Lenders shall be necessary in order to waive (in whole or in part) any prepayment required pursuant to Section 8.2(b). 
 (d) reduce the principal of, or the rate of interest specified herein on, any Loan or Reimbursement Obligation, or (subject to clause (iv) of the second proviso to this Section) any fees or other amounts payable
hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; provided that only the consent of the Required Agreement Lenders shall be necessary to waive any obligation of the Borrower to
pay interest at the rate set forth in Section 4.1(c) during the continuance of an Event of Default; 
  

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 (e) change Section 4.4 or Section 11.4 in a manner that would alter the
pro rata sharing of payments required thereby without the written consent of each Lender directly affected thereby; 
 (f)
change any provision of this Section or the definitions of “Required Lenders” or “Required Agreement Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender and each Canadian Lender directly affected thereby; 
 (g) increase the percentage specified in the definition of “Asset Coverage Amount”; reduce or eliminate any of the Indebtedness specified in
part (b) of the definition of “Consolidated Total Senior Secured Indebtedness” in determining the Borrowing Limit; or add additional categories or types of assets to the definition of “Coverage Assets”, in each case without
the written consent of each Lender directly affected thereby; 
 (h) release all of the Guarantors or release Guarantors comprising
substantially all of the credit support for the Obligations, in either case, from any Guaranty Agreement (other than as authorized in Section 12.9), without the written consent of each Lender; 
 (i) release all or substantially all of the Collateral or release any Security Document (other than as authorized in Section 12.9 or as
otherwise specifically permitted or contemplated in this Agreement or the applicable Security Document) without the written consent of each Lender; or 
 (j) change Article XI of the Canadian Credit Agreement without the written consent of each Lender; 
 (k) add as Collateral any assets of any Person that is not organized under the laws of the United States or any state thereof without the written consent of the Canadian Administrative Agent and the Canadian Required Agreement Lenders (it
being understood that under the terms of the Canadian Credit Agreement a vote of the Administrative Agent and the Required Agreement Lenders shall be required to add as Collateral for the Canadian Credit Facility any assets of any Person that is not
organized under the laws of Canada or any province thereof); or 
 (l) join as a Credit Party any Person that is not organized under the laws
of the United States or any state thereof without the written consent of the Canadian Administrative Agent and the Canadian Required Agreement Lenders (it being understood that under the terms of the Canadian Credit Agreement a vote of the
Administrative Agent and the Required Agreement Lenders shall be required to join as a Canadian Credit Party any Person that is not organized under the laws of Canada or any province thereof); 
 provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the applicable Issuing Lender in addition to the
Lenders required above, affect the rights or duties of such Issuing Lender under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent shall,
unless in writing and signed by the Swingline Lender in addition to the Lenders required above, affect the rights or duties of the Swingline Lender under this Agreement; (iii) no amendment, 

  

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waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of
the Administrative Agent under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding anything to the
contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender.

 SECTION 13.3 Expenses; Indemnity. 
 (a) Costs and Expenses. The Borrower and the other Credit Parties, jointly and severally, shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and its Affiliates
(including the reasonable fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the credit facilities provided for herein, the preparation, negotiation, execution, delivery and administration
of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by each Issuing Lender in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder, (iii) all out-of-pocket expenses incurred by the
Administrative Agent, any Lender or any Issuing Lender (including the fees, charges and disbursements of any counsel for the Administrative Agent, any Lender or any Issuing Lender), in connection with the enforcement or protection of its rights
(A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, (B) in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans or Letters of Credit or (C) with respect to the preservation and protection of the Collateral and (iv) all out-of-pocket expenses and costs heretofore and from time
to time hereafter incurred by the Administrative Agent during the course of periodic field audits, examinations and appraisals with respect to the Collateral and the operations of the Credit Parties and their Subsidiaries, plus a per diem charge at
the Administrative Agent’s then standard rate for the Administrative Agent’s examiners in the field and office. 
 (b)
Indemnification. The Borrower and the other Credit Parties shall indemnify the Administrative Agent (and any sub-agent thereof), each Lender and each Issuing Lender, and each Related Party of any of the foregoing Persons (each such Person
being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims (including, without limitation, any Environmental Claims or civil penalties or fines assessed by OFAC), damages, liabilities
and related expenses (including the fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower or any other Credit Party arising out of, in
connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any Issuing Lender to honor a
demand for payment under a Letter of Credit if the documents presented in connection with such 

  

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demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or
from any property owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Claim related in any way to the Borrower or any of its Subsidiaries, (iv) any actual or prospective claim, litigation, investigation or
proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third party or by the Borrower or any other Credit Party, and regardless of whether any Indemnitee is a party thereto, or
(v) any claim (including, without limitation, any Environmental Claims or civil penalties or fines assessed by OFAC), investigation, litigation or other proceeding (whether or not the Administrative Agent or any Lender is a party thereto) and
the prosecution and defense thereof, arising out of or in any way connected with the Loans, this Agreement, any other Loan Document, or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or
thereby, including without limitation, reasonable attorneys and consultant’s fees, provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower or
any other Credit Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Loan Document, if the Borrower or such Credit Party has obtained a final and nonappealable judgment in its favor
on such claim as determined by a court of competent jurisdiction. 
 (c) Reimbursement by Lenders. To the extent that the Borrower for
any reason fails to indefeasibly pay any amount required under clause (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof), any Issuing Lender or any Related Party of any of the foregoing, each
Lender severally agrees to pay to the Administrative Agent (or any such sub-agent), such Issuing Lender or such Related Party, as the case may be, such Lender’s Commitment Percentage (determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative
Agent (or any such sub-agent) or such Issuing Lender in its capacity as such, or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) or such Issuing Lender in connection with such capacity.
The obligations of the Lenders under this clause (c) are subject to the provisions of Section 4.7. 
 (d) Waiver of
Consequential Damages, Etc. To the fullest extent permitted by Applicable Law, the Borrower and each other Credit Party shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No Indemnitee referred to in clause (b) above shall be liable for any damages arising from the use by unintended recipients of any information or
other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby. 
  

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 (e) Payments. All amounts due under this Section shall be payable promptly after demand therefor.

 SECTION 13.4 Right of Set-off. If an Event of Default shall have occurred and be continuing, each Lender, each Issuing Lender, the
Swingline Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender, such Issuing Lender, the Swingline Lender or any such Affiliate to or for the credit or the account of the
Borrower or any other Credit Party against any and all of the obligations of the Borrower or such Credit Party now or hereafter existing under this Agreement or any other Loan Document to such Lender, such Issuing Lender or the Swingline Lender,
irrespective of whether or not such Lender, such Issuing Lender or the Swingline Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower or such Credit Party may be contingent
or unmatured or are owed to a branch or office of such Lender, such Issuing Lender or the Swingline Lender different from the branch or office holding such deposit or obligated on such indebtedness. The rights of each Lender, each Issuing Lender,
the Swingline Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender, such Issuing Lender, the Swingline Lender or their respective Affiliates may
have. Each Lender, each Issuing Lender and the Swingline Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the
validity of such setoff and application. 
 SECTION 13.5 Governing Law. 
 (a) Governing Law. This Agreement and the other Loan Documents, unless expressly set forth therein, shall be governed by, and construed in
accordance with, the law of the State of New York, without reference to the conflicts of law principles thereof. 
 (b) Submission to
Jurisdiction. The Borrower and each other Credit Party irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the courts of the State of New York sitting in New York County and of the United
States District Court for the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any other Loan Document, or for recognition or enforcement of any
judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the fullest extent permitted by Applicable
Law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement or in any other Loan Document shall affect any right that the Administrative Agent, any Lender or any Issuing Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document
against the Borrower or any other Credit Party or its properties in the courts of any jurisdiction. 
  

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 (c) Waiver of Venue. The Borrower and each other Credit Party irrevocably and unconditionally
waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court
referred to in paragraph (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any
such court. 
 (d) Service of Process. Each party hereto irrevocably consents to service of process in the manner provided for notices
in Section 13.1. Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law. 
 SECTION 13.6 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 
 SECTION 13.7 Reversal of Payments. To the extent the Borrower makes a payment or payments to the Administrative Agent for the ratable benefit of the Lenders or the Administrative Agent receives any payment or
proceeds of the Collateral which payments or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy
law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds repaid, the Obligations or part thereof intended to be satisfied shall be revived and continued in full force and effect as if such payment or
proceeds had not been received by the Administrative Agent. 
 SECTION 13.8 Injunctive Relief; Punitive Damages. 
 (a) The Borrower recognizes that, in the event the Borrower fails to perform, observe or discharge any of its obligations or liabilities under this
Agreement, any remedy of law may prove to be inadequate relief to the Lenders. Therefore, the Borrower agrees that the Lenders, at the Lenders’ option, shall be entitled to temporary and permanent injunctive relief in any such case without the
necessity of proving actual damages. 
 (b) The Administrative Agent, the Lenders and the Borrower (on behalf of itself and the other Credit
Parties) hereby agree that no such Person shall have a remedy of punitive or 

  

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exemplary damages against any other party to a Loan Document and each such Person hereby waives any right or claim to punitive or exemplary damages that they
may now have or may arise in the future in connection with any Dispute, whether such Dispute is resolved through arbitration or judicially. 
 SECTION 13.9 Accounting Matters. If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the Required Lenders shall so request,
the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders);
provided that, until so amended, (a) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (b) the Borrower shall provide to the Administrative Agent and the Lenders
financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.

 SECTION 13.10 Successors and Assigns; Participations. 
 (a) Successors and Assigns Generally. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except
that neither the Borrower nor any other Credit Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and no Lender may assign or otherwise
transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph
(d) of this Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (f) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and
void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph
(d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
 (b) Assignments by Lenders. Any Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it); provided that 
 (i) except in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and the Loans at the time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved
Fund with respect to a Lender, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified 

  

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in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless (A) such assignment is made to an existing Lender, to
an Affiliate thereof, or to an Approved Fund, in which case no minimum amount shall apply, or (B) each of the Administrative Agent and, so long as no Default or Event of Default has occurred and is continuing, the Borrower otherwise consent
(each such consent not to be unreasonably withheld or delayed); 
 (ii) each partial assignment shall be made as an assignment
of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans or the Commitment assigned; 
 (iii) (A) the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for any
assignment in respect of the Credit Facility if such assignment is to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender, (B) the consent of each Issuing Lender (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that increases the obligation of the assignee to participate in exposure under one or more Letters of Credit (whether or not then outstanding) and (C) the consent of the
Swingline Lender (such consent not to be unreasonably withheld or delayed) shall be required for any assignment in respect of the Credit Facility; and 
 (iv) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 for each assignment, and the
Eligible Assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. 
 Subject to acceptance and
recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to
the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party
hereto) but shall continue to be entitled to the benefits of Sections 4.8, 4.9, 4.10, 4.11 and 13.3 with respect to facts and circumstances occurring prior to the effective date of such assignment. Any assignment
or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with paragraph (d) of this Section. 
 (c) Register. The Administrative Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at one of its offices in Charlotte, North Carolina, a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal
amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may 

  

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treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
 (d) Participations. Any Lender may at any time, without the consent of, or notice to, the Borrower and the Administrative Agent (except that
notice shall be provided to the Borrower and the Administrative Agent with respect to any participations to a Person that would be a Foreign Lender), sell participations to any Person (other than a natural person or the Borrower or any of the
Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to
it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and
(iii) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. 
 Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce
this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver or modification described in Section 13.2 that directly affects such Participant. Subject to paragraph (e) of this Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 4.8, 4.9, 4.10 and 4.11 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 13.4 as though it were a Lender, provided such Participant agrees to be subject to Section 4.6 as though it were a Lender. 
 (e) Limitations upon Participant Rights. A Participant shall not be entitled to receive any greater payment under Sections 4.10 and 4.11
than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 4.11 unless (i) the Borrower is notified of the participation sold to such Participant and such Participant agrees, for
the benefit of the Borrower, to comply with Section 4.11(e) as though it were a Lender and (ii) the applicable Lender shall provide the Borrower with satisfactory evidence that the participation is in registered form and shall
permit the Borrower to review such register as reasonably needed for the Borrower to comply with its obligations under Applicable Laws. 
 (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment
to secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

  

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 SECTION 13.11 Confidentiality. Each of the Administrative Agent and the Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by, or required to be disclosed to,
any rating agency, or regulatory or similar authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by Applicable Laws or regulations or by any subpoena or
similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies under this Agreement or under any other Loan Document (or any Hedging Agreement with a Lender or the Administrative Agent) or any
action or proceeding relating to this Agreement or any other Loan Document (or any Hedging Agreement with a Lender or the Administrative Agent) or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing
provisions substantially the same as those of this Section, to (i) any purchasing Lender, proposed purchasing Lender, Participant or proposed Participant, or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower, (h) to Gold Sheets and other similar bank trade publications, such information to consist of deal terms and other information
customarily found in such publications, or (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to the Administrative Agent or any Lender on a
nonconfidential basis from a source other than the Borrower or (j) to governmental regulatory authorities in connection with any regulatory examination of the Administrative Agent or any Lender or in accordance with the Administrative
Agent’s or any Lender’s regulatory compliance policy if the Administrative Agent or such Lender deems necessary for the mitigation of claims by those authorities against the Administrative Agent or such Lender or any of its subsidiaries or
affiliates. For purposes of this Section, “Information” means all information received from any Credit Party relating to any Credit Party or any of their respective businesses, other than any such information that is available to
the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any Credit Party; provided that, in the case of information received from a Credit Party after the date hereof, such information is clearly identified at
the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of
care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
 SECTION 13.12
Performance of Duties. Each of the Credit Party’s obligations under this Agreement and each of the other Loan Documents shall be performed by such Credit Party at its sole cost and expense. 
 SECTION 13.13 All Powers Coupled with Interest. All powers of attorney and other authorizations granted to the Lenders, the Administrative Agent
and any Persons designated by the Administrative Agent or any Lender pursuant to any provisions of this Agreement or any of the other Loan Documents shall be deemed coupled with an interest and shall be irrevocable so long as any of the Obligations
remain unpaid or unsatisfied, any of the Commitment remains in effect or the Credit Facility has not been terminated. 
  

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 SECTION 13.14 Survival of Indemnities. Notwithstanding any termination of this Agreement, the
indemnities to which the Administrative Agent and the Lenders are entitled under the provisions of this Article XIII and any other provision of this Agreement and the other Loan Documents shall continue in full force and effect and shall
protect the Administrative Agent and the Lenders against events arising after such termination as well as before. 
 SECTION 13.15 Titles
and Captions. Titles and captions of Articles, Sections and subsections in, and the table of contents of, this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement. 
 SECTION 13.16 Severability of Provisions. Any provision of this Agreement or any other Loan Document which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or
enforceability of such provision in any other jurisdiction. 
 SECTION 13.17 Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and shall be binding upon all parties, their successors and assigns, and all of which taken together
shall constitute one and the same agreement. 
 SECTION 13.18 Integration. This Agreement, together with the other Loan Documents,
comprises the complete and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter. In the event of any conflict between the provisions of this
Agreement and those of any other Loan Document, the provisions of this Agreement shall control; provided that the inclusion of supplemental rights or remedies in favor of the Administrative Agent or the Lenders in any other Loan Document
shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the
fair meaning thereof. 
 SECTION 13.19 Term of Agreement. This Agreement shall remain in effect from the Closing Date through and
including the date upon which all Obligations arising hereunder or under any other Loan Document shall have been indefeasibly and irrevocably paid and satisfied in full and the Commitment has been terminated. No termination of this Agreement shall
affect the rights and obligations of the parties hereto arising prior to such termination or in respect of any provision of this Agreement which survives such termination. 
 SECTION 13.20 Advice of Counsel, No Strict Construction. Each of the parties represents to each other party hereto that it has discussed this
Agreement with its counsel. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted
jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement. 
  

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 SECTION 13.21 USA Patriot Act. The Administrative Agent and each Lender hereby notifies the
Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the
Borrower and each Guarantor, which information includes the name and address of each Borrower and each Guarantor and other information that will allow such Lender to identify such Borrower or Guarantor in accordance with the Act. 
 SECTION 13.22 Inconsistencies with Other Documents; Independent Effect of Covenants. 
 (a) In the event there is a conflict or inconsistency between this Agreement and any other Loan Document, the terms of this Agreement shall control;
provided that any provision of the Security Documents which imposes additional burdens on the Borrower or its Subsidiaries or further restricts the rights of the Borrower or its Subsidiaries or gives the Administrative Agent or Lenders
additional rights shall not be deemed to be in conflict or inconsistent with this Agreement and shall be given full force and effect. 
 (b)
The Borrower expressly acknowledges and agrees that each covenant contained in Articles VIII, IX, or X hereof shall be given independent effect. Accordingly, the Borrower shall not engage in any transaction or other act
otherwise permitted under any covenant contained in Articles VIII, IX, or X if, before or after giving effect to such transaction or act, the Borrower shall or would be in breach of any other covenant contained in Articles
VIII, IX, or X. 
 SECTION 13.23 No Novation. The execution and delivery of this Agreement shall not constitute a
novation of any indebtedness or other obligations owing to the Lenders or the Administrative Agent based on facts or events occurring or existing prior to the execution and delivery of this Agreement. 
  

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