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Exhibit 4.8  

CASCADES INC.  

 71/4% Senior Notes due 2013  

REGISTRATION
RIGHTS AGREEMENT 

New
York, New York

December 2, 2004 

CIBC
World Markets Corp.

425 Lexington Avenue, 3rd Floor

New York, NY 10017 

Scotia
Capital (USA) Inc.

1 Liberty Plaza, 25th Floor

New York, NY 10016 

As
Representatives of the Initial Purchasers 

Dear
Sirs: 

        Cascades Inc.,
a corporation organized under the laws of the Province of Quebec (the "Company"), proposes to issue and sell its 71/4% Senior Notes due 2013 (the
"Notes") to certain purchasers (the "Initial Purchasers"), upon the terms set forth in a Purchase Agreement, dated November 23, 2004 (the "Purchase Agreement"), between the Company, the
subsidiary guarantors signatory thereto and the Initial Purchasers listed on Schedule I hereto, relating to the initial placement of the Notes (the "Initial Placement"). The Notes will be
guaranteed (the "Guarantees" and, together with the Notes, the "Securities") on an unsecured senior basis by each of the Company's direct and indirect Canadian and U.S. restricted subsidiaries set
forth on the signature page hereto (the "Guarantors"). To induce the Initial Purchasers to enter into the Purchase Agreement and to satisfy a condition of our obligations thereunder, the Company and
the Guarantors agree with you for your benefit and the benefit of the holders from time to time of the Securities (including the Initial Purchasers) (each a "Holder" and, together, the "Holders"), as
follows: 

        1.    Definitions.    Capitalized terms used herein without definition shall have their respective meanings set forth
in the Purchase Agreement. As used in this Agreement, the following capitalized defined terms shall have the following meanings: 

        "Act"
shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder. 

        "Affiliate"
of any specified Person shall mean any other Person that, directly or indirectly, is in control of, is controlled by, or is under common control with, such specified Person.
For purposes of this definition, control of a Person shall mean the power, direct or indirect, to direct or cause the direction of the management and policies of such Person whether by contract or
otherwise; and the terms "controlling" and "controlled" shall have meanings correlative to the foregoing. 

        "Broker-Dealer"
shall mean any broker or dealer registered as such under the Exchange Act. 

        "Business
Day" shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close
in New York City or Montreal. 

        "Commission"
shall mean the Securities and Exchange Commission. 

        "Exchange
Act" shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder. 

        "Exchange
Offer Registration Period" shall mean the 90-day period following the consummation of the Registered Exchange Offer, exclusive of any period during which any stop
order shall be in effect suspending the effectiveness of the Exchange Offer Registration Statement. 

 

        "Exchange
Offer Registration Statement" shall mean a registration statement of the Company and the Guarantors on an appropriate form under the Act with respect to the Registered Exchange
Offer, all amendments and supplements to such registration statement, including post-effective amendments thereto, in each case including the Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein. 

        "Exchanging
Dealer" shall mean any Holder (which may include any Initial Purchaser) that is a Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for
its own account as a result of market-making activities or other trading activities (but not directly from the Company or any Affiliate of the Company) for New Securities. 

        "Offering
Memorandum" shall have the meaning set forth in the Purchase Agreement. 

        "Holder"
shall have the meaning set forth in the preamble hereto. 

        "Indenture"
shall mean the Indenture relating to the Securities, dated as of February 5, 2003, and as amended by the First Supplemental Indenture, dated as of May 30, 2003,
the Second Supplemental Indenture, dated as of December 30, 2003, the Third Supplemental Indenture, dated as of March 16, 2004, the Fourth Supplemental Indenture, dated as of
July 8, 2004, and the Fifth Supplemental Indenture, dated as of August 26, 2004, each among the Company, the Guarantors and The Bank of New York, as trustee, as the same may be amended
from time to time in accordance with the terms thereof. 

        "Initial
Placement" shall have the meaning set forth in the preamble hereto. 

        "Initial
Purchaser" shall have the meaning set forth in the preamble hereto. 

        "Losses"
shall have the meaning set forth in Section 7(d) hereof. 

        "Majority
Holders" shall mean the Holders of a majority of the aggregate principal amount of Securities registered under a Registration Statement. 

        "Managing
Underwriters" shall mean the investment banker or investment bankers and manager or managers that shall administer an underwritten offering. 

        "New
Securities" shall mean debt securities issued as evidence of the same continuing debt of the Company and the Guarantors identical in all material respects to the Securities (except
that the cash interest and interest rate step-up provisions and the transfer restrictions shall be modified or eliminated, as appropriate) and to be issued under the Indenture. 

        "Prospectus"
shall mean the prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus
filed as part of an effective registration statement in reliance upon Rule 430A under the Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Securities or the New Securities covered by such Registration Statement, and all amendments and supplements thereto and all material incorporated by reference therein. 

        "Purchase
Agreement" shall have the meaning set forth in the preamble hereto. 

        "Registered
Exchange Offer" shall mean the proposed offer of the Company to issue and deliver to the Holders of the Securities that are not prohibited by any law or policy of the
Commission from participating in such offer, in exchange for the Securities, a like aggregate principal amount of the New Securities. 

        "Registration
Statement" shall mean any Exchange Offer Registration Statement or Shelf Registration Statement that covers any of the Securities or the New Securities pursuant to the
provisions of this Agreement, any amendments and supplements to such registration statement, including post-effective amendments (in each case including the Prospectus contained therein),
all exhibits thereto and all material incorporated by reference therein. 

        "Securities"
shall have the meaning set forth in the preamble hereto. 

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        "Shelf
Registration" shall mean a registration effected pursuant to Section 3 hereof. 

        "Shelf
Registration Period" has the meaning set forth in Section 3(b)(ii) hereof. 

        "Shelf
Registration Statement" shall mean a "shelf" registration statement of the Company and the Guarantors pursuant to the provisions of Section 3 hereof which covers some or
all of the Securities on an appropriate form under Rule 415 under the Act, or any similar rule that may be adopted by the Commission, amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all material incorporated by reference therein. 

        "Trustee"
shall mean the trustee with respect to the Securities under the Indenture. 

        "underwriter"
shall mean any underwriter of Securities in connection with an offering thereof under a Shelf Registration Statement. 

        2.    Registered Exchange Offer.    

        (a)   The
Company and the Guarantors shall prepare and, not later than 135 days following the date of the original issuance of the Securities (or if such 135th day is
not a Business Day, the next succeeding Business Day), shall file with the Commission the Exchange Offer Registration Statement with respect to the Registered Exchange Offer. The Company and the
Guarantors shall use their respective reasonable best efforts to cause the Exchange Offer Registration Statement to become effective under the Act within 225 days of the date of the original
issuance of the Securities (or if such 225th day is not a Business Day, the next succeeding Business Day). 

        (b)   Upon
the effectiveness of the Exchange Offer Registration Statement, the Company and the Guarantors shall promptly commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder electing to exchange Securities for New Securities (assuming that such Holder is not an Affiliate of the Company, acquires the New
Securities in the ordinary course of such Holder's business, has no arrangements with any Person to participate in the
distribution of the New Securities and is not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such New Securities from and after their
receipt without any limitations or restrictions under the Act and without material restrictions under the securities laws of a substantial proportion of the several states of the United States. 

        (c)   In
connection with the Registered Exchange Offer, the Company and the Guarantors shall: 

          (i)  mail
or electronically transmit to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter
of transmittal and related documents; 

         (ii)  keep
the Registered Exchange Offer open for not less than 30 calendar days and not more than 45 Business Days after the date notice thereof is mailed to the Holders
(or, in each case, longer if required by applicable law); 

        (iii)  use
their respective reasonable best efforts to keep the Exchange Offer Registration Statement continuously effective under the Act, supplemented and amended as
required under the Act, to ensure that it is available for sales of New Securities by Exchanging Dealers during the Exchange Offer Registration Period; 

        (iv)  utilize
the services of a depositary for the Registered Exchange Offer with an address in the Borough of Manhattan in New York City, which may be the Trustee or an
Affiliate of either of them; 

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         (v)  permit
Holders to withdraw tendered Securities at any time prior to the close of business, New York time, on the last Business Day on which the Registered Exchange Offer
is open; 

        (vi)  prior
to effectiveness of the Exchange Offer Registration Statement, provide a supplemental letter to the Commission (A) stating that the Company and the
Guarantors are conducting the Registered Exchange Offer in reliance on the position of the Commission in Exxon Capital Holdings Corporation (pub. avail.
May 13, 1988) and Morgan Stanley and Co., Inc. (pub. avail. June 5, 1991); and (B) including a representation that the
Company and the Guarantors have not entered into any arrangement or understanding with any Person to distribute the New Securities to be received in the Registered Exchange Offer and that, to the best
of the Company's and the Guarantors' information and belief, each Holder participating in the Registered Exchange Offer is acquiring the New Securities in the
ordinary course of business and has no arrangement or understanding with any Person to participate in the distribution of the New Securities; and 

       (vii)  comply
in all material respects with all applicable laws. 

        (d)   As
soon as practicable after the close of the Registered Exchange Offer, the Company and the Guarantors shall: 

          (i)  accept
for exchange all Securities validly tendered and not validly withdrawn pursuant to the Registered Exchange Offer; 

         (ii)  deliver
to the Trustee for cancellation in accordance with Section 5(s) all Securities so accepted for exchange; and 

        (iii)  cause
the Trustee promptly to authenticate and deliver to each Holder of Securities a principal amount of New Securities equal to the principal amount of the
Securities of such Holder so accepted for exchange. 

        (e)   Each
Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Registered Exchange Offer to participate in a distribution of the New
Securities, if the resales are of New Securities obtained by such Holder in exchange for Securities acquired by such Holder directly from the Company or one of its Affiliates, (x) could not
under Commission policy as in effect on the date of this Agreement rely on the position of the Commission in Morgan Stanley and Co., Inc. (pub.
avail. June 5, 1991) and Exxon Capital Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the Commission's letter to
Shearman & Sterling dated July 2, 1993 and similar no-action letters; and (y) must comply with the registration and prospectus delivery requirements of the Act in
connection with any secondary resale transaction and such transaction must be covered by an effective registration statement containing the selling security holder information required by Item 507 or
508, as applicable, of Regulation S-K under the Act. Accordingly, each Holder participating in the Registered Exchange Offer shall be required in writing to represent to the Company
and the Guarantors that, at the time of the consummation of the Registered Exchange Offer: 

          (i)  any
New Securities received by such Holder will be acquired in the ordinary course of business; 

         (ii)  such
Holder will have no arrangement or understanding with any Person to participate in the distribution of the Securities or the New Securities within the meaning of
the Act; 

        (iii)  such
Holder is not an Affiliate of the Company or any of the Guarantors (or if it is, that it will comply with the registration and prospectus delivery requirements of
the Act to the extent applicable); and 

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        (iv)  if
such Holder is a broker-dealer, that it will receive New Securities for its own account in exchange for Securities that were acquired as a result of market-making
activities or other trading activities and that it will deliver a prospectus in connection with any resale of such New Securities. 

        (f)    If
any Initial Purchaser determines that it is not eligible to participate in the Registered Exchange Offer with respect to the exchange of Securities constituting any
portion of an unsold allotment, at the request of such Initial Purchaser, the Company and the Guarantors shall issue and deliver to such Initial Purchaser or the Person purchasing New Securities from
such Initial Purchaser, in each case if such New Securities have been registered under a Shelf Registration Statement as contemplated by Section 3 hereof, in exchange for such Securities, a
like principal amount of New Securities. The Company and the Guarantors shall use their respective best efforts to cause the CUSIP Service Bureau to issue the same CUSIP number for such New Securities
as for New Securities issued pursuant to the Registered Exchange Offer. 

        3.    Shelf Registration.    

        (a)   If
(i) due to any change in law or applicable interpretations thereof by the Commission's staff, the Company determines upon advice of its outside counsel that it
is not permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof; or (ii) for any other reason the Exchange Offer Registration Statement is not declared
effective by the Commission under the Act within 225 days of the date of the original issuance of the Securities or the Registered Exchange Offer is not consummated within 45 Business Days of
the date of the effectiveness of the Exchange Offer Registration Statement; (iii) any Initial Purchaser so requests with respect to Securities that are not eligible to be exchanged for New
Securities in the Registered Exchange Offer and that are held by it following consummation of the Registered Exchange Offer; (iv) any Holder (other than an Initial Purchaser) is not eligible to
participate in the Registered Exchange Offer, or in the case of any Holder that participates in the Registered Exchange Offer, does not receive freely tradable New Securities in the Registered
Exchange Offer, other than by reason of such Holder being an Affiliate of the Company (it being understood that the requirement that a participating Broker-Dealer deliver the prospectus contained in
the Exchange Offer Registration Statement in connection with sales of New Securities shall not result in such New Securities being not "freely tradable"); or (v) in the case of any Initial
Purchaser that participates in the Registered Exchange Offer or acquires New Securities pursuant to Section 2(f) hereof, such Initial Purchaser does not receive freely tradeable New Securities
in exchange for Securities constituting any portion of an unsold allotment, other than by reason of such Holder being an Affiliate of the Company (it being understood that (x) the requirement
that an Initial Purchaser deliver a Prospectus containing the information required by Item 507 or 508 of Regulation S-K under the Act in
connection with sales of New Securities acquired in exchange for such Securities shall not result in such New Securities being not "freely tradeable"; and (y) the requirement that an Exchanging
Dealer deliver a Prospectus in connection with sales of New Securities acquired in the Registered Exchange Offer in exchange for Securities acquired as a result of market-making activities or other
trading activities shall not result in such New Securities being not "freely tradeable"), the Company and the Guarantors shall effect a Shelf Registration Statement in accordance with subsection
(b) below. 

        (b)   (i) The
Company and the Guarantors shall as promptly as practicable (but in no event more than 90 days after so required or requested pursuant to this
Section 3), file with the Commission and thereafter shall use their respective reasonable best efforts to cause to be declared effective under the Act a Shelf Registration Statement in
accordance with Rule 415 under the Act relating to the offer and sale of the Securities or the New Securities, as applicable, by the Holders thereof from time to time in accordance with the
methods of distribution elected by such Holders and set forth in such Shelf Registration Statement; provided, however, that no Holder shall be entitled
to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all of the provisions of this Agreement applicable to 

5

 

such
Holder; and provided further, that with respect to New Securities received by an Initial Purchaser in exchange for Securities constituting any
portion of an unsold allotment, the Company and the Guarantors may, if permitted by current interpretations by the Commission's staff, file a post-effective amendment to the
Exchange Offer Registration Statement containing the information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their obligations under this
subsection with respect thereto, and any such Exchange Offer Registration Statement, as so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a Shelf
Registration Statement. 

         (ii)  The
Company and the Guarantors shall use their respective reasonable best efforts to keep the Shelf Registration Statement continuously effective, supplemented and
amended as required by the Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a period of two years from the date the Shelf Registration Statement is declared
effective by the Commission or such shorter period that will terminate when all the Securities or New Securities, as applicable, covered by the Shelf Registration Statement (i) have been sold
pursuant to the Shelf Registration Statement (in any such case, such period being called the "Shelf Registration Period") or (ii) are eligible for resale under Rule 144(k). The Company
and the Guarantors shall be deemed not to have used their respective reasonable best efforts to keep the Shelf Registration Statement effective during the requisite period if they voluntarily take any
action that would result in Holders of Securities covered thereby not being able to offer and sell such Securities during that period, unless (A) such action is required by applicable law; or
(B) such action is taken by the Company and the Guarantors in good faith and for valid business reasons (not including avoidance of the Company's and the Guarantors' obligations hereunder),
including the acquisition or divestiture of assets (to the extent permitted by the terms of the Indenture), so long as the Company and the Guarantors promptly thereafter comply with the requirements
of Section 5(k) hereof, if applicable. 

        (iii)  The
Company and the Guarantors shall cause the Shelf Registration Statement and the related Prospectus and any amendment or supplement thereto, as of the effective
date of the Shelf Registration Statement or such amendment or supplement, (A) to comply as to form in all material respects with the applicable requirements of the Act; and (B) not to
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. 

        4.    Special Interest.    If (a) on or prior to the 135th day following the original issue date of the
Securities, neither the Exchange Offer Registration Statement nor the Shelf Registration Statement has been filed with the Commission, (b) on or prior to the 225th day following the original
issue date of the Securities, neither the Exchange Offer Registration Statement nor the Shelf Registration Statement has been declared effective by the Commission, (c) on or prior to the
45th Business Day following the date the Exchange Offer Registration Statement is declared effective, the Registered Exchange Offer has not been consummated, or (d) after either
the Exchange Offer Registration Statement or the Shelf Registration Statement has been declared effective, such Registration Statement thereafter ceases to be effective or usable (other than as
permitted by the proviso to Section 5(k)) in connection with resales of Securities or New Securities in accordance with and during the periods specified in this Agreement unless such
Registration Statement ceases to be effective or usable as a result of the failure by any Holder to provide the Company with any information required to be so provided by Items 507 or 508 of
Regulation S-K, as applicable (each such event referred to in clauses (a) through (d), a "Registration Default"), interest ("Special Interest") will accrue on the principal
amount of the Securities and the New Securities (in addition to the stated interest on the Securities and New Securities) from and including the date on which any such Registration Default shall occur
to but excluding the date on which all Registration Defaults have been cured. Special Interest will accrue at a rate of 0.25% per annum during the 90-day period immediately following the
occurrence of such Registration Default and 

6

 

shall
increase by 0.25% per annum at the end of each subsequent 90-day period, but in no event shall such rate exceed 1.00% per annum. 

        All
obligations of the Company and the Guarantors set forth in the preceding paragraph that are outstanding with respect to any Security at the time such Security is exchanged for a New
Security shall survive until such time as all such obligations with respect to such Security have been satisfied in full. 

7

   
        5.    Additional Registration Procedures.    In connection with any Shelf Registration Statement and, to the extent
applicable, any Exchange Offer Registration Statement, the following provisions shall apply. 

        (a)   The
Company and the Guarantors shall: 

        (i)    furnish
to you, not less than five (5) Business Days prior to the filing thereof with the Commission, a copy of any Exchange Offer Registration Statement and any
Shelf Registration Statement, and not less than three (3) Business Days prior to the filing thereof with the Commission, a copy of each amendment thereof and each amendment or supplement, if
any, to the Prospectus included therein (including, upon request, all documents incorporated by reference therein after the initial filing), and shall use their respective reasonable best efforts to
reflect in each such document, when so filed with the Commission, such comments as you reasonably propose; 

        (ii)   include
the information substantially as set forth in, Annex A hereto on the facing page of the Exchange Offer Registration Statement, in Annex B hereto in the forepart
of the Exchange Offer Registration Statement in a section setting forth details of the Exchange Offer, in Annex C hereto in the underwriting or plan of distribution section of the Prospectus contained
in the Exchange Offer Registration Statement, and in Annex D hereto in the letter of transmittal delivered pursuant to the Registered Exchange Offer; 

        (iii)  if
requested by an Initial Purchaser, include the information required by Item 507 or 508 of Regulation S-K, as applicable, in the Prospectus
contained in the Exchange Offer Registration Statement, provided that such names and such other information are provided in writing to the Company by
the Initial Purchasers at least five (5) Business Days prior to the filing of the Shelf Registration Statement; and 

        (iv)  in
the case of a Shelf Registration Statement, include the names of the Holders that propose to sell Securities pursuant to the Shelf Registration Statement as selling
security holders and the other information required under Item 507 of Regulation S-K under the Act, provided that such names and such
other information are provided in writing to the Company by the Initial Purchasers at least five (5) Business Days prior to the filing of the Shelf Registration Statement. 

        (b)   The
Company and the Guarantors shall use their respective reasonable best efforts to ensure that: 

        (i)    any
Registration Statement and any amendment thereto and any Prospectus forming part thereof and any amendment or supplement thereto complies as to form in all material
respects with the Act and the rules and regulations thereunder; and 

        (ii)   any
Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading. 

        (c)   The
Company and the Guarantors shall advise you, the Holders of Securities covered by any Shelf Registration Statement that have individually indicated in the selling
noteholder questionnaire that they wish to be so advised and any Exchanging Dealer under any Exchange Offer Registration Statement, that has provided in writing to the Company and the Guarantors a
telephone or facsimile number and address for notices, and, if requested by you or any such Holder or Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses
(ii) through (v) hereof shall be accompanied by an instruction to suspend the use of the 

7

 

Prospectus
until the Company and the Guarantors shall have remedied the basis for such suspension): 

        (i)    when
the Registration Statement and any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective; 

        (ii)   of
any request by the Commission for any amendment or supplement to the Registration Statement or the Prospectus or for additional information; 

        (iii)  of
the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; 

        (iv)  of
the receipt by the Company and the Guarantors of any notification with respect to the suspension of the qualification of the securities included therein for sale in
any jurisdiction or the initiation of any proceeding for such purpose; and 

        (v)   of
the happening of any event that requires any change in the Registration Statement or the Prospectus so that, as of such date, the statements therein are not
misleading and do not omit to state
a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading. 

        (d)   The
Company and the Guarantors shall use their respective reasonable best efforts to obtain the withdrawal of any order suspending the effectiveness of any Registration
Statement, or the qualification of the securities therein for sale in any jurisdiction as may be reasonably required by any Holder, at the earliest possible time. 

        (e)   The
Company and the Guarantors shall furnish to each Holder of Securities covered by any Shelf Registration Statement that has indicated in the selling noteholder
questionnaire that they wish to receive, without charge, at least one copy of such Shelf Registration Statement and any post-effective amendment thereto, including all material
incorporated therein by reference, and, if the Holder has so requested in writing, all exhibits thereto (including exhibits incorporated by reference therein). 

        (f)    The
Company and the Guarantors shall, during the Shelf Registration Period, deliver to each Holder of Securities covered by any Shelf Registration Statement, without
charge, as many copies of the Prospectus (including each preliminary Prospectus) included in such Shelf Registration Statement and any amendment or supplement thereto as such Holder may reasonably
request. The Company and the Guarantors consent to the use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of securities in connection with the offering and
sale of the securities covered by the Prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement for the Shelf Registration Period. 

        (g)   The
Company and the Guarantors shall furnish to each Exchanging Dealer which so requests, without charge, at least one copy of the Exchange Offer Registration Statement
and any post-effective amendment thereto, including all material incorporated by reference therein, and, if the Exchanging Dealer so requests in writing, all exhibits thereto (including
exhibits incorporated by reference therein). 

        (h)   The
Company and the Guarantors shall promptly deliver to each Initial Purchaser, each Exchanging Dealer and each other Person required to deliver a Prospectus during the
Exchange Offer Registration Period, without charge, as many copies of the Prospectus included in such Exchange Offer Registration Statement and any amendment or supplement thereto as any such Person
may reasonably request. The Company and the Guarantors consent to the use of the Prospectus or any amendment or supplement thereto by any Initial Purchaser, any Exchanging 

8

 

Dealer
and any such other Person that may be required to deliver a Prospectus following the Registered Exchange Offer in connection with the offering and sale of the New Securities covered by the
Prospectus, or any amendment or supplement thereto, included in the Exchange Offer Registration Statement for the Exchange Offer Registration Period. 

        (i)    Prior
to the Registered Exchange Offer or any other offering of Securities or New Securities pursuant to any Registration Statement, the Company and the Guarantors shall
use their respective reasonable best efforts to arrange, if necessary, for the qualification of the Securities or the New Securities for sale under the laws of such jurisdictions as any Holder shall
reasonably request in writing to the Company to maintain such qualification in effect so long as reasonably required; provided that in no event shall
the Company or the Guarantors be obligated to qualify to do business in any jurisdiction where they are not then so qualified or to take any action that would subject them to service of process in
suits, other than suits arising out of the Initial Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration Statement to the extent applicable, or to taxation in any
such jurisdiction where they are not then so subject. 

        (j)    The
Company and the Guarantors shall cooperate with the Holders of Securities to facilitate the timely preparation and delivery of certificates representing New
Securities or Securities to be issued or sold pursuant to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as Holders may request in a
reasonable period of time prior to sales of the Securities or New Securities pursuant to the Registration Statement. 

        (k)   Upon
the occurrence of any event contemplated by subsections (c)(ii) through (v) above during the period of time in which the Company is required to
maintain an effective Registration Statement, the Company and the Guarantors shall promptly prepare a post-effective amendment to the applicable Registration Statement or an amendment or
supplement to the related Prospectus or file any other required document so that, as thereafter delivered to initial purchasers of the securities included therein, the Prospectus will not include an
untrue statement of a material 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 the Company shall not be required to amend or supplement a Shelf Registration Statement or Prospectus on no more than two occasions, for a
reasonable period of time, but not in excess of 90 days in any consecutive twelve-month period if the Company determines reasonably and in good faith that such amendment or supplement would
require the disclosure of non-public material information that, in the reasonable judgment of the Company, would be detrimental to the Company if so disclosed or would otherwise materially
adversely affect a financing, acquisition, disposition, merger or other material transaction. In such circumstances, the period of effectiveness of the Exchange Offer Registration Statement provided
for in Section 2 and
the Shelf Registration Statement provided for in Section 3(b) shall each be extended by the number of days from and including the date of the giving of a notice of suspension pursuant to
Section 5(c) to and including the date when the Initial Purchasers, the Holders of the Securities and any known Exchanging Dealer shall have received such amended or supplemented Prospectus
pursuant to this Section. 

        (l)    Not
later than the effective date of any Registration Statement, the Company and the Guarantors shall provide a CUSIP number for the Securities or the New Securities, as
the case may be, registered under such Registration Statement and provide the Trustee with printed certificates for such Securities or New Securities, in a form eligible for deposit with The
Depository Trust Company. 

        (m)  The
Company and the Guarantors shall comply with all rules and regulations of the Commission to the extent and so long as they are applicable to the Registered Exchange
Offer and 

9

 

the
Shelf Registration and shall make generally available or otherwise provide to their security holders as soon as practicable after the effective date of the applicable Registration Statement an
earnings statement satisfying the provisions of Section 11(a) of the Act. 

        (n)   The
Company and the Guarantors shall cause the Indenture to be qualified under the Trust Indenture Act in a timely manner. 

        (o)   The
Company and the Guarantors may require each Holder of Securities or New Securities to be sold pursuant to any Shelf Registration Statement to furnish to the Company
and the Guarantors such information regarding the Holder and the distribution of such Securities or New Securities as the Company and the Guarantors may from time to time reasonably require for
inclusion in such Registration Statement. The Company and the Guarantors may exclude from such Shelf Registration Statement the Securities or New Securities of any Holder that fails to furnish such
information within a reasonable time after receiving such request. 

        (p)   In
the case of any Shelf Registration Statement, the Company and the Guarantors shall enter into such agreements and take all other appropriate actions reasonably
requested by any Holder of the Securities or New Securities, as the case may be (which may include an underwriting agreement in customary form), in order to expedite or facilitate the registration or
the disposition of the Securities or New Securities, and in connection therewith, if an underwriting agreement is entered into, cause the same to contain indemnification provisions and procedures no
less favorable than those set forth in Section 7 (or such other provisions and procedures acceptable to the Majority Holders and the Managing Underwriters, if any), with respect to all parties
to be indemnified pursuant to Section 7. 

        (q)   In
the case of any Shelf Registration Statement, the Company and the Guarantors shall: 

        (i)    make
reasonably available for inspection by the Holders of Securities or New Securities to be registered thereunder, any underwriter participating in any disposition
pursuant to such Registration Statement, and any attorney, accountant or other agent retained by the Holders or any such underwriter all relevant financial and other records, pertinent corporate
documents and properties of the Company and its subsidiaries; 

        (ii)   cause
the Company's officers, directors and employees to supply all relevant information reasonably requested by the Holders or any underwriter, attorney, accountant or
agent in connection with any such Registration Statement as is customary for similar due diligence examinations; provided,  however, that (i) the
foregoing inspection and information gathering shall be coordinated on behalf of all parties by one counsel designated by
the Majority Holders and (ii) each Holder and any underwriter, attorney, accountant or agent conducting an inspection under this section will be required to agree that information obtained by
it as a result of such inspections will be deemed confidential and will not be disclosed by it or used by it as the basis for any transaction in any securities of the Company unless and until such
information is generally available to the public; 

        (iii)  in
the case of any Shelf Registration that involves an underwritten public offering, make such representations and warranties to the Holders of Securities or New
Securities registered thereunder and the underwriters, if any, in form, substance and scope as are customarily made by issuers to selling security holders and underwriters, respectively, in
underwritten offerings; 

        (iv)  in
the case of any Shelf Registration that involves an underwritten public offering, obtain opinions of counsel to the Company and the Guarantors and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriters, if any), addressed to each selling Holder and the managing underwriters, if
any, covering such matters as are customarily covered in opinions requested in 

10

 

underwritten
offerings and such other matters as may be reasonably requested by such Holders and underwriters, if any; 

        (v)   in
the case of any Shelf Registration that involves an underwritten public offering, obtain "cold comfort" letters and updates thereof from the independent certified
public accountants of the Company (and, if necessary, any other independent certified public accountants of any subsidiary of the Company or of any business acquired by the Company for which financial
statements and financial data are, or are required to be, included in the Registration Statement), addressed to each selling Holder of Securities or New Securities registered thereunder and the
underwriters, if any, in customary form and covering matters of the type customarily covered in "cold comfort" letters in connection with primary
underwritten offerings, provided that each such Holder and underwriter makes such representations as may be required for such independent certified
public accountants to deliver such letters; and 

        (vi)  deliver
such documents and certificates as may be reasonably requested by the Majority Holders and the Managing Underwriters, if any, including those to evidence
compliance with Section 5(k) and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Company and the Guarantors. 

The
actions set forth in clauses (iii), (iv), (v) and (vi) of this Section shall be performed at (A) the effectiveness of such Registration Statement and each
post-effective amendment thereto; and (B) each closing under any underwriting or similar agreement as and to the extent required thereunder. 

        (r)   In
the case of any Exchange Offer Registration Statement, the Company and the Guarantors shall: 

        (i)    make
reasonably available for inspection by such Initial Purchaser, and any attorney, accountant or other agent retained by such Initial Purchaser, all relevant
financial and other records, pertinent corporate documents and properties of the Company and its subsidiaries; and 

        (ii)   cause
the Company's officers, directors and employees to supply all relevant information reasonably requested by such Initial Purchaser or any such attorney, accountant
or agent in connection with any such Registration Statement as is customary for similar due diligence examinations; provided,  however, that (i) the
foregoing inspection and information gathering shall be coordinated on behalf of all parties by one counsel designated by
the Majority Holders and (ii) each Holder and any underwriter, attorney, accountant or agent conducting an inspection under this section will be required to agree that information obtained by
it as a result of such inspections will be deemed confidential and will not be disclosed by it or used by it as the basis for any transaction in any securities of the Company unless and until such
information is generally available to the public. 

        (s)   If
a Registered Exchange Offer is to be consummated, upon delivery of the Securities by Holders to the Company (or to such other Person as directed by the Company) in
exchange for the New Securities, the Company shall mark, or cause to be marked, on the Securities so exchanged that such Securities are being canceled in exchange for the New Securities. In no event
shall the Securities be marked as paid or otherwise satisfied. 

        (t)    The
Company and the Guarantors will use their respective reasonable best efforts (i) if the Securities have been rated prior to the initial sale of such
Securities, to confirm such ratings will apply to the Securities or the New Securities, as the case may be, covered by a Registration Statement; or (ii) if the Securities were not previously
rated, to cause the Securities covered by a Registration Statement to be rated with at least one nationally recognized statistical rating agency, 

11

 

if
so requested by Majority Holders with respect to the related Registration Statement or by any Managing Underwriters. 

        (u)   In
connection with any Shelf Registration Statement, in the event that any Broker-Dealer shall underwrite any Securities or participate as a member of an underwriting
syndicate or selling group or "assist in the distribution" (within the meaning of the Conduct Rules of the National Association of Securities Dealers, Inc.) thereof, whether as a Holder of such
Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Company and the Guarantors shall assist such Broker-Dealer in complying with the
requirements of such Rules and By-Laws, including, without limitation, by: 

        (i)    if
such Rules or By-Laws shall so require, engaging a "qualified independent underwriter" (as defined in such Rules) to participate in the preparation of the
Registration Statement, to exercise usual standards of due diligence with respect thereto and, if any portion of the offering contemplated by such Registration Statement is an underwritten offering or
is made through a placement or sales agent, to recommend the yield of such Securities; 

        (ii)   indemnifying
any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 7 hereof; and 

        (iii)  providing
such information to such Broker-Dealer as may be required in order for such Broker-Dealer to comply with the requirements of such Rules. 

        (v)   The
Company and the Guarantors shall use their respective reasonable best efforts to take all other steps necessary to effect the registration of the Securities or the
New Securities, as the case may be, covered by a Registration Statement. 

        6.    Registration Expenses.    The Company shall bear all expenses incurred in connection with the performance of its
and the Guarantors' obligations under Sections 2, 3 and 5 hereof (other than any underwriting discounts and commissions, and the fees of any counsel retained by or on behalf of the underwriters, and
transfer taxes, if any, related to the sale or disposition of such Holder's Notes pursuant to any underwritten public offering pursuant to a Shelf Registration Statement, which shall be
for the expense of the Holders), including filing fees, if any, in respect of the trade of the New Securities by way of private placement to Holders in Canada and, in the event of any Shelf
Registration Statement, will reimburse the Holders for the reasonable fees and disbursements of not more than one counsel designated by the Majority Holders to act as counsel for the Holders in
connection therewith, and, in the case of any Exchange Offer Registration Statement, will reimburse the Initial Purchasers for the reasonable fees and disbursements of not more than one counsel acting
in connection therewith. 

        7.    Indemnification and Contribution.    

        (a)   The
Company and the Guarantors, jointly and severally, agree to indemnify and hold harmless each Holder of Securities or New Securities, as the case may be, covered by
any Registration Statement (including each Initial Purchaser and, with respect to any Prospectus delivery as contemplated in Section 5(h) hereof, each Exchanging Dealer), the directors,
officers, employees and agents of each such Holder and each Person who controls any such Holder within the meaning of either the Act or the Exchange Act against any and all losses, claims, damages, or
liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or in any "wrapped"
version thereof constituting an offering memorandum under applicable Canadian provincial securities laws, or arise out of or are based upon the omission or alleged omission to 

12

 

state
therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they are made, not misleading, and agrees to
reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that (i) the Company and the Guarantors will not be liable in any case
to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in
reliance upon and in conformity with written information furnished to the Company and the Guarantors by or on behalf of any such Holder specifically for inclusion therein and (ii) with respect
to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Registration Statement, the indemnity agreement contained in subsection
(a) shall not inure to the benefit of any such indemnified party from whom the person asserting any such losses, claims, damages or liabilities purchased the securities concerned, if a copy of
the prospectus relating to such Securities or New Securities (as amended or supplemented at the time of sale) was required to be delivered by such indemnified party and was not delivered as given by
or on behalf of such indemnified party to such person and if such prospectus (as so amended or supplemented) would have corrected the defect giving rise to such loss, claim, damage or liability. This
indemnity agreement will be in addition to any liability which the Company and the Guarantors may otherwise have. 

        The
Company and the Guarantors also, jointly and severally, agree to indemnify or contribute as provided in Section 7(d) to Losses of any underwriter of any Securities or New
Securities, as the case
may be, registered under a Shelf Registration Statement, their directors, officers, employees or agents and each Person who controls such underwriter (within the meaning of the Act or the Exchange
Act) on substantially the same basis as that of the indemnification of the Initial Purchasers and the selling Holders provided in this Section 7(a) and shall, if requested by any Holder, enter
into an underwriting agreement reflecting such agreement, as provided in Section 5(p) hereof. 

        (b)   Each
Holder of securities covered by a Registration Statement (including each Initial Purchaser and, with respect to any Prospectus delivery as contemplated in
Section 5(h) hereof, each Exchanging Dealer) severally agrees to indemnify and hold harmless the Company and the Guarantors, each of their directors, each of their officers who sign such
Registration Statement and each Person who controls the Company or any of the Guarantors within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from
the Company and the Guarantors to each such Holder, but only with reference to written information relating to such Holder furnished to the Company or the Guarantors by or on behalf of such Holder
specifically for inclusion in the documents referred to in the foregoing indemnity; and, subject to the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the
Company for any legal or other expenses reasonably incurred by the Company or any such person in connection with investigating or defending or appearing in any judicial or extra-judicial proceeding,
in any capacity, including but not limited to, defendant, co-defendant, third-party defendant or witness, in connection with any loss, claim, damage, liability or action in respect
thereof. This indemnity agreement will be in addition to any liability which any such Holder may otherwise have. 

        (c)   Promptly
after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, such indemnified party will, if a claim in
respect thereof is to be made against the indemnifying party under this Section, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying
party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the
forfeiture by the indemnifying party of substantial 

13

 

rights
and defenses; and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the indemnifying party's choice at the indemnifying party's expense to represent the
indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained
by the indemnified party or parties except as set forth below); provided, however, that such counsel
shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party's election to appoint counsel to represent the indemnified party in an action, the indemnified party
shall have the right to employ separate counsel for all indemnified parties (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate
counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest; (ii) the actual or potential
defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses
available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party; (iii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action; or (iv) the indemnifying party shall
authorize the indemnified party in writing to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified
parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act by or on behalf of any indemnified party. 

        (d)   In
the event that the indemnity provided in paragraph (a) or (b) of this Section is unavailable to or insufficient to hold harmless an indemnified party
for any reason, then each applicable indemnifying party shall have a joint and several obligation to contribute to the aggregate losses, claims, damages and liabilities (including legal or other
expenses reasonably incurred in connection with investigating or defending same) (collectively "Losses") to which such indemnified party may be subject in such proportion as is appropriate to reflect
the relative benefits received by such indemnifying party, on the one hand, and such indemnified party, on the other hand, from the Initial Placement and the Registration Statement which resulted in
such Losses; provided, however, that in no case shall any Initial Purchaser of any Security or New
Security be responsible, in the aggregate, for any amount in excess of the purchase discount or commission applicable to such Security, or in the case of a New Security, applicable to the Security
that was exchangeable into such New Security, as set forth on the cover page of the Offering Memorandum, nor shall any underwriter be responsible for any amount in excess of the underwriting discount
or commission applicable to the securities purchased by such underwriter under the Registration Statement which resulted in such Losses, nor shall any subsequent Holder of any Security or New Security
be responsible for any amount in excess of the amount by which the net proceeds received by such Holder from the sale of the Securities or New Securities pursuant to a Registration Statement exceed
the amount of damages which such Holder would have otherwise been required to pay by reason of such untrue statement or omission or alleged omission. If the allocation provided by the immediately
preceding sentence is unavailable for any reason, the indemnifying party and the indemnified party shall contribute in such proportion as is appropriate to reflect not only such relative benefits but
also the relative fault of such 

14

 

indemnifying
party, on the one hand, and such indemnified party, on the other hand, in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable
considerations. Benefits received by the Company and the Guarantors shall be deemed to be equal to the sum of (x) the total net proceeds from the Initial Placement (before deducting expenses)
as set forth on the cover page of the Offering Memorandum and (y) the total amount of additional interest which the Company was not required to pay as a result of registering the securities
covered by the Registration Statement which resulted in such Loses. Benefits received by the Initial Purchasers shall be deemed to be equal to the total purchase discounts and commissions as set forth
on the cover page of the Offering Memorandum, and benefits received by any other Holders shall be deemed to be equal to the proceeds received from the sale of the Securities or New Securities, as
applicable. Benefits received by any underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the cover page of the Prospectus forming a part of the
Registration Statement which resulted in such Losses. Relative fault shall be determined by reference to, among other things, whether any alleged untrue statement or omission relates to information
provided by the indemnifying party, on the one hand, or by the indemnified party, on the other hand, the intent of the parties and their relative knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission. The parties agree that it would not be just and equitable if contribution were determined by pro rata allocation (even if the Holders were treated
as one entity for such purpose) or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this
paragraph (d), no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. For purposes of this Section, each Person who controls a Holder within the meaning of either the Act or the Exchange Act and each director, officer, employee and
agent of such Holder shall have the same rights to contribution as such Holder, and each Person who controls the Company or any of the Guarantors within the meaning of either the Act or the Exchange
Act, each officer, director, employee and agent of the Company or any of the Guarantors shall have the same rights to contribution as the Company, subject in each case to the applicable terms and
conditions of this paragraph (d). 

        (e)   The
provisions of this Section will remain in full force and effect, regardless of any investigation made by or on behalf of any Holder or the Company and the Guarantors
or any of the officers, directors or controlling Persons referred to in this Section hereof, and will survive the sale by a Holder of securities covered by a Registration Statement. 

15

   
        8.    Underwritten Registrations.    

        (a)   If
any of the Securities or New Securities, as the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the Managing
Underwriters shall be selected by the Majority Holders. 

        (b)   No
Person may participate in any underwritten offering pursuant to any Shelf Registration Statement, unless such Person (i) agrees to sell such Person's
Securities or New Securities, as the case may be, on the basis reasonably provided in any underwriting arrangements approved by the Persons entitled hereunder to approve such arrangements; and
(ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting
arrangements. 

        9.    No Inconsistent Agreements.    The Company has not, as of the date hereof, entered into, nor shall it, on or
after the date hereof, enter into, any agreement with respect to its securities that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the provisions hereof. 

        10.    Amendments and Waivers.    The provisions of this Agreement, including the provisions of this sentence, may not
be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of the Majority
Holders (or, after the consummation of any Registered Exchange Offer in accordance with Section 2 hereof, of New Securities); provided that, with
respect to any matter that directly or indirectly affects the rights of any Initial Purchaser hereunder, the Company shall obtain the written consent of each such Initial Purchaser against which such
amendment, qualification, supplement, waiver or consent is to be effective. Notwithstanding the foregoing, a waiver or consent to departure from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant to a Registration Statement and that does not directly or indirectly affect
the rights of other Holders may be given by the Holders representing a majority of the aggregate principal amount of the Securities or the New Securities, as the case may be, being sold rather than
registered under such Registration Statement, voting together as a single class. 

        11.    Notices.    All notices and other communications provided for or permitted hereunder shall be made in writing
by hand-delivery, first-class mail, telex, telecopier or air courier guaranteeing overnight delivery: 

        (a)   if
to a Holder, at the most current address given by such holder to the Company in accordance with the provisions of this Section, which address initially is, with
respect to each Holder, the address of such Holder maintained by the Registrar under the Indenture, with a copy in like manner to CIBC World Markets Corp. and to Scotia Capital (USA) Inc.; 

        (b)   if
to you, initially at the respective addresses set forth in the Purchase Agreement; and 

        (c)   if
to the Company or the Guarantors, initially at its respective address set forth in the Purchase Agreement. 

        All
such notices and communications shall be deemed to have been duly given when received. 

        The
Initial Purchasers, the Company or the Guarantors by notice to the other parties may designate additional or different addresses for subsequent notices or communications. 

        12.    Successors.    This Agreement shall inure to the benefit of and be binding upon the successors and assigns of
each of the parties, including, without the need for an express assignment or any consent by the Company thereto, subsequent Holders of Securities and the New Securities. The Company hereby agrees to
extend the benefits of this Agreement to any Holder of Securities and the New 

16

 

Securities,
and any such Holder may enforce the provisions of this Agreement as if an original party hereto. 

        13.    Counterparts.    This agreement may be in signed counterparts, each of which shall an original and all of which
together shall constitute one and the same agreement. 

        14.    Headings.    The headings used herein are for convenience only and shall not affect the construction hereof. 

        15.    Applicable Law.    This Agreement shall be governed by and construed in accordance with the laws of the State
of New York applicable to contracts made and to be performed in the State of New York. 

        16.    Severability.    In the event that any one of more of the provisions contained herein, or the application
thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent
permitted by law. 

        17.    Securities Held by the Company, etc.    Whenever the consent or approval of Holders of a specified percentage
of principal amount of Securities or New Securities is required hereunder, Securities or New Securities, as applicable, held by the Company or its Affiliates (other than subsequent Holders of
Securities or New Securities if such subsequent Holders are deemed to be Affiliates solely by reason of their holdings of such Securities or New Securities) shall not be counted in determining whether
such consent or approval was given by the Holders of such required percentage. 

        18.    Agent for Service; Submission to Jurisdiction; Waiver of Immunities.    By the execution and delivery of this
Agreement, the Company (i) acknowledges that it has, by separate written instrument, irrevocably designated and appointed CT Corporation System (and any successor entity), as its authorized
agent upon which process may be served in any suit or proceeding arising out of or relating to this Agreement that may be instituted in any federal or state court in the State of New York or brought
under federal or state securities laws, and acknowledges that CT Corporation System has accepted such designation, (ii) submits to the nonexclusive jurisdiction of any such court in any such
suit or proceeding, and (iii) agrees that service of process upon CT Corporation System and written notice of said service to the Company shall be deemed in every respect effective service of
process upon it in any such suit or proceeding. The Company further agrees to take any and all action, including the execution and filing of any and all such documents and instruments, as may be
necessary to continue such designation and appointment of CT Corporation System in full force and effect so long as any of the Securities shall be outstanding. To the extent that the Company may
acquire any immunity from jurisdiction of any court or from any legal process (whether through service of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise)
with respect to itself or its property, it hereby irrevocably waives such immunity in respect of this Agreement, to the fullest extent permitted by law. 

17

 

        If
the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this Agreement and your acceptance shall
represent a binding agreement among the Company, the Guarantors and the several Initial Purchasers. 

	 	 	Very truly yours,
	

 	
 	

Cascades Inc.
	

 	
 	

By:	

 
	 	 	 	
 Name:  Robert F. Hall

Title:    Vice President, Legal Affairs And Corporate Secretary
	

 	
 	

Cadmus and Cascades Recylcing, Inc.

Cascades Agri-Pak, Inc.

Cascades Boxboard Group Inc.

Cascades Boxboard U.S. Holdings, Inc.

Cascades Boxboard U.S., Inc.

Cascades Canada Inc.

Cascades Diamond, Inc.

Cascades Fine Papers Group Inc.

Cascades Fine Papers Group Thunder Bay Inc.

Cascades Inc.

Cascades Nova Scotia Company

Cascades Transport Inc.

Conference Cup Inc.

Dopaco Canada, Inc.

Dopaco, Inc.

Garven Incorporated

Kingsey Falls Investments Inc.

Les Séchoirs St-François Inc.

Marathon Graphic Art Distributor Inc.

Rabotage Lemay Inc.

Scierie Lemay Inc.

Wood Wyant Inc.

3815285 Canada Inc.

3815315 Canada Inc.

6265642 Canada Inc.
	 	 	 	 

18

 

	

 	
 	

By:	

 
	 	 	 	
 Name:  Robert F. Hall

Title:    Duly Authorized Officer Or Director
	

 	
 	

Cascades Auburn Fiber Inc.

Cascades Delaware LLC

Cascades Fine Papers Group (Sales) Inc.

Cascades Fine Papers Group (USA) Inc.

Cascades Moulded Pulp, Inc.

Cascades Plastics Inc.

Cascades SPG Holding Inc.

Cascades Tissue Group—Arizona Inc.

Cascades Tissue Group—IFC Disposables Inc.

Cascades Tissue Group—New York Inc.

Cascades Tissue Group—North Carolina Inc.

Cascades Tissue Group—Oregon Inc.

Cascades Tissue Group—Pennsylvania Inc.

Cascades Tissue Group—Sales Inc.

Cascades Tissue Group—Tennessee Inc.

Cascades Tissue Group—Wisconsin Inc.

Cascades USA Inc.

W.H. Smith Paper Corporation
	

 	
 	

By:	

 
	 	 	 	
 Name:  Nathalie Théberge

Title:    Duly Authorized Officer Or Director
	

 	
 	

Dopaco Pacific LLC
	

 	
 	

By:	

 
	 	 	 	
 Name:  Richard J. Scanlan

Title:    Treasurer
	

 	
 	

Dopaco Limited Partnership
	

 	
 	

By:	

Dopaco Pacific LLC

Its General Partner
	

 	
 	

By:	

 
	 	 	 	
 Name:  Richard J. Scanlan

Title:    Treasurer

19

 

The
foregoing Agreement is hereby

confirmed and accepted as of the

date first above written. 

	CIBC World Markets Corp..	 	 
	

By:	

 	
 	

 
	 	
 Name:

Title:    	 	 
	Scotia Capital (USA) Inc.	 	 
	

By:	

 	
 	

 
	 	
 Name:

Title:    	 	 

For
themselves and the other several Initial

Purchasers named in Schedule I to

the foregoing Agreement. 

20

  

SCHEDULE 1  

Initial Purchasers  

CIBC
World Markets Corp.

Scotia Capital (USA) Inc.

Citigroup Global Markets Inc

NBF Securities (USA) Corp. 

21

 
ANNEX A  

        Each Broker-Dealer that receives New Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such New Securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of the New
Securities received in exchange for Securities where such Securities were acquired by such Broker-Dealer as a result of market-making activities or other trading activities. The Company has agreed to,
starting on the Expiration Date (as defined herein) and ending on the close of business 90 days after the Expiration Date, make this Prospectus available to any Broker-Dealer for use in
connection with these resales. See "Plan of Distribution." 

22

 
ANNEX B  

        Each Broker-Dealer that receives New Securities for its own account in exchange for Securities, the Securities were acquired by the Broker-Dealer as a result of
market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of the New Securities. See "Plan of Distribution." 

23

 
ANNEX C  

 
 

PLAN OF DISTRIBUTION    
    

        Each Broker-Dealer that receives New Securities for its own account in the Exchange Offer must acknowledge that it will deliver a prospectus in connection with
any resale of these New Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used by a Broker-Dealer in connection with resales of New Securities received in
exchange for Securities where such Securities were acquired as a result of market-making activities or other trading activities. The Company and the Guarantors have agreed to, starting on the
Expiration Date and ending on the close of business 90 days after the Expiration Date, make this Prospectus, as amended or supplemented, available to any Broker-Dealer for use in connection
with these resales. In addition, until                        , 200  , all dealers effecting transactions in the New
Securities may be required to deliver a prospectus. 

        The
Company will not receive any proceeds from any sale of New Securities by broker-dealers. New Securities received by Broker-Dealers for their own account in the Exchange Offer may be
sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the New Securities or a
combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such
prevailing market prices or negotiated prices. Any of these resales may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or
concessions from these Broker-Dealers and/or the purchasers of New Securities. Any Broker-Dealer that resells New Securities that were received by it for its own account in the Exchange Offer and any
broker or dealer that participates in a distribution of these New Securities may be deemed to be an "underwriter" within the meaning of the Securities Act and any profit of any of these resales of New
Securities and any commissions or concessions received by any such Persons may be deemed to be underwriting compensation under the Securities Act. The Letter of Transmittal states that by
acknowledging that it will deliver and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

        For
a period of 90 days after the Expiration Date, the Company and the Guarantors will promptly send additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any Broker-Dealer that requests such documents in the Letter of Transmittal. The Company has agreed to pay all expenses incident to the Exchange Offer (including the expenses of one
counsel for the holder of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the holders of the Securities (including any Broker-Dealers) against
certain liabilities, including liabilities under the Securities Act. 

24

 
ANNEX D  

Rider
A 

	CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.
	

Name:	
 	

 	
 	

 
	 	 	
	 	 
	

Address:	
 	

 	
 	

 
	 	 	
	 	 
	

 	
 	

	
 	

 

Rider
B 

        If
the undersigned is not a Broker-Dealer, the undersigned represents that it acquired the New Securities in the ordinary course of its business, it is not engaged in, and does not
intend to engage in, a distribution of New Securities and it has no arrangements or understandings with any Person to participate in a distribution of the New Securities. If the undersigned is a
Broker-Dealer that will receive New Securities for its own account in exchange for Securities, it represents that the Securities to be exchanged for New Securities were acquired by it as a result of
market-making activities or other trading activities and acknowledges that it will deliver a prospectus in connection with any resale of New Securities; however, by so acknowledging and by delivering
a prospectus, the undersigned will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

25

QuickLinks

PLAN OF DISTRIBUTIONExhibit 10.9

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is made and entered into as
of the 24th day of February, 2005, by and between SSA Global Technologies,
Inc., a Delaware corporation (hereinafter the “Company”), and Ross Garrity
(hereinafter the “Employee”).

 

WHEREAS, the
Company desires that the Employee provide services for the benefit of the
Company (including, to the extent required, all subsidiary and related
companies of the Company; hereinafter collectively the “Affiliates”) and the
Employee desires to accept such employment with the Company; and

 

WHEREAS, in the
course of employment with the Company, the Employee will have access to certain
confidential information that relates to or will relate to the business of the
Company and its Affiliates, and the Company desires that any such information
not be disclosed to other parties or otherwise used for unauthorized purposes.

 

NOW, THEREFORE,
in consideration of the above premises and the following terms and mutual
covenants, the parties agree as follows:

 

1.      EMPLOYMENT.  The Employee shall serve as Executive Vice
President, Operations.  The Employee
hereby accepts such employment and position on the terms contained herein.

 

2.      DUTIES AND
EMPLOYEE LOYALTY.  The Employee shall
work for the Company in a full-time capacity and shall have the duties,
responsibilities, powers and authority customarily associated with the position
of Executive Vice President Operations, which duties shall include, but not be
limited to, responsibility for corporate and field related activities
associated with such position, together with such other duties and functions as
are assigned from time to time by the Company’s CEO, President and Chairman or
his designee.  The Employee shall report
to the Company’s CEO, President and Chairman (hereinafter “Employee’s
Manager”).  The Employee shall devote his
entire business time, attention, energy, knowledge, and skill to the
performance of duties for the Company and will use his best efforts to promote
the interests of the Company and its Affiliates.

 

1

 

The Employee expressly agrees that during the term of this Agreement,
he shall not engage, directly or indirectly, as a partner, officer, director,
stockholder, advisor, agent, employee, or in any other form or capacity, in any
other business similar to that of the Company. 
The foregoing notwithstanding, nothing herein contained shall be deemed
to prevent the Employee from investing of not more than five percent (5%) in
the capital stock or other securities of any corporation whose stock or
securities are publicly owned or are regularly traded on any public exchange.

 

3.      TERM OF
EMPLOYMENT.  This Agreement shall be
entered into commencing as of April 4, 2005 (the “Start Date”) and shall
thereafter continue until terminated in accordance with Paragraph 7 of this
Agreement (the “Term”).

 

4.      COMPENSATION.  In full consideration for all services
rendered by the Employee to the Company, the Company shall pay to the Employee
during his period of employment, in addition to Paragraphs 5 and 6, the
following compensation:

 

(a) Base Salary.  The Employee shall be entitled to an annual
base salary of US$375,000 (hereinafter “Base Salary”) commencing as of the
Start Date, payable in substantially equal installments in accordance with the
customary payroll practices of the Company.

 

(b) Incentive Bonus.  The Employee shall be entitled to participate
in an annual bonus program which shall provide the Employee an opportunity to
achieve a targeted annual bonus of up to US$375,000 (“Incentive Bonus”).  The employee will receive a ‘compensation
plan’ detailing the components of his Incentive Bonus.  Such bonus plan will be in accordance with
the Executive Incentive plan, approved for 2005, by the Compensation Committee
of the Board.  Twenty-five percent (25%)
of such incentive compensation will relate directly to operating margin
improvement in the Employee’s area of responsibility.

 

The Employee agrees that Incentive Bonus payments are
not guaranteed income, and are based upon actual performance and achievement of
established objectives on a fiscal year or quarterly basis (in which case the
quarterly Incentive Bonus amount will be pro-rated accordingly).  The actual payment of earned Incentive

 

2

 

Bonus payments shall be made by the Company on a
periodic basis in accordance with the customary payroll practices of the
Company.  Currently, such periodic
payments coincide with the Company’s fiscal quarters ending July 31st,
October 31st, January 31st, and April 30th.

 

(c) Adjustments to Base Salary
and Annual Incentive Bonus. 
The Base Salary and/or Incentive Bonus may be increased and may only be
reduced by no more than 33% (it being agreed that the your Base Salary and /or
Incentive Bonus will only be reduced by no more than thirty-three percent (33%)
either (1) as part of a general decrease in the Base Salary and/or Incentive
Bonus of similarly affected employees and as part of a general cost reduction
exercise; or (2) if there is a significant change in the Employee’s duties and
responsibilities by the Employee’s Manager. 
Any such reduction shall be computed separately as to each of the Base
Salary and the Incentive Bonus.  The Base
Salary for any fiscal year may not be reduced more than 33% of the Base Salary
received by Employee in the previous fiscal year and no more than an aggregate
of 33% of the original Base Salary throughout the Term of this Agreement.  The reduction, if any, in the available
Incentive Bonus shall not be reduced more than 33% of the prior year’s
Incentive Bonus received by Employee. 
The Employee shall periodically receive a performance review in
accordance with the Company’s then existing policies.  For informational purposes only, the
Company’s current policy provides for an annual performance review (which may
or may not, at the Company’s option, include an increase in the Employee’s Base
Salary and/or Incentive Bonus).

 

(d) Additional Compensation.  The Employee is also eligible to be
considered for participation, during the term of his employment, in such other
compensation programs as may be available by the Company from time to time
(commensurate with the Employee’s position and compensation).  Specifically a sign on bonus of $100,000 will
be paid within 30 days of the Start Date.

 

(e) Grant
of Stock Options and Equity Guarantee Payment.  Pursuant to the terms and conditions of the
Company’s Equity Incentive Plan, , the Employee shall be granted options to
purchase 10,000 shares of the common stock, par value $0.01, of the Company
(the “Employee’s Options”), at an exercise price to be

 

3

 

determined in accordance
with the Company’s aforementioned stock option plan and will vest equally over
a 48 month period.

 

Except as provided in
Paragraph 8, if Employee is employed by the Company at the end of the four year
period from the Start Date or, if earlier, at the time of a Change in Control
(as defined in the Company’s Executive Incentive Plan effective as of July 31,
2003) (the “four year period”), Employee shall be entitled to receive the
“Equity Guarantee Payment” under the terms and conditions set forth in this
Paragraph 4(e).  The purpose of the
Equity Guarantee Payment is to insure that Employee has the ability to receive
a minimum $1 million pre-tax gain (net of Employee’s aggregate required
investment) in the Company’s common stock available under those Employee’s
Option that have vested.  The Equity
Guarantee Payment, if any, shall equal the difference between (i) the sum of
$1million plus the Employee’s aggregate Option Price under vested Employee’s
Options for the Company’s common stock less (ii) the fair market value of the
Company’s common stock at the end of the four year period.  Employee shall be entitled to receive the
Equity Guarantee Payment 30 days after the end of the four year period if,
during the four year period, Employee could not at any time sell Company common
stock (had he exercised all his then vested Employee’s Options) for a net gain
of at least $1 million over the aggregate vested Option Price.  Any and all transfer restrictions imposed on
Employee by contract or by law shall be taken into account.  If at any time during the four year period
Company no longer has an obligation to pay the Equity Guarantee Payment because
Employee could sell Company common stock for a net gain of at least $1 million,
Company shall give Employee written notice within 30 days.  Failure of the Company to provide such written
notice shall thereafter obligate Company to make the Equity Guarantee Payment
if Employee could not thereafter during the remainder of the four year period
sell Company common stock for a net gain of $1 million.  Payment by Company of the Equity Guaranty
Payment shall not require Employee to forfeit unexercised Employee’s Options or
Company common stock.

 

(f) Deductions.  The Employee agrees that the Company shall
withhold from any and all compensation required to be made to the Employee
under this Agreement all federal, state, local, provincial and/or other taxes
or payroll deductions which the Company determines are required to be withheld
in accordance with applicable

 

4

 

statutes and/or regulations from time to time in
effect or as otherwise withheld pursuant to the consent or agreement of the
Employee.

 

5.      BENEFITS.  During the term of this Agreement, the
Employee shall be eligible to participate in any life insurance, disability
insurance, medical, dental, or health insurance, vacation, savings, pension and
retirement plans and other benefit plans or programs as may be maintained by
the Company for the benefit of its employees 
(commensurate with the Employee’s position and compensation).  It is agreed that Employee shall be entitled
to four (4) weeks vacation annually, excluding Company recognized holidays.

 

6.      EXPENSES.
During the term of this Agreement, the Company shall promptly reimburse the
Employee for all reasonable and approved business expenses incurred by him in
connection with the performance of his duties to the Company, upon
substantiation of such expenses in accordance with the policies of the Company
in effect from time to time.

 

7.      TERMINATION OF
EMPLOYEE’S EMPLOYMENT.  Employee’s
employment by the Company shall be subject to the following:

 

(a)  Death.  Employee’s employment shall terminate
immediately upon his death.

 

(b)  Disability.  Employee’s employment shall terminate upon
Employee’s “Disability.”  For purposes of
this Agreement, “Disability” means a determination by the Company in accordance
with applicable law that, as a result of a physical or mental illness, the
Employee is unable and has been unable to perform the essential functions of
his job with or without reasonable accommodation for a period of (i) 90
consecutive days, or (ii) 180 days in any one (1) year period.  To the extent the parties disagree as to the
existence of a Disability, they shall mutually select a physician to render a
binding opinion.  For purposes of this
Agreement, the Termination Date for Employee’s Disability shall be at the end
of the 90-day period or 180-day period, as the case may be.

 

5

 

(c)  By the Company.  The Company may terminate the Employee’s
employment at any time during the Term with or without “Cause” (as defined
below), upon written notice by the Company to the Employee. For termination of
Employee’s employment by the Company based on “For Cause,” if a cure is
possible the Company shall provide Employee with two (2) weeks notice of the
events giving rise to a possible “For Cause” termination and provide Employee
with the opportunity to cure the “cause.” 
A termination “For Cause” shall take effect on the date notice is given,
if the “cause” is incurable, or two (2) weeks after notice if given, if the
“cause” is curable but remains uncured at that time.  For purposes of this Agreement, “For Cause”
means:

 

(1) the willful and
continued failure by Employee substantially to perform his duties and
responsibilities;

 

(2) an intentional and verifiable breach by Employee
of a written policy of the Company that has a material detrimental effect on
the Company; or

 

(3) any fraudulent, unlawful, grossly negligent,
dishonest or willful misconduct engaged in by Employee;

 

(4) Employee’s willful refusal to follow a reasonable,
achievable and lawful material directive of his Employee’s Manager made within
the scope of Employee’s duties hereunder;

 

(5) the commission by Employee of any felony crime
involving moral turpitude or that impairs Employee’s ability to perform
Employee’s assigned functions and responsibilities; or

 

(6) Employee’s improper and material disclosure or use
of the Company’s confidential information.

 

In the event Employee’s employment is terminated For
Cause, Employee shall be entitled to no compensation or benefits other than
those earned through the effective date of Employee’s termination, including
any unpaid Incentive Bonus earned but not yet paid.

 

6

 

(d)  By the Employee.  Employee may terminate employment with the
Company at any time, with or without “Good Reason” (as defined below), upon no
less than ninety (90) days prior written notice to the Company.  For purposes of this Agreement, “Good Reason”
means any of the following conditions:

 

(i) Any decrease in
Employee’s Base Salary greater than thirty-three percent (33%) of Employee’s
then most recent base salary; it being agreed that the Employee’s base salary
will only be reduced by up to thirty-three percent (33%) as part of a general
decrease in the Base Salary of similarly affected employees and as part of a
general cost reduction exercise;

 

(ii) If applicable, any
decrease in the amount of total annual base bonus potential (exclusive of any
multipliers) awarded to Employee with respect to a fiscal year which decrease
is greater then thirty- three percent (33%) of Employee’s then most recent
assigned base bonus;  it being agreed
that the Employee’s base bonus will only be reduced by up to thirty-three
percent (33%) as part of a general decrease in the base salary of similarly
affected employees and as part of a general cost reduction exercise.  In addition, it is agreed that: (a) any
change by the Company in the underlying determining factor(s) including, but
not limited to, the reallocation of percentages assigned to each determining
factor used by the Company when calculating any bonus; (b)  any change by the Company in the application
of multipliers to the base bonus amount will, not constitute Good Reason;
and/or (c) non-payment to Employee of bonus compensation because of Employee’s
failure to achieve reasonable performance milestones will not constitute Good
Reason; or

 

(iii)
Any successor to the Company (or its business) fails in any acquisition of the
Company (or its business), or any other reorganization or Change in Control,
(as defined the Company’s Equity Incentive Plan effective as of July 31, 2003)
does not agree in writing to assume, in full, all of the obligations of the Company
as set forth in this Agreement and any other offer letter, Employment Agreement
or other document previously entered into between the Company and the Employee,
it being expressly understood

 

7

 

that this Agreement shall
supersede any conflicting terms set forth elsewhere that relate to termination
of employment, severance obligations and any other subject matter set forth
herein.

 

(iv) a significant change in the Employee’s duties and
responsibilities under Paragraph 4(c).

 

In the event Employee
voluntarily terminates Employee’s employment for any other reason other than
for Good Reason Employee shall be entitled to no compensation or benefits other
than those earned through the effective date of Employee’s termination,
including any unpaid Incentive Bonus earned but not yet paid.

 

8.      TERMINATION.  Subject to the payment contingencies below,
if the Company terminates Employee’s employment for any reason (other than “For
Cause” (as hereinafter defined) death or disability) or Employee terminates
employment with Good Reason (as hereinafter defined), upon the effective date
of Employee’s termination of employment (“Termination Date”), Employee will be
entitled to the following:

 

(a)   Entitlements.

 

(i) Payment of any accrued but unpaid Base Salary
determined prior to the reduction contemplated by Paragraph 7(d)(i) through the
Termination Date and any unpaid Incentive Bonus earned but not yet paid with
respect to any prior fiscal quarter; and

 

(ii)  Continuation
of payment of Employee’s Base Salary determined prior to the reduction
contemplated by Paragraph 7(d)(i) for 12 months; said payments to be made
periodically in accordance with the Company’s local payroll practices;

 

(iii)  If
applicable, continuation for a period of four (4) fiscal quarters (inclusive of
the fiscal quarter applicable to Employee’s actual Termination Date) of fifty
percent (50%) of Employee’s quarterly

 

8

 

Incentive Bonus (based on 100% achievement and
exclusive of any multipliers); said payments to be made on a quarterly basis in
accordance with the Company’s local practices;

 

(iv)  If
applicable,  a pro rata portion of
Employee’s annual Incentive Bonus (based on 100% achievement and exclusive of
any multipliers) for the fiscal year in which such termination occurs,
determined by multiplying fifty percent (50%) of Employee’s annual target bonus
by a fraction the numerator of which is the number of days in the fiscal year
prior to the Termination Date and the denominator of which is 365 (such amount
to be paid to Employee at the end of the Company’s then current fiscal year in
accordance with the Company’s local practice);

 

(v)  The Equity Guarantee Payment in accordance
with the terms and conditions of Paragraph 4(e) based on the fair market of the
common stock at the termination date, but if Employee terminates employment for
Good Reason, the Equity Guarantee Payment shall be calculated by substituting
for $1 million in paragraph 4(e) an amount equal to the product of $1 million
times a fraction, the numerator of which is the number of months or portion of
a month Employee is employed by Company and the denominator of which is
48.  The Equity Guarantee Payment shall
be paid within 30 days after termination of employment.

 

With respect to any stock options and/or other forms of equity rights
that may be granted to the Employee in accordance with the terms of the
Company’s Equity Incentive Plan (including any successor plan), the vesting of
such options and rights together with the terms and conditions governing the
exercise of such options and rights shall be determined solely in accordance
with the terms of such plan(s).

 

(b)  Termination Due To Death or Disability.  If Employee’s employment is terminated due to
death or Disability, Employee (or his estate, if applicable) shall receive Base
Salary accrued through the Termination Date, plus four (4) additional months of
Base Salary, payable when such payments would otherwise have been made, and all
medical and dental benefits accrued to the Termination Date that are not
forfeited under the terms of their respective plans.  Employee (or his estate, if applicable) shall
also be entitled to immediate vesting of all outstanding unvested options.

 

9

 

(c)  Payment Contingencies.
Payment of any amounts to Employee hereunder is contingent upon  (except in cases of death): (i) Employee
first entering into an agreement that releases the Company, its subsidiaries,
officers, directors and employees from actions, suits, claims, proceedings and
demands related to Employee’s period of employment and/or Employee’s
termination of employment; (ii) the Company being permitted to offset any
salary paid to Employee during any notice period as provided for herein (or as
otherwise agreed upon by the Company in writing or, if applicable, as may be
required pursuant to any local law, regulation or statute) if Employee performs
no services during such notice period; (iii) Employee returning, in good
condition, all property belonging to the Company; and (iv) Employee remaining
in compliance with his obligations of confidentiality including, without
limitation, Employee’s adherence to any restrictions placed upon Employee’s
subsequent employment opportunities pursuant to separate agreement with the
Company.   In addition, Employee agrees
that to the extent permitted by the local laws, the notice period(s) and
severance payment obligations, as set forth in this Agreement shall be in lieu
of any other obligations, statutory or otherwise, relating to Employee’s term
of employment, notice obligations and/or termination of employment.

 

9.      CONFIDENTIALITY
AND COMPETITIVE ACTIVITY.  The
Employee’s confidentiality and competitive activity obligations and limitations
shall be determined in accordance with the following:

 

(a)  Confidentiality.

 

(1)  The
Employee acknowledges that during the Term he will acquire Confidential
Information (as defined below) and public disclosure of such Confidential
Information could have an adverse effect on the Company.  Accordingly, the Employee agrees that he will
not, directly or indirectly, disclose, reveal, divulge, publish or otherwise
make known to any unauthorized person and will not use or permit any unauthorized
person to disclose, reveal, divulge, publish or otherwise make known to any unauthorized
person or use any Confidential Information for any reason or purpose
whatsoever, except in the performance of his duties for the Company and as
required by applicable law, and will not make use of any

 

10

 

Confidential Information for such unauthorized
person’s own purposes or for the benefit of any other person.

 

(2)  The Employee
agrees that he will not remove from the premises of the Company (except to the
extent such removal is for purposes of the performance of the Employee’s duties
at home or while traveling, or except as otherwise specifically authorized by the
Company) any document, record, notebook, plan, model, component, device, or
computer software or code related to the Company or the Company’s business,
whether embodied in a disk or in any other form (collectively, the “Proprietary
Items”).  The Employee recognizes that all
of the Proprietary Items, whether or not developed by the Employee, are the
exclusive property of the Company.  Upon
termination of the Employee’s employment under this Agreement, or upon the
request of the Company during the Term, the Employee agrees that he will return
to the Company all of the Proprietary Items in the Employee’s possession or
subject to his control, and the Employee shall not retain any copies,
abstracts, sketches, or other physical embodiment of any of the Proprietary
Items.

 

(3)  “Confidential
Information” means all information, data, documents, reports, agreements,
interpretations, forecasts and records (whether in oral or written form,
electronically stored or otherwise) containing or otherwise reflecting
information concerning the Company, including, without limitation (i) financial
information, books and records, cost information, bidding information and
strategies and contracts and agreements, (ii) marketing plans and strategies,
customer contracts and agreements and information relating to past, current and
prospective customers, suppliers, business contacts and clients, (iii)
operating procedures, techniques, systems, processes and methods, all
proprietary rights, trade secrets and other intellectual property, product and
service information, including research and development and proposed products
and services, (iv) employee records and information, and (v) other commercial “know-how”
and information not available to the public generally; provided, however, that “Confidential
Information” does not include information which (a) is in the public domain at
the time it is received by the receiving party, (b) which becomes public
through no fault of the disclosing party or any other person, (c) is
independently developed by the receiving party without reference to the
Confidential Information, and (d) know-how,

 

11

 

methodologies, ideas, inventions, concepts and
techniques conceived, developed or reduced to practice by the Employee prior to
or independent of the Employee’s employment with the Company.

 

(b)  Competitive Activity.

 

(1)  During the
Employee’s employment hereunder and, unless the Employee’s employment is
terminated (a) by the Company without Cause, or (b) by the Employee for Good
Reason, for twelve (12) months thereafter the Employee will not, directly or
indirectly, without the consent of the Company:

 

(i)  engage or assist any person in engaging in,
individually, or as an officer, director, employee, agent, consultant, owner,
partner, manager, member, principal, or in any other capacity, or render any
services to, a system solutions provider, developer of enterprise resource
planning software or any other entity or person who is engaged, directly or
indirectly, in the promotion of software and/or related services which are
deemed by the Company to be directly competitive with software and/or related
service offerings available from the Company including, but not limited to, the
development, production, distribution, sale, licensing, or marketing of software
products (and/or the provision of related services) similar to those produced
and sold by the Company designed to run on computer platforms supported by the
Company including, without limitation, IBM iSeries, HP 9000 computer (including
any successor computer platforms); or in an NT operating environment
(Competitive Business”); provided, however, that the ownership by the Executive
of not more than five percent (5%) in the capital stock or other securities of
any corporation whose stock or securities are publicly owned or are regularly
traded on any public exchange, that engages in a Competitive Business shall not
be deemed to be a breach of this subparagraph;

 

(ii)  in any
manner solicit, induce or attempt to induce, or assist others to solicit,
induce or attempt to induce, any customer, supplier, contractor, customer or
prospect then associated with the Company at such time or, in the case of any
customer, in the prior year, to terminate or materially and adversely alter

 

12

 

its, his or her association with the Company, or in
any other manner interfere with any agreement or contract between the Company
and any such person;

 

(iii)  solicit,
or attempt to solicit, interfere with, or endeavor to cause any employee of the
Company to leave his or her employment or induce or attempt to induce any
employee of the Company to breach his or her employment or consulting agreement
with the Company;

 

(2)  The Employee
acknowledges that (i) the services to be performed by him under this Agreement
are of a special, unique, unusual, extraordinary, and intellectual character,
(ii) the Company’s business is international in scope and its products are
marketed worldwide, and (iii) the Company competes with other businesses that are
or could be located in any part of the world.

 

(c)  Enforcement.  If, at the time of enforcement of this
Paragraph 9, a court should hold that the duration or scope restrictions stated
herein are unreasonable under circumstances then existing, the parties agree
that the maximum duration or scope reasonable under such circumstances will be
substituted for the stated duration or scope. 
Whenever possible, each provision of this Paragraph 9 will be
interpreted in such manner as to be effective and valid under applicable law.

 

10.    ADDITIONAL
PROVISIONS.  The Company and the
Employee further agree as follows:

 

(a)  Assignment.  The Employee acknowledges that the services
to be rendered by him are unique and personal. 
Accordingly, the Employee may not assign any of his rights or delegate
any of his duties or obligations under this Agreement.  The rights and obligations of the Company
under this Agreement shall inure to the benefit of and shall be binding upon
the successors and assigns of the Company.

 

(b)  Notices.  All notices required or permitted hereunder
shall be in writing and deemed effectively given upon personal delivery or upon
deposit in the United States mails, by registered or certified mail, postage
prepaid,

 

13

 

addressed to the other party hereto at the address set
forth next to the party’s signature or such other address as the party may
designate.

 

(c)  Entire Agreement. This
Agreement constitutes the entire agreement between the parties, and supersedes
all prior agreements and understandings relating to the subject matter
hereof.  If any provision of this
Agreement shall be found invalid or unenforceable for any reason, in whole or
in part, then such provision shall be deemed modified, restricted, or
reformulated to the extent and in the manner necessary to render the same valid
and enforceable, or shall be deemed excised from this Agreement, as the case
may require, and this Agreement shall be construed and enforced to the maximum
extent permitted by law, as if such provision had been originally incorporated
herein as so modified, restricted, or reformulated or as if such provision had
not been originally incorporated herein, as the case may be.

 

(d)  Indemnification.  The Company agrees to indemnify and hold
harmless the Employee from any and all losses, suits, actions, judgments,
penalties, fines, costs, damages, liabilities or claims of any kind or nature,
whether joint or several, (including, without limitation, reasonable legal or
any other expenses as they are incurred by the Employee in connection with the
preparation for or defense of any action, claim or proceeding, whether or not
resulting in any liability ) (all of the foregoing being collectively defined
as the “Indemnified Claims”) to which the Employee may become subject or liable
or which may be incurred by or assessed against the Employee under any statute,
common law, contract or otherwise, relating to or arising out of this Agreement
or the services performed pursuant to this Agreement; provided, however, that
the Company shall not be liable to the Employee in any such case solely to the
extent that any such Indemnified Claim is found by a court of competent
jurisdiction, to have resulted solely and exclusively and as a direct and proximate
cause from said Employee’s willful misconduct or gross negligence in the
performance of his duties.  Promptly
after receipt by the Employee of notice of the occurrence of an Indemnified
Claim, or any claim or the commencement of any action or proceeding in respect
of which indemnity may be sought against the Company, the Employee shall notify
the Company in writing of the commencement thereof (including the employment of
counsel satisfactory to the Employee and the payment of the reasonable fees and
expenses of such counsel).  The indemnity
and expense reimbursement agreements and obligations set forth herein shall be
in addition to any other rights, remedies or indemnification which the Employee
may have or be entitled to at common law or otherwise, and

 

14

 

shall remain operative and in full force and effect
regardless of any investigation made by or on behalf of the Employee.

 

(e)  Amendment. This Agreement
may be amended or modified only by a written instrument executed by both the
Company and the Employee.

 

(f)  Headings.  The paragraph and subparagraph headings used
in this Agreement are for convenience only and shall not be deemed to be
considered a construction of the provisions hereof.

 

(g)  Immigration and Reform Control Act of 1986.  This Agreement is contingent upon submission
by the Employee of the appropriate documentation, if any, as may be required
for verification in compliance with the Immigration and Reform Control Act of
1986, as amended.

 

(h)  Satisfactory references.  This Agreement is
contingent upon satisfactory references being gained from the Employee’s prior
employers and other background checking. 
For confidentiality reasons, the Company agrees not to contact
Employee’s current employer without Employee’s prior consent.

 

(i)  Governing Law.  This Agreement shall be governed by and
construed, interpreted and enforced in accordance with the laws of the State of
Illinois.

 

THE EMPLOYEE HAS READ AND FULLY UNDERSTANDS THE TERMS AND CONDITIONS
SET FORTH IN THIS AGREEMENT, HAS HAD TIME TO REFLECT ON AND CONSIDER THE
BENEFITS AND CONSEQUENCES OF ENTERING INTO THIS AGREEMENT, AND HAS HAD THE
OPPORTUNITY TO REVIEW THE TERMS HEREOF WITH AN ATTORNEY OR OTHER
REPRESENTATIVE, IF HE SO CHOOSES.

 

15

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first written at the introductory paragraph to this
Agreement.

 

EMPLOYEE:

 

	
  By:

  	
  /s/ Ross D. Garrity

  	
   

  	
  Address: 4464 Andrews Blvd., Irving, Texas 75038

  
	
   

  	
   

  
	
  Typed or Printed Name: Ross D. Garrity

  	
   

  
	
   

  	
   

  
	
  SSA GLOBAL TECHNOLOGIES, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kirk J. Isaacson

  	
   

  	
  Address: 500 West Madison Street, Chicago,
  Illinois 60661

  
	
   

  	
   

  
	
  Typed or Printed Name: Kirk J. Isaacson, Executive
  Vice President & General Counsel

  
						

 

16

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