Document:

Indenture

 Exhibit 4.2 
 Explanatory Note: The body of this document was previously filed with the SEC, as indicated in the Exhibit Index. What follows are additional schedules and/or exhibits to that document that were
not included in the original filing. 

 Schedule 3.4 
 1. Indenture 
 2. Collateral Documents 
 3. Securities 
 4. Exchange Securities 

5. Subsidiary Guarantees 
 6. Working Capital
Facility 
 7. Loan Agreement, dated March 1, 1998, between CityForest Corporation and City of Ladysmith, Wisconsin 
 8. Amended and Restated Reimbursement Agreement, dated March 21, 2007, between Cellu Tissue-CityForest LLC and Associated Bank, National Association

 9. Mortgage dated as of June 29, 2005 made by Cellu Tissue-CityForest LLC in favor of Associated Bank, National Association 

10. Security Agreement dated as of June 29, 2005 made by the Cellu Tissue-CityForest LLC in favor of Associated Bank, National Association

 11. Pledge and Security Agreement dated as of June 29, 2005 made by the Cellu Tissue-CityForest LLC in favor of Associated Bank,
National Association 
 12. US Pledge and Security Agreement dated June 12, 2006 made by Cellu Tissue Holdings, Inc. and certain of its
Subsidiaries in favor of JP Morgan Chase Bank, N.A. 
 13. General Security Agreement dated June 12, 2006 made by Interlake Acquisition
Corporation Limited in favor of JP Morgan Chase Bank, N.A., Toronto Branch 
 14. Mortgage and Security Agreement dated June 12, 2006
executed by Interlake Acquisition Corporation Limited in favor of JP Morgan Chase Bank, N.A., Toronto Branch 
 15. Deed of Trust, Security
Agreement, Assignment of Leases and rents, and Fixture Filing dated June 12, 2006 made by Coastal Paper Company to Gulf Title Company, Inc. 
 16. Open-End Mortgage Deed, Security Agreement, Assignment of Leases and Rents and Fixture Filing dated June 12, 2006 from Cellu Tissue LLC to JP Morgan Chase Bank, N.A. 
 17. Mortgage dated June 12, 2006 by Menominee Acquisition Corporation for the benefit of JP Morgan Chase Bank, N.A. 
 18. Open End Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing dated as of June 12, 2006 made by Cellu Tissue Corporation-Neenah for the benefit of JP Morgan Chase
Bank, N.A. 
 19. Open End Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing dated as of March 21, 2007 made
by Cellu Tissue-CityForest LLC for the benefit of JP Morgan Chase Bank, N.A. 

 Schedule 3.8 
 None 

 Exhibit E 
 Form of Mortgage 

 After recording please return to: 
 Simpson Thacher & Bartlett LLP 
 425 Lexington Avenue 
 New York, New York 10017 
 Attention: Chris Garcia

  
  
 MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS, 
 AND FIXTURE FILING 
 made by 
 CELLU TISSUE CORPORATION – NATURAL DAM, 
 Mortgagor, 
 to 
 THE BANK OF NEW
YORK MELLON TRUST COMPANY, N.A., 
 as Collateral Agent, Mortgagee 
 Dated as of May     , 2009 
  
  
 The maximum amount of principal
indebtedness secured hereby shall not exceed [    ] and 
 00/100
($[    ],000,000.00) 

 TABLE OF CONTENTS 
  

					
	 	  	Page
		
	Background	  	1
		
	Granting Clauses	  	2
		
	Terms and Conditions	  	4
	 1.
	  	Defined Terms	  	4
	 2.
	  	Warranty of Title	  	4
	 3.
	  	Payment of Obligations	  	4
	 4.
	  	Requirements	  	4
	 5.
	  	Payment of Taxes and Other Impositions	  	4
	 6.
	  	Insurance	  	5
	 7.
	  	Restrictions on Liens and Encumbrances	  	6
	 8.
	  	Due on Sale and Other Transfer Restrictions	  	6
	 9.
	  	Condemnation/Eminent Domain	  	6
	 10.
	  	Leases	  	7
	 11.
	  	Further Assurances	  	7
	 12.
	  	Mortgagee’s Right to Perform	  	7
	 13.
	  	Remedies	  	7
	 14.
	  	Right of Mortgagee to Credit Sale	  	9
	 15.
	  	Appointment of Receiver	  	9
	 16.
	  	Extension, Release, etc.	  	9
	 17.
	  	Security Agreement under Uniform Commercial Code	  	10
	 18.
	  	Assignment of Rents	  	10
	 19.
	  	Additional Rights	  	11
	 20.
	  	Notices	  	11
	 21.
	  	No Oral Modification	  	12
	 22.
	  	Partial Invalidity	  	12
	 23.
	  	Mortgagor’s Waiver of Rights	  	12
	 24.
	  	Remedies Not Exclusive	  	13
	 25.
	  	Multiple Security	  	13
	 26.
	  	Successors and Assigns	  	14
	 27.
	  	No Waivers, etc.	  	14
	 28.
	  	Governing Law, etc.	  	14
	 29.
	  	Certain Definitions	  	15
	 30.
	  	Lien Law	  	15
	 31.
	  	Maximum Principal Indebtedness Secured	  	15
	 32.
	  	Non-Residential Property	  	16
	 33.
	  	Additional Matters Relating to Property Located in the State of New York	  	16
	 34.
	  	Last Dollars Secured; Priority	  	16
	 35.
	  	Release	  	17

 MORTGAGE, SECURITY AGREEMENT, 
 ASSIGNMENT OF LEASES AND RENTS, AND FIXTURE FILING 
 THIS MORTGAGE, SECURITY
AGREEMENT, ASSIGNMENT OF LEASES AND RENTS, AND FIXTURE FILING, dated as of May     , 2009, is made by CELLU TISSUE CORPORATION – NATURAL DAM, a Delaware corporation (“Mortgagor”), whose address is 4921 Route
58 North, Gouverneur, NY 13842 to THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., not in its individual capacity, but solely as collateral agent under the Security Agreement (defined below) (in such capacity, “Mortgagee”) whose
address is 101 Barclay Street, New York, New York 10286. References to this “Mortgage” shall mean this instrument and any and all renewals, modifications, amendments, supplements, extensions, consolidations, substitutions, spreaders
and replacements of this instrument. 
 Background 
 A. Pursuant to that certain Indenture dated as of even date herewith among Cellu Tissue Holdings, Inc. (the “Company”), the
subsidiary guarantors (the “Subsidiary Guarantors”) party thereto, including Mortgagor, and Mortgagee, as trustee (as the same may be amended, restated, replaced, supplemented, substituted, or otherwise modified from time to time,
the “Indenture”), (i) the Company (x) has issued [    ]% Senior Secured Notes due 2014 to certain holders of the notes (the “Holders”) in an aggregate principal amount not to exceed
[    ] ([    ]), and (y) may issue from time to time additional notes pursuant to, and in accordance with, the provisions of the Indenture (as the foregoing (x) and (y) may be amended, restated,
replaced, supplemented, substituted, or otherwise modified from time to time, collectively, the “Notes”) and (ii) the Subsidiary Guarantors have guaranteed the Company’s obligations under the Notes and the Indenture.

 B. Pursuant to the terms and provisions of the Indenture, Mortgagor, the Company and certain of the Company’s
subsidiaries have entered into that certain Security Agreement dated as of even date herewith (as the same may be amended, restated, replaced, supplemented, substituted, or otherwise modified from time to time, the “Security
Agreement”) in favor of Mortgagee, as collateral agent, for the benefit of the Secured Parties (references herein to the “Secured Parties” shall mean the collective reference to the Holders and Mortgagee and their
respective successors, indorsees, transferees and assigns). Pursuant to the Security Agreement, the Secured Parties have appointed Mortgagee as Collateral Agent hereunder. 
 C. Mortgagor (i) is the owner of the fee simple estate in the parcel(s) of real property described on Schedule A attached hereto
(the “Owned Land”); and (ii) owns all of the buildings, improvements, structures, and fixtures now or subsequently located on the Land (the “Improvements”; the Owned Land and the Improvements being collectively
referred to as the “Real Estate”). 
 D. It is a condition precedent to the purchase of the Notes by the
Holders, that Mortgagor execute and deliver this Mortgage to Mortgagee for the ratable benefit of the Secured Parties. 

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 Granting Clauses 
 For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to secure the
Mortgagor’s Guarantor Obligations (as such term is defined in the Security Agreement, the “Obligations”), 
 MORTGAGOR
HEREBY GRANTS TO MORTGAGEE A LIEN UPON AND A SECURITY INTEREST IN, AND HEREBY MORTGAGES AND WARRANTS, GRANTS, ASSIGNS, TRANSFERS AND SETS OVER TO MORTGAGEE: 
 (a) the Owned Land; 
 (b) all right, title and interest Mortgagor now has or may hereafter acquire in and to the Improvements or any part thereof and all the estate, right, title, claim or demand whatsoever of Mortgagor, in
possession or expectancy, in and to the Real Estate or any part thereof; 
 (c) all right, title and interest of
Mortgagor in, to and under all easements, rights of way, licenses, operating agreements, abutting strips and gores of land, streets, ways, alleys, passages, sewer rights, waters, water courses, water and flowage rights, development rights, air
rights, mineral and soil rights, plants, standing and fallen timber, and all estates, rights, titles, interests, privileges, licenses, tenements, hereditaments and appurtenances belonging, relating or appertaining to the Real Estate, and any
reversions, remainders, rents, issues, profits and revenue thereof and all land lying in the bed of any street, road or avenue, in front of or adjoining the Real Estate to the center line thereof; 
 (d) all of the fixtures, chattels, business machines, machinery, apparatus, equipment, furnishings, fittings, appliances and
articles of personal property of every kind and nature whatsoever, and all appurtenances and additions thereto and substitutions or replacements thereof (together with, in each case, attachments, components, parts and accessories) currently owned or
subsequently acquired by Mortgagor and now or subsequently attached to, or contained in or used or usable in any way in connection with any operation or letting of the Real Estate, including but without limiting the generality of the foregoing, all
screens, awnings, shades, blinds, curtains, draperies, artwork, carpets, rugs, storm doors and windows, furniture and furnishings, heating, electrical, and mechanical equipment, lighting, switchboards, plumbing, ventilating, air conditioning and
air-cooling apparatus, refrigerating, and incinerating equipment, escalators, elevators, loading and unloading equipment and systems, stoves, ranges, laundry equipment, cleaning systems (including window cleaning apparatus), telephones,
communication systems (including satellite dishes and antennae), televisions, computers, sprinkler systems and other fire prevention and extinguishing apparatus and materials, security systems, motors, engines, machinery, pipes, pumps, tanks,
conduits, appliances, fittings and fixtures of every kind and description (all of the foregoing in this paragraph (d) being referred to as the “Equipment”); 
 (e) all right, title and interest of Mortgagor in and to all substitutes and replacements of, and all additions and
improvements to, the Real Estate and the Equipment, subsequently acquired by or released to Mortgagor or constructed, assembled

 3 
  

 
or placed by Mortgagor on the Real Estate, immediately upon such acquisition, release, construction, assembling or placement, including, without limitation, any and all building materials whether
stored at the Real Estate or offsite, and, in each such case, without any further deed, conveyance, assignment or other act by Mortgagor; 
 (f) all right, title and interest of Mortgagor in, to and under all leases, subleases, underlettings, concession agreements, management agreements, licenses and other agreements relating to the use or
occupancy of the Real Estate or the Equipment or any part thereof, now existing or subsequently entered into by Mortgagor and whether written or oral and all guarantees of any of the foregoing (collectively, as any of the foregoing may be amended,
restated, extended, renewed or modified from time to time, the “Leases”), and all rights of Mortgagor in respect of cash and securities deposited thereunder and the right to receive and collect the revenues, income, rents, issues
and profits thereof, together with all other rents, royalties, issues, profits, revenue, income and other benefits arising from the use and enjoyment of the Mortgaged Property (as defined below) (collectively, the “Rents”);

 (g) all unearned premiums under insurance policies now or subsequently obtained by Mortgagor relating to the
Real Estate or Equipment and Mortgagor’s interest in and to all proceeds of any such insurance policies (including title insurance policies) including the right to collect and receive such proceeds, subject to the provisions relating to
insurance generally set forth below; and all awards and other compensation, including the interest payable thereon and the right to collect and receive the same, made to the present or any subsequent owner of the Real Estate or Equipment for the
taking by eminent domain, condemnation or otherwise, of all or any part of the Real Estate or any easement or other right therein; 
 (h) to the extent not prohibited under the applicable contract, consent, license or other item unless the appropriate consent has been obtained, all right, title and interest of Mortgagor in and to
(i) all contracts from time to time executed by Mortgagor or any manager or agent on its behalf relating to the ownership, construction, maintenance, repair, operation, occupancy, sale or financing of the Real Estate or Equipment or any part
thereof and all agreements and options relating to the purchase or lease of any portion of the Real Estate or any property which is adjacent or peripheral to the Real Estate, together with the right to exercise such options and all leases of
Equipment, (ii) all consents, licenses, building permits, certificates of occupancy and other governmental approvals relating to construction, completion, occupancy, use or operation of the Real Estate or any part thereof, and (iii) all
drawings, plans, specifications and similar or related items relating to the Real Estate; and 
 (i) all
proceeds, both cash and noncash, of the foregoing; 
 (All of the foregoing property and rights and interests now owned or held
or subsequently acquired by Mortgagor and described in the foregoing clauses (a) through (c) are collectively referred to as the “Premises”, and those described in the foregoing clauses (a) through (i) are
collectively referred to as the “Mortgaged Property”). 

 4 
  

 TO HAVE AND TO HOLD the Mortgaged Property and the rights and privileges hereby mortgaged
unto Mortgagee, its successors and assigns for the uses and purposes set forth, until the Obligations are fully paid and performed, provided, however, that the condition of this Mortgage is such that if the Obligations are fully paid and performed,
then the estate hereby granted shall cease, terminate and become void but shall otherwise remain in full force and effect. 
 This Mortgage covers present and future advances and re-advances, in the aggregate amount of the Obligations secured hereby, made by the Secured Parties for the benefit of Mortgagor, and the lien of such future advances and re-advances
shall relate back to the date of this Mortgage. 
 Terms and Conditions 
 Mortgagor further represents, warrants, covenants and agrees with Mortgagee and the Secured Parties as follows: 
 1. Defined Terms. Capitalized terms used herein (including in the "Background" and "Granting Clauses" sections above) and not
otherwise defined herein shall have the meanings ascribed thereto in the Indenture or the Security Agreement, as applicable. References in this Mortgage to the “Default Rate” shall be deemed to refer to the interest rate as
applicable to the term Defaulted Interest pursuant to Section [2.14] of the Indenture. 
 2. Warranty of Title. Mortgagor
warrants that it has good, valid and marketable record title in fee simple to the Real Estate, and good title to the rest of the Mortgaged Property, subject only to the matters that are set forth in Schedule B of the title insurance policy or
policies, if any, being issued to Mortgagee to insure the lien of this Mortgage and any other lien or encumbrance as permitted by Section [3.6] of the Indenture (the “Permitted Exceptions”). Mortgagor shall warrant, defend and
preserve such title and the lien of this Mortgage against all claims of all persons and entities (not including the holders of the Permitted Exceptions). Mortgagor represents and warrants that it has the right to mortgage the Mortgaged Property.

 3. Payment of Obligations. Mortgagor shall pay and perform the Obligations at the times and places and in the manner
specified in the Indenture and the Security Agreement. 
 4. Requirements. Mortgagor shall promptly comply with all
covenants, restrictions and conditions now or later of record which may be applicable to any of the Mortgaged Property, or to the use, manner of use, occupancy, possession, operation, maintenance, alteration, repair or reconstruction of any of the
Mortgaged Property, except where a failure to do so could not reasonably be expected to have a material adverse effect (considered both individually and together with other such failures) on (i) the current business, operations or condition
(financial or otherwise) of the Mortgagor, (ii) the current use of the Mortgaged Property or (iii) the value of the Mortgaged Property (assuming its current use). 
 5. Payment of Taxes and Other Impositions. (a) Promptly when due or prior to the date on which any fine, penalty, interest or
cost may be added thereto or imposed, Mortgagor shall pay and discharge all taxes, charges and assessments of every kind and nature, all charges for any easement or agreement maintained for the benefit of any of the Real Estate, all general and
special assessments, levies, permits, inspection and license fees, all water and sewer rents and

 5 
  

 
charges, vault taxes and all other public charges even if unforeseen or extraordinary, imposed upon or assessed against or which may become a lien on any of the Real Estate, or arising in respect
of the occupancy, use or possession thereof, together with any penalties or interest on any of the foregoing (all of the foregoing are collectively referred to herein as the “Impositions”), except where (i) the validity or
amount thereof is being contested in good faith by appropriate proceedings, and (ii) the Mortgagor has set aside on its books adequate reserves with respect thereto in accordance with GAAP. Upon request by Mortgagee, Mortgagor shall deliver to
Mortgagee evidence reasonably sufficient to establish payment of any such Imposition. If by law any Imposition, at Mortgagor’s option, may be paid in installments (whether or not interest shall accrue on the unpaid balance of such Imposition),
Mortgagor may elect to pay such Imposition in such installments and shall be responsible for the payment of such installments with interest, if any. 
 (b) Nothing herein shall affect any right or remedy of Mortgagee under this Mortgage or otherwise, without notice or demand to Mortgagor, to pay any Imposition after the date such Imposition shall have
become due, and add to the Obligations the amount so paid, together with interest from the time of payment at the Default Rate. Any sums paid by Mortgagee in discharge of any Impositions shall be (i) a lien on the Premises secured hereby prior
to any right or title to, interest in, or claim upon the Premises subordinate to the lien of this Mortgage, and (ii) payable on demand by Mortgagor to Mortgagee together with interest at the Default Rate as set forth above. 
 6. Insurance. (a) Mortgagor shall maintain, with financially sound and reputable companies, insurance policies (i) insuring
the Real Estate against loss by fire, explosion, theft and such other applicable casualties insured against by persons occupying or using like properties in the locality or localities in which the Real Estate is situated, and (ii) insuring
Mortgagor, the Mortgagee and the other Secured Parties against liability for personal injury and property damage relating to such Real Estate, such policies to be in such form and amounts and having such coverage as is customarily insured against by
persons occupying or using like properties in the locality or localities in which the Real Estate is situated. All such insurance shall (i) provide that no cancellation, material reduction in amount or material change in coverage thereof shall
be effective until at least thirty (30) days after receipt by the Mortgagee of written notice thereof, (ii) name the Mortgagee as an additional insured party or loss payee, and (iii) include deductibles consistent with past practice
or consistent with industry practice. 
 (b) If any portion of the Premises is located in an area identified as a special flood
hazard area by the Federal Emergency Management Agency or other applicable agency, Mortgagor shall maintain or cause to be maintained, flood insurance in an amount not less than the maximum limit of coverage available under the National Flood
Insurance Act of 1968, as amended. 
 (c) Mortgagor promptly shall comply with and conform in all material respects to
(i) all provisions of each such insurance policy, and (ii) all requirements of the insurers applicable to Mortgagor or to any of the Mortgaged Property or to the use, manner of use, occupancy, possession, operation, maintenance, alteration
or repair of any of the Mortgaged Property. Mortgagor shall not use or permit the use of the Mortgaged Property in any manner which would permit any insurer to cancel any insurance policy or void coverage required to be maintained by this Mortgage.

 6 
  

 (d) If Mortgagor is in default of its obligations to insure or deliver any such prepaid
policy or policies, then Mortgagee, at its option upon 5 days’ notice to Mortgagor, may effect such insurance from year to year at rates substantially similar to the rate at which Mortgagor had insured the Premises, and pay the premium or
premiums therefore, and Mortgagor shall pay to Mortgagee on demand such premium or premiums so paid by Mortgagee with interest from the time of payment at the Default Rate. 
 (e) If the Mortgaged Property, or any part thereof, shall be destroyed or damaged and the reasonably estimated cost thereof would exceed
$500,000, Mortgagor shall give prompt notice thereof to Mortgagee. All insurance proceeds paid or payable in connection with any damage or casualty to the Real Estate shall be deemed proceeds from a Recovery Event and applied in the manner specified
in the Indenture. 
 (f) In the event of foreclosure of this Mortgage or other transfer of title to the Mortgaged Property, all
right, title and interest of Mortgagor in and to any insurance policies then in force shall pass to the purchaser or grantee. 
 7. Restrictions on Liens and Encumbrances. Except for the lien of this Mortgage and the Permitted Exceptions, Mortgagor shall not further mortgage, nor otherwise encumber the Mortgaged Property nor create or suffer to exist any lien,
charge or encumbrance on the Mortgaged Property, or any part thereof, whether superior or subordinate to the lien of this Mortgage and whether recourse or non-recourse. 
 8. Due on Sale and Other Transfer Restrictions. Except as expressly permitted under Section [3.5] of the Indenture, Mortgagor shall not sell, transfer, convey or assign all or any portion of, or
any interest in, the Mortgaged Property. 
 9. Condemnation/Eminent Domain 
 (a) Destruction; Insurance Proceeds. If there shall occur any damage to, or loss or destruction of, the Improvements, Equipment, or
any part of any thereof (each, a “Destruction”), Mortgagor shall promptly send to Mortgagee a notice setting forth the nature and extent of such Destruction. The proceeds of any insurance payable in respect of such Destruction are
hereby assigned and shall be paid to Mortgagee and deposited in the First-Priority Collateral Account. All such proceeds, together with any interest earned thereon, less the amount of any expenses incurred in litigating, arbitrating, compromising or
settling any claim arising out of such Destruction (the “Net Insurance Proceeds”), shall be applied in accordance with the provisions of subsection (c). 
 (b) Condemnation; Assignment of Award. If there shall occur any taking of the Mortgaged Property or any part thereof, in or by condemnation or other eminent domain proceedings pursuant to any law,
general or special, or by reason of the temporary requisition of the use or occupancy of the Mortgaged Property or any part thereof, by any Governmental Authority, civil or military (each, a “Taking”), Mortgagor shall pay and assign
any proceeds, award or payment in respect of any Taking to Mortgagee to be deposited in the First-Priority Collateral Account. Mortgagor shall take all steps necessary to notify the condemning authority of such assignment. Such proceeds, award or
payment, together with any interest earned thereon, less the amount of any expenses incurred in litigating, arbitrating, compromising or settling any

 7 
  

 
claim arising out of such Taking (the “Net Award”), shall be applied in accordance with the provisions of subsection (c). 
 (c) Restoration. In the event there shall be a Net Award or Net Insurance Proceeds, such Net Award or Net Insurance Proceeds shall
constitute Net Available Cash and shall be invested in Additional Assets (which may include performance of a restoration (each, a “Restoration”) of the Premises and Equipment) in accordance with the provisions of Section [3.5] of
the Indenture. In the event Mortgagor elects to perform any Restoration contemplated by this subsection (c), Mortgagee shall release such Net Award or Net Insurance Proceeds to Mortgagor as soon as practicable following receipt of any required
documentation contemplated by Section [3.5] of the Indenture, but in no event more than 30 days following such receipt. If Mortgagor has elected to perform a Restoration, Mortgagor shall, within 360 days following the date of its receipt of any
proceeds in respect of a Destruction or Taking, as the case may be, complete such Restoration of that portion or portions of the Premises and Equipment subject to such Destruction or affected by such Taking so that, upon the completion of the
Restoration, the Premises and Equipment will be in the same condition and shall be of at least equal value and utility for its intended purposes as the Premises and Equipment were immediately prior to such Destruction or Taking. Mortgagor shall so
complete such Restoration with its own funds to the extent that the amount of any Net Award or Net Insurance Proceeds is insufficient for such purpose. Any Net Available Cash not applied to a Restoration or invested in Additional Assets shall
constitute Excess Collateral Proceeds pursuant to the Indenture and applied in accordance with the provisions thereof. 
 10.
Leases. Except as expressly permitted under the Indenture, Mortgagor shall not (a) execute an assignment or pledge of any Lease relating to all or any portion of the Mortgaged Property other than in favor of Mortgagee, or
(b) execute or permit to exist any Lease of any of the Mortgaged Property. 
 11. Further Assurances. To further
assure Mortgagee’s rights under this Mortgage, Mortgagor agrees promptly upon demand of Mortgagee to do any act or execute any additional documents (including, but not limited to, security agreements on any personality included or to be
included in the Mortgaged Property and a separate assignment of each Lease in recordable form) as may be reasonably required to confirm the lien of this Mortgage and all other rights or benefits conferred on Mortgagee by this Mortgage. 

12. Mortgagee’s Right to Perform. If Mortgagor fails to perform any of the covenants or agreements of Mortgagor, within the
applicable grace period, if any, provided for in the Indenture, Mortgagee, without waiving or releasing Mortgagor from any obligation or default under this Mortgage, may, at any time upon 5 days’ notice to Mortgagor (but shall be under no
obligation to), pay or perform the same, and the amount or cost thereof, with interest at Default Rate, shall immediately be due from Mortgagor to Mortgagee and the same shall be secured by this Mortgage and shall be a lien on the Mortgaged Property
prior to any right, title to, interest in, or claim upon the Mortgaged Property attaching subsequent to the lien of this Mortgage. No payment or advance of money by Mortgagee under this Section shall be deemed or construed to cure Mortgagor’s
default or waive any right or remedy of Mortgagee. 
 13. Remedies. (a) Upon the occurrence and during the
continuance of any Event of Default, in addition to the rights and remedies available under the Indenture and the Collateral

 8 
  

 
Documents and at law or equity, Mortgagee may, subject to the terms of the Intercreditor Agreement, immediately take such action, without notice or demand, as it deems advisable to protect and
enforce its rights against Mortgagor and in and to the Mortgaged Property, including, but not limited to, the following actions, each of which may be pursued concurrently or otherwise, at such time and in such manner as Mortgagee may determine, in
its sole discretion, without impairing or otherwise affecting the other rights and remedies of Mortgagee: 
 (i)
Mortgagee may, to the extent permitted by applicable law, (A) institute and maintain an action of mortgage foreclosure against all or any part of the Mortgaged Property, (B) sell all or part of the Mortgaged Property (Mortgagor expressly
granting to Mortgagee the power of sale), or (C) take such other action at law or in equity for the enforcement of this Mortgage, the Indenture, the Registration Rights Agreement, the Security Agreement or any of the Notes as the law may allow.
Mortgagee may proceed in any such action to final judgment and execution thereon for all sums due hereunder, together with interest thereon at the Default Rate and all costs of suit, including, without limitation, reasonable attorneys’ fees and
disbursements. Interest at the Default Rate shall be due on any judgment obtained by Mortgagee from the date of judgment until actual payment is made of the full amount of the judgment; and 
 (ii) Mortgagee may personally, or by its agents, attorneys and employees and without regard to the adequacy or inadequacy of
the Mortgaged Property or any other collateral as security for the Obligations enter into and upon the Mortgaged Property and each and every part thereof and exclude Mortgagor and its agents and employees therefrom without liability for trespass,
damage or otherwise (Mortgagor hereby agreeing to surrender possession of the Mortgaged Property to Mortgagee upon demand at any such time) and use, operate, manage, maintain and control the Mortgaged Property and every part thereof. Following such
entry and taking of possession, Mortgagee shall be entitled, without limitation, (x) to lease all or any part or parts of the Mortgaged Property for such periods of time and upon such conditions as Mortgagee may, in its discretion, deem proper,
(y) to enforce, cancel or modify any Lease and (z) generally to execute, do and perform any other act, deed, matter or thing concerning the Mortgaged Property as Mortgagee shall deem appropriate as fully as Mortgagor might do. 

(b) In case of a foreclosure sale, the Real Estate may be sold, at Mortgagee’s election, in one parcel or in more than one parcel
and Mortgagee is specifically empowered (without being required to do so, and in its sole and absolute discretion) to cause successive sales of portions of the Mortgaged Property to be held. 
 (c) In the event of any breach of any of the covenants, agreements, terms or conditions contained in this Mortgage, Mortgagee shall be
entitled to enjoin such breach and obtain specific performance of any covenant, agreement, term or condition and Mortgagee shall have the right to invoke any equitable right or remedy as though other remedies were not provided for in this Mortgage.

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 (d) It is agreed that if an Event of Default shall occur and be continuing, any and all
Proceeds of the Mortgaged Property received by the Mortgagee hereunder shall, subject to the terms of the Intercreditor Agreement, be applied by the Mortgagee in accordance with the provisions of the Indenture. 
 14. Right of Mortgagee to Credit Sale. Upon the occurrence of any sale made under this Mortgage, whether made under the power of sale
or by virtue of judicial proceedings or of a judgment or decree of foreclosure and sale, Mortgagee may, subject to the terms of the Intercreditor Agreement, bid for and acquire the Mortgaged Property or any part thereof. In lieu of paying cash
therefor, Mortgagee may make settlement for the purchase price by crediting upon the Obligations or other sums secured by this Mortgage, the net sales price after deducting therefrom the expenses of sale and the cost of the action and any other sums
which Mortgagee is authorized to deduct under this Mortgage. In such event, this Mortgage, the Indenture, the Registration Rights Agreement, the Security Agreement, the Intercreditor Agreement, the Notes and documents evidencing expenditures secured
hereby may be presented to the person or persons conducting the sale in order that the amount so used or applied may be credited upon the Obligations as having been paid. 
 15. Appointment of Receiver. If an Event of Default shall have occurred and be continuing, Mortgagee as a matter of right and without notice to Mortgagor, unless otherwise required by applicable
law, and without regard to the adequacy or inadequacy of the Mortgaged Property or any other collateral or the interest of Mortgagor therein as security for the Obligations, shall, subject to the terms of the Intercreditor Agreement, have the right
to apply to any court having jurisdiction to appoint a receiver or receivers or other manager of the Mortgaged Property, without requiring the posting of a surety bond, and without reference to the adequacy or inadequacy of the value of the
Mortgaged Property or the solvency or insolvency of Mortgagor or any other party obligated for payment of all or any part of the Obligations, and whether or not waste has occurred with respect to the Mortgaged Property, and Mortgagor hereby
irrevocably consents to such appointment and waives notice of any application therefor (except as may be required by law). Any such receiver or receivers or manager shall have all the usual powers and duties of receivers in like or similar cases and
all the powers and duties of Mortgagee in case of entry as provided in this Mortgage, including, without limitation and to the extent permitted by law, the right to enter into leases of all or any part of the Mortgaged Property, and shall continue
as such and exercise all such powers until the date of confirmation of sale of the Mortgaged Property unless such receivership is sooner terminated. 
 16. Extension, Release, etc. (a) Without affecting the lien or charge of this Mortgage upon any portion of the Mortgaged Property not then or theretofore released as security for the full
amount of the Obligations, Mortgagee may, from time to time and without notice, agree to (i) release any person liable for the indebtedness borrowed or guaranteed under the Obligations, (ii) extend the maturity or alter any of the terms of
the indebtedness borrowed or guaranteed under the Notes or any other guaranty thereof, (iii) grant other indulgences, (iv) release or reconvey, or cause to be released or reconveyed at any time at Mortgagee’s option any parcel,
portion or all of the Mortgaged Property, (v) take or release any other or additional security for any obligation herein mentioned, or (vi) make compositions or other arrangements with debtors in relation thereto. 

 10 
  

 (b) No recovery of any judgment by Mortgagee and no levy of an execution under any judgment
upon the Mortgaged Property or upon any other property of Mortgagor shall affect the lien of this Mortgage or any liens, rights, powers or remedies of Mortgagee hereunder, and such liens, rights, powers and remedies shall continue unimpaired.

 (c) If Mortgagee shall have the right to foreclose this Mortgage or to direct a power of sale, Mortgagor authorizes Mortgagee
at its option to foreclose the lien of this Mortgage (or direct the sale of the Mortgaged Property, as the case may be) subject to the rights of any tenants of the Mortgaged Property. The failure to make any such tenants parties defendant to any
such foreclosure proceeding and to foreclose their rights, or to provide notice to such tenants as required in any statutory procedure governing a sale of the Mortgaged Property, or to terminate such tenant’s rights in such sale will not be
asserted by Mortgagor as a defense to any proceeding instituted by Mortgagee to collect the Obligations or to foreclose the lien of this Mortgage. 
 (d) Unless expressly provided otherwise, in the event that ownership of this Mortgage and title to the Mortgaged Property or any estate therein shall become vested in the same person or entity, this
Mortgage shall not merge in such title but shall continue as a valid lien on the Mortgaged Property for the amount secured hereby. 
 17. Security Agreement under Uniform Commercial Code. (a) It is the intention of the parties hereto that this Mortgage shall constitute a “security agreement” within the meaning of the Uniform Commercial Code (the
“Code”) of the State in which the Mortgaged Property is located. If an Event of Default shall occur and be continuing under this Mortgage, then in addition to having any other right or remedy available at law or in equity, Mortgagee
shall have the option of either (i) proceeding under the Code and exercising such rights and remedies as may be provided to a secured party by the Code with respect to all or any portion of the Mortgaged Property which is personal property
(including, without limitation, taking possession of and selling such property) or (ii) treating such property as real property and proceeding with respect to both the real and personal property constituting the Mortgaged Property in accordance
with Mortgagee’s rights, powers and remedies with respect to the real property (in which event the default provisions of the Code shall not apply). If Mortgagee shall elect to proceed under the Code, then 10 days’ notice of sale of the
personal property shall be deemed reasonable notice and the reasonable expenses of retaking, holding, preparing for sale, selling and the like incurred by Mortgagee shall include, but not be limited to, attorneys’ fees and legal expenses. At
Mortgagee’s request, Mortgagor shall assemble the personal property and make it available to Mortgagee at a place designated by Mortgagee which is reasonably convenient to both parties. 
 (b) Mortgagor and Mortgagee agree, to the extent permitted by law, that: (i) all of the goods described within the definition of the
word “Equipment” are or are to become fixtures on the Real Estate; (ii) this Mortgage upon recording or registration in the real estate records of the proper office shall constitute a financing statement filed as a
“fixture filing” within the meaning of Sections 9-334 and 9-502 of the Code; (iii) Mortgagor is the record owner of the Owned Land; (iv) the addresses of Mortgagor and Mortgagee are as set forth on the first page of this
Mortgage; and (v) Mortgagor’s organizational identification number is [    ]. 
 18. Assignment
of Rents. (a) Mortgagor hereby assigns to Mortgagee the Rents as further security for the payment of and performance of the Obligations, and Mortgagor grants to

 11 
  

 
Mortgagee the right to enter the Mortgaged Property for the purpose of collecting the same and to let the Mortgaged Property or any part thereof, and to apply the Rents on account of the
Obligations. The foregoing assignment and grant is present and absolute and shall continue in effect until the Obligations are fully paid and performed, but Mortgagee hereby waives the right to enter the Mortgaged Property for the purpose of
collecting the Rents and Mortgagor shall be entitled to collect, receive, use and retain the Rents until the occurrence of an Event of Default under this Mortgage; such right of Mortgagor to collect, receive, use and retain the Rents may be revoked
by Mortgagee upon the occurrence and during the continuance of any Event of Default under this Mortgage by giving not less than five days’ written notice of such revocation to Mortgagor; in the event such notice is given, Mortgagor shall pay
over to Mortgagee, or to any receiver appointed to collect the Rents, any lease security deposits, and shall pay monthly in advance to Mortgagee, or to any such receiver, the fair and reasonable rental value as determined by Mortgagee for the use
and occupancy of such part of the Mortgaged Property as may be in the possession of Mortgagor or any affiliate of Mortgagor, and upon default in any such payment Mortgagor and any such affiliate will vacate and surrender the possession of the
Mortgaged Property to Mortgagee or to such receiver, and in default thereof may be evicted by summary proceedings or otherwise. Mortgagor shall not accept prepayments of installments of Rent to become due for a period of more than one month in
advance (except for security deposits and estimated payments of percentage rent, if any). 
 (b) Mortgagor has not affirmatively
done any act which would prevent Mortgagee from, or limit Mortgagee in, acting under any of the provisions of the foregoing assignment. 
 (c) No action has been brought or, so far as is known to Mortgagor, is threatened, which would interfere in any way with the right of Mortgagor to execute the foregoing assignment and perform all of
Mortgagor’s obligations contained in this Section and in the Leases. 
 19. Additional Rights. The holder of any
subordinate lien or subordinate deed of trust on the Mortgaged Property shall have no right to terminate any Lease whether or not such Lease is subordinate to this Mortgage nor shall Mortgagor consent to any holder of any subordinate lien or
subordinate deed of trust joining any tenant under any Lease in any action to foreclose the lien or modify, interfere with, disturb or terminate the rights of any tenant under any Lease. By recordation of this Mortgage all subordinate lienholders
and the mortgagees and beneficiaries under subordinate mortgages are subject to and notified of this provision, and any action taken by any such lienholder or beneficiary contrary to this provision shall be null and void. Upon the occurrence and
during the continuance of any Event of Default, Mortgagee may, in its sole discretion and without regard to the adequacy of its security under this Mortgage, apply all or any part of any amounts on deposit with Mortgagee under this Mortgage against
all or any part of the Obligations. Any such application shall not be construed to cure or waive any Default or Event of Default or invalidate any act taken by Mortgagee on account of such Default or Event of Default. 
 20. Notices. All notices, requests, demands and other communications hereunder shall be given in accordance with the provisions of
Section [12.2] of the Indenture to Mortgagor and to Mortgagee as specified therein. 

 12 
  

 21. No Oral Modification. This Mortgage may not be amended, supplemented or otherwise
modified except in accordance with the provisions of Article [IX] of the Indenture. Any agreement made by Mortgagor and Mortgagee after the date of this Mortgage relating to this Mortgage shall be superior to the rights of the holder of any
intervening or subordinate lien or encumbrance. 
 22. Partial Invalidity. In the event any one or more of the provisions
contained in this Mortgage shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, but each shall be construed as if such
invalid, illegal or unenforceable provision had never been included. Notwithstanding to the contrary anything contained in this Mortgage or in any provisions of the Indenture, the Registration Rights Agreement, the Security Agreement or Notes, the
obligations of Mortgagor and of any other obligor under any Notes shall be subject to the limitation that Mortgagee shall not charge, take or receive, nor shall Mortgagor or any other obligor be obligated to pay to Mortgagee, any amounts
constituting interest in excess of the maximum rate permitted by law to be charged by Mortgagee. 
 23. Mortgagor’s
Waiver of Rights. (a) Mortgagor hereby voluntarily and knowingly releases and waives any and all rights to retain possession of the Mortgaged Property after the occurrence of an Event of Default hereunder and any and all rights of
redemption from sale under any order or decree of foreclosure (whether full or partial), pursuant to rights, if any, therein granted, as allowed under any applicable law, on its own behalf, on behalf of all persons claiming or having an interest
(direct or indirectly) by, through or under each constituent of Mortgagor and on behalf of each and every person acquiring any interest in the Mortgaged Property subsequent to the date hereof, it being the intent hereof that any and all such rights
or redemption of each constituent of Mortgagor and all such other persons are and shall be deemed to be hereby waived to the fullest extent permitted by applicable law or replacement statute. Each constituent of Mortgagor shall not invoke or utilize
any such law or laws or otherwise hinder, delay, or impede the execution of any right, power, or remedy herein or otherwise granted or delegated to Mortgagee, but shall permit the execution of every such right, power, and remedy as though no such
law or laws had been made or enacted. 
 (b) To the fullest extent permitted by law, Mortgagor waives the benefit of all laws
now existing or that may subsequently be enacted providing for (i) any appraisement before sale of any portion of the Mortgaged Property, (ii) any extension of the time for the enforcement of the collection of the Obligations or the
creation or extension of a period of redemption from any sale made in collecting such debt and (iii) exemption of the Mortgaged Property from attachment, levy or sale under execution or exemption from civil process. To the full extent Mortgagor
may do so, Mortgagor agrees that Mortgagor will not at any time insist upon, plead, claim or take the benefit or advantage of any law now or hereafter in force providing for any appraisement, valuation, stay, exemption, extension or redemption, or
requiring foreclosure of this Mortgage before exercising any other remedy granted hereunder and Mortgagor, for Mortgagor and its successors and assigns, and for any and all persons ever claiming any interest in the Mortgaged Property, to the extent
permitted by law, hereby waives and releases all rights of redemption, valuation, appraisement, stay of execution, notice of election to mature or declare due the whole of the secured indebtedness and marshalling in the event of exercise by
Mortgagee of the foreclosure rights, power of sale, or other rights hereby created. 

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 24. Remedies Not Exclusive. Mortgagee shall be entitled to enforce payment and
performance of the Obligations and to exercise all rights and powers under this Mortgage or under any of the Indenture, the Registration Rights Agreement, the Security Agreement or Notes or other agreement or any laws now or hereafter in force,
notwithstanding some or all of the Obligations may now or hereafter be otherwise secured, whether by deed of trust, mortgage, security agreement, pledge, lien, assignment or otherwise. Neither the acceptance of this Mortgage nor its enforcement,
shall prejudice or in any manner affect Mortgagee’s rights to realize upon or enforce any other security now or hereafter held by Mortgagee, it being agreed that Mortgagee shall be entitled to enforce this Mortgage and any other security now or
hereafter held by Mortgagee in such order and manner as Mortgagee may determine in its absolute discretion. No remedy herein conferred upon or reserved to Mortgagee is intended to be exclusive of any other remedy herein or by law provided or
permitted, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. Every power or remedy given by any of the Collateral Documents to Mortgagee or to
which either may otherwise be entitled, may be exercised, concurrently or independently, from time to time and as often as may be deemed expedient by Mortgagee, as the case may be. In no event shall Mortgagee, in the exercise of the remedies
provided in this Mortgage (including, without limitation, in connection with the assignment of Rents to Mortgagee, or the appointment of a receiver and the entry of such receiver on to all or any part of the Mortgaged Property), be deemed a
“Mortgagee in possession,” and Mortgagee shall not in any way be made liable for any act, either of commission or omission, in connection with the exercise of such remedies. 
 25. Multiple Security. If (a) the Premises shall consist of one or more parcels, whether or not contiguous and whether or not
located in the same county, or (b) in addition to this Mortgage, Mortgagee shall now or hereafter hold or be the beneficiary of one or more additional mortgages, liens, deeds of trust or other security (directly or indirectly) for the
Obligations upon other property in the State in which the Premises are located (whether or not such property is owned by Mortgagor or by others) or (c) both the circumstances described in clauses (a) and (b) shall be true, then to the
fullest extent permitted by law, Mortgagee may, at its election, commence or consolidate in a single foreclosure action all foreclosure proceedings against all such collateral securing the Obligations (including the Mortgaged Property), which action
may be brought or consolidated in the courts of, or sale conducted in, any county in which any of such collateral is located. Mortgagor acknowledges that the right to maintain a consolidated foreclosure action is a specific inducement to Mortgagee
to extend the indebtedness borrowed pursuant to or guaranteed by the Subsidiary Guarantee and the Collateral Documents, and Mortgagor expressly and irrevocably waives any objections to the commencement or consolidation of the foreclosure proceedings
in a single action and any objections to the laying of venue or based on the grounds of forum non conveniens which it may now or hereafter have. Mortgagor further agrees that if Mortgagee shall be prosecuting one or more foreclosure or other
proceedings against a portion of the Mortgaged Property or against any collateral other than the Mortgaged Property, which collateral directly or indirectly secures the Obligations, or if Mortgagee shall have obtained a judgment of foreclosure and
sale or similar judgment against such collateral, then, whether or not such proceedings are being maintained or judgments were obtained in or outside the State in which the Premises are located, Mortgagee may commence or continue any foreclosure
proceedings and exercise its other remedies granted in this Mortgage against all or any part of the Mortgaged Property and Mortgagor waives any objections to the commencement or continuation of a foreclosure of this Mortgage or exercise of any other

 14 
  

 
remedies hereunder based on such other proceedings or judgments, and waives any right to seek to dismiss, stay, remove, transfer or consolidate either any action under this Mortgage or such other
proceedings on such basis. Neither the commencement nor continuation of proceedings to foreclose this Mortgage, nor the exercise of any other rights hereunder nor the recovery of any judgment by Mortgagee in any such proceedings or the occurrence of
any sale in any such proceedings shall prejudice, limit or preclude Mortgagee’s right to commence or continue one or more foreclosure or other proceedings or obtain a judgment against any other collateral (either in or outside the State in
which the Premises are located) which directly or indirectly secures the Obligations, and Mortgagor expressly waives any objections to the commencement of, continuation of, or entry of a judgment in such other sales or proceedings or exercise of any
remedies in such sales or proceedings based upon any action or judgment connected to this Mortgage, and Mortgagor also waives any right to seek to dismiss, stay, remove, transfer or consolidate either such other sales or proceedings or any sale or
action under this Mortgage on such basis. It is expressly understood and agreed that to the fullest extent permitted by law, Mortgagee may, at its election, cause the sale of all collateral which is the subject of a single foreclosure action at
either a single sale or at multiple sales conducted simultaneously and take such other measures as are appropriate in order to effect the agreement of the parties to dispose of and administer all collateral securing the Obligations (directly or
indirectly) in the most economical and least time-consuming manner. 
 26. Successors and Assigns. All covenants of
Mortgagor contained in this Mortgage are imposed solely and exclusively for the benefit of Mortgagee, and its successors and assigns, and no other person or entity shall have standing to require compliance with such covenants or be deemed, under any
circumstances, to be a beneficiary of such covenants, any or all of which may be freely waived in whole or in part by Mortgagee at any time if in the sole discretion of Mortgagee such a waiver is deemed advisable. All such covenants of Mortgagor
shall run with the land and bind Mortgagor, the successors and assigns of Mortgagor (and each of them) and all subsequent owners, encumbrances and tenants of the Mortgaged Property, and shall inure to the benefit of Mortgagee and its successors and
assigns. The word “Mortgagor” shall be construed as if it read “Mortgagors” whenever the sense of this Mortgage so requires and if there shall be more than one Mortgagor, the obligations of the Mortgagors shall be joint and
several. 
 27. No Waivers, etc. Any failure by Mortgagee to insist upon the strict performance by Mortgagor of any of
the terms and provisions of this Mortgage shall not be deemed to be a waiver of any of the terms and provisions hereof, and Mortgagee, notwithstanding any such failure, shall have the right thereafter to insist upon the strict performance by
Mortgagor of any and all of the terms and provisions of this Mortgage to be performed by Mortgagor. Mortgagee may release, regardless of consideration and without the necessity for any notice to or consent by the holder of any subordinate lien on
the Mortgaged Property, any part of the security held for the obligations secured by this Mortgage without, as to the remainder of the security, in any way impairing or affecting the lien of this Mortgage or the priority of such lien over any
subordinate lien or deed of trust. 
 28. Governing Law, etc. THE MORTGAGE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS MORTGAGE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

 15 
  

 29. Certain Definitions. Unless the context clearly indicates a contrary intent or
unless otherwise specifically provided herein, words used in this Mortgage shall be used interchangeably in singular or plural form and the word “Mortgagor” shall mean “each Mortgagor or any subsequent owner or owners of the Mortgaged
Property or any part thereof or interest therein,” the word “Mortgagee” shall mean “Mortgagee or any successor agent for the Holders,” the word “person” shall include any individual, corporation, partnership,
limited liability company, trust, unincorporated association, government, governmental authority, or other entity, and the words “Mortgaged Property” shall include any portion of the Mortgaged Property or interest therein. Whenever the
context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa. The captions in this Mortgage are for convenience
or reference only and in no way limit or amplify the provisions hereof. 
 30. Lien Law. (a) In compliance with
Section 13 of the New York Lien Law, Mortgagor agrees that it will receive the advances secured hereby and will hold the right to receive such advances as a trust fund to be applied first to the purpose of paying the cost of
“improvements” (as such term is defined in the New York Lien Law), and Mortgagor will apply the same first to the payment of the cost of such “improvements” before using any part of the same for any other purpose. 
 31. Maximum Principal Indebtedness Secured. 
 NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, THE MAXIMUM AMOUNT OF PRINCIPAL INDEBTEDNESS SECURED BY THIS MORTGAGE AT THE TIME OF EXECUTION OR WHICH UNDER ANY CONTINGENCY MAY HEREAFTER
BECOME SECURED HEREBY AT ANY TIME IS [    ] ($[    ],000,000.00); PROVIDED THAT SUCH LIMITATION SHALL NOT LIMIT THE SECURITY OF THIS MORTGAGE WITH RESPECT TO (I) INTEREST ON THE AFORESAID MAXIMUM AMOUNT
OF PRINCIPAL INDEBTEDNESS AT THE RATES PROVIDED IN THE INDENTURE, (II) AFTER A DEFAULT BY MORTGAGOR TO PAY OR PERFORM SAME, SUMS TO PAY IMPOSITIONS AS PROVIDED FOR HEREIN, (III) AFTER A DEFAULT BY MORTGAGOR TO PAY OR PERFORM SAME, SUMS TO PAY
PREMIUMS ON INSURANCE POLICIES COVERING THE MORTGAGED PROPERTY AS PROVIDED FOR HEREIN, (IV) EXPENSES INCURRED IN UPHOLDING OR ENFORCING THE LIEN OF THIS MORTGAGE, INCLUDING, BUT NOT LIMITED TO, THE EXPENSES OF ANY LITIGATION TO PROSECUTE OR DEFEND
THE RIGHTS AND LIEN CREATED BY THIS MORTGAGE, (V) AFTER DEFAULT BY MORTGAGOR TO PAY OR PERFORM SAME, EXPENSES INCURRED TO PROTECT THE MORTGAGED PROPERTY, (VI) ANY AMOUNT, COSTS OR CHARGE TO WHICH MORTGAGEE BECOMES SUBROGATED, UPON PAYMENT,
WHETHER UNDER RECOGNIZED PRINCIPLES OF LAW OR EQUITY, OR UNDER EXPRESS STATUTORY AUTHORITY AND (VII) ANY OTHER AMOUNT SECURED BY THIS MORTGAGE WHICH IF NOT LIMITED BY SUCH LIMITATION WOULD NOT RENDER THIS MORTGAGE INDEFINITE OR INCREASE THE AMOUNT
OF MORTGAGE RECORDING TAXES, IF ANY, PAYABLE WITH RESPECT TO THIS MORTGAGE. Mortgagor will pay all applicable mortgage recording tax incurred in connection with the recordation of this Mortgage; if, at the time an additional issuance of Notes is
made under the Indenture, the then outstanding principal balance of all Notes is less than the above-stated maximum principal amount secured hereby (such requested

 16 
  

 
issuance, a “Taxable Advance”), Mortgagor shall pay all applicable mortgage recording tax on that portion of the Taxable Advance which equals the difference between such then
outstanding principal balance of all Notes issued prior to the Taxable Advance and the above-stated maximum principal amount secured by this Mortgage. As of the date such Taxable Advance is requested, Mortgagor shall furnish Mortgagee with such
documentation and affidavits, together with an affidavit, signed by an authorized officer, stating that all applicable mortgage recording tax due in connection with such Taxable Advance has been paid. 
 32. Non-Residential Property. This Mortgage does not cover real property principally improved by one or more structures containing in
the aggregate six (6) or less residential dwelling units having their own separate cooking facilities. 
 33. Additional
Matters Relating to Property Located in the State of New York. 
 (a) Mortgagee shall have all of the rights against lessees
of the Mortgaged Property as set forth in Section 291-f of the Real Property Law of New York. 
 (b) The provisions of
subsection 4 of Section 254 of the New York Real Property Law covering the insurance of buildings against loss by fire and the application of Net Insurance Proceeds shall not apply to this Mortgage. In the event of any conflict, inconsistency
or ambiguity between the provisions of Section 9 hereof and the provisions of subsection 4 of Section 254 of the New York Real Property Law covering the insurance of buildings against loss by fire and the application of Net Insurance
Proceeds, the provisions of Section 9 shall control. The clauses and covenants contained in this Mortgage that are construed by Section 254 of the New York Real Property Law shall be construed as provided in those sections (except as
provided in Section 32(c) hereof and Section 9 hereof). The additional clauses and covenants contained in this Mortgage shall afford rights supplemental to and not exclusive of the rights conferred by the clauses and covenants construed by
Section 254 and shall not impair, modify, alter or defeat such rights (except as provided in Section 32(c) hereof and Section 9 hereof), notwithstanding that such additional clauses and covenants may relate to the same subject matter
or provide for different or additional rights in the same or similar contingencies as the clauses and covenants construed by Section 254. The right of Mortgagee arising under the clauses and covenants contained in this Mortgage shall be
separate, distinct and cumulative and none of them shall be in exclusion of the others. No act of Mortgagee shall be construed as an election to proceed under any one provision herein to the exclusion of any other provision, anything herein or
otherwise to the contrary notwithstanding. In the event of any inconsistencies between the provisions of Section 254 and the provisions of this Mortgage, the provisions of this Mortgage shall prevail. 
 34. Last Dollars Secured; Priority. This Mortgage secures only a portion of the indebtedness owing or which may become owing by
Mortgagor to the Secured Parties. The parties agree that any payments or repayments of such indebtedness shall be and be deemed to be applied first to the portion of the indebtedness that is not secured hereby, it being the parties’ intent that
the portion of the indebtedness last remaining unpaid shall be secured hereby. If at any time this Mortgage shall secure less than all of the principal amount of the Obligations, it is expressly agreed that any repayments of the principal amount of
the Obligations shall not reduce the amount of the lien of this Mortgage until the lien amount shall equal the principal amount of the Obligations outstanding. 

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 35. Release 
 (a) The Liens on the Mortgaged Property shall be released at the times, and to the extent provided under Section [11.6] of the Indenture. At
the request and sole expense of the Mortgagor following any such termination, the Mortgagee shall deliver to such Mortgagor such documents as such Mortgagor shall reasonably request to evidence such termination. 
 (b) By acceptance of the benefits hereof, the Mortgagor acknowledges and consents to the provisions of this Section and agrees that the
Mortgagee shall incur no liability whatsoever to the Mortgagor for the release effected by the Mortgagee in accordance with this Section. 

 This Mortgage has been duly executed by Mortgagor as of the date first above written.

  

			
	 CELLU TISSUE CORPORATION –
 NATURAL DAM

		
	By:	 	  

		 	Name:
		 	Title:

					
	STATE OF                     	  	)	  	
		  	) ss:	  	
	COUNTY OF                     	  	)	  	

 On the      day of May in the year 2009 before me, the undersigned, a Notary
Public in and for said State, personally appeared,                             , personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed in the within instrument and acknowledged to me that he/she executed the same in his/her capacity, and that by his/her signature(s) on the instrument,
the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 
  

									
	[SEAL]	 		 	  
	 		 	
		 		 	Notary Public	 		 	
			
		 	My commission expires:
                                         
       	 	

 Schedule A 
 Legal Description 
 [PARCEL I 
 ALL THAT PARCEL OF LAND located in the Hamlet of Natural Dam, Town of Gouverneur, County of St. Lawrence and State of New York, bounded and described as
follows: 
 BEGINNING at a point in the centerline of Main Street at its intersection with the centerline of Bolton Street, and at the northeast
corner of a parcel of land conveyed from Clinton H. Fisk to Rushmore Paper Mills Inc. by deed dated November 8, 1965, and recorded in the St Lawrence County Clerk’s Office in Liber 763 of Deeds at page 533, and runs thence from the point
of beginning, South 03 degrees 06 minutes East along the centerline of said Main Street, 91.70 feet to its intersection with the north line of a parcel of land conveyed from Edmond E. Simmons and Vera E. Simmons to Rushmore Paper Mills Inc. by deed
dated November 6, 1967, and recorded In Liber 796 of Deeds at page 120; 
 THENCE North 81 degrees 51 minutes East, along the north line
thereof, 367.91 feet to the northeast corner thereof; 
 THENCE South 02 degrees 14 minutes East, along the east line thereof, 173.0 feet to the
southeast comer of said parcel; 
 THENCE South 88 degrees 15 minutes West, along the south line of said parcel, 363.96 feet to a point in the
centerline of the aforementioned Main Street; 
 THENCE South 03 degrees 06 minutes East, along said centerline, 132.03 feet to its intersection
with the north line of the first parcel in a deed from Isabell V. White to Rushmore Paper Mills Inc. dated May 18, 1942, and recorded in Liber 337 of Deeds at page 352; 
 THENCE North 88 degrees 15 minutes East, along said north line, 361.96 feet to an iron pipe at the northeast corner thereof; 
 THENCE South 02 degrees 14 minutes East, along the east line thereof, to and along the east line of the second parcel in said deed (Liber 337, Page 352), to and along the east line of a parcel of land
conveyed from Ernest H. Griebach and Rena C. Griebach to Rushmore Paper Mills Inc. dated August 25, 1967, and recorded in Liber 792 of Deeds at page 498, 263.80 feet to the southeast corner of said last mentioned parcel; 
 THENCE South 88 degrees 15 minutes West, along the south line thereof; 358.01 feet to a point in the centerline of the aforementioned Main Street;

 THENCE South 03 degrees 06 minutes East, along said centerline, 27.67 feet to an angle; 
 THENCE South 03 degrees 57 minutes East, continuing along said centerline, 399.79 feet to its intersection with the north line of the first parcel in deed
from Samuel Child, et al to Rushmore Paper Mills Inc. dated June 1, 1935 and recorded In Liber 292 of Deeds at page 302; 
 THENCE North 87
degrees 56 minutes East, along the north line thereof, 270.60 feet to a corner; 
 THENCE South 09 degrees 11 minutes West, along the east line
of said first parcel, 162.36 feet to a point in the north line of the fourth parcel in the aforementioned deed from Child to Rushmore Paper Mills Inc. (Liber 292 Page 302); 
 THENCE North 87 degrees 56 minutes East, along said north line, 50.75 feet to the northeast corner thereof; 

 THENCE South 07 degrees 41 minutes West, along the east line of said fourth parcel, 174.66 feet to a point
in the centerline of Main Street; 
 THENCE South 72 degrees 23 minutes East, along said centerline, 62.17 feet to a point; 
 THENCE South 16 degrees 31 minutes West, 103.37 feet to 8 corner; 
 THENCE South 60 degrees 41 minutes East, 95.70 feet to a corner; 
 THENCE North 17 degrees 34
minutes East, 122.76 feet to a point in the centerline of the aforementioned Main Street; 
 THENCE South 72 degrees 23 minutes East, along said
centerline, 425.73 feet to its intersection with the west line of a parcel of lands conveyed from Harriet Easton Thomason to Rushmore Paper Mills Inc. dated February 16, 1946 and recorded In Liber 368 of Deeds at page 20; 
 THENCE South 72 degrees 23 minutes E, along said centerline to its intersection with the east line of said lands conveyed from Thomason to Rushmore Paper
Mills, Inc. (Liber 368 of Deeds at Page 20); 
 THENCE South 72 degrees 23 minutes East, along said centerline, 143.27 feet to its intersection
with the east line of the first parcel in the aforementioned lands conveyed from Child to Rushmpre Paper Mills Inc. (Liber 292, Page 302); 
 THENCE along the east and northeast bounds of said first parcel, South 17 degrees 07 minutes West, 348.16 feet; 
 THENCE South 72
degrees 53 minutes East, 206.58 feet to a point in the centerline of Dean Street; 
 THENCE along said, centerline South 17 degrees 07 minutes
West, 214.50 feet to a corner; 
 Schedule A cont’d 
 THENCE South 72 degrees 53 minutes East, 205.92 feet to a corner; 
 THENCE South 04 degrees 35
minutes West, 145.29 feet to a corner; 
 THENCE North 75 degrees 14 minutes East, 210.60 feet to a corner; 
 THENCE North 39 degrees 00 minutes East, 257.93 feet to a corner; 
 THENCE South 55 degrees 40 minutes East, 199.18 feet to a tree on the north bank of the Oswegatchie River; 
 THENCE CONTINUING on the same bearing (South 55 degrees 40 minutes East), 80.0 feet to a point in said Oswegatchie River; 
 The land referred to in this Commitment is described as follows: 
 THENCE South 24 degrees 51
minutes West, 188.25 feet to a corner; 
 THENCE South 27 degrees 21 minutes East, 132.00 feet to a tree on the south bank of said Oswegatchie
River; 
 THENCE CONTINUING on the same bearing (South 27 degrees 21 minutes East), 227.04 feet to a fence post at a corner; 
 THENCE South 74 degrees 08 minutes West, 452.36 feet to a fence post at a corner; 

 Schedule A cont’d 
  

 THENCE South 25 degrees 44 minutes East, 573.81 feet to a point in the centerline of Johnstown Road,
so-called; 
 THENCE South 79 degrees 58 minutes West, along said centerline, 188.93 feet to a point; 
 THENCE South 28 degrees 01 minutes East, 1,626.78 feet to an iron pipe; 
 THENCE South 42 degrees 32 minutes East, 1,464.54 feet to an iron pipe; 
 THENCE South 27 degrees
32 minutes East, 911.24 feet to an iron pipe in the northwest margin of the Penn Central right of way; 
 THENCE South 48 degrees 18 minutes
West along said margin, 343.20 feet to an iron pipe; 
 THENCE North 13 degrees 13 minutes East, 301.83 feet to an iron pipe; 
 THENCE North 02 degrees 32 minutes West, 165.66 feet to an iron pipe; 
 THENCE North 27 degrees 32 minutes West, 610.50 feet to an iron pipe; 
 THENCE North 42 degrees 32
minutes West, 1,464.54 feet to an iron pipe; 
 THENCE North 28 degrees 01 minutes West, 47.54 feet to an iron pipe; 
 THENCE North 57 degrees 21 minutes East, 33.63 feet to an iron pipe; 
 THENCE North 27 degrees 56 minutes West, 1591.55 feet to a point in the centerline of the aforementioned Johnstown Road; 
 THENCE South 79 degrees 58 minutes West, along said centerline, 49.75 feet to a corner; 
 THENCE
North 15 degrees 30 minutes West, 182.57 feet to an iron pipe; 
 THENCE South 76 degrees 55 minutes West, 149.04 feet to a corner; 

THENCE North 19 degrees 28 minutes West, 511.10 feet to a fence post on the south bank of the Oswegatchie River; 
 THENCE CONTINUING on the same bearing (North 19 degrees 28 minutes West), 40.0 feet to a point in the centerline of said Oswegatchie River; 
 THENCE southwesterly and northwesterly along said centerline as it winds and turns, to a point that is North 51 degrees 00 minutes West, 1,981.20 feet from
the last described point; 
 THENCE South 28 degrees 53 minutes West, 132.00 feet to a point and corner; 
 THENCE North 32 degrees 16 minutes West, 264.00 feet to a tree at an angle; 
 THENCE North 37 degrees 12 minutes West, 534.60 feet to a tree at a fence corner; 
 THENCE North
67 degrees 59 minutes West, 349.8 feet to a point in the shoreline of the Oswegatchie River; 
 THENCE North 20 degrees 56 minutes West,
crossing said Oswegatchie River, 690.0 feet to a point; 

 Schedule A cont’d 
  

 THENCE North 82 degrees 04 minutes East; 576.85 feet to a point; 
 THENCE North 11 degrees 28 minutes East, along the west line of the first mentioned parcel conveyed from Fisk Rushmore Paper Mills, Inc. (Liber 763, page
533), 386.95 feet to a point in the centerline of Bolton Street; 
 THENCE South 78 degrees 00 minutes East, along said centerline, 767.56 feet
to the place of beginning. 
 EXCEPTING: 
 A 0.6 acre parcel excepted in the deed from Gladys Borbridge to Rushmore Paper Mills. Inc. dated December 12, 1946 and recorded in Liber 389 of Deeds at page 30, a parcel of land conveyed from Glade Bean to Madeline L Link by deed
dated May 15, 1941, and recorded in Liber 329 of Deeds at Page 253, and a parcel of land conveyed to Charles Gates by deed dated April 30, 1943 and recorded in Liber 344 of Deeds’ at Page 294. 
 ALL THAT TRACT OR PARCEL OF LAND, located in the Town of Gouverneur, County of St. Lawrence and State of New York, bounded and described as follows:

 Beginning at a point in the centerline of Dean Street at the southeast corner of lands conveyed by Herbert E. Stowell and Madelyn V. Stowell
to Lester N. Simmons and Bonnie M. Simmons by deed dated June 24, 1974, and recorded in the St. Lawrence County Clerk’s Office in Liber 894 of Deeds at Page 178, said point being S 72 degrees 36 minutes 20 seconds E, 24.75 feet from an
iron pipe set, and runs thence from the point of beginning along the centerline of Dean Street and the southwesterly extension thereof, S 17 degrees 23 minutes 40 seconds W, 211.20 feet to an iron pipe set at the southwest corner of lands conveyed
by Sheila R. Besaw to Mark R. Farrell and Laura J. Farrell by deed dated May 6, 1992, and recorded in Liber 1058 of Deeds at Page 1127; thence N 72 degrees 36 minutes 20 seconds W, 206.25 feet to an iron pipe set; thence N 17 degrees 23 minutes
40 seconds E, 211.20. feet to an iron pipe set at the southwest corner of the aforementioned lands conveyed to Simmons; thence along the south line of said lands and passing through the first mentioned iron pipe, S 72 degrees S 36 minutes 20 seconds
E, 206.25 feet to the place of beginning. 
 ALL THAT TRACT OR PARCEL OF LAND, located in the Town of Gouverneur, County of St. Lawrence and
State of New York, bounded and described as follows: 
 Beginning at an iron pipe set at the southwest corner of lands conveyed by Sheila R.
Besaw to Mark R. Farrell and Laura J. Farrell by deed dated May 6, 1992, and recorded in the St. Lawrence County Clerk’s Office in Liber 1058 of Deeds at Page 1127, said iron pipe being N 72 degrees 36 minutes 20 seconds W., 16.5 feet from
an existing iron pin, and runs thence from the point of beginning along the south line of said lands conveyed to Farrell and passing through said iron pin, S 72 degrees 36 minutes 20 seconds E, 206.25 feet to an iron pipe set at the southeast corner
of said lands conveyed to Farrell, said iron pipe being at a corner in the west line of lands conveyed by Lok King Kong to John F. Liese and Margaret Liese by deed dated October 20, 1994, and recorded in Liber 1084 at Page 498; thence along the west
line of said lands conveyed to Liese, S 05 degrees 23 minutes 40 seconds W, 143.88 feet to an iron pipe set at the most southerly corner thereof; thence N 72 degrees 36, minutes 20 seconds W, 236.16 feet to an iron pipe set; thence N 17 degrees 23
minutes 40 seconds E, 140.74 feet to the place of beginning. 
 ALL THAT PARCEL OF LAND, located in the Town of GOUVERNEUR, County of St.
Lawrence and State New York, bounded and described as follows: 
 BEGINNING at a point in the centerline of Johnstown Road (County Route 12),
where the same is intersected by the southwest line of lands conveyed to Betty Hitchman (Liber 968 of Deeds, Page 811), said point being S 25 degrees 41 minutes 45 seconds E, 34.22 feet from an iron pipe set, and runs thence from the point of
beginning along the centerline of Johnstown Road, S. 79 degrees 38 minutes W, 136.13 feet to a point, said point being S 27

 Schedule A cont’d 
  

 
degrees 57 minutes 30 seconds E, 34.62 feet from an iron pipe set; thence N 27 degrees 57 minutes 30 seconds W, passing through said iron pipe, 292.43 feet to a point; thence on a curve to the
right with a radius of 4,153.43 feet, an arc length of 268.57 feet to an iron pipe set that is N 26 degrees 06 minutes 15 seconds W, 268.53 feet from the last mentioned point; thence N 74 degrees 11 minutes 30 seconds E, 146.92 feet to a wood post
at a fence corner at the northwest comer of the aforementioned lands conveyed to Hitchman; thence S 25 degrees 41 minutes 45 seconds E, along the southwest line of lands conveyed to Hitchman and passing through he first mentioned iron pipe, 571.48
feet to the place of beginning. 
 ALL THAT TRACT OF LAND located in the Town of Gouverneur, County of St. Lawrence and State of New York
bounded and described as follows: 
 BEGINNING at a point in the centerline of Johnstown Road (County Route 12), where the same is intersected
by the northeast line of lands conveyed by Gertrude Leeson to Marvin B. Matthews and Janice E. Matthews by deed dated July 1, 1967, and recorded in the St. Lawrence County Clerk’s Office in Liber 792 of Deeds at Page 84, said point being S
21 degrees 21 minutes E, 33.67 feet from an iron pipe set, and runs thence from the point of beginning along the northeast line of lands conveyed to Matthews and passing through said iron pipe, N 21 degrees 21 minutes W, 120.78 feet to an iron pipe
set at the northeast comer of said lands conveyed to Matthews, said iron pipe being at the southeast corner of lands conveyed by Dorothy Phelps to Larry Lashbrooks by deed dated November 17, 1986, and recorded In Liber 1003 of Deeds at page
1125; thence N 76 degrees 22 minutes E, 42.52 feet to an iron pipe set; thence S 27 degrees 57 minutes 30 seconds E, parallel with and 15 feet southwest of the centerline of the railroad tracks, 127.38 feet to a point in the centerline of Johnstown
Road, said point being S 27 degrees 57 minutes 30 seconds E, 34.70 feet from an iron pipe set; thence along the centerline of Johnstown Road, S 80 degrees 03 minutes 30 seconds W, 57.94 feet to the place of beginning. 
 FURTHER EXCEPTING ALL THAT PARCEL OF LAND located in the Town of Gouverneur, County of St. Lawrence and State of New York bounded and described as follows:

 BEGINNING at an iron pipe set at the southeast corner of lands conveyed by Dorothy Phelps to Larry Lashbrooks by deed dated November 17,
1986, and recorded in the St. Lawrence County Clerk’s Office in Liber 1003 of Deeds at Page 1125, said iron pipe also being at the northeast corner of lands conveyed by Gertrude Leeson to Marvin B. Matthews and Janice E. Matthews by deed dated
July 1, 1967, and recorded in Liber 792 of Deeds at Page 84, said iron pipe further being N 21 degrees 21 minutes W, 120.78 feet measured along the northeast line of lands conveyed to Matthews from a point at its intersection with the
centerline of Johnstown Road (County Route 12), and runs thence from the point of beginning along the northeast line of lands conveyed to Lashbrooks, N 15 degrees 24 minutes 15 seconds W, 66.00 feet to an iron pipe set at the northeast corner
thereof; thence along the northwest line of lands conveyed to Lashbrooks, S 76 degrees 22 minutes W, 155.10 feet to an iron pipe set at the northwest corner thereof, said iron pipe being in the northeast line of lands conveyed to Ralph Cunningham
(Liber 1098 of Deeds, Page 998); thence along the northeast line of lands conveyed to Cunningham, N 15 degrees 24 minutes 15 seconds W, 10.69 feet to an iron pipe set; thence N 62 degrees 02 minutes 30 seconds E, 174.81 feet to an iron pipe set;
thence S 27 degrees 57 minutes 30 seconds E, parallel with and 15 feet southwest of the centerline of the railroad tracks, 123.74 feet to an iron pipe set; thence S 76 degrees 22 minutes W, 42.52 feet to the place of beginning. 
 PARCEL II 
 ALL THAT TRACT OR PARCEL OF LAND
located in the Town of Gouverneur, County of St. Lawrence and State of New York, bounded and described as follows: 
 BEGINNING at a stake in
the northerly margin of Johnstown Road. leading from Gouverneur to Oxbow, said stake also being in the southwest line of lands conveyed from James E. Hockey and Anna Hockey to John Warner and May C. Warner by deed dated February 3, 1949, and
recorded in the St. Lawrence County Clerk’s Office In Liber 434 of deeds at page 544; and runs thence from the point of beginning, along the margin of Johnstown Road, South 82 degrees 29 minutes West, 26.34 feet to an iron pipe; 

 Schedule A cont’d 
  

 THENCE North 26 degrees 01 minutes West, 633.78 feet to an iron pipe set in a southeast line of Warner;

 THENCE South 65 degrees 37 minutes West, along a southeast line of Warner 649.13 feet to a stone wall intersection; 
 THENCE North 27 degrees 59 minutes West, along a southwest line of Warner, 2.970.1 feet to a inch maple tree on the bank of the Oswegatchie River;

 THENCE CONTINUING on the same bearing (North 27 degrees 59 minutes West) about 140 feet to the centerline of said river; 
 THENCE easterly along the centerline of the river as it winds and tums to a point. North 20 degrees 56 minutes West, about 100 feet from a point on the bank
of the river; 
 THENCE South 20 degrees 56 minutes East about 100 feet to said point, it being North 88 degrees 28 minutes East, 2,439.1 feet
from the last described 22” maple tree; 
 THENCE South 67 degrees 59 minutes East, along the southwest line of Rushmore Paper
Mills, Inc. 349.8 feet to a tree at afence corner; 
 THENCE South 37 degrees 12 minutes East, continuing along the southwestline of Rushmore
Paper Mills, Inc. 534.60 feet to a point near the shore of the Oswegatchie River; 
 THENCE South 32 degrees 16 minutes East, continuing along
the southwest line of the Rushmore Paper Mills, Inc. 264.0 feet to a point near the shore; 
 THENCE North 28 degrees 53 minutes East, 132 feet
to the centerline of the Oswegatchie River; 
 THENCE southeasterly along the centerline as it winds and turns to a point North 64 degrees 09
minutes East about 103 feet from a post on the bank; 
 THENCE South 64 degrees 09 minutes West about 103 feet to said post, it being South 58
degrees 44 minutes East. 1,117.8 feet from the last described point on the shore; 
 THENCE South 64 degrees 09 minutes West along a southeast
line of Warner, aforesaid, 1,744.7 feet to a stake; 
 THENCE South 64 degrees 31 minutes West 645.19 feet to a stake; 
 THENCE South 26 degrees 01 minutes East 650.38 feet to a stake on aforementioned margin of Johnstown Road; 
 THENCE South 82 degrees 29 minutes West along said margin 26.34 feet to the place of beginning. 
 EXCEPTING FROM PARCEL II THE FOLLOWING: 
 A 2 acre
parcel described in a deed from Curt Emple to Richard A. Byrns and Chrisoula S. Byrns by deed dated August 3, 1994 and recorded in the St Lawrence County Clerk’s Office in Liber 1081 of Deeds at Page 34. Said 2 acre parcel formerly
conveyed by Esther M. Thrall, et al to Theodore W. Bayard by deed dated December 29, 1884 and recorded in the St. Lawrence County Clerk’s Office in Liber 122A of Deeds at Page 68. 

 Schedule A cont’d 
  

 PARCEL III 
 ALL THAT TRACT OR PARCEL OF LAND situate in the Village and Town of Gouverneur, County of St. Lawrence and State of New York, bounded and described as follows: 
 BEGINNING at a found piece of sawed marble buried in the ground in the south bounds of Prospect St. at the northwest corner of Lot No. 22 of the
Bernard G. Parker’s Prospect HilI Addition to Gouverneur Village and runs thence, 
 1) along the south bounds of Prospect St. North 54
degrees 31 minutes 45 seconds East 55.13 feet to an iron pipe set at the northeast corner of Lot No. 22; 
 2) THENCE along the east line
of said Lot South 35 degrees 28 minutes 15 seconds East 125.00 feet to an Iron pipe set: 
 3) THENCE North 54 degrees 31 minutes 45 seconds
East 50.09 feet to an iron pipe set; 
 4) THENCE South 35 degrees 28 minutes 15 seconds East 25.00 feet to an iron pipe set at the southwest
corner of lot No. 20. of said Prospect Hill Addition; 
 5) THENCE North 54 degrees 31 minutes 45 seconds East 60.08 feet to an iron pipe
set at the southeast corner of lot No. 20; 
 6) THENCE North 35 degrees 28 minutes 15 seconds West along the line between lots 20 and 19,
25.00 feet to an iron pipe set; 
 7) THENCE North 54 degrees 31 minutes 45 seconds East 49.73 feet to an iron pipe set in the line between 19
and 18; 
 8) THENCE along said line South 35 degrees 28 minutes 15 seconds East 25.00 feet to an iron pipe set at the southwest corner of Lot
18; 
 9) THENCE North 54 degrees 31 minutes 45 seconds East 114.79 feet to an iron pipe set at the southeast corner of Lot 17; 
 10) THENCE along the line between lots 17 and 16 North 35 degrees 28 minutes 15 seconds West 25.00 feet to an iron pipe set; 
 11) THENCE North 54 degrees 31 minutes 45 seconds East 49.96 feet to an iron pipe set in the line between Lots 16 and 15; 
 12) THENCE South 35 degrees 28 minutes 15 seconds East 25.00 feet to an iron pipe set at the southwest corner of Lot 15; 
 13) THENCE along the rear of Lots 15, 14, 13, 12 and 11 North 54 degrees 31 minutes 45 seconds East 273.73 feet to a found iron pipe; 
 14) THENCE South 35 degrees 28 minutes 15 seconds East 198.00 feet to an iron pipe set in the north bounds of the Conrall Railroad lands; 
 15) THENCE along said railroad north bounds South 54 degrees 31 minutes 45 seconds West 856.79 feet to an iron pipe set; 

 Schedule A cont’d 
  

 16) THENCE North 25 degrees 29 minutes 15 seconds West 201.05 feet to an iron pipe set at the southwest
corner of Lots No. 25; 
 17) THENCE along the rear of Lot 25 and 24 North 54 degrees 31 minutes 45 seconds East 118.36 feet to an iron
pipe set at the southeast comer of Lot No. 24; 
 18) THENCE North 35 degrees 28 minutes 15 seconds West along the line between lot 24 and
23 25.00 feet to an iron pipe set; 
 19) THENCE North 54 degrees 31 minutes 45 seconds East 50.00 feet to an iron pipe set in the line between
Lots 23 and 22; 
 20) THENCE along said line North 36 degrees 28 minutes 15 seconds West 125.00 feet to the point and place of beginning.

 TOGETHER WITH THE FOLLOWING: 
 All
the grantor’s right, title, if any, in and to the following: 
 (I) a parcel of land on the north side of the centerline of Bolton Street,
described al Parcel 2 in deed from Samuel Child et al to Rushmore Paper Mills, Inc. dated June 1, 1935, and recorded in Liber 292 or Deeds at page 303, and 
 (II) a parcel of land adjoining a portion of the northern boundary of Parcel I. described above, identified as “By Deed Description” on Plant Site Plat, being a portion of the property conveyed
by deed from Samuel Child et al to Rushmore Paper Mills Inc., dated June 1, 1935, recorded In Liber 292 of Deeds at page 303. 
 Being the
same fee parcels conveyed to Cellu Tissue Corporation - Natural Dam by deed from the Fonda Group, Inc. dated March 24, 1998 and recorded April 29, 1998 In the St. Lawrence County Clerk’s Office as Instrument No. 1998-00000298.]Agreement and Plan of Merger

 Exhibit 10.14 
 Explanatory Note: The body of this document was previously filed with the SEC, as indicated in the Exhibit Index. What follows are additional schedules and/or exhibits to that document that were
not included in the original filing. 

 Exhibit A 
 Company Disclosure Schedules 

 COMPANY DISCLOSURE SCHEDULES 
 Preface 
 The following are the Company Disclosure
Schedules of Cellu Paper Holdings, Inc., a Delaware corporation (the “Company”) to the Agreement and Plan of Merger (the “Agreement”) dated as of May 8, 2006, by and among Cellu Parent Corporation, a Delaware
corporation (“Parent”), Cellu Acquisition Corporation, a Delaware corporation (“Merger Sub”) and the Cellu Paper Holdings, Inc., a Delaware corporation (the “Company”). Unless otherwise stated, capitalized
terms used but not otherwise defined herein have the meanings given to them in the Agreement. 
 These Company Disclosure
Schedules are arranged in sections corresponding to the sections contained in the Agreement, and the disclosures in any section of these Company Disclosure Schedules shall qualify (1) the corresponding section of the Agreement and (2) any
other sections in the Agreement to the extent that the relevance of such disclosure to such other sections is readily apparent on the face of such disclosure (notwithstanding the absence of a specific cross reference). 
 These Company Disclosure Schedules and the information and disclosures contained in these Company Disclosure Schedules are intended only to
qualify and limit the representations, warranties and covenants of the Company contained in the Agreement and shall not be deemed to expand in any way the scope or effect of any such representations, warranties or covenants. 
 To the extent that any representation or warranty contained in the Agreement is limited or qualified in the Agreement by the materiality of
the matters to which the representation or warranty is given, the inclusion of any matter in these Company Disclosure Schedules does not constitute a determination by the Company that such matters are material. Nor, in such cases where a
representation or warranty is limited or qualified by the materiality of the matters to which the representation or warranty is given shall the disclosure of any matter in these Company Disclosure Schedules imply that any other undisclosed matter
having an equal or greater value or other significance is material. 
 Any reference to or listing, description, disclosure or
other inclusion of any item or other matter in these Company Disclosure Schedules shall not be construed to mean that such item or other matter is required to be referred to, listed, described, disclosed or otherwise so included in these Company
Disclosure Schedules. The inclusion of any information in these Company Disclosure Schedules shall not be deemed to be an admission or acknowledgement, in and of itself, that such information is material to the Company’s business, or has or
would have a material adverse effect or sets a standard of materiality. Nothing in these Company Disclosure Schedules constitutes an admission of liability or obligation of the Company to any third party. 

 Schedule 4.2(a) 
 Capitalization; Subsidiaries 
 Company Common
Stock: 11,468 shares issued and outstanding 
  

			
	 Stockholder
	  	Common Stock
	 Charterhouse Equity Partners III, L.P.
	  	10,175.11
	 Chef Nominees Limited
	  	6.34
	 Russell Taylor
	  	457.40
	 Taylor Investment Partners
	  	457.85
	 WAHYAM Capital, LLC
	  	30.00
	 Steven Ziessler
	  	170.65
	 Dianne Scheu
	  	170.65
	  
 Company Options
  

	 Optionholder
	  	Shares of Company
Common Stock
Underlying Options1
	 Hugo Vivero
	  	109.47
	 Kevin French
	  	143.42
	 D’Arcy Schnekenburger
	  	81.05
	 John McGrath
	  	53.68
	 Zaya Oshana
	  	41.58
	 Bert DeCal
	  	20
	 Christopher Fiedler
	  	13.68
	 Steve Simeone
	  	25
	 Bob Sweitzer
	  	20
	 Cameron Moyer
	  	50

  

	1	 Reflects adjustment resulting from redemption in March 2004. 

  

 4 

 Company Warrants 
  

			
	 Warrantholder
	  	Common Stock
Underlying Warrants2

	 Charterhouse Equity Partners III, L.P.
	  	174.95
	 Chef Nominees Limited
	  	0.11
	 AG Capital Funding Partners, L.P.
	  	87.53
	 Deutsche Bank AG, Canada Branch
	  	17.78
	 Deutsche Bank Trust Company Americas
	  	226.70
	 Merrill Lynch Prime Rate Portfolio
	  	56.90
	 Master Senior Floating Rate Trust
	  	56.90
	 Debt Strategies Fund, Inc.
	  	17.50
	 Bank of America, N.A.
	  	107.20
	 Dresdner Bank AG, New York and Grand Cayman Branches
	  	115.21
	 ARK II CLO 2001-1, Limited
	  	85.64
	 Fortis Capital Corp.
	  	111.57

 Agreements Affecting Company Capital Stock 
  

	1.	Financing Agreement, dated as of March 12, 2004 (“Financing Agreement”), among Cellu Tissue LLC (“Cellu LLC”), Coastal Paper Company
(“Coastal Paper”), Cellu Tissue Corporation – Natural Dam (“Natural Dam”); Cellu Tissue Corporation – Neenah (“Neenah”); Menominee Acquisition Corporation (“Menominee”) and Interlake Acquisition
Corporation Limited (“Interlake”), as Borrowers, Cellu Tissue Holdings, Inc. (“CTH”); Van Paper Company (“Van Paper”) and Van Timber Company (“Van Timber”), as Initial Guarantors, the Company, as Parent, the
Lenders party thereto, The CIT Group/Business Credit, Inc. (“CIT Group”) and CIT Financial Limited. The Financing Agreement contains covenants restricting the merger, consolidation or amalgamation of the Company. 

 

	2.	Stockholders Agreement, dated as of September 28, 2001, among the Company, Charterhouse Equity Partners III, L.P. (“CEP III”), Chef Nominees Limited
(“Chef), WAHYAM Capital, LLC (“WAHYAM”) and the other parties listed therein. 

  

	3.	Amendment to Stockholders Agreement, dated as of September 30, 2002, among CEP III, Chef, WAHYAM, the Company and the other parties listed therein.

  

	2	 Reflects adjustment resulting from redemption in March 2004. 

  

 5 

	4.	Supplemental Stockholders Agreement among the Company and Russell C. Taylor (Joinder to the Stockholders Agreement, dated as of September 28, 2001, as amended
September 30, 2002). 

  

	5.	Supplemental Stockholders Agreement, dated March 27, 2006 between the Company and Steven Ziessler (Joinder to the Stockholders Agreement, dated as of
September 28, 2001, as amended September 30, 2002). 

  

	6.	Supplemental Stockholders Agreement, dated March 27, 2006 between the Company and Dianne Scheu (Joinder to the Stockholders Agreement, dated as of
September 28, 2001, as amended September 30, 2002). 

  

	7.	Retention Bonus Letter Agreement, dated March 27, 2006, between CTH and Russell Taylor. 

  

	8.	Retention Bonus Letter Agreement, dated March 27, 2006, between CTH and Steven Ziessler. 

  

	9.	Retention Bonus Letter Agreement, dated March 27, 2006, between CTH and Dianne Scheu. 

  

	10.	Restricted Stock Agreement among the Company and Dianne Scheu dated March 27, 2006. 

  

	11.	Option Surrender Agreement among the Company and Dianne Scheu dated January 11, 2006. 

  

	12.	Restricted Stock Agreement among the Company and Steven Ziessler dated March 27, 2006. 

  

	13.	Cellu Paper Holdings, Inc. 2001 Stock Incentive Plan (“Stock Incentive Plan”). 

  

	14.	Option Agreements 

  

	 	a.	Non-Qualified Stock Option Agreement, dated March 7, 2003, between the Company and Thomas Moore.* 

  

	 	b.	Non-Qualified Stock Option Agreements, dated March 4, 2004, between the Company and: 

  

	 	i.	Thomas Moore* 

  

	 	ii.	Hugo Vivero 

  

	 	iii.	Stephen Martineau* 

  

	 	iv.	Zaya Oshana 

  

	 	v.	Dianne Scheu* 

  

	 	vi.	D’Arcy Schnekenburger 

  

	 	vii.	Christopher Fiedler 

  

	 	viii.	Kevin French 

  

 6 

	 	ix.	John McGrath 

  

	 	x.	Tim Theut* 

  

	 	c.	Non-Qualified Stock Option Agreements, dated December 16, 2004, between the Company and: 

  

	 	i.	Thomas Moore* 

  

	 	ii.	Zaya Oshana 

  

	 	iii.	Dianne Scheu* 

  

	 	iv.	D’Arcy Schnekenburger 

  

	 	v.	Kevin French 

  

	 	vi.	John McGrath 

  

	 	vii.	Tim Theut* 

  

	 	viii.	Steve Simeone 

  

	 	ix.	Bob Sweitzer 

  

	 	x.	Bert DeCal 

  

	 	d.	Stock Option Agreement, dated January 11, 2006, between the Company and Cameron Moyer. 

  

	*	Options expired or surrendered. 

  

	15.	Warrant Agreement, dated as of September 28, 2001, between the Company and the Warrantholders party thereto. 

  

	16.	Series A Warrant Certificates, dated March 4, 2004, between the Company and: 

  

	 	a.	Charterhouse Equity Partners III, L.P. 

  

	 	b.	Chef Nominees Limited 

  

	 	c.	AG Capital Funding Partners, L.P. 

  

	 	d.	Deutsche Bank AG, Canada Branch 

  

	 	e.	Deutsche Bank Trust Company Americas 

  

	 	f.	Merrill Lynch Prime Rate Portfolio 

  

	 	g.	Debt Strategies Fund, Inc. 

  

	 	h.	Bank of America, N.A. 

  

	 	i.	Dresdner Bank AG, New York and Grand Cayman Branches 

  

	 	j.	ARK II CLO 2001-1, Limited 

  

	 	k.	Fortis Capital Corp. 

  

	 	1.	Master Senior Floating Rate Trust 

  

	17.	Option Surrender Agreements, dated March 4, 2004, between the Company and: 

  

	 	a.	Thomas Moore 

  

	 	b.	Hugo Vivero 

  

	 	c.	Stephen Martineau 

  

	 	d.	Zaya Oshana 

  

	 	e.	Dianne Scheu 

  

	 	f.	D’Arcy Schnekenburger 

  

 7 

	 	g.	Christopher Fiedler 

  

	 	h.	Kevin French 

  

	 	i.	John McGrath 

  

	 	j.	Tim Theut 

  

	 	k.	Steve Crawley 

  

	 	1.	Alex Volpe 

  

	 	m.	Ryan Schemerhorn 

  

	18.	Warrant Surrender Agreements, dated March 4, 2004, between the Company and: 

  

	 	a.	Charterhouse Equity Partners III, L.P. 

  

	 	b.	Chef Nominees Limited 

  

	 	c.	AG Capital Funding Partners, L.P. 

  

	 	d.	Deutsche Bank AG, Canada Branch 

  

	 	e.	Deutsche Bank Trust Company Americas 

  

	 	f.	Master Senior Floating Rate Trust 

  

	 	g.	Merrill Lynch Prime Rate Portfolio 

  

	 	h.	Debt Strategies Fund, Inc. 

  

	 	i.	Bank of America, N.A. 

  

	 	j.	Dresdner Bank AG, New York and Grand Cayman Branches 

  

	 	k.	ARK II CLO 2001-1, Limited 

  

	 	1.	Fortis Capital 

  

	19.	Stock Certificate and Warrant Surrender Agreements, dated March 4, 2004, between the Company and: 

  

	 	a.	Charterhouse Equity Partners III, L.P. 

  

	 	b.	Chef Nominees Limited 

  

	20.	Stock Certificate Surrender Agreements, dated March 4, 2004, between the Company and: 

  

	 	a.	Russell Taylor 

  

	 	b.	Taylor Investment Partners 

  

	 	c.	WAHYAM Capital, LLC 

  

	21.	Indenture, dated as of March 12, 2004 (the “Indenture”), among CTH, the Subsidiary Guarantors and The Bank of New York, as trustee. The Indenture
contains covenants restricting the merger, consolidation or amalgamation of the Company. 

  

 8 

 Schedule 4.2(b) 
 Capitalization; Subsidiaries 
  

												
	 Owner
	  	 Subsidiary
	  	Ownership
Interest	 	 	Subsidiary
Jurisdiction of
Organization	  	Number of
Authorized Shares/
Equity Interests/
Membership Units	  	Number of
Outstanding Shares/
Equity
Interests/
Membership Units/
Owned
	Cellu Paper Holdings, Inc.	  	Cellu Tissue Holdings, Inc.	  	100	% 	 	Delaware	  	1,000 Common,
 $0.01 Par Value
	  	100
	Cellu Tissue Holdings, Inc.	  	Cellu Tissue LLC	  	100	% 	 	Delaware	  	100% of
membership
interests	  	100
	Cellu Tissue Holdings, Inc.	  	Cellu Tissue Corporation - Natural Dam	  	100	% 	 	Delaware	  	1,000 Common,
 $0.01 Par Value
	  	1,000
	Cellu Tissue Holdings, Inc.	  	Cellu Tissue Corporation - Neenah	  	100	% 	 	Delaware	  	1,000 Common,
 $0.01 Par Value
	  	700
	Cellu Tissue Holdings, Inc.	  	Interlake Acquisition Corporation Limited	  	100	% 	 	Nova Scotia,
Canada	  	100,000 Common,
no Par Value	  	1,000

  

 9 

												
	 Owner
	  	 Subsidiary
	  	Ownership
Interest	 	 	Subsidiary
Jurisdiction of
Organization	  	Number of
Authorized Shares/
Equity Interest/
Membership Units	 	Number of
Outstanding Shares/
Equity Interest/
Membership Units
Owned
	Cellu Tissue Holdings, Inc.	  	Menominee Acquisition Corporation	  	100	% 	 	Delaware	  	1,000 Common,
$0.01 Par Value	 	1,000
	Cellu Tissue Holdings, Inc.	  	Van Paper Company	  	100	% 	 	Mississippi	  	100,000 Common	 	10,000
	Cellu Tissue Holdings, Inc.	  	Van Timber Company	  	100	% 	 	Mississippi	  	100,000 Common	 	1,000
	Van Paper Company	  	Coastal Paper Company	  	99	% 	 	Virginia	  	100% of
partnership interests	 	99
	Van Timber Company	  	Coastal Paper Company	  	1	% 	 	Virginia	  	100% of
partnership interests	 	1

  

			
	 Name of Company
	  	 Jurisdictions Where Qualified To Do
Business

	Cellu Tissue Holdings, Inc.	  	Connecticut, Georgia
	Cellu Tissue LLC	  	Connecticut
	Cellu Tissue Corporation – Natural Dam	  	New York
	Cellu Tissue Corporation – Neenah	  	Wisconsin
	Menominee Acquisition Corporation	  	Michigan
	Coastal Paper Company	  	Mississippi

  

 10 

 Schedule 4.2(b)(i) 
 Restrictions on Capital Stock of Subsidiaries 
  

	1.	Financing Agreement. The Financing Agreement contains covenants restricting the sale of Subsidiaries. 

  

	2.	Indenture. The Indenture contains covenants restricting the sale of Subsidiary stock or assets. 

  

	3.	Pledge and Security Agreement, dated as of March 12, 2004, among CTH, Cellu LLC, each other Guarantor and CIT Group. 

  

	4.	General Security Agreement, dated as of March 12, 2004, among Interlake and CIT Group. 

  

	5.	Security Agreement, dated as of March 12, 2004, among CTH, the Subsidiary Guarantors and The Bank of New York, as trustee. 

 Schedule 4.2(b)(ii) 
 Capital Stock and Ownership interests of the Subsidiaries 
 Cross reference is hereby made to Schedule 4.2(b) 
  

 11 

 Schedule 4.2(d) 
 Capitalization; Subsidiaries 
 Cross reference is hereby made to
Schedules 4.2(b) and 4.2(b)(i). 
  

 12 

 Schedule 4.3(b)(iii) 
 Authority; No Conflict; Required Filings and Consents 
  

	1.	Financing Agreement. Pursuant to the Financing Agreement, the transactions contemplated by this Agreement would result in an event of default and would require the
payment of an early termination fee pursuant to the terms of the Financing Agreement. 

  

	2.	 Indenture and 9 3/4% Senior Secured Notes (“9 3/4% Notes”). Pursuant to the Indenture, the transactions contemplated by this Agreement would trigger an optional redemption by the note holders in accordance with the
terms of the Indenture. 

  

	3.	Manufacturing and Supply Agreement, dated February 1, 2003, between CTH and Georgia-Pacific Corporation, Consumer Products Division. The consent of Georgia-
Pacific Corporation. 

  

	4.	Contract for Woodpulp, dated February 27, 2002, between Georgia-Pacific Corporation and Cellu LLC. The consent of Georgia-Pacific Corporation.

  

	5.	“Dairy Queen” Supplier Agreement, dated December 4, 2002, between Cellu Tissue and American Dairy Queen Corporation. The consent of American Dairy Queen
Corporation. 

  

	6.	Pursuant to the Stock Incentive Plan, the transactions contemplated by this Agreement would result in full vesting of all outstanding options. 

 

	7.	The transactions contemplated by this Agreement would result in full vesting of all options outstanding pursuant to the Non-Qualified Stock Option Agreements, dated
December 16, 2004, between the Company and: 

  

	 	a.	Zaya Oshana 

  

	 	b.	D’Arcy Schnekenburger 

  

	 	c.	Kevin French 

  

	 	d.	John McGrath 

  

	 	e.	Steve Simeone 

  

	 	f.	Bob Sweitzer 

  

	 	g.	Bert DeCal 

  

	8.	The transactions contemplated by this Agreement would result in full vesting of all options outstanding pursuant to the Stock Option Agreement among the Company and
Cameron Moyer dated January 11, 2006. 

  

 13 

	9.	 The transactions contemplated by this Agreement would trigger the right of the warrant holders to exercise their warrants pursuant to the Series A
Warrant Certificates3 of 

  

	 	a.	Charterhouse Equity Partners III, L.P. 

  

	 	b.	Chef Nominees Limited 

  

	 	c.	AG Capital Funding Partners, L.P. 

  

	 	d.	Deutsche Bank AG, Canada Branch 

  

	 	e.	Deutsche Bank Trust Company Americas 

  

	 	f.	Merrill Lynch Prime Rate Portfolio 

  

	 	g.	Debt Strategies Fund, Inc. 

  

	 	h.	Bank of America, N.A. 

  

	 	i.	Dresdner Bank AG, New York and Grand Cayman Branches 

  

	 	j.	ARK II CLO 2001-1, Limited 

  

	 	k.	Fortis Capital Corp. 

  

	 	1.	Master Senior Floating Rate Trust 

  

	10.	The Company realizes certain tax benefits by having corporate offices in the state of Connecticut. If the offices are moved post-Closing, these benefits may change.

  

	11.	The transactions contemplated by this Agreement would result in full vesting of any outstanding restricted stock granted pursuant to the Restricted Stock Agreements,
dated March 27, 2006, between the Company and: 

  

	 	a.	Dianne Scheu; and 

  

	 	b.	Steven Ziessler 

  

	3	 Subject to Warrant Surrender Agreements, dated March 4, 2004. 

  

 14 

 Schedule 4.3(c) 
 Authority; No Conflict; Required Filings and Consents 
 None.

  

 15 

 Schedule 4.4(c) 
 Financial Statements; Absence of Undisclosed Liabilities 
 None.

  

 16 

 Schedule 4.4(d) 
 Financial Reporting; Deficiencies; Fraud 
 None. 
  

 17 

 Schedule 4.5 
 Tax Matters 
 4.5(b) 
 The Company has filed an extension for its income Tax Returns for the year ended February 28, 2006. 
 4.5(c) 
  

	1.	Interlake’s 2001 and 2003 tax returns are currently being audited by Canadian taxing authorities. 

  

	2.	The State of Connecticut conducted a “desk” review of the Company’s 2002 Connecticut amended return and assessed the Company $72,000 for disqualified tax
credits. The Company has paid the assessment. 

 4.5(d) 
 None. 
 4.5(e) 
 None. 
 4.5(f) 
 None. 
 4.5(g) 
 None. 
 4.5(h) 
 None. 
 4.5(i) 
 None. 
 4.5(j) 
 None. 
  

 18 

 Schedule 4.6 
 Absence of Certain Changes and Events 
  

	1.	CTH has a Consulting Agreement with U.S. Networking Solutions, Inc., dated April 1, 2005 and that expired March 31, 2006, but service is continuing under the
terms of the expired agreement. 

  

	2.	In March 2006, the Company approved the Fiscal Year 2007 Capital Expenditures Budget. 

  

	3.	In May 2006, the Company intends to renew its insurance policies. 

  

	4.	The Company entered into a Restricted Stock Agreement among the Company and Dianne Scheu dated March 27, 2006. 

  

	5.	The Company entered into a Restricted Stock Agreement among the Company and Steven Ziessler dated March 27, 2006. 

  

	6.	The Company entered into a Retention Bonus Letter Agreement, dated March 27, 2006, with Russell Taylor. 

  

	7.	The Company entered into a Retention Bonus Letter Agreement, dated March 27, 2006, with Steven Ziessler. 

  

	8.	The Company entered into a Retention Bonus Letter Agreement, dated March 27, 2006, with Dianne Scheu. 

  

	9.	The Company entered into an Amended and Restated Pulp Purchase Agreement, dated April 1, 2006, with Fox River Fiber Co. 

  

	10.	The Company entered into a Verizon Wireless Major Account Agreement dated March 13, 2006 with Cellco Partnership. 

  

	11.	The Company entered into a Multifold Towel Agreement, dated April 10, 2006, with Cellynne Corporation. 

  

	12.	The Company entered into a Manufacturing and Supply Agreement, dated March 21, 2006, with Global Tissue Group. 

  

	13.	The Company entered into a Letter of Intent, dated April 21, 2006, with Nalco Company. 

  

	14.	Personal Property Lease Agreement, dated June 10, 1997, between Measurex Systems, Inc. and Menominee Paper Company, Inc., as renewed May 1, 2005. GE
Commercial Finance is the current supplier under this lease, which expired, but service is continuing under the agreement’s terms on a month to month basis. 

  

 19 

 Schedule 4.7(a) 
 Real Property 
  

	A.	No. 40 Forbes Street, East Hartford, Connecticut 

 1. All those certain pieces or parcels of land, with the buildings and improvements thereon, situated in the Town of East Hartford, County of Hartford and State of Connecticut, known as No. 40 Forbes
Street and also being shown on that certain survey entitled “Property Survey Prepared for Cellu Tissue Corporation # 40 Forbes Street Town of East Hartford, Hartford County State of Connecticut Scale l”=30’ Job No.: 531”, dated
January 23, 1998 and revised January 29, 1998, February 19, 1998, March 2, 1998, August 28, 2002, and September 12, 2002, made by Hallisey, Pearson & Cassidy, Civil Engineers & Land
Surveyors, 35 Cold Spring Road, Southway Executive Park, Unit #511, Rocky Hill, Connecticut, on file in the Town Clerk’s Office in the said Town of East Hartford, being more particularly bounded and described as follows: 
 FIRST PARCEL: 
 Beginning at an iron pin in the
easterly street line of Forbes Street, said iron pin being the southwesterly corner of premises herein described and the northeasterly corner of land now or formerly of Daniel W. Remsen; 
 Thence running N 01° 40’ 14” W along the easterly street line of Forbes Street, a distance of Two Hundred and 00/100 (200.00’) feet to a point; 
 Thence running N 18° 40’ 14” W along the easterly street line of Forbes Street, a distance of One Hundred Two and 28/100
(102.28’) feet to a point in the center of the Hockanum River, said point being the northwesterly corner of the premises herein described; 
 Thence running in a generally easterly direction along the center of the Hockanum River and the southerly line of land now or formerly the Town of East Hartford, a distance of Five Hundred Seventy-One (571’ + -) feet, more or less, to
a point in the westerly street line of Scotland Road, said point being the northeasterly corner of the premises herein described; 
 Thence
running S 38° 34’ 45” E along the westerly street line of Scotland Road, a distance of Two Hundred Ten and 00/100 (210.00’) feet to an iron pin; 
 Thence running S 51° 25’ 16” W along the northerly street line of Scotland Road, a distance of Five and 00/100 (5.00’) feet to an iron pin; 
 Thence running southerly along the westerly street line of Scotland Road along a curve to the right having a radius of 500.00’ and a central angle of
28° 30’ 30”, an arc length of Two Hundred Forty-Eight and 78/100 (248.78’) feet to a point of curvature; 
 Thence
running S 10° 04’ 14” E along the westerly street line of Scotland Road, a distance of Forty-Four and 88/100 (44.88’) feet to an iron pin, said iron pin being the southeasterly corner of

  

 20 

 
the premises herein described and the northeasterly corner of land now or formerly of Allan O. Rhodes, et al; 
 Thence running S 80° 49’ 46” W along lands now or formerly of Allan O. Rhodes, et al, Richard Yncera, et al, Town of East Hartford (Oliva Court), and Edward Jenec, partly on each, in all a
distance of Four Hundred Seventy and 15/100 (470.15’) feet to an iron pin; 
 Thence running N 53° 10’ 14” W along land
now or formerly of Daniel W. Remsen, a distance of One Hundred and 00/100 (100.00’) feet to a spike; 
 Thence running S 81°
49’ 46” W along land now or formerly of Daniel W. Remson, a distance on One Hundred Forty and 00/100 (140.00’) feet to the iron pin at the point and place of beginning. 
 TOGETHER WITH certain water and dam rights and privileges contained in a deed from Francis Hanmer and Charles Forbes to Fernando R. Walker, dated
March 1, 1864 and recorded in Volume 27, Page 123 of the East Hartford Land Records. 
 TOGETHER WITH rights, privileges and easements as
more particularly set forth in an Easement from Joseph C. Botticello, Nicholas T. Oliva, Jr., and Richard W. McCarthy to Cellu Tissue Corporation dated December 14, 1999 and recorded in Volume 1871 at Page 336 of the East Hartford Land Records.

 SECOND PARCEL: 
 Beginning at a
point at the intersection of the easterly street line of Scotland Road with the southerly edge of Hockanum River; 
 Thence running
northwesterly along the easterly street line of Scotland Road along a curve to the left having a radius of 565.00 feet and a central angle of 01° 40’ 59”, and an arc length of sixteen and 6/10 (16.6’ + -) feet, more or less;

 Thence running N 38° 34’ 45” W along the easterly line of Scotland Road, a distance of One Hundred Seventy-One (171’ + -)
feet, more or less, to a point in the center of the Hockanum River; 
 Thence running easterly and southeasterly along the center of the
Hockanum River, a distance of Four Hundred Forty (440’ + -) feet, more or less, to a point in the center of the Hockanum River; 
 Thence
running southwesterly a distance of Eighty (80’ + -) feet, more or less, to a point on the northeasterly ledge of the Hockanum River; 
 Thence running northwesterly and westerly along the edge of the Hockanum River, a distance of Three Hundred Twenty-Five (325’ + -) feet, more or less, to the point and place of beginning. 
  

 21 

	B.	144 First Street, Menominee, Michigan 

 Land in the City of Menominee, County of Menominee and State of Michigan, known as 144 First Street, Menominee, MI 45958, described as follows: 
 All that part of Government Lot 1, Section 11, Township 31 North – Range 27 West, bounded and described as follows: 
 Commencing at the Southwest Corner of Lot 12, Block 3 of Ludington and Carpenter’s First Addition to the City of Menominee and subdivision of parts of Blocks 8, 14 and 15, and run thence S 34°
25’ E along the Easterly Line of First Street, 150.00 feet to the point of beginning of the parcel of land hereinafter described: 
 Thence
N 34° 25’ W, 47.79 feet along the Easterly side of First Street; thence Easterly along the arc of a curve to the right, whose radius is 612.27 feet and whose chord bears S 79° 47’ 54” E, 68.04 feet, thence N 55° 35’
E, 71.20 feet; thence Northeasterly, 61.78 feet along an arc of a 206.68 foot radius curve to the left, whose chord bears N 72° 56’ 36” E, 61.55 feet; thence N 10° 37’ 43” E, 55.46 feet; thence N 45° 28’ 48”
W, 74.73 feet; thence N 79° 22’ 17” W, 68.96 feet; thence Southwesterly, 25.01 feet along the arc of a 318.69 foot radius curve to the left, whose chord bears South 61° 15’ 52”, 25.00 feet; thence S 59° 01’ W,
12.96 feet; thence S 10° 37’ 43” W, 30.75 feet; thence S 59° 01’ W, 95.05 feet; thence N 34° 25’ W, along the Easterly Line of First Street, 66.12 feet; thence N 59° 01’ E, 132.38 feet; thence Northeasterly
along the arc of a curve to the right, whose radius is 361.69 feet and whose chord bears N 60° 57’ E, 24.40 feet; thence N 38° 10’ E along the Southeasterly Line of the 25 foot wide strip of land owned by the City of Marinette,
309.70 feet to the Shores of Green Bay, thence S 68° 25’ 37” E along the shores of Green Bay, 192.37 feet; thence S 59° 19’ 25” E along the shores of Green Bay, 131.25 feet; thence S 44° 29’ 10” E, along the
Shores of Green Bay, 76.17 feet; thence S 55° 35’ W, 172.6 feet; thence N 55° 00’ W, 80.10 feet; thence S 55° 35’ W, 79.16 feet; thence S 55° 00’ E, 80.10 feet; thence N 55° 35’ E, 28.44 feet; thence S
38° 00’ E, 49.37 feet along the 100 foot offset line of the Original Government Meander line; thence Northeasterly 110.91 feet along the arc of a 140.19 foot radius curve to the left, whose chord bears N 78° 14’ 52”, 108.04
feet; thence Southeasterly 75.32 feet along the arc of a 53.99 foot radius curve to the right, whose chord bears S 84° 27’ 05” E, 69.36 feet; thence S 44° 29’ 10” E, 381.48 feet; thence S 47° 30’ 39” E,
196.32 feet; thence S 53° 49’ 46” E, 494.90 feet; thence S 41°37’ 37” W, 140.00 feet; thence S 43° 20’ E 188.45 feet; thence S 34° 50’ E, 55.31 feet to Point “A” thence continue S 34°
50’ E 100.00 feet; thence S 25° 10’ E, 80.00 feet to Point “B” on the Shores of the Menominee River; thence N 85° 53’ W, along said shore, 125.75 feet; thence S 86° 58’ W, 103.32 feet; thence S 67°
32’ W 200.72 feet along said shore; thence S 78° 41’ W, 100.60 feet along said shore; thence S 85° 21’ W, 102.61 feet along said shore; thence N 54° 15’ W, 515.32 feet, along said shore, along wood and steel sheet
piling; thence N 73° 56’ 30” W, 604.92 feet along the shores of the Menominee River, along a concrete sea wall, steel sheet piling and the partially unprotected shoreline; thence N 09° 10’ E, 30.44 feet along the Easterly Line
of First Street; thence N 80° 50’ W, 26.50 feet along a jog in said line; thence N 09° 10’ E, 240.00 feet along the Easterly Line of First Street; thence S 80° 50’ E, 1.50 feet along a jog in said street; thence N 09°
10’ E, 344.50 feet, along the Easterly Line of First Street; thence N 34° 25’ W, 18.40 feet (recorded as 21.29 feet) along said Easterly Line to the point of beginning. 
  

 22 

 ALSO 
 Commencing at the above-referenced point “A” and running thence S 69° 38’ 40” E, 177.35 feet to the Shores of the Menominee River; thence Southwesterly along said shore to the above-referenced point “B”
thence N 25°10’W 80.00 feet; thence N 35°50’W, 100.00 feet to Point “A” which is the point of beginning, being the same parcel as described in Liber 258 of deeds pages 206-07. 
 ALSO 
 Including the North 30.00 feet of the South
39.70 feet, all of Lot 11 of Block 3, Ludington and Carpenter’s First Addition to the City of Menominee, Michigan. 
 TOGETHER WITH

 All that part of Government Lots 1 and 2 of Section 11, Township 31 North – Range 27 West, City of Menominee, Menominee County,
Michigan, as described in Liber 309 of Deeds on page 541 of the Menominee County Records, and being more particularly described as follows: 
 Commencing at a point where the Westerly boundary line of First Street intersects the Southern boundary line of the right of way of the Chicago and Northwestern Railway Company as presently constructed and occupied; thence running S
34°58’ E along the Westerly line of First Street 89.25 feet; thence running S11°15’ W along the West boundary of First Street extended in a direct line to the center of the Menominee River; thence running N 78°45’ W,
186.00 feet; thence running N 11°15’E to the Southerly line of the right of way of the Chicago and Northwestern Railway Company; thence running N 86°45’ E along said right of way to the place of beginning. 
  

 23 

	C.	1321 South Magnolia Drive, Wiggins, Mississippi 

 1. Blocks Six (6) and Seven (7), VASEN SUBDIVISION NO. 5, a subdivision according to the official map or plat thereof on file and of record in the office of the Chancery Clerk of Stone County, Mississippi, in Plat Book 2 at Page 16
thereof, reference to which is hereby made in aid of and as a part of this description. 
 Also described as a parcel of land located in the
Southwest Quarter of the Southwest Quarter (SW 1/4 of the SW 1/4) and the Northwest Quarter of the Southwest Quarter (NW 1/4 of the SW 1/4) of Section 30, Township 2 South, Range 11 West, Stone County, Mississippi, said property located between
new Highway 49 (1961) and the railroad, and being more particularly described as follows: 
 Commencing at the Southwest corner of
aforesaid Section 30, thence run North 89 degrees 36 minutes 45 seconds East for 283.00 feet to the East right-of-way line of Old U.S. Highway 49 (year 1987), also known as Magnolia Drive for a POINT OF BEGINNING; thence run with said
right-of-way line North 04 degrees 28 minutes 39 seconds West for 1,327.22 feet to the North line of said SW 1/4 of SW 1/4; thence run North 89 degrees 31 minutes 24 seconds East for 412.01 feet to the center of an abandoned railroad; thence run
North 27 degrees 06 minutes 26 seconds East for 632.12 feet to the West right-of-way line of the Mid South (formerly Illinois Central) (formerly Gulf & Ship Island) Railroad; thence run South 13 degrees 04 minutes 12 seconds East 1,932.38
feet along said railroad right-of-way to the South line of said Section 30; thence run South 89 degrees 36 minutes 45 seconds West 1,033.43 feet along the South line of said Section 30 to the Point of Beginning. Said parcel containing
1,351,133 s.f. or 31.02 acres, more or less. 
 TOGETHER WITH an Easement for water discharge as set out in instrument recorded in Deed Book 59
at Page 38 thereof and described as a drainage easement over and across the following land: the Northwest Quarter (NW 1/4) of Section 31, Township 2 South, Range 11 West, Stone County, Mississippi; and 
 TOGETHER WITH an Easement for water discharge set out in instrument recorded in Deed Book 59 at Page 468 thereof and described as a drainage easement over
and across the Northeast Quarter of the Southwest Quarter (NE 1/4 of SW 1/4) of Section 31, Township 2 South, Range 11 West, Stone County, Mississippi, and being more particularly described as follows: Commence at a point on the North boundary
of said NE 1/4 which point is approximately 600 feet West of the Northeast (NE) corner; thence follow the meanders of the drainage way to a point on the South boundary which point is approximately 300 feet West of the Southeast (SE) corner.

 Being the same property conveyed to James River Paper Company, Inc., a Virginia corporation by duly authorized deed from Dunn Paper Company,
a Michigan corporation, dated May 18, 1987, and filed for record May 19, 1987, at 11:36 a.m., and recorded in Land Deed Book 93 at Pages 247-250; and by duly authorized deed from Dunn Paper Company, a Michigan corporation, dated
May 18, 1987, filed for record May 19, 1987 at 11:36 a.m., and recorded in Land Deed Book 93 at Pages 251-253 thereof, in the office of the Chancery Clerk of Stone County, Mississippi. 
  

 24 

	D.	4921 Route 58 North, Gouverneur, New York 

 PARCEL I 
 ALL THAT PARCEL OF LAND located in the Hamlet of Natural Dam, Town of Gouverneur, County of St. Lawrence and State of
New York, bounded and described as follows: 
 BEGINNING at a point in the centerline of Main Street at its intersection with the centerline of
Bolton Street, and at the northeast corner of a parcel of land conveyed from Clinton H. Fisk to Rushmore Paper Mills Inc. by deed dated November 8, 1965, and recorded in the St. Lawrence County Clerk’s Office in Liber 763 of Deeds at page
533, and runs thence from the point of beginning, S 03° 06’ E, along the centerline of said Main Street, 91.70 feet to its intersection with the north line of a parcel of land conveyed from Edmond E. Simmons and Vera E. Simmons to Rushmore
Paper Mills Inc. by deed dated November 6,1967, and recorded in Liber 796 of Deeds at page 120; 
 THENCE N 81° 51’ E, along the
north line thereof, 367.91 feet to the northeast corner thereof; 
 THENCE S 02° 14’ E, along the east line thereof, 173.0 feet to the
southeast corner of said parcel; 
 THENCE S 88° 15’ W, along the south line of said parcel, 363.96 feet to a point in the centerline
of the aforementioned Main Street; 
 THENCE S 03° 06’ E, along said centerline, 132.03 feet to its intersection with the north line of
the first parcel in a deed from Isabell V. White to Rushmore Paper Mills Inc. dated May 18, 1942, and recorded in Liber 337 of Deeds at page 352; 
 THENCE N 88° 15’ E, along said north line, 361.96 feet to an iron pipe at the northeast corner thereof; 
 THENCE S 02°
14’ E, along the east line thereof, to and along the east line of the second parcel in said deed (Liber 337, Page 352), to and along the east line of a parcel of land conveyed from Ernest H. Griebach and Rena C. Griebach to Rushmore Paper Mills
Inc. dated August 25, 1967, and recorded in Liber 792 of Deeds as page 498, 263.80 feet to the southeast corner of said last mentioned parcel; 
 THENCE S 88° 15’ W, along the south line thereof, 358.01 feet to a point in the centerline of the aforementioned Main Street; 
 THENCE S 03° 06’ E, along said centerline, 27.67 feet to an angle; 
 THENCE S 03° 57’ E, continuing along said
centerline, 399.79 feet to its intersection with the north line of the first parcel in a deed from Samuel Child, et al, to Rushmore Paper Mills Inc. dated June 1, 1935 and recorded in Liber 292 of Deeds at page 302; 
  

 25 

 THENCE N 87° 56’ E, along the north line thereof, 270.60 feet to a corner; 
 THENCE S 09° 11’ W, along the east line of said first parcel, 162.36 feet to a point in the north line of the fourth parcel in the aforementioned
deed from Child to Rushmore Paper Mills, Inc. (Liber 292, Page 302); 
 THENCE N 87° 56’ E, along said north line, 50.75 feet to the
northeast corner thereof; 
 THENCE S 07° 41’ W, along the east line of said fourth parcel, 174.66 feet to a point in the centerline of
Main Street; 
 THENCE S 72° 23’ E, along said centerline, 62.17 feet to a point; 
 THENCE S 16° 31’ W, 103.37 feet to a corner; thence S 60° 41’ E, 95.70 feet to a corner; 
 THENCE N 17° 34’ E, 122.76 feet to a point in the centerline of the aforementioned Main Street; 
 THENCE S 72° 23’ E, along said centerline, 425.73 feet to its intersection with the west line of a parcel of land conveyed from Harriet Easton
Thomason to Rushmore Paper Mills Inc. dated February 16, 1946 and recorded in Liber 368 of Deeds at page 20; 
 THENCE S 72°23’ E,
along said centerline to its intersection with the east line of said lands conveyed from Thomason to Rushmore Paper Mills Inc. (Liber 368 of Deeds at page 20); 
 THENCE S 72° 23’ E, along said centerline, 143.27 feet to its intersection with the east line of the first parcel in the aforementioned lands conveyed from Child to Rushmore Paper Mills Inc.
(Liber 292 of Deeds at page 302); 
 THENCE along the east and northeast bounds of said first parcel, S 17° 07’ W, 348.16 feet; thence
S 72° 53’ E, 206.58 feet to a point in the centerline of Dean Street; 
 THENCE along said centerline S 17° 07’ W, 214.50 feet
to a corner; 
 THENCE S 72° 53’ E, 205.92 feet to a corner; 
 THENCE S 04° 35’ W, 145.20 feet to a corner; 
 THENCE N 75° 14’ E, 210.60 feet
to a corner; 
 THENCE N 39° 00’ E, 257.93 feet to a corner; 
 THENCE S 55° 40’ E, 199.18 feet to a tree on the north bank of the Oswegatchie River; 
 THENCE continuing on the same bearing (S 55° 40’ E), 80.0 feet to a point in said Oswegatchie River; 
  

 26 

 THENCE S 24° 51’ W, 188.25 feet to a corner; 
 THENCE S 27° 21’ E, 132.0 feet to a tree on the south bank of said Oswegatchie River; 
 THENCE continuing on the same bearing (S 27° 21’ E), 227.04 feet to a fence post at a corner; 
 THENCE S 74° 08’ W, 452.36 feet to a fence post at a corner; 
 THENCE S 25° 44’ E, 573.81 feet to a point in the centerline of Johnstown Road, so-called; 
 THENCE S 79° 58’ W, along said centerline, 188.93 feet to a point; thence S 28° 01’ E, 1,626.78 feet to an iron pipe; 
 THENCE S 42° 32’ E, 1,464.54 feet to an iron pipe; thence S 27° 32’ E, 911.24 feet to an iron pipe in the northwest margin of the Penn Central right of way; 
 THENCE S 48° 18’ W, along said margin, 343.20 feet to an iron pipe; 
 THENCE N 13°
13’ E, 301.83 feet to an iron pipe; thence N 02° 32’ W, 165.66 feet to an iron pipe; 
 THENCE N 27° 32’ W, 610.50 feet
to an iron pipe; thence N 42° 32’ W, 1,464.54 feet to an iron pipe; 
 THENCE N 28° 01’ W, 47.54 feet to an iron pipe; thence
N 57° 21’ E, 33.63 feet to an iron pipe; 
 THENCE N 27° 56’ W, 1591.55 feet to a point in the centerline of the
aforementioned Johnstown Road; 
 THENCE S 79° 58’ W, along said centerline, 49.75 feet to a corner, 
 THENCE N 15° 30’ W, 182.57 feet to an iron pipe; 
 THENCE S 76° 55’ W, 149.04 feet to a corner; 
 THENCE N 19° 28’ W, 511.10 feet to a fence post on the south bank of
the Oswegatchie River; 
 THENCE continuing on the same bearing (N 19° 28’ W), 40.0 feet to a point in the centerline of said
Oswegatchie River; 
 THENCE southwesterly and northwesterly along said centerline as it winds and turns, to a point that is N 51° 00’
W, 1,981.20 feet from the last described point; 
 THENCE S 28° 53’ W, 132.00 feet to a point and corner; 
 THENCE N 32° 16’ W, 264.00 feet to a tree at an angle; 
  

 27 

 THENCE N 37° 12’ W, 534.60 feet to a tree at a fence corner; 
 THENCE N 67° 59’ W, 349.8 feet to a point in the shoreline of the Oswegatchie River; 
 THENCE N 20° 56’ W, crossing said Oswegatchie River 690.0 feet to a point; 
 THENCE N
82° 04’ E, 576.85 feet to a point; 
 THENCE N 11° 28’ E, along the west line of the first mentioned parcel conveyed from Fisk
to Rushmore Paper Mills, Inc. (Liber 763, page 533), 386.95 feet to a point in the centerline of Bolton Street; thence S 78° 00’ E, along said centerline, 767.56 feet to the place of beginning. 
 EXCEPTING: 
 A 0.6 acre parcel excepted in the
deed from Gladys Borbridge to Rushmore Paper Mills Inc. dated December 12, 1946 and recorded in Liber 389 of Deeds at page 30, a parcel of land conveyed from Glade Bean to Madeline L. Link by deed dated May 15, 1941, and recorded in Liber
329 of Deeds at page 253, and a parcel of land conveyed to Charles Gates by deed dated April 30, 1943 and recorded in Liber 344 of Deeds at page 294. 
 ALL THAT TRACT OR PARCEL OF LAND, located in the Town of Gouverneur, County of St. Lawrence and State of New York, bounded and described as follows: 
 Beginning at a point in the centerline of Dean Street at the southeast corner of lands conveyed by Herbert E. Stowell and Madelyn V. Stowell to Lester N.
Simmons and Bonnie M. Simmons by deed dated June 24, 1974, and recorded in the St. Lawrence County Clerk’s Office in Liber 894 of Deeds at Page 178, said point being S 72 degrees 36 minutes 20 seconds E, 24.75 feet from an iron pipe set,
and runs thence from the point of beginning along the centerline of Dean Street and the southwesterly extension thereof, S 17 degrees 23 minutes 40 seconds W, 211.20 feet to an iron pipe set at the southwest corner of lands conveyed by Sheila R.
Besaw to Mark R. Farrell and Laura J. Farrell by deed dated May 6, 1992, and recorded in Liber 1058 of Deeds at Page 1127; thence N 72 degrees 36 minutes 20 seconds W, 206.25 feet to an iron pipe set; thence N 17 degrees 23 minutes 40 seconds
E, 211.20 feet to an iron pipe set at the southwest corner of the aforementioned lands conveyed to Simmons; thence along the south line of said lands and passing through the first mentioned iron pipe, S 72 degrees 36 minutes 20 seconds E, 206.25
feet to the place of beginning. 
 ALL THAT TRACT OR PARCEL OF LAND, located in the Town of Gouverneur, County of St. Lawrence and State of New
York, bounded and described as follows: 
 Beginning at an iron pipe set at the southwest corner of lands conveyed by Sheila R. Besaw to Mark R.
Farrell and Laura J. Farrell by deed dated May 6, 1992, and recorded in the St. Lawrence County Clerk’s Office in Liber 1058 of Deeds at Page 1127, said iron pipe being N 72 degrees 36 minutes 20 seconds W, 16.5 feet from an existing iron
pin, and runs thence from the point of beginning along the south line of said lands conveyed to Farrell and passing through said

  

 28 

 
iron pin, S 72 degrees 36 minutes 20 seconds E, 206.25 feet to an iron pipe set at the southeast corner of said lands conveyed to Farrell, said iron pipe being in a corner in the west line of
lands conveyed by Lok King Kong to John F. Liese and Margaret Liese by deed dated October 20, 1994, and recorded in Liber 1084 at Page 498; thence along the west line of said lands conveyed to Liese, S 05 degrees 23 minutes 40 seconds W, 143.88
feet to an iron pipe set at the most southerly corner thereof; thence N 72 degrees 36 minutes 20 seconds W, 236.16 feet to an iron pipe set; thence 17 degrees 23 minutes 40 seconds E, 140.74 to the place of beginning. 
 ALL THAT PARCEL OF LAND, located in the Town of Gouverneur, County of St. Lawrence and State of New York, bounded and described as follows: 
 BEGINNING at a point in the centerline of Johnstown Road (County Route 12), where the same is intersected by the southwest line of lands conveyed to Betty
Hitchman (Liber 968 of Deeds at page 811), said point being S 25 degrees 41 minutes 45 seconds E, 34.22 feet from an iron pipe set, and runs thence from the point of beginning along the centerline of Johnstown Road, S 79 degrees 38 minutes W, 136.13
feet to a point, said point being S 27 degrees 57 minutes 30 seconds E, 34.62 feet from an iron pipe set; thence N 27 degrees 57 minutes 30 seconds W, passing through said iron pipe, 292.43 feet to a point; thence on a curve to the right with a
radius of 4,153.43 feet, an arc length of 268.57 feet to a iron pipe set that is N 26 degrees 06 minutes 15 seconds W, 268.53 feet from the last mentioned point; thence N 74 degrees 11 minutes 30 seconds E, 146.92 feet to a wood post at a fence
corner at the northwest corner of the aforementioned lands conveyed to Hitchman; thence S 25 degrees 41 minutes 45 seconds E, along the southwest line of lands conveyed to Hitchman; and passing through the first mentioned iron pipe, 571.48 feet to
the place of beginning. 
 ALL THAT TRACT OF LAND, located in the Town of Gouverneur, County of St. Lawrence and State of New York, bounded and
described as follows: 
 BEGINNING at a point in the centerline of Johnstown Road (County Route 12), where the same is intersected by the
northeast line of lands conveyed by Gertrude Leeson to Marvin B. Matthews and Janice E. Matthews by deed dated July 1, 1967, and recorded in the St. Lawrence County Clerk’s Office in Liber 792 of Deeds at Page 84, said point being S 21
degrees 21 minutes E, 33.67 feet from an iron pipe set, and runs thence from the point of beginning along the northeast line of lands conveyed by Matthews and passing through said iron pipe, N 21 degrees 21 minutes W, 120.78 feet to an iron pipe set
at the northeast corner of said lands conveyed to Matthews, said iron pipe being at the southeast corner of lands conveyed by Dorothy Phelps to Larry Lashbrooks by deed dated November 17, 1986, and recorded in Liber 1003 of Deeds at Page 1125;
thence N 76 degrees 22 minutes E, 42.52 feet to an iron pipe set; thence S 27 degrees 57 minutes 30 seconds E, parallel with and 15 feet southwest of the centerline of the railroad tracks, 127.38 feet to a point in the centerline of Johnstown Road,
said point being S 27 degrees 57 minutes 30 seconds E, 34.70 feet from an iron pipe set; thence along the centerline of Johnstown Road, S 80 degrees 03 minutes 30 seconds W, 57.94 feet to the place of beginning. 
 FURTHER EXCEPTING ALL THAT PARCEL OF LAND, located in the Town of Gouverneur, County of St. Lawrence and State of New York, bounded and described as
follows: 
  

 29 

 BEGINNING at an iron pipe set at the southeast corner of lands conveyed by Dorothy Phelps to Larry
Lashbrooks by deed dated November 17, 1986, and recorded in the St. Lawrence County Clerk’s Office in Liber 1003 of Deeds at page 1125; said iron pipe also being at the northeast corner of lands conveyed by Gertrude Leeson to Marvin B.
Matthews and Janice E. Matthews by deed dated July 1, 1967, and recorded in the St. Lawrence County Clerk’s Office in Liber 792 of Deeds at page 84, said iron pipe further being N 21 degrees 21 minutes W, 120.78 feet measured along the
northeast line of lands conveyed to Matthews from a point at its intersection with the centerline of Johnstown Road (County Route 12), and runs thence from the point of beginning along the northeast line of lands conveyed to Lashbrooks, N 15 degrees
24 minutes 15 seconds W, 66.00 feet to an iron pipe set at the northeast corner thereof; thence along the northwest line of lands conveyed to Lashbrooks, S 76 degrees 22 minutes W, 155.10 feet to an iron pipe set at the northwest corner thereof,
said iron pipe being the northeast line of lands conveyed to Ralph Cunningham (Liber 1098 of Deeds at page 998); thence along the northeast line of lands conveyed to Cunningham, N 15 degrees 24 minutes 15 seconds W, 10.69 feet to an iron pipe set;
thence N 62 degrees 02 minutes 30 seconds E, 174.81 feet to an iron pipe set; thence S 27 degrees 57 minutes 30 seconds E, parallel with and 15 feet southwest of the centerline of the railroad tracks, 123.74 feet to an iron pipe set; thence S 76
degrees 22 minutes W, 42.52 feet to the place of beginning. 
 PARCEL II 
 ALL THAT TRACT OR PARCEL OF LAND located in the Town of Gouverneur, County of St. Lawrence and State of New York, known as 4921 Route 58 North, Gouverneur, NY 13642, bounded and described as follows:

 BEGINNING at a stake in the northerly margin of Johnstown Road, leading from Gouverneur to Oxbow, said stake also being in the southwest line
of lands conveyed from James E. Hockey and Anna Hockey to John Warner and May C. Warner by deed dated February 3, 1949, and recorded in the St. Lawrence County Clerk’s Office in Liber 434 of deeds at page 544; and runs thence from the
point of beginning, along the margin of Johnstown Road, S 82° 29’ W, 26.34 feet to an iron pipe; thence N 26° 01’ W, 633.78 feet to an iron pipe set in a southeast line of Warner; thence S 65° 37’ W, along a southeast line
of Warner 649.13 feet to a stone wall intersection; thence N 27° 59’ W, along a southwest line of Warner, 2,970.1 feet to a 22 inch maple tree on the bank of the Oswegatchie River; thence continuing on the same bearing (N 27° 59’
W) about 140 feet to the centerline of said river; thence easterly along the centerline of the river as it winds and turns to a point, N 20° 56’ W, about 100 feet from a point on the bank of the river; thence S 20° 56’ E about 100
feet to said point, it being N 88° 28’ E, 2,439.1 feet from the last described 22” maple tree; thence S 67° 59’ E, along the southwest line of Rushmore Paper Mills Inc. 349.8 feet to a tree at a fence corner; thence S 37°
12’ E, continuing along the southwest line of Rushmore Paper Mills Inc. 534.60 feet to a point near the shore of the Oswegatchie River; thence S 32° 16’ E, continuing along the southwest line of the Rushmore Paper Mills Inc. 264.0 feet
to a point near the shore; thence N 28° 53’ E, 132 feet to the centerline of the Oswegatchie River; thence southeasterly along the centerline as it winds and turns to a point N 64° 09’ E, about 103 feet from a post on the bank;
thence S 64° 09’ W, about 103 feet to said post, it being S 58° 44’

  

 30 

 
E, 1,117.8 feet from the last described point on the shore; thence S 64° 09’ W, along a southeast line of Warner, aforesaid, 1,744.7 feet to a stake; thence S 64° 31’ W, 645.19
feet to a stake; thence, S 26° 01’ E, 650.38 feet to a stake on aforementioned margin of Johnstown Road; thence S 82° 29’ W, along said margin 26.34 feet to the place of beginning. 
 EXCEPTING FROM PARCEL 2 THE FOLLOWING: 
 A 2 acre
parcel described in a deed from Curt Empie to Richard A. Byrns and Chrisoula S. Byrns by deed dated August 3, 1994 and recorded in the St. Lawrence County Clerk’s Office in Liber 1081 at page 34. Said 2 acre parcel formerly conveyed by
Esther M. Thrall, et al, to Theodore W. Bayard by deed dated December 29, 1884 and recorded in the St. Lawrence County Clerk’s Office in Liber 122A of Deeds at page 68. 
 PARCEL III 
 ALL THAT TRACT OR PARCEL OF LAND situate in the Village and Town of Gouverneur,
County of St. Lawrence and State of New York, bounded and described as follows: 
 BEGINNING at a found piece of sawed marble buried in the
ground in the south bounds of Prospect St. at the northwest corner of Lot No. 22 of the Bernard G. Parker’s Prospect Hill Addition to Gouverneur Village, and runs thence, 1) along the south bounds of Prospect St. N 54 degrees 31 minutes 45
seconds E, 55.13 feet to an iron pipe set at the northeast corner of Lot No. 22; 2) THENCE along the east line of said Lot S 35 degrees 28 minutes 15 seconds E, 125.00 feet to an iron pipe set; 3) THENCE N 54 degrees 31 minutes 45 seconds E,
50.09 feet to an iron pipe set; 4) THENCE S 35 degrees 28 minutes 15 seconds E, 25.00 feet to an iron pipe set at the southwest corner of Lot. No. 20 of said Prospect Hill Addition; 5) THENCE N 54 degrees 31 minutes 45 seconds E, 60.08 feet to
an iron pipe set at the southeast corner of Lot No. 20; 6) THENCE N 35 degrees 28 minutes 15 seconds W along the line between Lots 20 and 19, 25.00 feet to an iron pipe set; 7) THENCE N 54 degrees 31 minutes 45 seconds E, 49.73 feet to an iron
pipe set in the line between Lots 19 and 18; 8) THENCE along said line S 35 degrees 28 minutes 15 seconds E, 25.00 feet to an iron pipe set at the southwest corner of Lot 18; 9) THENCE N 54 degrees 31 minutes 45 seconds E, 114.79 feet to an iron
pipe set at the southeast corner of Lot 17; 10) THENCE along the line between Lots 17 and 16, N 35 degrees 28 minutes 15 seconds W, 25.00 feet to an iron pipe set; 11) THENCE N 54 degrees 31 minutes 45 seconds E, 49.96 feet to an iron pipe set in
the line between Lots 16 and 15; 12) THENCE S 35 degrees 28 minutes 15 seconds E, 25.00 to an iron pipe set at the southwest corner of Lot 15; 13) THENCE along the rear of Lots 15,14, 13, 12, and 11 N 54 degrees 31 minutes 45 seconds E, 273.73 feet
to a found iron pipe; 14) THENCE S 35 degrees 28 minutes 15 seconds E, 198.00 feet to an iron pipe set in the north bounds of the Conrail Railroad lands; 15) THENCE along said railroad north bounds S 54 degrees 31 minutes 45 seconds W, 856.79 feet
to an iron pipe set; 16) THENCE N 25 degrees 28 minutes 15 seconds W, 201.05 feet to an iron pipe set at the southwest corner of Lot No. 25; 17) THENCE along the rear of Lots 25 and 24 N 54 degrees 31 minutes 45 seconds E, 118.36 to an iron
pipe set at the southeast corner of Lot No. 24; 18) THENCE N 35 degrees 28 minutes 15 seconds W along the line between Lot 24 and 23, 25.00

  

 31 

 
feet to an iron pipe set; 19) THENCE N 54 degrees 31 minutes 45 seconds E, 50.00 feet to an iron pipe set in the line between Lots 23 and 22; 20) THENCE along said line N 35 degrees 28 minutes 15
seconds W, 125.00 feet to the point and place of beginning. 
 TOGETHER WITH THE FOLLOWING: 
 All of the Cellu Tissue Corporation - Natural Dam’s right, title and interest, if any, in and to the following: 
 (i) a parcel of land on the north side of the centerline of Bolton Street, described as Parcel 2 in deed from Samuel Child et al to Rushmore Paper Mills
Inc. dated June 1,1935, and recorded in Liber 292 of Deeds at page 303, and 
 (ii) a parcel of land adjoining a portion of the northern
boundary of Parcel I described above, identified as “By Deed Description” on Plant Site Plat, being a portion of the property conveyed by deed from Samuel Child et al to Rushmore Paper Mills Inc. dated June 1, 1935, recorded in Liber
292 of Deeds at page 303. 
 Being the same fee parcels conveyed to Cellu Tissue Corporation-Natural Dam by deed from the Fonda Group, Inc.
dated March 24, 1998 and recorded April 29, 1998 in the St. Lawrence County Clerk’s office as Instrument No. 1998-00000298. 
  

 32 

	E.	249 North Lake Street, Neenah, Wisconsin 

 Parcel 1: Lot One (1), of Certified Survey Map No. 3549, filed in the office of the Register of Deeds for Winnebago County, Wisconsin in Volume 1 of Certified Survey Maps on Page 3549, as Document
No. 951012, being part of Government Lot 1 and part of Government Lot 2 of Section Twenty-one (21), Township Twenty (20) North, Range Seventeen (17) East, Town of Menasha, Winnebago County, Wisconsin. 
 AND 
 Lot One (1),
of Certified Survey Map No. 3548, filed in the office of the Register of Deeds for Winnebago County, Wisconsin in Volume 1 of Certified Survey Maps on Page 3548, as Document No. 951011. 
 Parcel 2: Lot 1 of Certified Survey Map No. 3859, filed in the office of the Register of Deeds for Winnebago County, Wisconsin in Volume
1 of Certified Survey Maps on Page 3859 as Document No. 989728; being all of Lots 1 and 2 of Certified Survey Map 3547 recorded as Document No. 951010, being part of Government Lot 2 of Section 21, Township 20 North, Range 17 East,
Town of Menasha, Winnebago County, Wisconsin. 
 Parcels I & II being the same property described in that certain survey
prepared by Martensen Eisele Incorporated, dated August 22, 2002, last revised September 30, 2002, Job. No. 206-0141, being more particularly described as follows: 
 PARCEL I 
 All of Lot I of Certified Survey Map 3548 and all of Lot 1 of Certified
Survey Map 3549 all located in Section 21, Township 20 North, Range 17 East, Town of Menasha, Winnebago County, Wisconsin, also described as follows: 
 Beginning at the Southwest corner of Lot 1 of said Certified Survey Map 3548; Thence along the east right-of-way of North Lake Street, North 05 degrees 47 minutes 27 seconds East, 44.62 feet; 

Thence continuing along the east right-of-way line of North Lake Street, North 11 degrees 09 minutes 42 seconds West, 756.28 feet; the
following seven (7) calls are along the north line of Lot 1 of said Certified Survey Map 3549, 
 thence North 69 degrees
18 minutes 37 seconds East, 63.78 feet; 
 thence North 61 degrees 40 minutes 37 seconds East, 69.09 feet; 
 thence North 55 degrees 43 minutes 52 seconds East, 133.88 feet; 
 thence North 76 degrees 30 minutes 39 seconds East, 55.01 feet; 
 thence North 79 degrees 17 minutes 24 seconds East, 320.38; 
  

 33 

 thence South 32 degrees 01 minutes 25 seconds East, 112.08 feet; 
 thence north 86 degrees 00 minutes, 00 seconds East, 189.33 feet to a meander corner that is South 86 degrees 00 minutes 00 seconds West, 12
feet more or less from the water edge of Little Lake Butte Des Morts; 
 thence continuing from said meander corner along a
meander line, South 08 degrees 02 minutes 48 seconds West, 25.81 feet; 
 thence continuing along said meander line, South 13
degrees 51 minutes 07 seconds West, 365.00 feet; 
 thence continuing along said meander line, South 25 degrees 25 minutes 36
seconds West 268.58 feet; 
 thence continuing along said meander line, South 55 degrees 28 minutes 51 seconds West, 304.87
feet; 
 thence continuing along said meander line, South 39 degrees 01 minutes 52 seconds West, 144.06 feet to a meander corner
that is South 89 degrees 50 minutes 23 seconds West, 79 feet more or less from the water edge of Little Lake Butte Des Morts; 
 thence continuing from said meander along the south line of Lot 1 of said Certified Survey Map 3548, South 89 degrees 50 minutes 23 seconds West, 157.59 feet to the point of beginning, containing 13 acres more or less including all lands
lying between the meander line of the waters edge of Little Lake Butte Des Morts. 
 Subject to all easements and restrictions of record.

 PARCEL II 
 All of
Lot 1 of Certified Survey Map 3859 being part of Government Lot 2 of Section 21, Township 20 North, Range 17 East, Town of Menasha, Winnebago County, Wisconsin also described as follows: 
 Commencing at the Northwest corner of said Section 21; 
 Thence along the west line of the Northwest  1/4 of said Section 21, South 00 degrees 11 minutes 48 seconds
West, 1324.47 feet; 
 Thence along the north line of said Government Lot 2, North 89 degrees 55 minutes 15 seconds East,
1719.22 feet; 
 Thence along the east right-of-way line of the Wisconsin Central Railroad, South 29 degrees 13 minutes 14
seconds East, 28.63 feet to the point of beginning; 
 Thence along the south right-of-way line of Chapman Avenue, North 89
degrees 55 minutes 15 seconds East, 595.80 feet; 
  

 34 

 Thence along the west right-of-way line of North Lake Street, South 11 degrees 09 minutes 42
seconds East, 1146.25 feet; 
 Thence, South 89 degrees 51 minutes 48 seconds West, 188.86 feet; 
 Thence along the east right-of-way line of the Wisconsin Central Railroad, North 29 degrees 13 minutes 14 seconds West, 1288.11 feet;

 To the point of beginning, containing 10.133 acres. 
 Subject to all easements and restrictions of record. 
  

 35 

	F.	45 Merritt Street, St. Catherines, Ontario, Canada 

 Land in St. Catharines, Ontario described as follows: 
 Part of Lot 898, Corporation Plan
No. 6 
 Designated as Parts 1-13 both inclusive 
 Plan 30R - 8764 
 City of St. Catharines 
 Regional Municipality of Niagara 
 PIN# 46345-0026
(R) 
  

 36 

 Description of Written or Oral Subleases/Licenses/Concessions/Occupancy Agreements/Contractual
Obligations in connection with Real Property 
  

	A.	Michigan 

  

	1.	Waste Water Treatment Agreement between the City of Menominee and Menominee Paper Company, dated December 10, 1987, as amended by an Amendment to Waste Water
Treatment Agreement, dated April 15, 1988 between the City of Menominee and Menominee Paper Company (as ratified by that certain Modification to Ratification of Lease and Ground Lease referenced in item 2 below). 

  

	2.	Ratification of Lease and Ground Lease by and between the City of Menominee and Menominee Paper Company, Inc., dated July 16, 1991, and recorded July 19,1991,
in Liber 303 at Page 426, as modified by a Modification to Ratification of Lease and Ground Lease by and between City of Menominee and Menominee Paper Company, Inc., dated March 24, 1998 and recorded April 1,1998, in Liber 369 at Page 52.

 B. Wiggins, Mississippi 
  

	1.	Lease Agreement by and between Coastal Paper Company, Inc. and George County Hospital, dated April 22, 2005; leased premises located at 200 Coastal Paper Avenue,
Wiggins, Mississippi 39577. 

  

 37 

 Schedule 4.7(b) 
 Description of Leases 
  

	A.	333 East River Drive, Suite 304, East Hartford, Connecticut 06108 

  

	1.	Office Lease by and between Commerce Center One Limited Partnership, as landlord, and Cellu Tissue LLC (successor-in-interest to Cellu Tissue Corporation), as tenant,
dated as of October 24, 2001; leased premises is 4,114 rentable square feet of office space located at 333 East River Drive, Suite 304, East Hartford, Connecticut 06108, as amended by the First Amendment of Lease, dated March 2, 2004,
which among other things reduced the leased premises to 2,531 rentable square feet. 

  

	B.	3442 Francis Road, Abharetta, Georgia 30004, Forsyth County 

 1. Lease by and between Francis Road Properties, L.L.C., as landlord and Cellu Tissue Holdings, Inc., as tenant, dated July 29, 2003 and expiring on June 30, 2006; leased premises is 5,000
square feet of office space located at 3442 Francis Road, Alpharetta, Georgia 30004, Forsyth County. 
  

	C.	1855 Lockeway Drive, Alpharetta, Georgia 30004, Forsyth County 

  

	1.	Lease by and between Z Properties, LLC, as landlord and Cellu Tissue Holdings, Inc., as tenant, dated February 10, 2006; leased premises is 7,828+ square feet of
office space located at 1855 Lockeway Drive, Alpharetta, Georgia 30004, Forsyth, County. The landlord has informed the Company that the premises will not be ready for occupancy until June 1, 2006. 

  

	D.	296 Collier Road, Thorold, Ontario, Canada, L2V 5B6 

  

	1.	Lease by and between Gorge Holdings Inc. and Kimberly-Clark, Inc. dated as of March 1994, as amended by letters dated July 22, 2004 and June 8, 2005 with
Interlake; leased premises is 30,000 square feet of warehouse space located at 296 Collier Road, Thorold, Ontario, Canada, L2V 5B6. 

  

	E.	From time to time the Company and its Subsidiaries enters into informal arrangements with respect to storage of inventory on an as needed basis. The space is billed on
a square foot or ton stored basis. There is no obligation to use any space. 

  

 38 

 Schedule 4.7(c) 
 Zoning Non-Compliance 
 None. 
  

 39 

 Schedule 4.7(d) 
 Encroachments 
  

	A.	No. 40 Forbes Street, East Hartford, Connecticut 

 See encroachments disclosed in a certain survey entitled “Property Survey Prepared for Cellu Tissue Corporation #40 Forbes Street Town of East Hartford County State of Connecticut”, dated
01/23/98 and revised 01/29/98, 02/19/98, 03/02/98, 08/28/02, and 09/12/02, prepared by Hallisey, Pearson & Cassidy, Civil Engineers & Land Surveyors. 
  

	B.	144 First Street, Menominee, Michigan 

 See encroachments disclosed in a certain survey entitled “ALTA/ACSM Survey for Menominee Acquisition Corp.” dated 09/18/02, prepared by William Lenca, a Michigan Professional Surveyor No. 26461. 
  

	C.	1321 South Magnolia Drive, Wiggins, Mississippi 

 See any encroachments disclosed in a certain survey dated 09/09/02 and revised 09/19/02, 09/25/02 and 10/01/02, prepared by Rodney E. Davis, PLS #02808. 
  

	D.	4921 Route 58 North, Gouverneur, New York 

 See any encroachments disclosed in a certain survey dated 12/17/74 and revised 04/25/96, 03/19/98, 09/05/02 and 09/17/02, prepared by Robert J. Busier. 
  

	E.	249 North Lake Street, Neenah, Wisconsin 

 See any encroachments disclosed in a certain survey dated 07/22/02 and revised 08/12/02, 08/22/02, and 09/16/02, together with the two sheets enclosed thereto both dated 08/22/02, prepared by Gary A. Zahringer, Martenson & Eisele,
Inc. 
  

	F.	45 Merritt Street, St. Catherines, Ontario, Canada 

 See any encroachments disclosed in a certain Site Plan dated 02/24/97 prepared by Douglas G. Ure & Sons, Ontario Land Surveyors under File No. 96/187; Reference Plan 30R-8764 dated 02/26/97
prepared by Frederick A. Ure, Ontario Land Surveyors under File No. F.B. 254-1, 276-101; and Drawing JC-10-679 prepared by L. H. Schwindt & Company Inc. dated 08/03/99. 
  

 40 

 Schedule 4.7(f) 
 Liens 
  

	1.	Open-Ended Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing made by Cellu LLC to The Bank of New York, dated March 12, 2004, filed
in the Town of East Hartford, CT. 

  

	2.	Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing made by Natural Dam to The Bank of New York, dated March 12, 2004, filed in St.
Lawrence County, NY. 

  

	3.	Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing made by Neenah to The Bank of New York, dated March 12, 2004, filed in Winnebago
County, WI. 

  

	4.	Deed of Trust, Security Agreement, Assignment of Leases and Rents, and Fixture Filing made by Coastal Paper to Gulf Title Company, Inc., as trustee for use and benefit
of The Bank of New York, dated March 12, 2004, filed in Stone County, MS. 

  

	5.	Mortgage/Charge Agreement made by Interlake in favor of The Bank of New York, dated March 12, 2004. 

  

	6.	Future Advance Mortgage made by Menominee to The Bank of New York, dated March 12, 2004, filed in Menominee County, MI. 

  

	7.	Open-Ended Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing made by Cellu LLC to The CIT Group/Business Credit, Inc., dated
March 12, 2004, filed in the Town of East Hartford, CT. 

  

	8.	Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing made by Natural Dam to The CIT Group/Business Credit, Inc., dated March 12, 2004,
filed in St. Lawrence County, NY. 

  

	9.	Mortgage, Security Agreement, Assignment of Leases and Rents, and Fixture Filing made by Neenah to The CIT Group/Business Credit, Inc., dated March 12, 2004, filed
in Winnebago County, WI. 

  

	10.	Deed of Trust, Security Agreement, Assignment of Leases and Rents, and Fixture Filing made by Coastal Paper to Gulf Title Company, Inc., as trustee for use and benefit
of The CIT Group/Business Credit, Inc., dated March 12, 2004, filed in Stone County, MS. 

  

	11.	Mortgage/Charge Agreement made by Interlake in favor of The CIT Group/Business Credit, Inc., dated March 12, 2004. 

  

	12.	Future Advance Mortgage made by Menominee to The CIT Group/Business Credit, Inc., dated March 12, 2004, filed in Menominee County, MI. 

  

	13.	Trademark Security Agreement. 

  

 41 

	14.	Grants of Security Interest in Trademark Rights, dated March 12, 2004, in favor of The Bank of New York, by: 

  

	 	a.	Cellu Tissue Corporation – Neenah 

  

	 	b.	Interlake Acquisition Corporation Limited 

  

	 	c.	Menominee Acquisition Corporation 

  

	15.	Cross reference is hereby made to Schedule 4.2(b) Items 3-5. 

  

	16.	Delaware UCC 1 #40728982 filed by The Bank of New York against CTH on March 16, 2004. 

  

	17.	Delaware UCC 1 #40729287 filed by The CIT Group/Business Credit, Inc. against CTH on March 16, 2004. 

  

	18.	Delaware UCC 1 #30035496 filed by CISCO Systems Capital Corporation against CTH on December 18, 2002. 

  

	19.	Delaware UCC 1 #40484917 filed by Toyota Motor Credit Corporation against CTH on February 23, 2004. 

  

	20.	Connecticut UCC 1 #0001998883 filed by Toyota Motor Credit Corporation against CTH on May 24, 2000. 

  

	21.	Connecticut UCC 1 #0002072153 filed by Toyota Motor Credit Corporation against CTH on May 29, 2001. 

  

	22.	St. Lawrence County, NY UCC 1 #2000-00013009 filed by Toyota Motor Credit Corporation against CTH on July 7, 2000. 

  

	23.	Delaware UCC 1 #40729782 filed by The Bank of New York against Cellu LLC on March 16, 2004. 

  

	24.	Delaware UCC 1 #40729899 filed by The CIT Group/Business Credit, Inc. against Cellu Tissue on March 16, 2004. 

  

	25.	Delaware UCC 1 #32172073 filed by Dell Financial Services, L.P. against Cellu LLC on August 20, 2003. 

  

	26.	Delaware UCC 1 #32540626 filed by Dell Financial Services, L.P. against Cellu LLC on September 30, 2003. 

  

	27.	Delaware UCC 1 #32570441 filed by Dell Financial Services, L.P. against Cellu LLC on October 2, 2003. 

  

	28.	Delaware UCC 1 #33067082 filed by Dell Financial Services, L.P. against Cellu LLC on November 20, 2003. 

  

 42 

	29.	Delaware UCC 1 #40084170 filed by Dell Financial Services, L.P. against Cellu LLC on January 13, 2004. 

  

	30.	Delaware UCC 1 #40414492 filed by Dell Financial Services, L.P. against Cellu LLC on February 13, 2004. 

  

	31.	Delaware UCC 1 #41094343 filed by Dell Financial Services, L.P. against Cellu LLC on April 9, 2004. 

  

	32.	Delaware UCC 1 #41424474 filed by Dell Financial Services, L.P. against Cellu LLC on May 21, 2004. 

  

	33.	Delaware UCC 1 #41424524 filed by Dell Financial Services, L.P. against Cellu LLC on May 21, 2004. 

  

	34.	Delaware UCC 1 #41424573 filed by Dell Financial Services, L.P. against Cellu LLC on May 21, 2004. 

  

	35.	Delaware UCC 1 #41424615 filed by Dell Financial Services, L.P. against Cellu LLC on May 21, 2004. 

  

	36.	Delaware UCC 1 #41424664 filed by Dell Financial Services, L.P. against Cellu LLC on May 21, 2004. 

  

	37.	Delaware UCC 1 #41424680 filed by Dell Financial Services, L.P. against Cellu LLC on May 21, 2004. 

  

	38.	Delaware UCC 1 #41424714 filed by Dell Financial Services, L.P. against Cellu LLC on May 21,2004. 

  

	39.	Delaware UCC 1 #41424722 filed by Dell Financial Services, L.P. against Cellu LLC on May 21,2004. 

  

	40.	Delaware UCC 1 #41424755 filed by Dell Financial Services, L.P. against Cellu LLC on May 21,2004. 

  

	41.	Delaware UCC 1 #41944299 filed by Dell Financial Services, L.P. against Cellu LLC on July 12, 2004. 

  

	42.	Delaware UCC 1 #42922591 filed by Dell Financial Services, L.P. against Cellu LLC on October 18, 2004. 

  

	43.	Delaware UCC 1 #43242155 filed by Dell Financial Services, L.P. against Cellu LLC on November 17, 2004. 

  

	44.	Delaware UCC 1 #40644858 filed by Transamerica Equipment Financial Services against Cellu LLC on March 5, 2004. 

  

 43 

	45.	Connecticut UCC 1 #0002135148 filed by Toyota Motor Credit Corporation against Cellu LLC on May 6, 2002. 

  

	46.	Connecticut UCC 1 #0002143280 filed by Toyota Motor Credit Corp. against Cellu LLC on June 18, 2002. 

  

	47.	Connecticut UCC 1 #0002157333 filed by Toyota Motor Credit Corp. against Cellu LLC on September 4, 2002. 

  

	48.	Connecticut UCC 1 #0002182531 filed by Toyota Motor Credit Corp. against Cellu LLC on January 27, 2003. 

  

	49.	Connecticut UCC 1 #0002211620 filed by Toyota Motor Credit Corp. against Cellu LLC on June 26, 2003. 

  

	50.	Connecticut UCC 1 #0002284370 filed by Toyota Motor Credit Corp. against Cellu LLC on August 16, 2003. 

  

	51.	Delaware UCC 1 #40729386 filed by The Bank of New York against Natural Dam on March 16, 2004. 

  

	52.	Delaware UCC 1 #40729535 filed by The CIT Group/Business Credit, Inc. against Natural Dam on March 16, 2004. 

  

	53.	St. Lawrence County, NY UCC 1 #2004-00004898 filed by The Bank of New York against Natural Dam on March 19, 2004 (fixture filing). 

  

	54.	St. Lawrence County, NY UCC 1 #2004-00006048 filed by The CIT Group/Business Credit, Inc. against Natural Dam on April 5, 2004 (fixture filing).

  

	55.	St. Lawrence County, NY UCC 2 #2001-00006771 filed by Wire Tech Inc. against Natural Dam on April 19, 2001 (mechanic’s lien). 

  

	56.	Delaware UCC 1 #40729600 filed by The Bank of New York against Neenah on March 16, 2004. 

  

	57.	Delaware UCC 1 #40729758 filed by The CIT Group/Business Credit, Inc. against Neenah on March 16, 2004. 

  

	58.	Delaware UCC 1 #30803463 filed by Toyota Motor Credit Corporation against Neenah on March 28, 2003. 

  

	59.	Delaware UCC 1 #40939993 filed by Toyota Motor Credit Corporation against Neenah on April 3, 2004. 

  

	60.	Delaware UCC 1 #41485111 filed by Toyota Motor Credit Corporation against Neenah on May 28, 2004. 

  

 44 

	61.	Winnebago County, WS UCC 1 #1302640 filed by The Bank of New York against Neenah on March 22, 2004 (fixture filing). 

  

	62.	Winnebago County, WS UCC 1 #1302640 filed by The CIT Group/Business Credit, Inc. against Neenah on March 24, 2004 (fixture filing). 

  

	63.	Mississippi UCC 1 #20040046234G filed by The Bank of New York against Coastal Paper on March 17, 2004. 

  

	64.	Mississippi UCC 1 #20040048096E filed by The CIT Group/Business Credit, Inc. against Coastal Paper on March 19, 2004. 

  

	65.	Mississippi UCC 1 #20020054639L filed by Deere Credit Inc. against Coastal Paper on April 18, 2002. 

  

	66.	Virginia UCC 1 #040317-7425-6 filed by The Bank of New York against Coastal Paper on March 17, 2004. 

  

	67.	Virginia UCC 1 #040317-7429-4 filed by The CIT Group/Business Credit, Inc. against Coastal Paper on March 17, 2004. 

  

	68.	Stone County, MS, Book 251, Page 335, filed by The Bank of New York against Coastal Paper on March 26, 2004 (fixture filing). 

  

	69.	Stone County, MS, Book 252, Page 288, filed by The CIT Group/Business Credit, Inc. against Coastal Paper on April 2, 2004 (fixture filing).

  

	70.	Stone County, MS, Book 251, Page 616, filed by The Bank of New York against Coastal Paper on March 23, 2004 (deed). 

  

	71.	Stone County, MS, Book 251, Page 639, filed by The CIT Group/Business Credit, Inc. against Coastal Paper on March 23, 2004 (deed). 

  

	72.	Stone County, MS, Book 253, Page 341, filed by The CIT Group/Business Credit, Inc. against Coastal Paper on May 3, 2004 (deed). 

  

	73.	Delaware UCC 1 #40729980 filed by The Bank of New York against Menominee on March 16, 2004. 

  

	74.	Delaware UCC 1 #40730061 filed by The CIT Group/Business Credit, Inc. against Menominee on March 16, 2004. 

  

	75.	Delaware UCC 1 #11433841 filed by Toyota Motor Credit Corporation against Menominee on November 9, 2001. 

  

	76.	Delaware UCC 1 #20063622 filed by Toyota Motor Credit Corporation against Menominee on January 9, 2002. 

  

 45 

	77.	Delaware UCC 1 #41491937 filed by Citibank, N.A. against Menominee on May 28, 2004. 

  

	78.	Michigan UCC 1 #D789411 filed by Weavexx Corporation against Menominee on June 25, 2001. 

  

	79.	Michigan UCC 1 #2003241370-2 filed by Caterpillar Financial Services Corporation against Menominee on December 18, 2003. 

  

	80.	Mississippi UCC 1 #20040046235H filed by The Bank of New York against Van Paper on March 17, 2004. 

  

	81.	Mississippi UCC 1 #20040048090G filed by The CIT Group/Business Credit, Inc. against Van Paper on March 19, 2004. 

  

	82.	Mississippi UCC 1 #01527352 filed by Coastal Paper Co. Wiggins Mill against Van Paper on May 24, 2001. 

  

	83.	Mississippi UCC 1 #20030055116E filed by TMCC against Van Paper on April 7, 2003. 

  

	84.	Mississippi UCC 1 #20030058950C filed by TMCC against Van Paper on April 11, 2003. 

  

	85.	Mississippi UCC 1 #20040128669K filed by Toyota Motor Credit Corporation against Van Paper on July 15, 2005. 

  

	86.	Mississippi UCC 1 #20040046228K filed by The Bank of New York against Van Timber on March 17, 2004. 

  

	87.	Mississippi UCC 1 #20040048094B filed by The CIT Group/Business Credit, Inc. against Van Timber on March 19, 2004. 

  

	88.	Canadian PPSA #600313491 filed by Lift Capital Corporation against Interlake. 

  

	89.	Canadian PPSA #612737046 filed by Lift Capital Corporation against Interlake on February 16, 2005. 

  

	90.	Canadian PPSA #612287919 filed by Lift Capital Corporation against Interlake on January 27, 2005. 

  

	91.	Canadian PPSA #612288108 filed by Lift Capital Corporation against Interlake on January 27, 2005. 

  

	92.	Canadian PPSA #612288117 filed by Lift Capital Corporation against Interlake on January 27, 2005. 

  

	93.	Canadian PPSA #612288126 filed by Lift Capital Corporation against Interlake on January 27, 2005. 

  

 46 

	94.	Canadian PPSA #611852634 filed by Lift Capital Corporation against Interlake on January 7, 2005. 

  

	95.	Canadian PPSA #611852706 filed by Lift Capital Corporation against Interlake on January 7, 2005. 

  

	96.	Canadian PPSA #605062855 filed by Dell Financial Services Canada Limited against Interlake on April 29, 2004. 

  

	97.	Canadian PPSA #603607464 filed by The Bank of New York against Interlake on March 8, 2004. 

  

	98.	Canadian PPSA #603607473 filed by The CIT Group/Business Credit, Inc. against Interlake on March 8, 2004. 

  

	99.	Canadian PPSA #895592781 filed by Lifton Limited against Interlake on June 19, 2003, as amended on August 8, 2003. 

  

	100.	Canadian PPSA #879393654 filed by CitiCapital Limited against Interlake on January 4, 2002. 

  

	101.	Canadian PPSA #879393672 filed by CitiCapital Limited against Interlake on January 4, 2002. 

  

	102.	Canadian PPSA #879393681 filed by CitiCapital Limited against Interlake on January 4, 2002. 

  

	103.	Canadian PPSA #862458777 filed by Newcourt Financial Ltd. against Interlake on June 2, 2000, as amended June 2, 2000. 

  

	104.	Canadian PPSA #858964113 filed by Xerox Canada Ltd. against Interlake. 

  

	105.	Canadian PPSA #613834065 filed by Xerox Canada Ltd. against Interlake on April 1, 2005. 

  

	106.	Canadian PPSA #7928040 filed by The Bank of New York against Interlake on March 11, 2004. 

  

	107.	Canadian PPSA #7928059 filed by The CIT Group/Business Credit, Inc. against Interlake on March 11,2004. 

  

	108.	District of Columbia UCC 1 #2004036669 filed by The Bank of New York against Interlake on March 16, 2004. 

  

	109.	District of Columbia UCC 1 #2004036689 filed by The CIT Group/Business Credit, Inc. against Interlake on March 16, 2004. 

  

	110.	Connecticut UCC 1 filed by The CIT Group/Business Credit, Inc. against Interlake. 

  

 47 

	111.	Canadian PPSA #619136082 filed by Liftcapital Corporation against Interlake (no date indicated). 

  

	112.	Canadian PPSA #613834965 filed by Xerox Canada Ltd. against Interlake (no date indicated). 

  

	113.	Stone County, MS, Book 225, Page 397, filed by Ableco Finance LLC against Coastal Paper on October 22, 2002. 

  

	114.	Delaware UCC 1 #51966218 filed by Toyota Motor Credit Corporation against CTH on June 27, 2005. 

  

	115.	Mississippi UCC 1 #20060010345B filed by Toyota Motor Credit Corporation against Van Paper on January 18, 2006. 

  

	116.	Canadian PPSA #871482159 filed by Astenjohnson, Inc. against Interlake (no date indicated). 

  

	117.	Mississippi UCC 1 #20060010345B filed by Toyota Motor Credit Corporation against Van Paper on January 18, 2006. 

  

 48 

	118.	No. 40 Forbes Street, East Hartford, Connecticut 

 See exceptions set forth in each of the attached Schedule B of the Chicago Title Insurance Company title insurance policies, dated March 17, 2004, issued to The Bank of New York and to The CIT
Group/Business Credit, Inc. with respect to the property. 
  

 49 

	119.	144 First Street, Menominee, Michigan 

 See exceptions set forth in each of the attached Schedule B of the Chicago Title Insurance Company title insurance policies, dated March 17, 2004, issued to The Bank of New York and to The CIT Group/Business Credit, Inc. with respect
to the property. 
  

 50 

	120.	1321 South Magnolia Drive, Wiggins, Mississippi 

 See exceptions set forth in each of the attached Schedule B of the Chicago Title Insurance Company title insurance policies, dated March 23, 2004, issued to The Bank of New York and to The CIT Group/Business Credit, Inc. with respect
to the property. 
  

 51 

	121.	4921 Route 58 North, Gouverneur, New York 

 See exceptions set forth in each of the attached Schedule B of Ticor Title Insurance Company title insurance policies, dated March 22, 2004, issued to The Bank of New York and to The CIT Group/Business Credit, Inc. with respect to the
property, except for that certain ground lease between James River Paper Company, Inc., as Lessor and Kamine/Besicorp Natural Dam L.P. as lessee, dated November 1991, as amended. 
  

 52 

	122.	249 North Lake Street, Neenah, Wisconsin 

 See exceptions set forth in each of the attached Schedule B of First American Title Insurance Company title insurance policies, dated March 24, 2004, issued to The Bank of New York and to The CIT Group/Business Credit, Inc. with
respect to the property. 
  

 53 

	123.	45 Merritt Street, St. Catherines, Ontario, Canada 

 See exceptions set forth in each of the attached Schedule B of the Chicago Title Insurance Company title insurance policies, dated March 12, 2004, issued to The Bank of New York and to The CIT
Group/Business Credit, Inc. with respect to the property. 
  

 54 

 Schedule 4.9 
 Employee Benefit Plans 
 Section 4.9(a) 
  

	1.	Cellu Tissue Holdings, Inc. Retirement and Investment Plan, as amended. 

  

	2.	Menominee Paper Company Group Health Plan (self-funded). 

  

	3.	Cellu Tissue Holdings, Inc. Group Health Plan (Health Care Plus Plan) (insured by Anthem BCBS). 

  

	4.	Cellu Tissue Holdings, Inc. Group Health Plan (Health Care Basic Plan) (insured by Anthem BCBS). 

  

	5.	Natural Dam Mill Medical Plan (insured by Group Health Incorporated). 

  

	6.	Cellu Tissue Holding, Inc. Dental Group Insurance Plan (self-insured; administered by Guardian). 

  

	7.	Cellu Tissue Holdings, Inc. Group Life and Accidental Death and Dismemberment Insurance (Standard Insurance Company). 

  

	8.	Cellu Tissue Holdings, Inc. Group Long Term Disability Plan (Standard Insurance Company). 

  

	9.	Interlake Acquisition Corporation Limited Class A Group Insurance Program (Industrial Alliance Insurance and Financial Services, Inc.). 

 

	10.	Interlake Acquisition Corporation Limited Class B Group Insurance Program (Industrial Alliance Insurance and Financial Services, Inc.). 

  

	11.	Interlake Acquisition Corporation Limited Class C Group Insurance Program (Industrial Alliance Insurance and Financial Services, Inc.). 

  

	12.	Group Retirement Savings Plan for Interlake Acquisition Corporation Limited (Policy/Plan # 62521) 

  

	13.	Interlake Acquisition Corporation Limited – Group Health Insurance Policy Booklet for Salaried Employees, Class C Long Term Disability Plan (Healthsource Plus/SSQ
Financial Group Policy #34B30). 

  

	14.	Interlake Acquisition Corporation Limited – Group Health Insurance Policy Booklet for Hourly Employees Class A Short & Long Term Disability Plan
(Healthsource Plus/SSQ Financial Group Policy #34B30). 

  

	15.	Interlake Acquisition Corporation Limited – Group Insurance Benefits Plan- Class C Salaried Employees Plan Description Booklet, as supplemented (Industrial
Alliance Policy G23362). 

  

 55 

	16.	Interlake Acquisition Corporation Limited – Group Insurance Benefits Plan- Class A Hourly Employees Plan Description Booklet, as supplemented (Industrial
Alliance Policy G23362). 

  

	17.	Cellu Tissue Corporation Group Benefit Plan, Long Term Disability Certificate (Hartford Life and Accident Insurance Company). 

  

	18.	Cellu Tissue Corporation Group Benefit Plan, Supplemental Life and Supplemental Dependent Life Insurance Certificate (Hartford Life and Accident Insurance Company).

  

	19.	Cellu Tissue Corporation Life Insurance Benefits Plan Certificate (The United States Life Insurance Company in the City of New York). 

  

	20.	Cellu Paper Holdings, Inc. 2001 Stock Incentive Plan. 

  

	21.	Supplemental Retirement Agreement with Thomas E. Gallagher, dated as of September 29, 1992. 

  

	22.	Supplemental Retirement Agreement with Thomas E. Gallagher, dated as of May 9, 1996. 

  

	23.	Separation Agreement with Thomas E. Gallagher, dated as of February 3, 2003. 

  

	24.	See Schedule 4.10(a)(i) for a list of currently effective employment agreements. 

  

	25.	Sick leave policy. 

  

	26.	Vacation policy. 

  

	27.	Short term disability policy. 

  

	28.	Premium conversion plan. 

  

	29.	Coastal Paper Company Employee Policy Booklet. 

  

	30.	Coastal Paper Operating Rules and Policies, effective as of February 7, 2006. 

  

	31.	Cellu Tissue Corporation Hourly Employee Policy & Benefits Handbook. 

  

	32.	Cellu Tissue Corporation Salaried Employee Policy & Benefits Handbook. 

  

	33.	Cellu Tissue Holdings, Inc. Corporate Policy and Procedure Handbook. 

  

	34.	Interlake Paper Policy Manual. 

  

	35.	Menominee Paper Company Policies and Procedures. 

  

	36.	Menominee Paper Company Salaried Policies and Procedures. 

  

	37.	Cellu Tissue, Natural Dam Mill Policies. 

  

 56 

	38.	Cellu Tissue Neenah, WI Mill Policies and Procedures. 

  

	39.	Interlake Group Retirement Services Plan No. 62521. 

  

	40.	Cellu Tissue Holdings, Inc. Severance Pay Plan. 

  

	41.	Any deferred compensation plan, incentive compensation plan, welfare plan and any other employee benefit plan, fund, program, agreement or arrangement referred to in
any employee handbook or manual referenced in this Schedule 4.9(a) or the collective bargaining agreements referenced in Schedule 4.10(a)(ii) below. 

  

	42.	Cellu Tissue Holdings, Inc. Fiscal Year 2007 Bonus Program. 

  

	43.	Cellu Tissue Holdings, Inc. Fiscal Year 2006 Bonus Program. 

  

	44.	Consulting, Separation and Release of Claims Agreement, effective March 1, 2005, between CTH and Julius Nagy. 

  

	45.	Severance Agreement, dated February 10, 2006, between CTH and Martha McManus. 

  

	46.	Severance Agreement, dated October 10, 2005, between CTH and Thomas Moore. 

  

	47.	Interlake Acquisition Corporation Limited Group Insurance Policy, effective May 1, 2003. (Industrial Alliance Policy G23362) 

 Section 4.9(b) 
 None. 
 Section 4.9(c)(vii) 
 Three former employees who are eligible for, and are currently receiving benefits under, the company’s long-term disability plan have continued to be treated as eligible for, and have received benefits under, the company’s medical
plan (and have been paying the active employee premium on an after-tax basis). 
  

 57 

 Schedule 4.10(b) 
 Material Contracts; Unenforceable 
 None. 
  

 58 

 Schedule 4.11 
 Compliance With Law 
 Cross reference is hereby made to Schedule 4.16.

  

	1.	There was an OSHA citation issued for the Connecticut facility, OSHA Citation No. 306412727, dated July 8, 2004 in connection with an OSHA inspection at the
mill. An informal settlement agreement was reached and all citation items were abated. 

  

	2.	Cross reference is hereby made to Schedule 4.12 Items 6-11. 

  

	3.	Cross reference is hereby made to Schedule 4.14 Item 5 and Item 4. 

  

 59 

 Schedule 4.12 
 Labor Matters 
 Labor Unions 
  

	1.	Agreement, dated as of December 14, 2004, by and between Menominee and Paper, Allied/Industrial, Chemical and Energy Workers International Union, AFL-CIO-CLC and
Affiliated Local No. 7-0172, Menominee, Michigan. 

  

	2.	Agreement, dated November 1, 2004, by and between Natural Dam and the Union, Paper, Allied- Industrial, Chemical and Energy Workers International Union (PACE),
AFL-CIO-CLC, and its Local Union 1-0687. 

  

	3.	Agreement, dated August 5, 2002, by and between Neenah and the Paper, Allied/Industrial, Chemical and Energy Workers International Union, AFL-CIO-CLC and its
Affiliated Local Number 7-0482. 

  

	4.	Trade Union Agreement 2005-2010, dated August 19, 2005, by and between Interlake and Independent Paperworkers of Canada – Local 124. 

 

	5.	The United Steel Workers of America represents certain groups of employees at the Coastal Paper Company mill in Wiggins, MS. Negotiations for the initial collective
bargaining agreement commenced on March 15, 2006 and are ongoing. 

 Grievances 
  

	6.	Attached are the 2002, 2003, 2004, 2005 and 2006 grievance logs for Menominee, grievance logs for Neenah, and grievance logs for Interlake. 2002 Interlake grievance
logs not attached. 

  

	7.	On July 21, 2005, a charge was filed against Coastal, alleging retaliation for an employee’s union involvement. November 1, 2005, following an
investigation, the charge was withdrawn. 

  

	8.	A grievance was filed at Interlake for not promoting an employee. 

 For informational purposes only: 
  

	9.	On February 26, 2001, Paper, Allied Industrial, Chemical and Energy Workers International Union (“PACE”) filed a charge with NLRB alleging refusal to
follow vacation pay policy. This matter was settled with no damages. 

  

	10.	PACE filed a charge with NLRB alleging the discipline of Jason Wollman in violation of the National Labor Relations Act. PACE also filed a charge with NLRB alleging the
termination of Vern Patrie in violation of the National Labor Relations Act. This matter was settled with no damages. 

  

 60 

	11.	PACE sued Cellu Tissue Corporation in a United States District Court alleging violation of Section 301 of the Labor Management Relations Act, seeking unspecified
compensatory damages, wages, benefits and interest. This matter was settled with no damages. 

  

 61 

 Schedule 4.13 
 Insurance 
  

			
	 Type of Policy
	  	 Policy Particulars

	General Liability	  	Description: General Liability Policy#TC2JGLSA-281D262A-TIL-05 with Travelers Indemnity Company of IL.
		
	Canadian General Liability	  	Description: General Liability Policy #233D0537 with Travelers Casualty and Surety Company of Canada.
		
	Automobile	  	Description: Automobile Liability and Physical Damage for Owned, Hired and Non-Owned Autos Policy #TJCAP-281D2631-TIL-05 with St. Paul Travelers.
		
	Canadian Automobile	  	Description: Automobile Policy #233D04549 with St. Paul Travelers.
		
	Property Policy	  	Description: Property Policy #XG410 with Factory Mutual Global.
		
	Workers’ Compensation	  	Description: Workers’ Compensation Policies #TC2HUB-281D256-3-05 (Deductible) and TRJUB-281D264-3-05 (Retro) with Travelers Property Casualty Company of America and The
Phoenix.
		
	Canadian Property Policy	  	Description: Property Policy #XG411 with FM Global.
		
	Umbrella Policy	  	Description: Umbrella Policy #UUO (06) 52 95 10 55 with Ohio Casualty Group.
		
	Excess Umbrella	  	Description: St. Paul Fire & Marine Umbrella/Excess Policy #QI09001747 with St. Paul Fire & Marine Insurance Company.
		
	Foreign Package	  	Description: Foreign Package Policy #PHF070498 with ACE USA.
		
	Director and Officer	  	Description: Director and Officer Policy #14-MGU-05-AI1222 with US Specialty.
		
	First Excess D&O	  	Description: Excess D&O Policy #21677486001 with ACE American Insurance Company.
		
	Second Excess D&O	  	Description: Excess D&O Policy #DFX 0009843 with Great American.
		
	Crime, Kidnap & Ransom and Extortion	  	Description: Policy #6802-7465 with Chubb.
		
	Fiduciary	  	Description: Fiduciary Policy #1A1408213-05 with The Hartford.

  

 62 

 Schedule 4.14 
 Litigation 
  

	1.	Paul Krueger v. Menominee Acquisition and others, Circuit Court of Menominee, Case No. 04- 11052-NO. Krueger, an employee of Wisconsin Central Ltd., alleges he was
injured when an overhead door on the Company’s property unexpectedly closed on him. The Company’s insurance provider at the time of the incident, Liberty Mutual, is handling matter. 

  

	2.	John Hodges v. Cellu Tissue Holdings, Case No. 05CV1425, alleges that the Company failed to pay him for a bonus he claims that he was entitled to in the amount of
$18,000.00. The Company has hired counsel and is disputing the claim. 

  

	3.	Steve Dolin, a former employee of Cellu Tissue Holdings, Inc., was terminated on November 10, 2005. Dolin, through counsel, claims that he is entitled to
$27,500.00 for his fiscal year 2006 bonus and $7,500.00 for unused vacation. The Company denies that Dolin is entitled to any bonus under the Company’s bonus plan and that most, if not all, of any unused vacation pay is subject to set-off
against the outstanding balance on his Corporate American Express card. The last communication with Dolin’s counsel was on February 3, 2006. 

  

	4.	Peter C. Pettis v. Cellu Tissue, CHRO No. 0540495; EEOC No. 16AA501413 filed June 15, 2005. Pettis, a former employee at the East Hartford mill dual
filed a charge of discrimination with State of Connecticut Commission on Human Rights and Opportunities and the Equal Employment Opportunity Commission alleging that he was terminated due to his age, 57, in violation of the Age Discrimination in
Employment Act. The matter is currently under investigation by the CCHRO. 

  

	5.	The U.S. Department of Labor – Occupational Safety and Health Administration (“OSHA”) cited Cellu Tissue Corporation – Natural Dam on
February 23, 2006 for certain violations and imposed a proposed aggregate penalty of $166,700.00. The Company filed a timely Notice of Contest on March 13, 2006 contesting all the items and penalties alleged in the Citation. On
March 31, 2006 the Secretary of Labor filed a motion for an extension of time to file a Motion of Complaint up to and including May 18, 2006. On April 27, 2006, a notice setting the date for a settlement conference was filed setting
the such date for June 6, 2006. 

  

	6.	Kimberly Clark Corporation (“K-C”) has requested the Company cease using certain parking spaces in the K-C parking lot located near the Company’s Neenah
Mill, which the Company’s been using pursuant to a letter agreement between K-C and American Tissue Mills of Neenah LLC, the Company’s predecessor in interest at the Neenah Mill. K-C has threatened to take legal action if the Company does
not cease using the parking spaces. 

  

	7.	Edwin Thompson, a former employee at the East Hartford mill died in 2000 as a result of an infection he developed in the hospital after his workplace injury. His
survivors have not brought a wrongful death action against Cellu Tissue Corporation. 

  

 63 

 Schedule 4.15 
 Governmental Authorizations and Regulations 
 Cross reference is
hereby made to Schedule 4.16. 
  

 64 

 Schedule 4.16 
 Compliance with Environmental Requirements 
 I. All facts, matters,
items, information and issues disclosed, discussed or identified to Parent in connection with its due diligence environmental assessments relating to transactions contemplated by the Agreement, including, without limitation, the following:

  

	1.	Environmental Review of Cellu Tissue Corporation, East Hartford, Connecticut, prepared by Environ International Corporation, dated April 2006 

 

	2.	Environmental Review of Cellu Tissue Holdings, Inc., 4921 Highway 58, Gouverneur, New York, prepared by Environ International Corporation, dated April 2006

  

	3.	Environmental Review of Cellu Tissue Holdings, Inc., 71 Prospect Street, Gouverneur, New York prepared by Environ International Corporation, dated April 2006

  

	4.	Environmental Review of Cellu Tissue Holdings, Inc., Neenah, Wisconsin, prepared by Environ International Corporation, dated April 2006 

  

	5.	Environmental Review of Coastal Paper Company, Wiggins, Mississippi, prepared by Environ International Corporation, dated April 2006 

  

	6.	Environmental Review of Interlake Paper, St. Catharines, Ontario, prepared by Environ International Corporation, dated April 2006 

  

	7.	Environmental Review of Menominee Paper Company, Menominee, Michigan, prepared by Environ International Corporation, dated April 2006 

 II. All facts, matters, items, information and issues disclosed, discussed or identified in the following: 
 East Hartford, Connecticut Facility: 
  

	1.	Phase I Environmental Site Assessment Report for Cellu-Tissue Facility located at 2 Forbes Street, East Hartford, Connecticut, prepared by Clayton Group Services for
The CIT Group, Inc., dated July 25, 2002 

  

	2.	State of Connecticut Department of Environmental Protection Notice of Violation to Cellu Tissue Corporation concerning 2 Forbes Street, East Hartford, Connecticut,
dated June 24, 2002 

  

	3.	 Draft letter from Environmental Risk Limited to Mr. Maurice Hamel, Permitting, Enforcement, and Remediation Division, Connecticut Department of
Environmental Protection, concerning Cellu Tissue Corporation, 2 Forbes Street, East Hartford, Connecticut, dated May 18, 1998 and the attachments thereto pertaining to site assessment work conducted at the site in 1998 by

  

 65 

	 	 
Environmental Risk Limited in support of a Form III filing with the Connecticut Department of Environmental Protection’s Property Transfer Program. Cellu Tissue has retained Environmental
Risk Limited to complete the site assessment work and the preparation and recording of an Environmental Land Use Restriction to address residual total petroleum hydrocarbon contamination present in isolated and inaccessible soils at the site.

  

	4.	Phase I and II Environmental Site Assessment Update and Environmental Compliance Survey, 2 Forbes Street Property, East Harford, Connecticut, prepared by Environmental
Risk Limited for Cellu Tissue Corporation, dated March 1995 

  

	5.	Letter from United States Environmental Protection Agency, Region 1, addressed to Cellu Tissue Corporation, re: Request for Information Pursuant to Section 104 of
CERCLA for the National Oil Services Superfund Site located in West Haven, Connecticut, dated April 14, 2000 

  

	6.	Letter from Thomas Harrison addressed to Ms. Martha Bosworth, Enforcement Coordinator, Search and Cost Recovery Section, Office of Site Remediation &
Restoration, U.S. Environmental Protection Agency, re: National Oil Services Superfund Site, West Haven CT: Responses of Cellu Tissue Corporation, dated June 12, 2000 

  

	7.	Over the last three years, the facility has experienced failures of its effluent toxicity screen that required to be conducted pursuant to the facility’s NPDES
permit. However, each re-screen of the effluent, as allowed by the NPDES permit, has been successful. 

  

	8.	The State of Connecticut Department of Environmental Protection Notice of Violation issued to Cellu-Tissue L.L.C. on December 28, 2005 

  

	9.	Letter from Cellu Tissue Corporation to Colette Ready, DEP Bureau of Water Mgmt., dated January 11, 2006 

  

	10.	Letter from Environmental Partners, LLC to Mr. Jeffrey Chandler, Department of Environmental Protection, re: Cellu Tissue Corporation, 2 Forbes Street, East
Hartford, CT, Stream Channel Remedial Excavation Plan, dated February 16, 2006 

 Ontario, Canada Facility:

  

	11.	Phase I Environmental Site Assessment of Interlake Paper Company, 45 Merritt Street, St. Catharines, Ontario, Canada prepared by Clayton Group Services for The CIT
Group, Inc., dated July 29, 2002 

  

	12.	Updated Phase I Environmental Site Assessment for Kimberly-Clark Inc., St. Catharines, Ontario, prepared by Beak International Incorporated, dated November 1996

  

	13.	On January 10, 2004, a chemical named Bubond 177 was accidentally pumped into the facility’s fuel tanks by the facility’s supplier and burned into the
facility’s boilers. This incident was reported to the Ministry of the Environment (“MOE”). 

  

 66 

	14.	On June 7-8, 2004, the MOE received an odor complaint from a neighbor of the facility. A representative of the MOE inspected the facility and determined the likely
source of the odor to be the facility’s emergency pond. The facility and the MOE agreed on a plan to abate the odor and that plan was subsequently implemented at the facility. 

  

	15.	On June 24, 2004, the facility received an odor complaint from a neighbor, Mrs. Fox. Facility personnel inspected the facility to determine the source of the
odor, but no odor was detected at the facility. The likely source of the odor was determined to be an off-site garbage dump. This incident was reported to the MOE. 

  

	16.	On July 16, 2004, the facility received an odor complaint from a neighbor, Mrs. Fox. Facility personnel inspected the facility to determine the source of the
odor, but no odor was detected at the facility. This incident was reported to the MOE. 

  

	17.	On September 6, 2004, the facility and the MOE received an odor complaint from a neighbor of the facility. The likely source of the odor was identified to be a
chemical named Drisol NC used at the facility. The facility and the MOE agreed on a plan to abate that odor and that plan was subsequently implemented at the facility. 

  

	18.	On September 12, 2004, the facility received an odor complaint from a neighbor, Mrs. Fox. Facility personnel inspected the facility to determine the source of
the odor, but the odor described by Mrs. Fox was not detected at the facility. 

  

	19.	On September 21, 2004, the facility received an odor complaint from a neighbor, Mrs. Fox. Facility personnel inspected the facility to determine the source of
the odor, but the odor described by Mrs. Fox was not detected at the facility. 

  

	20.	On October 29, 2004, an oil sheen was identified on the surface of water in a trough at the facility’s #2 pond. Facility personnel cleaned up the oil sheen
and determined that the likely source of the oil sheen was a vehicle leaking gasoline or oil parked at the facility’s steam plant ramp. The incident was reported to the MOE and the City of St. Catharines. 

  

	21.	On January 15, 2005 and January 16, 2005, a sheen was detected on Old Welland Canal downstream of the facility’s effluent outfall. This incident was
reported to the MOE, Environment Canada, Niagara Region and the City of St. Catharines. At the request of the MOE, facility personnel cleaned up the sheen and retained a consultant who determined the likely source of the sheen to be leakage of
Busperse 2299 into the sewer system, insufficient levels of phosphorous in the facility’s aerated pond and diminished activity of bacteria in the aerated pond due to low outdoor temperatures. The leak was repaired and a phosphoric acid system
was installed in the pond. 

  

	22.	On March 29, 2005, the facility received a complaint from a neighbor about dust coming from the facility’s north parking lot and truck noise coming from the
facility’s shipping yard. The parking lot was subsequently swept to alleviate the dust and the facility made a request to the trucking company to alleviate the noise from its trucks. 

  

 67 

	23.	On April 6-7, 2005, a sheen was detected on Old Welland Canal downstream of the facility’s effluent outfall. This incident was reported to the MOE,
Environment Canada, Niagara Region and the City of St. Catharines. The likely source of the sheen was determined to be a leak in a chemical line containing Buspere 2299. The leak in the line was repaired and a consultant was retained to clean up the
sheen. 

  

	24.	On April 25, 2005, the MOE received a complaint from a neighbor of the facility about foam coming out of the facility’s outfall. Defoamer was applied to
control the foam. 

  

	25.	A neighbor of the facility contacted the facility about noise from trucks at the facility. The facility has not received any truck noise complaints since trailer
hitching operations were moved to the back of the facility. 

 Menominee, Michigan Facility: 
  

	26.	Phase I Environmental Site Assessment of Menominee Paper Company, 144 First Street, Menominee, Michigan, prepared by Clayton Group Services for The CIT Group, Inc.,
dated July 29, 2002 

  

	27.	Supplement to Addendum of Environmental Audit of the Menominee Paper Company, Menominee, Michigan, prepared by RMT, Inc., dated April 1992 

  

	28.	Addendum to Environmental Audit of the Menominee Paper Company, Menominee, Michigan, prepared by RMT, Inc., dated September 1991 

  

	29.	Environmental Audit of the Menominee Paper Company, Menominee, Michigan, prepared by RMT, Inc., dated March 1991 

  

	30.	In or about December 2002, mercury was spilled at the facility and cleaned up using absorbent materials. The absorbent materials were picked up by Waste Disposal, Inc.
and disposed of in the Michigan Environs, Inc. landfill on or about January 3, 2003. Waste Management, Inc. and the Michigan Department of Environmental Quality were notified of the incident. The Michigan Department of Environmental Quality
advised Waste Management, Inc. that no further action was required with respect to this incident. 

 Wiggins, Mississippi
Facility: 
  

	31.	Phase I Environmental Site Assessment for Coastal Paper Company, 1321 South Magnolia Drive, Wiggins, Mississippi, prepared by Clayton Group Services for The CIT Group,
Inc., dated July 24, 2002 

  

	32.	Remedial Action Report for Coastal Paper Company, 1321 South Magnolia Drive, Wiggins, Mississippi, prepared by Professional Service Industries, Inc. for Cellu Tissue
Corporation, dated October 1996 

  

 68 

	33.	Draft Additional Phase II Site Investigation and Compliance Report of the Coastal Paper Company, 1321 South Magnolia Drive, Wiggins, Mississippi, prepared by
Environmental Protection Systems, Inc., for Cellu Tissue Corporation, dated June 1995 

  

	34.	Phase II Site Investigation of the Coastal Paper Company, 1321 South Magnolia Drive, Wiggins, Mississippi, prepared by Environmental Protection Systems, Inc., for Cellu
Tissue Corporation, dated May 15, 1995 

  

	35.	Engineering Report for a Phase I Environmental Site Assessment of the Coastal Paper Company, 1321 South Magnolia Drive, Wiggins, Mississippi, prepared by Environmental
Protection Systems, Inc., for Cellu Tissue Corporation, dated April 1995 

  

	36.	Semi-Annual Corrective Action Monitoring Report, Timco, Inc., Wiggins, Mississippi, prepared by Pine Belt Environmental, Inc., dated September 3, 2003

  

	37.	On October 31, 2003, effluent was discharged from the facility’s outfall into a dry creek due to an equipment problem. The equipment problem was subsequently
corrected and the Mississippi Department of Environmental Quality (“MDEQ”) was notified of this incident. The MDEQ determined that no further action was required with respect to this incident. 

  

	38.	On or about April 30, 2004, the facility submitted an application for the renewal of its NPDES Permit No. MS0033057 which expired on October 30, 2004. The
facility submitted its renewal application within the time frame required by the MDEQ. MDEQ is still gathering information pertaining to the permit application. Once MDEQ’s information gathering is completed, it is expected that MDEQ will
schedule a public hearing on the permit. 

  

	39.	On or about July 4-5, 2004, effluent was discharged from the facility’s outfall into a dry creek due to a power company power failure. The facility notified
the MDEQ of this incident and implemented process modifications to prevent such discharges in the event of a future power failure. 

  

	40.	On July 30, 2004, Coastal Paper Company entered into an Agreed Order with the Mississippi Commission on Environmental Quality related to violations of the
facility’s NPDES permit that occurred in March 2003. Pursuant to that Agreed Order, Coastal Paper Company paid a penalty of $25,000 to the MDEQ. 

  

	41.	On February 2, 2005, the facility experienced an overflow from its effluent basin onto surrounding land. The overflow was attributed to heavy rains and the
construction of a warehouse at the facility that did not yet have a roof that caused rain water to drain into the facility’s effluent basin. The MDEQ was notified of this incident. 

  

	42.	A neighbor of the facility has complained to MDEQ about the facility’s sprayfields. In response to those complaints, the MDEQ undertook testing of the
facility’s effluent and sprayfields and determined that those complaints were without merit. 

  

 69 

	43.	A neighbor of the facility contacted the facility about a sulfur odor. The facility has been unable to establish that any such odor is coming from its operations

 Gouverneur, New York Facility: 
  

	44.	Phase I Environmental Site Assessment Report for 71 Prospect Street in Gouverneur, New York, prepared by Clayton Group Services for The CIT Group, Inc., dated
July 25, 2002 

  

	45.	Phase I Environmental Site Assessment Report for 4921 State Highway 58 in Gouverneur, New York, prepared by Clayton Group Services for The CIT Group, Inc., dated
July 25, 2002 

  

	46.	Environmental Site Assessment of The Fonda Group, Inc. – Natural Dam Division, Gouverneur, New York, prepared by Environmental Risk Limited for Cellu Tissue
Corporation, dated March 1998 

  

	47.	On February 15, 2005, the facility notified USEPA that it had not submitted SARA Title III – Sections 311 & 312 – Hazardous Chemical Inventory
Reports from the 1998-2003 operating period to the applicable state and local regulatory agencies. On February 15, 2005, the facility submitted those reports to USEPA. On May 19, 2005, USEPA issued a determination that the Company meets
the conditions of the USEPA’s Audit Policy for 100% waiver of total gravity- based penalties of $28,500 that could have been imposed on the Company for this matter. 

 Neenah, Wisconsin Facility: 
  

	48.	Phase I Environmental Site Assessment and Environmental, Health and Safety Compliance Evaluations, prepared by InteGreyted Consultants, LLC, for Cellu Tissue
Corporation, dated May 2002 

  

	49.	Follow Up Letter to Steven C. Catalfamo, Vice President, American Tissue Corporation from Jeffrey P. Bibeau, Tighe & Bond, Inc., regarding Review of
Environmental Health and Safety Assessment, Lakeview Facility – Neenah, WI, dated September 12,1996 

  

	50.	Letter to Steven C. Catalfamo, Vice President, American Tissue Corporation from Thomas C. Couture,Tighe & Bond, Inc., regarding Review of Environmental Health
and Safety Assessment, Lakeview Facility – Neenah, WI, dated August 1, 1996 

  

	51.	Environmental Health and Safety Assessment, Lakeview Mill and Associated Properties, prepared by ERM-Northeast, Inc., for Kimberly-Clark, dated February 1996

  

	52.	On March 16, 2001, liquid dye was released into the facility’s clarifier and into an adjacent lake. Corrective action was taken to reduce the amount of dye
released to the lake and the facility notified the Wisconsin Department of Natural Resources (“WDNR”) of the incident. 

  

 70 

	53.	On March 11, 2003, elevated opacity in a plume from one of the facility’s boiler stacks was observed. The source of the elevated opacity was an equipment
problem that was subsequently corrected. The facility notified the WDNR of this incident. 

  

	54.	On April 27, 2003, white discoloration was observed in the facility’s clarifier and discharge to the lake. It was determined that the discoloration that was
likely to due to a material that had not settled properly. Corrective action was taken and this incident was reported to the WDNR. 

  

	55.	On June 19, 2003, red ink from equipment that was being washed was observed in the facility’s clarifier and effluent. Corrective action was taken to correct
the discoloration and prevent future occurrences and this incident was reported to the WDNR. 

  

	56.	On August 1, 2004, a hose clamp failed on piping resulting in the release of a chemical named ALK-54,to the facility’s clarifier and the lake. This incident
was reported to the WDNR and testing of the facility’s effluent was conducted at the WDNR’s request. No pH or chlorine permit exceedances occurred as a result of the release. 

  

	57.	On September 4, 2004, shredded poly materials were released to the facility’s clarifier and into the lake. Corrective actions were taken to remove the
majority of the materials from the clarifier before they were released to the lake. This incident was reported to the WDNR and, at the WDNR’s request, a written plan for preventing such incidents was submitted to the WDNR.

  

	58.	On December 16, 17, 21 and 28, 2004 and January 3, 4, 12, 17 and 19 2005 the facility experienced elevated opacity levels due to problems with some of the
facility’s boiler control equipment. The equipment was repaired and the WDNR was notified of those incidents. 

  

	59.	American Tissue, a former operator of the facility, failed to submit a SARA section 313 Form R and Form A reports for 2000. Following the acquisition of the facility by
Cellu Tissue, the facility submitted those reports in June 2003. 

  

	60.	On October 29 and 30, 2005, the facility experienced permit exceedances of visible boiler stack emission limits due to problems with some of the facility’s
boiler control equipment. The facility implemented corrective action and the WDNR was notified of these incidents and the corrective action that was taken. 

  

	61.	On November 16, 2005, Sodium Hypochlorite was released to Little Lake Buttes des Morts from the facility due to a pipe malfunction. The piping was repaired and the
facility notified WDNR of the incident. 

  

 71 

 Schedule 4.17 
 Brokers 
  

	1.	Fees pursuant to the Engagement Letter, dated as of December 8, 2004, between JP Morgan Securities, Inc. and the Company. 

  

	2.	Fees pursuant to the Engagement Letter, dated as of December 15, 2004, between William Blair & Company LLC and The Company. 

  

 72 

 Schedule 4.19 
 Related Party Transactions 
  

	1.	Cross reference is hereby made to Schedule 4.10 Items 104-126. 

  

 73 

 Schedule 4.23 
 Indebtedness 
  

	1.	Financing Agreement – Original principal amount of $30,000,000 ($0 outstanding) 

  

	2.	 9 3/4% Notes – Original principal amount of $162,000,000 

  

 74 

 Schedule 6.1 
 Approval of Company Stockholders 
  

	1.	Charterhouse Equity Partners III, L.P.; 

  

	2.	Chef Nominees Limited; 

  

	3.	Russell C. Taylor; 

  

	4.	Taylor Investment Partners; 

  

	5.	Steven Ziessler; and 

  

	6.	Dianne Scheu. 

  

 75 

 Schedule 6.2 
 Conduct of Business Prior to Effective Time 
  

	1.	The Company’s Board intends to adopt the FY 2007 Bonus Plan. 

  

	2.	The Company intends to pay the 2006 bonuses pursuant to the Company’s bonus plan. 

  

	3.	The Company will renew, or find alternative coverage to replace insurance policies expiring on May 20, 2006. 

  

	4.	The Company expects to incur expenses for the following material projects not included in the Capital Expenditure Budget: 

  

	 	•	 	 Recycled fiber modification at Coastal 

  

	 	•	 	 Cogen Plant at East Hartford 

  

	 	•	 	 Parisella Vincelli Productivity Project 

  

	 	•	 	 Measurex at Interlake 

  

	 	•	 	 Interlake No. 3 Trim Project (The Irving Paper customer) 

  

 76 

 Schedule 9.2(g) 
 Termination of Certain Agreements 
  

	1.	Stockholders Agreement, dated as of September 28, 2001, among Cellu Paper Holdings, Inc. (the “Company”), Charterhouse Equity Partners III, L.P.
(“CEP III”), Chef Nominees Limited (“Chef), WAHYAM Capital, LLC (“WAHYAM”) and the other parties listed therein. 

  

	2.	Amendment to Stockholders Agreement, dated as of September 30, 2002, among CEP III, Chef, WAHYAM, the Company and the other parties listed therein.

  

	3.	Supplemental Stockholders Agreement among the Company and Russell C. Taylor (Joinder to the Stockholders Agreement, dated as of September 28, 2001, as amended
September 30, 2002). 

  

	4.	Warrant Agreement, dated as of September 28, 2001, between the Company and the Warrantholders party thereto. 

  

	5.	Financial Advisory and Management Services Agreement, dated September 30, 2002, between Cellu Tissue Holdings, Inc. and Charterhouse Group International, Inc.

  

	6.	Engagement Letter, dated as of December 8, 2004, between JP Morgan Securities, Inc. and the Company, including acknowledgement by JP Morgan Securities, Inc. of
payment in full of all amounts due pursuant to the letter. 

  

	7.	Engagement Letter, dated as of December 15, 2004, between William Blair & Company LLC and The Company, including acknowledgement by William
Blair & Company of payment in full of all amounts due pursuant to the letter. 

  

	8.	Supplemental Stockholders Agreement, dated March 27, 2006 between the Company and Steven Ziessler (Joinder to the Stockholders Agreement, dated as of
September 28, 2001, as amended September 30, 2002). 

  

	9.	Supplemental Stockholders Agreement, dated March 27, 2006 between the Company and Dianne Scheu (Joinder to the Stockholders Agreement, dated as of
September 28, 2001, as amended September 30, 2002). 

  

 77 

 Schedule 9.2(h) 
 Repayment of Pre-Closing Indebtedness 
  

	1.	Any Indebtedness outstanding under the revolving credit facility with CIT (plus any prepayment fees). 

  

 78 

 Schedule 9.2(n) 
 Management Rollover 
 Rollover Shareholders: 
 Russell Taylor 
 Taylor Investment Partners

 Steven Ziessler 
 Dianne Scheu

  

 79 

 Schedule 9.2(p) 
 Other Agreements 
  

	1.	Employment Agreement between Russell Taylor and the Surviving Corporation. 

  

	2.	Employment Agreement between Steven Zeissler and the Surviving Corporation. 

  

	3.	Employment Agreement between Dianne Scheu and the Surviving Corporation. 

  

 80 

 Schedule 11.1 
 Certain Matters 
  

	1.	“Any liability for workers compensation in excess of the amount for which invoices have been received by the Company immediately prior to the Effective Time.”

  

	2.	Any liabilities arising from or with respect to the U.S. Department of Labor – Occupational Safety and Health Administration citation of 2/23/06 with respect to
Cellu Tissue Corporation – Natural Dam. 

  

	3.	Any liabilities arising from or with respect to the audits of the 2001 and 2003 Canadian tax returns of Interlake 

  

	4.	Any liabilities arising from or with respect to obligations to Thomas Gallagher under the following agreements: 

  

	 	152.	Separation Agreement, dated February 3, 2003, between Thomas Gallagher and CTH. 

  

	 	153.	Supplemental Retirement Agreement, dated May 9, 1996, between Thomas Gallagher and Coastal Paper. 

  

	 	154.	Supplemental Retirement Agreement, dated September 29, 1992, between Thomas Gallagher and Coastal Paper. 

  

	 	155.	Consulting and Release of Claims Agreement, dated February 3, 2003, between Thomas Gallagher and CTH. 

  

	5.	All liabilities arising from or with respect to The State of Connecticut Department of Environmental Protection Notice of Violation issued to Cellu-Tissue L.L.C. on
December 28, 2005. 

  

 81 

 Exhibit B 
 Former Company Stockholders 
 Charterhouse Equity Partners III, L.P.

 Chef Nominees Limited 
 Russell
Taylor 
 Taylor Investment Partners 
 WAHYAM Capital, LLC 
 Steven Ziessler 
 Dianne Scheu 
 Hugo Vivero 
 Kevin French 
 D’Arcy Schnekenburger 
 John McGrath 
 Zaya Oshana 
 Bert DeCal 
 Christopher Fiedler 
 Steve Simeone 
 Bob Sweitzer 
 Cameron Moyer 
 AG Capital Funding Partners, L.P.

 Deutsche Bank AG, Canada Branch 
 Deutsche Bank Trust Company Americas 
 Merrill Lynch Prime Rate Portfolio 
 Master Senior Floating Rate Trust 
 Debt
Strategies Fund, Inc. 
 Bank of America, N.A. 
 Dresdner Bank AG, New York and Grand 
 Cayman Branches 
 ARK II CLO 2001-1, Limited 
 Fortis Capital Corp.

 Exhibit 2.3(a)(2) 
 Form of Charter 

 STATE of DELAWARE  
 CERTIFICATE OF INCORPORATION 
 of 
 CELLU ACQUISITION CORPORATION 
 1. Name. The name of this corporation is Cellu Acquisition Corporation. 
 2. Registered Office. The registered office of this corporation in the State of Delaware is located at 2711 Centerville Road, Suite
400, in the City of Wilmington, County of New Castle. The name of its registered agent is Corporation Service Company. 
 3.
Purpose. The purpose of this corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of Delaware. 
 4. Stock. The total number of shares of stock that this corporation shall have authority to issue is three thousand
(3,000) shares of Common Stock, $.001 par value per share. Each issued and outstanding share of Common Stock shall be entitled to one vote. 
 5. Incorporator. The name and mailing address of the incorporator is: Jacquelyn Haws, c/o Ropes & Gray LLP, One Embarcadero Center #2200, San Francisco, CA 94111. 
 6. Change in Number of Shares Authorized. Except as otherwise provided in the provisions establishing a class of stock, the number of
authorized shares of any class or series of stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the voting power of the corporation entitled to
vote irrespective of the provisions of Section 242(b)(2) of the General Corporation Law of the State of Delaware. 
 7.
Election of Directors. The election of directors need not be by written ballot unless the by-laws shall so require. 
 8.
Authority of Directors. In furtherance and not in limitation of the power conferred upon the board of directors by law, the board of directors shall have power to make, adopt, alter, amend and repeal from time to time by-laws of this
corporation, subject to the right of the stockholders entitled to vote with respect thereto to alter and repeal by-laws made by the board of directors. 

 9. Liability of Directors. A director of this corporation shall not be liable to the
corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, except to the extent that exculpation from liability is not permitted under the General Corporation Law of the State of Delaware as in effect at the
time such liability is determined. No amendment or repeal of this paragraph 9 shall apply to or have any effect on the liability or alleged liability of any director of the corporation for or with respect to any acts or omissions of such director
occurring prior to such amendment or repeal. 
 10. Indemnification. This corporation shall, to the maximum extent
permitted from time to time under the law of the State of Delaware, indemnify and upon request advance expenses to any person who is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit, proceeding
or claim, whether civil, criminal, administrative or investigative, by reason of the fact that such person is or was or has agreed to be a director or officer of this corporation or while a director or officer is or was serving at the request of
this corporation as a director, officer, partner, trustee, employee or agent of any corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including
attorney’s fees and expenses), judgments, fines, penalties and amounts paid in settlement incurred (and not otherwise recovered) in connection with the investigation, preparation to defend or defense of such action, suit, proceeding or claim;
provided, however, that the foregoing shall not require this corporation to indemnify or advance expenses to any person in connection with any action, suit, proceeding, claim or counterclaim initiated by or on behalf of such person.
Such indemnification shall not be exclusive of other indemnification rights arising under any by-law, agreement, vote of directors or stockholders or otherwise and shall inure to the benefit of the heirs and legal representatives of such person. Any
person seeking indemnification under this paragraph 10 shall be deemed to have met the standard of conduct required for such indemnification unless the contrary shall be established. Any repeal or modification of the foregoing provisions of this
paragraph 10 shall not adversely affect any right or protection of a director or officer of this corporation with respect to any acts or omissions of such director or officer occurring prior to such repeal or modification. 
 11. Records. The books of this corporation may (subject to any statutory requirements) be kept outside the State of Delaware as may
be designated by the board of directors or in the by-laws of this corporation. 
 12. Meeting of Stockholders of Certain
Classes. If at any time this corporation shall have a class of stock registered pursuant to the provisions of the Securities Exchange Act of 1934, for so long as such class is so registered, any action by the stockholders of such class must be
taken at an annual or special meeting of stockholders and may not be taken by written consent. 
 13. Corporate
Opportunity. To the maximum extent permitted from time to time under the laws of the State of Delaware, this corporation renounces any interest or expectancy of the corporation in, or in being offered an opportunity to participate in, business
opportunities that are from time to time presented to its officers, directors or stockholders, other than those officers, directors or stockholders who are employees of this corporation. No amendment or repeal of this

 
Article 13 shall apply to or have any effect on the liability or alleged liability of any officer, director or stockholder of the corporation for or with respect to any opportunities of which
such officer, director or stockholder becomes aware prior to such amendment or repeal. 
 The provisions of Section 203 of
the General Corporation Law of the State of Delaware shall not apply to this corporation. 
 THE UNDERSIGNED, the sole
incorporator named above, hereby certifies that the facts stated above are true as of this 3rd day of May, 2006. 
  

	
	  
	Jacquelyn Haws
	Sole Incorporator

 Exhibit 2.3(a)(3) 
 Form of Bylaws 

 BY-LAWS 
 OF 
 CELLU ACQUISITION CORPORATION 
 Section 1. LAW, CERTIFICATE OF INCORPORATION AND BY-LAWS 
 1.1. These by-laws are subject to the certificate of incorporation of the corporation. In these by-laws, references to law, the certificate of incorporation and by-laws mean the law, the provisions of the
certificate of incorporation and the by-laws as from time to time in effect. 
 Section 2. STOCKHOLDERS 
 2.1. Annual Meeting. The annual meeting of stockholders shall be held at 10:00 a.m. on the second Tuesday in May in each year, unless
that day be a legal holiday at the place where the meeting is to be held, in which case the meeting shall be held at the same hour on the next succeeding day not a legal holiday, or at such other date and time as shall be designated from time to
time by the board of directors and stated in the notice of the meeting, at which they shall elect a board of directors and transact such other business as may be required by law or these by laws or as may properly come before the meeting.

 2.2. Special Meetings. A special meeting of the stockholders may be called at any time by the chairman of the board,
if any, the president or the board of directors. A special meeting of the stockholders shall be called by the secretary, or in the case of the death, absence, incapacity or refusal of the secretary, by an assistant secretary or some other officer,
upon application of a majority of the directors. Any such application shall state the purpose or purposes of the proposed meeting. Any such call shall state the place, date, hour and purposes of the meeting. 
 2.3. Place of Meeting. All meetings of the stockholders for the election of directors or for any other purpose shall be held at such
place within or without the State of Delaware as may be determined from time to time by the chairman of the board, if any, the president or the board of directors. Any adjourned session of any meeting of the stockholders shall be held at the place
designated in the vote of adjournment. 
 2.4. Notice of Meetings. Except as otherwise provided by law, a written notice
of each meeting of stockholders stating the place, day and hour thereof and, in the case of a special meeting, the purposes for which the meeting is called, shall be given not less then ten nor more than sixty days before the meeting, to each
stockholder entitled to vote thereat, and to each stockholder who, by law, by the certificate of incorporation or by these by-laws, is entitled to notice, by leaving such notice with him or at his residence or usual place of business, or by
depositing it in the United States mail, postage prepaid, and addressed to such stockholder at his address as it appears in the records of the corporation. Such notice shall be given by the secretary, or by an officer or person designated by the
board of directors, or in the case of a special meeting by the officer calling the meeting. As to any adjourned session of any meeting of stockholders, notice of the adjourned meeting need not be given if the time and place thereof are announced at
the meeting at which the adjournment was taken except that if the adjournment

 
is for more than thirty days or if after the adjournment a new record date is set for the adjourned session, notice of any such adjourned session of the meeting shall be given in the manner
heretofore described. No notice of any meeting of stockholders or any adjourned session thereof need be given to a stockholder if a written waiver of notice, executed before or after the meeting or such adjourned session by such stockholder, is
filed with the records of the meeting or if the stockholder attends such meeting without objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be
transacted at, nor the purpose of, any meeting of the stockholders or any adjourned session thereof need be specified in any written waiver of notice. 
 2.5. Quorum of Stockholders. At any meeting of the stockholders a quorum as to any matter shall consist of a majority of the votes entitled to be cast on the matter, except where a larger quorum is
required by law, by the certificate of incorporation or by these by-laws. Any meeting may be adjourned from time to time by a majority of the votes properly cast upon the question, whether or not a quorum is present. If a quorum is present at an
original meeting, a quorum need not be present at an adjourned session of that meeting. Shares of its own stock belonging to the corporation or to another corporation, if a majority of the shares entitled to vote in the election of directors of such
other corporation is held, directly or indirectly, by the corporation, shall neither be entitled to vote nor be counted for quorum purposes; provided, however, that the foregoing shall not limit the right of any corporation to vote stock, including
but not limited to its own stock, held by it in a fiduciary capacity. 
 2.6. Action by Vote. When a quorum is present at
any meeting, a plurality of the votes properly cast for election to any office shall elect to such office and a majority of the votes properly cast upon any question other than an election to an office shall decide the question, except when a larger
vote is required by law, by the certificate of incorporation or by these by-laws. No ballot shall be required for any election unless requested by a stockholder present or represented at the meeting and entitled to vote in the election. 

2.7. Action without Meetings. Unless otherwise provided in the certificate of incorporation, any action required or permitted to
be taken by stockholders for or in connection with any corporate action may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders
of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted and shall be delivered to the corporation
by delivery to its registered office in the State of Delaware by hand or certified or registered mail, return receipt requested, to its principal place of business or to an officer or agent of the corporation having custody of the book in which
proceedings of meetings of stockholders are recorded. Each such written consent shall bear the date of signature of each stockholder who signs the consent. No written consent shall be effective to take the corporate action referred to therein unless
written consents signed by a number of stockholders sufficient to take such action are delivered to the corporation in the manner specified in this paragraph within sixty days of the earliest dated consent so delivered. 
 If action is taken by consent of stockholders and in accordance with the foregoing, there shall be filed with the records of the meetings of
stockholders the writing or writings comprising such consent. 
  

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 If action is taken by less than unanimous consent of stockholders, prompt notice of the
taking of such action without a meeting shall be given to those who have not consented in writing and a certificate signed and attested to by the secretary that such notice was given shall be filed with the records of the meetings of stockholders.

 In the event that the action which is consented to is such as would have required the filing of a certificate under any
provision of the General Corporation Law of the State of Delaware, if such action had been voted upon by the stockholders at a meeting thereof, the certificate filed under such provision shall state, in lieu of any statement required by such
provision concerning a vote of stockholders, that written consent has been given under Section 228 of said General Corporation Law and that written notice has been given as provided in such Section 228. 
 2.8. Proxy Representation. Every stockholder may authorize another person or persons to act for him by proxy in all matters in which
a stockholder is entitled to participate, whether by waiving notice of any meeting, objecting to or voting or participating at a meeting, or expressing consent or dissent without a meeting. Every proxy must be signed by the stockholder or by his
attorney-in-fact. No proxy shall be voted or acted upon after three years from its date unless such proxy provides for a longer period. A duly executed proxy shall be irrevocable if it states that it is irrevocable and, if, and only as long as, it
is coupled with an interest sufficient in law to support an irrevocable power. A proxy may be made irrevocable regardless of whether the interest with which it is coupled is an interest in the stock itself or an interest in the corporation
generally. The authorization of a proxy may but need not be limited to specified action; provided, however, that if a proxy limits its authorization to a meeting or meetings of stockholders, unless otherwise specifically provided such proxy shall
entitle the holder thereof to vote at any adjourned session but shall not be valid after the final adjournment thereof. 
 2.9.
Inspectors. The directors or the person presiding at the meeting may, and shall if required by applicable law, appoint one or more inspectors of election and any substitute inspectors to act at the meeting or any adjournment thereof. Each
inspector, before entering upon the discharge of his duties, shall take and sign an oath faithfully to execute the duties of inspector at such meeting with strict impartiality and according to the best of his ability. The inspectors, if any, shall
determine the number of shares of stock outstanding and the voting power of each, the shares of stock represented at the meeting, the existence of a quorum, the validity and effect of proxies, and shall receive votes, ballots or consents, hear and
determine all challenges and questions arising in connection with the right to vote, count and tabulate all votes, ballots or consents, determine the result, and do such acts as are proper to conduct the election or vote with fairness to all
stockholders. On request of the person presiding at the meeting, the inspectors shall make a report in writing of any challenge, question or matter determined by them and execute a certificate of any fact found by them. 
 2.10. List of Stockholders. The secretary shall prepare and make, at least ten days before every meeting of stockholders, a complete
list of the stockholders entitled to vote at such meeting, arranged in alphabetical order and showing the address of each stockholder and the number of shares registered in his name. The stock ledger shall be the only evidence as to who are
stockholders entitled to examine such list or to vote in person or by proxy at such meeting. 
  

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 Section 3. BOARD OF DIRECTORS 
 3.1. Number. The corporation shall have one or more directors, the number of directors to be determined from time to time by vote of
a majority of the directors then in office. Except in connection with the election of directors at the annual meeting of stockholders, the number of directors may be decreased only to eliminate vacancies by reason of death, resignation or removal of
one or more directors. No director need be a stockholder. 
 3.2. Tenure. Except as otherwise provided by law, by the
certificate of incorporation or by these by-laws, each director shall hold office for a period of three years and until his successor is elected and qualified, or until he sooner dies, resigns, is removed or becomes disqualified. 
 3.3. Powers. The business and affairs of the corporation shall be managed by or under the direction of the board of directors who
shall have and may exercise all the powers of the corporation and do all such lawful acts and things as are not by law, the certificate of incorporation or these by-laws directed or required to be exercised or done by the stockholders. 

3.4. Vacancies. Vacancies and any newly created directorships resulting from any increase in the number of directors may be filled
by vote of the holders of the particular class or series of stock entitled to elect such director at a meeting called for the purpose, or by a majority of the directors then in office, although less than a quorum, or by a sole remaining director, in
each case elected by the particular class or series of stock entitled to elect such directors. When one or more directors shall resign from the board, effective at a future date, a majority of the directors then in office, including those who have
resigned, who were elected by the particular class or series of stock entitled to elect such resigning director or directors shall have power to fill such vacancy or vacancies, the vote or action by writing thereon to take effect when such
resignation or resignations shall become effective. The directors shall have and may exercise all their powers notwithstanding the existence of one or more vacancies in their number, subject to any requirements of law or of the certificate of
incorporation or of these by-laws as to the number of directors required for a quorum or for any vote or other actions. 
 3.5.
Committees. The board of directors may, by vote of a majority of the whole board, (a) designate, change the membership of or terminate the existence of any committee or committees, each committee to consist of one or more of the
directors; (b) designate one or more directors as alternate members of any such committee who may replace any absent or disqualified member at any meeting of the committee; and (c) determine the extent to which each such committee shall
have and may exercise the powers of the board of directors in the management of the business and affairs of the corporation, including the power to authorize the seal of the corporation to be affixed to all papers which require it and the power and
authority to declare dividends or to authorize the issuance of stock; excepting, however, such powers which by law, by the certificate of incorporation or by these by-laws they are prohibited from so delegating. In the absence or disqualification of
any member of such committee and his alternate, if any, the member or members thereof present at any meeting and not disqualified from voting, whether or not constituting a quorum, may unanimously appoint another member of the board of directors to
act at the meeting in the place of any such absent or disqualified member. Except as the board of directors may otherwise determine, any committee may make

  

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rules for the conduct of its business, but unless otherwise provided by the board or such rules, its business shall be conducted as nearly as may be in the same manner as is provided by these
by-laws for the conduct of business by the board of directors. Each committee shall keep regular minutes of its meetings and report the same to the board of directors upon request. 
 3.6. Regular Meetings. Regular meetings of the board of directors may be held without call or notice at such places within or without
the State of Delaware and at such times as the board may from time to time determine, provided that notice of the first regular meeting following any such determination shall be given to absent directors. A regular meeting of the directors may be
held without call or notice immediately after and at the same place as the annual meeting of stockholders. 
 3.7. Special
Meetings. Special meetings of the board of directors may be held at any time and at any place within or without the State of Delaware designated in the notice of the meeting, when called by the chairman of the board, if any, the president, or by
one-third or more in number of the directors, reasonable notice thereof being given to each director by the secretary or by the chairman of the board, if any, the president or any one of the directors calling the meeting. 
 3.8. Notice. It shall be reasonable and sufficient notice to a director to send notice by United States mail at least forty-eight
hours or by telegram at least twenty-four hours before the meeting addressed to him at his usual or last known business or residence address or to give notice to him in person or by telephone at least twenty-four hours before the meeting. Notice of
a meeting need not be given to any director if a written waiver of notice, executed by him before or after the meeting, is filed with the records of the meeting, or to any director who attends the meeting without protesting prior thereto or at its
commencement the lack of notice to him. Neither notice of a meeting nor a waiver of a notice need specify the purposes of the meeting. 
 3.9. Quorum. Except as may be otherwise provided by law, by the certificate of incorporation or by these by-laws, at any meeting of the directors, a majority of the directors then in office shall constitute a quorum; a quorum shall
not in any case be less than one-third of the total number of directors constituting the whole board. Any meeting may be adjourned from time to time by a majority of the votes cast upon the question, whether or not a quorum is present, and the
meeting may be held as adjourned without further notice. 
 3.10. Action by Vote. Except as may be otherwise provided by
law, by the certificate of incorporation or by these by-laws, when a quorum is present at any meeting the vote of a majority of the directors present shall be the act of the board of directors. 
 3.11. Action Without a Meeting. Any action required or permitted to be taken at any meeting of the board of directors or a committee
thereof may be taken without a meeting if all the members of the board or of such committee, as the case may be, consent thereto in writing, and such writing or writings are filed with the records of the meetings of the board or of such committee.
Such consent shall be treated for all purposes as the act of the board or of such committee, as the case may be. 
  

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 3.12. Participation in Meetings by Conference Telephone. Members of the board of
directors, or any committee designated by such board, may participate in a meeting of such board or committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear
each other or by any other means permitted by law. Such participation shall constitute presence in person at such meeting. 
 3.13. Compensation. In the discretion of the board of directors, each director may be paid such fees for his services as director and be reimbursed for his reasonable expenses incurred in the performance of his duties as director as
the board of directors from time to time may determine. Nothing contained in this section shall be construed to preclude any director from serving the corporation in any other capacity and receiving reasonable compensation therefor. 
 3.14. Interested Directors and Officers. 
 (a) No contract or transaction between the corporation and one or more of its directors or officers, or between the corporation and any other corporation, partnership, association, or other organization
in which one or more of the corporation’s directors or officers are directors or officers, or have a financial interest, shall be void or voidable solely for this reason, or solely because the director or officer is present at or participates
in the meeting of the board or committee thereof which authorizes the contract or transaction, or solely because his or their votes are counted for such purpose, if: 
 (1) The material facts as to his relationship or interest and as to the contract or transaction are disclosed or are known to
the board of directors or the committee, and the board or committee in good faith authorizes the contract or transaction by the affirmative votes of a majority of the disinterested directors, even though the disinterested directors be less than a
quorum; or 
 (2) The material facts as to his relationship or interest and as to the contract or transaction are
disclosed or are known to the stockholders entitled to vote thereon, and the contract or transaction is specifically approved in good faith by vote of the stockholders; or 
 (3) The contract or transaction is fair as to the corporation as of the time it is authorized, approved or ratified, by the
board of directors, a committee thereof, or the stockholders. 
 (b) Common or interested directors may be counted in
determining the presence of a quorum at a meeting of the board of directors or of a committee which authorizes the contract or transaction. 
  

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 Section 4. OFFICERS AND AGENTS 
 4.1. Enumeration; Qualification. The officers of the corporation shall be a president, a treasurer, a secretary and such other
officers, if any, as the board of directors from time to time may in its discretion elect or appoint including without limitation a chairman of the board, one or more vice presidents and a controller. The corporation may also have such agents, if
any, as the board of directors from time to time may in its discretion choose. Any officer may be but none need be a director or stockholder. Any two or more offices may be held by the same person. Any officer may be required by the board of
directors to secure the faithful performance of his duties to the corporation by giving bond in such amount and with sureties or otherwise as the board of directors may determine. 
 4.2. Powers. Subject to law, to the certificate of incorporation and to the other provisions of these by-laws, each officer shall
have, in addition to the duties and powers herein set forth, such duties and powers as are commonly incident to his office and such additional duties and powers as the board of directors may from time to time designate. 
 4.3. Election. The officers may be elected by the board of directors at their first meeting following the annual meeting of the
stockholders or at any other time. At any time or from time to time the directors may delegate to any officer their power to elect or appoint any other officer or any agents. 
 4.4. Tenure. Each officer shall hold office until the first meeting of the board of directors following the next annual meeting of
the stockholders and until his respective successor is chosen and qualified unless a shorter period shall have been specified by the terms of his election or appointment, or in each case until he sooner dies, resigns, is removed or becomes
disqualified. Each agent shall retain his authority at the pleasure of the directors, or the officer by whom he was appointed or by the officer who then holds agent appointive power. 
 4.5. Chairman of the Board of Directors, President and Vice President. The chairman of the board, if any, shall have such duties and
powers as shall be designated from time to time by the board of directors. Unless the board of directors otherwise specifies, the chairman of the board, or if there is none the chief executive officer, shall preside, or designate the person who
shall preside, at all meetings of the stockholders and of the board of directors. 
 Unless the board of directors otherwise
specifies, the president shall be the chief executive officer and shall have direct charge of all business operations of the corporation and, subject to the control of the directors, shall have general charge and supervision of the business of the
corporation. 
 Any vice presidents shall have such duties and powers as shall be set forth in these by-laws or as shall be
designated from time to time by the board of directors or by the president. 
 4.6. Treasurer and Assistant Treasurers.
Unless the board of directors otherwise specifies, the treasurer shall be the chief financial officer of the corporation and shall be in charge of its funds and valuable papers, and shall have such other duties and powers as may be designated from
time to time by the board of directors or by the president. If no controller is

  

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elected, the treasurer shall, unless the board of directors otherwise specifies, also have the duties and powers of the controller. 
 Any assistant treasurers shall have such duties and powers as shall be designated from time to time by the board of directors, the president
or the treasurer. 
 4.7. Controller and Assistant Controllers. If a controller is elected, he shall, unless the board of
directors otherwise specifies, be the chief accounting officer of the corporation and be in charge of its books of account and accounting records, and of its accounting procedures. He shall have such other duties and powers as may be designated from
time to time by the board of directors, the president or the treasurer. 
 Any assistant controller shall have such duties and
powers as shall be designated from time to time by the board of directors, the president, the treasurer or the controller. 
 4.8. Secretary and Assistant Secretaries. The secretary shall record all proceedings of the stockholders, of the board of directors and of committees of the board of directors in a book or series of books to be kept therefor and
shall file therein all actions by written consent of stockholders or directors. In the absence of the secretary from any meeting, an assistant secretary, or if there be none or he is absent, a temporary secretary chosen at the meeting, shall record
the proceedings thereof. Unless a transfer agent has been appointed the secretary shall keep or cause to be kept the stock and transfer records of the corporation, which shall contain the names and record addresses of all stockholders and the number
of shares registered in the name of each stockholder. He shall have such other duties and powers as may from time to time be designated by the board of directors or the president. 
 Any assistant secretaries shall have such duties and powers as shall be designated from time to time by the board of directors, the
president or the secretary. 
 Section 5. RESIGNATIONS AND REMOVALS 
 5.1. Any director or officer may resign at any time by delivering his resignation in writing to the chairman of the board, if any, the
president, or the secretary or to a meeting of the board of directors. Such resignation shall be effective upon receipt unless specified to be effective at some other time, and without in either case the necessity of its being accepted unless the
resignation shall so state. Except as may be otherwise provided by law, by the certificate of incorporation or by these by-laws, a director (including persons elected by stockholders or directors to fill vacancies in the board) maybe removed from
office with or without cause by the vote of the holders of a majority of the issued and outstanding shares of the particular class or series entitled to vote in the election of such directors. The board of directors may at any time remove any
officer either with or without cause. The board of directors may at any time terminate or modify the authority of any agent. 
  

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 Section 6. VACANCIES 
 6.1. If the office of the president or the vice president or the treasurer or the secretary becomes vacant, the directors may elect a
successor by vote of a majority of the directors then in office. If the office of any other officer becomes vacant, any person or body empowered to elect or appoint that officer may choose a successor. Each such successor shall hold office for the
unexpired term, and in the case of the president, the vice president, the treasurer and the secretary until his successor is chosen and qualified or in each case until he sooner dies, resigns, is removed or becomes disqualified. Any vacancy of a
directorship shall be filled as specified in Section 3.4 of these by-laws. 
 Section 7. CAPITAL STOCK 
 7.1. Stock Certificates. Each stockholder shall be entitled to a certificate stating the number and the class and the designation of
the series, if any, of the shares held by him, in such form as shall, in conformity to law, the certificate of incorporation and the by-laws, be prescribed from time to time by the board of directors. Such certificate shall be signed by the chairman
or vice chairman of the board, if any, or the president or a vice president and by the treasurer or an assistant treasurer or by the secretary or an assistant secretary. Any of or all the signatures on the certificate may be a facsimile. In case an
officer, transfer agent or registrar who has signed or whose facsimile signature has been placed on such certificate shall have ceased to be such officer, transfer agent or registrar before such certificate is issued, it may be issued by the
corporation with the same effect as if he were such officer, transfer agent or registrar at the time of its issue. 
 7.2.
Loss of Certificates. In the case of the alleged theft, loss, destruction or mutilation of a certificate of stock, a duplicate certificate may be issued in place thereof, upon such terms, including receipt of a bond sufficient to indemnify
the corporation against any claim on account thereof, as the board of directors may prescribe. 
 Section 8. TRANSFER OF
SHARES OF STOCK 
 8.1. Transfer on Books. Subject to the restrictions, if any, stated or noted on the stock certificate,
shares of stock may be transferred on the books of the corporation by the surrender to the corporation or its transfer agent of the certificate therefor properly endorsed or accompanied by a written assignment and power of attorney properly
executed, with necessary transfer stamps affixed, and with such proof of the authenticity of signature as the board of directors or the transfer agent of the corporation may reasonably require. Except as may be otherwise required by law, by the
certificate of incorporation or by these by-laws, the corporation shall be entitled to treat the record holder of stock as shown on its books as the owner of such stock for all purposes, including the payment of dividends and the right to receive
notice and to vote or to give any consent with respect thereto and to be held liable for such calls and assessments, if any, as may lawfully be made thereon, regardless of any transfer, pledge or other disposition of such stock until the shares have
been properly transferred on the books of the corporation. 
  

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 It shall be the duty of each stockholder to notify the corporation of his post office
address. 
 8.2. Record Date. In order that the corporation may determine the stockholders entitled to notice of or to
vote at any meeting of stockholders or any adjournment thereof, the board of directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the board of directors, and
which record date shall not be more than sixty nor less than ten days before the date of such meeting. If no such record date is fixed by the board of directors, the record date for determining the stockholders entitled to notice of or to vote at a
meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination
of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the board of directors may fix a new record date for the adjourned meeting. 
 In order that the corporation may determine the stockholders entitled to consent to corporate action in writing without a meeting, the board
of directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the board of directors, and which date shall not be more than ten days after the date upon which the
resolution fixing the record date is adopted by the board of directors. If no such record date has been fixed by the board of directors, the record date for determining stockholders entitled to consent to corporate action in writing without a
meeting, when no prior action by the board of directors is required by the General Corporation Law of the State of Delaware, shall be the first date on which a signed written consent setting forth the action taken or proposed to be taken is
delivered to the corporation by delivery to its registered office in Delaware by hand or certified or registered mail, return receipt requested, to its principal place of business or to an officer or agent of the corporation having custody of the
book in which proceedings of meetings of stockholders are recorded. If no record date has been fixed by the board of directors and prior action by the board of directors is required by the General Corporation Law of the State of Delaware, the record
date for determining stockholders entitled to consent to corporate action in writing without a meeting shall be at the close of business on the day on which the board of directors adopts the resolution taking such prior action. 
 In order that the corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment
of any rights or to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the board of directors may fix a record date, which record date shall not precede the date upon which
the resolution fixing the record date is adopted, and which record date shall be not more than sixty days prior to such payment, exercise or other action. If no such record date is fixed, the record date for determining stockholders for any such
purpose shall be at the close of business on the day on which the board of directors adopts the resolution relating thereto. 
  

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 Section 9. CORPORATE SEAL 
 9.1. Subject to alteration by the directors, the seal of the corporation shall consist of a flat-faced circular die with the word
“Delaware” and the name of the corporation cut or engraved thereon, together with such other words, dates or images as may be approved from time to time by the directors. 
 Section 10. EXECUTION OF PAPERS 
 10.1. Except as the
board of directors may generally or in particular cases authorize the execution thereof in some other manner, all deeds, leases, transfers, contracts, bonds, notes, checks, drafts or other obligations made, accepted or endorsed by the corporation
shall be signed by the chairman of the board, if any, the president, a vice president or the treasurer. 
 Section 11.
FISCAL YEAR 
 11.1. The fiscal year of the corporation shall end on the last day of February. 
 Section 12. AMENDMENTS 
 12.1. These by-laws may be adopted, amended or repealed by vote of a majority of the directors then in office or by vote of a majority of the voting power of the stock outstanding and entitled to vote.
Any by-law, whether adopted, amended or repealed by the stockholders or directors, may be amended or reinstated by the stockholders or the directors. 
  

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 Exhibit 3.2(a) 
 Form of Escrow Agreement 

 ESCROW AGREEMENT 
 This Escrow Agreement, dated as of [        ], 2006 (the “Agreement”), is by and
among Cellu Parent Corporation (“Parent”), Cellu Paper Holdings, Inc. (the “Company”), Charter Agent LLC, as the agent for and on behalf of the Former Company Stockholders (the “Former Company
Stockholders’ Agent”), and [                ], as escrow agent (the “Escrow Agent”). For purposes of this Agreement, capitalized terms
used but not otherwise defined herein shall have the meanings ascribed to such terms in the Merger Agreement (as defined below). 
 WHEREAS, pursuant to an Agreement and Plan of Merger, dated as of May 8, 2006 (the “Merger Agreement”), by and among Parent, Merger Sub and the Company, Merger Sub is merging with and into the Company, with the Company
as the corporation surviving the merger (the “Surviving Corporation”); 
 WHEREAS, in connection with the
consummation of the Merger, Parent, the Company, the Former Company Stockholders’ Agent and the Escrow Agent are required, pursuant to Section 3.2(a) of the Merger Agreement, to execute and deliver this Agreement; 
 WHEREAS, the purpose of this Agreement is to secure the Former Company Stockholders indemnification obligations to the Parent Indemnified
Parties pursuant to Article XI of the Merger Agreement; 
 WHEREAS, simultaneously with the execution and delivery of this
Agreement, Parent, in accordance with the Merger Agreement, is depositing with the Escrow Agent, by wire transfer of immediately available funds, the sum of $8,220,000 less the Aggregate Escrowed Securities Value (as defined herein),
which deposit represents a portion of the Merger Consideration (the “Escrow Deposit”); 
 WHEREAS, as
contemplated by the Merger Agreement and by Section 2.2.1 of each Rollover Agreement (each, a “Rollover Agreement”) between Parent and certain of the Former Company Stockholders listed on Schedule I hereto under the
heading “Rollover Shareholders” (such Former Company Stockholders, the “Rollover Shareholders”), the parties to each Rollover Agreement have agreed that one hundred percent (100%) of each such Rollover
Shareholders’ applicable percentage of the Escrow Deposit will consist of certificates representing a certain number of shares of the Company’s Series A convertible preferred stock, par value $0,001 per share (“Preferred
Stock”), issued to each such Rollover Shareholder at the Closing under such Rollover Shareholder’s Rollover Agreement; and 
 WHEREAS, the number of shares contributed by each Rollover Shareholder is shown on Schedule I hereto (the “Escrowed Rollover Securities”); 
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants contained herein, the parties agree as follows: 
 CelluTissue - Escrow Agreement - Indemnification Escrow1 

 Appointment. Parent, the Company and the Former Company Stockholders’ Agent hereby appoint
[                                ] as escrow agent for the purposes set forth in
this Agreement, and [                                ] hereby accepts such
appointment and agrees to act as escrow agent on the terms and conditions set forth hereinafter. 
 Escrow Fund. 

The Escrow Agent shall acknowledge the receipt of the Escrow Deposit in writing to both Parent and the Former Company Stockholders’ Agent promptly
upon receipt of the Escrow Deposit. Schedule I sets forth the name of each Former Company Stockholder, such Former Company Stockholder’s address, the Former Company Stockholder’s employee identification or social security number, as
applicable, the Individual Cash Escrow Percentage (as defined below) attributable to such Former Company Stockholder and the aggregate amount of cash deposited in the Escrow Account by each such Former Company Stockholder (shown on Schedule I
under the heading “Cash Escrowed”). 
 Pursuant to Section 2.2.1 of the Rollover Agreement, the Former Company Stockholders’
Agent herewith delivers to the Escrow Agent certificates evidencing the Escrowed Rollover Securities, together with stock transfer powers with respect thereto executed in blank. Such Escrowed Rollover Securities are to be held by the Escrow Agent
pursuant to the terms hereof (together with any additional escrowed securities issued in payment of any non-cash dividend or distribution on or split or other recapitalization of, or in respect of, any of the Escrowed Rollover Securities delivered
into escrow on the date hereof, or any securities or other property issued or distributed with respect to any such securities in connection with any merger, consolidation or liquidation of Parent, and any other property other than cash issued in an
extraordinary distribution in connection with the liquidation or dissolution of Parent or otherwise involved in the distribution of all or substantially all of the assets (a “Liquidating Distribution”) with respect to any such
shares). The Escrow Agent shall acknowledge receipt of the Escrowed Company Securities promptly following delivery of the same to the Escrow Agent. Schedule I sets forth the number of Escrowed Rollover Securities deposited in the Escrow
Account by each Rollover Shareholder, including the identification number of each certificate or certificates so deposited, the Individual Escrowed Securities Value (as defined below) and the Individual Securities Escrow Percentage (as defined
below). 
 Other than as provided for herein, none of the Rollover Shareholders shall take any action, or shall allow any of their
representatives or advisors to take any action, to transfer, sell, pledge or otherwise dispose of any Escrowed Rollover Securities and any such purported transfer shall be null and void ab initio. The Escrow Agent shall have no authority to
alter its records to reflect any purported transfer of an Escrowed Rollover Security or to make any payment or distribution under this Escrow Agreement to any such purported transferee except such transfers or payments made to Parent consistent with
Article IV hereof. 
 The Escrow Agent shall establish a segregated account (the “Escrow Account”) and shall hold in the Escrow
Account the Escrow Deposit and the Escrowed Rollover Securities and all interest, profits, securities or other income thereon or with respect thereto and any proceeds therefrom (the “Escrow Fund”). Any interest and profits on, any
securities or other non-cash properties delivered with respect to, and any proceeds from, the Escrow Fund shall be credited to and

  

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become part of the Escrow Fund and, if and to the extent such amounts are delivered in cash, may be reinvested as provided in Section III. The purpose of the Escrow Account is to provide a source
from which any amounts owing from time to time to any of the Parent Indemnified Parties pursuant to Article XI of the Merger Agreement shall be paid. It is understood and agreed by the parties hereto that the Escrow Fund shall be separate and
independent from the Working Capital Escrow Amount. The Escrow Agent shall establish the Escrow Account solely for deposit of the Escrow Deposit and the Escrowed Rollover Securities and will establish a separate account for holding the Working
Capital Escrow Amount. 
 At the time that the deposits described in Section II.A and Section II.B are made, the Escrow Agent, in conjunction
with the Former Company Stockholders’ Agent and Parent shall calculate the following values based on the information on Schedule I: 
 The “Individual Cash Escrow Percentage” for each Former Company Stockholder shall equal (i) the amount of cash contributed by each Former Company Stockholder to the Escrow Deposit as shown under the heading “Cash
Escrowed” on Schedule I hereto divided by (ii) $8,220,000. 
 The “Aggregate Cash Escrow Percentage”
shall equal the aggregate percentage represented by combining each Individual Cash Escrow Percentage. 
 The
“Individual Escrowed Securities Value” shall equal, for each Rollover Shareholder (i) the number of Escrowed Rollover Securities deposited by each Rollover Shareholder multiplied by
(ii) $[            ]1 (the “Preferred Stock Per Share Price”). 
 The “Aggregate Escrowed
Securities Value” shall equal the aggregate value of the Individual Escrowed Securities Values for all Rollover Shareholders. 
 The
“Individual Securities Escrow Percentage” for each Rollover Shareholder shall equal (i) the Individual Escrowed Securities Value attributable to each Rollover Shareholder divided by (ii) $8,220,000. 
 The “Aggregate Securities Escrow Percentage” shall equal the aggregate percentage represented by combining the Individual Securities Escrow
Percentages for all Rollover Shareholders. 
 Schedule I shall be amended by the Escrow Agent from time to time,
consistent with the form provided in Schedule I, as necessary to reflect all payments or distributions of cash or release of Escrowed Rollover Securities from escrow hereunder and in order to keep record of each Former Company
Stockholder’s and/or Rollover Shareholder’s remaining interest in the Escrow Funds and the Escrowed Rollover Securities, as applicable. 
  

	1	 Insert the amount per share paid by the WP Entities for Parent shares. 

  

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 The Escrow Agent shall invest and reinvest the Escrow Fund as provided in Section III. 
 Management of Escrow Fund. 
 Investment of Escrow Fund: The Escrow Fund shall be invested and reinvested by the Escrow Agent in such investments as shall be directed in joint written investment instructions from Parent and the Former Company Stockholders’ Agent.
In the absence of joint written instructions from Parent and the Former Company Stockholders’ Agent, the Escrow Agent shall invest the Escrow Fund in (i) obligations of, or obligations fully and directly guaranteed as to timely payment of
principal and interest by, the United States of America, which obligations have a maturity of not more than 90 days, (ii) repurchase obligations with a term of not more than 10 days for underlying securities of the types described in clause
(i) above entered into with any bank or trust company organized under the law of the United States of America or the law of any state of the United States which has a long term debt rating from Moody’s Investor’s Service, Inc. of at
least Aaa or from Standard & Poor’s Corporation of at least AAA (each, an “Approved Bank”), (iii) certificates of deposit issued by any Approved Bank, which certificates of deposit have a maturity of not more than
90 days, or (iv) money market funds registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), the portfolios of which are limited to “government securities” (as defined in the
Investment Company Act). The Escrow Agent may liquidate any investments held in the Escrow Account in order to provide funds necessary to make required payments under this Agreement. No investment shall exceed the term of this Agreement. 

The Escrow Agent shall provide to Parent and the Former Company Stockholders’ Agent periodic statements reflecting transactions executed on behalf
of the Escrow Fund and the then current balance of the Escrow Fund. 
 The Escrow Agent shall have no liability for any loss sustained as a
result of any investment made pursuant to the joint written investment instructions of Parent and Former Company Stockholders’ Agent or otherwise authorized pursuant to this Section III or as a result of any liquidation of any investment prior
to its maturity. 
 The Rollover Shareholders shall be entitled to vote the Escrowed Rollover Securities as are owned by each such Rollover
Shareholder as indicated on Schedule I hereto and as are, from time to time, held hereunder for such Rollover Shareholder’s account as Escrowed Rollover Securities by instructing the Escrow Agent in writing; provided,
however, that in order for any such Rollover Shareholder to exercise such entitlement, he, she or it must notify the Escrow Agent in writing no later than five business days prior to the proposed vote. Rollover Shareholders shall also be
entitled to receive any dividend or distribution thereon (other than dividends or distributions in the form of additional Escrowed Rollover Securities or property other than cash issued in a Liquidating Distribution or otherwise falling within the
definition of Escrowed Rollover Securities hereunder and pursuant to Section II.B above, all of which property shall be delivered to the Escrow Agent and held as part of the Escrowed Shares). 
 Distribution of the Escrow Fund. The Escrow Agent shall distribute the Escrow Fund as follows: 
  

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 Upon receipt by the Escrow Agent at any time of joint written instructions signed by Parent and the Former
Company Stockholders’ Agent directing the Escrow Agent to pay any amount from the Escrow Fund, the Escrow Agent promptly shall make payment of such amount in accordance with those instructions and consistent with Section IV.E hereof.

 If at any time or from time to time Parent shall give notice to the Escrow Agent asserting that it is entitled to indemnification pursuant to
the Merger Agreement and demanding payment of an amount from the Escrow Fund, the Escrow Agent promptly shall deliver a copy of that notice to the Former Company Stockholders’ Agent, and, unless within 30 days after delivery of the copy to the
Former Company Stockholders’ Agent the Escrow Agent receives from the Former Company Stockholders’ Agent a notice disputing Parent’s right to all or a portion of the amount demanded, the Escrow Agent shall pay to Parent promptly after
expiration of that 30-day period (but only after having confirmed with the Former Company Stockholders’ Agent that it has received a copy of Parent’s demand) the full amount demanded by Parent. Any notice from Parent to the Escrow Agent
pursuant to this Section IV.B shall set forth in reasonable detail the basis of such demand for payment and the amount sought to be paid from the Escrow Fund and any payment made pursuant to this Section IV.B shall be made consistent with Section
IV.E hereof. 
 If during the 30-day period referred to in Section IV.B the Escrow Agent receives notice from the Former Company
Stockholders’ Agent disputing Parent’s right to all or any portion of the payment demanded by Parent, the Escrow Agent promptly shall forward to Parent a copy of the Former Company Stockholders’ Agent’s notice, shall pay to
Parent promptly after receiving such Former Company Stockholders’ Agent’s notice any undisputed portion of the amount demanded by Parent, and shall continue to hold the disputed amount in escrow until (i) receipt of joint instructions
signed by Parent and the Former Company Stockholders’ Agent, or (ii) a copy of a final, non-appealable order of a court of competent jurisdiction, or a final decision by an arbitrator appointed as provided in Section 11.6(d) of the
Merger Agreement, in each case setting forth the manner in which the Escrow Agent shall dispose of the disputed amount. Upon receipt of any such instructions or order, the Escrow Agent promptly shall comply with its terms and make a distribution
from the Escrow Funds, if appropriate, consistent with Section IV.E hereof. 
 Without any action on the part of Parent
and/or the Former Company Stockholders’ Agent, on the 547th day following the date of this Agreement, the Escrow Agent shall: (i) pay to the Former Company Stockholders’ Agent from the Escrow Fund an amount equal to the amount by which the Escrow Fund exceeds the amount calculated by
multiplying the Aggregate Cash Escrow Percentage by the aggregate amount of any pending claims previously asserted by Parent or any other Parent Indemnified Party against the Former Company Stockholders in accordance with Article XI of the Merger
Agreement that are either undetermined or being disputed pursuant to Section IV.C hereof, and (ii) release from escrow Escrowed Rollover Securities to the Rollover Shareholders who are entitled such securities to the extent there remains in
escrow a number of Escrowed Rollover Securities having a value, based on the Preferred Stock Per Share Price, greater than the number of securities which would be required, based on the Preferred Stock Per Share Price, to satisfy the Aggregate
Securities Escrow Percentage of the amount of any pending claims previously asserted by Parent or any other Parent Indemnified Party against the Former Company Stockholders in accordance with Article XI of the Merger Agreement that are either
undetermined or being disputed pursuant to Section IV.C hereof, and any distribution of

  

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Escrowed Rollover Securities pursuant to item IV.D.(ii) above shall be made consistent with Section IV.E hereof. The balance of the Escrow Fund, including any remaining Escrowed Rollover
Securities, not so paid or released pursuant to the immediately preceding sentence shall be held by the Escrow Agent until receipt by the Escrow Agent of (i) joint instructions signed by Parent and the Former Company Stockholders’ Agent,
or (ii) a copy of a final, non-appealable order of a court of competent jurisdiction, or a final decision by an arbitrator appointed as provided in Section 11.6(d) of the Merger Agreement, in each case setting forth the determination of
Parent’s claim. Upon receipt of any such any instructions or order, the Escrow Agent promptly shall pay to Parent (or other Parent Indemnified Party) the amount to which it is entitled as stated in such instruction or order and shall pay the
balance of the Escrow Fund to the Former Company Stockholders’ Agent and shall provide any remaining Escrowed Rollover Securities to the Former Company Stockholders’ Agent for distribution to the Rollover Shareholders entitled to such
securities. If the amount of any pending and undetermined claim for which a portion of the Escrow Fund was held by the Escrow Agent in accordance with this Section IV.D is determined by Parent and the Former Company Stockholders’ Agent to no
longer be in dispute, then Parent and Former Company Stockholders’ Agent shall provide joint written notice authorizing Escrow Agent to release an amount of the remaining Escrow Fund, including Escrowed Rollover Securities representing the
excess, if any, of (A) the amount so determined over (B) the amount previously withheld in respect of such pending and undetermined claim. 
 In the case of any distribution or payment to be made pursuant to Section IV.A, IV.B, IV.C and/or IV.D hereof, the Escrow Agent shall pay the Aggregate Cash Escrow Percentage of such distribution or payment from the Escrow Deposit
(allocating such amount to individual Former Company Stockholders based upon the Individual Cash Escrow Percentage of each Former Company Stockholder having an interest therein) and shall satisfy the Aggregate Securities Escrow Percentage of such
distribution or payment from the Escrowed Rollover Securities (allocating such amount to individual Rollover Shareholders based upon the Individual Securities Escrow Percentage of each Rollover Shareholder having an interest therein and determining
the number of Escrow Rollover Securities to so release based on the Preferred Stock Per Share Price). With regards to any Escrowed Rollover Securities to be so distributed or released pursuant to this Section IV, such Escrowed Rollover Securities
shall be delivered by the Escrow Agent to Parent and treated by Parent in the manner provided for in Article V hereof. 
 Distributions or
payments of cash to Parent shall be made to it pursuant to the wiring instructions provided for on Schedule III hereto. 
 The Escrow
Agent shall continue to hold the Escrow Fund, including the Escrowed Rollover Securities, in its possession except as provided in this Agreement. 
 Upon delivery, release or payment of the entire balance of the Escrow Fund, including the Escrowed Rollover Securities, as provided in this Section IV, the Escrow Agent shall be released and discharged from any further obligation under this
Agreement. 
  

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 Cancellation of Escrowed Rollover Securities. It is expressly acknowledged and agreed that Parent
shall forthwith cancel the Escrowed Rollover Security represented by any certificate(s) delivered to it by the Escrow Agent pursuant to Section IV (whereupon all ownership interests in Parent represented thereby shall be extinguished and the Escrow
Agent shall have no liability thereafter with respect to such cancelled certificate(s)); provided, however, that, in the event the certificate(s) so delivered represent a number of Escrowed Rollover Securities greater than the number
of Escrowed Rollover Securities required to be delivered with respect to a particular Rollover Shareholder, then Parent shall promptly cause to be issued to and in the name of such Rollover Shareholder, a new certificate, duly endorsed, in respect
of such excess number of Escrowed Rollover Securities and shall deliver such new certificate to the Escrow Agent to be held as provided hereunder. 
 Termination. This Agreement shall automatically terminate if and when the Escrow Agent in accordance with the terms of this Agreement shall have distributed the entire Escrow Fund. 
 Escrow Agent. 
 The Escrow Agent
undertakes to perform only such duties as are expressly set forth in this Agreement and no duties shall be implied. The Escrow Agent shall have no liability under and no duty to inquire as to the provisions of any agreement other than this
Agreement. 
 The Escrow Agent may rely upon, and shall not be liable for acting or refraining from acting upon, any written notice, instruction
or request furnished to it under this Agreement and believed by it to be genuine and to have been signed or presented by the proper party or parties. The Escrow Agent shall be under no duty to inquire into or investigate the validity, accuracy or
content of any such document. 
 The Escrow Agent shall not be liable for any action taken or omitted by it in good faith except to the extent
that a court of competent jurisdiction determines that the Escrow Agent’s gross negligence or willful misconduct was the primary cause of any loss to any Parent Indemnified Party, Escrow Agent, any Stockholders Indemnified Party or the Former
Company Stockholders’ Agent. 
 The Escrow Agent may execute any of its powers and perform any of its duties hereunder directly or through
agents or attorneys (and shall be liable only for the careful selection of any such agent or attorney) and may consult with counsel, accountants and other skilled persons to be selected and retained by it. The Escrow Agent shall not be liable for
anything done, suffered or omitted in good faith by it in accordance with the advice or opinion of any such counsel, accountants or other skilled persons. 
 In the event that the Escrow Agent shall be uncertain as to its duties or rights under this Agreement or shall receive instructions, claims or demands from any party hereto which, in its opinion, conflict
with any of the provisions of this Agreement, it shall be entitled to refrain from taking any action and its sole obligation shall be to keep safely all property held in escrow until it shall be directed otherwise in writing (i) by Parent and
the Former Company Stockholders’

  

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Agent, or (ii) by a final order or judgment of a court of competent jurisdiction or by a final decision by an arbitrator appointed as provided in Section 11.6(d) of the Merger
Agreement. 
 In no event shall the Escrow Agent be liable for any special, indirect or consequential loss or damage of any kind whatsoever
(including but not limited to lost profits), even if the Escrow Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. 
 Succession. The Escrow Agent (and any successor escrow agent) may at any time resign as such upon 60 days prior notice to each of the other parties. Upon receipt of a notice of resignation, each
of the other parties shall use their best efforts to select a successor escrow agent within 60 days, but if within that 60-day period the Escrow Agent has not received a notice signed by both of the other parties appointing a successor escrow agent
and setting forth its name and address, then (i) the Escrow Agent’s resignation shall become effective on such 60th day and (ii) the Escrow Agent’s sole responsibility thereafter shall be to safekeep the Escrow Fund until receipt
of (A) a designation of a successor escrow agent or (B) joint instructions signed by Parent and the Former Company Stockholders’ Agent, or a copy of final non-appealable order of a court of competent jurisdiction, or a final decision
of an arbritator appointed as provided in Section 11.6 of the Merger Agreement, in each case setting forth the manner in which the Escrow Agent shall dispose of the Escrow Fund. 
 Fees. Parent and the Former Company Stockholders’ Agent shall bear equally the amount of all reasonable fees and expenses payable to the Escrow Agent (with Former Company Stockholders’
Agent’s portion to be deducted from the Escrow Fund). Parent and the Former Company Stockholders’ Agent agree to (a) pay the Escrow Agent upon execution of this Agreement and from time to time thereafter reasonable compensation for
the services to be rendered hereunder, which unless otherwise agreed in writing shall be as described in Schedule II hereto, and (b) pay or reimburse the Escrow Agent upon request for all expenses, disbursements and advances, including
reasonable attorney’s fees and expenses, incurred or made by it in connection with the preparation, execution, performance, delivery, modification and termination of this Agreement. 
  

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 Indemnity. Parent and the Former Company Stockholders’ Agent (with Former Company
Stockholders’ Agent’s portion to be deducted from the Escrow Fund) shall indemnify, defend and hold harmless the Escrow Agent and its directors, officers, agents and employees (the “Indemnitees”) from all loss, liability
or expense (including the reasonable fees and expenses of outside counsel) arising out of or in connection with (a) the Escrow Agent’s execution and performance of this Agreement, except in the case of any Indemnitee to the extent that
such loss, liability or expense is due to the gross negligence or willful misconduct of such Indemnitee, or (b) its following any instructions or other directions from Parent or the Former Company Stockholders’ Agent, except to the extent
that its following any such instruction or direction is contrary to the express terms of this Agreement. Parent and the Former Company Stockholders’ Agent acknowledge that the foregoing indemnification obligations shall survive the resignation
or removal of the Escrow Agent or the termination of this Agreement. Parent and the Former Company Stockholders’ Agent hereby grant the Escrow Agent a lien on, right of set-off against and security interest in the Escrow Fund for the payment of
any claim for indemnification, compensation, expenses and amounts due under this Agreement. 
 Taxes. The Former Company
Stockholders’ Agent shall be responsible for, on behalf of the Former Company Stockholders, all taxes arising from or attributable to the Escrow Fund, except to the extent any portion of the Escrow Fund is paid to Parent in respect of claims
made under Article XI of the Merger Agreement. The Escrow Agent shall issue all Internal Revenue Service Forms 1099 (or any successor forms) relating to the Escrow Account or the Escrow Fund to and in the name of the Former Company
Stockholder’s Agent. 
 Notices. All communications under this Agreement shall be in writing and shall be deemed to be duly
given and received: (a) upon delivery if delivered personally; (b) on the next business day (as hereinafter defined) if sent by overnight courier; (c) upon transmission by facsimile if receipt is confirmed by telephone, provided
transmission is made during regular business hours, or if not, the next business day; or (d) four business days after mailing if mailed by prepaid registered mail, return receipt requested, to the appropriate notice address set forth on
Schedule III hereto or at such other address as any party hereto may have furnished to the other parties in writing by registered mail, return receipt requested. Notwithstanding the above, communications shall be deemed to have been given on
the date received by the Escrow Agent. 
  

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 Security Procedures. In the event funds transfer instructions are given, whether in writing, by
telecopier or otherwise, the Escrow Agent may seek confirmation of such instructions by telephone call-back to the person or persons designated on Schedule IV, and the Escrow Agent may rely upon the confirmation of anyone purporting to be the
person or persons so designated. The persons and telephone numbers for call-backs may be changed only in a writing actually received and acknowledged by the Escrow Agent. If the Escrow Agent is unable to contact any of the authorized representatives
identified in Schedule IV, the Escrow Agent may seek confirmation of such instructions by telephone call-back to any one or more of a party’s executive officers (“Executive Officers”), which shall include the titles of
Chief Executive Officer, President and Vice President, as the Escrow Agent may select. Upon the Escrow Agent’s request, an Executive Officer shall deliver to the Escrow Agent a fully executed Incumbency Certificate, and the Escrow Agent may
rely upon the confirmation of anyone purporting to be any such officer. The Escrow Agent and the beneficiary’s bank in any funds transfer may rely solely upon any account numbers or similar identifying numbers provided by Parent or the Former
Company Stockholders’ Agent to identify (a) the beneficiary, (b) the beneficiary’s bank, or (c) an intermediary bank. 
 Former Company Stockholders’ Agent. At any time during the term of this Agreement, the Former Company Stockholders’ Agent may notify Parent and the Escrow Agent in writing that the Former Company Stockholders have
designated another person to act on behalf of the Former Company Stockholders as the Former Company Stockholders’ Agent hereunder, in accordance with Section 11.7 of the Merger Agreement. 
 Miscellaneous. 
 This Agreement
contains, and is intended as, a complete statement of all of the terms of the arrangements among the parties with respect to the subject matter hereof, supersedes any previous agreements and understandings between the parties with respect to those
matters, and cannot be changed or terminated orally. 
 This Agreement may not be altered or modified, nor may any condition or covenant set
forth herein be waived, without the express written consent of each of the parties hereto. 
 This Agreement shall be governed by and construed
in accordance with the law of the State of New York applicable to agreements made and to be performed in New York. 
 The section headings of
this Agreement are for reference purposes only and are not to be given any effect in the construction or interpretation of this Agreement. 
 This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same instrument. 
 If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision
shall be deemed modified to give it the maximum effect permitted by law, and such determination shall not impair or affect the validity, legality or enforceability of the remaining provisions hereof. 
  

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 None of the parties may assign any of its rights or delegate any of its duties under this Agreement without
the prior written consent of the others. 
 This Agreement does not create, and shall not be construed as creating, any rights in favor of any
person not a party to this Agreement. 
 The courts of the State of New York in New York County and the United States District Court for the
Southern District of New York shall have jurisdiction over the parties with respect to any dispute or controversy between them arising under or in connection with this Agreement and/or the transactions contemplated thereby and, by execution and
delivery of this Agreement, each of the parties to this Agreement submits to the jurisdiction of those courts, including, but not limited to, the in personam and subject matter jurisdiction of those courts, waives any objection to such jurisdiction
on the grounds of venue or forum non conveniens, the absence of in personam or subject matter jurisdiction and any similar grounds, consents to service of process by mail (in accordance with Section XI) or any other manner permitted by law, and
irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement. These consents to jurisdiction shall not be deemed to confer rights on any person other than the parties to this Agreement. NOTWITHSTANDING THE
FOREGOING, PARENT AND THE FORMER COMPANY STOCKHOLDERS’ AGENT HEREBY ACKNOWLEDGE THAT ALL DISPUTES RELATING TO THE MERGER AND THE MERGER AGREEMENT SHALL BE RESOLVED IN ACCORDANCE WITH THE TERMS OF THE MERGER AGREEMENT. 
 [Signature Page Follows.] 
  

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 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed by a duly
authorized officer as of the day and year first written above. 
  

									
	ESCROW AGENT	 		 	[                    ]
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
			
	COMPANY	 		 	CELLU PAPER HOLDINGS, INC.
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
			
	PARENT	 		 	CELLU PARENT CORPORATION
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
	 FORMER COMPANY
 STOCKHOLDERS’ AGENT
	 		 	
					
		 		 		 	By:	 	 
		 		 		 		 	CHARTER AGENT LLC, as the agent for and on behalf of the Former Company Stockholders

 [Signature Page to Indemnification Escrow Agreement] 

 SCHEDULE I 
 STOCKHOLDERS CONTRIBUTING TO ESCROW DEPOSIT (Excluding Rollover Shareholders) 
  

									
	 Former Company 
Stockholder
	  	 Address
	  	 TIN
	  	Cash Escrowed	  	Individual Cash
Escrow Percentage
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  	
					
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  	
		  		  		  		  	
		  		  		  		  	

  

					
	Escrow Deposit:	  	$	_______________	  
		
	Aggregate Cash Escrow Percentage:	  	 	                              	% 

 [Schedule I to Indemnification Escrow Agreement] 

 ROLLOVER SHAREHOLDERS 
  

											
	 Rollover Shareholder
	  	 Address
	  	 TIN
	  	 Escrowed Shares
(Stock Certificate
Number(s))
	  	Individual Escrowed
Securities Value	  	Individual
Securities
Escrow Percentage
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  		  	
						
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  		  	
						
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  		  	
						
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  		  	

  

					
	Aggregate Escrowed Securities Value:	  	$	_______________	  
		
	Aggregate Securities Escrow Percentage:	  	 	_______________	% 

 [Schedule I to Indemnification Escrow Agreement] 

 SCHEDULE II 
 Escrow Agent’s Compensation 
 [Schedule II
to Indemnification Escrow Agreement] 

 SCHEDULE III 
 Notice Addresses 
 Parent Notice Address: 
 c/o Weston Presidio V, L.P. 
 Pier 1, Bay 2

 San Francisco, CA 94111 
 Attention:
R. Sean Honey and Therese Mrozek 
 Fax No: (415) 398-0990 
 Tel. No: (415) 398-0770 
 with a copy to: 
 Ropes & Gray L.L.P. 
 One International
Place 
 Boston, Massachusetts 02110 
 Attention: David C. Chapin, Esq. and Shari Wolkon, Esq. 
 Fax No: (617) 951-7050 
 Tel. No: (617) 951-7371 
 Tel. No.:
(617) 951-7861 
 Parent TIN: 
 Wiring Instructions: 
 Account Name: 
 Bank Name: 
 Bank City/State: 
 ABA#: 
 Account Number: 
 The Former Company Stockholders’ Agent Notice Address: 
 Charter Agent LLC 

c/o Charterhouse Group, Inc. 
 535 Madison Avenue

 New York, New York 10022 
 Attention:
William Landuyt 
 Fax No: 212-750-9704 
 Tel. No: 212-584-3216 
 with a copy to: 
 Proskauer Rose LLP 
 1585 Broadway 
 New York, New York 10036 
 Attention: Stephen W. Rubin, Esq. 
 [Schedule III to Indemnification Escrow Agreement] 

 Fax No: 212-969-2900 
 Tel. No: 212-969-3000 
 The Former Company Stockholders’ Agent TIN: 
 Wiring Instructions: 
 Account Name:

 Bank Name: 
 ABA#: 
 Account Number: 
 Escrow Agent Notice Address:

 [            ] 
 [            ] 
 Attention:
[            ] 
 Fax No: (    ) - 
 Tel. No.: (    ) - 
 [Schedule III to the Indemnification Escrow Agreement] 

 SCHEDULE IV 
 Call-Back Information 
 Telephone Number(s) for
Call-Backs and 
 Person(s) Designated to Confirm Funds Transfer Instructions 
 If to Parent: 
 Name - Telephone Number 

 1. 
 2. 
 If to the Former Company Stockholders’ Agent: 
 Name - Telephone Number 
 1. 
 2. 
 Telephone call-backs shall be made to Parent and the Former Company Stockholders’ Agent if joint instructions are required
pursuant to this Agreement. 
 [Schedule IV to the Indemnification Escrow Agreement] 

 Exhibit 3.2(b) 
 Form of Working Capital Escrow Agreement 

 WORKING CAPITAL ESCROW AGREEMENT 
 This Working Capital Escrow Agreement, dated as of [            ], 2006 (the
“Agreement”), is by and among Cellu Parent Corporation (“Parent”), Cellu Paper Holdings, Inc. (the “Company”), Charter Agent LLC, as the agent for and on behalf of the Former Company Stockholders
(the “Former Company Stockholders’ Agent”), and [            ], as escrow agent (the “Escrow Agent”). For purposes of this Agreement, capitalized
terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the Merger Agreement (as defined below). 
 WHEREAS, pursuant to an Agreement and Plan of Merger, dated as of May 8, 2006 (the “Merger Agreement”), by and among Parent, Cellu Acquisition Corporation (“Merger Sub”) and the Company, Merger Sub is
merging with and into the Company, with the Company as the corporation surviving the merger (the “Surviving Corporation”); 
 WHEREAS, in connection with the consummation of the Merger, Parent, the Company, the Former Company Stockholders’ Agent and the Escrow Agent are required, pursuant to Section 3.2(b) of the
Merger Agreement, to execute and deliver this Agreement; 
 WHEREAS, the purpose of this Agreement is to secure obligations, if
any, of the Former Company Stockholders to Parent, pursuant to the terms of Sections 3.3(f) and 3.3(g) of the Merger Agreement; 
 WHEREAS, simultaneously with the execution and delivery of this Agreement, Parent, in accordance with the Merger Agreement, is depositing with the Escrow Agent, by wire transfer of immediately available funds, the sum of $2,050,000
less the Aggregate Escrowed Securities Value (as defined herein), which deposit represents a portion of the Merger Consideration (the “Working Capital Escrow Deposit”); 
 WHEREAS, as contemplated by the Merger Agreement and by Section 2.2.1 of each Rollover Agreement (each, a Rollover
Agreement”) between Parent and certain of the Former Company Stockholders listed on Schedule I hereto under the heading “Rollover Shareholders” (such Former Company Stockholders, the “Rollover
Shareholders”), the parties to each Rollover Agreement have agreed that one hundred percent (100%) of each such Rollover Shareholders’ applicable percentage of the Working Capital Escrow Deposit will consist of certificates
representing a certain number of shares of the Company’s Series A convertible preferred stock, par value $0.001 per share (“Preferred Stock”), issued to each such Rollover Shareholder at the Closing under such Rollover
Shareholder’s Rollover Agreement; and 
 WHEREAS, the number of shares contributed by each Rollover Shareholder is shown on
Schedule I hereto (the “Working Capital Escrowed Rollover Securities”); 
 NOW, THEREFORE, in
consideration of the premises and of the mutual covenants contained herein, the parties agree as follows: 
  

 Working Capital Escrow Agreement 

 Appointment. Parent, the Company and the Former Company Stockholders’ Agent hereby appoint
[                    ] as escrow agent for the purposes set forth in this Agreement, and
[                    ] hereby accepts such appointment and agrees to act as escrow agent on the terms and conditions set forth
hereinafter. 
 Working Capital Escrow Fund. 
 The Escrow Agent shall acknowledge the receipt of the Working Capital Escrow Deposit in writing to both Parent and the Former Company Stockholders’ Agent promptly upon receipt of the Working Capital
Escrow Deposit. Schedule I sets forth the name of each Former Company Stockholder, such Former Company Stockholder’s address, the Former Company Stockholder’s employee identification or social security number, as applicable, the
Individual Cash Escrow Percentage (as defined below) attributable to such Former Company Stockholder and the aggregate amount of cash deposited in the Working Capital Escrow Account by each such Former Company Stockholder (shown on Schedule I
under the heading “Working Capital Cash Escrowed”). 
 Pursuant to Section 2.2.1 of the Rollover Agreement, the Former Company
Stockholders’ Agent herewith delivers to the Escrow Agent certificates evidencing the Working Capital Escrowed Rollover Securities, together with stock transfer powers with respect thereto executed in blank. Such Working Capital Escrowed
Rollover Securities are to be held by the Escrow Agent pursuant to the terms hereof (together with any additional escrowed securities issued in payment of any non-cash dividend or distribution on or split or other recapitalization of, or in respect
of, any of the Working Capital Escrowed Rollover Securities delivered into escrow on the date hereof, or any securities or other property issued or distributed with respect to any such securities in connection with any merger, consolidation or
liquidation of the Parent, and any other property other than cash issued in an extraordinary distribution in connection with the liquidation or dissolution of the Parent or otherwise involved in the distribution of all or substantially all of the
assets (a “Liquidating Distribution”) with respect to any such shares). The Escrow Agent shall acknowledge receipt of the Escrowed Company Securities promptly following delivery of the same to the Escrow Agent. Schedule I
sets forth the number of Working Capital Escrowed Rollover Securities deposited in the Working Capital Escrow Account by each Rollover Shareholder, including the identification number of each certificate or certificates so deposited, the Individual
Escrowed Securities Value (as defined below) and the Individual Securities Escrow Percentage (as defined below). 
 Other than as provided for
herein, none of the Rollover Shareholders shall take any action, or shall allow any of their representatives or advisors to take any action, to transfer, sell, pledge or otherwise dispose of any Working Capital Escrowed Rollover Securities and any
such purported transfer shall be null and void ab initio. The Escrow Agent shall have no authority to alter its records to reflect any purported transfer of an Escrowed Rollover Security or to make any payment or distribution under this
Escrow Agreement to any such purported transferee except such transfers or payments made to Parent consistent with Article IV hereof. 
 The
Escrow Agent shall establish a segregated account (the “Working Capital Escrow Account”) and shall hold in the Working Capital Escrow Account the Working Capital Escrow Deposit and the Working Capital Escrowed Rollover Securities
and all interest, profits, securities or other

  

 Working Capital Escrow Agreement 
 2 

 
income thereon or with respect thereto and any proceeds therefrom (the “Working Capital Escrow Fund”). Any interest and profits on, any securities or other non-cash properties
delivered with respect to, and any proceeds from, the Working Capital Escrow Fund shall be credited to and become part of the Working Capital Escrow Fund and, if and to the extent such amounts are delivered in cash, may be reinvested as provided in
Section III. The purpose of the Working Capital Escrow Account is to provide a source from which any amounts owing from time to time to Parent by the Former Company Stockholders pursuant to Sections 3.3(f) and 3.3(g) of the Merger Agreement shall be
paid. It is understood and agreed by the parties hereto that the Working Capital Escrow Fund shall be separate and independent from the Escrow Amount. The Escrow Agent shall establish the Working Capital Escrow Account solely for deposit of the
Working Capital Escrow Deposit and the Working Capital Escrowed Rollover Securities and will establish a separate account for holding the Escrow Amount. 
 At the time that the deposits described in Section II.A and Section II.B are made, the Escrow Agent, in conjunction with the Former Company Stockholders’ Agent and Parent shall calculate the
following values based on the information on Schedule I: 
 The “Individual Cash Escrow Percentage” for each Former
Company Stockholder shall equal (i) the amount of cash contributed by each Former Company Stockholder to the Working Capital Escrow Deposit as shown under the heading “Working Capital Cash Escrowed” on Schedule I hereto
divided by (ii) $2,050,000. 
 The “Aggregate Cash Escrow Percentage” shall equal the aggregate percentage
represented by combining each Individual Cash Escrow Percentage. 
 The “Individual Escrowed Securities
Value” shall equal, for each Rollover Shareholder (i) the number of Working Capital Escrowed Rollover Securities deposited by each Rollover Shareholder multiplied by
(ii) $[            ]1 (the “Preferred Stock Per Share Price”). 
 The “Aggregate Escrowed
Securities Value” shall equal the aggregate value of the Individual Escrowed Securities Values for all Rollover Shareholders. 
 The
“Individual Securities Escrow Percentage” for each Rollover Shareholder shall equal (i) the Individual Escrowed Securities Value attributable to each Rollover Shareholder divided by (ii) $2,050,000. 
 The “Aggregate Securities Escrow Percentage” shall equal the aggregate percentage represented by combining the Individual Securities Escrow
Percentages for all Rollover Shareholders. 
 Schedule I shall be amended by the Escrow Agent from time to time, consistent with the form
provided in Schedule I, as necessary to reflect all payments or distributions of cash or release of Working Capital Escrowed Rollover Securities from escrow hereunder and in order to keep record of each Former Company Stockholder’s
and/or Rollover Shareholder’s remaining interest in the Working Capital Escrow Funds and the Working Capital Escrowed Rollover Securities, as applicable. 
  

	1	 Insert the amount per share paid by the WP Entities for Parent shares. 

  

 Working Capital Escrow Agreement 
 3 

 The Escrow Agent shall invest and reinvest the Working Capital Escrow Fund as provided in Section III.

 Management of Working Capital Escrow Fund. 
 Investment of Working Capital Escrow Fund: The Working Capital Escrow Fund shall be invested and reinvested by the Escrow Agent in such investments as shall be directed in joint written investment
instructions from Parent and the Former Company Stockholders’ Agent. In the absence of joint written instructions from Parent and the Former Company Stockholders’ Agent, the Escrow Agent shall invest the Working Capital Escrow Fund in
(i) obligations of, or obligations fully and directly guaranteed as to timely payment of principal and interest by, the United States of America, which obligations have a maturity of not more than 90 days, (ii) repurchase obligations with
a term of not more than 10 days for underlying securities of the types described in clause (i) above entered into with any bank or trust company organized under the law of the United States of America or the law of any state of the United
States which has a long term debt rating from Moody’s Investor’s Service, Inc. of at least Aaa or from Standard & Poor’s Corporation of at least AAA (each, an “Approved Bank”), (iii) certificates of
deposit issued by any Approved Bank, which certificates of deposit have a maturity of not more than 90 days, or (iv) money market funds registered under the Investment Company Act of 1940, as amended (the “Investment Company
Act”), the portfolios of which are limited to “government securities” (as defined in the Investment Company Act). The Escrow Agent may liquidate any investments held in the Working Capital Escrow Account in order to provide funds
necessary to make required payments under this Agreement. No investment shall exceed the term of this Agreement. 
 The Escrow Agent shall
provide to Parent and the Former Company Stockholders’ Agent periodic statements reflecting transactions executed on behalf of the Working Capital Escrow Fund and the then current balance of the Working Capital Escrow Fund. 
 The Escrow Agent shall have no liability for any loss sustained as a result of any investment made pursuant to the joint written investment instructions of
Parent and Former Company Stockholders’ Agent or otherwise authorized pursuant to this Section III or as a result of any liquidation of any investment prior to its maturity. 
 The Rollover Shareholders shall be entitled to vote the Working Capital Escrowed Rollover Securities as are owned by each such Rollover Shareholder as indicated on Schedule I hereto and as are,
from time to time, held hereunder for such Rollover Shareholder’s account as Working Capital Escrowed Rollover Securities by instructing the Escrow Agent in writing; provided, however, that in order for any such Rollover
Shareholder to exercise such entitlement, he, she or it must notify the Escrow Agent in writing no later than five business days prior to the proposed vote. Rollover Shareholders shall also be entitled to receive any dividend or distribution thereon
(other than dividends or distributions in the form of additional Working Capital Escrowed Rollover Securities or property other than cash issued in a Liquidating Distribution or otherwise falling within the definition of Working Capital Escrowed
Rollover Securities hereunder and pursuant to Section II.B above, all of which property shall be delivered to the Escrow Agent and held as part of the Escrowed Shares). 
  

 Working Capital Escrow Agreement 
 4 

 Distribution of the Working Capital Escrow Fund. The Escrow Agent shall distribute the Working
Capital Escrow Fund as follows: 
 Upon receipt by the Escrow Agent at any time of written instructions signed by Parent directing the
Escrow Agent to pay any amount from the Working Capital Escrow Fund, the Escrow Agent promptly shall make payment of such amount in accordance with those instructions and consistent with Section IV.B hereof. 
 In the case of any distribution or payment to be made pursuant to Section IV.A hereof, the Escrow Agent shall pay the Aggregate Cash Escrow Percentage of
such distribution or payment from the Working Capital Escrow Deposit (allocating such amount to individual Former Company Stockholders based upon the Individual Cash Escrow Percentage of each Former Company Stockholder having an interest therein)
and shall satisfy the Aggregate Securities Escrow Percentage of such distribution or payment from the Working Capital Escrowed Rollover Securities (allocating such amount to individual Rollover Shareholders based upon the Individual Securities
Escrow Percentage of each Rollover Shareholder having an interest therein and determining the number of Escrow Rollover Securities to so release based on the Preferred Stock Per Share Price). With regards to any Working Capital Escrowed Rollover
Securities to be so distributed or released pursuant to this Section IV, such Working Capital Escrowed Rollover Securities shall be delivered by the Escrow Agent to the Parent and treated by the Parent in the manner provided for in Article V hereof.

 Distributions or payments of cash to Parent shall be made to it pursuant to the wiring instructions provided for on Schedule III
hereto. 
 The Escrow Agent shall continue to hold the Working Capital Escrow Fund, including the Working Capital Escrowed Rollover Securities,
in its possession except as provided in this Agreement. 
 Upon delivery, release or payment of the entire balance of the Working Capital Escrow
Fund, including the Working Capital Escrowed Rollover Securities, as provided in this Section IV, the Escrow Agent shall be released and discharged from any further obligation under this Agreement. 
 Cancellation of Working Capital Escrowed Rollover Securities. It is expressly acknowledged and agreed that the Parent shall forthwith
cancel the Escrowed Rollover Security represented by any certificate(s) delivered to it by the Escrow Agent pursuant to Section IV (whereupon all ownership interests in the Parent represented thereby shall be extinguished and the Escrow Agent shall
have no liability thereafter with respect to such cancelled certificate(s)); provided, however, that, in the event the certificate(s) so delivered represent a number of Working Capital Escrowed Rollover Securities greater than the
number of Working Capital Escrowed Rollover Securities required to be delivered with respect to a particular Rollover Shareholder, then the Parent shall promptly cause to be issued to and in the name of such Rollover Shareholder, a new certificate,
duly endorsed, in respect of such excess number of Working Capital Escrowed Rollover Securities and shall deliver such new certificate to the Escrow Agent to be held as provided hereunder. 
  

 Working Capital Escrow Agreement 
 5 

 Termination. This Agreement shall automatically terminate if and when the Escrow Agent in
accordance with the terms of this Agreement shall have distributed the entire Working Capital Escrow Fund. 
 Escrow Agent.

 The Escrow Agent undertakes to perform only such duties as are expressly set forth in this Agreement and no duties shall be implied. The
Escrow Agent shall have no liability under and no duty to inquire as to the provisions of any agreement other than this Agreement. 
 The Escrow
Agent may rely upon, and shall not be liable for acting or refraining from acting upon, any written notice, instruction or request furnished to it under this Agreement and believed by it to be genuine and to have been signed or presented by the
proper party or parties. The Escrow Agent shall be under no duty to inquire into or investigate the validity, accuracy or content of any such document. 
 The Escrow Agent shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines that the Escrow Agent’s gross
negligence or willful misconduct was the primary cause of any loss to any Parent Indemnified Party, Escrow Agent, any Stockholders Indemnified Party or the Former Company Stockholders’ Agent. 
 The Escrow Agent may execute any of its powers and perform any of its duties hereunder directly or through agents or attorneys (and shall be liable only for
the careful selection of any such agent or attorney) and may consult with counsel, accountants and other skilled persons to be selected and retained by it. The Escrow Agent shall not be liable for anything done, suffered or omitted in good faith by
it in accordance with the advice or opinion of any such counsel, accountants or other skilled persons. 
 In the event that the Escrow Agent
shall be uncertain as to its duties or rights under this Agreement or shall receive instructions, claims or demands from any party hereto which, in its opinion, conflict with any of the provisions of this Agreement, it shall be entitled to refrain
from taking any action and its sole obligation shall be to keep safely all property held in escrow until it shall be directed otherwise in writing (i) by Parent and the Former Company Stockholders’ Agent, or (ii) by a final order or
judgment of a court of competent jurisdiction or by a final decision by an arbitrator appointed as provided in Section 11.6(d) of the Merger Agreement. 
 In no event shall the Escrow Agent be liable for any special, indirect or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Escrow Agent has been
advised of the likelihood of such loss or damage and regardless of the form of action. 
  

 Working Capital Escrow Agreement 
 6 

 Succession. The Escrow Agent (and any successor escrow agent) may at any time resign as such upon
60 days prior notice to each of the other parties. Upon receipt of a notice of resignation, each of the other parties shall use their best efforts to select a successor escrow agent within 60 days, but if within that 60-day period the Escrow Agent
has not received a notice signed by both of the other parties appointing a successor escrow agent and setting forth its name and address, then (i) the Escrow Agent’s resignation shall become effective on such 60th day and (ii) the Escrow
Agent’s sole responsibility thereafter shall be to safekeep the Working Capital Escrow Fund until receipt of (A) a designation of a successor escrow agent or (B) joint instructions signed by Parent and the Former Company Stockholders’
Agent, or a copy of final non-appealable order of a court of competent jurisdiction, or a final decision of an arbritator appointed as provided in Section 11.6 of the Merger Agreement, in each case setting forth the manner in which the Escrow Agent
shall dispose of the Working Capital Escrow Fund. 
 Fees. Parent and the Former Company Stockholders’ Agent shall
bear equally the amount of all reasonable fees and expenses payable to the Escrow Agent (with Former Company Stockholders’ Agent’s portion to be deducted from the Working Capital Escrow Fund). Parent and the Former Company
Stockholders’ Agent agree to (a) pay the Escrow Agent upon execution of this Agreement and from time to time thereafter reasonable compensation for the services to be rendered hereunder, which unless otherwise agreed in writing shall be as
described in Schedule II hereto, and (b) pay or reimburse the Escrow Agent upon request for all expenses, disbursements and advances, including reasonable attorney’s fees and expenses, incurred or made by it in connection with the
preparation, execution, performance, delivery, modification and termination of this Agreement. 
 Indemnity. Parent and the Former
Company Stockholders’ Agent (with Former Company Stockholders’ Agent’s portion to be deducted from the Escrow Fund) shall indemnify, defend and hold harmless the Escrow Agent and its directors, officers, agents and employees (the
“Indemnitees”) from all loss, liability or expense (including the reasonable fees and expenses of outside counsel) arising out of or in connection with (a) the Escrow Agent’s execution and performance of this Agreement,
except in the case of any Indemnitee to the extent that such loss, liability or expense is due to the gross negligence or willful misconduct of such Indemnitee, or (b) its following any instructions or other directions from Parent or the Former
Company Stockholders’ Agent, except to the extent that its following any such instruction or direction is contrary to the express terms of this Agreement. Parent and the Former Company Stockholders’ Agent acknowledge that the foregoing
indemnification obligations shall survive the resignation or removal of the Escrow Agent or the termination of this Agreement. Parent and the Former Company Stockholders’ Agent hereby grant the Escrow Agent a lien on, right of set-off against
and security interest in the Working Capital Escrow Fund for the payment of any claim for indemnification, compensation, expenses and amounts due under this Agreement. 
  

 Working Capital Escrow Agreement 
 7 

 Taxes. The Former Company Stockholders’ Agent shall be responsible for, on behalf of the
Former Company Stockholders, all taxes arising from or attributable to the Working Capital Escrow Fund, except to the extent any portion of the Working Capital Escrow Fund is paid to Parent in respect of claims made under Article XI of the Merger
Agreement. The Escrow Agent shall issue all Internal Revenue Service Forms 1099 (or any successor forms) relating to the Working Capital Escrow Account or the Working Capital Escrow Fund to and in the name of the Former Company Stockholder’s
Agent. 
 Notices. All communications under this Agreement shall be in writing and shall be deemed to be duly given and
received: (a) upon delivery if delivered personally; (b) on the next business day (as hereinafter defined) if sent by overnight courier; (c) upon transmission by facsimile if receipt is confirmed by telephone, provided transmission is
made during regular business hours, or if not, the next business day; or (d) four business days after mailing if mailed by prepaid registered mail, return receipt requested, to the appropriate notice address set forth on Schedule III
hereto or at such other address as any party hereto may have furnished to the other parties in writing by registered mail, return receipt requested. Notwithstanding the above, communications shall be deemed to have been given on the date received by
the Escrow Agent. 
 Security Procedures. In the event funds transfer instructions are given, whether in writing, by
telecopier or otherwise, the Escrow Agent may seek confirmation of such instructions by telephone call-back to the person or persons designated on Schedule IV, and the Escrow Agent may rely upon the confirmation of anyone purporting to be the
person or persons so designated. The persons and telephone numbers for call-backs may be changed only in a writing actually received and acknowledged by the Escrow Agent. If the Escrow Agent is unable to contact any of the authorized representatives
identified in Schedule IV, the Escrow Agent may seek confirmation of such instructions by telephone call-back to any one or more of a party’s executive officers (“Executive Officers”), which shall include the titles of
Chief Executive Officer, President and Vice President, as the Escrow Agent may select. Upon the Escrow Agent’s request, an Executive Officer shall deliver to the Escrow Agent a fully executed Incumbency Certificate, and the Escrow Agent may
rely upon the confirmation of anyone purporting to be any such officer. The Escrow Agent and the beneficiary’s bank in any funds transfer may rely solely upon any account numbers or similar identifying numbers provided by Parent or the Former
Company Stockholders’ Agent to identify (a) the beneficiary, (b) the beneficiary’s bank, or (c) an intermediary bank. 
 Former Company Stockholders’ Agent. At any time during the term of this Agreement, the Former Company Stockholders’ Agent may notify Parent and the Escrow Agent in writing that the Former Company Stockholders have
designated another person to act on behalf of the Former Company Stockholders as the Former Company Stockholders’ Agent hereunder, in accordance with Section 11.7 of the Merger Agreement. 
 Miscellaneous. 
 This Agreement
contains, and is intended as, a complete statement of all of the terms of the arrangements among the parties with respect to the subject matter hereof, supersedes any

  

 Working Capital Escrow Agreement 
 8 

 
previous agreements and understandings between the parties with respect to those matters, and cannot be changed or terminated orally. 
 This Agreement may not be altered or modified, nor may any condition or covenant set forth herein be waived, without the express written consent of each of
the parties hereto. 
 This Agreement shall be governed by and construed in accordance with the law of the State of New York applicable to
agreements made and to be performed in New York. 
 The section headings of this Agreement are for reference purposes only and are not to be
given any effect in the construction or interpretation of this Agreement. 
 This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original and all of which taken together shall constitute one and the same instrument. 
 If any provision of
this Agreement is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision shall be deemed modified to give it the maximum effect permitted by law, and such determination shall not impair
or affect the validity, legality or enforceability of the remaining provisions hereof. 
 None of the parties may assign any of its rights or
delegate any of its duties under this Agreement without the prior written consent of the others. 
 This Agreement does not create, and shall
not be construed as creating, any rights in favor of any person not a party to this Agreement. 
 The courts of the State of New York in New
York County and the United States District Court for the Southern District of New York shall have jurisdiction over the parties with respect to any dispute or controversy between them arising under or in connection with this Agreement and/or the
transactions contemplated thereby and, by execution and delivery of this Agreement, each of the parties to this Agreement submits to the jurisdiction of those courts, including, but not limited to, the in personam and subject matter jurisdiction of
those courts, waives any objection to such jurisdiction on the grounds of venue or forum non conveniens, the absence of in personam or subject matter jurisdiction and any similar grounds, consents to service of process by mail (in accordance with
Section XI) or any other manner permitted by law, and irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement. These consents to jurisdiction shall not be deemed to confer rights on any person other than the
parties to this Agreement. NOTWITHSTANDING THE FOREGOING, PARENT AND THE FORMER COMPANY STOCKHOLDERS’ AGENT HEREBY ACKNOWLEDGE THAT ALL DISPUTES RELATING TO THE MERGER AND THE MERGER AGREEMENT SHALL BE RESOLVED IN ACCORDANCE WITH THE TERMS OF
THE MERGER AGREEMENT. 
 [Signature Page Follows.] 
  

 Working Capital Escrow Agreement 
 9 

 IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed by a duly
authorized officer as of the day and year first written above. 
  

									
	ESCROW AGENT	 		 	[                    ]
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
			
	COMPANY	 		 	CELLU PAPER HOLDINGS, INC.
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
			
	PARENT	 		 	CELLU PARENT CORPORATION
					
		 		 		 	By:	 	 
		 		 		 		 	Name:
		 		 		 		 	Title:
				
	FORMER COMPANY STOCKHOLDERS’ AGENT	 		 	By:	 	 
		 		 		 	CHARTER AGENT LLC, as the agent for and on behalf of the Former Company Stockholders

 [Signature Page to Working Capital Escrow Agreement] 

 SCHEDULE I 
 STOCKHOLDERS CONTRIBUTING TO ESCROW DEPOSIT (Excluding Rollover Shareholders) 
  

									
	 Former Company Stockholder
	  	 Address
	  	 TIN
	  	 Working Capital
 Cash Escrowed
	  	 Individual Cash
 Escrow Percentage

		  	 City:
 State:
 Zip:
 Phone: (    )
–
 Fax: (    ) –
 Email:
	  		  		  	
					
		  	 City:
 State:
 Zip:
 Phone: (    )
–
 Fax: (    ) –
 Email:
	  		  		  	
		  		  		  		  	
		  		  		  		  	

  

					
		 	Working Capital Escrow Deposit:	 	$_______________
			
		 	Aggregate Cash Escrow Percentage:	 	                    %  

 [Schedule I to Working Capital Escrow Agreement] 

 ROLLOVER SHAREHOLDERS 
  

											
	 Rollover Shareholder
	  	 Address
	  	 TIN
	  	 Working Capital
Escrowed Rollover
Securities
(Stock
Certificate Number(s))
	  	 Individual Escrowed
Securities
Value
	  	 Individual Securities
Escrow
Percentage

		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  		  	
						
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  		  	
						
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  		  	
						
		  	 City:
 State:
 Zip:
 Phone: (    ) -

Fax: (    ) -
 Email:
	  		  		  		  	

  

					
		 	 Aggregate Escrowed Securities Value:
	 	$_______________
			
		 	 Aggregate Securities Escrow Percentage:
	 	_______________%

 [Schedule I to Working Capital Escrow Agreement] 

 SCHEDULE II 
 Escrow Agent’s Compensation 
 [Schedule II
to Indemnification Escrow Agreement] 

 SCHEDULE III 
 Notice Addresses 
 Parent Notice Address: 
 c/o Weston Presidio V, L.P. 
 Pier 1, Bay 2

 San Francisco, CA 94111 
 Attention:
R. Sean Honey and Therese Mrozek 
 Fax No: (415) 398-0990 
 Tel. No: (415) 398-0770 
 with a copy to: 
 Ropes & Gray L.L.P. 
 One International
Place 
 Boston, Massachusetts 02110 
 Attention: David C. Chapin, Esq. and Shari Wolkon, Esq. 
 Fax No: (617) 951-7050 
 Tel. No: (617) 951-7371 
 Tel. No.:
(617) 951-7861 
 Parent TIN: 
 Wiring Instructions: 
 Account Name: 
 Bank Name: 
 Bank City/State: 
 ABA#: 
 Account Number: 
 The Former Company Stockholders’ Agent Notice Address: 
 Charter Agent LLC 

c/o Charterhouse Group, Inc. 
 535 Madison Avenue

 New York, New York 10022 
 Attention:
William Landuyt 
 Fax No: 212-750-9704 
 Tel. No: 212-584-3216 
 with a copy to: 
 Proskauer Rose LLP 
 1585 Broadway 
 New York, New York 10036 
 Attention: Stephen W. Rubin, Esq. 
 [Schedule III to Indemnification Escrow Agreement] 

 Fax No: 212-969-2900 
 Tel. No: 212-969-3000 
 The Former Company Stockholders’ Agent TIN: 
 Wiring Instructions: 
 Account Name:

 Bank Name: 
 ABA#: 
 Account Number: 
 Escrow Agent Notice Address:

 [            ] 
 [            ] 
 Attention:
[            ] 
 Fax No: (    ) - 
 Tel. No.: (    ) - 
 [Schedule III to the Indemnification Escrow Agreement] 

 SCHEDULE IV 
 Call-Back Information 
 Telephone Number(s) for Call-Backs
and Person(s) Designated to Confirm Funds Transfer Instructions 
 If to Parent:  
 Name - Telephone Number  
 1. 
 2. 
 If to the Former Company Stockholders’
Agent:  
 Name - Telephone Number  
 1. 
 2. 
 Telephone call-backs shall be made to Parent and the Former Company Stockholders’ Agent if joint instructions are required pursuant to this Agreement. 
 [Schedule IV to the Indemnification Escrow Agreement] 

 Exhibit 3.3(f) 
 Unaudited Statement of Net Working Capital 
 Unaudited
Statement of Net Working Capital 
 LTM through fiscal March 2006 
 (millions) 
  

				
	 Working Capital Item
	  	Amount
	 Accounts receivable
	  	$	35.3
	 Inventory
	  	 	28.9
	 Prepaid Expenses
	  	 	3.6
		  	 	 
		  	 	67.8
		  	 	 
	 Accounts Payable
	  	 	19.8
	 Accrued Expenses
	  	 	13.3
		  	 	 
		  	 	33.1
		  	 	 
	 Net Working Capital
	  	$	34.7

 Note l 
 The accompanying Unaudited Statement of Net Working Capital includes certain of the current assets and current liabilities of the Company. The Statement of Net Working Capital has been prepared in
accordance with generally accepted accounting principles applied on a basis consistent with the Company Audited Financials, subject to the adjustments described below. 
 Note 2 
 Cash and Cash Equivalents 
 Company Cash, as defined in the Agreement, is excluded from Net Working Capital. 
 Accounts Receivable 
 Accounts receivable are carried net of allowances for doubtful
accounts, rebates, customer claims and discounts. 
 Inventory 
 Inventory includes all costs directly associated with manufacturing products: raw materials, finished goods other chemicals/materials, labor and manufacturing overhead. These values are presented at the
lower of cost or market. 

 Prepaid Expenses 
 Prepaid expenses include prepaid insurance, utilities, rent and other services. Prepaid taxes are excluded. 
 Current Liabilities 
 Current liabilities are recorded as incurred. Liabilities for goods
received are recorded at the time of receipt consistent with the terms of the sale. Liabilities for service are recorded at the time services are rendered. Unpaid payroll and benefits are accrued. 
 Deferred Income Taxes 
 Deferred income tax
assets and liabilities are excluded from Net Working Capital. 
 Taxes 
 Income taxes receivable or payable are excluded from Net Working Capital. 
 Indebtedness 

 Indebtedness, as defined in the Agreement, including accrued interest, is excluded from Net Working Capital. 
 Accounts Payable and Accrued Expenses 
 Accounts payable or accrued liabilities to the extent included as Company Transaction Expenses, as defined in the Agreement, are excluded from Net Working Capital. 
 Other Excluded Items 
 Amounts relating to the following are excluded from Net Working
Capital: 
  

	 	•	 	 Any liability for workers compensation in excess of the amount for which invoices have been received by the Company immediately prior to the Effective
Time. 

  

	 	•	 	 Environmental Clean-up at East Hartford related to the oil spill in 2005 

  

	 	•	 	 Current assets, if any, relating to the life insurance policies for Thomas Gallagher. 

  

	 	•	 	 Any liabilities arising from or with respect to obligations to Thomas Gallagher under the following agreements: 

  

	 	a.	Separation Agreement, dated February 3, 2003, between Thomas Gallagher and CTH. 

  

	 	b.	Supplemental Retirement Agreement, dated May 9,1996, between Thomas Gallagher and Coastal Paper. 

  

	 	c.	Supplemental Retirement Agreement, dated September 29,1992, between Thomas Gallagher and Coastal Paper 

  

	 	d.	Consulting and Release of Claims Agreement, dated February 3, 

	 	 
2003, between Thomas Gallagher and CTH. 

  

	 	•	 	 Any liabilities arising from or with respect to the U.S. Department of Labor – Occupational Safety and Health Administration citation of 2/23/06
with respect to Cellu Tissue Corporation – Natural Dam 

 Schedule 3.3(i) 
 “WP Minimum Return Threshold” shall mean (i) with respect to any Change of Control that is consummated at any time
during the Earn-Out Period the lesser of an amount (i) that would result in a 35% IRR on the amount of the WP Investment or (b) that is equal to 1.75 times the WP Investment and (ii) with respect to any Change of Control that is
consummated at any time after the expiration of the Earn-Out Period an amount that is equal to 2.00 times the WP Investment. 

 Cellu Paper Holdings, Inc. 
 Earnout Waterfall - Illustrative Numbers for Calculation 
 ($ in mm) 
 Illustrative Example - Assumptions 
  

					
	 New Buyer Equity
	  	$	40.0	  
	 Minimum Return Multiple Threshold
	  	 	1.75	x 
	 Year of Sale
	  	 	4	  
	 Cumulative Earnout Realized Prior to COC
	  	$	17.5	  

 Illustrative Examples - Waterfall 
  

										
	 	  	Example 1	  	Example 2	  	Example 3
	 Equity Proceeds from Sale
	  	$	70.0	  	$	80.0	  	$	100.0
	 Buyer Minimum Return Threshold
	  	 	70.0	  	 	70.0	  	 	70.0
		  	 	 	  	 	 	  	 	 
	 Proceeds above Threshold
	  	$	0.0	  	$	10.0	  	$	30.0
	 Earnout True-Up
	  	 	—  	  	 	10.0	  	 	17.5
		  	 	 	  	 	 	  	 	 
	 Excess Proceeds To Buyer
	  	$	—  	  	$	—  	  	$	12.5
	 Total Proceeds to Buyer
	  	$	70.0	  	$	70.0	  	$	82.5
	 Total Earnout Realized
	  	$	17.5	  	$	27.5	  	$	35.0

 Note: 35% IRR threshold exceeds 1.75x multiple threshold in this example. 

 Exhibit 9.2(1) 
 Form of Former Company Stockholders Indemnification Agreement 

 INDEMNIFICATION AGREEMENT 
 THIS INDEMNIFICATION AGREEMENT, dated as of
[                            ], 2006 (this “Agreement”), is among Cellu Parent
Corporation, a Delaware corporation (“Parent”), Cellu Acquisition Corporation, a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), and each Former Company Stockholder (as defined below) listed on
Schedule A hereto. Capitalized terms defined in the Merger Agreement (as defined below) and not otherwise defined in this Agreement are used in this Agreement as such terms are defined in the Merger Agreement. 
 WHEREAS, Parent, Merger Sub and Cellu Paper Holdings, Inc., a Delaware corporation (the “Company”), have entered into an
Agreement and Plan of Merger dated as of May     , 2006 (the “Merger Agreement”), pursuant to which Parent, Merger Sub and the Company have agreed, subject to the terms and conditions thereof, to enter
into a business combination pursuant to which Merger Sub will be merged with and into the Company and each share of Company Common Stock, each Company Option and each Company Warrant outstanding as of the Effective Time will be converted into the
right to receive the Per Share Merger Consideration, the applicable Option Consideration or the applicable Warrant Consideration, as the case may be; 
 WHEREAS, each of the Persons set forth on Schedule A hereto is the owner and holder of Company Common Stock, in-the-money Company Options and/or in-the-money Company Warrants, as of the date hereof
(each such person, a “Former Company Stockholder”); 
 WHEREAS, subject to the terms and conditions of Article
XI of the Merger Agreement, the Merger Agreement provides for the indemnification of Parent, Merger Sub the Surviving Corporation and their respective officers, directors, employees and Affiliates (collectively, the “Parent Indemnified
Parties”) for up to $17,120,000 in Damages (the “Cap”) incurred by the Parent Indemnified Parties by reason of (i) the inaccuracy or breach by the Company of any representation or warranty of the Company contained in
the Merger Agreement or in the certificate delivered pursuant to Section 9.2(a) or 9.2(b) of the Merger Agreement (in each case, as such representation or warranty would read if all qualifications as to materiality, including each reference to
the defined term “Company Material Adverse Effect,” were deleted therefrom), or (ii) any of the matters set forth on Schedule 4.16 of the Company Disclosure Schedules; 
 WHEREAS, pursuant to Section 3.2(a) of the Merger Agreement, at the Closing, Parent shall withhold from the Merger Consideration
otherwise payable at the Closing the amount of $8,220,000 (the “Escrow Amount”), and deliver the Escrow Amount to the Escrow Agent as partial security for the indemnification obligations of the Former Company Stockholders contained
in Article XI of the Merger Agreement arising after the Effective Time; 
 WHEREAS, pursuant to Section 3.2(b) of the
Merger Agreement, at the Closing, Parent shall withhold from the Merger Consideration otherwise payable at the Closing the amount of $2,050,000 (the “Working Capital Escrow Amount”) and deliver the Working Capital Escrow

  

 Former Company Stockholders Indemnification Agreement 

 
Amount to the Escrow Agent as partial security for the obligations of the Former Company Stockholders to pay for the shortfall, if any, in the difference between Actual Net Working Capital and
Estimated Net Working Capital; 
 WHEREAS, Section 3.3(g) of the Merger Agreement provides for the payment in cash by the
Former Company Stockholders on a several (but not joint) basis to Parent, under certain circumstances, of any amounts resulting from the difference between the Estimated Net Cash and the Actual Net Cash; 
 WHEREAS, pursuant to Section 8.6 of the Merger Agreement, the Former Company Stockholders shall pay, on a several (but not joint)
basis, subject to the Cap, all reasonable third-party costs, fees and expenses incurred in connection with obtaining the Environmental Land Use Restriction at the Company’s East Hartford facility (the “ELUR Amounts”);

 WHEREAS, pursuant to Section 11.7 of the Merger Agreement, Charter Agent LLC shall act as the Former Company
Stockholders’ Agent (as defined below) on behalf of the Former Company Stockholders in accordance with Section 11.7 of the Merger Agreement, and each Former Company Stockholder shall indemnify the Former Company Stockholders’ Agent
and hold it harmless against any loss, liability or expense incurred on the part of the Former Company Stockholders’ Agent and arising out of or in connection with the acceptance or administration of its duties under this Agreement or the
Merger Agreement; and 
 WHEREAS, in connection with and in consideration of the transactions contemplated by the Merger
Agreement, the parties desire to enter into this Agreement to provide for, among other things, certain obligations of the Former Company Stockholders after the Effective Time, subject to the other terms of this Agreement and the Merger Agreement:
(i) to make indemnification payments to the Parent Indemnified Parties hereunder to the extent that the Escrow Amount does not satisfy the aggregate Damages for which indemnification is required under Article XI of the Merger Agreement (not to
exceed the Cap); (ii) to pay to the Parent an amount equal to the excess, if any, of (a) the difference between the Actual Net Working Capital and the Estimated Net Working Capital, over (b) the Working Capital Escrow Amount;
(iii) to pay to the Parent an amount equal to the difference between Estimated Net Cash and Actual Net Cash; (iv) to pay the ELUR Amounts, subject to the Cap; and (v) to indemnify the Former Company Stockholders’ Agent and hold
it harmless against any loss, liability or expense incurred on the part of the Former Company Stockholders’ Agent and arising out of or in connection with the acceptance or administration of its duties under this Agreement or the Merger
Agreement; 
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and
intending to be legally bound hereby, Parent and the Former Company Stockholders hereby agree as follows: 
 1. GENERAL INDEMNIFICATION.

 1.1. Indemnification of Parent. From and after the Effective Time and subject to the limitations contained in this
Section 1 and Article XI of the Merger Agreement, the Former Company Stockholders shall indemnify, on a several (and not joint) basis, the Parent

  

 Former Company Stockholders Indemnification Agreement 
 - 2 - 

 
Indemnified Parties and hold the Parent Indemnified Parties harmless against any Damages that the Parent Indemnified Parties have incurred by reason of (i) the inaccuracy or breach by the
Company of any representation or warranty of the Company contained in the Merger Agreement or in the certificate delivered pursuant to Section 9.2(a) or Section 9.2(b) of the Merger Agreement (in each case, as such representation or
warranty would read if all qualifications as to materiality, including each reference to the defined term “Company Material Adverse Effect”, were deleted therefrom), and (ii) any of the matters set forth on Schedule 4.16 of the
Company Disclosure Schedules. All such calculations of Damages shall take into account any offset benefits or insurance proceeds received in connection with the matter out of which such Damages shall arise net of any premium increases directly
resulting therefrom and shall take into account any refund, credit or actual reduction in Taxes realized by the Parent Indemnified Parties as a result of such Damages (including any such Tax benefit realized in the taxable period in which such
Damages were incurred or a taxable period beginning after the tax period in which such Damages were incurred); provided, that any benefit referred to above that occurs after the Parent Indemnified Parties have recovered Damages in accordance
with this Section 1 and Article XI of the Merger Agreement shall be promptly paid to the Former Company Stockholders’ Agent to be disbursed to the Former Company Stockholders. Each of Parent and Merger Sub shall be deemed to have waived on
behalf of all Parent Indemnified Parties any clam for Damages to the extent set forth in Section 2 of the letter dated as of the date hereof, between the Company and Parent (Re: Indemnification Matters) (the “Indemnification Matters
Letter”). Notwithstanding anything herein to the contrary, (a) the Parent Indemnified Parties shall not be entitled to seek indemnification with respect to any Damages arising under clause (i) above unless and until the aggregate
amount of all Damages suffered by the Parent Indemnified Parties as a result of such breach(es) exceeds in the aggregate the amount set forth as the Deductible in Section 1.3 and then the Parent Indemnified Parties shall be entitled to
indemnification only for such aggregate amount that exceeds the Deductible; provided, that the Deductible shall not apply to Damages incurred by reason of the matters set forth in Section 1 of the Indemnification Matters Letter;
(b) a breach of a representation or warranty shall not be deemed to have occurred and the Parent Indemnified Parties shall not be deemed to have incurred any Damages under clauses (i) or (ii) above unless any Damages arising from such
breach or matter set forth on Schedule 4.16 of the Company Disclosure Schedules, as the case may be, exceeds (together with all other claims so substantially related as to effectively constitute one claim) $100,000; provided, that such
$100,000 threshold shall not apply to Damages incurred by reason of the matters set forth in Section 1 of the Indemnification Matters Letter; (c) the aggregate amount of all payments to which the Parent Indemnified Parties shall be
entitled to receive in satisfaction of claims for indemnification pursuant to this Section 1.1 and pursuant to Section 11.1 of the Merger Agreement and claims under Section 5 and under Section 8.6 of the Merger Agreement shall in
no event exceed the amount set forth in Section 1.3 as the Cap; (d) the Parent Indemnified Parties shall not be entitled to seek indemnification for Damages to the extent that the items giving rise to such Damages had been accounted for in
any of the adjustments to the Merger Consideration pursuant to Sections 3.3(f), (g) and (h) of the Merger Agreement; (e) the Parent Indemnified Parties shall not be entitled to seek indemnification with respect to any Damages arising
under clause (ii) above unless and until (A) the aggregate amount of all Damages suffered by the Parent Indemnified Parties under clause (ii) above exceeds in the aggregate the amount set forth as the Schedule 4.16 Matters Deductible
in Section 1.3 and (B) the aggregate amount of all Damages suffered by Parent Indemnified Parties under clauses (i)

  

 Former Company Stockholders Indemnification Agreement 
 - 3 - 

 
and (ii) above exceeds in the aggregate the sum of the amount set forth as the Schedule 4.16 Matters Deductible and the amount set forth as the Deductible in Section 1.3, and, then the
Parent Indemnified Parties shall be entitled to indemnification only for such aggregate amount that exceeds the sum of the Schedule 4.16 Matters Deductible and the Deductible; and (f) the Parent Indemnified Parties shall not be deemed to have
incurred any Damages under clauses (i) or (ii) in the first sentence of this Section 1.1 with respect to any of the matters set forth on Schedule 11.1 attached to the Merger Agreement. In no event shall the Former Company
Stockholders be liable for any punitive, special or exemplary damages except to the extent actually payable by a Parent Indemnified Party to a third party. 
 1.2. Exclusive Remedies. Subject to the final sentence of this Section 1.2, the parties agree that notwithstanding anything to the contrary set forth in this Agreement, the Merger Agreement or
otherwise, from and after the Effective Time, the indemnification provisions of this Agreement and of Article XI of the Merger Agreement are the sole and exclusive remedies of the parties pursuant to this Agreement, the Merger Agreement or in
connection with the transactions contemplated hereby or thereby. From and after the Effective Time, to the maximum extent permitted by law, but subject to the final sentence of this Section 1.2, the parties hereby waive all other rights,
claims, remedies or actions with respect to any matter in any way relating to this Agreement, the Merger Agreement or arising in connection herewith or therewith, whether under any foreign, federal, state, provincial or local laws, statutes,
ordinances, rules, regulations, requirements or orders at common law or otherwise. Except as provided in this Agreement or in Article XI of the Merger Agreement, subject to the final sentence of this Section 1.2, from and after the Effective
Time, no right, claim, remedy or action shall be brought or maintained by any party, and no recourse shall be brought or granted against any of them, by virtue of or based upon any alleged misstatement or omission respecting an inaccuracy in or
breach of any of the representations, warranties or covenants of any of the parties set forth or contained in the Merger Agreement. All obligations of the Former Company Stockholders pursuant to the terms of this Section 1 and Article XI of the
Merger Agreement shall be satisfied first by payment from the Escrow Amount. Notwithstanding anything to the contrary in this Section 1.2 or otherwise in this Agreement or in the Merger Agreement, (i) from and after the Effective Time, a
claim may be brought against the Former Company Stockholders based upon a breach of the covenants set forth in Section 3.3(f), 3.3(g), 3.3(h), 3.3(i), 8.6 or 8.7 of the Merger Agreement, or in any Transaction Document (other than this
Agreement) or the Charter Non-Solicit, and (ii) a claim based upon fraud or intentional misrepresentation may be brought, without regard to any of the limitations set forth in this Agreement or the Merger Agreement (including without regard to
any time or monetary limitations or any limitation on remedies), against the Former Company Stockholders accused of committing such fraud or intentional misrepresentation. 
 1.3. Deductible and Cap. Notwithstanding anything contained herein or in the Merger Agreement to the contrary, the Former Company
Stockholders shall not have any liability under this Section 1 or Article IX of the Merger Agreement unless and until the aggregate Damages for which indemnity by such party would otherwise be due under this Section 1 or Article XI of the
Merger Agreement exceeds $1,890,000 (the “Deductible”), in which case the Former Company Stockholders shall only be responsible for the excess; provided, that: (i) the Deductible shall not apply to Damages incurred by
reason of the matters set forth in Section 1 of the Indemnification Matters Letter; (ii) that a breach shall not be deemed to have occurred and the Parent

  

 Former Company Stockholders Indemnification Agreement 
 - 4 - 

 
Indemnified Parties shall not be deemed to have incurred any Damages under clauses (i) or (ii) of Section 1.1 or clauses (i) and (ii) of Section 11.1 of the Merger
Agreement unless any Damages arising from such breach or matter set forth on Schedule 4.16 of the Company Disclosure Schedules, as the case may be, exceeds (together with all other claims for Damages so substantially related as to effectively
constitute one claim) $100,000; provided, that such $100,000 threshold shall not apply to Damages incurred by reason of the matters set forth Section 1 of in the Indemnification Matters Letter; and (iii) that the Former Company
Stockholders shall not have any liability with respect to any Damages arising under clause (ii) of Section 1.1 and clause (ii) of Section 11.1 of the Merger Agreement unless and until (a) the aggregate amount of all Damages
suffered by the Parent Indemnified Parties under clause (ii) of Section 1.1 or clause (ii) of Section 11.1 of the Merger Agreement exceeds in the aggregate $1,250,000 (the “Schedule 4.16 Matters Deductible”), and
(b) the aggregate amount of all Damages suffered by Parent Indemnified Parties under clauses (i) and (ii) of Section 1.1 or clauses (i) and (ii) of Section 11.1 of the Merger Agreement exceeds in the aggregate the
sum of the amount set forth as the Schedule 4.16 Matters Deductible and the amount set forth as the Deductible in this Section 1.3, then the Parent Indemnified Parties shall be entitled to indemnification only for such aggregate amount that
exceeds the sum of the Schedule 4.16 Matters Deductible and the Deductible. Notwithstanding anything contained herein or in the Merger Agreement to the contrary, the maximum aggregate liability of the Former Company Stockholders under this
Section 1 and Section 5 and under Section 8.6 and Article XI of the Merger Agreement (including any of the Escrow Amount used to pay any indemnification obligations) shall not exceed $17,120,000 (the “Cap”).

 1.4. Survival of Indemnification Obligations. The indemnification obligations set forth in this
Agreement shall terminate upon the 547th day following the
Closing Date. Notwithstanding the preceding sentence, (i) indemnification obligations with respect to Damages incurred by reason of the matters set forth in Section 1 of the Indemnification Matters Letter shall terminate as set forth in
such Indemnification Matters Letter; and (ii) indemnification obligations set forth in this Section 1 shall survive the time at which they would otherwise terminate pursuant to the preceding sentence if notice of (a) the inaccuracy or
breach thereof giving rise to such obligations, (b) the aggregate amount of such Damages or an estimate thereof, in each case to the extent known or determinable at such time, and (c) reasonable detail of the individual items of such
Damages included in the amount so stated and the date each such item arose, shall have been given to the Former Company Stockholders’ Agent prior to such time; and (iii) indemnification obligations with respect to Damages arising from
fraud or intentional misrepresentation will survive indefinitely. 
 1.5. Terms and Conditions of Indemnification; Resolution
of Conflicts. 
 (i) In the event a Parent Indemnified Party is seeking indemnification for any third-party
claim, such Parent Indemnified Party must give the Former Company Stockholders’ Agent prompt notice of the claim for Damages (a) stating the aggregate amount of the Damages or an estimate thereof, in each case to the extent known or
determinable at such time, and (b) specifying in reasonable detail the individual items of such Damages included in the amount so stated, the date each such item was paid or properly accrued or arose, and the nature of the misrepresentation,
breach or claim to which such item is related; provided, however, that the failure to give such notice shall

  

 Former Company Stockholders Indemnification Agreement 
 - 5 - 

 
not relieve the Former Company Stockholders from any obligation hereunder except where, and then solely to the extent that, such failure actually and materially prejudices the rights of the
Former Company Stockholders. 
 (ii) The obligations and liabilities of the Former Company Stockholders to
indemnify pursuant to this Agreement in respect of any Damages arising from a claim by a third-party shall be subject to the following additional terms and conditions: 
 (a) The Former Company Stockholders’ Agent shall have the right to undertake, by counsel or other representatives of its
own choosing reasonably satisfactory to the Parent Indemnified Party, the defense, compromise, and settlement of such claim. 
 (b) In the event that the Former Company Stockholders’ Agent (I) shall elect not to undertake such defense, or (II) within thirty (30) days after notice of any such claim from the Parent
Indemnified Party, shall fail to defend, the Parent Indemnified Party (upon further written notice to the Former Company Stockholders’ Agent) shall have the right to undertake the defense, compromise or settlement of such claim, by counsel or
other representatives of its own choosing, on behalf of and for the account and risk of the Former Company Stockholders. 
 (c) Notwithstanding anything in this Section 1.5 to the contrary, if there is a reasonable probability that a claim may materially and adversely affect the Parent Indemnified Party other than as a
result of money damages or other money payments, the Parent Indemnified Party shall have the right, at its own cost and expense, to participate in the defense, compromise or settlement of the claim. The Former Company Stockholders’ Agent shall
not, without the Parent Indemnified Party’s written consent, settle or compromise any claim or consent to entry of any judgment which does not include as an unconditional term thereof the giving by the claiming party or the plaintiff to the
Parent Indemnified Party of a release from all liability in respect of such claim. In the event that the Former Company Stockholders’ Agent undertakes defense of any claim, the Parent Indemnified Party by counsel or other representative of its
own choosing and at its sole cost and expense, shall have the right to consult with the Former Company Stockholders’ Agent and its counsel or other representatives concerning such claim and the Former Company Stockholders’ Agent and the
Parent Indemnified Party and their respective counsel or other representatives shall cooperate with respect to such claim, subject to the execution and delivery of a mutually satisfactory joint defense agreement; provided, however,
that if representation of both the Parent Indemnified Party and the Former Company Stockholders by the same counsel would create a conflict of interest, the reasonable costs and expenses of any separate counsel retained by the Parent Indemnified
Party shall be paid by the Former Company Stockholders. 
 (iii) If the Former Company Stockholders’ Agent
shall object in writing to any claim or claims by a Parent Indemnified Party, Parent shall have thirty (30) days from the receipt of such objection to respond in a written statement to the objection. If after such

  

 Former Company Stockholders Indemnification Agreement 
 - 6 - 

 
thirty (30) day period there remains a dispute as to any claims, the Former Company Stockholders’ Agent and Parent shall attempt in good faith for thirty (30) days to agree upon
the rights of the respective parties with respect to each of such claims. 
 (iv) If no such agreement can be
reached after good faith negotiation, either Parent or the Former Company Stockholders’ Agent may, by written notice to the other, demand arbitration of the matter unless the amount of the damage or loss is at issue in pending litigation with a
third-party, in which event arbitration shall not be commenced until such amount is ascertained or both parties agree to arbitration; and in either such event the matter shall be settled by arbitration conducted by three arbitrators. Within fifteen
(15) days after such written notice is sent, Parent (on the one hand) and the Former Company Stockholders’ Agent (on the other hand) shall each select one arbitrator, and the two arbitrators so selected shall select a third arbitrator. The
decision of the arbitrators as to the validity and amount of any made claim shall be solely decided in accordance with the provisions of this Section 1 and Article XI of the Merger Agreement and shall be binding and conclusive upon the parties
to this Agreement. 
 (v) Judgment upon any award rendered by the arbitrators may be entered in any court having
jurisdiction. Any such arbitration shall be held in New York, New York under the commercial rules then in effect of the American Arbitration Association. The non-prevailing party to an arbitration shall pay its own expenses, the fees of each
arbitrator, the administrative fee of the American Arbitration Association, and the expenses, including, without limitation, the reasonable attorneys’ fees and costs, incurred by the prevailing party to the arbitration. 
  

 Former Company Stockholders Indemnification Agreement 
 - 7 - 

 2. NET WORKING CAPITAL. If the Actual Net Working Capital is less than the Estimated Net Working Capital, as
finally determined pursuant to Section 3.3(f) of the Merger Agreement, and such shortfall exceeds the Working Capital Escrow Amount, then such shortfall shall be satisfied by payment to Parent from the Former Company Stockholders, on a several
(but not joint) basis. Any such payment shall be paid by the Former Company Stockholders within five (5) Business Days of the final determination of such adjustments by wire transfer of immediately available funds. Any such payment shall be
made to such account or accounts as may be designated by Parent at least two (2) Business Days prior to the date that such payment is to be made. 
 3. NET CASH. If the Actual Net Cash is less than the Estimated Net Cash, then the amount of such shortfall, as finally determined pursuant to Section 3.3(g), shall be paid to Parent by the Former Company Stockholders on a several (but
not joint) basis. Any such payment shall be paid within five (5) Business Days of the final determination of such adjustments by wire transfer of immediately available funds. Any such payment shall be made to such account or accounts as may be
designated by Parent at least two (2) Business Days prior to the date that such payment is to be made. 
 4. ROLLOVER SHAREHOLDERS.
Notwithstanding anything to the contrary in Sections 1,2, 3 or 5, any indemnification or other payment obligations under such Sections to be made in respect of any Rollover Shareholder shall be satisfied in shares of capital stock of the Parent, as
and to the extent provided in the Rollover Agreement with such Rollover Shareholder. 
 5. ELUR AMOUNTS. Pursuant to Section 8.6 of the
Merger Agreement, the Former Company Stockholders shall pay, on a several (but not joint) basis, all reasonable third-party costs, fees and expenses incurred in connection with obtaining the Environmental Land Use Restriction at the Company’s
East Hartford facility to the extent not paid or accrued immediately prior to the Effective Time; provided, however, that the maximum aggregate liability of the Former Company Stockholders under Sections 1 and 5 and under
Section 8.6 and Article XI of the Merger Agreement (including any of the Escrow Amount used to pay any indemnification obligations) shall not exceed the Cap. 
 6. LIMITED LIABILITY. Notwithstanding anything to the contrary in this Agreement or the Merger Agreement, no Former Company Stockholder shall be liable for more than its Pro Rata Share of any claim
payable by the Former Company Stockholders under this Agreement or the Merger Agreement. For purposes of this Agreement, the term “Pro Rata Share” means, with respect to each Former Company Stockholder, a fraction of which
(i) the numerator is the portion of the Merger Consideration actually paid to such Former Company Stockholder (or his, her or its assigns) under the terms of the Merger Agreement (including any applicable withholding taxes and any portion of
the Merger Consideration which is included within the Escrow Amount or the Working Capital Escrow Amount or is allocable to the Rollover Shares), and (ii) the denominator is the Merger Consideration actually paid to all Former Company
Stockholders (or their respective assigns) under the terms of the Merger Agreement (including any applicable withholding taxes and any portion of the Merger Consideration which is included within the Escrow Amount or the Working Capital Escrow
Amount or is allocable to the Rollover Shares), in each case determined as if the Rollover Shareholders had not contributed shares of Company

  

 Former Company Stockholders Indemnification Agreement 
 - 8 - 

 
Common Stock or shares of restricted Company capital stock to the Parent prior to the Effective Time. 
 7. FORMER COMPANY STOCKHOLDERS’ REPRESENTATIONS AND WARRANTIES AND ACKNOWLEDGEMENTS AND AGREEMENTS. 
 7.1. Each Former Company Stockholder hereby represents and warrants that such Former Company Stockholder (i) has carefully read each of this Agreement and the Merger Agreement, (ii) has had an
opportunity to consult with independent counsel with respect to each of this Agreement and the Merger Agreement and (iii) has entered into this Agreement of his, her or its own free will. 
 7.2. Each Former Company Stockholder shall be deemed to have waived, on behalf of all Stockholders Indemnified Parties, any claim for
Damages to the extent set forth in Section 3 of the Indemnification Matters Letter. 
 7.3. Each Former Company Stockholder
hereby acknowledges that Parent is entitled to manage its business and the business of its Subsidiaries, including the Company, as it may determine in its sole discretion, provided, that (x) Parent shall not nor shall the Parent cause or permit
the Parent of any of its Subsidiaries to take any action or to make any operational changes for the purpose of intentionally reducing or eliminating any of the payments under Section 3.3(i) of the Merger Agreement (“Earn-Out
Payments”) (whether during the Earn-Out Period or thereafter) otherwise payable to the Former Company Stockholders and (y) until the date on which the aggregate amount of payments made pursuant to Section 3.3(i) of the Merger
Agreement equal the Maximum Earn-Out Payment, Parent shall not own, directly or indirectly, any Person whose business does not consist of a Related Business. Each Former Company Stockholder hereby further acknowledges and agrees that (i) the
provisions of this Section 7.2 do not create in the Former Company Stockholders any right to control or direct the management of the business of the Parent and its Subsidiaries, including the Company, following the Closing, (ii) actions
and operational changes not made for the purpose of intentionally reducing or eliminating any Earn-Out Payments may nonetheless have the effect of reducing or eliminating any Earn-Out Payments and (iii) other than the contract provisions of
this Agreement, Parent shall not have any obligations or duties, regardless of the basis or legal theory therefore, to the Former Company Stockholders with respect to the Earn-Out Payments. 
 7.4. Each Former Company Stockholder who is a holder of Company Common Stock immediately prior to the Effective Time hereby acknowledges and
agrees that each of (i) the Stockholders Agreement, dated as of September 28, 2001, among the Company, Charterhouse Equity Partners III, L.P., Chef Nominees Limited, WAHYAM Capital, LLC and the other parties listed therein and
(ii) the Amendment to Stockholders Agreement, dated as of September 30, 2002, among the Company, Charterhouse Equity Partners III, L.P., Chef Nominees Limited, WAHYAM Capital, LLC and the other parties listed therein, shall be and is
terminated, and shall become and is null and void, as of the Effective Time. Each Former Company Stockholder who is a holder of Company Warrants immediately prior to the Effective Time hereby acknowledges and agrees that the Warrant Agreement, dated
as of September 28, 2001, between the Company and the Warrant holders party thereto shall be and is terminated, and shall become and is null and void, as of the Effective Time. 
  

 Former Company Stockholders Indemnification Agreement 
 - 9 - 

 8. FORMER COMPANY STOCKHOLDERS’ AGENT. 
 (i) Each Former Company Stockholder hereby designates and appoints Charter Agent LLC as agent and attorney-in-fact for such
Former Company Stockholder (the “Former Company Stockholders’ Agent”). The Former Company Stockholders’ Agent is hereby authorized to act for and on behalf of each Former Company Stockholder, including, without limitation,
to give and receive notices and communications, to act on behalf of each Former Company Stockholder with respect to any matters arising under this Agreement, the Merger Agreement or the other Transaction Documents, to authorize delivery to Parent of
any funds and property in its possession or in the Escrow Amount or the Working Capital Escrow Amount in satisfaction of claims by Parent Indemnified Parties, to object to such deliveries, to agree to, negotiate, enter into settlements and
compromises of, and commence, prosecute, participate in, settle, dismiss or otherwise terminate, as applicable, lawsuits and claims, mediation and arbitration proceedings, and to comply with orders of courts and awards of courts, mediators and
arbitrators with respect to such suits, claims or proceedings, and to take all actions necessary or appropriate in the judgment of the Former Company Stockholders’ Agent for the accomplishment of the foregoing. The Former Company
Stockholders’ Agent shall for all purposes be deemed the sole authorized agent of each Former Company Stockholder until such time as the agency is terminated. Such agency may be changed by the Former Company Stockholders from time to time upon
not less than 30 days prior written notice to Parent; provided, however, that the Former Company Stockholders’ Agent may not be removed unless holders of a two-thirds interest in the Merger Consideration agree to such removal and
to the identity of the substituted Former Company Stockholders’ Agent. Any vacancy in the position of Former Company Stockholders’ Agent may be filled by approval of the holders of a majority in interest of the Merger Consideration. No
bond shall be required of the Former Company Stockholders’ Agent, and the Former Company Stockholders’ Agent shall not receive compensation for its services. Notices or communications to or from the Former Company Stockholders’ Agent
shall constitute notice to or from each of the Former Company Stockholders during the term of the agency. 
 (ii)
The Former Company Stockholders’ Agent shall not incur any liability with respect to any action taken or suffered by it or omitted hereunder or under the Merger Agreement as Former Company Stockholders’ Agent while acting in its capacity
as Former Company Stockholders’ Agent. The Former Company Stockholders’ Agent may, in all questions arising hereunder or under the Merger Agreement, rely on the advice of counsel and other professionals. The Former Company
Stockholders’ Agent undertakes to perform such duties and only such duties as are specifically set forth in this Agreement or under the Merger Agreement and no other covenants or obligations shall be implied under this Agreement or under the
Merger Agreement against the Former Company Stockholders’ Agent; provided, however, that the foregoing shall not act as a limitation on the powers of the Former Company Stockholders’ Agent determined by it to be reasonably
necessary to carry out the purposes of its obligations. Each Former Company Stockholder hereby severally (but not jointly) agrees to indemnify the Former Company Stockholders’ Agent and hold it harmless against any loss, liability or expense
incurred on the part of the Former Company Stockholders’ Agent and arising out of or in

  

 Former Company Stockholders Indemnification Agreement 
 - 10 - 

 
connection with the acceptance or administration of its duties under this Agreement or the Merger Agreement. The Former Company Stockholders’ Agent shall be entitled to satisfy any such
loss, liability and expense from the proceeds of the Working Capital Escrow Amount and/or the Escrow Amount to the extent received by the Former Company Stockholders’ Agent for distribution to the Former Company Stockholders on a pro rata
basis. 
 (iii) A decision, act, consent or instruction of the Former Company Stockholders’ Agent shall
constitute a decision, act, consent or instruction of each of the Former Company Stockholders and shall be final, binding and conclusive upon each such Former Company Stockholder. Parent and the Surviving Corporation may rely upon any such decision,
act, consent or instruction of the Former Company Stockholders’ Agent as being the decision, act, consent or instruction of every Former Company Stockholder. 
 9. APPRAISAL RIGHTS. Each Former Company Stockholder, to the extent available to such Former Company Stockholder under Section 262 of the Delaware General Corporation Law, hereby waives any appraisal
rights in connection with the Merger. 
 10. LIMITATION ON INDEMNIFICATION. Parent hereby acknowledges on behalf of the Parent Indemnified
Parties that this Agreement is not intended to expand or duplicate the rights to indemnification of the Parent Indemnified Parties set forth in Article XI of the Merger Agreement. 
 11. GENERAL PROVISIONS. 
 11.1. Effectiveness of the Agreement. This
Agreement shall become effective as of the Effective Time. Notwithstanding anything herein to the contrary, if the Merger is not consummated for any reason, this Agreement shall be null and void. 
 11.2. Notices. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have
been duly given or made if and when delivered personally or by overnight courier to the parties at the following addresses or sent by electronic transmission, with confirmation received, to the telecopy numbers specified below (or at such other
address or telecopy number for a party as shall be specified by like notice): 
 (i) If to Parent: 
 c/o Weston Presidio V, L.P. 
 Pier 1, Bay 2 
 San Francisco, CA 94111 
 Attention: R. Sean Honey and Therese Mrozek 
 Fax No: (415) 398-0990 
 Tel. No: (415) 398-0770 
 with a copy to: 
 Ropes & Gray LLP 
  

 Former Company Stockholders Indemnification Agreement 
 - 11 - 

 One International Place 
 Boston, Massachusetts 02110 
 Attn: David C. Chapin, Esq. and Shari Wolkon, Esq. 
 Fax No: (617)951-7050 
 Tel. No: (617)951-7371 
 Tel. No.: (617)951-7861 
 (ii) If to the Former Company Stockholders’ Agent: 
 Charter Agent LLC 
 c/o Charterhouse Group, Inc. 
 535 Madison Avenue 
 New York, New York 10022 
 Attn: William Landuyt 
 Fax No: (212) 750-9704 
 Tel. No: (212) 584-3200 
 with a copy to: 
 Proskauer Rose LLP 
 1585 Broadway 
 New
York, New York 10036 
 Attn: Stephen W. Rubin, Esq. 
 Fax No: (212) 969-2900 
 Tel. No: (212) 969-3000 
 (iii) If to any Former Company Stockholder, to such address as appears next to such
Former Company Stockholder’s name on Schedule A attached hereto. 
 11.3. Counterparts. This Agreement may be
executed in two or more counterparts, all of which shall be considered one and the same agreement and shall become effective when two or more counterparts have been signed by each of the parties and delivered to the other parties, it being
understood that all parties need not sign the same counterpart. 
 11.4. Entire Agreement: No Third-Party Beneficiaries.
This Agreement (including the documents and the instruments referred to herein), the Merger Agreement and the other Transaction Documents, and the Charterhouse Non-Solicit (i) constitute the entire agreement and supersedes all prior agreements
and understandings, both written and oral, among the parties with respect to the subject matter hereof, and (ii) are not intended to confer upon any Person other than the parties hereto any rights or remedies hereunder. Notwithstanding the
foregoing, (a) each Parent Indemnified Party not party to this Agreement shall be deemed to be a third-party beneficiary of Section 1 and (b) the Former Company Stockholders’ Agent shall be deemed to be a third-party beneficiary
of Section 8. 
 11.5. Governing Law. With respect to matters of corporate law, this Agreement shall be governed and
construed in accordance with the DGCL. With respect to all other matters this Agreement shall be governed and construed in accordance with the laws of the State of New York without regard to any applicable conflicts of law. 
  

 Former Company Stockholders Indemnification Agreement 
 - 12 - 

 11.6. Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior written consent of the other parties, except that Parent or Merger Sub may assign its rights hereunder (i) to one
or more of affiliates or its lenders or (ii) following the Effective Time, to a purchaser of the Surviving Corporation or the business of the Surviving Corporation. Subject to the preceding sentence, this Agreement will be binding upon, inure
to the benefit of and be enforceable by the parties and their respective successors and assigns. 
 11.7. Amendment. This
Agreement may not be amended except by an instrument in writing signed by Parent and the Former Company Stockholders entitled to receive a majority of the Merger Consideration pursuant to the terms of the Merger Agreement; provided,
however, that no such action shall be applied to the detriment of certain Former Company Stockholders except to the proportional extent that all Former Company Stockholders are adversely affected by such amendment. 
 11.8. Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under any present or future
law or regulation, and if the rights or obligations of any party hereto under this Agreement will not be materially and adversely affected thereby, (i) such provision will be fully severable, (ii) this Agreement will be construed and
enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (iii) the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance from this Agreement and (iv) in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement a legal, valid and enforceable provision as
similar in terms to such illegal, invalid or unenforceable provision as may be possible. 
 11.9. Jurisdiction; Venue;
Service of Process. 
 11.9.1. Jurisdiction. Each party, by its execution hereby, (a) hereby
irrevocably submits to the exclusive jurisdiction of the state courts of the State of New York or the United States District Court located in the Southern District of the State of New York for the purpose of any action, suit, claim or litigation
(each an “Action”) between the parties arising in whole or in part under or in connection with this Agreement, (b) hereby waives to the extent not prohibited by applicable Law, and agrees not to assert, by way of motion, as a
defense or otherwise, in any such Action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such Action brought in one of the
above-named courts should be dismissed on grounds of forum non conveniens, should be transferred or removed to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any
other court other than one of the above-named courts, or that this Agreement or the subject matter hereof may not be enforced in or by such court and (c) hereby agrees not to commence any such Action other than before one of the above-named
courts. Notwithstanding the previous sentence a party may commence any Action in a court other than the above-named courts solely for the purpose of enforcing an order or judgment issued by one of the above-named courts. 
  

 Former Company Stockholders Indemnification Agreement 
 - 13 - 

 11.9.2. Venue. Each party agrees that for any Action between the
parties arising in whole or in part under or in connection with this Agreement, such party bring Actions only in the Borough of Manhattan. Each party further waives any claim and will not assert that venue should properly lie in any other location
within the selected jurisdiction. 
 11.9.3. Service of Process. Each party hereby (a) consents to
service of process in any Action between the parties arising in whole or in part under or in connection with this Agreement in any manner permitted by New York law, (b) agrees that service of process made in accordance with clause (a) or
made by registered or certified mail, return receipt requested, at its address specified pursuant to Section 11.2, will constitute good and valid service of process in any such Action and (c) waives and agrees not to assert (by way of
motion, as a defense, or otherwise) in any such Action any claim that service of process made in accordance with clause (a) or (b) does not constitute good and valid service of process. 
 11.10. Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH OF THE PARTIES HERETO HEREBY
WAIVES, AND COVENANTS THAT IT SHALL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY,
PROCEEDING OR INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING. ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 11.10 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 
  

 Former Company Stockholders Indemnification Agreement 
 - 14 - 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first
above written. 

			
	
	CELLU PARENT CORPORATION
		
	By	 	 
		 	Name:
		 	Title:
	
	CELLU ACQUISITION CORPORATION
		
	By	 	 
		 	Name:
		 	Title:
	
	[ADD STOCKHOLDERS]
		
	By	 	 
		 	Name:
		 	Title:
	
	[ADD OPTION HOLDERS]
		
	By	 	 
		 	Name:
		 	Title:
	
	[ADD WARRANT HOLDERS]
		
	By	 	 
		 	Name:
		 	Title:

  

 Former Company Stockholders Indemnification Agreement 

 Schedule A 
 FORMER COMPANY STOCKHOLDERS 
  

			
	 Name
	  	 Address

  
  
  

 Former Company Stockholders Indemnification Agreement 

 Exhibit 9.2(o) 
 Form of Confidentiality and Non-Solicit Agreement 

 CONFIDENTIALITY AND NON-SOLICIT AGREEMENT 
 THIS CONFIDENTIALITY AND NON-SOLICIT AGREEMENT dated as of         
    , 2006 (this “Agreement”), is entered into by Charterhouse Equity Partners III, L.P. (the “Stockholder”) for the benefit of Cellu Parent Corporation, a Delaware corporation
(“Parent”), and Cellu Acquisition Corporation, a Delaware corporation (“Merger Sub”). 
 WHEREAS, as of the date hereof, the Stockholder owns of record and beneficially 10,175.11 shares of common stock (“Common Stock”) of Cellu Paper Holdings, Inc., a Delaware corporation (the “Company”)
(collectively and together with any other voting or equity securities of the Company hereafter acquired by the Stockholder beneficially or of record prior to the termination of this Agreement, the “Shares”); 
 WHEREAS, Parent, Merger Sub and the Company propose to enter into a transaction pursuant to which Merger Sub will be merged with and into
the Company (such merger, together with the agreement effecting such merger, the “Merger” and the “Merger Agreement”, respectively) such that the Company will become a wholly-owned subsidiary of Parent; and

 WHEREAS, immediately following the execution and delivery of the Merger Agreement by the parties thereto, the Stockholder is
approving and consenting to the Merger by execution of the Written Consent of Stockholders, and in order to induce Parent and Merger Sub to enter into the Merger Agreement, the Stockholder is willing to agree to certain matters, all upon the terms
and subject to the conditions set forth herein. 
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements contained herein, and intending to be legally bound hereby, the parties hereby agree as follows: 
 Section 1. Certain Terms. Capitalized terms used herein but not defined in this Agreement have the meanings ascribed to them in the Merger Agreement. 
 Section 2. Nonsolicitation. The Stockholder agrees that for a period of four (4) years from and after the Closing Date, it will not, and shall cause its Affiliates not to, directly or
indirectly (i) solicit for employment or any similar arrangement any executive officer of Parent or any of its Subsidiaries or any Person who has been at any time within the six months preceding such solicitation an executive officer of Parent
or any of its Affiliates (an “Employee”) or (ii) hire any Employee; provided, however, that this Section 2(a) shall not apply to Employees whose employment has been terminated by Parent or any of its
Affiliates. 
 Section 3. Confidentiality. The Stockholder acknowledges that the success of the Company and its
Subsidiaries after the Closing depends upon the continued preservation of the confidentiality of certain information possessed by the Stockholder, that the preservation of the confidentiality of such information by the Stockholder is an essential
premise of the transactions contemplated by the Merger Agreement, and that Parent and Merger Sub would be unwilling to enter into the Merger Agreement in the absence of this Agreement (including this Section 3). Accordingly, the Stockholder
hereby agrees with Parent and Merger Sub that the 
  

 Confidentiality and Non-Solicit Agreement 

 
Stockholder will not, and will cause its Affiliates and its directors, officers, employees, agents, consultants, advisors or other representatives (collectively,
“Representatives”) not to, at any time on or after the Closing Date, directly or indirectly, without the prior written consent of Parent, disclose or use, any Confidential Information (as defined below); provided,
however, that the information subject to the foregoing provisions of this sentence will not include any information (x) generally available to, or known by, the public (other than as a result of disclosure in violation hereof),
(y) available to the Stockholder from a source other than Parent, any of its Subsidiaries or their respective advisors, provided that such source is not and was not bound by a confidentiality agreement or other legal duty of confidentiality
regarding Parent or any of its Subsidiaries or (z) is independently developed by the Stockholder (without benefit of any Confidential Information); and provided, further, that the provisions of this Section 3 will not
prohibit any retention of copies of records or disclosure (i) required by any applicable law so long as reasonable prior notice is given of such disclosure and a reasonable opportunity is afforded to contest the same or (ii) made in
connection with the enforcement of any right or remedy relating to this Agreement, the Merger Agreement or the other Transaction Documents. The Stockholder agrees that the Stockholder will be responsible for any breach or violation of the provisions
of this Section 3 by any of the Stockholder’s Affiliates or Representatives. “Confidential Information” means any and all information of the Company and its Subsidiaries and their Affiliates that is not generally known to
the public. Confidential Information includes without limitation such information relating to (i) the development, research, testing, marketing and financial activities of the Company and its Subsidiaries and their Affiliates, (ii) the
products and services, technical data, methods and processes of the Company and its Subsidiaries and their Affiliates, (iii) the costs, sources of supply, financial performance and strategic plans of the Company and its Subsidiaries and their
Affiliates, (iv) the identity and special needs of the customers of the Company and its Subsidiaries and their Affiliates, and (v) the people and organizations with whom the Company and its Subsidiaries and their Affiliates have business
relationships and those relationships. Confidential Information also includes any information that the Company and its Subsidiaries or any of their Affiliates have received, or may receive hereafter, belonging to customers or others with any
understanding, express or implied, that the information would not be disclosed. 
 Section 4. Release. Effective as
of Closing, the Stockholder hereby releases, remises and forever discharges any and all rights and claims that the Stockholder has had, now has or might now have against the Company or any of its Subsidiaries except for rights and claims arising
from or in connection with the Merger Agreement or the other Transaction Documents. 
 Section 5. Representations.
The Stockholder represents and warrants to Parent and Merger Sub as follows: 
 (a) It is duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization and has all requisite partnership power and authority to own, lease and operate its properties and to carry on its business as now conducted. 
 (c) The execution and delivery of this Agreement by the Stockholder does not, and the performance by the Stockholder of the
Stockholder’s obligations hereunder will not, constitute a violation of, conflict with, result in a default (or an event which, with notice or lapse

  

 2 

 
of time or both, would result in a default) under or result in the creation of any lien on any of the Shares under, (i) any contract commitment, agreement, understanding, arrangement or
restriction of any kind to which the Stockholder is a party or by which the Stockholder or the Shares are bound, or (ii) any judgment, writ, decree, order or ruling affecting the Stockholder or the Shares. 
 (c) The Stockholder has full power and authority to execute, deliver and perform this Agreement and to consummate the transactions
contemplated hereby. This Agreement has been duly and validly executed and delivered by the Stockholder and, assuming due authorization, execution and delivery by Parent and Merger Sub, constitutes a valid and binding agreement of the Stockholder,
enforceable against the Stockholder in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other laws affecting the enforcement of creditor’s
rights generally and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 
 (d) The Stockholder acknowledges that the Stockholder has carefully read and considered all the terms and conditions of Section 2 and agrees that such terms and conditions are necessary for the
reasonable and proper protection of Parent and its Affiliates. The Stockholder agree that it will never assert, or permit to be asserted on its behalf, in any forum, any position contrary to the foregoing. 
 Section 6. Specific Performance. The parties hereto agree that irreparable damage would occur in the event any provision of this
Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy at law or in equity, without having to post bond. 
 Section 7. Miscellaneous. 
 (a) This Agreement shall terminate automatically, without further action by any party, upon the termination of the Merger Agreement. 
 (b) This Agreement (together with the Merger Agreement and the other Transaction Documents) constitutes the entire agreement between the
parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral, between the parties with respect thereto. This Agreement may not be amended, modified or rescinded except by an
instrument in writing signed by each of the parties hereto. 
 (c) If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable law in
a mutually acceptable manner in order that the terms of this Agreement remain as originally contemplated to the fullest extent possible. 
  

 3 

 (d) This Agreement shall be governed by and construed in accordance with the internal laws
of the State of New York without regard to the principles of conflicts of law thereof. 
 (e) This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 
 (f) The terms and conditions of Sections 12.11 and 12.12 of the Merger Agreement are hereby incorporated into this Agreement and shall apply to this Agreement, mutatis mutandis, with the same force and effect as if such terms and
conditions were set forth in this Agreement. 
 [The remainder of this page has been intentionally left blank.]

  

 4 

 IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be signed as of
the date first written above. 
  

							
	CHARTERHOUSE EQUITY PARTNERS III, L.P.
		
	By:	 	 CHUSA EQUITY INVESTORS III, L.P.,
 general partner

			
		 	By:	 	 CHARTERHOUSE EQUITY III, INC.,
 general partner

				
		 		 	By:	 	 
		 		 		 	 Name:
 Title:

 Agreed and Acknowledged: 
  

			
	CELLU PARENT CORPORATION
		
	By:	 	 
		 	 Name:
 Title:

	
	CELLU ACQUISITION CORPORATION
		
	By:	 	 
		 	 Name:
 Title:

 Exhibit 9.3(g) 
 Form of Limited Guaranty 

 LIMITED GUARANTY 
 Reference is hereby made to the Agreement and plan of Merger, dated as of May 8, 2006 (as amended, the “Merger
Agreement”) by and among Cellu Parent Corporation, a Delaware corporation (“Parent”), Cellu Acquisition Corporation, a Delaware corporation (“Merger Sub”), and Cellu Paper Holdings, Inc., a Delaware
corporation (the “Company”). Capitalized terms used herein but not otherwise defined have the meanings ascribed to them in the Merger Agreement. 
 1. Limited Guaranty. On the terms and subject to the conditions of this Guaranty, Weston Presidio V, L.P. (the
“Guarantor”) hereby irrevocably and unconditionally guarantees to the Former Company Stockholders’ Agent (the “Beneficiary”), for and on behalf of the Former Company Stockholders, but only up to the Maximum
Amount (as defined below), the payment by Parent of its obligations to the Former Company Stockholders’ Agent under Section 3.3(i) of the Merger Agreement, as the same may be amended from time to time in accordance with the terms of the
Merger Agreement (the “Guaranteed Obligations”). The maximum aggregate liability of the Guarantor hereunder shall not exceed $31,519,3791 less the aggregate amount of any payments previously paid to the Beneficiary, for distribution to the Former Company
Stockholders, by Parent or any of its Subsidiaries pursuant to Section 3.3(i) of the Merger Agreement (the amount of such difference from time to time, the “Maximum Amount”), and the Seller hereby agrees that the Guarantor
shall in no event be required to pay more than the Maximum Amount or in respect of this Limited Guaranty. 
 2. Terms of
Limited Guaranty. 
 (a) This Limited Guaranty is one of payment, not collection, and a separate action or actions may be
brought and prosecuted against the Guarantor to enforce this Limited Guaranty, irrespective of whether any action is brought against the Parent or whether the Parent is joined in any such action or actions. 
 (b) The liability of the Guarantor under this Limited Guaranty shall, to the fullest extent permitted under applicable law, be absolute and
unconditional irrespective of: 
 (i) the value, genuineness, validity, regularity, illegality or enforceability
of the Merger Agreement or any other agreement or instrument referred to herein, if and only if the unenforceability or illegality or deficiency in value, genuineness, validity or regularity results from or arises out of any action or inactions on
the part of Parent or is owing to any lack of corporate power or authority of Parent; 
 (ii) any insolvency,
bankruptcy, reorganization or other similar proceeding affecting Parent, any of its Subsidiaries or their respective assets; or 
  
  
 1 This amount represents $35,000,000 less the aggregate amount of any
payments which could become payable under Section 3.3(i) of the Merger Agreement to or in respect of the Rollover Shareholders. 

 (iii) any amendment or modification of the Merger Agreement, or change in
the manner, place or terms of payment or performance, or any change or extension of the time of payment or performance of, renewal or alteration of, any Guaranteed Obligation, or any amendment or waiver of or any consent by Parent to any departure
from the terms of the Merger Agreement or the documents entered into in connection therewith. 
 (c) The Guarantor hereby waives
any and all notice of or proof of reliance by the Beneficiary upon this Limited Guaranty or acceptance of this Limited Guaranty. 
 (d) Notwithstanding any other provision of this Limited Guaranty to the contrary, the Beneficiary hereby agrees that any claim, cause of action or defense which would reduce Parent’s obligations, or relieve Parent of its obligations,
under Section 3.3(i) of the Merger Agreement (other than any insolvency or bankruptcy of Parent or any of its Subsidiaries, any restrictions under the indenture concerning the Bonds, any restrictions under any loan or credit agreements of
Parent or any of its Subsidiaries, and any rights and remedies of any other creditors of Parent or any of its Subsidiaries) shall likewise reduce the Guarantor’s obligations, or relieve the Guarantor of its obligations, under this Limited
Guaranty and, without limiting the generality of the foregoing, hereby further agrees that the Guarantor shall have no obligation to make any payment under or by reason of this Guaranty unless and until the amount of such payment has been finally
determined pursuant to the terms and conditions of Section 3.3(i) of the Merger Agreement. 
 (e) Notwithstanding any other
provision of this Limited Guaranty to the contrary: (i) any payment by the Guarantor under this Limited Guaranty shall be due and payable on a date which is no later than the tenth Business Day after the date on which Parent is obligated to
make such payment under the Merger Agreement; (ii) any payment made to the Beneficiary shall be made for distribution by the Beneficiary to the Former Company Stockholders as provided with respect to payments by Parent under Section3.3(i) of the
Merger Agreement; and (iii) the portion of any payment in respect of a Former Company Stockholder constituting a Rollover Shareholder shall be made with in the manner and upon the terms and conditions specified in Section 3.3(i)(E) of the
Merger Agreement. 
 3. Sole Remedy. The Beneficiary further agrees that it has no right of recovery against the
Guarantor or Parent’s stockholders or affiliates through Parent or otherwise, whether by or through attempted piercing of the corporate veil, by or through a claim by or on behalf of Parent against the Guarantor or Parent’s stockholders or
affiliates, or otherwise, except for its rights under this Limited Guaranty. Recourse against the Guarantor under this Limited Guaranty shall be the sole and exclusive remedy of the Beneficiary and all of its affiliates against the Guarantor or any
of its affiliates (other than against Parent) in respect of any liabilities or obligations arising under, or in connection with, Section 3.3(i) of the Merger Agreement or the transactions contemplated thereby. The Beneficiary hereby covenants and
agrees that it shall not institute, and shall cause its respective affiliates not to institute, any proceeding or bring any other claim arising under, or in connection with, the Merger Agreement or the transactions contemplated thereby, against the
Guarantor or any of its affiliates (other than against Parent) except for claims against the Guarantor under this Limited Guaranty. Nothing set forth in this Limited Guaranty shall affect or be construed to affect any liability of Parent to the
Beneficiary 
  

 - 2 - 

 or shall confer or give or shall be construed to confer or give to any Person other than the Beneficiary
(including any Person acting in a representative capacity) any rights or remedies against any Person other than the Guarantor as expressly set forth herein. 
 4. Subrogation. The Guarantor will not exercise any rights of subrogation or contribution, whether arising by contract or operations of law (including without limitation any such right arising
under bankruptcy or insolvency laws) or otherwise, by reason of any payment by it pursuant to the provisions of Section 1 hereof unless and until the Guaranteed Obligations have been paid in full. 
 5. Termination. This Limited Guaranty shall terminate forthwith upon payment of all payments required to be made by Parent under
Section 3.3(i) of the Merger Agreement. In the event that the Beneficiary, any Former Company Stockholder or any of their respective affiliates asserts in any litigation relating to this Limited Guaranty that the provisions of Section 1
hereof limiting the Guarantor’s liability to the Maximum Amount or the provisions of Section 3 hereof are illegal, invalid or unenforceable in whole or in part, the obligations of the Guarantor under this Limited Guaranty shall terminate
forthwith and shall thereupon be null and void. 
 6. Continuing Guaranty. Unless terminated pursuant to the provisions
of Section 5 hereof, this Limited Guaranty is a continuing one and shall remain in full force and effect until the indefeasible payment satisfaction in full of the Guaranteed Obligations, shall be binding upon the Guarantor, its successors and
assigns, and shall inure to the benefit of, and be enforceable by, the Beneficiary and its respective successors, transferees and assigns. 
 7. Entire Agreement. This Limited Guaranty, together with the Merger Agreement, constitutes the entire agreement with respect to the subject matter hereof and supersedes any and all prior
discussions, negotiations, proposals, undertakings, understandings and agreements, whether written or oral, among Parent and the Guarantor or any of their affiliates on the one hand, and the Beneficiary or any of its affiliates on the other hand.

 8. Amendments and Waivers. No amendment or waiver of any provision of this Limited Guaranty will be valid and binding
unless it is in writing and signed, in the case of an amendment, by the Guarantor and the Beneficiary, or in the case of waiver, by the party against whom the waiver is to be effective. No waiver by a party of any breach or violation of, or default
under, this Limited Guaranty, whether intentional or not, will be deemed to extend to any prior or subsequent breach, violation or default hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. No
delay or omission on the part of any party in exercising any right, power or remedy under this Limited Guaranty will operate as a waiver thereof. 
 9. Counterparts. This Limited Guaranty may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute but one and the same
instrument. This Limited Guaranty will become effective when duly executed by each party hereto. 
  

 - 3 - 

 10. Notices. All notices, requests, demands, claims and other communications required
or permitted to be delivered, given or otherwise provided under this Limited Guaranty must be in writing and must be delivered, given or otherwise provided: 
 (a) by hand (in which case, it will be effective upon delivery); 
 (b) by
facsimile (in which case, it will be effective upon receipt of confirmation of good transmission); or 
 (c) by overnight
delivery by a nationally recognized courier service (in which case, it will be effective on the next business day after being deposited with such courier service; 
 in each case, to the address (or facsimile number) listed below (or to such other address or facsimile number as a party may designate by notice to the other parties): 
 If to the Guarantor, to it at: 
 Weston Presidio V, L.P. 
 Pier 1, Bay 2 
 San Francisco, CA 94111 
 Attention: R. Sean Honey and Therese Mrozek 
 Fax No:
(415) 398-0990 
 Tel. No: (415) 398-0770 
 With a copy to: 
 Ropes & Gray L.L.P. 
 One International Place 

Boston, Massachusetts 02110 
 Attention: David C. Chapin, Esq. and Shari Wolkon, Esq. 
 Fax No:
(617) 951-7050 
 Tel. No: (617) 951-7371 
 Tel. No.: (617) 951-7861 
 If to the Seller, to it at: 
 Charter Agent LLC 
 c/o Charterhouse Group, Inc. 
 535 Madison Avenue 
 New York, New York 10022 
 Attention: William Landuyt 
 Fax No: 212-750-9704 
 Tel. No: 212-584-3216 
 With a copy to: 
 Proskauer Rose LLP 
 1585 Broadway 
  

 - 4 - 

 New York, New York 10036 
 Attention: Stephen W. Rubin, Esq. 
 Fax No: 212-969-2900 
 Tel. No: 212-969-3000 
 11. Governing Law. This Limited Guaranty, the
rights of the parties and all actions arising in whole or part under or in connection herewith, will be governed by and construed in accordance with the domestic substantive laws the State of New York, without giving effect to any choice or conflict
of law provision or rule that would cause the application of the laws of any other jurisdiction. 
 12. Jurisdiction; Venue;
Waiver of Service of Process. 
 (a) Jurisdiction. Each party to this Limited Guaranty, by its execution hereof,
(i) hereby irrevocably submits to the exclusive jurisdiction of the state courts of the State of New York or the United States District Court located in the Southern District of the State of New York for the purpose of any action between the
parties arising in whole or in part under or in connection with this Limited Guaranty, (ii) hereby waives to the extent not prohibited by applicable law, and agrees not to assert, by way of motion, as a defense or otherwise, in any such action,
any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that any such action brought in one of the above-named courts should be dismissed on
grounds of forum non conveniens, should be transferred or removed to any court other than one of the above-named courts, or should be stayed by reason of the pendency of some other proceeding in any other court other than one of the
above-named courts, or that this Limited Guaranty or the subject matter hereof may not be enforced in or by such court and (iii) hereby agrees not to commence any such action other than before one of the above-named courts. Notwithstanding the
previous sentence a party may commence any action in a court other than the above-named courts solely for the purpose of enforcing an order or judgment issued by one of the above-named courts. 
 (b) Venue. Each party agrees that for any action between the parties arising in whole or in part under or in connection with this
Limited Guaranty, such party will bring actions only in the Borough of Manhattan. Each party further waives any claim and will not assert that venue should properly lie in any other location within the selected jurisdiction. 
 (c) Service of Process. Each party hereby (i) consents to service of process in any action between the parties arising in whole
or in part under or in connection with this Limited Guaranty in any manner permitted by New York law, (ii) agrees that service of process made in accordance with clause (i) or made by registered or certified mail, return receipt requested,
at its address specified pursuant to Section 10, will constitute good and valid service of process in any such action and (iii) waives and agrees not to assert (by way of motion, as a defense, or otherwise) in any such action any claim
that service of process made in accordance with clause (i) or (ii) does not constitute good and valid service of process. 
 13. Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE PARTIES HEREBY WAIVE, AND COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, 
  

 - 5 - 

 DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN
CONNECTION WITH THIS LIMITED GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS
PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS LIMITED GUARANTY OR ANY
OF THE TRANSACTIONS CONTEMPLATED HEREBY WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY. 
 14. Severability. Any term or provision of this Limited Guaranty that is invalid or unenforceable in any situation in any jurisdiction will not affect the validity or enforceability of the
remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction; provided, however, that this Limited Guaranty may not be enforced without
giving effect to the limitation of the amount payable hereunder to the Maximum Amount provided in Section 1 hereof and to the provisions of Sections 3 and 4 hereof. No party hereto shall assert, and each party shall cause its respective
affiliates not to assert, that this Limited Guaranty or any part hereof is invalid, illegal or unenforceable. 
 15.
Headings. The headings contained in this Limited Guaranty are for convenience purposes only and will not in any way affect the meaning or interpretation hereof. 
 [Signature page follows.] 
  

 - 6 - 

 IN WITNESS WHEREOF, the undersigned have executed and delivered this Limited Guaranty as of
June 12, 2006. 
  

											
	GUARANTOR:	 		 	WESTON PRESIDIO V, L.P.
					
		 		 		 	By:	 	 Weston Presidio Management V, LLC,
 its general partner

					
		 		 		 	By:	 	 

		 		 		 		 	Name:	 	R. Sean Honey
		 		 		 		 	Title:	 	Member
			
	BENEFICIARY:	 		 	CHARTER AGENT LLC
				
		 		 	By:	 	  

		 		 		 	Name:	 	
		 		 		 	Title:	 	

 IN WITNESS WHEREOF, the undersigned have executed and delivered this Limited Guaranty as of
June 12, 2006. 
  

											
	GUARANTOR:	 		 	WESTON PRESIDIO V, L.P.
					
		 		 		 	By:	 	 Weston Presidio Management V, LLC,
 its general partner

					
		 		 		 	By:	 	  

		 		 		 		 	Name:	 	
		 		 		 		 	Title:	 	
			
	BENEFICIARY:	 		 	CHARTER AGENT LLC
				
		 		 	By:	 	 

		 		 		 	Name:	 	
		 		 		 	Title:	 	

 Schedule 6.1 
 Approval of Company Stockholders 
  

	1.	Charterhouse Equity Partners III, L.P.; 

  

	2.	Chef Nominees Limited; 

  

	3.	Russell C. Taylor; 

  

	4.	Taylor Investment Partners; 

  

	5.	Steven Ziessler; and 

  

	6.	Dianne Scheu. 

  

 89 

 Schedule 6.2 
 Conduct of Business Prior to Effective Time 
  

	1.	The Company’s Board intends to adopt the FY 2007 Bonus Plan. 

  

	2.	The Company intends to pay the 2006 bonuses pursuant to the Company’s bonus plan. 

  

	3.	The Company will renew, or find alternative coverage to replace insurance policies expiring on May 20, 2006. 

  

	4.	The Company expects to incur expenses for the following material projects not included in the Capital Expenditure Budget: 

  

	 	•	 	 Recycled fiber modification at Coastal 

  

	 	•	 	 Cogen Plant at East Hartford 

  

	 	•	 	 Parisella Vincelli Productivity Project 

  

	 	•	 	 Measurex at Interlake 

  

	 	•	 	 Interlake No. 3 Trim Project (The Irving Paper customer) 

  

 90 

 Schedule 9.2(g) 
 Termination of Certain Agreements 
  

	1.	Stockholders Agreement, dated as of September 28, 2001, among Cellu Paper Holdings, Inc. (the “Company”), Charterhouse Equity Partners III, L.P.
(“CEP III”), Chef Nominees Limited (“Chef”), WAHYAM Capital, LLC (“WAHYAM”) and the other parties listed therein. 

  

	2.	Amendment to Stockholders Agreement, dated as of September 30, 2002, among CEP III, Chef, WAHYAM, the Company and the other parties listed therein.

  

	3.	Supplemental Stockholders Agreement among the Company and Russell C. Taylor (Joinder to the Stockholders Agreement, dated as of September 28, 2001, as amended
September 30, 2002). 

  

	4.	Warrant Agreement, dated as of September 28, 2001, between the Company and the Warrantholders party thereto. 

  

	5.	Financial Advisory and Management Services Agreement, dated September 30, 2002, between Cellu Tissue Holdings, Inc. and Charterhouse Group International, Inc.

  

	6.	Engagement Letter, dated as of December 8, 2004, between JP Morgan Securities, Inc. and the Company, including acknowledgement by JP Morgan Securities, Inc. of
payment in full of all amounts due pursuant to the letter. 

  

	7.	Engagement Letter, dated as of December 15, 2004, between William Blair & Company LLC and The Company, including acknowledgement by William
Blair & Company of payment in full of all amounts due pursuant to the letter. 

  

	8.	Supplemental Stockholders Agreement, dated March 27, 2006 between the Company and Steven Ziessler (Joinder to the Stockholders Agreement, dated as of
September 28, 2001, as amended September 30, 2002). 

  

	9.	Supplemental Stockholders Agreement, dated March 27, 2006 between the Company and Dianne Scheu (Joinder to the Stockholders Agreement, dated as of
September 28, 2001, as amended September 30, 2002). 

  

 91 

 Schedule 9.2(h) 
 Repayment of Pre-Closing Indebtedness 
  

	1.	Any Indebtedness outstanding under the revolving credit facility with CIT (plus any prepayment fees). 

  

 92 

 Schedule 9.2(n) 
 Management Rollover 
 Rollover Shareholders: 
 Russell Taylor 
 Taylor Investment Partners

 Steven Ziessler 
 Dianne Scheu

  

 93 

 Schedule 9.2(p) 
 Other Agreements 
  

	1.	Employment Agreement between Russell Taylor and the Surviving Corporation. 

  

	2.	Employment Agreement between Steven Zeissler and the Surviving Corporation. 

  

	3.	Employment Agreement between Dianne Scheu and the Surviving Corporation. 

  

 94 

 Schedule 11.1 
 Certain Matters 
  

	1.	“Any liability for workers compensation in excess of the amount for which invoices have been received by the Company immediately prior to the Effective Time.”

  

	2.	Any liabilities arising from or with respect to the U.S. Department of Labor – Occupational Safety and Health Administration citation of 2/23/06 with respect to
Cellu Tissue Corporation – Natural Dam. 

  

	3.	Any liabilities arising from or with respect to the audits of the 2001 and 2003 Canadian tax returns of Interlake 

  

	4.	Any liabilities arising from or with respect to obligations to Thomas Gallagher under the following agreements: 

  

	 	152.	Separation Agreement, dated February 3, 2003, between Thomas Gallagher and CTH. 

  

	 	153.	Supplemental Retirement Agreement, dated May 9, 1996, between Thomas Gallagher and Coastal Paper. 

  

	 	154.	Supplemental Retirement Agreement, dated September 29, 1992, between Thomas Gallagher and Coastal Paper. 

  

	 	155.	Consulting and Release of Claims Agreement, dated February 3, 2003, between Thomas Gallagher and CTH. 

  

	5.	All liabilities arising from or with respect to The State of Connecticut Department of Environmental Protection Notice of Violation issued to Cellu-Tissue L.L.C. on
December 28, 2005. 

  

 96

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