Document:

Exhibit 10.1

 

EXECUTION COPY

 

 

CREDIT AGREEMENT

 

dated as of

 

November 1, 2004

 

among

 

SMURFIT-STONE CONTAINER CORPORATION,

as a Guarantor,

 

SMURFIT-STONE CONTAINER ENTERPRISES, INC.

and

SMURFIT-STONE CONTAINER CANADA INC.,

as Borrowers,

 

The Lenders Party Hereto,

 

JPMORGAN CHASE BANK,

as Senior Agent,

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Senior Agent and Administrative Agent,

 

and

 

DEUTSCHE BANK AG,

as Canadian Administrative Agent,

 

 

J.P. MORGAN SECURITIES INC.

and

DEUTSCHE BANK SECURITIES INC.,

as Joint Bookrunners and Co-Lead Arrangers

 

J.P. MORGAN CHASE BANK,

as Syndication Agent

 

BANK OF AMERICA, N.A., SCOTIA BANK and 

SOCIETE GENERALE,

as Co-Documentation Agents

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  Definitions

  	
   

  
	
   

  	
   

  
	
  SECTION 1.01.  Defined Terms

  	
   

  
	
  SECTION 1.02.  Terms Generally

  	
   

  
	
  SECTION 1.03.  Classification of Loans and Borrowings

  	
   

  
	
  SECTION 1.04.  Exchange Rate Calculations

  	
   

  
	
  SECTION 1.05.  Pro Forma Calculations

  	
   

  
	
  SECTION 1.06.  Accounting Terms; U.S. GAAP

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  The Credits

  	
   

  
	
   

  	
   

  
	
  SECTION 2.01.  Commitments; Deposit Account

  	
   

  
	
  SECTION 2.02.  Loans

  	
   

  
	
  SECTION 2.03.  Notice of Borrowings

  	
   

  
	
  SECTION 2.04.  Repayment of Loans; Evidence of Debt

  	
   

  
	
  SECTION 2.05.  Fees; Deposit Return

  	
   

  
	
  SECTION 2.06.  Interest on Loans

  	
   

  
	
  SECTION 2.07.  Default Interest

  	
   

  
	
  SECTION 2.08.  Alternate Rate of Interest

  	
   

  
	
  SECTION 2.09.  Termination and Reduction of Commitments;
  Return of Deposits

  	
   

  
	
  SECTION 2.10.  Conversion and Continuation of Borrowings

  	
   

  
	
  SECTION 2.11.  Repayment of Term Borrowings

  	
   

  
	
  SECTION 2.12.  Optional Prepayments

  	
   

  
	
  SECTION 2.13.  Mandatory Prepayments

  	
   

  
	
  SECTION 2.14.  Reserve Requirements; Change in
  Circumstances; Increased Costs

  	
   

  
	
  SECTION 2.15.  Indemnity

  	
   

  
	
  SECTION 2.16.  Pro Rata Treatment

  	
   

  
	
  SECTION 2.17.  Sharing of Setoffs and Realization of
  Security

  	
   

  
	
  SECTION 2.18.  Payments

  	
   

  
	
  SECTION 2.19.  Taxes

  	
   

  
	
  SECTION 2.20.  Duty to Mitigate; Replacement of Lenders

  	
   

  
	
  SECTION 2.21.  Swingline Loans

  	
   

  
	
  SECTION 2.22.  Bankers’ Acceptances

  	
   

  
	
  SECTION 2.23.  Incremental Commitments

  	
   

  

 

 

	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  Letters of Credit

  	
   

  
	
   

  	
   

  
	
  SECTION 3.01.  General

  	
   

  
	
  SECTION 3.02.  Notice of Issuance, Amendment, Renewal,
  Extension; Certain Conditions

  	
   

  
	
  SECTION 3.03.  Expiration Date

  	
   

  
	
  SECTION 3.04.  Participations

  	
   

  
	
  SECTION 3.05.  Reimbursement

  	
   

  
	
  SECTION 3.06.  Obligations Absolute

  	
   

  
	
  SECTION 3.07.  Disbursement Procedures

  	
   

  
	
  SECTION 3.08.  Interim Interest

  	
   

  
	
  SECTION 3.09.  Cash Collateralization

  	
   

  
	
  SECTION 3.10.  Replacement of a Facing Agent

  	
   

  
	
  SECTION 3.11.  Additional Facing Agents

  	
   

  
	
  SECTION 3.12.  Existing Letters of Credit

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  Representations and Warranties

  	
   

  
	
   

  	
   

  
	
  SECTION 4.01.  Organization; Powers

  	
   

  
	
  SECTION 4.02.  Authorization

  	
   

  
	
  SECTION 4.03.  Enforceability

  	
   

  
	
  SECTION 4.04.  Governmental Approvals

  	
   

  
	
  SECTION 4.05.  Financial Statements

  	
   

  
	
  SECTION 4.06.  No Material Adverse Effect

  	
   

  
	
  SECTION 4.07.  Title to Properties; Possession Under
  Leases

  	
   

  
	
  SECTION 4.08.  Subsidiaries

  	
   

  
	
  SECTION 4.09.  Litigation; Compliance with Laws

  	
   

  
	
  SECTION 4.10.  Federal Reserve Regulations

  	
   

  
	
  SECTION 4.11.  Investment Company Act; Public Utility
  Holding Company Act

  	
   

  
	
  SECTION 4.12.  Tax Returns

  	
   

  
	
  SECTION 4.13.  No Material Misstatements

  	
   

  
	
  SECTION 4.14.  Employee Benefit Plans

  	
   

  
	
  SECTION 4.15.  Environmental and Safety Matters

  	
   

  
	
  SECTION 4.16.  Solvency

  	
   

  
	
  SECTION 4.17.  Security Documents

  	
   

  
	
  SECTION 4.18.  Labor Matters

  	
   

  
	
  SECTION 4.19.  Location of Real Property

  	
   

  
	
  SECTION 4.20.  Patents, Trademarks, etc

  	
   

  

 

ii

 

	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  Conditions

  	
   

  
	
   

  	
   

  
	
  SECTION 5.01.  All Credit Events

  	
   

  
	
  SECTION 5.02.  Conditions Precedent to the Closing Date

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  Affirmative Covenants

  	
   

  
	
   

  	
   

  
	
  SECTION 6.01.  Existence; Businesses and Properties

  	
   

  
	
  SECTION 6.02.  Insurance

  	
   

  
	
  SECTION 6.03.  Payment of Taxes

  	
   

  
	
  SECTION 6.04.  Financial Statements, Reports, etc

  	
   

  
	
  SECTION 6.05.  Litigation and Other Notices

  	
   

  
	
  SECTION 6.06.  Maintaining Records; Access to Properties
  and Inspections

  	
   

  
	
  SECTION 6.07.  Use of Proceeds

  	
   

  
	
  SECTION 6.08.  Compliance with Law

  	
   

  
	
  SECTION 6.09.  Further Assurances

  	
   

  
	
  SECTION 6.10.  Material Contracts

  	
   

  
	
  SECTION 6.11.  Environmental Matters

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  
	
  Negative Covenants

  	
   

  
	
   

  	
   

  
	
  SECTION 7.01.  Indebtedness

  	
   

  
	
  SECTION 7.02.  Liens

  	
   

  
	
  SECTION 7.03.  Sale/Leaseback Transactions

  	
   

  
	
  SECTION 7.04.  Investments, Loans and Advances

  	
   

  
	
  SECTION 7.05.  Mergers, Consolidations, Sales of Assets
  and Acquisitions

  	
   

  
	
  SECTION 7.06.  Restricted Payments

  	
   

  
	
  SECTION 7.07.  Transactions with Stockholders and
  Affiliates

  	
   

  
	
  SECTION 7.08.  Business

  	
   

  
	
  SECTION 7.09.  Limitations on Debt Prepayments

  	
   

  
	
  SECTION 7.10.  Amendment of Certain Documents

  	
   

  
	
  SECTION 7.11.  Limitation on Dispositions of Stock of
  Subsidiaries

  	
   

  
	
  SECTION 7.12.  Restrictions on Ability of Subsidiaries to
  Pay Dividends

  	
   

  
	
  SECTION 7.13.  Capital Expenditures

  	
   

  
	
  SECTION 7.14.  Consolidated Senior Secured Leverage Ratio

  	
   

  
	
  SECTION 7.15.  Interest Coverage Ratio

  	
   

  
	
  SECTION 7.16.  Disposition of Collateral and Other Assets

  	
   

  
	
  SECTION 7.17.  Fiscal Year

  	
   

  

 

iii

 

	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  
	
  Events of Default

  	
   

  
	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
   

  	
   

  
	
  The Agents

  	
   

  
	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
   

  	
   

  
	
  Collection Allocation Mechanism

  	
   

  
	
   

  	
   

  
	
  SECTION 10.01.  Implementation of CAM

  	
   

  
	
  SECTION 10.02.  Letters of Credit

  	
   

  
	
  SECTION 10.03.  Conversion

  	
   

  
	
   

  	
   

  
	
  ARTICLE XI

  	
   

  
	
   

  	
   

  
	
  Miscellaneous

  	
   

  
	
   

  	
   

  
	
  SECTION 11.01.  Notices

  	
   

  
	
  SECTION 11.02.  Survival of Agreement

  	
   

  
	
  SECTION 11.03.  Counterparts; Binding Effect

  	
   

  
	
  SECTION 11.04.  Successors and Assigns

  	
   

  
	
  SECTION 11.05.  Expenses; Indemnity

  	
   

  
	
  SECTION 11.06.  Right of Setoff

  	
   

  
	
  SECTION 11.07.  Applicable Law

  	
   

  
	
  SECTION 11.08.  Waivers; Amendment

  	
   

  
	
  SECTION 11.09.  Release of Collateral and Guarantors

  	
   

  
	
  SECTION 11.10.  Interest Rate Limitation

  	
   

  
	
  SECTION 11.11.  Entire Agreement

  	
   

  
	
  SECTION 11.12.  Waiver of Jury Trial

  	
   

  
	
  SECTION 11.13.  Severability

  	
   

  
	
  SECTION 11.14.  Headings

  	
   

  
	
  SECTION 11.15.  Confidentiality

  	
   

  
	
  SECTION 11.16.  Jurisdiction; Consent to Service of Process

  	
   

  
	
  SECTION 11.17.  Florida Real Property

  	
   

  
	
  SECTION 11.18.  Judgment Currency

  	
   

  
	
  SECTION 11.19.  Certain Relationships

  	
   

  
	
  SECTION 11.20.  USA Patriot Act

  	
   

  

 

iv

 

SCHEDULES:

 

	
  Schedule 1.01(a)

  	
  —

  	
  Existing Letters of Credit

  
	
  Schedule 1.01(b)

  	
  —

  	
  Material Subsidiaries

  
	
  Schedule 1.01(c)

  	
  —

  	
  Mortgaged Properties

  
	
  Schedule 1.01(d)

  	
  —

  	
  Mortgages

  
	
  Schedule 1.01(e)

  	
  —

  	
  Receivables Program
  Documents

  
	
  Schedule 2.01

  	
  —

  	
  Commitments

  
	
  Schedule 4.07

  	
  —

  	
  Certain Title Matters

  
	
  Schedule 4.08

  	
  —

  	
  Subsidiaries

  
	
  Schedule 4.09

  	
  —

  	
  Litigation and
  Compliance with Laws

  
	
  Schedule 4.15

  	
  —

  	
  Environmental Matters

  
	
  Schedule 4.17(a)

  	
  —

  	
  UCC Lien Filing Offices

  
	
  Schedule 4.17(b)

  	
  —

  	
  Canadian Lien Filing
  Offices

  
	
  Schedule 4.17(e)

  	
  —

  	
  Mortgage Filing Offices

  
	
  Schedule 4.18

  	
  —

  	
  Labor Matters

  
	
  Schedule 4.19

  	
  —

  	
  Real Properties

  
	
  Schedule 5.02(a)

  	
  —

  	
  Local Counsel

  
	
  Schedule 6.09(c)

  	
  —

  	
  Certain Non-Collateral
  Properties

  
	
  Schedule 7.01

  	
  —

  	
  Indebtedness

  
	
  Schedule 7.02(a)(iv)

  	
  —

  	
  Existing Liens

  
	
  Schedule 7.04

  	
  —

  	
  Certain Permitted
  Investments

  
	
  Schedule 7.12

  	
  —

  	
  Subsidiary Dividend
  Exceptions

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  —

  	
  Form of Administrative
  Questionnaire

  
	
  Exhibit B

  	
  —

  	
  Form of Assignment and
  Acceptance

  
	
  Exhibit C

  	
  —

  	
  Form of Guarantee
  Agreement (Canadian)

  
	
  Exhibit D

  	
  —

  	
  Form of Guarantee and
  Collateral Agreement (U.S.)

  
	
  Exhibit E

  	
  —

  	
  Form of Revolving
  Facility Letter of Credit Request

  
	
  Exhibit F

  	
  —

  	
  Form of Revolving (Canadian) Facility Letter of
  Credit Request

  
	
  Exhibit G

  	
  —

  	
  Form of Deposit Funded Facility Letter of Credit
  Request

  
	
  Exhibit H

  	
  —

  	
  Form of Mortgage

  
	
  Exhibit I

  	
  —

  	
  Form of Pledge
  Agreement (Canadian)

  
	
  Exhibit J

  	
  —

  	
  Form of Security
  Agreement (Canadian)

  
	
  Exhibit K

  	
  —

  	
  Form of Notice of
  Borrowing

  
	
  Exhibit L

  	
  —

  	
  Form of Note

  
	
  Exhibit M

  	
  —

  	
  Form of Notice of Conversion
  or Continuation

  
	
  Exhibit N-1

  	
  —

  	
  Form of Opinion of U.S.
  Counsel

  
	
  Exhibit N-2

  	
  —

  	
  Form of Opinion of
  Craig A. Hunt

  
	
  Exhibit N-3

  	
  —

  	
  Form of Opinion of
  Ontario Counsel

  
	
  Exhibit N-4

  	
  —

  	
  Form of Opinion of
  Quebec Counsel

  
	
  Exhibit N-5

  	
  —

  	
  Form of Opinion of
  Canadian Tax Counsel

  
	
  Exhibit N-6

  	
  —

  	
  Form of Opinion of Nova
  Scotia Counsel

  

 

v

 

CREDIT AGREEMENT dated as of November 1, 2004, among SMURFIT-STONE
CONTAINER CORPORATION, a Delaware corporation (“SSCC”); SMURFIT-STONE
CONTAINER ENTERPRISES, INC., a Delaware corporation (“SSCE”);
SMURFIT-STONE CONTAINER CANADA INC., a corporation continued under the
Companies Act (Nova Scotia) (“SSC Canada” and, together with SSCE, the “Borrowers”);
the Lenders party hereto; JPMORGAN CHASE BANK, a New York banking corporation
(“JPMCB”), as Senior Agent, Deposit Account Agent and Deposit Funded
Facility Facing Agent; DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York
banking corporation (“DB”), as Senior Agent, Administrative Agent,
Collateral Agent, Swingline Lender and Revolving Facility Facing Agent; and
DEUTSCHE BANK AG, an authorized foreign bank permitted to carry on business in
Canada and listed on Schedule III of the Bank Act (Canada) (“DB Canada”),
as Canadian Administrative Agent and Revolving (Canadian) Facility Facing
Agent.

 

SSCC and the
Borrowers have requested (a) the Tranche B Lenders (such term and each other
capitalized term used but not otherwise defined in the preamble or in this
introductory statement having the meaning specified in Article I) to
make to SSCE Tranche B Loans in U.S. Dollars in an aggregate principal amount
not in excess of U.S.$975,000,000, (b) the Tranche C Lenders to make to SSC
Canada Tranche C Loans in U.S. Dollars in an aggregate principal amount not in
excess of U.S.$300,000,000, (c) the Revolving Lenders to make to SSCE from
time to time Revolving Loans in U.S. Dollars in an aggregate principal amount
at any time outstanding not in excess of U.S.$600,000,000, (d) the Swingline
Lender to make to SSCE from time to time Swingline Loans in U.S. Dollars in an
aggregate principal amount at any time outstanding not in excess of
U.S.$50,000,000, (e) the Revolving (Canadian) Lenders to make from time to time
Revolving (Canadian) Loans (i) to SSC Canada in U.S. Dollars or in Canadian
Dollars and (ii) to SSCE in U.S. Dollars, in an aggregate principal amount at
any time outstanding not in excess of U.S.$200,000,000, and (f) the Deposit
Funded Lenders to provide and fund Deposit Funded Commitments in an aggregate amount
of U.S.$121,930,726.03.

 

SSCC and the
Borrowers also have requested (a) the Revolving Facility Facing Agent to issue
Revolving Facility Letters of Credit in an aggregate face amount at any time
outstanding not in excess of U.S.$200,000,000, (b) the Revolving (Canadian)
Facility Facing Agent to issue Revolving (Canadian) Facility Letters of Credit
in an aggregate face amount at any time outstanding not in excess of
U.S.$50,000,000 (or the Canadian Dollar Equivalent thereof) and (c) the Deposit
Funded Facility Facing Agent to issue Deposit Funded Letters of Credit in an
aggregate face amount at any time outstanding not in excess of
U.S.$121,930,726.03.

 

The proceeds
of the Tranche B Loans and Tranche C Loans to be made on the Closing Date,
together with the proceeds of the Revolving Loans and Revolving

 

 

(Canadian) Loans to be made on the Closing Date, will be used by the
Borrowers on the Closing Date to pay in full all amounts due or outstanding
under the Existing Credit Agreements and to pay related fees and expenses.  The proceeds of the Revolving Loans and
Revolving (Canadian) Loans made after the Closing Date will be used by the
Borrowers solely for general corporate purposes, including the financing of
Permitted Acquisitions and capital expenditures.  Subject to the immediately succeeding
sentence, Revolving Facility Letters of Credit and Revolving (Canadian)
Facility Letters of Credit will be used by the Borrowers and their subsidiaries
solely for general corporate purposes, and Deposit Funded Letters of Credit
will be used by SSCE solely to support its obligations in respect of the
Stevenson IRBs.  The proceeds of
Incremental Loans and other extensions of credit under the Incremental
Commitments will be used by the Borrowers for the purposes specified in the
applicable Incremental Credit Assumption Agreement.

 

The Lenders
are willing to extend such credit to the Borrowers, and the Facing Agents are
willing to issue Letters of Credit for the account of the Borrowers, on the
terms and subject to the conditions set forth herein.  Accordingly, the parties hereto agree as
follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.01.  Defined Terms.  As used in this Agreement, the following
terms shall have the meanings specified below:

 

“ABR”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Alternate Base Rate.

 

“Acceptance
Fee” shall mean a fee payable in Canadian Dollars by SSC Canada to the
Canadian Administrative Agent for the account of a Revolving (Canadian) Lender
with respect to the acceptance of a B/A or the making of a B/A Equivalent Loan
on the date of such acceptance or loan, calculated on the face amount of the
B/A or the B/A Equivalent Loan at the rate per annum applicable on such date as
set forth in the row labeled “Eurodollar Revolving/ B/A Spread” in the
definition of the term “Applicable Rate” set forth herein on the basis of the
number of days in the applicable Contract Period (including the date of
acceptance and excluding the date of maturity) and a year of 365 days (it
being agreed that the rate per annum applicable to the B/A Equivalent Loan is
equivalent to the rate per annum otherwise applicable to the Bankers’ Acceptance
which has been replaced by the making of such B/A Equivalent Loan pursuant to Section 2.22).

 

“Acquisition
Indebtedness” is defined in Section 7.01(q).

 

2

 

“Adjusted
LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/16 of 1%) equal to the product of (a) the LIBO Rate in effect
for such Interest Period and (b) Statutory Reserves.

 

“Administrative
Agent” shall mean DB, in its capacity as administrative agent for the
Lenders and the Facing Agents.  Unless
the context shall otherwise require, the term “Administrative Agent”, when used
in respect of payments and notices pertaining to Revolving (Canadian) Loans
made to SSC Canada or Revolving (Canadian) Facility Letters of Credit, shall
mean the Canadian Administrative Agent.

 

“Administrative
Questionnaire” shall mean an Administrative Questionnaire in the form of Exhibit A,
or any other form supplied from time to time by the Administrative Agent.

 

“Affiliate”
shall mean, when used with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.  For purposes of this definition, neither any
Lender nor any Affiliate of a Lender shall be deemed to be an Affiliate of SSCC
or any of the Subsidiaries solely by reason of its ownership of or right to
vote any Indebtedness or equity securities of SSCC or any of the Subsidiaries.

 

“After-Acquired
Mortgage Property” shall mean a parcel (or adjoining parcels) of real
property (including any improvements thereon) acquired in fee ownership by any
Loan Party after the Closing Date.

 

“Agents”
shall mean, collectively, the Senior Agents, the Administrative Agent, the
Canadian Administrative Agent, the Collateral Agent and the Deposit Account
Agent.

 

“Agreement”
shall mean this credit agreement.

 

“Alternate
Base Rate” shall mean, for any day, a rate equal to the greater of
(a) the Prime Rate (or, with respect to any ABR Revolving (Canadian) Loan,
the U.S. Base Rate) in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 0.50%.  Any change in the Alternate Base Rate due to
a change in the Prime Rate, the U.S. Base Rate or the Federal Funds Effective
Rate shall be effective on the effective date of such change in the Prime Rate,
the U.S. Base Rate or the Federal Funds Effective Rate, respectively.

 

“Applicable
Obligations” shall mean (a) with respect to SSCC, SSCE and any other
Domestic Subsidiary (other than any Domestic Subsidiary that is a subsidiary of
a Canadian Subsidiary), the Obligations and (b) with respect to any Canadian
Subsidiary or a subsidiary of a Canadian Subsidiary, the Canadian Obligations.

 

“Applicable
Percentage” of any (a) Revolving Lender shall mean the percentage of
the aggregate Revolving Credit Commitments represented by such Lender’s
Revolving Credit Commitment, (b) Revolving (Canadian) Lender shall mean

 

3

 

the percentage of the aggregate Revolving (Canadian) Credit Commitments
represented by such Lender’s Revolving (Canadian) Credit Commitment or
(c) Deposit Funded Lender shall mean the percentage of the aggregate
Deposit Funded Commitments represented by such Lender’s Deposit Funded
Commitment.  If the Revolving Credit
Commitments, Revolving (Canadian) Credit Commitments or Deposit Funded Commitments,
as applicable, shall have terminated or expired, the Applicable Percentages
shall be determined based upon the Revolving Credit Commitments, Revolving
(Canadian) Credit Commitments or Deposit Funded Commitments, as applicable,
most recently in effect, giving effect to any assignments.

 

“Applicable
Rate” shall mean (except as otherwise provided in the Incremental Term Loan
Assumption Agreement with respect to any Incremental Term Loan), for any day,
(a) with respect to any ABR Term Loan, 1.00% per annum, (b) with
respect to any Eurodollar Term Loan, 2.00% per annum, and (c) with respect
to (i) any ABR Revolving Loan, ABR Revolving (Canadian) Loan or Canadian
Prime Rate Loan, (ii) any Eurodollar Revolving Loan, Eurodollar Revolving
(Canadian) Loan or B/A Loan or (iii) the Commitment Fees in respect of
unused Revolving Credit Commitments and unused Revolving (Canadian) Credit
Commitments, as the case may be, the applicable percentage set forth below
under the caption (x) ”ABR Revolving/Canadian Prime Rate Spreads”,
(y) ”Eurodollar Revolving/ B/A Spreads” and (z) ”Commitment Fees”, as
the case may be, based upon the Consolidated Leverage Ratio as of the relevant
date of determination:

 

	
  Consolidated

  Leverage Ratio

  	
   

  	
  ABR Revolving/

  Canadian Prime Rate

  Spreads

  	
   

  	
  Eurodollar

  Revolving/

  B/A Spreads

  	
   

  	
  Commitment Fees

  	
   

  
	
  Greater than
  4.0x

  	
   

  	
  1.25%

  	
   

  	
  2.25%

  	
   

  	
  0.500%

  	
   

  
	
  Greater than
  3.0x but less than or equal to 4.0x

  	
   

  	
  1.00%

  	
   

  	
  2.00%

  	
   

  	
  0.500%

  	
   

  
	
  Greater than
  2.0x but less than or equal to 3.0x

  	
   

  	
  0.75%

  	
   

  	
  1.75%

  	
   

  	
  0.500%

  	
   

  
	
  Less than or
  equal to 2.0x

  	
   

  	
  0.50%

  	
   

  	
  1.50%

  	
   

  	
  0.375%

  	
   

  

 

Each change in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall be effective with respect to all Loans,
Commitments and Letters of Credit on the date of delivery to the Administrative
Agent of the financial statements and certificates required by Section 6.04(a)
or (b) and (c), respectively, based upon the Consolidated
Leverage Ratio as of the end of the most recent fiscal quarter included in such
financial statements so delivered, and shall remain in effect until the date immediately
preceding the next date of delivery of such financial statements and
certificates indicating another such change. 
Notwithstanding the foregoing, (a) (i) until the delivery of the
financial statements and certificates required by Section 6.04(b)
and (c), respectively, for the fiscal quarter ending June 30, 2005,
and (ii) at any time after the occurrence and during the continuance of an
Event of Default, the Consolidated Leverage Ratio shall be deemed greater than
4.0 to 1.0 for purposes of determining the Applicable Rate and (b) the 

Applicable Rate with respect to any Eurodollar Term Loan or

 

4

 

ABR Term Loan shall automatically be increased by the Yield
Differential, if any, upon the making of any Other Term Loans, as provided in Section 2.23(d).

 

“Approved
Fund” shall mean any Person (other than a natural person) that is engaged
in making, purchasing, holding or investing in bank loans and similar
extensions of credit in the ordinary course of its business and that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an
entity or an Affiliate of an entity that administers or manages a Lender.

 

“Arrangers”
shall mean J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc.

 

“Asset
Exchange” shall mean any transfer of operating properties or assets by SSCC
or any of the Subsidiaries to any Person in which at least 75% of the
consideration received by the transferor consists of operating properties or
assets of comparable use.

 

“Asset Sale”
shall mean the sale, transfer or other disposition (including any casualty or
condemnation) by SSCC or any Subsidiary to any Person other than a Loan Party
or a wholly owned Subsidiary of (a) any capital stock in any Person,
(b) substantially all the assets of any geographic or other division or
line of business of SSCC or any of the Subsidiaries or (c) any Real
Property or a portion of any Real Property or any other asset or assets
(excluding any assets manufactured, constructed or otherwise produced or
purchased for sale to others in the ordinary course of business, any Permitted
Investments and any Program Receivables) of SSCC or any Subsidiary; provided
that none of the following shall constitute an “Asset Sale” for purposes of
this Agreement:  (i) any sale, transfer or other disposition having a
value not in excess of U.S.$5,000,000, (ii) any sale of assets in
connection with any Permitted Equipment Financing or any Permitted Timber
Financing, (iii) the sale of assets (other than Collateral) securing any
Indebtedness permitted hereunder (other than the Loans), unless such
Indebtedness shall be repaid, redeemed or repurchased in full with the proceeds
of such asset sale (or any other payment made contemporaneously therewith) and
(iv) any issuance of capital stock by SSCC.

 

“Assignment
and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any Person whose consent is
required by Section 11.04(b)), in the form of Exhibit B or such
other form as shall be approved by the Administrative Agent.

 

“Attributable
Indebtedness” shall mean, with respect to any Sale/Leaseback Transaction
that does not result in a Capital Lease, at any date of determination, the
product of (a) the net proceeds from such Sale/Leaseback Transaction and
(b) a fraction, the numerator of which is the number of full years of the
term of the lease relating to the property involved in such Sale/Leaseback
Transaction (without regard to any options to renew or extend such term)
remaining at the date of the making of such computation and the denominator of
which is the number of full years of the term

 

5

 

of such lease (without regard to any options to renew or extend such
term) measured from the first day of such term.

 

“B/A
Equivalent Loan” is defined in Section 2.22(h).

 

“B/A Loan”
shall mean a Borrowing comprised of one or more Bankers’ Acceptances or, as
applicable, B/A Equivalent Loans.  For
greater certainty, all provisions of this Agreement which are applicable to
Bankers’ Acceptances are also applicable, mutatis mutandis, to B/A Equivalent
Loans.

 

“Bank Act
Security” shall mean security delivered by SSC Canada to each SSC Canada
Lender that is a bank listed under Schedule I, II or III of the Bank Act
(Canada).

 

“Bankers’
Acceptance” and “B/A” shall mean a non-interest bearing instrument
denominated in Canadian Dollars, drawn by SSC Canada and accepted by a
Revolving (Canadian) Lender in accordance with this Agreement, and shall
include a depository note within the meaning of the Depository Bills and Notes
Act (Canada) and a bill of exchange within the meaning of the Bills of Exchange
Act (Canada); and when used in conjunction with a “Loan” or a “Borrowing”,
shall include a B/A Equivalent Loan.

 

“Board”
shall mean the Board of Governors of the Federal Reserve System of the
United States.

 

“Bondholders”
shall mean any or all holders of the Bonds.

 

“Bond
Pledge Agreements” shall mean, collectively, the SSC Canada Bond Pledge
Agreement, the Francobec Company Bond Pledge Agreement, the MBI Bond Pledge
Agreement and the SMBI Bond Pledge Agreement.

 

“Bonds”
shall mean any or all of the SSC Canada Bonds, the Francobec Company Bonds, the
MBI Bonds and the SMBI Bonds.

 

“Borrowers”
is defined in the preamble to this Agreement.

 

“Borrowers’
Portion of Excess Cash Flow” shall mean, at any date of determination, the
amount of Excess Cash Flow for the preceding full fiscal year of SSCC,
commencing on or after January 1, 2005 and ending prior to the date of
determination, that (a) was not or is not required to be applied to the
prepayment of Term Loans as described in Section 2.13(c) and
(b) has not been utilized on or prior to the date of determination (i) to
make Consolidated Capital Expenditures pursuant to the first proviso in the
first sentence of Section 7.13 or (ii) to make Restricted
Payments pursuant to Section 7.06(b)(i).

 

“Borrowing”
shall mean (a) a group of Loans of the same Class and Type, and denominated in
the same currency, made, converted or continued by the Lenders on a single date
and as to which a single Interest Period is in effect or (b) a Swingline Loan.

 

6

 

“Business
Day” shall mean any day (other than a Saturday, Sunday or legal holiday in
the State of New York) on which banks are open for business in New York City
and Chicago; provided, however, that (a) when used in
connection with a Eurodollar Loan or Eurodollar Borrowing, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in
dollar deposits in the London interbank market, (b) when used in
connection with a Borrowing by SSC Canada, a Borrowing denominated in Canadian
Dollars or a Revolving (Canadian) Facility Letter of Credit, the term “Business
Day” shall also exclude any day on which banks are not open for business in
Toronto and Montreal, and (c) when used in connection with a Letter of
Credit, the term “Business Day” shall also exclude any day on which banks are
not open for business in the jurisdiction in which the applicable lending
office of the applicable Facing Agent is located.

 

“Calculation
Date” shall mean (a) the last Business Day of each month, (b) the
date of each notice of borrowing of Revolving (Canadian) Loans and (c) the
Business Day preceding the issuance, amendment, extension or renewal of each
Revolving (Canadian) Facility Letter of Credit.

 

“Callable
Senior Notes” shall mean, at any time, the Senior Notes that at such time
may be redeemed by SSCE at the option of SSCE pursuant to the terms thereof.

 

“CAM”
shall mean the mechanism for the allocation and exchange of interests in the
Credit Facilities and collections thereunder established under Article X.

 

“CAM
Exchange” shall mean the exchange of the Lenders’ interests provided for in
Section 10.01.

 

“CAM
Exchange Date” shall mean the first date after the Closing Date on which
there shall occur (a) any event described in paragraph (g) or (h)
of Article VIII with respect to either Borrower or (b) an
acceleration of the maturity of Loans pursuant to Article VIII.

 

“CAM
Percentage” shall mean, as to each Lender, a fraction, expressed as a
decimal, of which (a) the numerator shall be the sum of (i) the
aggregate Designated Obligations owed to such Lender and (ii) the LC
Exposure and Swingline Exposure, if any, of such Lender, in each case
immediately prior to the CAM Exchange Date, and (b) the denominator shall
be the sum of (i) the aggregate Designated Obligations owed to all the
Lenders and (ii) the aggregate LC Exposure and Swingline Exposure of all
the Lenders, in each case immediately prior to such CAM Exchange Date.  For purposes of computing each Lender’s CAM
Percentage, all Designated Obligations which shall be denominated in Canadian
Dollars shall be translated into U.S. Dollars at the Exchange Rate in effect on
the CAM Exchange Date.

 

“Canadian
Administrative Agent” shall mean DB Canada, in its capacity as Canadian
administrative agent for the Lenders and the Revolving (Canadian) Facility
Facing Agent.

 

7

 

“Canadian
Benefit Plans” shall mean all employee benefit plans of any nature or kind
whatsoever (other than the Canadian Pension Plans) that are maintained or
contributed to by SSC Canada or any other Canadian Subsidiary.

 

“Canadian
Dollar Equivalent” shall mean, on any date of determination, with respect
to any amount in U.S. Dollars, the equivalent in Canadian Dollars of such
amount determined by the Administrative Agent using the Exchange Rate then in
effect.

 

“Canadian
Dollars” and “Cdn.$” shall mean lawful currency of Canada.

 

“Canadian
GAAP” shall mean generally accepted accounting principles in Canada, as
recommended from time to time by the Canadian Institute of Chartered
Accountants, applied on a consistent basis.

 

“Canadian
Guarantee Agreements” shall mean the Guarantee Agreement (Canadian) and
each of the other guarantee agreements executed and delivered by a Canadian
Subsidiary pursuant to Section 6.09.

 

“Canadian
Obligations” shall mean all Obligations of SSC Canada and the Canadian
Subsidiaries that are Guarantors.

 

“Canadian
Pension Plans” shall mean each plan that is considered to be a pension plan
for the purposes of the ITA or any applicable pension benefits standards
statute and/or regulation in Canada and that is established, maintained or
contributed to by SSC Canada or any other Canadian Subsidiary for its current
or former employees.

 

“Canadian
Prime Rate” shall mean, for each day in any period, a fluctuating interest
rate per annum as shall be in effect from time to time, which rate per annum
shall at all times for such day be equal to the higher of (a) the annual
rate of interest announced publicly by the Canadian Administrative Agent and in
effect as its prime rate at its principal office in Toronto, Ontario on such
day for determining interest rates on Canadian Dollar-denominated commercial
loans made in Canada and (b) 0.75% per annum above the CDOR Rate in effect
on such date.  Each change to the
Canadian Prime Rate shall be effective on the date such change is publicly
announced as being effective.

 

“Canadian
Security Agreements” shall mean the Security Agreement (Canadian) and the
Pledge Agreement (Canadian).

 

“Canadian
Subsidiaries” shall mean the Subsidiaries organized under the laws of
Canada or any province or other political subdivision thereof.

 

“Capital
Lease” is defined in the definition of the term “Capital Lease
Obligations”.

 

“Capital
Lease Obligations” of any Person shall mean the obligations of such Person
to pay rent or other amounts under any lease of (or other arrangement conveying
the right to use) real or personal property, or a combination thereof (each, a

 

8

 

“Capital Lease”), which obligations are required to be classified
and accounted for as capital leases on a balance sheet of such Person under
U.S. GAAP.  For the purposes of this
Agreement, the amount of such obligations at any time shall be the capitalized
amount thereof at such time, determined in accordance with U.S. GAAP.

 

“Cash
Proceeds” shall mean, with respect to any Asset Sale, cash, cash
equivalents or marketable securities received from such Asset Sale, including
any insurance or condemnation proceeds and proceeds received by way of deferred
payment pursuant to a note receivable or otherwise (other than the portion of
such deferred payment constituting interest, which shall be deemed not to
constitute Cash Proceeds).

 

“CDOR Rate”
shall mean, for each day in any period, the annual rate of interest that is the
rate based on an average rate applicable to Canadian Dollar bankers’
acceptances for a term equal to the term of the relevant Contract Period (or
for a term of one month for purposes of determining the Canadian Prime Rate)
appearing on the Reuters Screen CDOR Page at approximately 10:00 a.m.,
Standard Time, on such date, or if such date is not a Business Day, on the
immediately preceding Business Day, provided that if such rate does not
appear on the Reuters Screen CDOR Page on such date as contemplated, then the
CDOR Rate on such date shall be the arithmetic average of the Discount Rate
quoted by each Schedule I Reference Bank (determined by the Canadian
Administrative Agent as of 10:00 a.m., Standard Time, on such date) which
would be applicable to Canadian Dollar bankers’ acceptances quoted by the banks
listed in Schedule I of the Bank Act (Canada) as of 10:00 a.m.,
Standard Time, on such date or, if such date is not a Business Day, on the
immediately preceding Business Day.

 

“CERCLA”
is defined in Section 4.15(d).

 

A “Change
in Control” shall be deemed to have occurred if (a) a majority of the
seats (other than vacant seats) on the board of directors of SSCC shall at any
time be occupied by persons who were neither (i) nominated by the board of
directors of SSCC nor (ii) appointed by directors so nominated;
(b) any person or group (within the meaning of Rule 13d-5 of the
Securities and Exchange Act of 1934, as in effect on the date hereof) shall
own, directly or indirectly, beneficially or of record, shares representing
more than 35% of the aggregate ordinary voting power represented by the issued
and outstanding capital stock of SSCC; (c) SSCC shall cease to own,
directly or indirectly, beneficially and of record, 100% of the issued and
outstanding capital stock of SSCE; or (d) SSCE shall cease to own or
control, directly or indirectly, beneficially and of record, shares
representing 100% of the aggregate ordinary voting power represented by the
issued and outstanding capital stock of SSC Canada.

 

“Change of
Law” is defined in Section 2.19(f).

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Revolving
(Canadian) Loans, Tranche B Loans, Tranche C Loans, Deposit Funded
Loans, Other Term Loans or Swingline Loans and, when used in reference to any
Commitment, refers to whether such Commitment is a Revolving Credit Commitment,

 

9

 

Revolving (Canadian) Credit Commitment, Tranche B Commitment,
Tranche C Commitment, Deposit Funded Commitment, Incremental Term Loan
Commitment or the commitment of the Swingline Lender hereunder.

 

“Closing
Date” shall mean November 1, 2004.

 

“Cluster
Expenditures” shall mean capital expenditures that are mandated pursuant
to, or made to comply with,  any of 40 C.F.R. 63, Subpart MM, 40
C.F.R. 63, Subpart S, 40 C.F.R. Part 430 or 40 C.F.R. 63, Subpart DDDDD,
including any subsequent modifications or amendments thereto, and any further
rules promulgated from time to time by the U.S. Environmental Protection Agency
(or any successor governmental agency) with respect to “Effluent Limitations
Guidelines, Pretreatment Standards, and New Source Performance Standards: Pulp,
Paper, and Paperboard Category” and/or “National Emission Standards for
Hazardous Air Pollutants for Source Category: Pulp and Paper Production”.

 

“Code”
shall mean the Internal Revenue Code of 1986, or any successor statute thereto,
as the same may be amended from time to time.

 

“Collateral”
shall mean all the “Collateral” as defined in any Security Document and shall
also include the Mortgaged Properties.

 

“Collateral
Agent” shall mean DB, in its capacity as collateral agent for the Lenders
and the Facing Agents.

 

“Commitment”
shall mean, with respect to each Lender, such Lender’s Revolving Credit
Commitment, Revolving (Canadian) Credit Commitment, Tranche B Commitment,
Tranche C Commitment, Deposit Funded Commitment or Incremental Term Loan
Commitment.

 

“Commitment
Fees” is defined in Section 2.05(a).

 

“Confidential
Information Memorandum” shall mean the Confidential Information
Memorandum of SSCC dated September 2004.

 

“Consolidated
Capital Expenditures” shall mean, for any period, all amounts that
would be included as additions to property, plant and equipment and other
capital expenditures on a consolidated statement of cash flows for SSCC and its
Subsidiaries during such period in accordance with U.S. GAAP (excluding
capitalized interest but including the amount of assets leased under any
Capital Lease); provided, however, that in no event shall
Consolidated Capital Expenditures include (a) amounts expended (in
compliance with the provisions of any Mortgage, if applicable) in the
replacement, repair or reconstruction of any fixed or capital asset which was
destroyed, damaged or condemned, in whole or in part, to the extent insurance
or condemnation proceeds are receivable or have been received by SSCC or any
such Subsidiary in respect of such destruction, damage or condemnation,
(b) any capital expenditures substantially concurrently made or committed
to be made with the Net Cash Proceeds from any equity issuance by SSCC,
(c) any capital expenditures made with the Net Cash Proceeds of the

 

10

 

Pontiac Sale, (d) any Investments made pursuant to Section 7.04(l)
or (e) any Permitted Acquisitions.

 

“Consolidated
Current Assets” shall mean, as at any date of determination, the total
assets (other than cash and cash equivalents) of SSCC and its Subsidiaries on a
consolidated basis that may properly be classified as current assets in
conformity with U.S. GAAP.

 

“Consolidated
Current Liabilities” shall mean, as at any date of determination, the total
liabilities of SSCC and its Subsidiaries on a consolidated basis that may
properly be classified as current liabilities in conformity with U.S. GAAP, provided
that the current maturities of long-term Indebtedness for money borrowed of
SSCC and its Subsidiaries, any Indebtedness permitted under Section 7.01
that is classified as a current liability in conformity with U.S. GAAP and any
taxes payable solely as a result of Asset Sales shall be excluded from the
definition of Consolidated Current Liabilities.

 

“Consolidated
EBITDA” for any period shall mean Consolidated Net Income for such period, plus,
without duplication and to the extent deducted in determining such Consolidated
Net Income, (a) all Federal, state, local and foreign taxes,
(b) Consolidated Interest Expense, (c) depreciation, depletion,
amortization of intangibles and other non-cash charges or non-cash losses
deducted in determining such Consolidated Net Income, (d)  cash
restructuring and similar charges incurred during any of the fiscal years ended
December 31, 2004, 2005 and 2006 in an aggregate amount of up to
U.S.$10,000,000 for any such fiscal year, and (e) any fees and expenses
related to  Permitted Acquisitions, minus,
to the extent included in determining such Consolidated Net Income, any non-cash
income or non-cash gains.

 

“Consolidated
Interest Expense” shall mean, for any period, the interest expense (net of
interest income on Permitted Investments) of SSCC and its Subsidiaries for such
period determined on a consolidated basis in accordance with U.S. GAAP,
excluding any fees and expenses payable or amortized during such period by SSCC
and its consolidated Subsidiaries in connection with the amortization of
deferred debt issuance costs.  For
purposes of the foregoing, interest expense shall be determined after giving
effect to any net payments made or received by SSCC and its consolidated
Subsidiaries with respect to Swap Agreements, but excluding any gain or loss
recognized under U.S. GAAP that results from the mark-to-market valuation of any
Swap Agreement.

 

“Consolidated
Leverage Ratio” shall mean, on any date of determination, the ratio
obtained by dividing (a) Indebtedness of SSCC and its consolidated
Subsidiaries on such date by (b) Consolidated EBITDA for the period of
four consecutive fiscal quarters ending on or most recently prior to such
date.  In any period of four consecutive
fiscal quarters in which a Permitted Acquisition occurs, the Consolidated
Leverage Ratio shall be determined on a pro forma basis in accordance with Section 1.05.

 

11

 

“Consolidated
Net Income” shall mean, for any period, the net income (or loss) of SSCC
and its Subsidiaries on a consolidated basis for such period taken as a single
accounting period determined in conformity with U.S. GAAP, provided that
there shall be excluded from such calculation the net gains (or losses)
associated with the sale of any asset not in the ordinary course of business.

 

“Consolidated
Senior Secured Leverage Ratio” shall mean, on any date of determination,
the ratio obtained by dividing (a) Senior Secured Indebtedness of SSCC and its
consolidated Subsidiaries on such date by (b) Consolidated EBITDA for the
period of four consecutive fiscal quarters ending on or most recently prior to
such date.  In any period of four
consecutive fiscal quarters in which a Permitted Acquisition occurs, the
Consolidated Senior Secured Leverage Ratio shall be determined on a pro forma
basis in accordance with Section 1.05.

 

“Contract
Period” shall mean the term of a B/A Loan selected by SSC Canada in
accordance with Section 2.22, commencing on the date of such B/A
Loan and expiring on a Business Day which shall be either one, two, three or
six months thereafter, provided that (a) subject to clause (b) below,
each such period shall be subject to such extensions or reductions as may be
determined by the Canadian Administrative Agent to ensure that each Contract
Period shall expire on a Business Day, and (b) no Contract Period shall
extend beyond the Revolving Credit Maturity Date.

 

“Control”
of a Person shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.  “Controlling” and “Controlled”
shall have meanings correlative thereto.

 

“Credit
Event” is defined in Article V.

 

“Credit
Facility” shall mean a Class of Commitments and extensions of credit
thereunder.  For purposes of this
Agreement, each of the following comprises a separate Credit Facility:  (a) the Tranche B Loans,
(b) the Tranche C Loans, (c) the Revolving Commitments, the
Revolving Loans, the Swingline Loans and the Revolving Facility Letters of
Credit, (d) the Revolving (Canadian) Commitments, the Revolving (Canadian)
Loans and the Revolving (Canadian) Facility Letters of Credit, (e) the Deposit
Funded Commitments, the Deposit Funded Loans and the Deposit Funded Letters of
Credit and (f) the Incremental Term Loan Commitments and the Other Term
Loans.

 

“Credit
Transactions” is defined in Section 4.02.

 

“DB” is
defined in the preamble to this Agreement.

 

“DB Canada”
is defined in the preamble to this Agreement.

 

“Default”
shall mean any event or condition that upon notice, lapse of time or both would
constitute an Event of Default.

 

12

 

“Default
Rate” is defined in Section 2.07.

 

“Delivery
Agreements” shall mean each of the delivery agreements issued by SSC Canada
or such other applicable Canadian Subsidiary to the Collateral Agent pursuant
to which a Canadian Subsidiary delivers the Demand Debentures to the Collateral
Agent.

 

“Demand
Debentures” shall mean the demand debentures with respect to each Mortgaged
Property located in the Provinces of Ontario, Manitoba, Sasketchewan and
Alberta, or such other applicable Canadian Province (other than the Province of
Quebec) with respect to any After-Acquired Mortgage Property located in a
Canadian Province (other than the Province of Quebec) and required to be
granted as Collateral pursuant to Section 6.09, in the principal amount
of Cdn.$1,500,000,000, issued by SSC Canada or such other applicable Canadian
Subsidiary, and delivered to the Collateral Agent pursuant to the Delivery
Agreements.

 

“Deposit”
shall mean, with respect to each Deposit Funded Lender at any time, the amount
actually on deposit in the Deposit Account to the credit of such Lender’s
Sub-Account at such time.

 

“Deposit
Account” shall mean the account of the Deposit Account Agent established by
the Deposit Account Agent on or prior to the Closing Date under its sole and
exclusive control solely for the purpose of being used as the “Deposit Account”
hereunder.

 

“Deposit
Account Agent” shall mean JPMCB, in its capacity as the holder of the Deposit
Account.

 

“Deposit
Funded Commitment” shall mean, with respect to each Lender, the commitment
of such Lender to acquire participations in Deposit Funded Letters of Credit
and to make Deposit Funded Loans as set forth on Schedule 2.01 or in the
Assignment and Acceptance pursuant to which such Lender assumed its Deposit
Funded Commitment, as applicable, as the same may be (a) reduced from time to
time pursuant to Section 2.09, (b) increased from time to time pursuant
to an Incremental Deposit Funded Credit Assumption Agreement entered into by
such Lender and (c) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 11.04.  As of the Closing Date, the aggregate amount
of the Deposit Funded Commitments of the Deposit Funded Lenders is
U.S.$121,930,726.03.

 

“Deposit
Funded Commitment Fee” is defined in Section 2.05(c).

 

“Deposit
Funded Facility Facing Agent” shall mean JPMCB and each Lender that
replaces JPMCB as Deposit Funded Facility Agent pursuant to Section 3.10.

 

“Deposit
Funded LC Exposure” shall mean, at any time of determination, the sum of
(a) the aggregate undrawn amount of all outstanding Deposit Funded Letters of
Credit and (b) the aggregate amount that has been drawn under any Deposit
Funded Facility Letter of Credit and has not been reimbursed by SSCE or another
Loan Party at

 

13

 

such time.  The Deposit Funded LC
Exposure of any Deposit Funded Lender at any time shall equal its Applicable
Percentage of the aggregate Deposit Funded LC Exposure at such time.

 

“Deposit
Funded Lenders” shall mean the Lenders having (a) Deposit Funded
Commitments, (b) participations in outstanding Deposit Funded Letters of Credit
or LC Disbursements in respect thereof or (c) Deposit Funded Loans.

 

“Deposit
Funded Letters of Credit” shall mean (a) the letters of credit issued for
the account of SSCE by the Deposit Funded Facility Facing Agent pursuant to the
terms and conditions of Article III and (b) the Existing IRB Letters of
Credit.  Deposit Funded Letters of Credit
shall be denominated in U.S. Dollars.

 

“Deposit
Funded Loans” shall mean the loans deemed made by the Deposit Funded
Lenders to SSCE pursuant to Section 3.05(c) in respect of their
participations in LC Disbursements in respect of the Deposit Funded Letters of
Credit.

 

“Deposit
Funded Maturity Date” shall mean the sixth anniversary of the Closing Date.

 

“Deposit
Funded Utilization” shall mean, at any time of determination, the sum of
(a) the aggregate principal amount of Deposit Funded Loans outstanding at such
time and (b) the Deposit Funded LC Exposure at such time.

 

“Deposit
Return” is defined in Section 2.05(g).

 

“Designated
Obligations” shall mean all Obligations of the Loan Parties in respect of
(a) principal of and interest on the Loans (excluding Swingline Loans, but
including B/As, B/A Equivalent Loans and Acceptance Fees with respect thereto)
and (b) Fees for the account of the Lenders, whether or not the same shall
at the time of any determination be due and payable under the terms of the Loan
Documents.

 

“Discount
Proceeds” shall mean, for any B/A (or, as applicable, any B/A Equivalent
Loan), an amount (rounded to the nearest whole cent, and with one-half of one
cent being rounded upwards) calculated on the applicable date of the Revolving
(Canadian) Credit Borrowing of which such B/A or B/A Equivalent Loan is a part
or any rollover date for such Revolving (Canadian) Credit Borrowing by
multiplying:

 

(a) the face
amount of the B/A (or, as applicable, the B/A Equivalent Loan); by

 

(b) the
quotient of one divided by the sum of one plus the product of:

 

(i) the
Discount Rate (expressed as a decimal) applicable to such B/A (or as
applicable, such B/A Equivalent Loan), and

 

14

 

(ii) a
fraction, the numerator of which is the Contract Period of the B/A (or, as
applicable, the B/A Equivalent Loan) and the denominator of which is
365 days,

 

with such
quotient being rounded up or down to the fifth decimal place, and .000005 being
rounded up.

 

“Discount Rate” shall mean:

 

(a) with respect to any Revolving (Canadian) Lender that is a
Schedule I Bank, as applicable to a B/A being purchased by such Lender on
any day, the CDOR Rate; and

 

(b) with respect to any Revolving (Canadian) Lender that is not a
Schedule I Bank, as applicable to a B/A being purchased or a B/A
Equivalent Loan being made by such Lender on any day, the lesser of
(A) the CDOR Rate plus 10 basis points (0.10%), and
(B) the average (as determined by the Canadian Administrative Agent in
good faith) of the respective percentage discount rates (expressed to two
decimal places and rounded upward, if not in an increment of 1/100th of 1%, to
the nearest 0.01%) quoted by the Schedule II Reference Banks as the percentage
discount rates at which the Schedule II Reference Banks would, in
accordance with their normal market practices, at or about 10:00 a.m.,
Standard Time, on such date, be prepared to purchase bankers’ acceptances
accepted by the Schedule II Reference Banks having a face amount and term
comparable to the face amount and term of such B/A or B/A Equivalent Loan.

 

“Domestic
Subsidiary” shall mean any Subsidiary organized under the laws of the
United States or any political subdivision thereof.

 

“Environmental
Laws” shall mean all current and future federal, state, provincial, local
and foreign laws, rules or regulations, codes, ordinances, orders, decrees,
judgments or injunctions issued, promulgated, approved or entered thereunder or
other requirements of Governmental Authorities or the common law, relating to
health, safety, or pollution or protection of the environment, including laws
relating to emissions, discharges, releases or threatened releases of, or
exposure to, pollutants, contaminants, chemicals or industrial, toxic or
hazardous substances, or wastes into the environment (including ambient air,
surface water, groundwater, land surface or subsurface strata) or otherwise
relating to the manufacture, processing, distribution, use, generation, treatment,
storage, disposal, transport or handling of pollutants, contaminants,
chemicals, or industrial, toxic or hazardous substances, or wastes, or
underground storage tanks and emissions or releases therefrom.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, or any
successor statute, as the same may be amended from time to time.

 

“ERISA
Affiliate” shall mean any trade or business (whether or not incorporated)
that (a) is a member of a group of which SSCC or either Borrower is a
member and (b) is treated as a single employer under Section 414 of
the Code.

 

15

 

“ERISA
Event” shall mean (a) any “reportable event”, as defined in
Section 4043 of ERISA or the regulations issued thereunder with respect to
a Plan (other than an event for which the 30-day notice period is
waived); (b) the existence with respect to any Plan of an “accumulated
funding deficiency” (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant
to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by SSCC or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any
Plan; (e) the receipt by SSCC or any ERISA Affiliate from the PBGC or a
plan administrator of any notice relating to an intention to terminate any Plan
or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by
SSCC or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan;
(g) the receipt by SSCC or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from SSCC or any ERISA Affiliate of any
notice, concerning the imposition of Withdrawal Liability or a determination
that a Multiemployer Plan is, or is expected to be, insolvent or in
reorganization, within the meaning of Title IV of ERISA; or (h) a
Governmental Authority gives notice of its intention to terminate, in whole or
in part, a Canadian Pension Plan, or to appoint an administrator of a Canadian
Pension Plan, or SSC Canada or any of its Subsidiaries declares or gives notice
of intention to declare a wind up of a Canadian Pension Plan, in whole or in
part, or any of the Canadian Pension Plans individually or in the aggregate
have an unfunded actuarial liability or solvency deficiency (within the meaning
of the Quebec Supplemental Pension Plans Act and other applicable laws) that
could reasonably be expected to have a Material Adverse Effect.

 

“Eurodollar”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate
determined by reference to the Adjusted LIBO Rate.

 

“Event of
Default” is defined in Article VIII.

 

“Excess
Cash Flow” shall mean, for any period, (a) the sum, without
duplication, of (i) Consolidated Net Income during such period, (ii) the
amount of depreciation, depletion, amortization of intangibles, deferred taxes,
accreted and zero coupon bond interest and other non-cash expenses, losses or
other charges that, pursuant to U.S. GAAP, were deducted in determining such
Consolidated Net Income, (iii) the proceeds of any Capital Leases of SSCC
and its Subsidiaries on a consolidated basis, (iv) reductions, other than
reductions attributable solely to Asset Sales, to working capital for such
period (i.e., the decrease in Consolidated Current Assets minus
Consolidated Current Liabilities from the beginning to the end of such period)
and (v) Indebtedness of SSCC and its consolidated Subsidiaries created,
incurred or assumed in respect of the purchase or construction of property minus
(b) the sum, without duplication, of (i) the amount of all non-cash
gains, income or other credits included in determining Consolidated Net Income,
(ii) additions to working capital for such period (i.e., the
increase in Consolidated Current Assets minus Consolidated Current
Liabilities from the beginning to the end of such period), (iii) the Term
Loan Repayment Amounts paid during such period, (iv) optional prepayments
of Term Loans described in

 

16

 

Section 2.12(b) made during such period,
(v) scheduled and optional payments or prepayments of the principal amount
of permitted Indebtedness other than the Loans, but only to the extent
that such payments or prepayments cannot by their terms be reborrowed or redrawn
and do not occur in connection with a refinancing of all or any portion of such
permitted Indebtedness and are otherwise permitted hereby,
(vi) Consolidated Capital Expenditures for such period and the aggregate
cash consideration paid by SSCC and the Subsidiaries during such period on
account of Permitted Acquisitions (except to the extent such Consolidated
Capital Expenditures or Permitted Acquisitions are financed with the Net Cash
Proceeds from an Asset Sale or an issuance of Indebtedness or equity securities)
and (vii) Restricted Payments not prohibited hereunder made during such
period; provided, however, that none of the following shall be
included in a determination of Excess Cash Flow: (x) amounts expended for
any Investment permitted under Section 7.04 and any proceeds from
the subsequent sale or other disposition of any such Investment, (y) the
proceeds of any issuance of debt or equity securities not otherwise prohibited
hereunder and (z) the proceeds from the sale of assets of SSCC or any
Subsidiary to the extent such proceeds would be required (before giving effect
to any waiver) to mandatorily prepay any permitted Indebtedness (including the
Loans).

 

“Exchange
Rate” shall mean, on any day, (a) for purposes of determining the U.S.
Dollar Equivalent, the rate at which Canadian Dollars may be exchanged into
U.S. Dollars and (b) for purposes of determining the Canadian Dollar
Equivalent, the rate at which U.S. Dollars may be exchanged into Canadian
Dollars, in each case as set forth on the Reuters World Currency Page for
Canadian Dollars (or, if not so quoted, the spot rate of exchange quoted for
wholesale transactions made by the Canadian Administrative Agent in Toronto,
Ontario) at 12:00 noon, Standard Time, on such day; provided, that
if at the time of any such determination, for any reason, no such spot rate is
being quoted, the Canadian Administrative Agent may use any reasonable method
it deems applicable to determine such rate, and such determination shall be
conclusive absent manifest error.

 

“Excluded
Subsidiaries” shall mean, collectively, JSC Timber Finance Inc., a Delaware
corporation, Timber Capital Holdings LLC, a Delaware limited liability company,
and Timber Note Holdings LLC, a Delaware limited liability company.

 

“Existing
Credit Agreements” shall mean the Existing Stone Credit Agreement and the
Existing JSCUS Credit Agreement.

 

“Existing
IRB Letters of Credit” shall mean the letters of credit issued for the
account of JSCUS under the Existing JSCUS Credit Agreement in support of
JSCUS’s obligations in respect of the Stevenson IRBs and that are outstanding
on the Closing Date and identified as “Existing IRB Letters of Credit” on Schedule 1.01(a).

 

“Existing
JSCUS Credit Agreement” shall mean the Third Amended and Restated Credit
Agreement dated as of September 26, 2002, among JSCUS, SSCC, JSCE, Inc., the
lenders party thereto, JPMCB and DB.

 

17

 

“Existing
Letters of Credit” shall mean the Existing SSC Canada Letters of Credit and
the Existing SSCE Letters of Credit.

 

“Existing
SMBI Receivables Purchase Agreement” shall mean the Receivables Purchase
Agreement dated as of March 30, 2004, between MBI, in its capacity as general
partner of SMBI and as initial servicer, Computershare Trust Company of Canada,
in its capacity as trustee of King Street Funding Trust, and Scotia Capital
Inc.

 

“Existing
SMBI Receivables Program” shall mean the trade receivables securitization
program conducted by SMBI pursuant to the Existing SMBI Receivables Purchase
Agreement and the related Receivables Program Documents.

 

“Existing
SSC Canada Letters of Credit” shall mean the letters of credit issued for
the account of SSC Canada under the Existing Stone Credit Agreement that are
outstanding on the Closing Date and identified as “Existing SSC Canada Letters
of Credit” on Schedule 1.01(a).

 

“Existing
SSCE Letters of Credit” shall mean the letters of credit issued for the
account of Stone under the Existing Credit Agreements that are outstanding on
the Closing Date and identified as “Existing SSCE Letters of Credit” on Schedule 1.01(a),
including the Existing IRB Letters of Credit.

 

“Existing
Stone Credit Agreement” shall mean the Amended and Restated Credit
Agreement dated as of July 25, 2002, as amended, among Stone, SSC Canada, the
lenders party thereto, JPMCB, DB and DB Canada.

 

“Facing
Agents” shall mean the Revolving Facility Facing Agent, the Revolving
(Canadian) Facility Facing Agent and the Deposit Funded Facility Facing Agent.

 

“Federal
Funds Effective Rate” shall mean, for any day, the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York or, if such
rate is not so published for any day that is a Business Day, the average of the
quotations for the day of such transactions received by the Administrative
Agent from three Federal funds brokers of recognized standing selected by it.

 

“Fees”
shall mean the fees described in Section 2.05.

 

“Financial
Officer” of any Person shall mean the chief financial officer, principal
accounting officer, treasurer, controller or assistant treasurer of such
Person.

 

“FinSub”
shall mean any special purpose bankruptcy-remote entity that is a wholly owned
Subsidiary formed solely for the purpose of purchasing receivables pursuant to
the Receivables Program, including Jefferson Smurfit Finance Corporation, a

 

18

 

Delaware corporation, Stone Receivables Corporation, a Delaware
corporation, and SSCE Funding, LLC, a Delaware limited liability company.

 

“Foreign
Subsidiary” shall mean PUI and any Subsidiary that is not a Domestic
Subsidiary.

 

“Francobec
Company Bond Pledge Agreement” shall mean the bond pledge agreement dated
as of the Closing Date, entered into between Francobec Company and the
Collateral Agent, providing the terms pursuant to which the Francobec Company
Bonds are to be held by the Collateral Agent, in its capacity as collateral
agent and depositary of the Francobec Company Bonds for the benefit of the
beneficiaries named therein.

 

“Francobec
Company Bonds” shall mean any or all of the bonds issued from time to time
by Francobec Company pursuant to the Francobec Company Hypothec.

 

“Francobec
Company Hypothec” shall mean the Indenture and Deed of Hypothec and Issue
of Bonds executed on October 24, 2004, and entered into between Francobec
Company and the Trustee, pursuant to the terms of which Francobec Company has
created, issued and secured Francobec Company Bonds in the maximum aggregate
amount of Cdn.$1,500,000,000.

 

“Governmental
Authority” shall mean any Federal, state, provincial, regional, local or
foreign court or governmental agency, authority, instrumentality or regulatory
body.

 

“Guarantee”
of or by any Person shall mean any obligation, contingent or otherwise (whether
or not denominated as a guarantee), of such Person guaranteeing any
Indebtedness of any other Person (the “primary obligor”) in any manner,
whether directly or indirectly, and including any obligation of such Person,
direct or indirect, (a) to purchase or pay (or advance or supply funds for
the purchase or payment of) such Indebtedness or to purchase (or to advance or
supply funds for the purchase of) any security for the payment of such
Indebtedness, (b) to purchase property, securities or services for the
purpose of assuring the owner of such Indebtedness of the payment of such
Indebtedness or (c) to maintain working capital, equity capital or other
financial statement condition or liquidity of the primary obligor so as to
enable the primary obligor to pay such Indebtedness; provided, however,
that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business. 
The amount of any Guarantee at any time shall be deemed to be an amount
equal to the lesser at such time of (x) the stated or determinable amount
of the primary obligation in respect of which such Guarantee is made or
(y) the maximum amount for which such Person may be liable pursuant to the
terms of the instrument embodying such Guarantee (or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof).

 

“Guarantee
Agreement (Canadian)” shall mean the Guarantee Agreement (Canadian),
substantially in the form of Exhibit C, among the Canadian Subsidiaries

 

19

 

party thereto and the Collateral Agent, for the benefit of the secured
parties named therein.

 

“Guarantee
Agreement (Maryland)” shall mean the Guarantee Agreement (Maryland), in
form and substance reasonably satisfactory to the Collateral Agent, among the
Loan Parties party thereto and the Collateral Agent, for the benefit of the
secured parties named therein.

 

“Guarantee
Agreements” shall mean the Guarantee and Collateral Agreement (U.S.), the
Guarantee Agreement (Maryland) and the Canadian Guarantee Agreements.

 

“Guarantee
and Collateral Agreement (U.S.)” shall mean the Guarantee and Collateral
Agreement (U.S.), substantially in the form of Exhibit D, among SSCC,
the Domestic Subsidiaries party thereto and the Collateral Agent, for the
benefit of the secured parties named therein.

 

“Guarantors”
shall mean (a) SSCC and (b) each Subsidiary that guarantees the Applicable
Obligations pursuant to a Guarantee Agreement.

 

“Hazardous
Materials” is defined in Section 4.15(d).

 

“Hypothecs”
shall mean (a) each of the SSC Canada Hypothec, the Francobec Company
Hypothec, the MBI Hypothec and the SMBI Hypothec and (b) any other such
agreement entered into thereafter by a Canadian Subsidiary and the Trustee.

 

“Inactive
Subsidiary” shall mean, at any time, any Subsidiary that (a) has
assets at such time with a total market value not in excess of U.S.$100,000 and
(b) has not conducted any business or other operations during the prior 12-month
period.

 

“Incremental
Commitment” shall mean an Incremental Term Loan Commitment, Incremental
Revolving Credit Commitment, Incremental Revolving (Canadian) Credit Commitment
or Incremental Deposit Funded Commitment.

 

“Incremental
Commitment Amount” shall mean, at any time, the excess, if any, of (a)
U.S.$400,000,000 over (b) the sum of (i) the aggregate amount of all
Incremental Term Loan Commitments established prior to such time, (ii) the
aggregate amount of all Incremental Revolving Credit Commitments established
prior to such time, (iii) the aggregate amount of all Incremental Revolving
(Canadian) Credit Commitments established prior to such time and (iv) the
aggregate amount of all Incremental Deposit Funded Commitments established
prior to such time.

 

“Incremental
Credit Assumption Agreement” shall mean an Incremental Term Loan Assumption
Agreement, Incremental Revolving Credit Assumption Agreement or Incremental
Deposit Funded Credit Assumption Agreement.

 

“Incremental Deposit Funded Commitment”
shall mean the commitment of any Lender, established pursuant to Section
2.23, to acquire participations in Deposit

 

20

 

Funded Letters of Credit and to make Deposit Funded Loans as set forth
in the Incremental Deposit Funded Credit Assumption Agreement pursuant to which
such Lender acquired its Incremental Deposit Funded Commitment.

 

“Incremental Deposit Funded Credit Assumption
Agreement” shall mean an Incremental Deposit Funded Credit
Assumption Agreement, in form and substance reasonably satisfactory to the
Senior Agents, among SSCE, the Administrative Agent, the Deposit Account Agent
and one or more Incremental Deposit Funded Lenders.

 

“Incremental
Deposit Funded Lender” shall mean a Lender with an Incremental Deposit
Funded Commitment.

 

“Incremental
Lender” shall mean a Lender with an Incremental Commitment.

 

“Incremental
Loans” shall mean loans made by one or more Lenders to either Borrower
pursuant to Section 2.01(a)(iii).

 

“Incremental Revolving (Canadian) Credit
Commitment” shall mean the commitment of any Lender, established
pursuant to Section 2.23, to make Revolving (Canadian) Loans to the
Borrowers and to acquire participations in Revolving (Canadian) Facility
Letters of Credit.

 

“Incremental Revolving (Canadian) Lender”
shall mean a Lender with an Incremental Revolving (Canadian) Credit Commitment
and which, prior to any CAM Exchange and except as otherwise provided in this
Agreement, shall not be a non-resident of Canada or shall be deemed to be a
resident in Canada for purposes of Part XIII of the ITA in respect of such
Commitment.

 

“Incremental Revolving Credit Assumption
Agreement” shall mean an Incremental Revolving Credit Assumption
Agreement, in form and substance reasonably satisfactory to the Senior Agents,
among the relevant Borrower, the Administrative Agent, the Canadian Administrative
Agent (if applicable) and one or more Incremental Revolving Lenders or
Incremental Revolving (Canadian) Lenders, as applicable.

 

“Incremental Revolving Credit Commitment”
shall mean the commitment of any Lender, established pursuant to Section
2.23, to make Revolving Loans to SSCE and to acquire participations in
Revolving Facility Letters of Credit and in Swingline Loans.

 

“Incremental Revolving Lender”
shall mean a Lender with an Incremental Revolving Credit Commitment.

 

“Incremental
Term Lender” shall mean a Lender with an Incremental Term Loan Commitment
or an outstanding Incremental Term Loan.

 

“Incremental
Term Loan Assumption Agreement” shall mean an Incremental Term Loan
Assumption Agreement, in form and substance reasonably

 

21

 

satisfactory to the Senior Agents, among the relevant Borrower, the
Administrative Agent, the Canadian Administrative Agent (if applicable) and one
or more Incremental Term Lenders.

 

“Incremental
Term Loan Commitment” shall mean the commitment of any Lender, established
pursuant to Section 2.23, to make Incremental Term Loans to either
Borrower.

 

“Incremental
Term Loan Maturity Date” shall mean the final maturity date of any
Incremental Term Loan, as set forth in the applicable Incremental Term Loan
Assumption Agreement.

 

“Incremental
Term Loan Repayment Amount” is defined in Section 2.11(c).

 

“Incremental
Term Loan Repayment Dates” shall mean the dates scheduled for the repayment
of principal of any Incremental Term Loan, as set forth in the applicable
Incremental Term Loan Assumption Agreement.

 

“Incremental
Term Loans” shall mean term loans made by one or more Lenders to either
Borrower pursuant to Section 2.01(a)(iii).  Incremental Term Loans may be made in the form
of additional Tranche B Loans, additional Tranche C Loans or, to the
extent permitted by Section 2.23 and provided for in the relevant
Incremental Term Loan Assumption Agreement, Other Term Loans.

 

“Indebtedness”
of any Person shall mean, without duplication, (a) all obligations of such
Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments, (c) all obligations of
such Person under conditional sale or other title retention agreements relating
to assets purchased by such Person, (d) all obligations of such Person
issued or assumed as the deferred purchase price of property or services
(excluding (i) trade accounts payable and accrued expenses arising in the
ordinary course of business and (ii) any contingent earnout or other
contingent payment obligation incurred in connection with an acquisition
permitted hereunder (but only to the extent that such obligation has not become
fixed)), (e) all Indebtedness of others secured by (or for which the
holder of such Indebtedness has an existing right, contingent or otherwise, to
be secured by) any Lien on property owned or acquired by such Person, whether
or not the obligations secured thereby have been assumed by such Person (and in
the event such Person has not assumed or otherwise become liable for payment of
such obligation, the amount of Indebtedness under this clause (e) shall
be the lesser of the amount of such obligation and the fair market value of
such property), (f) all Guarantees by such Person, (g) all Capital
Lease Obligations of such Person, (h) all net obligations of such Person
in respect of Swap Agreements (such net obligations to be equal at any time to
the termination value of such Agreements or other arrangements that would be
payable by or to such Person at such time) and (i) all obligations of such
Person as an account party to reimburse any bank or any other Person in respect
of letters of credit.  The Indebtedness
of any Person shall include the Indebtedness of any partnership in which such
Person is a general partner, except to the

 

22

 

extent such Indebtedness is expressly non-recourse to such Person.  For purposes of this Agreement,
(x) Indebtedness of a FinSub or otherwise incurred to finance the purchase
of Program Receivables pursuant to the Receivables Program and
(y) Securitization Trust Investment shall constitute secured Indebtedness
of SSCC and its Subsidiaries regardless of whether such Indebtedness or the
Securitization Trust Investment is required to be reflected as Indebtedness on
a consolidated balance sheet of SSCC and its Subsidiaries in accordance with
U.S. GAAP.

 

“Indemnitee”
is defined in Section 11.05(b).

 

“Information”
is defined in Section 11.15(a).

 

“Insolvency
Law” shall mean, to the extent applicable, (a) Title 11 of the
United States Code, (b) the Bankruptcy and Insolvency Act (Canada),
(c) the Companies’ Creditors Arrangement Act (Canada) and (d) any
similar Federal, provincial, state, local or foreign bankruptcy or insolvency
law, in each case as now constituted or hereafter amended or enacted.

 

“Interest
Coverage Ratio” shall mean, for any period, the ratio of
(a) Consolidated EBITDA for such period to (b) Consolidated Interest
Expense for such period.

 

“Interest
Payment Date” shall mean (a) with respect to any Loan, the last day of
the Interest Period applicable to the Borrowing of which such Loan is a part
and (b) with respect to any Eurodollar Borrowing with an Interest Period
of more than three months’ duration, each day that would have been an Interest
Payment Date had successive Interest Periods of three months’ duration been
applicable to such Borrowing.

 

“Interest
Period” shall mean (a) as to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing or on the last day of the immediately
preceding Interest Period applicable to such Borrowing, as the case may be, and
ending on the numerically corresponding day (or, if there is no numerically
corresponding day, on the last day) in the calendar month that is 1, 2, 3 or 6
months thereafter (or, if consented to by all affected Lenders, 9 or 12 months
thereafter), or such period of time shorter than 1 month as may be agreed to by
the Administrative Agent, in each case, as the Borrower thereof may elect and
(b) as to any ABR Borrowing (including a Swingline Loan) or Canadian Prime
Rate Borrowing, the period commencing on the date of such Borrowing or on the
last day of the immediately preceding Interest Period applicable to such Borrowing,
as the case may be, and ending on the earlier of (i) the next succeeding
April 1, July 1, October 1 or January 2 and (ii) the Term Loan Maturity
Date, the Revolving Credit Maturity Date, the Deposit Funded Maturity Date or
an Incremental Term Loan Maturity Date, as applicable; provided, however,
that, if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless,
in the case of a Eurodollar Borrowing only, such next succeeding Business Day
would fall in the next calendar month, in which case such Interest Period shall
end on the next preceding Business Day. 
Interest shall accrue

 

23

 

from and including the first day of an Interest Period to but excluding
the last day of such Interest Period.

 

“Investment”
shall mean, as applied to any Person (the “investor”), any direct or
indirect purchase or other acquisition by the investor of, or a beneficial
interest in, stock or other securities of any other Person, including any
exchange of equity securities for Indebtedness, or any direct or indirect loan,
advance (other than advances to employees for moving and travel expenses,
drawing accounts and similar expenditures in the ordinary course of business)
or capital contribution by the investor to any other Person, including all
Indebtedness and accounts receivable owing to the investor from such other
Person that did not arise from sales or services rendered to such other Person
in the ordinary course of the investor’s business.  Except for any Investment described in the
immediately succeeding sentence, the amount of any Investment shall be the
original cost of such Investment plus the cost of all additions thereto,
without any adjustments for increases or decreases in value, or write-ups,
write-downs or write-offs with respect to such Investment minus any
amounts (a) realized upon the disposition of assets comprising an
Investment (including the value of any liabilities assumed by any Person other
than SSCC or any Subsidiary in connection with such disposition),
(b) constituting repayments of Investments that are loans or advances or
(c) constituting cash returns of principal or capital thereon (including
any dividend, redemption or repurchase of equity that is accounted for, in
accordance with U.S. GAAP, as a return of principal or capital).  For purposes of this Agreement, the
redemption, purchase or other acquisition for value by any Subsidiary of any
shares of its capital stock from a Person other than SSCC or any other
Subsidiary shall be deemed to be an “Investment” by such Subsidiary in its
shares of capital stock.

 

“IP
Security Agreements” is defined in the Guarantee and Collateral Agreement
(U.S.).

 

“ITA”
shall mean the Income Tax Act (Canada), as amended, and any successor thereto,
and any regulations promulgated thereunder.

 

“JPMCB”
is defined in the preamble to this Agreement.

 

“JSCUS”
shall mean Jefferson Smurfit Corporation (U.S.), a Delaware corporation that
was merged with and into Stone pursuant to the Merger Agreement.

 

“LC
Disbursement” shall mean any payment or disbursement made by the applicable
Facing Agent under or pursuant to a Letter of Credit.

 

“LC
Exposure” shall mean, at any time of determination, the sum of (a) the
Revolving Facility LC Exposure, (b) the Revolving (Canadian) Facility LC
Exposure and (c) the Deposit Funded Facility LC Exposure at such time.

 

“LC Reserve
Account” is defined in Section 10.02(a).

 

“Lenders”
shall mean the Persons listed on Schedule 2.01 (and their
respective successors, which shall include any entity resulting from a merger
or

 

24

 

consolidation) and any other Person that shall have become a party
hereto pursuant to an Assignment and Acceptance or an Incremental Credit
Assumption Agreement, other than any such Person that ceases to be a party
hereto pursuant to an Assignment and Acceptance.  Unless the context clearly indicates
otherwise, the term “Lenders” shall include the Swingline Lender.

 

“Letters of
Credit” shall mean the Revolving Facility Letters of Credit, the Revolving
(Canadian) Facility Letters of Credit and the Deposit Funded Letters of Credit.

 

“Letter of
Credit Request” shall mean (a) in the case of a request for issuance of a
Revolving Facility Letter of Credit, a properly completed notice in the form of
Exhibit E, (b) in the case of a request for issuance of a Revolving
(Canadian) Facility Letter of Credit, a properly completed notice in the form
of Exhibit F, and (c) in the case of a request for issuance of a Deposit
Funded Facility Letter of Credit, a properly completed notice in the form of Exhibit
G.

 

“LIBO Rate”
shall mean, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Dow Jones Service (or on any successor
or substitute page of such service, or any successor to or substitute for such
service, providing rate quotations comparable to those currently provided on
such page of such service, as determined by the Administrative Agent from time
to time for purposes of providing quotations of interest rates applicable to
U.S. Dollar deposits in the London interbank market) at approximately 10:00
a.m., New York time, two Business Days prior to the commencement of such Interest
Period, as the rate for U.S. Dollar deposits with a maturity comparable to such
Interest Period.  In the event that such
rate is not available at such time for any reason, then the “LIBO Rate”
with respect to such Eurodollar Borrowing for such Interest Period shall be the
rate per annum at which U.S. Dollar deposits of U.S.$5,000,000 and for a
maturity comparable to such Interest Period are offered by the principal London
office of the Administrative Agent in immediately available funds in the London
interbank market at approximately 3:00 p.m., London time, two Business
Days prior to the commencement of such Interest Period.

 

“Lien”
shall mean, with respect to any asset, (a) any mortgage, deed of trust,
lien, pledge, assignment for security, hypothecation, prior claim (within the
meaning of the Civil Code of Quebec), encumbrance, charge or security interest
in or on such asset, and (b) the interest of a vendor or a lessor under
any conditional sale agreement, Capital Lease or title retention agreement relating
to such asset.

 

“Loan
Documents” shall mean this Agreement, the Letters of Credit, the Security
Documents, the Guarantee Agreements, the Bankers’ Acceptances and the
Incremental Credit Assumption Agreements.

 

“Loan
Documents Obligations” shall mean Obligations of the type described in
clauses (a) and (b) of the term “Obligations”.

 

“Loan
Parties” shall mean the Borrowers and the Guarantors.

 

25

 

“Loans”
shall mean the Revolving Loans, the Revolving (Canadian) Loans, the Term Loans,
the Swingline Loans and the Deposit Funded Loans.

 

“Margin
Stock” shall have the meaning given such term under Regulation U.

 

“Material
Adverse Effect” shall mean (a) a materially adverse effect on the
business, operations, properties or financial condition of SSCC and its
Subsidiaries, taken as a whole, or (b) material impairment of the rights
of or benefits available to the Agents, the Facing Agents or the Lenders under
any Loan Document.

 

“Material
Contract” shall mean any contract to which SSCC or any of the Subsidiaries
is or becomes a party that provides for payments by or to SSCC or any of the
Subsidiaries in excess of U.S.$50,000,000 per year and that has a term in
excess of twelve months.

 

“Material
Subsidiary” shall mean each Subsidiary now existing or hereafter acquired
or formed and each successor thereto that (a) for the most recent fiscal
year of SSCC accounted for more than 5% of the consolidated revenues of SSCC,
(b) as at the end of such fiscal year, was the owner of more than 5% of
the consolidated assets of SSCC as shown on the consolidated financial
statements of SSCC for such fiscal year or (c) is irrevocably designated
as a Material Subsidiary in a writing by a Loan Party to the Administrative
Agent.  Schedule 1.01(b) sets
forth each Subsidiary that is a Material Subsidiary on and as of the Closing
Date.

 

“MBI”
shall mean MBI Limited/Limitée, a corporation continued under the laws of the
Province of New Brunswick, Canada.

 

“MBI Bond
Pledge Agreement” shall mean the bond pledge agreement dated as of the
Closing Date, entered into between MBI and the Collateral Agent, providing the
terms pursuant to which the MBI Bonds are to be held by the Collateral Agent,
in its capacity as collateral agent and depositary of the MBI Bonds for the
benefit of the beneficiaries named therein.

 

“MBI Bonds”
shall mean any or all of the bonds issued from time to time by MBI pursuant to
the MBI Hypothec.

 

“MBI
Hypothec” shall mean the Indenture and Deed of Hypothec and Issue of Bonds
executed on October 24, 2004, and entered into between MBI and the
Trustee, pursuant to the terms of which MBI has created, issued and secured
MBI  Bonds in the maximum aggregate
amount of Cdn.$1,500,000,000.

 

“Merger
Agreement” shall mean the Agreement of Merger dated November 1, 2004,
between JSCUS and Stone.

 

“Merger”
shall mean the merger of JSCUS with and into Stone pursuant to the terms of the
Merger Agreement.

 

26

 

“Merger
Transactions” is defined in Section 4.02.

 

“Mortgaged
Properties” shall mean, as of the Closing Date, each parcel (or adjoining
parcels) of real property (including any real property fixtures thereon) owned
by a Loan Party and specified on Schedule 1.01(c), and shall include
each After-Acquired Mortgage Property with respect to which a Mortgage is
granted pursuant to Section 6.09.

 

“Mortgages”
shall mean (a) the mortgages, deeds of trust, Hypothecs, assignments of
leases and rents, modifications and other security documents that are listed on
Schedule 1.01(d) or delivered pursuant to Section 6.09,
(b) the Demand Debentures and (c) the Delivery Agreements.  Each Mortgage shall be substantially in the
form of Exhibit H, or otherwise in form and substance reasonably
satisfactory to the Senior Agents.

 

“Multiemployer
Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3)
of ERISA to which SSCC or any ERISA Affiliate (other than one considered an
ERISA Affiliate only pursuant to subsection (m) or (o) of Section 414
of the Code) is making or accruing an obligation to make contributions, or has
within any of the preceding five plan years made or accrued an obligation to
make contributions.

 

“Net Cash
Proceeds” shall mean (a) with respect to any Asset Sale, the Cash
Proceeds therefrom, net of (i) costs of sale (including payment of the
outstanding principal amount of, premium or penalty, if any, and interest on
any Indebtedness (other than Loans) required to be repaid under the terms
thereof as a result of such Asset Sale), (ii) taxes paid or reasonably
estimated to be payable in the year such Asset Sale occurs or in the following
year as a result thereof and (iii) amounts provided as a reserve, in
accordance with U.S. GAAP, against any liabilities under any indemnification obligations
and any purchase price adjustments associated with such Asset Sale (provided
that, to the extent and at the time any such amounts are released from such
reserve, such amounts shall constitute Net Cash Proceeds); and (b) with
respect to any issuance of debt or equity securities, the cash proceeds
thereof, net of underwriting commissions or placement fees and expenses
directly incurred in connection therewith.

 

“Non-U.S.
Person” is defined in Section 2.19(f).

 

“Obligations”
shall mean (a) the due and punctual payment by each Borrower of (i) the
principal of and interest (including interest accruing during the pendency of
any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Loans
made to such Borrower, when and as due, whether at maturity, by acceleration,
upon one or more dates set for prepayment or otherwise, (ii) each payment
required to be made by such Borrower in respect of any Letter of Credit, when
and as due, including payments in respect of reimbursement of LC Disbursements,
interest thereon (including interest accruing during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) and obligations to provide
cash collateral, and (iii) all other monetary obligations of such Borrower
to any of the Agents, the Facing Agents and the Lenders under this Agreement

 

27

 

and each of the other Loan Documents, including obligations to pay
Fees, expense reimbursement obligations and indemnification obligations,
whether primary, secondary, direct, contingent, fixed or otherwise, arising
under the Loan Documents (including monetary obligations incurred during the
pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding),
(b) the due and punctual payment of all the monetary obligations of each
other Loan Party under or pursuant to this Agreement and each of the other Loan
Documents, (c) the due and punctual payment of all monetary obligations of
each Loan Party under each Swap Agreement that (i) is in effect on the
Closing Date with a counterparty that is a Lender or an Affiliate of a Lender
as of the Closing Date or (ii) is entered into after the Closing Date with
any counterparty that is a Lender or an Affiliate of a Lender at the time such
agreement is entered into and (d) the due and punctual payment and performance
of all obligations of each Loan Party to a Lender or an Affiliate of a Lender
in respect of cash management services (other than cash management services
provided after (i) the principal of and interest on each Loan and all Fees
payable hereunder have been paid in full, (ii) the Lenders have no further
commitment to lend hereunder, (iii) the LC Exposure has been reduced to
zero and (iv) no Facing Agent has any further obligation to issue Letters
of Credit), including obligations in respect of overdrafts, temporary advances,
interest and fees.

 

“Operations
Support Agreement” shall mean the Support Agreement, dated as of
March 30, 2004, between Stone and Computershare Trust Company of Canada,
as trustee of King Street Funding Trust.

 

“Other
Taxes” is defined in Section 2.19(b).

 

“Other Term
Loans” is defined in Section 2.23(a).

 

“Participating
Subsidiary” shall mean any Subsidiary that participates or is permitted to
participate in the Receivables Program pursuant to the Receivable Program
Documents, including SMBI.

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA or any successor thereto.

 

“Permitted
Acquisition” is defined in Section 7.05(f).

 

“Permitted
Equipment Financing” shall mean any financing transaction by SSCC or any
Subsidiary secured by equipment, or a Sale/Leaseback Transaction in which the
subject property consists of equipment, in each case owned by such Person for
more than 90 days immediately prior to such financing transaction or Sale/Leaseback
Transaction, so long as such financing transaction or Sale/Leaseback
Transaction (a) does not have a final maturity or final payment date in
respect thereof on or prior to the later of the Term Loan Maturity Date or the
Incremental Term Loan Maturity Date (if any), or a weighted average life to
maturity shorter than the weighted average life to maturity of the Term Loans,
(b) results in Net Cash Proceeds to any Loan Party in excess of 60% of the
fair market value (determined, as of the date of such financing transaction or

 

28

 

Sale/Leaseback Transaction, on the basis of an assumed arms-length
sale of such property, by a nationally recognized appraisal or valuation firm
experienced in valuing equipment) of the equipment that is the subject property
of such financing transaction or Sale/Leaseback Transaction, and
(c) contains covenants no more restrictive than those contained in this
Agreement (except that covenants that relate solely to the subject property may
be more restrictive).

 

“Permitted
Investments” shall mean any of the following:

 

(a) any evidence of Indebtedness, maturing
not more than one year after the acquisition thereof, issued by the United
States of America or Canada, or any instrumentality or agency thereof and
guaranteed fully as to principal, interest and premium, if any, by the
United States of America or Canada;

 

(b) any certificate of deposit, maturing not
more than one year after the date of purchase, issued by a commercial banking
institution that has long-term debt rated “A” or higher by Moody’s Investors
Service, Inc. (“Moody’s”) or Standard & Poor’s Ratings Services (“S&P”)
and which has a combined capital and surplus and undivided profits of not less
than U.S.$500,000,000;

 

(c) commercial paper (i) maturing not
more than 270 days after the date of purchase and (ii) issued by a
corporation (other than a Loan Party or any Affiliate of a Loan Party) with a
rating, at the time as of which any determination thereof is to be made, of “P-1”
or higher by Moody’s or “A-1” or higher by S&P (or equivalent rating
in the case of a Permitted Investment made by a Foreign Subsidiary);

 

(d) demand deposits with any bank or trust
company;

 

(e) repurchase agreements with a term of not
more than seven days with respect to Indebtedness issued by the United States
of America, or any instrumentality or agency thereof and guaranteed fully as to
principal, interest and premium, if any, by the United States of America; and

 

(f) in the case of the Foreign Subsidiaries,
short-term investments comparable to the foregoing.

 

“Permitted
Liens” shall mean, with respect to any Person, any of the following:

 

(a) Liens for taxes, assessments or other
governmental charges or levies not yet due and payable or which are being
contested in good faith by appropriate proceedings diligently pursued, provided
that (i) any proceedings commenced for the enforcement of such Liens shall
have been duly suspended and (ii) full provision for the payment of all
such taxes known to such Person has been made on the books of such Person if
and to the extent required by U.S. GAAP;

 

(b) mechanics’, materialmen’s, carriers’,
warehousemen’s, landlord’s and similar Liens arising by operation of law and in
the ordinary course of business and

 

29

 

securing obligations of such Person that are
not overdue for a period of more than 60 days or are being contested in
good faith by appropriate proceedings diligently pursued, provided that
in the case of any such contest (i) any proceedings commenced for the
enforcement of such Liens shall have been duly suspended and (ii) full
provision for the payment of such Liens has been made on the books of such
Person if and to the extent required by U.S. GAAP;

 

(c) Liens arising in connection with worker’s
compensation, unemployment insurance, old age pensions and social security
benefits that are not overdue or are being contested in good faith by
appropriate proceedings diligently pursued, provided that in the case of
any such contest (i) any proceedings commenced for the enforcement of such
Liens shall have been duly suspended and (ii) full provision for the
payment of such Liens has been made on the books of such Person if and to the
extent required by U.S. GAAP;

 

(d) (i) Liens incurred or deposits
made in the ordinary course of business to secure the performance of bids,
tenders, statutory obligations, fee and expense arrangements with trustees and
fiscal agents (exclusive of obligations incurred in connection with the
borrowing of money or the payment of the deferred purchase price of property)
and (ii) Liens securing surety, indemnity, performance, appeal and release
bonds, in the case of either clause (i) or (ii), securing
such obligations in an amount outstanding at any time not to exceed
individually or in the aggregate U.S.$100,000,000, provided that full
provision for the payment of all such obligations has been made on the books of
such Person if and to the extent required by U.S. GAAP;

 

(e) imperfections of title, covenants,
restrictions, rights of way, easements, servitudes, mineral interest
reservations, reservations made in the grant from the Crown, municipal and
zoning ordinances, general real estate taxes and assessments not yet delinquent
and other encumbrances on real property that (i) do not arise out of the
incurrence of any Indebtedness for money borrowed and (ii) do not
interfere with or impair in any material respect the utility, operation, value
or marketability of the real property on which such Lien is imposed;

 

(f) the rights of collecting banks or
other financial institutions having a right of setoff, revocation, refund or
chargeback with respect to money or instruments on deposit with or in the
possession of such financial institution;

 

(g) leases or subleases granted to
others not interfering in any material respect with the business of SSCC or any
Subsidiary and any interest or title of a lessor under any lease (whether a
Capital Lease or an operating lease) permitted by this Agreement or the Security
Documents;

 

(h) Liens on accounts receivable for
which attempts at collection have been undertaken by a third party authorized
by the Person owning such accounts receivable;

 

30

 

(i) Liens arising from the granting of a
license to enter into or use any asset of SSCC or any Subsidiary to any Person
in the ordinary course of business of SSCC or any Subsidiary that does not
interfere in any material respect with the use or application by SSCC or any
Subsidiary of the asset subject to such license;

 

(j) Liens attaching solely to cash
earnest money deposits made by SSCC or any Subsidiary in connection with any
letter of intent or purchase agreement entered into it in connection with an
acquisition permitted hereunder;

 

(k) Liens arising from precautionary UCC
financing statements (or analogous personal property security filings or
registrations in other jurisdictions) regarding operating leases;

 

(l) Liens arising by operation of law on
insurance policies and proceeds thereof to secure premiums thereunder; and

 

(m) Liens arising out of judgments or
awards in respect of which an appeal or proceeding for review is being
diligently prosecuted, provided that (i) a stay of execution pending
such appeal or proceeding for review has been obtained and (ii) full provision
for the payment of such Liens has been made on the books of such Person if and
to the extent required by U.S. GAAP.

 

For the
purposes of the Security Documents and Section 4.17, “Permitted
Liens” shall also be deemed to include the Liens permitted by Sections 7.02(a)(ii),
(iv), (v), (vi), (vii), (ix), (x), (xi),
(xiii), (xiv), (xv) and (xvi).  Any reference in any of the Loan Documents to
a Permitted Lien is not intended to and shall not be interpreted as
subordinating or postponing, or as any agreement to subordinate or postpone,
any Lien created by any of the Loan Documents to any Permitted Lien.

 

“Permitted
Timber Financing” shall mean any financing transaction by SSCC or any
Subsidiary secured by timber or timberland, or a Sale/Leaseback Transaction in
which the subject property consists of timber or timberland, in each case owned
by such Person for more than 90 days immediately prior to such financing
transaction or Sale/Leaseback Transaction, so long as such financing
transaction or Sale/Leaseback Transaction (a) does not have a final maturity or
final payment date in respect thereof on or prior to the later of the Term Loan
Maturity Date or the Incremental Term Loan Maturity Date (if any), or a weighted
average life to maturity shorter than the weighted average life to maturity of
the Term Loans, (b) results in the Net Cash Proceeds to any Loan Party in
excess of 60% of the fair market value (determined, as of the date of such
financing transaction or Sale/Leaseback Transaction, on the basis of an assumed
arms-length sale of such property, by a nationally recognized appraisal
or valuation firm experienced in valuing timber or timberland) of the timber or
timberland that is the subject property of such financing transaction or
Sale/Leaseback Transaction and (c) contains covenants no more restrictive than
those contained in this Agreement (except that covenants that relate solely to
the subject property may be more restrictive).

 

31

 

“Person”
shall mean any natural person, corporation, legal person, business trust, joint
venture, association, company, limited liability company, partnership or
government, or any agency or political subdivision thereof.

 

“Plan”
shall mean any pension plan (other than a Multiemployer Plan) subject to the
provisions of Title IV of ERISA or Section 412 of the Code that is
maintained for employees of SSCC or any ERISA Affiliate.

 

“Pledge
Agreement (Canadian)” shall mean the Pledge Agreement (Canadian),
substantially in the form of Exhibit I, among SSCE, the Canadian
Subsidiaries party thereto and the Collateral Agent, for the benefit of the
secured parties named therein.

 

“Pontiac
Sale” shall mean the sale by SSC Canada of the Pontiac, Quebec pulp mill.

 

“Prime Rate”
shall mean the rate of interest per annum publicly announced from time to time
by the Administrative Agent as its prime rate in effect at its principal office
in New York City.  Each change in the
Prime Rate shall be effective on the date such change is publicly announced as
being effective.

 

“Program
Receivables” shall mean all trade receivables and related contract and
other related rights and property (including all general intangibles,
collections and other proceeds relating thereto, all security therefor and any
goods that have been repossessed in connection with any thereof) sold or
contributed by SSCC or any Subsidiary to any FinSub or any Securitization
Entity pursuant to the Receivables Program Documents.

 

“PUI” shall
mean Packaging Unlimited, Inc., a Delaware corporation that is qualified to do
business in the Commonwealth of Puerto Rico. 
For purposes of this Agreement, PUI shall be deemed to be a Foreign
Subsidiary.

 

“Real
Properties” shall mean each parcel of real property identified on Schedule 4.19,
together with all fixtures thereon.

 

“Receivables
Programs” shall mean the trade receivables securitization programs
conducted pursuant to the Receivables Program Documents.

 

“Receivables
Program Documents” shall mean the documents identified on Schedule 1.01(e),
together with all other non-material documentation entered into pursuant to
such documentation, and any other documents and agreements that may be entered
into by SSCC or any Subsidiary pursuant to Section 7.10(c).

 

“Register”
is defined in Section 11.04(e).

 

“Regulation
T” shall mean Regulation T of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

 

32

 

“Regulation
U” shall mean Regulation U of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

 

“Regulation
X” shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

 

“Required
Lenders” shall mean, as of the date of determination thereof, the Lenders
having greater than 50% of the sum of the aggregate principal amount of Loans
(other than Swingline Loans), LC Exposures, Swingline Exposure and unused
Commitments.

 

“Reset Date”
is defined in Section 1.04.

 

“Responsible
Officer” of any Person shall mean the chief executive officer, president,
any Financial Officer or any vice president of such Person and any other
officer or similar official thereof responsible for the administration of the
obligations of such Person in respect of this Agreement.

 

“Restricted
Payment” shall mean (a) any dividend or other distribution, direct or
indirect, on account of any shares of any class of stock of SSCC or any of the
Subsidiaries, now or hereafter outstanding, except (i) any dividend
payable solely in shares of such class of stock to the holders of such class
and (ii) any dividend or distribution made by any Subsidiary ratably to
the holders of the capital stock of such Subsidiary, and (b) any
redemption, retirement, sinking fund or similar payment, purchase, exchange or
other acquisition for value, direct or indirect, of any shares of any class of
stock of SSCC or any of the Subsidiaries, now or hereafter outstanding, except
for any such redemption, retirement, sinking fund or similar payment payable
only to a Loan Party or payable from a Foreign Subsidiary (other than a
Canadian Subsidiary) to another Foreign Subsidiary.

 

“Revolving
(Canadian) Credit Borrowing” shall mean a Borrowing comprised of Revolving
(Canadian) Loans.

 

“Revolving
(Canadian) Credit Commitment” shall mean, with respect to each Revolving
(Canadian) Lender, the commitment of such Lender to make Revolving (Canadian)
Loans and to acquire participations in Revolving (Canadian) Facility Letters of
Credit hereunder as set forth on Schedule 2.01 or in the Assignment
and Acceptance pursuant to which such Lender assumed its Revolving (Canadian)
Credit Commitment, as applicable, as the same may be (a) reduced from time
to time pursuant to Section 2.09, (b) increased from time to
time pursuant to an Incremental Revolving Credit Assumption Agreement entered
into by such Lender and (c) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 11.04.  As of the Closing Date, the aggregate amount
of the Lenders’ Revolving (Canadian) Credit Commitments is U.S.$200,000,000.

 

“Revolving
(Canadian) Credit Utilization” shall mean, at any time of determination,
the sum of (a) the aggregate principal amount of Revolving (Canadian)
Loans outstanding at such time and denominated in U.S. Dollars, plus the
U.S. Dollar 

 

33

 

Equivalent of the aggregate principal amount of Revolving (Canadian)
Loans outstanding at such time and denominated in Canadian Dollars, and
(b) the Revolving (Canadian) Facility LC Exposure at such time.

 

“Revolving
(Canadian) Facility Facing Agent” shall mean DB Canada, each other
Revolving (Canadian) Lender that has issued an Existing SSC Canada Letter of
Credit and each Revolving (Canadian) Lender that becomes a Revolving (Canadian)
Facility Facing Agent pursuant to Section 3.10 or 3.11; provided
that DB Canada shall have no obligation to issue commercial Letters of
Credit.

 

“Revolving
(Canadian) Facility LC Exposure” shall mean, at any time of determination,
the sum of (a) the aggregate undrawn amount of all outstanding Revolving
(Canadian) Facility Letters of Credit that are denominated in U.S. Dollars, plus
the U.S. Dollar Equivalent at such time of the aggregate undrawn amount of all
Revolving (Canadian) Facility Letters of Credit that are denominated in
Canadian Dollars, and (b) the aggregate amount of all LC Disbursements in
respect of Revolving (Canadian) Facility Letters of Credit denominated in U.S.
Dollars that have not been reimbursed by SSC Canada or another Loan Party at
such time, plus the U.S. Dollar Equivalent at such time of the aggregate
amount of all LC Disbursements in respect of Revolving (Canadian) Facility
Letters of Credit denominated in Canadian Dollars that have not been reimbursed
by SSC Canada or another Loan Party at such time.  The Revolving (Canadian) Facility LC Exposure
of any Revolving (Canadian) Lender at any time shall equal its Applicable
Percentage of the aggregate Revolving (Canadian) Facility LC Exposure at such
time.

 

“Revolving
(Canadian) Facility LC Participation Fee” is defined in Section 2.05(d).

 

“Revolving
(Canadian) Facility Letters of Credit” shall mean (a) the letters of
credit issued for the account of SSC Canada by the Revolving (Canadian)
Facility Facing Agent pursuant to the terms and conditions of Article III
and (b) the Existing SSC Canada Letters of Credit.  Revolving (Canadian) Facility Letters of
Credit may be denominated in U.S. Dollars or Canadian Dollars.

 

“Revolving
(Canadian) Lenders” shall mean the Lenders having Revolving (Canadian)
Credit Commitments or holding Revolving (Canadian) Loans and which, prior to
any CAM Exchange and except as otherwise provided in this Agreement, shall not
be non-residents of Canada or shall be deemed to be residents in Canada for
purposes of Part XIII of the ITA in respect of such Commitments and Loans.

 

“Revolving
(Canadian) Loans” shall mean the revolving loans made by the Revolving
(Canadian) Lenders to SSC Canada or SSCE pursuant to Section 2.01(b)(ii).

 

“Revolving
Credit Availability Period” shall mean the period commencing with the
Closing Date and ending on the Revolving Credit Maturity Date.

 

34

 

“Revolving
Credit Borrowing” shall mean a Borrowing comprised of Revolving Loans.

 

“Revolving
Credit Commitment” shall mean, with respect to each Revolving Lender, the
commitment of such Lender to make Revolving Loans hereunder and to acquire
participations in Revolving Facility Letters of Credit and in Swingline Loans
as set forth on Schedule 2.01 or in the Assignment and Acceptance
pursuant to which such Lender assumed its Revolving Credit Commitment, as
applicable, as the same may be (a) reduced from time to time pursuant to Section 2.09,
(b) increased from time to time pursuant to an Incremental Revolving Credit
Assumption Agreement entered into by such Lender and (c) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 11.04. 
As of the Closing Date, the aggregate amount of the Revolving Credit
Commitments of the Revolving Lenders is U.S.$600,000,000.

 

“Revolving Credit
Maturity Date” shall mean the fifth anniversary of the Closing Date.

 

“Revolving
Credit Utilization” shall mean, at any time of determination, the sum of
(a) the aggregate principal amount of Revolving Loans outstanding at such
time, (b) the Swingline Exposure at such time and (c) the Revolving
Facility LC Exposure at such time.

 

“Revolving
Facility Facing Agent” shall mean DB (or an Affiliate thereof), each other
Lender that has issued an Existing SSCE Letter of Credit and each Lender that
becomes a Revolving Facility Facing Agent pursuant to Section 3.10 or 3.11;
provided that DB shall have no obligation to issue commercial Letters of
Credit.

 

“Revolving
Facility LC Exposure” shall mean, at any time of determination, the sum of
(a) the aggregate undrawn amount of all outstanding Revolving Facility
Letters of Credit and (b) the aggregate amount that has been drawn under
any Revolving Facility Letter of Credit and has not been reimbursed by SSCE or
another Loan Party at such time.  The
Revolving Facility LC Exposure of any Revolving Lender at any time shall equal
its Applicable Percentage of the aggregate Revolving Facility LC Exposure at
such time.

 

“Revolving
Facility LC Participation Fee” is defined in Section 2.05(b).

 

“Revolving
Facility Letters of Credit” shall mean (a) the letters of credit
issued for the account of SSCE by the Revolving Facility Facing Agent pursuant
to the terms and conditions of Article III and (b) the
Existing SSCE Letters of Credit. 
Revolving Facility Letters of Credit shall be denominated in U.S.
Dollars.

 

“Revolving
Lenders” shall mean the Lenders having Revolving Credit Commitments or
holding Revolving Loans.

 

“Revolving
Loans” shall mean the revolving loans made by the Lenders to SSCE pursuant
to Section 2.01(b)(i).

 

35

 

“Sale/Leaseback
Transaction” shall mean an arrangement, direct or indirect, whereby SSCC or
any of its Subsidiaries shall sell or transfer any property, real or personal,
used or useful in its business, whether now owned or hereafter acquired, and
thereafter rent or lease such property or other property that it intends to use
for substantially the same purpose or purposes as the property sold or
transferred.

 

“Schedule I
Bank” shall mean a bank that is a Canadian chartered bank listed on
Schedule I under the Bank Act (Canada).

 

“Schedule I
Reference Banks” shall mean The Bank of Nova Scotia and such other Schedule
I Banks as are agreed from time to time by SSC Canada and the Canadian
Administrative Agent; provided  that
there shall be no more than three Schedule I Reference Banks at any one time.

 

“Schedule
II Bank” shall mean a bank that is a bank listed on Schedule II or Schedule
III under the Bank Act (Canada).

 

“Schedule II
Reference Banks” shall mean each of DB Canada and J.P. Morgan Bank Canada
and such other Schedule II Banks as are agreed to from time to time by SSC
Canada and the Canadian Administrative Agent; provided that there shall
be no more than three Schedule II Reference Banks at any one time.

 

“Securitization
Entity” shall mean any special purpose bankruptcy-remote entity that is not
a subsidiary or an Affiliate of SSCC and which is formed for the purpose of
purchasing receivables in arms’ length transactions, including Computershare
Trust Company of Canada, in its capacity as trustee of King Street Funding
Trust.

 

“Securitization
Trust Investment” shall mean (a) with respect to the Existing SMBI
Receivables Program, the Capital, as such term is defined in the Existing SMBI
Receivables Purchase Agreement, and (b) with respect to any Receivables Program
that refinances or replaces the Existing SMBI Receivables Program pursuant to Section
7.10(c), the excess of the cash purchase price paid to the seller of the
Program Receivables thereunder by the Securitization Entity over the
collections thereon, such amount to be determined in the manner reasonably
satisfactory to the Senior Agents.

 

“Security
Agreement (Canadian)” shall mean the Security Agreement (Canadian),
substantially in the form of Exhibit J hereto, among SSC Canada, the
other Canadian Subsidiaries party thereto and the Collateral Agent, for the
benefit of the secured parties named therein.

 

“Security
Documents” shall mean the Mortgages, the Guarantee and Collateral Agreement
(U.S.), the IP Security Agreements, the Canadian Security Agreements, the
Hypothecs, the Bond Pledge Agreements, the Bonds, the Bank Act Security and
each of the security agreements and other instruments and documents executed
and delivered pursuant to Section 6.09.

 

“Senior
Agents” shall mean JPMCB and DB, in their capacities as senior agents for
the Lenders and the Facing Agents.

 

36

 

“Senior
Notes” shall mean the Senior Notes due 2008, the Senior Notes due 2011, the
Senior Notes due 2012, the Senior Notes (JSCUS) due 2012, the Senior Notes due
2013, the Senior Notes (JSCUS) due 2013 and Senior Notes due 2014.

 

“Senior
Notes due 2008” shall mean SSCE’s 9-1/4% Senior Notes due 2008.

 

“Senior
Notes due 2011” shall mean SSCE’s 9-3/4% Senior Notes due 2011.

 

“Senior
Notes due 2012” shall mean SSCE’s 8-3/8% Senior Notes due 2012.

 

“Senior
Notes due 2013” shall mean SSCE’s 7-1/2% Senior Notes due 2013.

 

“Senior
Notes due 2014” shall mean the 7-3/8% Senior Notes due 2014, issued by Stone
Container Finance Company of Canada II and guaranteed by SSCE.

 

“Senior
Notes (JSCUS) due 2012” shall mean SSCE’s 8-1/4% Senior Notes due 2012.

 

“Senior
Notes (JSCUS) due 2013” shall mean SSCE’s 7-1/2% Senior Notes due 2013.

 

“Senior
Secured Indebtedness” shall mean, with respect to any Person, Indebtedness
(including in connection with the Receivables Program) of such Person that is
secured by any Lien (other than a Permitted Lien).

 

“SMBI”
shall mean Smurfit-MBI, a limited partnership organized under the laws of the
Province of Ontario, Canada.

 

“SMBI Bond
Pledge Agreement” shall mean the bond pledge agreement dated as of the
Closing Date, entered into between SMBI and the Collateral Agent, providing the
terms pursuant to which the SMBI Bonds are to be held by the Collateral Agent,
in its capacity as collateral agent and depositary of the SMBI Bonds for the
benefit of the beneficiaries named therein.

 

“SMBI Bonds”
shall mean any or all of the bonds issued from time to time by SMBI pursuant to
the SMBI Hypothec.

 

“SMBI
Hypothec” shall mean the Indenture and Deed of Hypothec and Issue of Bonds
executed on October 24, 2004, and entered into between SMBI and the
Trustee, pursuant to the terms of which MBI has created, issued and secured
SMBI  Bonds in the maximum aggregate
amount of Cdn.$1,500,000,000.

 

37

 

“Special
Purpose Finance Subsidiary” shall mean a Subsidiary organized
exclusively to be the issuer or co-issuer of Indebtedness that engages in no
other business activity and owns no assets.

 

“Specified
Long-Term Indebtedness” shall mean any Indebtedness incurred or permitted
to be incurred under Section 7.01(b), (e), (m), (o)
(to the extent such Indebtedness is subordinated Indebtedness), (p), (q),
(s), or (t).

 

“SSCC”
is defined in the preamble to this Agreement.

 

“SSC Canada”
is defined in the preamble to this Agreement.

 

“SSC Canada
Bond Pledge Agreement” shall mean the bond pledge agreement dated as of the
Closing Date, entered into between SSC Canada and the Collateral Agent,
providing the terms pursuant to which the SSC Canada Bonds are to be held by
the Collateral Agent, in its capacity as collateral agent and depositary of the
SSC Canada Bonds for the benefit of the beneficiaries named therein.

 

“SSC Canada
Bonds” shall mean any or all of the bonds issued from time to time by SSC
Canada pursuant to the SSC Canada Hypothec.

 

“SSC Canada
Hypothec” shall mean the Indenture and Deed of Hypothec and Issue of Bonds
executed on October 24, 2004, and entered into between SSC Canada and the
Trustee, pursuant to the terms of which SSC Canada has created, issued and
secured SSC Canada Bonds in the maximum aggregate amount of Cdn.$1,500,000,000.

 

“SSC Canada
Lender” shall mean any Lender that shall have made, or shall have a
Commitment to make, a Loan to SSC Canada.

 

“SSC Canada
Loan” shall mean any Loan made to SSC Canada.

 

“SSCC
Common Stock” shall mean the Common Stock, par value $0.01 per share, of
SSCC.

 

“SSCC
Convertible Subordinated Exchange Debentures” shall mean the 7% Convertible
Subordinated Exchange Debentures due 2012 issuable by SSCC pursuant to the
terms of the SSCC Series A Preferred Stock in exchange therefor.

 

“SSCC
Series A Preferred Stock” shall mean the Series A Cumulative Convertible
Exchangeable Preferred Stock, par value $0.01 per share, of SSCC.

 

“SSCE”
is defined in the preamble to this Agreement.

 

“SSCE
Lender” shall mean any Lender that shall have made, or shall have a
Commitment to make, a Loan to SSCE.

 

“SSCE Loan”
shall mean any Loan made to SSCE.

 

38

 

“Standard
Time” shall mean eastern standard time or eastern daylight savings time, as
applicable on the relevant date.

 

“Statutory
Reserves” shall mean a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus
the aggregate of the maximum applicable reserve percentages, including any
marginal, special, emergency or supplemental reserves (expressed as a decimal)
established by the Board and any other banking authority to which the
Administrative Agent is subject for Eurocurrency Liabilities (as defined in
Regulation D of the Board).  Eurodollar
Loans shall be deemed to constitute Eurocurrency Liabilities and to be subject
to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under such Regulation D.  Statutory
Reserves shall be adjusted automatically on and as of the effective date of any
change in any reserve percentage.

 

“Stevenson
IRBs” shall mean the Environmental Improvement Revenue Bonds and
Environmental Improvement Revenue Refunding Bonds issued by The Industrial
Development Board of the City of Stevenson, Alabama, and Guaranteed by Stone.

 

“Stone”
shall mean Stone Container Corporation, a Delaware corporation into which JSCUS
merged pursuant to the Merger Agreement and which, following the Merger, has
changed its name to Smurfit-Stone Container Enterprises, Inc.

 

“Sub-Account”
is defined in Section 2.04(c).

 

“subsidiary”
shall mean, with respect to any Person (herein referred to as the “parent”),
any corporation, partnership, association or other business entity of which
securities or other ownership interests representing more than 50% of the
equity or more than 50% of the ordinary voting power or more than 50% of the
general partnership or membership interests are, at the time any determination
is being made, owned, controlled or held by, or otherwise Controlled by, the
parent or one or more subsidiaries of the parent or by the parent and one or
more subsidiaries of the parent.

 

“Subsidiary”
shall mean any direct or indirect subsidiary of SSCC; provided, however,
that the term “Subsidiary” shall not include (a) any Inactive Subsidiary
and (b) any Excluded Subsidiary.

 

“Swap
Agreement” shall mean any agreement with respect to any swap, forward,
future or derivative transaction or option or similar agreement involving, or
settled by reference to, one or more rates, currencies, commodities, equity or
debt instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no
phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of SSCC or the Subsidiaries shall be a Swap Agreement.

 

39

 

“Swingline
Exposure” shall mean, at any time, the aggregate principal amount of the
Swingline Loans outstanding at such time. 
The Swingline Exposure of any Revolving Lender at any time shall equal
its Applicable Percentage of the aggregate Swingline Exposures at such time.

 

“Swingline
Lender” shall mean DB, in its capacity as the maker of Swingline Loans
hereunder.

 

“Swingline
Loans” shall mean the swingline loans made by the Swingline Lender pursuant
to Section 2.21.

 

“Taxes”
is defined in Section 2.19(a).

 

“Term
Borrowing” shall mean a Borrowing comprised of Tranche B Loans,
Tranche C Loans or Other Term Loans.

 

“Term
Lenders” shall mean, collectively, the Tranche B Lenders, the
Tranche C Lenders and any Incremental Term Lenders.

 

“Term Loan
Commitments” shall mean, collectively, the Tranche B Commitments and
the Tranche C Commitments.  Unless
the context shall otherwise require, after the effectiveness of any Incremental
Term Loan Commitment, the term “Term Loan Commitments” shall also include such
Incremental Term Loan Commitment.

 

“Term Loan
Maturity Date” shall mean the seventh anniversary of the Closing Date.

 

“Term Loan
Repayment Amounts” shall mean, collectively, the Tranche B Repayment
Amounts, Tranche C Repayment Amounts and Incremental Term Loan Repayment
Amounts.

 

“Term Loan
Repayment Dates” shall mean the Tranche B Repayment Dates, the
Tranche C Repayment Dates and the Incremental Term Loan Repayment Dates.

 

“Term Loans”
shall mean, collectively, the Tranche B Loans and the Tranche C
Loans.  Unless the context shall
otherwise require, the term “Term Loans” shall also include any Incremental
Term Loans.

 

“Tranche B
Borrowing” shall mean a Borrowing comprised of Tranche B Loans.

 

“Tranche B
Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Tranche B Loans hereunder as set forth on Schedule 2.01
or in the Assignment and Acceptance pursuant to which such Lender assumed its
Tranche B Commitment, as applicable, as the same may be (a) reduced
from time to time pursuant to Section 2.09, (b) increased from time
to time pursuant to an

 

40

 

Incremental Term Loan Assumption Agreement entered into by such Lender
and (c) reduced or increased from time to time pursuant to assignments by
or to such Lender pursuant to Section 11.04.  As of the Closing Date, the aggregate amount
of the Lenders’ Tranche B Commitments is U.S.$975,000,000.

 

“Tranche B
Lenders” shall mean the Lenders having Tranche B Commitments or
holding Tranche B Loans.

 

“Tranche B
Loans” shall mean the term loans made by the Lenders to SSCE pursuant to Section 2.01(a)(i)
or, if the terms thereof are identical thereto, Section 2.01(a)(iii).

 

“Tranche B
Repayment Amount” is defined in Section 2.11(a).

 

“Tranche B
Repayment Date” is defined in Section 2.11(a).

 

“Tranche C
Borrowing” shall mean a Borrowing comprised of Tranche C Loans.

 

“Tranche C
Commitment” shall mean, with respect to each Lender, the commitment of such
Lender to make Tranche C Loans hereunder as set forth on Schedule 2.01
or in the Assignment and Acceptance pursuant to which such Lender assumed its
Tranche C Commitment, as applicable, as the same may be (a) reduced
from time to time pursuant to Section 2.09, (b) increased from
time to time pursuant to an Incremental Term Loan Assumption Agreement entered
into by such Lender and (c) reduced or increased from time to time
pursuant to assignments by or to such Lender pursuant to Section 11.04.  As of the Closing Date, the aggregate amount
of the Lenders’ Tranche C Commitments is U.S.$300,000,000.

 

“Tranche C
Lenders” shall mean the Lenders having Tranche C Commitments or
holding Tranche C Loans.

 

“Tranche C
Loans” shall mean the term loans made by the Lenders to SSC Canada pursuant
to Section 2.01(a)(ii) or, if the terms thereof are identical
thereto, Section 2.01(a)(iii).

 

“Tranche C
Repayment Amount” is defined in Section 2.11(b).

 

“Tranche C
Repayment Date” is defined in Section 2.11(b).

 

“Transactions”
is defined in Section 4.02.

 

“Transferee”
is defined in Section 2.19(a).

 

“Trustee”
shall mean National Bank Trust Inc., a trust company constituted under An Act Respecting Trust Companies and
Savings Companies (Quebec) and Part 1 of the Companies Act (Quebec), in its
capacity as “fondé de pouvoir” (person holding the power of attorney) for the
holders of the Bonds.

 

41

 

“Type”,
when used in respect of any Loan or Borrowing, shall refer to the Rate by
reference to which interest on such Loan or on the Loans comprising such
Borrowing is determined.  For purposes
hereof, the term “Rate” shall include the Adjusted LIBO Rate, the
Alternate Base Rate, the Canadian Prime Rate and the Discount Rate applicable
to B/A and B/A Equivalent Loans.

 

“Undrawn/Unreimbursed
Deposit Funded LC Exposure” shall mean, at any time of determination, the
sum of (a) the aggregate undrawn amount of all outstanding Deposit Funded
Letters of Credit at such time and (b) the aggregate amount of all LC
Disbursements in respect of Deposit Funded Letters of Credit that have not yet
been (i) reimbursed by SSCE or another Loan Party or (ii) otherwise repaid to
the Deposit Funded Facility Facing Agent by the application of the Deposits
pursuant to Section 3.05(c).

 

“U.S. Base
Rate” shall mean the rate of interest per annum publicly announced from
time to time by the Canadian Administrative Agent as its base rate in effect at
its principal office in Toronto, Ontario for determining interest rates on U.S.
Dollar-denominated commercial loans made in Canada.  Each change in the U.S. Base Rate shall be
effective on the date such change is publicly announced as being effective.

 

“U.S.
Dollars” or “U.S. $” shall mean lawful currency of the United
States.

 

“U.S.
Dollar Equivalent” shall mean, on any date of determination, with respect
to any amount in Canadian Dollars, the equivalent in U.S. Dollars of such
amount determined by the Administrative Agent using the Exchange Rate then in
effect.

 

“U.S. GAAP”
shall mean generally accepted accounting principles in the United States,
applied on a consistent basis.

 

“U.S.
Obligations” shall mean Obligations of SSCC, SSCE and the Domestic
Subsidiaries that are Guarantors.

 

“wholly
owned”, when used in reference to any subsidiary of a Person, shall mean
any subsidiary of such Person of which securities (except for directors’
qualifying shares) or other ownership interests representing 100% of the equity
or 100% of the ordinary voting power or 100% of the general partnership or
membership interests are, at the time any determination is being made, owned,
controlled or held by such Person or one or more wholly owned subsidiaries of
such Person or by such Person and one or more wholly owned subsidiaries of such
Person.

 

“Withdrawal
Liability” shall mean liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are
defined in Part I of Subtitle E of Title IV of ERISA.

 

“Yield
Differential” is defined in Section 2.23(d).

 

42

 

SECTION 1.02.  Terms Generally.  The definitions in Section 1.01
shall apply equally to both the singular and plural forms of the terms
defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and neuter
forms.  The words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without
limitation”.  The word “will” shall be
construed to have the same meaning and effect as the word “shall”.  Unless the context shall otherwise require,
all references herein to Articles, Sections, Exhibits and Schedules shall be
deemed to be references to Articles and Sections of, and Exhibits and Schedules
to, this Agreement , and the words “herein”, “hereof” and “hereunder”, and
words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof.  Each reference to any Loan Document or any
other document or agreement shall be deemed to be a reference to such Loan
Document, document or agreement as amended, restated, waived, supplemented or
otherwise modified from time to time in accordance with the provisions hereof
and thereof.

 

SECTION 1.03.  Classification of Loans and Borrowings.  For the purposes of this Agreement, Loans may
be classified and referred to by Class (e.g., a “Revolving Loan”) or by
Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a
“Eurodollar Revolving Loan”).  Borrowings
may also be classified and referred to by Class 
(e.g., a “Revolving Borrowing”) or by Type (e.g., a
“Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar
Revolving Borrowing”).

 

SECTION 1.04.  Exchange Rate Calculations.  On each Calculation Date, the Canadian
Administrative Agent shall (a) determine the Exchange Rate as of such
Calculation Date and (b) give notice thereof to the Borrowers and to each
Lender that shall have requested such information.  The Exchange Rates so determined shall become
effective on the first Business Day immediately following the relevant Calculation
Date (each, a “Reset Date”) and shall remain effective until the next
succeeding Reset Date, and shall for all purposes of this Agreement (other than
Sections 2.13(e), 10.03, 11.18 and any other
provision expressly requiring the use of a current Exchange Rate) be the
Exchange Rate employed in converting amounts between U.S. Dollars and Canadian
Dollars.

 

SECTION 1.05.  Pro Forma Calculations.  With respect to any period during which any
Permitted Acquisition occurs, the Consolidated Leverage Ratio and the
Consolidated Senior Secured Leverage Ratio shall be calculated with respect to
such period (and, to the extent applicable, subsequent periods) on a pro forma
basis after giving effect to such Permitted Acquisition (including, without
duplication, (a) all pro forma adjustments permitted or required by
Article 11 of Regulation S-X under the Securities Act of 1933, as
amended, and (b) pro forma adjustments for cost savings (net of continuing
associated expenses) to the extent such cost savings are factually supportable
and have been realized or are reasonably expected to be realized within
12 months following such Permitted Acquisition, provided that such
cost savings shall be set forth in a reasonably detailed certificate of a
Financial Officer of SSCE), using, for purposes of making such calculations,
the historical financial statements of all entities or assets so acquired or to
be acquired and the consolidated financial statements of SSCC and the
Subsidiaries which shall be reformulated as if such Permitted Acquisition, and

 

43

 

any other Permitted Acquisitions that have been consummated during the
period.  In addition, solely for purposes
of determining pro forma compliance with the Interest Coverage Ratio for
purposes of Section 7.05(f), any Indebtedness incurred in
connection with such Permitted Acquisition and any other Permitted Acquisitions
that have been consummated during the period shall be assumed to have been
incurred at the beginning of such period.

 

SECTION 1.06.  Accounting
Terms; U.S. GAAP.  Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with U.S. GAAP,
as in effect from time to time; provided that, if SSCC or any Borrower
notifies the Senior Agents that it requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in
U.S. GAAP or in the application thereof on the operation of such provision (or
if a Senior Agent notifies SSCC and the Borrowers that the Required Lenders
request an amendment to any provision hereof for such purpose), regardless of
whether any such notice is given before or after such change in U.S. GAAP or in
the application thereof, then such provision shall be interpreted on the basis
of U.S. GAAP as in effect and applied immediately before such change shall have
become effective until such notice shall have been withdrawn or such
provision  amended in accordance
herewith.

 

ARTICLE II

 

The Credits

 

SECTION 2.01.  Commitments; Deposit Account.  (a) 
Subject to the terms and conditions and relying on the representations
and warranties set forth herein, (i) each Tranche B Lender agrees,
severally and not jointly, to make to SSCE on the Closing Date a Tranche B
Loan in U.S. Dollars in a principal amount equal to its Tranche B
Commitment, (ii) each Tranche C Lender agrees, severally and not
jointly, to make to SSC Canada on the Closing Date a Tranche C Loan in
U.S. Dollars in a principal amount equal to its Tranche C Commitment, and
(iii) each Incremental Term Lender agrees, severally and not jointly, to
make to either SSCE or SSC Canada an Incremental Term Loan in a principal
amount equal to its Incremental Term Loan Commitment.  Amounts paid or repaid in respect of Term
Loans may not be reborrowed.

 

(b) 
Subject to the terms and conditions and relying on the representations
and warranties set forth herein, (i) each Revolving Lender agrees,
severally and not jointly, to make to SSCE from time to time during the
Revolving Credit Availability Period Revolving Loans in U.S. Dollars in an
aggregate principal amount that will not result in such Lender’s Applicable
Percentage of the Revolving Credit Utilization exceeding such Lender’s
Revolving Credit Commitment and (ii) each Revolving (Canadian) Lender
agrees, severally and not jointly, to make from time to time during the
Revolving Credit Availability Period (A) Revolving (Canadian) Loans to SSC
Canada in U.S. Dollars or Canadian Dollars (as requested by SSC Canada as
permitted hereunder), including, in the case of Revolving (Canadian) Loans
denominated in Canadian Dollars,

 

44

 

by means of a B/A or B/A
Equivalent Loan, and (B) Revolving (Canadian) Loans to SSCE in U.S.
Dollars, in an aggregate principal amount that will not result in such Lender’s
Applicable Percentage of the Revolving (Canadian) Credit Utilization exceeding
such Lender’s Revolving (Canadian) Credit Commitment.  Within the limits set forth in the preceding
sentence, the Borrowers may borrow, pay or prepay and reborrow Revolving Loans
and Revolving (Canadian) Loans.

 

(c)  Subject
to the terms and conditions and relying on the representations and warranties
set forth herein, each Deposit Funded Lender agrees, severally and not jointly,
to remit to the Administrative Agent on the Closing Date (or, in the case of
any Incremental Deposit Funded Lender, on the date of effectiveness of the
Incremental Deposit Funded Credit Assumption Agreement pursuant to which such
Lender acquired its Incremental Deposit Funded Commitment) an amount in U.S.
Dollars equal to such Lender’s Deposit Funded Commitment (or, in the case of
such Incremental Deposit Funded Lender, such Lender’s Incremental Deposit
Funded Commitment).  The Administrative
Agent shall promptly remit all amounts received by it pursuant to the
immediately preceding sentence to the Deposit Account Agent, and the Deposit
Account Agent shall deposit all such amounts received by it into the Deposit
Account promptly upon receipt thereof. 
Each Deposit Funded Lender irrevocably and unconditionally agrees that
its Deposit shall be available (i) to pay to the Deposit Funded Facility Facing
Agent such Lender’s Applicable Percentage of LC Disbursements in respect of
Deposit Funded Letters of Credit that are not reimbursed by SSCE and (ii) to
fund such Lender’s Deposit Funded Loans, in each case, pursuant to Section
3.05(c).  Deposit Funded Loans may be
prepaid without reducing the Deposit Funded Commitments; provided, however,
that Deposit Funded Loans may not be reborrowed as such.

 

(d)  No
Person (other than the Deposit Account Agent) shall have the right to make any
withdrawal from the Deposit Account or to exercise any other right or power
with respect thereto.  Each Deposit
Funded Lender agrees that its right, title and interest in and to the Deposit
Account shall be limited to the right to require its Deposit to be applied as provided
in Section 3.05(c) and that it will have no right to require the return
of its Deposit other than as expressly provided in Section 2.09.  Each Deposit Funded Lender hereby
acknowledges that (i) its Deposit constitutes payment for its participations in
Deposit Funded Letters of Credit issued, deemed issued or to be issued
hereunder, (ii) its Deposit and any investments made therewith shall
secure its obligations to the Deposit Funded Facility Facing Agent hereunder
(each Deposit Funded Lender hereby granting to the Deposit Account Agent, for
the benefit of the Deposit Funded Facility Facing Agent, a security interest in
its Deposit and agreeing that the Deposit Account Agent, as holder of the
Deposits and any investments made therewith, will be acting as collateral agent
for the Deposit Funded Facility Facing Agent) and (iii) the Deposit Funded
Facility Facing Agent will be issuing, amending, renewing and extending Deposit
Funded Letters of Credit in reliance on the availability of such Lender’s Deposit
to discharge such Lender’s obligations in connection with any LC Disbursement
in respect thereof in accordance with Section 3.05(c).  The funding of the Deposits and the
agreements with respect thereto set forth in this Agreement constitute
arrangements among the Administrative Agent, the Deposit Account Agent, the
Deposit Funded Facility Facing Agent and the Deposit Funded Lenders with
respect to the funding

 

45

 

obligations of such Lenders
under this Agreement, and the Deposits do not constitute loans or extensions of
credit to any Loan Party.  Without
limiting the generality of the foregoing, each party hereto acknowledges and
agrees that the Deposits are and at all times will continue to be property of
the Deposit Funded Lenders, and that no amount on deposit at any time in the
Deposit Account shall be the property of any Loan Party, constitute “Collateral”
under the Loan Documents or otherwise be available in any manner to satisfy any
Obligations of any Loan Party under the Loan Documents.

 

SECTION 2.02.  Loans. 
(a)  Each Loan (other than a
Swingline Loan) shall be made as part of a Borrowing consisting of Loans made
by the Lenders ratably in accordance with their respective applicable
Commitments; provided, however, that the failure of any Lender to
make any Loan shall not in itself relieve any other Lender of its obligation to
lend hereunder (it being understood, however, that no Lender shall be
responsible for the failure of any other Lender to make any Loan required to be
made by such other Lender).  Except for
Loans deemed made pursuant to Section 3.05 and subject to Section 2.22(e)
in the case of B/A Loans, Loans comprising any Borrowing shall be (i) in
an aggregate principal amount that is not less than U.S.$1,000,000 (or the
Canadian Dollar Equivalent thereof) and an integral multiple of U.S.$1,000,000,
in the case of a Eurodollar Borrowing, or U.S.$500,000 (or the Canadian Dollar
Equivalent thereof) in the case of any other Type of Borrowing or (ii) in
the case of an ABR Borrowing, in an aggregate principal amount equal to the
remaining available balance of the applicable Commitments.

 

(b)  Subject
to Section 2.08, (i) each Borrowing denominated in U.S.
Dollars shall be comprised entirely of ABR Loans or Eurodollar Loans and
(ii) each Revolving (Canadian) Credit Borrowing denominated in Canadian
Dollars shall be comprised entirely of B/A Loans or Canadian Prime Rate Loans,
in each case as the applicable Borrower may request pursuant to Section 2.03
or as otherwise may be provided in this Agreement; provided, however,
that the Loans to be made on the Closing Date shall be made as ABR Loans or
Canadian Prime Rate Loans.  Each Lender
(other than any Deposit Funded Lender) may at its option fulfill its Commitment
with respect to any Eurodollar Loan or any Loan denominated in Canadian Dollars
by causing any domestic or foreign branch or Affiliate of such Lender to make
such Loan, and each Deposit Funded Lender may at its option, by notice to the
Administrative Agent, designate any domestic or foreign branch or Affiliate of
such Lender as the holder of any Eurodollar Deposit Funded Loan; provided,
however, that any exercise of any such option shall not (A) affect
the obligation of the applicable Borrower to repay such Loan in accordance with
the terms of this Agreement or (B) require any reimbursement or other
payment to be made to such Lender or its Affiliates pursuant to Section 2.19
in an amount in excess of the amounts that would have been payable thereunder
to such Lender had such Lender not exercised such option.  Borrowings of more than one Type may be
outstanding at the same time; provided, however, that the
Borrowers shall not be entitled to request any Borrowing that, if made, would
result in an aggregate of more than fifteen separate Eurodollar Loans and five
B/A Borrowings of any Lender being outstanding hereunder at any one time.  For purposes of the foregoing, Loans having
different Interest Periods or Contract Periods or denominated in different
currencies, regardless of whether they commence on the same date, shall be
considered separate Loans.

 

46

 

(c)  Except
with respect to Deposit Funded Loans (which shall be made as provided in Section
3.05) and Swingline Loans (which shall be made as provided in Section
2.21), each Lender shall make a Loan in the amount of its pro rata portion,
as determined under Section 2.16, of each Borrowing hereunder on
the proposed date thereof by wire transfer of immediately available funds not
later than 2:00 p.m., Standard Time, to the account of the Administrative Agent
(or, in the case of any Loan made to SSC Canada, to the account of the Canadian
Administrative Agent) most recently designated by such agent for such purpose,
and the Administrative Agent shall promptly credit the amounts so received to
the general deposit account of the applicable Borrower or, if a Borrowing shall
not occur on such date because any condition precedent specified herein shall
not have been met, return the amounts so received to the respective
Lenders.  Unless the Administrative Agent
shall have received notice from a Lender prior to the date of any Borrowing
(or, in the case of an ABR Borrowing or a Canadian Prime Rate Borrowing, prior to
2:00 p.m., Standard Time, on the date of such Borrowing) that such Lender
will not make available to the Administrative Agent such Lender’s portion of
such Borrowing, the Administrative Agent may assume that such Lender has made
such portion available to the Administrative Agent on the date of such
Borrowing in accordance with this paragraph (c), and the
Administrative Agent may, in reliance upon such assumption, make available to
the applicable Borrower on such date a corresponding amount.  If and to the extent that such Lender shall
not have made such portion available to the Administrative Agent, such Lender
and such Borrower severally agree to repay to the Administrative Agent
forthwith on demand such corresponding amount, together with interest thereon
for each day from the date such amount is made available to the applicable
Borrower until the date such amount is repaid to the Administrative Agent at
(i) in the case of such Borrower, the interest rate applicable at the time
to the Loans comprising such Borrowing and (ii) in the case of such
Lender, the Federal Funds Effective Rate or, in the case of a Revolving
(Canadian) Credit Borrowing denominated in Canadian Dollars, the rate
determined by the Canadian Administrative Agent to represent its cost of
obtaining overnight Canadian Dollars.  If
such Lender shall repay to the Administrative Agent such corresponding amount,
such amount shall be deemed to constitute such Lender’s Loan as part of such
Borrowing for purposes of this Agreement.

 

(d)  Notwithstanding
any other provision of this Agreement, the Borrowers shall not be entitled to
request any Interest Period (or Contract Period in the case of a B/A Borrowing)
with respect to any Borrowing that would end after the Revolving Credit
Maturity Date, the Term Loan Maturity Date, the Incremental Term Loan Maturity
Date or the Deposit Funded Maturity Date, as applicable.

 

SECTION 2.03.  Notice of Borrowings.  To request a Borrowing (other than a
Swingline Loan or a Borrowing deemed made pursuant to Section 3.05, as
to which this Section 2.03 shall not apply), the applicable Borrower
shall give the Administrative Agent written or fax notice substantially in the
form of Exhibit K (or telephone notice promptly confirmed in
writing or by fax) (a) in the case of a Eurodollar Borrowing, not later
than 11:00 a.m., Standard Time, three Business Days before a proposed
borrowing, (b) in the case of an ABR Term Borrowing or a B/A Borrowing,
not later than 11:00 a.m., Standard Time, one Business Day before a
proposed borrowing and

 

47

 

(c) in the case of an ABR
Revolving Credit Borrowing, ABR Revolving (Canadian) Credit Borrowing or
Canadian Prime Rate Borrowing, not later than 11:00 a.m., Standard Time,
on the day of a proposed borrowing.  Such
notice shall be irrevocable and shall in each case refer to this Agreement and
specify the following information:

 

(i) the
Borrower requesting such Borrowing;

 

(ii) the Type
(e.g., Eurodollar, ABR, B/A or Canadian Prime Rate) of such Borrowing;

 

(iii) whether
the Borrowing is to be a Revolving Credit Borrowing, Revolving (Canadian)
Credit Borrowing, Tranche B Borrowing, Tranche C Borrowing or
Incremental Term Loan Borrowing;

 

(iv) the
aggregate amount and currency of such Borrowing;

 

(v) the date
of such Borrowing (which shall be a Business Day);

 

(vi) in the
case of a Eurodollar Borrowing, the Interest Period with respect thereto;

 

(vii) in the
case of a B/A Borrowing, the Contract Period and maturity date with respect
thereto; and

 

(viii) the
number and location of the account to which funds are to be disbursed;

 

provided, however,
that, notwithstanding any contrary specification in any such notice, each
requested Borrowing shall comply with the requirements set forth in Section 2.02.  If no election as to the Type of Borrowing is
specified in any such notice, then the requested Borrowing shall be an ABR
Borrowing if denominated in U.S. Dollars and a Canadian Prime Rate Borrowing if
denominated in Canadian Dollars.  If no
Interest Period with respect to any Eurodollar Borrowing (or Contract Period
with respect to a B/A Borrowing) is specified in any such notice, then the
Borrower shall be deemed to have selected an Interest Period (or Contract
Period, in the case of a B/A Borrowing) of one month’s duration.  The Administrative Agent shall promptly
advise the applicable Lenders of any notice given pursuant to this Section 2.03,
and of each such Lender’s portion of the requested Borrowing.

 

SECTION 2.04.  Repayment of Loans; Evidence of Debt.  (a)  SSCE
hereby unconditionally promises to pay (i) to the Administrative Agent,
for the account of each Revolving Lender, the then unpaid principal amount of
each Revolving Loan of such Lender on the Revolving Credit Maturity Date,
(ii) to the Administrative Agent, for the account of (x) each
Tranche B Lender and (y) each Incremental Term Lender that shall have
made Other Term Loans to SSCE, the then unpaid principal amount of each
Tranche B Loan and each such Other Term Loan of such Lender in such amounts
and on such dates as provided in Section 2.11, (iii) to the
Administrative Agent, for the account of each Revolving (Canadian) Lender that
shall have made Revolving (Canadian) Loans

 

48

 

to SSCE, the then unpaid
principal amount of each such Revolving (Canadian) Loan of such Lender on the
Revolving Credit Maturity Date, (iv) to the Administrative Agent, for the
account of each Deposit Funded Lender, the then unpaid principal amount of each
Deposit Funded Loan of such Lender on the Deposit Funded Maturity Date and
(v) to the Swingline Lender the then unpaid principal amount of each
Swingline Loan on the Revolving Credit Maturity Date.  SSC Canada hereby unconditionally promises to
pay (i) to the Canadian Administrative Agent, for the account of each
Revolving (Canadian) Lender that shall have made Revolving (Canadian) Loans to
SSC Canada, the then unpaid principal amount of each such Revolving (Canadian)
Loan of such Lender on the Revolving Credit Maturity Date and (ii) to the
Administrative Agent, for the account of (x) each Tranche C Lender
and (y) each Incremental Term Lender that shall have made Other Term Loans
to SSC Canada, the then unpaid principal amount of each Tranche C Loan and
each such Other Term Loan of such Lender in such amounts and on such dates as
provided in Section 2.11. 
Except for any B/A Loan (the compensation for which is set forth in Section 2.22),
each Loan shall bear interest from and including the date made on the
outstanding principal balance thereof as set forth in Section 2.06.

 

(b)  Each
Lender shall maintain in accordance with its usual practice an account or
accounts evidencing the Indebtedness to such Lender resulting from each Loan
made by such Lender from time to time, including the amounts of principal and
interest payable and paid to such Lender from time to time under this
Agreement.

 

(c)  The
Administrative Agent shall maintain accounts in which it will record
(i) the amount of each Loan made hereunder, the Type of each Loan and the
Interest Period or Contract Period, if any, applicable thereto, (ii) the
amount of any principal or interest due and payable or to become due and
payable from each Borrower to each Lender hereunder, (iii) the amount of
the interest of each Deposit Funded Lender in the Deposit Account (the interest
of each such Lender in the Deposit Account, as evidenced by such records, being
referred to as such Lender’s “Sub-Account”) and (iv) the amount of
any sum received by the Administrative Agent hereunder from any Borrower or any
Guarantor, or from the Deposit Account Agent, and each Lender’s share
thereof.  The Administrative Agent shall
promptly provide to the Deposit Account Agent such information regarding the
Deposit Funded Lenders, the Deposit Funded Loans and the Deposit Funded Letters
of Credit, including the identity of the Deposit Funded Lenders, the amount
credited to each such Lender’s Sub-Account and the outstanding amount of each
such Lender’s Deposit Funded Loan, as the Deposit Account Agent may from time
to time request.  The Deposit Account
Agent shall provide to the Administrative Agent prompt notice of any withdrawal
from (or, in the case of any deposit of amounts received other than from the
Administrative Agent, any deposit into) the Deposit Account, in each case
stating the amount thereof, and the Administrative Agent shall credit or debit,
as applicable, the Sub-Account of each Deposit Funded Lender in the amount of
such Lender’s Applicable Percentage of the amount so withdrawn or deposited.  The Deposit Account Agent shall also provide
to the Administrative Agent such other information with respect to the Deposit
Account as the Administrative Agent may from time to time request.

 

49

 

(d)  The
entries made in the accounts maintained by the Lenders and the Administrative
Agent pursuant to paragraphs (b) and (c) above shall, to the
extent permitted by applicable laws, be prima facie evidence of the existence
and amounts of the obligations therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain such
accounts or any error therein shall not in any manner affect the obligation of
either Borrower to repay the Loans in accordance with their terms.

 

(e)  Any
Lender may request that Loans made by it hereunder be evidenced by a promissory
note.  In response to any such request,
the applicable Borrower shall prepare, execute and deliver to such Lender a
promissory note payable to such Lender and its registered assigns substantially
in the form of Exhibit L, with the blanks appropriately filled in.  Notwithstanding any other provision of this
Agreement, in the event that any Lender shall request and receive such a
promissory note, the Loans evidenced by such promissory note and interest
payable on such Loans shall at all times (including after assignment pursuant
to Section 11.04) be represented by one or more promissory notes,
if any, payable to the order of the payee named therein (or, if such promissory
note is a registered note, to such payee and its registered assigns).

 

SECTION 2.05.  Fees; Deposit Return.  (a)  SSCE
agrees to pay to each Revolving Lender, in respect of the Revolving Credit
Commitment of such Lender, through the Administrative Agent, on each April 1,
July 1, October 1 and January 2 and on each date on which the Revolving Credit
Commitment of such Lender shall expire or be terminated as provided herein, a
commitment fee (a “SSCE Commitment Fee”) equal to the Applicable Rate
per annum in effect from time to time on the daily unused amount of the
Revolving Credit Commitment of such Lender during the preceding quarter (or
shorter period commencing with the Closing Date or ending with the Revolving
Credit Maturity Date or the date on which such Commitment of such Lender shall
be terminated).  The Borrowers agree to
pay to each Revolving (Canadian) Lender, in respect of the Revolving (Canadian)
Credit Commitment of such Lender, through the Canadian Administrative Agent, on
each April 1, July 1, October 1 and January 2 and on each date on which the
Revolving (Canadian) Credit Commitment of such Lender shall expire or be
terminated as provided herein, a commitment fee (a “Canadian Commitment Fee”
and, together with the SSCE Commitment Fee, the “Commitment Fees”) equal
to the Applicable Rate per annum in effect from time to time on the daily
unused amount of the Revolving (Canadian) Credit Commitment of such Lender
during the preceding quarter (or shorter period commencing with the Closing
Date or ending with the Revolving Credit Maturity Date or the date on which
such Commitment of such Lender shall be terminated).  The SSCE Commitment Fees and the Canadian
Commitment Fees shall commence to accrue on and including the Closing Date and,
with respect to any Lender, shall cease to accrue on, but excluding, the date
on which the Revolving Credit Commitment or the Revolving (Canadian) Facility
Commitment, as the case may be, of such Lender shall expire or be terminated as
provided herein.  For purposes of
calculating the SSCE Commitment Fees only, any portion of the Revolving Credit
Commitments unavailable due to outstanding Swingline Loans shall be deemed to
be unused amounts of the Revolving Credit Commitments.

 

50

 

(b)  SSCE
agrees to pay (i) to each Revolving Lender, through the Administrative
Agent, on each April 1, July 1, October 1 and January 2 and on each date on
which the Revolving Credit Commitment of such Lender shall expire or be
terminated as provided herein, a participation fee (a “Revolving Facility LC
Participation Fee”) calculated on such Lender’s Applicable Percentage of
the daily aggregate Revolving Facility LC Exposure (excluding the portion
thereof attributable to unreimbursed LC Disbursements in respect of Revolving
Facility Letters of Credit) during the preceding quarter (or shorter period
commencing with the Closing Date or ending with the Revolving Credit Maturity
Date or the date on which all Revolving Facility Letters of Credit have been
canceled or have expired and the Revolving Credit Commitments of all Lenders
shall have been terminated) at a rate equal to the Applicable Rate per annum in
effect from time to time with respect to Eurodollar Revolving Loans,
(ii) to each Revolving Facility Facing Agent on each April 1, July 1,
October 1 and January 2 and on the date on which all of the Revolving Facility
Letters of Credit issued by such Facing Agent shall have been terminated or
expired, a fronting fee with respect to each Revolving Facility Letter of
Credit issued by it as separately agreed to between SSCE and such Facing Agent
and (iii) to each Revolving Facility Facing Agent, with respect to the
issuance, amendment or transfer of any Revolving Facility Letter of Credit
issued by such Facing Agent and each drawing made thereunder, customary
documentary and processing charges in accordance with such Facing Agent’s
standard schedule for such charges in effect at the time of such issuance,
amendment, transfer or drawing, as the case may be.

 

(c)  SSCE agrees to pay to each Deposit Funded
Lender, through the Administrative Agent, on each April 1, July 1, October 1
and January 2 and on each date on which the Deposit Funded Commitment of such
Lender shall expire or be terminated as provided herein, a fee (the “Deposit
Funded Commitment Fee”) equal to the sum of (i) the Applicable Rate per
annum in effect from time to time with respect to Eurodollar Tranche B Loans plus
(ii) 0.10% per annum, in each case, on the daily amount of the Deposit of such
Lender during the preceding quarter (or shorter period commencing with the
Closing Date or ending with the Deposit Funded Maturity Date or the date on
which the Deposit Funded Commitment of such Lender shall be terminated).  The Deposit Funded Commitment Fee due to each
Deposit Funded Lender shall commence to accrue on and including the Closing
Date and shall cease to accrue on, but excluding, the date on which such
Commitment of such Lender shall expire or be terminated as provided herein.  SSCE agrees to pay to the Deposit Funded
Facility Facing Agent on each April 1, July 1, October 1 and January 2 and on
the date on which all of the Deposit Funded Facility Letters of Credit issued
by such Facing Agent shall have been terminated or expired, a fronting fee with
respect to each Deposit Funded Facility Letter of Credit issued by it as
separately agreed to between SSCE and such Facing Agent, as well as documentary
and processing charges with respect to the issuance, amendment or transfer of
any Deposit Funded Facility Letter of Credit and each drawing made thereunder
in accordance with such Facing Agent’s standard schedule for such charges in
effect at the time of such issuance, amendment, transfer or drawing, as the
case may be.

 

(d)  SSC
Canada agrees to pay (i) to each Revolving (Canadian) Lender, through the
Canadian Administrative Agent, on each April 1, July 1, October 1 and

 

51

 

January 2 and on each date on
which the Revolving (Canadian) Credit Commitment of such Lender shall expire or
be terminated as provided herein, a participation fee (a “Revolving
(Canadian) Facility LC Participation Fee”) calculated on such Lender’s
Applicable Percentage of the daily aggregate Revolving (Canadian) Facility LC
Exposure (excluding the portion thereof attributable to unreimbursed LC
Disbursements in respect of Revolving (Canadian) Facility Letters of Credit)
during the preceding quarter (or shorter period commencing with the Closing
Date or ending with the Revolving Credit Maturity Date or the date on which all
Revolving (Canadian) Facility Letters of Credit have been canceled or have
expired and the Revolving (Canadian) Credit Commitments of all Lenders shall
have been terminated) at a rate equal to the Applicable Rate per annum in
effect from time to time with respect to Eurodollar Revolving (Canadian) Loans,
(ii) to each Revolving (Canadian) Facility Facing Agent on each April 1,
July 1, October 1 and January 2 and on the date on which all of the Revolving
(Canadian) Facility Letters of Credit issued by such Facing Agent shall have
been terminated or expired, a fronting fee with respect to each Revolving
(Canadian) Facility Letter of Credit issued by it as separately agreed to
between SSC Canada and such Facing Agent and (iii) to each Revolving
(Canadian) Facility Facing Agent, with respect to the issuance, amendment or
transfer of any Revolving (Canadian) Facility Letter of Credit issued by such
Facing Agent and each drawing made thereunder, customary documentary and processing
charges in accordance with such Facing Agent’s standard schedule for such
charges in effect at the time of such issuance, amendment, transfer or drawing,
as the case may be.

 

(e)  The
Borrowers agree to pay to the Administrative Agent, for its own account, the
administration fees at the times and in the amounts agreed upon by the
Borrowers and the Administrative Agent.

 

(f)  All
Fees shall be paid on the dates due, in U.S. Dollars in immediately available
funds, to the Administrative Agent or the Canadian Administrative Agent, as
applicable, for distribution as appropriate among the Lenders, except that Fees
payable to any Facing Agent or to the Administrative Agent shall be paid
directly to such Person.  Once paid, none
of the Fees shall be refundable under any circumstances (other than corrections
of errors in payment).  The Commitment
Fees, the Revolving Facility LC Participation Fees and the Revolving (Canadian)
Facility LC Participation Fees shall be computed on the basis of the actual
number of days elapsed in a year of 360 days.

 

(g)  The Deposit Account Agent shall invest, or cause to be
invested, amounts on deposit in the Deposit Account so as to earn a return
thereon (the “Deposit Return”)
for each day at a rate per annum equal to (i) the one month LIBO rate (as such
rate is determined by the Deposit Account Agent on such day (or if such day was
not a Business Day, on the first preceding Business Day) based on rates for
deposits in U.S. Dollars (as set forth by Bloomberg L.P.-page BTMM or any other
comparable publicly available service as may be selected by the Deposit Account
Agent) (the “Benchmark LIBO Rate”)
minus (ii) 0.10% per annum (based on a 365/366 day year).  The Benchmark LIBO Rate will be reset on each
Business Day.  The Deposit Return
accrued through and including each March 31, June 30, September 30 and December
31 shall be paid by the Deposit Account Agent to the Administrative Agent, for
distribution among

 

52

 

the Deposit Funded Lenders, on
the third Business Day following such day, commencing on the first such date to
occur after the Closing Date, and on the date on which all of the Deposit
Funded Commitments shall have been terminated or expired and the Deposit Funded
LC Exposure shall have been reduced to zero. 
No Loan Party shall have any obligation under or in respect of the
provisions of this paragraph (g).

 

SECTION 2.06.  Interest on Loans.  (a)  Subject
to the provisions of Section 2.07, the Loans comprising each ABR
Borrowing shall bear interest (computed on the basis of the actual number of
days elapsed over a year of 365 or 366 days, as the case may be, when the
Alternate Base Rate is determined by reference to the Prime Rate or the U.S.
Base Rate and over a year of 360 days at all other times) at a rate per
annum equal to the Alternate Base Rate plus the Applicable Rate in
effect at such time with respect to such Loans. 
Swingline Loans shall bear interest at the rate applicable to ABR
Revolving Loans.

 

(b)  Subject
to the provisions of Section 2.07, the Loans comprising each
Eurodollar Borrowing shall bear interest (computed on the basis of the actual
number of days elapsed over a year of 360 days) at a rate per annum equal
to the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus
the Applicable Rate in effect at such time with respect to such Loans.

 

(c)  Subject
to the provisions of Section 2.07, the Loans comprising each
Canadian Prime Rate Borrowing shall bear interest (computed on the basis of the
actual number of days elapsed over a year of 365 or 366 days, as the case
may be) at a rate per annum equal to the Canadian Prime Rate plus the
Applicable Rate in effect at such time with respect to such Loans.

 

(d)  Subject
to the provisions of Section 2.07, the Loans comprising each B/A
Borrowing shall be subject to an Acceptance Fee, payable by SSC Canada on the
date of acceptance of the relevant B/A and calculated as set forth in the
definition of the term “Acceptance Fee” in Section 1.01.

 

(e)  Each
Deposit Funded Borrowing shall, initially, be comprised of ABR Loans bearing
interest at a rate applicable to ABR Tranche B Loans and, thereafter, may be
comprised of either ABR Loans or Eurodollar Loans, as SSCE may elect in
accordance with Section 2.10, bearing interest at a rate applicable
to ABR Tranche B Loans or Eurodollar Tranche B Loans, as applicable.

 

(f)  Interest
on each Loan (other than pursuant to a B/A Borrowing) shall be payable on the
Interest Payment Dates applicable to such Loan and at such other times as are
specified in this Agreement.  The
Applicable Rate for each Interest Period or day within an Interest Period, as
the case may be, shall be determined by the Administrative Agent or the Canadian
Administrative Agent, as applicable, and such determination shall be
presumptively correct absent manifest error.

 

(g)  For
the purposes of the Interest Act (Canada) and disclosure thereunder, whenever
any interest or fee to be paid hereunder or in connection herewith is

 

53

 

to be calculated on the basis
of any period of time that is less than a calendar year, the yearly rate of
interest to which the rate used in such calculation is equivalent is the rate
so used multiplied by the actual number of days in the calendar year in which
the same is to be ascertained and divided by 360, 365 or 366, as
applicable.  The rates of interest under
this Agreement are nominal rates, and not effective rates or yields.  The principle of deemed reinvestment of interest
does not apply to any interest calculation under this Agreement.

 

SECTION 2.07.  Default Interest.  If either Borrower shall default in the
payment of the principal of or interest on any Loan or any other amount
becoming due hereunder or under any Loan Document, by acceleration or
otherwise, the applicable Borrower shall on demand from time to time pay
interest, to the extent permitted by law, on such defaulted amount to but
excluding the date of actual payment (after as well as before judgment or bankruptcy)
at a rate per annum (the “Default Rate”) equal to (a) in the case
of any Loan, the rate that would be applicable under Section 2.06
to such Loan plus 2.00% per annum and (b) in the case of any other
amount, the rate that would be applicable under Section 2.06 to an
ABR Term Loan plus 2.00% per annum.

 

SECTION 2.08.  Alternate Rate of Interest.  In the event, and on each occasion, that on
the day two Business Days prior to the commencement of any Interest Period for
a Eurodollar Borrowing the Administrative Agent shall have determined that U.S.
Dollar deposits in the principal amounts of the Loans comprising such Borrowing
are not generally available in the London interbank market, or that the rates
at which such U.S. Dollar deposits are being offered will not adequately and
fairly reflect the cost to a majority in interest of Lenders under the relevant
Credit Facility of making or maintaining their Eurodollar Loans during such
Interest Period, or that reasonable means do not exist for ascertaining the
Adjusted LIBO Rate, the Administrative Agent shall, as soon as practicable
thereafter, give written or fax notice of such determination to each Borrower
and the Lenders.  In the event of any
such determination, any request by either Borrower for such a Eurodollar
Borrowing pursuant to Section 2.03 or 2.10 shall, until the
Administrative Agent shall have advised the Borrowers and the Lenders that the
circumstances giving rise to such notice no longer exist, be deemed to be a
request for an ABR Borrowing.  Each
determination by the Administrative Agent hereunder shall be conclusive absent
manifest error.

 

SECTION 2.09.  Termination and Reduction of Commitments;
Return of Deposits.  (a)  The Term Loan Commitments (other than any
Incremental Term Loan Commitments, which shall terminate in accordance with the
applicable Incremental Term Loan Assumption Agreement) shall terminate at
5:00 p.m., Standard Time, on the Closing Date.  The Revolving Credit Commitments and the
Revolving (Canadian) Credit Commitments shall terminate at 5:00 p.m.,
Standard Time, on the Revolving Credit Maturity Date.  The Deposit Funded Commitments shall
terminate at 5:00 p.m., Standard Time, on the Deposit Funded Maturity
Date.

 

(b)  Upon
at least three Business Days’ prior irrevocable written or fax notice to the
Administrative Agent (and, in the case of termination or reduction of the
Deposit Funded Commitments, the Deposit Account Agent), (i) SSCE may at
any time in

 

54

 

whole permanently terminate, or
from time to time in part permanently reduce, the Tranche B Commitments,
the Revolving Credit Commitments and/or the Deposit Funded Commitments and
(ii) SSC Canada may at any time in whole permanently terminate, or from
time to time in part permanently reduce, the Tranche C Commitments and/or
the Revolving (Canadian) Credit Commitments; provided, however,
that (A) each partial reduction of such Commitments shall be in an
integral multiple of U.S.$1,000,000 and in a minimum principal amount of
U.S.$5,000,000, (B) SSCE shall not be permitted to terminate or reduce the
Revolving Credit Commitments if, as the result of such termination or
reduction, the Revolving Credit Utilization would exceed the aggregate
remaining Revolving Credit Commitments, (C) SSCE shall not be permitted to
terminate or reduce the Deposit Funded Commitments if, as the result of such
termination or reduction, the Deposit Funded Utilization would exceed the
aggregate remaining Deposit Funded Commitments and (D) SSC Canada shall
not be permitted to terminate or reduce the Revolving (Canadian) Credit
Commitments if, as the result of such termination or reduction, the Revolving
(Canadian) Credit Utilization would exceed the aggregate remaining Revolving
(Canadian) Credit Commitments.

 

(c)  The
applicable Borrower shall pay to the Administrative Agent for the account of
the applicable Lenders, on the date of each termination or reduction, the
Commitment Fees and the Deposit Funded Commitment Fees on the amount of the
Commitments so terminated or reduced accrued to, but excluding, the date of
such termination or reduction.

 

(d)  Concurrently
with the effectiveness of each voluntary reduction of the Deposit Funded
Commitments pursuant to and in accordance with paragraph (b) above, (i)
the Administrative Agent shall give notice to the Deposit Account Agent of the
aggregate amount of the Deposit Funded Commitments remaining after giving
effect to such reduction and the aggregate principal amount of the Deposit
Funded Loans outstanding at such time and (b) the Deposit Account Agent shall
withdraw from the Deposit Account and transfer to the Administrative Agent (and
the Administrative Agent shall pay to each Deposit Funded Lender such Lender’s
Applicable Percentage of) any amount by which the aggregate funds on deposit in
the Deposit Account exceed at such time the difference between (A) the
aggregate amount of such Deposit Funded Commitments minus (B) the
aggregate principal amount of such Deposit Funded Loans.

 

(e)  Concurrently
with the effectiveness of the termination in whole of the aggregate Deposit
Funded Commitments pursuant to and in accordance with paragraph (a)
or (b) above or Article VIII, (i) the Administrative Agent
shall give notice to the Deposit Account Agent of the amount of the
Undrawn/Unreimbursed Deposit Funded LC Exposure at such time and (ii) the
Deposit Account Agent shall withdraw from the Deposit Account and transfer to
the Administrative Agent (and the Administrative Agent shall pay to each
Deposit Funded Lender such Lender’s Applicable Percentage (determined
immediately prior to giving effect to the CAM Exchange, if applicable) of) any
amount by which the aggregate funds on deposit in the Deposit Account exceed at
such time the Undrawn/Unreimbursed Deposit Funded LC Exposure.  Thereafter, the Administrative Agent shall
give notice to the Deposit Account Agent of the reduction of the
Undrawn/Unreimbursed Deposit Funded LC Exposure to zero, and,

 

55

 

upon receipt of such notice,
the Deposit Account Agent shall withdraw from the Deposit Account and transfer
to the Administrative Agent (and the Administrative Agent shall pay to each
Deposit Funded Lender such Lender’s Applicable Percentage (determined as
aforesaid) of) all the funds remaining on deposit in the Deposit Account, and
shall close the Deposit Account.

 

(f)  Nothing
in this Section 2.09 shall prejudice any rights that either
Borrower may have against any Lender that fails to lend as required hereunder
prior to the date of termination of any Commitment.

 

SECTION 2.10.  Conversion and Continuation of Borrowings.  Each Borrower shall have the right at any
time upon prior irrevocable notice substantially in the form of Exhibit M
to the Administrative Agent (a) not later than 11:00 a.m., Standard
Time, on the day of the proposed conversion, to convert any Eurodollar
Borrowing into an ABR Borrowing or to convert any B/A Borrowing into a Canadian
Prime Rate Borrowing, (b) not later than 11:00 a.m., Standard Time,
three Business Days prior to conversion or continuation, to convert any ABR
Borrowing into a Eurodollar Borrowing or to continue any Eurodollar Borrowing
as a Eurodollar Borrowing for an additional Interest Period, (c) not later
than 11:00 a.m., Standard Time, three Business Days prior to conversion,
to convert the Interest Period with respect to any Eurodollar Borrowing to
another permissible Interest Period and (d) not later than
11:00 a.m., Standard Time, one Business Day prior to conversion or continuation,
to convert any Canadian Prime Rate Borrowing to a B/A Borrowing or to continue
any B/A Borrowing as a B/A Borrowing for an additional Contract Period, subject
in each case to the following:

 

(i) each
conversion or continuation shall be made pro rata among the Lenders in
accordance with the respective principal amounts of the Loans comprising the
converted or continued Borrowing;

 

(ii) if less
than all the outstanding principal amount of any Borrowing shall be converted
or continued, the aggregate principal amount of such Borrowing converted or
continued shall be in an integral multiple of U.S.$1,000,000 or Cdn.$1,000,000,
as the case may be, and not less than U.S.$10,000,000 or Cdn.$10,000,000;

 

(iii) each
conversion shall be effected by each Lender and the Administrative Agent by
recording the particulars thereof in their respective accounts maintained
pursuant to Section 2.04, and no new Loan shall be considered to have
been made as a result thereof; accrued interest on any Eurodollar Loan (or
portion thereof) being converted shall be paid by the applicable Borrower at
the time of the conversion;

 

(iv) if any
Eurodollar Borrowing is converted at a time other than the end of the Interest
Period applicable thereto, the applicable Borrower shall pay, upon demand, any
amounts due to the Lenders pursuant to Section 2.15;

 

56

 

(v) any
portion of a Borrowing maturing or required to be repaid in less than one month
may not be converted into or continued as a Eurodollar Borrowing or a B/A
Borrowing;

 

(vi) any
portion of a Eurodollar Borrowing or a B/A Borrowing that cannot be converted
into or continued as a Eurodollar Borrowing or a B/A Borrowing by reason of clause
(v) above shall be automatically converted at the end of the Interest
Period or Contract Period in effect for such Borrowing into an ABR Borrowing or
a Canadian Prime Rate Borrowing, as the case may be;

 

(vii) no
Interest Period may be selected for any Eurodollar Term Borrowing that would
end later than any applicable Term Loan Repayment Date occurring on or after
the first day of such Interest Period if, after giving effect to such
selection, the aggregate outstanding amount of (A) the Eurodollar Term
Borrowings with Interest Periods ending on or prior to such Term Loan Repayment
Date and (B) the ABR Term Borrowings would not be at least equal to the
principal amount of Term Borrowings to be paid on such Term Loan Repayment
Date;

 

(viii) no B/A
Borrowing may be converted or continued other than at the end of the Contract
Period applicable thereto; and

 

(ix) upon
notice to the Borrowers from the Administrative Agent given at the request of
the Required Lenders, after the occurrence and during the continuance of a
Default or Event of Default, no outstanding Loan may be converted into, or
continued as, a Eurodollar Loan or a B/A Loan.

 

Each notice pursuant to this Section 2.10
shall be irrevocable and shall refer to this Agreement and specify (A) the
identity, amount and Class of the Borrowing that the Borrower requests be
converted or continued, (B) whether such Borrowing is to be converted to
or continued as a Eurodollar Borrowing, an ABR Borrowing, a B/A Borrowing or a
Canadian Prime Rate Borrowing, (C) if such notice requests a conversion,
the date of such conversion (which shall be a Business Day) and (D) if
such Borrowing is to be converted to or continued as a Eurodollar Borrowing or
a B/A Borrowing, the Interest Period or Contract Period, respectively, with
respect thereto.  If no Interest Period
or Contract Period is specified in any such notice with respect to any
conversion to or continuation as a Eurodollar Borrowing or a B/A Borrowing,
respectively, the applicable Borrower shall be deemed to have selected an
Interest Period or Contract Period of one month’s duration.  The Administrative Agent shall advise the
applicable Lenders of any notice given pursuant to this Section 2.10
and of each Lender’s portion of any converted or continued Borrowing.  If the applicable Borrower shall not have
given notice in accordance with this Section 2.10 to continue any
Borrowing into a subsequent Interest Period or Contract Period (and shall not
otherwise have given notice in accordance with this Section 2.10 to
convert such Borrowing), such Borrowing shall, at the end of the Interest
Period applicable thereto (unless repaid pursuant to the terms

 

57

 

hereof), automatically be
continued into a new Interest Period as an ABR Borrowing or a Canadian Prime
Rate Borrowing, as applicable.

 

SECTION 2.11.  Repayment of Term Borrowings.  (a)  SSCE
shall pay to the Administrative Agent, for the account of the Tranche B
Lenders, on the dates set forth below, or if any such date is not a Business
Day, on the next succeeding Business Day (each such date being a “Tranche B
Repayment Date”), a principal amount of Tranche B Loans (such amount,
as adjusted from time to time pursuant to Sections 2.12, 2.13(f),
2.13(j) and 2.23(f), being called the “Tranche B Repayment
Amount”) equal to the amount set forth below for such date:

 

	
  Date

  	
   

  	
  Amount

  	
   

  
	
  April 1, 2005

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  July 1, 2005

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  October 1, 2005

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  January 2, 2006

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  April 1, 2006

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  July 1, 2006

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  October 1, 2006

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  January 2, 2007

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  April 1, 2007

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  July 1, 2007

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  October 1, 2007

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  January 2, 2008

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  April 1, 2008

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  July 1, 2008

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  October 1, 2008

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  January 2, 2009

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  April 1, 2009

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  July 1, 2009

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  October 1, 2009

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  January 2, 2010

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  April 1, 2010

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  July 1, 2010

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  October 1, 2010

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  January 2, 2011

  	
   

  	
  U.S.$

  	
  2,437,500

  	
   

  
	
  April 1, 2011

  	
   

  	
  U.S.$

  	
  229,125,000

  	
   

  
	
  July 1, 2011

  	
   

  	
  U.S.$

  	
  229,125,000

  	
   

  
	
  October 1, 2011

  	
   

  	
  U.S.$

  	
  229,125,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  U.S.$

  	
  229,125,000

  	
   

  

 

(b)  Subject
to Section 2.13(j), SSC Canada shall pay to the Administrative
Agent, for the account of the Tranche C Lenders, on the dates set forth
below, or if any such date is not a Business Day, on the next succeeding
Business Day (each such date being a “Tranche C Repayment Date”), a
principal amount of Tranche C Loans (such amount, as adjusted from time to
time pursuant to Sections 2.12, 2.13(f) and 2.23(f),

 

58

 

being called the “Tranche C
Repayment Amount”) equal to the amount set forth below for such date:

 

	
  Date

  	
   

  	
  Amount

  	
   

  
	
  April 1, 2005

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  July 1, 2005

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  October 1, 2005

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  January 2, 2006

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  April 1, 2006

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  July 1, 2006

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  October 1, 2006

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  January 2, 2007

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  April 1, 2007

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  July 1, 2007

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  October 1, 2007

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  January 2, 2008

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  April 1, 2008

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  July 1, 2008

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  October 1, 2008

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  January 2, 2009

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  April 1, 2009

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  July 1, 2009

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  October 1, 2009

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  January 2, 2010

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  April 1, 2010

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  July 1, 2010

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  October 1, 2010

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  January 2, 2011

  	
   

  	
  U.S.$

  	
  750,000

  	
   

  
	
  April 1, 2011

  	
   

  	
  U.S.$

  	
  70,500,000

  	
   

  
	
  July 1, 2011

  	
   

  	
  U.S.$

  	
  70,500,000

  	
   

  
	
  October 1, 2011

  	
   

  	
  U.S.$

  	
  70,500,000

  	
   

  
	
  Term Loan Maturity Date

  	
   

  	
  U.S.$

  	
  70,500,000

  	
   

  

 

(c)  Subject
to Section 2.13(j) in the case of Other Term Loans made to SSC Canada,
the applicable Borrower shall pay to the Administrative Agent, for the account
of the applicable Incremental Term Lenders, on each Incremental Term Loan
Repayment Date, a principal amount of the Other Term Loans (such amount, as
adjusted from time to time pursuant to Sections 2.12, 2.13(f)
and 2.13(j), being called the “Incremental Term Loan Repayment Amount”)
equal to the amount set forth for such date in the applicable Incremental Term
Loan Assumption Agreement.

 

(d)  To
the extent not previously paid, all Term Loans and Other Term Loans shall be
due and payable on the Term Loan Maturity Date and Incremental Term Loan
Maturity Date, respectively.

 

(e)  All
repayments pursuant to this Section 2.11 shall be subject to Section 2.15
and shall be accompanied by accrued and unpaid interest on the principal

 

59

 

amount paid to but excluding
the date of payment, but shall otherwise be without premium or penalty.

 

SECTION 2.12.  Optional Prepayments.  (a)  Each
Borrower shall have the right at any time and from time to time to prepay any
Borrowing (other than Bankers’ Acceptances or B/A Equivalent Loans, which may,
however, be defeased as provided below), in whole or in part, upon written or
fax notice (or telephone notice promptly confirmed by written or fax notice)
delivered to the Administrative Agent (and, in the case of prepayment of a
Swingline Loan, the Swingline Lender) (i) by 11:00 a.m., Standard
Time, at least three Business Days prior to the date designated for such
prepayment, in the case of any prepayment of a Eurodollar Borrowing, or
(ii) by 11:00 a.m., Standard Time, on the date designated for such
prepayment in the case of any prepayment of an ABR Borrowing or a Canadian
Prime Rate Borrowing; provided,  however,
that each partial payment shall be in an amount that is an integral multiple of
U.S.$1,000,000 (or Cdn.$1,000,000 in the case of Borrowings denominated in
Canadian Dollars) and, in the case of a Eurodollar Borrowing, not less than
U.S.$5,000,000 (or, in each case, the entire amount of the Borrowing being
prepaid); and provided  further that SSC Canada may defease any
B/A or B/A Equivalent Loan by depositing with the Canadian Administrative Agent
an amount that, together with interest accruing on such amount to the end of
the Contract Period for such B/A or B/A Equivalent Loan at such rate as the
Canadian Administrative Agent shall specify upon receipt of such amount, is
sufficient to pay such maturing B/A or B/A Equivalent Loan when due.

 

(b)  Optional
prepayments of Term Loans made by the Borrowers pursuant to paragraph (a) above
shall be allocated among the Term Loans (and to the remaining scheduled
installments of principal with respect to any such Term Loans) in a manner
determined at the discretion of the Borrowers.

 

(c)  Each
notice of optional prepayment shall specify (i) the amount to be prepaid,
(ii) the prepayment date, (iii) the Class of Loans to be prepaid and
(iv) the allocation of the amount specified pursuant to clause (i) among
the Loans specified pursuant to clause (iii).  Each notice of optional prepayment shall be
irrevocable and shall commit the applicable Borrower to prepay such obligations
by the amount specified therein on the date specified therein.  All prepayments pursuant to this Section 2.12
shall be subject to Section 2.15 and shall be accompanied by
accrued and unpaid interest on the principal amount paid to but excluding the
date of payment, but shall otherwise be without premium or penalty.

 

(d)  No
optional prepayment of Term Loans made by either Borrower pursuant to this Section 2.12
shall reduce the applicable Borrower’s obligation to make mandatory prepayments
pursuant to Section 2.13(b), (c) or (d).

 

SECTION 2.13.  Mandatory Prepayments.  (a)  On
the date of any termination or reduction of the Revolving Credit Commitments
pursuant to Section 2.09, SSCE shall pay or prepay so much of the
then outstanding Swingline Loans and the then outstanding Revolving Credit
Borrowings (and/or cash collateralize outstanding Revolving Facility Letters of
Credit) as shall be necessary in order that the aggregate

 

60

 

Revolving Credit Utilization at
such time shall not exceed the aggregate Revolving Credit Commitments (after
giving effect to such termination or reduction).  On the date of any termination or reduction
of the Revolving (Canadian) Credit Commitments pursuant to Section 2.09,
the Borrowers shall pay or prepay so much of the then outstanding Revolving
(Canadian) Credit Borrowings (and/or SSC Canada shall cash collateralize
outstanding Revolving (Canadian) Facility Letters of Credit and defease B/As
and B/A Equivalent Loans) as shall be necessary in order that the aggregate
Revolving (Canadian) Credit Utilization at such time shall not exceed the
aggregate Revolving (Canadian) Credit Commitments (after giving effect to such
termination or reduction).  On the date
of any termination or reduction of the Deposit Funded Commitments pursuant to Section 2.09,
SSCE shall pay or prepay so much of the then outstanding Deposit Funded Loans
(and/or cash collateralize outstanding Deposit Funded Facility Letters of
Credit) as shall be necessary in order that the Deposit Funded Utilization at
such time shall not exceed the aggregate Deposit Funded Commitments (after
giving effect to such termination and reduction).

 

(b)  Subject
to Section 2.13(j), no later than the third Business Day following the
determination of the amount of Net Cash Proceeds received in respect of any
Asset Sale occurring on or after the Closing Date, the Borrowers shall apply an
amount equal to 100% of such Net Cash Proceeds to prepay outstanding Term Loans
in accordance with Section 2.13(f); provided, however,
that if (i) at any time prior to the due date of such prepayment, SSCE delivers
a certificate of its Financial Officer to the Administrative Agent setting
forth its intent (A) in the case of the Pontiac Sale, to use the Net Cash
Proceeds received in respect thereof (x) to redeem, repurchase or otherwise
extinguish, or to cause the Subsidiaries to redeem, repurchase or otherwise
extinguish, their outstanding Indebtedness in accordance with Section 7.09(a),
(y) to reinvest, or to cause the Subsidiaries to reinvest, such Net Cash
Proceeds in assets that are used or useful in the business of SSCC and the
Subsidiaries or (z) to use, or to cause its Subsidiaries to use, such Net
Cash Proceeds for acquisitions or purchases permitted by Section 7.05,
or (B) in the case of any other Asset Sale, to reinvest, or to cause the
Subsidiaries to reinvest, the Net Cash Proceeds received in respect thereof,
not in excess of U.S.$250,000,000 in the aggregate for all Asset Sales, within
360 days after the receipt thereof, in assets that are used or useful in the
business of SSCC and the Subsidiaries and (ii) no Default or Event of Default
shall have occurred and be continuing at the time such certificate is
delivered, then no prepayment of Term Loans shall be required pursuant to this paragraph
(b), except to the extent such Net Cash Proceeds are not so applied.

 

(c)  Subject
to Section 2.13(j), no later than the earlier of (i) 90 days
after the end of each fiscal year of SSCC, commencing with the fiscal year
ending on December 31, 2005, and (ii) the date on which the financial
statements with respect to such period are delivered pursuant to Section 6.04(a),
the Borrowers shall prepay outstanding Term Loans in accordance with Section 2.13(f)
in an aggregate principal amount equal to 50% of the amount of Excess Cash Flow
that is in excess of U.S.$100,000,000 for the fiscal year then ended.

 

(d)  Subject
to Section 2.13(j), in the event that SSCC or any Subsidiary shall
receive Net Cash Proceeds from the issuance or other disposition of
Indebtedness

 

61

 

for money borrowed of SSCC or
such Subsidiary (other than Indebtedness for money borrowed permitted pursuant
to Section 7.01 (other than clause (s) thereof), the
Borrowers shall reasonably promptly therewith (and in any event not later than
the third Business Day next following) the receipt of such Net Cash Proceeds by
SSCC or any Subsidiary, apply an amount equal to 100% of such Net Cash Proceeds
to prepay outstanding Term Loans in accordance with Section 2.13(f).

 

(e)  If
on any date, as a result of fluctuations in the Exchange Rate, the Administrative
Agent determines that the aggregate Revolving (Canadian) Credit Utilization
shall have exceeded for more than three consecutive Business Days an amount
equal to 105% of the total Revolving (Canadian) Credit Commitments, the
Administrative Agent shall notify the Borrowers of such occurrence and the
Borrowers shall on the next succeeding Business Day prepay Revolving (Canadian)
Loans in an amount sufficient to eliminate such excess.

 

(f)  Subject
to Section 2.13(j), mandatory prepayments of Term Loans pursuant to
paragraphs (b), (c) and (d) above shall be allocated
pro rata among the Classes of Term Loans and, within each Class and subject to paragraph (i)
below, shall be applied to reduce ratably the remaining Term Loan Repayment
Amounts for such Class; provided, however, that, subject to Section
2.16 (i) the Borrowers may allocate and apply up to U.S.$100,000,000
of Excess Cash Flow required to be used to prepay Term Loans hereunder in any
year to any Class or Classes of Term Loans and the remaining Term Loan
Repayment Amounts for each such Class at their discretion and (ii) mandatory
prepayments of the Term Loans from Asset Sales shall be applied as follows:
(A) in the case of assets owned by SSCC, SSCE or any Domestic Subsidiary
(other than any Domestic Subsidiary that is a subsidiary of a Canadian
Subsidiary), to Tranche B Loans and Other Term Loans made to SSCE until
and unless such Term Loans have been paid in full and, thereafter, to the other
Term Loans in accordance with this paragraph (f), and (B) in the
case of assets owned by any Canadian Subsidiary or any subsidiaries of a
Canadian Subsidiary, to the Tranche C Loans and Other Term Loans made to
SSC Canada until and unless such Term Loans have been paid in full and,
thereafter, to the other Term Loans in accordance with this paragraph (f).

 

(g)  The
applicable Borrower shall deliver to the Administrative Agent, (i) at the
time of each prepayment by such Borrower required under paragraph (b),
(c) or (d) above, a certificate signed by a Financial Officer of
such Borrower setting forth in reasonable detail the calculation of the amount
of such prepayment and (ii) at least three Business Days prior to the time
of each prepayment required under this Section 2.13, a notice of
such prepayment.  Each notice of
prepayment shall specify the prepayment date, the Class and Type of each Loan
being prepaid (which specification shall comply with this Section 2.13)
and the principal amount of each Term Loan (or portion thereof) to be
prepaid.  All prepayments of Borrowings
under this Section 2.13 shall be subject to Section 2.15
and shall be accompanied by accrued but unpaid interest on the principal amount
paid to but excluding the date of payment, but shall otherwise be without
premium or penalty.

 

62

 

(h)  To
the extent consistent with paragraph (f) above, amounts to be
applied pursuant to this Section 2.13 to the prepayment of Loans
shall be applied to reduce outstanding ABR Loans and, if applicable, Canadian
Prime Rate Loans prior to being applied to reduce Loans of any other Type.  In the case of any mandatory prepayment of
Eurodollar Loans pursuant to this Section 2.13 (other than any
mandatory prepayment of Loans of any Class required in connection with the expiration
or termination in whole of Commitments of such Class), the applicable Borrower
may, at its option, deposit into the Prepayment Account (as defined below) an
amount in cash equal to such mandatory prepayment rather than prepaying such
Loan on the date otherwise due pursuant to this Section 2.13.  The Administrative Agent shall apply any cash
deposited into the Prepayment Account solely to prepay Eurodollar Loans with
respect to which such deposit has been made on the last day of the applicable
Interest Periods (or on an earlier date if (i) directed to do so by the
applicable Borrower or (ii) an Event of Default shall have occurred and is
continuing).  For purposes of this
Agreement, the term “Prepayment Account” shall mean an account
established by the applicable Borrower with the Administrative Agent and over
which the Administrative Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal for application in accordance with
this paragraph (h).  Each
Borrower hereby grants to the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, a security interest in the Prepayment
Account to secure the Obligations owed to such Persons.  The Administrative Agent will, at the request
of the applicable Borrower, invest amounts on deposit in the Prepayment Account
in Permitted Investments that mature prior to the last day of the applicable
Interest Periods of the Eurodollar Borrowings to be prepaid; provided, however,
that (A) the Administrative Agent shall not be required to make any
investment that, in its sole judgment, would result in any violation of any
law, statute, rule or regulation and (B) the Administrative Agent shall
have no obligation to invest amounts on deposit in the Prepayment Account if a
Default or an Event of Default shall have occurred and be continuing.  The Borrowers shall indemnify the
Administrative Agent for any losses relating to the investments so that the
amount available to prepay Eurodollar Borrowings on the day due pursuant to the
third preceding sentence is not less than the amount that would have been
available had no investments been made pursuant thereto.  So long as no Default or Event of Default
shall have occurred and be continuing, interest or profits, if any, resulting
from investment of amounts on deposit in the Prepayment Account shall be
distributed by the Administrative Agent to the applicable Borrower upon the
payment of the Eurodollar Borrowing with respect to which such deposit has been
made.  Other than any interest or profits
resulting from such investments, the Prepayment Account shall not bear
interest.

 

(i)  Notwithstanding
the requirements of paragraph (f) above and provided that no
Default or Event of Default shall have occurred and be continuing, with respect
to any mandatory prepayment of Term Loans required pursuant to this Section
2.13, the Borrowers may, not less than 10 nor more than 20 Business
Days prior to the date specified for such prepayment (the “Mandatory
Prepayment Date”), provide to each Term Lender a written notice that shall
refer to this paragraph (i) and shall (i) set forth the amount of
such prepayment (the “Prepayment Amount”) and the portion thereof that
the applicable Term Lender (each, a “Prepayment Lender”) would be
entitled to receive if it accepts such mandatory prepayment in accordance with
this paragraph (i), (ii) request

 

63

 

such Prepayment Lender to
notify the Borrowers and the Administrative Agent in writing no later than the Business
Day prior to the Mandatory Prepayment Date of such Prepayment Lender’s
acceptance or rejection (in each case, in whole and not in part) of its share
of the Prepayment Amount and (iii) inform such Prepayment Lender that
failure by such Prepayment Lender to reject in writing its share of the
Prepayment Amount on or before the Business Day prior to the Mandatory
Prepayment Date shall be deemed to be an acceptance of such amount.  On the Mandatory Prepayment Date, the
Borrowers shall prepay that portion of the Prepayment Amount in respect of
which such Prepayment Lenders have accepted prepayment as described above (such
Prepayment Lenders, the “Accepting Lenders”), such prepayment to be
applied pro rata to the remaining Term Loan Repayment Amounts for the
applicable Class of Term Loans.  So long
as no Default or Event of Default shall have occurred and be continuing, SSCC
and the Subsidiaries shall apply any portion of the Prepayment Amount not
applied as provided in the immediately preceding sentence to the repayment of
Indebtedness of SSCC and the Subsidiaries maturing on or prior to the Term Loan
Maturity Date.  In the event that any
provision of this Section 2.13 requires prepayment of the Term
Loans prior to the selected Mandatory Prepayment Date, the Borrowers shall
deposit the entire amount of the Prepayment Amount into an account under the
exclusive control and dominion of the Administrative Agent.

 

(j)  Notwithstanding
anything to the contrary contained in this Agreement, no prepayment of the Tranche C
Loans or Other Term Loans made to SSC Canada shall be required to be made under
Section 2.11 or this Section 2.13 to the extent that
such prepayment or the obligation to make such prepayment would result in SSC
Canada being obligated under any circumstances to pay more than 25% of the
original principal amount of the Tranche C Loans or such Other Term Loans
(the “Threshold Amount”) prior to the fifth anniversary of the
respective dates on which such Loans were made. 
The amount of such prepayments in excess of the Threshold Amount (the “Excess
Amount”) will be allocated pro rata to the further prepayment of the
Tranche B Loans and Other Term Loans made to SSCE and applied pro rata to
the remaining Term Loan Repayment Amounts for Loans of such Classes until such
Loans have been paid in full.  On the
Business Day immediately after the fifth anniversary of the date on which such
Loans were respectively made, the Excess Amount not previously applied to the
further prepayment of the Tranche B Loans and Other Term Loans made to
SSCE shall be paid pro rata to the Tranche C Lenders and Incremental Term
Lenders that shall have made Other Term Loans to SSC Canada and shall be
applied pro rata to the remaining Term Loan Repayment Amounts for Loans of such
Classes.

 

SECTION 2.14.  Reserve Requirements; Change in
Circumstances; Increased Costs.  (a)  Notwithstanding any other provision herein,
if after the Closing Date any change in applicable law or regulation or in the
interpretation or administration thereof by any Governmental Authority charged
with the interpretation or administration thereof (whether or not having the
force of law) shall impose, modify or deem applicable any reserve, special
deposit or similar requirement against assets of, deposits with or for the
account of or credit extended by any Lender or any Facing Agent (except any
such reserve requirement that is reflected in the Adjusted LIBO Rate, the
Alternate Base Rate or the Canadian Prime Rate) or shall impose on any Lender
or any Facing Agent or the

 

64

 

London or Canadian interbank
market any other condition affecting this Agreement or Loans made by such
Lender or any Letter of Credit obligations, and the result of any of the
foregoing shall be to increase the cost to such Lender of making or maintaining
any Loan or of issuing or maintaining any Letter of Credit or purchasing or
maintaining a participation therein or to reduce the amount of any sum received
or receivable by any Lender or any Facing Agent hereunder (whether of
principal, interest or otherwise) by an amount deemed by such Lender or such
Facing Agent to be material, then the applicable Borrower will pay to such
Lender or such Facing Agent, following receipt by such Borrower of a certificate
of such Lender or such Facing Agent to such effect in accordance with Section 2.14(c),
such additional amount or amounts as will compensate such Lender or such Facing
Agent on an after-tax basis for such additional costs incurred or reduction
suffered; provided, however, that none the Lenders or the Facing
Agents shall be entitled to demand compensation pursuant to this paragraph (a) if
it shall not be the general practice of such Lender or such Facing Agent, as
applicable, to demand such compensation in similar circumstances under
comparable provisions of other comparable credit agreements.

 

(b)  If
any Lender or any Facing Agent shall have determined that the adoption after
the Closing Date of any law, rule, regulation, agreement or guideline regarding
capital adequacy, or any change in any of the foregoing or in the
interpretation or administration of any of the foregoing by any Governmental
Authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or any lending office of
such Lender) or Facing Agent or any Lender’s or any Facing Agent’s holding
company, if any, with any request or directive regarding capital adequacy
issued under any law, rule, regulation or guideline (whether or not having the
force of law) of any such Governmental Authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on such
Lender’s or such Facing Agent’s capital or on the capital of such Lender’s or
such Facing Agent’s holding company, if any, as a consequence of this Agreement
or the Loans made by, or participations in Letters of Credit held by, such
Lender, or the Letters of Credit issued by such Facing Agent pursuant hereto,
to a level below that which such Lender or such Facing Agent or such Lender’s
or such Facing Agent’s holding company, if any, could have achieved but for
such applicability, adoption, change or compliance (taking into consideration
such Lender’s or such Facing Agent’s policies and the policies of such Lender’s
or such Facing Agent’s holding company, if any, with respect to capital
adequacy) by an amount deemed by such Lender or such Facing Agent to be
material, then from time to time the applicable Borrower shall pay to such
Lender or such Facing Agent, following receipt by such Borrower of a
certificate of such Lender or such Facing Agent to such effect in accordance
with Section 2.14(c), such additional amount or amounts as will
compensate such Lender or such Facing Agent or such Lender’s or such Facing
Agent’s holding company, if any, on an after-tax basis for any such reduction
suffered; provided, however, that none of the Lenders or Facing
Agents shall be entitled to demand compensation pursuant to this paragraph (b) if
it shall not be the general practice of such Lender or such Facing Agent, as
applicable, to demand such compensation in similar circumstances under
comparable provisions of other comparable credit agreements.

 

65

 

(c)  A
certificate of a Lender or a Facing Agent setting forth such amount or amounts
as shall be necessary to compensate such Lender or such Facing Agent or its
holding company, if any, as specified in paragraph (a) or (b)
above, as the case may be, and setting forth in reasonable detail an
explanation of the basis of requesting such compensation in accordance with paragraph (a)
or (b) above, including calculations in reasonable detail, shall be
delivered to the applicable Borrower and shall be conclusive absent manifest
error.  The applicable Borrower shall pay
such Lender or such Facing Agent the amount shown as due on any such
certificate delivered by it within 10 days after such Borrower’s receipt
of the same.

 

(d)  Failure
on the part of any Lender or any Facing Agent to demand compensation for any
increased costs or reduction in amounts received or receivable or reduction in
return on capital with respect to any period shall not constitute a waiver of
such Lender’s or such Facing Agent’s right to demand compensation with respect
to such period or any other period, except that none of the Lenders or Facing
Agents shall be entitled to compensation under this Section 2.14
for any costs incurred or reduction suffered with respect to any date unless
such Lender or such Facing Agent, as applicable, shall have notified the
applicable Borrower that it will demand compensation for such costs or
reductions under paragraph (c) above not more than six months after
the later of (i) such date and (ii) the date on which such Lender or
such Facing Agent, as applicable, shall have become aware of such costs or
reductions.  The benefits of this Section 2.14
shall be available to each Lender and each Facing Agent regardless of any
possible contention of the invalidity or inapplicability of the law, rule,
regulation, guideline or other change or condition that shall have occurred or
been imposed.

 

SECTION 2.15.  Indemnity.  Each Borrower shall indemnify each Lender
against any loss or expense that such Lender may sustain or incur with respect
to Eurodollar Loans or B/A Loans as a consequence of (a) any failure by
such Borrower to fulfill on the date of any Borrowing hereunder the applicable
conditions set forth in Article V, (b) any failure by such
Borrower to borrow or to convert or continue any Loan hereunder after
irrevocable notice of such borrowing, conversion or continuation has been given
pursuant to Section 2.03 or 2.10, (c) any payment,
prepayment or conversion of a Eurodollar Loan or B/A Loan required or permitted
by any other provision of this Agreement or otherwise, or any assignment of a
Eurodollar Loan or B/A Loan required by Section 2.20(b), in each
case made or deemed made on a date other than the last day of the Interest
Period or Contract Period, as the case may be, applicable thereto, (d) any
purchase of a participation pursuant to Article X of a Eurodollar
Loan or a B/A Loan of such Borrower otherwise made or deemed made on a date
other than the last day of the Interest Period or Contract Period, as the case
may be, applicable thereto, or (e) any default in payment or prepayment of
the principal amount of any Loan or any part thereof or interest accrued
thereon, as and when due and payable (at the due date thereof, whether at
scheduled maturity, by acceleration, irrevocable notice of prepayment or
otherwise), including, in each such case, any loss or reasonable expense
sustained or incurred or to be sustained or incurred in liquidating or
employing deposits from third parties acquired to effect or maintain such Loan
or any part thereof as a Eurodollar Loan or B/A Loan, as the case may be.  Such loss or reasonable expense shall be
equal to the sum of (i) such Lender’s actual costs and expenses incurred
(other than any lost profits)

 

66

 

in connection with, or by
reason of, any of the foregoing events and (ii) an amount equal to the
excess, if any, as reasonably determined by such Lender, of (A) its cost
of obtaining the funds for the Loan being paid, prepaid, converted or not borrowed,
converted or continued (assumed to be the Adjusted LIBO Rate or the Discount
Rate, as applicable, applicable thereto) for the period from and including the
date of such payment, prepayment, conversion or failure to borrow, convert or
continue to but excluding the last day of the Interest Period or Contract
Period, as the case may be, for such Loan (or, in the case of a failure to
borrow, convert or continue, the Interest Period or Contract Period for such
Loan that would have commenced on the date of such failure) over (B) the
amount of interest (as reasonably determined by such Lender) that would be
realized by such Lender in reemploying the funds so paid, prepaid, converted or
not borrowed, converted or continued for such period, Interest Period or
Contract Period, as the case may be.  A
certificate of any Lender setting forth any amount or amounts, including
calculations in reasonable detail, that such Lender is entitled to receive
pursuant to this Section 2.15 shall be delivered to the applicable
Borrower and shall be conclusive absent manifest error.

 

SECTION 2.16.  Pro Rata Treatment.  Except as permitted under Section 2.13(i)
and other than in connection with Swingline Loans, each Borrowing, each payment
or prepayment of principal of any Borrowing, each payment of interest on the
Loans, each payment of the Deposit Return and the Fees due to the Lenders, each
reduction of the Commitments of a Class and each conversion of any Borrowing to
or continuation of any Borrowing as a Borrowing of any Type shall be allocated
pro rata among the Lenders in accordance with their respective applicable
Commitments (provided that (x) in the case of Term Loans or
(y) in the event that such Commitments shall have expired or been
terminated, such pro rata allocation shall be based on the respective principal
amounts of the outstanding Loans (other than Swingline Loans) and/or
participations in LC Disbursements and Swingline Loans, as applicable).  Each Lender agrees that in computing such
Lender’s portion of any Borrowing to be made hereunder, the Administrative
Agent may, in its discretion, round each Lender’s percentage of such Borrowing,
computed in accordance with Section 2.01, to the next higher or
lower whole U.S. Dollar or Canadian Dollar amount, as applicable.  In addition, each Lender agrees that the
Administrative Agent may, in its sole discretion, increase or reduce any
Revolving (Canadian) Lender’s portion of a B/A Loan to the extent provided in Section 2.22(e).

 

SECTION 2.17.  Sharing of Setoffs and Realization of
Security.  Each Lender agrees that if
it shall through the exercise of a right of banker’s lien, combination of
accounts, setoff or counterclaim against any Loan Party, or pursuant to a
secured claim under any applicable Insolvency Law or other security or interest
arising from, or in lieu of, such secured claim, received by such Lender under
any applicable Insolvency Law or otherwise, or pursuant to any Bank Act
Security held by such Lender, or by any other means, obtain payment (voluntary
or involuntary) in respect of any Loans or participations in LC Disbursements
and accrued interest thereon as a result of which the unpaid principal portion
of its Loans and participations in LC Disbursements and accrued interest
thereon shall be proportionately less than the unpaid principal portion of the
Loans and participations in LC Disbursements and accrued interest thereon of
any other

 

67

 

Lender, such Lender shall be
deemed simultaneously to have purchased from such other Lender at face value,
and shall promptly pay to such other Lender the purchase price for, a
participation in the Loans and participations in LC Disbursements and accrued
interest thereon of such other Lender, so that the benefit of all such payments
shall be shared by the Lenders ratably in accordance with the aggregate amount
of the principal of and accrued interest on their respective Loans and
participations in LC Disbursements; provided, however, that if
any such purchase or purchases or adjustments shall be made pursuant to this Section 2.17
and the payment giving rise thereto shall thereafter be recovered, such
purchase or purchases or adjustments shall be rescinded to the extent of such
recovery and the purchase price or prices or adjustment restored without
interest.  Each Borrower expressly
consents to the foregoing arrangements and agrees that any Lender holding a
participation pursuant to the foregoing arrangements may, subject to the terms
of Section 11.06, exercise any and all rights of banker’s lien,
combination of accounts or setoff with respect to any and all moneys owing by
the Loan Parties to such Lender by reason thereof as fully as if such Lender
were a direct creditor of such Borrower in the amount of such participation.

 

SECTION 2.18.  Payments.  (a)  Each
Borrower shall make each payment (including payment of principal of or interest
on any Loan or any Fees) hereunder and under any other Loan Document not later
than 12:00 noon, Standard Time, on the date when due in immediately available
funds, without defense, setoff or counterclaim. 
All payments hereunder of principal or interest in respect of any Loan
(or of any breakage indemnity in respect of any Loan) shall be made in the
currency of such Loan; all other payments hereunder and under each other Loan
Document shall be made in U.S. Dollars, except as otherwise expressly
provided.  Each such payment (other than
(i) the payments specified in Sections 2.05 and 3.05 to
be made to the Facing Agents, which shall be paid directly to the applicable
Facing Agent, (ii) payments of principal of and interest on Swingline
Loans, which shall be paid directly to the Swingline Lender, except as set
forth in Section 2.21(c), and (iii) payments pursuant to Sections
2.14, 2.15, 2.19 and 11.05, which shall be made to the
Persons entitled thereto) shall be made to such account of the Administrative
Agent or the Canadian Administrative Agent, as applicable, as such agent shall
specify by notice to the applicable Borrower. 
Payments made directly to a Facing Agent shall be made to such account
of the Facing Agent as such Facing Agent shall specify by notice to the
applicable Borrower.  Payments made
directly to the Swingline Lender shall be made to such account of the Swingline
Lender as the Swingline Lender shall specify by notice to SSCE.  Any payments received by the Administrative
Agent, the Canadian Administrative Agent, any Facing Agent or the Swingline
Lender after the specified time for receipt of such payment on any day shall be
deemed to have been received on the next Business Day.  The Administrative Agent or the Canadian
Administrative Agent, as applicable, shall distribute to the applicable Lenders
all payments received by it for their respective accounts, promptly following
receipt thereof; provided, however, that in case of any
prepayment of the Deposit Funded Loans pursuant to Section 2.12 or 2.13,
the Administrative Agent shall not so distribute any payments received by it,
but shall instead remit all such payments promptly following receipt thereof to
the Deposit Account Agent, and the Deposit Account Agent shall deposit all such
payments received by it into the Deposit Account promptly following receipt
thereof.

 

68

 

(b)  Whenever
any payment (including any payment of principal of or interest on any Borrowing
or any Fees) hereunder or under any other Loan Document shall become due, or
otherwise would occur, on a day that is not a Business Day, such payment may be
made on the next succeeding Business Day, and such extension of time shall in
such case be included in the computation of interest or Fees, if applicable.

 

SECTION 2.19.  Taxes. 
(a)  Any and all payments by the
Loan Parties hereunder and under the other Loan Documents shall be made free
and clear of and without deduction for any and all current or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, with respect to the Administrative Agent,
any Facing Agent or any Lender (or any transferee or assignee of any of the
foregoing, including a participation holder (any such entity being called a “Transferee”))
branch profits taxes and taxes imposed on the net income of the Administrative
Agent, such Facing Agent or such Lender (or Transferee), as the case may be,
and franchise taxes imposed on the Administrative Agent, such Facing Agent or
such Lender (or Transferee), as the case may be, by the United States, Canada
or any jurisdiction under the laws of which the Administrative Agent, such
Facing Agent or such Lender (or Transferee) is organized or in which the
Administrative Agent, such Facing Agent or such Lender (or Transferee) has its
principal office or lending office or any political subdivision or taxing
authority thereof or therein or in any other jurisdiction in which the
Administrative Agent, such Facing Agent or such Lender (or Transferee) is
otherwise doing business (or, if a treaty applies, a jurisdiction in which the
Administrative Agent, such Facing Agent or such Lender (or Transferee) has a
permanent establishment) other than any jurisdiction in which the
Administrative Agent, such Facing Agent or such Lender (or Transferee) is
treated as doing business (or, if a treaty applies, is treated as having a permanent
establishment) solely by reason of having executed, delivered or performed its
obligations or received a payment under this Agreement or any other Loan
Document (all such nonexcluded taxes, levies, imposts, deductions, charges,
withholdings and liabilities being hereinafter referred to as “Taxes”).  If any Taxes are required to be deducted from
or in respect of any sum payable hereunder by any Loan Party to any Lender (or
any Transferee), the Administrative Agent or any Facing Agent, (i) the sum
payable shall be increased by the amount necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.19) such Lender (or Transferee), the
Administrative Agent or such Facing Agent, as the case may be, shall receive an
amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrowers shall make such deductions and (iii) the
Borrowers shall pay the full amount deducted to the relevant taxing authority
or other Governmental Authority in accordance with applicable law; provided,
however, that, if a Lender assigns, participates or otherwise transfers
all or any portion of its rights under this Agreement or any other Loan
Document or changes its lending office for the purposes of this Agreement and
as a result of circumstances existing at the date of the assignment,
participation, other transfer or change in lending office, a Borrower would be
obligated to pay any amount under this paragraph (a), then the Transferee
or Lender acting through its new lending office shall only be entitled to
receive payment under this paragraph (a) to the same extent that
the previous Lender or the Lender acting through its previous lending office
would have been entitled if no such assignment, participation, other transfer
or change in lending office had taken place

 

69

 

unless (x) such
assignment, participation or transfer shall have been at the request of SSCC or
a Borrower, (y) such assignment, participation or transfer shall have been
made pursuant to Section 2.17 or Article X or (z) such
assignment, participation or transfer is of a Revolving (Canadian) Credit
Commitment or a Revolving (Canadian) Loan and is made at a time when an Event
of Default has occurred and is continuing.

 

(b)  Each
Borrower agrees to pay any current or future stamp, intangible or documentary taxes
or any other excise or property taxes, charges or similar levies (including
mortgage recording taxes and similar fees) that arise from any payment made
hereunder or from the execution, delivery or registration of, or otherwise with
respect to, this Agreement, any Assignment and Acceptance entered into at the
request of either Borrower or any other Loan Document (hereinafter referred to
as “Other Taxes”).

 

(c)  Each
Borrower will indemnify each Lender (or Transferee), the Administrative Agent
and each Facing Agent for the full amount of Taxes and Other Taxes (including
any Taxes or Other Taxes on amounts payable under this Section 2.19)
paid by such Lender (or Transferee), the Administrative Agent, or such Facing
Agent, as the case may be, and any liability (including penalties, interest and
reasonable expenses) arising therefrom or with respect thereto, whether or not
such Taxes or Other Taxes were correctly or legally asserted by the relevant
taxing authority or other Governmental Authority.  Such indemnification shall be made within
30 days after the date any Lender (or Transferee), the Administrative
Agent or any Facing Agent, as the case may be, makes written demand therefor
(which demand shall identify the nature and amount of Taxes and Other Taxes for
which indemnification is being sought and shall include a copy of the relevant
portion of any written assessment from the relevant taxing authority demanding
payment of such Taxes or Other Taxes, unless the Lender (or Transferee), the
Administrative Agent or such Facing Agent, as the case may be, determines, in
its sole discretion, that such portion of any such assessment is
confidential).  If a Lender (or
Transferee), the Administrative Agent or any Facing Agent shall become aware
that it is entitled to receive a refund in respect of Taxes or Other Taxes as
to which it has been indemnified by the applicable Borrower pursuant to this Section 2.19,
it shall promptly notify such Borrower of the availability of such refund and
shall, within 30 days after receipt of a request by the applicable
Borrower, apply for such refund at such Borrower’s expense.  If any Lender (or Transferee), the
Administrative Agent or any Facing Agent receives a refund in respect of any
Taxes or Other Taxes as to which it has been indemnified by either Borrower
pursuant to this Section 2.19, it shall promptly notify such
Borrower of such refund and shall, within 30 days of receipt, repay such
refund (to the extent of amounts that have been paid by such Borrower under
this Section 2.19 with respect to such refund and not previously
reimbursed) to the Borrower, net of all reasonable out-of-pocket expenses of
such Lender, the Administrative Agent or such Facing Agent and without interest
(other than the interest, if any, included in such refund net of any Taxes
payable with respect to receipt of such refund), provided that such
Borrower, upon the request of such Lender (or Transferee), the Administrative
Agent or such Facing Agent, agrees to return such refund (plus
penalties, interest or other charges) to such Lender (or Transferee), the
Administrative Agent or such Facing Agent in the event such Lender (or
Transferee), the Administrative Agent or such Facing Agent, as the case may be,
is required to repay such refund.

 

70

 

(d)  Within
30 days after the date of any payment of Taxes or Other Taxes withheld by
either Borrower in respect of any payment to any Lender (or Transferee), the
Administrative Agent or any Facing Agent, such Borrower will furnish to the
Administrative Agent, at the addresses referred to in Section 11.01,
the original or a certified copy of a receipt evidencing payment thereof or
other evidence reasonably satisfactory to such Lender (or Transferee), the
Administrative Agent or such Facing Agent, as the case may be.

 

(e)  Without
prejudice to the survival of any other agreement contained herein, the
agreements and obligations contained in this Section 2.19 shall
survive the payment in full of the principal of and interest on all Loans made
hereunder.

 

(f)  (i) Each of the Administrative Agent, the
Senior Agents, the Deposit Funded Facility Agent, the Revolving Facility Facing
Agent and any SSCE Lender (or Transferee) that is not a U.S. person (within the
meaning of Section 7701(a)(30) of the Code) (a “Non-U.S. Person”)
agrees that it shall on the date it becomes the Administrative Agent, the
Senior Agent, the Deposit Funded Facility Facing Agent, the Revolving Facility
Facing Agent or a SSCE Lender (or Transferee) hereunder, deliver to SSCE and
the Administrative Agent (A) one duly completed copy of United States
Internal Revenue Service Form W-8BEN or W-8ECI (or replacement or
successor forms thereto), or (B) in the case of SSCE Lenders (or
Transferees thereof) exempt from United States Federal withholding tax pursuant
to Sections 871(h) or 881(c) of the Code, one duly completed copy of a
United States Internal Revenue Service Form W-8BEN (Certificate of
Foreign Status of Beneficial Owner for United States Tax Withholding) and a
certificate representing that such Non-U.S. Person is not a bank for
purposes of Section 881(c) of the Code, or any successor applicable
form of any thereof, certifying in each case that the Administrative Agent,
such Senior Agent, the Deposit Funded Facility Facing Agent, the Revolving
Facility Facing Agent or such SSCE Lender (or Transferee), as the case may be,
is entitled to receive payments hereunder payable to it without deduction or
withholding of any United States Federal income taxes.  Each of the Administrative Agent, the
Revolving Facility Facing Agent, the Senior Agents, the Deposit Funded Facility
Facing Agent and the SSCE Lenders (or Transferee) that, pursuant to the
immediately preceding sentence is required to deliver to SSCE and the Administrative
Agent any such form or certification, further undertakes to deliver to SSCE and
the Administrative Agent further copies of any such form or certification or
other manner of certification reasonably satisfactory to SSCE on or before the
date that any such form or certification expires or becomes obsolete or of the
occurrence of any event requiring a change in the most recent form or
certification previously delivered by it to SSCE or the Administrative Agent,
and such extensions or renewals thereof as may reasonably be requested by SSCE
or the Administrative Agent, certifying that the Administrative Agent, the
Revolving Facility Facing Agent, such Senior Agent, the Deposit Funded Facility
Facing Agent, or such SSCE Lender (or Transferee), as the case may be, is
entitled to receive payments hereunder without deduction or withholding of any
United States Federal income taxes, unless there has occurred, on or prior to
the date on which any delivery of

 

71

 

any such form
or certification would otherwise be required, any change in law, rule,
regulation, treaty, convention or directive, or any change in the
interpretation or application of any thereof (“Change of Law”) that
renders all such forms or certification inapplicable or which would prevent the
Administrative Agent, the Revolving Facility Facing Agent, such Senior Agent,
the Deposit Funded Facility Facing Agent or such SSCE Lender (or Transferee),
as the case may be, from duly completing and delivering any such form or
certification with respect to it.  In the
event of such Change of Law, the Administrative Agent, such Senior Agent, the
Deposit Funded Facility Facing Agent, the Revolving Facility Facing Agent or such
SSCE Lender (or Transferee), as the case may be, shall advise SSCE that under
applicable law it shall be subject to withholding of United States Federal
income tax at the full statutory rate, a reduced rate of withholding or without
deduction or withholding. 
Notwithstanding the foregoing provisions of this paragraph (f),
a Revolving (Canadian) Lender that is a Non-U.S. Person shall be required
to furnish any such form or certification only if it is entitled to claim an
exemption from, or a reduced rate, of withholding.  Each of the Administrative Agent, the Senior
Agents, the Deposit Funded Facility Facing Agent, the Revolving Facility Facing
Agent and the SSCE Lenders (other than any Revolving (Canadian) Lender) that is
a Non-U.S. Person and that is a party hereto as of the date hereof hereby
represents and warrants that, as of the date hereof, all payments made to it
hereunder are exempt from withholding of United States Federal income taxes
(i) because such payments are effectively connected with a United States
trade or business conducted by such Non-U.S. Person; (ii) pursuant
to the terms of an income tax treaty between the United States and such Non-U.S.
Person’s country of residence; or (iii) because such payments are
portfolio interest exempt pursuant to Section 871(h) or 881(c) of the
Code.

 

(ii) Notwithstanding
anything contained in clause (i) above, in the case of an assignment,
participation or transfer made at the request of a Borrower or an assignment,
participation or transfer made pursuant to Section 2.17 or Article X,
if a Transferee, in its good faith judgment, is eligible for an exemption from,
or reduced rate of, U.S. Federal withholding tax on payments by the Loan
Parties hereunder, such Transferee shall use its reasonable best efforts to
provide SSCE and the Administrative Agent with the appropriate forms and
certifications that will permit such payments to be made without withholding or
at a reduced rate.

 

(iii) The
Administrative Agent, any Senior Agent, any Facing Agent and each Lender (or
Transferee) that is a U.S. person within the meaning of
Section 7701(a)(30) of the Code (other than any such person that is
treated as a corporation for United States federal income tax purposes) shall
deliver to the Administrative Agent on or before the date such Person becomes a
party to this Agreement a duly completed United States Internal Revenue Service
Form W-9 (or successor form) establishing that such Person is not subject to
U.S. federal backup withholding.

 

(iv) Notwithstanding
any provision of this Section 2.19 above to the contrary, SSCE shall not
have any obligation to pay any Taxes or Other Taxes or to

 

72

 

indemnify any
SSCE Lender (or Transferee), the Administrative Agent, any Senior Agent, the
Deposit Funded Facility Facing Agent or the Revolving Facility Facing Agent for
such Taxes or Other Taxes pursuant to this Section 2.19 to the
extent that such Taxes or Other Taxes result from (i) the failure of such
SSCE Lender (or Transferee), the Administrative Agent, such Senior Agent, or
such Facing Agent to comply with its obligations pursuant to this paragraph (f)
or (ii) any representation made hereunder or on any such form or
certification (or successor applicable form or certification) by the SSCE
Lender (or Transferee), the Administrative Agent, such Senior Agent, or such
Facing Agent incurring such Taxes or Other Taxes proving to have been
incorrect, false or misleading in any material respect when so made or deemed
to be made.  Nothing contained herein
shall require the Administrative Agent, any Senior Agent, the Deposit Funded
Facility Facing Agent, the Revolving Facility Facing Agent or any SSCE Lender
(or Transferee) to make its tax returns (or any other information relating to
its taxes which it deems confidential) available to SSCE or any other person.

 

(g)  Each
of the Canadian Administrative Agent, the Revolving (Canadian) Facility Facing
Agent and any SSC Canada Lender (or Transferee) that is entitled to an
exemption from or reduction of withholding tax under the laws of Canada, or any
treaty to which Canada is a party, with respect to payment in connection with
the SSC Canada Loans under this Agreement shall, upon request by the
Administrative Agent, deliver to SSC Canada (with a copy to the Administrative
Agent), such properly completed and executed documentation prescribed by
applicable law or reasonably requested by SSC Canada as will permit such
payments to be made without withholding or at a reduced rate.  Notwithstanding any provision of paragraph (a)
above to the contrary, SSC Canada shall have no obligation to pay any Taxes or
Other Taxes or to indemnify any SSC Canada Lender (or Transferee), the Canadian
Administrative Agent or the Revolving (Canadian) Facility Facing Agent for such
Taxes or Other Taxes pursuant to this Section 2.19 to the extent
that such Taxes or Other Taxes result from (x) the failure of any SSC
Canada Lender, the Canadian Administrative Agent or such Facing Agent to comply
with its obligations pursuant to this paragraph (g) (provided,
however, that no SSC Canada Lender shall be required to provide any
documentation that it is not legally able to provide) or (y) any
representation made in any such documentation by the SSC Canada Lender, the
Canadian Administrative Agent or such Facing Agent incurring such Taxes or
Other Taxes proving to have been incorrect, false or misleading in any material
respect when so made or deemed to be made. 
Nothing contained herein shall require the Administrative Agent, the Revolving
(Canadian) Facility Facing Agent or any SSC Canada Lender (or Transferee) to
make its tax returns (or any other information relating to its taxes which it
deems confidential) available to SSC Canada or any other Person.

 

SECTION 2.20.  Duty to Mitigate; Replacement of Lenders.  (a)  Any
of the Administrative Agent, the Facing Agents or the Lenders (or Transferees)
claiming any additional amounts payable pursuant to Section 2.14 or
2.19 shall use reasonable efforts (consistent with legal and regulatory
restrictions) to file any certificate or document requested by either Borrower
or to change the jurisdiction of its applicable lending office if the making of
such filing or change would avoid the need for or reduce

 

73

 

the amount of any such additional
amounts that may thereafter accrue or avoid the circumstances giving rise to
such exercise and would not, in the sole determination of such Lender (or
Transferee), the Administrative Agent or such Facing Agent, as the case may be,
require it to incur additional costs or be otherwise disadvantageous to such
Lender (or Transferee), the Administrative Agent or such Facing Agent.

 

(b)  In
the event that any Lender shall have delivered a notice or certificate pursuant
to Section 2.14 or defaults in its obligations to make Loans
hereunder, or either Borrower shall be required to make additional payments to
any Lender under Section 2.19, the applicable Borrower shall have
the right, but not the obligation, at its own expense (including with respect
to the processing and recordation fee referred to in Section 11.04(b)),
upon notice to such Lender and the Administrative Agent (and, in the case of
any replacement of a Deposit Funded Lender, the Deposit Account Agent), to
replace such Lender with an assignee (in accordance with and subject to the
restrictions contained in Section 11.04(b)) approved by the
Administrative Agent (and, in the case of a Deposit Funded Lender, the Deposit
Account Agent), which approval shall not be unreasonably withheld, and such
Lender hereby agrees to transfer and assign without recourse (in accordance
with and subject to the restrictions contained in Section 11.04(b))
all its interests, rights and obligations under this Agreement to such
assignee; provided, however, that no Lender shall be obligated to
make any such assignment unless (i) such assignment shall not conflict
with any law or any rule, regulation or order of any Governmental Authority,
(ii) such assignee shall pay to the affected Lender in immediately
available funds on the date of such assignment the principal of the Loans made
by such Lender hereunder and (iii) the applicable Borrower shall pay to
the affected Lender in immediately available funds on the date of such
assignment the interest accrued to the date of payment on the Loans made by
such Lender hereunder and all other amounts accrued for such Lender’s account
or owed to it hereunder.

 

(c)  If,
in connection with any proposed amendment, modification, change, waiver,
discharge or termination to any of the provisions of this Agreement as
contemplated by Section 11.08(b), the consent of the Required
Lenders is obtained but the consent of one or more of such other Lenders whose
consent is required is not obtained, then the applicable Borrower shall have
the right, but not the obligation, at its own expense (including with respect
to the processing and recordation fee referred to in Section 11.04(b))
upon notice to such Lender and the Administrative Agent (and, in the case of
any replacement of a Deposit Funded Lender, the Deposit Account Agent), to
replace each such non-consenting Lender or Lenders (or, at the option of the
applicable Borrower, if such Lender’s consent is required with respect to less
than all Loans, to replace only the respective Loans of the respective
non-consenting Lender which gave rise to the need to obtain such Lender’s
individual consent) with an assignee (in accordance with and subject to the
restrictions contained in Section 11.04(b)) approved by the
Administrative Agent (and, in the case of a Deposit Funded Lender, the Deposit
Account Agent), which approval shall not be unreasonably withheld, so long as
at the time of such replacement, each such assignee consents to the proposed
amendment, modification, change, waiver, discharge or termination; provided,
however, that no Lender shall be obligated to make any such assignment
unless (i) such assignment shall not conflict with any law or any rule,
regulation or order of any Governmental Authority,

 

74

 

(ii) such assignee shall
pay to the non-consenting Lender in immediately available funds on the date of
such assignment the principal of the Loans made by such Lender hereunder and
subject to such assignment and (iii) the applicable Borrower shall pay to the
non-consenting Lender in immediately available funds on the date of such
assignment the interest accrued to the date of payment on the Loans made by
such Lender hereunder and subject to such assignment and all other amounts
accrued for such Lender’s account or owed to it hereunder with respect to such
Loans.

 

SECTION 2.21.  Swingline Loans.  (a)  Subject
to the terms and conditions set forth herein, the Swingline Lender agrees from
time to time during the Revolving Credit Availability Period to make Swingline
Loans to SSCE in an aggregate principal amount at any time outstanding not to
exceed the lesser of (i) U.S.$50,000,000 and (ii) the difference
between (A) the aggregate Revolving Credit Commitments in effect at such
time and (B) the sum of (x) the aggregate principal amount of
Revolving Loans outstanding at such time and (y) the Revolving Facility LC
Exposure at such time.  Each Swingline
Loan shall be in a principal amount that is an integral multiple of U.S.$250,000.  The Swingline Lender shall make each
Swingline Loan available to SSCE by means of a credit to the general deposit
account of SSCE with the Swingline Lender by 3:00 p.m., Standard Time, on
the date such Swingline Loan is requested to be made pursuant to paragraph (b) below.  Within the limits set forth in the first
sentence of this paragraph (a), SSCE may borrow, pay, prepay and
reborrow Swingline Loans.

 

(b)  SSCE
shall give the Administrative Agent telephonic, written or fax notice (in the
case of telephonic notice, such notice to be promptly confirmed by fax) not
later than 11:00 a.m., Standard Time, on the day of a proposed
borrowing.  Such notice shall be
delivered on a Business Day, shall be irrevocable and shall refer to this
Agreement and shall specify the requested date (which shall be a Business Day)
and amount of such Swingline Loan.  The
Administrative Agent shall promptly advise the Swingline Lender of any notice
received from SSCE pursuant to this paragraph (b).

 

(c)  The
Swingline Lender may, by written or fax notice given to the Administrative
Agent not later than 10:00 a.m., Standard Time, on any Business Day,
require the Revolving Lenders to purchase all or any portion of the Swingline
Loans outstanding.  Such notice shall
specify the aggregate amount of Swingline Loan or Swingline Loans to be
purchased, and the Administrative Agent shall promptly upon receipt of such
notice give notice thereof to each Revolving Lender, specifying in such notice
such Revolving Lender’s Applicable Percentage of such Swingline Loan or Swingline
Loans.  Each Revolving Lender shall pay
to the Administrative Agent, in the same manner as provided in Section 2.02(c)
with respect to Loans made by such Lender (and Section 2.02(c)
shall apply, mutatis mutandis, to the payment obligations of the Revolving
Lenders under this paragraph (c)), such Lender’s Applicable Percentage
of the principal amount of such Swingline Loan or Swingline Loans, and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so
received by it from the Revolving Lenders. 
Each Revolving Lender acknowledges and agrees that its obligations to
make such payment is absolute and unconditional and shall not be affected by
any event or circumstance whatsoever, including the occurrence of any Default
or Event of Default hereunder or the failure of any condition precedent set
forth in Article V to be

 

75

 

satisfied, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.  The Administrative Agent
shall promptly advise SSCE of any participations in any Swingline Loan acquired
pursuant to this paragraph (c), and thereafter payments in respect
to such Swingline Loan shall be made to the Administrative Agent and not to the
Swingline Lender.  Any amounts received
by the Swingline Lender from SSCE (or any other party on behalf of SSCE) in
respect of a Swingline Loan after receipt by the Swingline Lender of the
proceeds of a sale of participations therein shall be promptly remitted to the
Administrative Agent; any such amounts received by the Administrative Agent
shall be promptly remitted by the Administrative Agent to the Revolving Lenders
that shall have made their payments pursuant to this paragraph (c) and
to the Swingline Lender, as their interests may appear.  The purchase of participations in a Swingline
Loan pursuant to this paragraph (c) shall not constitute a Loan and
shall not relieve SSCE of its obligation with respect to the payment thereof.

 

SECTION 2.22.  Bankers’ Acceptances.  (a)  Subject
to the terms and conditions of this Agreement, SSC Canada may request a
Revolving (Canadian) Credit Borrowing denominated in Canadian Dollars by
presenting drafts for acceptance and purchase as B/As by the Revolving
(Canadian) Lenders.

 

(b)  No
Contract Period with respect to a B/A to be accepted and, if applicable,
purchased as a Revolving (Canadian) Loan shall extend beyond the Revolving
Credit Maturity Date.  All B/As and B/A
Loans shall be denominated in Canadian Dollars.

 

(c)  To
facilitate availment of B/A Loans, SSC Canada hereby appoints each Revolving
(Canadian) Lender as its attorney to sign and endorse on its behalf (in
accordance with a notice of Borrowing relating to a B/A Loan pursuant to Section 2.03
or 2.10), in handwriting or by facsimile or mechanical signature as and
when deemed necessary by such Revolving (Canadian) Lender, blank forms of B/As
in the form requested by such Revolving (Canadian) Lender.  SSC Canada recognizes and agrees that all
B/As signed and/or endorsed by a Revolving (Canadian) Lender on behalf of SSC
Canada shall bind SSC Canada as fully and effectually as if signed in the
handwriting of and duly issued by the proper signing officers of SSC
Canada.  Each Revolving (Canadian) Lender
is hereby authorized (in accordance with a notice of Borrowing relating to a
B/A Loan) to issue such B/As endorsed in blank in such face amounts as may be
determined by such Revolving (Canadian) Lender; provided that the
aggregate amount thereof is equal to the aggregate amount of B/As required to
be accepted and purchased by such Revolving (Canadian) Lender.  No Revolving (Canadian) Lender shall be
liable for any damage, loss or other claim arising by reason of any loss or improper
use of any such instrument except for the gross negligence or willful
misconduct of such Revolving (Canadian) Lender or its officers, employees,
agents or representatives.  Each
Revolving (Canadian) Lender shall maintain a record, which shall be made
available to SSC Canada upon its request, with respect to B/As
(i) received by it in blank hereunder, (ii) voided by it for any
reason, (iii) accepted and purchased by it hereunder, and
(iv) canceled at their respective maturities.  On request by or on behalf of SSC Canada, a
Revolving (Canadian) Lender shall cancel all forms of B/As which have been
pre-signed

 

76

 

or pre-endorsed on behalf of
SSC Canada and that are held by such Revolving (Canadian) Lender and are not
required to be issued in accordance with SSC Canada’s irrevocable notice.  Alternatively, SSC Canada agrees that, at the
request of the Canadian Administrative Agent, SSC Canada shall deliver to the
Canadian Administrative Agent a “depository note” which complies with the
requirements of the Depository Bills and Notes Act (Canada), and consents to
the deposit of any such depository note in the book-based debt clearance system
maintained by the Canadian Depository for Securities.

 

(d)  Drafts
of SSC Canada to be accepted as B/As hereunder shall be signed as set forth in
this Section 2.22. 
Notwithstanding that any Person whose signature appears on any B/A may
no longer be an authorized signatory for any Revolving (Canadian) Lender or SSC
Canada at the date of issuance of a B/A, such signature shall nevertheless be
valid and sufficient for all purposes as if such authority had remained in
force at the time of such issuance and any such B/A so signed shall be binding
on SSC Canada.

 

(e)  Promptly
following the receipt of a notice of borrowing specifying a Revolving
(Canadian) Credit Borrowing by way of B/A, the Canadian Administrative Agent
shall so advise the Revolving (Canadian) Lenders and shall advise each
Revolving (Canadian) Lender of the aggregate face amount of the B/A to be
accepted by it and the applicable Contract Period (which shall be identical for
all Revolving (Canadian) Lenders).  In
the case of Revolving (Canadian) Loans comprised of B/A Loans, the aggregate
face amount of the B/A to be accepted by a Revolving  (Canadian) Lender shall be in a minimum
aggregate amount of Cdn.$100,000 and shall be a whole multiple of Cdn.$100,000,
and such face amount shall be in the Revolving (Canadian) Lenders’ pro rata portions of such Revolving
(Canadian) Borrowing, provided that the Administrative Agent may in its
sole discretion increase or reduce any Revolving (Canadian) Lender’s portion of
such B/A Loan to the nearest Cdn.$100,000 without reducing the aggregate
Revolving (Canadian) Credit Commitments.

 

(f)  SSC
Canada may specify in a notice of borrowing pursuant to Section 2.03
or 2.10 that it desires that any B/A requested by such notice of
borrowing be purchased by the Revolving (Canadian) Lenders, in which case the
Revolving (Canadian) Lenders shall, upon acceptance of a B/A by a Revolving
(Canadian) Lender, purchase each B/A from SSC Canada at the Discount Rate for
such Revolving (Canadian) Lender applicable to such B/A accepted by it and
provide to the Canadian Administrative Agent the Discount Proceeds for the
account of SSC Canada.  The Acceptance
Fee payable by SSC Canada to a Revolving (Canadian) Lender under Section 2.06(d)
in respect of each B/A accepted by such Revolving (Canadian) Lender shall be
set off against and deducted from the Discount Proceeds payable by such
Revolving (Canadian) Lender under this Section 2.22.

 

(g)  Each
Revolving (Canadian) Lender may at any time and from time to time hold, sell,
rediscount or otherwise dispose of any or all B/As accepted and purchased by
it.

 

77

 

(h)  If
a Revolving (Canadian) Lender is not a chartered bank under the Bank Act
(Canada) or if a Revolving (Canadian) Lender notifies the Canadian
Administrative Agent in writing that it is otherwise unable to accept Bankers’
Acceptances, such Revolving (Canadian) Lender will, instead of accepting and
purchasing Bankers’ Acceptances, make an advance (a “B/A Equivalent Loan”)
to SSC Canada in the amount and for the same term as the draft that such
Revolving (Canadian) Lender would otherwise have been required to accept and
purchase hereunder.  Each such Revolving
(Canadian) Lender will provide to the Canadian Administrative Agent the
Discount Proceeds of such B/A Equivalent Loan for the account of SSC Canada.  Each such B/A Equivalent Loan will bear
interest at the same rate that would result if such Revolving (Canadian) Lender
had accepted (and been paid an Acceptance Fee) and purchased (on a discounted
basis at the Discount Rate) a Bankers’ Acceptance for the relevant Contract
Period (it being the intention of the parties that each such B/A Equivalent
Loan shall have the same economic consequences for the Revolving (Canadian)
Lenders and SSC Canada as the Bankers’ Acceptance which such B/A Equivalent
Loan replaces).  All such interest shall
be paid in advance on the date such B/A Equivalent Loan is made, and will be
deducted from the principal amount of such B/A Equivalent Loan in the same
manner in which the Discount Proceeds of a Bankers’ Acceptance would be
deducted from the face amount of the Bankers’ Acceptance.

 

(i)  SSC
Canada waives presentment for payment and any other defense to payment of any
amounts due to a Revolving (Canadian) Lender in respect of a B/A accepted and
purchased by it pursuant to this Agreement which might exist solely by reason
of such B/A being held, at the maturity thereof, by such Revolving (Canadian)
Lender in its own right, and SSC Canada agrees not to claim any days of grace
if such Revolving (Canadian) Lender, as holder, claims payment from or sues SSC
Canada on the B/A for payment of the amount payable by SSC Canada
thereunder.  On the last day of the
Contract Period of a B/A, or such earlier date as may be required or permitted
pursuant to the provisions of this Agreement, SSC Canada shall pay the
Revolving (Canadian) Lender that has accepted and purchased a B/A or advanced a
B/A Equivalent Loan  the full face amount
of such B/A or B/A Equivalent Loan, as the case may be, and, after such
payment, SSC Canada shall have no further liability in respect of such B/A and such
Revolving (Canadian) Lender shall be entitled to all benefits of, and be
responsible for all payments due to third parties under, such B/A.

 

(j)  Except
as required by any Revolving (Canadian) Lender upon the occurrence of an Event
of Default, no B/A Loan may be repaid by SSC Canada prior to the expiry date of
the Contract Period applicable to such B/A Loan; provided, however,
that any B/A Loan may be defeased as provided in the proviso to Section 2.12(a).

 

SECTION 2.23.  Incremental Commitments.  (a)  Either
Borrower may on one or more occasions, by written notice to the Senior Agents,
request Incremental Term Loan Commitments in an aggregate amount not to exceed
the Incremental Commitment Amount from one or more Incremental Term Lenders,
which may include any existing Lender; provided that each Incremental
Term Lender, if not already a Lender hereunder, shall be subject to the
approval of the Senior Agents (which approval shall not be unreasonably
withheld or delayed).  Such notice shall
set forth (i) the amount of the

 

78

 

Incremental Term Loan
Commitments being requested (which shall be in minimum increments of
U.S.$5,000,000 and a minimum amount of U.S.$20,000,000 or equal to the
remaining Incremental Commitment Amount), (ii) the date on which such
Incremental Term Loan Commitments are requested to become effective (which
shall not be less than 10 Business Days nor more than 60 days after
the date of such notice (which time periods for notice may be modified or
waived at the discretion of the Senior Agents)) and (iii) whether such
Incremental Term Loan Commitments are to be Tranche B Commitments or, in the
case of SSC Canada, Tranche C Commitments, or commitments to make term loans
with pricing terms different from the Tranche B Loans or the Tranche C Loans (“Other
Term Loans”).

 

(b)  SSCE
may on one or more occasions, by written notice to the Senior Agents, request
Incremental Revolving Credit Commitments in an aggregate amount not to exceed
the Incremental Commitment Amount from one or more Incremental Revolving
Lenders, and SSC Canada may, by written notice to the Senior Agents from time
to time, request Incremental Revolving (Canadian) Credit Commitments in an
aggregate amount not to exceed the Incremental Commitment Amount from one or
more Incremental Revolving (Canadian) Lenders, which may, in any case, include
any existing Lender; provided that (i) each Incremental Revolving
Lender shall be subject to the approval of the Senior Agents, the Revolving Facility
Facing Agent and the Swingline Lender, and (ii) each Incremental Revolving
(Canadian) Lender shall be subject to the approval of the Senior Agents and the
Revolving (Canadian) Facility Facing Agent (which approvals shall not be
unreasonably withheld or delayed).  Such
notice shall set forth (x) the amount of the Incremental Revolving Credit
Commitments or Incremental Revolving (Canadian) Credit Commitments being
requested (which shall be in minimum increments of U.S.$5,000,000 and a minimum
amount of U.S.$20,000,000 or equal to the remaining Incremental Commitment
Amount) and (y) the date on which such Incremental Revolving Credit Commitments
or Incremental Revolving (Canadian) Credit Commitments are requested to become
effective (which shall not be less than 10 Business Days nor more than 60
days after the date of such notice (which time periods for notice may be
modified or waived at the discretion of the Senior Agents)).

 

(c)  SSCE
may on one or more occasions, by written notice to the Senior Agents, request
Incremental Deposit Funded Commitments in an aggregate amount not to exceed the
Incremental Commitment Amount from one or more Incremental Deposit Funded
Lenders, which may include any existing Lender; provided that each
Incremental Deposit Funded Lender shall be subject to the approval of the
Senior Agents and the Deposit Funded Facility Facing Agent (which approvals
shall not be unreasonably withheld or delayed). 
Such notice shall set forth (i) the amount of the Incremental Deposit
Funded Commitments being requested (which shall be in minimum increments of
U.S.$5,000,000 and a minimum amount of U.S.$20,000,000 or equal to the
remaining Incremental Commitment Amount) and (ii) the date on which such
Incremental Deposit Funded Commitments are requested to become effective (which
shall not be less than 10 Business Days nor more than 60 days after the
date of such notice (which time periods for notice may be modified or waived at
the discretion of the Senior Agents)).

 

79

 

(d)  The
applicable Borrower and each Incremental Lender shall execute and deliver to
the Administrative Agent an Incremental Term Loan Assumption Agreement,
Incremental Revolving Credit Assumption Agreement or Incremental Deposit Funded
Credit Assumption Agreement, as applicable, and such other documentation as the
Senior Agents shall reasonably specify to evidence the Incremental Commitment
of such Incremental Lender.  Each
Incremental Term Loan Assumption Agreement shall specify the terms of the
Incremental Term Loans to be made thereunder; provided that, without the
prior written consent of Term Lenders holding a majority of the principal
amount of the outstanding Term Loans, (i) the final maturity date of any Other
Term Loans shall be no earlier than the Term Loan Maturity Date, (ii) the
average life to maturity of any Other Term Loans shall be no shorter than the
average life to maturity of the Term Loans and (iii) if the initial yield on
any Other Term Loans (as determined by the Senior Agents to be equal to the sum
of (x) the Adjusted LIBOR margin on the Other Term Loans and (y) if the Other
Term Loans are initially made at a discount or the Lenders making the same
receive a fee directly or indirectly from SSCC or any Subsidiary for doing so
(the amount of such fee, expressed as a percentage of the Other Term Loans,
being referred to herein as “OID”), the amount of such OID divided by
the lesser of (A) the average life to maturity of such Other Term Loans and (B)
four) exceeds by more than 25 basis points (the amount of such excess above 25
basis points being referred to herein as the “Yield Differential”) the
Applicable Rate then in effect for Eurodollar Term Loans, then the Applicable
Rate then in effect for Term Loans shall automatically be increased by the
Yield Differential, effective upon the making of the Other Term Loans; and provided
further that, without the prior written consent of the majority in
interest of the Revolving Lenders and Revolving (Canadian) Lenders, voting as a
single class, the final maturity date of any Other Term Loans shall be no
earlier than the Revolving Credit Maturity Date, and without the prior written
consent of the majority in interest of the Deposit Funded Lenders, the final
maturity date of any Other Term Loans shall be no earlier than the Deposit
Funded Maturity Date.  The Administrative
Agent shall promptly notify each Lender as to the effectiveness of each
Incremental Credit Assumption Agreement. 
Each of the parties hereto hereby agrees that, upon the effectiveness of
any Incremental Credit Assumption Agreement, this Agreement shall be deemed
amended to the extent (but only to the extent) necessary to reflect the
existence and terms of the Incremental Commitment evidenced thereby.  Any such deemed amendment may be memorialized
in writing by the Senior Agents with the Borrowers’ consent (not to be
unreasonably withheld or delayed) and furnished to the other parties hereto.

 

(e)  Notwithstanding
the foregoing, no Incremental Commitment shall become effective under this Section 2.23
unless (i) on the date of such effectiveness, the conditions set forth in paragraphs (b)
and (c) of Section 5.01 shall be satisfied and the
Administrative Agent shall have received a certificate to that effect dated
such date and executed by a Financial Officer of the applicable Borrower and
(ii) the Administrative Agent shall have received legal opinions, board
resolutions and other closing certificates and documentation reasonably
requested by the Senior Agents consistent with those delivered on the Closing
Date pursuant to Section 5.02.

 

80

 

(f)  Each
of the parties hereto hereby agrees that the Administrative Agent may take any
and all action as may be reasonably necessary to ensure that all Incremental
Term Loans (other than Other Term Loans), when originally made, are included in
each Borrowing of outstanding Tranche B Loans or Tranche C Loans, as
the case may be, on a pro rata basis. 
This may be accomplished at the discretion of the Administrative Agent
by requiring each outstanding Eurodollar Tranche B Borrowing or Eurodollar
Tranche C Borrowing, as applicable, to be converted into an ABR Term
Borrowing on the date of each Incremental Term Loan, or by allocating a portion
of each Incremental Term Loan to each outstanding Eurodollar Tranche B
Borrowing or Eurodollar Tranche C Borrowing, as applicable, on a pro rata
basis, even though as a result thereof such Incremental Term Loan may
effectively have a shorter Interest Period than the Term Loans included in the
Borrowing of which they are a part (and notwithstanding any other provision of
this Agreement that would prohibit such an initial Interest Period).  Any conversion of Eurodollar Term Loans to
ABR Term Loans required by the preceding sentence shall be subject to Section 2.15.  If any Incremental Term Loan is to be
allocated to an existing Interest Period for a Eurodollar Term Borrowing then,
subject to Section 2.07, the interest rate applicable to such
Incremental Term Loan for the remainder of such Interest Period shall equal the
Adjusted LIBO Rate for a period approximately equal to the remainder of such
Interest Period (as determined by the Administrative Agent two Business Days
before the date such Incremental Term Loan is made) plus the Applicable
Rate.  In addition, to the extent any
Incremental Term Loans are Tranche B Loans or Tranche C Loans, the
scheduled amortization payments under Section 2.11 required to be
made after the making of such Incremental Term Loans shall be ratably increased
to reflect the aggregate principal amount of such Incremental Term Loans.  In such event, the Administrative Agent shall
prepare and distribute to the Borrowers and the Lenders an updated amortization
schedule, which shall be conclusive absent manifest error.

 

(g)  Each
of the parties hereto hereby agrees that the Administrative Agent may take any
and all actions as may be reasonably necessary to ensure that, after giving
effect to any Incremental Revolving Credit Commitment or Incremental Revolving
(Canadian) Credit Commitment pursuant to this Section 2.23, the
outstanding Revolving Loans and Revolving (Canadian) Loans are held by the
Revolving Lenders and Revolving (Canadian) Lenders, respectively, in accordance
with their new Applicable Percentages. 
This may be accomplished at the discretion of the Administrative Agent
(i) by requiring the outstanding Revolving Loans or Revolving (Canadian)
Loans to be prepaid with the proceeds of a new Revolving Credit Borrowing or
Revolving (Canadian) Credit Borrowing, as the case may be, (ii) by permitting
the Revolving Credit Borrowings and Revolving (Canadian) Credit Borrowings
outstanding at the time of any increase in the aggregate Revolving Credit
Commitments or the aggregate Revolving (Canadian) Credit Commitments pursuant
to this Section 2.23 to remain outstanding until the last days of the
respective Interest Periods therefor, even though the Revolving Lenders or
Revolving (Canadian) Lenders, as the case may be, would hold such Revolving
Credit Borrowings or Revolving (Canadian) Credit Borrowings, as applicable,
other than in accordance with their new Applicable Percentages, or (iii) by any
combination of the foregoing.  Any
prepayment described in this paragraph (g) shall be subject to Section
2.15, but otherwise without premium or penalty.

 

81

 

(h)  Each
of the parties hereto hereby agrees that the Administrative Agent may take any
and all actions as may be reasonably necessary to ensure that, after giving
effect to any Incremental Deposit Funded Commitment pursuant to this Section
2.23, the outstanding Deposit Funded Loans (if any) are held by the Deposit
Funded Lenders in accordance with their new Applicable Percentages.  This may be accomplished at the discretion of
the Administrative Agent by taking any action comparable to the actions described
in paragraph (f) above.

 

ARTICLE III

 

Letters of
Credit

 

SECTION 3.01.  General.  Subject to the terms and conditions set forth
herein, (a) SSCE may request the issuance of Revolving Facility Letters of
Credit, for its own account, by the Revolving Facility Facing Agent, in a form
reasonably acceptable to the Revolving Facility Facing Agent and the
Administrative Agent (it being agreed that the Administrative Agent shall not
unreasonably delay its response as to acceptability of such form (and, in any event,
shall provide such response within two Business Days of receiving the proposed
form) and shall not unreasonably withhold its confirmation as to acceptability
of such form), at any time and from time to time during the period from the
Closing Date to the date that is 30 days prior to the Revolving Credit Maturity
Date, (b) SSC Canada may request the issuance of Revolving (Canadian)
Facility Letters of Credit, for its own account, by the Revolving (Canadian)
Facility Facing Agent, in a form reasonably acceptable to the Revolving
(Canadian) Facility Facing Agent and the Canadian Administrative Agent (it
being agreed that the Canadian Administrative Agent shall not unreasonably
delay its response as to acceptability of such form (and, in any event, shall provide
such response within two Business Days of receiving the proposed form) and
shall not unreasonably withhold its confirmation as to acceptability of such
form), at any time and from time to time during the period from the Closing
Date to the date that is 30 days prior to the Revolving Credit Maturity Date
and (c) SSCE may request the issuance of Deposit Funded Letters of Credit, for
its own account, by the Deposit Funded Facility Facing Agent, in a form
reasonably acceptable to the Deposit Funded Facility Facing Agent, at any time
and from time to time during the period from the Closing Date to the date that
is 30 days prior to the Deposit Funded Maturity Date.  In the event of any inconsistency between the
terms and conditions of this Agreement and the terms and conditions of any form
of letter of credit application or other agreement submitted by a Borrower to,
or entered into by a Borrower with, the applicable Facing Agent relating to any
Letter of Credit, the terms and conditions of this Agreement shall control.

 

SECTION 3.02.  Notice of Issuance, Amendment, Renewal,
Extension; Certain Conditions.  To
request the issuance of a Letter of Credit, the applicable Borrower shall hand
deliver or fax (or transmit by electronic communication, if arrangements for
doing so have been approved by the applicable Facing Agent) to the applicable
Facing Agent and the Administrative Agent, reasonably in advance of the

 

82

 

requested date of issuance, a
Letter of Credit Request.  To request any
amendment, renewal or extension of any outstanding Letter of Credit, the
applicable Borrower shall hand deliver or fax (or transmit by electronic
communication, if arrangements for doing so have been approved by the
applicable Facing Agent) to the applicable Facing Agent and the Administrative
Agent, reasonably in advance of the requested date of amendment, renewal or
extension, a notice on the applicable Borrower’s letterhead identifying the
Letter of Credit and the date of the requested amendment, renewal or extension
(which must be a Business Day) and indicating the specifics of such amendment,
renewal or extension.  A Revolving
Facility Letter of Credit shall be issued, amended, renewed or extended only if
(and upon issuance, amendment, renewal or extension of each Revolving Facility
Letter of Credit, SSCE shall be deemed to represent and warrant that) after
giving effect to such issuance, amendment, renewal or extension (a) the
Revolving Facility LC Exposure shall not exceed U.S.$200,000,000 and
(b) the Revolving Credit Utilization shall not exceed the aggregate
Revolving Credit Commitments.  A
Revolving (Canadian) Facility Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension
of each Revolving (Canadian) Facility Letter of Credit, SSC Canada shall be
deemed to represent and warrant that) after giving effect to such issuance,
amendment, renewal or extension (i) the Revolving (Canadian) Facility LC
Exposure shall not exceed U.S.$50,000,000 and (ii) the Revolving
(Canadian) Credit Utilization shall not exceed the aggregate Revolving
(Canadian) Credit Commitments.  A Deposit
Funded Facility Letter of Credit shall be issued, amended, renewed or extended
only if (and upon issuance, amendment, renewal or extension of each Deposit
Funded Facility Letter of Credit, SSCE shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension
(A) the Deposit Funded LC Exposure shall not exceed the aggregate Deposits and
(B) the Deposit Funded Utilization shall not exceed the aggregate Deposit
Funded Commitments.  Promptly after the
issuance or amendment of any Letter of Credit, the applicable Facing Agent
shall notify the Administrative Agent 
(and, in the case of any Deposit Funded Facility Letter of Credit, the
Deposit Account Agent) and SSCE or SSC Canada, as the case may be, in writing
of such issuance or amendment and such notice shall be accompanied by a copy of
such issued or amended Letter of Credit. 
Upon receipt of such notice, the Administrative Agent shall promptly
notify each Revolving Lender, Revolving (Canadian) Lender or Deposit Funded
Lender, as applicable, in writing of such issuance or amendment, and if any
Revolving Lender, Revolving (Canadian) Lender or Deposit Funded Lender shall so
request, the Administrative Agent shall provide such Lender with a copy of such
issued or amended Letter of Credit.

 

SECTION 3.03.  Expiration Date.  Each Letter of Credit shall expire at or
prior to the close of business on the earliest of (a) the date one year
after the date of the issuance of such Letter of Credit (or, in the case of any
renewal or extension thereof, one year after such renewal or extension) and
(b) the date that is five Business Days prior to the Revolving Credit
Maturity Date or, in the case of any Deposit Funded Facility Letter of Credit,
five Business Days prior to the Deposit Funded Maturity Date.

 

SECTION 3.04.  Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any

 

83

 

further action on the part of
the applicable Facing Agent or the Lenders, the applicable Facing Agent hereby grants
to each Revolving Lender, Revolving (Canadian) Lender or Deposit Funded Lender,
as the case may be, and each such Lender hereby acquires from the applicable
Facing Agent, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such
Letter of Credit, effective upon the issuance of such Letter of Credit.  In addition, (a) the Revolving Facility
Facing Agent hereby grants to each Revolving Lender, and each Revolving Lender
hereby acquires, a participation in each Existing SSCE Letter of Credit (other
than the Existing IRB Letters of Credit), (b) the Revolving (Canadian) Facility
Facing Agent hereby grants to each Revolving (Canadian) Lender, and each
Revolving (Canadian) Lender hereby acquires, a participation in each Existing
SSC Canada Letter of Credit, and (c) the Deposit Funded Facility Facing Agent
hereby grants to each Deposit Funded Lender, and each Deposit Funded Lender
hereby acquires, a participation in each Existing IRB Letter of Credit, in each
case, equal to such Lender’s Applicable Percentage of the aggregate amount
available to be drawn under such Existing Letter of Credit, effective as of the
Closing Date.  In consideration and in
furtherance of the foregoing, (i) each Revolving Lender and Revolving
(Canadian) Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent or the Canadian Administrative Agent, respectively, for
the account of the applicable Facing Agent, such Lender’s Applicable Percentage
of each LC Disbursement in respect of a Revolving Facility Letter of Credit or
a Revolving (Canadian) Facility Letter of Credit, respectively, made by the
applicable Facing Agent and not reimbursed by the applicable Borrower on the
date due, or of any reimbursement payment required to be refunded to the
applicable Borrower for any reason and (ii) each Deposit Funded Lender hereby
absolutely and unconditionally authorizes the Deposit Account Agent to pay to
the Deposit Funded Facility Facing Agent such Lender’s Applicable Percentage of
each LC Disbursement in respect of a Deposit Funded Facility Letter of Credit
made by such Facing Agent and not reimbursed by SSCE on the date due, or of any
reimbursement payment required to be refunded to SSCE for any reason, from the
amounts on deposit in the Deposit Account, in each case, as provided in Section 3.05.  Each Revolving Lender, Revolving (Canadian)
Lender and Deposit Funded Lender acknowledges and agrees that its obligation to
acquire participations pursuant to this Section 3.04 in respect of
Letters of Credit is absolute and unconditional and shall not be affected by
any circumstance whatsoever, including any amendment, renewal or extension of
any Letter of Credit or the occurrence and continuance of a Default or an Event
of Default or reduction or termination of the Revolving Credit Commitments,
Revolving (Canadian) Credit Commitments or Deposit Funded Commitments, as
applicable, and that each such payment shall be made without any offset, abatement,
withholding or reduction whatsoever.

 

SECTION 3.05.  Reimbursement.  (a)  If
the Revolving Facility Facing Agent shall pay any draft or other form of demand
presented under a Revolving Facility Letter of Credit, SSCE shall pay to the
Revolving Facility Facing Agent an amount equal to the amount of such draft or
other form of demand not later than two hours after SSCE shall have received
notice from the Revolving Facility Facing Agent that payment of such draft or
other form of demand will be made or, if SSCE shall have received such notice
later than 10:00 a.m., Standard Time, on any Business Day, not later than
10:00 a.m., Standard Time, on the immediately following Business Day, provided
that

 

84

 

SSCE may, subject to the
conditions to borrowing set forth herein, request in accordance with Section 2.03
or 2.21, as applicable, that such reimbursement payment be financed with
an ABR Revolving Credit Borrowing or a Swingline Loan in an equivalent amount and,
to the extent so financed, the obligations of SSCE in respect of such LC
Disbursement shall be discharged and replaced by the resulting ABR Revolving
Credit Borrowing or Swingline Loan.  If
SSCE fails to make such reimbursement payment when due and such reimbursement
payment is not financed with an ABR Revolving Credit Borrowing or a Swingline
Loan as contemplated by the immediately preceding sentence, the Revolving
Facility Facing Agent shall promptly notify the Administrative Agent, which
shall in turn notify each Revolving Lender of such LC Disbursement, the
reimbursement payment then due from SSCE in respect thereof and such Lender’s
Applicable Percentage thereof.  Promptly
following receipt of such notice, each Revolving Lender shall pay to the Administrative
Agent an amount equal to such Lender’s Applicable Percentage of the
reimbursement payment then due from SSCE, in the same manner as provided in Section 2.02(c)
with respect to Loans made by such Lender (and Section 2.02(c) shall
apply, mutatis mutandis, to the payment obligations of the Revolving Lenders
under this paragraph (a)), and the Administrative Agent shall promptly
pay to the Revolving Facility Facing Agent the amounts so received by it from
the Revolving Lenders (it being understood and agreed that (i) if the
conditions precedent to borrowing set forth herein have been met, then any such
amount paid by any Revolving Lender shall be deemed to constitute an ABR
Revolving Loan of such Lender and, to the extent of such payment, the obligations
of SSCE in respect of such LC Disbursement shall be discharged and replaced by
the resulting ABR Revolving Credit Borrowing and (ii) if such conditions
precedent to borrowing have not been met, then any such amount paid by any
Revolving Lender shall not constitute a Loan and shall not relieve SSCE of its
obligation to reimburse such LC Disbursement). 
The Revolving Facility Facing Agent will promptly notify the
Administrative Agent of any amount subsequently received by it from SSCE or
another Loan Party in respect of such LC Disbursement and, in the event that
Revolving Lenders have made payments pursuant to this paragraph (a),
shall promptly remit to the Administrative Agent any such amount, and the
Administrative Agent shall distribute such amount to the Revolving Lenders and
the Revolving Facility Facing Agent as their interests may appear.

 

(b)  If
the Revolving (Canadian) Facility Facing Agent shall pay any draft or other
form of demand presented under a Revolving (Canadian) Facility Letter of Credit,
SSC Canada shall pay to the Revolving (Canadian) Facility Facing Agent an
amount equal to the amount of such draft or other form of demand not later than
two hours after SSC Canada shall have received notice from the Revolving
(Canadian) Facility Facing Agent that payment of such draft or other form of
demand will be made or, if SSC Canada shall have received such notice later
than 10:00 a.m., Standard Time, on any Business Day, not later than
10:00 a.m., Standard Time, on the immediately following Business Day, provided
that SSC Canada may, subject to the conditions to borrowing set forth herein,
request in accordance with Section 2.03 that such reimbursement
payment be financed with an ABR Revolving (Canadian) Credit Borrowing or, if
such LC Disbursement is denominated in Canadian Dollars, a Canadian Prime Rate
Borrowing in an equivalent amount and, to the extent so financed, the
obligations of SSC Canada in respect of such LC Disbursement shall be
discharged and

 

85

 

replaced by the resulting ABR
Revolving (Canadian) Credit Borrowing or Canadian Prime Rate Borrowing, as the
case may be.  If SSC Canada fails to make
such reimbursement payment when due and such reimbursement payment is not
financed with a Borrowing as contemplated by the immediately preceding
sentence, the Revolving (Canadian) Facility Facing Agent shall notify the
Canadian Administrative Agent, which shall in turn notify each Revolving
(Canadian) Lender of such LC Disbursement, the reimbursement payment then due
from SSC Canada in respect thereof and such Lender’s Applicable Percentage
thereof.  Promptly following receipt of
such notice, each Revolving (Canadian) Lender shall pay to the Canadian
Administrative Agent an amount equal to such Lender’s Applicable Percentage of
the reimbursement payment then due from SSC Canada, in the same manner as
provided in Section 2.02(c) with respect to Loans made by such
Lender (and Section 2.02(c) shall apply, mutatis mutandis, to the
payment obligations of the Revolving (Canadian) Lenders under this paragraph
(b)), and the Canadian Administrative Agent shall promptly pay to the
Revolving (Canadian) Facility Facing Agent the amounts so received by it from
the Revolving (Canadian) Lenders (it being understood and agreed that (i) if
the conditions precedent to borrowing set forth herein have been met, then any
such amount paid by any Revolving (Canadian) Lender shall be deemed to
constitute an ABR Revolving (Canadian) Loan or, if such LC Disbursement is
denominated in Canadian Dollars, a Canadian Prime Rate Loan of such Lender and,
to the extent of such payment, the obligations of SSC Canada in respect of such
LC Disbursement shall be discharged and replaced by the resulting ABR Revolving
(Canadian) Credit Borrowing or Canadian Prime Rate Borrowing, as the case may
be, and (ii) if such conditions precedent to borrowing have not been met, then
any such amount paid by any Revolving (Canadian) Lender shall not constitute a
Loan and shall not relieve SSC Canada of its obligation to reimburse such LC
Disbursement).  The Revolving (Canadian)
Facility Facing Agent will promptly notify the Canadian Administrative Agent of
any amount subsequently received by it from SSC Canada or another Loan Party in
respect of such LC Disbursement and, in the event that Revolving (Canadian)
Lenders have made payments pursuant to this paragraph (b), shall
promptly remit to the Canadian Administrative Agent any such amount, and the
Canadian Administrative Agent shall distribute such amount to the Revolving
(Canadian) Lenders and the Revolving (Canadian) Facility Facing Agent as their
interests may appear.

 

(c)  If
the Deposit Funded Facility Facing Agent shall pay any draft or other form of
demand presented under a Deposit Funded Facility Letter of Credit, SSCE shall
pay to the Deposit Funded Facility Facing Agent an amount equal to the amount
of such draft or other form of demand not later than two hours after SSCE shall
have received notice from the Deposit Funded Facility Facing Agent that payment
of such draft or other form of demand will be made or, if SSCE shall have
received such notice later than 10:00 a.m., Standard Time, on any Business
Day, not later than 10:00 a.m., Standard Time, on the immediately
following Business Day.  If the Deposit
Funded Facility Facing Agent has not received from SSCE such reimbursement
payment when due, the Deposit Funded Facility Facing Agent will promptly notify
the Administrative Agent and the Deposit Account Agent of such LC Disbursement,
and the Administrative Agent shall in turn notify each Deposit Funded Lender of
such LC Disbursement, the reimbursement payment then due from SSCE in respect
thereof and such Lender’s Applicable Percentage thereof.  Each Deposit Funded Lender hereby authorizes
the

 

86

 

Deposit Account Agent, and the
Deposit Account Agent hereby agrees, to withdraw from the Deposit Account the
amount of such reimbursement payment and to make such amount available to the
Deposit Funded Facility Facing Agent (it being understood and agreed that (i)
if the conditions precedent to borrowing set forth herein have been met, then
such Lender’s Applicable Percentage of such amount shall be deemed to
constitute its Deposit Funded Loan and the obligations of SSCE with respect to
such LC Disbursement shall be discharged and replaced by the resulting Deposit
Funded Borrowing and (ii) if such conditions precedent have not been met, then
such amount shall not constitute a Loan and shall not relieve SSCE of its
obligation to reimburse such LC Disbursement). 
The Deposit Funded Facility Facing Agent will promptly notify the
Administrative Agent and the Deposit Account Agent of any amount subsequently
received by it from SSCE in respect of such LC Disbursement and shall promptly
remit to the Deposit Account Agent any such amount, which shall in turn deposit
such amount into the Deposit Account. 
Thereafter, any such amounts deposited to the Deposit Account shall be
available to reimburse the Deposit Funded Facility Facing Agent in accordance
with the second preceding sentence of this paragraph (c).   Notwithstanding anything herein to the
contrary, the funding obligation of each Deposit Funded Lender in respect of
its participations of Deposit Funded Facility Letters of Credit shall be
satisfied in full upon the funding of an amount equal to its Deposit Funded
Commitment into the Deposit Account.

 

SECTION 3.06.  Obligations Absolute.  Each Borrower’s obligation to repay the
applicable Facing Agent for LC Disbursements made by the applicable Facing
Agent under the outstanding Letters of Credit for the account of the applicable
Borrower shall be absolute, unconditional and irrevocable under any and all
circumstances and irrespective of:

 

(a)  any lack of validity or enforceability of any
Letter of Credit;

 

(b)  the existence of any claim, setoff, defense
or other right that the applicable Borrower or any other Person may at any time
have against the beneficiary or transferee under any Letter of Credit, any
Facing Agent, the Administrative Agent, any Lender or any other Person (other
than the defense of payment in accordance with the terms of this Agreement or a
defense based on the gross negligence or willful misconduct of the applicable
Facing Agent) in connection with this Agreement or any other agreement or
transaction;

 

(c)  any draft or other document presented under a
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any respect,
provided that payment by the applicable Facing Agent under such Letter
of Credit against presentation of such draft or document shall not have
constituted gross negligence or willful misconduct of the applicable Facing
Agent;

 

(d)  payment by the applicable Facing Agent under
a Letter of Credit against presentation of a draft or other document that does
not comply with the terms of such Letter of Credit, provided that such
payment shall not have

 

87

 

constituted
gross negligence or willful misconduct of the applicable Facing Agent; and

 

(e)  any other circumstance or event whatsoever,
whether or not similar to any of the foregoing, provided that such
circumstance or event shall not have been the result of gross negligence or
willful misconduct of the applicable Facing Agent.

 

It is understood that in making any payment
under a Letter of Credit (i) the applicable Facing Agent’s exclusive
reliance on the documents presented to it under such Letter of Credit as to any
and all matters set forth therein, including reliance on the amount of any
draft presented under such Letter of Credit, whether or not the amount due to
the beneficiary equals the amount of such draft and whether or not any document
presented pursuant to such Letter of Credit proves to be insufficient in any
respect, if such document on its face appears to be in order, and whether or
not any other statement or any other document presented pursuant to such Letter
of Credit proves to be forged or invalid or any statement therein proves to be
inaccurate or untrue in any respect whatsoever, and (ii) any noncompliance
in any immaterial respect of the documents presented under a Letter of Credit
with the terms thereof shall not, in each case, be deemed willful misconduct or
gross negligence of the applicable Facing Agent.

 

SECTION 3.07.  Disbursement Procedures.  The applicable Facing Agent shall, promptly
following its receipt thereof, examine all documents purporting to represent a
demand for payment under a Letter of Credit. 
The applicable Facing Agent shall promptly notify (a) the Administrative
Agent in the case of Revolving Facility Letters of Credit, (b) the Canadian
Administrative Agent in the case of Revolving (Canadian) Facility Letters of Credit
and (c) the Administrative Agent and the Deposit Account Agent in the case of
Deposit Funded Facility Letters of Credit and, in each case, the applicable
Borrower by telephone (confirmed by fax) of such demand for payment and whether
such Facing Agent has made or will make a LC Disbursement thereunder, provided
that any failure to give or delay in giving such notice shall not relieve the
applicable Borrower of its obligation to reimburse the applicable Facing Agent
and the Revolving Lenders, Revolving (Canadian) Lenders or Deposit Funded
Lenders, as the case may be, with respect to any such LC Disbursement.

 

SECTION 3.08.  Interim Interest.  If a Facing Agent shall make any LC
Disbursement, then, unless the applicable Borrower shall reimburse such LC Disbursement
in full on the date such LC Disbursement is made, the unpaid amount thereof
shall bear interest, for each day from and including the date such LC
Disbursement is made to but excluding the date that the applicable Borrower
reimburses such LC Disbursement, at (a) in the case of LC Disbursements (other
than LC Disbursements in respect of any Deposit Funded Facility Letter of
Credit) denominated in U.S. Dollars, the rate per annum then applicable to ABR
Revolving Loans, (b) in the case of LC Disbursements denominated in Canadian
Dollars, the rate per annum then applicable to Canadian Prime Rate Loans, and
(c) in the case of LC Disbursements in respect of any Deposit Funded Facility
Letter of Credit, the rate per annum then applicable to ABR Tranche B Loans; provided
that, if the applicable Borrower fails to

 

88

 

reimburse such LC Disbursement
when due pursuant to Section 3.05, then Section 2.07 shall
apply.  Interest accrued pursuant to this
Section 3.08 shall be for the account of the applicable Facing Agent,
except that interest accrued on and after the date of payment by any Revolving
Lender, Revolving (Canadian) Lender or Deposit Funded Lender, as the case may
be, pursuant to Section 3.05 to reimburse the applicable Facing
Agent shall be for the account of such Lender to the extent of such payment.

 

SECTION 3.09.  Cash Collateralization.  If any Event of Default shall occur and be
continuing, on the Business Day that the Borrowers receive notice from the
Administrative Agent or the Required Lenders (or, if the maturity of the Loans
has been accelerated, Lenders with LC Exposure representing greater than 50% of
the total LC Exposure) demanding the deposit of cash collateral pursuant to
this Section 3.09, (a) SSCE shall deposit (i) in an account with
the Administrative Agent, in the name of the Administrative Agent and for the
benefit of the Revolving Lenders, an amount in cash equal to the Revolving
Facility LC Exposure as of such date plus any accrued and unpaid fees
and interest thereon and (ii) in an account with the Deposit Account Agent, in
the name of the Deposit Account Agent and for the benefit of the Deposit Funded
Lenders, an amount in cash equal to the Deposit Funded Facility LC Exposure as
of such date plus any accrued and unpaid fees and interest thereon, and
(b) SSC Canada shall deposit in an account with the Canadian
Administrative Agent, in the name of the Canadian Administrative Agent and for
the benefit of the Revolving (Canadian) Lenders, an amount in cash equal to the
Revolving (Canadian) Facility LC Exposure as of such date plus any
accrued and unpaid fees and interest thereon; provided that the
obligation to deposit such cash collateral shall become effective immediately,
and such deposit shall become immediately due and payable, without demand or
other notice of any kind, upon the occurrence of any Event of Default with
respect to SSCC or either Borrower described in paragraph (g) or (h)
of Article VIII.  Each such
deposit shall be held by the Administrative Agent, the Canadian Administrative
Agent or the Deposit Account Agent, as applicable, as collateral for the
payment and performance of the obligations of the Borrowers under this
Agreement.  The Administrative Agent,
Canadian Administrative Agent and the Deposit Account Agent, as applicable,
shall have exclusive dominion and control, including the exclusive right of
withdrawal, over such accounts.  Other
than any interest earned on the investment of such deposits, which investments
shall be made at the option and sole discretion of the Administrative Agent,
the Canadian Administrative Agent or the Deposit Account Agent, as applicable,
and at the Borrowers’ risk and expense, such deposits shall not bear
interest.  Interest or profits, if any,
on such investments shall accumulate in such account.  Moneys in such account shall be applied by
the Administrative Agent, the Canadian Administrative Agent or the Deposit
Account Agent, as applicable, to reimburse the applicable Facing Agent for LC
Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
SSCE for the Revolving Facility LC Exposure or for the Deposit Funded LC
Exposure, as applicable, and the reimbursement obligations of SSC Canada for
the Revolving (Canadian) Facility LC Exposures at such time or, if the maturity
of the Loans has been accelerated (but subject to the consent of Lenders with
LC Exposure representing greater than 50% of the total LC Exposure), be applied
to satisfy other obligations of the Borrowers under this Agreement.  If the Borrowers are required to provide an
amount of cash collateral hereunder as a result of

 

89

 

the occurrence of an Event of
Default, such amount (to the extent not applied as aforesaid) shall be returned
to the applicable Borrower within three Business Days after all Events of
Default have been cured or waived.

 

SECTION 3.10.  Replacement of a Facing Agent.  A Facing Agent may be replaced at any time by
written agreement among the Borrowers, the Senior Agents, the Administrative
Agent, the replaced Facing Agent and the successor Facing Agent.  Any such successor Revolving (Canadian)
Facility Facing Agent shall not be a non-resident of Canada or shall be deemed
to be resident in Canada for purposes of Part XIII of the ITA in respect of the
Revolving (Canadian) Facility Letters of Credit to be issued by it.  The Administrative Agent shall notify the
Lenders of any such replacement of a Facing Agent.  At the time any such replacement shall become
effective, the Borrowers shall pay all unpaid fees accrued for the account of
the replaced Facing Agent pursuant to Sections 2.05(b), (c)
and (d).  From and after the
effective date of any such replacement, (a) the successor Facing Agent
shall have all the rights and obligations of a Facing Agent under this
Agreement with respect to Letters of Credit to be issued thereafter and
(b) references herein to the term “Facing Agent” and to the term “Revolving
Facility Facing Agent”, “Revolving (Canadian) Facility Facing Agent” or “Deposit
Funded Facility Facing Agent,” as applicable, shall be deemed to refer to such
successor or to any previous Facing Agent, or to such successor and all
previous Facing Agents, as the context shall require.  After the replacement of a Facing Agent
hereunder, the replaced Facing Agent shall remain a party hereto and shall
continue to have all the rights and obligations of a Facing Agent under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement, but shall not be required to issue additional Letters of Credit.

 

SECTION 3.11.  Additional Facing Agents.  The Borrowers may, at any time and from time
to time with the consent of the Senior Agents (which consent shall not be
unreasonably withheld) and such Lender, designate one or more additional
Lenders to act as a Revolving Facility Facing Agent or a Revolving (Canadian)
Facility Facing Agent under the terms of this Agreement.  Any Lender designated as a Revolving Facility
Facing Agent or a Revolving (Canadian) Facility Facing Agent pursuant to this Section 3.11
shall, in addition to being a Lender, be deemed to be the “Revolving Facility
Facing Agent” or “Revolving (Canadian) Facility Facing Agent”, as the case may
be, in respect of Letters of Credit issued or to be issued by such Lender, and,
with respect to such Letters of Credit, such term shall thereafter apply to any
other Revolving Facility Facing Agent or Revolving (Canadian) Facility Facing
Agent, as applicable, and such Lender.

 

SECTION 3.12.  Existing Letters of Credit.  The Borrowers, the Facing Agents and the
Lenders acknowledge the issuance of the Existing Letters of Credit and agree
that such Existing Letters of Credit shall constitute Letters of Credit
pursuant to the terms and conditions of this Agreement and the other Loan
Documents.

 

90

 

ARTICLE IV

 

Representations
and Warranties

 

Each of SSCC and the Borrowers represents and
warrants to each of the Lenders, the Agents and the Facing Agents that:

 

SECTION 4.01.  Organization; Powers.  Each of the Loan Parties (a) is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has all requisite power and
authority to own its property and assets and to carry on its business as now
conducted, (c) is qualified to do business in every jurisdiction where
such qualification is required by the nature of its business, the character and
location of its property, business or customers, or the ownership or leasing of
its properties, except for such jurisdictions in which the failure so to
qualify, in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect, and (d) has the requisite power and authority to execute,
deliver and perform its obligations under each of the Loan Documents and each
other agreement or instrument contemplated thereby to which it is or will be a
party and, in the case of the Borrowers, to borrow hereunder.

 

SECTION 4.02.  Authorization.  The execution, delivery and performance by
the parties party thereto of the Merger Agreement and the transactions
contemplated thereby (collectively, the “Merger Transactions”) and by
each of the Loan Parties of each of the Loan Documents to which it is a party,
the Borrowings hereunder, the issuance of the Letters of Credit, the use of the
proceeds of the Loans and the Letters of Credit, the creation of the security
interests contemplated by the Security Documents and the other transactions
contemplated by the Loan Documents (other than the Merger Transactions)
(collectively, the “Credit Transactions” and, together with the Merger
Transactions, the “Transactions”) (a) have been duly authorized by
all requisite corporate and, if required, stockholder action and (b) will
not (i) violate (A) any provision of law, statute, rule or
regulation, other than any law, statute, rule or regulation the violation of
which could not reasonably be expected to result in a Material Adverse Effect,
or of the certificate of incorporation or other constitutive documents or by-laws
of any Loan Party or any of its subsidiaries, (B) any order of any
Governmental Authority or (C) any provision of any indenture or other
material agreement or other material instrument to which any Loan Party or any
of its subsidiaries is a party or by which any of them or any of their property
is or may be bound, except, with respect to the Merger Transactions, where such
violations could not reasonably be expected to have a Material Adverse Effect,
(ii) constitute (alone or with notice or lapse of time or both) a default
under any such indenture, agreement or other instrument, except, with respect
to the Merger Transactions, where such defaults could not reasonably be
expected to have a Material Adverse Effect, or (iii) result in the
creation or imposition of any Lien (other than any Lien created hereunder or
under the Security Documents) upon or with respect to any property or assets
now owned or hereafter acquired by any Loan Party or any of its subsidiaries.

 

91

 

SECTION 4.03.  Enforceability.  This Agreement has been duly executed and
delivered by SSCC and each Borrower and constitutes, and each other Loan
Document when executed and delivered by each Loan Party that is party thereto
will constitute, a legal, valid and binding obligation of SSCC, each Borrower
and the other Loan Parties, as applicable, enforceable against each of them in
accordance with its terms (except as the enforceability thereof may be limited
by bankruptcy, insolvency reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and subject to general
principles of equity (whether enforcement is sought by proceeding in equity or
at law)).

 

SECTION 4.04.  Governmental Approvals.  No action, consent or approval of,
registration or filing with or any other action by any Governmental Authority
is or will be required in connection with the Transactions, except for
(a) the filing of Uniform Commercial Code financing statements and similar
security or collateral filings and registrations under applicable laws in other
jurisdictions, (b) recordation of the Mortgages, (c) filings with the
United States Patent and Trademark Office, the United States Copyright Office
and the Canadian Intellectual Property Office, and registrations with the
Registers of Personal and Movable Real Rights of the Province of Quebec and
with Land Registers for various Land Registration Divisions of the Province of
Quebec, (d) such actions, consents, approvals, registrations and filings
as have been made or obtained and are in full force and effect, and
(e) with respect to the Merger Transactions, actions, consents, approvals,
registrations, filings or other actions the failure to obtain which could not
reasonably be expected to have a Material Adverse Effect.

 

SECTION 4.05.  Financial Statements.  Each of SSCC, SSCE and SSC Canada has
delivered to the Lenders (a) its audited financial statements for the
fiscal year ended December 31, 2003, together with its annual report on
Form 10-K, if any, filed with the Securities and Exchange Commission with
respect to such fiscal year, and (b) its unaudited financial statements
for the fiscal quarter ended June 30, 2004, together with its quarterly report
on Form 10-Q, if any, filed with the Securities and Exchange Commission
with respect to such fiscal quarter.  All
financial statements set forth or referred to in the materials specified in the
preceding sentence were prepared in conformity with U.S. GAAP or Canadian GAAP,
as applicable, except, in the case of unaudited financial statements, for the
absence of footnote disclosure and for year-end audit adjustments.  All such financial statements fairly present
in all material respects the consolidated financial position of such Persons
and their respective subsidiaries as at the date thereof and the consolidated
results of operations and cash flows of such Persons and their respective
subsidiaries for each of the periods covered thereby.  Except as disclosed in such financial
statements, neither SSCC nor any of the Subsidiaries had at the date of such
financial statements any material contingent obligation, material contingent liability
or material liability for taxes, long-term lease or unusual forward or
long-term commitment or obligations to retired employees for medical or other
employee benefits that is not reflected in the foregoing financial statements
or the notes thereto.

 

SECTION 4.06.  No Material Adverse Effect.  Since December 31, 2003, there has been no
event or condition that has had, or could reasonably be expected to have, a
Material Adverse Effect.

 

92

 

SECTION 4.07.  Title to Properties; Possession Under
Leases.  (a)  Except as set forth on Schedule 4.07,
each of SSCC and the Subsidiaries has good and marketable title to, or valid
leasehold interests in, all its material properties and assets, except for
minor defects in title that do not interfere in any material respect with its
ability to conduct its business as currently conducted.  All such title to, or leasehold interest in,
material properties and assets are free and clear of Liens, other than Liens
expressly permitted by Section 7.02 and Liens with respect to which
the Collateral Agent has received on or prior to the Closing Date duly executed
releases and termination statements in connection therewith.

 

(b)  Each
of SSCC and the Subsidiaries has complied with all obligations under all leases
to which it is a party and enjoys peaceful and undisturbed possession under all
such leases, except where the failure thereof could not reasonably be expected
to have a Material Adverse Effect.

 

SECTION 4.08.  Subsidiaries.  Schedule 4.08 sets forth as of
the Closing Date a list of all the Subsidiaries of SSCC, their jurisdiction of
organization and the percentage ownership interest in each Subsidiary held by
SSCC or any other Subsidiary.

 

SECTION 4.09.  Litigation; Compliance with Laws.  (a)  Except
as set forth in Schedule 4.09, there are no actions, suits or
proceedings at law or in equity or by or before any Governmental Authority now
pending or, to the knowledge of SSCC or either Borrower, threatened against or
affecting SSCC or any of the Subsidiaries or any business or property of any
such Person that (i) purports to affect the legality, validity or
enforceability of any Loan Document or the Transactions or (ii) could
reasonably be expected, individually or in the aggregate, to result in a
Material Adverse Effect.

 

(b)  Neither
SSCC nor any of the Subsidiaries nor any of their respective properties or
assets is (i) in violation of, nor will the continued operation of their
properties and assets as currently conducted violate, any law, rule,
regulation, statute (including any zoning, building, Environmental Laws,
ordinance, code or approval or any building permits) or any restrictions of
record or agreements affecting the Mortgaged Properties, where such violations
could reasonably be expected to have a Material Adverse Effect or (ii) in
default with respect to any judgment, writ, injunction, decree or order of any
Governmental Authority, where such defaults, individually or in the aggregate,
could reasonably be expected to result in a Material Adverse Effect.

 

SECTION 4.10.  Federal Reserve Regulations.  (a)  Neither
SSCC nor any of the Subsidiaries is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.

 

(b)  No
part of the proceeds of any Letter of Credit Loan has been used, whether
directly or indirectly, and whether immediately, incidentally or ultimately,
(i) to purchase or carry Margin Stock or to extend credit to others for
the purpose of purchasing or carrying Margin Stock or to refund indebtedness
originally incurred for such purpose or (ii) for any purpose that entails
a violation of, or is inconsistent with, the provisions of the Regulations of
the Board, including Regulation T, U or X.

 

93

 

SECTION 4.11.  Investment Company Act; Public Utility
Holding Company Act.  Neither SSCC
nor any of the Subsidiaries (a) is an “investment company” as defined in,
or is subject to regulation under, the Investment Company Act of 1940 or
(b) is a “holding company” as defined in, or is subject to regulation
under, the Public Utility Holding Company Act of 1935.

 

SECTION 4.12.  Tax Returns.  Each of SSCC and the Subsidiaries has filed
or caused to be filed all Federal, foreign, state, provincial, regional and
local income and other material tax returns required to have been filed by it
or with respect to it and has paid or caused to be paid all taxes shown to be
due and payable on such returns or on any assessments received by it or with
respect to it, except taxes that are being contested in good faith by
appropriate proceedings and for which it has set aside on its books adequate
reserves in accordance with U.S. GAAP or Canadian GAAP, as applicable.

 

SECTION 4.13.  No Material Misstatements.  The information provided by or on behalf of
SSCC and the Borrowers and contained in the Confidential Information Memorandum
(including all attachments and exhibits thereto), as supplemented, and other
information furnished in writing by or on behalf of SSCC or the Borrowers to
any Agent or any Lenders in connection with the transactions contemplated by
this Agreement and the other Loan Documents, when taken as a whole, as of the
date such information was so furnished, does not contain any untrue statement
of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made,
when taken as a whole, not materially misleading, provided that to the
extent any such information therein was based upon or constitutes a forecast or
projection or pro forma financial information, each of SSCC and the Borrowers
represents only that it acted in good faith and utilized reasonable assumptions,
due and careful consideration and the information actually known to Responsible
Officers of such Person at the time in the preparation of such information.

 

SECTION 4.14.  Employee Benefit Plans.  (a)  Each
of SSCC and its ERISA Affiliates is in compliance in all material respects with
the applicable provisions of ERISA and the Code and the regulations and
published interpretations thereunder.  No
ERISA Event has occurred or could reasonably be expected to occur that, when
taken together with all other ERISA Events that have occurred or could
reasonably be expected to occur, could reasonably be expected to have a
Material Adverse Effect.  The present
value of all benefit liabilities of all underfunded Plans (based on those
assumptions used to fund each such Plan) did not, as of the last annual
valuation dates applicable thereto, exceed the value of the assets of the Plans
by an amount that could reasonably be expected to result in a Material Adverse
Effect.

 

(b)  The
Canadian Pension Plans are duly registered under the ITA and any other
applicable laws which require registration, have been administered in all
material respects in accordance with the ITA and such other applicable laws,
and no event has occurred which could reasonably be expected to cause the loss
of such registered status.  All material
obligations of SSC Canada and the other Canadian Subsidiaries required to be
performed by SSC Canada or the other Canadian Subsidiaries in connection with
the Canadian Pension Plans and the funding agreements therefor have

 

94

 

been performed on a timely basis.  As of the Closing Date, there are no
outstanding disputes concerning the assets of the Canadian Pension Plans or the
Canadian Benefit Plans.  No promises of
benefit improvements under the Canadian Pension Plans or the Canadian Benefit
Plans have been made, except where such improvement could not reasonably be
expected to have a Material Adverse Effect. 
All contributions or premiums required to be made or paid by SSC Canada
and each of its Subsidiaries to the Canadian Pension Plans or the Canadian
Benefit Plans have been made on a timely basis in accordance with the terms of
such plans and all applicable laws. 
There have been no improper withdrawals or applications of the assets of
the Canadian Pension Plans or the Canadian Benefit Plans.  None of the Canadian Pension Plans or the
Canadian Benefit Plans has any unfunded actuarial liabilities or solvency
deficiencies (within the meaning of the Quebec Supplemental Pension Plans Act
and other applicable laws) in an aggregate amount that could reasonably be
expected to result in a Material Adverse Effect.

 

SECTION 4.15.  Environmental and Safety Matters.  Except as set forth on Schedule 4.15:

 

(a)  Each of SSCC and the Subsidiaries has
obtained all permits, licenses and other authorizations that are required and
material with respect to the operation of the business of SSCC and the
Subsidiaries, taken as a whole, under any Environmental Law, and each such
permit, license and authorization is in full force and effect, except where the
failure thereof could not reasonably be expected to have a Material Adverse
Effect.

 

(b)  Each of SSCC and the Subsidiaries is in
compliance with all material terms and conditions of the permits, licenses and
authorizations specified in paragraph (a) above, and is also in
compliance with all other limitations, restrictions, conditions, standards,
prohibitions, requirements, obligations, schedules and timetables contained in
any Environmental Law applicable to it and its business, assets, operations and
properties, except for any noncompliance that could not reasonably be expected
to have a Material Adverse Effect.

 

(c)  There is no civil, criminal or administrative
action, suit, demand, claim, hearing, notice of violation, investigation,
proceeding, notice or demand letter or request for information pending or, to
the knowledge of SSCC or either Borrower, after inquiry, threatened against
either Borrower or any of the Subsidiaries under any Environmental Law that
could reasonably be expected to result have a Material Adverse Effect.

 

(d)  Neither SSCC nor any of the Subsidiaries has
received notice that it has been identified as a potentially responsible party
under the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended (“CERCLA”) or any comparable state law or Canadian
federal or provincial law or that any hazardous substances or any pollutant or
contaminant, as defined in CERCLA and its implementing regulations, or any
toxic substance, hazardous waste, hazardous constituents, hazardous materials,
asbestos or asbestos containing material, polychlorinated biphenyls, petroleum,
including crude oil and any fractions thereof, or

 

95

 

other wastes, chemicals, substances or
materials regulated by any Environmental Laws (collectively, “Hazardous
Materials”) that it or any of their respective predecessors in interest has
used, generated, stored, tested, handled, transported or disposed of, has been
found at any site at which any Governmental Authority or private party is
conducting a remedial investigation or other action pursuant to any
Environmental Law, except for any such notices that could not reasonably be
expected to have a Material Adverse Effect.

 

(e)  There have been no releases or threatened
releases of Hazardous Materials by SSCC or any of the Subsidiaries on, upon,
into or from any of the Real Properties, which releases or threatened releases
could reasonably be expected to have a Material Adverse Effect.  To the best knowledge of SSCC and each
Borrower, there have been no such releases or threatened releases on, upon,
under or into any real property in the vicinity of any of the Real Properties
that, through soil, surface water or groundwater migration or contamination,
may be located on, in or under such Real Properties and which could reasonably
be expected to have a Material Adverse Effect.

 

(f)  To the best knowledge of SSCC and each
Borrower, there is no asbestos in, on, or at any Real Properties or any facility
or equipment of SSCC or any of the Subsidiaries, except to the extent that the
presence of, or exposure to, such material could not reasonably be expected to
have a Material Adverse Effect.

 

(g)  As of the Closing Date, to the knowledge of
SSCC and each Borrower, none of the Real Properties are (i) listed or
proposed for listing on the National Priorities List under CERCLA or
(ii) listed in the Comprehensive Environmental Response, Compensation,
Liability Information System List promulgated pursuant to CERCLA.

 

(h)  To the knowledge of SSCC and each Borrower,
there are no events, conditions, circumstances, activities, practices,
incidents, actions or plans that could reasonably be anticipated to interfere
with or prevent compliance with any Environmental Law, or which may give rise
to liability under any Environmental Law, or otherwise form the basis of any
claim, action, demand, suit, proceeding, hearing or notice of violation, study
or investigation, based on or related to the manufacture, processing, distribution,
use, generation, treatment, storage, disposal, transport, shipping or handling,
the emission, discharge, release or threatened release into the environment of,
or exposure to, any Hazardous Material that could reasonably be expected to
have a Material Adverse Effect.

 

SECTION 4.16.  Solvency.  Immediately after giving effect to the
Transactions to occur on the Closing Date, (a) the present fair saleable
value of the assets of SSCC and the Subsidiaries, on a consolidated basis, will
exceed the amount that will be required to be paid on or in respect of the
existing debts and other liabilities (including contingent liabilities) of
SSCC  and the Subsidiaries, on a
consolidated basis, as they become absolute and mature, (b) SSCC and the
Subsidiaries, on a consolidated basis, will not have unreasonably small capital
to carry out their businesses as conducted or as proposed to be conducted, and
(c) neither SSCC nor any Borrower intends to, nor does it intend to permit
any of its subsidiaries to, and does not believe that it or any such

 

96

 

subsidiary will, incur debts beyond its
ability to pay such debts as they become absolute and mature (taking into
account the timing and amounts of cash to be received by each of them or any
such subsidiary and the amounts to be payable on or in respect of its
obligations).

 

SECTION 4.17.  Security Documents.  (a)  The
Guarantee and Collateral Agreement (U.S.), upon execution and delivery thereof
by the parties thereto, will create in favor of the Collateral Agent, for the
ratable benefit of the beneficiaries named therein, a legal, valid and
enforceable security interest in the Collateral (as defined therein) (other
than vessels) and proceeds thereof and (i) when the Pledged Collateral (as
defined therein) is delivered to the Collateral Agent, the Guarantee and
Collateral Agreement (U.S.) shall constitute a fully perfected first priority
Lien on, and security interest in, all right, title and interest of the Loan
Parties in such Pledged Collateral, in each case prior and superior in right to
any other Person, and (ii) when financing statements in appropriate form have
been duly filed in the offices specified on Schedule 4.17(a), the Lien
created under the Guarantee and Collateral Agreement (U.S.) (other than with
respect to the aforesaid Pledged Collateral) will constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the Loan
Parties in such Collateral, and the proceeds thereof, to the extent perfection
can be obtained by filing Uniform Commercial Code financing statements, in each
case prior and superior in right to any other Person, other than with respect
to Permitted Liens.

 

(b)  The
Canadian Security Agreements and Hypothecs, upon execution and delivery thereof
by the parties thereto, will create in favor of the Collateral Agent, for the
ratable benefit of the beneficiaries named therein, a legal, valid and
enforceable security interest or hypothec in the Collateral (as defined in the
Canadian Security Agreements) (other than federally documented vessels,
registered vehicles, aircraft, railcars and other similar rolling stock and
other federally documented property) and proceeds thereof and (i) when the
Pledged Collateral (as defined in the Pledge Agreement (Canadian)) is delivered
to the Collateral Agent, the Pledge Agreement (Canadian) shall constitute a
fully perfected or published first priority or first-ranking Lien on, and
security interest in, all right, title and interest of the Loan Parties in such
Pledged Collateral, in each case prior and superior in right to any other
Person and (ii) when financing statements or applications for registration in
appropriate form have been duly filed or registered in the offices specified on
Schedule 4.17(b), each Lien created under the Canadian Security
Agreements and the Hypothecs will constitute a fully perfected or published
Lien on, and security interest or hypothecs in, all right, title and interest
of the Loan Parties in such Collateral, and the proceeds thereof, to the extent
perfection or publication can be obtained by filing Personal Property Security
Act financing statements or similar filings or registrations under the
applicable laws of any other Canadian jurisdiction, in each case prior and
superior in right to any other Person, other than with respect to Permitted
Liens.

 

(c)  When
the IP Security Agreements are duly filed with the United States Patent and
Trademark Office and the United States Copyright Office, as applicable, and
when financing statements in appropriate form have been duly filed

 

97

 

in the offices specified on Schedule 4.17(a), the security
interest created thereunder shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in the
registered intellectual property described therein and owned by the applicable
Loan Parties and in which a security interest may be perfected by filing a
security agreement in the United States, in each case prior and superior in
right to any other Person, other than with respect to Permitted Liens (it being
understood that subsequent recordings in the United States Patent and Trademark
Office and the United States Copyright Office may be necessary to perfect a
Lien on registered trademarks, trademark applications, designs, patents, patent
applications and copyrights acquired by a Loan Party after the Closing Date).

 

(d)  When
the Security Agreement (Canadian) and each Hypothec is duly filed with the
Canadian Intellectual Property Office, the security interest or hypothec
created thereunder shall constitute a fully perfected or published Lien on, and
security interest or hypothec in, all right, title and interest of the Loan
Parties in the registered intellectual property described therein and owned by
the applicable Loan Parties and in which a security interest or hypothec may be
perfected or published by filing, recording or registering a security
agreement, financing statement or analogous document in the Canadian
Intellectual Property Office, in each case prior and superior in right to any
other Person, other than with respect to Permitted Liens (it being understood
that subsequent recordings in the Canadian Intellectual Property Office may be
necessary to perfect or publish a Lien on such registered trademarks, trademark
applications, designs, patents, patent applications and copyrights acquired by
a Loan Party after the Closing Date).

 

(e)  The Mortgages create in favor of the Collateral
Agent, for the ratable benefit of the beneficiaries named therein, a legal,
valid and enforceable Lien on all of the Loan Parties’ right, title and
interest in and to the Mortgaged Properties thereunder and the proceeds
thereof, and when the Mortgages are duly filed or registered in the offices
specified on Schedule 4.17(e), the Mortgages will constitute a
fully perfected or published Lien on, and security interest or hypothec in, all
right, title and interest of the Loan Parties in such Mortgaged Properties and
the proceeds thereof, in each case prior and superior in right to any other
Person, other than with respect to Permitted Liens or other encumbrances
permitted by the relevant Mortgage.

 

SECTION 4.18.  Labor Matters.  As of the Closing Date, there are no strikes
or other labor disputes against SSCC or any of the Subsidiaries pending or, to
the knowledge of SSCC or either Borrower, threatened, except as set forth on Schedule 4.18.  The hours worked by and payment made to
employees of any Loan Party have not been in violation of the Fair Labor
Standards Act or any other applicable Federal, state, local or foreign law
dealing with such matters, where such violations could reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect.  The consummation of the Transactions will not
give rise to a right of termination or right of renegotiation on the part of
any union under any collective bargaining agreement to which SSCC or any of the
Subsidiaries is a party or by which SSCC or any of the Subsidiaries is bound on
the Closing Date.

 

98

 

SECTION 4.19.  Location of Real Property.  Schedule 4.19 sets forth as of
the Closing Date all material real property owned by SSCC or any of the
Subsidiaries in the United States and Canada. 
All the real property set forth on Schedule 4.19 is, as of
the Closing Date, owned in fee by SSCC or a Subsidiary or, in the case of any
real property located in the Province of Quebec, such real property is owned
under the tenure of free and common soccage
or under the tenure of franc alleu roturier
by SSCC or a Subsidiary.

 

SECTION 4.20.  Patents, Trademarks, etc.  Each of SSCC and the Subsidiaries owns, or is
licensed or otherwise authorized to use, all patents, designs, trademarks,
trade names, copyrights, technology, know-how and processes, service marks and
rights with respect to the foregoing that are used in or necessary for the
conduct of its business as currently conducted, except where the lack thereof
could not reasonably be expected to have a Material Adverse Effect.  The use of such patents, designs, trademarks,
trade names, copyrights, technology, know-how, processes and rights with
respect to the foregoing by SSCC and the Subsidiaries does not infringe on the
rights of any Person, subject to such claims and infringements as do not, in
the aggregate, give rise to any liability on the part of SSCC and the
Subsidiaries that is material to SSCC and the Subsidiaries, taken as a whole.

 

ARTICLE V

 

Conditions

 

The obligation
of each Lender to make Loans hereunder and the obligation of each Facing Agent
to issue, amend, extend or renew any Letter of Credit hereunder (each, a “Credit
Event”) is subject to the satisfaction of the following conditions:

 

SECTION 5.01.  All Credit Events.  On the date of each Credit Event:

 

(a)  The Administrative Agent and, where
applicable, the applicable Facing Agent or the Swingline Lender, shall have
received a notice of such Credit Event as required by Section 2.03,
3.02 or 2.21(b), respectively.

 

(b)  The representations and warranties set forth
in Article IV hereof and in the other Loan Documents shall be true
and correct in all material respects on and as of the date of such Credit Event
with the same effect as though made on and as of such date, except to the
extent that such representations and warranties expressly relate to an earlier
date.

 

(c)  At the time of and immediately after such
Credit Event, no Default or Event of Default shall have occurred and be continuing.

 

Each Credit
Event shall be deemed to constitute a representation and warranty by SSCC and
each Borrower on the date of such Credit Event as to the matters specified in paragraphs (b)
and (c) of this Section 5.01.

 

99

 

SECTION 5.02.  Conditions Precedent to the Closing Date.  On the Closing Date:

 

(a)  The Administrative Agent shall have received
a favorable written opinion of (i) Winston & Strawn LLP, U.S. counsel
for the Loan Parties, substantially to the effect set forth in Exhibit N-1,
and Craig A. Hunt, Vice President and General Counsel for SSCC and SSCE,
substantially to the effect set forth in Exhibit N-2, (ii) Stikeman
Elliott LLP, Ontario counsel for the Loan Parties, substantially to the effect
set forth in Exhibit N-3, (iii) Stikeman Elliott LLP, Quebec
counsel for the Loan Parties, substantially to the effect set forth in Exhibit N-4,
(iv) Stikeman Elliott LLP, Canadian tax counsel for SSC Canada, substantially
to the effect set forth in Exhibit N-5, (v) Stewart McKelvey
Stirling Scales, Nova Scotia counsel for the Loan Parties, substantially to the
effect set forth in Exhibit N-6 and (vi) each local counsel set forth on
Schedule 5.02(a), in each case (A) dated the Closing Date,
(B) addressed to the Agents, the Lenders and the Facing Agents, and
(C) covering such other matters relating to the Loan Documents as the
Senior Agents shall reasonably request and with such other changes as are
reasonably acceptable to the Senior Agents. 
SSCC and the Borrowers hereby instruct their counsel to deliver such
opinions.

 

(b)  All legal matters incident to this Agreement,
the Borrowings and other extensions of credit hereunder and the other Loan
Documents shall be reasonably satisfactory to the Senior Agents, the Lenders
and the Facing Agents.

 

(c)  The Administrative Agent shall have received
(i) a copy of the certificate or articles of incorporation, including all
amendments thereto, of each Loan Party, certified as of a recent date by the
Secretary of State or other relevant Governmental Authority of the jurisdiction
of its organization, and a certificate as to the good standing (or the
equivalent thereof) of each Loan Party as of a recent date from such Secretary
of State or other Governmental Authority; (ii) a certificate of the
Secretary or Assistant Secretary of each Loan Party dated the Closing Date and
certifying (A) that attached thereto is a true and complete copy of the by-laws
of such Loan Party as in effect on the Closing Date, (B) that attached thereto
is a true and complete copy of resolutions duly adopted by the Board of
Directors of such Loan Party authorizing the Credit Transactions, and that such
resolutions have not been modified, rescinded or amended and are in full force
and effect, (C) that the certificate or articles of incorporation of such
Loan Party have not been amended since the date of the last amendment thereto
shown on the certificate of good standing furnished pursuant to clause (i)
above, and (D) as to the incumbency and specimen signature of each officer
executing any Loan Document on behalf of such Loan Party; (iii) a
certificate of another officer as to the incumbency and specimen signature of
the Secretary or Assistant Secretary executing the certificate pursuant to clause
(ii) above; and such other documents as the Senior Agents may reasonably
request.

 

(d)  The Administrative Agent shall have received
a certificate, dated the Closing Date and signed by a Financial Officer of and
on behalf of each Borrower, confirming compliance with the conditions precedent
set forth in Section 5.01(b) and (c).

 

100

 

(e)  The Administrative Agent shall have received
all Fees and other amounts due and payable on or prior to the Closing Date, including,
to the extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by either Borrower hereunder or under any
other Loan Document.

 

(f)  Each of the Guarantee and Collateral
Agreement (U.S.), the other Guarantee Agreements and the other Security
Documents (other than the Bank Act Security) shall have been duly executed by
the parties thereto and delivered to the Collateral Agent, and shall be in full
force and effect.  The Bank Act Security
shall have been duly executed by the parties thereto and delivered to each
Revolving (Canadian) Lender and each Tranche C Lender that is a Canadian
Chartered Bank listed in Schedule I, II or III of the Bank Act (Canada)
and all appropriate filings and registrations shall have been made in order to
provide to each such Lender enforceable Bank Act Security.  The Collateral Agent, on behalf of the
secured parties, shall have a security interest or hypothec in the Collateral
of the type and priority or rank described in each Security Document.

 

(g)  The Collateral Agent shall have received
(i) the results of a search of the Uniform Commercial Code filings made
with respect to the Loan Parties in the states of formation of such Persons and
in which the chief executive office of each such Person is located, together
with copies of the financing statements disclosed by such search and
(ii) the results of equivalent searches made in each other jurisdiction
reasonably requested by the Senior Agents, in each case accompanied by evidence
reasonably satisfactory to the Senior Agents that the Liens indicated in any
such financing statement (or similar document) or otherwise disclosed in such
searches would be permitted under Section 7.02 or have been
released.

 

(h)  None of the Mortgaged Properties shall be
subject to any Lien other than those expressly permitted under Section 7.02
and other encumbrances permitted by the relevant Mortgage.  The Senior Agents shall have received a
lender’s title insurance policy or, in the case of Mortgaged Property located
in Canada, except as otherwise agreed to by the Senior Agents, a written legal
opinion, paid for by the Borrowers, in form and substance reasonably acceptable
to the Senior Agents, insuring or opining, as the case may be, that each Mortgage
relating to any Mortgaged Property constitutes a first lien on such Mortgaged
Property (subject to any Lien expressly permitted by Section 7.02
or otherwise agreed to by the Senior Agents), and the Collateral Agent shall
have received such other documents relating to Mortgaged Properties as
reasonably requested in writing by the Senior Agents.

 

(i)  The Administrative Agent shall have received
copies of, or an insurance broker’s or agent’s certificate as to coverage
under, the insurance policies required by Section 6.02 and the
applicable provisions of the Security Documents, each of which policies shall
be endorsed or otherwise amended to include a loss payable endorsement with
respect to the Collateral and to name the Collateral Agent as additional insured,
in form and substance reasonably satisfactory to the Administrative Agent.

 

101

 

(j)  The Collateral Agent shall have received a
reasonably satisfactory perfection certificate with respect to the Loan Parties
dated the Closing Date and duly executed by a Responsible Officer of SSCC.

 

(k)  The Merger shall have been, or substantially
simultaneously with the initial funding of Loans on the Closing Date shall be,
consummated in accordance with the Merger Agreement and applicable law.  The Administrative Agent shall have received
copies of the Merger Agreement and all certificates and other documents
delivered thereunder.  The Senior Agents
shall be reasonably satisfied with the material terms and conditions of the
Merger.

 

(l)  All principal, interest, fees and other
amounts due and owing under the Existing Credit Agreements shall have been
repaid in full, the commitments thereunder shall have been terminated and all
guarantees thereof and liens in connection therewith released and discharged
(or arrangements reasonably satisfactory to the Senior Agents shall be in place
for such release and discharge), and the Administrative Agent shall have
received reasonably satisfactory evidence thereof.

 

(m)  The Lenders shall have received (i)
management’s financial projections for SSCE and the Subsidiaries for a period
of six years following the Closing Date, reflecting the Transactions and
including the material assumptions on which such projections were based, in each
case in form and substance reasonably satisfactory to the Senior Agents, and
(ii) a pro forma consolidated balance sheet of SSCE as of a recent date
prior to the Closing Date, after giving effect to the Transactions, which, in
each case, shall be prepared in good faith and based upon reasonable
assumptions.

 

(n)  The Senior Agents shall be reasonably
satisfied as to the amount and nature of any environmental and employee health
and safety exposures to which SSCC and the Subsidiaries, taken as a whole, may
be subject, and the plans of SSCC and the Subsidiaries with respect thereto,
after giving effect to the Transactions.

 

(o)  All material consents of Governmental
Authorities and third parties to the Transactions to occur on the Closing Date
shall have been obtained, and there shall not be any pending or threatened
litigation or governmental, administrative or judicial action that could
reasonably be expected to restrain, prevent or impose burdensome conditions on
the Transactions.

 

ARTICLE VI

 

Affirmative Covenants

 

Each of SSCC
and the Borrowers covenants and agrees with each Lender, each Agent and each
Facing Agent that, so long as this Agreement shall remain in effect, the LC
Exposure shall not equal zero or the principal of or interest on any Loan or any
LC Disbursement, Fees or any other expenses or amounts payable under any Loan

 

102

 

Document shall
remain unpaid, unless the Required Lenders shall otherwise consent in writing,
it will, and will cause each of the Subsidiaries to:

 

SECTION 6.01.  Existence; Businesses and Properties.  (a)  Do
or cause to be done all things necessary to preserve, renew and keep in full
force and effect its legal existence, except as otherwise permitted under Section 7.05;
provided, however, that any FinSub that no longer purchases, or
is required to purchase, receivables pursuant to any Receivables Program and
otherwise no longer participates in any Receivables Program may be wound up,
liquidated or dissolved.

 

(b)  Except where the failure to do so could not
be reasonably expected to have a Material Adverse Effect, (i) do or cause to be
done all things necessary to preserve, renew and keep in full force and effect
the rights, licenses, permits, trademarks, tradenames, privileges and
franchises necessary or desirable in the normal conduct of its business, and
(ii) at all times keep all property useful and necessary in its business in
good working order and condition.

 

SECTION 6.02.  Insurance.  Keep its insurable properties adequately
insured at all times by financially sound and reputable insurers; maintain such
other insurance, to such extent and against such risks, including fire and
other risks insured against by extended coverage, as is usually maintained in
the same general area by companies engaged in the same or similar businesses,
including public liability insurance against claims for personal injury or
death or property damage occurring upon, in, about or in connection with the
use of any properties owned, occupied or controlled by it or the use of any
products sold by it; and maintain such other insurance as may be required by
law and, with respect to the Mortgaged Properties, as is required by the
Mortgages.

 

SECTION 6.03.  Payment of Taxes.  Pay and discharge promptly prior to becoming
delinquent all material taxes, assessments and governmental charges or levies
imposed upon it or upon or in respect of its property or assets; provided,
however, that such payment and discharge shall not be required with
respect to any such tax, assessment, charge or levy so long as the validity or
amount thereof shall be contested in good faith by appropriate proceedings and
it shall have set aside on its books, in accordance with U.S. GAAP, adequate
reserves with respect thereto and such contest operates to suspend enforcement
of a Lien and, in the case of a Mortgaged Property or other material property
or asset, there is no material risk of forfeiture of such property.

 

SECTION 6.04.  Financial Statements, Reports, etc.  Furnish to the Administrative Agent, each
Senior Agent and each Lender:

 

(a)  in
the case of SSCC, within 90 days after the end of each fiscal year, its
consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows, showing the financial condition of SSCC and its
consolidated Subsidiaries as of the close of such fiscal year and the results
of its operations and the operations of such Subsidiaries during such fiscal
year, all audited by Ernst & Young LLP or other independent auditors of
recognized national standing and accompanied by an opinion of such accountants
(which

 

103

 

shall not be qualified in any material respect) to the effect that such
consolidated financial statements fairly present in all material respects the
financial condition and results of operations of SSCC and the Subsidiaries on a
consolidated basis in accordance with U.S. GAAP;

 

(b)  in
the case of SSCC, within 45 days after the end of each of the first three
fiscal quarters of each fiscal year, its unaudited consolidated balance sheet
and related statements of operations, stockholders’ equity and cash flows,
showing the financial condition of SSCC and its consolidated Subsidiaries as of
the close of such fiscal quarter and the results of its operations and the
operations of such Subsidiaries during such fiscal quarter and the then-elapsed
portion of the fiscal year (it being understood that such information shall be
in reasonable detail and certified by a Financial Officer of SSCC, as fairly
presenting in all material respects the financial condition and results of
operations of SSCC and the Subsidiaries on a consolidated basis in accordance
with U.S. GAAP, subject to normal year-end audit adjustments and the absence of
notes);

 

(c)  concurrently
with any delivery of financial statements of SSCC under paragraph (a)
or (b) above, a certificate of a Financial Officer of SSCC
(i) certifying that, after reasonable inquiry, to the knowledge of such
Financial Officer no Default or Event of Default has occurred or, if a Default
or an Event of Default has occurred, specifying the nature and extent thereof
and any corrective action taken or proposed to be taken with respect thereto
and (ii) setting forth computations in reasonable detail satisfactory to
the Senior Agents of the ratios contemplated by the definition of the term “Applicable
Rate” and demonstrating compliance with the covenants contained in Sections 7.01,
7.02, 7.03, 7.04, 7.06, 7.13, 7.14
and 7.15 and, in the case of any such certificate delivered in
connection with any delivery of financial statements of SSCC under paragraph
(a) above for the fiscal year ended on or after December 31, 2005, of
the Excess Cash Flow for the latest fiscal year covered thereby;

 

(d)  concurrently
with any delivery of financial statements under paragraph (a)
above, a certificate of the accounting firm opining on such statements (which
certificate may be limited to accounting matters and disclaim responsibility
for legal interpretations) stating that during the course of their examination
of such financial statements, they obtained no knowledge of any Default or
Event of Default, except as specified in such certificate;

 

(e)  promptly
after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials (other than (i) the exhibits
to registration statements and (ii) any registration statements on Form S-8
or its equivalent) filed by SSCC or any of the Subsidiaries with the Securities
and Exchange Commission, or any Governmental Authority succeeding to any of or
all the functions of such Commission, or with any securities commission of any
Canadian province, or with any Canadian or U.S. securities exchange, or
distributed to any such Person’s shareholders (other than to SSCC or any of the
Subsidiaries), as the case may be;

 

104

 

(f)  in
the case of SSCC, as soon as available, and in any event no later than
90 days after the end of each fiscal year, a consolidated annual plan,
prepared in accordance with SSCC’s normal accounting procedures applied on a
consistent basis, for the next fiscal year of SSCC; and

 

(g)  promptly
from time to time, such other information regarding the operations, business affairs
and financial condition of SSCC and the Subsidiaries, or compliance with the
terms of any Loan Document, as any Senior Agent, the Administrative Agent or
any Lender may reasonably request.

 

SECTION 6.05.  Litigation and Other Notices.  Furnish to each Senior Agent, the
Administrative Agent and each Lender written notice of the following promptly
upon a Responsible Officer of SSCC or any Subsidiary obtaining knowledge
thereof:

 

(a)  any
Event of Default or Default, specifying the nature and extent thereof and the
corrective action (if any) taken or proposed to be taken with respect thereto;

 

(b)  the
filing or commencement of, or any notice to SSCC or any Subsidiary of the
intention of any Person to file or commence, any action, suit or proceeding (whether
at law or in equity or by or before any Governmental Authority or any
arbitrator) against SSCC or any Affiliate thereof that, if adversely
determined, could reasonably be expected to result in a Material Adverse
Effect;

 

(c)  any
development that has resulted in, or could reasonably be anticipated to result
in, a Material Adverse Effect; and

 

(d)  the
occurrence of any ERISA Event that, alone or together with other ERISA Event,
could reasonably be expected to result in liability of SSCC or any of the Subsidiaries
in an aggregate amount exceeding U.S.$30,000,000.

 

SECTION 6.06.  Maintaining Records; Access to Properties
and Inspections.  Maintain all
financial records in accordance with U.S. GAAP or Canadian GAAP, as applicable,
and permit any representatives designated by any Senior Agent, the
Administrative Agent or any Lender to visit and inspect the properties and
financial records of SSCC and any Subsidiary during normal business hours and
upon reasonable notice and to make extracts from and copies of such financial
records (provided that, unless an Event of Default shall have occurred
and is continuing, no more than three such visits and inspections may be made
in any one year) and permit any representatives designated by any Senior Agent,
the Administrative Agent or any Lender to discuss at such reasonable times and
at such reasonable intervals as may be reasonably requested the affairs,
finances and condition of SSCC or any Subsidiary or any properties of SSCC or
any Subsidiary with the officers thereof and (in the presence of SSCC or a
Subsidiary, unless a Default or Event of Default shall have occurred and be
continuing) independent

 

105

 

accountants therefor; provided, however,
that all such visits, inspections and inquiries shall be coordinated through
the Senior Agents.

 

SECTION 6.07.  Use of Proceeds.  Use the proceeds of Loans and request the
issuance of Letters of Credit only for the purposes set forth in the
introductory statement to this Agreement. 
No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations T, U and X.

 

SECTION 6.08.  Compliance with Law.  Comply with the requirements of all
applicable laws (including Environmental Laws), rules, regulations and decrees,
directives and orders of any Governmental Authority that are applicable to it
or to any of its properties, except where noncompliance could not reasonably be
expected to have a Material Adverse Effect.

 

SECTION 6.09.  Further Assurances.  (a)  Execute
any and all further documents, financing statements, agreements and
instruments, and take all further action (including filing Uniform Commercial
Code and other financing statements, registrations, mortgages, hypothecs and
deeds of trust), that may be required under applicable law or which the
Required Lenders, any Senior Agent or the Administrative Agent may reasonably
request, in order to effectuate the transactions contemplated by the Loan
Documents and in order to grant, preserve, protect, perfect and publish the
validity and priority or rank of the security interests and hypothecs created
or intended to be created by the Security Documents.

 

(b)  Cause (i) each Domestic Subsidiary that is or
becomes a Material Subsidiary (other than any FinSub), and each Domestic
Subsidiary that is or becomes a direct parent of any such Material Subsidiary,
to become a party to the Guarantee and Collateral Agreement (U.S.) and, if such
Material Subsidiary owns any real or personal property in the State of
Maryland, the Guarantee Agreement (Maryland) and (ii) each Canadian Subsidiary
that is or becomes a Material Subsidiary (other than any FinSub), and each
Canadian Subsidiary that is or becomes a direct parent of any such Material
Subsidiary, to become a party to the Guarantee Agreement (Canadian) and the
Canadian Security Agreements or, with respect to any such Canadian Subsidiary
that is organized under the laws of the Province of Quebec and with respect to
any Collateral located in the Province of Quebec, such Hypothecs and other
Security Documents, and such guarantee agreements, as may be reasonably
requested by the Collateral Agent.

 

(c)  From time to time, SSCC and the Borrowers
will, at their cost and expense, promptly secure the Obligations by pledging or
creating, or causing to be pledged or created, perfected (or, in the case of
the Province of Quebec, published) security interests or hypothecs with respect
to such of the assets and properties of the Loan Parties as either Senior Agent
or the Required Lenders shall reasonably request (it being understood that,
subject to the limitations set forth in this paragraph (c), it is the
intent of the parties that the Obligations shall be secured by substantially
all of the U.S. and Canadian assets of the Loan Parties (including real and
personal properties acquired after the Closing Date); provided, however,
that notwithstanding anything to the contrary

 

106

 

set forth in this Agreement or any other Loan
Document, (i) none of the Canadian Subsidiaries or any of their subsidiaries
shall be required to guarantee or provide any security for any U.S. Obligation,
(ii) not more than 65% of the voting capital stock of any Foreign Subsidiary
shall be required to be pledged by SSCC, SSCE or any Domestic Subsidiary, (iii)
no leasehold mortgages or deeds of trust or fixture filings (or comparable
filings in Canada) shall be required with respect to any leasehold interest of
any Loan Party and (iv) no security interests or hypothecs shall be
required to be pledged or created with respect to (A) Program Receivables,
(B) properties set forth on Schedule 6.09(c), (C) equity
interests in any Person that is not or is not required to be a Loan Party (and
equity interests in any Material Subsidiary that is a FinSub) and (D) any
assets located outside of the United States or Canada; and provided  further
that, except as provided in paragraph (d) below with respect to
After-Acquired Mortgage Property, neither SSCC nor any Borrower shall be
required to take any further action pursuant to this paragraph (c)
unless and until the aggregate fair market value of the assets and properties
subject to such request exceeds U.S.$25,000,000.  Such security interests and Liens will be
created under the Security Documents and other security agreements, mortgages,
deeds of trust and other instruments and documents in form and substance
reasonably satisfactory to the Collateral Agent, and SSCC and the Borrowers
shall deliver or cause to be delivered to the Lenders all such instruments and
documents (including customary legal opinions, title insurance policies or
title opinions and lien searches) as the Collateral Agent shall reasonably
request to evidence compliance with this paragraph (c).  SSCC and the Borrowers agree to provide such
evidence as the Collateral Agent shall reasonably request as to the perfection
and priority status of each such security interest and Lien.

 

(d)  Notwithstanding anything to the contrary in paragraph
(c) above, no security interests or hypothecs shall be required to be
created pursuant to paragraph (c) above by any Loan Party with
respect to (i) any After-Acquired Mortgage Property with a fair market
value (as determined by the applicable Loan Party in its reasonable judgment,
it being understood that the purchase price shall be indicative thereof) (the “Fair
Market Value”) of less than U.S.$3,000,000 and (ii) any After-Acquired
Mortgage Property with a Fair Market Value of at least U.S.$3,000,000 but less
than U.S.$25,000,000, unless and until the aggregate Fair Market Value of all
items of After-Acquired Mortgage Property excluded pursuant to this clause
(ii) (and not granted as security for the Obligations pursuant to the next
sentence) is at least U.S.$50,000,000 in the aggregate for all Loan
Parties.  On each occasion that the Fair
Market Value of all items of After-Acquired Mortgage Property described
in clause (ii) of the immediately preceding sentence shall be at least
U.S.$50,000,000, SSCC and the Borrowers shall create, or shall cause to be
created, security interests or hypothecs on all such property (and not merely
the portion of the property in excess of U.S.$50,000,000) to secure the
Applicable Obligations (and thereafter, such property shall be disregarded for
purposes of the calculation under clause (ii) of the immediately
preceding sentence).

 

SECTION 6.10.  Material Contracts.  Maintain in full force and effect (including
exercising any available renewal option), and without amendment or
modification, each Material Contract, unless the failure so to maintain any
such Material

 

107

 

Contract (or any amendment or modification
thereto) could not, individually or in the aggregate, be reasonably expected to
have a Material Adverse Effect.

 

SECTION 6.11.  Environmental Matters.  (a)  Promptly
give notice to the Administrative Agent upon becoming aware of (i) any
violation of any Environmental Law, (ii) any claim, inquiry, proceeding,
investigation or other action, including a request for information or a notice
of potential liability under any Environmental Law, by or from any Governmental
Authority or any third party claimant or (iii) the discovery of the release
of any Hazardous Material at, on, under or from any of the Real Properties or
any facility or equipment thereat in excess of reportable or allowable
standards or levels under any Environmental Law, or in a manner or amount that
could reasonably be expected to result in liability under any Environmental
Law, in each case that could reasonably be expected to have a Material Adverse
Effect.

 

(b)  Upon
discovery of the presence on any of the Real Properties of any Hazardous
Material that is in violation of, or that could reasonably be expected to
result in liability under, any Environmental Law, in each case that could
reasonably be expected to have a Material Adverse Effect, take or cause to be
taken all necessary steps to initiate and expeditiously complete all remedial,
corrective and other action to eliminate any such adverse effect, and keep the
Administrative Agent reasonably informed of such actions and the results
thereof.

 

ARTICLE VII

 

Negative Covenants

 

Each of SSCC
and the Borrowers covenants and agrees with each Lender, each Agent and each
Facing Agent that, so long as this Agreement shall remain in effect, the LC
Exposure shall not equal zero or the principal of or interest on any Loan or
any LC Disbursement, Fees or any other expenses or amounts payable under any
Loan Document shall remain unpaid, unless the Required Lenders shall otherwise
consent in writing, it will not, and will not cause or permit any of the
Subsidiaries to:

 

SECTION 7.01.  Indebtedness.  Create, incur, assume or permit to exist any
Indebtedness or Attributable Indebtedness, except, without duplication:

 

(a)  the
Indebtedness created hereunder and under the other Loan Documents;

 

(b)  the
Senior Notes and any Guarantees thereof by any Loan Party;

 

(c)  the
Indebtedness existing on the Closing Date and listed on Schedule 7.01;

 

(d)  Indebtedness
of any Foreign Subsidiary (other than a Canadian Subsidiary) and any Guarantees
thereof, provided that such Indebtedness shall not

 

108

 

be Guaranteed by or otherwise be recourse to SSCC, any Domestic
Subsidiary or any Canadian Subsidiary, except as permitted by paragraph (o)
below or Section 7.04(c) or (l);

 

(e)  Indebtedness
of SSCC or any Subsidiary the net proceeds of which are designated to be used,
and are used reasonably promptly after the incurrence thereof, to refinance
Indebtedness described in paragraph (b) or (c) above, paragraph
(p) or (q) below or this paragraph (e) (such
Indebtedness being referred to herein as “Specified Indebtedness”), so
long as (i) such refinancing Indebtedness is in an aggregate principal
amount not greater than the aggregate principal amount of the Specified
Indebtedness being refinanced plus the amount of any premium required to
be paid thereon and any interest, fees and costs incurred in such refinancing,
(ii) such refinancing Indebtedness has a final maturity more than
90 days after the later of Term Loan Maturity Date and the Incremental
Term Loan Maturity Date (if any) and a weighted average life to maturity greater
than the weighted average life to maturity of the Term Loans and (iii) the
covenants, events of default and other provisions (other than optional
redemption provisions and other pricing terms) thereof (including any
Guarantees thereof) shall be no more materially adverse, when taken as a whole,
to the Lenders than those contained in the Specified Indebtedness being
refinanced; provided that (A) if the proceeds of Revolving Loans or
Revolving (Canadian) Loans are used to repurchase or redeem any Specified
Indebtedness, the Borrowers may incur Indebtedness otherwise meeting the
requirements of this paragraph (e) (as if such Indebtedness were
used to refinance such Specified Indebtedness) to repay such Revolving Loans or
Revolving (Canadian) Loans, (B) the Specified Indebtedness may be
refinanced with senior notes, senior subordinated notes or convertible
debentures that contain covenants, events of default and other terms and
conditions that are no more restrictive to SSCE or the Subsidiaries than is customary,
at the time of such refinancing, for Indebtedness of such type for issuers with
a debt rating similar to that of SSCE, and (C) if the proceeds of indebtedness
meeting the requirements of this paragraph (e) cannot be immediately
applied to refinance the Specified Indebtedness, then, unless such proceeds are
held by SSCC or a Subsidiary pending such refinancing, they may be used to
prepay Revolving Loans, Revolving (Canadian Loans) or other revolving debt,
which then may be used to refinance such Specified Indebtedness;

 

(f)  (i) Capital
Lease Obligations and Attributable Indebtedness, (ii) Indebtedness
created, incurred or assumed in respect of the purchase, improvement or
construction of property, provided that such Indebtedness is created,
incurred or assumed within 120 days after the earlier of (x) the
placement in service of such property or (y) the final payment on such
property, and (iii) Indebtedness consisting of industrial revenue bonds or
pollution control bonds, and Guarantees of and letters of credit supporting
such Indebtedness, such that the sum of the Indebtedness and Attributable
Indebtedness created, incurred or assumed pursuant to this paragraph (f)
shall not exceed at any time outstanding U.S.$500,000,000;

 

109

 

(g)  Indebtedness
created pursuant to any Swap Agreement that has been entered into (i) to hedge
or mitigate risks to which SSCC or any Subsidiary has actual exposure (other
than those in respect of equity interests) or (ii) to effectively cap, collar
or exchange interest rates (from fixed to floating rates, from one floating
rate to another floating rate or otherwise) with respect to any
interest-bearing liability or investment of SSCC or any Subsidiary;

 

(h)  intercompany
loans and advances permitted by Section 7.04;

 

(i)  Indebtedness
of any FinSub, SSCC or any Participating Subsidiary created pursuant to the
Receivables Program Documents (including any Indebtedness of SSCC or any
Participating Subsidiary to any FinSub arising because any sale or purported
sale of Program Receivables to such FinSub is required to be recharacterized as
a loan);

 

(j)  Indebtedness
of FinSubs to SSCC or any Participating Subsidiary that, when combined with any
Investments pursuant to Section 7.04(g), does not exceed in the
aggregate at any time outstanding U.S.$100,000,000;

 

(k)  Indebtedness
incurred to pay annual premiums for property and casualty insurance policies
maintained by SSCC or any Subsidiary not exceeding in an aggregate amount at
any time outstanding U.S.$75,000,000;

 

(l)  Indebtedness
of SSCC and the Subsidiaries in respect of letters of credit, so long as such
Indebtedness is not secured and does not exceed in an aggregate amount at any
time outstanding U.S.$50,000,000;

 

(m)  Indebtedness
of any Person acquired by SSCC or any Subsidiary in an acquisition permitted
hereunder and assumed by SSCC or such Subsidiary pursuant to such acquisition
(including any refinancing, renewal or replacement, in whole or in part,
thereof at the time of assumption thereof or from time to time thereafter), provided
that (i) such Indebtedness was not incurred in contemplation of such
acquisition and (ii) the aggregate principal amount of such Indebtedness
at any time outstanding shall not exceed U.S.$100,000,000;

 

(n)  Guarantees
with respect to bonds issued to support workers’ compensation, or performance,
surety, statutory or appeal bonds and other similar obligations (other than
Indebtedness) incurred by SSCC or any Subsidiary in the ordinary course of business;

 

(o)  Indebtedness
of SSCC or any Subsidiary incurred in the ordinary course of business that does
not exceed in an aggregate amount at any time outstanding U.S.$150,000,000;

 

(p)  unsecured
Indebtedness of any Loan Party or any Special Purpose Finance Subsidiary (which
Indebtedness may be Guaranteed on an unsecured basis by one or more Loan
Parties) the net proceeds of which are designated to be used, and are used
reasonably promptly after the incurrence thereof, to refinance

 

110

 

in whole or in part the Term Loans, so long as such refinancing
Indebtedness (i) is in an aggregate principal amount not greater than the
aggregate principal amount of the Indebtedness being refinanced plus the
amount of any premium required to be paid thereon and any interest, fees and
costs incurred in such refinancing, (ii) has a final maturity more than 90 days
after the later of the Term Loan Maturity Date and the Incremental Term Loan
Maturity Date (if any) and requires no scheduled payment of principal in cash
prior to such date, and (iii) includes covenants, events of default and other
terms and conditions that are no more restrictive, when taken as a whole, to
SSCC or the Subsidiaries than is customary, at the time of such refinancing,
for Indebtedness of such type for issuers with a debt rating similar to that of
SSCC;

 

(q)  unsecured
Indebtedness incurred by any Loan Party or any Special Purpose Finance
Subsidiary to finance a Permitted Acquisition (“Acquisition Indebtedness”);
provided, that (i) at the time of the incurrence of such Acquisition
Indebtedness, both before and immediately after giving effect thereto and such
Permitted Acquisition, no Default or Event of Default shall have occurred and
be continuing, (ii) such Acquisition Indebtedness has a final maturity more
than 90 days after the later of the Term Loan Maturity Date and the Incremental
Term Loan Maturity Date (if any) and requires no scheduled or other mandatory
payment of principal in cash (including any payment in cash at the option of
the holders of such Indebtedness and any payment in cash pursuant to a sinking
fund obligation, but excluding any payment required upon the occurrence of a
change of control) prior to the date that is 90 days after the later of the
Term Loan Maturity Date and the Incremental Term Loan Maturity Date (if any),
(iii) after giving pro forma effect to the incurrence of such Acquisition
Indebtedness and such Permitted Acquisition, the Consolidated Leverage Ratio as
of the date of such incurrence, calculated in accordance with Section 1.05,
shall not exceed 5.5 to 1.0; and (iv) on or prior to the date of such
incurrence, SSCC shall have delivered a certificate of a Financial Officer
confirming compliance with this paragraph (q), together with reasonably
detailed calculations demonstrating satisfaction of the requirement set forth
in clause (iii) above;

 

(r)  Indebtedness
of SSCC or any Subsidiary evidencing obligations to make payments in respect of
rights to cut, harvest or otherwise acquire timber on property owned by any
other Person, provided that the aggregate amount of such Indebtedness
shall not exceed $10,000,000 at any time outstanding;

 

(s)  Indebtedness
incurred in connection with (i) Permitted Equipment Financings in an aggregate
principal amount not to exceed $100,000,000 at any time outstanding or (ii)
Permitted Timber Financings;

 

(t)  SSCC
Convertible Subordinated Exchange Debentures;

 

(u)  Indebtedness
in the form of any earnout or other similar contingent payment obligation
incurred in connection with an acquisition permitted hereunder; and

 

111

 

(v)  Indebtedness
of PUI in an aggregate amount not to exceed U.S.$10,000,000 outstanding at any
time, and the Guarantee thereof by SSCE on an unsecured basis.

 

SECTION 7.02.  Liens. 
(a)  Create, incur, assume or
permit to exist any Lien on any property or assets (including stock or other
securities of any Person) now owned or hereafter acquired by it or on any
income or revenues or rights in respect of any thereof, except:

 

(i) Permitted Liens;

 

(ii) Liens created under the Loan Documents;

 

(iii) Liens on Program Receivables granted
pursuant to the Receivables Program Documents;

 

(iv) Liens existing as of the Closing Date and listed
on Schedule 7.02(a)(iv), provided that (A) such Liens shall
apply only to the property or assets to which they apply on the Closing Date
and (B) such Liens shall secure only (x) those obligations that they secure on
the Closing Date and (y) refinancings of such secured obligations permitted
hereunder so long as the principal amount of obligations secured under this clause
(iv) does not exceed the sum of the principal amount of such secured
obligations being refinanced plus the amount of any premium required to
be paid thereon as a result of, and any interest, fees and costs incurred in,
such refinancing;

 

(v) Liens securing Indebtedness permitted by Section 7.01(f),
provided that any such Lien shall apply only to the property that is the
subject of such Indebtedness and, if applicable, the principal amount of
Indebtedness secured by any such Lien shall at no time exceed 100% of the fair
market value (as determined in good faith by SSCC or a Subsidiary, as
applicable) of the respective property at the time it was so acquired;

 

(vi) Liens for Indebtedness permitted by Section 7.01(k),
provided that such Liens attach only to unearned and return premiums,
dividends and loss payments which reduce the unearned premiums under insurance
policies the premiums of which have been financed with such Indebtedness;

 

(vii) Liens securing Indebtedness
constituting mortgage or purchase money financings, Capital Lease Obligations,
industrial revenue bonds or similar financings assumed or incurred pursuant to Section
7.01(m) in connection with any acquisition permitted hereunder, provided
that (A) such Liens attach only to property or assets acquired in connection
with such acquisition, (B) such Liens were not created in contemplation of
such acquisition and (C) such Liens shall secure only those obligations that
they secure at the time of such acquisition and refinacings thereof permitted

 

112

 

hereunder so long as the principal amount of obligations secured under
this clause (vii) is not increased;

 

(viii) Liens on property or assets owned by
Foreign Subsidiaries securing Indebtedness permitted under Section 7.01(d)
and Liens on property or assets owned by PUI securing Indebtedness permitted
under Section 7.01(v);

 

(ix) Liens created under any agreement
relating to the sale, transfer or other disposition of assets permitted
hereunder, provided that such Liens relate solely to the assets to be
sold, transferred or otherwise disposed;

 

(x) any Lien consisting of a lease of personal
property of such Person to customers of such Person, if such lease constitutes
an Investment permitted under Section 7.04(i);

 

(xi) Liens deemed to exist in connection with
any Permitted Investment, provided such Liens only apply to the assets
constituting such Permitted Investment;

 

(xii) Liens on assets of a Borrower or any
Subsidiary securing up to U.S.$125,000,000 of Indebtedness permitted by Section 7.01(o),
provided that no such Lien shall apply to any assets constituting
Collateral;

 

(xiii) Liens on the assets listed on Schedule
6.09(c), securing Indebtedness otherwise permitted hereunder;

 

(xiv) Liens securing any Permitted Equipment
Financing or any Permitted Timber Financing;

 

(xv) extensions, renewals or replacements of
any Lien referred to above, provided that such extension, renewal or
replacement is limited to the Indebtedness and property originally secured and
encumbered thereby; and

 

(xvi) Liens not otherwise permitted by the
foregoing clauses of this paragraph (a) securing obligations in an
aggregate amount outstanding at any time not in excess of U.S.$25,000,000.

 

(b)  Enter
into any agreement prohibiting the creation or assumption of any Lien upon
properties or assets, whether now owned or hereafter acquired, except any such
restriction that exists under (i) this Agreement, (ii) the indentures
governing the Senior Notes (or any refinancing thereof pursuant to Section 7.01(e)),
(iii) with respect to any FinSub or SMBI, the applicable Receivables
Program, (iv) agreements governing any Indebtedness of Foreign
Subsidiaries (other than the Canadian Subsidiaries) permitted hereunder,
(v) any documents governing secured Indebtedness permitted hereunder, provided
that such restrictions only relate to the assets securing such Indebtedness,
(vi) any documents governing Indebtedness

 

113

 

permitted under Section 7.01(b), (e), (o), (p)
or (q), provided that such restrictions are no more restrictive
to SSCC or any Subsidiary than the restrictions under the documents governing
Indebtedness permitted under Section 7.01(b), (vii) restrictions by
reason of customary provisions contained in leases, licenses, governmental
contracts and similar agreements entered into in the ordinary course of
business, provided that such restrictions are limited to the property or
assets subject to such leases, licenses, contracts or agreements), and (viii)
any agreement with respect to a permitted sale or disposition of any assets, provided
such restrictions are limited to the assets to be sold or disposed of.

 

SECTION 7.03.  Sale/Leaseback Transactions.  Enter into any Sale/Leaseback Transaction,
other than (a) Permitted Equipment Financings in an aggregate principal amount
not to exceed $100,000,000, (b) any Permitted Timber Financing or (c) any
Sale/Leaseback Transaction to the extent that (i) the Capital Lease Obligations
or Attributable Indebtedness, as the case may be, would be permitted by Section
7.01(f)(i) and (ii) any Liens associated therewith would be permitted by Section 7.02(a)
(provided that, if SSCC or any of the Subsidiaries enter into such
Sale/Leaseback Transaction with respect to any property owned by SSCC or such
Subsidiary more than 12 months prior to such transaction, such
Sale/Leaseback Transaction shall be treated as an Asset Sale and shall also be
subject to the restrictions of Section 7.16).

 

SECTION 7.04.  Investments, Loans and Advances.  Have outstanding or make any loan or advance
to, or have or make any Investment in, any other Person or suffer to exist any
such loan, advance or Investment, or any obligation to make such loan, advance
or Investment, except as set forth on Schedule 7.04 and except:

 

(a)  Permitted
Investments;

 

(b)  loans,
advances or other Investments made by (i) SSCC or any Subsidiary to
or in any Guarantor, any wholly owned Domestic Subsidiary or any wholly owned
Canadian Subsidiary (provided that any such Investments by a Loan Party
to or in any such Subsidiary that is not a Loan Party complies with the
requirements of Section 7.16) and (ii) any Foreign Subsidiary
(other than a Canadian Subsidiary) to or in any other Foreign Subsidiary;

 

(c)  loans,
advances or other Investments made to or in any Subsidiary (other than a
Guarantor, a wholly owned Domestic Subsidiary or a wholly owned Canadian
Subsidiary), and Guarantees of obligations of any such Subsidiary, in an
aggregate amount not to exceed U.S.$100,000,000 outstanding at any time;

 

(d)  Investments
consisting of non-cash consideration received in connection with a sale of
assets permitted under Section 7.16;

 

(e)  Investments
by SSCC and the Subsidiaries in existence on the Closing Date in the capital
stock of their respective subsidiaries;

 

114

 

(f)  Investments
consisting of securities or notes received in settlement of accounts receivable
incurred in the ordinary course of business from a customer that SSCC or any
Subsidiary has reasonably determined is unable to make cash payments in
accordance with the terms of such account receivable;

 

(g)  Investments
by SSCC or any Participating Subsidiary in FinSubs that, when combined with any
Indebtedness outstanding pursuant to Section 7.01(j), do not exceed
in the aggregate at any time outstanding U.S.$100,000,000;

 

(h)  accounts
receivable created or acquired, and deposits, prepayments and other credits to
suppliers made, in the ordinary course of business;

 

(i)  any
Investments consisting of (i) any contract pursuant to which SSCC or any
Subsidiary obtains the right to cut, harvest or otherwise acquire timber on
property owned by any other Person, whether or not SSCC’s or such Subsidiary’s
obligations under such contract are evidenced by a note or other instrument, or
(ii) loans or advances to customers of SSCC or any Subsidiary, including leases
of personal property of SSCC or such Subsidiary to such customers, provided
that the contracts, loans and advances constituting permitted Investments
pursuant to this paragraph (i) shall not exceed U.S.$20,000,000 at
any time outstanding;

 

(j)  deposits
made in the ordinary course of business to secure performance of operating
leases;

 

(k)  loans
to officers and employees not to exceed U.S.$5,000,000 at any time outstanding;

 

(l)  other
Investments in an aggregate amount at any time outstanding not to exceed the
sum of (i) U.S.$150,000,000 plus (ii) the Net Cash Proceeds received by
SSCC from any issuance of equity interests of SSCC, so long as such issuance
was consummated for the purpose of financing, and such Net Cash Proceeds were
applied reasonably promptly after receipt thereof to finance, any such
Investment;

 

(m)  Investments
constituting Guarantees permitted under Section 7.01, Investments
permitted under Section 7.05(f) and Investments constituting
Consolidated Capital Expenditures permitted under Section 7.13; and

 

(n)  Investments
under Swap Agreements permitted hereunder.

 

Notwithstanding
anything to the contrary contained herein, SSCC shall not permit more than 15%
of its consolidated revenues for any period of four consecutive fiscal quarters
ending on or after September 30, 2004 or 15% of its consolidated assets as
of the last day of any fiscal quarter ending on or after September 30,
2004 to be generated or held by Domestic Subsidiaries and Canadian
Subsidiaries, in the aggregate, that are not Loan Parties.

 

115

 

SECTION 7.05.  Mergers, Consolidations, Sales of Assets
and Acquisitions.  Merge into or
amalgamate or consolidate with any other Person, or permit any other Person to
merge into or amalgamate or consolidate with it, or sell, transfer, assign,
lease, sublease or otherwise dispose of (in one transaction or in a series of
transactions) all or substantially all of its assets (when taken as a whole in
combination with the other assets and properties of SSCC and the Subsidiaries),
or purchase, lease or otherwise acquire (in one transaction or a series of
transactions) all or any substantial part of the assets of any other Person,
except:

 

(a)  if
at the time thereof and immediately after giving effect thereto no Default or
Event of Default shall have occurred and be continuing, (i) any Domestic
Subsidiary (other than any FinSub) may merge into or consolidate with,
liquidate or dissolve into, or sell, transfer, assign, lease, sublease or otherwise
dispose of all or substantially all of its assets to, (A) SSCE in a transaction
in which SSCE is the surviving corporation and (B) other than with respect to
any Borrower, SSCC in a transaction in which SSCC is the surviving corporation,
(ii) any Domestic Subsidiary (other than SSCE or any FinSub) may merge into or
consolidate with, liquidate or dissolve into, or sell, transfer, assign, lease,
sublease or otherwise dispose of all or substantially all of its assets to, any
wholly owned Domestic Subsidiary (other than SSCE or any Fin Sub) in a
transaction in which the surviving corporation is a wholly owned Domestic
Subsidiary, (iii) any Canadian Subsidiary (other than any FinSub) may merge
into or consolidate or amalgamate with, liquidate or dissolve into, or sell,
transfer, assign, lease, sublease or otherwise dispose of all or substantially
all of its assets to, SSC Canada in a transaction in which SSC Canada is the
surviving corporation, (iv) any Canadian Subsidiary (other than SSC Canada or
any FinSub) may merge into or consolidate or amalgamate with, liquidate or
dissolve into, or sell, transfer, assign, lease, sublease or otherwise dispose
of all or substantially all of its assets to, any wholly owned Canadian
Subsidiary (other than SSC Canada or any FinSub) in a transaction in which the
surviving entity is a wholly owned Canadian Subsidiary; provided that,
in each case, (x) if any Person other than a wholly owned Domestic
Subsidiary or wholly owned Canadian Subsidiary, as the case may be, receives any
consideration, such transaction is also permitted by Section 7.04
and (y) the surviving entity shall, at the time of such merger or
consolidation, be in compliance with the requirements of Section 6.09(b);

 

(b)  if
at the time thereof and immediately after giving effect thereto no Default or
Event of Default shall have occurred and be continuing, any wholly owned
Foreign Subsidiary (other than any Canadian Subsidiary) may merge into,
amalgamate or consolidate with, liquidate or dissolve into, or sell, transfer,
assign, lease, sublease or otherwise dispose of all or substantially all of its
assets to, any other wholly owned Foreign Subsidiary in a transaction in which
the surviving entity is a wholly owned Foreign Subsidiary, provided that
no Person other than a Loan Party or a wholly owned Foreign Subsidiary receives
any consideration;

 

(c)  purchases
of inventory, equipment and real property in the ordinary course of business;

 

116

 

(d)  acquisitions
constituting Consolidated Capital Expenditures permitted by Section 7.13;

 

(e)  Investments
permitted by Section 7.04; and

 

(f)  any
Loan Party may acquire all or substantially all the assets of a Person or line
of business, unit or division of such Person primarily located in the
United States or Canada, or not less than 100% of the equity interests of
a Person (other than directors’ qualifying shares) (in each case referred to
herein as the “Acquired Entity”); provided that (i) the
Acquired Entity shall be in a similar line of business as that of SSCC and the
Subsidiaries, (ii) the acquisition shall not be preceded by, or effected
pursuant to, an unsolicited tender offer or proxy solicitation, (iii) SSCC and
the Borrowers shall comply, and shall cause the Subsidiaries to comply, with
the provisions of Section 6.09 substantially concurrently with the
consummation of such acquisition, (iv) at the time of such transaction
(A) both before and immediately after giving effect thereto, no Event of
Default or Default shall have occurred and be continuing and (B) SSCC shall be
in compliance with the covenants set forth in Sections 7.14 and 7.15
as of the most recently completed period of four consecutive fiscal quarters
for which the financial statements required by Section 6.04(a) or (b)
have been delivered, after giving pro forma effect to such transaction in
accordance with Section 1.05, and (v) with respect to any such
transaction the consideration for which is U.S.$50,000,000 or more, SSCC shall
have delivered a certificate of a Financial Officer confirming compliance with clause
(iv) above, together with reasonably detailed calculations demonstrating
such compliance (any acquisition of an Acquired Entity meeting all of the
criteria set forth in this paragraph (f) being referred to herein as a “Permitted
Acquisition”).

 

SECTION 7.06.  Restricted Payments.  (a)  Declare
or make, directly or indirectly, any Restricted Payment or set aside any amount
for any such purpose.

 

(b)  Notwithstanding
the provisions of paragraph (a) above:

 

(i) SSCC may (A) pay cash dividends to the
holders of the SSCC Series A Preferred Stock in an aggregate amount not to
exceed U.S.$10,000,000 in any fiscal year and (B) pay cash dividends or make
other distributions to the holders of any of its equity interests in an
aggregate amount not to exceed in any fiscal year the least of (x) 25% of
Consolidated Net Income for the immediately preceding fiscal year,
(y) with respect to any fiscal year commencing on or after January 1,
2006, the Borrowers’ Portion of Excess Cash Flow and (z) U.S.$50,000,000, provided,
in each case, that at the time of any such Restricted Payment and immediately
after giving effect thereto, no Default or Event of Default shall have occurred
and be continuing;

 

(ii) SSCC may purchase in the open market
shares of SSCC Common Stock (“MIP Shares”) or options to purchase shares
of SSCC Common

 

117

 

Stock (“MIP Options”), provided that (A) the sum of (x)
the aggregate purchase price of all MIP Shares (whether purchased directly in
the open market or upon the exercise of MIP Options) and (y) the aggregate
purchase price of all MIP Options in any fiscal year shall not exceed
$15,000,000, (B) MIP Shares, including those purchased upon the exercise of MIP
Options, shall be purchased exclusively for subsequent distribution as
additional compensation to employees of SSCC or any Subsidiary pursuant to such
Person’s management incentive program, (C) SSCC shall not knowingly
purchase any MIP Shares from any of its Affiliates (acting as principal in such
transaction) and (D) at the time of any such purchase and immediately after
giving effect thereto, no Default or Event of Default shall have occurred and
be continuing;

 

(iii) SSCC may (A) exchange the SSCC Series A
Preferred Stock for the SSCC Convertible Subordinated Exchange Debentures at an
exchange rate of $25.00 principal amount of such debentures for each share of
SSCC Series A Preferred Stock and (B) convert any shares of SSCC Series A
Preferred Stock into shares of SSCC Common Stock at the conversion price of
$34.97 per share of SSCC Common Stock, subject to customary anti-dilution
adjustments; and

 

(iv) any purchase or other acquisition for
value by SSCC or a Subsidiary of capital stock of any Subsidiary or redemption
by any Subsidiary of any shares of its capital stock, so long as such purchase,
acquisition or redemption is permitted by Section 7.04.

 

SECTION 7.07.  Transactions with Stockholders and
Affiliates.  Except to the extent
specifically permitted by the terms of this Agreement, directly or indirectly
enter into or permit to exist any transaction (including the purchase, sale,
lease or exchange of any property or the rendering of any service) with any
holder of 10% or more of any class of equity securities of such Person or with
any Affiliate of such Person or of any such holder, on terms that are less
favorable to such Person than those that could be obtained at the time from
Persons that are not such a holder or Affiliate, provided that the
foregoing restriction shall not apply to (a) any transaction between or among
the Loan Parties or any transaction between or among Foreign Subsidiaries
(other than Canadian Subsidiaries), (b) any transaction or series of
transactions between SSCC and any Subsidiary or between the Subsidiaries on a
basis that is not systematically disadvantageous to any Loan Party,
(c) customary fees paid to members of the Board of Directors of SSCC or
any of the Subsidiaries, (d) customary compensation (including salaries
and bonuses) paid to officers and employees of SSCC or any Subsidiary,
(e) management and financial services provided by SSCC or any Subsidiary
to any other Subsidiary or any other entity in which SSCC or such Subsidiary
has Investments to the extent that such services are provided by SSCC or such
Subsidiary in the ordinary course of its business and senior management of such
Person has determined that the providing of such services is in the best
interests of such Person and (f) the transactions contemplated by the
Receivables Program Documents.

 

118

 

SECTION 7.08.  Business.  Engage at any time in any business other than
the businesses engaged in by SSCC or any Subsidiary on the Closing Date and
businesses that are reasonably similar or reasonably related thereto, or are
reasonable extensions thereof.

 

SECTION 7.09.  Limitations on Debt Prepayments.  Optionally prepay, repurchase or redeem or
otherwise optionally defease or segregate funds with respect to (collectively, “prepay”)
any Specified Long-Term Indebtedness; provided, however, that (a)
so long as no Default or Event of Default shall have occurred and be continuing
or would result therefrom, SSCC and any Subsidiary shall be permitted (i) to
prepay up to U.S.$150,000,000 in aggregate principal amount (including any
accrued and unpaid interest and any premium thereon) of any Specified Long-Term
Indebtedness if at the time of any such prepayment and after giving effect
thereto, the Consolidated Leverage Ratio would be less than 5.5 to 1.0, (ii) to
prepay up to U.S.$250,000,000 in aggregate principal amount (including any
accrued and unpaid interest and any premium thereon) of any Callable Senior
Notes if at the time of any such prepayment and after giving effect thereto,
the Consolidated Leverage Ratio would be less than 5.5 to 1.0, and (iii) to
prepay up to U.S.$150,000,000 in aggregate principal amount (including any
accrued and unpaid interest and any premium thereon) of any Callable Senior
Notes if at the time of any such prepayment and after giving effect thereto,
the Consolidated Leverage Ratio would be less than 3.0 to 1.0 and (b) SSCC
and any Subsidiary shall be permitted to refinance any Indebtedness as
otherwise permitted hereunder.

 

SECTION 7.10.  Amendment of Certain Documents.  (a)  Amend,
modify or grant any waiver with respect to any indenture, note or any other
instrument evidencing Indebtedness of SSCC or any Subsidiary in an aggregate
principal amount in excess of U.S.$100,000,000 (other than any such
Indebtedness owed to SSCC or any Subsidiary), if such amendment, modification,
or waiver has the effect of (i) increasing the amounts due in respect of
any such indenture, note or other instrument or any interest rate thereunder,
unless any such increase in amount would be permitted under Section 7.01,
(ii) subjecting any property of SSCC or any Subsidiary to any Lien, other
than Liens permitted under Section 7.02, (iii) shortening the
maturity or weighted average life of any such Indebtedness or
(iv) creating or changing covenants, events of default and other terms and
conditions such that the covenants, events of default and other terms and
conditions become materially more adverse, when taken as a whole, to the
Lenders.

 

(b)  Cause
or suffer to exist any amendment, restatement, supplement or other modification
to the certificate of incorporation (including any certificate of designation
with respect to any preferred stock) or by-laws of SSCC or any Subsidiary
without the prior written consent of the Required Lenders, unless such
amendment, restatement, supplement or modification is not materially adverse to
the interests of the Lenders hereunder or under the other Loan Documents.

 

(c)  Permit,
cause or suffer to exist (i) any direct or indirect amendment, supplement,
waiver or other modification to any of the Receivables Program Documents set
forth in Schedule 1.01(e) and any of the other material Receivables
Program Documents, unless such amendment, supplement, waiver or 

 

119

 

modification is not materially
adverse, when taken as a whole, to the interests of the Lenders under the Loan
Documents or (ii) any refinancing or replacement of the Receivables Program
Documents, provided that (A) SSCC or any Subsidiary may refinance
or replace the Receivables Program Documents so long as the terms of the new
Receivables Program Documents are reasonably acceptable to the Senior Agents,
(ii) such new Receivables Program shall continue to be non-recourse to
SSCC and the Subsidiaries, except that SSCE may continue to provide operational
support to SMBI on the terms no more onerous to SSCE than the terms set forth
in the Operations Support Agreement and (iii) any Liens on the assets of
SSCC and the Subsidiaries pursuant to the new Receivables Program are limited
to the Program Receivables and any returned inventory and intangible assets
related thereto.

 

SECTION 7.11.  Limitation on Dispositions of Stock of
Subsidiaries.  Directly or indirectly
sell or otherwise dispose of, or permit any of the Loan Parties to issue to any
other Person (other than to any other Loan Party), any shares of capital stock
or other equity securities of (or warrants, rights or options to acquire shares
or other equity securities of) any of the Loan Parties, except issuance to
qualified directors if and to the extent required by applicable law, provided
that nothing in this Section 7.11 shall prohibit any disposition
permitted by Sections 7.05 and 7.16 if such sale is
structured as the sale of stock or other equity interests.

 

SECTION 7.12.  Restrictions on Ability of Subsidiaries to
Pay Dividends.  Permit any Subsidiary
to, directly or indirectly, voluntarily create or otherwise voluntarily cause
or suffer to exist or become effective any encumbrance or restriction on the
ability of any Subsidiary to (a) pay dividends or make any other
distributions on its capital stock or any other interest or (b) make or
repay loans or advances to any Loan Party, except for encumbrances or
restrictions under (i) this Agreement and the other Loan Documents,
(ii) the indentures governing the Senior Notes (or any refinancing thereof
pursuant to Section 7.01(e)) or any other indenture or other
document governing Indebtedness permitted hereby so long as the encumbrances
and restrictions thereunder are no more onerous to any Subsidiary than those
contained in the indentures governing the Senior Notes (or any refinancings
thereof), (iii) with respect to any FinSub, the Receivables Program
Documents and, (iv) any agreements identified on Schedule 7.12.

 

SECTION 7.13.  Capital Expenditures.  Incur Consolidated Capital Expenditures in
any fiscal year in an aggregate amount in excess of U.S.$400,000,000; provided,
however, that such amount in respect of any fiscal year shall be
increased by the sum of (a) an amount equal to the Borrowers’ Portion of
Excess Cash Flow and (b) the amount (if greater than zero) equal to (i)
U.S.$400,000,000 minus (ii) the amount of Consolidated Capital
Expenditures actually made in the immediately preceding fiscal year; provided,
however, that amounts so available under this sentence in any fiscal
year or years that are not so expended, up to a maximum of U.S.$100,000,000 on
a cumulative basis, shall be available for any subsequent fiscal year, and the
amount of Consolidated Capital Expenditures made in any fiscal year shall first
be applied against the U.S.$400,000,000 amount permitted for such year and
thereafter applied to the amount available from prior years.  For purposes of this Section 7.13,
Cluster Expenditures shall be deemed not to be Consolidated Capital
Expenditures, and SSCC and the Subsidiaries

 

120

 

shall be
permitted to make Cluster Expenditures notwithstanding the foregoing
limitations on Consolidated Capital Expenditures.

 

SECTION 7.14.  Consolidated Senior Secured Leverage
Ratio.  Permit the Consolidated
Senior Secured Leverage Ratio (a) as of December 31, 2004 or March 31,
2005, to exceed 3.25 to 1.00, or (b) as of the last day of any fiscal quarter
thereafter, to exceed 3.00 to 1.00.

 

SECTION 7.15.  Interest Coverage Ratio.  Permit the Interest Coverage Ratio (a) for
the period of four consecutive fiscal quarters ending on December 31, 2004
or March 31, 2005, to be less than 1.75 to 1.00 or (b) for any period of
four consecutive fiscal quarters thereafter, to be less than 2.00 to 1.00.

 

SECTION 7.16.  Disposition of Collateral and Other
Assets.  (a)  Except for the sale of Program Receivables as
permitted by the Receivables Program Documents and any transfer or disposition
permitted by paragraph (b) below, sell, lease, assign, transfer or
otherwise dispose of any asset or assets, in a single transaction or a series
of related transactions, having a fair market value in excess of
U.S.$10,000,000, unless (i) fair market value is received for such asset
(such fair market value to be determined by the Board of Directors of SSCC or
any applicable Subsidiary in the exercise of its reasonable judgment in the
case of any asset or assets with a fair market value in excess of
U.S.$100,000,000), (ii) except in the case of any Asset Exchange, if the
fair market value of such asset or assets is in excess of U.S.$50,000,000, at
least 75% of the consideration received by SSCC and the Subsidiaries for such
asset or assets shall be in cash, cash equivalents and readily marketable
securities and (iii) except in the case of any Asset Exchange, any
non-cash consideration shall consist of debt obligations of the purchaser, provided
that the foregoing shall not restrict SSCC or any Subsidiary from receiving
debt obligations of the purchaser in an aggregate principal amount not in
excess of U.S.$50,000,000 in connection with any single transaction or series
of related transactions.

 

(b)  Notwithstanding anything to the contrary in this
Agreement, except for the sale of Program Receivables as permitted by the
Receivables Program Documents, SSCC shall not transfer any of its assets to any
Subsidiary and none of the Subsidiaries shall transfer any of its assets to any
other Subsidiary unless (i) in the case of any asset or assets
constituting Collateral, such asset or assets is transferred to a Loan Party
and the Collateral Agent is satisfied that the Liens created under the Security
Documents on such asset or assets shall be in full force and effect, or
(ii) in the case of any asset or assets not constituting Collateral, such
transfer is permitted as an Investment under Section 7.04.

 

SECTION 7.17.  Fiscal Year.  Cause the fiscal year of SSCC or any Borrower
to end on a date other than December 31.

 

121

 

ARTICLE VIII

 

Events of Default

 

In case of the happening of any of the following events (each, an “Event
of Default”):

 

(a)  any representation or warranty made or deemed
made in any Loan Document, or any representation, warranty, statement or
information contained in any report, certificate, financial statement or other
instrument furnished pursuant to any Loan Document, shall prove to have been
false or misleading in any material respect when so made, deemed made or
furnished;

 

(b)  default shall be made in the payment of any
principal of any Loan or LC Disbursement when and as the same shall become due
and payable, whether at the due date thereof or at a date fixed for prepayment
thereof or by acceleration thereof or otherwise;

 

(c)  default shall be made in the payment of any
interest on any Loan or any Fee or any other amount (other than an amount
referred to in paragraph (b) above) due under any Loan Document,
when and as the same shall become due and payable, and such default shall
continue unremedied for a period of three Business Days, in the case of payment
of any such interest or Fee, or 10 Business Days in the case of payment of any
such other amount;

 

(d)  default shall be made in the due observance
or performance by SSCC or either Borrower of any covenant, condition or
agreement contained in Section 6.01 (with respect to SSCC or any
Borrower), 6.05(a), 6.08 or in Article VII;

 

(e)  default shall be made in the due observance
or performance by any Loan Party or any of their respective Subsidiaries of any
covenant, condition or agreement contained in any Loan Document (other than
those defaults specified in paragraph (b), (c) or (d)
above) and such default shall continue unremedied for a period of 30 days
after written notice thereof from the Administrative Agent or any Lender to the
Borrowers;

 

(f)  SSCC or any Subsidiary shall (i) fail to
pay any principal or interest, regardless of amount, due in respect of any
Indebtedness in a principal amount in excess of U.S.$30,000,000, when and as
the same shall become due and payable (after giving effect to any applicable
grace period), or (ii) fail to observe or perform any other term,
covenant, condition or agreement contained in any agreement or instrument
evidencing or governing any such Indebtedness (after giving effect to any
applicable grace period), if the effect of any failure referred to in this clause (ii) is
to cause, or to permit the holder or holders of such Indebtedness or a trustee
on its or their behalf to cause, such Indebtedness to become due prior to its
stated maturity, provided that this paragraph (f) shall not

 

122

 

apply to secured Indebtedness
that becomes due as a result of the voluntary sale or transfer of the property
or asset securing such Indebtedness;

 

(g)  an involuntary proceeding shall be commenced
or an involuntary petition shall be filed in a court of competent jurisdiction
seeking (i) relief in respect of SSCC, either Borrower or any Material
Subsidiary, or of a substantial part of the property or assets of any such
Person, under any Insolvency Law, (ii) the appointment of a receiver,
interim receiver, receiver and manager, trustee, custodian, sequestrator, conservator
or similar official for any such Person or for a substantial part of the
property or assets of any such Person or (iii) the winding-up or
liquidation of any such Person; and such proceeding or petition shall continue
undismissed for 60 days or an order or decree approving or ordering any of
the foregoing shall be entered;

 

(h)  SSCC, either Borrower or any Material
Subsidiary shall (i) voluntarily commence any proceeding or file any
petition seeking relief under any Insolvency Law, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in paragraph (g)
above, (iii) apply for or consent to the appointment of a receiver,
interim receiver, receiver and manager, trustee, custodian, sequestrator,
conservator or similar official for any such Person or for a substantial part
of the property or assets of any such Person, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors,
(vi) become unable, admit in writing its inability or fail generally to
pay its debts as they become due or (vii) take any action for the purpose
of effecting any of the foregoing;

 

(i)  one or more judgments for the payment of
money, individually or in the aggregate, in an amount in excess of
U.S.$30,000,000 (in each case to the extent not adequately covered by insurance
proceeds as to which the insurance company has acknowledged coverage pursuant
to a writing reasonably satisfactory to the Senior Agents), shall be rendered
against SSCC or any of the Subsidiaries or any combination thereof and the same
shall remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, vacated, discharged or satisfied;

 

(j)  an ERISA Event shall have occurred that, when
taken together with all other ERISA Events that have occurred, could reasonably
be expected to result in liability of SSCC and its Subsidiaries in an aggregate
amount exceeding U.S.$30,000,000;

 

(k)  there shall have occurred a Change in Control
or SSCC or any Subsidiary shall make any mandatory prepayment, repurchase or
redemption or make any offer to make any such mandatory prepayment, repurchase
or redemption of any Indebtedness in an aggregate outstanding principal amount
in excess of U.S.$30,000,000 on account of any “Change of Control” (however
designated);

 

123

 

(l)  any Lien purported to be created by any
Security Document shall cease to be, or shall be asserted by any Loan Party not
to be, a valid, perfected (or, in the case of the Province of Quebec,
published), first priority (or, in the case of the Province of Quebec,
first-ranking) (except as otherwise expressly provided in this Agreement or
such Security Document) Lien on any Collateral with a fair market value or book
value (whichever is greater) in excess, individually or in the aggregate, of
U.S.$100,000,000, except to the extent that any such loss of perfection,
priority or rank results from the failure of the Collateral Agent to maintain
possession of certificates representing securities pledged under the Security
Documents or otherwise take any action within its control (including the filing
of Uniform Commercial Code continuation statements or similar filings or
registrations under the applicable laws of any other jurisdiction);

 

(m)  any Loan Document shall not be for any
reason, or shall be asserted by the Loan Party (except as otherwise expressly
provided in this Agreement or such Loan Document) not to be, in full force and
effect and enforceable in all material respects in accordance with its terms;
or

 

(n)  the Loan Documents Obligations shall cease to
constitute, or shall be asserted by any Loan Party (except as otherwise
expressly provided in this Agreement or such Loan Document) not to constitute,
senior indebtedness under the subordination provisions of any subordinated
Indebtedness, or any such subordination provisions shall be invalidated or
otherwise cease to be a legal, valid and binding obligation of the parties
thereto, enforceable in accordance with its terms;

 

then, and in every such event (other than an event with respect to SSCC
or either Borrower described in paragraph (g) or (h) above),
and at any time thereafter during the continuance of such event, the
Administrative Agent may and, at the request of the Required Lenders, shall, by
notice to the Borrowers, take any of or all the following actions, at the same
or different times:  (i) terminate
forthwith the Commitments, (ii) declare the Loans then outstanding to be
forthwith due and payable, in whole or in part, whereupon the principal of the
Loans so declared to be due and payable, together with accrued interest thereon
and any unpaid accrued Fees and all other liabilities of the Loan Parties
accrued hereunder and under any other Loan Document, shall become forthwith due
and payable, without presentment, demand, protest or any other notice of any
kind, all of which are hereby expressly waived by each Loan Party, anything
contained herein or in any other Loan Document to the contrary notwithstanding,
and (iii) exercise any remedies available under any Loan Document or
otherwise; and in any event with respect to SSCC or either Borrower described
in paragraph (g) or (h) above, the Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and any unpaid accrued Fees and all
other liabilities of the Loan Parties accrued hereunder and under any other
Loan Document, shall automatically become due and payable, without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by each Loan Party, anything contained herein or in any other
Loan Document to the contrary notwithstanding.

 

124

 

ARTICLE IX

 

The Agents

 

In order to expedite the transactions contemplated by this Agreement,
(a) DB is hereby irrevocably appointed to act as a Senior Agent, the
Administrative Agent and the Collateral Agent for the Facing Agents and the
Lenders, (b) DB Canada is hereby irrevocably appointed to act as the
Canadian Administrative Agent for the Revolving (Canadian) Facility Facing Agent
and SSC Canada Lenders and (c) JPMCB is hereby irrevocably appointed to
act as a Senior Agent for the Facing Agents and the Lenders and as the Deposit
Account Agent for the Deposit Funded Facility Facing Agent and the Deposit
Funded Lenders.  Each of the Lenders and
the Facing Agents hereby irrevocably authorizes each Agent and the Trustee to
take such actions on its behalf and to exercise such powers as are delegated to
such Agent or to the Trustee by the terms and provisions hereof and of the
other Loan Documents, together with such actions and powers as are reasonably
incidental thereto.  Without limiting the
foregoing, each of the Collateral Agent and the Trustee is expressly authorized
to execute any and all documents with respect to the Collateral and the Program
Receivables and the rights of the Lenders and the Facing Agents with respect
thereto and to act as Collateral Agent on behalf of the Lenders and the Facing
Agents, in each case as contemplated by and in accordance with the terms and
provisions of this Agreement and the Security Documents.

 

For greater certainty and without limiting the powers of the Collateral
Agent herein and for the purposes of constituting security on any of the
Collateral, present or future, of SSC Canada or any other Canadian Subsidiary
located or deemed to be located in the Province of Quebec, as security for the
due payment of the Bonds, it is hereby agreed and acknowledged that the Trustee
is, for the purposes of holding the Hypothecs granted pursuant to the laws of the
Province of Quebec, appointed the holder of an irrevocable power of attorney
for all present and future holders of the Bonds by SSC Canada, the other
Canadian Subsidiaries, the Collateral Agent (including in its capacity as
holder of the Bonds), the SSC Canada Lenders, the Canadian Administrative
Agent, the Senior Agents, the Revolving (Canadian) Facility Facing Agent and
the other Beneficiaries (as defined in the Bond Pledge Agreements (the “Other
Beneficiaries”)).  By the execution
of any Assignment and Acceptance or by its appointment, as the case may be, any
future SSC Canada Lender (including any such Lender that is an Incremental
Lender), Canadian Administrative Agent, Collateral Agent, Senior Agent,
Revolving (Canadian) Facility Facing Agent and Other Beneficiaries shall be
deemed to ratify the powers of attorney approved, ratified, confirmed and
granted to the Trustee hereunder. 
Furthermore, the Collateral Agent hereby agrees to act in the capacity
of the collateral agent and depositary of the Bonds for the benefit of all
present and future SSC Canada Lenders (including any such Lender that is an
Incremental Lender), Canadian Administrative Agent, Senior Agent, Revolving
(Canadian) Facility Facing Agent and Other Beneficiaries.  Any future SSC Canada Lenders (including any
such Lender that is an Incremental Lender), Canadian Administrative Agent,
Senior Agent, Revolving (Canadian) Facility Facing Agent and Other Beneficiary
shall be deemed to reconfirm the above mandate of the Collateral Agent.  SSC Canada and the other Canadian
Subsidiaries, the Senior Agents, the Revolving (Canadian) Facility Facing
Agent, the

 

125

 

Collateral Agent, the Canadian Administrative
Agent, the SSC Canada Lenders and the Other Beneficiaries agree that
(a) notwithstanding the provisions of Section 32 of the Act
Respecting Special Powers of Legal Persons (Quebec), the Trustee may acquire
any title or indebtedness secured by the Hypothecs, and that (b) the Bonds
constitute “titles of indebtedness” within the meaning of such term in Article 2692
of the Civil Code of Quebec.  This
paragraph shall be governed by, and construed in accordance with, the law of
the Province of Quebec and the federal laws of Canada applicable therein, excluding
the choice of law and conflicts of laws rules thereof.

 

None of the Agents shall be liable as such for any action taken or
omitted by any or them with the consent or at the request of the Required
Lenders (or such other number of percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 11.08) or
in the absence of its own gross negligence or willful misconduct, or be
responsible for any statement, warranty or representation in any Loan Document
or the contents of any document delivered in connection herewith, or be
required to ascertain or to make any inquiry concerning the performance or
observance by the Loan Parties of any of the terms, conditions, covenants or
agreements contained in any Loan Document. 
None of the Agents shall be deemed not to have knowledge of any Default
unless and until written notice thereof is given to such Agent by SSCC, either
Borrower or a Lender.  None of the Agents
shall be responsible to the Lenders or the Facing Agents for the due execution,
genuineness, validity, enforceability or effectiveness of this Agreement, any
other Loan Document or any other instruments or agreements.  Each Agent shall in all cases be fully
protected in acting, or refraining from acting, in accordance with written
instructions signed by the Required Lenders (and the Facing Agents, with
respect to Letters of Credit) and, except as otherwise specifically provided
herein, such instructions and any action or inaction pursuant thereto shall be
binding on all Lenders and Facing Agents. 
Each Agent shall be entitled to rely on any instrument or document
believed by them in good faith to be genuine and correct and to have been
signed or sent by the proper Person or Persons. 
Each Agent shall also be entitled to rely on any statement made to it
orally or by telephone and believed by it to be made by the proper Person, and
shall not incur any liability for relying thereon.  None of the Agents or any of their respective
directors, officers, employees or agents shall have any responsibility to the
Loan Parties on account of the failure of or delay in performance or breach by
any Lender or any Facing Agent of any of its obligations hereunder or to any
Lender or any Facing Agent on account of the failure of or delay in performance
or breach by any other Lender, any other Facing Agent or any Loan Party of any
of their respective obligations hereunder or under any other Loan Document or
in connection herewith or therewith. 
Each Agent may execute any and all duties hereunder by or through agents
or employees (and the exculpatory provisions of this Article IX
shall apply to any such agent or employee) and shall be entitled to rely upon
the advice of legal counsel with respect to all matters arising hereunder and
shall not be liable for any action taken or suffered in good faith by any of
them in accordance with the advice of such counsel.

 

The Lenders and the Facing Agents hereby acknowledge that (a) none
of the Agents shall be under any duty to take any discretionary action or exercise
any discretionary powers, except discretionary rights and powers expressly
contemplated by

 

126

 

the Loan Documents that such Agent is
required to exercise in writing by the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 11.08), and (b) except as expressly set forth
in the Loan Documents, none of the Agents shall have any duty to disclose, or
shall be liable for the failure to disclose, any information relating to SSCC
or any of the Subsidiaries that is communicated to or obtained by the Person
serving as Agent or any of its Affiliates in any capacity.

 

Subject to the appointment and acceptance of a successor Agent as
provided below, each of the Administrative Agent, the Canadian Administrative
Agent, the Collateral Agent and the Deposit Account Agent may resign at any
time by notifying the other Agents, the Lenders, the Facing Agents and the
Borrowers.  Upon any such resignation,
the Required Lenders (or (a) in the case of the resignation of the Canadian
Administrative Agent, a majority in interest of the SSC Canada Lenders and (b)
in the case of the resignation of the Deposit Account Agent, a majority in
interest of the Deposit Funded Lenders) shall have the right to appoint a
Lender as the successor, which successor agent shall, unless an Event of
Default under paragraph (b), (c), (g) or (h) of Article VIII
shall have occurred and be continuing, be subject to approval by SSCE (not to
be unreasonably withheld or delayed); provided that any successor
Canadian Administrative Agent shall not be a non-resident of Canada or shall be
deemed to be resident in Canada for the purposes of Part XIII of the ITA.  If no successor shall have been so appointed
by the Required Lenders, the SSC Canada Lenders or the Deposit Funded Lenders,
as the case may be, and shall have accepted such appointment within
30 days after the retiring agent gives notice of its resignation, then the
retiring agent may, on behalf of the Lenders and the Facing Agents, appoint a
successor agent, which shall be a bank with an office in New York, New York
(or, in the case of the Canadian Administrative Agent, Toronto, Ontario),
having a combined capital and surplus of at least U.S.$500,000,000 or an
Affiliate of any such bank and, in the case of appointing of the Canadian
Administrative Agent, shall not be a non-resident of Canada or shall be deemed
to be Resident in Canada for the purposes of Part XIII of the ITA.  Upon the acceptance of any appointment as
Agent hereunder by a successor bank, such successor shall succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Agent
and the retiring Agent shall be discharged from its duties and obligations
hereunder.  Each of the Senior Agents may
resign at any time by notifying the other Agents, the Lenders, the Facing
Agents and the Borrowers.  Upon any such
resignation, any provision herein or in any other Loan Document requiring the
consent of or notice to the Senior Agents shall be deemed to require the
consent of or notice to only the remaining Senior Agent or, in the case of
resignation of both Senior Agents, the Administrative Agent.  After any Agent’s resignation hereunder, the
provisions of this Article IX and Section 11.05 shall
continue in effect for its benefit in respect of any actions taken or omitted
to be taken by it while it was acting as Agent.

 

With respect to the Loans made by it hereunder, each Agent, in its individual
capacity and not as Agent, shall have the same rights and powers as any other
Lender and may exercise the same as though it were not an Agent and each Agent
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of

 

127

 

business with the Loan Parties or any of
their respective Subsidiaries or other Affiliates as if it were not an Agent.

 

Each Lender agrees (a) to reimburse each Agent and each Facing
Agent, on demand, in the amount of such Lender’s pro rata share (based on its
Commitments hereunder (provided that (x) in the case of Term Loans
or (y) in the event that such Commitments shall have expired or been
terminated, such pro rata share shall be based on the respective principal
amounts of the outstanding Loans (other than Swingline Loans) and/or
participations in LC Disbursements and Swingline Loans, as applicable)) of any
expenses incurred for the benefit of the Lenders by such Agent or such Facing
Agent, including fees, disbursements and other charges of counsel and
compensation of agents paid for services rendered on behalf of the Lenders,
that shall not have been reimbursed by the Loan Parties and (b) to
indemnify and hold harmless each Agent and each Facing Agent and any of their
respective directors, officers, employees or agents, on demand, in the amount
of such pro rata share, from and against any and all liabilities, taxes,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses
or disbursements of any kind or nature whatsoever that may be imposed on,
incurred by or asserted against it in its capacity as an Agent or a Facing
Agent, as the case may be, or any of them in any way relating to or arising out
of this Agreement or any other Loan Document or any action taken or omitted by
it or any of them under this Agreement or any other Loan Document, to the
extent the same shall not have been reimbursed by the Loan Parties; provided,
however, that no Lender shall be liable to any Agent or any Facing Agent
for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the
gross negligence or willful misconduct of such Agent or such Facing Agent, as
the case may be.

 

Each Lender acknowledges that it has, independently and without
reliance upon any Agent, any other Lender or any Facing Agent and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will,
independently and without reliance upon any Agent, any other Lender or any
Facing Agent and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement or any other Loan Document,
any related agreement or any document furnished hereunder or thereunder.

 

Each Agent agrees to act as a contractual representative upon the
express conditions contained in this Article IX.  Notwithstanding the use of the defined term “Senior
Agent”, “Administrative Agent”, “Canadian Administrative Agent”, “Collateral
Agent” or “Deposit Account Agent”, it is expressly understood and agreed that
no Agent shall have any fiduciary or other implied duties to any Lender, any
Facing Agent or any other Agent by reason of this Agreement or any other Loan
Document, regardless of whether a Default has occurred and is continuing, and that
each Agent is merely acting as the contractual representative of the applicable
Lenders and Facing Agents with only those duties as are expressly set forth in
this Agreement and the other Loan Documents. 
In such capacity of a contractual representative, the Agents
(a) hereby assume no

 

128

 

fiduciary duties to any of the Lenders or
Facing Agents, (b) is each a “representative “ of the Lenders and Facing Agents
within the meaning of the term “secured party” as defined in the New York
Uniform Commercial Code and (c) is acting as an independent contractor, the
rights and duties of which are limited to those expressly set forth in this
Agreement and the other Loan Documents. 
Each of the Lenders, Facing Agents and the Agents hereby agrees to
assert no claim against any Agent on any agency theory or any other theory of
liability for breach of fiduciary duty, all of which claims each Lender, each
Facing Agent and each other Agent hereby waives.

 

No Person named on the cover page to this Agreement as a joint
bookrunner, co-lead arranger, syndication agent or co-documentation agent shall
have any duties or responsibilities under this Agreement or any other Loan
Document in its capacity as such.

 

ARTICLE X

 

Collection Allocation Mechanism

 

SECTION 10.01.  Implementation of CAM.  (a)  On
the CAM Exchange Date, the Lenders shall automatically and without further act
(and without regard to the provisions of Section 11.04) be deemed
to have exchanged interests in the Credit Facilities such that in lieu of the
interest of each Lender in each Credit Facility in which it shall participate
as of such date (including such Lender’s interest in the Designated Obligations
of each Loan Party in respect of each such Credit Facility), such Lender shall
hold an interest in every one of the Credit Facilities (including the
Designated Obligations of each Loan Party in respect of each such Credit
Facility), whether or not such Lender shall previously have participated
therein, equal to such Lender’s CAM Percentage thereof.  Each Lender and each Borrower hereby consents
and agrees to the CAM Exchange, and each Lender agrees that the CAM Exchange
shall be binding upon its successors and assigns and any Person that acquires a
participation in its interests in any Credit Facility.  Each Borrower agrees from time to time to
execute and deliver to the Agents all instruments and documents as the Senior
Agents shall reasonably request to evidence and confirm the respective
interests of the Lenders after giving effect to the CAM Exchange.

 

(b)  As a result of the CAM Exchange, upon and
after the CAM Exchange Date, each payment received by the Administrative Agent
or the Collateral Agent pursuant to any Loan Document in respect of the
Designated Obligations, and each distribution made by the Collateral Agent
pursuant to any Security Document in respect of the Designated Obligations,
shall be distributed to the Lenders pro rata in accordance with their
respective CAM Percentages.  Any direct
payment received by a Lender upon or after the CAM Exchange Date, including by
way of setoff, in respect of a Designated Obligation shall be paid over to the
Administrative Agent for distribution to the Lenders in accordance herewith.

 

129

 

SECTION 10.02.  Letters of Credit.  (a)  In
the event that on the CAM Exchange Date any Letter of Credit (other than any
Deposit Funded Facility Letter of Credit) shall be outstanding and undrawn in
whole or in part, or any amount drawn under any such Letter of Credit shall not
have been reimbursed by the applicable Borrower or with the proceeds of a
Revolving Credit Borrowing, Swingline Loan or Revolving (Canadian) Credit
Borrowing, as the case may be, each Lender having, on such date and prior to
giving effect to the CAM Exchange, a Revolving Facility LC Exposure or
Revolving (Canadian) Facility LC Exposure, as the case may be, with respect to
such Letter of Credit shall promptly pay over to the Administrative Agent, in
immediately available funds in the same currency as such Letter of Credit, in
the case of any undrawn amount, and in U.S. Dollars, in the case of any
unreimbursed amount, an amount equal to such Lender’s Applicable Percentage of
such undrawn face amount or (to the extent it has not already done so) such
unreimbursed drawing, as the case may be, together with interest thereon from
the CAM Exchange Date to the date on which such amount shall be paid to the
Administrative Agent at the rate that would be applicable at the time to an ABR
Revolving Loan or Canadian Prime Rate Loan, as the case may be, in a principal
amount equal to such amount.  The
Administrative Agent shall establish a separate account or accounts for each
Lender (each, an “LC Reserve Account”) for the amounts received with
respect to each such Letter of Credit pursuant to the preceding sentence.  The Administrative Agent shall deposit in
each Lender’s LC Reserve Account such Lender’s CAM Percentage of the amounts
received from the Lenders as provided above. 
The Administrative Agent shall have sole dominion and control over each
LC Reserve Account, and the amounts deposited in each LC Reserve Account shall
be held in such LC Reserve Account until withdrawn as provided in paragraph (b),
(c), (d) or (e) below. 
The Administrative Agent shall maintain records enabling it to determine
the amounts paid over to it and deposited in the LC Reserve Accounts in respect
of each Letter of Credit and the amounts on deposit in respect of each Letter
of Credit attributable to each Lender’s CAM Percentage.  The amounts held in each Lender’s LC Reserve
Account shall be held as a reserve against the outstanding Revolving Facility
LC Exposure or Revolving (Canadian) Facility LC Exposure, as the case may be,
shall be the property of such Lender, shall not constitute Loans to or give
rise to any claim of or against any Loan Party and shall not give rise to any
obligation on the part of either Borrower to pay interest to such Lender, it
being agreed that the reimbursement obligations in respect of Letters of Credit
shall arise only at such times as drawings are made thereunder, as provided in Article III.

 

(b)  In the event that on or after the CAM
Exchange Date any drawing shall be made in respect of a Letter of Credit (other
than any Deposit Funded Facility Letter of Credit), the Administrative Agent
shall, at the request of the applicable Facing Agent, withdraw from the LC
Reserve Account of each Lender any amounts, up to the amount of such Lender’s
CAM Percentage of such drawing, deposited in respect of such Letter of Credit
and remaining on deposit and deliver such amounts to the applicable Facing
Agent in satisfaction of the reimbursement obligations of the Lenders under Section 3.05
(but not of either Borrower under Section 3.05).  In the event any Lender shall default on its
obligation to pay over any amount to the Administrative Agent in respect of any
Letter of Credit (other than any Deposit Funded Facility Letter of Credit) as

 

130

 

provided in this Section 10.02,
the applicable Facing Agent shall, in the event of a drawing thereunder, have a
claim against such Lender to the same extent as if such Lender had defaulted on
its obligations under Section 3.05, but shall have no claim against
any other Lender in respect of such defaulted amount, notwithstanding the
exchange of interests in the applicable Borrower’s reimbursement obligations
pursuant Section 10.01.  Each
other Lender shall have a claim against such defaulting Lender for any damages
sustained by it as a result of such default, including, in the event such
Letter of Credit shall expire undrawn, its CAM Percentage of the defaulted
amount.

 

(c)  In the event that after the CAM Exchange Date
any Letter of Credit (other than any Deposit Funded Facility Letter of Credit)
shall expire undrawn, the Administrative Agent shall withdraw from the LC
Reserve Account of each Lender the amount remaining on deposit therein in
respect of such Letter of Credit and distribute such amount to such Lender.

 

(d)  With the prior written approval of the
Administrative Agent and the applicable Facing Agent (not to be unreasonably
withheld), any Lender may withdraw the amount held in its LC Reserve Account in
respect of the undrawn amount of any Letter of Credit.  Any Lender making such a withdrawal shall be
unconditionally obligated, in the event there shall subsequently be a drawing
under such Letter of Credit, to pay over to the Administrative Agent, for the
account of the applicable Facing Agent, on demand, its CAM Percentage of such
drawing.

 

(e)  Pending the withdrawal by any Lender of any
amounts from its LC Reserve Account as contemplated by the above paragraphs,
the Administrative Agent will, at the direction of such Lender and subject to
such rules as the Administrative Agent may prescribe for the avoidance of
inconvenience, invest such amounts in Permitted Investments.  Each Lender which has not withdrawn its CAM
Percentage of amounts in its LC Reserve Account as provided in paragraph (d)
above shall have the right, at intervals reasonably specified by the
Administrative Agent, to withdraw the earnings on investments so made by the
Administrative Agent with amounts in its LC Reserve Account and to retain such
earnings for its own account.

 

(f)  In
the event that on or after the CAM Exchange Date any drawing shall be made in
respect of a Deposit Funded Facility Letter of Credit and shall not be
reimbursed by SSCE when due, then (i) the Deposit Account Agent shall
apply the Deposit of each Deposit Funded Lender (determined prior to giving
effect to the CAM Exchange) to pay to the Deposit Funded Facility Facing Agent
such Lender’s Applicable Percentage (determined prior to giving effect to the
CAM Exchange) of such drawing in satisfaction of the reimbursement obligations
of the Deposit Funded Lenders (but not of SSCE) under Section 3.05
and (ii) the Administrative Agent shall redetermine the CAM Percentages after
giving effect to such drawing and the reimbursement thereof by the applicable
Deposit Funded Lenders.  Each such
redetermination shall be binding on each of the Lenders and their successors
and assigns and shall be conclusive, absent manifest error.  For the avoidance of doubt, the provisions of
Section 2.01(d) shall be in full force

 

131

 

and
effect with respect to the Deposit Account and the Deposits notwithstanding the
occurrence of the CAM Exchange.

 

SECTION 10.03.  Conversion.  In the event the CAM Exchange Date shall
occur, Obligations owed by the Loan Parties denominated in any currency other
than U.S. Dollars (other than, for the avoidance of doubt, obligations in
respect of undrawn Revolving (Canadian) Facility Letters of Credit denominated
in Canadian Dollars) shall, automatically and with no further act required, be
converted to obligations of the same Loan Parties denominated in U.S.
Dollars.  Such conversion shall be
effected based upon the Exchange Rates in effect with respect to the relevant
currencies on the CAM Exchange Date.  On
and after any such conversion, all amounts accruing and owed to any Lender in
respect of its Obligations shall accrue and be payable in U.S. Dollars at the
rates otherwise applicable hereunder (and, in the case of interest on Loans, at
the default rate applicable to ABR Loans hereunder).  Notwithstanding the foregoing provisions of
this Section 10.03, any Lender may, by notice to the Borrowers and
the Administrative Agent prior to the CAM Exchange Date, elect not to have the
provisions of this Section 10.03 apply with respect to all
Obligations owed to such Lender immediately following the CAM Exchange Date,
and, if such notice is given, all Obligations owed to such Lender immediately
following the CAM Exchange Date shall remain designated in their original currencies.

 

ARTICLE XI

 

Miscellaneous

 

SECTION 11.01.  Notices.  Except as otherwise expressly permitted
herein, notices and other communications provided for herein shall be in
writing and shall be delivered by hand or overnight courier service, mailed or
sent by fax, as follows:

 

(a)  if to SSCC, SSCE or SSC Canada, to it at 8182
Maryland Avenue, St. Louis, MO 63105, Attention of Treasurer (Fax No. (314) 746-1281);

 

(b)  if to JPMCB, as Lender, Senior Agent, Deposit
Account Agent or Deposit Funded Facility Facing Agent, to it at 270 Park
Avenue, New York, NY 10017, Attention of Peter S. Predun (Fax No.
(212) 270-4724);

 

(c)  if to DB, as Lender, Senior Agent,
Administrative Agent, Collateral Agent, Swingline Lender or Revolving Facility
Facing Agent, to it at 90 Hudson Street, 1st Floor, Jersey City, NJ 07302,
Attention of Helaine Griffin-Williams (Fax No. (201) 593-2308);

 

(d)  if to DB Canada, as Lender, Canadian
Administrative Agent or Revolving (Canadian) Facility Facing Agent, to it at
222 Bay Street, Suite 1100, Toronto, Ontario, Canada M5K 1E7, Attention of
Karyn Curran (Fax No. (416) 682-8444); and

 

132

 

(e)  if to any other Lender, at its address (or
fax number) set forth in its Administrative Questionnaire.

 

Any party hereto may change its address or fax number for notices and
other communications hereunder by notice to the other parties hereto.  All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt if delivered by hand or
overnight courier service or sent by fax, or on the date five Business Days
after dispatch by certified or registered mail if mailed, in each case
delivered, sent or mailed (properly addressed) to such party as provided in
this Section 11.01  The
Administrative Agent shall deliver to the Borrowers and to JPMCB, as a Senior
Agent, a copy of each Administrative Questionnaire received by it.

 

SECTION 11.02.  Survival of Agreement.  All covenants, agreements, representations
and warranties made by SSCC and the Borrowers herein and by the Loan Parties in
the other Loan Documents and in the certificates or other instruments prepared
or delivered in connection with or pursuant to this Agreement or any other Loan
Document shall be considered to have been relied upon by the Lenders, the
Agents and the Facing Agents and shall survive the making by the Lenders of the
Loans and the issuance of Letters of Credit by the Facing Agents, regardless of
any investigation made by, or on behalf of, the Lenders or the Facing Agents,
and shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any Fee or any other amount payable under this
Agreement or any other Loan Document is outstanding and unpaid or any Letter of
Credit is outstanding and so long as the Commitments have not been
terminated.  The provisions of Sections
2.14, 2.15, 2.19 and 11.05 and Article IX
shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof.

 

SECTION 11.03.  Counterparts; Binding Effect.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This
Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received
counterparts hereof which, when taken together, bear the signatures of each of
the other parties hereto, and thereafter shall be binding upon and inure to the
benefit of SSCC, the Borrowers, the Agents, the Facing Agents and the Lenders
and their respective successors and assigns, except that neither SSCC nor any
Borrower shall have the right to assign its rights or duties hereunder or any
interest herein without the prior consent of all the Lenders, and any attempted
assignment by any such Person shall be void (it being understood that a merger
of SSCC or any Borrower with and into any other Person in which the other
Person is the surviving entity shall not be considered an assignment of such
Borrower’s duties hereunder and would instead be subject to the restrictions of
Section 7.05).

 

133

 

SECTION 11.04.  Successors and Assigns.  (a)  Subject
to Section 11.03, whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the successors
and assigns of such party, and all covenants, promises and agreements by or on
behalf of SSCC, the Borrowers, the Agents, the Facing Agents or the Lenders
that are contained in this Agreement shall bind and inure to the benefit of
their respective successors and assigns.

 

(b)  Each Lender may assign to one or more
assignees (treating any Approved Funds that are administered or managed by the
same Person or an Affiliate of such Person as a single assignee) all or a
portion of its interests, rights and/or obligations under this Agreement
(including all or a portion of its Commitments, its Deposit and the Loans at
the time owing to it); provided, however, that (i) except in
the case of an assignment to a Lender, an Affiliate of the assigning Lender or
an Approved Fund (unless the interest that is being assigned is a Revolving
Credit Commitment or a Revolving (Canadian) Credit Commitment, and such Lender,
Affiliate or Approved Fund is not then a Revolving Lender or Revolving
(Canadian) Lender, respectively), each of the Administrative Agent and, at any
time after the earlier of (A) the date upon which the Senior Agents reasonably
determine that the primary syndication of the Term Loans has been completed (it
being understood that the Senior Agents will promptly notify SSCE of the
occurrence of such date) and (B) 60 days after the Closing Date, SSCE (and (x)
in the case of an assignment of a Revolving Credit Commitment, the Swingline
Lender and the Revolving Facility Facing Agent, (y) in the case of an
assignment of a Revolving (Canadian) Credit Commitment, the Revolving (Canadian)
Facility Facing Agent and (z) in the case of an assignment of a Deposit
Funded Commitment, the Deposit Account Agent) must give its prior written
consent to such assignment (which consent shall not be unreasonably withheld or
delayed, it being understood that such consent shall be deemed to have been
reasonably withheld if the proposed assignee, in respect of a Revolving
(Canadian) Credit Commitment only, is a non-resident of Canada and is not
otherwise deemed to be a resident of Canada for the purposes of Part XIII of
the ITA), provided that the consent of SSCE shall not be required if an
Event of Default under paragraph (b), (c), (g) or (h)
of Article VIII has occurred and is continuing on the date of the
Assignment and Acceptance, (ii) upon reasonable request by any Senior Agent,
the Administrative Agents shall provide a list of all of the Lenders and a list
of the assignments and the parties thereto to such requesting Senior Agent
within two Business Days, (iii) except in the case of an assignment to a
Lender, an Affiliate of the assigning Lender or an Approved Fund, the amount of
the Commitments and Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Acceptance with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than U.S.$1,000,000 (or an amount equal to the remaining balance of
such Lender’s Commitments and Loans of the relevant Class) unless each of SSCE
and the Administrative Agent otherwise consents, and (iv) the parties to
each such assignment shall execute and deliver to the Administrative Agent an
Assignment and Acceptance, and a processing and recordation fee of U.S.$3,500; provided
further that, notwithstanding the foregoing, the sale or assignment by
any assignor (which acquired an interest in the

 

134

 

Commitments and Loans of any
Class in an amount less than U.S.$1,000,000 pursuant to an exception to clause (iii)
of the immediately preceding proviso) to any Person that is not a Lender or an
Affiliate of such assignor or an Approved Fund shall be subject to the minimum
assignment requirement set forth in the immediately preceding proviso if all
the Affiliates of such Lender hold Commitments and Loans of the relevant Class
in the amount of U.S.$1,000,000 or more in the aggregate.  Upon acceptance and recording pursuant to paragraph
(e) below, from and after the effective date specified in each Assignment
and Acceptance, (i) the assignee thereunder shall be a party hereto and,
to the extent of the interest assigned by such Assignment and Acceptance, shall
have the rights and obligations of a Lender under this Agreement and the other
Loan Documents and (ii) the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Acceptance, be released
from its obligations under this Agreement (and, in the case of an Assignment
and Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto, but shall continue to be entitled to the benefits of Sections 2.14,
2.15, 2.19 and 11.05, as well as to any Fees accrued for
its account and not yet paid).

 

(c)  In the case of
any assignment pursuant to paragraph (b) above by a Deposit Funded
Lender, the Administrative Agent shall give prompt notice of effectiveness
thereof to the Deposit Account Agent. 
The Deposit of the assignor Deposit Funded Lender shall not be released,
but shall instead be purchased by the relevant assignee and continue to be held
for application (to the extent not already applied) in accordance with this
Agreement to satisfy such assignee’s obligations in respect of Deposit Funded
Loans and the Deposit Funded LC Exposure. 
Each Deposit Funded Lender agrees that immediately prior to each
assignment (i) the Administrative Agent shall establish a new Sub-Account in
the name of the assignee, (ii) a corresponding portion of the Deposit credited
to the Sub-Account of the assignor Deposit Funded Lender shall be purchased by
the assignee and shall be debited from the assignor’s Sub-Account and credited
to the assignee’s Sub-Account and (iii) if after giving effect to such
assignment the Deposit Funded Commitment of the assignor Deposit Funded Lender
shall be zero, the Administrative Agent shall close the Sub-Account of such
assignor Lender.

 

(d)  By executing and delivering an Assignment and
Acceptance, the assigning Lender thereunder and the assignee thereunder shall be
deemed to confirm to and agree with each other and the other parties hereto as
follows:  (i) such assigning Lender
warrants that it is the legal and beneficial owner of the interest being
assigned thereby, free and clear of any adverse claim; (ii) except as set
forth in clause (i) above, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with this
Agreement, or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement, any other Loan Document or any other
instrument or document furnished pursuant hereto, or the financial condition of
the Loan Parties or the performance or observance by the Loan Parties of any of
their obligations under this

 

135

 

Agreement or under any other
Loan Document or any other instrument or document furnished pursuant hereto;
(iii) such assignee represents and warrants that it is legally authorized
to enter into such Assignment and Acceptance; (iv) such assignee confirms
that it has received a copy of this Agreement, together with copies of any
amendments or consents entered into prior to the date of such Assignment and
Acceptance and copies of the most recent financial statements delivered
pursuant to Section 6.04 and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into such Assignment and Acceptance; (v) such assignee will
independently and without reliance upon any Agent, any Facing Agent, such
assigning Lender or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement;
(vi) such assignee appoints and authorizes each of the Agents to take such
action as agent on its behalf and to exercise such powers as are delegated to
such Agent by the terms hereof and of the other Loan Documents, together with
such powers as are reasonably incidental thereto; and (vii) such assignee
agrees that it will perform in accordance with their terms all the obligations
that by the terms of this Agreement are required to be performed by it as a
Lender.

 

(e)  The Administrative Agent, acting for this
purpose as agent of the Borrowers, shall maintain at one of its offices in The
City of New York a copy of each Assignment and Acceptance delivered to it and a
register for the recordation of the names and addresses of the Lenders, and the
Commitments of, and principal amount of the Loans owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive in the absence of manifest error and SSCC, the Borrowers, the
Agents, the Facing Agents and the Lenders shall treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by SSCC, the Borrowers, any Agent, any Facing Agent and any Lender
at any reasonable time and from time to time upon reasonable prior notice.

 

(f)  Upon its receipt of a duly completed Assignment
and Acceptance executed by an assigning Lender and an assignee, together with
an Administrative Questionnaire completed in respect of the assignee (unless
the assignee shall already be a Lender hereunder), the processing and
recordation fee referred to in paragraph (b) above and the written
consent to such assignment of any Person whose consent is required pursuant to paragraph
(b) above, the Administrative Agent shall (i) accept such Assignment
and Acceptance and (ii) record the information contained therein in the
Register.  No assignment shall be
effective unless it has been recorded in the Register as provided in this paragraph (f).

 

(g)  Each Lender may, without the consent of SSCC,
any Agent, any Facing Agent or the Swingline Lender, sell participations to one
or more banks or other entities in all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment,
its Deposit and the Loans owing to it); provided, however, that
(i) such Lender’s obligations under this Agreement shall

 

136

 

remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) the participating
banks or other entities shall be entitled to the benefit of the cost protection
provisions contained in Sections 2.14, 2.15, 2.19 and
11.05 to the same extent as if they were Lenders, provided that,
except as expressly provided in Section 2.19(a), the Borrowers
shall not be required to reimburse the participating banks or other entities
pursuant to Section 2.14, 2.15, 2.19 or 11.05
in an amount in excess of the amount that would have been payable thereunder to
such Lender had such Lender not sold such participation, and (iv) the
Borrowers, the Agents, the Facing Agents and the other Lenders shall continue
to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement, and such Lender shall retain the
sole right to enforce the obligations of the Loan Parties under the Loan
Documents and to approve any amendment, modification or waiver of any provision
of this Agreement (provided that the participating bank or other entity
may be provided with the right to approve amendments, modifications or waivers
affecting it that (v) decrease any Fees payable hereunder, (w) decrease the
amount of principal of, or the rate at which interest is payable on, the Loans,
(x) extend any scheduled principal payment date or date for the scheduled
payment of interest on the Loans, (y) increase the amount of or extend the
termination date of the Commitments or (z) release a Guarantor from its
guarantee under the applicable Guarantee Agreement (except as expressly
contemplated by any Loan Document) or all or substantially all of the
Collateral from the Liens created under the Security Documents (except as
expressly contemplated by any Loan Document).

 

(h)  Notwithstanding the limitations set forth in paragraph (b)
above, (i) any Lender may at any time assign all or any portion of its
rights under this Agreement to a Federal Reserve Bank without the prior written
consent of SSCC, any Agent, any Facing Agent or the Swingline Lender,
(ii) any Lender which is a fund may pledge all or any portion of its
rights under this Agreement to its trustee or other creditor in support of its
obligations to its trustee or other creditor without the prior written consent
of SSCC, any Agent, any Facing Agent or the Swingline Lender and (iii) any
Lender may at any time assign or pledge all or any portion of its rights under
this Agreement to direct or indirect contractual counterparties in swap
agreements related to the Loans, provided that no such assignment
pursuant to clause (i), (ii) or (iii) shall release a
Lender from any of its obligations hereunder or substitute any such Bank or
trustee for such Lender as a party hereto.

 

(i)  Except as provided in Article III
and Section 2.21, respectively, neither any of the Facing Agents
nor the Swingline Lender may assign or delegate any of its respective rights
and duties hereunder without the prior written consent of the Borrowers, each
Senior Agent and the Administrative Agent.

 

SECTION 11.05.  Expenses; Indemnity.  (a)  The
Borrowers agree, jointly and severally, to pay all reasonable out-of-pocket
expenses incurred by any Agent, any Facing Agent and the Swingline Lender in
connection with the preparation, execution and delivery of this Agreement and
the other Loan Documents (including all costs relating to due diligence) or in
connection with any amendments, modifications or

 

137

 

waivers of the
provisions hereof or thereof (whether or not the transactions hereby
contemplated shall be consummated) or incurred by any Agent, any Facing Agent
or any Lender in connection with the enforcement or protection of their rights
in connection with this Agreement and the other Loan Documents or in connection
with the Loans made or the Letters of Credit issued hereunder, including the reasonable
fees, disbursements and other charges of Cravath, Swaine & Moore LLP,
counsel for JPMCB and DB, and, in connection with any such enforcement or
protection, the reasonable fees, disbursements and other charges of any other
counsel for any Agent, any Facing Agent or any Lender.  The Borrowers further agree to indemnify the
Agents, the Facing Agents and the Lenders from, and hold them harmless against,
any documentary taxes, assessments or similar charges made by any Governmental
Authority by reason of the execution and delivery of this Agreement or any of
the other Loan Documents.

 

(b)  The Borrowers agree, jointly and severally,
to indemnify each Arranger, each Agent, each Facing Agent and each Lender and
each of their respective directors, officers, employees, trustees, advisors and
agents (each such person being called an “Indemnitee”) against, and to
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including reasonable counsel fees, disbursements
and other charges, incurred by or asserted against any Indemnitee arising out
of, in any way connected with, or as a result of (i) the execution or
delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties
hereto or thereto of their respective obligations hereunder or thereunder or
the consummation of the Transactions and the other transactions contemplated
hereby or thereby, (ii) the use of the Letters of Credit or the proceeds
of the Loans, (iii) any claim, litigation, investigation or proceeding
relating to any of the foregoing, whether or not any Indemnitee is a party
thereto or (iv) any actual or alleged presence or release of Hazardous
Materials on or from any property currently or formerly owned or operated by
SSCC or any of the Subsidiaries or any of their respective predecessors or any
liability under any Environmental Law related in any way to SSCC or any of the
Subsidiaries, provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses have resulted from the gross negligence or
willful misconduct of such Indemnitee.

 

(c)  The provisions of this Section 11.05
shall remain operative and in full force and effect regardless of the
expiration of the term of this Agreement, the consummation of the transactions
contemplated hereby, the repayment of any of the Loans, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan
Document, or any investigation made by or on behalf of any Agent, any Facing
Agent or any Lender.  All amounts due
under this Section 11.05 shall be payable promptly after written
demand therefor.

 

SECTION 11.06.  Right of Setoff.  Each Lender is hereby authorized, in addition
to any other right or remedy that any Lender may have by operation of law or
otherwise, at any time and from time to time upon any amount becoming due and
payable by any Loan Party under any Loan Document, after the expiration of any
grace period

 

138

 

with respect
thereto, to exercise, without notice to SSCC or any Borrower (any such notice
being expressly waived by each such Person), its banker’s lien or right of
combination of accounts or right of setoff and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other Indebtedness at any time owing by such Lender to or for the credit or the
account of any Loan Party against such due and payable amount.  Each Lender agrees to promptly notify the
Borrowers and the Administrative Agent after any such setoff and application
made by such Lender, provided that the failure to give such notice shall
not affect the validity of such setoff and application.

 

SECTION 11.07.  Applicable Law.  THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN AS EXPRESSLY SET FORTH IN
THE SECOND PARAGRAPH OF ARTICLE IX AND IN THE OTHER LOAN DOCUMENTS) SHALL
BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF TITLE 14 OF THE NEW YORK GENERAL
OBLIGATIONS LAW BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAWS
RULES THEREOF.

 

SECTION 11.08.  Waivers; Amendment.  (a)  No
failure or delay on the part of any Agent, any Facing Agent or any Lender in
exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right or power, or any abandonment
or discontinuation of steps to enforce such a right or power, preclude any
other or further exercise thereof or the exercise of any other right or
power.  The rights and remedies of the
Agents, the Facing Agents and the Lenders hereunder and under the other Loan
Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have.  No waiver of
any provision of this Agreement or any other Loan Document or consent to any
departure by the Loan Parties therefrom shall in any event be effective unless
the same shall be permitted by paragraph (b) below, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given.  No notice or
demand on the Loan Parties in any case shall entitle the Loan Parties to any
other or further notice or demand in similar or other circumstances.

 

(b)  Neither this Agreement or any of the other
Loan Documents nor any provision hereof or thereof may be waived, amended or
modified except (i) in the case of this Agreement, pursuant to an
agreement or agreements in writing entered into by SSCC and the Required
Lenders and (ii) in the case of any other Loan Document, pursuant to an
agreement or agreements entered into by the parties to such Loan Document, in
each case, except as provided in Section 2.23(d) with respect to
Incremental Commitments or as set forth in the final sentence of this paragraph
(b), with the consent of the Required Lenders; provided, however,
that no such agreement shall (i) decrease the principal amount of, or
extend the maturity of or any scheduled principal payment date or date for the
scheduled payment of any interest on any Loan or any date for reimbursement of
an LC Disbursement, or waive or excuse any such payment or any part thereof, or
decrease the rate of interest on any Loan or LC Disbursement, without the prior
written consent of each

 

139

 

Lender affected
thereby, (ii) increase the amount of or extend the termination date
of the Commitment of, or decrease or extend the date for payment of any Fee
owing to, any Lender without the prior written consent of such Lender,
(iii) amend or modify the pro rata requirements of Section 2.16
or the provisions of Section 11.03 concerning the assignment of
SSCC’s or any Borrower’s obligations hereunder, the provisions of this Section 11.08
or release a Guarantor from its guarantee under the applicable Guarantee
Agreement (except as expressly contemplated by any Loan Document) or all or
substantially all of the Collateral from the Liens created under the Security
Documents (except as expressly contemplated by any Loan Document), without the
prior written consent of each Lender, (iv) change the provisions of any
Loan Document in a manner that by its terms adversely affects the rights in
respect of payments due to Lenders holding Loans of one Class differently from
the rights of Lenders holding Loans of any other Class without the prior
written consent of  Lenders holding a majority in interest of the
outstanding Loans and unused Commitments of each adversely affected Class or
(v) reduce the percentage contained in the definition of the term “Required
Lenders” without the prior written consent of each Lender; provided, further,
however, that no such agreement shall amend, modify or otherwise affect
the rights or duties of any Agent, the Swingline Lender or any Facing Agent
hereunder or under any other Loan Document without the prior written consent of
such Agent, the Swingline Lender or such Facing Agent, as the case may be.  The Lenders hereby authorize the Collateral
Agent to enter into such amendments, restatements, supplements or other
modifications to the Security Documents as are deemed reasonably necessary by
the Collateral Agent to protect and preserve the Liens on the Collateral
created or purported to be created thereunder or to reflect or give effect to
any transaction permitted under this Agreement.

 

SECTION 11.09.  Release of Collateral and Guarantors.  Each Lender hereby directs the Collateral
Agent to release, or to cause the Trustee to release, the Liens held by it
under the Security Documents and the Guarantees made in the Loan Documents as
follows:

 

(a)  upon payment in full in cash of the Loans and
all the other Loan Documents Obligations (other than unasserted contingent and
indemnification obligations), termination of all Commitments (including
commitments of the Facing Agents to issue Letters of Credit) and reduction of
the LC Exposure to zero (or the making of other arrangements satisfactory to
the Senior Agents and each applicable Facing Agent), the Collateral Agent is
authorized to release, or cause the Trustee to release, all of the Liens
created, and all the Guarantees made, under the Loan Documents;

 

(b)  upon any sale or other disposition of
Collateral permitted hereunder, or consummation of any transaction permitted
hereunder as a result of which any Guarantor (other than SSCE or SSCC) ceases
to be a Subsidiary of SSCC, the Collateral Agent is authorized to release, or
to cause the Trustee to release, such Liens that relate solely to the
Collateral sold or otherwise disposed and the Guarantee made by such Guarantor
under the Loan Documents; and

 

140

 

(c)  upon consent by the Required Lenders, the
Collateral Agent is authorized to release, or to cause the Trustee to release,
such Liens on any part of the Collateral which release does not require the
consent of all of the Lenders as set forth in Section 11.08;

 

provided, however, that (i) the
Collateral Agent shall not be required to execute, or cause the Trustee to
execute, any such document on terms which, in its opinion, would expose it or
the Trustee to liability or create any obligation or entail any consequence
other than the release of such Liens without recourse or warranty, and
(ii) such release shall not in any manner discharge, affect or impair the
Obligations or any Liens upon (or obligations of SSCC or any of the
Subsidiaries in respect of) all interests retained by SSCC or any of the
Subsidiaries.

 

SECTION 11.10.  Interest Rate Limitation.  Notwithstanding anything herein to the
contrary, if at any time the applicable interest rate, together with all fees
and charges that are treated as interest under applicable law (collectively,
the “Charges”), as provided for herein or in any other document executed
in connection herewith, or otherwise contracted for, charged, received, taken
or reserved by any Lender, shall exceed the maximum lawful rate (the “Maximum
Rate”) that may be contracted for, charged, taken, received or reserved by
such Lender in accordance with applicable law, the rate of interest payable to
such Lender hereunder, together with all Charges payable to such Lender, shall
be limited to the Maximum Rate.

 

SECTION 11.11.  Entire Agreement.  This Agreement, the other Loan Documents and
any separate fee letter agreements with respect to fees payable to any Agent or
any Facing Agent constitute the entire contract between the parties relative to
the subject matter hereof.  Any previous
agreement among the parties with respect to the subject matter hereof is
superseded by this Agreement and the other Loan Documents.  Nothing in this Agreement or in the other
Loan Documents, expressed or implied, is intended to confer upon any Person
other than the parties hereto and thereto (and their respective successors and
assigns permitted hereby and each other Person that is an Indemnitee) any
rights, remedies, obligations or liabilities under or by reason of this
Agreement or the other Loan Documents.

 

SECTION 11.12.  Waiver of Jury Trial.  Each party hereto hereby waives, to the
fullest extent permitted by applicable law, any right it may have to a trial by
jury in respect of any legal proceeding directly or indirectly arising out of,
under or in connection with this Agreement or any of the other Loan Documents
or the transactions contemplated hereby. 
Each party hereto (a) certifies that no representative, agent or
attorney of any other party has represented, expressly or otherwise, that such
other party would not, in the event of litigation, seek to enforce the
foregoing waiver and (b) acknowledges that it and the other parties hereto
have been induced to enter into this Agreement and the other Loan Documents, as
applicable, by, among other things, the mutual waivers and certifications in
this Section 11.12.

 

SECTION 11.13.  Severability.  In the event any one or more of the
provisions contained in this Agreement or in any other Loan Document should be
held

 

141

 

invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected or impaired thereby. 
The parties shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions, the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

 

SECTION 11.14.  Headings.  Article and Section headings and
the Table of Contents used herein are for convenience of reference only, are
not part of this Agreement and are not to affect the construction of, or to be
taken into consideration in interpreting, this Agreement.

 

SECTION 11.15.  Confidentiality.  (a)  Each
Lender agrees not to disclose to any Person the Information (as defined below)
in accordance with such Lender’s customary procedures for non-disclosure of
confidential information of third parties of this nature and in accordance with
safe and sound lending practices without the prior written consent of SSCE,
which consent shall not be unreasonably withheld, except that any Lender shall
be permitted to disclose Information (i) to its and its Affiliates’
officers, directors, employees, agents and representatives (including its
auditors and counsel) or to  any pledgee
referred to in Section 11.04(h)(ii) or any direct or indirect
contractual counterparty in swap agreements or such contractual counterparty’s
professional advisor (so long as such pledgee, contractual counterparty or
professional advisor to such contractual counterparty agrees in writing to be
bound by the provisions of this Section 11.15); (ii) to the
extent (A) required by applicable laws and regulations or by any subpoena
or similar legal process or (B) requested or required by any regulatory
authority or The National Association of Insurance Commissioners or any similar
organization, or any nationally recognized rating agency that requires access
to information about a Lender’s investment portfolio; (iii) to the extent
such Information (A) becomes publicly available other than as a result of
a breach of this Agreement, (B) becomes available to such Lender on a
non-confidential basis from a source other than a Loan Party or its Affiliates
or (C) was available to such Lender on a non-confidential basis prior to
its disclosure to such Lender by a Loan Party or its Affiliates; (iv) to
any actual or prospective assignee of, or prospective purchaser of a participation
in, the rights of such Lender hereunder, in each case subject to paragraph (c)
below; or (v) in connection with any suit, action or proceeding relating
to the enforcement of rights hereunder or under any other Loan Document or in
connection with the transactions contemplated hereby.  As used in this Section 11.15, as
to any Lender, the term “Information” shall mean the Confidential
Information Memorandum and any other materials, documents and information that
either Borrower or any of its Affiliates may have furnished or may hereafter
furnish to any Lender in connection with this Agreement.

 

(b)  Each Lender agrees that it will use the
Information only for purposes related to the transactions contemplated hereby
and by the other Loan Documents, provided that (i) if the
conditions referred to in any of subclauses (A) through (C)
of clause (iii) of paragraph (a) above are met,
such Lender may otherwise use the Information and (ii) if such Lender or
any of its

 

142

 

Affiliates is otherwise a
creditor of a Loan Party, such Lender or any such Affiliate may use the
Information in connection with its other credits to such Loan Party.

 

(c)  Each Lender agrees that it will not disclose
any of the Information to any actual or prospective assignee of such Lender or
participant in any rights of such Lender under this Agreement unless such
actual or prospective assignee or participant first executes and delivers to
such Lender or the Borrowers a confidentiality letter containing substantially
the undertakings set forth in this Section 11.15.

 

SECTION 11.16.  Jurisdiction; Consent to Service of
Process.  (a)  Each of SSCC and the Borrowers hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the
United States of America sitting in New York City, and any appellate court from
any thereof, in any action or proceeding arising out of or relating to this
Agreement or the other Loan Documents, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law, in
such Federal court.  Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. 
Nothing in this Agreement shall affect any right that any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or
the other Loan Documents against any Loan Party or its properties in the courts
of any jurisdiction.

 

(b)  Each of SSCC and the Borrowers hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection that it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or the other Loan Documents in any New York State or Federal
court.  Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

 

(c)  Each party to this Agreement irrevocably
consents to service of process in the manner provided for notices in Section 11.01.  Nothing in this Agreement will affect the
right of any party to this Agreement to serve process in any other manner
permitted by law.

 

SECTION 11.17.  Florida Real Property.  The parties hereto hereby acknowledge that
the Revolving Loans, the Swingline Loans and Revolving (Canadian) Loans are
secured by real and personal property located both inside and outside the State
of Florida and hereby agree that for purposes of calculating intangible taxes
due under Section 199.133, Florida Statutes, the first amounts advanced as
Revolving Loans, Swingline Loans and Revolving (Canadian) Loans shall be deemed
to be the portion allocable to the Collateral consisting of real property
located in the State of Florida, and such portion allocable to such Collateral
shall also be deemed to be the last to be repaid

 

143

 

under the
terms hereof.  Nothing herein shall limit
any secured party’s right to recover or realize from the Collateral located in
the State of Florida amounts in excess of that allocated to the Revolving
Loans, Swingline Loans or Revolving (Canadian) Loans or to apply amounts so
recovered or realized against the Obligations in such order as the Agent named
in the applicable security filing shall determine in its sole discretion.

 

SECTION 11.18.  Judgment Currency.  (a)  Except
as otherwise provided in Section 10.03, the Borrowers’ obligations
hereunder and the Borrowers’ and the other Loan Parties’ obligations under the
other Loan Documents to make payments in U.S. Dollars or in Canadian Dollars
(the “Obligation Currency”) shall not be discharged or satisfied by any
tender or recovery pursuant to any judgment expressed in or converted into any
currency other than the Obligation Currency, except to the extent that such
tender or recovery results in the effective receipt by the applicable Agent,
the applicable Facing Agent or the applicable Lender of the full amount of the
Obligation Currency expressed to be payable to the applicable Agent, the
applicable Facing Agent or the applicable Lender under this Agreement or the other
Loan Documents.  If, for the purpose of
obtaining or enforcing judgment against either Borrower or any other Loan Party
in any court or in any jurisdiction, it becomes necessary to convert into or
from any currency other than the Obligation Currency (such other currency being
hereinafter referred to as the “Judgment Currency”) an amount due in the
Obligation Currency, the conversion shall be made, at the Exchange Rate, in the
case of Canadian Dollars or U.S. Dollars, and, in the case of other currencies,
the rate of exchange (as quoted by the Administrative Agent or if the
Administrative Agent does not quote a rate of exchange on such currency, by a
known dealer in such currency designated by the Administrative Agent)
determined, in each case, as of the date immediately preceding the day on which
the judgment is given (such Business Day being hereinafter referred to as the “Judgment
Currency Conversion Date”).

 

(b)  If there is a change in the rate of exchange
prevailing between the Judgment Currency Conversion Date and the date of actual
payment of the amount due, the Borrowers covenant and agree to pay, or cause to
be paid, such additional amounts, if any (but in any event not a lesser
amount), as may be necessary to ensure that the amount paid in the Judgment
Currency, when converted at the rate of exchange prevailing on the date of
payment, will produce the amount of the Obligation Currency which could have
been purchased with the amount of Judgment Currency stipulated in the judgment
or judicial award at the rate of exchange prevailing on the Judgment Currency
Conversion Date.

 

(c)  For purposes of determining the amount of any
payment in the Obligation Currency under this Section 11.18, the
rate of exchange used shall take into account any premium and costs payable in
connection with the purchase of the Obligation Currency.

 

SECTION 11.19.  Certain Relationships.  Nothing contained in this Agreement and no
action taken by any Agent, any Facing Agent or any Lender pursuant hereto shall
be deemed to constitute the Agents, the Facing Agents or the Lenders a
partnership, an association, a joint venture or other entity.  None of the Agents, the

 

144

 

Facing Agents
or the Lenders has any fiduciary relationship with or any fiduciary duty to
SSCC or either Borrower arising out of or in connection with this Agreement or
any of the other Loan Documents, and the relationship between the Agents, the
Facing Agents and the Lenders, on the one hand, and the Borrowers, on the other
hand, in connection herewith or therewith is solely that of debtor and
creditor.

 

SECTION 11.20.  USA Patriot Act.  Each Lender subject to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”) hereby notifies the Borrowers that pursuant to the
Act it is required to obtain, verify and record information that identifies the
Borrowers, which information includes the name and address of each Borrower and
other information that will allow such Lender to identify each Borrower in
accordance with the Act.

 

145

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

 

	
   

  	
  SMURFIT-STONE CONTAINER CORPORATION,

  
	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Jeffrey
  S. Beyersdorfer

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Jeffrey
  S. Beyersdorfer

  
	
   

  	
   

  	
   

  	
  Title:Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SMURFIT-STONE CONTAINER ENTERPRISES, INC.,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Jeffrey
  S. Beyersdorfer

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Jeffrey
  S. Beyersdorfer

  
	
   

  	
   

  	
   

  	
  Title:Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SMURFIT-STONE CONTAINER CANADA INC.,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Jeffrey
  S. Beyersdorfer

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Jeffrey
  S. Beyersdorfer

  
	
   

  	
   

  	
   

  	
  Title:Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS, individually and as Senior
  Agent, Administrative Agent, Collateral Agent, Swingline Lender and Revolving
  Facility Facing Agent,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Susan
  LeFevre

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Susan
  LeFevre

  
	
   

  	
   

  	
   

  	
  Title:Director

  
						

 

146

 

	
   

  	
  DEUTSCHE BANK AG, individually and as Canadian Administrative Agent
  and Revolving (Canadian) Facility Facing Agent,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Karyn
  Curran

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Karyn
  Curran

  
	
   

  	
   

  	
   

  	
  Title:Credit
  Product Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Robert
  A. Johnson

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Robert
  A. Johnson

  
	
   

  	
   

  	
   

  	
  Title:Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, individually and as Senior Agent, Deposit
  Account Agent and Deposit Funded Facility Facing Agent,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Marian
  N. Schulman

  	
   

  
	
   

  	
   

  	
   

  	
  Name:Marian
  N. Schulman

  
	
   

  	
   

  	
   

  	
  Title:Managing
  Director

  

 

147

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

 

	
   

  	
  JPMORGAN CHASE BANK, TORONTO BRANCH

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Christine Chan

  
	
   

  	
  Name: 

  	
  Christine Chan

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution: 

  	
  Bank of America, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael J. Balok

  
	
   

  	
  Name:

  	
  Michael J. Balok

  
	
   

  	
  Title:

  	
  Managing Director

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Bank of America, N.A.,

  
	
   

  	
   

  	
  (Canada Branch)

  
	
   

  	
   

  
	
   

  	
   

  	
    By:

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/Medina Sales de Andrade

  
	
   

  	
  Name:

  	
  Medina Sales de Andrade

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
						

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Credit Industriel et
  Commercial

  
	
   

  	
   

  
	
   

  	
   

  	
    By:

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Anthony Rock     /s/ Brian O’Leary

  
	
   

  	
  Name:

  	
  Anthony Rock  Brian O’Leary

  
	
   

  	
  Title:

  	
  Vice President  Vice President

  
						

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Farm Credit Bank of Texas

  
	
   

  	
   

  
	
   

  	
   

  	
     By:

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Luis M. H. Requejo

  
	
   

  	
  Name:

  	
  Luis M. H. Requejo

  
	
   

  	
  Title:

  	
  Vice President

  
						

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Farm Credit West, PCA

  
	
   

  	
   

  
	
   

  	
   

  	
    By:

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Ben Madonna

  
	
   

  	
  Name:

  	
  Ben Madonna

  
	
   

  	
  Title:

  	
  Asst. Vice President

  
						

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  General Electric Capital Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P. Schwinn

  
	
   

  	
  Name:

  	
  Brian Schwinn

  
	
   

  	
  Title:

  	
  Duly Authorized Signatory

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  GE Canada Finance Holding
  Company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen B. Smith

  
	
   

  	
  Name:

  	
  Stephen B. Smith

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
  GE Canada Finance Holding
  Company

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Goldman Sachs Credit Partners, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Archer

  
	
   

  	
  Name:

  	
  William Archer

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Morgan Stanley Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel Twenge

  
	
   

  	
  Name:

  	
  Daniel Twenge

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
  Morgan Stanley Bank

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Morgan Stanley Senior
  Funding (Nova Scotia)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jaap Tonckens

  
	
   

  	
  Name:

  	
  Jaap Tonckens

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Natexis Banques Populaires

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jordan H. Levy

  
	
   

  	
  Name:

  	
  Jordan H. Levy

  
	
   

  	
  Title:

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Yosmery D. Ortega

  
	
   

  	
  Name:

  	
  Yosmery D. Ortega

  
	
   

  	
  Title:

  	
  Associate

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  National City Bank

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Renee M. Bonnell

  
	
   

  	
  Name:

  	
  Renee M. Bonnell

  
	
   

  	
  Title:

  	
  Account Officer

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  National City Bank, Canada Branch

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Caroline Stade

  
	
   

  	
  Name:

  	
  Caroline Stade

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  North Folk Business Capital
  Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steve Goetschius

  
	
   

  	
  Name:

  	
  Steve Goetschius

  
	
   

  	
  Title:

  	
  Senior Vice President

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Societe Generale

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marc Pouget-Abadie

  
	
   

  	
  Name:

  	
  Marc Pouget-Abadie

  
	
   

  	
  Title:

  	
  Director

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Societe Generale (Canada)

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cynthia Hansen

  
	
   

  	
  Name:

  	
  Cynthia Hansen

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Francois Laliberte

  
	
   

  	
  Name:

  	
  Francois Laliberte

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
  Deputy Head Corporate
  Credit Group

  
					

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  The Bank of New York

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Mark Wrigley

  
	
   

  	
  Name:

  	
  Mark Wrigley

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  The Bank of Nova Scotia

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ V. Gibson

  
	
   

  	
  Name:

  	
  V. Gibson

  
	
   

  	
  Title:

  	
  Assistant Agent

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  UBS Loan Finance LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilfred V. Saint

  
	
   

  	
  Name:

  	
  Wilfred V. Saint

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
  Banking Products Services,
  US

  
	
   

  	
   

  	
   

  	
   

  
					

 

	
   

  	
  By:

  	
  /s/ Juan Zuniga

  
	
   

  	
  Name:

  	
  Juan Zuniga

  
	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  	
  Banking Products Services,
  US

  
				

 

	
   

  	
  Name of Institution:

  	
  UBS AG Canada Branch

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Wilfred V. Saint

  
	
   

  	
  Name:

  	
  Wilfred V. Saint

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
  Banking Products Services,
  US

  
					

 

	
   

  	
  By:

  	
  /s/ Juan Zuniga

  
	
   

  	
  Name:

  	
  Juan Zuniga

  
	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  	
  Banking Products Services,
  US

  
				

 

 

Signature Page to

The Credit Agreement

Dated as of November 1, 2004, of

Smurfit-Stone Container Enterprises, Inc. and

Smurfit-Stone Container Canada, Inc.

 

	
   

  	
  Name of Institution:

  	
  Wachovia Bank, National
  Association

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jiong Liu

  
	
   

  	
  Name:

  	
  Jiong Liu

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

EXHIBIT A

 

[FORM OF]

 

Deutsche Bank      

 

Chicago Office

ADMINISTRATIVE
QUESTIONNAIRE

 

SMURFIT-STONE CONTAINER CORPORATION

SMURFIT-STONE CONTAINER ENTERPRISES, INC.

SMURFIT-STONE CONTAINER CANADA INC.

CREDIT AGREEMENT DATED NOVEMBER 1, 2004

 

Please
type or print clearly all requested information and fax as soon as possible to:
Linda Stahulak (312) 993-8114. Any questions, please call (312) 993-8109.

 

	
  DEUTSCHE BANK TRUST CO. AMERICAS

  	
   

  	
  YOUR INSTITUTION INFORMATION

  
	
   

  	
   

  	
   

  
	
  Full
  Legal Name of Bank:  

  	
   

  	
   

  
	
  (for
  credit agreement purposes)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name
  and Title of Person:

  	
   

  	
   

  
	
  (executing
  the credit agreement)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address
  for Execution Copies:  

  	
   

  	
   

  
	
  (provide
  street address for hand deliveries)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CREDIT CONTACT

  	
   

  	
  CREDIT CONTACT

  
	
   

  	
   

  	
   

  
	
  NAME:

  	
  Albert
  Chung

  	
   

  	
   

  
	
  TITLE:

  	
  Director

  	
   

  	
   

  
	
  ADDRESS:

  	
  233
  South Wacker Drive

  	
   

  	
   

  
	
   

  	
  Suite 8400

  	
   

  	
   

  
	
   

  	
  Chicago,
  IL 60606

  	
   

  	
   

  
	
  PHONE:

  	
  312-993-8017

  	
   

  	
   

  
	
  FAX:

  	
  312-993-8182

  	
   

  	
   

  
	
  E-MAIL
  ADDRESS:

  	
  albert.chung@db.com

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  OPERATIONS CONTACT

  	
   

  	
  OPERATIONS CONTACT

  
	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
  Helaine
  Griffin-Williams

  	
   

  	
   

  
	
  TITLE:

  	
  Deal
  Administrator

  	
   

  	
   

  
	
  ADDRESS:

  	
  90
  Hudson Street

  	
   

  	
   

  
	
   

  	
  1st
  Floor

  	
   

  	
   

  
	
   

  	
  Jersey City, NJ 07302

  	
   

  	
   

  
	
  PHONE:

  	
  201-593-2172

  	
   

  	
   

  
	
  FAX:

  	
  201-593-2308

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  MOVEMENT OF FUNDS: (ADVANCES)

  	
   

  	
  MOVEMENT OF FUNDS 

  (PRINCIPAL PAYMENTS, INTEREST, FEES)

  
	
   

  	
   

  	
   

  	
   

  
	
  NAME:

  	
  Deutsche
  Bank Trust Co. Americas

  	
   

  	
   

  
	
  CITY,
  STATE:

  	
  New
  York, New York

  	
   

  	
   

  
	
  ABA
  NO:

  	
  021-001-033

  	
   

  	
   

  
	
  ACCT.
  NAME:

  	
  Comm.
  Loan Div.

  	
   

  	
   

  
	
  ACCT.
  NO.:

  	
  99-401-268

  	
   

  	
   

  
	
  ATTN:

  	
  Helaine Griffin-Williams

  	
   

  	
   

  
	
  REFERENCE

  	
  Smurfit-Stone Container Corp.

  	
   

  	
   

  

 

FOR
WITHHOLDING TAX PURPOSES PLEASE IDENTIFY YOUR BANK/COMPANY’S STATUS:

 

 

	
  U.S. CORPORATION

  	
   

  	
   

  	
   

  	
  NON-U.S. (FOREIGN) CORPORATION

  	
   

  
	
   

  
	
  Please advise Helaine Griffin-Williams if there are
  any changes to this form after the Closing Date.

  
	
   

  
	
  Prepared by:

  	
   

  	
   

  	
  Telephone no.:

  	
   

  
									

 

 

EXHIBIT B

 

[Form of]

 

ASSIGNMENT AND ACCEPTANCE

 

Reference is made to the Credit Agreement, dated as of November 1, 2004 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit  Agreement”), among Smurfit-Stone
Container Corporation, a Delaware corporation, Smurfit-Stone Container
Enterprises, Inc., a Delaware corporation, Smurfit-Stone Container Canada
Inc., a corporation continued under the Companies Act (Nova Scotia), the
lenders party thereto, JPMorgan Chase Bank, Deutsche Bank Trust Company
Americas and Deutsche Bank AG.  Capitalized
terms used herein but not defined herein shall have the meanings given to them
in the Credit Agreement.

 

This Assignment and Acceptance (this “Assignment”)
is dated as of the effective date inserted by the Administrative Agent as set
forth below (the “Effective Date”) and is entered into by and between
the assignor identified in item 1 below (the “Assignor”) and [the]
[each] assignee identified in [item 2] [item 3] below ([the] [each
an] “Assignee”)[, it being understood that the rights and obligations of
each such Assignee shall be several and not joint].  The Standard Terms and Conditions set forth
in Annex I hereto (the “Standard Terms and Conditions”) are hereby
agreed to and incorporated herein by reference and made a part of this
Assignment as if set forth herein in full.

 

The Assignor hereby irrevocably sells and assigns,
without recourse, to [the] [each] Assignee, and [the] [each] Assignee hereby
irrevocably purchases and assumes without recourse from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit
Agreement, as of the Effective Date (but not prior to the recordation of the information contained herein
in the Register pursuant to Section 11.04(e) of the Credit Agreement),
the interests set forth below (the “Assigned Interest”) in the Assignor’s
rights and obligations under the Credit Agreement and the other Loan Documents, including, without limitation, the amounts
and percentages set forth below of (i) the Commitments of the Assignor on
the Effective Date, (ii) the Loans owing to the Assignor which are
outstanding on the Effective Date and (iii) participations in Letters of
Credit and Swingline Loans that are outstanding on the Effective Date.  Upon acceptance of this Assignment by the
Administrative Agent and recording of the information contained herein in the
Register, from and after the
Effective Date (i) [the] [each] Assignee shall be a party to and to the
extent of the interests assigned by this Assignment, shall have the rights and
obligations of a Lender thereunder and under the Loan Documents, and (ii) the
Assignor shall, to the extent of the interests assigned by this Assignment, be
released from its obligations under the Credit Agreement.

 

This Assignment is being
delivered to the Administrative Agent together with (i) if [the] [an]
Assignee is organized under the laws of a jurisdiction outside the United
States, the forms specified in Section 2.19(f) of the Credit
Agreement, duly completed and executed by [the] [such] Assignee, (ii) if
[the] [an] Assignee is not already a Lender under the Credit Agreement, an
Administrative Questionnaire in the form of Exhibit A to the Credit
Agreement, and (iii) a processing and recordation fee of $3,500.

 

 

	
  1.

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  [2.

  	
  Assignee:

  	
   

  	
  ](1)

  
	
   

  	
   

  	
   

  	
   

  
	
  [3.

  	
  Assigned Interest:(2)

  	
   

  

 

	
   

  	
   

  	
  Facility/Commitment

  	
   

  	
  Aggregate Amount of 

  Commitment/Loans for all 

  Lenders

  	
   

  	
  Amount of 

  Commitment/Loans/Deposit 

  Assigned

  	
   

  
	
  [Name of Assignee]

  	
   

  	
   

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [Name of Assignee]

  	
   

  	
   

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  

 

(1)                                  Item
2 should list the Assignee if this Form of Assignment of Acceptance is
being used for a single Assignee.  In the
case of an assignment to funds managed by the same or related investment
managers, the Assignees should be listed in bracketed item 3.

(2)                                  Insert
this chart if this Form of Assignment and Acceptance is being used for
assignment to funds managed by the same or related investment managers.

 

2

 

[4.                                   Assigned
Interest:(3)

 

	
  Facility/Commitment

  	
   

  	
  Aggregate Amount of

  Commitment/Loans for all Lenders

  	
   

  	
  Amount of Commitment/Loans/

  Deposit Assigned

  	
   

  
	
  Revolving Credit Commitment

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Revolving (Canadian) Credit Commitment

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tranche B Loans

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tranche C Loans

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Deposit Funded Commitment

  	
   

  	
  $

  	
    

  	
   

  	
  $

  	
    

  	
   

  

 

(3)           Insert
this chart if this Form of Assignment and Acceptance is being used by a
Lender for an assignment to a single Assignee.

 

3

 

	
  Effective Date

  	
                              ,                 ,200        .

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Payment Instructions:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  
	
   

  	
   

  	
  Reference:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Relationship Contact:

  	
   

  	
  ](4)

  	
   

  
						

 

The terms set forth in
this Assignment are hereby agreed to

 

 

	
  [NAME OF ASSIGNOR], as Assignor,

  	
   

  	
  [NAME OF ASSIGNEE](5), as Assignee,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
  Name:

  
	
   

  	
  Title:

  	
   

  	
   

  	
  Title:

  

 

(4)           This
information should only be inserted if this Form of Assignment and
Assumption Agreement is being used by a Lender for an assignment to a single
Assignee.

 (5)          Add
additional signature blocks, as needed, if this Form of Assignment and
Acceptance is being used by funds managed by the same or related investment
managers.

 

4

 

	
  Acknowledged and Agreed:

  	
   

  
	
   

  	
   

  
	
  [ADMINISTRATIVE AGENT](6)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  [SMURFIT-STONE CONTAINER ENTERPRISES, INC.,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:                                                                          ](7)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [SWINGLINE LENDER],

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:                                                                          ](8)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  [[REVOLVING [(CANADIAN)] FACILITY FACING AGENT],

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:                                                                          ](10)

  	
   

  
				

 

(6)           Insert
to the extent required pursuant to Section 11.04(b) of the Credit
Agreement.

(7)           Insert
to the extent required pursuant to Section 11.04(b) of the Credit
Agreement.

(8)           Insert signature blocks
for the Swingline Lender and the Revolving Facility Facing Agent in the case of
any assignment of a Revolving Credit Commitment, or a signature block for the
Revolving (Canadian) Facility Facing Agent in the case of any assignment of a
Revolving (Canadian) Credit Commitment.

 

5

 

	
  [ DEPOSIT ACCOUNT
  AGENT](9),

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
    Title:                                                                     ](10)

  

 

(9)           Insert a signature
block for the Deposit Account Agent, in the case of any assignment of a Deposit
Funded Commitment.

 

6

 

Annex I

 

STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT AND
ACCEPTANCE

 

1.             Representations
and Warranties.

 

1.1.          Assignor.  The Assignor (a) represents and warrants
that it is the legal and beneficial owner of the Assigned Interest thereby free
and clear of any adverse claim; and (b) except as set forth in clause (a) above,
makes no representation or warranty and assumes no responsibility with respect
to any statements, warranties or representations made in or in connection with
the Credit Agreement, or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Agreement, any other Loan
Document or any other instrument or document furnished pursuant to the Credit
Agreement, or the financial condition of the Loan Parties or the performance or
observance by the Loan Parties of any of their obligations under the Credit
Agreement or under any other Loan Document or any other instrument or document
furnished pursuant to the Credit Agreement.

 

1.2.          Assignee.  [The] [Each] Assignee (a) represents and
warrants that it is legally authorized to enter into this Assignment; (b) confirms
that it has received a copy of the Credit Agreement, together with copies of
any amendments or consents entered into prior to the date of this Assignment
and copies of the most recent financial statements delivered pursuant to Section 6.04
of the Credit Agreement and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment; (c) will independently and without reliance upon any
Agent, the Assignor or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement; (d) appoints
and authorizes each of the Agents to take such action as agent on its behalf
and to exercise such powers under the Credit Agreement as are delegated to such
Agent by the terms thereof, together with such powers as are reasonably
incidental thereto; and (e) agrees that it will perform in accordance with
their terms all the obligations that by the terms of the Credit Agreement are
required to be performed by it as a Lender.

 

2.             Payment.  From and after the Effective Date, the
Administrative Agent shall make all payment in respect to the Assigned Interest
(including payments of principal, interest, fees and other amounts) to the
Assignor for amounts which have accrued to but excluding the Effective Date and
to [the] [each] Assignee for amounts which have accrued from and after the
Effective Date.

 

3.             General
Provisions.  This Assignment shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns.  This
Assignment may be executed in any number of counterparts, which together shall
constitute one instrument.  Delivery of
an executed counterpart of a signature page of this Assignment by telecopy
shall be effective as delivery of a manually executed counterpart of the
Assignment.  THIS ASSIGNMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF NEW YORK.

 

 

Execution

 

SSC CANADA SUBSIDIARY
GUARANTEE AGREEMENT

 

This SSC CANADA SUBSIDIARY GUARANTEE AGREEMENT (as
amended, restated, supplemented or otherwise modified from time to time, this “Guarantee”), dated as of November 1, 2004, is
made by 3083527 Nova Scotia Company, a corporation incorporated under the laws
of the Province of Nova Scotia (the “Guarantor”),
in favour of DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking
corporation, for the benefit of each of the Beneficiaries (as defined below).
Unless otherwise defined herein, all capitalized terms used as defined terms
herein shall have the meanings ascribed to them in the Credit Agreement
(defined below).

 

RECITALS:

 

A.                                   Smurfit-Stone
Container Corporation, a Delaware corporation, Smurfit-Stone Container
Enterprises, Inc., a Delaware Corporation, Smurfit-Stone Container Canada
Inc., a corporation continued under the Companies Act
(Nova Scotia), (“SSC Canada” or “Debtor”), the Lenders, JPMorgan Chase Bank, a New York
banking corporation, as Senior Agent, Deposit Account Agent and Deposit Funded
Facility Facing Agent, Deutsche Bank Trust Company Americas, a New York banking
corporation, as Senior Agent, Administrative Agent, Collateral Agent, Swingline
Lender and Revolving Facility Facing Agent and Deutsche Bank AG, an authorized
foreign bank permitted to carry on business in Canada and listed in Schedule
III of the Bank Act (Canada), as Canadian Administrative Agent and as Revolving
(Canadian) Facility Facing Agent, have entered into the Credit Agreement dated
as of November 1, 2004, and as from time to time amended, supplemented,
restated, or otherwise modified, the “Credit Agreement”),
pursuant to which the Lenders have agreed to make term and/or revolving loans
and the Revolving Facility Facing Agent and the Revolving (Canadian) Facility
Facing Agent have agreed to issue letters of credit to Smurfit-Stone Container
Enterprises, Inc. and the Debtor as set forth therein.

 

B.                                     The
Guarantor is a Subsidiary of SSC Canada.

 

C.                                     Pursuant
to Section 6.09 of the Credit Agreement, the Guarantor is required to
guarantee the Debtor’s obligations under the Credit Agreement and the other
Canadian Loan Documents, and the Guarantor is entering into this Guarantee to
satisfy such requirement.

 

D.                                    The
Guarantor will derive substantial direct and indirect benefits and advantages
from the continued financial accommodations to the Debtor under the Credit
Agreement, and it will be to the Guarantor’s direct interest and economic
benefit to guarantee the obligations of the Debtor under the Credit Agreement
in order to allow the Debtor to continue to procure said financial
accommodations from the Beneficiaries. The Guarantor hereby acknowledges the
value of such benefits.

 

NOW THEREFORE, in consideration
of the premises and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Guarantor hereby agrees as
follows:

 

3083527 Nova Scotia Company
Guarantee

 

 

ARTICLE
1

DEFINITIONS

 

1.1                               Definitions.

 

As used in this Guarantee, and unless the context requires a different
meaning, the following terms have the meanings indicated below. Capitalized
terms used but not defined herein have the meanings assigned in the Credit
Agreement.

 

(a)                                  “Administrative
Agent” has
the meaning assigned thereto in the Recitals to this Guarantee.

 

(b)                                 “Beneficiaries” means, at any time the
determination thereof is to be made, the Tranche C Lenders, the Revolving
(Canadian) Lenders, the Canadian Administrative Agent, each Incremental Lender
providing any Incremental Loans to the Debtor, the Collateral Agent, the
Revolving (Canadian) Facility Facing Agent, each counterparty to any Swap
Agreement with a Loan Party the obligations under which constitute Canadian
Obligations, each Lender or affiliate of a Lender which is party to any Cash
Management Agreement (as hereinafter defined), the obligations under which
constitute Canadian Obligations, the Beneficiaries of each indemnification
obligation undertaken by the Guarantor, or a Canadian Subsidiary or a subsidiary
of a Canadian Subsidiary under any Canadian Loan Document and any other holder
of any Canadian Obligation.

 

(c)                                  “Canadian
Administrative Agent”
has the meaning assigned thereto in the Recitals to this Guarantee.

 

(d)                                 “Canadian
Loan Document”
means a Loan Document (as defined in the Credit Agreement) to which the
Canadian Loan Parties are party.

 

(e)                                  “Canadian
Loan Parties”
means the Debtor, and the Canadian Subsidiaries (as defined in the Credit
Agreement) that are Guarantors (as defined in the Credit Agreement).

 

(f)                                    “Collateral
Agent” has
the meaning assigned thereto in the recitals to this Guarantee.

 

(g)                                 “Credit
Agreement”
has the meaning assigned thereto in the Recitals to this Guarantee.

 

(h)                                 “Debtor” means SSC Canada together with
the successors (by amalgamation, liquidation, winding-up or otherwise) and
assigns thereof.

 

(i)                                     “Guarantor” has the meaning assigned
thereto in the introduction to this Guarantee.

 

2

 

(j)                                     “Guarantee” has the meaning assigned
thereto in the introduction of this Guarantee.

 

(k)                                  “Obligations” means (i) all “Canadian
Obligations” (as defined in the Credit Agreement), (ii) the prompt and
complete performance when due of the covenants and obligations to be performed
by the Canadian Loan Parties under the Canadian Loan Documents and the Swap
Agreements and the agreements between any of the Canadian Loan Parties and any
Lender or any Affiliate of a Lender in respect of cash management services
(collectively, “Cash Management Agreements”)
whether such Cash Management Agreement is now in existence or hereafter
arising.

 

(l)                                     “Taxes” has the meaning assigned
thereto in Section 8.8 of this Guarantee.

 

ARTICLE
2

GUARANTEE

 

2.1                               Guarantee
of Obligations.

 

(a)                                  The Guarantor hereby
unconditionally and irrevocably guarantees to each of the Beneficiaries, the
due, prompt and complete payment by the Debtor of, and the due, prompt and
faithful performance of and compliance with, all of the Obligations, when and
as the same shall become due and payable, whether upon stated maturity, by
acceleration or otherwise; provided, however, that the
obligations of the Guarantor under this Article 2 shall be limited to the
extent set forth in Article 3 hereof. If the Debtor shall fail duly and
punctually to make any such payment in full, the Guarantor hereby agrees duly
and punctually to make such payment, subject to the limitations set forth in Article 3
hereof, when and as the same shall become due and payable, whether upon stated
maturity, by acceleration or otherwise.

 

(b)                                 The obligations of the Guarantor
hereunder shall be continuing, absolute and unconditional under any and all
circumstances and not subject to any reduction, limitation, impairment,
termination, defence (other than indefeasible payment in full), set-off,
counterclaim, cross-claim or recoupment whatsoever (all of which are hereby
expressly, absolutely, unconditionally and irrevocably waived by it to the
extent permitted by law), whether by reason of any claim of any waiver,
release, surrender, alteration or compromise, or by reason of any liability of
any Beneficiary at any time owing to the Guarantor, the Debtor, or any
Subsidiary of the Debtor, or the obligations of any other Person relating to
this Guarantee or the obligations of the Guarantor hereunder. Without limiting
the foregoing, the Guarantor’s obligations hereunder shall not be reduced,
terminated or otherwise affected by: (i) any insolvency, bankruptcy,
reorganization or dissolution, by any proceeding in respect of any thereof, of
the Debtor; (ii) the genuineness, validity, regularity or enforceability
of any agreement, instrument or document evidencing or securing the Obligations
or any other agreement, instrument or document or the extension or renewal
thereof, in whole or in part, with or without notice to or 

 

3

 

assent from the Debtor or the Guarantor; (iii) any rescission,
compromise, alteration, amendment, modification, extension, renewal, release,
change, waiver, consent or other action in respect of any of the terms,
provisions, covenants or conditions contained in any agreement, instrument or
document evidencing or securing the Obligations or in any other agreement,
instrument or document; (iv) the absence of notice or the absence of or
any delay in any action to enforce any obligation or to exercise any right or
remedy against the Debtor or the Guarantor, whether under any agreement,
instrument or document evidencing or securing the Obligations or under any
other agreement, instrument or document, or any indulgence, extension or waiver
granted to or compromise with the Debtor or the Guarantor, or any action or
proceeding taken or not taken with respect to or by or on behalf of the Debtor
or the Guarantor, or the holder of any agreement, instrument or document
evidencing or securing the Obligations; (v) any default, failure or delay
in performance of any obligation, covenant, duty, representation, warranty or
agreement contained in any agreement, instrument or document evidencing or securing
the Obligations or in any other agreement, instrument or document, or arising
pursuant to law; (vi) any act or thing or omission to do or delay in doing
any act or thing which might in any manner result in any lack of proper
authorization or any invalid execution of any agreement, instrument or document
evidencing or securing the Obligations or under any other agreement, instrument
or document, (vii) any assumption by any Person of any obligation under
any agreement, instrument or document evidencing or securing the Obligations or
under any other agreement, instrument or document; (viii) any event of
force majeure; (ix) any release or substitution of any Collateral for the
payment of the Obligations or obligations under any other agreement, instrument
or document, in whole or in part, with or without notice to or assent from the
Debtor or the Guarantor; (x) any other circumstances which might
constitute a legal or equitable discharge or defence of a surety or guarantor;
(xi) whether a security interest in any Collateral shall have been perfected or
shall continue to be perfected, or whether any Collateral shall be impaired in
any manner, or whether any steps shall have been taken to enforce rights
against the Debtor or the Guarantor or any Collateral; or (xii) any
consolidation, amalgamation, merger, or other change in the capital structure
of the Debtor or the Guarantor.

 

The Guarantor hereby: (i) waives, to the extent
permitted by law, diligence, presentment, demand of payment, filing of claims
with a court in the event of the merger, amalgamation or bankruptcy of the
Debtor, any right to require a proceeding first against the Debtor or to
realize on any Collateral, protest, notice and all demands whatsoever, with
respect to the Obligations; (ii) agrees that its obligations hereunder
constitute guarantees of payment and not of collection and are not in any way
conditional or contingent upon any attempt to collect from or enforce against
the Debtor or upon any other condition or contingency, (iii) acknowledges
that this Guarantee and the Guarantor’s obligations under this Guarantee are
and shall at all times continue to be absolute and unconditional in all
respects, and shall at all times be valid and enforceable irrespective of any
other agreements or circumstances of any nature whatsoever which might
otherwise constitute a defence to this Guarantee and the obligations of the
Guarantor under this Guarantee or the obligations of any other Person
(including, without 

 

4

 

limitation, the
Debtor) relating to this Guarantee or the obligations of the Guarantor
hereunder or otherwise with respect to the Loans and other financial
accommodations made to the Debtor; (iv) acknowledges that no oral or other
agreements, understandings, representations or warranties exist with respect to
this Guarantee or with respect to the obligations of the Guarantor hereunder,
except as specifically set forth in this Guarantee; (v) acknowledges that
any agreement, instrument or document evidencing or securing the Obligations
may be transferred, but only in accordance with the terms of the Credit
Agreement, and that the benefit of its obligations hereunder shall extend to
each holder of any agreement, instrument or document evidencing or securing the
Obligations automatically and without notice to it; and (vi) covenants
that this Guarantee will not be discharged except by complete payment and
performance of the obligations contained in the agreements, instruments and
documents evidencing or securing the Obligations and this Guarantee,

 

(c)                                  The Guarantor further agrees
that if at any time all or any part of any payment theretofore applied by any
Beneficiary to any Obligation is, or must be, rescinded or returned by such
Beneficiary for any reason whatsoever, including, without limitation, the
insolvency, bankruptcy or reorganization of the Debtor, such Obligation shall
for the purposes of this Guarantee, to the extent that such payment is or must
be rescinded, reclaimed or returned, be deemed to have continued in existence
notwithstanding such application, and this Guarantee shall continue to be
effective or be reinstated, as the case may be, as to such Obligation as though
such application had not been made.

 

(d)                                 This Guarantee is absolute and
unconditional and shall not be changed or affected by any representation, oral
agreement, act or thing whatsoever, except as herein provided. This Guarantee
sets forth the entire agreement and understanding of the Guarantor and the
Beneficiaries and is intended by the Guarantor to be the final, complete and
exclusive expression of the guarantee agreement between the Guarantor and the
Beneficiaries.

 

ARTICLE
3

LIMITATION

 

3.1                               Limitations
on Extent of Guarantee.

 

It is understood that while the amount of the Obligations is not
limited, if, in any action or proceeding involving any bankruptcy, insolvency
or other law affecting the rights of creditors generally, this Guarantee would
be held or determined to be void, voidable, ineffective, invalid or unenforceable
on account of the amount of the aggregate liability of the Guarantor under this
Guarantee, then, notwithstanding any other provision of this Guarantee to the
contrary, the aggregate amount of such liability shall, without any further
action of the Guarantor, the Beneficiaries, or any other Person, be
automatically limited and reduced to the highest amount which is valid and
enforceable as determined in such action or proceeding.

 

5

 

ARTICLE
4

SET-OFF

 

4.1                               Set-off.

 

Upon any of the Obligations becoming due and payable (whether at the
stated maturity, upon demand, by acceleration or otherwise), each Beneficiary
is hereby irrevocably authorized at any time and from time to time without
prior notice to the Guarantor, any such prior notice being expressly waived to
the extent permitted by law by the Guarantor, to set-off and appropriate and
apply any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect or contingent or matured or
unmatured, at any time held or owing by such Beneficiary to or for the credit
or the account of the Guarantor, or any part thereof, in such amounts as such
Beneficiary may elect, against and on account of the obligations and
liabilities of the Guarantor to such Beneficiary hereunder and any and all
claims of every nature and description of such Beneficiary against the
Guarantor, in any currency, whether arising hereunder or otherwise, as such
Beneficiary may elect, whether or not such Beneficiary has made any demand for
payment and although such obligations, liabilities and claims may be contingent
or unmatured. In the event any Beneficiary effects such a set off,
appropriation or application, it shall promptly give the Guarantor notice
thereof.

 

ARTICLE
5

SUBROGATION

 

5.1                               Subrogation.

 

Notwithstanding any payment or payments made by the Guarantor hereunder
or any set off, appropriation or application of funds or collateral of the
Guarantor by a Beneficiary, the Guarantor shall not be entitled to be
subrogated to any of the rights of such Beneficiary against the Debtor or any
collateral security or guarantee or right of offset held by such Beneficiary
for the payment of the Obligations, nor shall the Guarantor seek any
reimbursement, exoneration,, contribution or indemnity from the Debtor in
respect of payments made by the Guarantor hereunder, in each case, until all
Obligations have been indefeasibly paid in full in cash and all Commitments
have terminated.

 

ARTICLE
6

REPRESENTATIONS AND WARRANTIES

 

6.1                               Representations
and Warranties.

 

The Guarantor represents and warrants to each of the Beneficiaries
that:

 

(a)                                  the Guarantor is a corporation
incorporated under the laws of Nova Scotia, duly organized, validly existing,
and in good standing under the laws of the Province of Nova Scotia, and has the
corporate power and authority and the legal right to own and use its property,
to lease the property it uses as lessee and to conduct the business in which it
is currently engaged;

 

6

 

(b)                                 the Guarantor has the corporate
power and authority and the legal right to execute and deliver, and to perform
its obligations under, this Guarantee, and has taken all necessary corporate
action to authorize its execution, delivery and performance of this Guarantee;

 

(c)                                  this Guarantee constitutes a
legal, valid and binding obligation of the Guarantor enforceable in accordance
with its terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles;

 

(d)                                 the execution, delivery and performance
of this Guarantee will not violate any provision of any requirement of law or
contractual obligation of the Guarantor and will not result in or require the
creation or imposition of any Lien on any of the properties, revenues or assets
of the Guarantor pursuant to the provisions of any contractual obligation of
the Guarantor or any requirement of law;

 

(e)                                  no consent or authorization of,
filing with, or other act by or in respect of, any arbitrator or governmental
authority and no consent of any other Person (including, without limitation,
any shareholder or creditor of the Guarantor) is required in connection with
the execution, delivery, performance, validity or enforceability of this
Guarantee; and

 

(f)                                    the execution, delivery and
performance of this Guarantee will not violate any provision of any applicable
law or regulation or of any order, judgment, writ, award or decree of any
court, arbitrator or governmental authority, domestic or foreign, or of the
constating documents, or resolutions, or shareholder agreements of or
pertaining to the Guarantor or of any securities issued by the Guarantor or of
any material mortgage, indenture, lease, contract, or other agreement,
instrument or undertaking to which the Guarantor is a party.

 

ARTICLE
7

INDEMNITY

 

7.1                               Indemnity.

 

(a)                                  The Guarantor agrees to
indemnify, reimburse and hold each Beneficiary and their respective successors,
assigns, affiliates, directors, officers, employees, legal counsel, agents and
servants (hereinafter in this Article 7 referred to individually as “Indemnitee”,
and collectively as “Indemnitees”) harmless from any and all losses,
liabilities, obligations, damages, injuries, penalties, claims, demands,
actions, suits, judgments and any and all reasonable costs and expenses of
legal counsel (including reasonable fees and expenses of legal counsel or (but
not as well as) the reasonable allocated costs of staff counsel) (for the
purposes of this Article 7 the foregoing are collectively referred to as “Expenses”)
of whatsoever kind and nature imposed on, asserted against or incurred by any
of the Indemnitees in any way relating to or arising out of this Guarantee or
the documents executed in connection herewith or in any other way connected
with 

 

7

 

the administration of the transactions contemplated hereby or the
enforcement of any of the terms hereof; provided, however, that
no Indemnitee shall have the right to be indemnified hereunder for a violation
of law or for its own gross negligence or willful misconduct. The Guarantor
agrees that upon written notice by any Indemnitee of the assertion of such a
liability, obligation, damage, injury, penalty, claim, demand, action, judgment
or suit, the Guarantor shall assume full responsibility for the defence
thereof. If any action, suit or proceeding arising from any of the foregoing is
brought against any Beneficiary or any other Indemnitee, the Guarantor will, if
requested by any Beneficiary or any other Indemnitee, resist and defend such
action, suit or proceeding to cause the same to be resisted and defended by
legal counsel reasonably satisfactory to the Person or Persons indemnified or
intended to be indemnified. Each Indemnitee shall, unless any beneficiary or
other Indemnitee has made the request described in the preceding sentence and
such request has been complied with, have the right to employ its own legal
counsel (or (but not as well as) staff counsel) to investigate and control the
defence of any matter covered by such indemnity and the reasonable fees and
expenses of such counsel shall be at the expense of the Guarantor but in no
event shall the Guarantor be obligated to pay the fees and expenses of more
than one counsel. If the Guarantor shall fail to do any act or thing which it
has covenanted to do hereunder or any representation or warranty on the part of
the Guarantor contained herein shall be breached, the Canadian Administrative
Agent may (but shall not be obligated to) do the same or cause it to be done or
remedy any such breach, and may expend its funds for such purpose, and will use
its best efforts and give prompt written notice to the Guarantor that it
proposes to take such action. Any and all amounts expended by the Canadian
Administrative Agent shall be repayable to it by the Guarantor promptly upon
the Canadian Administrative Agent’s demand therefor.

 

(b)                                 Without limiting the application
of Section 7.1(a), the Guarantor agrees to pay, indemnify and hold each
Indemnitee harmless from and against any loss, reasonable costs, damages and
reasonable expenses which such Indemnitee may suffer, expend or incur in
consequence of or growing out of any misrepresentations by the Guarantor in
this Guarantee.

 

(c)                                  If and to the extent that the
obligations of the Guarantor under this Article 7 are unenforceable for
any reason, the Guarantor hereby agrees to make the maximum contribution to the
payment and satisfaction of such obligations which is permissible under
applicable law.

 

(d)                                 The indemnity obligations of the
Guarantor contained in this Article 7 and Section 8.8 shall continue
in full force and effect notwithstanding the termination of this Guarantee, the
discharge of the Guarantor’s other obligations hereunder, the full payment of
all of the Obligations and notwithstanding the discharge of any or all of the
Obligations.

 

8

 

ARTICLE
8

MISCELLANEOUS

 

8.1                               No
Waiver.

 

No failure or delay on the part of any Beneficiary in exercising any
right, power or remedy hereunder shall operate as a waiver hereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. The remedies provided for herein are cumulative and are not exclusive
of any remedies that may be available to any Beneficiary at law or in equity or
otherwise.

 

8.2                               Modifications
in Writing.

 

No amendment, modification, supplement, termination, or waiver of or to
any provision of this Guarantee, nor consent to any departure by the Guarantor
herefrom, shall be effective unless the same shall be in writing and signed by
or on behalf of the Guarantor and the Required Lenders or, to the extent
required by Section 11.08 of the Credit Agreement, with the consent of
each of the Lenders, except that this Guarantee shall automatically terminate
and be of no further force or effect upon the termination and indefeasible
payment in full of all of the Obligations and the termination of the Loan
Documents and the Commitments of the Lenders thereunder. Any amendment,
modification or supplement of or to any provision of this Guarantee, any waiver
of any provision of this Guarantee, and any consent to any departure by the
Guarantor from the terms of any provision of this Guarantee, shall be effective
only in the specific instance and for the specific purpose for which made or
given. Except where notice is specifically required by this Guarantee, no
notice to or demand on the Guarantor hereunder in any case shall entitle the
Guarantor to any other or further notice or demand in similar or other
circumstances.

 

8.3                               Notices,
etc.

 

Except as otherwise expressly permitted herein, notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed or sent by fax, as follows:

 

	
  (a)

  	
   

  	
  if to the
  Guarantor, at:

  c/o Smurfit-Stone Container Canada Inc.

  630 René Lévesque Blvd. West, Suite 3000

  Montréal, Quebec H3B 3G7

  with a copy to:

  Smurfit-Stone
  Container Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  Attention:
  Treasurer

  Tel.: (314)
  746-1255

  Telecopier: (314) 746-1281

  

 

9

 

	
   

  	
   

  	
  and to:

  Winston &
  Strawn

  35 West Wacker Drive

  Chicago, IL 60601

  Attention: Brian
  S. Hail, Esq.

  Tel.: (312)
  558-5600

  Telecopier: (312) 558-5700

   

  
	
  (b)

  	
   

  	
  If to the
  Collateral Agent:

  Deutsche Bank
  Trust Company Americas

  90 Hudson Street, 5th Floor

  Jersey City, NJ 07302

  Attention:
  Helaine Griffin-Williams

  Telecopier:
  (201) 593-2308

  with a copy to:

   

  
	
  (c)

  	
   

  	
  If to the
  Canadian Administrative Agent:

  Deutsche Bank AG

  222 Bay Street, Suite 1100

  Toronto, Ontario

  Canada, M5K lE7

  Attention: Karyn
  Curran

  Tel.: (416) 682-8005

  Telecopier: (416) 682-8444

   

  
	
  (d)

  	
   

  	
  If to any
  Lender, at its address set forth in the Credit Agreement.

  

 

Any party hereto may change its address or fax number for notices and
other communications hereunder by notice to the other parties hereto. All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt if delivered by hand or overnight courier service or sent by fax, or
on the date five Business Days after dispatch by certified or registered mail
if mailed, in each case delivered, sent or mailed (properly addressed) to such
party as provided in this Section 8.3.

 

10

 

8.4                               Binding Effect Assignment.

 

This Guarantee shall be binding upon the Guarantor and its successors
and assigns and shall inure to the benefit of the Beneficiaries and their
respective successors and assigns; provided, however, that the
Guarantor may not assign its rights or obligations hereunder or in connection
herewith or any interest herein (voluntarily, by operation of law or otherwise)
without the prior written consent of the Lenders.

 

8.5                               Costs and Expenses.

 

The Guarantor agrees to pay all reasonable costs and expenses in
connection with the negotiation, preparation, reproduction, execution and
delivery of this Guarantee, any amendment or modifications of(or supplements
to) this Guarantee and any and all other documents furnished pursuant hereto or
thereto or in connection herewith or therewith, including the reasonable fees
and out-of-pocket expenses of Osler, Hoskin & Harcourt LLP, special
Canadian counsel to the Canadian Administrative Agent and the Collateral Agent,
and any local counsel retained by the Canadian Administrative Agent or the
Collateral Agent or relative hereto or thereto or (but not as well as) the
reasonable allocated costs of staff counsel, as well as the reasonable fees and
out-of-pocket expenses of legal counsel or (but not as well as) the reasonable
allocated costs of staff counsel, independent public or chartered accountants
and other outside experts retained by the Canadian Administrative Agent or the
Collateral Agent in connection with the administration of this Guarantee, and
all reasonable costs and expenses (including, without limitation, reasonable
legal fees and expenses or (but not as well as) the reasonable allocated costs
of staff counsel), if any, incurred by the Canadian Administrative Agent or the
Collateral Agent or any other Beneficiary in connection with the enforcement of
this Guarantee or any other agreement, instrument or document furnished
pursuant hereto or in connection herewith.

 

8.6                               Consent to Jurisdiction.

 

The Guarantor hereby irrevocably submits to the non-exclusive
jurisdiction of any Nova Scotia court in any action or proceeding arising out
of or relating to this Guarantee or the other Loan Documents to which the
Guarantor is party, and the Guarantor hereby irrevocably agrees that all claims
in respect of such action or proceeding may be heard and determined in any such
Nova Scotia court and the Guarantor irrevocably waives any objection,
including, without limitation, any objection to the laying of venue or based on
the grounds of forum non conveniens, which it
may now or hereafter have to the bringing of any such action or proceeding in
such jurisdiction. To the extent permitted by applicable law, as a method of
service, the Guarantor irrevocably consents to the service of any and all
process in any such action or proceeding brought in any court in or of Nova
Scotia by the delivery of copies of such process to the Guarantor at its
address specified in Section 8.3(a) hereof or by certified or
registered mail directed to such address.

 

8.7                               Governing Law.

 

This Agreement shall be governed by, and construed in accordance with,
the laws of Nova Scotia and the federal laws of Canada applicable therein.

 

11

 

8.8                               Taxes.

 

All payments by the Guarantor under this Guarantee shall be made
without set-off or counterclaim and in such amounts as may be necessary in
order that all such payments (after deduction or withholding for or on account
of any present or future taxes (withholding, goods and services, sales, harmonized
sales taxes or otherwise), levies, imposts, deductions, duties or other charges
of whatsoever nature imposed by any government or any political subdivision or
taxing authority thereof, and all liabilities with respect thereto, other than
any branch profits tax or tax imposed on or measured by the net income of a
Beneficiary pursuant to the income tax laws of Canada (all such non-excluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities,
collectively the “Taxes”) or “Other Taxes” (as defined in the Credit Agreement)
shall not be less than the amounts otherwise specified to be paid under this
Guarantee. If any Taxes are required to be deducted from or in respect of any
sum payable hereunder to any Beneficiary, (i) the sum payable shall be
increased by the amount necessary so that after making all required deductions
such Beneficiary shall receive an amount equal to the sum it would have
received had no such deductions been made, (ii) the Guarantor shall make
such deductions, and (iii) the Guarantor shall pay the full amount
deducted to the relevant taxing authority or other Governmental Authority in
accordance with applicable law. The Guarantor will indemnify each Beneficiary
for the full amount of Taxes or Other Taxes (including any Taxes or Other Taxes
on amounts payable under this Section 8.8) paid by such Beneficiary, and
any liability (including penalties, interest and reasonable expenses) arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes were
correctly or legally asserted by the relevant taxing authority or other
Governmental Authority. Such indemnification shall be made within 30 days after
the date any Beneficiary makes written demand therefor (which demand shall
identify the nature and amount of Taxes or Other Taxes for which
indemnification is being sought and shall include a copy of the relevant
portion of any written assessment from the relevant taxing authority demanding
payment of such Taxes or Other Taxes, unless such Beneficiary determines, in
its sole discretion, that such portion of any such assessment is confidential).
A certificate as to any additional amount payable to a Beneficiary under this Section submitted
to the Guarantor by such Beneficiary shall show in reasonable detail the amount
payable and the calculations used to determine in good faith such amount, and
shall, absent manifest error, be final, conclusive and binding upon all parties
hereto. With respect to each deduction or withholding for or on account of any
Taxes or Other Taxes, the Guarantor shall promptly furnish to each Beneficiary
such certificates, receipts and other documents evidencing payment thereof or
as otherwise may be reasonably required (in the judgment of such Beneficiary)
to establish any tax credit to which such Beneficiary may be entitled.

 

8.9                               Payments.

 

All payments (including prepayments) to be made by the Guarantor on
account of the Obligations shall be made to the Canadian Administrative Agent
or the Collateral Agent (as set forth in the Credit Agreement) in the currency
in which such Obligations are denominated and in immediately available funds.
All payments (including prepayments) received by the Canadian Administrative
Agent or the Collateral Agent (as. set forth in the Credit Agreement) on account
of the Obligations shall be deemed made, and shall be distributed by the
Canadian Administrative Agent or the Collateral Agent (as set forth in the
Credit Agreement) to the 

 

12

 

applicable Lenders, ratably according to the amount of principal and
interest due and owing to such Lenders under the Credit Agreement at the time
such payment is received.

 

8.10                        Currency Conversion.

 

Without
in any way limiting the effect or application of the Credit Agreement, the
Guarantor acknowledges and agrees that Section 11.18 of the Credit
Agreement shall apply to any judgment currency conversion required hereunder or
under any other Loan Document to which the Guarantor is a party.

 

8.11                        Severability of Provisions.

 

Any provision of this Guarantee which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision
in any other jurisdiction.

 

8.12                        Headings.

 

The Section headings used in this Guarantee are for convenience of
reference only and shall not affect the construction of this Guarantee.

 

[signature page follows]

 

13

 

IN WITNESS WHEREOF, the Guarantor has caused this
Guarantee to be duly executed and delivered by its proper and duly authorized
officer as of the date first written above.

 

	
   

  	
  3083527 NOVA SCOTIA COMPANY, as

  
	
   

  	
  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  
	
   

  	
  AMERICAS, as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

14

 

Execution

 

SSC CANADA SUBSIDIARY GUARANTEE
AGREEMENT

 

This SSC CANADA SUBSIDIARY GUARANTEE AGREEMENT (as
amended, restated, supplemented or otherwise modified from time to time, this “Guarantee”), dated as of November 1, 2004, is
made by MBI Limited/Limitée, a corporation incorporated under the laws of the
Province of New Brunswick (the “Guarantor”),
in favour of DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking
corporation, for the benefit of each of the Beneficiaries (as defined below).
Unless otherwise defined herein, all capitalized terms used as defined terms
herein shall have the meanings ascribed to them in the Credit Agreement
(defined below).

 

RECITALS:

 

	
  A.

  	
  Smurfit-Stone Container Corporation, a Delaware
  corporation, Smurfit-Stone Container Enterprises, Inc., a Delaware
  Corporation, Smurfit-Stone Container Canada Inc., a corporation continued
  under the Companies Act (Nova Scotia), (“SSC Canada” or “Debtor”),
  the Lenders, JPMorgan Chase Bank, a New York banking corporation, as Senior
  Agent, Deposit Account Agent and Deposit Funded Facility Facing Agent,
  Deutsche Bank Trust Company Americas, a New York banking corporation, as
  Senior Agent, Administrative Agent, Collateral Agent, Swingline Lender and
  Revolving Facility Facing Agent and Deutsche Bank AG, an authorized foreign
  bank permitted to carry on business in Canada and listed in Schedule III of
  the Bank Act (Canada), as Canadian Administrative Agent and as Revolving
  (Canadian) Facility Facing Agent, have entered into the Credit Agreement
  dated as of November 1, 2004, and as from time to time amended,
  supplemented, restated, or otherwise modified, the “Credit
  Agreement”), pursuant to which the Lenders have agreed to make
  term and/or revolving loans and the Revolving Facility Facing Agent and the
  Revolving (Canadian) Facility Facing Agent have agreed to issue letters of
  credit to Smurfit-Stone Container Enterprises, Inc. and the Debtor as
  set forth therein.

  
	
   

  	
   

  
	
  B.

  	
  The Guarantor is a Subsidiary of SSC Canada.

  
	
   

  	
   

  
	
  C.

  	
  Pursuant to Section 6.09 of the Credit
  Agreement, the Guarantor is required to guarantee the Debtor’s obligations
  under the Credit Agreement and the other Canadian Loan Documents, and the
  Guarantor is entering into this Guarantee to satisfy such requirement.

  
	
   

  	
   

  
	
  D.

  	
  The Guarantor will derive substantial direct and
  indirect benefits and advantages from the continued financial accommodations
  to the Debtor under the Credit Agreement, and it will be to the Guarantor’s
  direct interest and economic benefit to guarantee the obligations of the
  Debtor under the Credit Agreement in order to allow the Debtor to continue to
  procure said financial accommodations from the Beneficiaries. The Guarantor
  hereby acknowledges the value of such benefits.

  

 

NOW THEREFORE, in consideration of the premises and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Guarantor hereby agrees as follows:

 

MBI Limited Guarantee

 

 

ARTICLE 1

DEFINITIONS

 

1.1                               Definitions.

 

As used in this Guarantee, and unless the context requires a different
meaning, the following terms have the meanings indicated below. Capitalized
terms used but not defined herein have the meanings assigned in the Credit
Agreement.

 

(a)                                  “Administrative Agent” has the
meaning assigned thereto in the Recitals to this Guarantee.

 

(b)                                 “Beneficiaries” means, at any
time the determination thereof is to be made, the Tranche C Lenders, the
Revolving (Canadian) Lenders, the Canadian Administrative Agent, each
Incremental Lender providing any Incremental Loans to the Debtor; the
Collateral Agent, the Revolving (Canadian) Facility Facing Agent, each
counterparty to any Swap Agreement with a Loan Party the obligations under
which constitute Canadian Obligations, each Lender or affiliate of a Lender
which is party to any Cash Management Agreement (as hereinafter defined), the
obligations under which constitute Canadian Obligations, the Beneficiaries of
each indemnification obligation undertaken by the Guarantor, or a Canadian
Subsidiary or a subsidiary of a Canadian Subsidiary under any Canadian Loan
Document and any other holder of any Canadian Obligation.

 

(c)                                  “Canadian Administrative Agent”
has the meaning assigned thereto in the Recitals to this Guarantee.

 

(d)                                 “Canadian Loan Document”
means a Loan Document (as defined in the Credit Agreement) to which the
Canadian Loan Parties are party.

 

(e)                                  “Canadian Loan Parties” means the
Debtor, and the Canadian Subsidiaries (as defined in the Credit Agreement) that
are Guarantors (as defined in the Credit Agreement).

 

(f)                                    “Collateral Agent” has the
meaning assigned thereto in the recitals to this Guarantee.

 

(g)                                 “Credit Agreement” has the
meaning assigned thereto in the Recitals to this Guarantee.

 

(h)                                 “Debtor” means SSC
Canada together with the successors (by amalgamation, liquidation, winding-up
or otherwise) and assigns thereof.

 

(i)                                     “Guarantor” has the
meaning assigned thereto in the introduction to this Guarantee.

 

(j)                                     “Guarantee” has the
meaning assigned thereto in the introduction of this Guarantee.

 

2

 

(k)                                  “Obligations” means (i) all
“Canadian Obligations” (as defined in the Credit Agreement), (ii) the
prompt and complete performance when due of the covenants and obligations to be
performed by the Canadian Loan Parties under the Canadian Loan Documents and
the Swap Agreements and the agreements between any of the Canadian Loan Parties
and any Lender or any Affiliate of a Lender in respect of cash management
services (collectively, “Cash Management
Agreements”) whether such Cash Management Agreement is now in
existence or hereafter arising.

 

(l)                                     “Taxes” has the
meaning assigned thereto in Section 8.8 of this Guarantee.

 

ARTICLE 2

GUARANTEE

 

2.1                               Guarantee of Obligations.

 

(a)                                  The
Guarantor hereby unconditionally and irrevocably guarantees to each of the
Beneficiaries, the due, prompt and complete payment by the Debtor of, and the
due, prompt and faithful performance of and compliance with, all of the
Obligations, when and as the same shall become due and payable, whether upon
stated maturity, by acceleration or otherwise; provided, however,
that the obligations of the Guarantor under this Article 2 shall be
limited to the extent set forth in Article 3 hereof. If the Debtor shall
fail duly and punctually to make any such payment in full, the Guarantor hereby
agrees duly and punctually to make such payment, subject to the limitations set
forth in Article 3 hereof, when and as the same shall become due and
payable, whether upon stated maturity, by acceleration or otherwise.

 

(b)                                 The
obligations of the Guarantor hereunder shall be continuing, absolute and
unconditional under any and all circumstances and not subject to any reduction,
limitation, impairment, termination, defence (other than indefeasible payment
in full), set-off, counterclaim, cross-claim or recoupment whatsoever (all of
which are hereby expressly, absolutely, unconditionally and irrevocably waived
by it to the extent permitted bylaw), whether by reason of any claim of any
waiver, release, surrender, alteration or compromise, or by reason of any
liability of any Beneficiary at any time owing to the Guarantor, the Debtor, or
any Subsidiary of the Debtor, or the obligations of any other Person relating
to this Guarantee or the obligations of the Guarantor hereunder. Without
limiting the foregoing, the Guarantor’s obligations hereunder shall not be
reduced, terminated or otherwise affected by: (i) any insolvency,
bankruptcy, reorganization or dissolution, by any proceeding in respect of any
thereof, of the Debtor; (ii) the genuineness, validity, regularity or
enforceability of any agreement, instrument or document evidencing or securing
the Obligations or any other agreement, instrument or document or the extension
or renewal thereof, in whole or in part, with or without notice to or assent
from the Debtor or the Guarantor; (iii) any rescission, compromise,
alteration, amendment, modification, extension, renewal, release, change,
waiver, consent or other action in respect of any of the terms, provisions,
covenants or 

 

3

 

conditions contained in any
agreement, instrument or document evidencing or securing the Obligations or in
any other agreement, instrument or document; (iv) the absence of notice or
the absence of or any delay in any action to enforce any obligation or to
exercise any right or remedy against the Debtor or the Guarantor, whether under
any agreement, instrument or document evidencing or securing the Obligations or
under any other agreement, instrument or document, or any indulgence, extension
or waiver granted to or compromise with the Debtor or the Guarantor, or any
action or proceeding taken or not taken with respect to or by or on behalf of
the Debtor or the Guarantor, or the holder of any agreement, instrument or
document evidencing or securing the Obligations; (v) any default, failure
or delay in performance of any obligation, covenant, duty, representation,
warranty or agreement contained in any agreement, instrument or document
evidencing or securing the Obligations or in any other agreement, instrument or
document, or arising pursuant to law; (vi) any act or thing or omission to
do or delay in doing any act or thing which might in any manner result in any
lack of proper authorization or any invalid execution of any agreement,
instrument or document evidencing or securing the Obligations or under any
other agreement, instrument or document; (vii) any assumption by any
Person of any obligation under any agreement, instrument or document evidencing
or securing the Obligations or under any other agreement, instrument or
document; (viii) any event of force majeure; (ix) any release or
substitution of any Collateral for the payment of the Obligations or
obligations under any other agreement, instrument or document, in whole or in
part, with or without notice to or assent from the Debtor or the Guarantor, (x) any
other circumstances which might constitute a legal or equitable discharge or
defence of a surety or guarantor; (xi) whether a security interest in any
Collateral shall have been perfected or shall continue to be perfected, or
whether any Collateral shall be impaired in any manner, or whether any steps
shall have been taken to enforce rights against the Debtor or the Guarantor or
any Collateral; or (xii) any consolidation, amalgamation, merger, or other
change in the capital structure of the Debtor or the Guarantor.

 

The Guarantor hereby: (i) waives, to the extent
permitted by law, diligence, presentment, demand of payment, filing of claims
with a court in the event of the merger, amalgamation or bankruptcy of the Debtor,
any right to require a proceeding first against the Debtor or to realize on any
Collateral, protest, notice and all demands whatsoever, with respect to the
Obligations; (ii) agrees that its obligations hereunder constitute
guarantees of payment and not of collection and are not in any way conditional
or contingent upon any attempt to collect from or enforce against the Debtor or
upon any other condition or contingency; (iii) acknowledges that this
Guarantee and the Guarantor’s obligations under this Guarantee are and shall at
all times continue to be absolute and unconditional in all respects, and shall
at all times be valid and enforceable irrespective of any other agreements or
circumstances of any nature whatsoever which might otherwise constitute a
defence to this Guarantee and the obligations of the Guarantor under this
Guarantee or the obligations of any other Person (including, without
limitation, the Debtor) relating to this Guarantee or the obligations of the
Guarantor hereunder or otherwise with respect to the Loans and other financial
accommodations made to the Debtor,; (iv) acknowledges that no oral or
other agreements, understandings, representations or warranties 

 

4

 

exist with respect to this Guarantee or with respect to the obligations
of the Guarantor hereunder, except as specifically set forth in this Guarantee;
(v) acknowledges that any agreement, instrument or document evidencing or
securing the Obligations may be transferred, but only in accordance with the
terms of the Credit Agreement, and that the benefit of its obligations
hereunder shall extend to each holder of any agreement, instrument or document
evidencing or securing the Obligations automatically and without notice to it;
and (vi) covenants that this Guarantee will not be discharged except by
complete payment and performance of the obligations contained in the
agreements, instruments and documents evidencing or securing the Obligations
and this Guarantee.

 

(c)                                  The
Guarantor further agrees that if at any time all or any part of any payment
theretofore applied by any Beneficiary to any Obligation is, or must be,
rescinded or returned by such Beneficiary for any reason whatsoever, including,
without limitation, the insolvency, bankruptcy or reorganization of the Debtor,
such Obligation shall for the purposes of this Guarantee, to the extent that
such payment is or must be rescinded, reclaimed or returned, be deemed to have
continued in existence notwithstanding such application, and this Guarantee
shall continue to be effective or be reinstated, as the case may be, as to such
Obligation as though such application had not been made.

 

(d)                                 This
Guarantee is absolute and unconditional and shall not be changed or affected by
any representation, oral agreement, act or thing whatsoever, except as herein
provided. This Guarantee sets forth the entire agreement and understanding of
the Guarantor and the Beneficiaries and is intended by the Guarantor to be the
final, complete and exclusive expression of the guarantee agreement between the
Guarantor and the Beneficiaries.

 

ARTICLE 3

LIMITATION

 

3.1                               Limitations on Extent of
Guarantee.

 

It is understood that while the amount of the Obligations is not
limited, if, in any action or proceeding involving any bankruptcy, insolvency
or other law affecting the rights of creditors generally, this Guarantee would
be held or determined to be void, voidable, ineffective, invalid or
unenforceable on account of the amount of the aggregate liability of the Guarantor
under this Guarantee, then, notwithstanding any other provision of this
Guarantee to the contrary, the aggregate amount of such liability shall,
without any further action of the Guarantor, the Beneficiaries, or any other
Person, be automatically limited and reduced to the highest amount which is
valid and enforceable as determined in such action or proceeding.

 

5

 

ARTICLE 4

SET-OFF

 

4.1                               Set-off.

 

Upon
any of the Obligations becoming due and payable (whether at the stated
maturity, upon demand, by acceleration or otherwise), each Beneficiary is
hereby irrevocably authorized at any time and from time to time without prior
notice to the Guarantor, any such prior notice being expressly waived to the
extent permitted by law by the Guarantor, to set-off and appropriate and apply
any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect or contingent or matured or
unmatured, at any time held or owing by such Beneficiary to or for the credit
or the account of the Guarantor, or any part thereof, in such amounts as such
Beneficiary may elect, against and on account of the obligations and
liabilities of the Guarantor to such Beneficiary hereunder and any and all
claims of every nature and description of such Beneficiary against the
Guarantor, in any currency, whether arising hereunder or otherwise, as such
Beneficiary may elect, whether or not such Beneficiary has made any demand for
payment and although such obligations, liabilities and claims may be contingent
or unmatured. In the event any Beneficiary effects such a set off,
appropriation or application, it shall promptly give the Guarantor notice
thereof.

 

ARTICLE 5

SUBROGATION

 

5.1                               Subrogation.

 

Notwithstanding any payment or payments made by the Guarantor hereunder
or any set off, appropriation or application of funds or collateral of the
Guarantor by a Beneficiary, the Guarantor shall not be entitled to be
subrogated to any of the rights of such Beneficiary against the Debtor or any
collateral security or guarantee or right of offset held by such Beneficiary
for the payment of the Obligations, nor shall the Guarantor seek any
reimbursement, exoneration, contribution or indemnity from the Debtor in
respect of payments made by the Guarantor hereunder, in each case, until all
Obligations have been indefeasibly paid in full in cash and all Commitments
have terminated.

 

ARTICLE 6

REPRESENTATIONS AND WARRANTIES

 

6.1                               Representations and
Warranties.

 

The Guarantor represents and warrants to each of the Beneficiaries
that:

 

(a)                                  the
Guarantor is a corporation incorporated under the laws of New Brunswick, duly
organized, validly existing, and in good standing under the laws of the
Province of New Brunswick and has the corporate power and authority and the
legal right to own and use its property, to lease the property it uses as
lessee and to conduct the business in which it is currently engaged;

 

6

 

(b)                                 the
Guarantor has the corporate power and authority and the legal right to execute
and deliver, and to perform its obligations under, this Guarantee, and has
taken all necessary corporate action to authorize its execution, delivery and
performance of this Guarantee;

 

(c)                                  this
Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally and by general equitable
principles;

 

(d)                                 the
execution, delivery and performance of this Guarantee will not violate any
provision of any requirement of law or contractual obligation of the Guarantor and
will not result in or require the creation or imposition of any Lien on any of
the properties, revenues or assets of the Guarantor pursuant to the provisions
of any contractual obligation of the Guarantor or any requirement of law;

 

(e)                                  no
consent or authorization of, filing with, or other act by or in respect of, any
arbitrator or governmental authority and no consent of any other Person
(including, without limitation, any shareholder or creditor of the Guarantor)
is required in connection with the execution, delivery, performance, validity
or enforceability of this Guarantee; and

 

(f)                                    the
execution, delivery and performance of this Guarantee will not violate any
provision of any applicable law or regulation or of any order, judgment, writ,
award or decree of any court, arbitrator or governmental authority, domestic or
foreign, or of the constating documents, or resolutions, or shareholder
agreements of or pertaining to the Guarantor or of any securities issued by the
Guarantor or of any material mortgage, indenture, lease, contract, or other
agreement, instrument or undertaking to which the Guarantor is a party.

 

ARTICLE 7

INDEMNITY

 

7.1                               Indemnity.

 

(a)                                  The
Guarantor agrees to indemnify, reimburse and hold each Beneficiary and their
respective successors, assigns, affiliates, directors, officers, employees,
legal counsel, agents and servants (hereinafter in this Article 7 referred
to individually as “Indemnitee”,
and collectively as “Indemnitees”)
harmless from any and all losses, liabilities, obligations, damages, injuries,
penalties, claims, demands, actions, suits, judgments and any and all
reasonable costs and expenses of legal counsel (including reasonable fees and
expenses of legal counsel or (but not as well as) the reasonable allocated
costs of staff counsel) (for the purposes of this Article 7 the foregoing
are collectively referred to as “Expenses”)
of whatsoever kind and nature imposed on, asserted against or incurred by any
of the Indemnitees in any way relating to or arising out of this Guarantee or
the documents executed in connection herewith or in any other way connected
with 

 

7

 

the administration of the
transactions contemplated hereby or the enforcement of any of the terms hereof;
provided, however, that no Indemnitee shall have the right to be indemnified
hereunder for a violation of law or for its own gross negligence or willful
misconduct. The Guarantor agrees that upon written notice by any Indemnitee of
the assertion of such a liability, obligation, damage, injury, penalty, claim,
demand, action, judgment or suit, the Guarantor shall assume full
responsibility for the defence thereof. If any action, suit or proceeding
arising from any of the foregoing is brought against any Beneficiary or any
other Indemnitee, the Guarantor will, if requested by any Beneficiary or any
other Indemnitee, resist and defend such action, suit or proceeding to cause
the same to be resisted and defended by legal counsel reasonably satisfactory
to the Person or Persons indemnified or intended to be indemnified. Each
Indemnitee shall, unless any beneficiary or other Indemnitee has made the
request described in the preceding sentence and such request has been complied
with, have the right to employ its own legal counsel (or (but not as well as)
staff counsel) to investigate and control the defence of any matter covered by
such indemnity arid the reasonable fees and expenses of such counsel shall be
at the expense of the Guarantor but in no event shall the Guarantor be
obligated to pay the fees and expenses of more than one counsel. If the
Guarantor shall fail to do any act or thing which it has covenanted to do
hereunder or any representation or warranty on the part of the Guarantor
contained herein shall be breached, the Canadian Administrative Agent may (but
shall not be obligated to) do the same or cause it to be done or remedy any
such breach, and may expend its funds for such purpose, and will use its best
efforts and give prompt written notice to the Guarantor that it proposes to
take such action. Any and all amounts expended by the Canadian Administrative
Agent shall be repayable to it by the Guarantor promptly upon the Canadian
Administrative Agent’s demand therefor.

 

(b)                                 Without
limiting the application of Section 7.1(a), the Guarantor agrees to pay,
indemnify and hold each Indemnitee harmless from and against any loss,
reasonable costs, damages and reasonable expenses which such Indemnitee may
suffer, expend or incur in consequence of or growing out of any misrepresentations
by the Guarantor in this Guarantee.

 

(c)                                  If
and to the extent that the obligations of the Guarantor under this Article 7
are unenforceable for any reason, the Guarantor hereby agrees to make the
maximum contribution to the payment and satisfaction of such obligations which
is permissible under applicable law.

 

(d)                                 The
indemnity obligations of the Guarantor contained in this Article 7 and Section 8.8
shall continue in full force and effect notwithstanding the termination of this
Guarantee, the discharge of the Guarantor’s other obligations hereunder, the
full payment of all of the Obligations and notwithstanding the discharge of any
or all of the Obligations.

 

8

 

ARTICLE 8

MISCELLANEOUS

 

8.1                               No Waiver.

 

No failure or delay on the part of any Beneficiary in exercising any
right, power or remedy hereunder shall operate as a waiver hereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. The remedies provided for herein are cumulative and are not exclusive
of any remedies that may be available to any Beneficiary at law or in equity or
otherwise.

 

8.2                               Modifications In Writing.

 

No amendment, modification, supplement, termination, or waiver of or to
any provision of this Guarantee, nor consent to any departure by the Guarantor
herefrom, shall be effective unless the same shall be in writing arid signed by
or on behalf of the Guarantor and the Required Lenders or, to the extent
required by Section 11.08 of the Credit Agreement, with the consent of
each of the Lenders, except that this Guarantee shall automatically terminate
and be of no further force or effect upon the termination and indefeasible
payment in full of all of the Obligations and the termination of the Loan
Documents and the Commitments of the Lenders thereunder. Any amendment,
modification or supplement of or to any provision of this Guarantee, any waiver
of any provision of this Guarantee, and any consent to any departure by the
Guarantor from the terms of any provision of this Guarantee, shall be effective
only in the specific instance and for the specific purpose for which made or
given. Except where notice is specifically required by this Guarantee, no
notice to or demand on the Guarantor hereunder in any case shall entitle the
Guarantor to any other or further notice or demand in similar or other
circumstances.

 

8.3                               Notices, etc.

 

Except as otherwise expressly permitted herein, notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed or sent by fax, as follows:

 

	
  (a)

  	
  if to the Guarantor, at:

  
	
   

  	
   

  
	
   

  	
  c/o Smurfit-Stone Container Canada Inc.

  
	
   

  	
  630 René Lévesque Blvd. West, Suite 3000

  
	
   

  	
  Montréal, Quebec H3B 3G7

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Smurfit-Stone Container Corporation

  
	
   

  	
  8182 Maryland Avenue

  
	
   

  	
  St. Louis, MO 63105

  
	
   

  	
   

  
	
   

  	
  Attention: Treasurer

  
	
   

  	
   

  
	
   

  	
  Tel.: (314) 746-1255

  
	
   

  	
  Telecopier: (314) 746-1281

  

 

9

 

	
   

  	
  and to:

  
	
   

  	
   

  
	
   

  	
  Winston & Strawn

  
	
   

  	
  35 West Wacker Drive

  
	
   

  	
  Chicago, IL 60601

  
	
   

  	
   

  
	
   

  	
  Attention: Brian S. Hart, Esq.

  
	
   

  	
   

  
	
   

  	
  Tel.: (312) 558-5600

  
	
   

  	
  Telecopier: (312) 558-5700

  
	
   

  	
   

  
	
  (b)

  	
  If to the Collateral Agent:

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank Trust Company Americas

  
	
   

  	
  90 Hudson Street, 5th Floor

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
   

  
	
   

  	
  Attention: Helaine Griffin-Williams

  
	
   

  	
   

  
	
   

  	
  Telecopier: (201) 593-2308

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
  (c)

  	
  If to the Canadian Administrative Agent:

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank AG

  
	
   

  	
  222 Bay Street, Suite 1100

  
	
   

  	
  Toronto, Ontario

  
	
   

  	
  Canada, M5K 1E7

  
	
   

  	
   

  
	
   

  	
  Attention: Karyn Curran

  
	
   

  	
  Tel.: (416) 682-8005

  
	
   

  	
  Telecopier: (416) 682-8444

  
	
   

  	
   

  
	
  (d)

  	
  If to any Lender, at its address set forth in the
  Credit Agreement.

  

 

Any party hereto may change its address or fax number for notices and
other communications hereunder by notice to the other parties hereto, All
notices and other communications given to any party hereto in accordance with
the provisions of this Agreement shall be deemed to have been given on the date
of receipt if delivered by hand or overnight courier service or sent by fax, or
on the date five Business Days after dispatch by certified or registered mail
if mailed, in each case delivered, sent or mailed (properly addressed) to such
party as provided in this Section 8.3.

 

10

 

8.4                               Binding Effect; Assignment.

 

This
Guarantee shall be binding upon the Guarantor and its successors and assigns
and shall inure to the benefit of the Beneficiaries and their respective
successors and assigns; provided, however, that the Guarantor may
not assign its rights or obligations hereunder or in connection herewith or any
interest herein (voluntarily, by operation of law or otherwise) without the
prior written consent of the Lenders.

 

8.5                               Costs and Expenses.

 

The Guarantor agrees to pay all reasonable costs and expenses in
connection with the negotiation, preparation, reproduction, execution and
delivery of this Guarantee, any amendment or modifications of(or supplements
to) this Guarantee and any and all other documents furnished pursuant hereto or
thereto or in connection herewith or therewith, including the reasonable fees
and out-of-pocket expenses of Osler, Hoskin & Harcourt LLP, special
Canadian counsel to the Canadian Administrative Agent and the Collateral Agent,
and any local counsel retained by the Canadian Administrative Agent or the
Collateral Agent or relative hereto or thereto or (but not as well as) the
reasonable allocated costs of staff counsel, as well as the reasonable fees and
out-of-pocket expenses of legal counsel or (but not as well as) the reasonable
allocated costs of staff counsel, independent public or chartered accountants
and other outside experts retained by the Canadian Administrative Agent or the
Collateral Agent in connection with the administration of this Guarantee, and
all reasonable costs and expenses (including, without limitation, reasonable
legal fees and expenses or (but not as well as) the reasonable allocated costs
of staff counsel), if any, incurred by the Canadian Administrative Agent or the
Collateral Agent or any other Beneficiary in connection with the enforcement of
this Guarantee or any other agreement, instrument or document furnished
pursuant hereto or in connection herewith.

 

8.6                               Consent to Jurisdiction.

 

The Guarantor hereby irrevocably submits to the non-exclusive
jurisdiction of any New Brunswick court in any action or proceeding arising out
of or relating to this Guarantee or the other Loan Documents to which the
Guarantor is party, and the Guarantor hereby irrevocably agrees that all claims
in respect of such action or proceeding may be heard and determined in any such
New Brunswick court and the Guarantor irrevocably waives any objection,
including, without limitation, any objection to the laying of venue or based on
the grounds of forum non conveniens, which it may now or hereafter have to the
bringing of any such action or proceeding in such jurisdiction. To the extent
permitted by applicable law, as a method of service. the Guarantor irrevocably
consents to the service of any and all process in any such action or proceeding
brought in any court in or of New Brunswick by the delivery of copies of such
process to the Guarantor at its address specified in Section 8.3(a) hereof
or by certified or registered mail directed to such address.

 

8.7                               Governing Law.

 

This Agreement shall be governed by, and construed in accordance with,
the laws of New Brunswick and the federal laws of Canada applicable therein.

 

11

 

8.8                               Taxes.

 

All payments by the Guarantor under this Guarantee shall be made
without set-off or counterclaim and in such amounts as may be necessary in
order that all such payments (after deduction or withholding for or on account
of any present or future taxes (withholding, goods arid services, sales,
harmonized sales taxes or otherwise), levies. imposts, deductions, duties or
other charges of whatsoever nature imposed by any government or any political
subdivision or taxing authority thereof, and all liabilities with respect
thereto, other than any branch profits tax or tax imposed on or measured by the
net income of a Beneficiary pursuant to the income tax laws of Canada (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings and
liabilities, collectively the “Taxes”)
or “Other Taxes” (as defined in the
Credit Agreement)) shall not be less than the amounts otherwise specified to be
paid under this Guarantee. If any Taxes are required to be deducted from or in
respect of any sum payable hereunder to any Beneficiary, (i) the sum
payable shall be increased by the amount necessary so that after making all
required deductions such Beneficiary shall receive an amount equal to the sum
it would have received had no such deductions been made, (ii) the
Guarantor shall make such deductions, and (iii) the Guarantor shall pay
the full amount deducted to the relevant taxing authority or other Governmental
Authority in accordance with applicable law. The Guarantor will indemnify each
Beneficiary for the full amount of Taxes or Other Taxes (including any Taxes or
Other Taxes on amounts payable under this Section 8.8) paid by such
Beneficiary, and any liability (including penalties, interest and reasonable
expenses) arising therefrom or with respect thereto, whether or not such Taxes
or Other Taxes were correctly or legally asserted by the relevant taxing
authority or other Governmental Authority. Such indemnification shall be made
within 30 days after the date any Beneficiary makes written demand therefor
(which demand shall identify the nature and amount of Taxes or Other Taxes for
which indemnification is being sought and shall include a copy of the relevant
portion of any written assessment from the relevant taxing authority demanding
payment of such Taxes or Other Taxes, unless such Beneficiary determines, in
its sole discretion, that such portion of any such assessment is confidential).
A certificate as to any additional amount payable to a Beneficiary under this Section submitted
to the Guarantor by such Beneficiary shall show in reasonable detail the amount
payable and the calculations used to determine in good faith such amount, and
shall, absent manifest error, be final, conclusive and binding upon all parties
hereto. With respect to each deduction or withholding for or on account of any
Taxes or Other Taxes, the Guarantor shall promptly furnish to each Beneficiary
such certificates, receipts and other documents evidencing payment thereof or
as otherwise may be reasonably required (in the judgment of such Beneficiary)
to establish any tax credit to which such Beneficiary may be entitled.

 

8.9                               Payments.

 

All payments (including prepayments) to be made by the Guarantor on
account of the Obligations shall be made to the Canadian Administrative Agent
or the Collateral Agent (as set forth in the Credit Agreement) in the currency
in which such Obligations are denominated and in immediately available funds.
All payments (including prepayments) received by the Canadian Administrative
Agent or the Collateral Agent (as set forth in the Credit Agreement) on account
of the Obligations shall be deemed made, and shall be distributed by the
Canadian Administrative Agent or the Collateral Agent (as set forth in the Credit
Agreement) to the 

 

12

 

applicable Lenders, ratably according to the amount of principal and
interest due and owing to such Lenders under the Credit Agreement at the time
such payment is received.

 

8.10                        Currency Conversion.

 

Without in any way limiting the effect or application of the Credit
Agreement, the Guarantor acknowledges and agrees that Section 11.18 of the
Credit Agreement shall apply to any judgment currency conversion required
hereunder or under any other Loan Document to which the Guarantor is a party.

 

8.11                        Severability of Provisions.

 

Any provision of this Guarantee which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision
in any other jurisdiction.

 

8.12                        Headings.

 

The Section headings used in this Guarantee are for convenience of
reference only and shall not affect the construction of this Guarantee.

 

(signature page follows)

 

13

 

IN WITNESS WHEREOF, the Guarantor has caused this
Guarantee to be duty executed and delivered by its proper and duly authorized
officer as of the date first written above.

 

	
   

  	
  MBI LIMITED/LIMITÉE, as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  
	
   

  	
  AMERICAS, as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

14

 

Execution

 

SSC
CANADA SUBSIDIARY GUARANTEE AGREEMENT

 

This SSC CANADA
SUBSIDIARY GUARANTEE AGREEMENT (as amended, restated, supplemented or otherwise
modified from time to time, this “Guarantee”),
dated as of November 1, 2004, is made by MBI Limited/Limitée, in its
capacity as general partner of Smurfit-MBI, a corporation incorporated under
the laws of the Province of New Brunswick (the “Guarantor”), in favour of DEUTSCHE BANK TRUST COMPANY
AMERICAS, a New York banking corporation, for the benefit of each of the
Beneficiaries (as defined below). Unless otherwise defined herein, all
capitalized terms used as defined terms herein shall have the meanings ascribed
to them in the Credit Agreement (defined below).

 

RECITALS:

 

A.                                   Smurfit-Stone Container Corporation, a
Delaware corporation, Smurfit-Stone Container Enterprises, Inc., a
Delaware Corporation, Smurfit-Stone Container Canada Inc., a corporation
continued under the Companies Act
(Nova Scotia), (“SSC Canada” or “Debtor”), the Lenders, JPMorgan Chase
Bank, a New York banking corporation, as Senior Agent, Deposit Account Agent
and Deposit Funded Facility Facing Agent, Deutsche Bank Trust Company Americas,
a New York banking corporation, as Senior Agent, Administrative Agent,
Collateral Agent, Swingline Lender and Revolving Facility Facing Agent and
Deutsche Bank AG, an authorized foreign bank permitted to carry on business in
Canada and listed in Schedule III of the Bank Act (Canada), as Canadian
Administrative Agent and as Revolving (Canadian) Facility Facing Agent, have
entered into the Credit Agreement dated as of November 1, 2004, and as
from time to time amended, supplemented, restated, or otherwise modified, the “Credit Agreement”), pursuant to which the
Lenders have agreed to make term and/or revolving loans and the Revolving
Facility Facing Agent and the Revolving (Canadian) Facility Facing Agent have
agreed to issue letters of credit to Smurfit-Stone Container
Enterprises, Inc. and the Debtor as set forth therein.

 

B.                                     The Guarantor is a Subsidiary of SSC
Canada.

 

C.                                     Pursuant to Section 6.09 of the
Credit Agreement, the Guarantor is required to guarantee the Debtor’s
obligations under the Credit Agreement and the other Canadian Loan Documents,
and the Guarantor is entering into this Guarantee to satisfy such requirement.

 

D.                                    The Guarantor will derive substantial
direct and indirect benefits and advantages from the continued financial
accommodations to the Debtor under the Credit Agreement, and it will be to the
Guarantor’s direct interest and economic benefit to guarantee the obligations
of the Debtor under the Credit Agreement in order to allow the Debtor to
continue to procure said financial accommodations from the Beneficiaries. The
Guarantor hereby acknowledges the value of such benefits.

 

NOW
THEREFORE, in
consideration of the premises and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Guarantor
hereby agrees as follows:

 

Smurfit-MBI
Guarantee

 

 

ARTICLE 1

DEFINITIONS

 

1.1                               Definitions:

 

As used in this
Guarantee, and unless the context requires a different meaning, the following
terms have the meanings indicated below. Capitalized terms used but not defined
herein have the meanings assigned in the Credit Agreement.

 

(a)                                  “Administrative Agent” has the
meaning assigned thereto in the Recitals to this Guarantee.

 

(b)                                 “Beneficiaries” means, at any
time the determination thereof is to be made, the Tranche C Lenders, the
Revolving (Canadian) Lenders, the Canadian Administrative Agent, each Incremental
Lender providing any Incremental Loans to the Debtor, the Collateral Agent, the
Revolving (Canadian) Facility Facing Agent, each counterparty to any Swap
Agreement with a Loan Party the obligations under which constitute Canadian
Obligations, each Lender or affiliate of a Lender which is party to any Cash
Management Agreement (as hereinafter defined), the obligations under which
constitute Canadian Obligations, the Beneficiaries of each indemnification
obligation undertaken by the Guarantor, or a Canadian Subsidiary or a
subsidiary of a Canadian Subsidiary under any Canadian Loan Document and any
other holder of any Canadian Obligation.

 

(c)                                  “Canadian Administrative Agent” has the
meaning assigned thereto in the Recitals to this Guarantee.

 

(d)                                 “Canadian Loan Document” means a Loan
Document (as defined in the Credit Agreement) to which the Canadian Loan
Parties are party.

 

(e)                                  “Canadian Loan Parties” means the
Debtor, and the Canadian Subsidiaries (as defined in the Credit Agreement) that
are Guarantors (as defined in the Credit Agreement).

 

(f)                                    “Collateral Agent” has the
meaning assigned thereto in the recitals to this Guarantee.

 

(g)                                 “Credit Agreement” has the
meaning assigned thereto in the Recitals to this Guarantee.

 

(h)                                 “Debtor” means SSC Canada together with
the successors (by amalgamation, liquidation, winding-up or otherwise) and
assigns thereof.

 

(i)                                     “Guarantor” has the
meaning assigned thereto in the introduction to this Guarantee.

 

(j)                                     “Guarantee” has the
meaning assigned thereto in the introduction of this Guarantee.

 

2

 

(k)                                  “Obligations” means
(i) all “Canadian Obligations” (as defined in the Credit Agreement),
(ii) the prompt and complete performance when due of the covenants and
obligations to be performed by the Canadian Loan Parties under the Canadian
Loan Documents and the Swap Agreements and the agreements between any of the
Canadian Loan Parties and any Lender or any Affiliate of a Lender in respect of
cash management services (collectively, “Cash Management
Agreements”) whether such Cash Management
Agreement is now in existence or hereafter arising.

 

(l)                                     “Taxes” has the meaning assigned
thereto in Section 8.8 of this Guarantee.

 

ARTICLE 2

GUARANTEE

 

2.1                               Guarantee of Obligations.

 

(a)                                  The
Guarantor hereby unconditionally and irrevocably guarantees to each of the
Beneficiaries, the due, prompt and complete payment by the Debtor of, and the
due, prompt and faithful performance of and compliance with, all of the
Obligations, when and as the same shall become due and payable, whether upon
stated maturity, by acceleration or otherwise; provided, however,
that the obligations of the Guarantor under this Article 2 shall be
limited to the extent set forth in Article 2 hereof. If the Debtor shall
fail duly and punctually to make any such payment in full, the Guarantor hereby
agrees duly and punctually to make such payment, subject to the limitations set
forth in Article 3 hereof, when and as the same shall become due and
payable, whether upon stated maturity, by acceleration or otherwise.

 

(b)                                 The
obligations of the Guarantor hereunder shall be continuing, absolute and
unconditional under any and all circumstances and not subject to any reduction,
limitation, impairment, termination, defence (other than indefeasible payment
in full), set-off, counterclaim, cross-claim or recoupment whatsoever (all of
which are hereby expressly, absolutely, unconditionally and irrevocably waived
by it to the extent permitted by law), whether by reason of any claim of any waiver,
release, surrender, alteration or compromise, or by reason of any liability of
any Beneficiary at any time owing to the Guarantor, the Debtor, or any
Subsidiary of the Debtor, or the obligations of any other Person relating to
this Guarantee or the obligations of the Guarantor hereunder. Without limiting
the foregoing, the Guarantor’s obligations hereunder shall not be reduced,
terminated or otherwise affected by: (i) any insolvency, bankruptcy,
reorganization or dissolution, by any proceeding in respect of any thereof, of
the Debtor; (ii) the genuineness, validity, regularity or enforceability
of any agreement, instrument or document evidencing or securing the Obligations
or any other agreement, instrument or document or the extension or renewal thereof,
in whole or in part, with or without notice to or assent from the Debtor or the
Guarantor; (iii) any rescission, compromise, alteration, amendment,
modification, extension, renewal, release, change, waiver, consent or other
action in respect of any of the terms, provisions, covenants or 

 

3

 

conditions contained in any
agreement, instrument or document evidencing or securing the Obligations or in
any other agreement, instrument or document; (iv) the absence of notice or
the absence of or any delay in any action to enforce any obligation or to
exercise any right or remedy against the Debtor or the Guarantor, whether under
any agreement, instrument or document evidencing or securing the Obligations or
under any other agreement, instrument or document, or any indulgence, extension
or waiver granted to or compromise with the Debtor or the Guarantor, or any
action or proceeding taken or not taken with respect to or by or on behalf of
the Debtor or the Guarantor, or the holder of any agreement, instrument or
document evidencing or securing the Obligations; (v) any default, failure
or delay in performance of any obligation, covenant, duty, representation,
warranty or agreement contained in any agreement, instrument or document
evidencing or securing the Obligations or in any other agreement, instrument or
document, or arising pursuant to law; (vi) any act or thing or omission to
do or delay in doing any act or thing which might in any manner result in any
lack of proper authorization or any invalid execution of any agreement,
instrument or document evidencing or securing the Obligations or under any
other agreement, instrument or document; (vii) any assumption by any
Person of any obligation under any agreement, instrument or document evidencing
or securing the Obligations or under any other agreement, instrument or
document; (viii) any event of force majeure; (ix) any release or
substitution of any Collateral for the payment of the Obligations or obligations
under any other agreement, instrument or document, in whole or in part, with or
without notice to or assent from the Debtor or the Guarantor; (x) any
other circumstances which might constitute a legal or equitable discharge or
defence of a surety or guarantor; (xi) whether a security interest in any
Collateral shall have been perfected or shall continue to be perfected, or
whether any Collateral shall be impaired in any manner, or whether any steps
shall have been taken to enforce rights against the Debtor or the Guarantor or
any Collateral; or (xii) any consolidation, amalgamation, merger, or other
change in the capital structure of the Debtor or the Guarantor.

 

The Guarantor hereby:
(i) waives, to the extent permitted by law, diligence, presentment, demand
of payment, filing of claims with a court in the event of the merger,
amalgamation or bankruptcy of the Debtor, any right to require a proceeding
first against the Debtor or to realize on any Collateral, protest, notice and
all demands whatsoever, with respect to the Obligations; (ii) agrees that
its obligations hereunder constitute guarantees of payment and not of
collection and are not in any way conditional or contingent upon any attempt to
collect from or enforce against the Debtor or upon any other condition or
contingency, (iii) acknowledges that this Guarantee and the Guarantor’s
obligations under this Guarantee are and shall at all times continue to be
absolute and unconditional in all respects, and shall at all times be valid and
enforceable irrespective of any other agreements or circumstances of any nature
whatsoever which might otherwise constitute a defence to this Guarantee and the
obligations of the Guarantor under this Guarantee or the obligations of any
other Person (including, without limitation, the Debtor) relating to this
Guarantee or the obligations of the Guarantor hereunder or otherwise with
respect to the Loans and other financial accommodations made to the Debtor;
(iv) acknowledges that no oral or other agreements, understandings, representations
or warranties 

 

4

 

exist with respect to this Guarantee or with respect to the obligations
of the Guarantor hereunder, except as specifically set forth in this Guarantee;
(v) acknowledges that any agreement, instrument or document evidencing or
securing the Obligations may be transferred, but only in accordance with the
terms of the Credit Agreement, and that the benefit of its obligations
hereunder shall extend to each holder of any agreement, instrument or document
evidencing or securing the Obligations automatically and without notice to it;
and (vi) covenants that this Guarantee will not be discharged except by
complete payment and performance of the obligations contained in the
agreements, instruments and documents evidencing or securing the Obligations
and this Guarantee.

 

(c)                                  The
Guarantor further agrees that if at any time all or any part of any payment
theretofore applied by any Beneficiary to any Obligation is, or must be,
rescinded or returned by such Beneficiary for any reason whatsoever, including,
without limitation, the insolvency, bankruptcy or reorganization of the Debtor,
such Obligation shall for the purposes of this Guarantee, to the extent that
such payment is or must be rescinded, reclaimed or returned, be deemed to have
continued in existence notwithstanding such application, and this Guarantee
shall continue to be effective or be reinstated, as the case maybe, as to such
Obligation as though such application had not been made.

 

(d)                                 This
Guarantee is absolute and unconditional and shall not be changed or affected by
any representation, oral agreement, act or thing whatsoever, except as herein
provided. This Guarantee sets forth the entire agreement and understanding of
the Guarantor and the Beneficiaries and is intended by the Guarantor to be the
final, complete and exclusive expression of the guarantee agreement between the
Guarantor and the Beneficiaries.

 

ARTICLE 3

LIMITATION

 

3.1                               Limitations on Extent of
Guarantee.

 

It is understood that
while the amount of the Obligations is not limited, if, in any action or
proceeding involving any bankruptcy, insolvency or other law affecting the
rights of creditors generally, this Guarantee would be held or determined to be
void, voidable, ineffective, invalid or unenforceable on account of the amount
of the aggregate liability of the Guarantor under this Guarantee, then,
notwithstanding any other provision of this Guarantee to the contrary, the
aggregate amount of such liability shall, without any further action of the
Guarantor, the Beneficiaries, or any other Person, be automatically limited and
reduced to the highest amount which is valid and enforceable as determined in
such action or proceeding.

 

5

 

ARTICLE 4

SET-OFF

 

4.1                               Set-off.

 

Upon any of the Obligations becoming due and payable
(whether at the stated maturity, upon demand, by acceleration or otherwise),
each Beneficiary is hereby irrevocably authorized at any time and from time to
time without prior notice to the Guarantor, any such prior notice being
expressly waived to the extent permitted by law by the Guarantor, to set-off
and appropriate and apply any and all deposits (general or special, time or
demand, provisional or final), in any currency, and any other credits,
indebtedness or claims, in any currency, in each case whether direct or
indirect or contingent or matured or unmatured, at any time held or owing by
such Beneficiary to or for the credit or the account of the Guarantor, or any
part thereof, in such amounts as such Beneficiary may elect, against and on
account of the obligations and liabilities of the Guarantor to such Beneficiary
hereunder and any and all claims of every nature and description of such
Beneficiary against the Guarantor, in any currency, whether arising hereunder
or otherwise, as such Beneficiary may elect, whether or not such Beneficiary
has made any demand for payment and although such obligations, liabilities and
claims may be contingent or unmatured. In the event any Beneficiary effects
such a set off, appropriation or application, it shall promptly give the
Guarantor notice thereof.

 

ARTICLE 5

SUBROGATION

 

5.1                               Subrogation.

 

Notwithstanding any
payment or payments made by the Guarantor hereunder or any set off,
appropriation or application of funds or collateral of the Guarantor by a
Beneficiary, the Guarantor shall not be entitled to be subrogated to any of the
rights of such Beneficiary against the Debtor or any collateral security or
guarantee or right of offset held by such Beneficiary for the payment of the
Obligations, nor shall the Guarantor seek any reimbursement, exoneration,
contribution or indemnity from the Debtor in respect of payments made by the
Guarantor hereunder, in each case, until all Obligations have been indefeasibly
paid in full in cash and all Commitments have terminated.

 

ARTICLE 6

REPRESENTATIONS AND
WARRANTIES.

 

6.1                               Representations and
Warranties.

 

The Guarantor represents
and warrants to each of the Beneficiaries that:

 

(a)                                  the
Guarantor is a corporation incorporated under the laws of New Brunswick, duly
organized, validly existing, and in good standing under the laws of the
Province of New Brunswick, and has the corporate power and authority and the
legal right to own and use its property, to lease the property it uses as
lessee and to conduct the business in which it is currently engaged;

 

6

 

(b)                                 the
Guarantor has the corporate power and authority and the legal right to execute
and deliver, and to perform its obligations under, this Guarantee, and has
taken all necessary corporate action to authorize its execution, delivery and
performance of this Guarantee;

 

(c)                                  this
Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles;

 

(d)                                 the
execution, delivery and performance of this Guarantee will not violate any
provision of any requirement of law or contractual obligation of the Guarantor
and will not result in or require the creation or imposition of any Lien on any
of the properties, revenues or assets of the Guarantor pursuant to the
provisions of any contractual obligation of the Guarantor or any requirement of
law;

 

(e)                                  no
consent or authorization of, filing with, or other act by or in respect of, any
arbitrator or governmental authority and no consent of any other Person
(including, without limitation, any shareholder or creditor of the Guarantor)
is required in connection with the execution, delivery, performance, validity
or enforceability of this Guarantee; and

 

(f)                                    the
execution, delivery and performance of this Guarantee will not violate any
provision of any applicable law or regulation or of any order, judgment, writ,
award or decree of any court, arbitrator or governmental authority, domestic or
foreign, or of the constating documents, or resolutions, or shareholder
agreements of or pertaining to the Guarantor or of any securities issued by the
Guarantor or of any material mortgage, indenture, lease, contract, or other
agreement, instrument or undertaking to which the Guarantor is a party.

 

ARTICLE 7

INDEMNITY

 

7.1                                 Indemnity.

 

(a)                                  The
Guarantor agrees to indemnify, reimburse and hold each Beneficiary and their
respective successors, assigns, affiliates, directors, officers, employees,
legal counsel, agents and servants (hereinafter in this Article 7 referred
to individually as “Indemnitee”,
and collectively as “Indemnitees”)
harmless from any and all losses, liabilities, obligations, damages, injuries,
penalties, claims, demands, actions, suits, judgments and any and all reasonable
costs and expenses of legal counsel (including reasonable fees and expenses of
legal counsel or (but not as well as) the reasonable allocated costs of staff
counsel) (for the purposes of this Article 7 the foregoing are
collectively referred to as “Expenses”)
of whatsoever kind and nature imposed on, asserted against or incurred by any
of the Indemnitees in any way relating to or arising out of this Guarantee or
the documents executed in connection herewith or in any other way connected
with 

 

7

 

the administration of the
transactions contemplated hereby or the enforcement of any of the terms hereof;
provided, however, that no Indemnitee shall have the right to be
indemnified hereunder for a violation of law or for its own gross negligence or
willful misconduct The Guarantor agrees that upon written notice by any
Indemnitee of the assertion of such a liability, obligation, damage, injury,
penalty, claim, demand, action, judgment or suit, the Guarantor shall assume
full responsibility for the defence thereof. If any action, suit or proceeding
arising from any of the foregoing is brought against any Beneficiary or any
other Indemnitee, the Guarantor will, if requested by any Beneficiary or any
other Indemnitee, resist and defend such action, suit or proceeding to cause
the same to be resisted and defended by legal counsel reasonably satisfactory
to the Person or Persons indemnified or intended to be indemnified. Each
Indemnitee shall, unless any beneficiary or other Indemnitee has made the
request described in the preceding sentence and such request has been complied
with, have the right to employ its own legal counsel (or (but not as well as)
staff counsel) to investigate and control the defence of any matter covered by
such indemnity and the reasonable fees and expenses of such counsel shall be at
the expense of the Guarantor but in no event shall the Guarantor be obligated
to pay the fees and expenses of more than one counsel. If the Guarantor shall
fail to do any act or thing which it has covenanted to do hereunder or any
representation or warranty on the part of the Guarantor contained herein shall
be breached, the Canadian Administrative Agent may (but shall not be obligated
to) do the same or cause it to be done or remedy any such breach, and may
expend its funds for such purpose, and will use its best efforts and give
prompt written notice to the Guarantor that it proposes to take such action.
Any and all amounts expended by the Canadian Administrative Agent shall be
repayable to it by the Guarantor promptly upon the Canadian Administrative
Agent’s demand therefor.

 

(b)                                 Without
limiting the application of Section 7.1(a), the Guarantor agrees to pay,
indemnify and hold each Indemnitee harmless from and against any loss,
reasonable costs, damages and reasonable expenses which such Indemnitee may
suffer, expend or incur in consequence of or growing out of any
misrepresentations by the Guarantor in this Guarantee.

 

(c)                                  If
and to the extent that the obligations of the Guarantor under this
Article 7 are unenforceable for any reason, the Guarantor hereby agrees to
make the maximum contribution to the payment and satisfaction of such
obligations which is permissible under applicable law.

 

(d)                                 The
indemnity obligations of the Guarantor contained in this Article 7 and
Section 8.8 shall continue in full force and effect notwithstanding the
termination of this Guarantee, the discharge of the Guarantor’s other
obligations hereunder, the full payment of all of the Obligations and
notwithstanding the discharge of any or all of the Obligations.

 

8

 

ARTICLE 8

MISCELLANEOUS

 

8.1                               No Waiver.

 

No failure or delay on
the part of any Beneficiary in exercising any right, power or remedy hereunder
shall operate as a waiver hereof, nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. The remedies provided for
herein are cumulative and are not exclusive of any remedies that may be
available to any Beneficiary at law or in equity or otherwise.

 

8.2                               Modifications in Writing.

 

No amendment,
modification, supplement, termination, or waiver of or to any provision of this
Guarantee, nor consent to any departure by the Guarantor herefrom, shall be
effective unless the same shall be in writing and signed by or on behalf of the
Guarantor and the Required Lenders or, to the extent required by
Section 11.08 of the Credit Agreement, with the consent of each of the
Lenders, except that this Guarantee shall automatically terminate and be of no
further force or effect upon the termination and indefeasible payment in full
of all of the Obligations and the termination of the Loan Documents and the
Commitments of the Lenders thereunder. Any amendment, modification or
supplement of or to any provision of this Guarantee, any waiver of any
provision of this Guarantee, and any consent to any departure by the Guarantor
from the terms of any provision of this Guarantee, shall be effective only in
the specific instance and for the specific purpose for which made or given.
Except where notice is specifically required by this Guarantee, no notice to or
demand on the Guarantor hereunder in any case shall entitle the Guarantor to
any other or further notice or demand in similar or other circumstances.

 

8.3                               Notices, etc.

 

Except as otherwise
expressly permitted herein, notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed or sent by fax, as follows:

 

	
  (a)

  	
  if to the Guarantor, at:

  
	
   

  	
  c/o Smurfit-Stone Container Canada Inc.

  
	
   

  	
  630 René Lévesque Blvd. West, Suite 3000

  
	
   

  	
  Montréal, Quebec H3B 3G7

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Smurfit-Stone Container Corporation

  
	
   

  	
  8182 Maryland Avenue

  
	
   

  	
  St. Louis, MO 63105

  
	
   

  	
   

  
	
   

  	
  Attention: Treasurer

  
	
   

  	
  Tel.: (314) 746-1255

  
	
   

  	
  Telecopier: (314) 746-1281

  

 

9

 

	
   

  	
  and to:

  
	
   

  	
   

  
	
   

  	
  Winston & Strawn

  
	
   

  	
  35 West Wacker Drive

  
	
   

  	
  Chicago, IL 60601

  
	
   

  	
   

  
	
   

  	
  Attention: Brian S. Hart, Esq.

  
	
   

  	
  Tel.: (312) 558-5600

  
	
   

  	
  Telecopier: (312) 558-5700

  
	
   

  	
   

  
	
  (b)

  	
  If to the Collateral Agent:

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank Trust Company Americas

  
	
   

  	
  90 Hudson Street, 5th Floor

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
   

  
	
   

  	
  Attention: Helaine Griffin-Williams

  
	
   

  	
   

  
	
   

  	
  Telecopier: (201) 593-2308

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
  (c)

  	
  If to the Canadian Administrative Agent:

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank AG

  
	
   

  	
  222 Bay Street, Suite 1100

  
	
   

  	
  Toronto, Ontario

  
	
   

  	
  Canada, M5K 1E7

  
	
   

  	
   

  
	
   

  	
  Attention: Karyn Curran

  
	
   

  	
  Tel.: (416) 682-8005

  
	
   

  	
  Telecopier: (416) 682-8444

  
	
   

  	
   

  
	
  (d)

  	
  If to any Lender, at its address set forth in the
  Credit Agreement.

  

 

Any party hereto may
change its address or fax number for notices and other communications hereunder
by notice to the other parties hereto. All notices and other communications
given to any party hereto in accordance with the provisions of this Agreement
shall be deemed to have been given on the date of receipt if delivered by hand
or overnight courier service or sent by fax, or on the date five Business Days
after dispatch by certified or registered mail if mailed, in each case
delivered, sent or mailed (properly addressed) to such party as provided in
this Section 8.3.

 

10

 

8.4                               Binding Effect; Assignment.

 

This Guarantee shall be binding upon the Guarantor and
its successors and assigns and shall inure to the benefit of the Beneficiaries
and their respective successors and assigns; provided, however, that the
Guarantor may not assign its rights or obligations hereunder or in connection
herewith or any interest herein (voluntarily, by operation of law or otherwise)
without the prior written consent of the Lenders.

 

8.5                               Costs and Expenses.

 

The Guarantor agrees to
pay all reasonable costs and expenses in connection with the negotiation,
preparation, reproduction, execution and delivery of this Guarantee, any
amendment or modifications of (or supplements to) this Guarantee and any and
all other documents furnished pursuant hereto or thereto or in connection
herewith or therewith, including the reasonable fees and out-of-pocket expenses
of Osler, Hoskin & Harcourt LLP, special Canadian counsel to the
Canadian Administrative Agent and the Collateral Agent, and any local counsel
retained by the Canadian Administrative Agent or the Collateral Agent or
relative hereto or thereto or (but not as well as) the reasonable allocated
costs of staff counsel, as well as the reasonable fees and out-of-pocket
expenses of legal counsel or (but not as well as) the reasonable allocated
costs of staff counsel, independent public or chartered accountants and other
outside experts retained by the Canadian Administrative Agent or the Collateral
Agent in connection with the administration of this Guarantee, and all reasonable
costs and expenses (including, without limitation, reasonable legal fees and
expenses or (but not as well as) the reasonable allocated costs of staff
counsel), if any, incurred by the Canadian Administrative Agent or the
Collateral Agent or any other Beneficiary in connection with the enforcement of
this Guarantee or any other agreement, instrument or document furnished
pursuant hereto or in connection herewith.

 

8.6                               Consent to Jurisdiction.

 

The Guarantor hereby
irrevocably submits to the non-exclusive jurisdiction of any New Brunswick
court in any action or proceeding arising out of or relating to this Guarantee
or the other Loan Documents to which the Guarantor is party, and the Guarantor
hereby irrevocably agrees that all claims in respect of such action or
proceeding may be heard and determined in any such New Brunswick court and the
Guarantor irrevocably waives any objection, including, without limitation, any
objection to the laying of venue or based on the grounds of forum non conveniens, which it may now or
hereafter have to the bringing of any such action or proceeding in such
jurisdiction. To the extent permitted by applicable law, as a method of
service, the Guarantor irrevocably consents to the service of any and all
process in any such action or proceeding brought in any court in or of New
Brunswick by the delivery of copies of such process to the Guarantor at its
address specified in Section 8.3(a) hereof or by certified or
registered mail directed to such address.

 

8.7                               Governing Law.

 

This Agreement shall be
governed by, and construed in accordance with, the laws of New Brunswick and
the federal laws of Canada applicable therein.

 

11

 

8.8                               Taxes.

 

All payments by the
Guarantor under this Guarantee shall be made without set-off or counterclaim
and in such amounts as may be necessary in order that all such payments (after
deduction or withholding for or on account of any present or future taxes
(withholding, goods and services, sales, harmonized sales taxes or otherwise),
levies, imposts, deductions, duties or other charges of whatsoever nature
imposed by any government or any political subdivision or taxing authority
thereof, and all liabilities with respect thereto, other than any branch
profits tax or tax imposed on or measured by the net income of a Beneficiary
pursuant to the income tax laws of Canada (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities, collectively the “Taxes”) or “Other Taxes” (as defined in the
Credit Agreement)) shall not be less than the amounts otherwise specified to be
paid under this Guarantee. If any Taxes are required to be deducted from or in
respect of any sum payable hereunder to any Beneficiary, (i) the sum
payable shall be increased by the amount necessary so that after making all
required deductions such Beneficiary shall receive an amount equal to the sum
it would have received had no such deductions been made, (ii) the
Guarantor shall make such deductions, and (iii) the Guarantor shall pay
the full amount deducted to the relevant taxing authority or other Governmental
Authority in accordance with applicable law. The Guarantor will indemnify each
Beneficiary for the full amount of Taxes or Other Taxes (including any Taxes or
Other Taxes on amounts payable under this Section 8.8) paid by such
Beneficiary, and any liability (including penalties, interest and reasonable
expenses) arising therefrom or with respect thereto, whether or not such Taxes
or Other Taxes were correctly or legally asserted by the relevant taxing
authority or other Governmental Authority. Such indemnification shall be made
within 30 days after the date any Beneficiary makes written demand therefor
(which demand shall identify the nature and amount of Taxes or Other Taxes for
which indemnification is being sought and shall include a copy of the relevant
portion of any written assessment from the relevant taxing authority demanding
payment of such Taxes or Other Taxes, unless such Beneficiary determines, in its
sole discretion, that such portion of any such assessment is confidential). A
certificate as to any additional amount payable to a Beneficiary under this
Section submitted to the Guarantor by such Beneficiary shall show in
reasonable detail the amount payable and the calculations used to determine in
good faith such amount, and shall, absent manifest error, be final, conclusive
and binding upon all parties hereto, With respect to each deduction or
withholding for or on account of any Taxes or Other Taxes, the Guarantor shall
promptly furnish to each Beneficiary such certificates, receipts and other
documents evidencing payment thereof or as otherwise maybe reasonably required
(in the judgment of such Beneficiary) to establish any tax credit to which such
Beneficiary may be entitled.

 

8.9                               Payments.

 

All payments (including
prepayments) to be made by the Guarantor on account of the Obligations shall be
made to the Canadian Administrative Agent or the Collateral Agent (as set forth
in the Credit Agreement) in the currency in which such Obligations are
denominated and in immediately available funds. All payments (including
prepayments) received by the Canadian Administrative Agent or the Collateral
Agent (as set forth in the Credit Agreement) on account of the Obligations
shall be deemed made, and shall be distributed by the Canadian Administrative
Agent or the Collateral Agent (as set forth in the Credit Agreement) to the 

 

12

 

applicable Lenders,
ratably according to the amount of principal and interest due and owing to such
Lenders under the Credit Agreement at the time such payment is received.

 

8.10                        Currency Conversion.

 

Without in any way
limiting the effect or application of the Credit Agreement, the Guarantor
acknowledges and agrees that Section 11.18 of the Credit Agreement shall
apply to any judgment currency conversion required hereunder or under any other
Loan Document to which the Guarantor is a party.

 

8.11                        Severability of Provisions.

 

Any provision of this
Guarantee which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

 

8.12                        Headings.

 

The Section headings
used in this Guarantee are for convenience of reference only and shall not
affect the construction of this Guarantee.

 

[signature page follows]

 

13

 

IN WITNESS WHEREOF, the Guarantor has caused this
Guarantee to be duly executed and delivered by its proper and duly authorized
officer as of the date first written above.

 

	
   

  	
  MBI LIMITED/LIMITÉE, in its capacity as general
  partner of SMURFIT-MBI, as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS, as
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

14

 

Execution

 

FRANCOBEC
COMPANY GUARANTEE AGREEMENT

 

This FRANCOBEC COMPANY
GUARANTEE AGREEMENT (as amended, restated, supplemented or otherwise modified
from time to time, this “Guarantee”),
dated as of November 1, 2004, is made by Francobec Company, a corporation
incorporated under the laws of the Province of Nova Scotia (the “Guarantor”), in favour of DEUTSCHE
BANK TRUST COMPANY AMERICAS, a New York banking corporation, for the benefit of
each of the Beneficiaries (as defined below). Unless otherwise defined herein,
all capitalized terms used as defined terms herein shall have the meanings
ascribed to them in the Credit Agreement (defined below).

 

RECITALS:

 

A.                                   Smurfit-Stone Container Corporation, a
Delaware corporation, Smurfit-Stone Container Enterprises, Inc., a
Delaware Corporation, Smurfit-Stone Container Canada Inc., a corporation
continued under the Companies Act (Nova Scotia), (“SSC Canada” or “Debtor”),
the Lenders, JPMorgan Chase Bank, a New York banking corporation, as Senior
Agent, Deposit Account Agent and Deposit Funded Facility Facing Agent, Deutsche
Bank Trust Company Americas, a New York banking corporation, as Senior Agent,
Administrative Agent, Collateral Agent, Swingline Lender and Revolving Facility
Facing Agent and Deutsche Bank AG, an authorized foreign bank permitted to
carry on business in Canada and listed in Schedule III of the Bank Act
(Canada), as Canadian Administrative Agent and as Revolving (Canadian) Facility
Facing Agent, have entered into the Credit Agreement dated as of November 1,
2004, and as from time to time amended, supplemented, restated, or otherwise
modified, the “Credit Agreement”),
pursuant to which the Lenders have agreed to make term and/or revolving loans
and the Revolving Facility Facing Agent and the Revolving (Canadian) Facility
Facing Agent have agreed to issue letters of credit to Smurfit-Stone Container
Enterprises, Inc. and the Debtor as set forth therein.

 

B.                                     Pursuant to Section 6.09 of the
Credit Agreement, the Guarantor is required to guarantee the Debtor’s
obligations under the Credit Agreement and the other Canadian Loan Documents,
and the Guarantor is entering into this Guarantee to satisfy such requirement.

 

C.                                     The Guarantor will derive substantial
direct and indirect benefits and advantages from the continued financial
accommodations to the Debtor under the Credit Agreement, and it will be to the
Guarantor’s direct interest and economic benefit to guarantee the obligations
of the Debtor under the Credit Agreement in order to allow the Debtor to continue
to procure said financial accommodations from the Beneficiaries. The Guarantor
hereby acknowledges the value of such benefits.

 

NOW
THEREFORE, in
consideration of the premises and for other good and valuable consideration)
the receipt and sufficiency of which are hereby acknowledged, the Guarantor
hereby agrees as follows:

 

Francobec
Guarantee

 

 

ARTICLE 1

DEFINITIONS

 

1.1                               Definitions.

 

As used in this
Guarantee, and unless the context requires a different meaning, the following
terms have the meanings indicated below. Capitalized terms used but not defined
herein have the meanings assigned in the Credit Agreement.

 

(a)                                  “Administrative Agent” has the
meaning assigned thereto in the Recitals to this Guarantee.

 

(b)                                 “Beneficiaries” means, at any
time the determination thereof is to be made, the Tranche C Lenders, the
Revolving (Canadian) Lenders, the Canadian Administrative Agent, each
Incremental Lender providing any Incremental Loans to the Debtor, the
Collateral Agent, the Revolving (Canadian) Facility Facing Agent, each
counterparty to any Swap Agreement with a Loan Party the obligations under
which constitute Canadian Obligations, each Lender or affiliate of a Lender
which is party to any Cash Management Agreement (as hereinafter defined), the
obligations under which constitute Canadian Obligations, the Beneficiaries of
each indemnification obligation undertaken by the Guarantor, or a Canadian
Subsidiary or a subsidiary of a Canadian Subsidiary under any Canadian Loan
Document and any other holder of any Canadian Obligation.

 

(c)                                  “Canadian Administrative Agent” has the
meaning assigned thereto in the Recitals to this Guarantee.

 

(d)                                 “Canadian Loan Document” means a Loan
Document (as defined in the Credit Agreement) to which the Canadian Loan
Parties are party.

 

(e)                                  “Canadian Loan Parties” means the
Debtor, and the Canadian Subsidiaries (as defined in the Credit Agreement) that
are Guarantors (as defined in the Credit Agreement).

 

(f)                                    “Collateral Agent” has the
meaning assigned thereto in the recitals to this Guarantee.

 

(g)                                 “Credit Agreement” has the
meaning assigned thereto in the Recitals to this Guarantee.

 

(h)                                 “Debtor” means SSC Canada together with
the successors (by amalgamation, liquidation, winding-up or otherwise) and
assigns thereof.

 

(i)                                     “Guarantor” has the
meaning assigned thereto in the introduction to this Guarantee.

 

(j)                                     “Guarantee” has the
meaning assigned thereto in the introduction of this Guarantee.

 

2

 

(k)                                  “Obligations” means
(i) all “Canadian Obligations” (as defined in the Credit Agreement),
(ii) the prompt and complete performance when due of the covenants and
obligations to be performed by the Canadian Loan Parties under the Canadian
Loan Documents and the Swap Agreements and the agreements between any of the
Canadian Loan Parties and any Lender or any Affiliate of a Lender in respect of
cash management services (collectively, “Cash Management
Agreements”) whether such Cash Management
Agreement is now in existence or hereafter arising.

 

(l)                                     “Taxes” has the meaning assigned
thereto in Section 8.8 of this Guarantee.

 

ARTICLE 2

GUARANTEE

 

2.1                               Guarantee of Obligations.

 

(a)                                  The
Guarantor hereby unconditionally and irrevocably guarantees to each of the
Beneficiaries, the due, prompt and complete payment by the Debtor of, and the
due, prompt and faithful performance of and compliance with, all of the
Obligations, when and as the same shall become due and payable, whether upon
stated maturity, by acceleration or otherwise; provided, however,
that the obligations of the Guarantor under this Article 2 shall be
limited to the extent set forth in Article 3 hereof. If the Debtor shall
fail duly and punctually to make any such payment in full, the Guarantor hereby
agrees duly and punctually to make such payment, subject to the limitations set
forth in Article 3 hereof, when and as the same shall become due and
payable, whether upon stated maturity, by acceleration or otherwise.

 

(b)                                 The
obligations of the Guarantor hereunder shall be continuing, absolute and
unconditional under any and all circumstances and not subject to any reduction,
limitation, impairment, termination, defence (other than indefeasible payment
in full), set-off, counterclaim, cross-claim or recoupment whatsoever (all of
which are hereby expressly, absolutely, unconditionally and irrevocably waived
by it to the extent permitted by law), whether by reason of any claim of any
waiver, release, surrender, alteration or compromise, or by reason of any
liability of any Beneficiary at any time owing to the Guarantor, the Debtor, or
any Subsidiary of the Debtor, or the obligations of any other Person relating
to this Guarantee or the obligations of the Guarantor hereunder. Without
limiting the foregoing, the Guarantor’s obligations hereunder shall not be
reduced, terminated or otherwise affected by: (i) any insolvency,
bankruptcy, reorganization or dissolution, by any proceeding in respect of any
thereof, of the Debtor; (ii) the genuineness, validity, regularity or
enforceability of any agreement, instrument or document evidencing or securing
the Obligations or any other agreement, instrument or document or the extension
or renewal thereof, in whole or in part, with or without notice to or assent
from the Debtor or the Guarantor; (iii) any rescission, compromise,
alteration, amendment, modification, extension, renewal, release, change,
waiver, consent or other action in respect of any of the terms, provisions,
covenants or 

 

3

 

conditions contained in any
agreement, instrument or document evidencing or securing the Obligations or in
any other agreement, instrument or document; (iv) the absence of notice or
the absence of or any delay in any action to enforce any obligation or to
exercise any right or remedy against the Debtor or the Guarantor, whether under
any agreement, instrument or document evidencing or securing the Obligations or
under any other agreement, instrument or document, or any indulgence, extension
or waiver granted to or compromise with the Debtor or the Guarantor, or any
action or proceeding taken or not taken with respect to or by or on behalf of
the Debtor or the Guarantor, or the holder of any agreement, instrument or
document evidencing or securing the Obligations; (v) any default, failure
or delay in performance of any obligation, covenant, duty, representation,
warranty or agreement contained in any agreement, instrument or document
evidencing or securing the Obligations or in any other agreement, instrument or
document, or arising pursuant to law; (vi) any act or thing or omission to
do or delay in doing any act or thing which might in any manner result in any
lack of proper authorization or any invalid execution of any agreement,
instrument or document evidencing or securing the Obligations or under any
other agreement, instrument or document; (vii) any assumption by any
Person of any obligation under any agreement, instrument or document evidencing
or securing the Obligations or under any other agreement, instrument or document;
(viii) any event of force majeure; (ix) any release or substitution
of any Collateral for the payment of the Obligations or obligations under any
other agreement, instrument or document, in whole or in part, with or without
notice to or assent from the Debtor or the Guarantor; (x) any other
circumstances which might constitute a legal or equitable discharge or defence
of a surety or guarantor; (xi) whether a security interest in any Collateral
shall have been perfected or shall continue to be perfected, or whether any
Collateral shall be impaired in any manner, or whether any steps shall have
been taken to enforce rights against the Debtor or the Guarantor or any
Collateral; or (xii) any consolidation, amalgamation, merger, or other change
in the capital structure of the Debtor or the Guarantor.

 

The Guarantor hereby:
(i) waives, to the extent permitted by law, diligence, presentment, demand
of payment, filing of claims with a court in the event of the merger,
amalgamation or bankruptcy of the Debtor, any right to require a proceeding
first against the Debtor or to realize on any Collateral, protest, notice and
all demands whatsoever, with respect to the Obligations; (ii) agrees that
its obligations hereunder constitute guarantees of payment and not of collection
and are not in any way conditional or contingent upon any attempt to collect
from or enforce against the Debtor or upon any other condition or contingency;
(iii) acknowledges that this Guarantee and the Guarantor’s obligations
under this Guarantee are and shall at all times continue to be absolute and
unconditional in all respects, and shall at all times be valid and enforceable
irrespective of any other agreements or circumstances of any nature whatsoever
which might otherwise constitute a defence to this Guarantee and the
obligations of the Guarantor under this Guarantee or the obligations of any
other Person (including, without limitation, the Debtor) relating to this
Guarantee or the obligations of the Guarantor hereunder or otherwise with
respect to the Loans and other financial accommodations made to the Debtor;
(iv) acknowledges that no oral or other agreements, understandings,
representations or warranties 

 

4

 

exist with respect to this Guarantee or with respect to the obligations
of the Guarantor hereunder, except as specifically set forth in this Guarantee;
(v) acknowledges that any agreement, instrument or document evidencing or
securing the Obligations may be transferred, but only in accordance with the
terms of the Credit Agreement, and that the benefit of its obligations
hereunder shall extend to each holder of any agreement, instrument or document
evidencing or securing the Obligations automatically and without notice to it;
and (vi) covenants that this Guarantee will not be discharged except by
complete payment and performance of the obligations contained in the
agreements, instruments and documents evidencing or securing the Obligations
and this Guarantee.

 

(c)                                  The
Guarantor further agrees that if at any time all or any part of any payment
theretofore applied by any Beneficiary to any Obligation is, or must be,
rescinded or returned by such Beneficiary for any reason whatsoever, including,
without limitation, the insolvency, bankruptcy or reorganization of the Debtor,
such Obligation shall for the purposes of this Guarantee, to the extent that
such payment is or must be rescinded, reclaimed or returned, be deemed to have
continued in existence notwithstanding such application, and this Guarantee shall
continue to be effective or be reinstated, as the case may be, as to such
Obligation as though such application had not been made.

 

(d)                                 This
Guarantee is absolute and unconditional and shall not be changed or affected by
any representation, oral agreement, act or thing whatsoever, except as herein
provided. This Guarantee sets forth the entire agreement and understanding of
the Guarantor and the Beneficiaries and is intended by the Guarantor to be the
final, complete and exclusive expression of the guarantee agreement between the
Guarantor and the Beneficiaries.

 

ARTICLE 3

LIMITATION

 

3.1                               Limitations on Extent of
Guarantee.

 

It is understood that
while the amount of the Obligations is not limited, if, in any action or
proceeding involving any bankruptcy, insolvency or other law affecting the
rights of creditors generally, this Guarantee would be held or determined to be
void, voidable, ineffective, invalid or unenforceable on account of the amount
of the aggregate liability of the Guarantor under this Guarantee, then,
notwithstanding any other provision of this Guarantee to the contrary, the
aggregate amount of such liability shall, without any further action of the
Guarantor, the Beneficiaries, or any other Person, be automatically limited and
reduced to the highest amount which is valid and enforceable as determined in
such action or proceeding.

 

5

 

ARTICLE 4

SET-OFF

 

4.1                               Set-off.

 

Upon any of the Obligations becoming due and payable
(whether at the stated maturity, upon demand, by acceleration or otherwise),
each Beneficiary is hereby irrevocably authorized at any time and from time to
time without prior notice to the Guarantor, any such prior notice being
expressly waived to the extent permitted bylaw by the Guarantor, to set-off and
appropriate and apply any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect or contingent
or matured or unmatured, at any time held or owing by such Beneficiary to or
for the credit or the account of the Guarantor, or any part thereof, in such
amounts as such Beneficiary may elect, against and on account of the
obligations and liabilities of the Guarantor to such Beneficiary hereunder and
any and all claims of every nature and description of such Beneficiary against
the Guarantor, in any currency, whether arising hereunder or otherwise, as such
Beneficiary may elect, whether or not such Beneficiary has made any demand for
payment and although such obligations, liabilities and claims may be contingent
or unmatured. In the event any Beneficiary effects such a set off,
appropriation or application, it shall promptly give the Guarantor notice
thereof.

 

ARTICLE 5

SUBROGATION

 

5.1                               Subrogation.

 

Notwithstanding any
payment or payments made by the Guarantor hereunder or any set off,
appropriation or application of funds or collateral of the Guarantor by a
Beneficiary, the Guarantor shall not be entitled to be subrogated to any of the
rights of such Beneficiary against the Debtor or any collateral security or
guarantee or right of offset held by such Beneficiary for the payment of the
Obligations, nor shall the Guarantor seek any reimbursement, exoneration,
contribution or indemnity from the Debtor in respect of payments made by the
Guarantor hereunder, in each case, until all Obligations have been indefeasibly
paid in full in cash and all Commitments have terminated.

 

ARTICLE 6

REPRESENTATIONS AND
WARRANTIES

 

6.1                               Representations and
Warranties.

 

The Guarantor represents
and warrants to each of the Beneficiaries that:

 

(a)                                  the
Guarantor is a corporation incorporated under the laws of Nova Scotia, duly
organized, validly existing, and in good standing under the laws of the
Province of Nova Scotia, and has the corporate power and authority and the
legal right to own and use its property, to lease the property it uses as
lessee and to conduct the business in which it is currently engaged;

 

6

 

(b)                                 the
Guarantor has the corporate power and authority and the legal right to execute
and deliver, and to perform its obligations under, this Guarantee, and has
taken all necessary corporate action to authorize its execution, delivery and
performance of this Guarantee;

 

(c)                                  this
Guarantee constitutes a legal, valid and binding obligation of the Guarantor
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles;

 

(d)                                 the
execution, delivery and performance of this Guarantee will not violate any
provision of any requirement of law or contractual obligation of the Guarantor
and will not result in or require the creation or imposition of any Lien on any
of the properties, revenues or assets of the Guarantor pursuant to the
provisions of any contractual obligation of the Guarantor or any requirement of
law;

 

(e)                                  no
consent or authorization of, filing with, or other act by or in respect of, any
arbitrator or governmental authority and no consent of any other Person
(including, without limitation, any shareholder or creditor of the Guarantor)
is required in connection with the execution, delivery, performance, validity
or enforceability of this Guarantee; and

 

(f)                                    the
execution, delivery and performance of this Guarantee will not violate any
provision of any applicable law or regulation or of any order, judgment, writ,
award or decree of any court, arbitrator or governmental authority, domestic or
foreign, or of the constating documents, or resolutions, or shareholder
agreements of or pertaining to the Guarantor or of any securities issued by the
Guarantor or of any material mortgage, indenture, lease, contract, or other
agreement, instrument or undertaking to which the Guarantor is a party.

 

ARTICLE 7

INDEMNITY

 

7.1                               Indemnity.

 

(a)                                  The
Guarantor agrees to indemnify, reimburse and hold each Beneficiary and their
respective successors, assigns, affiliates, directors, officers, employees,
legal counsel, agents and servants (hereinafter in this Article 7 referred
to individually as “Indemnitee”,
and collectively as “Indemnitees”)
harmless from any and all losses, liabilities, obligations, damages, injuries,
penalties, claims, demands, actions, suits, judgments and any and all
reasonable costs and expenses of legal counsel (including reasonable fees and
expenses of legal counsel or (but not as well as) the reasonable allocated
costs of staff counsel) (for the purposes of this Article 7 the foregoing
are collectively referred to as “Expenses”)
of whatsoever kind and nature imposed on, asserted against or incurred by any
of the Indemnitees in any way relating to or arising out of this Guarantee or
the documents executed in connection herewith or in any other way connected
with

 

7

 

the administration of the
transactions contemplated hereby or the enforcement of any of the terms hereof;
provided, however, that no Indemnitee shall have the right to be
indemnified hereunder for a violation of law or for its own gross negligence or
willful misconduct. The Guarantor agrees that upon written notice by any
Indemnitee of the assertion of such a liability, obligation, damage, injury,
penalty, claim, demand, action, judgment or suit, the Guarantor shall assume
full responsibility for the defence thereof. If any action, suit or proceeding
arising from any of the foregoing is brought against any Beneficiary or any
other Indemnitee, the Guarantor will, if requested by any Beneficiary or any
other Indemnitee, resist and defend such action, suit or proceeding to cause
the same to be resisted and defended by legal counsel reasonably satisfactory
to the Person or Persons indemnified or intended to be indemnified. Each
Indemnitee shall, unless any beneficiary or other Indemnitee has made the
request described in the preceding sentence and such request has been complied
with, have the right to employ its own legal counsel (or (but not as well as)
staff counsel) to investigate and control the defence of any matter covered by
such indemnity and the reasonable fees and expenses of such counsel shall be at
the expense of the Guarantor but in no event shall the Guarantor be obligated
to pay the fees and expenses of more than one counsel. If the Guarantor shall
fail to do any act or thing which it has covenanted to do hereunder or any
representation or warranty on the part of the Guarantor contained herein shall
be breached, the Canadian Administrative Agent may (but shall not be obligated
to) do the same or cause it to be done or remedy any such breach, and may
expend its funds for such purpose, and will use its best efforts and give prompt
written notice to the Guarantor that it proposes to take such action. Any and
all amounts expended by the Canadian Administrative Agent shall be repayable to
it by the Guarantor promptly upon the Canadian Administrative Agent’s demand
therefor.

 

(b)                                 Without
limiting the application of Section 7.1(a), the Guarantor agrees to pay,
indemnify and hold each Indemnitee harmless from and against any loss,
reasonable costs, damages and reasonable expenses which such Indemnitee may
suffer, expend or incur in consequence of or growing out of any
misrepresentations by the Guarantor in this Guarantee.

 

(c)                                  If
and to the extent that the obligations of the Guarantor under this
Article 7 are unenforceable for any reason, the Guarantor hereby agrees to
make the maximum contribution to the payment and satisfaction of such
obligations which is permissible under applicable law.

 

(d)                                 The
indemnity obligations of the Guarantor contained in this Article 7 and
Section 8.8 shall continue in fill force and effect notwithstanding the
termination of this Guarantee, the discharge of the Guarantor’s other
obligations hereunder, the full payment of all of the Obligations and
notwithstanding the discharge of any or all of the Obligations.

 

8

 

ARTICLE 8

MISCELLANEOUS

 

8.1                               No Waiver.

 

No failure or delay on
the part of any Beneficiary in exercising any right, power or remedy hereunder
shall operate as a waiver hereof, nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy. The remedies provided for
herein are cumulative and are not exclusive of any remedies that may be
available to any Beneficiary at law or in equity or otherwise.

 

8.2                               Modifications in Writing.

 

No amendment,
modification, supplement, termination, or waiver of or to any provision of this
Guarantee, nor consent to any departure by the Guarantor herefrom, shall be
effective unless the same shall be in writing and signed by or on behalf of the
Guarantor and the Required Lenders or, to the extent required by
Section 11.08 of the Credit Agreement, with the consent of each of the
Lenders, except that this Guarantee shall automatically terminate and be of no
further force or effect upon the termination and indefeasible payment in full
of all of the Obligations and the termination of the Loan Documents and the
Commitments of the Lenders thereunder. Any amendment, modification or
supplement of or to any provision of this Guarantee, any waiver of any
provision of this Guarantee, and any consent to any departure by the Guarantor
from the terms of any provision of this Guarantee, shall be effective only in
the specific instance and for the specific purpose for which made or given.
Except where notice is specifically required by this Guarantee, no notice to or
demand on the Guarantor hereunder in any case shall entitle the Guarantor to
any other or further notice or demand in similar or other circumstances.

 

8.3                               Notices, etc.

 

Except as otherwise
expressly permitted herein, notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed or sent by fax, as follows:

 

	
  (a)

  	
  if to the Guarantor, at:

  
	
   

  	
   

  
	
   

  	
  c/o Smurfit-Stone Container Canada Inc.

  
	
   

  	
  630 René Lévesque Blvd. West, Suite 3000

  
	
   

  	
  Montréal, Quebec H3B 3G7

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Smurfit-Stone Container Corporation

  
	
   

  	
  8182 Maryland Avenue

  
	
   

  	
  St. Louis, MO 63105

  
	
   

  	
   

  
	
   

  	
  Attention: 
  Treasurer

  
	
   

  	
  Tel.: 
  (314)746-1255

  
	
   

  	
  Telecopier: 
  (314) 746-1281

  

 

9

 

	
   

  	
  and to:

  
	
   

  	
   

  
	
   

  	
  Winston & Strawn

  
	
   

  	
  35 West Wacker Drive

  
	
   

  	
  Chicago, IL 60601

  
	
   

  	
   

  
	
   

  	
  Attention: 
  Brian S. Hart, Esq.

  
	
   

  	
  Tel.:  (312)
  558-5600

  
	
   

  	
  Telecopier: 
  (312) 558-5700

  
	
   

  	
   

  
	
  (b)

  	
  If to the Collateral Agent:

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank Trust Company Americas

  
	
   

  	
  90 Hudson Street, 5th Floor

  
	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
   

  
	
   

  	
  Attention: 
  Helaine Griffin-Williams

  
	
   

  	
   

  
	
   

  	
  Telecopier: 
  (201) 593-2308

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
  (c)

  	
  If to the Canadian Administrative Agent:

  
	
   

  	
   

  
	
   

  	
  Deutsche Bank AG

  
	
   

  	
  222 Bay Street, Suite 1100

  
	
   

  	
  Toronto, Ontario

  
	
   

  	
  Canada, M5K 1E7

  
	
   

  	
   

  
	
   

  	
  Attention: 
  Karyn Curran

  
	
   

  	
  Tel.:  (416)
  682-8005

  
	
   

  	
  Telecopier: 
  (416) 682-8444

  
	
   

  	
   

  
	
  (d)

  	
  If to any Lender, at its address set forth in the
  Credit Agreement.

  

 

Any party hereto may
change its address or fax number for notices and other communications hereunder
by notice to the other parties hereto. All notices and other communications
given to any party hereto in accordance with the provisions of this Agreement
shall be deemed to have been given on the date of receipt if delivered by hand
or overnight courier service or sent by fax, or on the date five Business Days
after dispatch by certified or registered mail if mailed, in each case
delivered, sent or mailed (properly addressed) to such party as provided in
this Section 8.3.

 

10

 

8.4                               Binding Effect; Assignment.

 

This Guarantee shall be binding upon the Guarantor and
its successors and assigns and shall inure to the benefit of the Beneficiaries
and their respective successors and assigns; provided, however,
that the Guarantor may not assign its rights or obligations hereunder or in
connection herewith or any interest herein (voluntarily, by operation of law or
otherwise) without the prior written consent of the Lenders.

 

8.5                               Costs and Expenses.

 

The Guarantor agrees to
pay all reasonable costs and expenses in connection with the negotiation,
preparation, reproduction, execution and delivery of this Guarantee, any
amendment or modifications of (or supplements to) this Guarantee and any and
all other documents furnished pursuant hereto or thereto or in connection
herewith or therewith, including the reasonable fees and out-of-pocket expenses
of Osler, Hoskin & Harcourt LLP, special Canadian counsel to the
Canadian Administrative Agent and the Collateral Agent, and any local counsel
retained by the Canadian Administrative Agent or the Collateral Agent or
relative hereto or thereto or (but not as well as) the reasonable allocated
costs of staff counsel, as well as the reasonable fees and out-of-pocket
expenses of legal counsel or (but not as well as) the reasonable allocated
costs of staff counsel, independent public or chartered accountants and other
outside experts retained by the Canadian Administrative Agent or the Collateral
Agent in connection with the administration of this Guarantee, and all
reasonable costs and expenses (including, without limitation, reasonable legal
fees and expenses or (but not as well as) the reasonable allocated costs of
staff counsel), if any, incurred by the Canadian Administrative Agent or the
Collateral Agent or any other Beneficiary in connection with the enforcement of
this Guarantee or any other agreement, instrument or document furnished
pursuant hereto or in connection herewith.

 

8.6                               Consent to Jurisdiction.

 

The Guarantor hereby
irrevocably submits to the non-exclusive jurisdiction of any Nova Scotia court
in any action or proceeding arising out of or relating to this Guarantee or the
other Loan Documents to which the Guarantor is party, and the Guarantor hereby
irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in any such Nova Scotia court and the Guarantor
irrevocably waives any objection, including, without limitation, any objection
to the laying of venue or based on the grounds of forum non conveniens, which
it may now or hereafter have to the bringing of any such action or proceeding
in such jurisdiction. To the extent permitted by applicable law, as a method of
service, the Guarantor irrevocably consents to the service of any and all
process in any such action or proceeding brought in any court in or of Nova
Scotia by the delivery of copies of such process to the Guarantor at its
address specified in Section 8.3(a) hereof or by certified or
registered mail directed to such address.

 

8.7                               Governing Law.

 

This Agreement shall be
governed by, and construed in accordance with, the laws of Nova Scotia and the
federal laws of Canada applicable therein.

 

11

 

8.8                               Taxes.

 

All payments by the
Guarantor under this Guarantee shall be made without set-off or counterclaim
and in such amounts as may be necessary in order that all such payments (after
deduction or withholding for or on account of any present or future taxes
(withholding, goods and services, sales, harmonized sales taxes or otherwise),
levies, imposts, deductions, duties or other charges of whatsoever nature
imposed by any government or any political subdivision or taxing authority
thereof, and all liabilities with respect thereto, other than any branch
profits tax or tax imposed on or measured by the net income of a Beneficiary
pursuant to the income tax laws of Canada (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities, collectively the “Taxes”) or “Other Taxes” (as defined in the
Credit Agreement)) shall not be less than the amounts otherwise specified to be
paid under this Guarantee, If any Taxes are required to be deducted from or in
respect of any sum payable hereunder to any Beneficiary, (i) the sum
payable shall be increased by the amount necessary so that after making all
required deductions such Beneficiary shall receive an amount equal to the sum
it would have received had no such deductions been made, (ii) the
Guarantor shall make such deductions, and (iii) the Guarantor shall pay
the full amount deducted to the relevant taxing authority or other Governmental
Authority in accordance with applicable law. The Guarantor will indemnify each
Beneficiary for the full amount of Taxes or Other Taxes (including any Taxes or
Other Taxes on amounts payable under this Section 8.8) paid by such
Beneficiary, and any liability (including penalties, interest and reasonable
expenses) arising therefrom or with respect thereto, whether or not such Taxes
or Other Taxes were correctly or legally asserted by the relevant taxing
authority or other Governmental Authority. Such indemnification shall be made
within 30 days after the date any Beneficiary makes written demand therefor
(which demand shall identify the nature and amount of Taxes or Other Taxes for
which indemnification is being sought and shall include a copy of the relevant
portion of any written assessment from the relevant taxing authority demanding
payment of such Taxes or Other Taxes, unless such Beneficiary determines, in
its sole discretion, that such portion of any such assessment is confidential).
A certificate as to any additional amount payable to a Beneficiary under this
Section submitted to the Guarantor by such Beneficiary shall show in
reasonable detail the amount payable and the calculations used to determine in
good faith such amount, and shall, absent manifest error, be final, conclusive
and binding upon all parties hereto. With respect to each deduction or
withholding for or on account of any Taxes or Other Taxes, the Guarantor shall
promptly furnish to each Beneficiary such certificates, receipts and other
documents evidencing payment thereof or as otherwise may be reasonably required
(in the judgment of such Beneficiary) to establish any tax credit to which such
Beneficiary may be entitled.

 

8.9                               Payments.

 

All payments (including
prepayments) to be made by the Guarantor on account of the Obligations shall be
made to the Canadian Administrative Agent or the Collateral Agent (as set forth
in the Credit Agreement) in the currency in which such Obligations are
denominated and in immediately available funds. All payments (including
prepayments) received by the Canadian Administrative Agent or the Collateral
Agent (as set forth in the Credit Agreement) on account of the Obligations
shall be deemed made, and shall be distributed by the Canadian Administrative
Agent or the Collateral Agent (as set forth in the Credit Agreement) to the 

 

12

 

applicable Lenders,
ratably according to the amount of principal and interest due and owing to such
Lenders under the Credit Agreement at the time such payment is received.

 

8.10                        Currency Conversion.

 

Without in any way
limiting the effect or application of the Credit Agreement, the Guarantor
acknowledges and agrees that Section 11.18 of the Credit Agreement shall
apply to any judgment currency conversion required hereunder or under any other
Loan Document to which the Guarantor is a party.

 

8.11                        Severability of Provisions.

 

Any provision of this
Guarantee which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or
affecting the validity or enforceability of such provision in any other
jurisdiction.

 

8.12                        Headings.

 

The Section headings
used in this Guarantee are for convenience of reference only and shall not
affect the construction of this Guarantee.

 

[signature page follows]

 

13

 

IN WITNESS WHEREOF, the
Guarantor has caused this Guarantee to be duly executed and delivered by its
proper and duly authorized officer as of the date first written above.

 

	
   

  	
  FRANCOBEC COMPANY, as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS,
  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

14

 

EXHIBIT D

 

 

 

GUARANTEE AND COLLATERAL AGREEMENT (U.S.)

 

dated as of

 

November 1, 2004,

 

among

 

SMURFIT-STONE CONTAINER CORPORATION,

 

SMURFIT-STONE CONTAINER ENTERPRISES, INC.,

 

THE OTHER SUBSIDIARIES OF SMURFIT-STONE CONTAINER CORPORATION

PARTIES HERETO

 

and

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

 

as Collateral Agent

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  
	
   

  	
   

  
	
  Definitions

  
	
   

  	
   

  
	
  SECTION 1.01.
  Credit Agreement

  	
  1

  
	
  SECTION 1.02.
  Other Defined Terms

  	
  1

  
	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  
	
  Guarantee

  
	
   

  	
   

  
	
  SECTION 2.01.
  Guarantee

  	
  5

  
	
  SECTION 2.02.
  Guarantee of Payment

  	
  5

  
	
  SECTION 2.03.
  No Limitations

  	
  5

  
	
  SECTION 2.04.
  Reinstatement

  	
  6

  
	
  SECTION 2.05.
  Agreement To Pay; Subrogation

  	
  6

  
	
  SECTION 2.06.
  Information

  	
  6

  
	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  
	
  Pledge of Securities

  
	
   

  	
   

  
	
  SECTION 3.01.
  Pledge

  	
  7

  
	
  SECTION 3.02.
  Delivery of the Pledged Collateral

  	
  8

  
	
  SECTION 3.03.
  Representations, Warranties and Covenants

  	
  8

  
	
  SECTION 3.04.
  Certification of Limited Liability Company and Limited Partnership Interests

  	
  9

  
	
  SECTION 3.05.
  Registration in Nominee Name; Denominations

  	
  9

  
	
  SECTION 3.06.
  Voting Rights; Dividends and Interest

  	
  9

  
	
   

  	
   

  
	
  ARTICLE IV

  
	
   

  	
   

  
	
  Security Interests in
  Personal Property

  
	
   

  	
   

  
	
  SECTION 4.01.
  Security Interest

  	
  11

  
	
  SECTION 4.02.
  Representations and Warranties

  	
  13

  
	
  SECTION 4.03.
  Covenants

  	
  14

  
	
  SECTION 4.04.
  Covenants Regarding Patent, Trademark and Copyright Collateral

  	
  16

  
	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  
	
  Remedies

  
	
   

  	
   

  
	
  SECTION 5.01.
  Remedies Upon Default

  	
  18

  

 

i

 

	
  SECTION 5.02.
  Application of Proceeds

  	
  19

  
	
  SECTION 5.03.
  Grant of License to Use Intellectual Property

  	
  20

  
	
  SECTION 5.04.
  Securities Act

  	
  21

  
	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  
	
  Indemnity, Subrogation and
  Subordination

  
	
   

  	
   

  
	
  SECTION 6.01.
  Indemnity and Subrogation

  	
  21

  
	
  SECTION 6.02.
  Contribution and Subrogation

  	
  22

  
	
  SECTION 6.03.
  Subordination

  	
  22

  
	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  
	
  Miscellaneous

  
	
   

  	
   

  
	
  SECTION 7.01.
  Notices

  	
  22

  
	
  SECTION 7.02.
  Waivers; Amendment

  	
  23

  
	
  SECTION 7.03.
  Collateral Agent’s Fees and Expenses; Indemnification

  	
  23

  
	
  SECTION 7.04.
  Successors and Assigns

  	
  24

  
	
  SECTION 7.05.
  Survival of Agreement

  	
  24

  
	
  SECTION 7.06.
  Counterparts; Effectiveness; Several Agreement

  	
  24

  
	
  SECTION 7.07.
  Severability

  	
  25

  
	
  SECTION 7.08.
  Right of Set-Off

  	
  25

  
	
  SECTION 7.09.
  Governing Law; Jurisdiction; Consent to Service of Process

  	
  25

  
	
  SECTION 7.10.
  WAIVER OF JURY TRIAL

  	
  26

  
	
  SECTION 7.11.
  Headings

  	
  26

  
	
  SECTION 7.12.
  Security Interest Absolute

  	
  26

  
	
  SECTION 7.13.
  Termination or Release

  	
  26

  
	
  SECTION 7.14.
  Additional Subsidiaries

  	
  27

  
	
  SECTION 7.15.
  Collateral Agent Appointed Attorney-in-Fact

  	
  27

  

 

ii

 

	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Schedule
  I

  	
  Subsidiary
  Parties

  
	
  Schedule
  II

  	
  Pledged
  Stock; Debt Securities

  
	
  Schedule
  III

  	
  Intellectual
  Property

  
	
   

  	
   

  
	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  Exhibit I

  	
  Form of
  Supplement

  
	
  Exhibit II

  	
  Form of
  Patent Security Agreement

  
	
  Exhibit III

  	
  Form of
  Perfection Certificate

  
	
  Exhibit IV

  	
  Form of
  Trademark Security Agreement

  
	
  Exhibit V

  	
  Form of
  Copyright Security Agreement

  

 

iii

 

GUARANTEE AND COLLATERAL AGREEMENT (U.S.) (this “Agreement”) dated as of November 1,
2004, among SMURFIT-STONE CONTAINER CORPORATION, SMURFIT-STONE CONTAINER
ENTERPRISES, INC., the other Subsidiaries of SMURFIT-STONE CONTAINER
CORPORATION parties hereto and DEUTSCHE BANK TRUST COMPANY AMERICAS (“DBTCA”), as Collateral
Agent.

 

Reference is made to the Credit Agreement dated
as of November 1, 2004 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Smurfit-Stone Container
Corporation (“SSCC”), Smurfit-Stone
Container Enterprises, Inc. (“SSCE”), Smurfit-Stone Container Canada, Inc.
(“SSC Canada” and, together
with SSCE, the “Borrowers”), the Lenders
party thereto, JPMorgan Chase Bank (“JPMCB”), DBTCA and Deutsche Bank AG.  The Lenders and the Facing Agents have agreed
to extend credit to the Borrowers subject to the terms and conditions set forth
in the Credit Agreement.  The obligations
of the Lenders to extend such credit are conditioned upon, among other things,
the execution and delivery of this Agreement. 
SSCC and the Subsidiary Parties are affiliates of the Borrowers, will
derive substantial benefits from the extension of credit to the Borrowers
pursuant to the Credit Agreement and are willing to execute and deliver this
Agreement in order to induce the Lenders to extend such credit.  Accordingly, the parties hereto agree as
follows:

 

ARTICLE I

 

Definitions

 

SECTION 1.01.  Credit Agreement.  (a) 
Capitalized terms used in this Agreement, including the preamble and
introductory paragraph hereto, and not otherwise defined herein have the
meanings specified in the Credit Agreement. 
All terms defined in the New York UCC (as defined herein) and not
defined in this Agreement have the meanings specified therein; the term “instrument” shall have the
meaning specified in Article 9 of the New York UCC.

 

(b)  The rules of construction
specified in Section 1.03 of the Credit Agreement also apply to
this Agreement.

 

SECTION 1.02.  Other Defined Terms.  As used in this Agreement, the following
terms have the meanings specified below:

“Account Debtor” means any Person who is or
who may become obligated to any Grantor under, with respect to or on account of
an Account.

 

“Article 9 Collateral” has the meaning assigned to
such term in Section 4.01.

 

“Collateral” means Article 9
Collateral and Pledged Collateral.

 

 

“Copyright License” means any written
agreement, now or hereafter in effect, granting any right to any third party
under any Copyright now or hereafter owned by any Grantor or that such Grantor
otherwise has the right to license, or granting any right to any Grantor under
any copyright now or hereafter owned by any third party, and all rights of such
Grantor under any such agreement.

 

“Copyright Security Agreement” means
the Copyright Security Agreement (U.S.) dated as of the date hereof, among
SSCC, SSCE, the Subsidiaries of SSCC from time to time party thereto and DBTCA,
as the Collateral Agent, substantially in the form of Exhibit V.

 

“Copyrights” means all of the following
now owned or hereafter acquired by any Grantor: 
(a) all copyright rights in any work subject to the copyright laws
of the United States, whether as author, assignee, transferee or otherwise, and
(b) all registrations and applications for registration of any such
copyright in the United States, including registrations, recordings,
supplemental registrations and pending applications for registration in the
United States Copyright Office, including those listed on Schedule III.

 

“Credit Agreement” has the meaning assigned to
such term in the preliminary statement of this Agreement.

 

“Equity Interests” means shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person, and any
warrants, options or other rights entitling the holder thereof to purchase or
acquire any such equity interest.

 

“Federal Securities Laws” has the meaning assigned to
such term in Section 5.04.

 

“Fixtures” means, with respect to any
real property of any Grantor, goods that have become so related to such real
property that an interest in them arises under real property law, including all
plant fixtures, trade fixtures, business fixtures, other fixtures and storage
office facilities, and all additions and accessions thereto and replacements
therefor.

 

“General Intangibles” means all choses in action
and causes of action and all other intangible personal property of every kind
and nature (other than Accounts) now owned or hereafter acquired by any
Grantor, including corporate or other business records, indemnification claims,
contract rights (including rights under leases, whether entered into as lessor
or lessee, Swap Agreements and other agreements), Intellectual Property,
goodwill, registrations, franchises, tax refund claims and any letter of
credit, guarantee, claim, security interest or other security held by or
granted to any Grantor to secure payment by an Account Debtor of any of the
Accounts.

 

“Grantors” means SSCC, SSCE and the
other Subsidiary Parties.

 

“Guarantors” means SSCC and the
Subsidiary Parties.

 

2

 

“Intellectual Property” means all intellectual and
similar property of every kind and nature now owned or hereafter acquired by
any Grantor, including inventions, designs, Patents, Copyrights, Licenses,
Trademarks, trade secrets, confidential or proprietary technical and business
information, know-how, show-how or other data or information, software and
databases and all embodiments or fixations thereof and related documentation,
registrations and franchises, and all additions, improvements and accessions
to, and books and records describing or used in connection with, any of the
foregoing.

 

“IP Security Agreements” means the
Patent Security Agreement, the Copyright Security Agreement and the Trademark
Security Agreement.

 

“License” means any Patent License,
Trademark License, Copyright License or other license or sublicense agreement
to which any Grantor is a party, other than any license agreement that validly
prohibits the collateral assignment or grant of a security interest by such
Grantor.

 

“Loan Parties” means SSCC, SSCE and the other Subsidiary Parties.

 

“Maryland Guarantor” means any Guarantor that is
a guarantor under the Guarantee Agreement (Maryland).

 

“New York UCC” means the Uniform
Commercial Code as from time to time in effect in the State of New York.

 

“Obligations” has the meaning assigned to
such term in the Credit Agreement.

 

“Patent License” means any written
agreement, now or hereafter in effect, granting to any third party any right to
make, use or sell any invention on which a Patent, now or hereafter owned by
any Grantor or that any Grantor otherwise has the right to license, is in
existence, or granting to any Grantor any right to make, use or sell any
invention on which a patent, now or hereafter owned by any third party, is in
existence, and all rights of any Grantor under any such agreement.

 

“Patents” means all of the following
now owned or hereafter acquired by any Grantor: 
(a) all letters patent of the United States, all registrations and
recordings thereof, and all applications for letters patent of the United
States, including registrations, recordings and pending applications in the
United States Patent and Trademark Office, including those listed on Schedule III,
and (b) all reissues, continuations, divisions, continuations-in-part,
renewals or extensions thereof, and the inventions disclosed or claimed
therein, including the right to make, use and/or sell the inventions disclosed
or claimed therein.

 

“Patent Security Agreement” means the
Patent Security Agreement (U.S.) dated as of the date thereof, among SSCC,
SSCE, the Subsidiaries of SSCC from time to time party thereto and DBTCA, as
the Collateral Agent, substantially in the form of Exhibit II.

 

3

 

“Perfection Certificate” means a certificate
substantially in the form of Exhibit III, completed and
supplemented with the schedules and attachments contemplated thereby, and duly
executed by a Responsible Officer of each Loan Party.

 

“Pledged Collateral” has the meaning assigned to
such term in Section 3.01.

 

“Pledged Debt Securities” has the meaning assigned to
such term in Section 3.01.

 

“Pledged Securities” means any promissory notes,
stock certificates or other securities now or hereafter included in the Pledged
Collateral, including all certificates, instruments or other documents
representing or evidencing any Pledged Collateral.

 

“Pledged Stock” has the meaning assigned to
such term in Section 3.01.

 

“Secured Parties” means (a) the Lenders,
(b) the Collateral Agent, (c) the Facing Agents, (d) the other
Agents, (e) each counterparty to any Swap Agreement with a Loan Party the
obligations under which constitute Obligations, (f) the beneficiaries of
each indemnification obligation undertaken by any Loan Party under any Loan
Document and (g) the successors and assigns of each of the foregoing.

 

“Security Interest” has the meaning assigned to
such term in Section 4.01.

 

“Subsidiary Parties” means (a) the
Subsidiaries identified on Schedule I  and (b) each other Subsidiary that
becomes a party to this Agreement as a Subsidiary Party after the Effective
Date, other than any such Subsidiary that is released from its obligations
hereunder in accordance with the Credit Agreement.

 

“Trademark License” means any written
agreement, now or hereafter in effect, granting to any third party any right to
use any Trademark now or hereafter owned by any Grantor or that any Grantor
otherwise has the right to license, or granting to any Grantor any right to use
any trademark now or hereafter owned by any third party, and all rights of any
Grantor under any such agreement.

 

“Trademarks” means all of the following
now owned or hereafter acquired by any Grantor: (a) all trademarks,
service marks, trade names, corporate names, company names, business names,
fictitious business names, trade styles, trade dress, logos, other source or
business identifiers, designs and general intangibles of like nature, now
existing or hereafter adopted or acquired, all registrations and recordings
thereof, and all registration and recording applications filed in connection
therewith, including registrations and registration applications in the United
States Patent and Trademark Office or any similar offices in any State of the
United States, and all extensions or renewals thereof, including those listed
on Schedule III, (b) all goodwill associated therewith or
symbolized thereby and (c) all other assets, rights and interests that
uniquely reflect or embody such goodwill.

 

4

 

“Trademark Security Agreement” means
the Trademark Security Agreement (U.S.) dated as of the date hereof, among
SSCC, SSCE, the Subsidiaries of SSCC from time to time party thereto and DBTCA,
as the Collateral Agent, substantially in the form of Exhibit IV.

 

ARTICLE II

 

Guarantee

 

SECTION 2.01.  Guarantee.  Each Guarantor unconditionally and
irrevocably guarantees, jointly with the other Guarantors and severally, as the
primary obligation and debt of each Guarantor and not merely as a surety, the
due, prompt and complete payment and performance of the Obligations.  Each of the Guarantors further agrees that
the Obligations may be extended or renewed, in whole or in part, without notice
to or further assent from it, and that it will remain bound upon its guarantee
notwithstanding any extension or renewal of any Obligation.  Each of the Guarantors waives presentment to,
demand of payment from and protest to either Borrower or any other Loan Party
of any of the Obligations, and also waives notice of acceptance of its
guarantee and notice of protest for nonpayment.

 

SECTION 2.02.  Guarantee of Payment.  Each of the Guarantors further agrees that
its guarantee hereunder constitutes a guarantee of payment when due and not of
collection, and waives any right to require that any resort be had by the
Collateral Agent or any other Secured Party to any security held for the
payment of the Obligations or to any balance of any deposit account or credit
on the books of the Collateral Agent or any other Secured Party in favor of
either Borrower or any other Person.

 

SECTION 2.03.  No Limitations.  (a) 
Except for termination or release of a Guarantor’s obligations hereunder as
expressly provided in Section 7.13, the obligations of each Guarantor
hereunder shall not be subject to any reduction, limitation, impairment or
termination for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to any defense (other than
defense of payment in full in cash) or set-off, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise.  Without limiting the generality of the foregoing,
the obligations of each Guarantor hereunder shall not be discharged or impaired
or otherwise affected by (i) the failure of the Collateral Agent or any
other Secured Party to assert any claim or demand or to enforce any right or
remedy under the provisions of any Loan Document or otherwise; (ii) any
rescission, waiver, amendment or modification of, or any release from any of
the terms or provisions of, any Loan Document or any other agreement, including
with respect to any other Guarantor under this Agreement; (iii) the
release of any security held by the Collateral Agent or any other Secured Party
for the Obligations or any of them; (iv) any default, failure or delay,
wilful or otherwise, in the performance of the Obligations; or (v) any
other act or omission that may or might in any manner or to any extent vary the
risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a
matter of law or equity (other than the indefeasible payment in full in cash of
all the Obligations).  Each Guarantor
expressly authorizes the Secured Parties to take 

 

5

 

and hold security for the payment and performance of the Obligations,
to exchange, waive or release any or all such security (with or without
consideration), to enforce or apply such security and direct the order and
manner of any sale thereof in their sole discretion or to release or substitute
any one or more other guarantors or obligors upon or in respect of the
Obligations, all without affecting the obligations of any Guarantor hereunder.

 

(b)  To the fullest extent permitted by
applicable law, each Guarantor waives any defense based on or arising out of
any defense of either Borrower or any other Loan Party or the unenforceability
of the Obligations or any part thereof from any cause, or the cessation from
any cause of the liability of either Borrower or any other Loan Party, other
than the indefeasible payment in full in cash of all the Obligations.  The Collateral Agent and the other Secured
Parties may, at their election, foreclose on any security held by one or more
of them by one or more judicial or nonjudicial sales, accept an assignment of
any such security in lieu of foreclosure, compromise or adjust any part of the
Obligations, make any other accommodation with either Borrower or any other
Loan Party or exercise any other right or remedy available to them against
either Borrower or any other Loan Party, without affecting or impairing in any
way the liability of any Guarantor hereunder except to the extent the
Obligations have been fully and indefeasibly paid in full in cash.  To the fullest extent permitted by applicable
law, each Guarantor waives any defense arising out of any such election even
though such election operates, pursuant to applicable law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy
of such Guarantor against either Borrower or any other Loan Party, as the case
may be, or any security.

 

SECTION 2.04.  Reinstatement.  Each of the Guarantors agrees that its
guarantee hereunder shall continue to be effective or be reinstated, as the
case may be, if at any time payment, or any part thereof, of any Obligation is
rescinded or must otherwise be restored by the Collateral Agent or any other
Secured Party upon the bankruptcy or reorganization of either Borrower, any
other Loan Party or otherwise.

 

SECTION 2.05.  Agreement To Pay; Subrogation.  In furtherance of the foregoing and not in
limitation of any other right that the Collateral Agent or any other Secured
Party has at law or in equity against any Guarantor by virtue hereof, upon the
failure of either Borrower or any other Loan Party to pay any Obligation when
and as the same shall become due, whether at maturity, by acceleration, after
notice of prepayment or otherwise, each Guarantor hereby promises to and will
forthwith pay, or cause to be paid, to the Collateral Agent for distribution to
the applicable Secured Parties in cash the amount of such unpaid
Obligation.  Upon payment by or on behalf
of any Guarantor of any sums to the Collateral Agent as provided above, all
rights of such Guarantor against the applicable Borrower or any other Loan
Party arising as a result thereof by way of right of subrogation, contribution,
reimbursement, indemnity or otherwise shall in all respects be subject to Article VI.

 

SECTION 2.06.  Information.  Each Guarantor assumes all responsibility for
being and keeping itself informed of each Borrower’s and each other Loan Party’s
financial condition and assets, and of all other circumstances bearing upon the
risk of 

 

6

 

nonpayment of the Obligations and the nature, scope and extent of the
risks that such Guarantor assumes and incurs hereunder, and agrees that none of
the Collateral Agent or the other Secured Parties will have any duty to advise
such Guarantor of information known to it or any of them regarding such
circumstances or risks.

 

ARTICLE III

 

Pledge of Securities

 

SECTION 3.01.  Pledge.  As security for the payment or performance,
as the case may be, in full of the Obligations, each Grantor hereby
collaterally assigns and pledges to the Collateral Agent, its successors and
assigns, for the ratable benefit of the Secured Parties, and hereby grants to
the Collateral Agent, its successors and assigns, for the ratable benefit of
the Secured Parties, a security interest in, all of such Grantor’s right, title
and interest in, to and under (a) the shares of capital stock and other
Equity Interests of (i) each Domestic Subsidiary that is a Material
Subsidiary (other than any FinSub) owned by such Grantor on the date hereof and
listed on Schedule II, (ii) SSC Canada owned by such Grantor
on the date hereof and listed on Schedule II, and (iii) any
other Equity Interests obtained in the future by such Grantor of any Domestic
Subsidiary that is a Material Subsidiary (other than any FinSub) or in SSC
Canada, and the certificates representing all such Equity Interests (all such
Equity Interests referred to in clauses (i), (ii) and
(iii) above being referred to as the “Pledged Stock”); provided
that the Pledged Stock shall not include (i)  to the extent that
applicable law requires that a Subsidiary issue directors’ qualifying shares,
any such qualifying shares, and (ii) more than 65% of the issued and outstanding
voting Equity Interests of SSC Canada; (b)(i) the promissory notes owned
by it on the date hereof and listed opposite the name of such Grantor on Schedule II,
(ii) each promissory note evidencing intercompany Indebtedness among SSCC
and/or any of its Subsidiaries in an aggregate principal amount at least equal
to U.S.$10,000,000 in the future owned by such Grantor and (iii) each
other promissory note evidencing Indebtedness in an aggregate principal amount
at least equal to U.S.$25,000,000 in the future owned by such Grantor (the
promissory notes referenced in the preceding clauses (i), (ii) and
(iii) being referred to as the “Pledged Debt Securities”); (c) subject
to Section 3.06, all payments of principal or interest, dividends,
cash, instruments and other property from time to time received, receivable or
otherwise distributed in respect of, in exchange for or upon the conversion of,
and all other Proceeds received in respect of, the securities referred to in clauses (a) and
(b) above; and (d) all Proceeds of any of the foregoing (the
items referred to in clauses (a) through (d) above
being collectively referred to as the “Pledged Collateral”).

 

TO HAVE AND TO HOLD the Pledged Collateral,
together with all right, title, interest, powers, privileges and preferences
pertaining or incidental thereto, unto the Collateral Agent, its successors and
assigns, for the ratable benefit of the Secured Parties, as security for the
payment or performance, as the case may be, in full of the Obligations; subject, however, to the terms, covenants
and conditions hereinafter set forth.

 

7

 

SECTION 3.02.  Delivery of the Pledged Collateral.  (a)  Each Grantor agrees promptly to
deliver or cause to be delivered to the Collateral Agent any and all Pledged
Securities.

 

(b)  Upon delivery to the Collateral
Agent, (i) any Pledged Securities shall be accompanied by undated stock
powers duly executed in blank or other instruments of transfer reasonably satisfactory
to the Collateral Agent and by such other instruments and documents as the
Collateral Agent may reasonably request and (ii) all other property
comprising part of the Pledged Collateral shall be accompanied by proper
instruments of assignment duly executed by the applicable Grantor and such
other instruments or documents as the Collateral Agent may reasonably request.  Each delivery of Pledged Securities shall be
accompanied by a schedule describing the securities, which schedule shall be
attached hereto as a supplement to Schedule II and made a part
hereof; provided that
failure to attach any such schedule hereto shall not affect the validity of
such pledge of such Pledged Securities.

 

SECTION 3.03.  Representations, Warranties and Covenants.  The Grantors jointly and severally represent,
warrant and covenant to and with the Collateral Agent, for the benefit of the
Secured Parties, that:

 

(a) Schedule
II correctly sets forth, as of the Closing Date, the percentage of the
issued and outstanding units of each class of the Equity Interests of the
issuer thereof represented by the Pledged Stock and includes all Equity
Interests and promissory notes required to be pledged hereunder on the Closing
Date;

 

(b) the
Pledged Stock has been duly and validly authorized and issued by the issuers
thereof and is fully paid and nonassessable;

 

(c) except
for the security interests granted hereunder, each of the Grantors (i) is
and, subject to any sales, transfers or other dispositions made in compliance
with the Credit Agreement, will continue to be the direct owner, beneficially
and of record, of the Pledged Securities indicated on Schedule II as
owned by such Grantor, (ii) holds the same free and clear of all Liens
(other than Permitted Liens), (iii) will not pledge or hypothecate, or otherwise
create a consensual Lien on, the Pledged Collateral, and (iv) will defend
its title or interest thereto or therein against any and all Liens (other than
the Lien created by this Agreement and Permitted Liens), however, arising, of
all Persons whomsoever;

 

(d) except
for restrictions and limitations imposed by the Loan Documents or applicable
laws (including securities laws) generally, the Pledged Collateral is and will
continue to be freely transferable and assignable, and none of the Pledged
Collateral is or will be subject to (i) any option, right of first
refusal, shareholders agreement or charter or by-law provisions that might
prohibit, impair, delay (except pursuant to any applicable notice or like
provisions) or otherwise adversely affect the pledge of such Pledged Collateral
hereunder, the sale or disposition thereof pursuant hereto or the exercise by
the Collateral Agent of its rights and remedies hereunder with respect thereto,
or (ii) any other contractual 

 

8

 

restriction of any nature
that might prohibit the pledge of such Pledged Collateral hereunder or prohibit
or in any material manner impair, delay or otherwise adversely affect the sale
or disposition of such Pledged Collateral pursuant hereto or the exercise by
the Collateral Agent of its rights and remedies hereunder with respect thereto;

 

(e) each
of the Grantors has the power and authority to pledge the Pledged Collateral
pledged by it hereunder in the manner hereby done or contemplated;

 

(f) no
consent or approval of any Governmental Authority, any securities exchange or
any other Person was or is necessary to the validity of the pledge effected
hereby (other than such as have been obtained and are in full force and
effect);

 

(g) by
virtue of the execution and delivery by the Grantors of this Agreement, when
any Pledged Securities are delivered to the Collateral Agent in accordance with
this Agreement, the Collateral Agent will obtain a legal, valid and perfected
lien upon and security interest in such Pledged Securities as security for the
payment and performance of the Obligations; and

 

(h) the
pledge effected hereby is effective to vest in the Collateral Agent, for the
benefit of the Secured Parties, the rights of the Collateral Agent in the
Pledged Collateral as set forth herein.

 

SECTION 3.04.  Certification of Limited Liability Company
and Limited Partnership Interests.  Each
interest in any limited liability company or limited partnership controlled by
any Grantor and pledged hereunder shall be represented by a certificate.

 

SECTION 3.05.  Registration in Nominee Name;
Denominations.  The Collateral Agent,
on behalf of the Secured Parties, shall have the right (in its sole and
absolute discretion) to hold the Pledged Securities in its own name as pledgee,
the name of its nominee (as pledgee or as sub-agent) or the name of the
applicable Grantor, endorsed or assigned in blank or in favor of the Collateral
Agent.  The Collateral Agent shall, at any
time after the occurrence and during the continuance of an Event of Default, have
the right to exchange the certificates representing Pledged Securities for certificates
of smaller or larger denominations for any purpose consistent with this
Agreement.

 

SECTION 3.06.  Voting Rights; Dividends and Interest.  (a)  Unless and until an Event of
Default shall have occurred and be continuing and the Collateral Agent shall
have notified the Grantors in writing that their rights under this Section 3.06
are being suspended:

 

(i) Each
Grantor shall be entitled to exercise any and all voting and/or other rights
and powers inuring to an owner of Pledged Securities or any part thereof for
any purpose consistent with the terms of this Agreement, the Credit Agreement
and the other Loan Documents; provided
that such rights and powers shall not be exercised in any manner that could reasonably
be expected to 

 

9

 

materially and adversely
affect the rights inuring to a holder of any Pledged Securities or the rights
and remedies of any of the Collateral Agent or the other Secured Parties under
this Agreement or the Credit Agreement or any other Loan Document or the
ability of the Secured Parties to exercise the same.

 

(ii) The
Collateral Agent shall execute and deliver to each Grantor, or cause to be
executed and delivered to such Grantor, all such proxies, powers of attorney
and other instruments as such Grantor may reasonably request for the purpose of
enabling such Grantor to exercise the voting rights and powers it is entitled
to exercise pursuant to paragraph (i) above and to receive the cash
dividends, interest, principal and other distributions it is entitled to
receive and retain pursuant to paragraph (iii) below.

 

(iii) Each
Grantor shall be entitled to receive and retain any and all dividends,
interest, principal, cash, instruments and other property and all distributions
from time to time received, receivable or otherwise paid on or distributed in
respect of, in exchange for or upon conversion of, the Pledged Securities to
the extent and only to the extent that such dividends, interest, principal and
other distributions are permitted by, and otherwise paid or distributed in
accordance with, the terms and conditions of the Credit Agreement, the other
Loan Documents and applicable laws; provided
that any noncash dividends, interest, principal or other distributions that
would constitute Pledged Stock or Pledged Debt Securities, whether resulting
from a subdivision, combination or reclassification of the outstanding Equity
Interests of the issuer of any Pledged Securities or received in exchange for
Pledged Securities or any part thereof, or in redemption thereof, or as a
result of any merger, consolidation, acquisition or other exchange of assets to
which such issuer may be a party or otherwise, shall be and become part of the
Pledged Collateral, and, if received by any Grantor, shall not be commingled by
such Grantor with any of its other funds or property but shall be held separate
and apart therefrom, shall be held in trust for the benefit of the Collateral
Agent and shall be forthwith delivered to the Collateral Agent in the same form
as so received (with any necessary endorsement).

 

(b)  Upon the occurrence and during the
continuance of an Event of Default, after the Collateral Agent shall have
notified the Grantors in writing of suspension of their rights under paragraph
(a)(iii) above, all rights of any Grantor to dividends, interest,
principal or other distributions that such Grantor is authorized to receive
pursuant to paragraph (a)(iii) above, and the obligations of
the Collateral Agent under paragraph (a)(ii) above, shall cease,
and all such rights shall thereupon become vested in the Collateral Agent,
which shall have the sole and exclusive right and authority to receive and
retain such dividends, interest, principal or other distributions.  All dividends, interest, principal or other
distributions received by any Grantor contrary to the provisions of this Section 3.06
shall be held in trust for the benefit of the Collateral Agent, shall be
segregated from other property or funds of such Grantor and shall be forthwith
delivered to the Collateral Agent upon demand in the same form as so received
(with any necessary endorsement).  Any
and all money and other property paid over to or 

 

10

 

received by the Collateral Agent pursuant to the provisions of this paragraph
(b) shall be retained by the Collateral Agent in an account to be
established by the Collateral Agent upon receipt of such money or other
property and shall be applied in accordance with the provisions of Section 5.02.  After all Events of Default have been cured
or waived and SSCE has delivered to the Collateral Agent a certificate to that
effect, the Collateral Agent shall promptly repay to each Grantor (without
interest) all dividends, interest, principal or other distributions that such
Grantor would otherwise be permitted to retain pursuant to the terms of paragraph
(a)(iii) above and that remain in such account.

 

(c)  Upon the occurrence and during the
continuance of an Event of Default, after the Collateral Agent shall have
notified the Grantors in writing of suspension of their rights under paragraph
(a)(i) above, all rights of any Grantor to exercise the voting and
consensual rights and powers it is entitled to exercise pursuant to paragraph (a)(i) above,
and the obligations of the Collateral Agent under paragraph (a)(ii) above,
shall cease, and all such rights shall thereupon become vested in the
Collateral Agent, which shall have the sole and exclusive right and authority
to exercise such voting and consensual rights and powers.

 

ARTICLE IV

 

Security Interests in Personal Property

 

SECTION 4.01.  Security Interest.  (a)  As security for the payment or
performance, as the case may be, in full of the Obligations, each Grantor
hereby collaterally assigns and pledges to the Collateral Agent, its successors
and assigns, for the benefit of the Secured Parties, and hereby grants to the
Collateral Agent, its successors and assigns, for the benefit of the Secured
Parties, a security interest (the “Security Interest”) in, all right, title or interest in or
to any and all of the following assets and properties now owned or at any time
hereafter acquired by such Grantor or in which such Grantor now has or at any
time in the future may acquire any right, title or interest (collectively, the  “Article 9 Collateral”):

 

	
  (i)

  	
   

  	
  all Accounts;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  all Chattel Paper;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  all Documents;

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  all Equipment;

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  all Fixtures

  
	
   

  	
   

  	
   

  
	
  (vi)

  	
   

  	
  all General Intangibles;

  
	
   

  	
   

  	
   

  
	
  (vii)

  	
   

  	
  all Instruments;

  
	
   

  	
   

  	
   

  
	
  (viii)

  	
   

  	
  all Inventory;

  

 

11

 

	
  (ix)

  	
   

  	
  all Investment Property;

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  all books and records pertaining to the Article 9 Collateral;

  
	
   

  	
   

  	
   

  
	
  (xi)

  	
   

  	
  all Proceeds of the foregoing (including, without limitation, all
  insurance and claims for insurance 

  

effected or held for the
benefit of the Grantors or the Secured Parties in respect thereof); and

	
   

  	
   

  	
   

  
	
  (xii) 

  	
   

  	
  all products of any and all of the foregoing and in each case whether
  now owned or hereafter acquired;

  

 

provided that the Article 9
Collateral shall not include (i) any Program Receivables, (ii) any
rights, title or interest arising under any lease or other contract entered
into in the ordinary course of business which validly prohibits the creation by
any Grantor of a security interest in such rights and (iii) any rights or
property to the extent that any valid enforceable law or regulation applicable
to such rights or property prohibits the creation of a security interest
therein; provided, however, that such rights or property
described in the preceding clauses (ii) and (iii) shall
be excluded from the Collateral only to the extent and for so long as such
agreement (in the case of clause (ii)) or such law (in the case of clause
(iii)) continues validly to prohibit the creation of such security
interest, and upon the expiration of such prohibition, the rights and property
as to which such prohibition previously applied shall automatically be included
in the Collateral, without further action on the part of the Grantor or the
Collateral Agent.  Notwithstanding
anything to the contrary set forth herein, the security interest so granted by
the Maryland Guarantors in Article 9 Collateral located in the State of
Maryland shall only secure Obligations of the Maryland Guarantors arising under
the Guarantee Agreement (Maryland).

 

(b)  Each Grantor hereby irrevocably
authorizes the Collateral Agent at any time and from time to time to file in
any relevant jurisdiction any initial financing statements (including fixture
filings with respect to Fixtures appurtenant to any Mortgaged Property) with
respect to the Article 9 Collateral or any part thereof and amendments
thereto that (i) indicate the Collateral as all assets of such Pledgor or
words of similar effect as being of an equal or lesser scope or with greater
detail, and (ii) contain the information required by Article 9 of the
Uniform Commercial Code of each applicable jurisdiction for the filing of any
financing statement or amendment, including (A) whether such Grantor is an
organization, the type of organization and any organizational identification
number issued to such Grantor and (B) in the case of a financing statement
filed as a fixture filing or covering Article 9 Collateral constituting
minerals or the like to be extracted or timber to be cut, a sufficient
description of the real property to which such Article 9 Collateral
relates.  Each Grantor agrees to provide
such information to the Collateral Agent promptly upon request.

 

Each Grantor also ratifies its authorization
for the Collateral Agent to file in any relevant jurisdiction any initial
financing statements or amendments thereto if filed prior to the date hereof.

 

12

 

The Collateral Agent is further authorized to
file with the United States Patent and Trademark Office or United States
Copyright Office (or any successor office or any similar office in any other
country) such documents as may be necessary or advisable for the purpose of
perfecting, confirming, continuing, enforcing or protecting the Security
Interest granted by each Grantor, without the signature of any Grantor, and
naming any Grantor or the Grantors as debtors and the Collateral Agent as
secured party.

 

(c)  The Security Interest is granted as
security only and shall not subject the Collateral Agent or any other Secured
Party to, or in any way alter or modify, any obligation or liability of any
Grantor with respect to or arising out of the Article 9 Collateral.

 

SECTION 4.02.  Representations and Warranties.  The Grantors jointly and severally represent
and warrant to the Collateral Agent and the Secured Parties that:

 

(a)  Each Grantor has good and valid
rights in and title to the Article 9 Collateral with respect to which it
has purported to grant a Security Interest hereunder and has full power and
authority to grant to the Collateral Agent the Security Interest in such Article 9
Collateral pursuant hereto and to execute, deliver and perform its obligations
in accordance with the terms of this Agreement, without the consent or approval
of any other Person other than any consent or approval that has been obtained.

 

(b)  The Perfection Certificate has been
duly prepared, completed and executed and the information set forth therein,
including the exact legal name of each Grantor, is correct and complete in all
material respects as of the Closing Date. 
The Uniform Commercial Code financing statements (including fixture
filings, as applicable) prepared by the Collateral Agent based upon the
information provided to the Collateral Agent in the Perfection Certificate for
filing in each governmental, municipal or other office specified in Schedule 2
to the Perfection Certificate (or specified by notice from SSCE to the
Collateral Agent after the Closing Date in the case of filings, recordings or
registrations required by Section 6.10 of the Credit Agreement),
are all the filings, recordings and registrations (other than filings required
to be made in the United States Patent and Trademark Office and the United
States Copyright Office in order to perfect the Security Interest in Article 9
Collateral consisting of United States Patents, Trademarks and Copyrights and
other than filings, recordings or registrations with respect to federally
documented vessels, registered vehicles and railcars and other similar rolling
stock) that are necessary to publish notice of and protect the validity of and
to establish a legal, valid and perfected security interest in favor of the
Collateral Agent (for the benefit of the Secured Parties) in respect of all Article 9
Collateral in which the Security Interest may be perfected by filing a Uniform
Commercial Code financing statement in the United States (or any political
subdivision thereof), and no further or subsequent filing, refiling, recording,
rerecording, registration or reregistration is necessary in the United States
for any such Article 9 Collateral, except as provided under applicable law
with respect to the filing of continuation statements.  Each Grantor shall execute and deliver to the
Collateral Agent on the date hereof each of the IP Security Agreements, containing
(i) in the case of the Patent Security Agreement, a description of all Article 9
Collateral consisting of the United States Patents, (ii) in the case of the

 

13

 

Trademark Security Agreement, a description of all Article 9
Collateral consisting of United States registered Trademarks (and Trademarks
for which United States registration applications are pending) and (iii) in
the case of the Copyright Security Agreement, a description of all Article 9
Collateral consisting of Copyrights.

 

(c)  The Security Interest constitutes (i) a
legal and valid security interest in all the Article 9 Collateral securing
the payment and performance of the Obligations, (ii) subject to the
filings described in Section 4.02(b), a perfected security interest
in all Article 9 Collateral in which a security interest may be perfected
by filing Uniform Commercial Code financing statements in the United States (or
any political subdivision thereof) and (iii) a security interest that
shall be perfected in all Article 9 Collateral in which a security
interest may be perfected upon the receipt and recording of the IP Security Agreements
with the United States Patent and Trademark Office and the United States
Copyright Office, as applicable, within the three-month period (commencing as
of the date hereof) pursuant to 35 U.S.C. § 261 or 15 U.S.C.
§ 1060.  The Security Interest is
and shall be prior to any other Lien on any of the Article 9 Collateral,
other than Permitted Liens.

 

(d)  The Article 9 Collateral is
owned by the Grantors free and clear of any Lien, except for Permitted Liens.  None of the Grantors has filed or consented
to the filing of (i) any financing statement or analogous document under
the Uniform Commercial Code or any other applicable laws covering any Article 9
Collateral, other than with respect to the Program Receivables and property
leased by such Grantor, or (ii) any collateral assignment in which any
Grantor assigns any Collateral as security or any security agreement or similar
instrument covering any Article 9 Collateral with the United States Patent
and Trademark Office or the United States Copyright Office, except in each case
for Permitted Liens.

 

SECTION 4.03.  Covenants.  (a)   Each Grantor agrees promptly to notify the
Collateral Agent in writing of any change (i) in corporate name, (ii) in
the location of its chief executive office or its principal place of business, (iii) in
its identity or type of organization or corporate structure, (iv) in its
Federal Taxpayer Identification Number or organizational identification number
or (v) in its jurisdiction of organization.  Each Grantor agrees to promptly provide the
Collateral Agent with certified organizational documents reflecting any of the
changes described in the first sentence of this paragraph (a).  Each Grantor agrees not to effect or permit
any change referred to in the preceding sentence unless all filings have been
made under the Uniform Commercial Code or otherwise that are required in order
for the Collateral Agent to continue at all times following such change to have
a valid, legal and perfected first priority security interest in all the Article 9
Collateral.  Each Grantor agrees promptly
to notify the Collateral Agent if any material portion of the Article 9
Collateral owned or held by such Grantor is damaged or destroyed.

 

(b)  Each Grantor agrees to maintain, at
its own cost and expense, such complete and accurate records with respect to
the Article 9 Collateral owned by it as is consistent with its current
practices and in accordance with such prudent and standard practices used in
industries that are the same as or similar to those in which such Grantor 

 

14

 

is engaged and, at such time or times after the occurrence and during
the continuance of an Event of Default as the Collateral Agent may reasonably
request, promptly to prepare and deliver to the Collateral Agent a duly certified
schedule or schedules in form and detail satisfactory to the Collateral Agent
showing the identity, amount and location of any and all Article 9
Collateral.

 

(c)  Each year, at the time of delivery
of annual financial statements with respect to the preceding fiscal year
pursuant to Section 6.04(a) of the Credit Agreement, SSCC shall
deliver to the Collateral Agent a certificate executed by a Responsible Officer
of SSCC setting forth the information required pursuant to the Perfection
Certificate or confirming that there has been no change in such information
since the date of such certificate or the date of the most recent certificate
delivered pursuant to this paragraph (c).

 

(d)  Each Grantor shall, at its own
expense, take any and all actions reasonably necessary to defend title to the Article 9
Collateral against all Persons and to defend the Security Interest of the
Collateral Agent in the Article 9 Collateral and the priority thereof
against any Liens other than any Permitted Lien.

 

(e)  Each Grantor agrees, at its own
expense, to execute, acknowledge, deliver and cause to be duly filed all such
further instruments and documents and take all such actions as the Collateral
Agent may from time to time reasonably request to better assure, preserve, protect
and perfect the Security Interest and the rights and remedies created hereby,
including the payment of any fees and taxes required in connection with the
execution and delivery of this Agreement, the granting of the Security Interest
and the filing of any financing statements (including fixture filings) or other
documents in connection herewith or therewith, provided, however,
that no Grantor shall be required to take any such action with respect to
filings, recordings or registrations in respect of federally documented
vessels, aircraft, registered vehicles and railcars and other similar rolling
stock or other federally documented property, or to enter into any agreements
with any other Person in respect of deposit accounts.

 

(f)  The Collateral Agent and such
Persons as the Collateral Agent may reasonably designate shall have the right,
at the Grantors’ own cost and expense, to inspect the Article 9
Collateral, all records related thereto (and to make extracts and copies from
such records) and the premises upon which any of the Article 9 Collateral
is located, to discuss the Grantors’ affairs with the officers of the Grantors
and their independent accountants, all in accordance with and subject to the
terms and conditions relating to inspections as set forth in Section 6.07
of the Credit Agreement, and to verify under reasonable procedures the
validity, amount, quality, quantity, value, condition and status of, or any
other matter relating to, the Article 9 Collateral, including, in the case
of Accounts or Article 9 Collateral in the possession of any third person,
by contacting, at any time after the occurrence and during the continuance of
an Event of Default, Account Debtors or the third person possessing such Article 9
Collateral for the purpose of making such a verification.  The Collateral Agent shall have the absolute
right to share any information it gains from such inspection or verification
with any Lender (it being 

 

15

 

understood that any such information shall be deemed to be “Information”
subject to the provisions of Section 11.15 of the Credit Agreement).

 

(g)  At its option, the Collateral Agent
may discharge past due taxes, assessments, charges, fees, Liens, security
interests or other encumbrances at any time levied or placed on the Article 9
Collateral and not permitted pursuant to the Credit Agreement, and may pay for
the maintenance and preservation of the Article 9 Collateral to the extent
any Grantor fails to do so as required by the Credit Agreement or this
Agreement after written notice thereof is delivered to SSCE by the Collateral
Agent, and each Grantor jointly and severally agrees to reimburse the
Collateral Agent on demand for any payment made or any expense incurred by the
Collateral Agent pursuant to the foregoing authorization; provided that nothing in this paragraph
(g) shall be interpreted as excusing any Grantor from the performance
of, or imposing any obligation on the Collateral Agent or any Secured Party to
cure or perform, any covenants or other promises of any Grantor with respect to
taxes, assessments, charges, fees, Liens, security interests or other
encumbrances and maintenance as set forth herein or in the other Loan
Documents.

 

(h)  Each Grantor shall remain liable to
observe and perform all the conditions and obligations to be observed and
performed by it under each contract, agreement or instrument relating to the Article 9
Collateral, all in accordance with the terms and conditions thereof, and each
Grantor jointly and severally agrees to indemnify and hold harmless the
Collateral Agent and the Secured Parties from and against any and all liability
for such performance.

 

(i)  None of the Grantors shall make or
permit to be made any transfer of the Article 9 Collateral, except that
unless and until the Collateral Agent shall notify the Grantors in writing that
an Event of Default shall have occurred and be continuing and that during the
continuance thereof the Grantors shall not sell, convey, lease, assign,
transfer or otherwise dispose of any Article 9 Collateral, the Grantors
may use and dispose of the Article 9 Collateral in any lawful manner not
inconsistent with the provisions of this Agreement, the Credit Agreement or any
other Loan Document.

 

(j)  None of the Grantors will, without
the Collateral Agent’s prior written consent, grant any extension of the time
of payment of any Accounts included `in the Article 9 Collateral,
compromise, compound or settle the same for less than the full amount thereof,
release, wholly or partly, any Person liable for the payment thereof or allow
any credit or discount whatsoever thereon, other than extensions, compromises,
settlements, releases, credits or discounts granted or made in the ordinary
course of business.

 

SECTION 4.04.  Covenants Regarding Patent, Trademark and
Copyright Collateral.  (a)  Each
Grantor agrees that it will not do any act or omit to do any act (and will
exercise commercially reasonable efforts to prevent its licensees from doing
any act or omitting to do any act) whereby any Patent may become invalidated or
dedicated to the public, except where failure to comply with the foregoing
could not reasonably be expected to have a Material Adverse Effect.

 

16

 

(b)  Each Grantor (either itself or
through its licensees or its sublicensees) will, for each Trademark material to
the conduct of the business of SSCC and its Subsidiaries, taken as a whole, (i) maintain
such Trademark in full force free from any claim of abandonment or invalidity
for non-use, (ii) maintain the quality of products and services offered
under such Trademark, (iii) display such Trademark with notice of Federal
or foreign registration to the extent necessary and sufficient to establish and
preserve its maximum rights under applicable law and (iv) not knowingly
use or knowingly permit the use of such Trademark in violation of any third
party rights, except where failure to comply with the foregoing could not
reasonably be expected to have a Material Adverse Effect.

 

(c)  Each Grantor (either itself or
through its licensees or sublicensees) will, for each work covered by a
Copyright material to the business of SSCC and its Subsidiaries, taken as a
whole, continue to publish, reproduce, display, adopt and distribute the work
with appropriate copyright notice as necessary and sufficient to establish and
preserve its maximum rights under applicable copyright laws, except where failure
to comply with the foregoing could not reasonably be expected to have a Material
Adverse Effect.

 

(d)  Each Grantor shall notify the
Collateral Agent promptly if it knows or has reason to know that any Patent,
Trademark or Copyright material to the conduct of the business of SSCC and its
Subsidiaries, taken as a whole, may become abandoned, lost or dedicated to the
public, or of any materially adverse determination or development (including
the institution of, or any such determination or development in, any proceeding
in the United States Patent and Trademark Office, United States Copyright
Office or any court or similar office of any country) regarding such Grantor’s
ownership of any Patent, Trademark or Copyright material to the conduct of the
business of SSCC and its Subsidiaries, taken as a whole, its right to register
the same, or its right to keep and maintain the same.

 

(e)  Each Grantor will take all reasonably
necessary steps that are consistent with the practice in any proceeding before
the United States Patent and Trademark Office, United States Copyright Office
or any office or agency in any political subdivision of the United States, to
maintain and pursue each material application relating to the Patents,
Trademarks and/or Copyrights (and to obtain the relevant grant or registration)
and to maintain each issued Patent and each registration of the Trademarks and
Copyrights that is material to the conduct of the business of SSCC and the
Subsidiaries, taken as a whole, including timely filings of applications for
renewal, affidavits of use, affidavits of incontestability and payment of
maintenance fees, and, if consistent with good business judgment, to initiate
opposition, interference and cancelation proceedings against third parties; provided
that, to the extent consistent with the Credit Agreement, no Grantor shall be
obligated to pursue, preserve or maintain any Patent, Trademark or Copyright in
the event such Grantor determines, in its reasonable business judgment, that
the preservation of such Patent, Trademark or Copyright is no longer desirable
in the conduct of its business.

 

17

 

(f)  Upon and during the continuance of
an Event of Default, each Grantor shall, if requested by the Collateral Agent, use
its commercially reasonable efforts to obtain all requisite consents or approvals
by the licensor of each Copyright License, Patent License or Trademark License
to effect the assignment of all such Grantor’s right, title and interest
thereunder to the Collateral Agent or its designee.

 

ARTICLE V

 

Remedies

 

SECTION 5.01.  Remedies Upon Default.  Upon the occurrence and during the
continuance of an Event of Default, each Grantor agrees to deliver each item of
Collateral to the Collateral Agent on demand, and it is agreed that the
Collateral Agent shall have the right to take any of or all the following
actions at the same or different times:  (a) with
respect to any Article 9 Collateral consisting of Intellectual Property,
on demand, to cause the Security Interest to become an assignment, transfer and
conveyance of any of or all such Article 9 Collateral by the applicable
Grantors to the Collateral Agent, or to license or sublicense, whether general,
special or otherwise, and whether on an exclusive or nonexclusive basis, any
such Article 9 Collateral throughout the world on such terms and
conditions and in such manner as the Collateral Agent shall determine (other
than in violation of any then-existing licensing arrangements to the extent
that waivers cannot be obtained), and (b) with or without legal process
and with or without prior notice or demand for performance, to take possession
of the Article 9 Collateral and without liability for trespass to enter
any premises where the Article 9 Collateral may be located for the purpose
of taking possession of or removing the Article 9 Collateral and,
generally, to exercise any and all rights afforded to a secured party under the
Uniform Commercial Code or other applicable law.  Without limiting the generality of the
foregoing, upon the occurrence and during the continuance of an Event of Default,
each Grantor agrees that the Collateral Agent shall have the right, subject to
the mandatory requirements of applicable law, to sell or otherwise dispose of
all or any part of the Collateral at a public or private sale or at any broker’s
board or on any securities exchange, for cash, upon credit or for future
delivery as the Collateral Agent shall deem appropriate.  The Collateral Agent shall be authorized at
any such sale of securities (if it deems it advisable to do so) to restrict the
prospective bidders or purchasers to Persons who will represent and agree that
they are purchasing the Collateral for their own account for investment and not
with a view to the distribution or sale thereof, and upon consummation of any
such sale the Collateral Agent shall have the right to assign, transfer and
deliver to the purchaser or purchasers thereof the Collateral so sold.  Each such purchaser at any sale of Collateral
shall hold the property sold absolutely, free from any claim or right on the
part of any Grantor, and each Grantor hereby waives (to the extent permitted by
law) all rights of redemption, stay and appraisal which such Grantor now has or
may at any time in the future have under any rule of law or statute now
existing or hereafter enacted.

 

The Collateral Agent shall give the
applicable Grantors 10 days’ prior written notice (which each Grantor
agrees is reasonable notice within the meaning of Section 9-611 of the
New York UCC or its equivalent in other jurisdictions) of the 

 

18

 

Collateral Agent’s intention
to make any sale of Collateral.  Such
notice, in the case of a public sale, shall state the time and place for such
sale and, in the case of a sale at a broker’s board or on a securities
exchange, shall state the board or exchange at which such sale is to be made
and the day on which the Collateral, or portion thereof, will first be offered
for sale at such board or exchange.  Any
such public sale shall be held at such time or times within ordinary business
hours and at such place or places as the Collateral Agent may fix and state in
the notice (if any) of such sale.  At any
such sale, the Collateral, or portion thereof, to be sold may be sold in one
lot as an entirety or in separate parcels, as the Collateral Agent may (in its
sole and absolute discretion) determine. 
The Collateral Agent shall not be obligated to make any sale of any
Collateral if it shall determine not to do so, regardless of the fact that notice
of sale of such Collateral shall have been given.  The Collateral Agent may, without notice or
publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may, without further notice, be made at the time and place
to which the same was so adjourned.  In
case any sale of all or any part of the Collateral is made on credit or for
future delivery, the Collateral so sold may be retained by the Collateral Agent
until the sale price is paid by the purchaser or purchasers thereof, but the
Collateral Agent shall not incur any liability in case any such purchaser or
purchasers shall fail to take up and pay for the Collateral so sold and, in
case of any such failure, such Collateral may be sold again upon like
notice.  At any public (or, to the extent
permitted by law, private) sale made pursuant to this Agreement, any Secured
Party may bid for or purchase, free (to the extent permitted by law) from any
right of redemption, stay, valuation or appraisal on the part of any Grantor
(all said rights being also hereby waived and released to the extent permitted
by law), the Collateral or any part thereof offered for sale and may make
payment on account thereof by using any claim then due and payable to such
Secured Party from any Grantor as a credit against the purchase price, and such
Secured Party may, upon compliance with the terms of sale, hold, retain and
dispose of such property without further accountability to any Grantor
therefor.  For purposes hereof, a written
agreement to purchase the Collateral or any portion thereof shall be treated as
a sale thereof; the Collateral Agent shall be free to carry out such sale
pursuant to such agreement and no Grantor shall be entitled to the return of
the Collateral or any portion thereof subject thereto, notwithstanding the fact
that after the Collateral Agent shall have entered into such an agreement all
Events of Default shall have been remedied and the Obligations paid in full.  As an alternative to exercising the power of
sale herein conferred upon it, the Collateral Agent may proceed by a suit or
suits at law or in equity to foreclose this Agreement and to sell the
Collateral or any portion thereof pursuant to a judgment or decree of a court
or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed
receiver.  Any sale pursuant to the
provisions of this Section 5.01 shall be deemed to conform to the
commercially reasonable standards as provided in Section 9-610(b) of
the New York UCC or its equivalent in other jurisdictions.

 

SECTION 5.02.  Application of Proceeds.  The Collateral Agent shall apply the proceeds
of any collection or sale of Collateral, including any Collateral consisting of
cash, as follows:

 

19

 

FIRST, to the payment
of all costs and expenses incurred by the Collateral Agent in connection with
such collection or sale or otherwise in connection with this Agreement, any
other Loan Document or any of the Obligations, including all court costs and the
fees and expenses of its agents and legal counsel, the repayment of all
advances made by the Collateral Agent hereunder or under any other Loan
Document on behalf of any Grantor and any other costs or expenses incurred in
connection with the exercise of any right or remedy hereunder or under any
other Loan Document;

 

SECOND, to the payment
in full of the Obligations (the amounts so applied to be distributed among the
Secured Parties pro rata in accordance with the amounts of the Obligations owed
to them on the date of any such distribution); and

 

THIRD, to the
Grantors, their successors or assigns, or as a court of competent jurisdiction
may otherwise direct.

 

The Collateral Agent shall have absolute
discretion as to the time of application of any such proceeds, moneys or
balances in accordance with this Agreement. 
Upon any sale of Collateral by the Collateral Agent (including pursuant
to a power of sale granted by statute or under a judicial proceeding), the
receipt of the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold
and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Collateral Agent
or such officer or be answerable in any way for the misapplication thereof.

 

SECTION 5.03.  Grant of License to Use Intellectual
Property.  For the purpose of
enabling the Collateral Agent to exercise rights and remedies under this
Agreement at such time as the Collateral Agent shall be lawfully entitled to
exercise such rights and remedies, each Grantor hereby grants to the Collateral
Agent an irrevocable, nonexclusive license (exercisable without payment of
royalty or other compensation to the Grantors) to use, license or sublicense
any of the Article 9 Collateral consisting of Intellectual Property now
owned or hereafter acquired by such Grantor, and wherever the same may be
located, and including in such license reasonable access to all media in which any
of the licensed items may be recorded or stored and to all computer software
and programs used for the compilation or printout thereof.  The use of such license by the Collateral
Agent may only be exercised, at the option of the Collateral Agent, upon the
occurrence and during the continuation of an Event of Default after written
notice is given to SSCE of the Collateral Agent’s election to exercise such
license; provided that any license, sublicense or other transaction
entered into by the Collateral Agent in accordance herewith shall be binding
upon the Grantors notwithstanding any subsequent cure of an Event of Default.  In operating under the license granted by
each Grantor pursuant to this Section 5.03, the Collateral Agent
agrees that the goods sold and services rendered under any Trademarks shall be
of a nature and quality substantially consistent with those theretofore offered
under such Trademarks by such Grantor and such Grantor shall have the right to
inspect during the term of such license, at any reasonable time or times upon
reasonable notice to the Collateral Agent, and at such Grantor’s own cost and 

 

20

 

expense, representative samples of goods sold and services rendered
under such Trademarks.

 

SECTION 5.04.  Securities Act.  In view of the position of the Grantors in
relation to the Pledged Collateral, or because of other current or future
circumstances, a question may arise under the Securities Act of 1933, as now or
hereafter in effect, or any similar statute hereafter enacted analogous in
purpose or effect (such Act and any such similar statute as from time to time
in effect being called the “Federal Securities Laws”) with respect to any
disposition of the Pledged Collateral permitted hereunder.  Each Grantor understands that compliance with
the Federal Securities Laws might very strictly limit the course of conduct of
the Collateral Agent if the Collateral Agent were to attempt to dispose of all
or any part of the Pledged Collateral, and might also limit the extent to which
or the manner in which any subsequent transferee of any Pledged Collateral
could dispose of the same.  Similarly,
there may be other legal restrictions or limitations affecting the Collateral
Agent in any attempt to dispose of all or part of the Pledged Collateral under
applicable Blue Sky or other state securities laws or similar laws analogous in
purpose or effect.  Each Grantor
recognizes that in light of such restrictions and limitations the Collateral
Agent may, with respect to any sale of the Pledged Collateral, limit the
purchasers to those who will agree, among other things, to acquire such Pledged
Collateral for their own account, for investment, and not with a view to the
distribution or resale thereof.  Each Grantor
acknowledges and agrees that in light of such restrictions and limitations, the
Collateral Agent, in its sole and absolute discretion (a) may proceed to
make such a sale whether or not a registration statement for the purpose of
registering such Pledged Collateral or part thereof shall have been filed under
the Federal Securities Laws and (b) may approach and negotiate with a
single potential purchaser to effect such sale. 
Each Grantor acknowledges and agrees that any such sale might result in
prices and other terms less favorable to the seller than if such sale were a
public sale without such restrictions. 
In the event of any such sale, the Collateral Agent shall incur no
responsibility or liability for selling all or any part of the Pledged Collateral
at a price that the Collateral Agent, in its sole and absolute discretion, may
in good faith deem reasonable under the circumstances, notwithstanding the
possibility that a substantially higher price might have been realized if the
sale were deferred until after registration as aforesaid or if more than a
single purchaser were approached.  The
provisions of this Section 5.04 will apply notwithstanding the
existence of a public or private market upon which the quotations or sales
prices may exceed substantially the price at which the Collateral Agent sells.

 

ARTICLE VI

Indemnity, Subrogation and Subordination

 

SECTION 6.01.  Indemnity and Subrogation.  In addition to all such rights of indemnity
and subrogation as the Guarantors may have under applicable law (but subject to
Section 6.03), each Borrower agrees that (a) in the event a
payment of an obligation shall be made by any Guarantor under this Agreement, such
Borrower shall indemnify such Guarantor for the full amount of such payment and
such Guarantor shall be subrogated to the rights of the Person to whom such
payment shall have been made to 

 

21

 

the extent of such payment and (b) in the event any assets of any
Grantor shall be sold pursuant to this Agreement or any other Security Document
to satisfy in whole or in part an obligation owed to any Secured Party, such Borrower
shall indemnify such Grantor in an amount equal to the greater of the book
value or the fair market value of the assets so sold.

 

SECTION 6.02.  Contribution and Subrogation.  Each Guarantor and Grantor (a “Contributing Party”) agrees
(subject to Section 6.03) that, in the event a payment shall be
made by any other Guarantor hereunder in respect of any Obligation or assets of
any other Grantor shall be sold pursuant to any Security Document to satisfy
any Obligation owed to any Secured Party and such other Guarantor or Grantor
(the “Claiming
Party”) shall not have been fully indemnified by the Borrowers as provided in
Section 6.01, the Contributing Party shall indemnify the Claiming
Party in an amount equal to the amount of such payment or the greater of the
book value or the fair market value of such assets, as the case may be, in each
case multiplied by a fraction of which the numerator shall be the net worth of
the Contributing Party on the date hereof and the denominator shall be the
aggregate net worth of all the Guarantors and Grantors on the date hereof (or,
in the case of any Guarantor or Grantor becoming a party hereto pursuant to Section 7.14,
the date of the supplement hereto executed and delivered by such Guarantor or
Grantor).  Any Contributing Party making
any payment to a Claiming Party pursuant to this Section 6.02 shall
be subrogated to the rights of such Claiming Party under Section 6.01
to the extent of such payment.

 

SECTION 6.03.  Subordination.  (a)  Notwithstanding any provision of
this Agreement to the contrary, all rights of the Guarantors and Grantors under
Sections 6.01 and 6.02 and all other rights of indemnity,
contribution or subrogation under applicable law or otherwise shall be fully
subordinated to the indefeasible payment in full in cash of the
Obligations.  No failure on the part of any
Borrower or any Guarantor or Grantor to make the payments required by Sections 6.01
and 6.02 (or any other payments required under applicable law or
otherwise) shall in any respect limit the obligations and liabilities of any
Guarantor or Grantor with respect to its obligations hereunder, and each
Guarantor and Grantor shall remain liable for the full amount of the
obligations of such Guarantor or Grantor hereunder.

 

(b)  Each Guarantor and Grantor hereby
agrees that all Indebtedness and other monetary obligations owed by it to any
other Guarantor, Grantor or any other Subsidiary shall be fully subordinated to
the indefeasible payment in full in cash of the Obligations.

 

ARTICLE VII

Miscellaneous

 

SECTION 7.01.  Notices.  All communications and notices hereunder
shall (except as otherwise expressly permitted herein) be in writing and given
as provided in Section 11.01 of the Credit Agreement.  All communications and notices hereunder to 

 

22

 

any Subsidiary Party shall be given to it in care of SSCE as provided
in Section 11.01 of the Credit Agreement.

 

SECTION 7.02.  Waivers; Amendment.  (a)  No failure or delay by the
Collateral Agent, the Revolving Facility Facing Agent or any Lender in
exercising any right or power hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. 
The rights and remedies of the Agents, the Facing Agents and the Lenders
hereunder and under the other Loan Documents are cumulative and are not
exclusive of any rights or remedies that they would otherwise have.  No waiver of any provision of this Agreement
or consent to any departure by any Loan Party therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) below,
and then such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. 
Without limiting the generality of the foregoing, the making of a Loan
or issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether any Agent, any Lender or any Facing Agent may
have had notice or knowledge of such Default at the time.  No notice or demand on any Loan Party in any
case shall entitle any Loan Party to any other or further notice or demand in
similar or other circumstances.

 

(b)  Neither this Agreement nor any
provision hereof may be waived, amended or modified except pursuant to an
agreement or agreements in writing entered into by the Collateral Agent and the
Loan Party or Loan Parties with respect to which such waiver, amendment or
modification is to apply, subject to any consent required in accordance with Section 11.02
of the Credit Agreement.

 

SECTION 7.03.  Collateral Agent’s Fees and Expenses;
Indemnification.  (a)  The
parties hereto agree that the Collateral Agent shall be entitled to
reimbursement of its reasonable out-of-pocket expenses incurred hereunder as
provided in Section 11.05 of the Credit Agreement.

 

(b)  Without limitation of its
indemnification obligations under the other Loan Documents, each Grantor and
each Guarantor jointly and severally agrees to indemnify the Collateral Agent
against, and hold the Collateral Agent harmless from, any and all losses,
claims, damages, liabilities and related expenses, including reasonable counsel
fees, disbursements and other charges, incurred by or asserted against the
Collateral Agent arising out of, in connection with, or as a result of, the
execution, delivery or performance of this Agreement or any claim, litigation,
investigation or proceeding relating to any of the foregoing agreement or
instrument contemplated hereby, or to the Collateral, whether or not any
Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses have
resulted from the gross negligence or wilful misconduct of the Collateral Agent.

 

23

 

(c)  Any such amounts payable as
provided hereunder shall be additional Obligations secured hereby and by the
other Security Documents.  The provisions
of this Section 7.03 shall remain operative and in full force and
effect regardless of the termination of this Agreement or any other Loan
Document, the consummation of the transactions contemplated hereby, the
repayment of any of the Obligations, the invalidity or unenforceability of any
term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Collateral Agent or any other Secured
Party.  All amounts due under this Section 7.03
shall be payable on written demand therefor.

 

SECTION 7.04.  Successors and Assigns.  Whenever in this Agreement any of the parties
hereto is referred to, such reference shall be deemed to include the permitted
successors and assigns of such party; and all covenants, promises and
agreements by or on behalf of any Guarantor, Grantor or the Collateral Agent
that are contained in this Agreement shall bind and inure to the benefit of
their respective successors and assigns.

 

SECTION 7.05.  Survival of Agreement.  All covenants, agreements, representations
and warranties made by the Loan Parties in the Loan Documents and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the Lenders and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any Lender or on its
behalf and notwithstanding that any Agent, any Facing Agent, or any Lender may
have had notice or knowledge of any Default or incorrect representation or
warranty at the time any credit is extended under the Credit Agreement, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any Fee or any other amount payable under any
Loan Document is outstanding and unpaid or any Letter of Credit is outstanding
and so long as the Commitments have not expired or terminated.

 

SECTION 7.06.  Counterparts; Effectiveness; Several
Agreement.  This Agreement may be
executed in counterparts, each of which shall constitute an original but all of
which when taken together shall constitute single contract.  Delivery of an executed signature page to
this Agreement by facsimile transmission shall be as effective as delivery of a
manually signed counterpart of this Agreement. 
This Agreement shall become effective as to any Loan Party when a
counterpart hereof executed on behalf of such Loan Party shall have been
delivered to the Collateral Agent and a counterpart hereof shall have been
executed on behalf of the Collateral Agent, and thereafter shall be binding
upon such Loan Party and the Collateral Agent and their respective permitted
successors and assigns, and shall inure to the benefit of such Loan Party, the
Collateral Agent and the other Secured Parties and their respective successors
and assigns, except that no Loan Party shall have the right to assign or
transfer its rights or obligations hereunder or any interest herein (and any
such assignment or transfer shall be void) except as expressly permitted by the
Credit Agreement.  This Agreement shall
be construed as a separate agreement with respect to each Loan Party and may be
amended, modified, supplemented, waived or released with respect to any Loan
Party without the 

 

24

 

approval of any other Loan Party and without affecting the obligations
of any other Loan Party hereunder.

 

SECTION 7.07.  Severability.  Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other
jurisdiction.  The parties shall endeavor
in good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

 

SECTION 7.08.  Right of Set-Off.  Each Loan Party expressly agrees to the
provisions set forth in Section 11.06 of the Credit Agreement with the
same force and effect as if such provisions were set forth in full herein.

 

SECTION 7.09.  Governing Law; Jurisdiction; Consent to
Service of Process.  (a)  This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York, including Sections 5-1401 and 5-1402 of
Title 14 of the New York General Obligations Law but excluding all other
choice of law and conflicts of laws rules thereof.

 

(b)  Each of the Loan Parties hereby
irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of the Supreme Court of the State of New York sitting
in New York County and of the United States District Court of the Southern
District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Agreement or any other Loan
Document, or for recognition or enforcement of any judgment, and each of the
parties hereto hereby irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement or any other Loan Document shall affect any right that the Collateral
Agent, the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against any
Grantor or Guarantor, or its properties in the courts of any jurisdiction.

 

(c)  Each of the Loan Parties hereby
irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
this Agreement or any other Loan Document in any court referred to in paragraph
(b) above.  Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

 

25

 

(d)  Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices
in Section 7.01.  Nothing in
this Agreement or any other Loan Document will affect the right of any party to
this Agreement to serve process in any other manner permitted by law.

 

SECTION 7.10.  WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.10.

 

SECTION 7.11.  Headings.  Article and Section headings and
the Table of Contents used herein are for convenience of reference only, are
not part of this Agreement and are not to affect the construction of, or to be
taken into consideration in interpreting, this Agreement.

 

SECTION 7.12.  Security Interest Absolute.  All rights of the Collateral Agent hereunder,
the Security Interest, the grant of a security interest in the Pledged
Collateral and all obligations of each Grantor and Guarantor hereunder shall be
absolute and unconditional irrespective of (a) any lack of validity or
enforceability of the Credit Agreement, any other Loan Document, any agreement
with respect to any of the Obligations or any other agreement or instrument
relating to any of the foregoing, (b) any change in the time, manner or
place of payment of, or in any other term of, all or any of the Obligations, or
any other amendment or waiver of or any consent to any departure from the
Credit Agreement, any other Loan Document or any other agreement or instrument,
(c) any exchange, release or non-perfection of any Lien on other
collateral, or any release or amendment or waiver of or consent under or
departure from any guarantee, securing or guaranteeing all or any of the
Obligations, or (d) any other circumstance that might otherwise constitute
a defense available to, or a discharge of, any Grantor or Guarantor in respect
of the Obligations or this Agreement.

 

SECTION 7.13.  Termination or Release.  (a)  This Agreement, the Guarantees made
herein, the Security Interest and all other security interests granted hereby
shall terminate upon the payment in full in cash of the Loans and all the other
Loan Documents Obligations (other than unasserted contingent and
indemnification obligations), termination of all Commitments (including
commitments of the Facing Agents to issue Letters of Credit) and reduction of
the LC Exposure to zero (or the 

 

26

 

making of other arrangements satisfactory to the Senior Agents and each
applicable Facing Agent).

 

(b)  A Subsidiary Party (other than
SSCE) shall automatically be released from its obligations hereunder and the
Security Interest in the Collateral of such Subsidiary Party shall be
automatically released upon the consummation of any transaction permitted by
the Credit Agreement as a result of which such Subsidiary Party ceases to be a
Subsidiary of SSCC; provided
that the Required Lenders shall have consented to such transaction (to the
extent required by the Credit Agreement) and the terms of such consent did not
provide otherwise.

 

(c)  Upon any sale or other transfer by
any Grantor of any Collateral that is permitted under the Credit Agreement, or
upon the effectiveness of any written consent to the release of the security
interest granted hereby in any Collateral pursuant to Section 11.08
of the Credit Agreement, the security interest in such Collateral shall be
automatically released.

 

(d)  In connection with any termination
or release pursuant to paragraph (a), (b) or (c), the Collateral
Agent shall execute and deliver to any Grantor, at such Grantor’s expense, all
documents that such Grantor shall reasonably request to evidence such
termination or release, provided, however, that (i) the
Collateral Agent shall not be required to execute any such document on terms
which, in its opinion, would expose it to liability or create any obligation or
entail any consequence other than the release of such Liens without recourse or
warranty, and (ii) such release shall not in any manner discharge, affect
or impair the Obligations or any Liens upon (or obligations of SSCC or any of
the Subsidiaries in respect of) all interests in Collateral retained by SSCC or
any of the Subsidiaries.  Any execution
and delivery of documents pursuant to this Section 7.13 shall be
without recourse to or warranty by the Collateral Agent.

 

SECTION 7.14.  Additional Subsidiaries.  Pursuant to Sections 6.10 and 7.05(f) of
the Credit Agreement, certain Domestic Subsidiaries are required to enter into
this Agreement as a Subsidiary Party.  Upon
execution and delivery by the Collateral Agent and a Subsidiary of an
instrument in the form of Exhibit I hereto, such Subsidiary shall
become a Subsidiary Party hereunder with the same force and effect as if
originally named as a Subsidiary Party herein. 
The execution and delivery of any such instrument shall not require the
consent of any other Loan Party hereunder. 
The rights and obligations of each Loan Party hereunder shall remain in
full force and effect notwithstanding the addition of any new Loan Party as a
party to this Agreement.

 

SECTION 7.15.  Collateral Agent Appointed
Attorney-in-Fact.  Each Grantor
hereby appoints the Collateral Agent the attorney-in-fact of such Grantor for
the purpose of carrying out the provisions of this Agreement and taking any
action and executing any instrument that the Collateral Agent may deem
necessary or advisable to accomplish the purposes hereof, which appointment is
irrevocable and coupled with an interest. 
The Collateral Agent agrees that it shall not exercise any power or
authority granted under this Section 7.15 unless an Event of
Default has occurred and is continuing.  Without
limiting the generality of the foregoing, the Collateral Agent shall 

 

27

 

have the right, upon the occurrence and during the continuance of an
Event of Default, with full power of substitution either in the Collateral
Agent’s name or in the name of such Grantor (a) to receive, endorse,
assign and/or deliver any and all notes, acceptances, checks, drafts, money
orders or other evidences of payment relating to the Collateral or any part
thereof; (b) to demand, collect, receive payment of, give receipt for and
give discharges and releases of all or any of the Collateral; (c) to sign
the name of any Grantor on any invoice or bill of lading relating to any of the
Collateral; (d) to send verifications of Accounts Receivable to any
Account Debtor; (e) to commence and prosecute any and all suits, actions
or proceedings at law or in equity in any court of competent jurisdiction to collect
or otherwise realize on all or any of the Collateral or to enforce any rights
in respect of any Collateral; (f) to settle, compromise, compound, adjust
or defend any actions, suits or proceedings relating to all or any of the
Collateral; (g) to make, settle and adjust claims in respect of Article 9
Collateral under policies of insurance and to endorse the name of such Grantor
on any check, draft, instrument or any other item of payment for the proceeds
of such policies of insurance and for making all determinations and decisions
with respect thereto; (h) to notify, or to require any Grantor to notify,
Account Debtors to make payment directly to the Collateral Agent; and (i) to
use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise
deal with all or any of the Collateral, and to do all other acts and things
necessary to carry out the purposes of this Agreement, as fully and completely
as though the Collateral Agent were the absolute owner of the Collateral for
all purposes; provided that nothing herein contained shall be construed
as requiring or obligating the Collateral Agent to make any commitment or to
make any inquiry as to the nature or sufficiency of any payment received by the
Collateral Agent, or to present or file any claim or notice, or to take any
action with respect to the Collateral or any part thereof or the moneys due or
to become due in respect thereof or any property covered thereby.  The Collateral Agent and the other Secured
Parties shall be accountable only for amounts actually received as a result of
the exercise of the powers granted to them herein, and neither they nor their
officers, directors, employees or agents shall be responsible to any Grantor
for any act or failure to act hereunder, except for their own gross negligence
or wilful misconduct.

 

28

 

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

 

	
   

  	
   

  	
  SMURFIT-STONE
  CONTAINER CORPORATION,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SMURFIT-STONE
  CONTAINER ENTERPRISES, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JSC
  CAPITAL LLC,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS, as Collateral Agent,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

29

 

Exhibit I to the

Guarantee and

Collateral Agreement (U.S.)

 

SUPPLEMENT NO.      dated as of [            ],
to the Guarantee and Collateral Agreement (U.S.) dated as of November 1,
2004, among SMURFIT-STONE CONTAINER ENTERPRISES, INC., a Delaware corporation (“SSCE”), SMURFIT-STONE
CONTAINER CORPORATION, a Delaware corporation (“SSCC”), each other subsidiary of SSCC
party thereto (each such subsidiary individually a “Subsidiary Guarantor” and
collectively, the “Subsidiary
Guarantors”; the Subsidiary Guarantors, SSCC and SSCE are
referred to collectively herein as the “Grantors”) and DEUTSCHE BANK TRUST
COMPANY AMERICAS (“DBTCA”), as Collateral
Agent (in such capacity, the “Collateral Agent”).

 

A. 
Reference is made to the Credit Agreement dated as of November 1,
2004 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among SSCC, SSCE
, Smurfit-Stone Container Canada, Inc., the lenders from time to time
party thereto; JPMorgan Chase Bank, DBTCA and the other parties thereto.

 

B. 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in the Credit Agreement and the Collateral
Agreement referred to therein.

 

C.  The
Grantors have entered into the Collateral Agreement in order to induce the
Lenders to make Loans and the Facing Agents to issue Letters of Credit.  Section 7.14 of Collateral
Agreement provides that additional Domestic Subsidiaries of SSCC may become
Subsidiary Parties under the Collateral Agreement by execution and delivery of
an instrument in the form of this Supplement. 
The undersigned Subsidiary (the “New Subsidiary”) is executing this
Supplement in accordance with the requirements of the Credit Agreement to
become a Subsidiary Party under the Collateral Agreement in order to induce the
Lenders to make additional Loans and the Facing Agents to issue additional
Letters of Credit and as consideration for Loans previously made and Letters of
Credit previously issued.

 

Accordingly, the Collateral Agent and the New
Subsidiary agree as follows:

 

SECTION 1.  In accordance with Section 7.14
of the Collateral Agreement, the New Subsidiary by its signature below becomes
a Subsidiary Party, Grantor and Guarantor under the Collateral Agreement with
the same force and effect as if originally named therein as a Subsidiary Party,
Grantor and Guarantor and the New Subsidiary hereby (a) agrees to all the
terms and provisions of the Collateral Agreement applicable to it as a
Subsidiary Party, Grantor and Guarantor thereunder and (b) represents and
warrants that the representations and warranties made by it as a

 

 

Grantor and Guarantor
thereunder are true and correct on and as of the date hereof.  In furtherance of the foregoing, the New
Subsidiary, as security for the payment and performance in full of the
Obligations (as defined in the Collateral Agreement), does hereby create and
grant to the Collateral Agent, its successors and assigns, for the benefit of
the Secured Parties, their successors and assigns, a security interest in and
lien on all of the New Subsidiary’s right, title and interest in and to the
Collateral (as defined in the Collateral Agreement) of the New Subsidiary.  Each reference to a “Guarantor” or “Grantor” in the
Collateral Agreement shall be deemed to include the New Subsidiary.  The Collateral Agreement is hereby
incorporated herein by reference.

 

SECTION 2.  The New Subsidiary represents and warrants to
the Collateral Agent and the other Secured Parties that this Supplement has
been duly authorized, executed and delivered by it and constitutes its legal,
valid and binding obligation, enforceable against it in accordance with its
terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and subject to general principles of
equity (whether enforcement is sought by a proceeding in equity or at law).

 

SECTION 3.  This Supplement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract. This Supplement shall become effective when
the Collateral Agent shall have received a counterpart of this Supplement that
bears the signature of the New Subsidiary and the Collateral Agent has executed
a counterpart hereof.  Delivery of an
executed signature page to this Supplement by facsimile transmission shall
be as effective as delivery of a manually signed counterpart of this
Supplement.

 

SECTION 4.  The New Subsidiary hereby represents and
warrants that (a) set forth on Schedule I attached hereto is a
true and correct schedule of any and all Pledged Collateral, and any and all
Collateral constituting Intellectual Property, of the New Subsidiary and (b) set
forth under its signature hereto, is the true and correct legal name of the New
Subsidiary, its jurisdiction of formation and the location of its chief
executive office.

 

SECTION 5.  Except as expressly supplemented hereby, the
Collateral Agreement shall remain in full force and effect.

 

SECTION 6.  THIS SUPPLEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 7.  In case any one or more of the provisions
contained in this Supplement should be held invalid, illegal or unenforceable
in any respect, the validity, legality and enforceability of the remaining
provisions contained herein and in the Collateral Agreement shall not in any
way be affected or impaired thereby (it being understood that the invalidity of
a particular provision in a particular jurisdiction shall not 

 

2

 

in and of itself affect the
validity of such provision in any other jurisdiction). The parties hereto shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

 

SECTION 8.  All communications and notices hereunder
shall be in writing and given as provided in Section 7.01 of the
Collateral Agreement.

 

SECTION 9.  The New Subsidiary agrees to reimburse the
Collateral Agent for its reasonable out-of-pocket expenses in connection with
this Supplement, including the reasonable fees, other charges and disbursements
of counsel for the Collateral Agent.

 

3

 

IN WITNESS WHEREOF, the New Subsidiary and
the Collateral Agent have duly executed this Supplement to the Collateral
Agreement as of the day and year first above written.

 

	
   

  	
   

  	
  [NAME
  OF NEW SUBSIDIARY],

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Legal
  Name:

  
	
   

  	
   

  	
   

  	
  Jurisdiction
  of Formation:

  
	
   

  	
   

  	
   

  	
  Location
  of Chief Executive office:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE
  BANK TRUST COMPANY AMERICAS, as Collateral Agent,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

4

 

Schedule I

to the Supplement No.      to the

Guarantee and

Collateral
Agreement (U.S.)

 

EQUITY INTERESTS

 

	
  Issuer

  	
   

  	
  Number of

  Certificate

  	
   

  	
  Registered

  Owner

  	
   

  	
  Number and

  Class of

  Equity Interests

  	
   

  	
  Percentage

  of Equity Interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

DEBT SECURITIES

 

	
  Issuer

  	
   

  	
  Principal

  Amount

  	
   

  	
  Date of Note

  	
   

  	
  Maturity Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

INTELLECTUAL PROPERTY

 

 

EXHIBIT E

 

[FORM OF]

 

REVOLVING FACILITY

LETTER OF CREDIT REQUEST

Date:                       

 

Deutsche Bank Trust Company Americas

90 Hudson Street, 1st Floor

Jersey City, NJ 07302

 

Attention: 
Standby Letter of Credit Unit

 

Ladies and Gentlemen:

 

Reference is made to the Credit Agreement (as
amended, restated, modified or supplemented from time to time, the “Credit
Agreement”), dated as of November 1, 2004, among Smurfit-Stone
Container Corporation, Smurfit-Stone Container Enterprises, Inc.,
Smurfit-Stone Container Canada Inc., the lenders from time to time party
thereto, JPMorgan Chase Bank, Deutsche Bank Trust Company Americas and Deutsche
Bank AG.

 

We hereby request that                            
(1), as Revolving Facility Facing Agent under the Credit Agreement, issue an
irrevocable [standby] [commercial] Letter of Credit for the account of the
undersigned on                    
(2) (the “Date of Issuance”) in U.S. Dollars in an aggregate stated
amount of $                 
(3). 

 

For purposes of this Letter of Credit
Request, unless otherwise defined herein, all capitalized terms used herein
which are defined in the Credit Agreement shall have the meaning specified
therein.

 

The beneficiary of the Letter of Credit will
be                   
(4), and such Letter of Credit will support                   
(5) and will have a stated expiration date of                   
(6).

 

(1) Insert name of
applicable Facing Agent.  Deutsche Bank
Trust Company Americas cannot issue commercial Letters of Credit. 

 

(2) Insert proposed
issuance date, which must be a Business Day. 

 

(3) Insert initial stated
amount.

 

(4) Insert full name
and address of the beneficiary.

 

(5) Insert brief
description of obligation to be supported by the Letter of Credit.

 

 

We further certify that:

 

(1) The representations and warranties
set forth in Article IV of the Credit Agreement and in the other
Loan Documents are and will be true and correct in all material respects on and
as of the Date of Issuance with the same effect as though made on and as of
such date, except to the extent that such representations and warranties
expressly relate to an earlier date;

 

(2) At the time of and immediately after
the issuance of the Letter of Credit requested hereby, no Default or Event of
Default has occurred and is continuing; and

 

(3) As of the Date of Issuance, after
giving effect to the issuance of the Letter of Credit requested hereby, (i) the
Revolving Facility LC Exposure and (ii) the Revolving Credit Utilization
shall not exceed the limits as specified in Section 3.02 of the Credit
Agreement.

 

Copies of all documentation with respect to
the supported transaction are attached hereto.

 

	
   

  	
   

  	
  SMURFIT-STONE
  CONTAINER ENTERPRISES, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

(6) The
Letter of Credit must expire at or prior to the close of business on the
earliest of (i) the date one year after the date of the issuance of such
Letter of Credit and (ii) the date that is five Business Days prior to the
Revolving Credit Maturity Date.

 

2

 

EXHIBIT F

 

[FORM OF]

 

REVOLVING (CANADIAN) FACILITY

LETTER OF CREDIT REQUEST

Date:
                  

 

[Deutsche
Bank AG

222
Bay Street, Suite 1100

Toronto,
Ontario, Canada M5K1E7

Fax:  (416) 682-8444]

 

Attention:  Karyn Curran

 

Deutsche
Bank Trust Company Americas,

as Administrative Agent

90 Hudson Street, 1st Floor

Jersey City, NJ 07302

 

Ladies
and Gentlemen:

 

Reference is made to the Credit Agreement (as
amended, restated, modified or supplemented from time to time, the “Credit
Agreement”), dated as of November 1, 2004, among Smurfit-Stone
Container Corporation, Smurfit-Stone Container Enterprises, Inc.,
Smurfit-Stone Container Canada Inc., the lenders from time to time party
thereto, JPMorgan Chase Bank, Deutsche Bank Trust Company Americas and Deutsche
Bank AG.

 

We hereby request that                         (1),
as Revolving (Canadian) Facility Facing Agent under the Credit Agreement, issue
an irrevocable [standby] [commercial] Letter of Credit for account of the undersigned
on                
(2) the “Date of Issuance”) in [U.S. Dollars] [Canadian Dollars] in
an aggregate stated amount of               (3).

 

(1) Insert name of
applicable Facing Agent.  Deutsche Bank
AG cannot issue commercial Letters of Credit. 

 

(2) Insert proposed
issuance date, which must be a Business Day. 

 

(3) Insert initial
stated amount of Canadian Dollars or U.S. Dollars.

 

 

For purposes of this Letter of Credit
Request, unless otherwise defined herein, all capitalized terms used herein which
are defined in the Credit Agreement shall have the meaning specified therein.

 

The
beneficiary of the Letter of Credit will be                    
(4), and such Letter of Credit will support       (5) and
will have a stated expiration date of                         (6).

 

We
further certify that:

 

(1) The representations and warranties
set forth in Article IV of the Credit Agreement and in the other
Loan Documents are and will be true and correct in all material respects on and
as of the Date of Issuance with the same effect as though made on and as of
such date, except to the extent that such representations and warranties
expressly relate to an earlier date;

 

(2) At the time of and immediately after
the issuance of the Letter of Credit requested hereby, no Default or Event of
Default has occurred and is continuing; and

 

(3) As of the Date of Issuance, after
giving effect to the issuance of the Letter of Credit requested hereby, (i) The
Revolving (Canadian) Facility LC Exposure and (ii) the Revolving (Canadian)
Credit Utilization shall not exceed the limits as specified in Section 3.02
of the Credit Agreement.

 

Copies of all documentation with respect to
the supported transaction are attached hereto.

 

 

	
   

  	
   

  	
  SMURFIT-STONE
  CONTAINER CANADA INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

(4) Insert
full name and address of the beneficiary.

 

(5) Insert
brief description of obligation to be supported by the Letter of Credit.

 

(6) The
Letter of Credit must expire at or prior to the close of business on the
earliest of (i) the date one year after the date of the issuance of such
Letter of Credit and (ii) the date that is five Business Days prior to the
Revolving Credit Maturity Date.

 

2

 

EXHIBIT
G

 

[FORM OF]

 

DEPOSIT FUNDED FACILITY

LETTER OF CREDIT REQUEST

Date:                  

 

JPMorgan Chase Bank

270 Park Avenue

New York, NY 10017

 

Attention: 
Standby Letter of Credit Unit

 

Deutsche Bank Trust Company Americas,
    as Administrative Agent

90 Hudson Street, 1st Floor

Jersey City, NJ  07302

 

Ladies and Gentlemen:

 

Reference is made to the Credit Agreement (as
amended, restated, modified or supplemented from time to time, the “Credit
Agreement”), dated as of November 1, 2004, among Smurfit-Stone
Container Corporation, Smurfit-Stone Container Enterprises, Inc. and
Smurfit-Stone Container Canada Inc., the lenders from time to time party
thereto, JPMorgan Chase Bank, Deutsche Bank Trust Company Americas and Deutsche
Bank AG.

 

We hereby request that [JPMorgan Chase
Bank](1), as Deposit Funded Facility Facing Agent under the Credit Agreement,
issue an irrevocable Deposit Funded Facility Letter of Credit for the account
of the undersigned on                 
(2) (the “Date of Issuance”) in U.S. Dollars in an aggregate stated
amount of $                  
(3). 

 

For purposes of this Deposit Funded Facility
Letter of Credit Request, unless otherwise defined herein, all capitalized
terms used herein which are defined in the Credit Agreement shall have the
meaning specified therein.

 

(1) If JPMCB has been
replaced as Deposit Funded Facility Facing Agent pursuant to Section 3.10
of the Credit Agreement, insert name of Lender that replaces JPMCB. 

 

(2) Insert proposed
issuance date, which must be a Business Day. 

 

(3) Insert initial
stated amount.

 

 

The beneficiary of the Deposit Funded
Facility Letter of Credit will be              
(4), and such Deposit Funded Facility Letter of Credit will support                      
(5) and will have a stated expiration date of                      
(6).

 

We further certify that:

 

(1) The representations and warranties
set forth in Article IV of the Credit Agreement and in the other
Loan Documents are and will be true and correct in all material respects on and
as of the Date of Issuance with the same effect as though made on and as of
such date, except to the extent that such representations and warranties
expressly relate to an earlier date;

 

(2) At the time of and immediately after
the issuance of the Deposit Funded Facility Letter of Credit requested hereby,
no Default or Event of Default has occurred and is continuing; and

 

(3) As of the Date of Issuance, after
giving effect to the issuance of the Deposit Funded Facility Letter of Credit
requested hereby, (i) the Deposit Funded LC Exposure and (ii) the
Deposit Funded Utilization shall not exceed the limits as specified in Section 3.02
of the Credit Agreement.

 

Copies of all documentation with respect to
the supported transaction are attached hereto.

 

	
   

  	
   

  	
  SMURFIT-STONE
  CONTAINER ENTERPRISES, INC.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

(4) Insert full name
and address of the beneficiary.

 

(5) Insert brief
description of obligation to be supported by the Letter of Credit.

 

(6) The Deposit Funded
Facility Letter of Credit must expire at or prior to the close of business on
the earliest of (i) the date one year after the date of the issuance of
such Letter of Credit and (ii) the date that is five Business Days prior
to the Deposit Funded Maturity Date.

 

2

 

EXHIBIT H

 

 

[FORM OF]

 

MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT

AND FINANCING STATEMENT

 

From

 

SMURFIT-STONE CONTAINER ENTERPRISES, INC.

 

To

 

DEUTSCHE BANK TRUST COMPANY AMERICAS,

As Collateral Agent

 

 

Dated: 
November 1, 2004

Premises:

 

 

 

 

THIS MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND
FINANCING STATEMENT dated and effective as of November 1, 2004 (this “Mortgage”), by SMURFIT-STONE CONTAINER
ENTERPRISES, INC., a Delaware corporation, having an office at 8182 Maryland
Avenue, St. Louis, Missouri  63105 (the “Mortgagor”), to DEUTSCHE BANK TRUST
COMPANY AMERICAS, a New York banking corporation, having an office at 90
Hudson Street, 1st Floor, Jersey City, New Jersey  07302
(the “Mortgagee”) as Collateral Agent for the Secured Parties (as such
terms are defined below).

 

WITNESSETH THAT:

 

Reference is made to (i) the
Credit Agreement dated as of the date hereof (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among Smurfit-Stone
Container Corporation (“SSCC”),
Mortgagor, Smurfit-Stone Container Canada Inc. (“SSC Canada”
and, together with Mortgagor, the “Borrowers”),
the Lenders from time to time party thereto, JPMorgan Chase Bank, as Senior
Agent, Deposit Account Agent and Deposit Funded Facility Facing Agent, Deutsche
Bank Trust Company Americas, as Senior Agent, Administrative Agent, Collateral
Agent, Swingline Lender and Revolving Facility Facing Agent, and Deutsche Bank
AG, as Canadian Administrative Agent and Revolving (Canadian) Facility Facing
Agent, (ii) the Guarantee and Collateral Agreement (U.S.) dated as of the
date hereof, among SSCC, Mortgagor, the other domestic subsidiaries of SSCC
party thereto and the Collateral Agent, (iii) the Canadian Guarantee
Agreements, (iv) the Canadian Security Agreements and the Hypothecs, and (v) each
of the other Security Documents executed by any Loan Party in favor of the
Collateral Agent pursuant to Section 5.02(f) or Section 6.10 of
the Credit Agreement (the agreements and other documents referred to in clauses
(ii) through (v) above being collectively referred to herein as the “Security Agreements”). 
Capitalized terms used but not defined herein have the meanings given to
them in the Credit Agreement or the Security Agreements.

 

In the Credit Agreement, the
Lenders have agreed to make Loans and the Facing Agents have agreed to issue
Letters of Credit, in each case pursuant to, upon the terms, and subject to the
conditions specified in the Credit Agreement. 
The aggregate principal amount of the Loans and Letters of Credit from
time to time outstanding and secured hereby, together with the aggregate amount
of obligations from time to time outstanding under Swap Agreements entered into
with a Loan Party the obligations under which constitute Obligations secured
hereby, shall not exceed $2,200,000,000.

 

Mortgagor is one of the
Borrowers and will derive substantial benefit from the making of the Loans by
the Lenders and the issuance of the Letters of Credit by the Facing
Agents.  In order to induce the Lenders
to make Loans and the Facing Agents to issue Letters of Credit, the Mortgagor
has agreed to grant this Mortgage to secure, among other things, the due and
punctual payment and performance of all of the Obligations.

 

 

The obligations of the Lenders
to make Loans and of the Facing Agents to issue Letters of Credit are
conditioned upon, among other things, the execution and delivery by the
Mortgagor of this Mortgage in the form hereof to secure the Obligations.

 

As used in this Mortgage, the
term “Secured Parties” shall mean
(a) the Lenders, (b) the Collateral Agent, (c) the other Agents,
(d) the Facing Agents, (e) each counterparty to any Swap Agreement
entered into with a Loan Party the obligations under which constitute
Obligations, (f) the beneficiaries of each indemnification obligation
undertaken by any Loan Party under any Loan Document and (g) the
successors and assigns of each of the foregoing.

 

Pursuant to the requirements of
the Credit Agreement, the Mortgagor is granting this Mortgage to create a lien
on and a security interest in the Mortgaged Property (as hereinafter defined)
to secure the performance and payment by the Mortgagor of the Obligations.  The Credit Agreement also requires the
granting by other Loan Parties of mortgages, deeds of trust and/or deeds to
secure debt (the “Other Mortgages”)
that create liens on and security interests in certain real and personal
property other than the Mortgaged Property to secure the performance of the
Obligations.

 

Granting Clauses

 

NOW, THEREFORE, IN
CONSIDERATION OF the foregoing and in order to secure the due and punctual
payment and performance of the Obligations for the benefit of the Secured
Parties, Mortgagor hereby grants, conveys, mortgages, assigns and pledges to
the Mortgagee, a mortgage lien on and a security interest in, all the following
described property (the “Mortgaged Property”)
whether now owned or held or hereafter acquired:

 

(1) the land more particularly described
on Exhibit A hereto (the “Land”),
together with all rights appurtenant thereto, including the easements over
certain other adjoining land granted by any easement agreements, covenant or
restrictive agreements and all air rights, mineral rights, water rights, timber
rights, oil and gas rights and development rights, if any, relating thereto,
and also together with all of the other easements, rights, privileges,
interests, hereditaments and appurtenances thereunto belonging or in any way
appertaining and all of the estate, right, title, interest, claim or demand
whatsoever of Mortgagor therein and in the streets and ways adjacent thereto,
either in law or in equity, in possession or expectancy, now or hereafter
acquired (the “Premises”);

 

(2) all buildings, improvements,
structures, paving, parking areas, walkways and landscaping now or hereafter
erected or located upon the Land, and all fixtures of every kind and type
affixed to the Premises or attached to or forming part of any structures,
buildings or improvements and replacements thereof now or hereafter erected or
located upon the Land (the “Improvements”);

 

(3) all apparatus, movable appliances,
building materials, equipment, fittings, furnishings, furniture, machinery and
other articles of tangible personal property of every kind and nature, and
replacements thereof, now or at any time hereafter placed upon or used in any
way in connection with the use, enjoyment, occupancy or 

 

2

 

operation of
the Improvements or the Premises, including all of Mortgagor’s books and
records relating thereto and including all pumps, tanks, goods, machinery,
tools, equipment, lifts (including fire sprinklers and alarm systems, fire
prevention or control systems, cleaning rigs, air conditioning, heating, boilers,
refrigerating, electronic monitoring, water, loading, unloading, lighting,
power, sanitation, waste removal, entertainment, communications, computers,
recreational, window or structural, maintenance, truck or car repair and all
other equipment of every kind), restaurant, bar and all other indoor or outdoor
furniture (including tables, chairs, booths, serving stands, planters, desks,
sofas, racks, shelves, lockers and cabinets), bar equipment, glasses, cutlery,
uniforms, linens, memorabilia and other decorative items, furnishings,
appliances, supplies, inventory, rugs, carpets and other floor coverings,
draperies, drapery rods and brackets, awnings, venetian blinds, partitions,
chandeliers and other lighting fixtures, freezers, refrigerators, walk-in coolers,
signs (indoor and outdoor), computer systems, cash registers and inventory
control systems, and all other apparatus, equipment, furniture, furnishings,
and articles used in connection with the use or operation of the Improvements
or the Premises, it being understood that the enumeration of any specific
articles of property shall in no way result in or be held to exclude any items
of property not specifically mentioned (the property referred to in this
subparagraph (3), the “Personal
Property”);

 

(4) all general intangibles owned by
Mortgagor and relating to design, development, operation, management and use of
the Premises or the Improvements, all certificates of occupancy, zoning
variances, building, use or other permits, approvals, authorizations and
consents obtained from and all materials prepared for filing or filed with any
governmental agency in connection with the development, use, operation or
management of the Premises and Improvements, all construction, service,
engineering, consulting, leasing, architectural and other similar contracts
concerning the design, construction, management, operation, occupancy and/or
use of the Premises and Improvements, all architectural drawings, plans,
specifications, soil tests, feasibility studies, appraisals, environmental
studies, engineering reports and similar materials relating to any portion of
or all of the Premises and Improvements, and all payment and performance bonds
or warranties or guarantees relating to the Premises or the Improvements, all
to the extent assignable (the “Permits,
Plans and Warranties”);

 

(5) all now or hereafter existing leases
or licenses (under which Mortgagor is landlord or licensor) and subleases
(under which Mortgagor is sublandlord), concession, management, mineral or
other agreements of a similar kind that permit the use or occupancy of the
Premises or the Improvements for any purpose in return for any payment, or the
extraction or taking of any gas, oil, water or other minerals from the Premises
in return for payment of any fee, rent or royalty (collectively, “Leases”), and all agreements or contracts
for the sale or other disposition of all or any part of the Premises or the
Improvements, now or hereafter entered into by Mortgagor, together with all
charges, fees, income, issues, profits, receipts, rents, revenues or royalties
payable thereunder (“Rents”);

 

3

 

(6) all real estate tax refunds and all
proceeds of the conversion, voluntary or involuntary, of any of the Mortgaged Property
into cash or liquidated claims (“Proceeds”),
including Proceeds of insurance maintained by the Mortgagor and condemnation
awards, any awards that may become due by reason of the taking by eminent
domain or any transfer in lieu thereof of the whole or any part of the Premises
or Improvements or any rights appurtenant thereto, and any awards for change of
grade of streets, together with any and all moneys now or hereafter on deposit
for the payment of real estate taxes, assessments or common area charges levied
against the Mortgaged Property, unearned premiums on policies of fire and other
insurance maintained by the Mortgagor covering any interest in the Mortgaged
Property or required by the Credit Agreement; and

 

(7) all extensions, improvements, betterments,
renewals, substitutes and replacements of and all additions and appurtenances
to, the Land, the Premises, the Improvements, the Personal Property, the
Permits, Plans and Warranties and the Leases, hereinafter acquired by or
released to the Mortgagor or constructed, assembled or placed by the Mortgagor
on the Land, the Premises or the Improvements, and all conversions of the
security constituted thereby, immediately upon such acquisition, release,
construction, assembling, placement or conversion, as the case may be, and in
each such case, without any further mortgage, deed of trust, conveyance,
assignment or other act by the Mortgagor, all of which shall become subject to
the lien of this Mortgage as fully and completely, and with the same effect, as
though now owned by the Mortgagor and specifically described herein.

 

TO HAVE AND TO HOLD the
Mortgaged Property unto the Mortgagee, its successors and assigns, for the
ratable benefit of the Secured Parties, forever, subject only to Permitted
Liens and to satisfaction and release as provided in Section 3.04.

 

ARTICLE I

 

Representations,
Warranties and Covenants of Mortgagor

 

Mortgagor agrees, covenants, represents
and/or warrants as follows:

 

SECTION 1.01.  Title,
Mortgage Lien.  (a) 
Mortgagor has good and marketable fee simple title to the Mortgaged Property,
subject only to Permitted Liens.

 

(b)  The execution and delivery of this
Mortgage is within Mortgagor’s corporate powers and has been duly authorized by
all necessary corporate and, if required, stockholder action.  This Mortgage has been duly executed and
delivered by Mortgagor and constitutes a legal, valid and binding obligation of
Mortgagor, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

 

4

 

(c)  The execution, delivery and
recordation of this Mortgage (i) do not require any consent or approval
of, registration or filing with, or any other action by, any Governmental
Authority, except such as have been obtained or made and are in full force and
effect and except filings necessary to perfect the lien of this Mortgage, (ii) will
not violate any applicable law or regulation or the charter, by-laws or other
organizational documents of Mortgagor or any order of any Governmental
Authority, (iii) will not violate or result in a default under any
indenture, agreement or other instrument binding upon Mortgagor or its assets,
or give rise to a right thereunder to require any payment to be made by
Mortgagor, and (iv) will not result in the creation or imposition of any
Lien on any asset of Mortgagor, except the lien of this Mortgage.

 

(d)  This Mortgage and the Uniform
Commercial Code Financing Statements described in Section 1.09 of this
Mortgage, when duly recorded in the public records identified in the Perfection
Certificate will create a valid, perfected and enforceable lien upon and
security interest in all of the Mortgaged Property.

 

(e)  Mortgagor will forever warrant and
defend its title to the Mortgaged Property, the rights of Mortgagee therein
under this Mortgage and the validity and priority of the lien of this Mortgage
thereon against the claims of all persons and parties except those having
rights under Permitted Liens to the extent of those rights.

 

SECTION 1.02.  Credit
Agreement.  This Mortgage
is given pursuant to the Credit Agreement. 
Mortgagor expressly covenants and agrees to pay when due, and to timely
perform, and to cause the other Loan Parties to pay when due, and to timely
perform, the Obligations in accordance with the terms of the Loan Documents.

 

SECTION 1.03.  Payment
of Taxes, and Other Obligations. 
(a)  Mortgagor will pay and discharge from time to time prior to
the time when the same shall become delinquent, and before any interest or
penalty accrues thereon or attaches thereto, all Taxes and other obligations
with respect to the Mortgaged Property or any part thereof or upon the Rents
from the Mortgaged Property or arising in respect of the occupancy, use or
possession thereof in accordance with, and to the extent required by, the
Credit Agreement.

 

(b)  In the event of the passage of any
state, Federal, municipal or other governmental law, order, rule or
regulation subsequent to the date hereof (i) deducting from the value of
real property for the purpose of taxation any lien or encumbrance thereon or in
any manner changing or modifying the laws now in force governing the taxation
of this Mortgage or debts secured by mortgages or deeds of trust (other than
laws governing income, franchise and similar taxes generally) or the manner of
collecting taxes thereon and (ii) imposing a tax to be paid by Mortgagee,
either directly or indirectly, on this Mortgage or any of the Loan Documents,
or requiring an amount of taxes to be withheld or deducted therefrom, Mortgagor
will promptly (i) notify Mortgagee of such event, (ii) enter into
such further instruments as Mortgagee may determine are reasonably necessary or
desirable to obligate Mortgagor to make any additional payments necessary to
put the Lenders and Secured Parties in the same financial position they would
have been if such law, order, rule or regulation had not been passed and (iii) make
such additional payments to Mortgagee for the benefit of the Lenders and
Secured Parties.

 

5

 

SECTION 1.04.  Maintenance
of Mortgaged Property. 
Mortgagor will maintain the Improvements and the Personal Property in
the manner required by the Credit Agreement.

 

SECTION 1.05.  Insurance.  Mortgagor will keep or cause to be kept the
Improvements and Personal Property insured against such risks, and in the
manner, described in Section 6.02 of the Credit Agreement and shall
purchase such additional insurance as may be required from time to time
pursuant to the Credit Agreement. 
Federal Emergency Management Agency Standard Flood Hazard Determination
Forms will be purchased by Mortgagor for each Mortgaged Property.  If any portion of the Mortgaged Property is
located in an area identified as a special flood hazard area by Federal
Emergency Management Agency or other applicable agency, Mortgagor will purchase
flood insurance in an amount satisfactory to Mortgagee, but in no event less
than the maximum limit of coverage available under the National Flood Insurance
Act of 1968, as amended.

 

SECTION 1.06.  Casualty
Condemnation/Eminent Domain. 
Mortgagor shall give Mortgagee prompt written notice of any casualty or
other damage to the Mortgaged Property or any proceeding for the taking of the
Mortgaged Property or any portion thereof or interest therein under power of
eminent domain or by condemnation or any similar proceeding.  Any Net Cash Proceeds received by or on
behalf of the Mortgagor in respect of any such casualty, damage or taking shall
constitute trust funds held by the Mortgagor for the benefit of the Secured
Parties to be applied to repair, restore or replace the Mortgaged Property or,
if a prepayment event shall occur with respect to any such Net Cash Proceeds,
to be applied in accordance with Section 2.13 of the Credit Agreement.

 

SECTION 1.07.  Assignment
of Leases and Rents.  (a) 
Mortgagor hereby irrevocably and absolutely grants, transfers and assigns all
of its right title and interest in all Leases, together with any and all
extensions and renewals thereof for purposes of securing and discharging the
performance by Mortgagor of the Obligations. 
Mortgagor has not assigned or executed any assignment of, and will not
assign or execute any assignment of, any Leases or the Rents payable thereunder
to anyone other than Mortgagee.

 

(b)  All material Leases, if any, shall
be subordinate to the lien of this Mortgage. 
Mortgagor will not enter into, modify or amend any Lease if such
material Lease, as entered into, modified or amended, will not be subordinate
to the lien of this Mortgage.

 

(c)  Subject to Section 1.07(d),
Mortgagor has assigned and transferred to Mortgagee all of Mortgagor’s right,
title and interest in and to the Rents now or hereafter arising from each Lease
heretofore or hereafter made or agreed to by Mortgagor, it being intended that
this assignment establish, subject to Section 1.07(d), an absolute
transfer and assignment of all Rents and all Leases to Mortgagee and not merely
to grant a security interest therein. 
Subject to Section 1.07(d) and any applicable provisions of
the Credit Agreement, Mortgagee may in Mortgagor’s name and stead (with or
without first taking possession of any of the Mortgaged Property personally or
by receiver as provided herein) operate the Mortgaged Property and rent, lease
or let all or any portion of any of the Mortgaged Property to any party or
parties at such rental and upon such terms as Mortgagee shall, in its sole
discretion, determine, and may collect and have the benefit of all of said
Rents arising from or accruing at any time thereafter or that may thereafter
become due under any Lease.

 

6

 

(d)  So long as an Event of Default
shall not have occurred and be continuing, Mortgagee will not exercise any of
its rights under Section 1.07(c), and Mortgagor shall receive and collect
the Rents accruing under any Lease; but after the happening and during the
continuance of any Event of Default, Mortgagee may, at its option, receive and
collect all Rents and enter upon the Premises and Improvements through its
officers, agents, employees or attorneys for such purpose and for the operation
and maintenance thereof.  Mortgagor
hereby irrevocably authorizes and directs each tenant, if any, and each
successor, if any, to the interest of any tenant under any Lease, respectively,
to rely upon any notice of a claimed Event of Default sent by Mortgagee to any
such tenant or any of such tenant’s successors in interest, and thereafter to
pay Rents to Mortgagee without any obligation or right to inquire as to whether
an Event of Default actually exists and even if some notice to the contrary is
received from the Mortgagor, who shall have no right or claim against any such
tenant or successor in interest for any such Rents so paid to Mortgagee.  Each tenant or any of such tenant’s
successors in interest from whom Mortgagee or any officer, agent, attorney or
employee of Mortgagee shall have collected any Rents, shall be authorized to
pay Rents to Mortgagor only after such tenant or any of their successors in
interest shall have received written notice from Mortgagee that the Event of
Default is no longer continuing, unless and until a further notice of an Event
of Default is given by Mortgagee to such tenant or any of its successors in
interest.

 

(e)  Mortgagee will not become a
mortgagee in possession so long as it does not enter or take actual possession
of the Mortgaged Property.  In addition,
Mortgagee shall not be responsible or liable for performing any of the
obligations of the landlord under any Lease, for any waste by any tenant, or
others, for any dangerous or defective conditions of any of the Mortgaged
Property, for negligence in the management, upkeep, repair or control of any of
the Mortgaged Property or any other act or omission by any other person.

 

(f)  Mortgagor shall furnish to
Mortgagee, within 30 days after a request by Mortgagee to do so, a written
statement containing the names of all tenants, subtenants and concessionaires
of the Premises or Improvements, the terms of any Lease, the space occupied and
the rentals and/or other amounts payable thereunder.

 

SECTION 1.08.  Restrictions
on Transfers and Encumbrances. 
Mortgagor shall not directly or indirectly sell, convey, alienate,
assign, lease, sublease, license, mortgage, pledge, encumber or otherwise
transfer, create, consent to or suffer the creation of any lien, charge or
other form of encumbrance upon any interest in or any part of the Mortgaged
Property, or be divested of its title to the Mortgaged Property or any interest
therein in any manner or way, whether voluntarily or involuntarily (other than
resulting from a condemnation), or engage in any common, cooperative, joint,
time-sharing or other congregate ownership of all or part thereof, except in
each case in accordance with and to the extent permitted by the Credit
Agreement; provided, that Mortgagor may, in the ordinary course of
business and in accordance with reasonable commercial standards, enter into
easement or covenant agreements that relate to and/or benefit the operation of
the Mortgaged Property and that do not materially and adversely affect the
value, use or operation of the Mortgaged Property.  If any of the foregoing transfers or
encumbrances results in a Prepayment Event, any Net Proceeds received by or on
behalf of the Mortgagor in respect thereof shall constitute trust 

 

7

 

funds to be held by the Mortgagor for the
benefit of the Secured Parties and applied in accordance with Section 2.11
of the Credit Agreement.

 

SECTION 1.09.  Security
Agreement.  This Mortgage
is both a mortgage of real property and a grant of a security interest in
personal property, and shall constitute and serve as a “Security Agreement”
within the meaning of the uniform commercial code as adopted in the state
wherein the Premises are located (“UCC”).  Mortgagor has hereby granted unto Mortgagee a
security interest in and to all the Mortgaged Property described in this
Mortgage that is not real property, and simultaneously with the recording of
this Mortgage, Mortgagor has filed or will file UCC financing statements, and
will file continuation statements prior to the lapse thereof, at the
appropriate offices in the jurisdiction of formation of the Mortgagor to
perfect the security interest granted by this Mortgage in all the Mortgaged
Property that is not real property. 
Mortgagor hereby appoints Mortgagee as its true and lawful
attorney-in-fact and agent, for Mortgagor and in its name, place and stead, in
any and all capacities, to execute any document and to file the same in the
appropriate offices (to the extent it may lawfully do so), and to perform each
and every act and thing reasonably requisite and necessary to be done to
perfect the security interest contemplated by the preceding sentence.  Mortgagee shall have all rights with respect
to the part of the Mortgaged Property that is the subject of a security
interest afforded by the UCC in addition to, but not in limitation of, the
other rights afforded Mortgagee hereunder and under the Security Agreement.

 

SECTION 1.10.  Filing
and Recording.  Mortgagor
will cause this Mortgage, the UCC financing statements referred to in Section 1.09,
any other security instrument creating a security interest in or evidencing the
lien hereof upon the Mortgaged Property and each UCC continuation statement and
instrument of further assurance to be filed, registered or recorded and, if
necessary, refiled, rerecorded and reregistered, in such manner and in such
places as may be required by any present or future law in order to publish
notice of and fully to perfect the lien hereof upon, and the security interest
of Mortgagee in, the Mortgaged Property until this Mortgage is terminated and
released in full in accordance with Section 3.04 hereof.  Mortgagor will pay all filing, registration
and recording fees, all Federal, state, county and municipal recording,
documentary or intangible taxes and other taxes, duties, imposts, assessments
and charges, and all reasonable expenses incidental to or arising out of or in
connection with the execution, delivery and recording of this Mortgage, UCC
continuation statements any mortgage supplemental hereto, any security
instrument with respect to the Personal Property, Permits, Plans and Warranties
and Proceeds or any instrument of further assurance.

 

SECTION 1.11.  Further
Assurances.  Upon demand
by Mortgagee, Mortgagor will, at the cost of Mortgagor and without expense to
Mortgagee, do, execute, acknowledge and deliver all such further acts, deeds,
conveyances, mortgages, assignments, notices of assignment, transfers and
assurances as Mortgagee shall from time to time reasonably require for the
better assuring, conveying, assigning, transferring and confirming unto
Mortgagee the property and rights hereby conveyed or assigned or intended now
or hereafter so to be, or which Mortgagor may be or may hereafter become bound
to convey or assign to Mortgagee, or for carrying out the intention or
facilitating the performance of the terms of this Mortgage, or for filing,
registering or recording this Mortgage, and on demand, Mortgagor will also
execute and deliver and hereby appoints Mortgagee as its true and lawful
attorney-in-fact and 

 

8

 

agent, for Mortgagor and in its name, place
and stead, in any and all capacities, to execute and file to the extent it may
lawfully do so, one or more financing statements, chattel mortgages or
comparable security instruments reasonably requested by Mortgagee to evidence
more effectively the lien hereof upon the Personal Property and to perform each
and every act and thing requisite and necessary to be done to accomplish the
same.

 

SECTION 1.12.  Additions
to Mortgaged Property. 
All right, title and interest of Mortgagor in and to all extensions,
improvements, betterments, renewals, substitutes and replacements of, and all
additions and appurtenances to, the Mortgaged Property hereafter acquired by or
released to Mortgagor or constructed, assembled or placed by Mortgagor upon the
Premises or the Improvements, and all conversions of the security constituted thereby,
immediately upon such acquisition, release, construction, assembling, placement
or conversion, as the case may be, and in each such case without any further
mortgage, conveyance, assignment or other act by Mortgagor, shall become
subject to the lien and security interest of this Mortgage as fully and
completely and with the same effect as though now owned by Mortgagor and
specifically described in the grant of the Mortgaged Property above, but at any
and all times Mortgagor will execute and deliver to Mortgagee any and all such
further assurances, mortgages, conveyances or assignments thereof as Mortgagee
may reasonably require for the purpose of expressly and specifically subjecting
the same to the lien and security interest of this Mortgage.

 

SECTION 1.13.  No
Claims Against Mortgagee. 
Nothing contained in this Mortgage shall constitute any consent or
request by Mortgagee, express or implied, for the performance of any labor or
services or the furnishing of any materials or other property in respect of the
Mortgaged Property or any part thereof, nor as giving Mortgagor any right,
power or authority to contract for or permit the performance of any labor or
services or the furnishing of any materials or other property in such fashion
as would permit the making of any claim against Mortgagee in respect thereof.

 

SECTION 1.14.  Fixture
Filing.  (a)  Certain
portions of the Mortgaged Property are or will become “fixtures” (as that term
is defined in the UCC) on the Land, and this Mortgage, upon being filed for
record in the real estate records of the county wherein such fixtures are
situated, shall operate also as a financing statement filed as a fixture filing
in accordance with the applicable provisions of said UCC upon such portions of
the Mortgaged Property that are or become fixtures.

 

(b)  The real property to which the
fixtures relate is described in Exhibit A hereto.  The record owner of the real property
described in Exhibit A hereto is Mortgagor.  The name, type of organization and
jurisdiction of organization of the debtor for purposes of this financing
statement are the name, type of organization and jurisdiction of organization
of the Mortgagor set forth in the first paragraph of this Mortgage, and the
name of the secured party for purposes of this financing statement is the name
of the Mortgagee set forth in the first paragraph of this Mortgage.  The mailing address of the Mortgagor/debtor
is the address of the Mortgagor set forth in the first paragraph of this
Mortgage.  The mailing address of the
Mortgagee/secured party from which information concerning the security interest
hereunder may be obtained is the address of the Mortgagee set forth in the
first paragraph of this Mortgage. 
Mortgagor’s organizational identification number is 36-2041256.

 

9

 

ARTICLE II

 

Defaults and
Remedies

 

SECTION 2.01.  Events
of Default.  Any Event of
Default under the Credit Agreement (as such term is defined therein) shall
constitute an Event of Default under this Mortgage.

 

SECTION 2.02.  Demand
for Payment.  If an Event
of Default shall occur and be continuing, then, upon written demand of
Mortgagee, Mortgagor will pay to Mortgagee all amounts due hereunder and under
the Credit Agreement and the Security Agreements and such further amount as
shall be sufficient to cover the costs and expenses of collection, including
attorneys’ fees, disbursements and expenses incurred by Mortgagee, and
Mortgagee shall be entitled and empowered to institute an action or proceedings
at law or in equity for the collection of the sums so due and unpaid, to
prosecute any such action or proceedings to judgment or final decree, to
enforce any such judgment or final decree against Mortgagor and to collect, in
any manner provided by law, all moneys adjudged or decreed to be payable.

 

SECTION 2.03.  Rights
To Take Possession, Operate and Apply Revenues.  (a)  If an Event of Default shall occur
and be continuing, Mortgagor shall, upon demand of Mortgagee, forthwith
surrender to Mortgagee actual possession of the Mortgaged Property and, if and
to the extent not prohibited by applicable law, Mortgagee itself, or by such
officers or agents as it may appoint, may then enter and take possession of all
the Mortgaged Property without the appointment of a receiver or an application
therefor, exclude Mortgagor and its agents and employees wholly therefrom, and
have access to the books, papers and accounts of Mortgagor.

 

(b)  If Mortgagor shall for any reason
fail to surrender or deliver the Mortgaged Property or any part thereof after
such demand by Mortgagee, Mortgagee may to the extent not prohibited by
applicable law, obtain a judgment or decree conferring upon Mortgagee the right
to immediate possession or requiring Mortgagor to deliver immediate possession
of the Mortgaged Property to Mortgagee, to the entry of which judgment or
decree Mortgagor hereby specifically consents. 
Mortgagor will pay to Mortgagee, upon demand, all reasonable expenses of
obtaining such judgment or decree, including reasonable compensation to
Mortgagee’s attorneys and agents with interest thereon at the rate per annum
applicable to overdue amounts under the Credit Agreement as provided in Section 2.07
of the Credit Agreement (the “Interest Rate”);
and all such expenses and compensation shall, until paid, be secured by this
Mortgage.

 

(c)  Upon every such entry or taking of
possession, Mortgagee may, to the extent not prohibited by applicable law,
hold, store, use, operate, manage and control the Mortgaged Property, conduct
the business thereof and, from time to time, (i) make all necessary and
proper maintenance, repairs, renewals, replacements, additions, betterments and
improvements thereto and thereon, (ii) purchase or otherwise acquire
additional fixtures, personalty and other property, (iii) insure or keep
the Mortgaged Property insured, (iv) manage and operate the Mortgaged
Property and exercise all the rights and powers of 

 

10

 

Mortgagor to the same extent as Mortgagor
could in its own name or otherwise with respect to the same, or (v) enter
into any and all agreements with respect to the exercise by others of any of
the powers herein granted Mortgagee, all as may from time to time be directed
or determined by Mortgagee to be in its best interest and Mortgagor hereby
appoints Mortgagee as its true and lawful attorney-in-fact and agent, for
Mortgagor and in its name, place and stead, in any and all capacities, to
perform any of the foregoing acts. Mortgagee may collect and receive all the
Rents, issues, profits and revenues from the Mortgaged Property, including
those past due as well as those accruing thereafter, and, after deducting (i) all
expenses of taking, holding, managing and operating the Mortgaged Property
(including compensation for the services of all persons employed for such
purposes), (ii) the costs of all such maintenance, repairs, renewals,
replacements, additions, betterments, improvements, purchases and acquisitions,
(iii) the costs of insurance, (iv) such taxes, assessments and other
similar charges as Mortgagee may at its option pay, (v) other proper
charges upon the Mortgaged Property or any part thereof and (vi) the
compensation, expenses and disbursements of the attorneys and agents of
Mortgagee, Mortgagee shall apply the remainder of the moneys and proceeds so
received first to the payment of the Mortgagee for the satisfaction of the
Obligations, and second, if there is any surplus, to Mortgagor, subject to the
entitlement of others thereto under applicable law.

 

(d)  Whenever, before any sale of the
Mortgaged Property under Section 2.06, all Obligations that are then due
shall have been paid and all Events of Default fully cured, Mortgagee will
surrender possession of the Mortgaged Property back to Mortgagor, its
successors or assigns.  The same right of
taking possession shall, however, arise again if any subsequent Event of
Default shall occur and be continuing.

 

SECTION 2.04.  Right
To Cure Mortgagor’s Failure to Perform.  Should Mortgagor fail in the payment,
performance or observance of any term, covenant or condition required by this
Mortgage or the Credit Agreement (with respect to the Mortgaged Property),
Mortgagee may pay, perform or observe the same, and all payments made or costs
or expenses incurred by Mortgagee in connection therewith shall be secured
hereby and shall be, without demand, immediately repaid by Mortgagor to
Mortgagee with interest thereon at the Interest Rate.  Mortgagee shall be the judge using reasonable
discretion of the necessity for any such actions and of the amounts to be
paid.  Mortgagee is hereby empowered to
enter and to authorize others to enter upon the Premises or the Improvements or
any part thereof for the purpose of performing or observing any such defaulted
term, covenant or condition without having any obligation to so perform or
observe and without thereby becoming liable to Mortgagor, to any person in
possession holding under Mortgagor or to any other person.

 

SECTION 2.05.  Right
to a Receiver.  If an
Event of Default shall occur and be continuing, Mortgagee, upon application to
a court of competent jurisdiction, shall be entitled as a matter of right to
the appointment of a receiver to take possession of and to operate the
Mortgaged Property and to collect and apply the Rents.  The receiver shall have all of the rights and
powers permitted under the laws of the state wherein the Mortgaged Property is
located.  Mortgagor shall pay to
Mortgagee upon demand all reasonable expenses, including receiver’s fees,
reasonable attorney’s fees and disbursements, costs and agent’s compensation
incurred pursuant to the provisions of this Section 2.05; and all such
expenses shall be 

 

11

 

secured by this Mortgage and shall be,
without demand, immediately repaid by Mortgagor to Mortgagee with interest
thereon at the Interest Rate.

 

SECTION 2.06.  Foreclosure
and Sale.  (a)  If an
Event of Default shall occur and be continuing, Mortgagee may elect to sell the
Mortgaged Property or any part of the Mortgaged Property by exercise of the
power of foreclosure or of sale granted to Mortgagee by applicable law or this
Mortgage.  In such case, Mortgagee may
commence a civil action to foreclose this Mortgage, or it may proceed and sell
the Mortgaged Property to satisfy any Obligation.  Mortgagee or an officer appointed by a
judgment of foreclosure to sell the Mortgaged Property, may sell all or such
parts of the Mortgaged Property as may be chosen by Mortgagee at the time and
place of sale fixed by it in a notice of sale, either as a whole or in separate
lots, parcels or items as Mortgagee shall deem expedient, and in such order as
it may determine, at public auction to the highest bidder.  Mortgagee or an officer appointed by a
judgment of foreclosure to sell the Mortgaged Property may postpone any
foreclosure or other sale of all or any portion of the Mortgaged Property by
public announcement at such time and place of sale, and from time to time
thereafter may postpone such sale by public announcement or subsequently
noticed sale.  Without further notice,
Mortgagee or an officer appointed to sell the Mortgaged Property may make such
sale at the time fixed by the last postponement, or may, in its discretion,
give a new notice of sale.  Any person,
including Mortgagor or Mortgagee or any designee or affiliate thereof, may
purchase at such sale.

 

(b)  The Mortgaged Property may be sold
subject to unpaid taxes and Permitted Liens, and, after deducting all costs,
fees and expenses of Mortgagee (including costs of evidence of title in
connection with the sale), Mortgagee or an officer that makes any sale shall
apply the proceeds of sale in the manner set forth in Section 2.08.

 

(c)  Any foreclosure or other sale of
less than the whole of the Mortgaged Property or any defective or irregular
sale made hereunder shall not exhaust the power of foreclosure or of sale
provided for herein; and subsequent sales may be made hereunder until the
Obligations have been satisfied, or the entirety of the Mortgaged Property has
been sold.

 

(d)  If an Event of Default shall occur
and be continuing, Mortgagee may instead of, or in addition to, exercising the
rights described in Section 2.06(a) above and either with or without
entry or taking possession as herein permitted, proceed by a suit or suits in
law or in equity or by any other appropriate proceeding or remedy (i) to
specifically enforce payment of some or all of the Obligations, or the
performance of any term, covenant, condition or agreement of this Mortgage or
any other Loan Document or any other right, or (ii) to pursue any other
remedy available to Mortgagee, all as Mortgagee shall determine most effectual
for such purposes.

 

SECTION 2.07.  Other
Remedies.  (a)  In
case an Event of Default shall occur and be continuing, Mortgagee may also
exercise, to the extent not prohibited by law, any or all of the remedies
available to a secured party under the UCC.

 

(b)  In connection with a sale of the
Mortgaged Property or any Personal Property and the application of the proceeds
of sale as provided in Section 2.08, Mortgagee shall be entitled to
enforce payment of and to receive up to the principal amount of the
Obligations,

 

12

 

plus all other charges, payments and costs
due under this Mortgage, and to recover a deficiency judgment for any portion
of the aggregate principal amount of the Obligations remaining unpaid, with
interest.

 

SECTION 2.08.  Application
of Sale Proceeds and Rents. 
After any foreclosure sale of all or any of the Mortgaged Property,
Mortgagee shall receive and apply the proceeds of the sale, together with any
Rents that may have been collected and any other sums that then may be held by
Mortgagee under this Mortgage, as follows:

 

FIRST, to the payment of the costs and
expenses of such sale, including compensation to Mortgagee’s attorneys and
agents, and of any judicial proceedings wherein the same may be made, and of
all expenses, liabilities and advances made or incurred by Mortgagee under this
Mortgage, together with interest at the Interest Rate on all advances made by
Mortgagee, including all taxes or assessments (except any taxes, assessments or
other charges subject to which the Mortgaged Property shall have been sold) and
the cost of removing any Permitted Lien(except any Permitted Lien subject to
which the Mortgaged Property was sold);

 

SECOND, to payment in full of the Obligations
(the amounts so applied to be distributed among the Secured Parties pro rata in
accordance with the amounts of the Obligations owed to them on the date of any
such distribution); and

 

THIRD, to the Mortgagor, its successors or
assigns, or as a court of competent jurisdiction may otherwise direct.

 

The Mortgagee shall have absolute
discretion as to the time of application of any such proceeds, moneys or
balances in accordance with this Mortgage. 
Upon any sale of the Mortgaged Property by the Mortgagee (including
pursuant to a power of sale granted by statute or under a judicial proceeding),
the receipt of the Mortgagee or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Mortgaged Property
so sold and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Mortgagee or
such officer or be answerable in any way for the misapplication thereof.

 

SECTION 2.09.  Mortgagor
as Tenant Holding Over. 
If Mortgagor remains in possession of any of the Mortgaged Property after
any foreclosure sale by Mortgagee, at Mortgagee’s election Mortgagor shall be
deemed a tenant holding over and shall forthwith surrender possession to the
purchaser or purchasers at such sale or be summarily dispossessed or evicted
according to provisions of law applicable to tenants holding over.

 

SECTION 2.10.  Waiver
of Appraisement, Valuation, Stay, Extension and Redemption Laws.  Mortgagor waives, to the extent not
prohibited by law, (i) the benefit of all laws now existing or that
hereafter may be enacted (x) providing for any appraisement or valuation
of any portion of the Mortgaged Property and/or (y) in any way extending
the time for the enforcement or the collection of amounts due under any of the
Obligations or creating or extending a period of redemption from any sale made
in collecting said debt or any other amounts due Mortgagee, (ii) any right
to at any time insist upon, plead, claim or take the 

 

13

 

benefit or advantage of any law now or
hereafter in force providing for any homestead exemption, stay, statute of
limitations, extension or redemption, or sale of the Mortgaged Property as
separate tracts, units or estates or as a single parcel in the event of
foreclosure or notice of deficiency, and (iii) all rights of redemption,
valuation, appraisement, stay of execution, notice of election to mature or
declare due the whole of or each of the Obligations and marshaling in the event
of foreclosure of this Mortgage.

 

SECTION 2.11.  Discontinuance
of Proceedings.  In case
Mortgagee shall proceed to enforce any right, power or remedy under this
Mortgage by foreclosure, entry or otherwise, and such proceedings shall be
discontinued or abandoned for any reason, or shall be determined adversely to Mortgagee,
then and in every such case Mortgagor and Mortgagee shall be restored to their
former positions and rights hereunder, and all rights, powers and remedies of
Mortgagee shall continue as if no such proceeding had been taken.

 

SECTION 2.12.  Suits To
Protect the Mortgaged Property. 
Mortgagee shall have power (a) to institute and maintain suits and
proceedings to prevent any impairment of the Mortgaged Property by any acts
that may be unlawful or in violation of this Mortgage, (b) to preserve or
protect its interest in the Mortgaged Property and in the Rents arising
therefrom and (c) to restrain the enforcement of or compliance with any
legislation or other governmental enactment, rule or order that may be
unconstitutional or otherwise invalid if the enforcement of or compliance with
such enactment, rule or order would impair the security or be prejudicial
to the interest of Mortgagee hereunder.

 

SECTION 2.13.  Filing
Proofs of Claim.  In case
of any receivership, insolvency, bankruptcy, reorganization, arrangement,
adjustment, composition or other proceedings affecting Mortgagor, Mortgagee
shall, to the extent permitted by law, be entitled to file such proofs of claim
and other documents as may be necessary or advisable in order to have the
claims of Mortgagee allowed in such proceedings for the Obligations secured by
this Mortgage at the date of the institution of such proceedings and for any
interest accrued, late charges and additional interest or other amounts due or
that may become due and payable hereunder after such date.

 

SECTION 2.14.  Possession
by Mortgagee. 
Notwithstanding the appointment of any receiver, liquidator or trustee
of Mortgagor, any of its property or the Mortgaged Property, Mortgagee shall be
entitled, to the extent not prohibited by law, to remain in possession and
control of all parts of the Mortgaged Property now or hereafter granted under
this Mortgage to Mortgagee in accordance with the terms hereof and applicable
law.

 

SECTION 2.15.  Waiver.  (a)  No delay or failure by Mortgagee to
exercise any right, power or remedy accruing upon any breach or Event of
Default shall exhaust or impair any such right, power or remedy or be construed
to be a waiver of any such breach or Event of Default or acquiescence therein;
and every right, power and remedy given by this Mortgage to Mortgagee may be
exercised from time to time and as often as may be deemed expedient by
Mortgagee.  No consent or waiver by
Mortgagee to or of any breach or Event of Default by Mortgagor in the
performance of the Obligations shall be deemed or construed to be a consent or
waiver to or of any other breach or Event of Default in the performance of the
same or of any other Obligations by Mortgagor hereunder.  No failure on the part of 

 

14

 

Mortgagee to complain of any act or failure
to act or to declare an Event of Default, irrespective of how long such failure
continues, shall constitute a waiver by Mortgagee of its rights hereunder or
impair any rights, powers or remedies consequent on any future Event of Default
by Mortgagor.

 

(b)  Even if Mortgagee (i) grants
some forbearance or an extension of time for the payment of any sums secured
hereby, (ii) takes other or additional security for the payment of any
sums secured hereby, (iii) waives or does not exercise some right granted
herein or under the Loan Documents, (iv) releases a part of the Mortgaged
Property from this Mortgage, (v) agrees to change some of the terms,
covenants, conditions or agreements of any of the Loan Documents, (vi) consents
to the filing of a map, plat or replat affecting the Premises, (vii) consents
to the granting of an easement or other right affecting the Premises or (viii) makes
or consents to an agreement subordinating Mortgagee’s lien on the Mortgaged
Property hereunder; no such act or omission shall preclude Mortgagee from
exercising any other right, power or privilege herein granted or intended to be
granted in the event of any breach or Event of Default then made or of any
subsequent default; nor, except as otherwise expressly provided in an
instrument executed by Mortgagee, shall this Mortgage be altered thereby.  In the event of the sale or transfer by
operation of law or otherwise of all or part of the Mortgaged Property,
Mortgagee is hereby authorized and empowered to deal with any vendee or
transferee with reference to the Mortgaged Property secured hereby, or with
reference to any of the terms, covenants, conditions or agreements hereof, as
fully and to the same extent as it might deal with the original parties hereto
and without in any way releasing or discharging any liabilities, obligations or
undertakings.

 

SECTION 2.16.  Waiver
of Trial by Jury.  To the
fullest extent permitted by applicable law, Mortgagor and Mortgagee each hereby
irrevocably and unconditionally waive trial by jury in any action, claim, suit
or proceeding relating to this Mortgage and for any counterclaim brought
therein.  Mortgagor hereby waives all
rights to interpose any counterclaim in any suit brought by Mortgagee hereunder
and all rights to have any such suit consolidated with any separate suit,
action or proceeding.

 

SECTION 2.17.  Remedies
Cumulative.  No right,
power or remedy conferred upon or reserved to Mortgagee by this Mortgage is
intended to be exclusive of any other right, power or remedy, and each and
every such right, power and remedy shall be cumulative and concurrent and in
addition to any other right, power and remedy given hereunder or now or
hereafter existing at law or in equity or by statute.

 

ARTICLE III

 

Miscellaneous

 

SECTION 3.01.  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
validity, illegality or unenforceability shall, at the option of Mortgagee, 

 

15

 

not affect any other provision of this
Mortgage, and this Mortgage shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein or therein.

 

SECTION 3.02.  Notices.  All notices and communications hereunder
shall be in writing and given to Mortgagor in accordance with the terms of the
Credit Agreement at the address set forth on the first page of this Mortgage
and to the Mortgagee as provided in the Credit Agreement.

 

SECTION 3.03.  Successors
and Assigns.  All of the
grants, covenants, terms, provisions and conditions herein shall run with the
Premises and the Improvements and shall apply to, bind and inure to, the
benefit of the permitted successors and assigns of Mortgagor and the successors
and assigns of Mortgagee.

 

SECTION 3.04.  Satisfaction
and Cancelation.  (a) 
The conveyance to Mortgagee of the Mortgaged Property as security created and
consummated by this Mortgage shall be null and void when all the Loan Document
Obligations have been indefeasibly paid in full and the Lenders have no further
commitment to lend under the Credit Agreement, the LC Exposure has been reduced
to zero and the Facing Agents has no further obligations to issue Letters of
Credit under the Credit Agreement.

 

(b)  Upon any sale or other transfer by
Mortgagor of any Collateral that is permitted under the Credit Agreement, or
upon the effectiveness of any written consent to the release of the security
interest granted hereby in any Collateral pursuant to Section 10.02 of the
Credit Agreement, the security interest in such Collateral shall be
automatically released.

 

(c)  In connection with any termination
or release pursuant to paragraph (a) or (b), the Collateral Agent
shall execute and deliver to any Mortgagor, at the Mortgagor’s expense, all
documents that the Mortgagor shall reasonably request to evidence such
termination or release.  Any execution
and delivery of documents pursuant to this Section 3.04 shall be without
recourse to or warranty by the Collateral Agent.

 

SECTION 3.05.  Definitions.  The rules of construction specified in Section 1.03
of the Credit Agreement also apply to this Mortgage.  As used in this Mortgage, the singular shall
include the plural as the context requires and the following words and phrases
shall have the following meanings: (a) “including”
shall mean “including but not limited to”; (b) “provisions” shall mean “provisions, terms, covenants and/or conditions”;
(c) “lien” shall mean “lien,
charge, encumbrance, security interest, mortgage or deed of trust”; (d) “obligation” shall mean “obligation, duty,
covenant and/or condition”; and (e) “any of the Mortgaged Property” shall
mean “the Mortgaged Property or any part thereof or interest therein”.  Any act that Mortgagee is permitted to
perform hereunder may be performed at any time and from time to time by
Mortgagee or any person or entity designated by Mortgagee.  Any act that is prohibited to Mortgagor
hereunder is also prohibited to all lessees of any of the Mortgaged
Property.  Each appointment of Mortgagee
as attorney-in-fact for Mortgagor under the Mortgage is irrevocable, with power
of substitution and coupled with an interest.

 

SECTION 3.06.  Multisite
Real Estate Transaction. 
Mortgagor acknowledges that this Mortgage is one of a number of Other
Mortgages and Security Documents that secure 

 

16

 

the Obligations.  Mortgagor agrees that the lien of this
Mortgage shall be absolute and unconditional and shall not in any manner be
affected or impaired by any acts or omissions whatsoever of Mortgagee, and
without limiting the generality of the foregoing, the lien hereof shall not be
impaired by any acceptance by the Mortgagee of any security for or guarantees
of any of the Obligations hereby secured, or by any failure, neglect or
omission on the part of Mortgagee to realize upon or protect any Obligation or
indebtedness hereby secured or any collateral security therefor including the
Other Mortgages and other Security Documents. 
The lien hereof shall not in any manner be impaired or affected by any
release (except as to the property released), sale, pledge, surrender,
compromise, settlement, renewal, extension, indulgence, alteration, changing,
modification or disposition of any of the Obligations secured or of any of the
collateral security therefor, including the Other Mortgages and other Security
Documents or of any guarantee thereof, and Mortgagee may at its discretion
foreclose, exercise any power of sale, or exercise any other remedy available
to it under any or all of the Other Mortgages and other Security Documents
without first exercising or enforcing any of its rights and remedies hereunder.  Such exercise of Mortgagee’s rights and
remedies under any or all of the Other Mortgages and other Security Documents
shall not in any manner impair the indebtedness hereby secured or the lien of
this Mortgage and any exercise of the rights or remedies of Mortgagee hereunder
shall not impair the lien of any of the Other Mortgages and other Security
Documents or any of Mortgagee’s rights and remedies thereunder.  Mortgagor specifically consents and agrees
that Mortgagee may exercise its rights and remedies hereunder and under the
Other Mortgages and other Security Documents separately or concurrently and in
any order that it may deem appropriate and waives any rights of subrogation.

 

SECTION 3.07.  No Oral
Modification.  This
Mortgage may not be changed or terminated orally.  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 Mortgage, lien or encumbrance.

 

ARTICLE IV

 

Particular
Provisions

 

This Mortgage is subject to the
following provisions relating to the particular laws of the state wherein the
Premises are located:

 

SECTION 4.01.  Applicable
Law; Certain Particular Provisions.  This Mortgage shall be governed by and
construed in accordance with the internal law of the state where the Mortgaged
Property is located, except that Mortgagor expressly acknowledges that by their
terms, the Credit Agreement and other Loan Documents (aside from those Other
Mortgages to be recorded outside New York) shall be governed by the internal
law of the State of New York, without regard to principles of conflict of
law.  Mortgagor and Mortgagee agree to
submit to jurisdiction and the laying of venue for any suit on this Mortgage in
the state where the Mortgaged Property is located.  The terms and provisions set forth in
Appendix A attached hereto are hereby incorporated by reference as though
fully set forth herein.  In the 

 

17

 

event of any conflict between the terms and
provisions contained in the body of this Mortgage and the terms and provisions
set forth in Appendix A, the terms and provisions set forth in
Appendix A shall govern and control.

 

18

 

IN WITNESS WHEREOF, this
Mortgage has been duly executed and delivered to Mortgagee by Mortgagor and is
effective as of the date first above written.

 

	
   

  	
  SMURFIT-STONE
  CONTAINER ENTERPRISES, INC.,

  
	
   

  	
  a Delaware
  corporation,

  
	
   

  	
   

  	
   

  
	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

19

 

[ADD LOCAL FORM OF ACKNOWLEDGMENT]

 

20

 

Exhibit A

to Mortgage

Description of the Land

 

 

Appendix A

to Mortgage

Local Law Provisions

 

 

Execution

 

PLEDGE
AGREEMENT (CANADIAN)

 

This PLEDGE AGREEMENT (CANADIAN) (as amended,
restated, supplemented or otherwise modified from time to time, this “Agreement”),
dated as of November 1,2004 is made by Smurfit-Stone Container Canada
Inc., a corporation continued under the Companies Act
(Nova Scotia), (“SSC Canada”
or the “Pledgor”), to DEUTSCHE BANK
TRUST COMPANY AMERICAS, a New York banking corporation, in its capacity as
collateral agent (“in such capacity, the “Pledgee”)
for the benefit of the Beneficiaries (as hereinafter defined). Capitalized
terms used but not defined herein shall have the respective meanings ascribed
to them in the Credit Agreement (as defined below).

 

RECITALS:

 

A.                                   Smurfit-Stone
Container Corporation, a Delaware Corporation, Smurfit-Stone Container
Enterprises, Inc., a Delaware Corporation, SSC Canada, the Lenders,
JPMorgan Chase Bank, a New York banking corporation, as Senior Agent, Deposit
Account Agent and Deposit Funded Facility Facing Agent, Deutsche Bank Trust
Company Americas, a New York banking corporation, as Senior Agent,
Administrative Agent, Collateral Agent, Swingline Lender and Revolving Facility
Facing Agent and Deutsche Bank AG, an authorized foreign bank permitted to
carry on business in Canada and listed in Schedule Ill of the Bank Act
(Canada), as Canadian Administrative Agent and as Revolving (Canadian) Facility
Facing Agent, have entered into the Credit Agreement dated as of November 1,
2004, and as from time to time amended, supplemented, restated, or otherwise
modified, the “Credit Agreement”).

 

B.                                     Pursuant
to Sections 5.02(f) and 6.09(c) of the Credit Agreement, the Pledgor
is required to execute and deliver this Agreement to the Pledgee for the
benefit of the Tranche C Lenders, the Revolving (Canadian) Lenders, the
Canadian Administrative Agent, each Incremental Lender providing any
Incremental Loans to SSC Canada, the Collateral Agent, the Revolving (Canadian)
Facility Facing Agent, each counterparty to any Swap Agreement with a Loan
Party the obligations under which constitute Canadian Obligations, each Lender
or Affiliate of a Lender party to any Cash Management Agreement (as hereinafter
defined) the obligations under which constitute Canadian Obligations, the
beneficiaries of each indemnification obligation undertaken by the Pledgor, or
a Canadian Subsidiary or a subsidiary of a Canadian Subsidiary under any
Canadian Loan Document and any other holder of any Canadian Obligation
(collectively, the “Beneficiaries”
and, individually, a “Beneficiary”).
For the purposes of this Agreement, a “Canadian Loan Document”
means a Loan Document to which a Canadian Loan Party is a party and “Canadian Loan Party” means the
Pledgor or a Canadian Subsidiary that is a Guarantor.

 

C.                                     The
Pledgor desires to enter into this Agreement in order to satisfy the
requirement described in the preceding paragraph.

 

SSCC Pledge

 

 

D.                                    Certain
of the capital stock and other ownership interests of the subsidiaries owned by
the Pledgor may consist of shares of stock or other equity interests (“ULC Shares”) in an unlimited
company (a “ULC”) under the Companies Act (Nova Scotia) (the “NS Act”)
and, to best ensure that neither the Pledgee nor any of the Beneficiaries
could, under any circumstances prior to realization be held to be a “member” of
the ULC for the purposes of the NS Act, certain provisions of this Agreement
are to apply differently insofar as any collateral consists of ULC Shares.

 

NOW, THEREFORE, in consideration
of the premises and other benefits to the Pledgor the receipt and sufficiency
of which are hereby acknowledged, the Pledgor hereby makes the following
representations and warranties and hereby covenants and agrees with the Pledgee
as follows:

 

1.                                      SECURITY
FOR OBLIGATIONS.

 

This Agreement is made by the Pledgor for the benefit
of the Beneficiaries to secure:

 

(i)                                     the
full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of the Canadian Obligations and the due performance
and compliance by the Pledgor with all of the terms, conditions, covenants,
obligations, and agreements to be performed by the Pledgor under the Canadian
Loan Documents;

 

(ii)                                  the
full and prompt payment when due (whether at the stated maturity, by
acceleration or otherwise) of all obligations and liabilities owing by the
Pledgor to any Lender or any Affiliate of a Lender under, or in respect of, any
Swap Agreement which is in effect on the date of this Agreement with a
counterparty that is a Lender or an Affiliate of a Lender as of the date of
this Agreement or which is entered into after the date of this Agreement with
any counterparty that is a Lender or an Affiliate of a Lender at the time such
agreement is entered into (collectively, “Lender Swap Agreements”),
whether any such Lender Swap Agreement is now in existence or hereafter arising
and the due performance and compliance by the Pledgor with all of the terms,
conditions and agreements contained therein;

 

(iii)                               the
full and prompt payment when due of all obligations and liabilities owing by
the Pledgor to any Lender or any Affiliate of a Lender under, or in respect of,
any agreements between the Pledgor and any Lender or any Affiliate of a Lender
in respect of cash management services (collectively, “Cash
Management Agreements”) whether such Cash Management Agreement
is now in existence or hereafter arising, and the due performance and
compliance by the Pledgor with all of the terms, conditions and agreements
contained therein;

 

(iv)                              any
and all sums advanced by the Pledgee in order to preserve the Collateral (as
hereinafter defined) or preserve its security interest in the Collateral; and

 

(v)                                 in
the event of any proceeding for the collection or enforcement of any
indebtedness, obligations, or liabilities of the Pledgor referred to in clauses
(i), (ii), (iii) and (iv) of this Section 1, after an “Event of Default” (such term, as
used in this Agreement, 

 

2

 

shall mean any Event of Default under, and as defined
in, the Credit Agreement) shall have occurred and be continuing, the reasonable
expenses of retaking, holding, preparing for sale or lease, selling or
otherwise disposing of or realizing on the Collateral, or of any exercise by
the Pledgee of its rights hereunder, together with reasonable fees and expenses
of legal counsel and court costs;

 

all such obligations, liabilities, sums and expenses
set forth in clauses (i) through (iv) inclusive of this Section 1
being herein collectively called the “Secured Obligations”,
it being acknowledged and agreed that the “Secured Obligations” shall include
extensions of credit of the types described above, whether outstanding on the
date of this Agreement or extended from time to time after the date of this
Agreement.

 

2.                                      DEFINITION
OF STOCK, NOTES, SECURITIES, ETC.

 

As used herein, (i) the term “Stock” shall mean all of the issued
and outstanding shares of capital stock and other equity interests owned by the
Pledgor in any Material Subsidiary or Guarantor that is (in either case) a
Canadian Subsidiary and any shares of capital stock or equity interests in any
Material Subsidiary that is a Canadian Subsidiary obtained in the future by the
Pledgor and the certificates, if any, representing all such capital stock or
other equity interests, and (ii) the term “Notes”
shall mean all current and future promissory notes evidencing (A) intercompany
Indebtedness among the Pledgor and/or any Subsidiary in an aggregate principal
amount at least equal to U.S.$10,000,000 currently or in the future owned by
the Pledgor and (B) each other promissory note evidencing Indebtedness in
an aggregate principal amount at least equal to U.S.$25,000,000 currently or in
the future owned by the Pledgor. As used herein, the term “Securities”
shall mean all of the Stock and Notes that are issued and outstanding as of the
date of this Agreement and as may be issued and outstanding from time to time
in accordance with the terms of the Credit Agreement and this Agreement. The
Pledgor represents and warrants, as to the Stock and the Notes, that on the
date hereof (a) the Stock which is listed on Part I of Annex A
to this Agreement is all of the Stock owned by the Pledgor in any Material
Subsidiary that is a Canadian Subsidiary and consists of the number and type of
shares of the stock or other equity interests of the corporation or other
entity as described in Annex A hereto; (b) the Stock which is
listed on Part I of Annex A to this Agreement constitutes that
percentage of the issued and outstanding capital stock or other equity
interests of the issuing corporation or other entity as is set forth in Annex
A hereto; (c) the Notes described in Part II of Annex A
hereto constitute all of the Notes owing to or in favour of the Pledgor; and (d) the
Pledgor is the holder of record and sole beneficial owner of the Stock and
Notes listed opposite its name on Annex A hereto and there exist no
options or pre-emption rights in respect of any of the Stock.

 

3.                                      PLEDGE
OF SECURITIES. ETC.

 

3.1                               Pledge.
To secure the Secured Obligations and for the purposes set forth in Section 1
hereof, the Pledgor (i) hereby grants to the Pledgee a security interest
in all of the Collateral (as defined in Section 3.4 hereof) now or
hereinafter owned by the Pledgor; (ii) (a) hereby pledges and
deposits as security with the Pledgee the Pledged Stock; (b) delivers to
the Pledgee certificates or instruments therefor, duly endorsed in the case of
the Pledged Notes and accompanied by undated stock transfer powers duly
executed in blank by such Pledgor in 

 

3

 

the case of the Pledged
Stock (and accompanied by any transfer tax stamps required in connection with
the pledge of such Securities), or such other instruments of transfer as are
reasonably acceptable to the Pledgee; and (c) in the case of Pledged Stock,
if the constating documents of the issuer do not contain a restriction on
transfer of such Pledged Stock or the holders thereof are entitled to approve
all transfers thereof, delivers an irrevocable resolution of such holders and,
except in the case of a ULC, if such constating documents contain a restriction
on such transfer, delivers an irrevocable resolution of the board of directors
of the Pledgor(insofar as permitted by law),in each case, approving the
transfers of such Pledged Stock to the Pledgee and/or its nominees and/or third
parties designated by Pledgee upon the exercise of its rights (each, a “Resolution”) and (iii) hereby
collaterally assigns, transfers, hypothecates and sets over to the Pledgee all
of such Pledgor’s right, title and interest in and to such Collateral (and in
and to all certificates or instruments evidencing such Collateral), to be held
by the Pledgee as collateral security for the Secured Obligations, upon the
terms and conditions set forth in this Agreement.

 

3.2                               Subsequently
Acquired Securities. If the Pledgor shall acquire (by purchase, stock
dividend or otherwise) any additional or replacement Securities at any time or
from time to time after the date hereof, the Pledgor will, to the extent
required pursuant to the terms of the Credit Agreement, promptly thereafter (a) pledge
and deposit such Securities (or certificates or instruments representing such
Securities) as security with the Pledgee, (b) deliver to the Pledgee
certificates or instruments therefor, duly endorsed in the case of Notes, and
accompanied by undated stock and note transfer powers duly executed in blank by
the Pledgor in the case of Stock (and accompanied by any transfer tax stamps
required in connection with the pledge of such Securities), or such other
instruments of transfer as are acceptable to the Pledgee, along with an updated
Annex A to this Agreement, (c) deliver a Resolution, and (d) will
promptly thereafter deliver to the Pledgee a certificate executed by a duly
authorized officer of such Pledgor describing such Securities and certifying
that the same have been duly pledged with the Pledgee hereunder.

 

3.3                               Uncertificated
Securities. Notwithstanding anything to the contrary contained in Sections 3.1
and 3.2 hereof, if any Securities (whether now owned or hereafter
acquired) are uncertificated securities, the Pledgor shall promptly notify the
Pledgee thereof, and shall promptly take all actions required to perfect the
security interest of the Pledgee under applicable law. The Pledgor further
agrees to take such actions as the Pledgee deems necessary or desirable to
effect the foregoing and to permit the Pledgee to exercise any of its rights
and remedies hereunder, and agrees to provide a customary opinion of counsel
reasonably satisfactory to the Pledgee with respect to any such pledge of
uncertificated Securities promptly upon the reasonable request of the Pledgee.
In addition, the Pledgor agrees that, to the extent it becomes the owner of any
interest in a limited liability company or a limited partnership and such
Pledgor would be required to pledge such interest to the Pledgee hereunder
pursuant to the terms of the Credit Agreement were such interest to constitute
capital stock, it will use its reasonable best efforts to cause the issuer of
such interest to provide in such issuer’s limited liability company operating
agreement, or partnership agreement or other relevant constitutive documents
that its limited liability company interests or partnership interests,
respectively, shall at all times be represented by certificates, shall
constitute “securities”.

 

4

 

3.4                               Definitions
of Pledged Securities and Collateral. All Stock at any time pledged or
required to be pledged hereunder is hereinafter called the “Pledged Stock”; all Notes at any
time pledged or required to be pledged hereunder are hereinafter called the “Pledged Notes”; all Pledged Stock
and Pledged Notes, together, are called the “Pledged
Securities”; and the Pledged Securities, together with all
proceeds thereof including any securities and moneys received and at the time
held by the Pledgee hereunder, are hereinafter called the “Collateral”.

 

4.                                      APPOINTMENT
OF SUB-AGENTS, ENDORSEMENTS, ETC.

 

The Pledgee shall have the right to appoint one or more
sub-agents for the purpose of retaining physical possession of the Pledged
Securities, which maybe held (in the discretion of the Pledgee) in the name of
the Pledgor, endorsed or assigned in blank or in favour of the Pledgee or any
nominee or nominees of the Pledgee or a sub-agent appointed by the Pledgee.

 

5.                                      VOTING,
ETC.

 

Unless and until there shall have occurred and be
continuing an Event of Default, the Pledgor shall be entitled to vote any and
all Pledged Securities owned by it, and to give consents, waivers, or
ratifications in respect thereof, provided, that no vote shall be cast
or any consent, waiver or ratification given or any action taken which would
violate, result in breach of any covenant contained in or be inconsistent with
any of the terms in this Agreement, the Credit Agreement, any other Canadian
Loan Document or any Lender Swap Agreement (collectively, the “Secured Debt Agreements”), or which
could reasonably be expected to have the effect of materially impairing the
value of the Collateral or any part thereof or the position or interests of the
Pledgee or any Beneficiary. Except in the case of ULC Shares, all such rights
of the Pledgor to vote and to give consents, waivers and ratifications shall
cease if an Event of Default has occurred and is continuing and Section 7
hereof shall become applicable. Nothing in this paragraph shall be interpreted
as suggesting that the Pledgee would have any rights to vote Pledged Securities
which are ULC Shares absent this provision.

 

6.                                      DIVIDENDS
AND OTHER DISTRIBUTIONS.

 

Unless and until there shall have occurred and be
continuing an Event of Default, all cash dividends and distributions payable in
respect of the Pledged Stock and all payments in respect of the Pledged Notes
shall be paid to the Pledgor; provided, that all cash dividends payable
in respect of the Pledged Stock which are determined by the Pledgee to
represent in whole or in part an extraordinary, liquidating or other
distribution in return of capital shall be paid, to the extent so determined to
represent an extraordinary, liquidating or other distribution in return of
capital, to the Pledgee and retained by it as part of the Collateral. Without
limiting the foregoing, the Pledgee shall be entitled to receive (except in the
case of ULC Shares in which case the Pledgee shall have no direct rights under
any circumstances) directly, and to retain as part of the Collateral:

 

(i)                                     all
other or additional shares or securities (other than cash) paid or distributed
byway of dividend or otherwise, as the case may be, in respect of the Pledged
Stock;

 

5

 

(ii)                                  all
other or additional shares or other securities paid or distributed in respect
of the Pledged Stock by way of stock-split, spin-off, split-up, reclassification,
combination of shares or similar rearrangement; and

 

(iii)                               all other or additional
shares or other securities or property which may be paid in respect of the
Collateral by reason of any consolidation, amalgamation, merger, share
exchange, conveyance of assets, liquidation or similar corporate
reorganization.

 

Nothing contained in this Section 6 shall
limit or restrict in any way the Pledgee’s right to receive proceeds of the
Collateral in any form in accordance with Section 3 hereof. All dividends,
distributions or other payments which are received by the Pledgor contrary to
the provisions of this Section 6 and of Section 7
hereof shall be received in trust for the benefit of the Pledgee, shall be
segregated from other property or funds of such Pledger, and shall be forthwith
paid over to the Pledgee as Collateral in the same form as so received (with
any necessary endorsement).

 

7.                                      REMEDIES
IN CASE OF EVENTS OF DEFAULT.

 

If there shall have occurred and be continuing an
Event of Default and, in the case of ULC Shares, following the giving of notice
to the Pledgor, then and in every such case, the Pledgee shall be entitled to
exercise all of the rights, powers, and remedies (whether vested in it by this
Agreement or by law) for the protection and enforcement of its rights in
respect of the Collateral, and the Pledgee shall be entitled to exercise all
the rights and remedies of a secured party under the Personal
Property Security Act (Nova Scotia) or such other applicable law and
also shall be entitled, without limitation, to exercise the following rights,
which the Pledgor hereby agrees to be commercially reasonable:

 

(i)                                     to
receive all amounts payable in respect of the Collateral otherwise payable
under Section 6 hereof to the Pledgor;

 

(ii)                                  to
transfer all or any part of the Collateral into the Pledgee’s name or the name
of its nominee or nominees;

 

(iii)                               to accelerate any
Pledged Note which may be accelerated in accordance with its terms, and take
any other action to collect upon any Pledged Note;

 

(iv)                              to
vote all or any part of the Pledged Securities (whether or not, in the case of
Securities which are not ULC Shares, transferred into the name of the Pledgee
provided that in the case of ULC Shares the Pledgee shall only have the right
to vote shares registered in its name) and (except in the case of ULC Shares)
give all consents, waivers and ratifications in respect of the Collateral and
otherwise act with respect thereto as though it were the outright owner thereof
(the Pledgor hereby irrevocably constituting and appointing the Pledgee the
proxy and attorney-in-fact of the Pledgor, with full power of substitution,
which power is coupled with an interest); and

 

(v)                                 to
sell, assign and deliver, or grant options to purchase, all or any part of the
Collateral, or any interest therein, at any public or private sale, without
demand of 

 

6

 

performance, advertisement or notice of intention to sell or of the
time or place of sale or adjournment thereof or to redeem or otherwise (all of
which are hereby waived by the Pledgor), for cash, on credit or for other
property, for immediate or future delivery without any assumption of credit
risk, and for such price or prices and on such terms as the Pledgee in its
absolute discretion may determine, provided that, unless otherwise
required by applicable law, at least 10 days’ prior written notice of the time
and place of any such sale shall be given to the Pledgor. The Pledgee shall not
be obligated to make any such sale of Collateral regardless of whether any such
notice of sale has theretofore been given. The Pledgor hereby waives and
releases to the fullest extent permitted by law any right or equity of
redemption with respect to the Collateral, whether before or after sale
hereunder, and all rights, if any, of marshaling the Collateral and any other
security for the Secured Obligations or otherwise. At any such sale, unless
prohibited by applicable law, the Pledgee on behalf of the Beneficiaries may
bid for and purchase all or any part of the Collateral so sold free from any
such right or equity of redemption. Neither the Pledgee nor any Beneficiary
shall be liable for failure to collect or realize upon any or all of the
Collateral or for any delay in so doing nor shall any of them be under any
obligation to take any action whatsoever with regard thereto.

 

8.                                      REMEDIES,
ETC., CUMULATIVE.

 

Each and every right, power and remedy of the Pledgee
provided for in this Agreement or any other Canadian Loan Document, or now or
hereafter existing at law or in equity or by statute shall be cumulative and
concurrent and shall be in addition to every other such right, power or remedy.
The exercise or beginning of the exercise by the Pledgee or any other
Beneficiary of any one or more of the rights, powers or remedies provided for
in this Agreement or any other Canadian Loan Document or now or hereafter
existing at law or in equity or by statute or otherwise shall not preclude the
simultaneous or later exercise by the Pledgee or any other Beneficiary of all
such other rights, powers or remedies, and no failure or delay on the part of
the Pledgee or any other Beneficiary to exercise any such right; power or
remedy shall operate as a waiver thereof. Unless otherwise required by the Canadian
Loan Documents, no notice to or demand on the Pledgor in any case shall entitle
it to any other or further notice or demand in similar or other circumstances
or constitute a waver of any of the rights of the Pledgee or any other
Beneficiary to any other or further action in any circumstances without notice
or demand.

 

9.                                      APPLICATION
OF PROCEEDS.

 

The Pledgee shall apply the proceeds of any collection
or sale of Collateral, including any Collateral consisting of cash, as follows:

 

FIRST, to the payment of all costs and expenses incurred by the Pledgee
in connection with such collection or sale or otherwise in connection with this
Agreement, any other Canadian Loan Document or any of the Canadian Obligations,
including all court costs and the fees and expenses of its agents and legal
counsel, the repayment of all advances made by the Pledgee hereunder or under
any other Canadian Loan Document on behalf of any Beneficiary and any other
costs or 

 

7

 

expenses incurred in connection with the exercise of any right or
remedy hereunder or under any other Canadian Loan Document;

 

SECOND, to the payment in full of the Canadian Obligations (the amounts
so applied to be distributed among the Beneficiaries pro rata in accordance
with the amounts of the Canadian Obligations owed to them on the date of any
such distribution); and

 

THIRD, to the Pledgor, its successors or assigns, or as a court of
competent jurisdiction may otherwise direct.

 

10.                               PURCHASERS
OF COLLATERAL.

 

Upon any sale of the Collateral by the Pledgee
hereunder (whether by virtue of the power of sale herein granted, pursuant to
judicial process or otherwise), the receipt of the Pledgee or the officer
making the sale shall be a sufficient discharge to the purchaser or purchasers
of the Collateral so sold, and such purchaser or purchasers shall not be
obligated to see to the application of any part of the purchase money paid over
to the Pledgee or such officer or be answerable in any way for the misapplication
or non-application thereof.

 

11.                               INDEMNITY.

 

(i)                                     The
Pledgor agrees to indemnify and hold harmless the Pledgee and each other
Beneficiary and their respective successors, assigns, employees, agents and
servants (individually an “Indemnitee”,
and collectively the “Indemnitees”)
from and against any and all claims, demands, losses, judgments and liabilities
(including liabilities for penalties) of whatsoever kind or nature, and to
reimburse each Indemnitee for all costs and expenses, including reasonable fees
and expense of legal counsel, directly or indirectly related to this Agreement
or the exercise by any Indemnitee of any right or remedy granted to it
hereunder or under any other Secured Debt Agreement (but excluding any claims,
demands, losses, judgments and liabilities or expenses to the extent incurred
by reason of gross negligence or willful misconduct of such Indemnitee). In no
event shall the Pledgee be liable, in the absence of gross negligence or
willful misconduct on its part, for any matter or thing in connection with this
Agreement. If and to the extent that the obligations of the Pledgor under this Section 11
are unenforceable for any reason, the Pledgor hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under applicable law.

 

(ii)                                  The
Pledgor hereby appoints the Pledgee as the Pledgor’s attorney-in-fact, with
full authority in the place and stead of the Pledgor and in the name of the
Pledgor or otherwise, from time to time after the occurrence and during the
continuance of an Event of Default, in the Pledgee’s reasonable discretion to
take any action and to execute any instrument which the Pledgee may reasonably
deem necessary or advisable to accomplish the purposes of this Agreement.

 

8

 

12.                               FURTHER
ASSURANCES; POWER-OF-ATTORNEY.

 

(i)                                     The
Pledgor agrees that it will join with the Pledgee in executing and, at the
Pledgor’s own expense, file and refile under the Personal
Property Security Act (Nova Scotia) or other applicable law such
financing statements, financing change statements and other documents in such
offices as the Pledgee may deem reasonably necessary and wherever required or
permitted by law in order to perfect and preserve the Pledgee’s security
interest in the Collateral and hereby authorizes the Pledgee to file financing
statements and financing change statements relative to all or any part of the
Collateral without the signature of such Pledgor where permitted by law, and
agrees to do such further acts and things and to execute and deliver to the
Pledgee such additional conveyances, assignments, agreements and instruments as
the Pledgee may reasonably require or deem advisable to carry into effect the
purposes of this Agreement or to further assure and confirm unto the Pledgee
its rights, powers and remedies hereunder.

 

(ii)                                  The
Pledgor hereby appoints the Pledgee as the Pledgor’s attorney-in-fact, with
full authority in the place and stead of the Pledgor and in the name of the
Pledgor or otherwise, from time to time after the occurrence and during the
continuance of an Event of Default, in the Pledgee’s reasonable discretion to
take any action and to execute any instrument which the Pledgee may reasonably
deem necessary or advisable to accomplish the purposes of this Agreement.

 

13.                               THE
PLEDGEE AS AGENT.

 

The Pledgee will hold, directly or through its duly
appointed sub-agents as contemplated by Section 4 hereof, all items of the
Collateral at any time received under this Agreement, in accordance with this
Agreement. It is expressly understood and agreed by the parties hereto and each
Beneficiary, by accepting the benefits of this Agreement that each acknowledges
and agrees that the obligations of the Pledgee as holder of the Collateral and
interests therein and with respect to the disposition thereof, and otherwise
under this Agreement, are only those expressly set forth in this Agreement. The
Pledgee shall act hereunder on the terms and conditions set forth herein and in
Article IX of the Credit Agreement.

 

14.                               TRANSFER
BY THE PLEDGOR.

 

The Pledgor will not sell or otherwise dispose of,
grant any option with respect to, or mortgage, pledge or otherwise encumber any
of the Collateral or any interest therein (except as may be permitted in
accordance with the terms of the Credit Agreement).

 

15.                               REPRESENTATIONS.
WARRANTIES AND COVENANTS OF THE PLEDGOR.

 

The Pledgor represents and warrants that: (a) it
is, or at the time when pledged hereunder will be, the legal, record and
beneficial owner of, and has good and marketable title to, all Collateral
pledged by it hereunder, subject to no Lien whatsoever, except the Liens and
security interests created by this Agreement and Permitted Liens; (b) it
does not have, as of the date hereof, any right, title and interest

 

9

 

whatsoever in any Stock or Notes other than the
Collateral; (c) it has full corporate power, authority and legal right to
pledge all the Collateral pledged by it pursuant to this Agreement; (d) this
Agreement has been duly authorized, executed and delivered by such Pledgor and
constitutes a legal, valid and binding obligation of such Pledgor enforceable
in accordance with its terms, except to the extent that the enforceability
thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws generally affecting creditors’ rights and by
equitable principles (regardless of whether enforcement is sought in equity or
at law); (e) except to the extent already obtained or made, no consent of
any other party (including, without limitation, any shareholder or creditor of
the Pledgor or any of its Subsidiaries) and no consent, license, permit,
approval or authorization of, exemption by, notice or report to, or
registration, filing or declaration with, any governmental authority is
required to be obtained by the Pledgor in connection with: (i) the
execution, delivery or performance of this Agreement; (ii) the validity or
enforceability of this Agreement; (iii) the perfection or enforceability
of the Pledgee’s security interest in the Collateral; or (iv) except for
compliance with or as may be required by applicable securities laws, the
exercise by the Pledgee of any of its rights or remedies provided herein; (f) the
execution, delivery and performance of this Agreement will not violate any
provision of any applicable law or regulation or of any order, judgment, writ,
award or decree of any court, arbitrator or governmental authority, domestic or
foreign, applicable to the Pledgor, or of the articles, by-laws, resolutions
for shareholders agreements of or pertaining to the Pledgor or of any
securities issued by the Pledgor or any of its Subsidiaries, or of any material
mortgage, indenture, lease, loan agreement, credit agreement or other contract,
agreement or instrument or undertaking to which the Pledgor or any of its
Subsidiaries is a party or which purports to be binding upon the Pledgor or any
of its Subsidiaries or upon any of their respective assets and will not result
in the creation or imposition of (or the obligation to create or impose) any
Lien or encumbrance on any of the assets of such Pledgor or any of its
Subsidiaries except as contemplated by this Agreement; (g) all of the
Pledged Stock has been duly and validly issued, is fully paid and (except in
the case of the ULC Shares) non-assessable and is subject to no options to
purchase or similar tights; (h) each of the Pledged Notes constitutes, or
when executed by the obligor thereof will constitute, the legal, valid and
binding obligation of such obligor, enforceable in accordance with its terms,
except to the extent that the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws generally affecting creditors’ rights and by equitable principles
(regardless of whether enforcement is sought in equity or at law); and (i) the
pledge, collateral assignment and delivery to the Pledgee of the Collateral
(other than uncertificated Securities) pursuant to this Agreement creates a valid
and perfected first priority Lien in the Collateral, and the proceeds thereof,
subject to no other Lien or encumbrance (other than Permitted Liens) or to any
agreement purporting to grant to any third party a Lien or encumbrance on the
property or assets of such Pledgor which would include the Collateral.

 

The Pledgor covenants and agrees that (A) it will
defend the Pledgee’s right, title and security interest in and to the
Collateral and the proceeds thereof against the claims and demands of all persons
whomsoever and (B) it will have like title to and right to pledge any
other property at any time hereafter pledged to the Pledgee as Collateral
hereunder and will likewise defend the right thereto and security interest
therein of the Pledgee and the Beneficiaries.

 

10

 

16.                               PLEDGOR’S
OBLIGATIONS ABSOLUTE, ETC.

 

The obligations of the Pledgor under this Agreement
shall be absolute and unconditional and shall remain in full force and effect
without regard to, and shall not be released, suspended, discharged, terminated
or otherwise affected by, any circumstance or occurrence whatsoever, including,
without limitation: (a) any renewal, extension, amendment or modification
of or addition or supplement to or deletion from any Secured Debt Agreement or
any other instrument or agreement referred to therein, or any assignment or
transfer of any thereof; (b) any waiver, consent, extension, indulgence or
other action or inaction under or in respect of any such agreement or
instrument including, without limitation, this Agreement; (c) any
furnishing of any additional security to the Pledgee or its assignee or any
acceptance thereof or any release of any security by the Pledgee or its
assignee; (d) any limitation on any party’s liability or obligations under
any such instrument or agreement or any invalidity or unenforceability, in
whole or in part, of any such instrument or agreement or any term thereof or (e) any
bankruptcy, insolvency, reorganization, composition, adjustment, dissolution,
liquidation or other like proceeding relating to the Pledgor or any Subsidiary
of the Pledgor, or any action taken with respect to this Agreement by any
trustee, receiver, interim receiver, receiver and manager, custodian or by any
court in any such proceeding, whether or not the Pledgor shall have notice or
knowledge of any of the foregoing.

 

17.                               REGISTRATION,
ETC.

 

(i)                                     If
there shall have occurred and be continuing an Event of Default then, and in
every such case, upon receipt by the Pledgor from the Pledgee of a written
request or requests that such Pledgor cause any registration, qualification or
compliance under any securities law or laws to be effected with respect to all
or any part of the Pledged Stock, such Pledgor as soon as practicable and at
its expense will use its commercially reasonable efforts to cause such
registration to be effected (and be kept effective) and will use its
commercially reasonable efforts to cause such qualification and compliance to
be declared effected (and be kept effective) as maybe so requested and as would
permit or facilitate the sale and distribution of such Pledged Stock, provided
that the Pledgee shall furnish to the Pledgor such information regarding the
Pledgee as the Pledgor may request in writing and as shall be required in
connection with any such registration, qualification or compliance. The Pledgor
will cause the Pledgee to be kept advised in writing as to the progress of each
such registration, qualification or compliance and as to the completion
thereof, will furnish to the Pledgee such number of prospectuses, offering
circulars, offering memorandum, or other documents incident thereto as the
Pledgee from time to time may reasonably request, and will indemnify the
Pledgee and all others participating in the distribution of such Pledged Stock
against all claims, losses, damages and liabilities caused by any untrue
statement (or alleged untrue statement) of a material fact contained therein
(or in any related registration statement, notification or the like) or by any
omission (or alleged omission) to state therein (or in any related registration
statement, notification or the like) a material fact required to be stated
therein or necessary to make the statements therein not misleading, except insofar
as the same may have been caused by an untrue statement or omission based upon
information furnished in writing to the Pledgor by the Pledgee expressly for
use therein.

 

11

 

(ii)                                  If
at any time when the Pledgee shall determine to exercise its right to sell all
or any part of the Pledged Securities pursuant to Section 7 hereof,
and such Pledged Securities or the part thereof to be sold shall not, for any
reason whatsoever, be effectively registered or otherwise qualified for sale to
the public under applicable securities laws then in effect, the Pledgee may, in
its sole and absolute discretion, sell such Pledged Securities or part thereof
by private sale in such manner and under such circumstances as the Pledgee may
deem necessary or advisable in order that such sale may legally be effected
without such registration. Without limiting the generality of the foregoing, in
any such event the Pledgee, in its sole and absolute discretion (a) may
proceed to make such private sale notwithstanding that a registration statement
or prospectus for the purpose of registering or otherwise qualifying for sale
of such Pledged Securities or part thereof shall have been filed under
applicable securities laws, (b) may approach and negotiate with a single
possible purchaser to effect such sale, and (c) may restrict such sale to
a purchaser who will represent and agree that such purchaser is purchasing for
its own account, for investment, and not with a view to the distribution or
sale of such Pledged Securities or part thereof. In the event of any such sale,
the Pledgee shall incur no responsibility or liability for selling all or any
part of the Pledged Securities at a price which the Pledgee, in its sole and
absolute discretion, may in good faith deem reasonable under the circumstances,
notwithstanding the possibility that a substantially higher price might be
realized if the sale were deferred until after registration as aforesaid.

 

18.                               NOTICES
ETC.

 

Except as otherwise expressly permitted herein,
notices and other communications provided for herein shall be in writing and
shall be delivered by hand or overnight courier service, mailed or sent by fax,
as follows:

 

(i)                                     If
to the Pledgor at:

 

Smurfit-Stone
Container Canada Inc.

630 René-Lévesque
Blvd., West, Suite 3000

Montreal, PQ H3B
5C7

 

Attention: Canadian
Legal Counsel and Assistant Secretary

Tel.: (514)
861-4011 (Ext. 271)

Telecopier: (514)
861-2208

 

12

 

with a copy to:

 

Smurfit- Stone
Container Corporation

8182 Maryland Avenue

St. Louis, MO 63105

 

Attention: Treasurer

Tel.: (314)746-1255

Telecopier: (314) 746-1281

 

and to:

 

Winston &
Strawn

35 West Wacker Drive

Chicago, IL 60601

 

Attention: Brian
S. Hart, Esq.

Tel.: (312) 558-5600

Telecopier: (312) 558-5700

 

(ii)                                  If
to the Pledgee:

 

Deutsche Bank
Trust Company Americas

90 Hudson Street, 1st Floor

Jersey City, NJ 07302

 

Attention: Helaine
Griffin-Williams

Telecopier: (201) 593-2308

 

with a copy to:

 

(iii)                               If
to any Lender or Agent, at its address set forth in the Credit Agreement.

 

(iv)                              if
to any Beneficiary at such address as such Beneficiary shall have specified in
writing to SSC Canada and the Pledgee;

 

Any party hereto may change its address or fax number
for notices and other communications hereunder by notice to the other parties
hereto. All notices and other communications given to any party hereto in
accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt if delivered by hand or overnight courier service
or sent by fax, or on the date five Business Days after dispatch by certified
or registered mail if mailed, in each case delivered, sent or mailed (properly
addressed) to such party as provided in this Section 18.

 

19.                               WAIVER,
AMENDMENT.

 

None of the terms and conditions of this Agreement may
be changed, waived, modified or varied in any manner whatsoever unless in
writing duly signed by the Pledgor and the Pledgee (with the written consent of
the Required Lenders or, to the extent required by Section 11.08 of
the Credit Agreement, with the consent of each of the Lenders).

 

13

 

20.                               RECOURSE.

 

This Agreement is made with full recourse to the
Pledgor and pursuant to and upon all the representations, warranties, covenants
and agreements on the part of the Pledgor contained herein, in the other
Canadian Loan Documents, in the Lender Swap Agreements, in the Cash Management
Agreements and otherwise in writing in connection herewith or therewith.

 

21.                               PAYMENTS
AND JUDGEMENT CURRENCY.

 

The provisions of Sections 2.18 and 11.18
of the Credit Agreement shall apply to each payment required to be made under
this Agreement as if such provisions expressly referenced each such payment.

 

22.                               COSTS,
EXPENSES AND TAXES.

 

The Pledgor agrees to pay all reasonable costs and
expenses in connection with the negotiation, preparation, reproduction,
execution and delivery of this Agreement, any amendment or modifications of (or
supplements to) this Agreement and any and all other documents furnished
pursuant hereto or thereto or in connection herewith or therewith, including
the reasonable fees and out-of-pocket expenses of Osler, Hoskin &
Harcourt LLP, special counsel to the Pledgee, and any local counsel retained by
the Pledgee relative hereto or thereto or (but not as well as) the reasonable
allocated costs of staff counsel, as well as the reasonable fees and
out-of-pocket expenses of counsel or (but not as well as) the reasonable
allocated costs of staff counsel, independent public or chartered accountants
and other outside experts retained by the Pledgee in connection with the
administration of this Agreement, and all reasonable costs and expenses
(including, without limitation, reasonable fees and expenses of legal counsel
or (but not as well as) the reasonable allocated costs of staff counsel), if
any, incurred by any Beneficiary in connection with the enforcement of this
Agreement or any other agreement furnished pursuant hereto or in connection
herewith. In addition, the Pledgor shall pay any and all stamp, transfer and
other similar taxes payable or determined to be payable in connection with the
execution and delivery of this Agreement, and agree to save and hold each
Beneficiary harmless from and against any and all liabilities with respect to
or resulting from any delay in paying, or omission to pay, such taxes.

 

23.                               EXECUTION
IN COUNTERPARTS.

 

This Agreement may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of
which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute but
one and the same Agreement. This Agreement may be executed by facsimile.

 

24.                               BINDING
EFFECT; ASSIGNMENT.

 

This Agreement shall be binding upon, and inure to the
benefit of, the Pledgor and the Pledgee and the other Beneficiaries and their
respective successors and assigns; provided, however, that the Pledgor may not
assign its rights or obligations hereunder or in connection herewith or any
interest herein (voluntarily, by operation of law or otherwise) without the
prior written consent of the Lenders.

 

14

 

25.                               CONSENT
TO JURISDICTION.

 

The Pledgor hereby irrevocably submits to the
non-exclusive jurisdiction of any Nova Scotia court in any action or proceeding
arising out of or relating to this Agreement, and the Pledgor hereby
irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in any such court and the Pledgor irrevocably waives
any objection, including, without limitation, any objection to the laying of
venue or based on the grounds of forum non conveniens which it may now or
hereafter have to the bringing of any such action or proceeding in such
respective jurisdictions. To the extent permitted by applicable law, as a
method of service, the Pledgor irrevocably consents to the service of any and
all process in any such action or proceeding brought in such court by the
delivery of copies of such process to such Pledgor at its address specified
herein or by certified or registered mail directed to such address.

 

26.                               GOVERNING
LAW.

 

This Agreement shall be governed by, and construed in
accordance with the laws of the Province of Nova Scotia and the federal laws of
Canada applicable therein, without regard to the principles of conflict of laws
except for the perfection and enforcement of security interests and liens in
other jurisdictions, which shall be governed by the laws of those
jurisdictions.

 

27.                               SEVERABILITY
OF PROVISIONS.

 

Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity of
enforceability of such provision in any other jurisdiction.

 

28.                               HEADINGS.

 

The Section headings used in this Agreement are
for convenience of reference only and shall not affect the construction of this
Agreement.

 

29.                               OBLIGATIONS
ABSOLUTE.

 

The obligations of the Pledgor hereunder shall remain
in full force and effect without regard to, and shall not be impaired by, (a) any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of the Pledgor, (b) any exercise or non-exercise,
or any waiver of, any right, remedy, power or privilege under or in respect of
this Agreement or any Canadian Loan Document except as specifically set forth
in a waiver granted pursuant to the provisions of Section 19 hereof
or (c) any amendment to or modification of any Canadian Loan Document or
any security for any of the Secured Obligations, whether or not such Pledgor
shall have notice or knowledge of any of the foregoing.

 

30.                               TERMINATION;
RELEASE.

 

This Agreement shall continue in effect
(notwithstanding the fact that from time to time there maybe no Canadian
Obligations or commitments therefor outstanding) until the earlier of (a) the
time when

 

15

 

(i) no Canadian Obligations or commitments of or
by the Pledgee or any Lender which could give rise to any Canadian Obligation
shall be outstanding, and (ii) the Pledgee shall have received written
notice from the Pledgor electing to terminate this Agreement and (b) the
time when the Collateral is required to be released pursuant to Section 11.09
of the Credit Agreement. Collateral may be released from time to time in
accordance with Section 11.09 of the Credit Agreement. Upon the
termination of this Agreement, the Pledgee, at the request and expense of SSC
Canada, will execute and deliver to the Pledgor the proper instruments
acknowledging the termination of this Agreement, and will duly assign, transfer
and deliver to the Pledgor (without recourse and without any representation or
warranty) such of the Collateral as may be in possession of the Pledgee and has
not theretofore been sold or otherwise applied or released pursuant to this Agreement.

 

31.                               ULC
SHARES.

 

Notwithstanding any provisions to the contrary
contained in this Agreement or any other document or agreement among all or
some of the parties hereto, the Pledgor is the sole registered and beneficial
owner of all Securities which are ULC Shares and will remain so until such time
as such ULC Shares are effectively transferred into the name of the Pledgee, a
Beneficiary or any other person on the books and records of such ULC.
Accordingly the Pledgor shall be entifled to receive and retain for its own
account any dividend on or other distribution, if any, in respect of such
collateral (except insofar as the Pledgor has granted a security interest in
such dividend on or other distribution, and any shares which are collateral
shall be delivered to the Pledgee to hold as collateral hereunder) and shall
have the right to vote such collateral and to control the direction, management
and policies of the ULC issuer to the same extent as the Pledgor would if such
collateral were not pledged to the Pledgee (for its own benefit and for the
benefit of the Beneficiaries) pursuant hereto. Nothing in this Agreement or any
other document or agreement among all or some of the parties hereto is intended
to, and nothing in this Agreement or any other document or agreement among all
or some of the parties hereto shall, constitute the Pledgee, any of the
Beneficiaries or any person other than the Pledgor, a member of a ULC for the
purposes of NS Act until such time as notice is given to the Pledgor and further
steps are taken thereunder so as to register the Pledgee or other person as
holder of ULC Shares. To the extent any provision hereof would have the effect
of constituting the Pledgee or any of the Beneficiaries as a member of any ULC
prior to such time, such provision shall be severed therefrom and ineffective
with respect to collateral which are ULC Shares without otherwise invalidating
or rendering unenforceable this Agreement or invalidating or rendering
unenforceable such provision insofar as it relates to collateral which are not
ULC Shares. Except upon the exercise of rights to sell or otherwise dispose of
the ULC Shares following the occurrence of an Event of Default pursuant to Section 7
hereof, no Pledgor shall cause or permit, or enable any ULC in which they hold
ULC Shares to cause or permit, the Pledgee or other Beneficiaries to: (a) be
registered as shareholders or members of such ULC; (b) have any notation
entered in their favour in the share register of such ULC; (c) be held out
as shareholders or members of such ULC; (d) to receive, directly or
indirectly, any dividends, property or other distributions from the ULC by
reason of the Pledgee or the Beneficiaries holding a security interest in the
ULC Shares; or (e) to act as a shareholder or member of the ULC, or
exercise any rights of a shareholder or member including the right to attend a
meeting of the ULC or vote the ULC Shares.

 

[signature
page follows]

 

16

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed and delivered by their duly authorized officers
as of the date first above written.

 

 

	
   

  	
  SMURFIT-STONE CONTAINER CANADA

  INC., as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS, as Pledgee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

ANNEX A TO THE

PLEDGE AGREEMENT (CANADIAN)

 

PART 1

 

CAPITAL STOCK AND EOUITY INTERESTS IN ANY PERSON

 

	
  Issuer

  	
   

  	
  Number of

  Certificate

  	
   

  	
  Registered

  Owner or

  Pledgor

  	
   

  	
  Number and Class of

  Shares/Equity

  Interests/Partnership

  Units

  	
   

  	
  Percentage of

  Shares/Equity

  Interests/Partnership

  Units

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MBI Limited/Limitée

  	
   

  	
  C-18A

  	
   

  	
  Smurfit-Stone Container
  Canada Inc.

  	
   

  	
  1 Common Share

  	
   

  	
  50%

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-MBI 

  	
   

  	
  uncertificated

  	
   

  	
  Smurfit-Stone Container Canada Inc 

  	
   

  	
  uncertificated

  	
   

  	
  49.9999% unitholding in
  the limited partnership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3083527 Nova Scotia Company

  	
   

  	
  No. 4

  	
   

  	
  Smurfit-Stone Container Canada Inc

  	
   

  	
  1,400,000

  	
   

  	
  100%

  	
   

  
	
   

  
	
   

  

 

 

PART II

 

DEBT SECURITIES AND PROMISSORY NOTES

 

	
  Issuer

  	
   

  	
  Principal Amount

  	
   

  	
  Date of Note

  	
   

  	
  Maturity Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NIL

  	
   

  

 

2

 

SECURITY AGREEMENT
(CANADIAN)

 

This SECURITY AGREEMENT (CANADIAN) (as amended, restated, supplemented
or otherwise modified from time to time, this “Agreement”)
is dated as of November 1, 2004 and made by Smurfit-Stone Container Canada
Inc., a corporation continued under the Companies Act
(Nova Scotia) (“SSC Canada” or the “Debtor”) in favour of DEUTSCHE BANK TRUST COMPANY AMERICAS,
a New York banking corporation (the “Collateral Agent”)
for the benefit of the Beneficiaries. 
Capitalized terms used herein shall have the respective meanings given
to them in or pursuant to Section 5.1 hereof.

 

RECITALS:

 

A.                                   Smurfit-Stone
Container Corporation, a Delaware Corporation, Smurfit-Stone Container
Enterprises, Inc., a Delaware Corporation, SSC Canada, the Lenders, JPMorgan
Chase Bank, a New York banking corporation, as Senior Agent, Deposit Account
Agent and Deposit Funded Facility Facing Agent, Deutsche Bank Trust Company
Americas, a New York banking corporation, as Senior Agent, Administrative
Agent, Collateral Agent, Swingline Lender and Revolving Facility Facing Agent
and Deutsche Bank AG, an authorized foreign bank permitted to carry on business
in Canada and listed in Schedule III of the Bank Act (Canada), as Canadian
Administrative Agent and as Revolving (Canadian) Facility Facing Agent, have
entered into the Credit Agreement dated as of November 1, 2004, and as
from time to time amended, supplemented, restated, or otherwise modified, the “Credit Agreement”).

 

B.                                     The
Debtor has executed and delivered a SSC Canada Pledge Agreement, dated as of
the date hereof (as amended, restated, supplemented or otherwise modified, the “Pledge”), to the Collateral Agent
for the benefit of the Beneficiaries, pursuant to which the Debtor pledged the
Pledged Stock and the Pledged Notes (as defined in the Pledge).

 

C.                                     The
Debtor has agreed to execute and deliver this Agreement to the Collateral Agent
for the benefit of the Beneficiaries in order to further secure the Secured
Obligations (as defined in the Pledge) (the “Secured
Obligations”).

 

NOW, THEREFORE, in consideration
of the premises and other benefits to the Debtor, the receipt and sufficiency
of which are hereby acknowledged, the Debtor hereby makes the following
representations and warranties to each of the Beneficiaries and hereby
covenants and agrees with such Beneficiaries as follows:

 

 

ARTICLE 1

SECURITY INTERESTS

 

1.1                               Grant
of Security Interests.

 

(a)                                  As
security for the prompt and complete payment and performance when due of all of
the Secured Obligations, the Debtor hereby pledges, hypothecates, assigns,
transfers and grants to the Collateral Agent for the ratable benefit of the
Beneficiaries, a continuing security interest of first priority, subject, as to
priority, only to Permitted Liens which, pursuant to applicable law, are prior
in right to the Lien granted hereby, in all right, title and interest of the
Debtor in all of the Debtor’s present and after-acquired personal property
including, without limitation, all:

 

(A)                              Equipment
(including, without limitation, all Equipment used in the Debtor’s business and
all office equipment),

 

(B)                                Fixtures,
together with accessions thereto and replacement parts therefor,

 

(C)                                Inventory,

 

(D)                               Accounts,

 

(E)                                 Contracts,

 

(F)                                 Intangibles,

 

(G)                                intangible
property,

 

(H)                               Intellectual
Property,

 

(I)                                    Money;
including cash and cash accounts,

 

(J)                                   all
Proceeds of the foregoing (including, without limitation, all insurance and
claims for insurance effected or held for the benefit of the Debtor or the
Beneficiaries in respect thereof), and

 

(K)                               products
of any and all of the foregoing,

 

in each case whether now owned or hereafter acquired,
with the exception of the Excluded Property (all of the foregoing being
collectively referred to herein as the “Collateral”).

 

(b)                                 The
assignment and security interest so granted to the Collateral Agent shall not
relieve the Debtor from the performance of any term, covenant, condition or
agreement on the Debtor’s part to be performed or observed under or in respect
of any of the Collateral or from any liability to any Person under or in
respect of any of the Collateral or impose any obligation on the Collateral
Agent to perform or observe

 

2

 

any such term,
covenant, condition or agreement on the Debtor’s part to be so performed or
observed or impose any liability on the Collateral Agent for any act or
omission on the part of the Debtor relative thereto or for any breach of any
representation or warranty on the part of the Debtor contained in this
Agreement or any other Canadian Loan Document, or in respect of the Collateral
or made in connection herewith or therewith. 
The obligations of the Debtor contained in this paragraph shall survive
the termination of this Agreement and the discharge of the Debtor’s other
obligations hereunder.

 

(c)                                  The
security interest granted hereby shall not extend or apply to, and Collateral
shall not include, the last day of the term of any lease or agreement therefor,
but upon the enforcement of the security interest, the Debtor shall stand
possessed of such last day in trust to assign the same to any person acquiring
such term.

 

(d)                                 The
security interest granted hereby shall not extend or apply to, and Collateral
shall not include, Excluded Property.

 

(e)                                  Nothing
herein shall constitute an assignment or attempted assignment of any contract
or agreement which by the provisions thereof or by law is not assignable or
which requires the consent of a third party to its assignment unless such
consent has been obtained.  In each such
case, the Debtor shall, unless the Collateral Agent otherwise agrees in
writing, forthwith, upon written request by the Collateral Agent, attempt to
obtain the consent of any necessary third party to its assignment hereby and to
its further assignment by the lender to any third party who may acquire same as
a result of the exercise by the Collateral Agent of remedies after demand.  Upon such consent being obtained or waived,
this Agreement shall apply to the applicable contract or agreement without
regard to this section and without the necessity of any further assurance to
effect the assignment thereof.  Unless
and until the consent to assignment is obtained as provided above, the Debtor
shall, to the extent it may do so by law or pursuant to the provisions of the
document or interest referred to therein, hold all benefit to be derived from
the applicable contracts or agreements in trust for the Collateral Agent
(including, without limitation, the Debtor’s beneficial interest in any
contract or agreement which may be held in trust for the Debtor by a third
party), as additional security for payment of the Secured Obligations and shall
deliver up all such benefit to the Collateral Agent, forthwith upon demand by
the Collateral Agent.

 

1.2                               Power
of Attorney.

 

The Debtor hereby constitutes and appoints the
Collateral Agent its true and lawful attorney, irrevocably, with full power
after the occurrence and during the continuance of an Event of Default, upon
acceleration or otherwise (in the name of the Debtor or otherwise), to require,
demand, receive, compound and give acquittance for any and all monies and
claims for monies due or to become due to the Debtor under or arising out of
the Collateral, to endorse any cheques or other instruments or orders in
connection therewith and to file any claims or take any action or institute any
proceedings which the Collateral Agent may deem to be necessary or advisable in
the premises.  This appointment as
attorney is coupled with an interest

 

3

 

ARTICLE 2

GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS

 

The Debtor represents, warrants and covenants, which
representations, warranties and covenants shall survive execution and delivery
of this Agreement and any investigation by or on behalf of the Collateral Agent
or any Beneficiary, as follows:

 

2.1                               Necessary
Filings.

 

(a)                                  Perfection
Certificate.  The Perfection
Certificates has been duly prepared, completed and executed and the information
set forth therein including the exact legal name of the Debtor, the Debtor’s
type of organization, jurisdiction of organization, chief executive office,
principal place of business, domicile (within the meaning of the Quebec Civil
Code) and location of assets is correct and complete in all material
respects.  All filings, registrations and
recordings necessary or appropriate to create, preserve, protect and perfect
the security interest granted by the Debtor to the Collateral Agent hereby in
respect of the Collateral have been accomplished and the security interest
granted to the Agent pursuant to this Agreement in and to the Collateral
constitutes a perfected security interest therein superior and prior to the
rights of all other Persons therein (except Persons holding Permitted Liens)
and subject to no other Liens (except Permitted Liens) and is entitled to all
the rights, priorities and benefits afforded by the PPSA or other relevant law
as enacted in any relevant jurisdiction which relates to perfected security
interests.  Without limiting in any way
the obligations of the Debtor set forth herein, if the Collateral Agent shall
notify the Debtor of any filing required to be made pursuant to this Section,
the Debtor shall have ten (10) business days from such notice to make any
such filing.

 

(b)                                 Filings
with respect to Intellectual Property. 
The Debtor represents and warrants that fully executed security
agreements in the form hereof and containing a description of all Intellectual
Property consisting of Industrial Designs, Patents, Trademarks and Copyrights
have been delivered to the Collateral Agent for recording by the relevant
offices in the Canadian Intellectual Property Office, and otherwise as maybe
required pursuant to the laws of any other necessary jurisdiction, to protect
the validity of and to establish a legal, valid and perfected security interest
in favour of the Agent (for the ratable benefit of the Beneficiaries) in
respect of all Intellectual Property consisting of Industrial Designs, Patents,
Trademarks and Copyrights in which a security interest may be perfected by
filing, recording or registration in Canada.

 

(c)                                  Financing
Statements and Financing Change Statements. 
The Debtor agrees to deliver to the Collateral Agent such financing
statements and financing change statements, in form acceptable to the
Collateral Agent, as the Collateral Agent may from time to time request in
order to establish and/or maintain a valid, enforceable, first priority
security interest in the Collateral as provided herein (except for Permitted
Liens) and the other rights, as against third parties, provided hereby, all in
accordance with the PPSA or any other relevant law.  The Debtor will pay any

 

4

 

applicable filing
fees and related expenses.  The Debtor authorizes
the Collateral Agent to file any such financing statements and financing change
statements.

 

(d)                                 Filing
Requirements.  Upon written request
therefor, the Debtor shall promptly deliver to the Collateral Agent any and all
certificates of title, applications for title or similar evidence of ownership
of any or all Collateral and shall cause the Collateral Agent to be named as
lienholder on any such certificates of title or other evidences of
ownership.  No material part of the
Collateral is of a type in which security interests or liens maybe registered,
recorded or filed under, or notice thereof given under, any statute or
regulation.  The Debtor shall not permit
any material Collateral to become Fixtures to real estate other than real
estate described in the Mortgages (if any) executed by the Debtor in favour of
the Collateral Agent.

 

2.2                               Title
to Collateral.

 

The Debtor has good and marketable title to all
material items comprising the Collateral, subject only to Permitted Liens.  The Debtor will not (i) create, incur,
assume or permit to exist any Lien on any existing or future item of Collateral
other than Permitted Liens, the Debtor hereby agreeing to preserve and maintain
in full force and effect the Liens on the Collateral created by this Agreement
in favour of the Collateral Agent; or (ii) except as permitted by the
Credit Agreement, enter into or assume any agreement containing a negative
pledge which would require a sharing of an interest in the Collateral or
prohibits or limits the grant of any such interest.  Until all of the Secured Obligations shall
have been fully paid and satisfied and all commitments in respect of the
Secured Obligations and the Obligations (as defined in the Credit Agreement)
have been terminated and except as otherwise provided by the Credit Agreement,
the Collateral Agent shall be entitled to retain security in and Liens upon all
Collateral and all of the Collateral Agent’s rights and remedies shall
continue.

 

2.3                               Further
Actions — Collateral.

 

The Debtor will, at its own expense, make, execute,
endorse, acknowledge, file and/or deliver to the Collateral Agent from time to
time such lists, descriptions and designations of the Collateral, mortgages,
leasehold mortgages, deeds of trust, security instruments or similar instruments,
powers of attorney, certificates, reports, and other assurances or instruments
and take such further steps relating to the Collateral and other property or
rights covered by the security interest hereby granted, which the Collateral
Agent deems reasonably appropriate or advisable to perfect, preserve or protect
its security interest in the Collateral.

 

2.4                               Other
Financial Statements.

 

There is no financing statement, financing change
statement (or similar statement or instrument of registration under the law of
any jurisdiction) on file (other than those filed in connection with Permitted
Liens) in any public office covering or purporting to cover any interest of any
kind in the Collateral other than financing statements and/or financing change
statements filed in connection herewith and so long as the commitment of any
Lender remains in effect in whole or in part in respect of any of the
Obligations (as defined in the Credit Agreement) or any of the Secured

 

5

 

Obligations remain unpaid, the Debtor will not
authorize to be filed in any public office any financing statement (or similar
statement or instrument of registration under the law of any jurisdiction),
financing change statement or statements relating to the Collateral, except
financing statements or financing change statements filed or to be filed in
respect of and covering the security interests granted hereby by the Debtor or
in connection with financing leases permitted by the Credit Agreement or as
otherwise permitted by the Credit Agreement. 
The Debtor does not conduct business under any names other than as set
out in the Perfection Certificates.

 

2.5                               Additional
Representations and Warranties of the Debtor.

 

The Debtor represents and warrants that (i) the
execution and delivery by it of this Agreement and the performance of its
respective obligations hereunder have been duly authorized by all necessary
corporate action on its part, (ii) this Agreement has been duly executed
and delivered by the Debtor and (iii) this Agreement is a legal, valid and
binding obligation of the Debtor enforceable against the Debtor in accordance
with its terms, except as enforcement thereof may be subject to the effect of
any applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting creditors’ rights generally and general principles of equity
(regardless of whether such enforcement is sought in a proceeding in equity or
at law).

 

2.6                               Covenants.

 

The Debtor agrees promptly to notify the Collateral
Agent and the Canadian Administrative Agent in writing of any change (i) in
its corporate name, (ii) in its identity or type of organization or
corporate structure, or (iii) in its jurisdiction of organization.  The Debtor agrees to promptly provide the
Collateral Agent and the Canadian Administrative Agent with certified
organizational documents reflecting any of the changes described in the first
sentence of this paragraph.  The Debtor
agrees not to effect or permit any change referred to in the preceding sentence
unless all filings have been made under the PPSA or otherwise that are required
in order for the Collateral Agent to continue at all times following such
change to have a valid, legal and perfected first priority security interest in
all the Collateral subject to Permitted Liens. 
The Debtor agrees promptly to notify the Collateral Agent if any
material portion of the Collateral owned or held by the Debtor is damaged or
destroyed.

 

2.7                               Protection
of Agent’s Security.

 

The Debtor will not do anything to impair the rights
of the Collateral Agent in the Collateral. 
The Debtor will at all times keep the Collateral insured in favour of
the Collateral Agent in compliance with the requirements of the Credit
Agreement.  The Debtor assumes all liability
and responsibility in connection with the Collateral acquired by it, and the
liability of the Debtor to pay and perform the Secured Obligations shall in no
way be affected or diminished by reason of the fact that such Collateral may be
lost, stolen, damaged, or for any reason whatsoever unavailable to the Debtor.

 

2.8                               Governmental
Authorizations; Consents.

 

No authorization, approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body or
consent of any other Person which has not been obtained on or prior to the date
hereof is required either (i) for the grant by the Debtor of the security
interests granted

 

6

 

hereby or for the execution, delivery or performance
of this Agreement by the Debtor or (ii) for the perfection of or the
exercise by the Collateral Agent of its rights and remedies hereunder.

 

2.9                               Bailee.

 

The Debtor shall, upon the request of the Collateral
Agent, notify and use commercially reasonable efforts to obtain an
acknowledgement from any warehouseman, bailee, agent, or processor that from
time to time possesses or controls any material portion of the Collateral of
the security interests created hereby and, upon the request of the Collateral
Agent, shall instruct such Person to hold all such Collateral for the
Collateral Agent’s account subject to the Collateral Agent’s instructions.  In the event that the Debtor shall have, for
any reason failed to make any such notification, the Debtor hereby authorizes
the Collateral Agent to do so as the Debtor’s agent or otherwise on the Debtor’s
behalf.

 

2.10                        Covenants
Regarding Patent, Trademark, Copyright and Industrial Design Collateral

 

(a)                                  The
Debtor agrees that it will not, nor will it permit any of its licensees to, do
any act, or omit to do any act, whereby any Patent which is material to the
conduct of the business of the Debtor and the respective subsidiaries taken as
a whole may become invalidated or dedicated to the public, and agrees that it
shall continue to mark any products covered by any such Patent with the
relevant patent number as necessary and sufficient to establish and preserve
its maximum rights under applicable patent laws.

 

(b)                                 The
Debtor (either itself or through its licensees or its sublicensees) will, for
each Trademark material to the conduct of the business of the Debtor and the
respective subsidiaries taken as a whole, (i) maintain such Trademark in
full force free from any claim of abandonment or invalidity for non-use, (ii) maintain
the quality of products and services offered under such Trademark, (iii) display
such Trademark with notice of Canadian or foreign registration to the extent
necessary and sufficient to establish and preserve its maximum rights under
applicable law and (iv) not knowingly use or knowingly permit the use of
such Trademark in violation of any third party rights.

 

(c)                                  The
Debtor (either itself or through licensees) will, for each work covered by a
Copyright material to the business of the Debtor and the respective
subsidiaries taken as a whole, continue to publish, reproduce, display, adopt
and distribute the work with appropriate copyright notice as necessary and
sufficient to establish and preserve its maximum rights under applicable
copyright laws.

 

(d)                                 The
Debtor (either itself or through its licensees or its sublicensees) will, for
each Industrial Design material to the conduct of the business of the Debtor
and the respective subsidiaries taken as a whole, (i) maintain such
Industrial Design in full force including renewing the registration of such
design when possible, (ii) display such notice on all products which
incorporate the Industrial Design as are required to preserve its maximum
rights under applicable law.

 

7

 

(e)                                  The
Debtor shall notify the Collateral Agent immediately if it knows or has reason
to know that any Patent, Trademark, Copyright or Industrial Design material to
the conduct of the business of the Debtor and the respective subsidiaries taken
as a whole may become abandoned, lost or dedicated to the public, or of any
adverse determination or development (including the institution of, or any such
determination or development in, any proceeding in the Canadian Intellectual
Property Office or any court or similar office of any country) regarding the
Debtor’s ownership of any such Patent, Trademark, Copyright or Industrial
Design, its right to register the same, or to keep and maintain the same.

 

(f)                                    In
no event shall the Debtor, either itself or through any agent, employee,
licensee or designee, file an application for any Patent, Trademark, Copyright
or Industrial Design (or for the registration of any Trademark, Copyright or
Industrial Design) material to the business of the Debtor and the respective
subsidiaries taken as a whole with the relevant office of the Canadian
Intellectual Property Office or any office or agency in Canada or in any other
country or any political subdivision thereof, unless it promptly informs the
Collateral Agent, and, upon request of the Collateral Agent, executes and
delivers any and all agreements, instruments, documents and papers as the
Collateral Agent may request to evidence the Collateral Agent’s security
interest in such Patent, Trademark, Copyright or Industrial Design, and the
Debtor hereby appoints the Collateral Agent as its attorney-in-fact to execute
and file such writings for the foregoing purposes, all acts of such attorney
being hereby ratified and confirmed; such power, being coupled with an interest,
is irrevocable.

 

(g)                                 The
Debtor will take all necessary steps that are consistent with the practice in
any proceeding before the relevant office of the Canadian Intellectual Property
Office or any office or agency in any political subdivision of Canada or in any
other country or any political subdivision thereof, to maintain and pursue each
material application relating to the Patents, Trademarks, Copyrights and/or
Industrial Designs (and to obtain the relevant grant or registration) and to
maintain each issued Patent and each registration of the Trademarks, Copyrights
and Industrial Design, in each case that is material to the conduct of the
business of the Debtor and the respective subsidiaries taken as a whole,
including timely filings of applications for renewal, affidavits of use,
affidavits of incontestability and payment of maintenance fees, and, if
consistent with good business judgment, to initiate opposition, interference
and cancellation proceedings against third parties; provided that, to the
extent permitted by the Credit Agreement, the Debtor shall not be obliged to
preserve or maintain any Patent, Trademark, Copyright or Industrial Design in
the event the Debtor determines, in its reasonable business judgement, that the
preservation of such Patent, Trademark Copyright or Industrial Design is no
longer desirable in the conduct of its business.

 

(h)                                 In
the event that the Debtor has reason to believe that any Collateral consisting
of a Patent, Trademark, Copyright or Industrial Design material to the business
of the Debtor and the respective subsidiaries taken as a whole has been or is
about to be infringed, misappropriated or diluted by a third party, the Debtor
promptly shall

 

8

 

notify the Collateral
Agent and shall, if consistent with good business judgement as determined by
the Board of Directors of the Debtor, promptly sue for infringement,
misappropriation or dilution and to recover any and all damages for such
infringement, misappropriation or dilution, and take such other actions as are
reasonably appropriate under the circumstances to protect such Collateral.

 

(i)                                     Upon
and during the continuance of an Event of Default, the Debtor shall, if
requested by the Collateral Agent, use commercially reasonable efforts to
obtain all requisite consents or approvals by the licensor of each Copyright
License, Patent License, Trademark License or Industrial Design License
material to the business of the Debtor and its subsidiaries taken as a whole to
effect the assignment of all of the Debtor’s right, title and interest
thereunder to the Collateral Agent or its designee.

 

ARTICLE 3

REMEDIES UPON OCCURRENCE OF EVENT OF DEFAULT

 

3.1                               Remedies;
Obtaining the Collateral Upon Event of Default.

 

The Debtor agrees that, if any Event of Default shall
have occurred and be continuing, then and in every such case, subject to any
mandatory requirements of applicable law then in effect, the Collateral Agent
may:

 

(a)                                  Rights
under PPSA, etc.  Exercise all of the
rights and remedies granted to secured parties under the PPSA and any other
applicable statute, or otherwise available to the Collateral Agent at law or in
equity.

 

(b)                                 Demand
Possession.  Demand possession of any
or all of the Collateral, in which event the Debtor will, at the expense of the
Debtor, immediately cause the Collateral designated by the Collateral Agent to
be assembled and made available and/or delivered to the Collateral Agent at any
place designated by the Collateral Agent.

 

(c)                                  Take
Possession.  Enter on any premises
where any Collateral is located and take possession of, disable or remove such
Collateral.

 

(d)                                 Deal
with Collateral.  Hold, store and
keep idle, or operate, lease or otherwise use or permit the use of, any or all
of the Collateral for such time and on such terms as the Collateral Agent may
determine, and demand, collect and retain all earnings and other sums due or to
become due from any Person in respect of any of the Collateral.

 

(e)                                  Carry
on Business.  Carry on, or concur in
the carrying on of, any or all of the business or undertaking of the Debtor and
enter on, occupy and use (without charge by the Debtor) any of the premises,
buildings, plant and undertaking of, or occupied or used by, the Debtor.

 

9

 

(f)                                    Enforce
Collateral.  Seize, collect, receive,
enforce or otherwise deal with any Collateral in such manner, on such terms and
conditions and at such times as the Collateral Agent deems advisable.

 

(g)                                 Dispose
of Collateral.  Realize on any or all
of the Collateral and sell, lease, assign, give options to purchase, or
otherwise dispose of and deliver any or all of the Collateral (or contract to
do any of the above), in one or more parcels at any public or private sale, at
any exchange, broker’s board or office of the Collateral Agent or elsewhere, on
such terms and conditions as the Collateral Agent may deem advisable and at
such prices as it may deem best, for cash or on credit or for future delivery.

 

(h)                                 Court-Approved
Disposition of Collateral.  Apply to
a court of competent jurisdiction for the sale or foreclosure of any or all of
the Collateral.

 

(i)                                     Purchase
by Collateral Agent.  At any public
sale, and to the extent permitted by law on any private sale, bid for and
purchase any or all of the Collateral offered for sale and, upon compliance
with the terms of such sale, hold, retain and dispose of such Collateral
without any further accountability to the Debtor or any other Person with
respect to such holding, retention or disposition, except as required
bylaw.  In any such sale to the
Collateral Agent, the Collateral Agent may, for the purpose of making payment
for all or any part of the Collateral so purchased, use any claim for Secured
Obligations then due and payable to it as a credit against the purchase price.

 

(j)                                     Collect
Accounts.  Notify the account debtors
or obligors under any Accounts of the assignment of such Accounts to the
Collateral Agent and direct such account debtors or obligors to make payment of
all amounts due or to become duç to the Debtor in respect of such Accounts
directly to the Collateral Agent and, upon such notification and at the expense
of the Debtor, enforce collection of any such Accounts, and adjust, settle or
compromise the amount or payment of such Accounts, in such manner and to such
extent as the Collateral Agent deems appropriate in the circumstances.

 

(k)                                  Transfer
of Securities.  Transfer any
Securities forming part of the Collateral into the name of the Collateral Agent
and/or its nominee and/or any third parties, with or without disclosing that
the Securities are subject to the Liens arising under this Agreement.

 

(l)                                     Exercise
of Rights.  Exercise any and all
rights, privileges, entitlements and options pertaining to any Securities
forming part of the Collateral as if the Collateral Agent were the absolute
owner of such Securities.

 

(m)                               Payment
of Secured Obligations.  Pay any
liability secured by any security interest against any Collateral.  The Debtor will immediately on demand
reimburse the Collateral Agent for all such payments.

 

(n)                                 Borrow
and Grant Security Interests.  Borrow
money for the maintenance, preservation or protection of any Collateral or for
carrying on any of the business or

 

10

 

undertaking of the
Debtor and grant Liens on any Collateral (in priority to the Liens created by
this Agreement or otherwise) as security for the money so borrowed.  The Debtor will immediately on demand
reimburse the Collateral Agent for all such borrowings.

 

(o)                                 Appoint
Receiver.  Appoint by instrument in
writing one or more receivers (which term includes a receiver and manager) of
the Debtor or any or all of the Collateral with such rights, powers and
authority (including any or all of the rights, powers and authority of the
Collateral Agent under this Agreement) as may be provided for in the instrument
of appointment or any supplemental instrument, and remove and replace any such
receiver from time to time.  Any receiver
appointed by the Collateral Agent will (for purposes relating to responsibility
for the receiver’s acts or omissions) be considered to be the agent of the
Debtor and not of the Collateral Agent.

 

(p)                                 Court-Appointed
Receiver.  Apply to a court of
competent jurisdiction for the appointment of a receiver of the Debtor or of
any or all of the Collateral.

 

3.2                               Waiver
of Claims.

 

Except as otherwise provided in this Agreement, THE
DEBTOR HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, NOTICE OR
JUDICIAL HEARING IN CONNECTION WITH THE COLLATERAL AGENT’S TAKING POSSESSION OR
THE COLLATERAL AGENT’S DISPOSITION OF ANY OF THE COLLATERAL INCLUDING, WITHOUT
LIMITATION, ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR
REMEDIES AND ANY SUCH RIGHT WHICH THE DEBTOR WOULD OTHERWISE HAVE UNDER
APPLICABLE LAW, and the Debtor hereby further waives:

 

(a)                                  all
damages occasioned by such taking of possession except any damages which are
the direct result of the Collateral Agent’s violation of law, gross negligence
or willful misconduct;

 

(b)                                 all
other requirements as to the time, place and terms of sale or other
requirements with respect to the enforcement of the Collateral Agent’s rights
hereunder; and

 

(c)                                  all
rights of redemption, appraisement, valuation, stay, extension or moratorium
now or hereafter in force under any applicable law in order to prevent or delay
the enforcement of this Agreement or the absolute sale of the Collateral or any
portion thereof, and the Debtor, for itself and all persons who may claim under
it, insofar as it or they now or hereafter lawfully may, hereby waives the
benefit of all such laws.

 

Any sale of, or the grant of options to purchase, or
any other realization upon, any Collateral shall operate to divest all right,
title, interest, claim and demand, either at law or in equity, of the Debtor
therein and thereto, and shall be a perpetual bar both at law and in equity
against the Debtor and against any and all Persons claiming or attempting to
claim the Collateral so sold, optioned or realized upon, or any part thereof,
from, through and under the Debtor.

 

11

 

3.3          Application of Proceeds.

 

The Collateral Agent shall apply the proceeds of any
collection or sale of Collateral, including any Collateral consisting of cash,
as follows:

 

FIRST: to the payment of all costs and
expenses incurred by the Collateral Agent in connection with such collection or
sale or otherwise in connection with this Agreement, any other Canadian Loan
Document or any of the Secured Obligations, including all court costs and the
fees and expenses of its agents and legal counsel, the repayment of all
advances made by the Collateral Agent hereunder or under any other Canadian
Loan Document on behalf of any Beneficiary and any other costs or expenses
incurred in connection with the exercise of any right or remedy hereunder or
under any other Canadian Loan Document;

 

SECOND: to the payment in full of the Secured
Obligations (the amounts so applied to be distributed among the Beneficiaries
pro rata in accordance with the amounts of the Secured Obligations owed to them
on the date of any such distribution); and

 

THIRD: to the Debtor, its successors or
assigns, or as a court of competent jurisdiction may otherwise direct.

 

3.4          Remedies Cumulative.

 

Each and every right, power and remedy hereby
specifically given to the Agent, for the benefit of the Beneficiaries, shall be
in addition to every other right, power and remedy specifically given under
this Agreement or under the other Canadian Loan Documents or now or hereafter
existing at law or in equity, or by statute and each and every right, power and
remedy whether specifically herein given or otherwise existing maybe exercised
from time to time or simultaneously and as often and in such order as may be
deemed expedient by the Collateral Agent. All such rights, powers and remedies
shall be cumulative and the exercise or the beginning of exercise of one shall
not be deemed a waiver of the right to exercise any of the others. No delay or
omission of the Collateral Agent in the exercise of any such right, power or
remedy and no renewal or extension of any of the Obligations (as defined in the
Credit Agreement) or the Secured Obligations shall impair any such right, power
or remedy or shall be construed to be a waiver of any default or Event of
Default or an acquiescence therein. In the event that the Collateral Agent
shall bring any suit to enforce any of its rights hereunder and shall be
entitled to judgment, then in such suit the Collateral Agent may recover
reasonable expenses, including fees and out-of-pocket expenses and legal
counsel, and the amounts thereof shall be included in such judgment.

 

3.5          Discontinuance of Proceedings.

 

In case the Collateral Agent shall have instituted any
proceeding to enforce any right, power or remedy under this Agreement by
foreclosure, sale, entry or otherwise, and such proceeding shall have been
discontinued or abandoned for any reason or shall have been determined
adversely to the Collateral Agent, then and in every such case the Debtor, the
Collateral Agent and each holder of any of the obligations shall be restored to
their respective former positions and rights hereunder with 

 

12

 

respect to the Collateral, and all rights, remedies
and powers of the Collateral Agent shall continue as if no such proceeding had
been instituted.

 

3.6          Notice.

 

Except as otherwise provided in this Agreement, the
Debtor agrees that any notice delivered 48 hours prior to any action to be
taken hereunder, including without notice of the time and place of any public
sale or the time after which a private sale or other intended disposition is to
take place, shall conclusively be deemed reasonable for all purposes hereunder.

 

3.7          Agent May Perform.

 

If the Debtor fails to perform any agreement contained
herein or in any contract, the Collateral Agent may itself perform, or cause
the performance of, such agreement, and the expenses of the Agent incurred in
connection therewith shall be payable by the Debtor in accordance with Section 6.5
hereof.

 

ARTICLE 4

INDEMNITY

 

4.1          Indemnity.

 

(a)          The
Debtor will indemnify and hold harmless each Beneficiary and its respective
successors, assigns, directors, officers, employees, attorneys, agents and
Affiliates (hereinafter referred to individually as “Indemnitee”
and collectively as “Indemnitees”)
from and against all losses, claims, damages, expenses or liabilities to which
such Indemnitee may become subject, insofar as such losses, claims, damages,
expenses or liabilities (or actions, suits or proceedings including any inquiry
or investigation or claims in respect thereof) arise out of, in any way relate
to, or result from the transactions contemplated by this Agreement and to
reimburse each Indemnitee, upon its demand, for any reasonable legal or other
expenses (or (but not as well as) the reasonable allocated costs of staff
counsel) incurred in connection with investigating, preparing to defend or
defending any such loss, claim, damage, liability, action or claim; provided,
however, that no Indemnitee shall have the right to be so indemnified
for a violation of law or for its gross negligence or willful misconduct as
finally determined by a court of competent jurisdiction after the expiration of
all appeals and the time to appeal.  If
any action, suit or proceeding arising from any of the foregoing is brought
against any Indemnitee, the Debtor will, if requested by such Indemnitee,
resist and defend such action, suit or proceeding or cause the same to be
resisted and defended by counsel reasonably satisfactory to the Person or
Persons indemnified or intended to be indemnified.  Each Indemnitee shall, unless such Indemnitee
has made the request described in the preceding sentence and such request has
been compiled with, have the right to employ its own counsel (or (but not as
well as) staff counsel) to investigate and control the defense of any matter
covered by such indemnity and the reasonable fees and expenses of such counsel
shall be at the expense of the indemnifying party.  If Debtor shall fail to do any act or 

 

13

 

thing, the failure of which could directly or indirectly cause the
Debtor to breach an obligation or covenant hereunder, the Agent may (but shall
not be obligated to) do the same or cause it to be done or remedy any such
breach, and may expend its funds for such purpose, and will use its best
efforts and give prompt written notice to the Debtor that it proposes to take
such action.  Any and all amounts so
expended by the Collateral Agent shall be repayable to it by the Debtor
promptly upon the Collateral Agent’s demand therefor.

 

(b)         Without
limiting the application of Section 4.1(a), the Debtor agrees to pay, or
reimburse the Collateral Agent for (if the Collateral Agent shall have incurred
fees, costs or expenses, including reasonable fees and expenses of legal
counsel (or (but not as well as) staff counsel fees)) any and all fees, costs
and expenses of whatever kind or nature incurred in connection with the
creation, preservation or protection of the Collateral Agent’s Liens on, and
security interest in, the Collateral, including, without limitation, all fees
and taxes in connection with the recording or filing of instruments and
documents in public offices, payment or discharge of any taxes (excluding
income or similar taxes) or Liens upon or in respect of the Collateral,
premiums for insurance with respect to the Collateral and all other fees, costs
and expenses in connection with protecting, maintaining or preserving the
Collateral and the Collateral Agent’s interest therein, whether through judicial
proceedings or otherwise, or in defending or prosecuting any actions, suits or
proceedings arising out of or relating to the Collateral.

 

(c)          Without
limiting the application of Sections 4.1(a) or 4.1(b), the Debtor agrees
to pay, indemnify and hold each Indemnitee harmless from and against any loss,
costs, damages and expenses which such Indemnitee may suffer, expend or incur
in consequence of or growing out of any misrepresentation by the Debtor in this
Agreement or in any statement or writing contemplated by or made or delivered
pursuant to or in connection with this Agreement.

 

(d)         If
and to the extent that the obligations of Debtor under this Section 4.1
are unenforceable for any reason, the Debtor hereby agrees to make the maximum
contribution to the payment and satisfaction of such obligations which is
permissible under applicable law.

 

(e)          The
obligations of the Debtor contained in this Section 4.1 shall survive the
termination of this Agreement and the discharge of the Debtor’s other
obligations hereunder and the full payment of all the Secured Obligations and
notwithstanding the discharge thereof.

 

4.2          Indemnity Obligation Secured by
Collateral; Survival.

 

Any amounts paid by any Indemnitee as to which such
Indemnitee has the right to reimbursement shall constitute obligations secured
by the Collateral.  The indemnity
obligations of the Debtor contained in this Article 4 shall continue in
full force and effect notwithstanding the full payment of

 

14

 

the Secured Obligations or the Obligations (as defined
in the Credit Agreement), and notwithstanding the discharge thereof.

 

ARTICLE 5

DEFINITIONS

 

5.1          Definitions.

 

The following terms shall have the meanings specified
in this Section unless the context otherwise requires.  Such definitions shall be equally applicable
to the singular and plural forms of the terms defined.

 

“Accounts” means, with respect to the Debtor, any and all right,
title and interest of the Debtor to payment for goods and services sold or
leased, including any such right evidenced by chattel paper, whether due or to
become due, whether or not it has been earned or performed, and whether now or
hereafter acquired or arising in the future, including, without limitation,
accounts receivable from Affiliates of such person.

 

“Affiliate” has the meaning given to it in the Credit Agreement.

 

“Agreement”
has the meaning assigned thereto in the introduction.

 

“Beneficiaries” means, at any time the determination
thereof is to be made, the Tranche C Lenders, the Revolving (Canadian) Lenders,
the Canadian Administrative Agent, each Incremental Lender providing any
Incremental Loans to the Debtor, the Collateral Agent, the Revolving (Canadian)
Facility Facing Agent, each counterparty to any Swap Agreement with a Loan
Party the obligations under which constitute Canadian Obligations, each Lender
or Affiliate of a Lender which is party to any Cash Management Agreements (as
defined in the Credit Agreement) the obligations under which constitute Canadian
Obligations, the Beneficiaries of each indemnification obligation undertaken by
the Debtor, or a Canadian Subsidiary or a subsidiary of a Canadian Subsidiary
under any Canadian Loan Document and any other holder of any Canadian
Obligation.

 

“Canadian Administrative Agent” has the meaning assigned thereto in the
Recitals to this Agreement.

 

“Canadian Loan Document” means a Loan Document to which the
Canadian Loan Parties are party.

 

“Canadian Loan Parties” means SSC Canada and the Canadian
Subsidiaries that are Guarantors.

 

“Collateral”
has the meaning specified in Section 1.1(a) of this Agreement.

 

“Collateral Agent” has the meaning assigned thereto in the
introduction to this Agreement.

 

“Contracts” means, with respect to the Debtor, all rights of the
Debtor under contracts and agreements to which the Debtor is a party or under
which the Debtor has any right, from time to time be amended, restated,
supplemented or otherwise modified, including, without limitation, (a) all

 

15

 

rights of the Debtor to receive moneys due and to
become due to it thereunder or in connection therewith, including, without
limitation, the agreement described in Schedule B hereto, (b) all rights
of the Debtor to damages arising out of, or for, breach or default in respect
thereof and (c) all rights of the Debtor to exercise all remedies
thereunder, in each case to the extent the grant by the Debtor of a security
interest pursuant to this Agreement in its rights under such contract or agreement
is not prohibited without the consent of any other person, or is permitted with
consent if all necessary consents to such grant of a security interest have
been obtained from all such other persons (it being understood that the
foregoing shall not be deemed to obligate the Debtor to obtain such consents),
provided, that the foregoing limitation shall not affect, limit, restrict or
impair the grant by the Debtor of a security interest pursuant to this
Agreement in any Account or any money or other amounts due or to become due
under any such contract or agreement to the extent provided in the PPSA as in
effect on the date hereof.

 

“Copyright License” means any written agreement, now or
hereafter in effect, granting any right to any third party under any Copyright
now or hereafter owned by Debtor or which the Debtor otherwise has the right to
license, or granting any right to the Debtor under any Copyright now or
hereafter owned by any third party, and all rights of the Debtor under any such
agreement.

 

“Copyrights” means all of the following now owned or hereafter
acquired by a Debtor: (a) all copyright rights in any work subject to the
copyright laws of Canada or any other country, whether as author, assignee,
transferee or otherwise, and (b) all registrations and applications for
registration of any such copyright in Canada or any other country, including
registrations, recordings, supplemental registrations and pending applications
for registration in the Canadian Intellectual Property Office or any similar
office or agency in any other country or any political subdivision thereof,
including those listed on Schedule A hereto.

 

“Credit Agreement” has the meaning assigned thereto in the
Recitals to this Agreement.

 

“Debtor” has the meaning assigned thereto in the introduction
to this Agreement and any Canadian Subsidiaries which become parties to a
Security Agreement (Canadian) in accordance with the provisions of the Credit
Agreement.

 

“Documents” means, with respect to the Debtor, all documents or “documents
of title” (as defined in the PPSA) or other instruments, files, records and
ledger sheets covering or relating to any of the Collateral.

 

“Equipment” means, with respect to the Debtor, all “equipment”
(as defined in the PPSA) now owned or hereafter acquired by the Debtor and used
or bought for use primarily in the Debtor’s business including, without
limitation, all tangible personal property (other than Inventory) and all parts
thereof and all additions and accessions thereto and replacements therefor.

 

“Excluded Property” means:

 

1.            The
Program Receivables;

 

16

 

2.           All
personal property (other than Intangibles) owned by SSC Canada, situated on or
at its corrugating medium mill located in Bathurst, New Brunswick (the “Excluded New Brunswick Real Property”) and used in
connection with or arising as a result of the business carried on at the
Excluded New Brunswick Real Property, including all Inventory (wherever
situated) produced at such Excluded New Brunswick Real Property (the “New Brunswick Inventory”);

 

3.           All
personal or movable property (other than intangible or incorporeal property)
owned by SSC Canada, situated on or at its liner board mill in New Richmond
Quebec and its pulp mill located in Portage du Fort, Quebec (the “Excluded Quebec Real Property”) and used in connection with
or arising as a result of the business carried on at the Excluded Quebec Real
Property, including all Inventory (wherever situated) produced at such Excluded
Quebec Real Property (the “Quebec Inventory”
and together with the New Brunswick Inventory, the “Excluded
Inventory”);

 

4.           All
Accounts Receivable of SSC Canada in respect of the sale or alienation of the
Excluded Inventory (including all policies of insurance of every nature
relating to the loss or destruction of such inventory or insuring such Accounts
Receivable);

 

5.           All
Intangibles, chattel paper, or incorporeal property (as understood under the
Civil Code of Quebec), other than Accounts Receivable, including, all Intellectual
Property, owned by SSC Canada and directly relating to the operation of its
business carried out at the Excluded New Brunswick Real Property or the
Excluded Quebec Real Property; provided, that such Intangibles shall not have
any application or value to any other property owned by SSC Canada or an
Affiliate thereof or the business carried on by SSC Canada or an Affiliate
thereof.

 

6.           The
trademark “Pontiac” as registered in Italy under number 789077, in Benelux
under number 430870 and in France under number 1,409,014; and

 

7.           All
identifiable and traceable personal property in any form derived directly or
indirectly from any dealing with the items listed in clauses 2 through 6,
inclusive, of this definition of Excluded Property (“Proceeds”)
or the Proceeds therefrom provided that such Proceeds are reinvested in
property which constitutes Excluded Property.

 

“Fixtures” means, with respect to the Debtor, all fixtures
(including trade fixtures), facilities and equipment, however affixed or
attached to real property or buildings or other structures on real property,
now owned or hereafter acquired by the Debtor.

 

“Indemnitee” has the meaning specified in Section 4.1 of this
Agreement.

 

“Industrial Design License” means any written agreement, now or hereafter
in effect, granting to any third party any right to make or sell any finished
article which incorporates an Industrial Design, now or hereafter owned by the
Debtor or which the Debtor otherwise has the right to license, or granting to
the Debtor any right to make or sell any finished article which incorporates an
Industrial

 

17

 

Design now or hereafter owned by a third party, and
all rights of the Debtor under any such agreement.

 

“Industrial Designs” means a design for a finished article
which has been registered under the Industrial Design Act
(Canada).

 

“Intangibles” means, with respect to the Debtor, all “intangibles”
(as defined in the PPSA on the date hereof including limited partnership or
limited liability company interests) now owned or hereafter acquired by the
Debtor to the extent, in the case of any Intangibles arising under any
contract, limited partnership or limited liability company interest or
agreement, that the grant by the Debtor of a security interest pursuant to this
Agreement in its rights under such contract or agreement is not prohibited
without the consent of any other person, or is permitted with consent if all
necessary consents to such grant of a security interest have been obtained from
all such other persons (it being understood that the foregoing shall not be
deemed to obligate the Debtor to obtain such consents), provided, that the
foregoing limitation shall not affect, limit, restrict or impair the grant by
the Debtor of a security interest pursuant to this Agreement in any Account or
Intangible or any money or other amounts due or to become due under any such
contract or agreement to the extent provided in the PPSA as in effect on the
date hereof.

 

“Intellectual Property” means, with respect to the Debtor, all
intellectual and similar property of the Debtor of every kind and nature now
owned or hereafter acquired by the Debtor, including inventions, Industrial
Designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential
or proprietary technical and business information, know-how, show-how or other
data or information, software and databases and all embodiments or fixations
thereof and related documentation, registrations and franchises, and all
additions, improvements and accessions to, and books and records describing or
used in connection with, any of the foregoing.

 

“Inventory” means, with respect to the Debtor, “inventory” (as
defined in the PPSA), including all goods, merchandise and other personal property,
now owned or hereafter acquired by the Debtor of every kind or description
which are held for sale or lease or are furnished or to be furnished under a
contract of services or are raw materials, work-in-process or materials used or
consumed or are to be used or consumed in the business of the Debtor.

 

“License” means any Patent License, Trademark License,
Copyright License, Industrial Design License or other license or sublicense to
which the Debtor is a party, including those listed on Schedule A hereto
(other than those license agreements in existence on the date hereof and listed
on Schedule A hereto and those license agreements entered into after the
date hereof, which by their terms prohibit assignment or a grant of a security
interest by the Debtor as licensee thereunder).

 

“Money” means a medium of exchange authorized or adopted by
the Parliament of Canada as part of the currency of Canada or by a foreign
government as part of its currency.

 

“Patent License” means any written agreement, now or hereafter
in effect, granting to any third party any right to make, use or sell any
invention on which a Patent, now or hereafter owned by the Debtor or which the
Debtor otherwise has the right to license, is in existence, or granting to the

 

18

 

Debtor any right to make, use or sell any invention on
which a Patent, now or hereafter owned by any third party, is in existence, and
all rights of the Debtor under any such agreement.

 

“Patents” means all of the following now owned or hereafter
acquired by the Debtor: (a) all letters patent of Canada or any other
country, including registrations recordings and pending application in Canadian
Intellectual Property Office or any similar offices in any other country, including
those listed on Schedule A hereto, and (b) all reissues,
continuations, divisions, continuations-in-part, renewals or extensions
thereof, and the inventions disclosed or claimed therein, including the right
to make, use and/or sell the inventions disclosed or claimed therein.

 

“Perfection Certificate” means a certificate substantially in the
form of Annex I hereto, completed and supplemented with the schedules
and attachments contemplated thereby, and duly executed by a Financial Officer,
corporate secretary or legal officer of SSC Canada.

 

“PPSA” means the Personal Property Security
Act as in effect on the date hereof in the Province of Nova Scotia, provided
that if by reason of mandatory provisions of law, the perfection or the effect
of perfection or non-perfection of the security interest in any Collateral or
the availability of any remedy hereunder is governed by the laws in effect on
or after the date hereof in any other jurisdiction, “PPSA” means the applicable
laws in effect in such other jurisdiction for purposes of the provisions hereof
relating to such perfection or effect of perfection or nonperfection or
availability of such remedy.

 

“Proceeds” means all “proceeds” (as defined in the PPSA),
including without limitation (i) any and all proceeds of any insurance,
indemnity, warranty or guarantee payable to the Collateral Agent or to Debtor
from time to time with respect to any of the Collateral, (ii) any and all
payments (in any form whatsoever) made or due and payable to the Debtor from
time to time in connection with the requisition, confiscation, condemnation,
seizure or forfeiture of all or any part of the Collateral by any governmental
authority (or any person acting under colour of governmental authority), (iii) any
and all profits, rentals or receipts, in whatever form, arising from the
collection, sale, lease, exchange, assignment, licensing or other disposition
of, or realization upon, any Collateral and (iv) any and all other amounts
from time to time paid or payable under or in connection with any of the
Collateral.

 

“Securities” means any obligations of an issuer or any shares,
participations or other interests in an issuer or in property or an enterprise
of an issuer that (a) are represented by a certificate representing a
security in bearer or registered form, or the transfer of which may be
registered upon books maintained for that purpose by or on behalf of the
issuer, (b) are one of a class or series or by its terms is divisible into
a class or series of shares, participations, interests or obligations and (c)(i) are,
or are of a type, dealt with or trade on securities exchanges or securities
markets or (ii) are a medium for investment and by their terms expressly
provide that they are a security but shall not include any such obligations,
shares, participations or other interests to the extent that the creation of
the security interest therein is validly prohibited by the terms thereof or of
any agreement relating thereto on the date hereof (and, if set forth therein on
the date hereof, then in any subsequent renewals, extensions or replacements
thereof), and only until such time as such valid prohibition of the creation of
such hypothec or security interest is no longer in effect.

 

19

 

“Trademark License” means any written agreement, now or
hereafter in effect, granting to any third party any right to use any Trademark
now or hereafter owned by the Debtor or which the Debtor otherwise has the
right to license, or granting to the Debtor any right to use any Trademark now
or hereafter owned by any third party, and all rights of the Debtor under any
such agreement.

 

“Trademarks” means all of the following now owned or hereafter
acquired by the debtor: (a) all trademarks, service marks, trade names,
corporate names, company names, business names, fictitious business names,
trade styles, trade dress, logos, other source or business identifiers, designs
and general intangibles of like nature, now existing or hereafter adopted or
acquired, all registrations and recordings thereof, and all registration and
recording applications filed in connection therewith, including registrations
and registration applications in the Canadian Intellectual Property Office or
any similar offices in any other country or any political subdivision thereof,
and all extensions or renewals thereof, including those listed on Schedule A
hereto, (b) all goodwill associated therewith or symbolized thereby and (c) all
other assets, rights and interest that uniquely reflect or embody such
goodwill.

 

Unless otherwise defined herein, all capitalized terms
used as defined terms herein shall have the respective meanings given thereto
in the Credit Agreement Unless otherwise defined herein or in the Credit
Agreement, all terms that are defined in the PPSA as enacted in the relevant
jurisdiction shall have the same meanings herein as given to them in such PPSA.

 

ARTICLE 6

MISCELLANEOUS

 

6.1          No Waiver, Modifications in Writing.

 

No failure or delay on the part of the Collateral
Agent or any Beneficiary in exercising any right, power or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy.  The remedies provided for herein are
cumulative and are not exclusive of any remedies that maybe available to the
Collateral Agent or any Beneficiary at law or in equity or otherwise.  No amendment, modification, supplement,
termination or waiver of or to any provision of this Agreement, nor consent to
any departure by the Debtor or any of its Subsidiaries therefrom, shall be
effective unless the same shall be in writing and signed by or on behalf of the
Debtor and the Required Lenders, or to the extent required by Section 11.08
of the Credit Agreement, with the consent of each of the Lenders.  Any amendment, modification or supplement of
or to any provision of this Agreement, any waiver of any provision of this
Agreement, and any consent to any departure by the Debtor from the terms of any
provision of this Agreement, shall be effective only in the specific instance
and for the specific purpose for which made or given.  Except where notice is specifically required
by this Agreement or any other Canadian Loan Document, no notice to or demand
on the Debtor in any case shall entitle the Debtor to any other or further
notice or demand in similar or other circumstances.  This Agreement, the Credit Agreement and the
other Canadian Loan Documents contain the entire transactions contemplated
hereunder and supersedes all negotiations, representations, warranties,
commitments, offers, contracts and writings prior to the date hereof with
respect to the transactions contemplated hereunder.

 

20

 

6.2          Notices.  etc.

 

Except as otherwise expressly permitted herein,
notices and other communications provided for herein shall be in writing and
shall be delivered by hand or overnight courier service, mailed or sent by fax,
as follows:

 

	
  (a)

  	
   

  	
  If to the Debtor, at:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Smurfit Stone Container Canada Inc.

  
	
   

  	
   

  	
  630 Réné-Ldvesque Boulevard, West, Suite 3000

  
	
   

  	
   

  	
  Montreal, PQ H3B 5C7

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Smurfit Stone Container Corporation

  
	
   

  	
   

  	
  8182 Maryland Avenue

  
	
   

  	
   

  	
  St. Louis, MO 63105

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: 
  Treasurer

  
	
   

  	
   

  	
  Tel.: (314) 746-1255

  
	
   

  	
   

  	
  Telecopier: 
  (314) 746-1281

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Winston & Strawn

  
	
   

  	
   

  	
  35 West Wacker Drive

  
	
   

  	
   

  	
  Chicago, IL 60601

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: 
  Brian S. Hart, Esq.

  
	
   

  	
   

  	
  Tel.: 
  (312)558-5600

  
	
   

  	
   

  	
  Telecopier: 
  (312) 558-5700

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  If to the Collateral Agent:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Deutsche Bank Trust Company Americas

  
	
   

  	
   

  	
  90 Hudson Street, 5th Floor

  
	
   

  	
   

  	
  Jersey City, NJ 07302

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: 
  Helaine Griffin-Williams

  
	
   

  	
   

  	
  Telecopier: (201) 593-2308

  

 

21

 

	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  If to the Canadian Administrative Agent:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Deutsche Bank AG

  
	
   

  	
   

  	
  222 Bay Street, Suite 1100

  
	
   

  	
   

  	
  Toronto, Ontario

  
	
   

  	
   

  	
  Canada, M5K 1E7

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: Karyn Curran

  
	
   

  	
   

  	
  Tel.:  (416)
  682-8005

  
	
   

  	
   

  	
  Telecopier: (416) 682-8444

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  If to any Lender, at its address set forth in the
  Credit Agreement.

  

 

Any party hereto may change its address or fax number
for notices and other communications hereunder by notice to the other parties
hereto.  All notices and other
communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt if
delivered by hand or overnight courier service or sent by fax, or on the date five
Business Days after dispatch by certified or registered mail if mailed, in each
case delivered, sent or mailed (properly addressed) to such party as provided
in this Section 6.2.

 

6.3          Further Assurances.

 

The Debtor agrees to promptly and properly perform
such further acts and things and to execute and deliver to the Collateral Agent
such additional assignments, agreements, powers and instruments, as the
Collateral Agent may in its reasonable judgment require or deem advisable to
carry into effect the purposes of this Agreement or to better assume and
confirm unto the Collateral Agent its rights, powers and remedies hereunder.

 

6.4          Payments.

 

The provisions of Section 2.18 and 11.18 of the
Credit Agreement shall apply to each payment required to be made under this
Agreement as if such provisions expressly referenced each such payment.

 

6.5          Costs, Expenses and Taxes.

 

The Debtor agrees to pay all reasonable costs and
expenses in connection with the negotiation, preparation, reproduction,
execution and delivery of this Agreement, any amendment or modifications of (or
supplements to) this Agreement and any and all other documents furnished
pursuant hereto or thereto or in connection herewith or therewith, including
the reasonable fees and out-of-pocket expenses of Osler, Hoskin &
Harcourt LLP, special Canadian counsel to the Collateral Agent, and any local
counsel retained by the Collateral Agent relative hereto or thereto or (but not
as well as) the reasonable allocated costs of staff counsel, as well as the reasonable
fees and out-of-pocket expenses of counsel or (but not as well as) the
reasonable allocated costs of staff counsel, independent public or chartered
accountants and other outside experts retained by the Collateral Agent in
connection with the administration of this Agreement, and all reasonable costs
and

 

22

 

expenses (including, without limitation, reasonable
fees and expenses of legal counsel or (but not as well as) the reasonable
allocated costs of staff counsel), if any, incurred by any Beneficiary in
connection with the enforcement of this Agreement or any other agreement
furnished pursuant hereto or in connection herewith.  In addition, the Debtor shall pay any and all
stamp, transfer and other similar taxes payable or determined to be payable in
connection with the execution and delivery of this Agreement, and agrees to
save and hold each Beneficiary harmless from and against any and all
liabilities with respect to or resulting from any delay in paying, or omission
to pay, such taxes.

 

6.6                               Execution in Counterparts.

 

This Agreement may be executed in any number of
counterparts and by different parties hereto on separate counterparts, each of
which counterparts, when so executed and delivered, shall be deemed to be an
original and all of which counterparts, taken together, shall constitute but
one and the same Agreement.

 

6.7                               Binding Effect; Assignment.

 

This Agreement shall be binding upon, and inure to the
benefit of, the Debtor and the Collateral Agent and the other Beneficiaries and
their respective successors and assigns; provided, however, that
the Debtor may not assign its rights or obligations hereunder or in connection
herewith or any interest herein (voluntarily, by operation of law or otherwise)
without the prior written consent of the Lenders.

 

6.8                               Consent to Jurisdiction.

 

The Debtor hereby irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of any
court of the Province of Nova Scotia, in any action or proceeding arising out
of or relating to this Agreement, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such Nova Scotia court.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement shall affect any right that any Lender may otherwise have to bring
any action or proceeding relating to this Agreement or the other Loan Documents
against any Loan Party or its properties in the courts of any jurisdiction.

 

6.9                               Governing Law.

 

This agreement shall be governed by, and construed in
accordance with, the laws of the Province of Nova Scotia and the federal laws
of Canada applicable therein except for the perfection and enforcement of
security interests and liens in other jurisdictions, which shall be governed by
the laws of those jurisdictions.

 

23

 

6.10                        Severability of Provisions.

 

Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity of
enforceability of such provision in any other jurisdiction.

 

6.11                        Headings.

 

The Section headings used in this Agreement are
for convenience of reference only and shall not affect the construction of this
Agreement.

 

6.12                        Obligations Absolute.

 

The obligations of the Debtor hereunder shall remain
in full force and effect without regard to, and shall not be impaired by, (a) any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of the Debtor (b)any exercise or non-exercise, or any
waiver of, any right, remedy, power or privilege under or in respect of this
Agreement or any Loan Document except as specifically set forth in a waiver
granted pursuant to the provisions of Section 6.1 hereof; or (c) any
amendment to or modification of any Loan Document or any security for any of
the obligations, whether or not the Debtor shall have notice or knowledge of
any of the foregoing.

 

6.13                        Termination: Release.

 

This Agreement shall continue in effect
(notwithstanding the fact that from time to time there may be no Canadian
Obligations or commitments therefor outstanding) until the earlier of (a) the
time when (i) no Obligations (as defined in the Credit Agreement) or
commitments of or by the Collateral Agent or any Lender which could give rise
to any Obligation (as defined in the Credit Agreement) shall be outstanding,
and (ii) the Collateral Agent shall have received written notice from the
Debtor electing to terminate this Agreement and (b) the time when the
Collateral is required to be released pursuant to Section 11.09 of the
Credit Agreement.  Collateral may be
released in accordance with Section 11.09 of the Credit Agreement.  Upon the termination of this Agreement, the
Agent, at the request and expense of the Debtor, will execute and deliver to
the Debtor the proper instruments (including financing change statements)
acknowledging the termination of this Agreement, and will duly assign, transfer
and deliver to the Debtor (without recourse and without any representation or
warranty) such of the Collateral as may be in possession of the Collateral
Agent and has not theretofore been sold or otherwise applied or released
pursuant to this Agreement.  Prior to the
exercise of its remedies by the Collateral Agent under Article 3 of this
Agreement, Inventory may be sold or disposed of by the Debtor in the ordinary
course of business free and clear of the security interests created hereby and
immaterial portions of the Collateral may, for purposes of administrative
practicality (such as obsolete equipment) or legal requirements, be released by
the Collateral Agent.

 

6.14                        Waiver of Saskatchewan
Laws

 

The Corporation hereby agrees with the Collateral
Agent that:

 

24

 

(a)                                  The Land Contracts (Actions) Act (Saskatchewan) shall have no application
to any action, as defined in The Land Contracts
(Actions) Act, with respect to this Agreement or any mortgage,
charge or other security for the payment of money made, given or created by
this Agreement;

 

(b)                                 The Limitation of Civil Rights
Act
(Saskatchewan) shall have no application to:

 

(i)                                    this Agreement;

 

(ii)                                 any mortgage, charge or other security
for the payment of money made, given or created by this Agreement;

 

(iii)                              any agreement or instrument renewing or extending or
collateral to this Agreement or renewing or extending or collateral to any
mortgage, charge or other security referred to or mentioned in this Agreement;
or

 

(iv)                             the rights, powers or remedies of the
Collateral Agent under this Agreement or under any mortgage, charge or other
security, agreement or instrument referred to or mentioned in this Agreement.

 

6.15                        Conflicts with Credit
Agreement.

 

Notwithstanding anything in this Agreement to the
contrary, in the event of a conflict or inconsistency between this Agreement
and the provisions of the Credit Agreement, the provisions of the Credit
Agreement shall govern.

 

[signature page follows]

 

25

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered by their duly authorized officers as of the date first
above written.

 

	
   

  	
  SMURFIT-STONE CONTAINER CANADA
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY

  
	
   

  	
  AMERICAS, as Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	 

	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

SCHEDULE A

 

TO THE
SECURITY AGREEMENT (CANADIAN)

 

Intellectual
Property

 

Trademarks

 

	
  Trademark

  	
   

  	
  Application
  Number

  	
   

  	
  Registration
  Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHEMCOR

  	
   

  	
  301,214

  	
   

  	
  158,488

  
	
  ECOWRAP

  	
   

  	
  730,490

  	
   

  	
  443,919

  
	
  FEATHERWEIGHT

  	
   

  	
  Abandoned

  	
   

  	
   

  
	
  GRAFXFLÜT DESSIN

  	
   

  	
  856,480

  	
   

  	
  518,251

  
	
  HYDROCOR

  	
   

  	
  323,156

  	
   

  	
  171,951

  
	
  ICE-PAK

  	
   

  	
  300,665

  	
   

  	
  156,627

  
	
  LITE WEIGHT

  	
   

  	
  Abandoned

  	
   

  	
   

  
	
  PRINTERS’ SELECT

  	
   

  	
  856,481

  	
   

  	
  508,325

  
	
  RECALT

  	
   

  	
  1,076,109

  	
   

  	
  565,366

  
	
  SNO-TOP

  	
   

  	
  281,956

  	
   

  	
  138,119

  
	
  SNO-TOP PLUS

  	
   

  	
  808,744

  	
   

  	
  473,599

  
	
  ST. LAURENT

  	
   

  	
   

  	
   

  	
   

  
	
  DESIGN LOGO

  	
   

  	
  878,695

  	
   

  	
  535,710

  
	
  TUKOTE &
  DESIGN

  	
   

  	
  274,193

  	
   

  	
  138,084

  
	
  ECO-FILM

  	
   

  	
   

  	
   

  	
  416,028

  
	
  ECO-SAC

  	
   

  	
   

  	
   

  	
  391,134

  
	
  GRIP-PLY

  	
   

  	
   

  	
   

  	
  374,016

  
	
  COPLY

  	
   

  	
   

  	
   

  	
  229,101

  
	
  BTF

  	
   

  	
   

  	
   

  	
  221,489

  
	
  MILPAC

  	
   

  	
   

  	
   

  	
  124,813

  

 

	
  Address of the
  registered owner:

  	
   

  	
  Smurfit-Stone Container
  Canada Inc./Emballages

  
	
   

  	
   

  	
  Smurfit-Stone Container
  Canada

  
	
   

  	
   

  	
  1250 René-Lévesque
  Blvd. West

  
	
   

  	
   

  	
  20th Floor

  
	
   

  	
   

  	
  Montréal, Québec

  
	
   

  	
   

  	
  H3B 4Y3

  

 

 

List of trademarks - United States of America

 

	
  Trademark

  	
   

  	
  Application Number

  	
   

  	
  Registration Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ST. LAURENT

  	
   

  	
   

  	
   

  	
   

  
	
  DESIGN LOGO

  	
   

  	
  74/590725

  	
   

  	
  1,989,230

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ECOWRAP

  	
   

  	
  74/465118

  	
   

  	
  2,036,325

  
	
  GRAFXFLÜT DESS1N

  	
   

  	
  75/373,513

  	
   

  	
   

  
	
  PRINTERS’ SELECT

  	
   

  	
  75/373,514

  	
   

  	
  2,303,333

  
	
  SNO-TOP PLUS

  	
   

  	
  75097997

  	
   

  	
   

  
	
  ST-LAURENT

  	
   

  	
  74/527136

  	
   

  	
   

  

 

List of trademarks - France

 

	
  Trademark

  	
   

  	
  Application Number

  	
   

  	
  Registration Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CHEMCOR

  	
   

  	
  172,249

  	
   

  	
  1,563,720

  

 

Patents

 

Canada

 

	
  Patent

  	
   

  	
  Registration
  or

  Application Number

  
	
   

  	
   

  	
   

  
	
  Multi-Layer Wrapper
  Construction

  	
   

  	
  CA 2,139,082

  
	
  Method of Making Coated
  or Impregnated Paper or Paperboard

  	
   

  	
  CA 2,256,744

  

 

United
States of America

 

	
   

  	
   

  	
  Registration
  or

  
	
  Patent

  	
   

  	
  Application
  Number

  
	
   

  	
   

  	
   

  
	
  Multi-Layer Wrapper
  Construction (Ecowrap)

  	
   

  	
  5,562,980

  
	
  Method of Making
  Surface Coated or Impregnated Paper or Paperboard

  	
   

  	
  08/660,513

  

 

 

Copyrights

 

NIL

 

Industrial Designs

 

NIL

 

Licenses

 

NIL

 

 

SCHEDULE B

 

TO THE
SECURITY AGREEMENT (CANADIAN)

 

Transfer in
virtue of Section 39 of the Forest Act (Quebec)

 

The assignments and transfers of Contracts referred to
in 1.1(a) of this Agreement includes without limitation the rights into
the following contract:

 

Timber Supply and Forest Management Agreement dated February 13,
1996 between “Le ministre des Ressources naturelles, pour et au nom du
Government du Québec’ and St. Laurent Paperboard Inc., registered pursuant to
the Forest Act (L.R.Q., chap. F-4.1) on February 20, 1996 under number
26396022002.

 

 

ANNEX I TO
THE

SECURITY AGREEMENT (CANADIAN)

 

FORM OF PERFECTION
CERTIFICATE

 

Reference is made to the Credit Agreement dated as of November 1,
2004 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Smurfit-Stone Container
Corporation, a Delaware corporation, Smurfit-Stone Container Enterprises, Inc.,
a Delaware corporation, Smurfit-Stone Container Canada Inc., a corporation
continued under the Companies Act (Nova Scotia), the Lenders party thereto,
JPMorgan Chase Bank, a New York banking corporation as Senior Agent, Deposit
Account Agent, Deposit Funded Facility Agent, Deutsche Bank Trust Company
Americas, a New York banking corporation as Collateral Agent, Swingline Lender
and Revolving Facility Facing Agent and Deutsche Bank AG, an authorized foreign
bank permitted to carry on business in Canada and listed in Schedule III of the
Bank Act (Canada) as Canadian Administrative Agent and as Revolving (Canadian)
Facility Facing Agent. Capitalized terms used but not defined herein have the
meanings assigned in the Credit Agreement or the Security Agreements referred
to therein, as applicable.

 

The undersigned, a duly authorized officer of [Entity Name], a [Jurisdiction]
corporation (the “Company”),
hereby certifies, in such capacity, as follows on behalf of the Company:

 

1.                                       Names.

 

(a)                                  The exact legal name of the Company, as
such name appears in its certificate of incorporation or other organization
document, is as follows:

 

(b)                                 The following is a list of all other
names (including trade names or similar appellations) used by the Company, or
any other business or organization to which the Company became a successor by
amalgamation, merger, consolidation, acquisition, change in form, nature or
jurisdiction of organization or otherwise, now or at any time during the past
five years:

 

2.                                       Current Locations.

 

(a)                                  The chief executive office of the Company
is located at the address set forth below:

 

	
  Mailing
  Address

  	
   

  	
  City/Province

  	
   

  	
  Postal Code

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

(b)                                 The principal place of business of the
Company is located in [Province].

 

(c)                                  The domicile (as such term is used in the
Quebec Civil Code) of the Company is located in [Province].

 

(c)                                  The company has assets located only in
the following provinces

 

 

IN WITNESS WHEREOF, the undersigned has caused this Certificate to be
executed and delivered by its duly authorized officer as of this    
day of           ,        .

 

 

	
   

  	
  [ENTITY NAME]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: ·

  
	
   

  	
   

  	
  Title: ·

  

 

2

 

EXHIBIT K

 

[FORM OF]

NOTICE OF BORROWING(1)

 

Date:                 

 

Deutsche Bank Trust Company Americas,
   as Administrative Agent for the
financial
   institutions party to the Credit
Agreement
   referred to below

90 Hudson Street, 1st Floor

Jersey City, NJ  07302

Fax: (201) 593-2308

 

Attention: 
Deal Administrator

 

Ladies and Gentlemen:

 

The undersigned refers to the Credit
Agreement, dated as of November 1, 2004 (the “Credit Agreement”),
among Smurfit-Stone Container Corporation, Smurfit-Stone Container Enterprises, Inc.,
Smurfit-Stone Container Canada Inc., JPMorgan Chase Bank, Deutsche Bank Trust
Company Americas and Deutsche Bank AG and hereby gives you irrevocable notice
pursuant to Section 2.03 of the Credit Agreement that the
undersigned hereby requests a Borrowing under the Credit Agreement, and in that
connection sets forth below the information relating to such Borrowing (the “Proposed
Borrowing”) as required by Section 2.03 of the Credit Agreement
(capitalized terms used herein and not defined herein have the meaning assigned
to such terms in the Credit Agreement):

 

(i)            The applicable Borrower with
respect to the Proposed Borrowing:                  .

 

(ii)           The Business Day of the
Proposed Borrowing is               ,
        .

 

(1) This Irrevocable
notice must be received by the Administrative Agent not later than 11:00 a.m.
(Standard Time) (i) at least three Business Days in advance of any
Eurodollar Borrowing, (ii) at least one Business Day in advance of any ABR
Term Borrowing or B/A Borrowing and (iii) on the same Business Day of any
ABR Revolving Credit Borrowing, ABR Revolving (Canadian) Credit Borrowing or
Canadian Prime Rate Borrowing.

 

 

(iii)          The aggregate principal
amount and currency of the Proposed Borrowing is $                    (2).

 

(iv)          The Proposed Borrowing is to
consist of a [Revolving Credit Borrowing] [Revolving (Canadian) Credit
Borrowing] [Tranche B Borrowing] [Tranche C Borrowing] [Incremental Term Loan
Borrowing].

 

(v)           The Type of the Proposed
Borrowing is [Eurodollar] [ABR] [B/A] [Canadian Prime Rate].

 

(vi)          In the case of a Eurodollar
Borrowing, the Interest Period with respect thereto is                       .

 

(vii)         In the case of a B/A
Borrowing, the Contract Period and maturity date with respect thereto is                     .

 

(viii)        The account number and
location to which funds are to be disbursed is                                                       
..

 

The undersigned hereby certifies that the
following statements are true on the date hereof, and will be true on the date
of the Proposed Borrowing:

 

(A) the representations and warranties
set forth in Article IV of the Credit Agreement and in the other
Loan Documents are and will be true and correct in all material respects on and
as of the date of the Proposed Borrowing with the same effect as though made on
and as of such date, except to the extent that such representations and
warranties expressly relate to an earlier date; and

 

(B) At the time of and immediately after
the Proposed Borrowing, no Default or Event of Default has occurred and is
continuing.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [BORROWER],

  
	
   

  	
   

  
	
   

  	
  by

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(2) Each Borrowing
shall be in an amount equal to an integral multiple of U.S.$500,000 (or the
Canadian Dollar Equivalent thereof) and, in the case of a Eurodollar Borrowing
shall not be in an amount less than U.S. $1,000,000 or in the case of an ABR
Borrowing, in an aggregate principal amount equal to the remaining available
balance of the applicable Commitments and, in the case of a Revolving
(Canadian) Borrowing comprised of B/A Loans, in integral multiples of
Cdn.$100,000.

 

2

 

EXHIBIT
L

 

[FORM OF] REVOLVING
NOTE

 

	
  [U.S.][Cdn.]$[                 ]

  	
   

  	
  New York, New York

  
	
   

  	
   

  	
  [            ]

  

 

FOR VALUE RECEIVED, the undersigned,
[Smurfit-Stone Container Enterprises, Inc.] [Smurfit-Stone Container
Canada Inc.], [a Delaware corporation] [a corporation continued under the
Companies Act (Nova Scotia)] (the “Borrower”), hereby promises to pay to
the order of [                        ]
(the “Lender”) or its registered assigns, at the office of [Deutsche
Bank Trust Company Americas, as Administrative Agent] [Deutsche Bank AG, as
Canadian Administrative Agent] (such term, and each other capitalized term used
but not defined herein, having the meaning assigned to it in the Credit
Agreement dated as of November 1, 2004, among Smurfit-Stone Container
Corporation, Smurfit-Stone Container Enterprises, Inc., Smurfit-Stone
Container Canada Inc., the Lenders party thereto, JPMorgan Chase Bank, Deutsche
Bank Trust Company Americas and Deutsche Bank AG, as the same may be amended,
restated, supplemented or otherwise modified from time to time (the “Credit
Agreement”)), located at [90 Hudson Street, 1st Floor, Jersey City, New
Jersey 07302] [222 Bay Street, Suites 1100, Toronto, Ontario, Canada M5K 1E7],
on the Revolving Credit Maturity Date, in lawful money of [the United States of
America] [Canada] in immediately available funds, the lesser of (i) the
principal sum of [U.S.][Cdn.]$[            ]
and (ii) the aggregate unpaid principal amount of all Revolving
[(Canadian)] Loans made by the Lender to the Borrower pursuant to the Credit
Agreement, and to pay interest from the date hereof on the principal amount hereof
from time to time outstanding at the rate or rates per annum and payable on the
dates as provided in the Credit Agreement.

 

The Borrower promises to pay interest, on
demand, on any overdue principal and, to the extent permitted by law, overdue
interest from their due dates at a rate or rates provided in the Credit
Agreement.

 

The Borrower hereby waives diligence,
presentment, demand, protest and notice of any kind whatsoever.  The nonexercise by the holder hereof of any
of its rights hereunder in any particular instance shall not constitute a
waiver thereof in that or any subsequent instance.

 

All borrowings evidenced by this Note and all
payments and prepayments of the principal hereof and interest hereon and the
respective dates thereof shall be endorsed by the holder hereof on the schedule
attached hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof, or otherwise recorded by such holder
in its internal records; provided, however, that the failure of
the holder hereof to make such a notation or any error in such notation shall
not affect the obligations of the Borrower under this Note.

 

 

This Note is one of the promissory notes
referred to in the Credit Agreement that, among other things, contains
provisions for the acceleration of the maturity hereof upon the happening of
certain events, for optional and mandatory prepayment of the principal hereof
prior to the maturity hereof and for the amendment or waiver of certain
provisions of the Credit Agreement, all upon the terms and conditions therein
specified.  THIS NOTE SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK,
INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW
BUT EXCLUDING ALL OTHER CHOICE OF LAW AND CONFLICTS OF LAWS RULES THEREOF.

 

 

	
   

  	
  [SMURFIT-STONE CONTAINER

  ENTERPRISES, INC.]

  
	
   

  	
  [SMURFIT-STONE CONTAINER

  CANADA INC.]

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

2

 

LOANS AND PAYMENTS

 

	
  Date

  	
   

  	
  Amount of Loan

  	
   

  	
  Maturity Date

  	
   

  	
  Payments of 

  Principal/Interest

  	
   

  	
  Principal

  Balance of Note

  	
   

  	
  Name of

  Person Making

  the Notation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

EXHIBIT L

 

[FORM OF] TERM NOTE

(TRANCHE [ ](1) LOAN)

 

	
  U.S.$[   ]

  	
   

  	
  New York, New
  York

  
	
   

  	
   

  	
  [             ]

  

 

FOR VALUE RECEIVED, the
undersigned, [Smurfit-Stone Container Enterprises, Inc.] [Smurfit-Stone
Container Canada Inc.], [a Delaware corporation] [a corporation continued under
the Companies Act (Nova Scotia)] (the “Borrower”), hereby promises to pay to
the order of [                    ]
(the “Lender”) or its registered assigns, at the offices of [Deutsche Bank
Trust Company Americas, as Administrative Agent] [Deutsche Bank AG, as Canadian
Administrative Agent] (such term, and each other capitalized term used but not
defined herein, having the meaning assigned to it in the Credit Agreement dated
as of November 1, 2004, among Smurfit-Stone Container Corporation,
Smurfit-Stone Container Enterprises, Inc., Smurfit-Stone Container Canada
Inc., the Lenders party thereto, JPMorgan Chase Bank, Deutsche Bank Trust
Company Americas and Deutsche Bank AG, as the same may be amended, restated,
supplemented or otherwise modified from time to time (the “Credit Agreement”)),
located at [90 Hudson Street, 1St Floor, Jersey City, New Jersey 07302] [222
Bay Street, Suite 1100, Toronto, Ontario, Canada M5K 1E7], on the Term
Loan Maturity Date, in lawful money of the United States of America in immediately
available funds, the lesser of (i) the principal sum of U.S.$[ ] and (ii) the
aggregate unpaid principal amount of all Tranche [ ](2) Loans made to the
Borrower by the Lender pursuant to the Credit Agreement, and to pay interest
from the date hereof on the principal amount hereof from time to time
outstanding, at the rate or rates per annum and payable on the dates provided
in the Credit Agreement.

 

The Borrower promises to pay interest, on demand, on
any overdue principal and, to the extent permitted by law, overdue interest
from their due dates at the rate or rates provided in the Credit Agreement.

 

The Borrower hereby waives diligence, presentment,
demand, protest and notice of any kind whatsoever.  The nonexercise by the holder hereof of any of
its rights hereunder in any particular instance shall not constitute a waiver
thereof in that or any subsequent instance.

 

All borrowings evidenced by this Note and all
payments and prepayments of the principal hereof and interest hereon and the
respective dates thereof shall be endorsed by the holder hereof on the schedule
attached hereto and made a part hereof or on a continuation thereof which shall
be attached hereto and made a part hereof, or

 

(1) Insert either “B” or “C”, as the case may be.

 

(2) Insert either “B” or “C”, as the case may
be.

 

 

otherwise recorded by such holder in its internal records; provided,
however, that the failure of the holder hereof to make such a notation or any
error in such notation shall not affect the obligations of the Borrower under
this Note.

 

This Note is one of the promissory notes referred to
in the Credit Agreement, that, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
optional and mandatory prepayment of the principal hereof prior to the maturity
hereof and for the amendment or waiver of certain provisions of the Credit
Agreement, all upon the terms and conditions therein specified.  THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW BUT EXCLUDING ALL
OTHER CHOICE OF LAW AND CONFLICTS OF LAWS RULES THEREOF.

 

 

	
   

  	
  [SMURFIT-STONE CONTAINER

  ENTERPRISES, INC.] 

  
	
   

  	
  [SMURFIT-STONE CONTAINER 

  
	
   

  	
  CANADA INC.]

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

2

 

LOANS AND PAYMENTS

 

	
  Date

  	
   

  	
  Amount of Loan

  	
   

  	
  Maturity Date

  	
   

  	
  Payments of

  Principal/Interest

  	
   

  	
  Principal

  Balance of Note

  	
   

  	
  Name of 

  Person Making

  the Notation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

EXHIBIT M

 

[FORM OF]

 

NOTICE OF
CONVERSION OR CONTINUATION(1)

 

 

Date:                  

 

Deutsche Bank Trust Company Americas,
   as Administrative Agent for the
financial
   institutions party to the Credit
Agreement
   referred to below

90 Hudson Street, 1st Floor

Jersey City, NJ  07302

Fax:  (201) 593-2308

 

Attention: 
Deal Administrator

 

Ladies and Gentlemen:

 

Reference is made to the Credit Agreement
dated as of November 1, 2004 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), among
Smurfit-Stone Container Corporation, Smurfit-Stone Container Enterprises, Inc.,
Smurfit-Stone Container Canada Inc., JPMorgan Chase Bank, Deutsche Bank Trust
Company Americas and Deutsche Bank. 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings set forth in the Credit Agreement.  The undersigned hereby gives notice pursuant
to Section 2.10 of the Credit Agreement that it (a) elects to
convert Eurodollar Borrowings into ABR Borrowings, (b) elects to convert
B/A Borrowings into Canadian Prime Rate Borrowings, (c) elects to convert
ABR Borrowings into Eurodollar Borrowings, (d) elects to continue
Eurodollar Borrowings for an additional Interest Period, (e) elects to
convert the Interest Period with respect to Eurodollar Borrowings into another
permissible Interest Period, (f) elects to 

 

(1) This notice must be
received by the Administrative Agent not later than 11:00 a.m. (Standard
Time) (i) at least three Business Days in advance of the date of
conversion or continuation, if the Loans are to be converted into or continued
as Eurodollar Borrowings or to convert the Interest Period with regard to
Eurodollar Borrowings into another permissible Interest Period, (ii) on
the same Business Day, if the Loans are to be converted into ABR Borrowings or
Canadian Prime Rate Borrowings and (iii) at least one Business Day prior
to the continuation or conversion, if the Loans are to be converted into or
continued as B/A Borrowings. 

 

 

convert Canadian Prime Rate Borrowings into
B/A Borrowings or (g) elects to continue B/A Borrowings for an additional
Contract Period, and in that connection sets forth below the terms on which
such conversion or continuation is requested to be made:

 

1.                                       The applicable Borrower with
respect to such Loan:                        .

 

2.                                       Date of conversion or
continuation (which date is a Business Day and (i) in the case of a
conversion from or continuation of Eurodollar Borrowings, which date is the
last day of the Interest Period therefor or subject to amounts due under Section 2.15
or (ii) in the case of a B/A Borrowing, is the last day of the Contract
Period therefor):

 

3.                                       Aggregate amount and class
of Eurodollar Borrowings, ABR Borrowings, B/A Borrowings or Canadian Prime Rate
Borrowings to be converted or continued(2):           

 

4.                                       Nature of the proposed
conversion or continuation:

 

5.                                       Interest Period (if the
Loans are to be converted into or continued as Eurodollar Borrowings(3)) or
Contract Period (if the Loans are to be converted to or continued as B/A
Borrowings):(4)    

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [BORROWER],

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(2) If less than all
the outstanding principal amount of any Borrowing shall be converted or
continued, the aggregate principal amount of such Borrowing converted or
continued shall be in an integral multiple of US$1,000,000 or Cdn.$1,000,000,
as the case may be, and not less than US$10,000,000 or Cdn.$10,000,000.

 

(3) Which
shall be subject to the definition of “Interest Period” set forth in the Credit
Agreement.

 

(4) Which
shall be subject to the definition of “Contract Period” set forth in the Credit
Agreement.

 

2

 

EXHIBIT N-1

 

November 1,
2004

 

JPMorgan
Chase Bank,
   as Senior Agent, Deposit Account Agent
   and Deposit Funded Facility Facing
Agent

270 Park Avenue

New York, NY 10017

 

Deutsche
Bank Trust Company Americas,
   as Senior Agent, Administrative Agent,
Collateral Agent,
   Swingline Lender and Revolving Facility
Facing Agent

222 S. Riverside Plaza

Chicago, IL 60606

 

Deutsche
Bank AG,
   as Canadian Administrative Agent and
   Revolving (Canadian) Facility Facing
Agent

222 Bay Street, Suite 1100

Toronto, Ontario, Canada M5K 1E7

 

The
Lenders party to the Credit Agreement referred to below

 

Ladies and Gentlemen:

 

We have acted as special counsel to Smurfit-Stone
Container Corporation, a Delaware corporation (“SSCC”), Smurfit-Stone
Container Enterprises, Inc., a Delaware corporation (the “Borrower”),
Smurfit-Stone Container Canada Inc., a corporation continued under the
Companies Act (Nova Scotia) (“SSC Canada”), and JSC Capital LLC, a
Delaware limited liability company (“JSC Capital”), in connection with
the execution and delivery of the Credit Agreement dated as of the date hereof
(the “Credit Agreement”) by and among SSCC, the Borrower, SSC Canada,
JPMorgan Chase Bank, a New York banking corporation, as Senior Agent,
Deposit Account Agent and Deposit Funded Facility Facing Agent, Deutsche Bank
Trust Company Americas, a New York banking corporation, as Senior Agent,
Administrative Agent, Collateral Agent, Swingline Lender and Revolving Facility
Facing Agent, Deutsche Bank AG, as Canadian Administrative Agent and Revolving
(Canadian) Facility Facing Agent, and the financial institutions party thereto
(the “Lenders”).  Capitalized
terms used herein, but not otherwise defined herein, shall have the meanings
ascribed to such terms in the Credit Agreement. 
SSCC, the Borrower and JSC Capital are individually referred to herein
as a” Loan 

 

 

Party” and collectively as the “Loan Parties”.  This opinion letter is delivered to you at
our clients’ request pursuant to Section 5.02(a) of the Credit
Agreement.

 

In rendering the opinions set forth herein, we have
examined:

 

(i)            the Credit Agreement;

 

(ii)           the Guarantee and Collateral Agreement
(U.S.) dated as of the date hereof (the “Collateral Agreement”) by and
among the Loan Parties and the Collateral Agent;

 

(iii)          each
of the mortgages and deeds of trust dated as of the date hereof and executed
and delivered by the Borrower in favor of the Collateral Agent (the “Mortgages”);

 

(iv)          the Patent Security Agreement (U.S.)
dated as of the date hereof by and among SSCC, SSCE, JSC Capital and the
Collateral Agent;

 

(v)           the Trademark Security Agreement (U.S.)
dated as of the date hereof by and among SSCC, SSCE, JSC Capital and the
Collateral Agent;

 

(vi)          the Copyright Security Agreement (U.S.)
dated as of the date hereof by and among SSCC, SSCE, JSC Capital and the
Collateral Agent;

 

(vii)         unfiled
copies of the financing statements (the “Financing Statements”) under
the Delaware Code (as hereinafter defined), naming each Loan Party as debtor
and the Collateral Agent as secured party, which Financing Statements we
understand will be filed for the Loan Parties in the Office of the Secretary of
State of Delaware (the “Filing Office”);

 

(the items identified in clauses (i) through (vi) are
collectively hereinafter referred to as the “Transaction Documents”))
and such other agreements, instruments and documents, and such questions of law
as we have deemed necessary or appropriate to enable us to render the opinions
expressed below.  Additionally, we have
examined originals or copies, certified to our satisfaction, of such
certificates of public officials and officers and representatives of the Loan
Parties and we have made such inquiries of officers and representatives of the
Loan Parties as we have deemed relevant or necessary, as the basis for the
opinions set forth herein.

 

In rendering the opinions expressed below, we have,
with your consent, assumed the legal capacity of all natural persons executing
documents, that the signatures of persons signing all documents in connection
with which this opinion letter is rendered are genuine, all documents submitted
to us as originals or duplicate originals are authentic and all documents
submitted to us as copies, whether certified or not, conform to authentic
original documents.  In giving the
opinions expressed below, we have assumed with your permission and without
independent investigation or verification of any kind the correctness of (i) the
opinions set forth in the separate opinions of Craig A. Hunt, Esq., Vice
President, Secretary and General Counsel of the Loan Parties, with respect to
the Loan Parties, and (ii) the opinions set forth in the separate opinion
of Stewart McKelvey Sterling Scales with respect to SSC Canada, in each case
dated the date hereof and delivered to you pursuant to Section 5.02(a) of
the Credit Agreement, our

 

2

 

opinions being subject to the assumptions,
qualifications and limitations set forth in such opinions.  Additionally, we have, with your consent,
assumed and relied upon, the following:

 

(a)           the accuracy and completeness of all
certificates and other statements, documents, records, financial statements and
papers reviewed by us, and the accuracy and completeness of all
representations, warranties, schedules and exhibits contained in the
Transaction Documents, in each case with respect to the factual matters set
forth therein;

 

(b)           all parties to the documents reviewed by
us are duly organized, validly existing and in good standing under the laws of
their respective jurisdictions of incorporation or formation and under the laws
of all jurisdictions where they are conducting their businesses or otherwise
required to be so qualified, and have full power and authority to execute,
deliver and perform under such documents and all such documents have been duly
authorized, executed and delivered by such parties;

 

(c)           neither the Lenders, the Agents nor any
of their representatives have any knowledge (actual or constructive) of any
adverse claim, lien, security interest, claim, encumbrance, interest or other
condition of title affecting any of the Collateral, except for Liens described
in Schedule 7.02(a)(iv) to the Credit Agreement;

 

(d)           all items of Collateral for which
possession must be taken by a secured party in order to perfect its security
interest under §9-312 of the Uniform Commercial Code of New York (the “Code”)
are in the possession or constructive possession of the Collateral Agent and
not in the possession of SSCC or any of its Subsidiaries, affiliates or agents
or any other person acting on behalf of SSCC or the Subsidiaries;

 

(e)           each of Loan Parties has acquired good
and sufficient title to each existing item of Collateral existing on the date
hereof and has, or has the power to transfer, “rights” in and to such Collateral
within the meaning of section 9-203 of the Code consistent with and sufficient
for purposes of the Transaction Documents, and the same will be true of each
item of Collateral arising after the date hereof;

 

(f)            the proceeds of the Loans have been disbursed
and each Transaction Document constitutes the valid and binding obligation of
each party thereto (other than the Loan Parties and SSC Canada) enforceable
against such party in accordance with its terms;

 

(g)           because a claimant bears the burden of
proof required to support its claims, the Agents and the Lenders will undertake
the effort and expense necessary to fully present their claims in the
prosecution of any right or remedy accorded the Agents or the Lenders under the
Transaction Documents;

 

(h)           the Collateral actually exists and the
description of the Collateral in the Collateral Agreement reasonably describes
the property intended to be described as Collateral; and

 

(i)            to the extent our opinion set forth in
paragraph 7 below relates to securities purportedly represented by a
certificate and issued by an issuer not organized under the laws of

 

3

 

one of the States of the United States, such
securities are “certificated securities” within the meaning of Section 8-102(4) of
the Code. 

 

Whenever our opinion with respect to the existence or
absence of facts is indicated to be based on our knowledge or awareness, we are
referring to the actual present knowledge of the particular Winston &
Strawn LLP attorneys who have represented the Loan Parties during the course of
our limited representation of the Loan Parties in connection with the
Transaction Documents.  Except as
expressly set forth herein, we have not undertaken any independent
investigation, examination or inquiry to determine the existence or absence of
any facts (and have not caused the review of any court file or indices) and no
inference as to our knowledge concerning any facts should be drawn as a result
of the limited representation undertaken by us.

 

In addition, we make the following disclosures and
comments concerning our opinions in paragraph 6 below addressing perfection of
certain security interests: we note that the certificate of incorporation of
each of SSCC and the Borrower indicates that each of SSCC and the Borrower is a
Delaware corporation and the certificate of formation of JSC Capital indicates
that JSC Capital is a Delaware limited liability company, and thus each Loan
Party is a “registered organization” within the meaning of the Code, located
(for purposes of Section 9-307 and 9-301 of the Code) in Delaware.  Under Section 9-301 of the Code (i.e.,
as enacted in New York, the law of which is the contractually chosen
substantive law governing the Collateral Agreement), perfection of
nonpossessory security interests in the Collateral granted by the Loan Parties
would accordingly be governed by Delaware law. 
To the extent that Delaware law applies to such matters (under the
Code), with your consent, in rendering the opinions set forth in paragraph 6
below, we have relied solely on our review of Article 9 of the Uniform
Commercial Code as enacted in Delaware and set forth in the CCH Secured
Transactions Guide available to us and updated through August 10, 2004
(the “Delaware Code”), without any investigation of legal decisions or
other statutory provisions in effect in Delaware that may affect the perfection
of security interests under Delaware law.

 

Based upon the foregoing and subject to the
qualifications, limitations and comments stated herein, we are of the opinion
that:

 

1.             Each of the Transaction Documents (other
than the Mortgages) constitutes the legal, valid and binding obligation of each
Loan Party that is a party thereto enforceable against such Loan Party in
accordance with its terms.  The Credit
Agreement constitutes the legal, valid and binding obligation of SSC Canada
enforceable against SSC Canada in accordance with its terms.

 

2.             Assuming the proceeds of the loans are
used solely for the purposes set forth in the Credit Agreement, each Loan Party’s
and SSC Canada’s execution and delivery of the Transaction Documents to which
it is a party and its performance of its obligations under such Transaction
Documents will not constitute a violation by such Loan Party or SSC Canada of
any applicable provision of any existing State of New York or United
States federal statutory law or governmental regulation covered by this letter,
or violate any existing order, writ, injunction or

 

4

 

decree of any court or governmental instrumentality
applicable to such Loan Party or SSC Canada of which we have knowledge.

 

3.             No Loan Party is presently required to
obtain any consent, approval, authorization or order of any State of
New York or United States federal court or governmental agency in
connection with the execution, delivery and performance by the Loan Parties of
any Transaction Document, except for: (a) those obtained or made on or
prior to the date hereof; (b) any actions or filings to perfect the liens
and security interests granted under the Transaction Documents; (c) actions
or filings required in connection with ordinary course conduct by the Loan
Parties of their respective businesses and ownership or operation by the Loan
Parties of their respective assets and (d) actions and filings required
under the Securities Act of 1933, as amended, the Securities Exchange Act of
1934, as amended, any state “blue sky” law or related regulation and the Trust
Indenture Act of 1939, as amended (as to which matters we express no opinion).

 

4.             None of the Loan Parties is an “investment
company” registered or required to be registered under the Investment Company
Act of 1940, as amended, or, to our knowledge, controlled by such a company.

 

5.             None of the Loan Parties is a “holding
company” or a “subsidiary company” of a “holding company” or an “affiliate” of
a “holding company” within the meaning of the Public Utility Holding Company
Act of 1935, as amended.

 

6.             The provisions of the Collateral Agreement
are sufficient to create in the Collateral Agent’s favor as security for the
payment of the Obligations (as defined therein) a security interest in all
right, title and interest of the respective Loan Party, as Debtor, in those
items and types of Collateral described therein in which a security interest
may be created under Article 9 of the Code (the “Article 9
Collateral”).  The description of the
Article 9 Collateral set forth in the Financing Statements is sufficient
to perfect a security interest in the items and types of Collateral in which a
security interest may be perfected by the filing of a financing statement under
the Delaware Code.  Assuming that the
Financing Statements have been properly filed in the Filing Office, the
Collateral Agent’s security interest in the Article 9 Collateral has been
perfected, to the extent a security interest in that portion of the Article 9
Collateral may be perfected under the Delaware Code by the filing of the
Financing Statements.

 

7.             Assuming that the Collateral Agent has
taken and is retaining possession of the stock certificates evidencing the
shares of stock issued by the Borrower and SSC Canada, as such shares of
capital stock are described in Schedule I to the Collateral Agreement
(collectively, the “Pledged Stock”), in the State of New York in
registered form accompanied by undated stock powers with respect thereto duly
endorsed in blank by an effective endorsement, and the Agents and Lenders have
taken such Pledged Stock in good faith without notice (actual or constructive)
of any adverse claim within the meaning of the Code, there has been created
under the Collateral Agreement, and there has been granted to the Collateral
Agent a perfected security interest in the Pledged Stock to the extent a security
interest may be perfected by possession thereof under the Code.

 

5

 

8.             To our knowledge, no legal or
governmental proceedings are pending or overtly threatened to which any Loan
Party is a party or to which its properties or assets is subject that
challenges the validity or enforceability of the Transaction Documents.

 

The opinions as expressed herein are subject to the
following qualifications, limitations and comments (and where such
qualification, limitation or comment makes a reference to the Code and relates
to our opinions set forth above in paragraphs 6 and 7 as to perfection such
reference shall be deemed a reference to the Delaware Code or the Code as and
to the extent relevant):

 

(a)           the enforceability of the
Transaction Documents and the obligations of the Loan Parties thereunder and
the availability of certain rights and remedial provisions provided for in the
Transaction Documents are subject to the effect of bankruptcy, fraudulent
conveyance or transfer, insolvency, reorganization, arrangement, liquidation,
conservatorship, and moratorium laws and are subject to limitations imposed by
other laws and judicial decisions relating to or affecting the rights of
creditors or secured creditors generally, and general principles of equity
(regardless of whether enforcement is considered in proceedings at law or in
equity) upon the availability of injunctive relief or other equitable remedies,
including, without limitation, where (i) the breach of such covenants or
provisions imposes restrictions or burdens upon a debtor and it cannot be
demonstrated that the enforcement of such remedies, restrictions or burdens is
reasonably necessary for the protection of a creditor; (ii) a creditor’s
enforcement of such remedies, covenants or provisions under the circumstances,
or the manner of such enforcement, would violate such creditor’s implied
covenant of good faith and fair dealing, or would be commercially unreasonable;
or (iii) a court having jurisdiction finds that such remedies, covenants
or provisions were, at the time made, or are in application, unconscionable as
a matter of law or contrary to public policy;

 

(b)           as to our opinions set forth
in paragraph 1 hereof, we express no opinion as to the enforceability of
cumulative remedies to the extent such cumulative remedies purport to or would
have the effect of compensating the party entitled to the benefits thereof in
amounts in excess of the actual loss suffered by such party;

 

(c)           except as set forth in
paragraph 7 above, we express no opinion as to any Collateral as to which the
creation and perfection of security interests therein are not governed solely
by Article 9 of the Code or any Collateral consisting of goods that are or
may become fixtures on any premises, nor do we express any opinion with respect
to the creation, perfection or enforceability of security interests in property
in which it is illegal or violative of governmental rules or regulations
to grant a security interest, or “general intangibles” (as defined in the Code)
which terminate or become terminable (pursuant to the terms of an agreement) if
a security interest is granted therein, property subject to negative pledge
clauses of which any Agent or any Lender is aware (except, in the case of any
of the foregoing, to the extent that such illegality, violation or relevant
contract term is rendered ineffective by Section 9-406 or 9-408 of the
Code), or any security interest in any “accounts,” “chattel paper,” “documents,”
“instruments” or “general intangibles” (as defined in the Code) with respect to
which the account debtor or obligor is the United States of America, any state,
county, city, municipality or other governmental body, or any department,
agency or instrumentality thereof, unless the same has

 

6

 

been assigned to the
Collateral Agent pursuant to and in accordance with the Assignment of Claims
Act of 1940, as amended, or any similar law or regulation relating to the
assignment or pledge thereof;

 

(d)           we express no opinion as to
the perfection of a security interest in any Collateral consisting of “proceeds”
(as such term is defined in the Code) to the extent such perfection is limited
as set forth in Section 9-315 of the Code and under certain circumstances
described in Sections 9-320 and 9-330 of the Code, purchasers of Collateral may
take the same free of a perfected security interest;

 

(e)           except as provided in
paragraphs 6 and 7 above, we express no opinion as to the perfection of a
security interest in any Collateral;

 

(f)            we have not made nor
undertaken to make any investigation of the state of title to the Collateral or
the location thereof and we express no opinion with respect to the existence of
title to such Collateral, the location thereof or to the priority of the liens,
security interests or pledges granted or purported to be granted by the
Transaction Documents;

 

(g)           any purported assignment of
any agreement or any governmental approval, license or permit may be subject to
restrictions upon assignment or transfer which, although not necessarily
applicable to assignments intended as security, may be required to be satisfied
before the Collateral Agent will be treated as an assignee (other than a
collateral assignee) thereof, except to the extent that consents to or
approvals of such assignment have been obtained from the appropriate
governmental body or third party;

 

(h)           the rights of debtors,
guarantors and other secured parties to receive notices under Sections 9-610,
9-611, 9-612, 9-613, 9-614, 9-620, 9-621, and 9-624 of the Code may not be
waived prior to default and the failure to comply with such notice requirements
may bar or limit the recovery of any deficiency remaining after the retention
or sale of repossessed collateral and further, we express no opinion as to the
right of any secured party to enforce any of its rights without notice to the
Loan Parties and without judicial hearing or without bond, nor do we express
any opinion as to whether the periods of notice set forth in the Transaction
Documents are enforceable;

 

(i)            certain provisions of the
Transaction Documents regarding the application of proceeds realized from the
sale of Collateral do not make reference (although they do not have to in order
to enable the Collateral Agent to exercise the rights and remedies of a secured
party under the Code) to the Collateral Agent’s obligations to satisfy
indebtedness due to the holders of subordinate security interests in such
collateral under certain conditions under Section 9-615(a)(3) of the
Code or to account to the Loan Parties for any surplus proceeds;

 

(j)            notwithstanding certain
language of the Transaction Documents, the Agents and the Lenders may be
limited to recovering only reasonable expenses with respect to the retaking,
holding, preparing for sale or lease, selling, leasing and the like of
Collateral and reasonable attorneys’ fees and legal expenses and only
reasonable compensation for finding losses, increased costs or yield
protection;

 

7

 

(k)           the duties to exercise
reasonable care in the custody and preservation of Collateral in a secured
party’s possession and to deal with and to dispose of Collateral in a
commercially reasonable manner as required by the Code or other applicable law
may not be disclaimed by agreement, modified, waived or released prior to a
default;

 

(l)            provisions in the Transaction
Documents deemed to impose the payment of interest on interest may be
unenforceable, void or voidable under applicable law;

 

(m)          any rights of a secured party
to foreclose its liens or enforce its remedies against the Collateral must be
enforced pursuant to the provisions of the Code and other applicable federal,
state or local laws;

 

(n)           we express no opinion as to
the validity, binding effect or enforceability of any indemnification
provisions of the Transaction Documents;

 

(o)           requirements in the
Transaction Documents specifying that provisions thereof may only be waived in
writing may not be valid, binding or enforceable to the extent that an oral
agreement or an implied agreement by trade practice or course of conduct has
been created modifying any provision of such documents;

 

(p)           we express no opinion with
respect to the validity, binding effect or enforceability of any provision of
the Transaction Documents which purports to authorize any Person to sign or
file documents without the signature of the Loan Parties;

 

(q)           we express no opinion with
respect to the validity, binding effect or enforceability of any purported
waiver, release or disclaimer under any of the Transaction Documents relating
to (i) statutory or equitable rights and defenses of the Loan Parties
which are not subject to waiver, release or disclaimer, or (ii) rights or
claims of, or duties owing to, the Loan Parties (including, without limitation,
any waiver, release or disclaimer of any provision of the Code) to the extent
limited by Sections 1-102(3), 9-207 and 9-602 of the Code or other provisions
of applicable law, or to the extent such rights, claims and duties otherwise
exist as a matter of law except to the extent the Loan Parties have effectively
so waived, released or disclaimed such rights, claims or duties in accordance
with Section 9-602 of the Code or other applicable law;

 

(r)            we express no opinion as to
any Agent’s or any Lender’s ability to use “self-help” remedies to repossess
the Collateral if a breach of the peace were to occur;

 

(s)           we express no opinion as to
the severability of any provision of any of the Transaction Documents;

 

(t)            certain other rights,
remedies and waivers contained in the Transaction Documents may be rendered
ineffective, or limited by, applicable laws, rules, regulations, constitutional
requirements or judicial decisions governing such provisions, but such laws, rules,
regulations, constitutional limitations and judicial decisions do not, in our
opinion (subject to the other comments and qualifications set forth in this
opinion letter), make the remedies afforded by

 

8

 

the Transaction Documents
inadequate for the practical realization of the principal benefits intended to
be provided, although they may result in a delay thereof (and we express no
opinion with respect to the economic consequences of any such delay);

 

(u)           we express no opinion with
respect to the applicability or effect of federal or state anti-trust, unfair
competition, tax, pension and employee benefit, environmental, land use and
subdivision, racketeering (e.g., RICO), health and safety (e.g., OSHA), labor,
(except to the extent set forth in paragraphs 4 and 5 above) securities and “blue
sky” laws and regulations;

 

(v)           we express no opinion with
respect to the applicability or effect of the statutes and ordinances, the
administrative decisions and the rules and regulations of counties, towns,
municipalities and special political subdivisions and judicial decisions to the
extent that they deal with any of the foregoing;

 

(w)          we express no opinion with
respect to the validity, binding effect or enforceability of any provision of
the Transaction Documents purporting to establish evidentiary standards or a
consent to jurisdiction and venue or waiving service of process or demand or
notice and hearing or constitutional rights (including a jury trial) or purporting
to eliminate any obligation to marshall assets;

 

(x)            we express no opinion with
respect to any provisions of the Transaction Documents purporting to appoint
any Person as attorney-in-fact or agent for the Loan Parties;

 

(y)           we express no opinion with
respect to any goods which are accessions to, or commingled with, other goods
to the extent that the security interest is limited by Sections 9-335 or 9-336
of the Code; and

 

(z)            we express no opinion as to
the effect of the legal or regulatory status or the nature of the business of
any Agent or any Lender on our opinions.

 

The opinions expressed herein are based upon and are
limited to (i) the laws of the State of New York, (ii) solely
with respect to the second and third sentences of our opinion set forth in
paragraph 6 above, and subject to the limitations set forth herein, the
Delaware Code and (iii) the laws of the United States of America, and we
express no opinion with respect to the laws of any other state, jurisdiction or
political subdivision.  The opinions
expressed herein based on the laws of the State of New York and the United
States of America are limited to the laws generally applicable in transactions
of the type covered by the Transaction Documents.

 

Our opinions set forth in this letter are based upon
the facts in existence and laws in effect on the date hereof and we expressly
disclaim any obligation to update our opinions herein, regardless of whether
changes in such facts or laws come to our attention after the delivery hereof.

 

This opinion letter is solely for the benefit of the
addressees hereof in connection with the execution and delivery of the Credit
Agreement.  No attorney-client
relationship exists or has existed by reason of our preparation, execution and
delivery of this opinion letter to any

 

9

 

addressee hereof or other person or entity except for
the Loan Parties and SSC Canada.  In
permitting reliance hereon by any person or entity other than the Loan Parties
and SSC Canada, we are not acting as counsel for such other person or entity
and have not assumed and are not assuming any responsibility to advise such
other person or entity with respect to the adequacy of 

 

10

 

this opinion letter for its purposes.  This opinion letter may not be relied upon in
any manner by any other person and may not be disclosed, quoted, filed with a
governmental agency or otherwise referred to without our prior written consent;
provided that any Person that subsequently becomes a Lender in
accordance with Section 11.04(b) of the Credit Agreement may
rely on this opinion letter as of the date of this opinion letter as if it were
addressed to such Person and delivered on the date hereof.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Winston &
  Strawn LLP

  

 

 

Exhibit N-2

 

November 1,
2004

 

JPMorgan
Chase Bank,
   as Senior Agent, Deposit Account Agent
   and Deposit Funded Facility Facing
Agent

270 Park Avenue

New York, NY 10017

 

Deutsche
Bank Trust Company Americas,
   as Senior Agent, Administrative Agent,
Collateral Agent,
   Swingline Lender and Revolving Facility
Facing Agent

222 S. Riverside Plaza

Chicago, IL 60606

 

Deutsche
Bank AG,
   as Canadian Administrative Agent and
   Revolving (Canadian) Facility Facing
Agent

222 Bay Street, Suite 1100

Toronto, Ontario, Canada M5K 1E7

 

The
Lenders party to the Credit Agreement referred to below

 

Ladies and Gentlemen:

 

I am general counsel to Smurfit-Stone Container
Corporation, a Delaware corporation (“SSCC”), Smurfit-Stone Container
Enterprises, Inc., a Delaware corporation (“SSCE”), and JSC Capital
LLC, a Delaware limited liability company (“JSC Capital”).  SSCC, SSCE and JSC Capital are individually
referred to herein as a “Loan Party” and collectively as the “Loan
Parties”.  This opinion is delivered
to you pursuant to Section 5.02(a) of the Credit Agreement dated as
of the date hereof (the “Credit Agreement”) by and among SSCC, SSCE,
Smurfit-Stone Container Canada Inc., a corporation continued under the
Companies Act (Nova Scotia), JPMorgan Chase Bank, a New York banking
corporation, as Senior Agent, Deposit Account Agent and Deposit Funded Facility

 

 

Facing Agent, Deutsche Bank Trust Company Americas, as
Senior Agent, Administrative Agent, Collateral Agent, Swingline Lender and
Revolving Facility Facing Agent, Deutsche Bank AG, as Canadian Administrative
Agent and Revolving (Canadian) Facility Facing Agent, and the financial
institutions party thereto (the “Lenders”).  Unless otherwise indicated, capitalized terms
used herein but not otherwise defined herein shall have the respective meanings
set forth in the Credit Agreement.

 

In connection with this opinion, I have examined
originals or copies, certified or otherwise identified to my satisfaction, of
the following:

 

(i)                                     the certificate of incorporation and
bylaws of SSCC and SSCE, and the certificate of formation and limited liability
company agreement of JSC Capital;

 

(ii)                                  resolutions of the board of directors of
SSCC and SSCE, and resolutions of the board of managers of JSC Capital;

 

(iii)                               the Credit Agreement;

 

(iv)                              the Guarantee and Collateral Agreement
(U.S.) dated as of the date hereof by and among the Loan Parties and the
Collateral Agent;

 

(v)                                 each of the mortgages and deeds of trust
dated as of the date hereof by and between SSCE and the Collateral Agent;

 

(vi)                              the Patent Security Agreement (U.S.)
dated as of the date hereof by and among SSCC, SSCE, JSC Capital and the
Collateral Agent;

 

(vii)                           the Trademark Security Agreement (U.S.) dated as of
the date hereof by and among SSCC, SSCE, JSC Capital and the Collateral Agent;
and

 

(viii)                        the Copyright Security Agreement (U.S.) dated as of
the date hereof by and among SSCC, SSCE, JSC Capital and the Collateral Agent.

 

The documents and agreements listed in items (iii) through
(viii) above are referred to herein collectively as the “Documents.”

 

In addition, I have obtained and relied without
independent investigation upon such certificates and assurances from public
officials as I have deemed necessary or appropriate.  In my examinations, I have assumed (a) the
genuineness of all signatures of all parties other than the Loan Parties, the
conformity to original documents of all documents submitted to me as copies or
drafts and the authenticity of such originals of such latter documents, (b) as
to all parties other than the Loan Parties, the due completion, execution,
acknowledgment as indicated thereon and delivery of documents recited herein
and therein and validity and enforceability against all parties thereto other
than the Loan Parties and (c) that each Person (other than the Loan
Parties) which is a party to any Document has full power, authority and legal
right, under its charter and other governing documents, corporate and limited
liability company legislation and the laws of its state of formation, to perform
its respective obligations under such Document.

 

2

 

I have investigated such questions of law for the
purpose of rendering this opinion as I have deemed necessary.  I am opining herein as to United States federal
laws, the General Corporation Law of the State of Delaware, the Delaware
Limited Liability Company Act and the laws of the State of Missouri only, in
each case as having effect at the date hereof.

 

On the basis of the foregoing, and in reliance thereon,
and subject to the limitations, qualifications and exceptions set forth herein,
I am of the opinion that as of the date hereof:

 

1.                                       Each of SSCC and SSCE is a corporation
duly incorporated, validly existing and in good standing under the laws of its respective
state of incorporation. .ISC Capital is a limited liability company duly
formed, validly existing and in good standing under the laws of its state of
formation.  Each of the Loan Parties is
qualified to do business and is in good standing in each jurisdiction in which
the property owned, leased or operated by it or the nature of the business
conducted by it makes such qualification necessary, except, as to any Loan
Party, for such failures to be qualified and in good standing, if any, which
would not have a material adverse effect on the business, properties or
operations of such Loan Party.  Each Loan
Party has all requisite corporate or limited liability company power and
authority, as applicable, to own and operate its properties and to carry on its
business as now conducted and to execute, deliver and perform its obligations
under the Documents to which it is a party. 
The execution, delivery and performance by each Loan Party of the
Documents to which such Loan Party is a party have been duly authorized by all
necessary corporate or limited liability company action, as applicable, on the
part of such Loan Party and such documents have been duly executed and
delivered by each such Loan Party.

 

2.                                       Each Loan Party’s execution and delivery
of the Documents to which it is a party and its performance of its obligations
under such Documents will not (i) constitute a violation by such Loan
Party of any applicable provision of the General Corporation Law of the State
of Delaware, the Delaware Limited Liability Company Act or United States
federal statutory law or governmental regulation, or violate any existing
order, writ, injunction or decree of any court or governmental instrumentality
applicable to such Loan Party of which I have knowledge; (ii) conflict
with or result in any breach of any of the terms, covenants, conditions or
provisions of, or constitute a default under, or (other than pursuant to the
Loan Documents) result in the creation or imposition of (or the obligation to
create or impose) any Lien upon any of the property or assets of any Loan Party
pursuant to the terms of any material note, deed of trust, license, franchise,
permit, agreement or other instrument or obligation to which such Loan Party is
a party, or by which such Loan Party or any of its properties (whether now
owned or hereafter acquired) may be bound or affected (except that I express no
opinion with respect to breaches or defaults under cross-default or
cross-acceleration provisions or with respect to financial covenants or tests)
or (iii) violate any existing provisions of the certificate of
incorporation or by-laws of SSCC or SSCE, or the certificate of formation or
limited liability company agreement of JSC Capital.

 

3.                                       There are no causes of action, claims,
proceedings or investigations pending, or to the best of my knowledge,
threatened against any of the Loan Parties, relating to or affecting any of the
Loan Parties (or any of their respective officers or directors or managers in
connection with the business or affairs of such Loan Party), before any court
or governmental authority, which, if finally determined adversely to such Loan
Party, individually or in the aggregate,

 

3

 

would have a material adverse effect on the business,
properties or operations of the Loan Parties taken as a whole.  There are no such causes of action, claims,
proceedings or investigations pending or, to the best of my knowledge,
threatened, challenging the validity or propriety of the transactions contemplated
by the Documents or in which an injunction or order has been entered preventing
any of the transactions contemplated by the Documents.  None of the Loan Parties is subject to any
judgment, order or decree which has a reasonable probability of having a
material adverse effect on the business, properties or operations of the Loan
Parties taken as a whole.

 

4.                                       None of the Loan Parties is an “investment
company”, or a company “controlled” by an “investment company”, within the
meaning of the Investment Company Act of 1940, as amended.

 

5.                                       None of the Loan Parties is a “holding
company”, or a “subsidiary company” of a “holding company”, or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company”, as
such terms are defined in the Public Utility Holding Company Act of 1935, as
amended, or a “public utility”, as such term is defined in the Federal Power
Act, as amended.

 

4

 

This opinion is solely for your benefit in connection
with the transactions contemplated by the Documents and is not to he used,
circulated, quoted or otherwise referred to for any other purpose without my
prior written consent, provided that Winston & Strawn LLP and any
Person that subsequently becomes a Lender in accordance with Section 11.04(b) of
the Credit Agreement may rely on this opinion as of the date of this opinion as
if it were addressed to such Person and delivered on the date hereof.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Craig A. Hunt

  
	
   

  	
  General Counsel

  

 

 

November 1, 2004

 

To The
Addressees on Schedule “A”

 

Ladies and Gentlemen:

 

Re:  Smurfit-Stone Container Canada Inc.

 

We have acted as counsel
to Smurfit-Stone Container Canada Inc. (the “Borrower”) in connection with a
credit agreement dated as of November 1, 2004 (the “Credit Agreement”)
among the Borrower, Smurfit-Stone Container Enterprises, Inc.,
Smurfit-Stone Container Corporation, the lenders from time to time party to the
Credit Agreement (collectively, the “Lenders”), as lenders, JPMorgan Chase Bank
(the “Agent”), as senior agent, deposit account agent and deposit funded
facility facing agent, Deutsche Bank Trust Company Americas, as senior agent,
administrative agent, collateral agent and revolving facility facing agent (the
“Collateral Agent”) and Deutsche Bank AG (the “Canadian Administrative Agent”),
as Canadian administrative agent and revolving (Canadian) facility facing
agent.  Capitalized terms used in this
opinion which we have not defined have the meanings given to them in the Credit
Agreement.

 

This opinion is being
provided to you pursuant to Section 5.02(a) of the Credit Agreement.

 

In fulfillment of certain
obligations of the Borrower in the Credit Agreement, we have participated in
the preparation of and have examined executed copies of the following documents
(collectively, the “Loan Documents”):

 

(a)                                  the Credit Agreement

 

 

(b)                                 a debenture (the “Borrower Debenture”)
dated October 27, 2004 made by the Borrower in favour of the Collateral
Agent charging certain real property located in Brampton and Burlington
Ontario;

 

(c)                                  a debenture delivery agreement (the “Borrower
Debenture Delivery Agreement”) dated as of October 27, 2004 made by the
Borrower in favour of the Collateral Agent, with respect to the Borrower
Debenture;

 

(d)                                 an assignment of rents (the “Borrower
Assignment of Rents”) dated October 27, 2004 made by the Borrower in
favour of the Collateral Agent as security for the Borrower Debenture;

 

(e)                                  a security agreement (the “Borrower
Security Agreement”) dated as of November 1, 2004 made by the Borrower in
favour of the Collateral Agent;

 

(f)                                    a pledge (the “Borrower Pledge”) dated as
of November 1, 2004 made by the Borrower of its capital, stock and
partnership interests;

 

(g)                                 a guarantee (the “3083527 Guarantee”)
dated as of November 1, 2004 made by 3083527 Nova Scotia Company (“3083527”)
in favour of the Collateral Agent guaranteeing performance of and compliance
with the Obligations (as defined therein);

 

(h)                                 a pledge (the “3083527 Pledge”) dated as
of November 1, 2004 by 3083527 of its capital stock and partnership
interests;

 

(i)                                     a security agreement (the “3083527
Security Agreement”) dated as of November 1, 2004 made by 3083527 in
favour of the Collateral Agent;

 

2

 

(j)                                     a guarantee (the “MBI Guarantee”) dated
as of November 1, 2004 made by MN Limited (“MBI”) in favour of the
Collateral Agent guaranteeing performance of and compliance with the
Obligations (as defined therein);

 

(k)                                  a pledge (the “MBI Pledge”) dated as of November 1,
2004 by MBI of its capital stock and partnership interests;

 

(l)                                     a security agreement (the “MBI Security
Agreement”) dated as of November 1, 2004 made by MBI in favour of the
Collateral Agent;

 

(m)                               a guarantee (the “Smurfit-MBI Guarantee”)
dated as of November 1, 2004 made by MBI in its capacity as general
partner of Smurfit-MBI in favour of the Collateral Agent guaranteeing
performance of arid compliance with the Obligations (as defined therein);

 

(n)                                 a security agreement (the “Smurfit-MBI
Security Agreement”) dated as of November t 2004 made by MBI in its
capacity as general partner of Smurfit-MBI in favour of the Collateral Agent;

 

(o)                                 a debenture (the “Smurfit-MBI Main
Debenture”) dated October 26, 2004 made by MBI in favour of the Collateral
Agent charging certain real property located in Toronto, Guelph, Milton, Whitby
and Pembroke, Ontario (collectively, the “Ontario Properties”); Calgary and
Strathcona County, Alberta (collectively, the “Alberta Properties”); Regina,
Saskatchewan; and Winnipeg, Manitoba, which are held by MBI in its capacity as
general partner of Smurfit-MBI;

 

(p)                                 a debenture delivery agreement (the “Smurfit-MBI
Main Debenture Delivery Agreement”) dated as of October 26, 2004 made by
MN in 

 

3

 

favour of the Collateral Agent, with respect to the Smurfit-MBI Main
Debenture;

 

(q)                                 a main assignment of rents (the “Smurfit-MBI
Main Assignment of Rents”) dated as of October 26, 2004 made by MBI in
favour of the Collateral Agent as security form the Smurfit-MBI Main Debenture;

 

(r)                                    a debenture (the “MBI Ontario Debenture”)
dated October 26, 2004 made by MBI in favour of the Collateral Agent
charging the Ontario Properties;

 

(s)                                  a debenture delivery agreement (the “MBI
Ontario Delivery Agreement”) dated as of October 26, 2004 made by MBI in
favour of the Collateral Agent, with respect to the MBI Ontario Debenture;

 

(t)                                    an assignment of rents (the “MBI Ontario
Assignment of Rents”) dated October 26, 2004 with respect to the Ontario
Properties made by MBI in favour of the Collateral Agent as security for the
MBI Debenture;

 

(u)                                 a debenture (the “MBI Saskatchewan
Debenture”) dated October 26, 2004 made by MBI in favour of the Collateral
Agent charging certain real property located in Regina, Saskatchewan which is
held by MBI in its capacity as general partner of Smurfit-MBI;

 

(v)                                 a debenture delivery agreement (the “MBI
Saskatchewan Debenture Delivery Agreement”) dated as of October 26, 2004
made by MBI in favour of the Collateral Agent with respect to the MBI
Saskatchewan Debenture;

 

(w)                               an assignment of rents (the “MBI
Saskatchewan Assignment of Rents”) dated October 26, 2004 with respect to
the Regina, Saskatchewan property 

 

4

 

made by MBI in favour of the Collateral Agent as security for the MBI
Saskatchewan Debenture;

 

(x)            an Indenture and Deed of Hypothec and Issue of Bonds
(the “Smurfit-MBI Hypothec”) dated October 24, 2004 entered into by MBI in
its capacity as general partner of Smurfit-MBI in favour of National Bank Trust
Inc.;

 

(y)                                 a bond certificate (the “Smurfit-MBI Bond
Certificate”) dated November 1, 2004 executed by MBI in its capacity as
general partner of Smurfit-MBI;

 

(z)            a delivery order (the “Smurfit-MBI Bond Order”) dated November 1,
2004 by MBI in its capacity as general partner of Smurfit-MBI;

 

(aa)                            a bond pledge agreement (the “Smurfit-MBI
Bond Pledge”) dated November 1, 2004 by MBI in its capacity as general
partner of Smurf it-MBI

 

(bb)                          a debenture (the “MBI Alberta Debenture”)
dated October 26, 2004 made by MBI in favour of Deutsche Bank AG charging
the Alberta Properties which are held by MBI in its capacity as general partner
of Smurfit-MBI;

 

(cc)                            a debenture delivery agreement (the “MBI
Alberta Debenture Delivery Agreement”) dated as of October 26, 2004 made
by MBI in favour of Deutsche Bank AG with respect to the MBI Alberta Debenture;

 

(dd)                          an assignment of rents (the “MBI Alberta
Assignment of Rents”) dated October 26, 2004 with respect to the Alberta
Properties made by MBI in favour of Deutsche Bank AG as security for the MBI
Alberta Debenture;

 

5

 

(ee)                            a debenture (the “MBI Manitoba Debenture”,
and together with the Borrower Debenture, the MBI Debenture, the MBI
Saskatchewan Debenture and the MBI Alberta Debenture, the “Debentures”) dated October 26,
2004 made by MBI in favour of the Collateral Agent charging certain real
property located in Winnipeg, Manitoba which is held by MBI in its capacity as
general partner of Smurfit-MBI;

 

(ff)                                a debenture delivery agreement (the “MBI
Manitoba Debenture Delivery Agreement”) dated as of October 26, 2004 made
by MBI in favour of the Collateral Agreement with respect to the MBI Manitoba
Debenture; and

 

(gg)                          an assignment of rents (the “MBI Manitoba
Assignment of Rents”) dated October 26, 2004 with respect to the Winnipeg,
Manitoba property made by MBI in favour of the Collateral Agent as security for
the MBI Manitoba Debenture.

 

The
Borrower Debenture, the Borrower Debenture Delivery Agreement and the Borrower
Assignment of Rents are collectively referred to as the “Borrower Ontario
Documents” and, together with the Borrower Security Agreement and the Borrower
Pledge, are collectively referred to as the “Borrower Security Documents”; the
3083527 Guarantee, the 3083527 Pledge and the 3083527 Security Agreement are
collectively referred to as the “3083527 Security Documents”; the MBI
Guarantee, the MBI Pledge and the MBI Security Agreement are collectively
referred to as the “MBI Security Documents”; the MBI Alberta Debenture, the MBI
Alberta Debenture Delivery Agreement and the MBI Alberta Assignment of Rents
are collectively referred to herein as the “Alberta Security Documents”; the
Smurfit-MBI Debenture, the Smurfit-MBI Main Debenture Delivery Agreement and
the Smurfit-MBJ Main Assignment of Rents are collectively referred to as the “Smurfit-MBI
Realty Documents”; the Smurfit-MBI 

 

6

 

Guarantee,
the Smurf it-MBI Security Agreement and the Smurf it-MBI Realty Documents are
collectively referred to as the “Smurfit-MBI Security Documents”; the MBI
Ontario Debenture, the MBI Ontario Debenture Delivery Agreement and the MBI
Ontario Assignment of Rents are collectively referred to as the “Ontario
Security Documents”; the Smurfit-MBI Hypothec, the Smurfit-MBI Bond
Certificate, the Smurfit-MBI Bond Pledge and Smurfit-MBI Bond Order are
collectively referred to as the “Quebec Security Documents”; the MBI
Saskatchewan Debenture, the MBI Saskatchewan Debenture Delivery Agreement and
the MBI Saskatchewan Assignment of Rents are collectively referred to as the “Saskatchewan
Security Documents”; and the MBI Manitoba Debenture, the MBI Manitoba
Assignment of Rents and the MBI Manitoba Debenture Delivery Agreement are
collectively referred to as the “Manitoba Security Documents”.

 

We have relied, for purposes of our opinion herein, on a certificate of
an officer of MBI (the “MBI Certificate”), a copy of which is being delivered
to you simultaneously herewith.

 

For purposes of our
opinion herein, we have examined and relied on a certificate of good standing
with respect to MBI from the Registrar of Companies for the Province of British
Columbia dated October 27, 2004; a certificate of status with respect to
MBI from the Register of Corporations for the Province of Alberta dated October 27,
2004; a corporate profile report with respect to MBI (having Ontario
Corporation number 553955) from the Province of Ontario dated October 27,
2004.  We have also examined and relied
on a letter from the Registrar of Companies for the Province of British
Columbia dated October 27, 2004, that Smurfit-MBI is registered
extra-provincially as a limited partnership under Registration No. 91-116099;
a certified copy of a document replica of a declaration (the “Declaration”)
under the Limited Partnerships Act (Ontario) of
Smurfit-MBI dated October 27, 2004 and a copy of a Limited Partnerships
Report 

 

7

 

with respect to
Smurfit-MBI certified by the Province of Ontario on October 27, 2004; a
certified copy of an Alberta Limited Partnership Proof of Filing of the Registrar
of Corporations for the Province of Alberta with respect to Smurfit-MBI and the
results of a Trade Name/Partnership Search (Alberta) with respect to
Smurfit-MBI dated October 27, 2004; and an amended and restated limited
partnership agreement among Smurfit Canada Holdings Limited, Stone Container
(Canada) Inc. and MBI with respect to Smurfit-MBI dated December 1, 1999
and confirmation thereof dated as of September 30, 2003 (the amended and
restated partnership agreement as confirmed and amended being referred to
herein as the “Limited Partnership Agreement”). 
We have relied exclusively upon these documents and the MBI Certificate
without independent investigation for the purposes of providing our opinions
expressed below in paragraphs 1 through 5, inclusive.  We have relied upon these documents without
investigation, although not exclusively, for the purposes of providing our
other opinions.

 

In our examination of all
documents we have assumed that:

 

(a)                                  the appointment of Deutsche Bank AG as
subagent of the Collateral Agent solely for the purposes of the Alberta
Security Documents has been duly authorized, executed and delivered and is a
valid and enforceable appointment;

 

(b)                                 all facts set forth in the certificates
supplied by the respective officers and directors of MBI including, without
limitation, the MBI Certificate are complete, true and accurate;

 

(c)                                  performance ct the obligations would not
be illegal under the law of the place of performance if that is a place other
than the Provinces (as hereinafter defined);

 

8

 

(d)                                 each of the Borrower Security Documents,
the Smurfit-MBI Realty Documents, the 3083527 Security Documents, the Quebec
Security Documents, the Ontario Security Documents, the Saskatchewan Security
Documents, the Manitoba Security Documents, the Alberta Security Documents, the
MBI Security Documents and the Smurfit-MBI Security Documents has been duly
authorized, executed and delivered by each party thereto and constitutes a
legal, valid and binding agreement enforceable against such parties (except
with respect to enforceability the Borrower, MBI and Smurfit-MBI with respect
to the Borrower Ontario Documents, Smurfit-MBI Realty Documents, the Ontario
Security Documents and the Alberta Security Documents) in accordance with its
terms;

 

(e)                                  with respect to the Loan Documents, (i) value
has been given; (ii) the parties thereto have not agreed to postpone the
time for attachment of the security interest expressed to have been created
thereunder; (iii) each contains a description of the collateral subject to
such document sufficient to enable such collateral to be identified; (iv) the
Borrower, 3083527, MBI, MBI in its capacity as general partner of Smurfit-MBI
and Smurfit-MBI, as the case may be, have rights in such collateral; and (v) the
property and assets subject to the security interests expressed to be created
by the Borrower Security Agreement, the Borrower Assignment of Rents, the MBI
Pledge, the MBI Security Agreement, the Smurf it-MBI Security Agreement, the
Smurfit-MBI Main Assignment of Rents, the MBI Ontario Assignment of Rents and
the MBI Alberta Assignment of Rents do not include consumer goods as defined in
the Personal Property Security Act (Ontario)
(the “Ontario PPSA”), the Personal Property Security
Act (Alberta) 

 

9

 

(the “Alberta PPSA”) or the Personal Property Security
Act (British Columbia) ( the “BC PPSA”);

 

(f)                                    all individuals have the requisite legal
capacity;

 

(g)                                 all signatures are genuine;

 

(h)                                 all documents submitted to us as
originals are complete and authentic and all photostatic, certified, notarial,
facsimile or other copies conform to the originals; and

 

(i)                                     all facts set forth in the official
public records, indices and filing systems and all certificates and documents
supplied by public officials or otherwise conveyed to us by public officials
are complete, true and accurate.

 

We have conducted, or
have caused to be conducted, searches for filings or registrations made in
certain offices of public record, and we have delivered, concurrently herewith,
a report of such searches and their results.

 

We have not undertaken
and hereby disclaim any obligation to advise you of any change in any matter
set forth in this opinion.  In
particular, our firm maintains no record of the dates of registration of
financing statements or their renewal and we have no reminder system for that
purpose; accordingly, we take no responsibility for the registration of
renewals or amendments.

 

Our opinion is expressed
only with respect to the laws of the Provinces of British Columbia, Ontario and
Alberta (the “Provinces”) and the laws of Canada applicable in the Provinces in
effect on the date of this opinion and we do not accept any responsibility to
inform the addressees of any change in law subsequent to this date 

 

10

 

that does or may
affect the opinions we express.  To the
extent that the opinions expressed below relate to the laws of New Brunswick
or Nova Scotia, we have relied on the opinion of Stewart McKelvey Stirling
Scales (the “SMSS Opinion”) a copy of which has been delivered to you.  We have made no independent investigation and
are not providing any independent opinion with respect to the SMSS Opinion
since we are not qualified to practice law in the Provinces of
New Brunswick or Nova Scotia.  The
opinions expressed below are limited in scope, to the extent that they relate
to the laws of the Provinces of New Brunswick or Nova Scotia, to the
matters addressed in the SMSS Opinion and, to he extent the SMSS Opinion is
stated to be based on any assumption or to be given in reliance on any
certificate or other document or to be subject to arty limitation,
qualification or exception, the opinions expressed below in reliance on the
SMSS Opinion are based on the same assumptions, are given in reliance on the
same certificates and documents, and are subject to the same limitations,
qualifications and assumptions.

 

We also express no opinion
with respect to any other jurisdiction other than the Provinces to the extent
that the laws of the other jurisdiction govern the validity, effect of
perfection or non-perfection, priority or enforcement of the security interests
created by the Borrower Security Agreement, the Borrower Assignment of Rents,
the MBI Pledge, the MBI Security Agreement, the Smurfit-MBI Security Agreement,
the Smurfit-MBI Main Assignment of Rents, the MBI Ontario Assignment of Rents
or the MBI Alberta Assignment of Rents or as a result of the conflict of laws rules of
the personal property legislation of the Provinces.  In addition, we express no opinion as to
whether the laws of the Provinces govern the validity, perfection, effect of
perfection or non-perfection, priority or enforcement of such security
interests.

 

Based upon the foregoing
and subject to the qualifications set forth below, we are of the opinion that:

 

11

 

1.                                       The Borrower is
duly qualified to carry on business in the Province of Ontario.

 

2.                                       MBI is duly
qualified to carry on business as an extra-provincial corporation in the
Provinces.

 

3.                                       Smurfit-MBI is a
limited partnership that has been formed and is existing under the Limited Partnerships Act (Ontario).

 

4.                                       Smurfit-MBI is
registered as an extra-provincial limited partnership in the Provinces of
British Columbia and Alberta.

 

5.                                       The execution
and delivery of and performance by MBI of the Smurfit-MBI Security Documents,
the Ontario Security Documents, the Alberta Security Documents, the
Saskatchewan Security Documents, the Quebec Security Documents and the Manitoba
Security Documents have been authorized by all necessary action in accordance
with the provisions of the Limited Partnership Agreement.

 

6.                                       Each of the Borrower
Debenture and the Borrower Debenture Delivery Agreement has been delivered by
the Borrower.

 

7.                                       Each of the MBI
Manitoba Debenture, he MBI Ontario Debenture, the MBI Saskatchewan Debenture,
the MBI Alberta Debenture and the Smurfit-MBI Main Debenture has been delivered
by MBI in its capacity as general partner of Smurfit-MBI.

 

8.                                       The execution
and delivery by the Borrower of the Credit Agreement and the Borrower Security
Documents and the performance of its obligations thereunder do not constitute or
result in a violation or a breach of or a default under any law, rule or
regulation having the force of law applicable in Ontario which is applicable to
the Borrower or any of its property.

 

12

 

9.                                       The execution
and delivery by MBI of the MBI Security Documents and the performance of its
obligations thereunder do not constitute or result in a violation or a breach
of or a default under any law, rule or regulation having the force of law
applicable in the Provinces which is applicable to MBI or any property in the
Provinces which it holds in its personal capacity.

 

10.                                 The execution
and delivery by MBI of the Smurfit-MBI Security Documents, the Ontario Security
Documents, the Alberta Security Documents, the Quebec Security Documents, the
Manitoba Security Documents and the Saskatchewan Security Documents and the
performance of its obligations thereunder do not constitute or result in a
violation on a breach of or a default under the Limited
Partnerships Act (Ontario), or any other law, rule or
regulation having the force of law applicable in the Provinces which is
applicable to Smurfit-MBI or MBI in its capacity as general partner of
Smurfit-MBI or any property in the Provinces which MBI holds in its capacity as
general partner of Smurfit-MBI.

 

11.                                 No
authorization, consent or approval of, or filing, registration, qualification
or recording with any governmental entity having jurisdiction in Ontario is
required in connection with the execution and delivery by the Borrower of the
Borrower Assignment of Rents, the Borrower Security Agreement (collectively,
the “Borrower PPSA Documents”) or the Credit Agreement and the performance of
its obligations thereunder except those which are required to perfect security
interests created by the Borrower PPSA Documents.

 

12.                                 No
authorization, consent or approval of, or filing, registration, qualification
or recording with any governmental entity having jurisdiction in the Provinces
is required in connection with the execution and delivery by MBI of the MBI
Security Documents 

 

13

 

and
the performance of its obligations thereunder except those which are required
to perfect security interests created thereby.

 

13.                                 No
authorization, consent or approval of, or filing, registration, qualification
or recording with any governmental entity having jurisdiction in the Provinces
is required in connection with the execution and delivery by MBI, in its
capacity as general partner of Smurfit-MBL of the Smurfit-MBI Security
Documents, the Alberta Security Documents, the Manitoba Security Documents, the
Quebec Security Documents, the Ontario Security Documents and the Saskatchewan
Security Documents and the performance of its obligations thereunder except
those which are required to perfect security interests created thereby.

 

14.                                 Each of the
Borrower Ontario Documents constitutes a legal valid and binding agreement of
the Borrower enforceable against the Borrower in accordance with its terms.

 

15.                                 Each of the
Alberta Security Documents, the Ontario Security Documents and the Smurfit-MBI
Realty Documents, constitutes a legal, valid and binding agreement of
Smurfit-MBI and MBI in its capacity as general partner of Smurfit-MBI
enforceable against each of them in accordance with its terms under the laws of
Alberta and Ontario, respectively.

 

16.                                 Each of the
Borrower Security Agreement and the Borrower Assignment of Rents creates a
valid security interest in favour of the Collateral Agent for the benefit of
the Beneficiaries (as defined therein) in the personal property described
therein in which the Borrower now has any rights, and is sufficient to create a
valid security interest in favour of the Collateral Agent for the benefit of
the Beneficiaries (as defined therein) in any such personal property in which
the Borrower hereafter acquires any rights when such rights are acquired by the
Borrower.

 

14

 

17.                                 Each of the MBI
Pledge and the MBI Security Agreement creates a valid security interest in
favour of the Collateral Agent for the benefit of the Beneficiaries (as defined
therein) in the personal property described therein in which MBI now has any
rights, and is sufficient to create a valid security interest in favour of the
Collateral Agent for the benefit of the Beneficiaries (as defined therein) in
any such personal property in which MBI hereafter acquires any rights when such
rights are acquired by MBI.

 

18.                                 The Smurfit-MBI
Security Agreement, the Smurfit-MBI Main Assignment of Rents, the MBI Ontario
Assignment of Rents and the MBI Alberta Assignment of Rents creates a valid
security interest in favour of the Collateral Agent for the benefit of the
Beneficiaries (as defined therein) in the personal property described therein
in which Smurfit-MBI and MBI in its capacity as general partner of Smurfit-MBI
now have any rights, and is sufficient to create a valid security interest in
favour of the Collateral Agent for the benefit of the Beneficiaries (as defined
therein) in any such personal property in which Smurfit-MBI and MBI in its
capacity as general partner of Smurfit-MBI hereafter acquire any rights when
such rights are acquired by MBI.

 

19.                                 Registration has
been made in all public offices provided for under the laws of the Province of
Ontario where such registration is necessary to perfect the security interests
in the assets of the Borrower created by the Borrower PPSA Documents, save and
except in the Canadian Intellectual Property Office, and the particulars of the
registrations are set forth in Schedule “B”.

 

20.                                 Registration has
been made in all public offices provided for under the laws of the Provinces
where such registration is necessary to perfect the security interests in the
assets of MBI created by the MBI Pledge and the MBI Security Agreement, save
and except in the Canadian Intellectual Property Office, and the particulars of
the registrations are set forth in Schedule “B”.

 

15

 

21.                               Registration has
been made in all public offices provided for under the laws of the Provinces
where such registration is necessary to perfect the security interests in the
assets of Smurfit-MBI and in the assets of MBI held in its capacity as general partner
of Smurfit-MBI created by the Smurfit-MBI Security Agreement, the Smurfit-MBI
Main Assignment of Rents, the MBI Ontario Assignment of Rents and the MBI
Alberta Assignment of Rents, save and except in the Canadian Intellectual
Property Office, and the particulars of the registrations are set forth in
Schedule “B”.

 

22.                               Assuming that
the Collateral Agent on behalf of the Lenders has given value to the Borrower,
3083527 or MBI (each a “Pledgor”), as the case may be, in accordance with the
laws of Ontario, and is acting in good faith (as such term is defined in the
Business Corporations Act (Ontario) (the “OBCA”) and has no notice of any
adverse claim (as such term is defined in the OBCA), upon delivery by the
Pledgors to the Collateral Agent, in Ontario, of share certificates endorsed in
blank evidencing the shares (the “Pledged Shares”) pledged by the Pledgors
under and pursuant to the Borrower Pledge, the 3083527 Pledge or the MBI
Pledge, as the case may be, the Collateral Agent, on behalf of the Lenders,
will receive a security interest in the Pledged Shares with priority over any
security interest therein perfected by registration or temporarily perfected
under the Ontario PPSA.

 

23.                               In any
proceedings brought before a court of competent jurisdiction in the Province of
Ontario (an “Ontario Court”) to interpret and enforce the Credit Agreement, the
Ontario Court would apply the law of the State of New York in accordance
with the choice of the law of the State of New York as the governing law
of the Credit Agreement, to all issues that under the conflict of laws rules of
the Province of Ontario are to be determined in accordance with the proper law
of a contract, provided that:

 

16

 

(a)                                the choice of the law of New York is
bona fide and legal and there is no reason for avoiding the choke of law on the
grounds of public policy, as these criteria are interpreted under Ontario law;
and

 

(b)                               in any such proceeding the Ontario Court:

 

(i)                                   will not take judicial notice of the
provisions of the law of the State of New York and will only apply these
provisions to the extent that they are proven to its satisfaction by expert
testimony;

 

(ii)                                will apply the laws of the Province of
Ontario (“Ontario law”) that under Ontario law would be characterized as
procedural and will not apply any law of New York that under Ontario law
would be characterized as procedural;

 

(iii)                             will apply Ontario laws that have
overriding effect, as interpreted under Ontario law;

 

(iv)                            will not apply (directly or indirectly)
any laws of New York that under Ontario law would be characterized as a
foreign revenue, penal, expropriatory or other public law; and

 

(v)                               will not apply any laws of New York
to the extent that their application would be contrary to public policy, as
such term is interpreted under Ontario law (“public policy”).

 

24.                               An Ontario Court
would give a judgment based upon a final and conclusive judgment in personam of
the court of New York obtained in favour of the Agents and the Lenders as
against the Borrower for a sum certain in money with respect 

 

17

 

to a claim pursuant to the Credit Agreement without reconsideration of
the merits, if:

 

(a)                                the New York court had jurisdiction
over the Borrower, as recognized under Ontario law;

 

(b)                               the judgment is:

 

(i)                                   subsisting and unsatisfied and not
impeachable as void or voidable under the laws of New York;

 

(ii)                                was not obtained by fraud or in a manner
contrary to natural justice;

 

(iii)                             is not directly or indirectly for a claim
in respect of any law of any jurisdiction which under Ontario law would be
characterized as a foreign revenue, penal, expropriatory or other public law;

 

(iv)                            is not contrary to principles of public
policy;

 

(v)                               not contrary to any order made by the
Attorney General of Canada under the Foreign Extraterritorial Measures Act
(Canada), or the Competition Tribunal under the Competition Act (Canada) in
respect of certain judgments, laws, and directives having effects on competition
in Canada; and

 

(vi)                            the action to enforce the judgment is
commenced within the relevant limitation period under applicable law.

 

The submission by
the Borrower to the non-exclusive jurisdiction of the courts of New York
pursuant to Section 11.16 of the Credit Agreement would be 

 

18

 

recognized by the
Ontario Court as conferring jurisdiction on the courts of New York within
the meaning of (a).

 

The opinion in
this paragraph is subject to the following qualifications:

 

(i)                                   an action in the Province of Ontario on
the judgment may be limited by bankruptcy, winding-up, insolvency, arrangement,
fraudulent preference and conveyance, assignment and preference and other
similar laws of general application affecting the enforcement of creditors’
rights;

 

(ii)                                the Ontario Court has discretion to stay
or decline to hear an action on the judgment if it is under appeal, or there is
another subsisting judgment in the Province of Ontario, the State of
New York or any other jurisdiction relating to the same cause of action as
the judgment; and

 

(iii)                             the Currency Act (Canada) precludes a
court in Canada from giving judgment in any currency other than Canadian
currency.  In Ontario, the court’s
judgment may be based on a rate of exchange determined in accordance with
section 121 of the Courts of Justice Act (Ontario), which rate of exchange is
usually a rate in existence on the business day immediately preceding the date
of payment of the judgment.

 

25.                               In any proceedings
brought before an Ontario Court to interpret and enforce the Borrower Security
Agreement, the Borrower Pledge or the 3083527 Security Documents, the Ontario
Court would apply the law of the Province of Nova Scotia in accordance with the
choice of the law of the Province of Nova Scotia as the governing law of the 

 

19

 

Borrower Security Agreement, the Borrower Pledge or the 3083527 Security
Documents, as the case may be, to all issues that under the conflict of laws rules of
the Province of Ontario are to be determined in accordance with the proper law
of a contract, provided that:

 

(a)                                the choice of the law of Nova Scotia is
bona fide and legal and there is no reason for avoiding the choice of law on
the grounds of public policy, as these criteria are interpreted under Ontario
law; and

 

(b)                               in any such proceeding the Ontario Court:

 

(i)                                   will not take judicial notice of the
provisions of the law of the Province of Nova Scotia and will only apply these
provisions to the extent that they are proven to its satisfaction by expert
testimony;

 

(ii)                                will apply Ontario law that under Ontario
law would be characterized as procedural and will not apply any law of Nova
Scotia that under Ontario law would be characterized as procedural;

 

(iii)                             will apply Ontario laws that have
overriding effect, as interpreted under Ontario law;

 

(iv)                            will not apply (directly or indirectly)
any laws of Nova Scotia that under Ontario law would be characterized as a
foreign revenue, penal, expropriatory or other public law; and

 

(v)                               will not apply any laws of Nova Scotia to
the extent that their application would be contrary to public policy.

 

20

 

26.                               An Ontario Court
would give a judgment based upon a final and conclusive judgment in personam of
the court of the Province of Nova Scotia obtained in favour of the Agents and
the Lenders as against the Borrower and 3083527 for a sum certain in money with
respect to a claim pursuant to the Borrower Security Agreement, the Borrower
Pledge and the 3083527 Security Documents, respectively, without
reconsideration of the merits, if:

 

(a)                                the Nova Scotia court had jurisdiction
over the Borrower and 3083527, respectively, as recognized under Ontario law;

 

(b)                               the judgment is:

 

(i)                                   subsisting and unsatisfied and not
impeachable as void or voidable under the laws of the Province of Nova Scotia;

 

(ii)                                was not obtained by fraud or in a manner
contrary to natural justice;

 

(iii)                             is not directly or indirectly for a claim
in respect of any law of any jurisdiction which under Ontario law would be
characterized as a foreign revenue, penal, expropriatory or other public law;

 

(iv)                            is not contrary to principles of public
policy;

 

(v)                               not contrary to any order made by the
Attorney General of Canada under the Foreign Extraterritorial Measures Act
(Canada), or the Competition Tribunal under the Competition Act (Canada) in
respect of certain judgments, laws, and directives having effects on
competition in Canada; and

 

21

 

(vi)                            the action to enforce the judgment is
commenced within the relevant limitation period under applicable law.

 

The submission by
the Borrower and 3083527 to the non-exclusive jurisdiction of the courts of Nova
Scotia pursuant to the Borrower Security Agreement, the Borrower Pledge and the
3083527 Security Documents would be recognized by the Ontario Court as
conferring jurisdiction on the courts of Nova Scotia within the meaning of (a).

 

The opinion in
this paragraph is subject to the following qualifications:

 

(i)                                   an action in the Province of Ontario on
the judgment may be limited by bankruptcy, winding-up, insolvency, arrangement,
fraudulent preference and conveyance, assignment and preference and other similar
laws of general application affecting the enforcement of creditors’ rights;

 

(ii)                                the Ontario Court has discretion to stay
or decline to hear an action on the judgment if it is under appeal, or there is
another subsisting judgment in the Province of Ontario, the Province of Nova
Scotia or any other jurisdiction relating to the same cause of action as the
judgment; and

 

(iii)                             the Currency Act (Canada) precludes a
court in Canada from giving judgment in any currency other than Canadian
currency.  In Ontario, the court’s
judgment may be based on a rate of exchange determined in accordance with
section 121 of the Courts of Justice Act (Ontario), which rate of exchange is
usually a rate in existence 

 

22

 

on the business day
immediately preceding the date of payment of the judgment.

 

27.                               In any
proceedings brought before a court of competent jurisdiction in any of the
Provinces (a “Provincial Court”) to interpret and enforce the MBI Security
Documents, the Smurfit-MBI Guarantee and the Smurfit-MBI Security Agreement
(collectively, the “MBI PPSA Documents”), the Provincial Court would apply the
law of the Province of New Brunswick in accordance with the choice of the
law of the Province of New Brunswick as the governing law of the MBI PPSA
Documents, to all issues that under the conflict of laws rules of such
Provinces are to be determined in accordance with the proper law of a contract,
provided that:

 

(a)                                the choice of the law of
New Brunswick is bona fide and legal and there is no reason for avoiding
the choke of law on the grounds of public policy, as these criteria are
interpreted under laws of such Provinces; and

 

(b)                               in arty such proceeding the Provincial
Court:

 

(i)                                   will not take judicial notice of the
provisions of the law of the Province of New Brunswick and will only apply
these provisions to the extent that they are proven to its satisfaction by
expert testimony;

 

(ii)                                will apply the laws of such Province (“Provincial
law”) that under Provincial law would be characterized as procedural and will
not apply any law of New Brunswick that under Provincial law would be
characterized as procedural;

 

(iii)                             will apply Provincial laws that have
overriding effect, as interpreted under Provincial law;

 

23

 

(iv)                            will not apply (directly or indirectly)
any laws of New Brunswick that under Provincial law would be characterized
as a foreign revenue, penal, expropriatory or other public law; and

 

(v)                               will not apply any laws of New Brunswick
to the extent that their application would be contrary to public policy, as
such term is interpreted under Provincial law (“Provincial public policy”).

 

28.                               A Provincial
Court would give a judgment based upon a final and conclusive judgment in personam of the court of the Province of
New Brunswick obtained in favour of the Agents and the Lenders as against
MBL in its own capacity or in its capacity as general partner of Smurfit-MBI,
as the case may be, for a sum certain in money with respect to a claim pursuant
to the MBI PPSA Documents without reconsideration of the merits, if:

 

(a)                                the New Brunswick court had
jurisdiction over MBI, as recognized under Provincial law;

 

(b)                               the judgment is:

 

(i)                                   subsisting and unsatisfied and not
impeachable as void or voidable under the laws of the Province of
New Brunswick;

 

(ii)                                was not obtained by fraud or in a manner
contrary to natural justice;

 

(iii)                             is not directly or indirectly for a claim
in respect of any law of any jurisdiction which under Provincial law would be
characterized as a foreign revenue, penal expropriatory or other public law;

 

24

 

(iv)                            is not contrary to principles of public
policy;

 

(v)                               not contrary to any order made by the
Attorney General of Canada under the Foreign Extraterritorial Measures Act
(Canada), or the Competition Tribunal under the Competition Act (Canada) in
respect of certain judgments, laws, and directives having effects on
competition in Canada; and

 

(vi)                            the action to enforce the judgment is
commenced within the relevant limitation period under applicable law.

 

The submission by
MBI to the non-exclusive jurisdiction of the courts of New Brunswick
pursuant to the MBI PPSA Documents would be recognized by the Provincial Court as
conferring jurisdiction on the courts of New Brunswick within the meaning
of (a).

 

The opinion in
this paragraph is subject to the following qualifications:

 

(i)                                   an action in the Provinces on the
judgment may be limited by bankruptcy, winding-up, insolvency, arrangement,
fraudulent preference and conveyance, assignment and preference and other
similar laws of general application affecting the enforcement of creditors’
rights;

 

(ii)                                the Provincial Court has discretion to
stay or decline to hear an action on the judgment if it is under appeal, or
there is another subsisting judgment in the Provinces, the Province of
New Brunswick or any other jurisdiction relating to the same cause of
action as the judgment; and

 

25

 

(iii)                             the Currency Act (Canada) precludes a
court in Canada from giving judgment in any currency other than Canadian
currency.

 

The opinions
expressed above are subject to the following qualifications:

 

(a)                                the enforceability of the Loan Documents
may be limited by bankruptcy, winding-up, insolvency, arrangement, fraudulent
preference and conveyance, assignment and preference and other similar laws of
general application affecting the enforcement of creditor’s rights;

 

(b)                               a court may exercise discretion in the
granting of equitable remedies such as specific performance and injunction;

 

(c)                                the enforceability of the Loan Documents
may be limited by general principles of law and equity relating to the conduct
of the Agent, the Collateral Agent and/or the Canadian Administrative Agent
prior to execution of or in the administration or performance of the Loan
Documents, including, without limitation, (i) undue influence,
unconscionability, duress, misrepresentation and deceit, (ii) estoppel and
waiver, (iii) laches, and (iv) reasonableness and good faith in the
exercise of discretionary powers;

 

(d)                               the Collateral Agent, or Deutsche Bank AG
in the case of the Alberta Security Documents, and the Lenders may be required
to give the Borrower, 3083527, Smurf it-MBI and MBI a reasonable time to repay
following a demand for payment prior to taking any action to enforce right of
repayment or before exercising any of the rights and remedies expressed to be
exercisable by the Collateral Agent in any of the Loan 

 

26

 

Documents or
Deutsche Bank AG in any of the Alberta Security Documents;

 

(e)                                no opinion is expressed herein as to the
title of the Borrower, 3083527, MBI or Smurfit-MBI to any property;

 

(f)                                  no opinion is expressed herein as to the
rank or priority of any security interest created by the Loan Documents, except
as expressed in paragraph 22;

 

(g)                               applicable law imposes certain
obligations on secured creditors which cannot be varied by contract and may
also affect the enforcement of certain rights and remedies under the Loan
Documents to the extent that these rights and remedies are inconsistent with or
contrary to law; however, in our opinion (subject to the various assumptions
and other qualifications stated herein), such law does not render the Loan
Documents invalid as a whole, and there exists in the Loan Documents or
pursuant to applicable law, legally adequate remedies for realization in the
Provinces of the principal benefit of the security constituted thereby in
accordance with applicable law; such legislation may, however, require certain
delays in realization and we express no opinion regarding the consequences of
any such delay;

 

(h)                               no opinion is expressed as to any
security interest created by the Loan Documents with respect to any property or
assets which are or might become fixtures or comprise growing crops or any
property or assets which are not identifiable or traceable;

 

27

 

(i)                                   we express no opinion as to whether a
security interest may be created in permits, quotas, licences or other property
which is neither personal property nor an interest in land;

 

(j)                                   with respect to the Province of British
Columbia, we express no opinion as to the effectiveness, enforceability or the
creation of the security interest under the Loan Documents as against, nor have
we effected any registrations in any office of public record with respect to
any property or rights located in British Columbia and of the nature described
in subsections (c), (d), (e), (f), (g), (j) or (1) of Section 4
of the BC PPSA, a copy of which is attached as Schedule “C”;

 

(k)                                we express no opinion as to the creation
or perfection of any security interest nor have we effected any registrations
in any property or assets to the extent the security agreements with respect to
such property are governed by the provisions of an Act of the Parliament of
Canada including, without limitation, any vessel registered under the Canada Shipping Act and any patents, trademarks or other
intellectual property;

 

(1)                                we express no opinion as to the creation
of any security interest in property consisting of a receivable, license,
approval, privilege, franchise, permit, lease or agreement (collectively, “Special
Property”) to the extent that the terms of the Special Property or any
applicable law prohibit the assignment or require, as a condition of
assignability, a consent, approval or other authorization or registration which
has not been made or given;

 

(m)                             the security interest created under each
of the Loan Documents as against an account debtor is subject to:

 

28

 

(i)                                   notice of the security interest and proof
thereof being given to the account debtor together with a direction to pay the
same to the Lenders;

 

(ii)                                the terms of the contract between the
Borrower, 3083527, MBI, MBI in its capacity as general partner of Smurfit-MBI
or Smurfit-MBI, as applicable, and the account debtor and any defences
available to the account debtor arising out of the contract;

 

(iii)                             any other defence or claim of the account
debtor against the Borrower, MBI, MBI in its capacity as general partner of
Smurfit-MBI or Smurfit-MBJ, as applicable, accruing before the account debtor
has knowledge of the security interest; and

 

(iv)                            common law and statutory restrictions on
the assignment of Crown debts;

 

(n)                               the enforceability of any security
interest under the Loan Documents is subject to certain legislative provisions
which provide that, in certain circumstances, the security interest may not be
enforceable against, respectively, a person who buys or leases goods from the
Borrower, 3083527, MBI, MBI in its capacity as general partner of Smurfit-MBI
or Smurfit-MBI, as applicable, in the ordinary course of business or a person
who acquires money, securities, documents to title or chattel paper from the
Borrower, 3083527, MBI, MBI in its capacity as general partner of Smurfit-MBI
or Smurfit-MBI;

 

29

 

(o)                               a court may decline to hear an action if
it determines, in its discretion, that it is not the proper forum or if
concurrent proceedings are brought elsewhere;

 

(p)                               a court may decline to accept the factual
and legal determinations of a party notwithstanding that a contract or
instrument provides that the determinations of that party shaft be conclusive;

 

(q)                               no opinion is given as to the
enforceability of any provision of the Loan Documents providing for the
severance of illegal or unenforceable provisions from the remaining provisions
of the Loan Documents;

 

(r)                                  a receiver or receiver and manager
appointed pursuant to the provisions of any Loan Document may, for certain
purposes, be treated by a court as being the agent of the secured party and not
solely the agent of the debtor (and the secured party may not be deemed to be
acting as the agent and attorney of the debtor in making such appointment),
notwithstanding any agreement to the contrary;

 

(s)                                the recoverability of costs and expenses
may be limited to those a court considers to be reasonably incurred and the
court has the discretion to determine by whom and to what extent costs and
expenses incidental to court proceedings shall be paid;

 

(t)                                  rights of indemnification may be limited
under applicable law;

 

(u)                               the Currency Act (Canada) precludes a
court in Canada from giving judgment in any currency other than Canadian
currency;

 

30

 

(v)                               pursuant to the provisions of section 8
of the Interest Act (Canada), no fine, penalty or rate of interest may be
exacted on any arrears of principal or interest secured by a mortgage on real
property that has the effect of increasing the charge on the arrears beyond the
rate of interest payable on principal money not in arrears;

 

(w)                             the Judgement Interest Act (Alberta)
prescribes the interest rate applicable to judgement debts or any part thereof
and therefore may limit the amount of interest recoverable thereon;

 

(x)                                 we express no opinion as to the
enforceability of provisions of the MBI Debenture or the MBI Alberta Debenture
that preserve an obligation of MBI or MBI Alberta after a final order of
foreclosure or provide for enforcement of any remedies in the Province of
Alberta against the real property charged thereby other than by proceedings for
foreclosure or sale or by the appointment of a receiver;

 

(y)                               the fixed and specific mortgages and
charges expressed to be created by the Debentures may not be effective in
respect of any property or assets which were not owned by the Borrower or MBI,
as applicable, on the date the Debentures were delivered or which were not
described in the Debentures with sufficient particularity;

 

(z)                                 the provisions for the payment of
interest under the Loan Documents may not be enforceable if those provisions
provide for the receipt of interest by the Lenders at a “criminal rate” within
the meaning of section 347 of the Criminal Code (Canada);

 

31

 

(aa)                          we express no opinion as to the
enforceability of any provision of any of the Loan Documents:

 

(i)                                   to the extent it purports to exculpate
any person or entity, including the Lenders, the Collateral Agent, Deutsche
Bank AG or any receiver, manager or receiver manager, from liability in respect
of acts or omissions which may be illegal fraudulent or involve willful
misconduct; and

 

(ii)                                which states that modifications,
amendments or waivers are not binding unless in writing;

 

(bb)                        the obligations of an account debtor in
respect of an intangible or chattel paper assigned under the Loan Documents to
make payment to the Collateral Agent or Deutsche Bank AG, as applicable, are
subject to Section 41 of the Alberta PPSA which requires, inter alia, that the account debtor receive notice regarding
the assignment as stipulated in Section 41(5) of the Alberta PPSA;

 

(cc)                          we express no opinion as to whether any
registrations, filings, indexing or entries are required to be recorded, filed,
indexed, entered or registered in any public offices in any jurisdiction other
than the Provinces of British Columbia, Alberta and Ontario to protect,
preserve and perfect the security interests expressed to be created pursuant to
the Loan Documents;

 

(dd)                        under the Alberta PPSA, the BC PPSA and
the Ontario PPSA, the failure to register by serial number in respect of
certain kinds of collateral (itinerant collateral such as motor vehicles,
trailers, mobile homes, 

 

32

 

designated
manufactured homes, aircraft, airframes, engines and propellers, boats and
outboard motors) not held by the Borrower, 3083527, Smurfit-MBI, MBI in its
capacity as general partner of Smurfit-MBI or MBI as inventory may result in
the Collateral Agent or Deutsche Bank AG not having priority over certain third
parties in relation to such collateral. 
As no registration by serial number has been effected in respect of such
kinds of assets, this opinion is qualified to the extent that further serial
number registrations may be necessary or desirable;

 

(ee)                          no opinion is expressed with respect to
the validity, perfection or registration of any security interest expressed to
be created by the Loan Documents with respect to property to which the Alberta
PPSA or the Ontario PPSA does not apply;

 

(ff)                              we express no opinion as to the
enforceability of, nor as to the manner in which a court would interpret and
apply any provision which refers to, incorporates by reference or requires
compliance with, any law, statute, rule or regulation of any jurisdiction
other than the Provinces;

 

(gg)                        the enforceability of the Loan Documents
is subject to the limitations contained in the Limitations
Act, 2002 (Ontario) and similar statutes in the other Provinces, and
we express no opinion as to whether a court may find that any provision of such
Loan Documents will be unenforceable as an attempt to vary or exclude a
limitation period under such statutes;

 

(hh)                        further registrations may be required in
the Province of Alberta to ensure the continuous perfection in any security
interest in respect of proceeds;

 

33

 

(ii)                                the provisions of the Expropriation Act (Alberta) may limit the recovery of
compensation in relation to an expropriation.

 

This opinion is
solely for the benefit of the addressees and their permitted assigns and
participants and not for the benefit of any other person.  It is rendered solely in connection with the
transaction to which it relates.  It may
not be quoted, in whole or in part, or otherwise referred to or used for any
other purpose without our prior written consent.

 

Yours truly,

 

34

 

SCHEDULE
“A”

ADDRESSEES

 

JPMORGAN CHASE BANK

 

-as Senior Agent, Deposit Account Agent and Deposit
Funded Facility Agent

 

-and-

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

 

-as Senior Agent, Administrative Agent, Collateral
Agent, Swingline Lender and Revolving Facility Facing Agent

 

-and-

 

DEUTSCHE BANK AG

 

-as Canadian Administrative Agent and Revolving
(Canadian) Facility Facing Agent

 

-and-

 

the Tranche C Lenders, the Revolving (Canadian) Lenders, the
Incremental Term Lenders lending to SSC Canada (as defined below) and the
Incremental Revolving (Canadian) Lenders, each from time to time party to the
Credit Agreement (as defined below)

 

-and-

 

WINSTON & STRAWN LLP

35 West Wacker Drive

Chicago, IL 60601

 

-and-

 

CRAVATH, SWAINE & MOORE

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019-7475

 

-and-

 

 

OSLER, HOSKIN & HARCOURT LLP

1 First Canadian Place, 61st Floor

Toronto, Ontario M5X 1B8

 

Reference: The credit agreement
to be dated on or about November 1, 2004 among Smurfit-Stone Container
Enterprises, Inc. and Smurfit-Stone Container Canada Inc. (“SSC Canada”),
as borrowers, Smurfit-Stone Container Corporation, as a guarantor, the Lenders
party thereto, JP Morgan Chase Bank, as Senior Agent, Deposit Account Agent and
Deposit Funded Facility Agent, Deutsche Bank Trust Company Americas, as Senior
Agent, Administrative Agent, Collateral Agent, Swingline Lender and Revolving
Facility Facing Agent, and Deutsche Bank AG, Canada Branch, as Canadian
Administrative Agent and Revolving (Canadian) Facility Facing Agent (as such
credit agreement may be amended, supplemented, restated or replaced from time
to time being hereafter called the “Credit Agreement”).

 

2

 

SCHEDULE
“B”

REGISTRATIONS

 

Registrations under the Personal
Property Security Act (Ontario)

 

 

	
  Registration
  #

  	
   

  	
  Debtor

  	
   

  	
  Secured Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20041026 1634

  	
   

  	
  Smurfit-MBI,

  	
   

  	
  Deutsche Bank

  	
   

  	
  I, E, A, O, MVI

  
	
  1590 9348

  	
   

  	
  MBI

  	
   

  	
  Trust Company

  	
   

  	
  Unspecified

  
	
   

  	
   

  	
  Limited/Limitee

  	
   

  	
  Americas

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20041026 1637

  	
   

  	
  Smurfit-MBI,

  	
   

  	
  Deutsche Bank

  	
   

  	
  I, F, A, O, MVI

  
	
  1590 9350

  	
   

  	
  MBI

  	
   

  	
  Trust Company

  	
   

  	
  Unspecified

  
	
   

  	
   

  	
  Limited/Limitee,

  	
   

  	
  Americas

  	
   

  	
   

  
	
   

  	
   

  	
  MBI

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Limited/Limitee in its capacity as General Partner of

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Smurfit-MBI

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20041026 1634

  	
   

  	
  MBI

  	
   

  	
  Deutsche Bank

  	
   

  	
  I, F, A, O, MVI

  
	
  1590 9347

  	
   

  	
  Limited/Limitee

  	
   

  	
  Trust Company

  	
   

  	
  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
  Americas

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20041026 1631

  	
   

  	
  Smurfit-Stone

  	
   

  	
  Deutsche Bank

  	
   

  	
  I, E, A, O, MVI

  
	
  1590 9346

  	
   

  	
  Container

  	
   

  	
  Trust Company

  	
   

  	
  Unspecified

  
	
   

  	
   

  	
  Canada Inc.

  	
   

  	
  Americas

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (English and

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  French forms of name included)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20041026 1635

  	
   

  	
  3083527 Nova

  	
   

  	
  Deutsche Bank

  	
   

  	
  I, E, A, O, MVI

  
	
  1590 9349

  	
   

  	
  Scotia Company

  	
   

  	
  Trust Company

  	
   

  	
  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
  Americas

  	
   

  	
   

  

 

 

Registrations under the Personal
Property Security Act (British Columbia)

 

	
  Registration
  #

  	
   

  	
  Debtor

  	
   

  	
  Secured Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  004828C

  	
   

  	
  Smurfit-MBI, 

  MBI 

  Limited/Limitee

  	
   

  	
  Deutsche Bank Trust Company Americas

  	
   

  	
  all present and after-acquired personal property of
  the Debtor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  004823C

  	
   

  	
  MBI 

  Limited/Limitee

  	
   

  	
  Deutsche Bank Trust Company Americas

  	
   

  	
  all present and after-acquired personal property of
  the Debtor

  

 

Registrations under the Personal
Property Security Act (Alberta)

 

	
  Registration #

  	
   

  	
  Debtor

  	
   

  	
  Secured Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04102628221

  	
   

  	
  MBI 

  Limited/Limitee

  	
   

  	
  Deutsche Bank Trust Company Americas

  	
   

  	
  all present and after-acquired personal property of
  the Debtor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04102628155

  	
   

  	
  Smurfit-MBI, 

  MBI 

  Limited/Limitee, 

  MBI 

  Limited/Limitee in its capacity as general partner of Smurfit-MBI

  	
   

  	
  Deutsche Bank Trust Company Americas

  	
   

  	
  all present and after-acquired personal property of
  the Debtor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04102628270

  	
   

  	
  MBI 

  Limited/Limitee

  	
   

  	
  Deutsche Bank AG

  	
   

  	
  all rents, issues, proceeds and profits of and from
  those lands legally described as plan 981 1817, lot 8, excepting thereout all
  mines and minerals and plan 3328TR, block 3, lot 7, excepting thereout all
  mines and minerals

  

 

2

 

Registrations under the Law of
Property Act (Alberta)

 

	
  Registration #

  	
   

  	
  Debtor

  	
   

  	
  Secured Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04102628338

  	
   

  	
  MBI 

  Limited/Limitee

  	
   

  	
  Deutsche Bank Trust Company Americas

  	
   

  	
  land charge

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04102628304

  	
   

  	
  MBI 

  Limited/Limitee

  	
   

  	
  Deutsche Bank AG

  	
   

  	
  land charge

  

 

3

 

SCHEDULE “C”

PERSONAL PROPERTY SECURITY ACT (BRITISH
COLUMBIA)

 

R.S.B.C.
1996, c. 359

 

Exclusions from scope of
Act

 

4.            Except
as otherwise provided in this Act, this Act does not apply to the following:

 

(a)                                a
lien, charge or other interest given by a rule of law or by an enactment
unless the enactment contains an express provision that this Act applies;

 

(b)                               a
security agreement governed by an Act of the Parliament of Canada that deals
with rights of parties to the agreement or the rights of third parties affected
by a security interest created by the agreement, including but without
limitation

 

(i)                                     a
mortgage under the Canada Shipping Act,
and

 

(ii)                                  any
agreement governed by Part V, Division B of the Bank Act (Canada);

 

(c)                                the
creation or transfer of an interest or claim in or under a contract of annuity
or policy of insurance except the transfer of a right to money or other value
payable under a policy of insurance as indemnity or compensation for loss of or
damage to collateral;

 

(d)                               the
creation or transfer of an interest in present or future wages, salary, pay,
commission or any other compensation for labour or personal services other than
fees for professional services;

 

(e)                                the
transfer of an interest in an unearned right to payment under a contract to a
transferee who is to perform the transferor’s obligations under the contract;

 

(f)                                  the
creation or transfer of an interest in land, other than an interest arising
under a licence, including

 

(i)                                     a
lease,

 

(ii)                                  a
petroleum and natural gas lease under the Petroleum and Natural Gas
Act,

 

 

(iii)                               a
lease, issued under the Coal Act, that
confers the right to produce coal, or

 

(iv)                              any
similar interest that is prescribed for the purposes of this section;

 

(g)                               the
creation or transfer of an interest in a right to payment that arises in
connection with an interest in land, including an interest in rental payments
payable under a lease of land;

 

(h)                               a
sale of accounts or chattel paper as part of a sale of a business out of which
they arose unless the vendor remains in apparent control of the business after
the sale;

 

(i)                                   a
transfer of accounts made solely to facilitate the collection of the accounts
for the assignor;

 

(j)                                   the
creation or transfer of an interest in a right to damages in tort;

 

(k)                                an
assignment for the general benefit of creditors made in accordance with an Act
of the Parliament of Canada relating to insolvency;

 

(1)                                a
mineral claim or a placer claim as those terms are defined in the Mineral Tenure Act.

 

2

 

November 1, 2004

 

JPMORGAN CHASE BANK

270 Park Avenue

New York, New York

U.S.A. 10017

 

-and-

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

90 Hudson Street

5th Floor

Jersey City, New Jersey

U.S.A. 07802

-as Senior Agents-

 

-and-

 

JPMORGAN CHASE BANK

270 Park Avenue

New York, New York

U.S.A. 10017

-as Deposit Account Agent and Deposit Funded Facility
Agent-

 

-and-

 

DEUTSCHE BANK TRUST COMPANY AMERICAS

90 Hudson Street

5th Floor

Jersey City, New Jersey

U.S.A. 07802

-as Administrative Agent, Collateral Agent, Swingline
Lender and Revolving Facility Facing Agent-

 

-and-

 

DEUTSCHE BANK AG, Canada Branch

222 Bay Street

Suite 1100

Toronto, Ontario

Canada M5K 1H6

-as Canadian Administrative Agent and Swingline Lender
and Revolving Facility Facing Agent-

 

 

-and-

 

NATIONAL BANK TRUST INC.

1100 University Street

Montreal, Québec

H3B 2G7

-as Trustee and Fondé de pouvoir-

 

-and-

 

the Tranche C Lenders, the Revolving (Canadian) Lenders and the
Incremental Term Lenders lending to SSC Canada (as defined below), each from
time to time party to the Credit Agreement (as defined below)

 

-and-

 

DESJARDINS DUCHARME STEIN MONAST, g.p.

600 West, De La Gauchetière

Suite 2400

Montreal, Québec

H3B 4L8

 

-and-

 

CRAVATH, SWAINE & MOORE

Worldwide Plaza

825 Eighth Avenue

New York, N.Y. 10019-7475

 

-and-

 

WINSTON & STRAWN LLP

35 West Wacker Drive

Chicago, IL 60601

 

Re:                           2004
Financing of Smurfit-Stone Container Enterprises Inc. and of Smurfit-Stone
Container Canada Inc. by a syndicate of Lenders

 

We have acted as legal counsel to Smurfit-Stone
Container Canada Inc. (“SSC Canada”),
Francobec Company (“Francobec”),
MBI Limited/Limitée (“MBI”) and
Smurfit-MBI in connection with that certain credit agreement (the “Credit Agreement”) dated as of November 1, 2004 among Smurfit-Stone
Container Enterprises Inc. and SSC Canada, as Borrowers, Smurfit-Stone
Container Corporation, as a Guarantor, the Lenders party thereto, JPMorgan
Chase Bank, as Senior Agent, Deposit Account Agent and Deposit Funded Facility
Facing Agent, Deutsche Bank Trust Company Americas, as Senior Agent,
Administrative Agent, Collateral Agent, Swingline Lender and Revolving 

 

2

 

Facility Facing Agent, and Deutsche Bank AG, Canada Branch, as Canadian
Administrative Agent and Revolving (Canadian) Facility Facing Agent.

 

The opinions expressed below are furnished to you
pursuant to Section 5.02(a)(iii) of the Credit Agreement.  All capitalized terms used, and not otherwise
defined herein, shall have the respective meanings ascribed thereto in the
Credit Agreement.

 

1.            Examinations

 

As counsel, we have participated in the preparation
of, and have examined executed copies of:

 

(a)                                  the
Credit Agreement;

 

(b)                                 the
indenture and deed of hypothec and issue of bonds (the “SSC Canada
Indenture”) entered into and executed on October 24, 2004
before Mtre. Pierre Béland, Notary, under his minute number 1388, by SSC Canada
in favour of National Bank Trust Inc. (the “Trustee”),
as fondé de pouvoir for the
Bondholders (as therein defined), which SSC Canada Indenture was registered on October 25,
2004 in the Land Registers for the Registration Divisions of Montreal
La Tuque, Shawinigan and Matane under number 11805716, in the register of
personal and movable real rights of the Province of Québec (the “Register”) on October 25, 2004 under number
04-0617172-0004 as well as with the Minister of Natural Resources pursuant to
the Forest Act (Québec) on October 29,
2004 under number 14804102901;

 

(c)                                  the
indenture and deed of hypothec and issue of bonds (the “Francobec
Indenture”) entered into and executed on October 24, 2004
before Mtre. Pierre Béland, Notary, under his minute number 1386, by Francobec
in favour of the Trustee, as fondé de pouvoir
for the Bondholders (as therein defined), which Francobec Indenture was
registered on October 26, 2004 in the Land Register for the Registration
Division of La Tuque under number 11812162 and in the Register on October 25,
2004 under number 04-0617172-0003;

 

(d)                                 the
indenture and deed of hypothec and issue of bonds (the “MBI
Indenture”) entered into and executed on October 24, 2004
before Mtre. Pierre Béland, Notary, under his minute number 1387, by MBI in
favour of the Trustee, as fondé de pouvoir for the Bondholders (as therein
defined), which MBI Indenture was registered on October 25, 2004 in the
Land Register for the Registration Division of Montreal under number 11806690
and in the Register on October 25, 2004 under number 04-0617172-0001;

 

3

 

(e)                                the
indenture and deed of hypothec and issue of bonds (the “Smurfit-MBI
Indenture”) entered into and executed on October 24, 2004
before Mtre. Pierre Béland, Notary, under his minute number 1389, by MBI in its
capacity as general partner of Smurfit-MBI, in favour of the Trustee, as fondé de pouvoir for the Bondholders (as therein
defined), which Smurfit-MBI Indenture was registered on October 25, 2004
in the Land Register for the Registration Division of Montreal under number
11806691 and in the Register on October 25, 2004 under number
04-0617172-0002;

 

(f)                                  the
Certificate No. 1 representing Cdn. $1,500,000,000 principal nominal value
25% demand bond (the “SSC Canada Bond”),
dated November 1, 2004 and issued by SSC Canada in favour of Deutsche Bank
Trust Company Americas (the “Collateral Agent”);

 

(g)                               the
Certificate No. 1 representing Cdn. $1,500,000,000 principal nominal value
25% demand bond (the “Francobec Bond”)
dated November 1, 2004 and issued by Francobec in favour of the Collateral
Agent;

 

(h)                               the
Certificate No. 1 representing Cdn. $1,500,000,000 principal nominal value
25% demand bond (the “MBI Bond”),
dated November 1, 2004 and issued by MBI in favour of the Collateral
Agent;

 

(i)                                   the
Certificate No. 1 representing Cdn. $1,500,000,000 principal nominal value
25% demand bond (the “Smurfit-MBI Bond”)
dated November 1, 2004 and issued by MBI, in its capacity as general
partner of Smurfit-MBI, in favour of the Collateral Agent;

 

(j)                                   the
delivery order in respect of the SSC Canada Bond, dated November 1, 2004
and given by SSC Canada to the Trustee;

 

(k)                                the
delivery order in respect of the Francobec Bond, dated November 1, 2004
and given by Francobec to the Trustee;

 

(1)                                the
delivery order in respect of the MBI Bond, dated November 1, 2004 and
given by MBI to the Trustee;

 

(m)                             the
delivery order in respect of the Smurfit-MBI Bond, dated November 1, 2004
and given by MBI, in its capacity as general partner of Smurfit-MBI, to the
Trustee;

 

4

 

(n)                               the
bond pledge agreement (the “SSC Canada Pledge
Agreement”) entered into and dated as of November 1, 2004 by
SSC Canada In favour of the Collateral Agent, providing for the terms pursuant
to which the SSC Canada Bond issued by SSC Canada pursuant to the SSC Canada
Indenture is to be held by the Collateral Agent, in its capacity as collateral
agent and depositary of the SSC Canada Bond for the benefit of the Tranche C
Lenders, the Revolving (Canadian) Lenders, the Canadian Administrative Agent,
each Incremental Term Lender providing Incremental Loans to SSC Canada, the
Collateral Agent, the Revolving (Canadian) Facility Facing Agent, each
counterparty to any Swap Agreement with a Loan Party the obligations under
which constitute Canadian Obligations, each Lender or Affiliate of a Lender
party to any Cash Management Agreement (as defined therein) the obligations
under which constitute Canadian Obligations, the beneficiaries of each
indemnification obligation undertaken by SSC Canada, any other Canadian
Subsidiary or any subsidiary of a Canadian Subsidiary under any Canadian Loan
Document (as defined therein) and any other holder of any Canadian Obligation
(collectively, the “Beneficiaries”);

 

(o)                               the
bond pledge agreement (the “Francobec Pledge Agreement”)
entered into and dated as of November 1, 2004 by Francobec in favour of
the Collateral Agent, providing for the terms pursuant to which the Francobec
Bond issued by Francobec pursuant to the Francobec Indenture is to be held by
the Collateral Agent, in its capacity as collateral agent and depositary of the
Francobec Bond for the benefit of the Beneficiaries;

 

(p)                               the
bond pledge agreement (the “MBI Pledge Agreement”)
entered into and dated as of November 1, 2004 by MBI in favour of the
Collateral Agent, providing for the terms pursuant to which the MBI Bond issued
by MBI pursuant to the MBI Indenture is to be held by the Collateral Agent, in
its capacity as collateral agent and depositary of the MBI Bond for the benefit
of the Beneficiaries;

 

(q)                               the
bond pledge agreement (the “Smurfit-MBI Pledge
Agreement”) entered into and dated as of November 1, 2004 by
MBI, in its capacity as general partner of Smurfit-MBI, in favour of the
Collateral Agent, providing for the terms pursuant to which the Smurfit-MBI
Bond issued by MBI, in its capacity as general partner of Smurfit-MBI, pursuant
to the Smurfit-MBI Indenture is to be held by the Collateral Agent, in its
capacity as collateral agent and depositary of the Smurfit-MBI Bond for the
benefit of the Beneficiaries; and

 

5

 

(r)                                  (i) notices
of intention to give security under Section 427 of the Bank Act (Canada)
(the “Bank Act”) dated October 27, 2004
and registered at the Bank of Canada (Montreal Agency) on October 29, 2004
under number 01167277, as well as registered at the Bank of Canada (Halifax
Agency) on October 29, 2004 under number 01167301, (ii) application
for credit and promise to give security under Section 427 of the Bank Act
dated October 27, 2004, (iii) agreement as to loans and advances and
security therefore dated October 31, 2004 and (iv) agreement for
special security in respect of specified property or classes of property
described in Section 427 of the Bank Act dated October 31, 2004, each
granted by SSC Canada in favour of Deutsche Bank AG (the “427 Bank”)
(collectively, each of the documents and agreements in (i) to (iv) above
are hereinafter referred as the “427 Documents”).

 

The documents listed in paragraphs (a) to (r) are
herein collectively referred to as the “Documents”.  The documents listed in paragraphs (b) to
(r) are herein collectively referred to as the “Québec
Documents”.  The SSC Canada
Indenture, the Francobec Indenture, the MBI Indenture and the Smurfit-MBI
Indenture are herein collectively referred to as the “Indentures”.  The SSC Canada Bond, the Francobec Bond, the
MBI Bond and the Smurfit-MBI Bond are herein collectively referred to as the “Bonds”.  The SSC Canada Pledge Agreement, the
Francobec Pledge Agreement, the MBI Pledge Agreement and the Smurfit-MBI Pledge
Agreement are herein collectively referred to as the “Pledge Agreements”.

 

We have also examined copies, certified or otherwise,
identified to our satisfaction, of such documents and papers, including public
and corporate records, and instruments and certificates of public officials and
have made such other examinations and investigations as we have considered
necessary or desirable as a basis for the opinions hereinafter expressed.

 

2.            Assumptions and Reliance

 

In our examination of the Documents as well as of the
other documents and certificates above-mentioned, we have assumed:

 

2.1                               the
legal capacity of all individuals, the genuineness of all signatures on, and
the authenticity and completeness of, all documents submitted to us as original
documents, and the conformity to authentic original documents of all documents
submitted to us as notarial, certified, photostat or similarly reproduced
copies of such original documents;

 

2.2                               the
currency, completeness, truth and accuracy of all facts set forth in the
official public records, certificates and documents supplied by public
officials or otherwise conveyed to us by public officials;

 

6

 

2.3                               the
currency, completeness, truth and accuracy of all facts set forth in the
certificates supplied by the respective officers of SSC Canada, Francobec, MBI
in respect of MBI and MBI in respect of Smurfit-MBI;

 

2.4                               that
each of the Beneficiaries, the Trustee, the Collateral Agent, SSC Canada,
Francobec, MBI and Smurfit-MBI is incorporated or formed and validly
subsisting, has the requisite capacity to execute, deliver and perform its
obligations under each Document to which it is a party and has taken all
necessary actions to authorize the execution, delivery and performance by it of
each such Document and that neither the execution, delivery or performance of
the Documents to which each is a party, nor the consummation of the
transactions contemplated thereby, conflict with or result in a breach of their
respective constating documents or by-laws;

 

2.5                               that
MBI has the corporate capacity to enter into and perform its obligations under
the limited partnership agreement entered into and executed among Smurfit
Canada Holdings Limited, Stone Container (Canada) Inc. and MBI with respect to
Smurfit-MBI, dated December 1, 1999, as confirmed by a confirmation
thereof, dated as of September 30, 2003 (the limited partnership agreement
as confirmed being referred to herein as the “Limited
Partnership Agreement”) and the Documents to which Smurfit-MBI is a
party and that the execution and delivery of and performance by MBI of such
Documents have been authorized by all necessary action in accordance with the
provisions of the Limited Partnership Agreement;

 

2.6                               that
each of the Beneficiaries, the Trustee, the Collateral Agent, SSC Canada,
Francobec and MBI, in its own capacity and in its capacity as general partner
of Smurfit-MBI, has duly executed and delivered each Document to which it, or
in the case of MBI acting as general partner of Smurfit-MBI, Smurfit-MBI, is a
party and that each such Document constitutes a legal, valid and binding
obligation of each of the Beneficiaries, the Trustee and the Collateral Agent
and is enforceable in accordance with its terms against each of them
respectively;

 

2.7                               that
the Credit Agreement constitutes legal, valid and binding obligations of SSC
Canada, enforceable against SSC Canada in accordance with its terms;

 

2.8                               that
the SSC Canada Subsidiary Guarantee Agreements dated as of November 1,
2004 entered into and executed by and between Francobec, MBI, in its own
capacity and in its capacity as general partner of Smurfit-MBI and the
Collateral Agent for the benefit of the Beneficiaries constitutes legal, valid
and binding obligations of Francobec, MBI and Smurfit-MBI enforceable against
Francobec, MBI and Smurfit-MBI in accordance with its terms;

 

2.9                               that
the description of the immovable properties specifically described in Schedule
VII appearing in Section 32.7 of the SSC Canada Indenture and in Schedule
VI appearing in Section 32.6 of each of the Francobec Indenture, the 

 

7

 

MBI Indenture and the Smurfit-MBI Indenture
respectively (collectively, the “Immovable Properties”)
is complete and accurate for all legal purposes;

 

2.10                         that the
Bonds issued pursuant to the Indentures shall at all times be held by the
Collateral Agent or on its behalf (including by the Trustee, as custodian) in
the Province of Québec;

 

2.11                         that the
domicile of each of SSC Canada and Francobec is located in the Province of Nova
Scotia;

 

2.12                         that the
domicile of MBI is located in the Province of New Brunswick;

 

2.13                         that the
domicile of Smurfit-MIBI is located in the Province of Ontario; and

 

214                            that
the principal place of business (within the meaning of such expression as set
forth in Section 427 of the Bank Act) of SSC Canada is located either in
the Province of Québec or in the Province of Nova Scotia and that the 427 Bank
is a bank within the meaning of such expression as set forth in the Bank Act.

 

3.            Law

 

Our opinions set out below are limited to the laws of
the Province of Québec and the federal laws of Canada applicable therein, as of
the date of this opinion letter.  In
connection with the opinions set out below, we have considered such matters of
law as we have considered necessary or appropriate.

 

4.            Opinions

 

Based upon and relying on the foregoing and subject to
the assumptions, qualifications and limitations set forth in this opinion
letter, we are of the opinion that:

 

SSC Canada:

 

4.1                               SSC
Canada is registered under and is not in violation of Sections 26 and 38 of An Act Respecting the Legal Publicity of Sole Proprietorships,
Partnerships and Legal Persons (Québec) (the “Publicity
Act”).

 

4.2                               The
execution and delivery by SSC Canada of the Québec Documents to which it is a
party and the consummation of the transactions contemplated therein do not
contravene any law of the Province of Québec or any law of Canada applicable
therein, where such contravention would affect the enforceability of such
Québec Documents.

 

4.3                               Each
of the Québec Documents to which SSC Canada is a party respectively constitutes
a legal, valid and binding obligation of SSC Canada, enforceable against SSC
Canada in accordance with its terms.

 

8

 

4.4                               The
SSC Canada Indenture creates a valid hypothec without delivery (except in
respect of the Excluded Property as defined therein) in the aggregate principal
amount of Cdn. $1,500,000,000 in favour of the Trustee, as fondé de
pouvoir for the Bondholders (as defined therein), on (i) the
Immovable Properties of SSC Canada located in the Province of Québec and on the
rentals and revenues which are or may be produced by such Immovable Properties,
as well as the proceeds of any insurance covering losses of revenues and
rentals deriving from said Immovable Properties and on (ii) the corporeal
movable property of SSC Canada which is not ordinarily used in more than one
jurisdiction and which is situated in the Province of Québec as well as on the
incorporeal movable property of SSC Canada established by a title in bearer
form and which is situated in the Province of Québec, but only as security for
the obligations of SSC Canada to the Collateral Agent as the holder of the SSC
Canada Bond and to the Trustee under the SSC Canada Indenture.

 

4.5                               The
SSC Canada Indenture has been registered in all places of the Province of
Québec as are currently necessary to render same opposable to third parties
(except in respect of the uncadastered immovable properties of SSC Canada in
respect of which no land file has been established, where registration is not
possible unless such land file is established).

 

4.6                               The
SSC Canada Bond has been issued in conformity with the provisions of the SSC
Canada Indenture, has been certified by the Trustee and entitles the Collateral
Agent, for and on behalf of the Beneficiaries, to the benefit of the security
created under the SSC Canada Indenture.

 

4.7                               The
SSC Canada Bond has been deposited with the Collateral Agent as valid security
for the Secured Obligations (as defined in the SSC Canada Pledge Agreement).

 

4.8                               The
427 Documents create valid security in favour of the 427 Bank on the property
stated to be subject thereto as security for the loans and advances, as such
terms are construed under the Bank Act, made by the 427 Bank to SSC Canada
after October 31, 2004.

 

Francobec:

 

4.9                               Francobec
is registered under and is not in violation of Sections 26 and 38 of the
Publicity Act.

 

4.10                         The
execution and delivery by Francobec of the Québec Documents to which it is a
party and the consummation of the transactions contemplated therein do not
contravene any law of the Province of Québec or any law of Canada applicable
therein, where such contravention would affect the enforceability of such
Québec Documents.

 

9

 

4.11                         Each of
the Québec Documents to which Francobec is a party respectively constitutes a
legal, valid and binding obligation of Francobec, enforceable against Francobec
in accordance with its terms.

 

4.12                         The
Francobec Indenture creates a valid hypothec without delivery (except in
respect of the Excluded Property as defined therein) in the aggregate principal
amount of Cdn.$1,500,000,000 in favour of the Trustee, as fondé de
pouvoir for the Bondholders (as defined therein), on (i) the
Immovable Properties of Francobec located in the Province of Québec and on the
rentals and revenues which are or may be produced by such Immovable Properties,
as well as the proceeds of any insurance covering losses of revenues and
rentals deriving from said Immovable Properties and on (ii) the corporeal
movable property of Francobec which is not ordinarily used in more than one
jurisdiction and which is situated in the Province of Québec as well as on the
incorporeal movable property of Francobec established by a title in bearer form
and which is situated in the Province of Québec, but only as security for the
obligations of Francobec to the Collateral Agent as the holder of the Francobec
Bond and as security for the obligations of Francobec to the Trustee under the
Francobec Indenture.

 

4.13                         The
Francobec Indenture has been registered in all places in the Province of Québec
as are currently necessary to render same opposable to third parties.

 

4.14                         The
Francobec Bond has been issued in conformity with the provisions of the
Francobec Indenture, has been certified by the Trustee and entitles the
Collateral Agent, for and on behalf of the Beneficiaries, to the benefit of the
security created under the Francobec Indenture.

 

4.15                         The
Francobec Bond has been deposited with the Collateral Agent as valid security
for the Secured Obligations (as defined in the Francobec Pledge Agreement).

 

MBI:

 

4.16                         MBI is
registered under and is not in violation of Sections 26 and 38 of the Publicity
Act.

 

4.17                         The
execution and delivery by MBI of the Québec Documents to which it is a party
and the consummation of the transactions contemplated therein do not contravene
any law of the Province of Québec or any law of Canada applicable therein,
where such contravention would affect the enforceability of such Québec
Documents.

 

4.18                         Each of
the Québec Documents to which MBI is a party respectively constitutes a legal,
valid and binding obligation of MBI, enforceable against MBI in accordance with
its terms.

 

10

 

4.19                         The MBI
Indenture creates a valid hypothec without delivery (except in respect of the
Excluded Property as defined therein) in the aggregate principal amount of
Cdn.$1,500,000,000 in favour of the Trustee, as fondé de
pouvoir for the Bondholders (as defined therein), on (i) the
Immovable Properties of MBI located in the Province of Québec and on the
rentals and revenues which are or may be produced by such Immovable Properties,
as well as the proceeds of any insurance covering losses of revenues and
rentals deriving from said Immovable Properties and on (ii) the corporeal
movable property of MBI which is not ordinarily used in more than one
jurisdiction and which is situated in the Province of Québec as well as on the
incorporeal movable property of MBI established by a title in bearer form and
which is situated in the Province of Québec, but only as security for the
obligations of MBI to the Collateral Agent as the holder of the MBI Bond and as
security for the obligations of MBI to the Trustee under the MBI Indenture.

 

4.20                         The MBI
Indenture has been registered in all places in the Province of Quebec as are
currently necessary to render same opposable to third parties.

 

4.21                         The MBI
Bond has been issued in conformity with the provisions of the MBI Indenture,
has been certified by the Trustee and entitles the Collateral Agent, for and on
behalf of the Beneficiaries, to the benefit of the security created under the
MBI Indenture.

 

4.22                         The MBI
Bond has been deposited with the Collateral Agent as valid security for the
Secured Obligations (as defined in the MBI Pledge Agreement).

 

Smurfit-MBI:

 

4.23                         Smurfit-MBI
is registered under and is not in violation of Sections 26 and 38 of the
Publicity Act.

 

4.24                         The
execution and delivery by MBI, in its capacity as general partner of
Smurfit-MBI, of the Québec Documents to which Smurfit-MBI is a party and the
consummation of the transactions contemplated therein do not contravene any law
of the Province of Québec or any law of Canada applicable therein, where such
contravention would affect the enforceability of such Québec Documents.

 

4.25                         Each of
the Québec Documents to which Smurfit-MBI is a party respectively constitutes a
legal, valid and binding obligation of each of Smurfit-MBI and MBI, in its
capacity as general partner of Smurfit-MBI, enforceable against each of them in
accordance with its terms.

 

4.26                         The
Smurfit-MBI Indenture creates a valid hypothec without delivery (except in
respect of the Excluded Property as defined therein) in the aggregate principal
amount of Cdn.$1,500,000,000 in favour of the Trustee, as fondé de
pouvoir for the Bondholders (as defined therein), on (i) the
Immovable Properties of Smurfit-MBI located in the Province of Québec and on
the rentals and revenues which are 

 

11

 

or may be produced by such Immovable Properties, as
well as the proceeds of any insurance covering losses of revenues and rentals
deriving from said Immovable Properties and on (ii) the corporeal movable
property of Smurfit-MBI which is not ordinarily used in more than one
jurisdiction and which is situated in the Province of Québec as well as on the
incorporeal movable property of Smurfit-MBI established by a title in bearer
form and which is situated in the Province of Québec, but only as security for
the obligations of Smurfit-MBI to the Collateral Agent as the holder of the
Smurfit-MBI Bond and as security for the obligations of Smurfit-MBI to the
Trustee under the Smurfit-MBI Indenture.

 

4.27                         The
Smurfit-MBI Indenture has been registered in all places in the Province of
Québec as are currently necessary to render same opposable to third parties.

 

4.28                         The
Smurfit-MBI Bond has been issued in conformity with the provisions of the
Smurfit-MBI Indenture, has been certified by the Trustee and entitles the
Collateral Agent, for and on behalf of the Beneficiaries, to the benefit of the
security created under the Smurfit-MBI Indenture.

 

4.29                         The
Smurfit-MBI Bond has been deposited with the Collateral Agent as valid security
for the Secured Obligations (as defined in the Smurfit-MBI Pledge Agreement).

 

Other Opinions:

 

4.30                         No
consent, approval or authorization of, or other action by, and no notice or
filing with, any governmental entity having jurisdiction in the Province of
Québec is required under the laws of the Province of Québec or the federal laws
of Canada applicable therein in connection with the execution and delivery of
and the performance by SSC Canada, Francobec, MBI, in its own capacity and in
its capacity as general partner of Smurfit-MBI, and Smurfit-MBI respectively of
their obligations under those of the Québec Documents to which they are a
party, except as have been obtained or effected and which are in full force and
effect.

 

4.31                         A court
of competent jurisdiction in the Province of Québec (a “Québec Court”)
would recognize the choice of the law of the State of New York and would
apply the internal laws of the State of New York in any action seeking to
enforce the Credit Agreement (except in respect of any security interest
purported to be created therein); provided that, (a) in matters of
procedure the laws of the Province of Québec will be applied, (b) those rules of
law in force in the Province of Québec which are applicable by reason of their
particular object will be applied, and (c) the provisions of the law of
the State of New York will not be applied if such application would be
manifestly inconsistent with public order as understood in international
relations.  We have no reason to believe
that a Québec Court would refuse to apply the internal laws of the State of
New York in an action seeking to enforce the Credit Agreement.

 

12

 

4.32                         Each of
the Beneficiaries has the capacity to sue as plaintiff in a Québec Court for
the enforcement of its rights under the Credit Agreement against SSC Canada and
such access to Québec Courts is not subject to any conditions which are not
applicable to residents of the Province of Québec or to a company incorporated
in Québec except that individuals or corporations who are not resident in the
Province of Québec may be required to post security for the costs of litigation
initiated by them.  A Québec Court will
retain discretion to decline to hear such action if it is contrary to public
order for it to do so, or if it is not the proper forum to hear such an action,
or if concurrent proceedings are properly being brought elsewhere.

 

4.33                         The laws
of the Province of Québec and the federal laws of Canada applicable therein
permit a motion to be brought in a Québec Court for recognition and enforcement
of any final and enforceable judgment in personam
awarding a sum of money of a court of the State of New York in respect of
the Credit Agreement that is not impeachable as void or voidable under the
internal laws of the State of New York if (a) the court rendering
such judgment has jurisdiction over the judgment debtor, as determined by the Civil Code of Québec (the “Civil Code”);
(b) such judgment was not rendered in contravention of the fundamental
principles of procedure or contrary to any order made by the Attorney General
of Canada under the Foreign Extraterritorial
Measures Act (Canada) or the Competition Act
(Canada); (c) there were no proceedings pending in the Province of Québec
and no judgment rendered in the Province of Québec or in a third country
meeting the necessary conditions for recognition in the Province of Québec
between the same parties, based on the same facts and having the same object; (d) the
outcome of such judgment is not manifestly inconsistent with public order as
understood in international relations; (e) such judgment does not enforce
obligations arising from the taxation laws of a foreign country, unless there
is reciprocity; and (f) the motion for recognition and declaration for
enforcement is not prescribed.

 

Further, if the judgment was rendered by default, the
plaintiff must prove that the act of procedure initiating the proceedings was
duly served on the defendant, and a Québec Court may refuse recognition or
enforcement of the judgment if the defendant proves that, owing to the
circumstances, it was unable to learn of the act of procedure or it was not
given sufficient time to offer its defense.

 

If any such motion is brought before a Québec Court,
such Québec Court may only consider whether the conditions set out above in
this paragraph 4.33 were met and may not consider the merits of the judgment.

 

We are not aware of any reason under the laws of the
Province of Québec and the federal laws of Canada applicable therein, upon the
grounds of public order as understood in international relations, for avoiding
the recognition and enforcement of any final and enforceable judgment in personam awarding a sum of money of a court of the State of
New York in respect of the Credit Agreement.

 

13

 

4.34                         The
submission by SSC Canada in the Credit Agreement to the exclusive jurisdiction
of any state or federal court located in the State of New York would be
recognized by Québec Courts as a valid submission to the jurisdiction of such
courts, if such submission is valid under the laws of the State of New York.

 

5.                                     Qualifications

 

The foregoing opinions are subject to the following
qualifications and limitations:

 

5.1                               The
enforceability of the provisions of each of the Documents is subject to
applicable laws relating to bankruptcy, insolvency, reorganization and other
similar laws affecting creditors’ rights generally and to the fact that
specific performance and other equitable remedies are subject to the discretion
of a court of competent jurisdiction before which such equitable remedies are
sought and to the power of a court to stay proceedings before it, to stay the
execution of judgments and to grant relief against forfeiture.

 

5.2                               The
enforceability of each of the Documents is subject to equitable principles and
remedies as such principles are construed and applied by the courts of the
Province of Québec.  These principles
include, without limitation:

 

5.2.1                      limitations
upon the rights of the Beneficiaries to receive immediate payment of amounts
stated to be payable on demand;

 

5.2.2                      limitations
upon the rights of the party to any Document to enforce the same on the basis
of a purely technical or immaterial default;

 

5.2.3                      limitations
on provisions expressly or by implication waiving rights or defences which are
of public order;

 

5.2.4                      the
discretion that a court may reserve to itself to decline to hear an action if
it is contrary to public order for it to do so or to decline to order SSC
Canada, Francobec, MBI, in its own capacity or in its capacity as general
partner of Smurfit-MBL or Smurfit-MBI to perform covenants;

 

5.2.5                      court
decisions limiting the rights of secured creditors to forcibly realize on their
security without appropriate judicial proceedings;

 

5.2.6                      limitations
which may be imposed by law on the effectiveness of the terms exculpating a party
from a liability or indemnifying a party in respect of their breach of duty
otherwise owed by it to another as well as on the effectiveness of rights of
indemnity or of contribution;

 

5.2.7                      judicial
inquiry into the merits of any claim by an aggrieved party in spite of any
provision of any document to the effect that certain calculations,
determinations or certificates will be conclusive and binding and, in addition,
the ineffectiveness of such provisions if such calculations,

 

14

 

determinations or
certificates are fraudulent or erroneous on their face; and

 

5.2.8        general
principles whereby a party may not be bound to fulfill obligations which are
indeterminate or indeterminable.

 

5.3           We express no opinion with respect to:

 

5.3.1        the
legality, validity, binding nature or enforceability of the clauses of any of
the Indentures which purport to enable a creditor to recover any cost of
enforcement or fees which would not be costs incurred or costs within the
meaning of Articles 2667 or 2762 respectively of the Civil Code;

 

5.3.2        the
legality, validity, binding nature or enforceability of the provisions of each
of the Documents purporting to waive the application of effective provisions
which are of public order in applicable laws;

 

5.3.3        the
legality, validity, binding nature or enforceability of any provision of the
Québec Documents which suggests or provides that modifications, amendments or
waivers thereto that are not in writing will not be effective;

 

5.3.4        the
provisions for the payment of interest under the Credit Agreement which may not
be enforceable if those provisions provide for the receipt of interest at a “criminal
rate” within the meaning of Section 347 of the Criminal
Code (Canada);

 

5.3.5        the
enforceability of any provision of the Credit Agreement relating to default
interest by reason of the provisions of Section 8 of the Interest Act (Canada) which stipulates that no fine, penalty
or rate of interest may be exacted on any arrears of principal or interest
secured by hypothec on immovable property that has the effect of increasing the
charge on the arrears beyond the rate of interest payable on principal not in
arrears;

 

5.3.6        the
irrevocable nature of any power of attorney provided for in the Québec
Documents;

 

5.3.7        the
legality, validity, binding nature or enforceability of any security created
under the Indentures against corporeal movable property of any of SSC Canada,
Francobec, MBI or Smurfit-MBI ordinarily used in more than one jurisdiction and
incorporeal movable property of any of SSC Canada, Francobec, MBI or
Smurfit-MBI (other the incorporeal movable property thereof established by a
title in bearer form which is situated in the Province of Québec);

 

5.3.8        except
as provided herein in paragraphs 2.10, 5.7, 5.8, 5.9 and 5.20, any measure or
act which may become necessary in the future to ensure the maintenance,
conservation or validity of the security created under the 

 

15

 

Indentures, the Fledge Agreements and the 427
Documents or of the rights of ownership of SSC Canada, Francobec, MBI or
Smurfit-MBI in any of its property;

 

5.3.9        the
legality, validity, binding nature or enforceability of the security created
under the Indentures on debts, claims, demands and other rights which by their
terms are not assignable or that require consent for assignment where such
consent has not yet been obtained; and

 

5.3.10      the
legality, validity, binding nature or enforceability of any security interest
(as opposed to hypothec) purported to be created in any of the Indentures.

 

5.4           If any provision of any of the Documents
is held to be null, without effect or deemed unwritten, such nullity,
ineffectiveness or presumption would not render such document invalid in other
respects unless it is apparent that such Document may be considered only as an
indivisible whole.

 

5.5           The opinions expressed herein as to the
validity of any charge or security created under any of the Québec Documents
are based on the assumption that the property, rights and assets charged
thereunder form part or will form part of the property of the relevant grantor
and that such property may be charged under such Québec Document and no opinion
is expressed herein as to the title to property or as to the existence or
non-existence of any other charges or encumbrances ranking or purporting to
rank prior to or pari passu with charges or
security created under such Québec Documents, except as set forth in our title
opinions dated on or about the date hereof and relating to those of the
Immovable Properties covered thereby.

 

5.6           To the extent that the Collateral (as
such term is defined in each of the Indentures) charged in any of the
Indentures includes (i) property governed by the provisions of an Act of
the Parliament of Canada, including, without limitation, any vessel subject to
the Shipping Act (Canada) or any rolling
stock subject to the Canada Transportation Act,
or (ii) patents, trademarks, copyrights or other intellectual property,
registration of the Indentures in the Register may not be effective to fully
preserve or protect the rights of the Trustee in respect to the security
created thereby unless the relevant Indenture or a proper notice thereof is
filed with the appropriate federal registry or registrar or with the
appropriate patent, trademark or copyright registrars, as the case may be.

 

5.7           Each of the Indentures will be
extinguished, in respect of the movable property charged thereunder, not later
than 10 years after the date of the initial registration thereof in the
Register or of a notice renewing such initial registration and will be
extinguished, in respect of the immovable property charged thereunder, not
later than thirty (30) years after the date of the initial registration thereof
in the appropriate land register or of a notice renewing such initial
registration.

 

16

 

5.8           Pursuant to Article 3003 of the
Civil Code, to the extent that any of the rights of the Trustee in respect of
the Indentures, or of the Collateral Agent in respect of the Pledge Agreements,
as the case may be, are assigned to any third party, such assignment could not
be set up against any subsequent assignee who has observed the formalities
below, being the publication of such assignment in the Register as well as in
the appropriate land register and the delivery of certified statements of such
registrations to SSC Canada, Francobec, MW or Smurfit-MBI, as the case may be.

 

5.9           The security created under the Indentures
with respect to immovable property of SSC Canada, Francobec, MBI or Smurfit-MBI
respectively, located within the Province of Québec and acquired by SSC Canada,
Francobec, MBI or Smurfit-MBI respectively after the date of execution of the
Indenture to which each is a party is subject to the registration of a notice
pursuant to Article 2949 of the Civil Code in the land register kept at
the registration division where the immovable property subsequently acquired is
situated and such security is further subject to the registration of the
appropriate Indenture in the same registration division, if such registration
has not previously been made.

 

5.10         With respect to hypothecary claims of SSC
Canada, Francobec, MBI or Smurfit-MBI, as the case may be, situated in the
Province of Québec, the charges created on such claims by the relevant
Indenture are subject to compliance with the provisions of Article 2712 of
the Civil Code.

 

5.11         The charges created under the Indentures
in connection with amounts owing to SSC Canada, Francobec, MBI or Smurfit-MBI,
as the case may be, by Her Majesty the Queen in right of Canada generally and
by Her Majesty the Queen in right of the Province of Québec in respect of a
fiscal law as a refund, may not be opposable under the provisions of the Financial Administration Act (Canada), subject to the
express exceptions therein provided, and are not opposable by virtue of An Act respecting the Ministére du Revenu (Québec).

 

5.12         Under Articles 1641, 1645 and 2710 of the
Civil Code, the hypothecation to the Trustee under the Indentures of debts
owing to SSC Canada, Francobec, MBI or Smurfit-MBI, as the case may be, can
only be set up against the debtors of such debts or the guarantors thereof if
such debtors or guarantors, as the case may be, have acquiesced to the
hypothecation or have received a copy or a pertinent extract of the relevant
Indenture or any other evidence of the hypothecation which may be set up
against SSC Canada, Francobec, MBI or Smurfit-MBI, as the case may be, or in
the event a debtor or a guarantor cannot be found in the Province of Québec by
appropriate publication in such Province.

 

5.13         If, prior to the relevant Indenture being
set up against any account debtor of SSC Canada, Francobec, MBI or Smurfit-MBI,
as the case may be, who has not acquiesced thereto, any such account debtor was
able to set off amounts owing to SSC Canada, Francobec, MBI or Smurfit-MBI, as
the case may 

 

17

 

be, against any amounts owing by SSC Canada,
Francobec, MBI or Smurfit-MBI, as the case may be, to said account debtor, the
same grounds may be set up against the Trustee in defense to a claim for
payment of amounts by such account debtor.

 

5.14         Pursuant to Article 2676 of the
Civil Code, the hypothecs on the universality of claims created under the
relevant Indenture would not extend to the proceeds of any sale of the property
of SSC Canada, Francobec, MBI or Smurfit-MBI, as the case may be, (other than
the Collateral (as such term is defined in such Indenture) made by a third
person exercising its right) nor would it extend to a claim under an insurance
contract on any property of SSC Canada, Francobec, MBI or Smurfit-MBI, as the
case may be, (other than said Collateral).

 

5.15         The Indentures may secure interest only
for the current year and the three preceding years under Article 2959 of
the Civil Code.

 

5.16         In accordance with Article 3065 of
the Civil Code, the Trustee and the Collateral Agent may not, upon acquittance
of a debt, claim an amount in respect of such acquittance in excess of an
amount sufficient to pay the registration fee and cost of sending the
application for cancellation to the registry office notwithstanding any
stipulation to the contrary.

 

5.17         The opposability of any of the Indentures
on rights resulting from contracts for insurance of persons is subject to the
insurers receiving notice thereof as required by Article 2461 of the Civil
Code and if the Trustee is not named insured on damage insurance policies of
the relevant grantor in respect of such grantor’s property in the Province of
Québec, payments made in good faith by an insurer before notification to any
charge under the relevant Indenture may discharge the insurer of any liability
for payment as set out in Article 2497 of the Civil Code.

 

5.18         The enforceability of certain provisions
of the Indentures and of the Pledge Agreements relating to enforcement and
realization proceedings and remedies may be limited by the provisions of the
Civil Code and of the Code of Civil Procedure
(Québec) which are of public order and the enforceability of certain provisions
of the 427 Documents relating to enforcement and realization proceedings and
remedies may also be limited by provisions of law which are of public order.

 

5.19         The rights intended to be created under
the SSC Canada Indenture on the property, rights, titles and interests in the
forest management agreement referred to in Section 2(s) of the SSC
Canada Indenture (the “Forest Rights”)
are restricted by the provisions of the Forest Act
(Québec) (the “Act”), including, without limiting
the generality of the foregoing:

 

(i)            section 85 of the Act with respect to the
issuance on an annual basis, of forest management permits;

 

(ii)           section 165 of the Act with respect to
the annual renewal of the wood processing plant operating permits;

 

18

 

(iii)          section
77 of the Act with respect to the right of the Minister responsible for the
administration of the Act (the “Minister”) to
review, every five years, the residual volume of round timber from the public
domain that has been allocated, the area of the forest management unit and the
annual yield indicated in the Forest Agreements;

 

(iv)          sections 79, 79.1 and 80.1 of the Act
with respect to the obligation of a timber supply and forest management
agreement holder to comply with the special forest management plan referred to
in said section 79, said plan being prepared and administered by the Minister
for such period and on such conditions as he may determine to ensure wood
salvage in a forest area where substantial destruction has been caused to
timber stands by natural disasters or in a forest area required for a
hydroelectric development;

 

(v)           section 81 of the Act with respect to the
right of the Minister to review the allocated volume and the management area
covered as stipulated in a timber supply and forest management agreement in
order to take into account the effects of a change in control of a legal person
or partnership holding such an agreement on said agreement holder’s
requirements;

 

(vi)          sections 81.1 and 81.2 of the Act with
respect to the right of the Minister to review the volume allocated and the
management area covered under a timber supply and forest management agreement
where there is a change in the requirements of said holder’s wood processing
plant as a result of the final discontinuance of part of the operations of the
plant or to ensure the optimal use of the timber;

 

(vii)         sections
82 and 84 of the Act with respect to the right of the Minister to terminate an
agreement in the circumstances referred to in said sections; and

 

(viii)        section
170 of the Act with respect to the right of the Minister to suspend or cancel a
wood processing plant operating permit where the holder fails to comply with
the provisions of Title IV of the Act

 

and are also
subject to the insufficiency of the provisions of the Act in connection with
the registration of immovable real rights vested in a timber supply and forest
management agreement holder by a forest management permit.

 

Furthermore, neither the rights which the Trustee is
intended to have vested in it under the terms of the SSC Canada Indenture or
any applicable law with respect to the Forest Rights, nor the Forest Rights
themselves, (y) may be transferable to a third party where the Trustee
exercises any recourse, whether or not same is hypothecary in nature, nor any
right under Article 11 of the SSC Canada Indenture, nor (z) may be
the subject of a hypothecary recourse of taking in 

 

19

 

payment.  Where
the Collateral (as defined in the SSC Canada Indenture) is either surrendered
to the Trustee, in the exercise of the hypothecary recourses granted to it by
any provision of any law, or the Trustee, takes possession for purposes of
administration, in order to prevent any Forest Rights from lapsing, the Trustee
shall be required to perform the obligations of a timber supply and forest
management agreement holder, of a holder of a forest management permit and of a
holder of a wood processing plant operating permit pursuant to the Act.

 

5.20         The registration of a notice of intention
of granting a security under Section 427 of the Bank Act
(Canada) is valid up to a 5-year period from the date such registration is made;
however it may be renewed before the expiration of such delay.

 

5.21         The Currency Act
(Canada) precludes a court in Canada from giving judgment in any currency other
than lawful money of Canada, and in any action brought before a Québec Court to
claim any amount denominated in any currency other than lawful money of Canada
or to recognize and enforce a judgment rendered out of Canada in any currency
other than lawful money of Canada, such other currency would be converted to
lawful money of Canada at the applicable rate of exchange prevailing on the day
the decision became enforceable at the place where it was rendered.  The determination of interest payable under a
foreign decision is governed by the law of the authority that rendered the
decision until its conversion.

 

5.22         We have not verified whether any
provisions of the Credit Agreement violate or could violate any provision of
public policy or public order of any laws other than the laws of the Province
of Québec and the federal laws of Canada applicable therein; accordingly, we
express no opinion as to whether a Québec Court might give effect to any
mandatory provision of the laws of another jurisdiction in accordance with Article 3079
of the Civil Code or whether such provisions could have an effect on the
enforceability of the Credit Agreement.

 

5.23         In cases of emergency or serious
inconvenience, the law of the court seized of the matter may be applied
provisionally to ensure the protection of a person or his property.

 

5.24         Where legitimate and manifestly
preponderant interests so require, effect may be given to a mandatory provision
of the law of another country or state with which the situation is closely
connected.  In deciding to do so,
consideration is to be given by the Québec Court to the purpose of the
provision and the consequences of its application.

 

5.25         Even though a Québec Court has
jurisdiction to hear a dispute, it may exceptionally and on an application by a
party, decline jurisdiction if it considers that the authorities of another
country are in a better position to decide.

 

20

 

5.26         Where the Québec Court applies the laws
of a foreign jurisdiction, the laws so applied will be the internal laws of
that jurisdiction, and not its rules governing conflict of laws.

 

5.27         A Québec Court will apply the rules of
evidence of the jurisdiction whose laws are applicable to the merits of the
dispute, but will apply the rules of evidence of the Province of Québec
where those rules are more favourable to the establishment of evidence.

 

5.28         On the application of a party, a Québec
Court may stay its ruling on an action brought before it if another action,
between the same parties, based on the same facts and having the same object is
pending before a foreign authority, provided that the latter action can result
in a decision which may be recognized in the Province of Québec, or if such a
decision has already been rendered by a foreign authority.

 

5.29         Even though a Québec Court does not have
jurisdiction to hear a dispute, it may elect to hear it if the dispute has
sufficient connection with the Province of Québec, where proceedings cannot
possibly be instituted outside of the Province of Québec or where the
institution of such proceedings outside of the Province of Québec cannot
reasonably be required.

 

5.30         A Québec Court may order provisional or
conservatory measures even if it has no jurisdiction over the merits of a
dispute.

 

5.31         Where a Québec Court has jurisdiction to rule on
a principal demand, it also has jurisdiction to rule on an incidental
demand or a cross demand in the same action.

 

6.             Limitation

 

This opinion letter is limited to the mailers stated
herein and is addressed to you solely for the purposes of the transactions
contemplated by the Documents and solely for your own use and benefit in
respect of such transactions and may not be disclosed to or relied upon by any
other person or for any other purpose without our prior written consent.  Furthermore, the respective successors and
permitted assigns of the Beneficiaries, as the case may be, may rely on this
opinion letter, which may be disclosed thereto and used by them, without any
further consent of the undersigned.

 

	
   

  	
  Yours very truly,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STIKEMAN ELLIOTT LLP

  

 

21

 

STIKEMAN ELLIOTT

 

Stikeman Elliot LLP Barristers &
Solicitors

 

1155 René-Lévesque Blvd. West. 40th Floor. Montreal,
Quebec, Canada H3B 3V2

Tel:  (514)
397-3000  Fax:  (514) 397-3222  www.stikerman.com

 

November 1, 2004

 

JPMorgan Chase Bank,

as Senior Agent, Deposit Account Agent and

Deposit Funded Facility Agent

 

-and-

 

Deutsche Bank Trust
Company Americas,

as Senior Agent Administrative Agent,

Swingline Lender, Collateral Agent and

Revolving Facility Facing Agent

 

-and-

 

Deutsche Bank AG,

as Canadian Administrative Agent

and Revolving (Canadian) Facility Pacing Agent

 

-and-

 

the Tranche C Lenders,
the Revolving (Canadian Lenders) and the Incremental Term Lenders lending to
SSC Canada (as defined below), as defined in the Credit Agreement referenced
below

 

Dear Sirs/Mesdames:

 

	
  Re:

  	
  Credit agreement (the “Credit
  Agreement”) made as of November 1, 2004 between Smurfit-Stone Container
  Enterprises, Inc. (“SSCE”), Smurfit-Stone Container Canada Inc., (“SSC
  Canada”, and together with SSCE, the “Borrowers”), Smurfit-Stone Container
  Corporation, as Guarantor, the Lenders party thereto, JPMorgan Chase Bank, as
  Senior Agent, Deposit Account Agent and Deposit Funded Facility Facing Agent,
  Deutsche Bank Trust Company Americas, as Senior Agent, Administrative Agent,
  Swingline Lender, Collateral Agent and

  	
  MONTREAL

   

  TORONTO

   

  OTTAWA

   

  CALGARY

   

  VANCOUVER

   

  NEWYORK

   

  LONDON

   

  HONG
  KONG

   

  SYDNEY

  

 

 

Revolving Facility Facing Agent and Deutsche Bank
AG, as Canadian Administrative Agent and Revolving (Canadian) Facility Facing
Agent

 

We have acted as Canadian tax counsel for SSC Canada
in connection with the Credit Agreement.

 

Pursuant to Section 5.02(a)(iv) of the
Credit Agreement, we have been requested to opine upon possible withholding tax
obligations under the Income Tax Act
(Canada) (the “Tax Act”) with respect to the Tranche C Loans but excluding any
Incremental Term Loans in respect of which Incremental Term Loans we express no
opinion.  Capitalized terms used in this
opinion which we have not defined have the meanings given to them in the Credit
Agreement.

 

In expressing our opinion set out below, we have
examined a copy of the executed Credit Agreement.

 

Our opinion set out below takes into account the
current provisions of the Tax Act and the regulations thereunder, all proposed
amendments to the Tax Act and the regulations that have been publicly announced
by or on behalf of the Minister of Finance prior to the date hereof, and our
understanding of the current published administrative practices and policies of
the Canada Revenue Agency.  The opinion
does not anticipate or take into account any other change in law or regulations
or administrative practice, whether by judicial, legislative or governmental
action.  Any such change could affect the
validity of this opinion.

 

In rendering our opinion expressed below, we have
assumed that:

 

(i)            SSC Canada deals, and will at all
relevant times continue to deal, with the Tranche C Lenders and the Agents at
arm’s length for the purposes of the Tax Act;

 

(ii)           all Events of Default under the Credit
Agreement are (a) commercially reasonable as they have been negotiated and
agreed to amongst the Borrowers, the Agents and the Lenders for bona fide commercial reasons, (b) beyond the
control of the Tranche C Lenders and the Agents, and (c) not contrived;

 

(iii)          the
restrictions contained in paragraphs (c) and (d) of the definition of
“Change in Control” in Section 1.01 of the Credit Agreement were
negotiated and agreed to amongst the Borrowers, the Agents and the Lenders for bona fide commercial reasons, are not contrived 

 

2

 

restrictions designed to circumvent the purposes of
subparagraph 212(1)(b)(vii) of the Income Tax Act
(Canada), and are required by the Agents and the Lenders to ensure that each of
the Borrowers remain part of a corporate group wholly-owned by Smurfit-Stone
Container Corporation;

 

(iv)          the terms and conditions of the Credit
Agreement reflect the full agreement amongst the Borrowers, the Lenders and the
Agents with respect to the Tranche C Loans. 
There are no ancillary agreements, written or verbal, which could
reasonably be expected to affect the terms and conditions of the Tranche C
Loans as set out in the Credit Agreement or the respective rights and
obligations set out therein of SSC Canada and/or the Tranche C Lenders and the
Agents;

 

(v)           the only advances made to SSC Canada with
respect to the Tranche C Loans were made on the Closing Date; and

 

(vi)          any Assignment and Acceptance entered into
by a Tranche C Lender and an assignee under Section 11.04 of the Credit
Agreement will not constitute a novation of any of the Tranche C Loans
under the governing law of the Credit Agreement and the Assignment and
Acceptance.

 

Based upon and relying upon the foregoing, we are of
the opinion that SSC Canada will not be required to withhold tax under Part XIII
of the Tax Act in respect of any amount that is paid or credited to a Tranche C
Lender or the Canadian Administrative Agent with respect to the Tranche C Loans
under the Credit Agreement (other than Incremental Term Loans) as, on account
or in lieu of payment of, or in satisfaction of, interest on the outstanding
principal amount of such Tranche C Loans advanced under the Credit Agreement.

 

This opinion is furnished solely for the benefit of
the addressees hereof in connection with the matters contemplated by the Credit
Agreement and may not be circulated to, or relied upon by, any other person or
used for any other purpose.

 

	
   

  	
  Yours very truly,

  
	
   

  	
   

  
	
   

  	
  STIKEMAN ELLIOTT LLP

  

 

3

 

	
  Suite 900

  	
   

  	
  Correspondence

  	
   

  	
  Telephone:

  	
  902.420.3200

  
	
  Purdy’s Wharf Tower One

  	
   

  	
  P.O. Box 997

  	
   

  	
  Fax:

  	
  902.420.1417

  
	
  1959 Upper Water Street

  	
   

  	
  Halifax, NS

  	
   

  	
  halifax@smss.com

  
	
  Halifax, NS

  	
   

  	
  Canada B3J 2X2

  	
   

  	
  www.smss.com

  
	
  Canada B3J 3N2

  	
   

  	
   

  	
   

  	
   

  

 

November 1, 2004

 

To the Addressees set out in Schedule “A”

 

Dear Sirs:

 

Re:          Smurfit-Stone Container Canada Inc.

 

We have acted as counsel
in the Provinces of New Brunswick and Nova Scotia to each of Smurfit-Stone
Container Canada Inc./Emballages Smurfit-Stone Canada Inc. (“SSC Canada”),
Francobec Company/Société Francobec (“Francobec”), 3083527 Nova Scotia Company
(“3083527”), and MBI Limited/Limitée (“MBI” together with SSC Canada, Francobec
and 3083527, the “Maritime Parties”) in connection with a credit agreement (the
“Credit Agreement”) entered into and executed among Smurfit-Stone Container
Enterprises, Inc. (“Enterprises”) and SSC Canada, as borrowers,
Smurfit-Stone Container Corporation (“Stone”), as a guarantor, the Lenders from
time to time party thereto, JPMorgan Chase Bank, as Senior Agent, Deposit
Account Agent and Deposit Funded Facility Facing Agent, Deutsche Bank Trust
Company Americas, as Senior Agent, Administrative Agent, Collateral Agent (in such
capacity (the “Collateral Agent”), Swingline Lender and Revolving Facility
Facing Agent and Deutsche Bank AG, as Canadian Administrative Agent (in such
capacity the “Canadian Administrative Agent”) and Revolving (Canadian) Facility
Facing Agent (all capitalized terms used but not otherwise defined herein shall
have the respective meanings ascribed thereto in the Credit Agreement).

 

In that connection, we
have examined executed copies of the following documents (collectively, the “Documents”):

 

1.             Credit Agreement;

 

2.             Security Agreement (Canadian) made by SSC
Canada in favour of the Collateral Agent dated November 1, 2004 (the “SSC
Canada Security Agreement”);

 

3.             Pledge Agreement (Canadian) made by SSC
Canada in favour of the Collateral Agent dated November 1, 2004 (the “SSC
Pledge Agreement”);

 

4.             Notices of Intention regarding Bank Act Security (the “Bank Act Security”) dated October 27,
2004, Agreement as to Loans and Advances and Security under Section 427 of
the Bank Act, Application for Credit and Promise
to Give Security under Section 427 of the Bank Act
(Canada) and Special Security in Respect of Specified Property or classes of
Property in Section 427 of the Bank Act
(Canada) each granted by SSC Canada in favour of the Canadian Agent and dated November 1,
2004 (collectively, the “SSC Canada Bank Act Agreements”);

 

5.             SCC Canada Hypothec, SSC Canada Bond
Certificate, SSC Canada Bond Pledge Agreement, SSC Canada Bond Delivery Order
and Custody Agreement each made by SSC Canada in favour

 

 

of the Collateral Agent
and dated October 24, 2004 (collectively, the “SSC Canada Quebec Security
Agreements”);

 

6.                                       Demand Debenture, Debenture Delivery
Agreement and Assignment of Rents each made by SSC Canada in favour of the
Collateral Agent and dated October 27, 2004 (collectively, the “SSC Canada
Real Property Agreements” together with the SSC Canada Security Agreement, the
ULC Pledge Agreement, SSC Canada Bank Act Agreements and the SSC Canada Quebec
Security Agreements, the “SSC Canada Agreements”);

 

7.                                       SSC Canada Subsidiary Guarantee Agreement
(Canadian) made by MBI in its capacity as general partner of Smurfit-MBI (“Smurfit-MBI”)
in favour of the Collateral Agent dated November 1, 2004 (the “Smurfit-MBI
Guarantee”);

 

8.                                       Security Agreement (Canadian) made by MBI
in its capacity as general partner of Smurfit-M8I in favour of the Collateral
Agent dated November 1, 2004 (the “Smurfit-MBI Security Agreement”);

 

9.                                       Smurfit-MBI Hypothec dated October 24,
2004, Smurfit-MBI Bond Certificate, Smurfit-MBI Bond Pledge Agreement and the
Smurfit-MBI Bond Delivery Order made by MBI in its capacity as general partner
of Smurfit-MBI (“Smurfit-MBI”) in favour of the Collateral Agent dated November 1,
2004 (collectively, the “Smurfit-MBI Quebec Security Agreements”);

 

10.                                 Custody Agreement in respect of the SSC
Canada Bond, the Smurfit-MBI Bond, the Francobec Bond and the MBI Bond made by
SSC Canada in favour of the Collateral Agent dated November 1, 2004 (the “Custody
Agreement”);

 

11.                                 Main Demand Debenture from MBI in its
capacity as general partner of Smurfit-MBI in favour of the Collateral Agent,
Main Debenture Delivery Agreement from MBI in its capacity as general partner
of Smurfit-MBI, Main Assignment of Rents from MBI in its capacity as general
partner of Smurfit-MBI in favour of the Collateral Agent each dated October 26,
2004 (collectively, the “Smurfit-MBI Real Property Agreements” together with
the Smurfit-MBI Guarantee, the Smurfit-MBI Security Agreement, the Smurfit-MBI
Quebec Security Agreements and the Custody Agreement, the “Smurfit-MBI
Agreements”);

 

12.                                 Francobec Company Guarantee Agreement
made by Francobec in favour of the Collateral Agent dated November 1, 2004
(the “Francobec Guarantee”);

 

13.                                 Security Agreement (Canadian) made by
Francobec in favour of the Collateral Agent dated November 1, 2004 (the “Francobec
Security Agreement”);

 

14.                                 Francobec Hypothec dated October 24,
2004, Francobec Bond Certificate, Francobec Bond Pledge Agreement and Francobec
Bond Delivery Order each from Francobec in favour of the Collateral Agent and
dated November 1, 2004 (collectively, the “Francobec Quebec Security
Agreements” together with the Francobec Guarantee and the Francobec Security
Agreement, the “Francobec Agreements”);

 

15.                                 SSC Canada Subsidiary Guarantee Agreement
made by MBI in favour of the Collateral Agent dated November 1, 2004 (the “MBI
Guarantee”);

 

2

 

16.                                 Security Agreement (Canadian) made by MBI
in favour of the Collateral Agent dated November 1, 2004 (the “MBI
Security Agreement”);

 

17.                                 MBI Pledge Agreement (Canadian) from MBI
in favour of the Collateral Agent dated November 1, 2004 (the “MBI Pledge
Agreement”);

 

18,                                 Ontario Demand Debenture, Manitoba Demand
Debenture and Saskatchewan Demand Debenture from MBI in favour of the
Collateral Agent, Alberta Demand Debenture from MBI in favour of the Canadian
Administrative Agent, Ontario Debenture Delivery Agreement, Manitoba Debenture
Delivery Agreement and Saskatchewan Debenture Delivery Agreement from MBI in
favour of the Collateral Agent, Alberta Debenture Delivery Agreement from MBI
in favour of the Canadian Administrative Agent and Ontario Assignment of Rents,
Manitoba Assignment of Rents and Saskatchewan Assignment of Rents from MBI in
favour of the Collateral Agent and Alberta Assignment of Rents from MBI in
favour of the Canadian Administrative Agent each dated October 26, 2004
(the “MBI Real Property Agreements”);

 

19.                                 MBI Hypothec, MBI Bond Certificate, MBI
Bond Pledge Agreement and MBI Bond Delivery Order each from MBI in favour of
the Collateral Agent and dated November 1, 2004 (collectively, the “MBI
Quebec Security Agreements” together with the MBI Guarantee, the MBI Security
Agreement, the MBI Real Property Agreements and the MBI Pledge Agreement, the “MBI
Agreements”);

 

20.                                 SSC Canada Subsidiary Guarantee Agreement
made by 3083527 in favour of the Collateral Agent dated November 1, 2004
(the “3083527 Guarantee”);

 

21.                                 Security Agreement (Canadian) made by
3083527 in favour of the Collateral Agent dated November 1, 2004 (the “3083527
Security Agreement”);

 

22.                                 Pledge Agreement (Canadian) made by
3083527 in favour of the Collateral Agent dated November 1, 2004 (the “3083527
Pledge Agreement” and together with the 3083527 Guarantee and the 3083527 Security
Agreement, the “3083527 Agreements”); and

 

23.                                 the Guarantee and Collateral Agreement
(U.S.) dated November 1, 2004 by and among the Loan Parties and the
Collateral Agent (the “US Collateral Agreement”).

 

The SSC Canada Security
Agreement, the Smurfit-MBI Security Agreement, the Francobec Security
Agreement, the MBI Security Agreement the 3083527 Security Agreement, the SSC
Pledge Agreement, the MBI Pledge Agreement, the 3083527 Pledge Agreement, the
SSC Canada Bank Act Agreements and the US Collateral Agreement are collectively
referred to herein as the “Security Agreements”.

 

The Documents referred to
above in paragraphs 2, 13 and 22 are collectively referred to herein as the “Nova
Scotia Law Documents” and those in paragraphs 8 and 17 are collectively
referred to herein as the “New Brunswick Law Documents”.

 

Except as otherwise
stated, the opinions expressed herein are limited to the laws of the Provinces
of New Brunswick and Nova Scotia (collectively, the “Provinces”) and the
laws of Canada applicable therein. 
Notwithstanding the foregoing, the opinions expressed in respect of MBI
are limited to the laws of the Province of New Brunswick and the laws of
Canada applicable therein and the opinions expressed 

 

3

 

in respect of SSC Canada,
Francobec and 3083527 are limited to the laws of the Province of Nova Scotia
and the laws of Canada applicable therein. 
Without limiting the generality of the foregoing, we express no opinion
with respect to the laws of any other jurisdiction to the extent that those
laws may govern the validity, perfection, effect of perfection or
non-perfection or enforcement of the security interests created by the Security
Agreements as a result of the application of conflict of law rules of the
Provinces including without limitation Sections 5 to 8 of the Personal Property Security Act (New Brunswick) (the “NBPPSA”)
and Sections 6 to 9 of the Personal Property Security
Act (Nova Scotia) (the “NSPPSA” and together with the NBPPSA, the “PPSAs”).

 

In giving this opinion,
we have also examined:

 

SSC CANADA

 

1.             the Memorandum of Association of SSC Canada;

 

2.             the Articles of Association of SSC Canada;

 

3.             resolutions of the board of directors of SSC Canada
adopted on October 22, 2004;

 

FRANCOBEC

 

4.             the Memorandum of Association of Francobec;

 

5.             the Articles of Association of Francobec;

 

6.             resolutions of the board of directors of Francobec
adopted on October 22, 2004;

 

3083527

 

7.             the Memorandum of Association of 3083527;

 

8.             the Articles of Association of 3083527;

 

9.             resolutions of the board of directors of 3083527
adopted as of October 22, 2004;

 

MBI

 

10.           articles of incorporation of MBI;

 

11.           the by-laws of MBI;

 

12.           resolutions of the board of directors of MBI adopted
on October 22, 2004;

 

13.                                 resolutions of the board of directors of
MBI acting in its capacity as general partner of Smurfit-MBI adopted on October 22,
2004;

 

14.                                 an amended and restated unanimous
shareholder agreement dated as of December 1, 1999 with respect to MBI and
an agreement respecting the unanimous shareholder agreement dated as of September 30,
2003;

 

4

 

15.                                 a limited partnership agreement dated December 1,
1999 and an amendment thereto dated as of September 30, 2003 with respect
to Smurfit-MBI (the “Limited Partnership Agreement”);

 

GENERAL

 

16.                                 such statutes, regulations, public and
corporate documents, resolutions, certificates and other documents and
agreements as we have considered relevant and necessary for the purpose of
providing this opinion.

 

In rendering the opinions
contained in this letter, we have assumed the genuineness of all signatures,
the authenticity of all documents submitted to us as originals, the conformity
with original documents of all documents submitted to us as certified or
photostatic copies of facsimiles and the identity and capacity of all
individuals acting or purporting to act as public officials.

 

With respect to factual
matters not independently verified by us, we have relied upon certificates of
officers of each of SSC Canada (the “SSC Canada Officer Certificate”),
Francobec (the “ Francobec Officer Certificate”), 3083527 (the “3083527 Officer
Certificate”) and MBI (the “MBI Officer Certificate”), copies of which have
been delivered to you.

 

For the purposes of the
opinion expressed in paragraph 1 below, we have relied upon a certificate of
status issued by the Registrar of Joint Stock Companies for Nova Scotia dated October 27,
2004 in respect of each of SSC Canada, Francobec and 3083527 and a certificate
of status issued by the Corporate Affairs Branch for New Brunswick dated October 27,
2004 in respect of MBI (collectively the “Certificates of Status”).

 

We have reviewed the
financing statements previously registered on behalf of the Collateral Agent
under the NBPPSA and the NSPPSA in respect of SSC Canada, the particulars of
which are as set out in Schedule “B” (the “Existing Financing Statements”).  We have registered financing statements on
behalf of the Collateral Agent under the NBPPSA and the NSPPSA in respect of
SSC Canada, MBI, Francobec (Nova Scotia only) and 3083527, the particulars of
which are as set out in Schedule “C” (with the Existing Financing Statements,
the “Financing Statements”).

 

Based and relying upon
the foregoing and subject to the qualifications, assumptions and limitations
herein set forth, it is our opinion that:

 

EXISTENCE

 

1.                                       SSC Canada (i) is a company duly
continued and validly existing under the laws of the Province of Nova Scotia
and is up to date thereunder with respect to the filing of annual returns and
the payment of annual filing fees, and (ii) has all necessary corporate
power and capacity to own, operate and lease its property and assets and to
carry on its business as described in the SSC Canada Officer Certificate and to
enter into and perform its obligations under the Documents to which it is a
party.

 

2.                                       The authorized capital of SSC Canada
consists of 100,000,000 class A shares, 100,000,000 class B shares, 100,000,000
class C shares, 100,000,000 class D shares; and 100,000,000 class E shares of
which (i) 100 class A shares are issued and outstanding as fully paid and
non-assessable and Stone Container Corporation is the registered holder of all
such 100 class A 

 

5

 

shares, (ii) 83,234 class C shares are issued and
outstanding as fully paid and non-assessable and Stone Container Finance
Company of Canada is the registered holder of all such 83,234 class C shares,
and (iii) 164,007 class D shares are issued and outstanding as fully paid
and non-assessable and SLP Finance General Partnership is the registered holder
of 162,607 class D shares and 605681 NB Inc. is the registered holder of 1,400
class D shares.

 

3.                                       Francobec (i) is a company duly incorporated
and validly existing under the laws of the Province of Nova Scotia and is up to
date thereunder with respect to the filing of annual returns and the payment of
annual filing fees, and (ii) has all necessary corporate power and
capacity to own, operate and lease its property and assets and to carry on its
business as described in the Francobec Officer Certificate and to enter and
perform its obligations under the Documents to which it is a party, including,
without limitation, to guarantee the obligations of others pursuant to the
Francobec Guarantee.

 

4.                                       The authorized capital of Francobec
consists of 100,000,000 shares without par value of which 100 common shares are
issued and outstanding as fully paid and non- assessable and SLP Finance
General Partnership is the registered holder of all such 100 common shares.

 

5.                                       3083527 (i) is a company duly
incorporated and validly existing under the laws of the Province of Nova Scotia
and is up to date thereunder with respect to the filing of annual returns and
the payment of annual filing fees, and (ii) has all necessary corporate
power and capacity to own, operate and lease its property and assets and to
carry on its business as described in the 3083527 Officer Certificate and to
enter and perform its obligations under the Documents to which it is a party,
including, without limitation, to guarantee the obligations of others pursuant
to the 3083527 Guarantee.

 

6.                                       The authorized capital of 3083527
consists of 500,000,000 shares without par value of which 1,400,000 common
shares are issued and outstanding as fully paid and non- assessable and SSC
Canada is the registered holder of all such 1,400,000 common shares.

 

7.                                       MBI (i) is a corporation duly
incorporated and validly existing under the laws of the Province of
New Brunswick and is up to date thereunder with respect to the filing of
annual returns and the payment of annual filing fees, and (ii) has all
necessary corporate power and capacity to own, operate and lease its property
and assets and to carry on its business as described in the MBI Officer
Certificate and to enter and perform its obligations under the Documents to
which it is a party including, without limitation, to guarantee the obligations
of others pursuant to the MBI Guarantee and pursuant to the Smurfit-MBI
Guarantee in its capacity as general partner of Smurfit-MBI.

 

8.                                       The authorized capital of MBI consists of
an unlimited number of Common shares without par value of which two Common
shares are outstanding as fully paid and non-assessable and each of 3083527 and
SSC Canada is the registered holder of one such Common share.

 

AUTHORIZATION, EXECUTION AND
DELIVERY

 

9.             The execution and delivery of and performance by:

 

6

 

(a)                                  SSC Canada of each of the Documents to
which it is a party have been authorized by all necessary corporate action on
the part of SSC Canada;

 

(b)                                 Francobec of each of the Documents to
which it is a party have been authorized by all necessary corporate action on
the part of Francobec;

 

(c)                                  3083527 of each of the Documents to which
it is a party have been authorized by all necessary corporate action on the
part of 3083527; and

 

(d)                                 MBI of each of the Documents to which it
is a party have been authorized by all necessary corporate action on the part
of MBI.

 

10.                                 All necessary corporate action has been
taken by MBI to authorize the transfer of the Pledged Stock (as defined in the
MBI Pledge Agreement) contemplated by the MBI Pledge Agreement.

 

11.                                 All necessary corporate action has been taken
by 3083527 to authorize the transfer of the Pledged Stock (as defined in the
3083527 Pledge Agreement) contemplated by the 3083527 Pledge Agreement.

 

12.                                 Each of the Documents to which SSC Canada
is a party has been duly executed and delivered by SSC Canada.

 

13.                                 Each of the Documents to which Francobec
is a party have been duly executed and delivered by Francobec.

 

14.                                 Each of the Documents to which 3083527 is
a party have been duly executed and delivered by 3083527.

 

15.                                 Each of the Documents to which MBI is a
party have been duly executed and delivered by MBI.

 

16.                                 Each of the Documents to which
Smurfit-MBI is a party have been duly executed and delivered by MBI as general
partner of Smurfit-MBI.

 

17.                                 The execution and delivery by SSC Canada
of each of the Documents to which it is a party and the performance of its
obligations thereunder do not constitute or result in a violation or a breach
of or default under the memorandum and articles of association of SSC Canada or
any law, rule or regulation having the force of law applicable in the
Province of Nova Scotia which is applicable to SSC Canada or any of its
property.

 

18.                                 The execution and delivery by Francobec
of each of the Documents to which it is a party and the performance of its
obligations thereunder do not constitute or result in a violation or a breach
or default under the memorandum and articles of association of Francobec or any
law, rule or regulation having the force of law applicable in the Province
of Nova Scotia which is applicable to Francobec or any of its property.

 

19.                                 The execution and delivery by 3083527 of
each of the Documents to which it is a party and the performance of its
obligations thereunder do not constitute or result in a violation or a breach
or default under the memorandum and articles of association of 3083527 or any
law, rule or 

 

7

 

regulation having the force of law applicable in the
Province of Nova Scotia which is applicable to 3083527 or any of its property.

 

20.                                 The execution and delivery by MBI of each
of the Documents to which it is a party and the performance of its obligations
thereunder do not constitute or result in a violation or a breach or default
under the articles and by-laws of MBI or any law, rule or regulation
having the force of law applicable in the Province of New Brunswick which
is applicable to MBI or any of its property.

 

21.                                 The execution and delivery by MBI of each
of the Documents to which it is a party in its capacity as general partner of Smurfit-MBI
and the performance of its obligations thereunder in its capacity as general
partner of Smurfit-MBI do not constitute or result in a violation or a breach
or default under the articles and by-laws of MBI or any law, rule or
regulation having the force of law applicable in the Province of
New Brunswick which is applicable to MBI in its capacity as general
partner of Smurfit-MBI or any property which MBI holds in its capacity as
general partner of Smurfit-MBI.

 

ENFORCEABILITY

 

22.                                 Each of the Nova Scotia Law Documents to
which it is a party constitutes, under the laws of the Province of Nova Scotia,
a legal, valid and binding obligation of each of SSC Canada, Francobec and
3083527 enforceable against each of them respectively as applicable in accordance
with its terms.

 

23.                                 Each of the New Brunswick Law
Documents constitutes, under the laws of the Province of New Brunswick, a
legal, valid and binding obligation of MBI enforceable against it in accordance
with its terms.

 

SECURITY INTEREST

 

24.                                 Each of the Security Agreements creates a
valid security interest in favour of the Collateral Agent in the Collateral (as
defined therein) in which any of the Maritime Parties thereto now has rights,
and is sufficient to create a valid security interest in favour of the
Collateral Agent in the Collateral (as defined therein) in which any of the
Maritime Parties hereafter acquires rights when those rights are acquired, in
each case to secure payment and performance of the Secured Obligations (as
defined therein).

 

25.                                 No authorization, consent or approval of,
or filing, registration, qualification or recording with, any governmental
entity having jurisdiction in either of the Provinces is required in connection
with the execution and delivery by SSC Canada, Francobec (for which a filing
was only made in Nova Scotia), 3083527 and MBI of the Documents to which they
are a party and the performance by them of their respective obligations
thereunder except as have been obtained or effected and which are in full force
and effect.

 

26.                                 Registration has been made in all public
offices provided for under the laws of either of the Provinces where such
registration is necessary to perfect the security interests in the assets of
SSC Canada created by any of the Security Agreements.

 

8

 

27.                                 Registration has been made in all public
offices provided for under the laws of Nova Scotia where such registration is
necessary to perfect the security interests in the assets of Francobec created
by any of the Security Agreements.

 

28.                                 Registration has been made in all public
offices provided for under the laws of either of the Provinces where such
registration is necessary to perfect the security interests in the assets of
3083527 created by any of the Security Agreements.

 

29.                                 Registration has been made in all public
offices provided for under the laws of either of the Provinces where such
registration is necessary to perfect the security interests in the assets of
MBI created by any of the Security Agreements.

 

30.                                 Registration has been made in all public
offices provided for under the laws of either of the Provinces where such
registration is necessary to perfect the security interests in the assets which
MBI holds in its capacity as general partner of Smurfit-MBI created by any of
the Security Agreements.

 

31.                                 Registration has been made in all public
offices located in Nova Scotia provided for under the laws of Nova Scotia, if
any, or the laws of Canada applicable therein, where such registration is
necessary to perfect the security interests in the assets of the SSC Canada
created by any of the SSC Canada Bank Act Agreements.

 

32.                                 The Bank Act Security creates in favour
of the Collateral Agent valid security under Section 427 of the Bank Act (Canada) in the property described in the Bank Act
Security to which the Bank Act
(Canada) applies.

 

The opinions set forth
above are subject to the following additional limitations, qualifications and
assumptions:

 

ASSUMPTIONS

 

(a)                                  we have assumed that each of the
Documents has been physically delivered by the parties thereto, that any
requirements of the laws of any jurisdiction other than the Provinces relating
to delivery have been complied with and that delivery was not subject to any
escrow conditions;

 

(b)                                 we have assumed that each of the
Documents that are neither Nova Scotia Law Documents nor New Brunswick Law
Documents constitute legal, valid and binding obligations of the parties
thereto enforceable against them in accordance with their respective terms and
that that each of the Nova Scotia Law Documents and New Brunswick Law
Documents Documents constitute legal, valid and binding obligations of the
parties thereto other than SSC Canada, Francobec, 3083527 or MBI enforceable
against them in accordance with their terms;

 

(c)                                  we have assumed that each of SSC Canada,
Francobec, 3083527 and MBI has rights in the Collateral, that value has been
given by the Collateral Agent, and that SSC Canada, Francobec, 3083527 and MBI
and the Collateral Agent have not agreed to postpone the time for attachment of
the Security Interest created therein;

 

9

 

(d)                                 we have assumed the correctness of the
description of the Collateral contained in the Documents and the accuracy of
the name of the Collateral Agent set forth in the Documents;

 

GENERAL ENFORCEABILITY

 

(e)                                  enforcement may be limited by general
principles of equity which may apply to any proceeding in equity or at law;
however equitable remedies, including an order of specific performance and
injunction are discretionary remedies and, in particular, may not be available
where damages are considered an adequate remedy;

 

(f)                                    enforcement may be limited by bankruptcy,
insolvency, liquidation, reorganization, reconstruction and other laws
generally affecting enforceability of the rights of creditors and others
generally;

 

(g)                                 a court may require the Collateral Agent
to provide a reasonable period of time for the performance of a payment default
by any party thereto, notwithstanding any statement in any of the Documents to
the contrary;

 

(h)                                 acceleration, enforcement and realization
under the Security Agreements may be limited by provisions in the PPSAs, the
cumulative effect of which, however, would not be to impair materially the
ability of the Collateral Agent to realize upon the security interests created
thereby, provided that the Collateral Agent and the Lenders act in good faith
and in a commercially reasonable manner;

 

(i)                                     provisions in any of the Documents
purporting to sever invalid and unenforceable provisions may not be enforceable
as a court may reserve to itself a decision as to whether any provision is
severable or otherwise of no force and effect;

 

(j)                                     no opinion is expressed as to the
enforceability of any provisions of any of the Documents which provide that
modifications, amendments or waivers of or with respect to any provisions of
the Documents that are not in writing will not be effective;

 

(k)                                  legislation in the Provinces limits
interest on a judgment debt;

 

(l)                                     the Currency Act
(Canada) precludes a court in Canada from giving judgment in any currency other
than Canadian currency;

 

(m)                               we express no opinion on provisions of
any of the Documents which provide or have the effect of providing for a higher
rate of interest after than before default that constitutes a penalty or for
the payment of rates and/or fees which may exceed the “criminal interest rate”
provisions of the Criminal Code (Canada);

 

(n)                                 no opinion is expressed as to the
enforceability of any provisions of any of the Documents:

 

(i)             which purport to limit or exculpate a
party from liability in respect of its own acts or omissions which may be
illegal, fraudulent or involve wilful misconduct;

 

10

 

(ii)          which purport to waive the benefit of
legal, statutory or equitable rights or doctrines which cannot be waived by
law;

 

(iii)       which purport to confer upon any party
the right to exercise any discretionary power or make any determination in its
sole or unfettered discretion;

 

TITLE TO COLLATERAL AND PRIORITY

 

(o)                                 we express no opinion with respect to the
title of any person to any of the Collateral;

 

(p)                                 we express no opinion as to the priority
of any of the security interests created by the Security Agreements;

 

SECURITY INTEREST

 

(q)                                 we express no opinion as to any security
interest constituted by the Security Agreements in any proceeds of any of the
Collateral that are not identifiable or traceable;

 

(r)                                    to the extent that any security interest
created pursuant to either of the Security Agreements (i) attaches
intangibles (as defined in the PPSAs), (ii) attaches goods that are of a
type that is normally used in more than one jurisdiction, if such goods are
equipment (as defined in the PPSAs) or are inventory (as defined in the PPSAs)
leased or held for lease by any of the Corporations to others, or (iii) is
a non-possessory security interest in a security, chattel paper, a negotiable
document of title, an instrument or money (as such terms are defined in the
PPSAs), the validity, perfection and effect of perfection or non-perfection of
such Security Interest is governed by the laws of the jurisdiction where either
SSC Canada, Francobec, 3083527 or MBL is located (as such term is defined under
the PPSAs) at the time such Security Interest attaches;

 

(s)                                  if any Security Interest now or hereafter
includes an intangible or chattel paper (as those terms are defined in the
PPSAs), the Security Interest therein is subject to the provisions of the
PPSAs, including the giving of proper notice of the Security Interest to the
account debtors thereunder before the secured party would be able to enforce
payment directly by any such account debtor;

 

(t)                                    if the Collateral now or hereafter
includes an interest or claim in or under a contract of annuity or policy of
insurance, no opinion is expressed herein as to the creation, validity or
perfection of the Security Interests therein other than in respect of the
transfer of a right to money or other value payable under a policy of insurance
as indemnity or compensation for loss of, or damage to, Collateral;

 

(u)                                 we have not conducted any inquiries or
made any investigations with regard to any consents or approvals which may be
required in connection with the transfer of any contractual or other interests
made subject to a security interest under the Security Agreements;

 

(v)                                 we have taken no steps to provide the
notices or otherwise comply with the requirements of the Financial
Administration Act (Canada) or the Financial
Administration Act (New Brunswick) relating to the assignment
of federal and New Brunswick provincial Crown 

 

11

 

debts, respectively. 
An assignment of Crown debts which does not comply with such applicable
statute is ineffective as between the assignor and the assignee and as against
the Crown.  Consequently, the Lenders and
Collateral Agent would not have a valid security interest in federal or
New Brunswick provincial Crown debts unless the requirements of the applicable
statute is complied with;

 

REGISTRATION
AND PERFECTION

 

(w)                               the security interest perfected by
registration of the Financing Statements will only remain perfected until the
expiry date referred to in Schedule “B” or “C”, as applicable, unless renewed
prior thereto by the filing of a financing change statement properly completed
in the manner prescribed under the PPSAs. 
We assume no responsibility for making such further registrations and
will not be providing you with any further reminder of the requirement for such
further registrations;

 

(x)                                   any change in the corporate name of SSC
Canada, Francobec, 3083527 or MBI or the transfer by it to a third party of any
Collateral would require timely registration of a financing change statement
properly completed in the manner prescribed under the PPSAs to preserve the
perfection of the security interest therein;

 

(y)                                 we express no opinion as to the necessity
of making any filings, recordings or registrations in any jurisdiction other
than the Provinces;

 

(z)                                   a security interest in any property (the “Special
Property”) which is in the nature of a trade-mark, copyright, patent, licence
(including, without limitation, any CRTC licence), approval, privilege,
franchise, permit, lease, instrument, contract or agreement, or in any property
subject to any of the Canada Shipping Act
(Canada), the Copyright Act (Canada), the Patent Act (Canada), the Canada Transportation Act
(Canada), the Integrated Circuit Topography Act
(Canada), the Industrial Designs Act (Canada), the
Trade-marks Act (Canada) and the Financial Administration Act (Canada) (collectively, the “Federal
Statutes”), may not be valid, binding or enforceable because of the terms of
the Special Property or the provisions of any statute, rule or regulation
requiring a consent, approval or other authorization or registration which has
not been given or made;

 

(aa)                            no registrations, filings or recordings
have been made by us under any of the Federal Statutes save and except as set
out in Schedule C;

 

(bb)                          no registrations have been made with
respect to any Collateral that may be or become a fixture;

 

(cc)                            if the Collateral now or hereafter
includes any motor vehicle, trailer, mobile home, aircraft, boat or an outboard
motor for a boat within the meaning of those terms under the regulations made
under the PPSAs situate in either of the Provinces which is not held by either
SSC Canada, Francobec, 3083527 or MBI as inventory (as such term is defined in
the PPSAs), the Security Interest in such Pledged Collateral or its proceeds
must be registered against the applicable serial number description in order to
maintain the priority of the Security Interest in such Collateral;

 

12

 

(dd)         with
respect to the pledge of shares of MBI as provided for in the MDI Pledge
Agreement and with respect to the pledge of shares of 3083527 as provided for
in the 3083527 Pledge Agreement, the board of directors of each of MBI and
3083527 has passed a resolution approving a transfer of the pledged shares to
the Collateral Agent and also approving any transfer of the pledged shares from
the Collateral Agent.  There is some
doubt as to the directors’ power to irrevocably bind themselves to the approval
of any such transfer of the pledged shares by the Collateral Agent; and

 

(ee)         our
opinions that the shares of Francobec and 3083527 are non-assessable are
subject to the qualification that a member or former member of Francobec and
3083527, respectively, may be liable for any deficiency in Francobec’s or
3083527’s assets, as the case may be, to meet creditor claims at the time of
Francobec’s or 3083527’s bankruptcy, winding up or termination of operation, as
the case may be;

 

This opinion is given for the use and benefit only of
the persons to whom it is addressed.  It
may not be relied upon by any other parties without our prior express written
consent.

 

	
  Yours very truly,

  	
   

  
	
   

  	
   

  
	
  STEWART MCKELVEY STIRLING
  SCALES

  	
   

  

 

13

 

SCHEDULE “A”

 

Addressees

 

	
  JP Morgan Chase Bank

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
  10 South LaSalle Street

  	
   

  	
  90 Hudson Street

  
	
  23rd Floor

  	
   

  	
  5th Floor

  
	
  Chicago, Illinois

  	
   

  	
  Jersey City,
  New Jersey

  
	
  USA 60603-1907

  	
   

  	
  USA 07302

  
	
   

  	
   

  	
   

  
	
  - and -

  	
   

  	
  - and -

  
	
   

  	
   

  	
   

  
	
  Deutsche Bank AG

  	
   

  	
  Each of the Lenders
  from time to time party to the Credit 

  
	
  222 Bay Street

  	
   

  	
  Agreement referred to
  herein

  
	
  Suite 1100

  	
   

  	
   

  
	
  Toronto, Ontario

  	
   

  	
   

  
	
  M5K 1E7

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  - and -

  	
   

  	
  - and -

  
	
   

  	
   

  	
   

  
	
  Osler,
  Floskin & Harcourt LLP

  	
   

  	
  Stikeman Elliott LLP

  
	
  1 First Canadian Place

  	
   

  	
  Suite 5300

  
	
  61st Floor

  	
   

  	
  199 Bay Street

  
	
  Toronto, Ontario

  	
   

  	
  Toronto, Ontario

  
	
  M5X 1B8

  	
   

  	
  M5L 1B9

  
	
   

  	
   

  	
   

  
	
  - and -

  	
   

  	
  - and -

  
	
   

  	
   

  	
   

  
	
  Winston &
  Strawn LLP

  	
   

  	
  Cravath,
  Swaine & Moore

  
	
  35 West Wacker Drive

  	
   

  	
  Worldwide Plaza

  
	
  Chicago, IL

  	
   

  	
  825 Eighth Avenue

  
	
  USA 60601

  	
   

  	
  New York, NY
  10019-7475

  

 

 

SCHEDULE “B”

 

Existing Financing Statements

 

	
  Personal Property Security Act
  (New Brunswick)

  

 

	
  Registration Number

  	
   

  	
  8631439

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  July 25, 2002

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  July 25, 2012

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  Smurfit-Stone Container
  Canada Inc.

  
	
   

  	
   

  	
  Emballages
  Smurfit-Stone Canada Inc.

  
	
   

  	
   

  	
  Smurfit-Stone Container
  Canada Inc./Emballages

  
	
   

  	
   

  	
  Smurfit-Stone Canada
  Inc.

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property
  other than certain exclude property

  

 

 

Personal Property Security Act
(Nova Scotia)

 

	
  Registration Number

  	
   

  	
  5597375

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  June 28, 2002

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  June 28, 2012

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  Smurfit-Stone Container
  Canada Inc./Emballages

  
	
   

  	
   

  	
  Smurfit-Stone Canada
  Inc., Smurfit-Stone Container Canada Inc. and Emballages Smurfit-Stone Canada
  Inc.

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  ALL OF THE DEBTOR’S PRESENT
  AND AFTER ACQUIRED PERSONAL PROPERTY INCLUDING GOODS, DOCUMENTS OF TITLE,
  CHATTEL PAPER, SECURITIES, INSTRUMENTS, MONEY AND INTANGIBLES EXCEPT
  (i) PERSONAL PROPERTY WHICH CONSTITUTES “EXCLUDED PROPERTY” AS SUCH
  PHRASE IS DEFINED IN AN INDENTURE AND DEED OF HYPOTHEC AND ISSUE OF BONDS
  MADE BY ST. LAURENT PAPERBOARD INC./CARTONS ST. LAURENT INC. AND GENERAL
  TRUST COMPANY OF CANADA DATED MAY 23, 2000 AND (ii) ANY PROGRAM
  RECEIVABLES THAT ARE TRANSFERRED TO FINSUB PURSUANT TO THE RECEIVABLES
  PROGRAM DOCUMENTS OR OTHER PROPERTY DESCRIBED IN THE CANADIAN SECURETY
  AGREEMENT MADE AS OF MAY 31, 2000 BY ST. LAURENT PAPERBOARD INC.
  AND OTHERS IN FAVOR OF BANKERS TRUST COMPANY AS EXCLUDED FROM THE SECURITY
  INTEREST CREATED THEREBY.

  
	
   

  	
   

  	
   

  
	
  Registration Number

  	
   

  	
  5686224

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  July 22, 2002

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  July 22, 2012

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  Smurfit-Stone Container
  Canada Inc./Emballages

  
	
   

  	
   

  	
  Smurfit-Stone Canada
  Inc., Smurfit-Stone Container Canada Inc. and Emballages Smurfit- Stone
  Canada Inc.

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A SECURITY INTEREST IS
  TAKEN IN ALL OF THE DEBTOR’S PRESENT AND AFTER-ACQUIRED PERSONAL PROPERTY.

  

 

 

SCHEDULE “C”

 

Registrations

 

Personal Property Security Act
(New Brunswick)

 

	
  Registration Number

  	
   

  	
  11599511

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  MBI Limitée/Limitée

  
	
   

  	
   

  	
  MBI Limited/Limitee

  
	
   

  	
   

  	
  MBI Limitée

  
	
   

  	
   

  	
  MBI Limited

  
	
   

  	
   

  	
  MBI Limited/Limitée, in
  its capacity as general partner of Smurfit-MBI

  
	
   

  	
   

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property

  
	
   

  	
   

  	
   

  
	
  Registration Number

  	
   

  	
  11599529

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  MBI Limitée/Limitée

  
	
   

  	
   

  	
  MBI Limited/Limitée

  
	
   

  	
   

  	
  MBI Limitée

  
	
   

  	
   

  	
  MBI Limited

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property

  

 

 

	
  Registration Number

  	
   

  	
  11599495

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  Smurfit-Stone Container
  Canada Inc.

  
	
   

  	
   

  	
  Emballages
  Smurfit-Stone Canada Inc.

  
	
   

  	
   

  	
  Smurfit-Stone Container
  Canada Inc./Emballages

  
	
   

  	
   

  	
  Smurfit-Stone Container
  Canada Inc.

  
	
   

  	
   

  	
  Emballages
  Smurfit-Stone Canada Inc./Smurfit-Stone Container Canada Inc.

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property

  
	
   

  	
   

  	
   

  
	
  Registration Number

  	
   

  	
  11599503

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  3083527 Nova Scotia
  Company

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property

  

 

Personal
Property Security Act (Nova Scotia)

 

	
  Registration Number

  	
   

  	
  8879653

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  Smurfit-Stone Container
  Canada Inc.

  
	
   

  	
   

  	
  Emballages
  Smurfit-Stone Canada Inc.

  
	
   

  	
   

  	
  Smurfit-Stone Container
  Canada Inc./Emballages

  
	
   

  	
   

  	
  Smurfit-Stone
  Container Canada Inc.

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property
  other than certain excluded property

  

 

 

	
  Registration Number

  	
   

  	
  8879662

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  Francobec Company

  Societe
  Francobec

  Societe Francobec / Francobec Company

  Francobec Company / Societe Francobec

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property
  other than certain excluded property

  
	
   

  	
   

  	
   

  
	
  Registration Number

  	
   

  	
  8879671

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  3083527 Nova Scotia
  Company

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property
  other than certain excluded property

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Registration Number

  	
   

  	
  8879699

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  MBI Limitée/Limitee

  
	
   

  	
   

  	
  MBI Limited/Limitée

  
	
   

  	
   

  	
  MBI Limitée

  
	
   

  	
   

  	
  MBI Limited

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property
  other than certain excluded property

  

 

 

	
  Registration Number

  	
   

  	
  8879680

  
	
   

  	
   

  	
   

  
	
  Registration Date

  	
   

  	
  October 26, 2004

  
	
   

  	
   

  	
   

  
	
  Expiry Date

  	
   

  	
  October 26, 2014

  
	
   

  	
   

  	
   

  
	
  Debtor

  	
   

  	
  MBI Limitée/Limitee

  
	
   

  	
   

  	
  MBI Limited/Limitée

  
	
   

  	
   

  	
  MBI Limitée

  
	
   

  	
   

  	
  MBI Limited

  
	
   

  	
   

  	
  MBI Limited/Limitée, in
  its capacity as general partner of Smurfit-MBI

  
	
   

  	
   

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  
	
  Secured Party

  	
   

  	
  Deutsche Bank Trust
  Company Americas

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  A security interest is
  taken in all of the debtor’s present and after-acquired personal property
  other than certain excluded property

  

 

 

Schedule
1.01(a)

 

EXISTING
SSCE LETTERS OF CREDIT

 

SMURFIT-STONE
CONTAINER ENTERPRISES, INC.:

 

	
   

  	
   

  	
  L/C #

  	
   

  	
  Banks

  	
   

  	
  9/30/2004

  	
   

  
	
  EXISTING STONE CREDIT AGREEMENT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National Union
  Fire Insurance Company

  	
   

  	
  00318587

  	
   

  	
  JPM

  	
   

  	
  4,700,000.00

  	
   

  
	
  Safeco Insurance
  Company of America

  	
   

  	
  00318581

  	
   

  	
  JPM

  	
   

  	
  825,000.00

  	
   

  
	
  Cedar Bay
  Generating Company

  	
   

  	
  T-244728

  	
   

  	
  JPM

  	
   

  	
  10,000,000.00

  	
   

  
	
  Pacific
  Employers Insurance Company

  	
   

  	
  S-13814

  	
   

  	
  DB

  	
   

  	
  183,348.00

  	
   

  
	
  Evergreen
  National Indemnity Company

  	
   

  	
  S-14343

  	
   

  	
  DB

  	
   

  	
  1,712,647.00

  	
   

  
	
  PPL EnergyPlus
  LLC

  	
   

  	
  S-14417

  	
   

  	
  DB

  	
   

  	
  2,000,000.00

  	
   

  
	
  Zurich American
  Insurance Company

  	
   

  	
  S-14626

  	
   

  	
  DB

  	
   

  	
  5,614,450.00

  	
   

  
	
  The Building
  Center

  	
   

  	
  S-14730

  	
   

  	
  DB

  	
   

  	
  250,000.00

  	
   

  
	
  Self-Insurance
  Division - Bureau of W.C. (Penn.)

  	
   

  	
  S-14911

  	
   

  	
  DB

  	
   

  	
  1,900,000.00

  	
   

  
	
  Howard
  Langer, Esq. as Escrow Agent

  	
   

  	
  S-15616

  	
   

  	
  DB

  	
   

  	
  28,812,513.33

  	
   

  
	
  Coral Energy
  Canada, Inc.

  	
   

  	
  S-15644

  	
   

  	
  DB

  	
   

  	
  550,000.00

  	
   

  
	
  Georgia
  Self-Insurers Guaranty Trust Fund

  	
   

  	
  3061593

  	
   

  	
  BA

  	
   

  	
  1,000,000.00

  	
   

  
	
  Commonwealth of
  Virginia - VA Dept. of Ag.

  	
   

  	
  S-15674

  	
   

  	
  DB

  	
   

  	
  20,000.00

  	
   

  
	
  South Carolina
  Workers Compensation Comm.

  	
   

  	
  3062031

  	
   

  	
  BA

  	
   

  	
  1,300,000.00

  	
   

  
	
  State of
  Minnesota

  	
   

  	
  S-15798

  	
   

  	
  DB

  	
   

  	
  234,183.00

  	
   

  
	
  Arkansas Workers
  Compensation Commission

  	
   

  	
  3063036

  	
   

  	
  BA

  	
   

  	
  500,000.00

  	
   

  
	
  Florida
  Self-Insurers Guaranty Association, Inc.

  	
   

  	
  3063037

  	
   

  	
  BA

  	
   

  	
  2,610,587.00

  	
   

  
	
  Louisiana
  Department of Labor

  	
   

  	
  S-15903

  	
   

  	
  DB

  	
   

  	
  1,700,000.00

  	
   

  
	
  Montana
  Department of Labor & Industry

  	
   

  	
  S-15904

  	
   

  	
  DB

  	
   

  	
  3,500,000.00

  	
   

  
	
  Travelers
  Casualty & Surety Company of America

  	
   

  	
  S-15945

  	
   

  	
  DB

  	
   

  	
  5,595,000.00

  	
   

  
	
  Industrial
  Commission of Arizona

  	
   

  	
  S-15965

  	
   

  	
  DB

  	
   

  	
  221,813.00

  	
   

  
	
  State of Oregon

  	
   

  	
  3065108

  	
   

  	
  BA

  	
   

  	
  367,000.00

  	
   

  
	
  Ohio Bureau of
  Workers Compensation

  	
   

  	
  S-16079

  	
   

  	
  DB

  	
   

  	
  975,000.00

  	
   

  
	
  The Provident
  Bank — State of Ohio

  	
   

  	
  S-16086

  	
   

  	
  DB

  	
   

  	
  628,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  75,199,541.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXISTING JSCUS CREDIT AGREEMENT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hartford Fire
  Insurance Company

  	
   

  	
  P-753755

  	
   

  	
  JPM

  	
   

  	
  50,000.00

  	
   

  
	
  Home Insurance
  Company

  	
   

  	
  P-753760

  	
   

  	
  JPM

  	
   

  	
  250,000.00

  	
   

  
	
  National Union
  Fire Insurance Company

  	
   

  	
  P-753761

  	
   

  	
  JPM

  	
   

  	
  3,837,000.00

  	
   

  
	
  NJDEP Tri-Pack
  Corporation

  	
   

  	
  S-07603

  	
   

  	
  DB

  	
   

  	
  500,000.00

  	
   

  
	
  Kemper Insurance
  Companies

  	
   

  	
  P-215043

  	
   

  	
  JPM

  	
   

  	
  2,271,383.00

  	
   

  
	
  Evergreen
  National Indemnity Company

  	
   

  	
  P-217920

  	
   

  	
  JPM

  	
   

  	
  5,000.00

  	
   

  
	
  Zurich American
  Insurance Company

  	
   

  	
  P-224161

  	
   

  	
  JPM

  	
   

  	
  5,595,450.00

  	
   

  
	
  Florida
  Self-Insurers Guaranty Association, Inc.

  	
   

  	
  P-227239

  	
   

  	
  JPM

  	
   

  	
  6,130,929.00

  	
   

  
	
  State of New
  York Workers Com. Board

  	
   

  	
  T-227256

  	
   

  	
  JPM

  	
   

  	
  1,861,416.00

  	
   

  

 

 

	
  Citibank, N.A.
  (Stevenson)

  	
   

  	
  P-232997

  	
   

  	
  JPM

  	
   

  	
  7,282,780.83

  	
   

  
	
  Citibank, N.A.
  (Stevenson)

  	
   

  	
  P-232999

  	
   

  	
  JPM

  	
   

  	
  25,342,465.75

  	
   

  
	
  Citibank, N.A.
  (Stevenson)

  	
   

  	
  P-233001

  	
   

  	
  JPM

  	
   

  	
  8,109,589.04

  	
   

  
	
  Citibank, N.A.
  (Stevenson)

  	
   

  	
  P-233004

  	
   

  	
  JPM

  	
   

  	
  10,136,986.30

  	
   

  
	
  Citibank, N.A.
  (Stevenson)

  	
   

  	
  P-232998

  	
   

  	
  JPM

  	
   

  	
  25,493,150.69

  	
   

  
	
  Citibank, N.A.
  (Stevenson)

  	
   

  	
  P-233000

  	
   

  	
  JPM

  	
   

  	
  25,342,465.75

  	
   

  
	
  Citibank, N.A.
  (Stevenson)

  	
   

  	
  P-233002

  	
   

  	
  JPM

  	
   

  	
  5,017,808.22

  	
   

  
	
  Citibank, N.A.
  (Stevenson)

  	
   

  	
  P-233003

  	
   

  	
  JPM

  	
   

  	
  15,205,479.45

  	
   

  
	
  Ohio Bureau of
  Workers’ Compensation

  	
   

  	
  P-235341

  	
   

  	
  JPM

  	
   

  	
  975,000.00

  	
   

  
	
  Tennessee Valley
  Authority

  	
   

  	
  P-241456

  	
   

  	
  JPM

  	
   

  	
  3,750,000.00

  	
   

  
	
  Howard Langer,
  Esq - As Escrow Agent

  	
   

  	
  P-244746

  	
   

  	
  JPM

  	
   

  	
  18,358,431.88

  	
   

  
	
  Georgia
  Self-Insurers Guaranty Trust Fund

  	
   

  	
  3061943

  	
   

  	
  BA

  	
   

  	
  1,000,000.00

  	
   

  
	
  Louisiana
  Department of Labor

  	
   

  	
  P-246657

  	
   

  	
  JPM

  	
   

  	
  100,000.00

  	
   

  
	
  State of Oregon

  	
   

  	
  3062290

  	
   

  	
  BA

  	
   

  	
  805,000.00

  	
   

  
	
  Travelers
  Casualty & Surety Co. of America

  	
   

  	
  P-248529

  	
   

  	
  JPM

  	
   

  	
  1,712,383.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  169,132,718.91

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OUTSIDE CREDIT AGREEMENT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Montgomery
  (Series A)

  	
   

  	
  P-258469

  	
   

  	
  JPM

  	
   

  	
  5,187,952.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone Container Canada Inc.:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  National Bank
  Trust

  	
   

  	
  G51151/201404

  	
   

  	
  SB

  	
   

  	
  U.S. $16,885,987.82

  	
   

  
	
  Minister of
  Environment

  	
   

  	
  736/5495

  	
   

  	
  DB

  	
   

  	
  27,454.70

  	
   

  
	
  Independent
  Electricity Market Operator

  	
   

  	
  736/5612(a)

  	
   

  	
  DB

  	
   

  	
  85,347.73

  	
   

  
	
  Ontario Power
  Generation

  	
   

  	
  736/5613

  	
   

  	
  DB

  	
   

  	
  158,240.37

  	
   

  
	
  Minister of
  Environment

  	
   

  	
  736/5619

  	
   

  	
  DB

  	
   

  	
  158,240.37

  	
   

  
	
  Royal Trust

  	
   

  	
  G51151/201648

  	
   

  	
  SB

  	
   

  	
  12,058,548.94

  	
   

  
	
  Royal Bank of
  Canada

  	
   

  	
  736/5742

  	
   

  	
  DB

  	
   

  	
  3,956,009.18

  	
   

  
	
  Minister of
  Environment

  	
   

  	
  736/5787

  	
   

  	
  DB

  	
   

  	
  158,240.37

  	
   

  
	
  The Corporation
  of the Town of Milton

  	
   

  	
  736/5808

  	
   

  	
  DB

  	
   

  	
  807,020.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  34,295,089.80

  	
   

  

 

DB — Deutsche Bank

BA — Bank of America

SB -    Scotia Bank

JPM -  JPMorgan

 

 

 

Schedule
1.01(b)

 

MATERIAL
SUBSIDIARIES

 

JSC Capital LLC, a
Delaware limited liability company

 

Smurfit-Stone Container
Enterprises, Inc., a Delaware corporation

 

Smurfit-Stone Container
Canada Inc., a corporation continued under the Companies Act (Nova Scotia)

 

MBI Limited / Limitee, a
corporation continued under the laws of the Province of New Brunswick

 

Smurfit-MBI, a limited
partnership formed under the laws of the Province of Ontario

 

605681 N.B. Inc., a
corporation incorporated under the laws of the Province of New Brunswick

 

 

Schedule
1.01(c)

 

MORTGAGED
PROPERTIES

 

A.            Smurfit-Stone
Container Enterprises, Inc.:

 

BREWTON, ALABAMA

U.S. 31 South

Brewton, AL 36426

(Escambia County)

 

VERNON, CALIFORNIA

2001 E. 57th Street

Vernon, CA 90058

(Los Angeles County)

 

SANTA CLARA, CALIFORNIA

2600 De La Cruz Blvd.

Santa Clara, CA 95050

(Santa Clara County)

 

FERNANDINA BEACH, FLORIDA

North Eighth Street

Fernandina, FL 32201

(Nassau County)

 

CARTHAGE, INDIANA

South Main Street

Carthage, IN 46115

(Rush County)

 

WABASH, INDIANA

455 W. Factory Street

Wabash, IN 46972

(Wabash County)

 

PHILADELPHIA, PENNSYLVANIA

5000 Flat Rock Road

Philadelphia, PA 19127

(Philadelphia County)

 

 

JONESBORO, ARKANSAS

2200 Industrial Drive

Jonesboro, AR 72400

(Craighead County)

 

CORONA, CALIFORNIA

185 N. Smith Street

Corona, CA 91720

(Riverside County)

 

FRESNO, CALIFORNIA

2525 S. Sunland Avenue

Fresno, CA 93725

(Fresno County)

 

IRVINE, CALIFORNIA

1600 Barranco Road

Irvine, CA 92714

(Orange County)

 

LOS ANGELES, CALIFORNIA

2601 S. Malt Avenue

Los Angeles, CA 90040

(Los Angeles County)

 

MILPITAS, CALIFORNIA

201 S. Hillview Drive

Milpitas, CA 95035

(Santa Clara County)

 

SANTA CLARA, CALIFORNIA

2500 De La Cruz Blvd.

Santa Clara, CA 95050

(Santa Clara County)

 

JACKSONVILLE, FLORIDA

2002 E. 18th Street

Jacksonville, FL 32206

(Duval County)

 

MIAMI, FLORIDA

6891 N.W. 74th Street

Miami, FL 33166

(Dade County)

 

 

STONE MOUNTAIN, GEORGIA

5853 E. Ponce De Leon
Avenue

Stone Mountain, GA 30083

(DeKalb County)

 

CAROL STREAM, ILLINOIS

400 E. North Avenue

Carol Stream, IL 60618

(DuPage County)

 

GALESBURG, ILLINOIS

775 S. Linwood Road

Galesburg, IL 61401-1268

(Knox County)

 

HIGHLAND, ILLINOIS

6th & Zschokke

Highland, IL 62249

(Madison County)

 

MORRIS, ILLINOIS

1000 E. Armstrong Street

Morris, IL 60450

(Grundy County)

 

ST. CHARLES, ILLINOIS

1501 Indiana Avenue

St Charles, IL 60174

(Kane County)

 

FORT WAYNE, INDIANA

102 W. Superior Street

Fort Wayne, IN 46802

(Allen County)

 

FRANKFORT, INDIANA

700 Crawford Street

Frankfort, IN 46041

(Clinton County)

 

MUNCIE, INDIANA

301 S. Butterfield Road

Muncie, IN 47303

(Delaware County)

 

 

SIOUX CITY, IOWA

1601 Tri View Avenue

Sioux City, IA 51102

(Woodbury County)

 

LOUISVILLE, KENTUCKY

12220 Westport Road

Louisville, KY 40223

(Jefferson County)

 

CHESTERFIELD, MISSOURI

577 Goddard Avenue

Chesterfield, MO 63017

(St. Louis County)

 

N. KANSAS CITY, MISSOURI

110 E. 10th Avenue

N. Kansas City, MO 64116

(Clay County)

 

PACIFIC, MISSOURI

1101 S. Denton Road

Pacific, MO 63069

(Franklin County)

 

NEW HARTFORD, NEW YORK

41-57 Campion Road

New Hartford, NY

(Oneida County)

 

GREENSBORO, NORTH CAROLINA

2600 E. Market Street

Greensboro, NC 27401

(Guilford County)

 

SHELBY, NORTH CAROLINA

662 Washburn Switch Road

Shelby, NC 28150

(Cleveland County)

 

WINSTON-SALEM, NORTH CAROLINA

8080 North Point Blvd.

Winston-Salem, NC 27106

(Forsyth County)

 

 

WILSON, NORTH CAROLINA

2606 Wilco Blvd.

Wilson, NC 27893

(Wilson County)

 

CINCINNATI, OHIO

9960 Alliance Road

Cincinnati, OH 45242

(Hamilton County)

 

NORWOOD, OHIO

Beech &
Robertson Streets

Norwood, OH 45212

(Hamilton County)

 

RAVENNA, OHIO

975 N. Freedom Street

Ravenna, OH 44266

(Portage County)

 

SOLON, OHIO

6385 Cochran Road

Solon, OH 44129

(Cuyahoga County)

 

PORTLAND, OREGON

12005 North Burgard Road

Portland, OR 97203

(Multnomah County)

 

NORTH WALES, PENNSYLVANIA

500 Church Road

North Wales, PA 19454

(Montgomery County)

 

ASTON, PENNSYLVANIA

100 McDonald Blvd.

Aston, PA 19014

(Delaware County)

 

VALLEY FORGE, PENNSYLVANIA

1035 Longford Road

Valley Forge, PA 19456

(Montgomery County)

 

 

KNOXVILLE, TENNESSEE

4512 Anderson Road, N.E.

Knoxville, TN 37918

(Knox County)

 

MEMPHIS, TENNESSEE

265 W. Trigg Avenue

Memphis, TN 38106

(Shelby County)

 

HUMBOLDT, TENNESSEE

1720 Ninth Avenue

Humboldt, TN 38343

(Gibson County)

 

MURFREESBORO, TENNESSEE

1125 Haley Road

Murfreesboro, TN 37130

(Rutherford County)

 

FT. WORTH, TEXAS

6701 South Freeway

Ft. Worth, TX 76134

(Tarrant County)

 

HOUSTON, TEXAS

8440 Tewantin

Houston, TX 77210

(Harris County)

 

RENTON, WASHINGTON

601 Monster Road, SW

Renton, WA 98057

(King County)

 

MILWAUKEE, WISCONSIN

2800 W. Custer Avenue

Milwaukee, WI 53209

(Milwaukee County)

 

PANAMA CITY, FLORIDA

One Everitt Avenue

Panama City, FL 32401

(Bay County)

 

 

HODGE, LOUISIANA

Mill Street

Hodge, LA 71247

(Jackson Parish)

 

COSHOCTON, OHIO

500 North Fourth Street

Coshocton, OH 43312

(Coshocton County)

 

FLORENCE, SOUTH CAROLINA

Old Georgetown Road

Florence, SC 29501

(Florence County)

 

HOPEWELL, VIRGINIA

910 Industrial Street

Hopewell, VA 23860

(City of Hopewell)

 

JACKSONVILLE, FLORIDA

9469 Eastport Road

Jacksonville, FL

(Duval County)

 

ATLANTA (EAST), GEORGIA

1995 Lithonia Industrial
Blvd.

Lithonia, GA 30058

(DeKalb County)

 

MANSFIELD, MASSACHUSETTS

47 Maple Street

Mansfield, MA 02048

(Bristol County)

 

PHILADELPHIA (EAST), PENNSYLVANIA

Tulip & Decatur
Streets

Philadelphia, PA 19136

(City of Philadelphia)

 

WILLIAMSPORT, PENNSYLVANIA

Reach Rd., Industrial
Park

Williamsport, PA 17701

(Lycoming County)

 

 

EL PASO (EAST), TEXAS

7350 Stiles Road

El Paso, TX 79915

(El Paso County)

 

TYLER, TEXAS

IS - 20 &
Highway 155

Tyler, TX 75710

(Smith County)

 

RICHMOND (NORTH), VIRGINIA

5700 Lewis Road

Sandston, VA 23150

(Henrico County)

 

STEVENSON,
ALABAMA

1611 County Rd. 85

Stevenson, AL

(Jackson County)

 

COVINGTON,
GEORGIA

6180 Jersey Alcovy Rd.

Covington, GA

(Newton County)

 

BRIDGEVIEW,
ILLINOIS

7601 South 78th Ave.

Bridgeview, IL

(Cook County)

 

WASHINGTON,
OHIO

Mead & Kenskill

Washington, OH

(Fayette County)

 

LEWISBURG,
TENNESSEE

700 Garrett Pkwy.

Lewisburg, TN

(Marshall County)

 

KING WILLIAM COUNTY, VIRGINIA

The Mill
Site and Surrounding Property

West
Point District, VA

(King
William County)

 

 

ROANOKE PLANT, VIRGINIA

802
Kyle Ave. Plant

Roanoke,
VA

(Roanoke
County)

 

BALTIMORE BOX PLANT, MARYLAND

725
Pittman Rd.

Baltimore,
MD

(Anne
Arundal County)

 

RICHMOND PACKING PLANT, VIRGINIA

5640
Lewis Road

Richmond,
VA

(Henrico
County)

 

NORTH TONAWANDA, NEW YORK

North
Tonawanda, NY

(Niagara
County)

 

LATTA PLANT, SOUTH CAROLINA

Latta,
SC

(Dillon
County)

 

ADAMS
(CASTLE ROCK) PLANT, WISCONSIN

Adams,
WI

(Adams
County)

 

SPRINGFIELD, MASSACHUSETTS

(Hampden
County)

 

MANSFIELD, MASSACHUSETTS

(Bristol
County)

 

B.                                    Smurfit-Stone
Container Canada Inc. - Canadian Properties:

 

1.                                       The
paperboard mill located at 1000 Chemin de l’Usine, La Tuque, Québec.

 

2.                                       The
corrugating medium mill located at 90 Parc Industriel, Matane, Québec.

 

3.                                       The
converting plant located at 15400 Sherbrooke Street Est, Montreal, Québec.

 

4.                                       The
converting plant located at 747 Appleby Line, Burlington, Ontario.

 

 

5.                                       The
chip mill located at 200 Chemin de la Riviere au Lait, Canton de Vallieres,
Haut St.-Maurice, Québec (owned by Francobec Company).

 

6.                                       The
flexible plastics packaging plant located at 134-142 Kennedy Road South, City
of Brampton, Ontario.

 

C.                                    Smurfit-MBI -
Canadian Properties:

 

1.                                       301
Forced Road, Pembroke, Ontario

 

2.                                       200
Brockport Drive and 730 Islington Avenue, Toronto, Ontario

 

3.                                       200
Water Street, Whitby, Ontario

 

4.                                       390
Woodlawn Road, West, Guelph, Ontario

 

5.                                       8150
Parkhill Drive, Milton, Ontario

 

6.                                       P.O. Box
1155, 1400 - 1st Avenue East, Regina, Saskatchewan

 

7.                                       1115
- 34th Avenue South East, Calgary, Alberta

 

8.                                       8705
- 24th Street, Edmonton, Alberta

 

9.                                       1360
Inkster Boulevard, Winnipeg, Manitoba

 

10.                                 1035
Hodge Street, Saint-Laurent, Quebec

 

11.                                 5550
Royalmount Avenue, Town of Mount Royal, Quebec

 

 

Schedule
1.01(d)

 

MORTGAGES

 

Smurfit-Stone
Container Enterprises, Inc.:

 

1.                   SITE 1  Brewton, Alabama

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by
Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust Company Americas,
as Collateral Agent, dated November 1, 2004 to be recorded with the Judge
of Probate in Escambia County, Alabama

 

2.                   SITE 2  Vernon, California

 

Deed of Trust, Assignment
of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc.
to Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Los Angeles County Clerk in Los Angeles
County, California

 

3.                   SITE 3  Santa Clara, California

 

Deed of Trust, Assignment
of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc.
to Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Santa Clara County Recorder in Santa Clara
County, California

 

4.                   SITE 5  Fernandina Beach, Florida

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by
Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust Company
Americas, as Collateral Agent, dated November 1, 2004 to be recorded with
the Nassau County Recorder in Nassau County, Florida

 

5.                   SITE 8  Carthage, Indiana

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by
Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust Company
Americas, as Collateral Agent, dated November 1, 2004 to be recorded with
the Rush County Recorder in Rush County, Indiana

 

 

6.                   SITE 9  Wabash, Indiana

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by
Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust Company
Americas, as Collateral Agent, dated November 1, 2004 to be recorded with
the Wabash County Recorder in Wabash County, Indiana

 

7.                   SITE 13  Philadelphia, Pennsylvania

 

Open-End Mortgage,
Assignment of Rents and Security Agreement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Philadelphia County
Recorder in Philadelphia County, Pennsylvania

 

8.                   SITE 16  Jonesboro, Arkansas

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by
Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust Company
Americas, as Collateral Agent, dated November 1, 2004 to be recorded with
the Craighead County Clerk in Craighead County, Arkansas

 

9.                   SITE 17  Corona, California

 

Deed of Trust, Assignment
of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc.
to Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Riverside County Clerk in Riverside County,
California

 

10.            SITE 18  Fresno, California

 

Deed of Trust, Assignment
of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc.
to Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Fresno County Recorder in Fresno County,
California

 

11.            SITE 19  Irvine, California

 

Deed of Trust, Assignment
of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc.
to Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the County of Orange County Recorder in Orange
County, California

 

 

12.            SITE 20  Los Angeles, California

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Los Angeles County Clerk in Los Angeles County,
California

 

13.            SITE 21  Milpitas, California

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Santa Clara County Recorder in Santa Clara County,
California

 

14.            SITE 22  Santa Clara, California

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Santa Clara County Recorder in Santa Clara County, California

 

15.            SITE 24  Jacksonville, Florida

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Duval County
Recorder in Duval County, Florida

 

16.            SITE 25  Miami, Florida

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Dade County Recorder
in Dade County, Florida

 

17.            SITE 27  Stone Mountain, Georgia

 

Deed to Secure Debt, Assignment of Leases and Rents,
and Security Agreement, executed by Smurfit-Stone
Container Enterprises, Inc. to Deutsche Bank Trust Company Americas, as
Collateral Agent, dated November 1, 2004 to be recorded with the DeKalb
County Recorder in DeKalb County, Georgia

 

 

18.            SITE 29  Carol Stream, Illinois

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the DuPage County
Recorder in DuPage County, Illinois

 

19.            SITE 31  Galesburg, Illinois

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Knox County Recorder
in Knox County, Illinois

 

20.            SITE 32  Highland, Illinois

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Madison County
Recorder in Madison County, Illinois

 

21.            SITE 33  Morris, Illinois

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Grundy County
Recorder in Grundy County, Illinois

 

22.            SITE 34  St. Charles, Illinois

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Kane County Recorder
in Kane County, Illinois

 

23.            SITE 36  Fort Wayne, Indiana

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004  to be recorded with the Allen County
Recorder in Allen County, Indiana

 

 

24.            SITE 37  Frankfort, Indiana

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Clinton County
Recorder in Clinton County, Indiana

 

25.            SITE 38  Muncie, Indiana

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Delaware County
Recorder in Delaware County, Indiana

 

26.            SITE 40  Sioux City, Iowa

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Woodbury County Recorder in Woodbury County, Iowa

 

27.            SITE 41  Louisville, Kentucky

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Jefferson County Clerk in Jefferson County, Kentucky

 

28.            SITE 44  Chesterfield, Missouri

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the City of St. Louis Recorder of Deeds in St. Louis
County, Missouri

 

29.            SITE 45  N. Kansas City, Missouri

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Clay County Clerk in Clay County, Missouri

 

 

30.            SITE 46  Pacific, Missouri

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Franklin County Recorder of Deeds in Franklin,
Missouri

 

31.            SITE 48  New Hartford, New York

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Oneida County Clerk in Oneida County, New York

 

32.            SITE 49  Greensboro, North Carolina

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Register of Deeds in Guilford County, North Carolina

 

33.            SITE 51  Shelby, North Carolina

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Cleveland County Register Of Deeds in Cleveland
County, North Carolina

 

34.            SITE 52  Winston-Salem, North Carolina

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Forsyth County Clerk Registrar of Deeds Office in
Forsyth County, North Carolina

 

35.            SITE 53  Wilson, North Carolina

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Wilson Register of Deeds in Wilson County, North
Carolina

 

 

36.            SITE 54  Cincinnati, Ohio

 

Open-End Mortgage,
Assignment of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Hamilton County Recorder in Hamilton County, Ohio

 

37.            SITE 55  Norwood, Ohio

 

Open-End Mortgage,
Assignment of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Hamilton County Recorder in Hamilton County, Ohio

 

38.            SITE 56  Ravenna, Ohio

 

Open-End Mortgage,
Assignment of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Portage County Recorder in Portage County, Ohio

 

39.            SITE 57  Solon, Ohio

 

Open-End Mortgage, Assignment
of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Cuyahoga County Clerk in Cuyohoga County, Ohio

 

40.            SITE 58  Portland, Oregon

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Multnomah County Clerk in Multnomah County, Oregon

 

41.            SITE 59  North Wales, Pennsylvania

 

Open-End Mortgage, Assignment of Rents and Security
Agreement, executed by Smurfit-Stone Container Enterprises, Inc. to
Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Montgomery County Recorders Office in Montgomery
County, Pennsylvania

 

 

42.            SITE 60  Aston, Pennsylvania

 

Open-End Mortgage, Assignment of Rents and Security
Agreement, executed by Smurfit-Stone Container Enterprises, Inc. to
Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Delaware County Recorder of Deeds in Delaware
County, Pennsylvania

 

43.            SITE 61  Valley Forge, Pennsylvania

 

Open-End Mortgage, Assignment of Rents and Security
Agreement, executed by Smurfit-Stone Container Enterprises, Inc. to
Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Montgomery County Recorders Office in Montgomery
County, Pennsylvania

 

44.            SITE 63  Knoxville, Tennessee

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Knox County Register Of Deeds in Knox County,
Tennessee

 

45.            SITE 64  Memphis, Tennessee

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Shelby County Register in Shelby County, Tennessee

 

46.            SITE 65  Humboldt, Tennessee

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Gibson County Register of Deeds in Gibson County,
Tennessee

 

47.            SITE 65(a)  Murfreesboro,
Tennessee

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Rutherford County Recorder in Rutherford County,
Tennessee

 

 

48.            SITE 67  Ft. Worth, Texas

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Tarrant County Clerk in Tarrant County, Texas

 

49.            SITE 68  Houston, Texas

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Harris County Clerks Office in Harris County, Texas

 

50.            SITE 69  Renton, Washington

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the King County Auditor in King County, Washington

 

51.            SITE 70  Milwaukee, Wisconsin

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Milwaukee County Registrar of Deeds in Milwaukee
County, Wisconsin

 

52.            M2-FL-LF  Panama City, Florida

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with Bay County Recorders
Office in Bay County, Florida

 

53.            M4-LA-F  Hodge, Louisiana

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc.
to Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Jackson Parish Clerk of Court in Jackson Parish,
Louisiana

 

 

54.            M5-OH-F  Coshocton, Ohio

 

Open-End Mortgage,
Assignment of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Coshocton County
Recorder in Coshocton County, Ohio

 

55.            M6-SC-F  Florence, South Carolina

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Florence County
Clerk Of Court in Florence County, South Carolina

 

56.            M7-VA-F  Hopewell, Virginia

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Hopewell City Clerk of Circuit Court in Hopewell
County, Virginia

 

57.            M8-FL-F  Jacksonville, Florida

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Duval County Recorder
in Duval County, Florida

 

58.            P15-GA-F 
Atlanta (East), Georgia

 

Deed to Secure Debt, Assignment of Leases and Rents,
and Security Agreement, executed by Smurfit-Stone Container Enterprises, Inc.
to Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the DeKalb County Recorder in DeKalb County, Georgia

 

59.            P34-MA-F  Mansfield, Massachusetts

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by
Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust Company
Americas, as Collateral Agent, dated November 1, 2004 to be recorded with
the Bristol North County Register of Deeds in Bristol North County,
Massachusetts

 

 

60.            P61-PA-F  Philadelphia (East), Pennsylvania

 

Open-End Mortgage, Assignment of Rents and Security
Agreement, executed by Smurfit-Stone Container Enterprises, Inc. to
Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Philadelphia County Recorder in Philadelphia
County, Pennsylvania

 

61.            P63-PA-F  Williamsport, Pennsylvania

 

Open-End Mortgage, Assignment of Rents and Security
Agreement, executed by Smurfit-Stone Container Enterprises, Inc. to
Deutsche Bank Trust Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Lycoming County Recorder Of Deeds in Lycoming
County, Pennsylvania

 

62.            P70-TX-F  El Paso (East), Texas

 

Deed of Trust, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the El Paso County
Clerks Office in El Paso County, Texas

 

63.            P76-TX-F  Tyler, Texas

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Smith County Clerks
Office in Smith County, Texas

 

64.            P78-VA-F  Richmond (North), Virginia

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Henrico County Circuit Court Clerk in Henrico County,
Virginia

 

65.            JSC-1-AL  Stevenson, Alabama

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Jackson County
Recorder in Jackson County, Alabama

 

 

66.            JSC-2-GA  Covington, Georgia

 

Deed to Secure Debt, Assignment of Leases and Rents,
and Security Agreement, executed by Smurfit-Stone
Container Enterprises, Inc. to Deutsche Bank Trust Company Americas, as
Collateral Agent, dated November 1, 2004 to be recorded with the Newton
County Clerk in Newton County, Georgia

 

67.            JSC-3-IL  Bridgeview, Illinois

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Cook County Recorder
in Cook County, Illinois

 

68.            JSC-4-OH  Washington, Ohio

 

Open-End Mortgage,
Assignment of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Fayette County Recorder in Fayette County, Ohio

 

69.            JSC-5-TN  Lewisburg, Tennessee

 

Deed of Trust, Assignment of Leases and Rents,
Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Marshall County Register Of Deeds in Marshall County,
Tennessee

 

70.            SLP-1-VA  King William County, Virginia

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the King William County
Circuit Court Clerk in King William County, Virginia

 

71.            SLP-2-VA  Roanoke, Virginia

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Clerk’s Office,
Circuit Court, City of Roanoke in Roanoke County, Virginia

 

 

72.            SLP-3-MD  Baltimore, Maryland

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Clerk’s Office of
the Circuit Court in Anne Arundel County, Maryland

 

73.            SLP-4-VA  Richmond, Virginia

 

Deed of Trust, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container
Enterprises, Inc. to Deutsche Bank Trust Company Americas, as Collateral
Agent, dated November 1, 2004 to be recorded with the Henrico County
Circuit Court Clerk in Henrico County, Virginia

 

74.            SLP-5-NY  North Tonawanda, New York

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Niagara County Clerk in Niagara County, New York

 

75.            SLP-6-SC  Latta, South Carolina

 

Mortgage, Assignment of Leases and Rents, Security
Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Dillon County Clerk of Court in Dillon County, South
Carolina

 

76.            SLP-7-WI  Adams, Wisconsin

 

Mortgage,
Assignment of Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Adams County Register Of Deeds in Adams County,
Wisconsin

 

77.            SLP-8-MA  Springfield, Massachusetts

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust
Company Americas, as Collateral Agent, dated November 1, 2004 to be
recorded with the Hampden County Registry Of Deeds in Hampden County,
Massachusetts

 

78.            SLP-9-MA  Mansfield, Massachusetts

 

Mortgage, Assignment of
Leases and Rents, Security Agreement and Financing Statement, executed by Smurfit-Stone Container Enterprises, Inc. to Deutsche Bank Trust 

 

 

Company Americas, as Collateral Agent, dated November 1,
2004 to be recorded with the Bristol North County Registry of Deeds in Bristol North County, Massachusetts

 

Smurfit-Stone Container Canada Inc.:

 

1.       Delivery Agreement of SSC
Canada for Demand Debenture with respect to the Brampton and Burlington
Properties.

 

2.       Assignment of Rents between
SSC Canada and Deutsche Bank Trust Company Americas with respect to the
Brampton and Burlington Properties.

 

3.       Demand Debenture of SSC Canada with respect to
the Brampton and Burlington Properties.

 

Smurfit-MBI:

 

1.       Demand Debenture of MBI
Limited/Limitee in its capacity as General Partner of Smurfit-MBI.

 

2.       Delivery Agreement of MBI
Limited/Limitee in its capacity as General Partner of Smurfit-MBI.

 

MBI Limited/Limitee

 

1.       Demand Debenture of MBI
Limited/Limitee for registration against the real property owned by Smurfit-MBI
and registered in the name of MBI Limited/Limitee in the Province of Ontario
(the “Ontario Debenture”).

 

2.       Delivery Agreement of MBI
Limited/Limitee with respect to the Ontario Debenture.

 

3.       Demand Debenture of MBI
Limited/Limitee for registration against the real property owned by Smurfit-MBI
and registered in the name of MBI Limited/Limitee in the Province of Manitoba
(the “Manitoba Debenture”).

 

4.       Delivery Agreement of MBI
Limited/Limitee with respect to the Manitoba Debenture.

 

5.       Demand Debenture of MBI
Limited/Limitee for registration against the real property owned by Smurfit-MBI
and registered in the name of MBI Limited/Limitee in the Province of
Saskatchewan (the “Saskatchewan Debenture”).

 

6.       Delivery Agreement of MBI
Limited/Limitee with respect to the Saskatchewan Debenture.

 

 

7.       Demand Debenture of MBI
Limited/Limitee for registration against the real property owned by Smurfit-MBI
and registered in the name of MBI Limited/Limitee in the Province of Alberta
(the “Alberta Debenture”).

 

8.       Delivery Agreement of MBI
Limited/Limitee with respect to the Alberta Debenture.

 

Smurfit-Stone Container Canada Inc., MBI Limited/Limitee,
Smurfit-MBI and Francobec Company:

 

1.       The Hypothecs.

 

 

Schedule
1.01(e)

 

RECEIVABLES
PROGRAM DOCUMENTS

 

Stone Container
Corporation:

 

Purchase Agreement dated
as of October 13, 1999 by and among Banc One Capital Markets, Chase
Securities, Inc., Stone Receivables Corporation and Stone

 

Certificate Purchase
Agreement dated October 15, 1999 by and among Stone Receivables
Corporation, Falcon Asset Securitization Corporation, Banc One Capital Markets,
Chase Securities, Inc. and Stone

 

Pooling and Servicing
Agreement dated as of October 1, 1999 among Stone Receivables Corporation,
Chase Securities, Inc. and Stone

 

Series 1999-1
Supplement to PSA dated as of October 15, 1999 among Stone Receivables
Corporation, Chase Securities, Inc. and Stone

 

Series 1999-2 Supplement to PSA dated as of October 15, 1999, as
amended by Amendment No. 1 to Series 1999-2 Supplement dated as of March 30,
2001, among Stone Receivables Corporation, Chase
Securities, Inc. and Stone

 

Receivables Purchase
Agreement dated as of October 15, 1999, as amended by Amendment No. 1
to Receivables Purchase Agreement dated as of March 30, 2001, between
Stone and Stone Receivables Corporation

 

Short-Term Note dated October 15,
1999 executed by Stone Receivables Corporation payable to the order of Stone

 

Short-Term Note dated March 30,
2001 executed by Stone Receivables Corporation payable to St. Laurent
Paperboard (U.S.) Inc.

 

Additional Seller
Supplement dated March 30, 2001 between Stone and St. Laurent Paperboard
(U.S.) Inc.

 

JSC(U.S.):

 

Receivables Purchase and Sale Agreement dated February 23,
1995

 

Liquidity Agreement dated February 23, 1995

 

Allocation and Financial Services Agreement JSC (U.S.)
and the Company dated February 23, 1995

 

 

Depositary, Issuing and Paying Agent Agreement (Series A
and B Commercial Paper) dated February 23, 1995

 

Commercial Paper Dealer Agreements dated February 23,
1995

 

Form of Commercial Paper Private Placement
Memorandum

 

Term Loan Agreement dated February 23, 1995

 

Affiliate Receivables Sale Agreement dated March 31,
1996

 

First Omnibus Amendment dated March 3, 1996

 

Amendment No. 2 to Receivables Purchase and Sale
Agreement dated August 19, 1997

 

Amendment No. 2 to Liquidity Agreement and
Extension Request dated August 19, 1997

 

Amendment No. 2 to Term Loan Agreement dated August 19,
1997

 

Amendment No. 3 to Liquidity Agreement and
Extension Request and Waiver dated March 9, 2001

 

Smurfit-Stone Container
Canada, Inc.:

 

Receivables Purchase
Agreement dated as of March 30, 2004 between MBI, in its capacity as
General Partner of SMBI, Computershare Trust Company of Canada, in its capacity
as trustee of King Street Funding Trust and Scotia Capital Inc., as
administrator of Computershare Trust Company of Canada.

 

Support Agreement made as
of March 30, 2004 between Stone Container Corporation and Computershare
Trust Company of Canada, in its capacity as trustee of King Street Funding
Trust.

 

 

Schedule
2.01

 

COMMITMENTS

 

	
  Institution

  	
   

  	
  Revolving

  Credit

  Commitments

  	
   

  	
  Revolving

  (Canadian) Credit

  Commitments

  	
   

  	
  Tranche B

  Commitments

  	
   

  	
  Tranche C

  Commitments

  	
   

  	
  Deposit Funded

  Commitments

  	
   

  
	
  Deutsche Bank
  Trust Company Americas

  	
   

  	
  $

  	
  92,394,801.99

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  975,000,000.00

  	
   

  	
  $

  	
  300,000,000.00

  	
   

  	
  $

  	
  121,930.726.03

  	
   

  
	
  Deutsche Bank AG

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  46,605,198.01

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  JPMorgan Chase
  Bank

  	
   

  	
  $

  	
  78,394,801.99

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  JPMorgan Chase
  Bank, Toronto Branch

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  46,605,198.01

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Bank of America,
  N.A.

  	
   

  	
  $

  	
  58,153,465.34

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Bank of America,
  N.A. (Canada Branch)

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  26,846,534.66

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Credit Industriel
  et Commercial

  	
   

  	
  $

  	
  22,000,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Farm Credit Bank
  of Texas

  	
   

  	
  $

  	
  7,000,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Farm Credit West,
  PCA

  	
   

  	
  $

  	
  4,000,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  General Electric
  Capital Corporation

  	
   

  	
  $

  	
  7,500,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  GE Canada Finance
  Holding Company

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  2,500,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Goldman Sachs
  Credit Partners L.P.

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Morgan Stanley
  Bank

  	
   

  	
  $

  	
  37,500,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Morgan Stanley
  Senior Funding (Nova Scotia)

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  12,500,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Natexis Banques
  Populaires

  	
   

  	
  $

  	
  3,000,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  National City
  Bank

  	
   

  	
  $

  	
  7,500,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  National City
  Bank, Canada Branch

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  2,500,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  North Fork
  Business Capital Corporation

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Société Générale

  	
   

  	
  $

  	
  58,153,465.34

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Société Générale
  (Canada)

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  26,846,534.66

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  The Bank of New
  York

  	
   

  	
  $

  	
  50,000,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  The Bank of Nova
  Scotia

  	
   

  	
  $

  	
  58,153,465.34

  	
   

  	
  $

  	
  26,846,534.66

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  UBS Loan Finance
  LLC

  	
   

  	
  $

  	
  26,250,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  UBS AG Canada
  Branch

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  8,750,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Wachovia Bank

  	
   

  	
  $

  	
  35,000,000.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  

 

 

Schedule
4.07

 

CERTAIN
TITLE MATTERS

 

A.            On March 15, 2000 SSC Canada received notice from the Council of
the Atikamekw Nation that the Council had sent letters to the Ministre des ressources naturelles (Québec) and the Ministre responsable des affaires autochtones et responsable de la
faune et des parcs (Québec) as well as to the Minister responsible
for Aboriginal Affairs and North Canada. 
The letters indicated that the Council for the Atikamekw Nation was
informed of a transaction between SSC Canada and SSCC whereby the assets of SSC
Canada would be acquired by SSCC.  The
letters alleged that these assets include two parcels of land, which the
Atikamekw Nation recognizes as SSC Canada private lands, aggregating more than
4,000 square kilometres which are situated in the territory which is the
subject of land claims by the Council of the Atikamekw Nation and where the
Atikamekw people have ancestral rights. 
The letters state that any such transaction must accommodate the
exercise of such ancestral rights in the context of the on-going negotiations
and requested that it be ensured that such lands be subject to a common forest
management plan and to “forestry intervention norms”.  On March 30, 2000 representatives of SSC
Canada met with the Associate General Secretary of Indian Affairs and the
Deputy Minister of Natural Resources in order to clarify the position that the
Government of Québec will take with respect to the demands of the Atikamekw
Nation.  The representatives of SSC
Canada were informed that discussions are taking place between the Atikamekw
Nation and the Government of Québec with respect to land claims.  SSC Canada was informed that the Government
of Québec has always excluded private lands from any settlement with aboriginal
peoples.  It was confirmed to SSC Canada
that the settlement proposal to date, tabled by the Government, excluded SSC
Canada’s private lands.

 

B.            All “Freehold Immoveables” pursuant to a certain Asset Acquisition
Agreement entered into between Avenor Inc. (predecessor corporation of Bowater
Inc.) and SSC Canada, dated as of June 15, 1994 are optioned to Bowater
Inc. by way of a right of first refusal the technical descriptions of which do
not allow the registration of the ownership rights of SSC Canada thereto.  In such agreement, “Freehold Immoveables” is
defined as “those immoveables designated as such in the Deeds of Sale for the
immoveables located in the Province of Québec together with buildings,
structures, erections, appurtenances, fixtures and other improvements situated
on, in, over or under such immoveables, if any, and all assignable warranties
of any Person covering all or any part of aforesaid Immoveables” and “Deeds of
Sale” is defined as “the deeds of sale of immoveables located in the Province
of Québec between the Parties executed before John Howard Watson, Notary, on June 6,
1994, under his minute numbers 21747, 21748 and 21749, respectively, as well as
the deed of correction between Talbert Inc. and Avenor dated June 2, 1994,
executed before Notary John Howard Watson under his minute number 21746 and the
deed of correction between Avenor and St. Laurent dated June 10, 1994,
executed before Notary John Howard Watson under his minute number 21751”.

 

 

Schedule
4.08

 

	
   

  	
   

  	
  SUBSIDIARIES

  	
   

  	
   

  

 

	
  Subsidiary

  	
   

  	
  Jurisdiction
  of Organization

  	
   

  	
  Percentage
  Ownership

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Domestic
  Subsidiaries

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone Container
  Enterprises, Inc.

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  JSC Capital, LLC

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clayton Partners
  Limited

  	
   

  	
  Bermuda

  	
   

  	
  100% owned by SSCC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Packaging
  Unlimited, Inc.(1)

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lot 24D Redevelopment
  Corporation

  	
   

  	
  Missouri

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Timber Capital Holdings
  LLC

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Newsprint
  Corporation

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Finance Corporation

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Atlanta & St.
  Andrews Bay Railroad Corporation

  	
   

  	
  Florida

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cameo Container
  Corporation

  	
   

  	
  Illinois

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone International
  Services Corporation

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Global, Inc.

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Receivables
  Corporation

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Innovative Packaging
  Corp.

  	
   

  	
  Delaware

  	
   

  	
  85% owned by SSCE

  

 

(1) Packaging Unlimited, Inc. (“PUI”) is a Delaware corporation
that is qualified to do business in Puerto Rico.  For purposes of the Credit Agreement, PUI is
deemed a “Foreign Subsidiary.”

 

 

	
  SLP Finance I, Inc.

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SLP Finance
  II, Inc.

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Connecticut
  Paperboard Properties, Inc.

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Waterfront LLC

  	
   

  	
  Florida

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ORPACK-Stone
  Corporation

  	
   

  	
  Delaware

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SMBI Inc.

  	
   

  	
  Delaware

  	
   

  	
  100% owned by
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Canadian
  Subsidiaries

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone Container
  Canada Inc.

  	
   

  	
  Nova Scotia

  	
   

  	
  100% of Class A
  shares owned by SSCE 100% of Class C shares owned by Stone Container
  Finance Company of Canada 100% of Class D shares owned by SLP Finance
  General Partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container Finance
  Company of Canada

  	
   

  	
  Nova Scotia

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container Finance
  Company of Canada II

  	
   

  	
  Nova Scotia

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Laurent Display and
  Packaging Inc.

  	
   

  	
  Canada

  	
   

  	
  100% owned by SSC
  Canada

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SLP Finance General
  Partnership

  	
   

  	
  Québec

  	
   

  	
  50% owned by SLP
  Finance I, Inc. 

  50% owned by SLP
  Finance II, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Francobec Company

  	
   

  	
  Nova Scotia

  	
   

  	
  100% owned by SLP
  Finance General Partnership

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Laurent I.P.C. Inc.

  	
   

  	
  Canada

  	
   

  	
  100% owned by SSC
  Canada

  

 

 

	
  605681 N. B. Inc.

  	
   

  	
  Canada

  	
   

  	
  100% owned by SSCC Lux
  VII Sarl

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MBI Limited / Limitee

  	
   

  	
  New Brunswick

  	
   

  	
  50% owned by
  Smurfit-Stone Container Canada Inc. and by 3083527 Nova Scotia Company

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-MBI

  	
   

  	
  Ontario

  	
   

  	
  49.999% owned by
  Smurfit-Stone Container Canada Inc., 49.999% owned by 3083527 Nova Scotia
  Company and 0.0002% owned by MBI Limited / Limitee

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  639647 British Columbia
  Ltd.

  	
   

  	
  British Columbia

  	
   

  	
  70% owned by
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Specialty Containers
  Inc.

  	
   

  	
  Alberta

  	
   

  	
  100% owned by 639647
  British Columbia Ltd.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.C. Shipper Supplies
  Ltd.

  	
   

  	
  British Columbia

  	
   

  	
  100% owned by 639647
  British Columbia Ltd.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3083527 Nova Scotia
  Company

  	
   

  	
  Nova Scotia

  	
   

  	
  100% owned by
  Smurfit-Stone Container Canada Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  European
  Subsidiaries

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SSCC Lux I Sarl

  	
   

  	
  Luxembourg

  	
   

  	
  100% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SSCC Lux VII Sarl

  	
   

  	
  Luxembourg

  	
   

  	
  100% owned by SSCC Lux I Sarl

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SSCC Lux III Sarl

  	
   

  	
  Luxembourg

  	
   

  	
  100% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Latin
  American Subsidiaries

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container de
  Mexico S. de R.L. de C.V.

  	
   

  	
  Mexico

  	
   

  	
  99.994% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pacific
  Subsidiaries

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Truepenny
  International Inc.

  	
   

  	
  British Virgin
  Islands

  	
   

  	
  100% owned by SSCE

  

 

 

	
  Smurfit-Stone PSC
  (Asia) Limited

  	
   

  	
  Hong Kong

  	
   

  	
  100% owned by Stone
  Truepenny International, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PT Stone Millennium
  Container Indonesia

  	
   

  	
  Indonesia

  	
   

  	
  80% owned by SSCE 

  20% owned by Cameo
  Container Corporation

  

 

 

Schedule
4.09

 

LITIGATION
AND COMPLIANCE WITH LAWS

 

In
1998, seven putative class action complaints were filed in the United States
District Court for the Northern District of Illinois and in the United States
District Court for the Eastern District of Pennsylvania. These complaints
alleged that Stone Container reached agreements in restraint of trade that
affected the manufacture, sale and pricing of corrugated products in violation
of antitrust laws. The complaints were amended to name several other
defendants, including JSC(U.S.) and SSCC. The suits sought an unspecified
amount of damages arising out of the sale of corrugated products for a period
during 1993-95. The complaints were transferred to and consolidated in the
United States District Court for the Eastern District of Pennsylvania, which
certified two plaintiff classes. In November 2003, SSCC reached an
agreement to settle the antitrust class action cases pending against SSCC,
Stone Container and JSC(U.S.). The companies will make an aggregate settlement
payment of $92.5 million, one-half of which was paid in December 2003
and the remainder of which will be paid in January 2005. All of the other
defendants have also entered into agreements to settle these class actions;
however, most of the defendants in the class actions continue to be defendants
in 12 lawsuits brought on behalf of numerous parties that have opted out of the
class actions to seek their own recovery. All of these cases have been
transferred to the same United States District Court for the Eastern District
of Pennsylvania for pretrial proceedings. SSCC continues to vigorously defend
these opt-out cases, and believes its liability for these matters was
adequately reserved at September 30, 2004.

 

 

Schedule
4.15

 

ENVIRONMENTAL
MATTERS

 

In May 2003, the
JSCUS flexible packaging facility in Schaumburg, Illinois received a Violation
Notice from the Illinois Environmental Protection Agency (“IEPA”)
alleging violations of various provisions of the Illinois Environmental
Protection Act and certain conditions of the applicable air permit issued to
the facility.  In June 2003, the
facility received a Notice of Violation and Finding of Violation from the
United States Environmental Protection Agency (“USEPA”) containing
allegations similar to those made by the State. 
The allegations primarily relate to the alleged failure of two
afterburner systems designed to capture and reduce certain emissions from
printing presses below required levels, and the potential impact of such
failure on past and future regulatory standards, permitting requirements,
emission credit requirements, recordkeeping and reporting.  The two afterburners at the facility have
been replaced with a new Regenerative Thermal Oxidizer.  JSCUS has responded to the IEPA Violation
Notice and the EPA Notice of Violation and Finding of Violation, and is
attempting to reach an acceptable resolution with both agencies.

 

In September 1997,
USEPA issued a Notice of Violation and Compliance Order to the Hopewell,
Virginia mill alleging non-compliance with air emissions limitations for the
smelt dissolving tank and failure to comply with New Source Performance
Standards applicable to certain other equipment.  In April 1999, USEPA issued a Notice of
Violation alleging that the Hopewell mill “modified” the recovery boiler and
increased nitrogen oxide emissions without obtaining a required construction
permit.  The Virginia Department of
Environmental Quality (“Virginia DEQ”) issued a similar Notice of
Violation in May 1999.  Stone, USEPA
and the Virginia DEQ have executed a Consent Decree to settle alleged air
violations at the Hopewell mill.  Once
the Consent Decree is entered by the United States District Court, Stone will
be required to pay civil penalties of $501,000 to USEPA and $334,000 to
Virginia DEQ.

 

In April 1999, USEPA
and the Virginia DEQ each issued a Notice of Violation to St. Laurent
Paperboard Inc.’s mill located in West Point, Virginia, which St. Laurent
acquired from Chesapeake Corporation in May 1997.  (St. Laurent has been merged into
Stone.)  In general, the Notices of
Violation alleged that, from 1984 to the present, the West Point mill installed
certain equipment and modified certain production processes without obtaining
the required permits and otherwise violated certain applicable air emission
requirements.  St. Laurent made a claim
for indemnification from Chesapeake for its costs relating to these Notices of
Violation pursuant to the purchase agreement between St. Laurent and Chesapeake.  This claim was settled in June 2003.  Stone, USEPA and the Virginia DEQ have
executed a Consent Decree to settle alleged air violations at the West Point
mill.  Once the Consent Decree is entered
by the United States District Court, Stone will be required to pay civil
penalties of $475,000 to USEPA and $475,000 to Virginia DEQ.  In addition, the mill will be required to
implement a compliance program that includes installing certain air pollution
control devices and retiring two power boilers on-site.

 

SSCC and its Subsidiaries
face potential liability as a result of releases, or threatened releases, of
hazardous substances into the environment from various sites owned and operated
by 

 

 

third parties at which
company-generated wastes have allegedly been deposited.  Generators of hazardous substances sent to
off-site disposal locations at which environmental problems exist, as well as
the owners of those sites and certain other classes of persons (generally
referred to as “potentially responsible parties” or “PRPs”) are,
in most instances, subject to joint and several liability for response costs
for the investigation and remediation of such sites under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”)
and analogous state laws, regardless of fault or the lawfulness of the original
disposal.  SSCC and/or its Subsidiaries
have been identified as a PRP at a number of federal and/or state sites where
response action may be required, and as a result may have joint and several
liability for cleanup costs at these sites listed on Attachment A.  Attachment A is a list of sites where
SSCC and/or its Subsidiaries have been identified as a PRP or have received a
request for information.  Liability for
CERCLA sites is typically shared with other PRPs, and costs are commonly
allocated according to relative amounts of waste deposited.

 

In addition to
participating in the remediation of sites owned by third parties, SSCC and/or
its Subsidiaries are conducting investigation and/or remediation of certain
properties they own or formerly owned in the United States and Canada.  SSCC and/or its Subsidiaries also are
conducting environmental closure activities at certain facilities in the United
States and Canada where manufacturing operations have been discontinued,
including the pulp and paper mills located in Jacksonville, Florida; Alton,
Illinois; Circleville, Ohio; and Thunder Bay, Ontario.  Most of the work related to the closure of
the landfill site at Thunder Bay, Ontario is expected to be completed by the
end of June 2005.  Reserves have
been established for environmental closure costs at each of these idle mills.

 

Various federal, state and local
governmental authorities have developed and maintain numerous databases or
lists of environmental information, including lists of leaking underground
storage tanks, landfill facilities, hazardous waste sites and the like.  The information in these databases may
contain errors, and certain databases and lists are posted for public viewing
without the opportunity for property owners and operators to correct any errors
that appear in them.  Further, the
inclusion of a property on an environmental database or list maintained by a
governmental agency, in and of itself, may not trigger the need for
investigation or remediation.  To the
knowledge of SSCC and each Borrower, the following Real Properties appear on
the Comprehensive Environmental Response, Compensation, Liability Information
System List (“CERCLIS”) maintained by USEPA:

 

	
  (a)

  	
  455
  Factory Street, Wabash, Indiana

  
	
   

  	
  CERCLIS
  Archive - No Further Remedial Action Planned

  
	
   

  	
   

  
	
  (b)

  	
  Meridian &
  Waterworks Road, Wabash, Indiana

  
	
   

  	
  CERCLIS
  Archive - No Further Remedial Action Planned

  
	
   

  	
   

  
	
  (c)

  	
  1915
  Wigmore Avenue, Jacksonville, Florida

  
	
   

  	
  CERCLIS

  
	
   

  	
   

  
	
  (d)

  	
  Highway
  31 South, Brewton, Alabama

  
	
   

  	
  CERCLIS
  — Removal Only Site (No Site Assessment Work Needed)

  

 

 

	
  (e)

  	
  1101
  South Denton Road, Pacific, Missouri

  
	
   

  	
  CERCLIS
  Archive - No Further Remedial Action Planned

  
	
   

  	
   

  
	
  (f)

  	
  2500
  De La Cruz Blvd, Santa Clara, California

  
	
   

  	
  CERCLIS - No Further
  Remedial Action Planned

  
	
   

  	
   

  
	
  (g)

  	
  47 Maple Street, Mansfield, Massachusetts

  
	
   

  	
  CERCLIS — No Further
  Remedial Action Planned

  
	
   

  	
   

  
	
  (h)

  	
  910 Industrial Street,
  Hopewell, Virginia

  
	
   

  	
  CERCLIS — No Further
  Remedial Action Planned

  
	
   

  	
   

  
	
  (i)

  	
  1 South Everett Street,
  Panama City, Florida

  
	
   

  	
  CERCLIS Archive — No
  Further Remedial Action Planned

  
	
   

  	
   

  
	
  (j)

  	
  2357 South 900 West,
  Salt Lake City, Utah

  
	
   

  	
  CERCLIS Archive — No
  Further Remedial Action Planned

  
	
   

  	
   

  
	
  (k)

  	
  19th & Main Street,
  West Point, Virginia

  
	
   

  	
  CERCLIS Archive — No
  Further Remedial Action Planned

  

 

The operations conducted
by SSCC and the Borrowers are subject to extensive environmental regulation by
federal, state and local authorities.  In
the past, SSCC and the Borrowers have made significant capital expenditures to
comply with air, water and other environmental laws and regulations,
particularly the “Cluster Rule.”  The “MACT
I” portion of the Cluster Rule required the conversion of the bleaching
operations at Panama City, Florida and Brewton, Alabama to elemental chlorine
free bleaching processes, the installation of systems at several mills for the
collection and destruction of low volume, high concentration gases, and the
implementation of best management practices, such as spill controls, at various
mills.  These projects have been
completed.  The “MACT I” portion of the
Cluster Rule also will require the implementation of systems to collect
high volume, low concentration gases at various mills, unless another
alternative measure is approved by the authorizing agency.  These mills will have until 2006 to comply
with these requirements (or possibly longer if an extension is approved).  The “MACT II” portion of the Cluster Rule generally
requires the control of particulate matter from recovery boilers, smelt
dissolving tanks and lime kilns at Kraft pulping mills and the control of total
hydrocarbons from semi-chemical combustion units.  MACT II had a compliance date of March 2004.

 

In addition to Cluster Rule compliance,
the SSCC and the Borrowers anticipate additional expenditures related to a new
regulation that will limit emissions of heavy metals from
industrial/commercial/institutional boilers (“Boiler MACT”).  Facilities will have until 2007 to comply
with Boiler MACT requirements.  In
Canada, the Quebec Ministry of the Environment is working on an amendment of
the general air regulation that would impose new particulate limits on bark
boilers.  Although the regulation is not
yet final, if promulgated in the form currently proposed, it could require the
installation of a particulate control device at the Pontiac, Quebec mill.  That Provincial regulation also contains
standards concerning visible emissions, which 

 

 

may require certain
modifications to the chip handling system at the Pontiac mill.  Additionally, the Quebec Ministry of the
Environment adopted a new dam safety regulation in April 2002.  SSC 
Canada owns, or is required to pay operating expenses associated with,
certain dams in the Province, and upgrades to some of these dams may be required
to comply with the new regulation.

 

 

Schedule 4.15

Attachment A

 

ATTACHMENT A

 

Arivec
Chemicals Site, Douglasville, GA

Augustine
Mill Site, Wilmington, DE

Bill
Johns Waste Oil Site, Jacksonville, FL

Buzby
Landfill Site, Voorhees, NJ

Calumet
Container Site, Hammond, IN

Casmalia
Disposal Site, Santa Barbara, CA

Charles
George Landfill

Chattanooga
Creek Site, Chattanooga, TN

Cities
Services Site, Fernandina Beach, FL

Comb
Fill South Site, Flemington, NJ

Container
Recycling Site, Kansas City, KS

Cork
Street Landfill, Kalamazoo, MI

Crymes
Landfill Site, Tucker, GA

Double
Eagle Refinery, Oklahoma City, OK

Ellis
Road Site

Environmental
Waste Resources Site, Coal City, IL

Fisher-Calo,
Kingsbury, IN

Four
County Landfill Site, Delong, IN

Fox
Point Park Site, Wilmington, DE

Fox
River/Green Bay Site, Green Bay, WI

G&H
Landfill Site, Utica, MI

Galesburg
Site, IL

Gloucester
Environmental Management Services, Gloucester Township, NJ

Great
Lakes Container Corporation Site, St. Louis, MO

I.
Jones Recycling Sites, Ft. Wayne, IN

Jonas
Sewell Transfer Station, Gloucester County, NJ

Jones
Industrial Service Landfill Site, South Brunswick, NJ

Kane &
Lombard Site, Baltimore, MD

Ludlow
Sanitary Landfill Site, Utica, NY

Lykins
Landfill Site

M&J
Solvents Site, Atlanta, GA

Miami
County Incinerator and Landfill Site, Troy, OH

Morton-Springer
Site, Newark, NJ

MRE
Site

Muncie
Race Track Site, Muncie, IN

Operating
Industries Site, Monterey Park, CA

Pendleton
Site, Pendleton, NY

Pennsauken
Sanitary Landfill Site, Camden County, NJ

Peterson/Puritan
Inc. Site, Cumberland, RI

Pickettville
Road Landfill Site, Duval County, FL

PJP
Landfill Site, Jersey City, NJ

Ponderosa
Site, Ogdensburg, NY

 

 

Portland
Harbor Site, Portland, OR

PRC
Patterson Site, Patterson, CA

Rouse
Steel Drum Site, Jacksonville, FL

Sauer
Dump Site, Dundalk, MD

Seymour
Recycling Site, Seymour, IN

Toledo
Sawmill Site, Toledo, OR

Spectron
Site, Elkton, MD

Spring
Valley Landfill Site

Strausburg
Landfill Site, PA

Taylor
Road Site, Tampa, FL

Tippecanoe
Landfill Site, Lafayette, IN

Tri-County/Elgin
Landfill Site, Elgin, IL

US
Scrap Site

Volney
Site, Volney, NY

Washington
County Landfill Site, Washington County, MN

Waste
Disposal Engineering Superfund Site, Andover, MN

Western
Processing, Kent, WA

Wingate
Road Incinerator Site, FL

 

 

Schedule 4.17(a)

 

UCC LIEN
FILING OFFICES

 

1.             Secretary of the
State of Delaware

 

 

Schedule
4.17(b)

 

CANADIAN
LIEN FILING OFFICES

 

1.             At the Ministry of
Consumer and Commercial Relations (Ontario)

 

2.                                       Each
of the Hypothecs has been registered in the Register of Personal and Movable
Real Rights of the Province of Québec

 

3.                                       The
SSC Canada Hypothec has been and the SSC Canada New Hypothec must be registered
at the Land Registry Offices for the Registration Divisions of Montreal,
Shawinigan, La Tuque and Matane and must be registered at the Canadian
Intellectual Property Office and at the Ministry of Natural Resources (Québec)
pursuant to the Forest Act (Québec) and the Security Agreement (Canadian) must
be registered with the Canadian Intellectual Property Office and at the
Ministry of Natural Resources (Québec) pursuant to the Forest Act (Québec)

 

4.                                       The
Francobec Company Hypothec has been registered at the Land Registry Office for
the Registration Division of La Tuque

 

5.                                       Each
of the MBI Hypothec and the SMBI Hypothec have been registered at the Land
Registry Office for the Registration Division of Montreal

 

6.                                       Each of the Security Agreements (Canadian) has been filed in the filing
offices maintained under the Personal Property Security Acts in British
Columbia, Alberta, Saskatchewan, Manitoba, Nova Scotia and New Brunswick, as
applicable

 

 

Schedule
4.17(e)

 

MORTGAGE
FILING OFFICES

 

Smurfit-Stone Container
Enterprises, Inc. — Mortgaged Property:

 

See
Schedule 1.01(d)

 

Smurfit-Stone
Container Canada Inc. - Canadian Mortgaged Property:

 

1.                                       The
paperboard mill located at 1000 Chemin de l’Usine, La Tuque, Québec

 

a)                                      Filing
Office:  The Land Registry Office for the
Registration Division of La Tuque.

 

2.                                       The
corrugating medium mill located at 90 Parc Industriel, Matane, Québec

 

a)                                      Filing
Office:  The Land Registry Office for the
Registration Division of Matane.

 

3.                                       The
converting plant located at 15400 Sherbrooke Street Est, Montreal, Québec

 

a)                                      Filing
Office:  The Land Registry Office for the
Registration Division of Montreal.

 

4.                                       The
converting plant located at 747 Appleby Line, Burlington, Ontario

 

a)                                      Filing
Office:  The Land Registry Office for the
Land Titles Division of Halton (No. 20).

 

5.                                       The
chip mill located at 200 Chemin de la Riviere au Lait, Canton de Vallieres,
Haut St-Maurice, Québec

 

a)                                      Filing
Office:  The Land Registry Office for the
Registration Division of La Tuque.

 

6.             134 Kennedy Road
South, Brampton, Ontario

 

a)                                      Filing
Office:  The Land Registry Office for the
Land Titles Division of Peel (No. 43).

 

 

Smurfit-MBI and MBI
Limited/Limitee - Canadian Mortgaged Property:

 

1.             200 Brockport Drive and 730 Islington Avenue,
Toronto, Ontario:

 

a)                                      Filing Office:  The Land Registry Office for the Land Titles
Division of Toronto (No. 66)

 

2.             200 Water Street, Whitby, Ontario:

 

a)                                      Filing Office:  The Land Registry Office for the Land Titles
Division of Durham (No. 40)

 

3.             390 Woodlawn Road West, Guelph, Ontario:

 

a)                                      Filing Office:  The Land Registry Office for the Land Titles
Division of Wellington (No. 61)

 

4.             301 Forced Road, Pembroke, Ontario:

 

a)                                      Filing Office:  The Land Registry Office for the Land Titles
Division of Renfrew (No. 49)

 

5.             8150 Parkhill Drive, Milton, Ontario:

 

a)                                      Filing Office:  The Land Registry Office for the Land Titles
Division of Halton (No. 20)

 

6.             1360 Inkster Boulevard, Winnipeg, Manitoba:

 

a)                                      Filing Office:  The Winnipeg Land Titles Office

 

7.             P.O. Box 1155 1400 - 1st Avenue East,
Regina, Saskatchewan

 

a)                                      Filing Office:  The Saskatchewan Land Titles Registry

 

8.             1115 34th Avenue S.E., Calgary, Alberta

 

a)                                      Filing Office:  Land Titles Office (Calgary)

 

9.             8705-24th Street, Edmonton, Alberta:

 

a)                                      Filing Office:  Land Titles Office (Calgary)

 

10.           5550 Royalmount Avenue, Town of Mount Royal,
Quebec

 

 

a)                                      Filing Office:  The Land Registry Office for the Registration
Division of Montreal

 

11.           1035 Hodge Street, Saint-Laurent, Quebec:

 

a)                                      Filing Office:  The Land Registry Office for the Registration
Division of Montreal

 

 

Schedule 4.18

 

LABOR
MATTERS

 

The
Canadian Mills are currently operating with expired union contracts.  SSCC cannot be assured of the outcome of
bargaining with the unions in Canada and cannot make any assurances as to
future impact of any labor actions that may be taken by the unions with respect
to SSCC’s Canadian operations.  However,
SSCC does not believe that a Material Adverse Effect has occurred as of the
Closing Date as a result of the expired union contracts.

 

 

Schedule
4.19

 

OWNED
MATERIAL UNITED STATES REAL PROPERTY

 

Alabama

 

3200 Pinson Valley
Parkway

Box 170976

Birmingham, AL

 

Arkansas

 

6101 Patterson Street

Little Rock, AR

 

2021 S. 5th Street

Rogers, AR

 

California

 

1424 S. Raymond

P.O. Box 4199

Fullerton, CA

 

1078 Merrill Street

Salinas, CA

 

1901 Junction Avenue

San Jose, CA

 

15300 Marquardt Avenue

Santa Fe Springs, CA

 

13833 E. Freeway Drive

Santa Fe Springs, CA

 

Connecticut

 

74 Pickering Street

P.O. Box 193

Portland, CT

 

125 Depot Road

Uncasville, CT  06382

 

 

Colorado

 

5050 E. 50th Avenue

Denver, CO

 

Florida

 

1400 W. Tradeport

Jacksonville, FL

 

9469 Eastport Road

Jacksonville, FL  32218

 

One Everitt Avenue

Panama City, FL 
32401

 

101 Stone Blvd

Cantonment, FL

 

Georgia

 

1995 Lithonia Industrial

Atlanta, GA

 

55-65 Enterprise Blvd

Atlanta, GA

 

1000 Osbourne Street

Durango, GA

 

Illinois

 

Route 2, #5A

P.O. Box 608

Bloomington, IL

 

1415 W. 44th Street

Chicago, IL 
(Cameo)

 

1501 E. Voorhees Street

Danville, IL

 

Route 6 and Young Road

P.O. Box 151

Joliet, IL

 

 

1900 Foss Park Avenue

North Chicago, IL

 

1800 W. Oak Street

Herrin, IL

(ORPACK-Stone)

 

Indiana

 

1925 Stone Court

Mishawaka, IN

 

3101 State Street

P.O. Box 867

Columbus, IN

 

407 Adeway Road

Fowler, IN 47944

 

Iowa

 

3800 Dixon Street

Des Moines, IA

 

2300 Bridgeport Drive

P.O. Box 3227

Sioux City, IA

 

3972 Main Street

Keokuk, IA

 

Louisiana

 

5301 Jefferson Highway

Harahan, LA

 

Mill Street

Hodge, LA  71247

 

Maryland

 

725 Pittman Rd.

Baltimore, MD

 

 

Massachusetts

 

47 Maple Street

P.O. Box 389

Mansfield, MA

 

411 Oakland Street

Mansfield, MA 02048

 

421-431 Oakland Street

Mansfield, MA 02048

 

60 Maple Street

Mansfield, MA 02048

 

320, 356, 360 Parker
Street

Springfield, MA 01129

 

78 Verge Street

Springfield, MA 01129.

 

210 Verge Street

Springfield, MA 01129

 

Michigan

 

One Superior Way

Ontonagon, MI  49953

 

Minnesota

 

50 - 37th Avenue N.E.

Minneapolis, MN

 

655 41st Avenue North

St. Cloud, MN

 

Mississippi

 

1345 Flowood Drive

Jackson, MS

 

Turner Industrial Park

Saltillo, MS

 

 

1679 S. Green Street

P.O. Box 256

Tupelo, MS

 

Missouri

 

933 S. Kent

Liberty, MO

 

2705 W. Battlefield Road

P.O. Box 3395

Springfield, MO

 

2315 Lower Lake Road

P.O. Box 4127

St. Joseph, MO

 

3244 Gardner Avenue

Kansas City, MO

 

Montana

 

Mullan Road West

Missoula, MT 59802

 

14377 Pulp Mill Road

Missoula, MT 59806

 

New York

 

7393 Shawnee Road

Buffalo, NY  (North Tonawanda)

 

51 Robinson Street

North Tonawanda, NY

 

North Carolina

 

10201 Industrial Drive

Pineville, NC

 

Albermarle Street

P.O. Box 1086

Lexington, NC

 

 

Butner Woodyard

11th Street

Butner, Granville Co., NC

 

Ohio

 

108 S. Sycamore Street

Jefferson, OH

 

288 S. Illinois Avenue

P.O. Box 901

Mansfield, OH

 

500 N. Fourth Street

Coshocton, OH  43812

 

Oklahoma

 

200 W. Morrow Road

Sand Springs, OK

 

Pennsylvania

 

9820 Blue Grass Road

Philadelphia, PA

 

Tulip & Decatur
Street

Philadelphia, PA

 

Reach Road Plant

Industrial Park

P.O. Box 3097

Williamsport, PA

 

South Carolina

 

Old Georgetown Road

Florence, SC 
29501

 

4461 Hwy 301 South

Latta, SC

 

 

South Dakota

 

100 E. Benson Road

P.O. Box 1106

Sioux Falls, SD

 

Tennessee

 

550 S. Street

P.O. Box 430

Collierville, TN

 

Texas

 

7350 Stiles

El Paso, TX

 

2302 W. Marshall Drive

P.O. Box 530837

Grand Prairie, TX

 

I-20 & Highway 155

P.O. Box 1356

Tyler, TX

 

Utah

 

1881
W. North Temple

Salt
Lake City, UT 84116

 

2357 S. 900 West

Salt Lake City, UT 84119

 

Virginia

 

910 Industrial Street

Hopewell, VA  23860

 

19th and Main Street

West Point, VA

 

 

 

802 Kyle Avenue

Roanoke, VA

 

5640 Lewis Rd

Richmond, VA

 

Pocomoke Chip Mill

Somerset Co., VA

 

Keysville Chip Mill

Charlotte Co., VA

 

West Virginia

 

2333
Commerce Street

P.O. Box
312

Wellsburg,
WV  26070

 

Wisconsin

 

201 W. Grove Street

Adams, WI

 

The Milwaukee Plant,
located at 9400 West Heather Court, Milwaukee, Wisconsin

 

ALABAMA

 

Brewton, AL 36426

U.S. 31 South

Escambia County

 

CALIFORNIA

 

Vernon, CA 90058

2001 E. 57th Street

Los Angeles County

 

Santa Clara, CA 95050

2600 De La Cruz Blvd.

Santa Clara County

 

 

FLORIDA

 

Fernandina Beach, FL
32201

North Eighth Street

Nassau County

 

INDIANA

 

Carthage, IN 46115

South Main Street

Rush County

 

Wabash, IN 46972

455 West Factory St.

Wabash County

 

102 W. Superior Street

Fort Wayne, IN

Allen County

 

PENNSYLVANIA

 

Philadelphia, PA 19127

5000 Flat Rock Road

Philadelphia County

 

ARKANSAS

 

Jonesboro, AR 72400

2200 Industrial Drive

Craighead County

 

CALIFORNIA

 

Corona, CA 91720

185 N. Smith Street

Riverside County

 

Fresno, CA 93725

2525 S. Sunland Ave.

Fresno County

 

 

Irvine, CA 92714

1600 Barranco Road

Orange County

 

Los Angeles, CA 90040

2601 S. Malt Ave.

Los Angeles County

 

Milpitas, CA 95035

201 S. Hillview Dr.

Santa Clara County

 

Santa Clara, CA 95050

2600 De La Cruz Blvd.

Santa Clara County

 

CONNECTICUT

 

Milford, CT 06460-1024

75 Cascade Boulevard

New Haven County

 

FLORIDA

 

Jacksonville, FL 32206

2002 East 18th Street

Duval County

 

Jacksonville, FL

1915 Wigmore Street

 

Miami, FL 33166

6891 N.W. 74th Street

Dade County

 

North 8th Street

Fernandina Beach, FL

 

GEORGIA

 

Stone Mountain, GA 30083

5853 E. Ponce De Leon Ave.

DeKalb County

 

 

ILLINOIS

 

Alton, IL

10 Cut Street

Madison County

 

Carol Stream, IL 60618

400 E. North Avenue

DuPage County

 

Dolton, IL 60419

301 E. 144th Street

Cook County

 

Galesburg, IL
61401-1268

775 S. Linwood Road

Knox County

 

Highland, IL 62249

6th & Zschokke

Madison County

 

Morris, IL 60450

1000 E. Armstrong St.

Grundy County

 

St. Charles, IL
60174

1501 Indiana Ave.

Kane County

 

INDIANA

 

Anderson, IN 46016

3 North Sherman St.

Madison County

 

Fort Wayne, IN 46802

102 W. Superior Street

Allen County

 

 

Frankfort, IN 46041

700 Crawford Street

Clinton County

 

Muncie, IN 47303

301 S. Butterfield Road

Delaware County

 

IOWA

 

Sioux City, IA 51102

1601 Tri View Ave.

Woodbury County

 

KENTUCKY

 

Louisville, KY 40223

12220 Westport Road

Jefferson County

 

MARYLAND

 

Baltimore, MD 21224

6541 Eastern Ave.

Baltimore County

 

MINNESOTA

 

St. Paul, MN 55117

1050 N. Kent Street

Ramsey County

 

MISSOURI

 

Chesterfield, MO 63017

577 Goddard Ave.

St. Louis County

 

N. Kansas City, MO 64116

110 E. 10th Ave.

Clay County

 

 

Pacific, MO 63069

1101 S. Denton Road

Franklin Co.

 

NEW YORK

 

New Hartford, NY

41-57 Campion Road

Oneida County

 

Fulton, NY

99 Harris Street

 

NORTH CAROLINA

 

Greensboro, NC 27401

2600 East Market St.

Guilford County

 

Shelby, NC 28150

662 Washburn Switch Road

Cleveland County

 

Winston-Salem, NC 27106

8080 North Point Blvd.

Forsyth County

 

Wilson, NC 27893

2606 Wilco Blvd.

Wilson County

 

OHIO

 

Cincinnati, OH 45242

9960 Alliance Road

Hamilton County

 

Norwood, OH 45212

Beech & Robertson Sts.

Hamilton County

 

Ravenna, OH 44266

975 N. Freedom St.

Portage County

 

 

6380 Canal Street

Columbus, OH

 

Solon, OH 44129

6385 Cochran Road

Cuyahoga County

 

Circleville, OH

401 W. Mill Street

 

Middletown, OH

2205 S. Venty Parkway

 

OKLAHOMA

 

Shawnee and Ridge Roads

Muskogee, OK 74403

Muskogee County

 

OREGON

 

Portland, OR 97203

12005 North Burgard Rd.

Multnomah County

 

PENNSYLVANIA

 

North Wales, PA 19454

500 Church Road

Montgomery County

 

Aston, PA 19014

100 McDonald Blvd.

Delaware County

 

Valley Forge, PA 19456

1035 Longford Road

Montgomery County

 

TENNESSEE

 

Knoxville, TN 37918

4512 Anderson Rd., N.E.

Knox County

 

 

Memphis, TN 38106

265 W. Trigg Ave.

Shelby County

 

Humboldt, TN 38343

1720 Ninth Avenue

Gibson County

 

Murfreesboro, TN 37130

1125 Haley Road

Rutherford County

 

Spartanburg, TN

405 John Dodd Road

 

TEXAS

 

Dallas, TX  75211

2743 S. Pierce Street

Dallas County

 

Ft. Worth, TX  76134

6701 South Freeway

Tarrant County

 

Houston, TX  77210

8440 Tewantin

Harris County

 

WASHINGTON

 

Renton, WA 
98057

601 Monster Road, SW

King County

 

WISCONSIN

 

Milwaukee, WI  53209

2800 W. Custer Avenue

Milwaukee County

 

Mill site

1611 County Rd. 85

Stevenson,

Jackson County, AL

 

 

Box Plant

6180 Jersey Alcovy Rd.

Covington, Newton Co.
Georgia

 

Box Plant

7601 South 78th Ave.

Bridgeview,

Cook Co., IL

 

Box Plant

Mead & Kenskill

Washington

Fayette Co., OH

 

Box Plant

700 Garrett Pkwy.

Lewisburg,

Marshall Co., TN

 

OWNED
MATERIAL CANADIAN REAL PROPERTY

 

The paperboard mill
located at 1000 Chemin de l’Usine, La Tuque, Québec

 

The corrugating medium
mill located at 90 Parc Industriel, Matane, Québec

 

The converting plant
located at 15400 Sherbrooke Street Est, Montreal, Québec

 

The converting plant
located at 747 Appleby Line, Burlington, Ontario

 

The chip mill located at
200 Chemin de la Riviere au Lait, Canton de Vallieres, Haut St.-Maurice, Québec

 

The flexible plastics
packaging plant located at 134-142 Kennedy Road South, City of Brampton,
Ontario

 

The pulp mill located at
Route 211, Highway 301, Portage-du-Fort, Québec (Pontiac)

 

The linerboard mill
located at 150 Chemin de St. Edgar, New Richmond, Québec

 

The corrugating medium
mill located at 891 Main Street, Bathurst, New Brunswick

 

The St. Laurent freehold
of approximately 366,000 hectares

 

 

The box plants located at
the following addresses:

 

1.             200 Brockport Drive and 730
Islington Avenue, Toronto, Ontario.

 

2.             200 Water Street, Whitby, Ontario

 

3.             390 Woodlawn Road West, Guelph,
Ontario

 

4.             301 Forced Road, Pembroke, Ontario

 

5.             8150 Parkhill Drive, Milton,
Ontario

 

6.             1360 Inkster Boulevard, Winnipeg,
Manitoba

 

7.             P.O. Box 1155 1400 - 1st
Avenue East, Regina, Saskatchewan

 

8.             1115 34th Avenue S.E., Calgary,
Alberta

 

9.             8705 24th Street, Edmonton, Alberta

 

10.           5550 Royalmount Avenue, Town of
Mount-Royal, Quebec

 

11.           1035 Hodge Street, Saint-Laurent,
Quebec

 

 

Schedule
5.02(a)

 

LOCAL
COUNSEL

 

	
  Firm

  	
   

  	
  State

  
	
   

  	
   

  	
   

  
	
  Thompson,
  Garrett & Hines

  	
   

  	
  Alabama

  
	
   

  	
   

  	
   

  
	
  Hilburn, Calhoun,
  Harper, Pruniski & Calhoun, Ltd.

  	
   

  	
  Arkansas

  
	
   

  	
   

  	
   

  
	
  Winston &
  Strawn LLP

  	
   

  	
  California

  
	
   

  	
   

  	
   

  
	
  Carlton Fields, P.A.

  	
   

  	
  Florida

  
	
   

  	
   

  	
   

  
	
  Sutherland,
  Asbill & Brennan

  	
   

  	
  Georgia

  
	
   

  	
   

  	
   

  
	
  Winston &
  Strawn LLP

  	
   

  	
  Illinois

  
	
   

  	
   

  	
   

  
	
  Bingham, McHale LLP

  	
   

  	
  Indiana

  
	
   

  	
   

  	
   

  
	
  Berenstein, Moore,
  Berenstein, Hefferan & Moeller, LLP

  	
   

  	
  Iowa

  
	
   

  	
   

  	
   

  
	
  Boehl,
  Stopher & Graves

  	
   

  	
  Kentucky

  
	
   

  	
   

  	
   

  
	
  Schully, Roberts,
  Stattery, Jaubert & Marino

  	
   

  	
  Louisiana

  
	
   

  	
   

  	
   

  
	
  Piper Rudnick LLP

  	
   

  	
  Maryland

  
	
   

  	
   

  	
   

  
	
  Brown Rudnick
  Freed & Gresner

  	
   

  	
  Massachusetts

  
	
   

  	
   

  	
   

  
	
  Armstrong Teasdale LLP

  	
   

  	
  Missouri

  
	
   

  	
   

  	
   

  
	
  Winston &
  Strawn LLP

  	
   

  	
  New York

  
	
   

  	
   

  	
   

  
	
  Hill, Evans, Duncan
  Jordan & Beatty, PLLC

  	
   

  	
  North Carolina

  
	
   

  	
   

  	
   

  
	
  Taft,
  Stettinius & Hollister

  	
   

  	
  Ohio

  
	
   

  	
   

  	
   

  
	
  Scwabe,
  Williamson & Wyatt

  	
   

  	
  Oregon

  
	
   

  	
   

  	
   

  
	
  Greenberg, Traurig

  	
   

  	
  Pennsylvania

  
	
   

  	
   

  	
   

  
	
  Kennedy, Covington,
  Lobdell & Hickman

  	
   

  	
  South Carolina

  
	
   

  	
   

  	
   

  
	
  Miller &
  Martin PLLC

  	
   

  	
  Tennessee

  

 

 

	
  Jackson &
  Walker, LLP

  	
   

  	
  Texas

  
	
   

  	
   

  	
   

  
	
  McGuire, Woods,
  Battle & Boothe, L.L.P.

  	
   

  	
  Virginia

  
	
   

  	
   

  	
   

  
	
  Schwabe,
  Williamson & Wyattt

  	
   

  	
  Washington

  
	
   

  	
   

  	
   

  
	
  Foley &
  Lardner

  	
   

  	
  Wisconsin

  

 

 

Schedule
6.09(c)

 

CERTAIN
NON-COLLATERAL PROPERTIES

 

125
Depot Road

Uncasville,
CT 06382

 

One
Superior Way

Ontonagon,
MI 49953

 

Mullan
Road West

Missoula,
MT 59802

 

10
Cut Street

Alton,
IL

 

804
Hazlett Street

Anderson,
IN

 

6541
Eastern Avenue

Baltimore,
MD

 

401
W. Mill Street

Circleville,
OH

 

2743
S. Pierce Street

Dallas,
TX

 

99
Harris Street

Fulton,
NY

 

1915
Wigmore Street

Jacksonville,
FL

 

2205
S. Venty Parkway

Middletown,
OH

 

1050
Kent Avenue

St.
Paul, MN

 

405
John Dodd Road

Spartanburg,
TN

 

 

Canadian Excluded Property:

 

Excluded Property means:

 

1.                                 All real property owned by SSC Canada (i) at
its corrugating medium mill located in Bathurst, New Brunswick (the “Excluded New Brunswick Real Property”) and (ii) all
other real property owned by SSC Canada on the Closing Date and located in the
Province of New Brunswick;

 

2.                                 All personal property (other than
intangibles) owned by SSC Canada, situated on or at the Excluded New Brunswick
Real Property and used in connection with or arising as a result of the
business carried on at the Excluded New Brunswick Real Property, including all
inventory  (wherever situated) produced
at such Excluded New Brunswick Real Property (the “New
Brunswick Inventory”);

 

3.                                 All immovable property owned by SSC
Canada and located at its liner board mill in New Richmond Quebec and its pulp
mill located in Portage du Fort, Quebec (the “Excluded
Quebec Real Property”);

 

4.                                 All personal or movable property (other
than intangible or incorporeal property) owned by SSC Canada, situated on or at
the Excluded Quebec Real Property and used in connection with or arising as a
result of the business carried on at the Excluded Quebec Real Property,
including all inventory (wherever situated) produced at such Excluded Quebec
Real Property (the “Quebec Inventory”
and together with the New Brunswick Inventory, the “Excluded
Inventory”);

 

5.                                 All accounts due, owing or accruing to or
owned by SSC Canada under, on account of any monetary obligation (other than
those evidenced by chattel paper, an instrument or a security) in respect of
the sale or alienation of the Excluded Inventory (including all policies of
insurance of every nature relating to the loss or destruction of such inventory
or insuring such accounts) (collectively being herein referred to as the “Accounts”);

 

6.                                 All intangibles, chattel paper, or
incorporeal property (as understood under the Civil Code of Quebec), other than
Accounts, including, all intellectual property, owned by SSC Canada and
directly relating to the operation of its business carried out at the Excluded
New Brunswick Real Property or the Excluded Quebec Real Property; provided,
that such intangibles shall not have any application or value to any other
property owned by SSC Canada or an Affiliate thereof or the business carried on
by SSC Canada or an Affiliate thereof;

 

7.                                 The real property owned by SSC Canada
which is related to the operation of its business carried out at the Excluded
Quebec Real Property and which is located in (a) the City of Senneterre
(Townships of Lebreton, Lalobert, Bourgmont and Chassaigne), Quebec (known as
the “Monet Block”) and (b) the Municipalites of Les Escoumins,
Sainte-Anne-de-Portneuf, Portage-du-Fort, Litchfield, Clarendon, New Richmond
and Bonaventure, Quebec.

 

 

8.                                 The trademark “Pontiac” as registered in
Italy under number 789077, in Benelux under number 430870 and in France under
number 1,409,014; and

 

9.                                 All identifiable and traceable personal
property in any form derived directly or indirectly from any dealing with the
items listed in clauses 1 through 8, inclusive, of this definition of Excluded
Property (“Proceeds”) or the
Proceeds therefrom provided that such Proceeds are reinvested in property which
constitutes Excluded Property.

 

“inventory” means goods
that are held by a person for sale or lease or that have been leased or that
are to be furnished or have been furnished under a contract or service, or that
are raw materials, work in process or materials used or consumed in a business.

 

“intangibles” has the
meaning given to it in the Personal Property Security Act (Nova Scotia).

 

Timberland:

 

[See
Attached]

 

 

Summary
of SSCC Timberlands

 

	
  County

  	
   

  	
  State

  	
   

  	
  Facility Name

  	
   

  	
  Acres

  	
   

  
	
  Baldwin

  	
   

  	
  AL

  	
   

  	
  Cow Dip Site

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Butler

  	
   

  	
  AL

  	
   

  	
  Greenville HQ

  	
   

  	
  13

  	
   

  
	
  Butler

  	
   

  	
  AL

  	
   

  	
  Georgiana WY

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Conecuh

  	
   

  	
  AL

  	
   

  	
  Belleville HQ

  	
   

  	
  8

  	
   

  
	
  Conecuh

  	
   

  	
  AL

  	
   

  	
  Inactive Landfill

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Covington

  	
   

  	
  AL

  	
   

  	
  Gantt HQ

  	
   

  	
  24

  	
   

  
	
  Covington

  	
   

  	
  AL

  	
   

  	
  Ft. Rucker Tac Helic

  	
   

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  42

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Crenshaw

  	
   

  	
  AL

  	
   

  	
  Brantley WY

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Block 1074

  	
   

  	
  66

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  396

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  319

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  483

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  262

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  455

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  408

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  410

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  581

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Brewton Region Office

  	
   

  	
  4

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Chipmill addition

  	
   

  	
  15

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Mill Site

  	
   

  	
  339

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Rock Creek Nursery

  	
   

  	
  267

  	
   

  
	
  Escambia

  	
   

  	
  AL

  	
   

  	
  Parker Farm Seed Orchard

  	
   

  	
  460

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  4,465

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lowndes

  	
   

  	
  AL

  	
   

  	
  Calhoun WY

  	
   

  	
  110

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  110

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pike

  	
   

  	
  AL

  	
   

  	
  Troy HQ/WY

  	
   

  	
  60

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  60

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Alabama Total

  	
   

  	
  4,733

  	
   

  

 

 

Summary
of SSCC Timberlands

 

	
  County

  	
   

  	
  State

  	
   

  	
  Facility Name

  	
   

  	
  Acres

  	
   

  
	
  Alachua

  	
   

  	
  FL

  	
   

  	
  High Springs Orchard

  	
   

  	
  233

  	
   

  
	
  Alachua

  	
   

  	
  FL

  	
   

  	
  Mize - Alachua Landfill

  	
   

  	
  679

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  912

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Baker

  	
   

  	
  FL

  	
   

  	
  Baker Office

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Bradford

  	
   

  	
  FL

  	
   

  	
  Empire Pits

  	
   

  	
  20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clay

  	
   

  	
  EL

  	
   

  	
  Maxville CP

  	
   

  	
  366

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  366

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Duval

  	
   

  	
  FL

  	
   

  	
  Pendarvis

  	
   

  	
  160

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  160

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hardee

  	
   

  	
  FL

  	
   

  	
  Hardee WY

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Madison

  	
   

  	
  FL

  	
   

  	
  Madison Woodyard

  	
   

  	
  104

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  104

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nassau

  	
   

  	
  FL

  	
   

  	
  Mizell

  	
   

  	
  1,121

  	
   

  
	
  Nassau

  	
   

  	
  FL

  	
   

  	
  Fernandina Region HQ

  	
   

  	
  113

  	
   

  
	
  Nassau

  	
   

  	
  FL

  	
   

  	
  Kent

  	
   

  	
  552

  	
   

  
	
  Nassau

  	
   

  	
  FL

  	
   

  	
  Kent

  	
   

  	
  277

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  2,063

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Pasco

  	
   

  	
  FL

  	
   

  	
  Lacoochee WY

  	
   

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  18

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Johns

  	
   

  	
  FL

  	
   

  	
  Nease/Jumpy Cons. Easement

  	
   

  	
  578

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  578

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Florida
  Total

  	
   

  	
  4,249

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Clinch

  	
   

  	
  GA

  	
   

  	
  Cypress SM

  	
   

  	
  49

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Georgia
  Total

  	
   

  	
  49

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Grand Total

  	
   

  	
  9,031

  	
   

  

 

 

Schedule 7.01

 

INDEBTEDNESS

 

Smurfit-Stone Container
Enterprises, Inc:

 

Schedule
of Indebtedness - Stone Container Corporation and Subsidiaries

(Thousands)

 

	
   

  	
   

  	
   

  	
   

  	
  Years of

  	
   

  	
  30-Sep-04

  	
   

  
	
  Instrument

  	
   

  	
  Rate

  	
   

  	
  Maturity

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hodge Bonds

  	
   

  	
  7.450

  	
  %

  	
  2024

  	
   

  	
  58,085

  	
   

  
	
  Hopewell
  Resource Recovery

  	
   

  	
  8.250

  	
  %

  	
  2016

  	
   

  	
  35,000

  	
   

  
	
  Coshocton IRB

  	
   

  	
  7.875

  	
  %

  	
  2013

  	
   

  	
  30,000

  	
   

  
	
  Navajo IRB

  	
   

  	
  7.400

  	
  %

  	
  2026

  	
   

  	
  20,000

  	
   

  
	
  Navajo IRB

  	
   

  	
  7.200

  	
  %

  	
  2027

  	
   

  	
  14,650

  	
   

  
	
  Savannah IRB

  	
   

  	
  7.400

  	
  %

  	
  2026

  	
   

  	
  13,300

  	
   

  
	
  Hopewell IRB

  	
   

  	
  8.250

  	
  %

  	
  2010

  	
   

  	
  6,340

  	
   

  
	
  Hopewell IRB

  	
   

  	
  5.900

  	
  %

  	
  2005-2007

  	
   

  	
  4,900

  	
   

  
	
  Savannah IRB

  	
   

  	
  8.125

  	
  %

  	
  2015

  	
   

  	
  3,160

  	
   

  
	
  Capital Leases

  	
   

  	
  Various

  	
   

  	
  2004-2011

  	
   

  	
  1,323

  	
   

  
	
  City of
  Milwaukee IRB (IPC)

  	
   

  	
  Various

  	
   

  	
  2002-2012

  	
   

  	
  3,765

  	
   

  
	
  Box Plant
  Financing

  	
   

  	
  8.450

  	
  %

  	
  2002-2007

  	
   

  	
  73,993

  	
   

  
	
  New Philadelphia
  Ohio Bonds

  	
   

  	
  4.100

  	
  %

  	
  2005-2011

  	
   

  	
  5,650

  	
   

  
	
  Stone
  Securitization

  	
   

  	
  Various

  	
   

  	
  2005

  	
   

  	
  240,500

  	
   

  
	
  SMBI
  Securitization

  	
   

  	
  Various

  	
   

  	
  2009

  	
   

  	
  43,516

  	
   

  
	
  Smurfit MBI

  	
   

  	
  Various

  	
   

  	
  2005-2006

  	
   

  	
  834

  	
   

  
	
  Guarantees
  (includes West Point)(2)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22,772

  	
   

  

 

(2) Various
Forest Resource Division Guarantees for chip mill and wood yard contracts
(contract expiration dates ranging from 2006-2018).

 

 

Schedule
of Indebtedness - JSCUS and Subsidiaries

(Thousands)

 

	
   

  	
   

  	
   

  	
   

  	
  Years of

  	
   

  	
  30-Sep-04

  	
   

  
	
  Instrument

  	
   

  	
  Rate

  	
   

  	
  Maturity

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Receivables
  Program

  	
   

  	
  Various

  	
   

  	
  2004

  	
   

  	
  197,695

  	
   

  
	
  Wabash IRB

  	
   

  	
  7.500

  	
  %

  	
  2026

  	
   

  	
  10,000

  	
   

  
	
  OHPA IRB

  	
   

  	
  6.500

  	
  %

  	
  2006

  	
   

  	
  8,500

  	
   

  
	
  Brewton IRB

  	
   

  	
  8.000

  	
  %

  	
  2009

  	
   

  	
  3,420

  	
   

  
	
  Capital Leases

  	
   

  	
  Various

  	
   

  	
  2004-2027

  	
   

  	
  11,991

  	
   

  
	
  Guarantees(3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22,086

  	
   

  
	
  SBA

  	
   

  	
  7.267

  	
  %

  	
  2004-2016

  	
   

  	
  569

  	
   

  
	
  Stevenson IRB’s

  	
   

  	
  Various

  	
   

  	
  2005

  	
   

  	
  120,115

  	
   

  
	
  McDaniel &
  Amenta

  	
   

  	
  Various

  	
   

  	
  2006-2008

  	
   

  	
  4,781

  	
   

  

 

(3) Various
Forest Resource Division Guarantees for chip mill and wood yard contracts
(contract expiration dates ranging from 2006-2018).

 

 

Intercompany
Loans and Advances

 

Stone
Container Corporation and Subsidiaries

 

	
   

  	
   

  	
  Balance as of September 30, 2004

  	
   

  
	
   

  	
   

  	
  Receivable (Payable)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Cameo Container

  	
   

  	
  (2,200,000

  	
  )

  
	
  Truepenny

  	
   

  	
  (4,408,000

  	
  )

  
	
  Lux

  	
   

  	
  (624,000

  	
  )

  
	
  Mexico

  	
   

  	
  (4,125,000

  	
  )

  
	
  Mexico

  	
   

  	
  188,000

  	
   

  
	
  Mexico

  	
   

  	
  (20,000

  	
  )

  
	
  Mexico

  	
   

  	
  5,251,000

  	
   

  
	
  SSC - Canada
  Inc.

  	
   

  	
  (872,151,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  202,909,000

  	
   

  
	
  Stone Container

  	
   

  	
  (202,909,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Finance Co II

  	
   

  	
  203,008,000

  	
  (1)

  
	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  (203,008,000

  	
  )(1)

  
	
   

  	
   

  	
   

  	
   

  
	
  3083527 Nova
  Scotia Inc.

  	
   

  	
  (169,666,000

  	
  )

  
	
  605681 N.B. Inc.

  	
   

  	
  169,666,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Smurfit- Stone
  Container Canada Inc.

  	
   

  	
  (10,274,865

  	
  )

  
	
  3083527 Nova
  Scotia Inc.

  	
   

  	
  10,274,865

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Smurfit- Stone
  Container Canada Inc.

  	
   

  	
  (77,530,000

  	
  )

  
	
  SMBI, Inc.

  	
   

  	
  77,530,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Smurfit Stone
  Container Canada Inc.

  	
   

  	
  (666,551,000

  	
  )

  
	
  SLP Finance
  General Partnership

  	
   

  	
  666,551,000

  	
   

  

 

(1) Represents the
intercompany note between the two subsidiaries of Stone Container Corporation

 

Consolidated
Subsidiaries - Advances of Board

 

	
  Indonesia

  	
   

  	
  —

  	
   

  
	
  Mexico

  	
   

  	
  20,505,000

  	
  (2)

  

 

 

(2) Represents
capitalization of intercompany balances between Mexico and CBM, El Paso and
Jacksonville Preprint due to Mexico’s inability to pay.

 

 

Guarantees

 

Guarantees of
Indebtedness described in Schedule 7.01 hereof, including guarantees of
industrial revenue bonds, capital leases and other obligations.

 

Schedule 7.02(a)(iv)

 

 

Schedule
7.02(a)(iv)

 

LIENS

 

1.                                       Liens securing the Box Plant Financing
referenced on Schedule 7.01, which Liens cover the real property,
improvements, fixtures and related property at various box plants.

 

2.                                       Liens securing various IRB financings
referenced on Schedule 7.01, which Liens cover the property financed by
such IRB Indebtedness.

 

3.                                       Liens identified on title reports
relating to Mortgaged Properties delivered to counsel to JPMCB.

 

4.                                       Liens identified on the attached Lien
Search Result Charts.

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Eastern Container
  Corp.

  320 Parker Street

  Springfield, MA 01129

  	
   

  	
  Lewis/Boyle, Inc.

  2500 Wilbur Cross Hwy.

  Berlin, CT 06037

  Assignee:

  Hyster Credit Corp.

  200 S.W. Columbia, Ste. 200

  Portland, OR 97208

  	
   

  	
  Secretary of
  State, Massachusetts

  	
   

  	
  10/08/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  382238

  	
   

  	
  04/16/96,
  continued 2/22/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eastern Container
  Corporation

  a/k/a ECC Acquisitions, Inc. successor to SLP Eastern
  Acquisitions, Inc.

  320 Parker Street

  Springfield, MA 01129

  	
   

  	
  Citicorp Del
  Lease, Inc.

  450 Mamaroneck Avenue

  Harrison, NY 10528

  	
   

  	
  Secretary of
  State, Massachusetts

  	
   

  	
  10/08/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  673015

  	
   

  	
  11/08/99

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eastern Container
  Corp.

  320 Parker Street

  Springfield, MA 01129

  	
   

  	
  Citicorp Del
  Lease, Inc.

  450 Mamaroneck Avenue

  Harrison, NY 10528

  	
   

  	
  Secretary of
  State, Massachusetts

  	
   

  	
  10/08/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  678821

  	
   

  	
  12/03/99

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eastern Container
  Corporation

  320 Parker Street

  Springfield, MA 01129

  	
   

  	
  Citicorp Del
  Lease, Inc.

  450 Mamaroneck Avenue

  Harrison, NY 10528

  	
   

  	
  Secretary of
  State, Massachusetts

  	
   

  	
  10/08/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  726777

  	
   

  	
  06/28/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grafx Packaging
  Corp.

  1010 Walnut Street

  Canal Winchester, OH 43110

  	
   

  	
  County of
  Franklin, Ohio

  373 South High Street

  Columbus, OH 43215

  Assignee:

  GE Capital Public Finance, Inc.

  8400 Normandale Lake Blvd. Suite 470

  Minneapolis, MN 55437

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  9965841

  	
   

  	
  12/09/99

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  1204 E. 12th Street

  Wilmington, DE 19802

  	
   

  	
  ATT Commercial
  Finance Corporation

  P.O. Box 4366

  Portland, OR 97208

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  9502483

  	
   

  	
  02/17/95,
  continued 2/11/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Jefferson Smurfit
  Finance Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105, assigned to Societe Generale

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  9502773

  	
   

  	
  02/23/95,
  continued 11/01/99, amended 1/16/03, assigned 2/13/03, amended 3/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  0059564

  	
   

  	
  09/11/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company, Inc.

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  0059565

  	
   

  	
  09/11/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  CIT
  Communications Finance Corporation

  650 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10730536

  	
   

  	
  07/26/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087, assigned to Pullman Bank & Trust Company 12/19/03

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10628454

  	
   

  	
  07/30/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 1100

  Clayton, Missouri 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10905237

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  CIT
  Communications Finance Corporation

  650 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10905393

  	
   

  	
  08/24/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (US)

  8182 Maryland Avenue, Jefferson Smurfit Ctr.

  St. Louis, MO 63105

  	
   

  	
  CCA
  Financial, Inc.

  7275 Glen Forest Drive, Suite 100

  Richmond, VA 23226, assigned to Jefferson Smurfit Corporation (U.S.),
  3/24/03, assigned to Jefferson Smurfit Corporation, 8/12/03

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10998240

  	
   

  	
  08/20/01,
  assigned 3/24/03, assigned 8/12/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive - Suite 960

  Tampa, FL 33607

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11100259

  	
   

  	
  09/05/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11124366

  	
   

  	
  09/07/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  CIT
  Communications Finance Corporation

  650 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11147896

  	
   

  	
  09/12/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  corporation (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  Transamerica
  Business Credit Corporation

  Noel Road, Suite 1100

  Dallas, TX 75240

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11377832

  	
   

  	
  10/12/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  Transamerica
  Business Credit Corporation

  13760 Noel Road, Suite 1100

  Dallas, TX 75240

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11378046

  	
   

  	
  10/12/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO

  	
   

  	
  Transamerica
  Business Credit Corporation

  13760 Noel Road, Suite 1100

  Dallas, TX 75240

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11378061

  	
   

  	
  10/12/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Transamerica
  Business Credit Corporation

  13760 Noel Road, Suite 1100

  Dallas, TX 75240

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11378095

  	
   

  	
  10/12/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11552186

  	
   

  	
  10/31/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc. (f/k/a ATT Commercial Finance
  Corporation)

  P.O. Box 4366

  Portland, OR 97208, assigned to De Lage Landen Financial Services, Inc.,
  2/21/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11566814

  	
   

  	
  11/29/01,
  assigned 2/21/02 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 N. Michigan Ave

  Chicago, IL 60601

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc. (f/k/a ATT Commercial Finance
  Corporation)

  P.O. Box 4366

  Portland, OR 97208, assigned to De Lage Landen Financial Services, Inc.,
  2/21/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11566830

  	
   

  	
  11/29/01,
  assigned 2/21/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company, Inc.

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11590319

  	
   

  	
  12/03/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company, Inc.

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11590368

  	
   

  	
  12/03/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  corporation (U.S.)

  8182 Maryland Avenue, Suite 1100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11750913

  	
   

  	
  11/19/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20106553

  	
   

  	
  12/10/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporatin (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20285118

  	
   

  	
  01/07/02, amended
  8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Citicorp Vendor
  Finance, Inc.

  P.O. Box 728

  Park Ridge, NJ 07565

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20304075

  	
   

  	
  01/10/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Citicorp Vendor
  Finance, Inc.

  P.O. Box 728

  Park Ridge, NJ07565

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20304091

  	
   

  	
  01/10/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Citicorp Vendor
  Finance, Inc.

  P.O. Box 728

  Park Ridge, NJ 07565

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20304133

  	
   

  	
  01/10/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  KBA North
  America, Inc., Sheetfed Division

  291 Hurricane Lane

  Williston, VT 05495, assigned to Citicorp Vendor Finance, Inc., 2/25/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20304596

  	
   

  	
  01/10/02,
  assigned 2/25/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  corporation (U.S.)

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  KBA North
  America, Inc., Sheetfed Division

  291 Hurricane Lane

  Williston, VT 05495, assigned to Citicorp Vendor Finance, Inc., 2/25/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20304604

  	
   

  	
  01/10/02,
  assigned 2/25/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 1100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20412381

  	
   

  	
  01/23/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company, Inc.

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20523646

  	
   

  	
  02/28/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company, Inc.

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20525703

  	
   

  	
  02/28/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  CIT
  Communications Finance Corporation

  650 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20662100

  	
   

  	
  02/28/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  General Electric
  Capital Business Asset Funding Corporation formerly known as MetLife Capital
  Corporation

  10900 NE 4th Street, Ste. 500, C97550

  Bellevue, WA 9804

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20663561

  	
   

  	
  02/25/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Ave.

  Saint Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street, Suite 4400

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20928337

  	
   

  	
  04/15/02, amended
  8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21107451

  	
   

  	
  05/03/02, amended
  8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 1100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21126873

  	
   

  	
  04/16/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 1100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21126915

  	
   

  	
  04/16/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21241250

  	
   

  	
  05/17/02, amended
  8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S)

  8182 Maryland Avenue, Suite 1100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21671233

  	
   

  	
  06/07/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 1100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  51271241

  	
   

  	
  06/07/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland AVenue

  Saint Louis, MO 63105

  	
   

  	
  CIT
  Communications Finance Corporation

  1 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21838790

  	
   

  	
  06/28/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  3960 Crowbarn Drive

  Memphis, TN 38118

  	
   

  	
  The CIT Group/
  Equipment Financing, Inc.

  P.O. Box 27218

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22011728

  	
   

  	
  07/31/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue Suite 1100

  Clayton, MO 63105

  	
   

  	
  Capital,
  Technology & Leasing, L.L.C.

  16964 Manchester Road, Suite 101

  Wildwood, MO 63040

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22036576

  	
   

  	
  08/13/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 1100

  Clayton, MO 63105

  	
   

  	
  Capital,
  Technology & Leasing, L.L.C.

  16964 Manchester Road, Suite 101

  Wildwood, MO 63040

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22050254

  	
   

  	
  08/14/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S)

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15213

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22259772

  	
   

  	
  09/09/02, amended
  8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue, Suite 1100

  Clayton, MO 63105

  	
   

  	
  Capital,
  Technology & Leasing, L.L.C.

  16964 Manchester Road, Suite 101

  Wildwood, MO 63040

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22386781

  	
   

  	
  09/23/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 West 22nd Street, Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22411894

  	
   

  	
  09/19/02, amended
  03/03/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation 1415 West 22nd Street, Suite 300

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22722209

  	
   

  	
  10/18/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  IBM Credit
  Corporation

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  225757379

  	
   

  	
  10/22/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street, Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22823569

  	
   

  	
  10/29/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Business Asset Funding Corporation, successor in interest to, MetLife
  Capital, Limited Partnership

  10900 NE 4th Street, Suite 500, P.O. Box C-97550

  Bellevue, WA 98004

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22939456

  	
   

  	
  11/12/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  IBM Credit
  Corporation

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  23165341

  	
   

  	
  12/03/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63015

  	
   

  	
  Deutsche Bank
  Trust Company Americas, as Collateral Agent

  4 Albany Street

  New York, NY 10006,

  Assigned to Societe Generale, as Collateral Agent

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  9/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  23214297

  	
   

  	
  12/23/02,
  assigned 2/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  	
   

  	
  Societe Generale

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  23221649

  	
   

  	
  12/24/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  	
   

  	
  Societe Generale,
  as Collateral Agent

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30132152

  	
   

  	
  01/16/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  	
   

  	
  Societe Generale

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40907818

  	
   

  	
  03/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (US)

  8182 Maryland

  Saint Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30060841

  	
   

  	
  01/08/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  500 Church Road

  North Whales, PA 19454

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of State,
  Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30125370

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  6385 Cochran Road

  Solon, OH 44139

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30125412

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  1501 Indiana Avenue

  Saint Charles, IL 60174

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30125537

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  2429 E. Holland Avenue

  Saginaw, MI 48601

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30125602

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  9960 Aliance Road

  Cincinnati, OH 45241

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30125636

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  601 Monster Road SW

  Renton, WA 98055

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30125685

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  500 Church Road

  North Whales, PA 19454

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30125776

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  1035 Longford Road

  Phoenixville, PA 19460

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126220

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  1035 Longford Road

  Phoenixville, PA 19460

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126253

  	
   

  	
  12/27/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  3960 Crowfarn Road

  Memphis, TN 38118

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126295

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  2606 Wilco Avenue

  Wilson, NC 27893

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126303

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  1035 Longford Road

  Phoenixville, PA 19460

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126329

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  3960 Crowfarn Road

  Memphis, TN 38118

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126352

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  5853 E. Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126386

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  5853 E. Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT Group/Equipment
  Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126394

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  5853 E. Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126402

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  5853 E. Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126410

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  5853 E. Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126436

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  5853 E. Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126469

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  5853 E. Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126485

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  5853 E. Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30126568

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  6385 Cochran Road

  Solon, OH 44139

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30127384

  	
   

  	
  12/27/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30131097

  	
   

  	
  12/30/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30235906

  	
   

  	
  01/28/03, amended
  8/31/04

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Suite 1100

  St. Louis, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30252794

  	
   

  	
  01/29/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  IBM Credit LLC

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30282015

  	
   

  	
  01/15/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30332901

  	
   

  	
  01/27/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30499163

  	
   

  	
  02/28/03, amended
  8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Business Asset Funding Corporation successor in interest to MetLife
  Capital, Limited Partnership

  10900 NE 4th Street

  Suite 500, Box C-97550

  Bellevue, WA 98004

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30594823

  	
   

  	
  03/11/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  IBM Credit LLC

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30682412

  	
   

  	
  02/27/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30760184

  	
   

  	
  03/25/03, amended
  8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  and

  Jefferson Smurfit Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  MB Financial Bank, N.A.

  1200 North Ashland Avenue

  Chicago, IL 60622

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30829161

  	
   

  	
  03/26/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30936537

  	
   

  	
  04/10/03, amended
  4/24/03 and 8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  6400 NW 86th Street

  Johnston, IA 50131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31218372

  	
   

  	
  05/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Meridian Leasing
  Corporation

  570 Lake Cook Rd. Ste. 300

  Deerfield, IL 60015

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31222358

  	
   

  	
  04/28/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  CSC Leasing
  Company

  6800 Paragon Place

  Suite 525

  Richmond, VA 23230

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31265514

  	
   

  	
  05/19/03

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  CSC Leasing
  Company

  6800 Paragon Place

  Suite 525

  Richmond, VA 23230

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31265670

  	
   

  	
  05/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  CSC Leasing
  Company

  6800 Paragon Place

  Suite 525

  Richmond, VA 23230

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31265787

  	
   

  	
  05/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (US)

  US Highway 31 South

  Brewton, AL 36427

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31563579

  	
   

  	
  06/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  N. 8th Street

  Fernadina Beach, FL 32034

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31571259

  	
   

  	
  05/20/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31634404

  	
   

  	
  06/26/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31686545

  	
   

  	
  07/02/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31851206

  	
   

  	
  07/21/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  3747 Martin Luther King Way S.

  Seattle, WA 98118

  	
   

  	
  AT&T
  Commercial Finance Corp.

  PO Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31943474

  	
   

  	
  07/28/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  6400 NW 86th Street

  Johnston, IA 50131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31981573

  	
   

  	
  07/31/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  IBM Credit LLC

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32016270

  	
   

  	
  07/15/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32019514

  	
   

  	
  08/04/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32371782

  	
   

  	
  09/15/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Ave.

  St. Louis, MO 63105

  	
   

  	
  Transamerica
  Business Credit Corporation

  13760 Noel Road

  Suite 1100

  Dallas, TX 75247

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32504226

  	
   

  	
  09/16/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  CSC Leasing
  Company

  6800 Paragon Place

  Suite 525

  Richmond, VA 23230

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32519695

  	
   

  	
  09/29/03

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  CSC Leasing
  Company

  6800 Paragon Place

  Suite 525

  Richmond, VA 23230

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32519877

  	
   

  	
  09/29/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  2600 De La Cruz Blvd.

  Santa Clara, CA 95050

  	
   

  	
  Thermo Electron
  Financial Services Inc.

  81 Wyman Street

  Waltham, MA 02454

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32584400

  	
   

  	
  09/23/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  IBM Credit LLC

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32712613

  	
   

  	
  10/06/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  CSC Leasing
  Company

  6800 Paragon Place

  Suite 525

  Richmond, VA 23230

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32879982

  	
   

  	
  11/03/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 N. Rocky Point Drive

  Ste. 375

  Tampa, FL 33607

  and

  Banc One Leasing Corporation

  660 Woodward Avenue

  Suite 200

  Detroit, MI 48226

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32943440

  	
   

  	
  11/10/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  Great Lakes Bank,
  N.A.

  4600 West Lincoln Highway

  Matteson, IL 60443

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32982935

  	
   

  	
  11/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  Clayton, MO 63105

  	
   

  	
  BCC Equipment
  Leasing Corporaiton

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33022160

  	
   

  	
  11/12/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  IBM Credit LLC

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33049031

  	
   

  	
  11/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company, Inc.

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33303735

  	
   

  	
  12/16/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33417477

  	
   

  	
  12/29/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Toyota Motor
  Credit Corporation

  P. O. Box 3457

  Torrance, CA 90510

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40086548

  	
   

  	
  01/13/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Computer Sales
  International, Inc.

  9990 Old Olive Street Road

  St. Louis, MO 63141, assigned to General Electric Capital Corporation, 3/5/04

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40283798

  	
   

  	
  01/08/04, amended
  3/5/04, assigned 3/5/04

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company, Inc.

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40419467

  	
   

  	
  02/16/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40494056

  	
   

  	
  02/23/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40494940

  	
   

  	
  02/23/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corp.

  2502 N. Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  and

  Banc One Leasing Corporation

  660 Woodward Avenue

  Suite 200

  Detroit, MI 48226

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40518508

  	
   

  	
  02/12/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  9th Floor

  Chicago, IL 60601

  	
   

  	
  MB Financial
  Bank, N.A.

  1200 North Ashland Avenue

  Chicago, IL 60622

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41287921

  	
   

  	
  05/10/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Ave.

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41299678

  	
   

  	
  05/10/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41492562

  	
   

  	
  05/12/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (US)

  US Hwy 31 SO

  Brewton, AL 36427

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41495532

  	
   

  	
  05/28/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland

  St. Louis, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41780909

  	
   

  	
  06/16/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  PO Box 651564

  Charlotte, NC 28265

  	
   

  	
  Citibank, N.A.

  388 Greenwich Street

  New York, NY 10013

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41877515

  	
   

  	
  07/06/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Ave.

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42531905

  	
   

  	
  09/09/04

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  KBA North America
  Inc.

  291 Hurricane Lane

  Williston, VT 05495

  Assignee:

  People’s Capital and Leasing Corp.

  207-231 Bank St. 3rd Floor

  Waterbury, CT 06702

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42580498

  	
   

  	
  09/09/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  IBM Credit LLC

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42770644

  	
   

  	
  10/04/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Finance Corporation

  	
   

  	
  Bankers Trust
  Company, as Collateral Agent, assigned to Societe Generale, 2/13/03

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  9/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  9502274

  	
   

  	
  2/23/95,
  continued 11/01/99, amended 12/23/02, 1/16/03, assigned 2/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Finance Corporation

  	
   

  	
  Deutsche Bank
  Trust Company Americas (f/k/a Bankers Trust Company), as Collateral Agent

  4 Albany Street

  New York, NY 10006, assigned to Societe Generale, 2/13/03

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  9/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  23214248

  	
   

  	
  12/23/02, amended
  12/24/02, 1/16/03, assigned 2/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit Newsprint
  Corp.

  2205 Mount Vernon Ave.

  Pomona, CA 91768

  	
   

  	
  FPC Funding II
  LLC

  7145 SW Varns Street

  Suite D

  Portland, OR 97223

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30522006

  	
   

  	
  03/04/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  1013 Centre Road

  Wilmington, DE 19805

  	
   

  	
  Kodak Polychrome
  Graphics, LLC

  770 Canning Parkway

  Victor, NY 46222

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11042121

  	
   

  	
  08/28/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit Stone
  Container Corp.

  PO Box 2276

  Alton, IL 62002

  	
   

  	
  Carter Machinery
  Company, Inc.

  PO Box 3096

  Salem, VA 24153

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11117345

  	
   

  	
  09/06/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  150 N. Michigan Avenue

  Chicago, IL 60674

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11260608

  	
   

  	
  09/28/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit Stone
  Container Corporation

  3244 Gardner

  Kansas City, MO 64120

  	
   

  	
  HB Fuller Company

  3530 North Lexington Ave.

  St. Paul, MN 55126

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20646582

  	
   

  	
  02/21/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  1013 Centre Road

  Wilmington, DE 19805

  	
   

  	
  Tennant Financial
  Services

  10 Riverview Drive

  Danbury, CT 06810

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21620164

  	
   

  	
  06/03/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  1540 Triview Avenue

  Box 3227

  Sioux City, IA 51102

  	
   

  	
  UBI
  Leasing, Inc.

  PO Box 111

  Ida Grove, IA 51445

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21739758

  	
   

  	
  06/17/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container

  P.O. Box 100544

  Florence, SC 29501

  	
   

  	
  A. W. Chesterton
  Company

  225 Fallon Road

  Stoneham, MA 02180

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22020786

  	
   

  	
  08/12/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  1000 E. Armstrong Street

  Morris, IL 60450

  	
   

  	
  Kodak Polychrome
  Graphics, LLC

  770 Canning Parkway

  Victor, NY 14564

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22237208

  	
   

  	
  09/05/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  5883 East Ponce De Leon Avenue

  Stone Mountain, GA 30083

  	
   

  	
  The CIT
  Group/Equipment Financing, Inc.

  P.O. Box 27248

  Tempe, AZ 85285

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22358335

  	
   

  	
  09/13/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  455 West Factory Street

  P.O. Box 217

  Wabash, IN 46992

  	
   

  	
  A. W. Chesterton
  Company

  225 Fallon Road

  Stoneham, MA 02180

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22789752

  	
   

  	
  11/05/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corp.

  600 North 8th St.

  Fernandina Beach, FL 32035

  	
   

  	
  GreatAmerica
  Leasing Corporation

  PO Box 609

  Cedar Rapids, IA 52406

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22957532

  	
   

  	
  11/25/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  1835 South Cobb Ind. Dr. #103

  Smyrna, GA 30082

  	
   

  	
  Toyota Financial
  Services

  PO Box 3457

  Torrance, CA 90510

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  23156688

  	
   

  	
  12/18/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit Stone
  Container Corporation

  1200 Franklin St.

  Fernandina Beach, FL 32034

  	
   

  	
  Fleet Business
  Credit, LLC

  P.O. Box 7023

  Troy, MI 48007

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30193162

  	
   

  	
  01/06/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit Stone
  Container

  6902 W. Northern Ave.

  Glendale, AZ 85303

  	
   

  	
  Motion Industries
  Inc.

  1605 Alton Rd.

  Birmingham, AL 35210

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30693047

  	
   

  	
  03/03/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  9930 N. Burgard

  Portland, OR 97203

  	
   

  	
  Samuel Strapping
  Systems, Division of Samuel Manu-Tech Inc.

  2370 Dixie Road

  Mississauga, ON L4Y 1Z4

  Canada

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33012773

  	
   

  	
  11/10/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  The Eureka Company,
  A Division of White Consolidated, Ltd.

  807 North Main Street

  Bloomington, IL 61701

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33059642

  	
   

  	
  11/14/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Bobst Equipment
  Finance Company, Inc.

  146 Harrison Avenue

  Roseland, NJ 07068

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33124511

  	
   

  	
  11/26/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  PO Box 2276

  Alton, IL 62002

  	
   

  	
  Citicapital
  Commercial Leasing Corporation

  8001 Ridgepoint Dr.

  Irving, TX 75063

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33358630

  	
   

  	
  12/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  401 Alton St.

  Alton, IL 62002

  	
   

  	
  Toyota Motor
  Credit Corporation

  P. O. Box 3457

  Torrance, CA 90510

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40078065

  	
   

  	
  01/12/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Corporation

  8182 Maryland Avenue

  Saint Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  6400 NW 86th Street

  Johnston, IA 50131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41787045

  	
   

  	
  06/28/04

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  St. Laurent
  Paperboard (U.S.) Inc.

  150 N. Michigan Avenue

  39th Floor

  Chicago, IL 60601

  	
   

  	
  Stone Receivables
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  Assignee:

  The Chase Manhattan Bank, as Trustee of Stone Receivables Corporation Master
  Trust

  451 W. 33rd Street, 14th Floor

  New York, NY 10001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10273966

  	
   

  	
  04/02/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Laurent
  Paperboard (U.S.) Inc.

  19th & Main Streets

  West Point, VA 23181

  	
   

  	
  Gelco Corporation
  dba GE Capital Fleet Services

  3 Capital Drive

  Eden Prairie, MN 55344

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22802431

  	
   

  	
  11/06/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  St. Laurent
  Paperboard (U.S. Inc. - 1)

  19th and Main Streets

  West Point, VA 23181

  	
   

  	
  General Electric
  Capital Corp.

  6100 Fairview Road

  Suite 1450

  Charlotte, NC 28210

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  05/24/02

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21383805

  	
   

  	
  05/13/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  Mill St.

  Hodge, LA 71247

  	
   

  	
  Head &
  Engquist Equipment, L.L.C.

  11100 Mead Rd. Suite 200

  Baton Rouge, LA 70816

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  0088546

  	
   

  	
  12/15/00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Banc of America
  Leasing & Capital, LLC

  2059 Northlake Parkway

  4th Floor

  Tucker, GA 30084

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10597703

  	
   

  	
  06/26/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  CIT
  Communications Finance Corporation

  650 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10763909

  	
   

  	
  08/02/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of State,
  Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10828074

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  	
   

  	
  Transamerica
  Equipment Financial Services Corporation

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40434029

  	
   

  	
  02/17/04

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001, assigned to GATX Technology Services Corporation 2/17/04

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10899612

  	
   

  	
  08/23/01, assigned
  2/17/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  	
   

  	
  Transamerica
  Equipment Financial Services Corporation

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40422495

  	
   

  	
  02/17/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001, assigned to GATX Technology Services Corporation, 2/17/04

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10899620

  	
   

  	
  08/23/01,
  assigned 2/17/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10899646

  	
   

  	
  08/23/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001, assigned to GATX Technology Services Corporation

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10899653

  	
   

  	
  08/23/01,
  assigned 2/17/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10899679

  	
   

  	
  08/23/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10899695

  	
   

  	
  08/23/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10899703

  	
   

  	
  08/23/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10899729

  	
   

  	
  08/23/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10907787

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10907803

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10908678

  	
   

  	
  08/13/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10908686

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Transamerica
  Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10908694

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Transamerica
  Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10908777

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10908876

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10909775

  	
   

  	
  08/13/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10932082

  	
   

  	
  08/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10958863

  	
   

  	
  08/15/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10958871

  	
   

  	
  08/15/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  10972740

  	
   

  	
  09/06/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11011910

  	
   

  	
  08/22/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11011944

  	
   

  	
  08/22/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  CIT
  Communications Finance Corporation

  650 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11024954

  	
   

  	
  09/17/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology
  Services Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11027205

  	
   

  	
  08/24/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11028351

  	
   

  	
  08/24/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11028377

  	
   

  	
  08/24/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Suite 1700

  Chicago, IL 60601

  	
   

  	
  GATX Capital
  Corporation

  Four Embarcadero Center

  Suite 2200
  San Francisco, CA 94111

  Assignee:

  Boeing Capital Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11031223

  	
   

  	
  08/24/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  GATX Technology Services
  Corporation

  2502 North Rocky Point Drive

  Suite 960

  Tampa, FL 33607

  Assignee:

  Transamerica Equipment Financial Services Corporation

  5080 Spectrum Drive

  Suite 1100 West

  Addison, TX 75001

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11057459

  	
   

  	
  08/29/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  P.O. Box 667

  Highway 301 South

  Latta, SC 29565

  	
   

  	
  Colonial Pacific
  Leasing

  P.O. Box 23185

  Portland, OR 97281

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11099071

  	
   

  	
  09/05/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container Corporation

  6902 West Northern Avenue

  Glendale, AZ 85303

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11154595

  	
   

  	
  10/03/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11155345

  	
   

  	
  10/03/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11157598

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11157887

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11157960

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11157978

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158000

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158034

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158067

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158117

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158125

  	
   

  	
  09/14/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158141

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158158

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of State,
  Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158174

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158182

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158224

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158497

  	
   

  	
  09/14/01, amended
  11/15/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11158778

  	
   

  	
  09/14/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11174643

  	
   

  	
  10/05/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Meridian Leasing
  Corporation

  570 Lake Cook Rd., Suite 300

  Deerfield, IL 60015

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11180293

  	
   

  	
  09/18/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Meridian Leasing
  Corporation

  570 Lake Cook Rd., Suite 300

  Deerfield, IL 60015

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11241897

  	
   

  	
  09/27/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11248264

  	
   

  	
  09/27/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11248314

  	
   

  	
  09/27/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11253645

  	
   

  	
  09/28/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11253736

  	
   

  	
  09/28/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11253835

  	
   

  	
  09/28/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11253884

  	
   

  	
  09/28/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  P.O. Box 340001

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11259832

  	
   

  	
  09/28/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corp.

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Kaman Industrial
  Technologies Corp.

  1 Waterside Crossing

  Windsor, CT 06095

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11317887

  	
   

  	
  10/25/01, amended
  11/13/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11569503

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11569545

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11569610

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11569677

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11569719

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11569735

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11576292

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11576334

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of State,
  Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11579825

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11579833

  	
   

  	
  11/01/01

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment Leasing
  Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11579858

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11579866

  	
   

  	
  11/01/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11642532

  	
   

  	
  11/08/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11642540

  	
   

  	
  11/08/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11642557

  	
   

  	
  11/08/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11642565

  	
   

  	
  11/08/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11642581

  	
   

  	
  11/08/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  11642755

  	
   

  	
  11/08/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20058200

  	
   

  	
  12/03/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20170690

  	
   

  	
  12/20/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20170708

  	
   

  	
  12/20/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20170716

  	
   

  	
  12/20/01

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20614606

  	
   

  	
  02/15/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20712434

  	
   

  	
  02/28/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255, assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722607

  	
   

  	
  03/12/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722631

  	
   

  	
  03/12/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722656

  	
   

  	
  03/20/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722664

  	
   

  	
  03/20/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722714

  	
   

  	
  03/15/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722755

  	
   

  	
  03/15/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722771

  	
   

  	
  03/15/02,
  assigned 4/8/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722805

  	
   

  	
  03/15/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722813

  	
   

  	
  03/20/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722821

  	
   

  	
  03/15/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722839

  	
   

  	
  03/15/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722870

  	
   

  	
  03/20/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722896

  	
   

  	
  03/15/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Nations Bank of
  NC f/k/a NCNB National Bank of NC, as Trustee

  One NCNB Plaza

  Charlotte, NC 28255 assigned to Bank of New York Trust Company of Florida
  N.A., 4/8/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20722912

  	
   

  	
  03/20/02,
  assigned 4/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  De Lage Landen
  Financial Services

  1111 Old Eagle School Rd.

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  20848634

  	
   

  	
  03/12/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21009152

  	
   

  	
  04/01/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21063993

  	
   

  	
  04/08/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of State,
  Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21064033

  	
   

  	
  04/08/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21064082

  	
   

  	
  04/08/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Meridian Leasing
  Corporation

  570 Lake Cook Rd., Suite 300

  Deerfield, IL 60015

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21076383

  	
   

  	
  04/09/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172, assigned to LaSalle National Bank, 9/6/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21390040

  	
   

  	
  05/13/02,
  assigned 9/6/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 8/29/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21390081

  	
   

  	
  05/13/02,
  assigned 8/29/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 7/1/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21390099

  	
   

  	
  05/13/02,
  assigned 7/1/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 7/1/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21392038

  	
   

  	
  05/13/02,
  assigned 7/1/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Column Financial
  Inc., a Delaware corporation

  3414 Peachtree Road, NE

  Suite 1140

  Atlanta, GA 30326 assigned to LaSalle National Bank, 7/1/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21392152

  	
   

  	
  05/13/02, assigned
  7/1/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 7/1/02

  	
   

  	
  Secretary of State,
  Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21392186

  	
   

  	
  05/13/02,
  assigned 7/1/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 7/1/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21392285

  	
   

  	
  05/13/02,
  assigned 7/1/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 7/1/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21392376

  	
   

  	
  05/13/02,
  assigned 7/1/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 7/1/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21392442

  	
   

  	
  05/13/02,assigned
  7/1/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Column Financial
  Inc., a Delaware corporation

  3414 Peachtree Road, NE

  Suite 1140

  Atlanta, GA 30326 assigned to LaSalle National Bank, 7/1/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21392509

  	
   

  	
  05/13/02,
  assigned 7/1/02, 7/8/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  Mill Street

  Hodge, LA 71247

  	
   

  	
  A. W. Chesterton
  Company

  225 Fallon Road

  Stoneham, MA 02180

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21409477

  	
   

  	
  06/07/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  CIT
  Communications Finance Corporation

  1 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21576291

  	
   

  	
  05/28/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  CIT
  Communications Finance Corporation

  1 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21600760

  	
   

  	
  05/30/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  Suite 1100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21671258

  	
   

  	
  06/07/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172, assigned to LaSalle National Bank 7/29/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21732019

  	
   

  	
  06/17/02,
  assigned 7/29/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Column Financial
  Inc., a Delaware corporation

  3414 Peachtree Road, NE

  Suite 1140

  Atlanta, GA 30326, assigned to LaSalle National Bank 7/29/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21738370

  	
   

  	
  06/17/02,
  assigned 7/29/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  	
   

  	
  Column
  Financial, Inc., a Delaware corporation

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21998719

  	
   

  	
  07/29/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21743511

  	
   

  	
  06/18/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21743529

  	
   

  	
  06/18/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21743552

  	
   

  	
  06/18/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21930951

  	
   

  	
  07/31/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Avenue

  Suite 1100

  Clayton, MO 63105

  	
   

  	
  Reliance Bank

  11781 Manchester Road

  Des Peres, MO 63131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  21943574

  	
   

  	
  07/15/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 8/19/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22002206

  	
   

  	
  07/29/02,
  assigned 8/19/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  DLJ Mortgage
  Capital, Inc., a Delaware corporation

  277 Park Ave., 9th Floor

  New York, NY 10172 assigned to LaSalle National Bank, 8/19/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22002230

  	
   

  	
  07/29/02,
  assigned 8/19/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22015885

  	
   

  	
  07/31/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment Leasing
  Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22015893

  	
   

  	
  07/31/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22015901

  	
   

  	
  07/31/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  CIT
  Communications Finance Corporation

  1 CIT Drive

  Livingston, NJ 07039

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22026999

  	
   

  	
  08/01/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Column Financial
  Inc., a Delaware corporation

  3414 Peachtree Road, NE

  Suite 1140

  Atlanta, GA 30326, assigned to LaSalle National Bank 8/29/02

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22051617

  	
   

  	
  08/06/02,
  assigned 8/29/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  Paper Mill Road

  Florence, SC 29506

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  IDB Leasing, Inc.

  Richard Miller

  511 Fifth Avenue

  New York, NY 10017

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22119414

  	
   

  	
  08/16/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  Paper Mill Road

  Florence, SC 29506

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  IDB Leasing, Inc.

  Richard Miller

  511 Fifth Avenue

  New York, NY 10017

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22120941

  	
   

  	
  08/16/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  Paper Mill Road

  Florence, SC 29506

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  IDB Leasing, Inc.

  Richard Miller

  511 Fifth Avenue

  New York, NY 10017

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  22124463

  	
   

  	
  08/16/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  14377 Pulp Mill Road

  Missoula, MT 59808

  	
   

  	
  Applied
  Industrial Technologies, Inc.

  One Applied Plaza E.

  36th St. & Euclid Avenue

  Cleveland, OH 44115

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22450777

  	
   

  	
  09/30/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  1st Constitution Bank

  2650 Route 130

  Cranbury, NJ 08512

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22482978

  	
   

  	
  09/26/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  Paper Mill Road

  Florence, SC 29506

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  1st Constitution Bank

  2650 Route 130

  Cranbury, NJ 08512

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22483042

  	
   

  	
  09/26/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  1881 West North Temple

  Salt Lake City, UT 84116

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  1st Constitution Bank

  2650 Route 130

  Cranbury, NJ 08512

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22487092

  	
   

  	
  09/26/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  910 Industrial Street

  Hopewell,VA 23860

  	
   

  	
  Springs Leasing
  Corporation

  P.O. Box 667817

  Charlotte, NC 28266

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22709545

  	
   

  	
  10/16/02

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  401 Alton Street

  Alton, IL 62002

  and

  Stone Container Corporation

  622 Emerson, Suite 430

  Creve Coeur, MO 63146

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  1st Constitution Bank

  2650 Route 130

  Cranbury, NJ 08512

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  22865040

  	
   

  	
  10/31/02

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  208 South LaSalle Street

  Chicago, IL 60604

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30403587

  	
   

  	
  02/14/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  208 South LaSalle Street

  Chicago, IL 60604

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30403637

  	
   

  	
  02/14/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  208 South LaSalle Street

  Chicago, IL 60604

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30403678

  	
   

  	
  02/14/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  208 South LaSalle Street

  Chicago, IL 60604

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30403728

  	
   

  	
  02/14/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Ave.

  Clayton, MO 63105

  	
   

  	
  General Electric
  Capital Corporation

  1415 W. 22nd Street

  Suite 400

  Oak Brook, IL 60523

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30421779

  	
   

  	
  02/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30462401

  	
   

  	
  02/24/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  IBM Credit LLC

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30656143

  	
   

  	
  02/21/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  3244 Gardner Avenue

  Kansas City, MO 64120

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  IDB Leasing, Inc.

  Richard Miller

  511 Fifth Avenue

  New York, NY 10017

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  30669807

  	
   

  	
  02/25/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  1424 South Raymond

  Fullerton, CA 92634

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30681992

  	
   

  	
  03/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container Corporation

  19635 East Walnut Drive North

  Walnut, CA 91789

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30682099

  	
   

  	
  03/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  Martinsville Industrial Park

  Martinsville, VA 24112

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30682180

  	
   

  	
  03/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  Martinsville Industrial Park

  Martinsville, VA 24112

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30682230

  	
   

  	
  03/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30682271

  	
   

  	
  03/19/03

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 North Michigan Avenue

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30682305

  	
   

  	
  03/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  1925 Stone Court

  Mishawaka, IN 46544

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30682453

  	
   

  	
  03/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  7393 Shawnee Road

  North Tonawanda, NY 14120

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30682461

  	
   

  	
  03/19/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  2127 Reiser Ave SE

  New Phila, OH 44663

  	
   

  	
  IOS Capital, LLC

  1738 Bass Road

  Macon, GA 31210

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30925498

  	
   

  	
  04/09/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  2127 Reiser Ave SE

  New Phila, OH 44663

  	
   

  	
  IOS Capital, LLC

  1738 Bass Road

  Macon, GA 31210

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30925977

  	
   

  	
  04/09/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jefferson Smurfit
  Corporation (U.S.)

  8182 Maryland Avenue

  St. Louis, MO 63105

  	
   

  	
  Deere
  Credit, Inc.

  301 Grant Street

  Pittsburgh, PA 15219

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  30936537

  	
   

  	
  04/10/03, amended
  4/24/03, 8/31/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  108 South Sycamore Street

  Jefferson, OH 44047

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  1st Constitution Bank

  2650 Route 130

  Cranbury, NJ 08512

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31043366

  	
   

  	
  04/09/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  5505 Natural Bridge

  St. Louis, MO 63120

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  1st Constitution Bank

  2650 Route 130

  Cranbury, NJ 08512

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31043499

  	
   

  	
  04/09/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  Ten Superior Way

  Ontonagon, MI 49953

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31127136

  	
   

  	
  05/01/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31130700

  	
   

  	
  05/01/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Meridian Leasing
  Corporation

  570 Lake Cook Rd. Ste. 300

  Deerfield, IL 60015

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31222549

  	
   

  	
  04/28/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  3244 Gardner Avenue

  Kansas City, MO 64120

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31398711

  	
   

  	
  06/03/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container

  Mill Street

  Hodge, LA 71247

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31513814

  	
   

  	
  06/16/03

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  3244 Gardner Avenue

  Kansas City, MO 64120

  	
   

  	
  Trilogy Leasing
  Co., LLC

  2551 Route 130

  Cranbury, NJ 08512

  Assignee:

  1st Constitution Bank

  2650 Route 130

  Cranbury, NJ 08512

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31587560

  	
   

  	
  05/21/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  General Electric
  Capital Business Asset Funding Corporation formerly known as MetLife Capital
  Corporation

  10900 NE 4th Street, Ste. 500, C97550

  Bellevue, WA 98004

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31711756

  	
   

  	
  07/07/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 Michigan Ave.

  Sioux City, IA 51102

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31779738

  	
   

  	
  07/14/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  13833 East Freeway Drive

  Santa Fe Springs, CA 90670

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31813008

  	
   

  	
  07/16/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  401 Alton Street

  Alton, IL 62002

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  31975831

  	
   

  	
  07/31/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  6902 West Northern Avenue

  Glendale, AZ 85303

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32197385

  	
   

  	
  08/22/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  6902 West Northern Avenue

  Glendale, AZ 85303

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32197419

  	
   

  	
  08/22/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  6902 West Northern Avenue

  Glendale, AZ 85303

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32197484

  	
   

  	
  08/22/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32231481

  	
   

  	
  08/28/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32550567

  	
   

  	
  10/01/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32663014

  	
   

  	
  10/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32663030

  	
   

  	
  10/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32664426

  	
   

  	
  10/13/03

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32664434

  	
   

  	
  10/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32807371

  	
   

  	
  10/27/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32807801

  	
   

  	
  10/27/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Ave.

  St. Louis, MO 63105

  	
   

  	
  Deere Credit Inc.

  6400 NW 86th Street

  P.O. Box 6600

  Johnston, IA 50131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  32950726

  	
   

  	
  11/10/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  401 Alton St.

  Alton, IL 62002

  	
   

  	
  IBM Credit LLC

  1 North Castle Drive

  Armonk, NY 10504

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33048165

  	
   

  	
  11/13/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33109215

  	
   

  	
  11/25/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  450 E North Ave.

  Carol Stream, IL 60188

  	
   

  	
  IOS Capital

  1738 Bass Rd.

  Macon, GA 31210

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33135848

  	
   

  	
  11/20/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  33381806

  	
   

  	
  12/23/03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Computer Sales
  International, Inc.

  9990 Old Olive Street Road

  St. Louis, MO 63141, amended and assigned to Heartland Bank, 5/7/04

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40283558

  	
   

  	
  01/08/04, amended
  and assigned 5/7/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40395279

  	
   

  	
  02/12/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  1 South Everitt Avenue

  Panama City, FL 32401

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  1111 Old Eagle School Road

  Wayne, PA 19087

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40526865

  	
   

  	
  02/25/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  201 West Grove Street

  Adams, WI 53910

  	
   

  	
  Sensormatic
  Electronics Corporation

  One Town Center Road

  Boca Raton, FL 33486

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  40574030

  	
   

  	
  03/01/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 North Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  General Electric
  Capital Business Asset Funding Corporation

  10900 NE 4th Street

  Suite 500

  Bellevue, WA 98004

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41187469

  	
   

  	
  04/28/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  407 South Adeway Road

  Fowler, IN 47944

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41711011

  	
   

  	
  06/21/04

  	
   

  

 

 

	
  Debtor

  (as shown on statement)

  	
   

  	
  Secured
  Party

  (as shown on statement)

  	
   

  	
  Jurisdiction

  	
   

  	
  Search

  through

  date

  	
   

  	
  UCC

  	
   

  	
  Fix

  	
   

  	
  File No.

  	
   

  	
  File
  Date

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41736158

  	
   

  	
  06/23/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41736273

  	
   

  	
  06/23/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41737818

  	
   

  	
  06/23/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  BCC Equipment
  Leasing Corporation

  3780 Kilroy Airport Way

  Suite 750

  Long Beach, CA 90806

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41916289

  	
   

  	
  07/08/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  41965393

  	
   

  	
  07/13/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42029728

  	
   

  	
  07/20/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  150 N. Michigan Ave.

  Chicago, IL 60601

  	
   

  	
  Caterpillar
  Financial Services

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42144949

  	
   

  	
  07/30/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  5301 Jefferson

  Harahan, LA 70123

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42487181

  	
   

  	
  09/02/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  5301 Jefferson

  Harahan, LA 70123

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42487199

  	
   

  	
  09/02/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  3101 State St.

  Columbus, IN 47201

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42494922

  	
   

  	
  09/03/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Ave.

  St. Louis, MO 63105

  	
   

  	
  Deere Credit Inc.

  6400 NW 86th Street

  Johnston, IA 50131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42586610

  	
   

  	
  09/15/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  8182 Maryland Ave.

  St. Louis, MO 63105

  	
   

  	
  Deere Credit Inc.

  6400 NW 86th Street

  Johnston, IA 50131

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42586768

  	
   

  	
  09/15/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  500 North 4th Street

  Coshocton, OH 43812

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42654970

  	
   

  	
  09/22/04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone Container
  Corporation

  500 North 4th Street

  Coshocton, OH 43812

  	
   

  	
  Caterpillar
  Financial Services Corporation

  2120 West End Avenue

  Nashville, TN 37203

  	
   

  	
  Secretary of
  State, Delaware

  	
   

  	
  09/23/04

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
  42655027

  	
   

  	
  09/22/04

  	
   

  

 

C.            Canadian Entities

 

[Please
see attached]

 

 

SCHEDULE
7.02(a)(iv) - EXISTING LIENS

 

ALBERTA
SEARCH RESULTS CHART

 

Personal
Property Security Act and Civil Enforcement Act (Currency date as of October 5,
2004)

 

	
   

  	
   

  	
  Registration /

  Expiry Date

  	
   

  	
  Registration No.

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Party

  	
   

  	
  Description

  	
   

  
	
  1.

  	
   

  	
  September 23, 2004

  March 23, 2005

  	
   

  	
  04092311853

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Western Sterling Trucks

  	
   

  	
  Garage Keepers Lien:

  $2,285.61

   

  Collateral: 
  1995 Ford LT900

  Motor Vehicle, Serial Number

  1FTYW90VXSVA67714

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  September 23, 2004

  September 23, 2008

  	
   

  	
  04092319781

  	
   

  	
  Smurfit-MBI

  Smurfit-Stone Container Canada

  Inc.

  Emballages

  Smurfit-Stone

  Canada Inc.

  	
   

  	
  Caterpillar

  Financial Services

  Limited

  	
   

  	
  Security Agreement

   

  Collateral: 
  2004 Caterpillar

  P6000LP Motor Vehicle, Serial

  Number AT13F00422

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  September 11, 2004

  September 11, 2007

  	
   

  	
  04091100125

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Lions Gate Trailers

  Ltd.

  	
   

  	
  Security Agreement

   

  Collateral: 
  2004 Great Dane

  Van 53’ - 102” T Trailer, Serial

  Number 1GRAA06274K258039

   

  General Collateral: 
  The trailers described herein, together with all replacements and
  substitutions therefore and all accessions in or to the property described
  above.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  May 3, 2004

  November 3, 2004

  	
   

  	
  04050333477

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Western Sterling Trucks

  	
   

  	
  Garage Keepers’ Lien: $1,018.89

   

  Collateral:  1995
  Ford LT900 Motor Vehicle, Serial Number 1FTYW90VXSVA68281

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  February 13, 2003

  February 13, 2006

  	
   

  	
  03021302728

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Lions Gate Trailers Ltd.

  	
   

  	
  Security Agreement

   

  Collateral: 2001 Great Dane

  Van 53’-102” Tan Trailer, Serial Number
  1GRAA06251B021626

   

  General Collateral: 
  The trailers described herein, together with all replacements and
  substitutions therefore and all accessions in or to the property.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  September 17, 2002

  September 17, 2005

  	
   

  	
  02091706206

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Lions Gate Trailers Ltd.

  	
   

  	
  Security Agreement

   

  Collateral: 
  1996 Stoughton

  Van-53’ - 102” - TA Trailer,

  Serial Number 1DW1A5327TS018977

  	
   

  

 

 

	
   

  	
   

  	
  Registration /

  Expiry Date

  	
   

  	
  Registration No.

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Party

  	
   

  	
  Description

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  General Collateral: 
  The trailers described herein, together with all replacements and
  substitutions therefore and all accessioins in or to the property.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  July 31, 2002

  July 31, 2007

  	
   

  	
  02073126316

  	
   

  	
  Smurfit-MBI

   

  MBI Limited

   

  MBI Limitee

  	
   

  	
  Royal Bank of

  Canada

  	
   

  	
  Security Agreement

   

  General Collateral: 
  One Canon

  Imagerunner 2200 copier, together with all goods and
  services, parts, attachments, accessories, additions, repair parts,
  substitutions and other equipment placed on or forming part of the goods
  described herein.

   

  Proceeds:  All
  present and after-acquired personal property that may be derived from the
  sale or other disposition of the collateral described above and any proceeds
  thereof.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  May 13, 2002

  May 13, 2007

  	
   

  	
  02051326367

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  Security Agreement

   

  General Collateral: 
  1 new Richo Aficio, goods and services as further detailed under
  lease, including, all attachments, additions, accessories, repairs,
  replacements, substitutions and proceeds derived therefrom.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  May 13, 2002

  May 13, 2007

  	
   

  	
  02051326466

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  Security Agreement

   

  General Collateral: 
  2 new photocopiers, goods and services as further detailed under
  lease, including all attachments, additions, accessories, repairs,
  replacements, substitutions and proceeds derived therefrom.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  April 24, 2002

  April 24, 2007

  	
   

  	
  02042403382

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Hewlett-Packard

  (Canada) Ltd.

  	
   

  	
  Security Agreement

   

  General Collateral: 
  Equipment described in leases, from time to time leased by the secured
  party to the debtor and any proceeds thereof, together with  all replacement parts, accessories,
  attachments, and appurtenances appertaining or attached to any such
  equipment, and all substitutions and replacements except any licensed
  software that may accompany such equipment, and all rights, powers,
  privileges and remedies of the debtor therewith.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  April 24, 2002

  April 24, 2005

  	
   

  	
  02042411260

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Lions Gate Trailers Ltd.

  	
   

  	
  Security Agreement

   

  Collateral:

   

  1995 Stoughton Van 53’ - 102”

  Tan A Trailer, Serial Number

  1DW1A5320SS955281

   

  1995 Stoughton Van 53’ - 102”

  Tan A Trailer, Serial Number

  1DW1A5328SS955254

   

  General Collateral: 
  The trailers described herein, together with all replacements and
  substitutions therefore and all accessions in or to the property.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  March 13, 2002

  March 13, 2005

  	
   

  	
  02031331677

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Lions Gate Trailers Ltd.

  	
   

  	
  Security Agreement

   

  Collateral: 
  1995 Stoughton

  Van - 53’ - 102” - Tan-A Trailer

  	
   

  

 

 

	
   

  	
   

  	
  Registration /

  Expiry Date

  	
   

  	
  Registration No.

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Party

  	
   

  	
  Description

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Serial Number 1DW1A532XSS955255

   

  General Collateral: 
  The trailers described herein, together with all replacement and
  substitutions therefore and all accessions in or to the property.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  February 4, 2002

  February 4, 2005

  	
   

  	
  02020428971

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Lions Gate Trailers Ltd.

  	
   

  	
  Security Agreement

   

  Collateral:

   

  2001 Greatdane Van-53’ - 102”

  - TA Trailer, Serial Number

  1GRAA06291B021631

   

  1996 Stoughton Van-53’ - 102” - TA Trailer, Serial
  Number 1DW1A5324TS018984

   

  General Collateral: 
  The trailers described herein, together with all replacements and
  substitutions therefore and all accessions in or to the property described
  above.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  April 2, 2001

  April 2, 2006

  	
   

  	
  01040226472

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  General Collateral: 
  One (1) Aficio 551 Photocopies, and two (2) Aficio 220
  Photocopiers completed with all accessories and attachments

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  July 25, 2000

  July 25, 2005

  	
   

  	
  00072525512

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  Security Agreement

   

  General Collateral: 
  Kingsberg SM1930PL Sample Table

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  October 13, 1999

  October 13, 2005

  	
   

  	
  99101322412

  	
   

  	
  Smurfit-MBI

   

  MacMillan Bathurst

  	
   

  	
  The Royal Bank of Canada

  	
   

  	
  Security Agreement

   

  General Collateral: 
  New telephone system including all hardware, software, accessories and
  voicemail as per Lease No. 69965.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  April 7, 1999

  April 7, 2005

  	
   

  	
  99040703045

  	
   

  	
  MacMillan Bathurst

  	
   

  	
  Ikon Office Solutions

  	
   

  	
  Security Agreement

   

  General Collateral: 
  347101N

  ASCOM E220 AS5 Mailing System; S40081 ASCOM AS5L
  Sealer; H206373 ASCOM 16410D Meter; 1370896 ASCOM 5055 Scale

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  April 21, 1998

  April 21, 2008

  	
   

  	
  98042100689

  	
   

  	
  Smurfit-MBI

   

  MacMillan Bathurst Inc.

   

  MacMillan Bathurst

  	
   

  	
  PHH Vehicle Management Services, Inc.

  	
   

  	
  Security Agreement

   

  Collateral:

   

  2002 Chevrolet Impala Motor Vehicle, Serial Number
  2G1WF52E729366165

   

  2002 Chrysler Sebring Motor Vehicle, Serial Number
  1C3EL46R52N193895

   

  2003 Ford Windstar Motor Vehicle, Serial Number
  2FMZA57403BB37836

   

  2000 Buick Regal Motor

  Vehicle, Serial Number 2G4WB52K8Y1310263

   

  2001 Chrysler Intrepid Motor Vehicle, Serial Number
  2C3HH56JX1H584384

   

  2001 Chevrolet Impala Motor Vehicle, Serial Number
  2G1WF52E519303404

  	
   

  

 

 

	
   

  	
   

  	
  Registration /

  Expiry Date

  	
   

  	
  Registration No.

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Party

  	
   

  	
  Description

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2001 Chevrolet Impala Motor Vehicle, Serial Number
  2G1WF52E619301757

   

  2002 Chrysler Sebring Motor Vehicle, Serial Number
  1C3EL46R02N203975

   

  2002 Chevrolet Impala Motor Vehicle, Serial Number

  2G1WF52E329237503

   

  2002 Ford Taurus Motor

  Vehicle, Serial Number 1FAFP56U22G179929

   

  2002 Chrysler Sebring Motor Vehicle, Serial Number
  1C3EL46R32N227557

   

  2003 Ford Taurus Motor

  Vehicle, Serial Number 1FAFP53U43G156335

   

  2003 Dodge Caravan Motor

  Vehicle, Serial Number 1D4GP25R13B256513

   

  2003 Chevrolet Impala Motor Vehicle, Serial Number
  2G1WF52E039328326

   

  General Collateral: 
  Motor

  vehicles (including, without limitation, truck tractors, truck trailers,
  truck chassis or truck bodies), automotive equipment (including, without
  limitation, trailers, boxes and refrigeration units) and materials-handling
  equipment leased by the debtor from the secured party together with all
  attachments, accessions, appurtenances, accessories or replacement parts.

   

  Proceeds:  All
  of the debtor’s present and after acquired personal property including,
  without limitation, goods, securities, 
  instruments, documents of title, chattel paper, intangibles and money.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  April 25, 1997

  April 25, 2007

  	
   

  	
  97042520946

  	
   

  	
  Stone-Consolidated Inc.

  	
   

  	
  GE Capital Railcar Services Canada Inc.

  	
   

  	
  Security Agreement

   

  General Collateral: 
  Tank Cars

  	
   

  

 

 

BRITISH
COLUMBIA SEARCH RESULTS CHART

 

Personal
Property Registry (the “PPR” under the British Columbia Personal
Property Security Act, the Repairers Lien Act, the
Sale of Goods Act, the Manufactured Home Act, the Land Tax
Deferment Act, the Social Service Tax Act
and the Social Service Tax Act and the Miscellaneous Registrations Act (Currency date of October 6,
2004)

 

	
   

  	
   

  	
  REG’N NO.

  	
   

  	
  REG’N DATE 

  EXPIRATION 

  DATE

  	
   

  	
  DEBTOR

  	
   

  	
  SECURED PARTY

  	
   

  	
  COLLATERAL/REGISTRATION DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  7607962

  	
   

  	
  April 21, 1998  

  April 21, 2008

  	
   

  	
  Smurfit-MBI  

  MacMillan Bathurst  

  MacMillan Bathurst Inc.

  	
   

  	
  PHH Vehicle Management Services Inc.

  	
   

  	
  PPSA Security Agreement.  

  General Collateral:  

  Motor vehicles (including, without limitation, truck
  tractors, truck trailers, truck chassis or truck bodies), automotive
  equipment (including, without limitation, trailers, boxes and refrigeration
  units) and materials handling equipment leased by the debtor from the secured
  party together with all attachments, appurtenances, accessories or replacement
  parts.  Proceeds
  all of the debtors present and after acquired personal property including,
  without limitation, goods, securities, instruments, documents of title,
  chattel paper, intangibles and money.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  8381238

  	
   

  	
  July 26, 1999  

  July 26, 2005

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  PPSA Security Agreement.  

  General Collateral:  

  Goods of the debtor consisting of all present and
  after acquired goods leased, supplied or financed by secured party and all
  substitutions to and replacements therefor (hereinafter collectively referred
  to as ‘goods’)
  including without limitation the following: Ricoh photo copiers and Ricoh
  faxes and all parts, components, attachments, additions, alterations,
  accessories, accessions, improvements, and other personal property placed on,
  added to, or appurtenant to the goods (hereinafter collectively referred to
  as ‘Improvements’). And all intangibles, accounts (including book accounts),
  dues, claims, choses in action and demands now owned or hereafter acquired by
  debtor being or related to any and all security deposits made or required to
  be made by debtor to secured party by or under any lease, security agreement,
  or other document between debtor and secured party with respect to the goods
  including security deposits which are now due, owing, or accruing or growing
  due to or owned by or which may hereafter become due, owing or accruing or
  growing due to or owned by the debtor (collectively, the “Security
  Deposits”). And all deeds, documents, writings, papers and books relating to
  or being records of goods, improvements, security deposits and their proceeds
  or by which the goods, improvements, and security deposits and their proceeds
  may hereafter be secured, made payable, evidenced or acknowledged, including
  securities, chattel paper, instruments and documents of title and all
  contractual and other industrial property relating to goods, improvements,
  security deposits or their proceeds.  

   

  Proceeds: all proceeds including, without limitation, goods (including
  inventory equipment (equipment includes, without limitation, machinery,
  tools, apparatus, plant, furniture, fixtures, aircraft and vehicles of
  whatsoever nature and kind) but excluding consumer goods) chattel paper,
  intangibles, documents of title, instruments securities, money licenses,
  fixtures and crops.

  

 

 

	
   

  	
   

  	
  REG’N NO.

  	
   

  	
  REG’N DATE 

  EXPIRATION 

  DATE

  	
   

  	
  DEBTOR

  	
   

  	
  SECURED PARTY

  	
   

  	
  COLLATERAL/REGISTRATION DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  8238730

  	
   

  	
  May 5, 1999

  May 5, 2006

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  PPSA Security Agreement.  

  General Collateral:  

  Goods of the debtor consisting of all present and after acquired goods
  leased, supplied or financed by secured party and all substitutions to and
  replacements therefor (hereinafter collectively referred to as ‘Goods’)
  including without limitation the following: 1-Celix 8200R image setter and
  all parts, components, attachments, additions, alterations, accessories,
  accessions, improvements, and other personal property placed on, added to, or
  appurtenant to the goods (hereinafter collectively referred to as
  ‘Improvements’).  

   

  And all intangibles, accounts (including book accounts), dues, claims,
  choses in action and demands now owned or hereafter acquired by debtor being
  or related to any and all security deposits made or required to be made by
  debtor to secured party by or under any lease, security agreement, or other
  document between debtor and secured party with respect to the goods including
  security deposits which are now due, owing, or accruing or growing due to or
  owned by or which may hereafter become due, owing or accruing or growing due
  to or owned by the debtor (collectively, the ‘security deposits’).  

   

  And all deeds, documents, writings, papers and books relating to or
  being records of goods, improvements, security deposits and their proceeds or
  by which the goods, improvements,the security deposits and their proceeds may
  hereafter be secured, made payable, evidenced or acknowledged, including
  securities, chattel paper, instruments and documents of title and all
  contractual and other industrial property relating to goods, improvements,
  security deposits or their proceeds.  

   

  Proceeds: All proceeds including, without limitation, goods (including
  inventory, equipment (equipment includes, without limitation, machinery,
  tools, apparatus, plant, furniture, fixtures, aircraft and vehicles of
  whatsoever nature and kind) but excluding consumer goods) chattel paper,
  intangibles, documents of title, instruments, securities, money, licenses,
  fixtures and crops.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  8299387

  	
   

  	
  June 9, 1999

  June 9, 2008

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Fuji Graphic Systems Canada, Inc.

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  1 Fuju CA600-P-111-LX Processor with stand

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  9366776

  	
   

  	
  March 22, 2001

  March 22, 2007

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  One Kongsberg CN1930PL sample table complete with
  accessories and attachments.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  721142B

  	
   

  	
  May 25, 2004

  May 25, 2005

  	
   

  	
  Smurfit-MBI

  Image Pac Graphics

  Image Pac Graphics 

  (BC)

  	
   

  	
  Fuji Graphic Systems Canada, Inc.

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  1 Celeb rip updater V5.15 (CD / only)

  1 MS Oem Eng Win 2000 Serv 5client SP4 1PK

  1 MS Oem Eng Win 2000 Serv 5client SP4 1PK

  1 Interl Pro 1000MT NIC SGL-COPP

  1 FFEI LUXEL F9000 Dual Laser w / custom

  1 Fuji W2KDual P3 1GB / 1GHTZ, 2X18GB-17”

  

 

 

	
   

  	
   

  	
  REG’N NO.

  	
   

  	
  REG’N DATE 

  EXPIRATION 

  DATE

  	
   

  	
  DEBTOR

  	
   

  	
  SECURED PARTY

  	
   

  	
  COLLATERAL/REGISTRATION DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  721147B

  	
   

  	
  May 25, 2004

  May 25, 2008

  	
   

  	
  Smurfit-MBI

  Image Pac Graphics

  Image Pac Graphics 

  (BC)

  	
   

  	
  Fuji Graphic Systems Canada, Inc.

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  1 Fuji online film proc-sumo AP1250X

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  933164B

  	
   

  	
  September 15, 2004

  March 14, 2005

  	
   

  	
  Smurfit-MBI

  	
   

  	
  National Truck Centre Inc. DBA Volvo Trucks of
  Vancouver

  	
   

  	
  Repairers Lien Act.

  Vehicle Collateral:

  V0001 MV International

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  937229B

  	
   

  	
  September 17, 2004

  September 17, 2008

  	
   

  	
  Smurfit-MBI

   

  Image Pac Graphics

   

  Image Pac Graphics 

  (BC)

  	
   

  	
  Fuji Graphic Systems Canada, Inc.

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  1 Hunt 20/20 chempact

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  952957B

  	
   

  	
  September 27, 2004

  September 27, 2010

  	
   

  	
  Smurfit-MBI

   

  Smurfit-Stone

  Container Canada

  Inc.

  	
   

  	
  Caterpillar Financial Services Limited

  	
   

  	
  PPSA Security Agreement.

  Vehicle Collateral:

  V001 MV Hyster E50Z

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  270246A

  	
   

  	
  March 8, 2002

  March 8, 2007

  	
   

  	
  Image Pac Graphics

   

  Image Pac Graphics

  (BC)

  	
   

  	
  Xerox Canada Limited

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  All present and future office equipment leased on a
  conditional sale or similar basis, or otherwise financed by the secured party
  whether or not manufactured by the secured party or any affiliate thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  3325208

  	
   

  	
  April 19, 1991

  April 19, 2011

  	
   

  	
  Stone Container

  (Canada) Inc.

  Emballages Stone

  (Canada) Inc.

  	
   

  	
  Royal Bank of Canada

   

  National Westminister Bank of Canada

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  All rights of the debtor to receive payments or
  distributions of assets of CITIC B.C. Inc.

   

  Proceeds:  all
  proceeds that are goods, chattel paper, securities, documents of title, instruments,
  money, intangibles, or other present and after-acquired property of the
  debtor.

   

  In this general collateral description, all words
  and expressions defined in the Personal Property
  Security Act shall have the meaning specified therein.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  3325309

  	
   

  	
  April 19, 1991

  April 19, 2011

  	
   

  	
  Stone Container

  (Canada) Inc.

  Emballages Stone

  (Canada) Inc.

  	
   

  	
  Royal Bank of Canada

  National Westminister Bank of Canada

  National Westminister Bank PLC

  Royal Bank of Canada

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  All goods, chattel paper, securities, documents of
  title, instruments, money, intangibles or other present and after-acquired
  property of Power Consolidated (China) Pulp Inc., Pates a Papier Power
  Consolidated (Chine) Inc. and Power Consolidated (China) Pulp Inc. / Pates a
  Papier Power Consolidated (Chine) Inc. on any dissolution, winding-up,
  liquidation, bankruptcy, insolvency or receivership (or reorganization
  equivalent thereto) of Power Consolidated (China) Pulp Inc., Pates 

  

 

 

	
   

  	
   

  	
  REG’N NO.

  	
   

  	
  REG’N DATE 

  EXPIRATION 

  DATE

  	
   

  	
  DEBTOR

  	
   

  	
  SECURED PARTY

  	
   

  	
  COLLATERAL/REGISTRATION DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  a Papier Power Consolidated (Chine) Inc. and Power
  Consolidated (China) Pulp Inc./Pates a Papier Power Consolidated (Chine) Inc.

   

  Proceeds:  all
  proceeds that are goods, chattel paper, securities, documents of title,
  instruments, money, intangibles or other present and after-acquired property
  of the debtor.

   

  In this general collateral description, all words and expressions
  defined in the Personal Property Security Act
  shall have the meaning specified therein.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  3324863

  	
   

  	
  April 19, 1991

  April 19, 2011

  	
   

  	
  Stone Container

  (Canada) Inc.

  Emballages Stone

  (Canada) Inc.

  	
   

  	
  CITIC Canada Inc.

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  Pursuant to subrogation rights granted to the
  secured party in a subrogation agreement between the secured party and the
  debtor, the collateral consists of all rights of the debtor to receive
  payments or distributions of assets of CITIC B.C. Inc.

   

  Proceeds:  all
  proceeds that are goods, chattel paper, securities, documents of title,
  instruments, money, intangibles or other present and after-acquired property
  of the debtor.

   

  In this general collateral description, all words
  and expressions defined in the Personal Property
  Security Act shall have the meaning specified therein.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  3325372

  	
   

  	
  April 19, 1991

  April 19, 2011

  	
   

  	
  Stone Container

  (Canada) Inc.

  Emballages Stone

  (Canada) Inc.

  	
   

  	
  Royal Bank of Canada

  National Westminister Bank of Canada

  National Westminister Bank PLC

  Royal Bank of Canada

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  All goods, chattel paper, securities, documents of
  title, instruments, money, intangibles or other present and after-acquired
  property of Power Consolidated (China) Pulp Inc., Pates a Papier Power
  Consolidated (Chine) Inc. and Power Consolidated (China) Pulp Inc. / Pates a
  Papier Power Consolidated (Chine) Inc. on any dissolution, winding-up,
  liquidation, bankruptcy, insolvency or receivership (or reorganization
  equivalent thereto) of Power Consolidated (China) Pulp Inc., Pates a Papier
  Power Consolidated (Chine) Inc. and Power Consolidated (China) Pulp Inc. /
  Pates a Papier Power Consolidated (Chine) Inc.

   

  Proceeds:  all
  proceeds that are goods, chattel paper, securities, documents of title,
  instruments, money, intangibles or other present and after-acquired property
  of the debtor(s).

   

  In this general collateral description, all words
  and expressions defined in the Personal Property
  Security Act shall have the meaning specified therein.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  3324920

  	
   

  	
  April 19, 1991

  April 19, 2011

  	
   

  	
  Stone Container

  (Canada) Inc.

  Emballages Stone

  (Canada) Inc.

  	
   

  	
  Royal Bank of Canada

  National Westminister Bank of Canada

  National Westminister Bank PLC

  Royal Bank of Canada

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  All goods, chattel paper, securities, documents of
  title, instruments, money, intangibles or other present and after-acquired
  property of CITIC B.C. Inc. received by the debtor on any dissolution,
  winding-up, liquidation, bankruptcy, insolvency or receivership (or
  reorganization equivalent thereto) of CITIC B.C. Inc.

   

  Proceeds:  all
  proceeds that are goods, chattel paper, securities, documents of title,
  instruments, 

  

 

 

	
   

  	
   

  	
  REG’N NO.

  	
   

  	
  REG’N DATE 

  EXPIRATION 

  DATE

  	
   

  	
  DEBTOR

  	
   

  	
  SECURED PARTY

  	
   

  	
  COLLATERAL/REGISTRATION DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  money, intangibles or other present and
  after-acquired property of the debtor.

   

  In this general collateral description, all words
  and expressions defined in the Personal Property
  Security Act shall have the meaning specified therein.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  3175708

  	
   

  	
  January 25, 1991

  January 25, 2011

  	
   

  	
  Stone Container

  (Canada) Inc.

  Emballages Stone

  (Canada) Inc.

  	
   

  	
  Computershare Trust Company of Canada

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  All of the present and after acquired personal
  property, of whatsoever nature and kind and whatsoever situate of of Power
  Consolidated (China) Pulp Inc., Pates a Papier Power Consolidated (Chine)
  Inc. Power Consolidated (China) Pulp Inc. / Pates a Papier Power Consolidated
  (Chine) Inc. (“Debtor”), and fixtures and licenses and an uncrystallized
  floating charge on land, and including, without limitation, all of the
  following now owned or  hereafter owned
  or acquired by or on behalf of the debtor:

   

  (I) all structures, buildings, improvements and
  fixtures now or hereafter constructed, brought, placed or otherwise situate
  on or under any real property or interest therein now owned or hereafter
  acquired by the debtor;

   

  (II) all machinery, equipment, plant, vehicles,
  goods, chattels and other tangible personal property, including without
  limitation the vehicle collateral described herein;

   

  (III) all leasehold interests in machinery,
  equipment, plant, vehicles, goods, chattels and other tangible personal
  property now owned or hereafter acquired by the debtor and all additions,
  attachments and modifications to or substitutions for or replacements of any
  of the foregoing made from time to time;

   

  (IV) all contracts;

   

  (V) all copyrights, trade names, trademarks,
  software, process, licenses and other intellectual property;

   

  (VI) all policies of insurance and all rights,
  benefits and claims accruing thereunder from time to time and proceeds
  payable or paid thereunder from time to time including all rights of the
  debtor in respect of any policies of insurance arranged on behalf of the
  debtor,

   

  (VII) all permits, licenses, orders,
  authorizations, consents, rights, privileges, registrations, filings,
  commitments, judgments, directions, ordinances, decrees or other approvals
  issued from time to time by any governmental, municipal, regulatory or
  administrative authority or other law, regulation or rule making entity;

   

  (VIII) all debts, moneys, accounts, claims,
  receivables and chooses in action which now are or which may at any time hereafter
  be due or owing to or owned by the debtor and also all securities, bills,
  notes, books, records and other documents now or hereafter held or owned in
  respect thereof;

   

  (IX) all grants, incentives, subsidies, loan
  proceeds, debts and moneys now due, owing or accruing due or which hereafter
  may become due and owing to the debtor from Her Majesty the Queen in 

  

 

 

	
   

  	
   

  	
  REG’N NO.

  	
   

  	
  REG’N DATE 

  EXPIRATION 

  DATE

  	
   

  	
  DEBTOR

  	
   

  	
  SECURED PARTY

  	
   

  	
  COLLATERAL/REGISTRATION DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  right of the province of British Columbia, Her
  Majesty the Queen in right of Canada, or any federal or provincial minister,
  crown agency or corporation or other governmental or municipal;

   

  (X) all monies now or hereafter on deposit in
  any account of the debtor or in which the debtor now or hereafter has an
  interest at any bank or other financial institution and all term deposits,
  certificates of deposit and similar deposit instruments now or hereafter
  owned by the debtor or in which the debtor now or hereafter has an interest;

   

  (XI) all cash, instruments, securities and
  intangibles that may from time to time be deposited with or held by the
  secured party; (XII) income tax recovery proceeds from fiscal years
  commencing in 1988 received or to be received by the debtor including any
  refunds of tax payable by Her Majesty the Queen in right of Canada or iii
  right of British Columbia or any federal or provincial minister, or other
  governmental authorities;

   

  (XIII) all intangibles now owned or hereafter owned
  or acquired by the debtor, including, without limitation, all book accounts
  and book debts and generally all accounts, debts, moneys, dues and demands
  and choses in action of every nature and kind howsoever arising or secured
  and now due, owing or accruing or growing due, or which may hereafter become
  due, owing or accruing or growing due, to the debtor and any and all monies,
  now or hereafter on deposit in any account of the debtor or in which the
  debtor has an interest and all term deposits, certificates of deposit and similar
  deposits instruments owned by the debtor or in which the debtor has an
  interest and any all claims which the debtor now has or may hereafter have
  under any policy of insurance of whatsoever nature and all deeds, invoices,
  documents, writings, papers, books of account and other books relating to or
  may hereafter be secured, evidenced, acknowledged or made payable;

   

  (XIV) all inventory;

   

  (XV) all goods and other property which are or
  hereafter become fixtures;

   

  (XVI) the undertaking of the debtor; and

   

  (XVII) all proceeds of or from any property
  described in this financing statement, renewals thereof, accretions thereto
  and substitutions therefore.

   

  Terms used in this general collateral description
  which are defined in the Personal Property
  Security Act of British Columbia (“PPSA”) have the meaning set
  forth in the PPSA unless the context otherwise requires or they are otherwise
  defined herein, except that the term “Licences” includes but is not limited
  to licences as defined in the PPSA. The reference to Celgar Pulp Company as a
  debtor in this financing statement is included to indicate a name under which
  Power Consolidated (China) Pulp Inc., Pates a Papier Power Consolidated
  (Chine) Inc. & Power Consolidated (China) Pulp Inc./Pates a Papier
  Power Consolidated (Chine) Inc. carries on business with CITIC B.C. Inc.
  Power Consolidated (China) Pulp Inc., Pates a Papier Power Consolidated
  (Chine) Inc. and Power Consolidated (China) Pulp Inc./Pates a Papier Power
  Consolidated (Chine) Inc. referred to separately herein as debtors are one
  and the same corporation. The reference to CITIC B.C. Inc. as a debtor in
  this financing statement is included to indicate that that corporation
  carries on the said business with Power Consolidated (China) Pulp Inc., Pates
  a Papier Power Consolidated (Chine) Inc. and Power Consolidated (China) Pulp
  Inc./ Pates a Papier Power 

  

 

 

	
   

  	
   

  	
  REG’N NO.

  	
   

  	
  REG’N DATE 

  EXPIRATION 

  DATE

  	
   

  	
  DEBTOR

  	
   

  	
  SECURED PARTY

  	
   

  	
  COLLATERAL/REGISTRATION DESCRIPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Consolidated (Chine) Inc. The general collateral
  described herein includes, without limitation, all of the present and future
  right, title and interest (currently an undivided one-  half interest) of
  Power Consolidated (China) Pulp Inc., Pates a Papier Power Consolidated
  (Chine) Inc. and Power Consolidated (China) Pulp Inc./Pates a Papier Power
  Consolidated (Chine) Inc. in all present and after acquired real and personal
  property comprising assets of the said business, and Montreal Trust Company
  of Canada, Compagnie Montreal Trust du Canada and Montreal Trust Company of
  Canada/ Compagnie Montreal Trust du Canada referred to separately herein as
  secured parties, are one and the same corporate entity.

   

  Vehicle Collateral:

  V0002 MV Caterpillar 950 Loader

  V0003 MV Omega 40 Ton Crane

  V0004 MV Caterpillar D 6

  V0005 MV Caterpillar 950B Loader

  V0006 MV Hyster H100XL

  V0007 MV Grove Crane AP308

  V0008 MV Caterpillar D6H Crawler

   

  Addition of Collateral/Proceeds:

  V0009 MV International Fire Truck

  V0010 MV Caterpillar 980C Wheel Lo

  V0011 MV Caterpillar 980F Wheel Lo

  V0012 MV Caterpiller D7H Crawler

  V0013 MV P&H Tonne Crane

  V0014 MV Gordon Russel Trackmobile

   

  Addition of Collateral/Proceeds:

  V0015 MV Hyster Spec. Boxcar Mover

  V0016 MV Hyster Spec. Boxcar Mover

  V0017 M\T Hyster Spec. Boxcar Mover

   

  Addition of Collateral/Proceeds:

  V0018 MV JLG Boomlift

   

  Addition of Collateral/Proceeds:

  V0019 MV JD 644G Wheel Loader

   

  Addition of Collateral/Proceeds:

  V0020 MV Caterpillar 980G Loader

  V0021 MV Caterpillar D7R XR

   

  Addition of Collateral/Proceeds:

  V0021 MV Grand Cherokee Jeep

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  7004791

  	
   

  	
  April 30, 1997

  April 30, 2007

  	
   

  	
  Stone Consolidated Inc.

  	
   

  	
  GE Capital Railcar Services

  Canada Inc.

  	
   

  	
  PPSA Security Agreement.

  General Collateral:

  Tank Cars.

  

 

 

MANITOBA
SEARCH RESULTS CHART

 

Personal
Property Registry (Currency date of October 6, 2004)

 

	
   

  	
   

  	
  Registration /

  Expiry Date

  	
   

  	
  Registration #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Parties

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  July 2, 2004

  	
   

  	
  200411744808

  	
   

  	
  Emballages Smurfit-Stone Canada Inc.

  Smurfit-Stone Container Canada Inc.

  	
   

  	
  Caterpillar Financial Services Limited

  	
   

  	
  AT800049 2004 Motor Vehicle

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  September 19, 2003

  	
   

  	
  200319731503

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Citicorp Vendor Finance, Ltd.

  	
   

  	
  Various telephone equipment

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  July 31, 2002

  	
   

  	
  200216449206

  	
   

  	
  Smurfit-MBI

  MBI Limited

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  One Aficio Fax Copier together with all goods and
  services attachments

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  April 24, 2002

  	
   

  	
  200208407006

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Hewlett-Packard (Canada) Ltd.

  	
   

  	
  Equipment described in various leases

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  October 7, 2000

  	
   

  	
  200003072702

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  Two Xerox Document Work Centre Pro 635

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  October 7, 2000

  	
   

  	
  200003072702

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  One Aficio 650 and One Aficio 450 together with
  attachments and accessories

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  April 22, 1998

  	
   

  	
  980422106060

  	
   

  	
  Smurfit-MBI

  MacMillan Bathurst

  	
   

  	
  PHH Vehicle Management Services Inc.

  	
   

  	
  Various motor vehicles

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  December 3, 1996

  	
   

  	
  961203102950

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  Production Equipment

  

 

 

ONTARIO
SEARCH RESULTS CHART

 

Personal
Property Security Act (Ontario)

 

DEFINED TERMS

 

	
  A

  	
   

  	
  Accounts

  	
   

  	
  AS

  	
   

  	
  Amount Secured

  	
   

  	
  BD

  	
   

  	
  Book Debts

  
	
  CG

  	
   

  	
  Consumer Goods

  	
   

  	
  DM

  	
   

  	
  Date of Maturity

  	
   

  	
  E

  	
   

  	
  Equipment

  
	
  I

  	
   

  	
  Inventory

  	
   

  	
  MVI

  	
   

  	
  Motor Vehicle Included

  	
   

  	
  N/A

  	
   

  	
  Information Not Available

  
	
  NFMD

  	
   

  	
  No Fixed Maturity Date

  	
   

  	
  O

  	
   

  	
  Other

  	
   

  	
  *

  	
   

  	
  Registration that Applies to a Similar Name

  

 

	
   

  	
   

  	
  File No.

  	
   

  	
  Registration #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  609782193

  	
   

  	
  20041013 1736 8077 4941

  Reg. 4 years

  	
   

  	
  Smurfit-Stone Container

  Canada Inc.

  Smurfit-Stone Container

  Canada Inc. (Different

  Address)

  Emballages Smurfit-Stone

  Canada Inc.

  Emballages Smurfit-Stone

  Canada Inc. (Different

  Address)

  	
   

  	
  Caterpillar Financial

  Services Limited

  	
   

  	
  E, O, MVI, NFMD

  MVI - (3) 2004 CaterpillarNSR40P

  VINS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  607556412

  	
   

  	
  20040722 1440 8077 1668

  Reg. 6 years

  	
   

  	
  Smurfit-Stone Container

  Canada Inc.

  Emballages Smurfit-Stone

  Canada Inc.

  Smurfit-Stone Container

  Canada Inc.

  Emballages Smurfit-Stone

  Canada Inc.

  	
   

  	
  Caterpillar Financial

  Services Limited

  	
   

  	
  E, O, MVI, NFMD

  MVI - (2) 2004 Caterpillar EP20KT

  VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  605655144

  	
   

  	
  20040520 0929 1797 9586

  Reg. 4 years

  	
   

  	
  Smurfit-MBI

  Image PAC Graphics (TOR)

  	
   

  	
  Fuji Graphic Systems

  Canada Inc.

  	
   

  	
  E

  1 Fuji online film proc-sumo

  AP1250X

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  603247032

  	
   

  	
  20040220 1640 16168123

  Reg. 4 years

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Wajax Finance Ltd.

  	
   

  	
  E, MVI

  Unspecified

  

 

 

	
   

  	
   

  	
  File No.

  	
   

  	
  Registration #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20040510 1045 1616 4778

  Amendment

  	
   

  	
  Smurfit-MBI

  	
   

  	
  “

  	
   

  	
  Amendment

  To add a motor vehicle description to line 11 of
  registration number 20040220 1640 1616 8123.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  601880607

  	
   

  	
  20031217 1040 1616 3235

  Reg. 4 years

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Wajax Industries Limited

  	
   

  	
  E

  S120XM hyster forklift S / N

  E004V03927A, S120 hyster forklift

  S/ N D004V03930A

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  601666002

  	
   

  	
  20031209 1450 1530 8561

  Reg. 4 years

  	
   

  	
  MBI Limited

  MBI Limited (Different

  Address)

  	
   

  	
  Liftcapital Corporation / 

  Corporation Liftcapital

  	
   

  	
  E, O, MVI

  MVI - 2003 Toyota 7FGCU25 Lift

  Truck VIN

  Material handling equipment together with all parts, attachments,
  accessories, additions, batteries, chargers, repair parts, and other
  equipment placed on or forming part of the goods described herein with any
  proceeds thereof and therefrom including, without limitation, all goods,
  securities, instruments, documents of title, chattel paper and intangibles
  (as defined in the Personal Property Security Act).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20040420 1948 1531 2618

  Amendment

  	
   

  	
  MBI Limited

  Smurfit - MBI

  	
   

  	
  “

  	
   

  	
  Amendment

  To add an additional debtor.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  601475292

  	
   

  	
  20031202 1704 1462 0437

  Reg. 3 years

  	
   

  	
  Smurfit-Stone Container

  Canada Inc.

  	
   

  	
  Ikon Office Solutions

  	
   

  	
  E, AS, DM

  AS = $10300

  DM - 01 DEC2006

  Ricoh Aficio 1027 copier with accessories

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  600853473

  	
   

  	
  20031106 1941 1531 1267

  Reg. 6 years

  	
   

  	
  Smurfit-MBI

  Smurfit-MBI (Different

  Address)

  MBI Limited

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  896642712

  	
   

  	
  20030723 1042 1529 7214

  Reg. 4 Years

  	
   

  	
  Smurfit-MBI

  MBI Limited 

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  894369042

  	
   

  	
  20030515 1405 1462 6588

  Reg. 3 years

  	
   

  	
  Emballages Smurfit-Stone

  Canada

  	
   

  	
  Ikon Office Solutions

  	
   

  	
  E, AS, DM

  AS = $11770

  DM - 15MAY2006

  Ricoh Aficio 1027 copier SN-

  J0221100992 with accessories

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  893549871

  	
   

  	
  20030422 1040 8077 2656

  Reg. 3 years

  	
   

  	
  Smurfit-Stone Container

  Canada Inc.

  Emballages Smurfit-Stone

  Canada

  	
   

  	
  Caterpillar Financial

  Services Limited

  	
   

  	
  E, O, MVI, NFMD

  MVI - 2003 Caterpillar GC55K-LP-

  STR VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  893550105

  	
   

  	
  20030422 1040 8077 2679

  Reg. 6 years

  	
   

  	
  Smurfit-Stone Container

  Canada Inc.

  	
   

  	
  Caterpillar Financial

  Services Limited

  	
   

  	
  E, O, MVI, NFMD

  MVI - 2003 Caterpillar GP30K-LP

  

 

 

	
   

  	
   

  	
  File No.

  	
   

  	
  Registration #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Emballages Smurfit-Stone

  Canada

  	
   

  	
   

  	
   

  	
  VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  895057479

  	
   

  	
  20030604 1653 7029 1521

  	
   

  	
  Image PAC Graphics A

  Division of Smurfit MBI

  Image PAC Graphics

  Smurfit MBI

  	
   

  	
  Partners Graphic Support

  Service Supply

  	
   

  	
  E, O

  1 - artworks power stepper, 1 - artworks engine
  driver for ESKO- graphics megasetter, 1-pentium computer S / N - TCS561 with
  all attachments, accessories and proceeds thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  891230769

  	
   

  	
  20030128 1341 8077 9362

  Reg. 5 years

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Creditwave Corporation

  	
   

  	
  E, A, O, NFMD

  (1) mag2 HD refurbished (S/ N#72795)
  (1) forty yard container (S/ N #72796) (1) ozone generator (S/
  N#690AT707 F7) (6) one yard self dumping hoppers

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  890751825

  	
   

  	
  20030110 1354 1862 8672

  Reg. 5 years

  	
   

  	
  Smurfit-Stone Container

  Canada Inc.

  Emballages Smurfit-Stone

  Canada

  Smurfit-Stone Container

  Canada Inc. / Emballages Smurfit-Stone Canada Inc.

  Emballages Smurfit-Stone Canada Inc./Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  BCC Equipment Leasing Corporation

  	
   

  	
  E, O

  Post model MX-4115 complete with 4-corner ACCU-Fold
  traymaking system leased pursuant to lease no. 30791-216

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  890251668

  	
   

  	
  20021219 1152 1715 0990

  Reg. 4 years

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Xerox Canada Ltd.

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  889957926

  	
   

  	
  20021210 1549 1715 0935

  Reg. 3 years

  	
   

  	
  Smurfit-Stone Container

  Canada Inc.

  	
   

  	
  Xerox Canada Ltd.

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  889494336

  	
   

  	
  20021125 1818 1531 7066

  Reg. 4 years

  	
   

  	
  Smurfit-MBI

  MBI Limited

  Smurfit-MBI

  (Different Address)

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  One Kyocera mita KM2530 digital copier S/ N
  AAH3018099 together with all goods and services, parts, attachments,
  accessories, additions, repair parts, substitutions and other equipment
  placed on or forming part of the goods described herein.  Proceeds - All present and after-acquired
  personal property that may be derived from the sale or other disposition of
  the collateral described above and any proceeds thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  889078086

  	
   

  	
  20021112 1038 1529 6261

  Reg. 6 years

  	
   

  	
  Smurfit-MBI

  MBI Limited

  Smurfit-MBI

  (Different Address)

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  885936573

  	
   

  	
  20020731 1825 1531 5788

  Reg. 5 years

  	
   

  	
  Smurfit-MBI

  MBI Limited

  Smurfit-MBI

  (Different Address)

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  One canon imagerunner 2200 copier, together with all
  goods and services, parts, attachments, accessories, additions, repair parts,
  substitutions and other equipment placed on or forming part of the 

  

 

 

	
   

  	
   

  	
  File No.

  	
   

  	
  Registration #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  goods described herein  Proceeds - All present and after-acquired
  personal property that may be derived from the sale or other disposition of
  the collateral described above and any proceeds thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  885936582

  	
   

  	
  20020731 1825 1531 5789

  Reg. 4 years

  	
   

  	
  Smurfit-MBI

  MBI Limited

  Smurfit-MBI

  (Different Address)

  	
   

  	
  “

  	
   

  	
  E, O

  One aficio fax/ copier, together with all goods and
  services, parts, attachments, accessories, additions, repair parts,
  substitutions and other equipment placed on or forming part of the goods
  described herein  Proceeds - All
  present and after-acquired personal property that may be derived from the
  sale or other disposition of the collateral described above and any proceeds
  thereof.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  884640942

  	
   

  	
  20020621 1821 1531 8473

  Reg. 4 years

  	
   

  	
  Smurfit-Stone Container

  Canada Inc. / Emballages Smurfit-Stone Canada Inc.

  Emballages Smurfit-Stone Canada Inc./ Smurfit-Stone
  Container Canada Inc.

  Smurfit-Stone Container

  Canada Inc.

  Emballages Smurfit-Stone

  Canada

  	
   

  	
  John Deere Limited

  	
   

  	
  E, O, MVI

  MVI - 2002 John Deere 1050C

  Crawler Dozer VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  884640951

  	
   

  	
  20020621 1821 1531 8474

  Reg. 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  E, O, MVI

  MVI - 2002 John Deere 744H

  Loader VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  884640969

  	
   

  	
  20020621 1821 1531 8475

  Reg. 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  E, O, MVI

  MVI - 2002 John Deere 644H 4WD

  Loader VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25.

  	
   

  	
  884640978

  	
   

  	
  20020621 1821 1531 8476

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  E, O, MVI

  MVI - 2002 John Deere 744H 4WD

  Loader VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  844640987

  	
   

  	
  20020621 1821 1531 8477

  Reg. 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  E, O, MVI

  MVI - 2002 John Deere 6X4 Diesel

  Gator VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  844640996

  	
   

  	
  20020621 1821 1531 8478

  Reg. 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  E, O, MVI

  MVI - 2002 John Deere 6X4 Diesel

  Gator VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  884641005

  	
   

  	
  20020621 1821 1531 8479

  Reg. 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  “

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
  882947583

  	
   

  	
  20020515 0817 1532 3662

  REg. 6 years

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  Unspecified

  

 

 

	
   

  	
   

  	
  File
  No.

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20020731 1825 1531 7084

  	
   

  	
  Smurfit-MBI

  Smurfit-MBI

  (Different Address)

  MBI Limited

  	
   

  	
  “

  	
   

  	
  Amendment

  Add 2 additional debtors

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30.

  	
   

  	
  883008585

  	
   

  	
  20020515 0820 1533 3091

  Reg. 5 years

  	
   

  	
  Smurfit-MBI

  Smurfit-MBI

  (Different Address)

  	
   

  	
  “

  	
   

  	
  E, O

  1 new richo aficio, goods and services as further
  detailed under lease, including all attachments, additions, accessories,
  repairs and replacements and proceeds derived therefrom.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
  883008612

  	
   

  	
  20020515 0820 1533 3094

  Reg. 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  E, O

  2 new photocopiers, goods and services as further
  detailed under lease, including all attachments, additions, accessories,
  repairs, replacements, substitutions and proceeds derived therefrom.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32.

  	
   

  	
  881549289

  	
   

  	
  20020510 1028 1532 4390

  Reg. 6 years

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  Caterpillar Financial Services Ltd.

  	
   

  	
  E, O, MVI

  MVI - 2001 Caterpillar DP30K VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
  881824716

  	
   

  	
  20020510 1541 1532 9064

  Reg. 6 years

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  Emballages Smurfit-Stone Canada Inc.

  Smurfit-Stone Container Canada Inc. (Different
  Address)

  Emballages Smurfit-Stone Canada Inc. . (Different
  Address)

  	
   

  	
  Caterpillar Financial Services Ltd.

  	
   

  	
  E, O, MVI

  MVI - 2001 Caterpillar GC-55K-LPS-STR VIN

  MVI - 2001 Caterpillar GC-55K-LPS-STR VIN

  C/W auramo paper roll clamp model RA-420NIP, S/ N
  175211

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
  880933104

  	
   

  	
  20020288 1444 1616 9475

  Reg. 4 years

  	
   

  	
  MacMillan Bathurst Inc.

  	
   

  	
  Tyco Capital (Canada) Inc.

  	
   

  	
  I, E, A, O, MVI

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20040210 1646 1616 7305

  Amendment

  	
   

  	
  MacMillan Bathurst Inc.

  Smurfit-MBI

  	
   

  	
  CIT Financial Ltd.

  	
   

  	
  Amendment

  To amend the debtor name on line 06 and secured
  party name on line 08 and for registration no. 20020228 1444 1616 9475

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
  879997752

  	
   

  	
  20020123 1806 1531 7757

  Reg. 6 years

  	
   

  	
  Smurfit-MBI

  Smurfit-MBI

  (Different Address)

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36.

  	
   

  	
  879187575

  	
   

  	
  20010913 1040 1529 7634

  Reg. 6 years

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  Caterpillar Financial Services Ltd.

  	
   

  	
  E, O, MVI

  MVI - 2001 Caterpillar DP30K VIN

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20010914 1803 1531 0831

  Amendment

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  	
   

  	
  “

  	
   

  	
  Amendment

  Add new debtor

  

 

 

	
   

  	
   

  	
  File
  No.

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  Emballages Smurfit-Stone Canada Inc.

  	
   

  	
   

  	
   

  	
  Add new debtor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
  871112079

  	
   

  	
  20010402 1750 1531 2379

  Reg. 5 years

  	
   

  	
  Smurfit-MBI

  Smurfit-MBI

  (Different Address)

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  One (1) aficio 551 photocopier, and two
  (2) aficio 220 photocopiers complete with all accessories and
  attachments.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38.

  	
   

  	
  87098 1255

  	
   

  	
  20010328 1132 1715 7173

  Reg. 5 years

  	
   

  	
  AT Plastics Inc.

  	
   

  	
  Xerox Canada Ltd.

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20020117 1211 1715 8996

  Transfer

  	
   

  	
  Transferor: At Plastics Inc.

  Transferee: Smurfit-Stone Container Canada Inc.

  	
   

  	
  “

  	
   

  	
  Transfer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39.

  	
   

  	
  870821082

  	
   

  	
  20010322 1447 1530 7773

  Reg. 6 years

  	
   

  	
  Smurfit - MBI

  Smurfit - MBI

  (Different Address)

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  One Kongsberg CN1930PL sample table complete with
  accessories and attachments.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40.

  	
   

  	
  870637563

  	
   

  	
  20010315 1712 1462 3020

  Reg. 5 years

  	
   

  	
  Image Pac Graphics

  	
   

  	
  MacDermid Graphic Arts

  	
   

  	
  E, NFMD

  AS - $26,930.00

  FL 3048 Plate Finishing Unit

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41.

  	
   

  	
  867434409

  	
   

  	
  20001109 1808 1531 7168

  Reg. 6 years

  	
   

  	
  Smurfit-MBI

  Smurfit - MBI

  (Different Address)

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42.

  	
   

  	
  867434418

  	
   

  	
  20001109 1808 1531 7169

  REg. 6 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  “

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43.

  	
   

  	
  864048618

  	
   

  	
  20000721 1438 1530 5528

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  “

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44.

  	
   

  	
  864056691

  	
   

  	
  20000721 1814 1531 0964

  Reg. 5 years

  	
   

  	
  Smurfit - MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45.

  	
   

  	
  867258126

  	
   

  	
  20001103 1614 1254 8126

  Reg. 5 years

  	
   

  	
  Consolidated Papers, Inc.

  	
   

  	
  General Electric Capital Vehicle and Equipment Leasing Inc.

  	
   

  	
  E, O, MVI

  All present and after aquired motor vehicles,
  trailer, tractors, van and buses under lease and proceeds thereof (Fleet
  #5457) and subsequent

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46.

  	
   

  	
  842047659

  	
   

  	
  19980623 1832 1531 1232

  Reg. 5 years

  	
   

  	
  Cartons St-Laurent Inc.

  	
   

  	
  PHH Vehicle Management Services Inc.

  	
   

  	
  E, O, MVI

  All present and future motor vehicles (including,
  without limitation, passenger automobiles, trucks, truck tractors, truck
  trailers, truck chassis, or truck bodies), automotive equipment (including,
  without limitation, trailers, boxes and refrigeration units), and
  materials-handling equipment leased from time to time by the secured party to
  the debtor, together with all present and future attachments, accessions,
  appurtenances, accessories and replacement parts, and all proceeds of or
  relating to any of the 

  

 

 

	
   

  	
   

  	
  File
  No.

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  foregoing.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20030526 1510 1530 4490

  	
   

  	
  Cartons St.-Laurent Inc.

  	
   

  	
  “

  	
   

  	
  Renewal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20040322 1052 1529 4111

  Amendment

  	
   

  	
  Cartons St.-Laurent Inc.

  	
   

  	
  “

  	
   

  	
  Amendment

  Amend secured party address to read 2233 Argentia
  Rd. Suite 400, Mississauga,OH, L5N 2X7

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47.

  	
   

  	
  857291391

  	
   

  	
  19991202 1541 1715 4483

  	
   

  	
  St. Laurent Paperboard Inc.

  	
   

  	
  Xerox Canada Ltd.

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  48.

  	
   

  	
  853147512

  	
   

  	
  19990719 1438 1530 2311

  Reg. 6 years

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  49.

  	
   

  	
  850676634

  	
   

  	
  1999905004 1433 1530 1470

  Reg. 6 years

  	
   

  	
  MacMillan Bathurst

  	
   

  	
  “

  	
   

  	
  E, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19990715 1840 1531 5451

  Amendment

  	
   

  	
  MacMillan Bathurst  Smurfit-MBI

  	
   

  	
  “

  	
   

  	
  Amendment

  Change business debtor’s name

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50.

  	
   

  	
  849809655

  	
   

  	
  19990407 0954 1146 4545

  Reg. 6 years

  	
   

  	
  St. Laurent Paperboard Inc.

  	
   

  	
  OE Financial Services Inc.

  	
   

  	
  E, DM

  DM - 07 APR 2005

  Canon equipment and accessories

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20010118 1120 0024 6205

  Amendment

  	
   

  	
  St. Laurent Paperboard Inc.  Smurfit Stone
  Container Canada Inc.

  	
   

  	
  “

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  51.

  	
   

  	
  818017893

  	
   

  	
  19951114 1602 1254 3532

  Reg. 10 years

  	
   

  	
  Cartons St. Laurent Inc.

  	
   

  	
  General Electric Capital Canada Inc.

  	
   

  	
  E, O, MVI

  All present and after acquired motor vehicles,
  trailers, tractors, vans, and buses under lease and proceeds thereof. Lease
  504163.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52.

  	
   

  	
  806716305

  	
   

  	
  19940420 2204 1513 0909

  Reg. 3 years

  	
   

  	
  Macmillan Bathurst

  	
   

  	
  PHH Canada Inc.

  	
   

  	
  E, O, MVI

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19970307 1912 1529 2373

  Renewal - 3 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  Renewal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19980910 1429 1530 2893

  Amendment

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  Amendment

  Add general collateral description to registration.

  All present and future mtor vehicles (including,
  without limitation, passenger automobiles, trucks, truck tractors, truck
  trailers, truck chassis, or truck bodies), automotive equipment (including,
  without limitation, trailers, boxes and refrigeration units), and
  materials-handling equipment leased from time to time by the secured party to
  the debtor, together with all present and future attachments, accessions,
  appurtenances, accessories and replacement parts, and all proceeds of or
  relating to any of the foregoing.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19990713 1440 1530 6138

  	
   

  	
  Macmillan Bathurst  

  	
   

  	
  “

  	
   

  	
  Amendment  

  

 

 

	
   

  	
   

  	
  File
  No.

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Amendment

  	
   

  	
  Smurfit-MBI

  	
   

  	
   

  	
   

  	
  Adding debtor to registration.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19991130 1834 1531 8419

  Amendment

  	
   

  	
  Macmillan Bathurst

  Macmillan Bathurst Inc.

  	
   

  	
  “

  	
   

  	
  Amendment

  To include additional name on registration.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20000302 1755 1531 8289

  Renewal - 5 years

  	
   

  	
  Macmillan Bathurst

  	
   

  	
  “

  	
   

  	
  Renewal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20030721 1055 1529 5177

  Amendment

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  Amend secured party to read 2233 Argentia Rd., Suite 400
  Mississauga, ON L5N 2X7

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  53.

  	
   

  	
  435470994

  	
   

  	
  19921022 1416 0043 7233

  Reg. 6 years

  	
   

  	
  Macmillan Bathurst

  	
   

  	
  Royal Bank Leasing Inc.

  	
   

  	
  E

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19970520 1842 1529 4081

  Amendment

  	
   

  	
  Macmillan Bathurst

  	
   

  	
  Royal Bank of Canada

  	
   

  	
  Amendment

  Amend secured party on page 1, line 8 of
  registration number 921022141600437233.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19980917 1800 1531 3592

  Renewal - 5 years

  	
   

  	
  Macmillan Bathurst

  	
   

  	
  “

  	
   

  	
  Renewal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19990715 1840 1531 5449

  	
   

  	
  Macmillan Bathurst

  Smurfit-MBI

  	
   

  	
  “

  	
   

  	
  Amendment

  Change business debtor’s name

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20030908 1934 1531 4000

  Renewal for 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  Renewal for 5 years

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  54.

  	
   

  	
  802449828

  	
   

  	
  19920923 2208 1513 2487

  Reg. 3 years

  	
   

  	
  Macmillan Bathurst Inc.

  	
   

  	
  PHH Canada Inc.

  	
   

  	
  E, O, MVI

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19950921 1933 1529 9461

  Renewal - 3 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  Renewal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19980806 1029 1529 5716

  Renewal - 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  Renewal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19980910 1035 1529 0453

  Amendment

  	
   

  	
  Macmillan Bathurst

  	
   

  	
  “

  	
   

  	
  Amendment

  

  Debtor’s name has changed on registration no.
  920923220815132487. Add general collateral description to registration.

  

  All present and future motor vehicles (including,
  without limitation, passenger automobiles, trucks, truck tractors, truck
  trailers, truck chassis, or truck bodies), automotive equipment (including,
  without limitation, trailers, boxes and refrigeration units), and
  materials-handling equipment leased from time to time by the secured party to
  the debtor, together with all present and future attachments, accessions,
  appurtenances, accessories and replacement parts, and all proceeds of or
  relating to any of the foregoing.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  19990713 1440 1530 6137  

  	
   

  	
  Macmillan Bathurst  

  	
   

  	
  “

  	
   

  	
  Amendment  

  

 

 

	
   

  	
   

  	
  File
  No.

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Party

  	
   

  	
  Collateral/Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Amendment

  	
   

  	
  Smurfit-MBI

  	
   

  	
   

  	
   

  	
  Adding debtor to registration.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20030729 1032 1529 0976

  Amendment

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  Amend secured party to read 2233 Argentia Rd., Suite 400,
  Mississauga, ON L5N 2X7

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “

  	
   

  	
  20030808 1047 1529 8976

  Renewal - 5 years

  	
   

  	
  “

  	
   

  	
  “

  	
   

  	
  Renewal

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  55.

  	
   

  	
  005540022

  	
   

  	
  19900427 1516 0043 0668

  	
   

  	
  Stone-Consolidated Inc.

  	
   

  	
  Bankers Truck [sic] Company, As Trust

  	
   

  	
  A, O

  Unspecified

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56.

  	
   

  	
  005540085

  	
   

  	
  19900427 1516 0043 0667

  Reg. 25 years

  	
   

  	
  Stone-Consolidated Inc.

  	
   

  	
  Bankers Trust Company, As Agent

  	
   

  	
  A, O

  Unspecified

  

 

 

QUEBEC
SEARCH RESULTS CHART

 

Register
of Personal and Movable Real Rights

 

	
  1.

  	
  A.

  	
  Name
  Searched:

  	
  Smurfit-MBI

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Currency
  of Search:

  	
  1995-01-03

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration and Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  99-0130509-0001

  

  1999-08-17      10:32 a.m.

  	
   

  	
  Rights Resulting from a Lease

  	
   

  	
  Bobst Canada Inc.  

  (Lessor) 

  (Locateur)

  	
   

  	
  N/A

  	
   

  	
  ONE POST SX-1000 STACKER BUNDLER BEARING SERIAL NO.2306-018-02 WITH
  MOSCA STRAPPER, MODEL 1650.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  1999-07-12

  	
   

  	
  (Droits Resultant d’un Bail)

  	
   

  	
  Smurfit-MBI 

  (Lessee) 

  (Locataire)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration and Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0150671-0003

  

  2001-05-07       12:07 p.m.

  	
   

  	
  Rights Resulting from a Lease

  	
   

  	
  Xerox Canada Limited

  (Lessor) 

  (Locateur)

  	
   

  	
  2006-05-12

  	
   

  	
  ALL PRESENT AND AFTER ACQUIRED XEROX EQUIPMENT AND GOODS INCLUDING
  SPLASH 0620 AND DC12 DC IOT

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  N/A

  	
   

  	
  (Droits Resultant d’un Bail)

  	
   

  	
  Smurfit-MBI  (Image Pac  

  Graphiques)  

  (Lessee) 

  (Locataire)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration and Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0159449-001

  

  2001-05-11        12:38 p.m.

  	
   

  	
  Rights Resulting from a Lease

  	
   

  	
  Xerox Canada Limited

  (Lessor) 

  (Locateur)

  	
   

  	
  2006-05-12

  	
   

  	
  ALL PRESENT AND AFTER ACQUIRED XEROX EQUIPMENT AND GOODS OR ANY
  AFFILIATE THEREOF.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act: N/A

  	
   

  	
  (Droits Resultant d’un Bail)

  	
   

  	
  Smurfit-MBI

  (Lessee)

  (Locataire)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration and Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0115287-0001

  

  2002-03-26        9:00 a.m.

  	
   

  	
  Rights Resulting from a Lease

  	
   

  	
  Bobst Canada Inc.

  (Lessor)

  (Locateur)

  	
   

  	
  2012-03-25

  	
   

  	
  Please see next page “Property.”

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-03-13

  	
   

  	
  (Droits Resultant d’un Bail)

  	
   

  	
  Smurfit-MBI

  (Lessee)

  (Locataire)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PROPERTY

 

(Registration Number 02-0115287-0001)

 

One (1) Martin flexographic print unit (3rd colour), to be installed on existing Martin
Midline 924, complete with standard equipment and the equipment described
below.

 

One (1) C-1 Flexographic Print Unit (3rd colour)

 

One (1) C-2a Matthews main groove

 

One (1) C-2b Matthews intermediate groove at 120
degrees

 

One (1) C-2c Matthews intermediate groove at 270
degrees

 

One (1) C-4 Chamber blade ink metering system
with laser engraved ceramic anilox roll

 

One (1) C-7 Vacuum sheet transport system

 

 

	
  Registration and Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0030761-0003

  

  2004-01-21    12:29 p.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  National Leasing Group Inc.

  (Lessor)

  (Credit-Bailleur)

  	
   

  	
  2008-02-21

  	
   

  	
  Please see next page “Property.”

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This Rights of Ownership of the Lessor is subject to
  the following registration:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Assignment of Rights # 04-0412259-0001 (see below)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2004-01-20

  	
   

  	
  (Droits  de
  Propriete du Credit-Bailleur)

  	
   

  	
  Smurfit-MTI,

  SENC

  (Lessee)

  (Credit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration and Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0412259-0001

  

  2004-07-13     1:46 p.m.

  	
   

  	
  Assignment of Rights

  	
   

  	
  National Leasing Group Inc. (Assignor)

  

  

  SOUND Trust (Assignee)

  	
   

  	
  N/A

  	
   

  	
  All of the Assignor’s rights which have been registered at the
  Register of Personal and Movable Real Rights under the registration numbers
  listed in this registration under the heading “Référence à l’inscription
  visée.”

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Computershare Trust Company of Canada acts as Trustee for SOUND Trust.

  

  This Assignment of Rights relates to, amont others, the following
  registration:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2004-04-27

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Computershare Trust Company of Canada (Trustee)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Rights of Ownership of the Lessor #04-0030761-0003 (see above)

  	
   

  

 

 

	
  Registration and Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0487787-0012

  

  2004-08-19

  	
   

  	
  Rights Resulting from a Lease

  	
   

  	
  Cbse Capital Inc.

  (Lessor)

  (Locateur)

  	
   

  	
  2009-08-18

  	
   

  	
  Please see next page “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Lease term is 42 months with 14 payments of $4608
  plus applicable taxes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2004-08-18

  	
   

  	
  (Droits Résultant d’un Bail)

  	
   

  	
  Smurfit MBI

  (Lessee)

  (Locataire)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PROPERTY

 

(Registration Number 04-0487787-0012)

 

1 - CANON IRNW 400 PLUS ACCESSORIES

1 - CANON IRNW 550 PLUS ACCESSORIES

1 - CANON IMAGERUNNER 3300 COPIER PLUS ACCESSORIES

4 - CANON IMAGERUNNER 1330 COPIER PLUS ACCESSORIES

1 - CANON IMAGERUNNER 400 PLUS ACCESSORIES

 

WITH ALL ATTACHMENTS, ACCESSORIES AND PROCEEDS THEREOF
INCLUDING INSURANCE PROCEEDS AND INDEMNITIES

 

 

	
  2.

  	
  A.

  	
  Names Searched:

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
  MacMillan
  Bathurst Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Currency of
  Search:

  	
  1995-01-03

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration 
  Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  99-0209806-0001

   

  1999-12-01  
  12:52 p.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  PHH Vehicle Management Services Inc.

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2009-11-30

  	
   

  	
  Please
  see next page “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Please see next
  pages “Other Particulars”.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  1990-12-30

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-MBI

  (Lessee)

  (Crédit-Preneur)

   

  MacMillan Bathurst Inc.

  (Lessee)

  (Crédit-Preneur)

   

  MacMillan Bathurst

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PROPERTY

 

(Registration
Number 99-0209806-0001)

All
present and future motor vehicles (including, without limitation, passenger
automobiles, trucks, truck tractors, truck trailers, truck chassis, or truck
bodies), automotive equipment (including, without limitation, trailers, boxes
and refrigeration units), and materials-handling equipment leased from time to
time by the Lessor to the Lessee, together with all present and future
attachments, accessions, appurtenances, accessories and replacement parts, and
all proceeds of or relating to any of the foregoing.

 

 

OTHER
PARTICULARS

 

(Registration
Number 99-0209806-0001)

 

This registration
is a Global registration pursuant to Article 2961.1 of the Civil Code of
Quebec.

 

REF:
(0593 / ONQPH4F68-1 / 67657)

 

This
application was prepared in respect of the “PHH Operating Master Lease”.

 

This Rights
of Ownership of the Lessor is subject to various registrations.

 

 

	
  3.

  	
  A.

  	
  Names Searched:

  	
  MBI Limited

  
	
   

  	
   

  	
   

  	
  MBI Limitée

  
	
   

  	
   

  	
   

  	
  Image Pac Graphics (a Div. of MacMillan
  Bathurst)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Currency of
  Search:

  	
  1995-01-03

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration 
  Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0341677-0001

   

  2000-11-09  
  9:08 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2005-04-30

  	
   

  	
  Please
  see next pages “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2000-10-30

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PARTIES

 

(Registration
Number 00-0341677-0001)

 

Financial Services Image Inc. - (Lessor) -
(Crédit-Bailleur)

 

MBI Limited - (Lessee) - (Crédit-Preneur)

 

MBI Limitée - (Lessee) - (Crédit-Preneur)

 

MBI Limited, acting under the business name “Image
Pac Graphics (a Div. Of MacMillan Bathurst” - (Lessee)
- (Crédit-Preneur)

 

MBI Limitée, acting under the business name “Image
Pac Graphics (a Div. Of MacMillan Bathurst” - (Lessee)
- (Crédit-Preneur)

 

 

PROPERTY

 

(Registration
Number 00-0341677-0001)

 

THE
EQUIPMENT DESCRIBED HEREAFTER CAN BE SITUATED AT 1035, HODGE, SAINT-LAURENT
(QUEBEC) OR AT ANY OTHER LOCATION :

 

1  IR550, N/S HNT15730 + SADDLE FINISHER D2, N/S
NLJ07836

1  COVER INVERSION, N/S XBB05342 + 1 PAPER DECK
C1, N/S ZQZ04528

 

 

	
  Registration Number

  And 

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0341677-0002

   

  2000-11-09  
  9:08 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2005-04-30

  	
   

  	
  Please
  see next pages “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2000-10-30

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PARTIES

 

(Registration
Number 00-0341677-0002)

 

Financial Services Image Inc. - (Lessor) -
(Crédit-Bailleur)

 

MBI Limited - (Lessee) - (Crédit-Preneur)

 

MBI Limitée - (Lessee) - (Crédit-Preneur)

 

MBI Limited, acting under the business name “Image
Pac Graphics (a Div. Of MacMillan Bathurst” - (Lessee)
- (Crédit-Preneur)

 

MBI Limitée, acting under the business name “Image
Pac Graphics (a Div. Of MacMillan Bathurst” - (Lessee)
- (Crédit-Preneur)

 

 

PROPERTY

 

(Registration
Number 00-0341677-0002)

 

THE
EQUIPMENT DESCRIBED HEREAFTER CAN BE SITUATED AT 1035, HODGE, SAINT-LAURENT
(QUEBEC) OR AT ANY OTHER LOCATION :

 

1  IR400E, N/S NNU01489 + DADF-A + MULI BOARD

1  G3 FAX BORD + SURGE PROTECTOR

1  CASSETTE FEED UNIT, 2 CASSETTES, N/S ZSH83281

1  FINISHER C1 + E COPY SCSU STATION, N/S
ZSY54465

1  PAPER DECK C, N/S ZSL04284

 

 

	
  Registration 
  Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0341677-0003

   

  2000-11-09  
  9:08 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2005-04-30

  	
   

  	
  Please
  see next pages “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2000-10-30

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PARTIES

 

(Registration
Number 00-0341677-0003)

Financial Services Image Inc. - (Lessor) -
(Crédit-Bailleur)

 

MBI Limited - (Lessee) - (Crédit-Preneur)

 

MBI Limitée - (Lessee) - (Crédit-Preneur)

 

MBI Limited, acting under the business name “Image
Pac Graphics (a Div. Of MacMillan Bathurst” - (Lessee)
- (Crédit-Preneur)

 

MBI Limitée, acting under the business name “Image
Pac Graphics (a Div. Of MacMillan Bathurst” - (Lessee)
- (Crédit-Preneur)

 

 

PROPERTY

(Registration
Number 00-0341677-0003)

 

THE EQUIPMENT DESCRIBED
HEREAFTER CAN BE SITUATED AT 1035, HODGE, SAINT-LAURENT (QUEBEC) OR AT ANY
OTHER LOCATION :

NP-6085 NF D01042

NP-6012 NHU12079

NP-6030 NRD03154

NP-6230 NGM03414

NP-6050 NDR37090

NP-6545 + FAX

 

	
  6.

  	
   

  	
  A.

  	
   

  	
  Names Searched:

  	
   

  	
  MacMillan
  Bathurst

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
   

  	
  Currency of
  Search:

  	
   

  	
  1995-01-03

  	
   

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004-10-05

  	
   

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0278486-0001

   

  2000-09-18   9:00 a.m.

  	
   

  	
  Rights or Ownership of the Lessor

   

  	
   

  	
  Hewlett-Packard (Canada) Ltd.

  (Lessor)

  (Crédit-Bailleur)

   

  	
   

  	
  2003-06-01

   

  

  (2004-05-29)

  	
   

  	
  Please see next
  page “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration
  has been requested pursuant to the dispositions of the transitory rules.

   

  REF: (3792-12 /
  ONQHP1F477-1 / 824928)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  1998-06-01

  	
   

  	
  (Droits de Propriété du
  Crédit-Bailleur)

  	
   

  	
  MacMillan

  Bathurst

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

   

   

  This Rights
  of Ownership of the Lessor is subject to the following registration:

   

  Renewal of the Publicity of a
  Right

  # 03-0270274-0003

  (see below)

  	
   

  

 

 

PROPERTY

 

(Registration Number 00-0278486-0001)

 

LE MATERIEL DECRIT DANS LE CONTRAT
DE LOCATION MENTIONNE AUX PRESENTES, LOUE PAR LE CREANCIER GARANTI AU DEBITEUR,
ET TOUT PRODUIT DE CELUI-CI, DE MEME QUE TOUS LES ACCESSOIRES, PIECES DE
RECHANGE, EQUIPEMENTS LIES OU CONNECTES A CE MATERIEL, ET TOUS LES ELEMENTS DE
SUBSTITUTION OU DE REMPLACEMENT, A L’EXCEPTION DES LOGICIELS CONCEDES SOUS
LICENCE QUI PEUVENT ACCOMPAGNER CE MATERIEL, DE MEME QUE TOUS LES DROITS,
POUVOIRS, PRIVILEGES ET RECOURS DU DEBITEUR A LEUR EGARD. LA PRESENTE
INSCRIPTION D’UN SEUL CONTRAT DE LOCATION MENTIONNE AUX PRESENTES COMPREND TOUS
LES PRODUITS ENUMERES DANS LA LISTE DE MATERIEL. LA DOCUMENTATION SIGNEE EST
CONSIGNEE AU DOSSIER.

 

 

	
  Registration  Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0270274-0003

   

  2003-05-29   1:07 p.m.

  	
   

  	
  Renewal of the Publicity of a Right

   

  	
   

  	
  Hewlett-Packard (Canada) Ltd.

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2004-05-29

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (3792-12 / ONQHP1C477-2 / 2255807)

   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Renouvellement de la
  Publicité d’un Droit)

  	
   

  	
  MacMillan

  Bathurst

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  This Renewal
  of the Publicity of a Right relates to the following registration:

   

  Rights of Ownership of the
  Lessor

  # 00-0278486-0001

  (see above)

  	
   

  

 

 

	
  7.

  	
   

  	
  A.

  	
   

  	
  Names Searched:

  	
   

  	
  MacMillan Bathurst Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Image Pac
  Graphiques

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
   

  	
  Currency of
  Search:

  	
   

  	
  1995-01-03

  	
   

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004-10-05

  	
   

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0046997-0015

   

  2000-02-28   12:29 p.m.

  	
   

  	
  Rights Resulting from a Lease

  	
   

  	
  Canvinco

  Financial

  Corporation

  (Lessor)

  (Locateur)

  	
   

  	
  2009-12-31

  	
   

  	
  SYSTEME CHEMPACT HUNT
  20 LITRES - N/S: 201025-201010, TAG NUMBER 48912

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration
  has been requested pursuant to the dispositions of the transitory rules.

   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  1998-08-26

  	
   

  	
  (Droits Résultant d’un Bail)

  	
   

  	
  MacMillan

  Bathurst

  (Lessee)

  (Locataire)

   

  Image Pac Graphique

  Division of

  MacMillan

  Bathurst 

  (Lessee)

  (Locataire)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  This Rights
  Resulting from a Lease is subject to the following registration:

   

  Assignment of Rights

  # 00-0054215-0001

  (see below)

  	
   

  

 

 

	
  Registration Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0054215-0001

   

  2000-03-07   1:12 p.m.

  

  

  

  

  Date of Constituting Act:

  1999-11-30

  	
   

  	
  Assignment of Rights

  	
   

  	
  Canvinco

  Financial Corporation

  (Assignor)

  

  

  

  Fuji Graphic

  Systems Canada

  Inc.

  (Assignee)

  	
   

  	
  N/A

  	
   

  	
  Al the rights relating
  to the leases published at the Registre des Droits Personnels et Réels Mobiliers
  under the inscription numbers listed in this registration.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This Assignment
  of Rights relates to, among others, the following registration:

   

  Rights Resulting from a Lease

  # 00-0046997-0015

  (see above)

  	
   

  

 

 

	
  8.

  	
   

  	
  A.

  	
   

  	
  Names Searched:

  	
   

  	
  Image Pac
  Graphiques

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
   

  	
  Currency of
  Search:

  	
   

  	
  1995-01-03

  	
   

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004-10-05

  	
   

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0159449-0002

   

  2001-05-11  
  12:38 p.m.

  

  

  

  

  

  Date of Constituting Act:

  N/A

   

  	
   

  	
  Rights Resulting from a Lease

  

  

  

  

  

  

  (Droits Résultant d’un Bail)

  	
   

  	
  Xerox Canada Limited

  (Lessor)

  (Locateur)

  

  

  

  

  Image Pac Graphiques

  (Lessee)

  (Locataire)

  	
   

  	
  2006-05-12

  	
   

  	
  ALL PRESENT AND AFTER
  ACQUIRED XEROX EQUIPMENT AND GOODS OR ANY AFFILIATE THEREOF.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

 

	
  9.

  	
   

  	
  A.

  	
   

  	
  Names Searched:

  	
   

  	
  Image Pac
  Graphics (a Div. of MacMillan Bathurst)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
   

  	
  Currency of
  Search:

  	
   

  	
  1995-01-03

  	
   

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004-10-05

  	
   

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  96-0099906-0001

   

  1996-08-15   9:00 a.m.

  

  

  

  

  

  

  Date of Constituting Act:

  1996-07-08

  	
   

  	
  Conventional Movable Hypothec
  without Delivery

  	
   

  	
  Les Propriétés Nalcan Ltée

  (Holder)

  

  

  

  

  

  

  Image Pac

  Graphics

  (Grantor)

  	
   

  	
  2006-08-08

  	
   

  	
  TOUS LES BIENS DE TEMPS À AUTRE DANS LES LOCAUX DU LOCATAIRE SITUÉS AU
  5000 JEAN-TALON, MONTRÉAL, QUÉBEC.

  	
   

  	
  $14,000.00

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

 

	
  10.

  	
   

  	
  A.

  	
   

  	
  Names Searched:

  	
   

  	
  Image Pac
  Graphiques

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Smurfit-Stone
  Container Canada Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
   

  	
  Currency of
  Search:

  	
   

  	
  1995-01-03

  	
   

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004-10-05

  	
   

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  And

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  And

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0577203-0001

   

  2004-10-04   2:55 p.m.

  

  

  

  

  

  

  Date of Constituting Act:

  2004-09-29

  	
   

  	
  Rights of Ownership of the
  Lessor

  

  

  

  

  

  

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Les Services

  Financiers

  Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  

  

  

  Smurfit-Stone

  Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  

  Image Pac

  Graphioques

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2014-09-29

  	
   

  	
  2004 CATERPILLAR LIFT
  TRUCK MODEL EP20K S/N ETB5A50435 C/W: BATTERIES

  S/N E29110, E29111,
  E29112 AND CHARGER S/N 032028.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

 

	
  11.

  	
   

  	
  A.

  	
   

  	
  Name Searched:

  	
   

  	
  Smurfit-Stone
  Container Canada Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Emballages
  Smurfit-Stone Canada Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
   

  	
  Currency of
  Search:

  	
   

  	
  1995-01-03

  	
   

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2004-10-05

  	
   

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration

  Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date Registration Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest

  Rate

  	
   

  	
  Pre-1994

  Security Instrument

  	
   

  	
  Other

  Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0305577-0010

   

  2001-08-23 
  10:45 a.m.

   

   

   

   

   

   

  

  Date of Constituting Act:

  N/A

   

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

   

   

  

  (Droits Résultant d’un Bail)

  	
   

  	
  Praxair Canada

  Inc.

  (Lessor)

  (Locateur)

   

   

   

   

   

  

  Smurfit-Stone Containers Canada Inc. /

  Emballages

  Smurfit-Stone

  Canada Inc.

  (Lessee)

  (Locataire)

  	
   

  	
  2011-08-23

  	
   

  	
  All present and future
  movable property of any nature and wherever located, including without
  limitation all bulk cryogenic storage tanks used for the storage, filling and
  delivery of industrial and medical gases including, without limitation;
  argon, carbon dioxide, nitrogen, nitrous oxide and oxygen; any cryogenic
  freezer; and any and all related equipment, accessories, parts, components
  and attachments thereof.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration is a “Global”
  registration pursuant to article 2961.1 of the Civil Code of Quebec.

  	
   

  

 

 

	
  Registration

  Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of

  Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases

  to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest

  Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other

  Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0309883-0001

   

  2001-08-27  12:26 p.m.

  	
   

  	
  Rights of Ownership of the
  Lessor

  	
   

  	
  Caterpillar

  Financial

  Services Limited

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2011-08-10

  	
   

  	
  2001 CATERPILLAR TRACK
  TYPE TRACTOR MODEL D8R S/N CAT00D8RK6YZ00613.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF: (05-20238 /
  ONQCF1F2250-1 / 1311810).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  Date of Constituting Act:

  2001-08-10

  	
   

  	
  (Droits de Propriété du
  Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone

  Container

  Canada Inc. 

  (Lessee)

  (Crédit-Preneur)

   

  Emballages

  Smurfit-Stone

  Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of

  Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration Ceases

  to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest

  Rate

  	
   

  	
  Pre-1994

  Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0469916-0002

   

  2001-12-17   2:43 p.m.

  

  

  

  Date of Constituting Act:

  2001-12-14

  	
   

  	
  Rights of Ownership of the
  Lessor

  

  

  

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Caterpillar Financial Services Limited

  (Lessor)

  (Crédit-Bailleur)

  

  Smurfit-Stone

  Container Canada

  Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages

  Smurfit-Stone

  Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2011-12-14

  	
   

  	
  2001 CATERPILLAR TRACK
  TYPE TRACTOR MODEL D7R XR DS S/N CAT00D7RL2EN01267 C/W CRAIG BLADE
  S/N T1090406.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF: (05-21393 /
  ONQCF1F2492-1 / 1462940)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0025684-0009

  

  2002-01-22   2:51 p.m.  

  	
   

  	
  Rights of Ownership of the
  Lessor 

  	
   

  	
  Minolta (Montreal) Inc.

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2007-01-16

  	
   

  	
  1-COPIEUR MINOLTA
  DIGITAL DI-550

   

  1-CONTROLLEUR
  D’IMPRESSION PI5501

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Lease term is
  60 months and the quarterly lease payment is $3897.00 plus applicable
  taxes.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act: 

  2001-12-27

  	
   

  	
   

  (Droits de Propriété du
  Crédit-Bailleur)

  	
   

  	
   

  Smurfit-Stone Container
  Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
  WITH ALL ATTACHMENTS,
  ACCESSORIES AND PROCEEDS THEREOF INCLUDING INSURANCE PROCEEDS AND INDEMNITIES.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number 

  and 

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security 

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0102806-0001 

  

  2002-03-18   9:00 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Caterpillar Financial Services Limited (Lessor) 

  (Crédit-Bailleur)

  	
   

  	
  2012-03-06

  	
   

  	
  2001
  CHARIOT ELEVATEUR CATERPILLAR MODELE GC55K N/S AT8800742.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-22450 / ONQCF1F2622-1 / 1553039).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act: 

  2002-03-06

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc. (Lessee)
  (Crédit-Preneur)  

  

  Emballages Smurfit-Stone Canada Inc. (Lessee) 

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount 

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security 

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0102806-0002 

  

  2002-03-18   9:00 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Caterpillar Financial Services Limited (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-03-06

  	
   

  	
  2001
  CHARIOT ELEVATEUR CATERPILLAR MODELE GC55K N/S AT8800745.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-22447 / ONQCF1F2623-1 / 1553040).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2002-03-06

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc. (Lessee)
  (Crédit-Preneur)  

  

  Emballages Smurfit-Stone Canada Inc.

  (Lessee) 

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security 

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0102806-0003

  

  2002-03-18  9:00 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Caterpillar Financial Services Limited (Lessor) 

  (Crédit-Bailleur)

  	
   

  	
  2012-03-06

  	
   

  	
  2001
  CHARIOT ELEVATEUR CATERPILLAR MODELE GC55K N/S AT8800746.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-22448 / ONQCF1F2624-1 / 1553041).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-03-06

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc. (Lessee) 

  (Crédit-Preneur)  

  

  Emballages Smurfit-Stone Canada Inc. (Lessee) 

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0102806-0004

   

  2002-03-18  9:00 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Caterpillar Financial Services Limited

  (Lessor)

  (Crédit-Bailleur)  

  	
   

  	
  2012-03-06

  	
   

  	
  2002
  CHARIOT ELEVATEUR CATERPILLAR MODELE GC55K N/S AT8800748.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-22449 / ONQCF1F2625-1 / 1553042).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-03-06

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0102806-0005

   

  2002-03-18   9:00 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Caterpillar Financial Services Limited

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-03-06

  	
   

  	
  2002
  CHARIOT ELEVATEUR CATERPILLAR MODELE GC55K N/S AT8800749.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-22446 / ONQCF1F2626-1 / 1553043).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-03-06

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0196763-0001

   

  2002-05-10   2:09 p.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Caterpillar Financial Services Limited

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-04-29

  	
   

  	
  one
  enw 2002 hyster lift truck model S120XL2S, s/n D004D10422Y c/w new
  cascade model 90F-RCS-118 swing frame roll clamp, s/n 238182-1.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-23264 / ONQCF1F2716-1 / 1655497).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-04-29

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0196763-0002

   

  2002-05-10  
  2:09 p.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Caterpillar Financial Services Limited

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-04-29

  	
   

  	
  one
  new 2002 hyster lift truck model S120XL2S, s/n D004D10682Y, c/w new
  cascade model 90F-RCS-118 swing frame roll clamp s/n 238008-1.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-23265 / ONQCF1F2717-1 / 1655498).

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-04-29

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0196763-0003

   

  2002-05-10   2:09 p.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Caterpillar Financial Services Limited

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-04-29

  	
   

  	
  one
  new 2002 hyster lift truck model H110XM, s/n K005V02191Y, c/w new
  cascade model 90F-RCS-118 swing frame roll clamp, s/n 238291-1-RO, forks
  s/n 6100928-B-48.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-23266 / ONQCF1F2718-1 / 1655499)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-04-29

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0196763-0004

   

  2002-05-10   2:09 p.m.

   

   

   

   

  Date of Constituting Act:

  2002-04-29

  	
   

  	
  Rights of Ownership of the Lessor

   

   

   

   

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Caterpillar Financial Services Limited

  (Lessor)

  (Crédit-Bailleur)

   

   

   

  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2012-04-29

  	
   

  	
  one
  new 2002 hyster lift truck model E120XL3, s/n C098N01779Z, c/w new
  cascade model 90F-RCS-21CR0 swing frame roll clamp, s/n 250734-1R0, 3GNB
  batteries model 24-75831, s/n KAE-0213, KAE-0217, KAE-0215 and one GNB
  charger model CHP###-##-####T1Z, s/n 02A0178S.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (05-23266 / ONQCF1F2719-1 / 1655500)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0279723-0018

   

  2002-06-27 
  10:11 a.m.

   

   

   

   

   

  Date of Constituting Act:

  2002-06-14

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

   

  (Droits Résultant d’un Bail)

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2007-06-21

  	
   

  	
  ONE(1) JOHN
  DEERE 744H LOADER; S/N#DW744HX582991

  together
  with all attachments, accessories, accessions, replacements, substitutions,
  additions and improvements thereto and all proceeds in any form derived
  directly or indirectly from any dealing with the collateral and a right to an
  insurance payment or any other payment that indemnifies or compensates for a
  loss or damage to the collateral or the proceeds of the collateral.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (218129(LM)AF / ONQJD1F3452-1 / 1738434)

  	
   

  

 

 

PARTIES

 

(Registration
Number 02-0279723-0018)

 

Ontrac Equipment Services Inc. - (Lessor) - (Locateur)

 

John Deere Limited - (Lessor) - (Locateur)

 

Smurfit-Stone Container Canada Inc. - (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc. - (Lessee) - (Locataire)

 

Smurfit-Stone Container Canada Inc./Emballages Smurfit-Stone Canada Inc.
- (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc./Smurfit-Stone Container Canada Inc.
- (Lessee) - (Locataire)

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0279723-0019

   

  2002-06-27 
  10:11 a.m.

   

   

   

   

   

  Date of Constituting Act:

  2002-06-14

   

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

   

  (Droits Résultant d’un Bail)

   

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2007-06-21

  	
   

  	
  ONE(1) JOHN
  DEERE 644H 4WD LOADER; S/N#DW644HX582686

  together with all attachments, accessories, accessions, replacements,
  substitutions, additions and improvements thereto and all proceeds in any
  form derived directly or indirectly from any dealing with the collateral and
  a right to an insurance payment or any other payment that indemnifies or
  compensates for a loss or damage to the collateral or the proceeds of the
  collateral.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (218129(LM)AF / ONQJD1F3453-1 / 1738435)

  	
   

  

 

 

PARTIES

 

(Registration Number 02-0279723-0019)

 

Ontrac Equipment Services Inc. - (Lessor) - (Locateur)

 

John Deere Limited - (Lessor) - (Locateur)

 

Smurfit-Stone Container Canada Inc. - (Lessee) -
(Locataire)

 

Emballages Smurfit-Stone Canada Inc. - (Lessee) -
(Locataire)

 

Smurfit-Stone Container Canada Inc./Emballages
Smurfit-Stone Canada Inc. - (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc./Smurfit-Stone
Container Canada Inc. - (Lessee) - (Locataire)

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0279723-0020

   

  2002-06-27 
  10:11 a.m.

   

   

   

   

  Date of Constituting Act:

  2002-06-14

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

  (Droits Résultant d’un Bail)

   

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2007-06-21

  	
   

  	
  ONE(1) JOHN
  DEERE 744H LOADER; S/N#DW744HX582973

  together
  with all attachments, accessories, accessions, replacements, substitutions,
  additions and improvements thereto and all proceeds in any form derived
  directly or indirectly from any dealing with the collateral and a right to an
  insurance payment or any other payment that indemnifies or compensates for a loss
  or damage to the collateral or the proceeds of the collateral.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (218129(LM)AF / ONQJD1F3454-1 / 1738436)

  	
   

  

 

 

PARTIES

 

(Registration Number 02-0279723-0020)

 

Ontrac Equipment Services Inc. - (Lessor) - (Locateur)

 

John Deere Limited - (Lessor) - (Locateur)

 

Smurfit-Stone Container Canada Inc. - (Lessee) -
(Locataire)

 

Emballages Smurfit-Stone Canada Inc. - (Lessee) -
(Locataire)

 

Smurfit-Stone Container Canada Inc./Emballages
Smurfit-Stone Canada Inc. - (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc./Smurfit-Stone
Container Canada Inc. - (Lessee) - (Locataire)

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0279723-0021

   

  2002-06-27 
  10:11 a.m.

   

   

   

   

   

  Date of Constituting Act:

  2002-06-14

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

   

  (Droits Résultant d’un Bail)

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2007-06-21

  	
   

  	
  ONE(1) JOHN
  DEERE 6X4 WORKSITE GATOR; S/N#VGW6X4D010117

  together with all attachments, accessories, accessions, replacements,
  substitutions, additions and improvements thereto and all proceeds in any
  form derived directly or indirectly from any dealing with the collateral and
  a right to an insurance payment or any other payment that indemnifies or
  compensates for a loss or damage to the collateral or the proceeds of the
  collateral.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (218129(LM)AF / ONQJD1F3455-1 / 1738437)

  	
   

  

 

 

PARTIES

 

(Registration
Number 02-0279723-0021)

 

Ontrac Equipment Services Inc. - (Lessor) - (Locateur)

 

John Deere Limited - (Lessor) - (Locateur)

 

Smurfit-Stone Container Canada Inc. - (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc. - (Lessee) - (Locataire)

 

Smurfit-Stone Container Canada Inc./Emballages Smurfit-Stone Canada Inc.
- (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc./Smurfit-Stone Container Canada Inc.
- (Lessee) - (Locataire)

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0279723-0022

   

  2002-06-27 
  10:11 a.m.

   

   

   

   

   

  Date of Constituting Act:

  2002-06-14

   

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

   

  (Droits Résultant d’un Bail)

   

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2007-06-21

  	
   

  	
  ONE(1) JOHN
  DEERE 6X4 WORKSITE GATOR; S/N#VGW6X4D010135

  together with all attachments, accessories, accessions, replacements,
  substitutions, additions and improvements thereto and all proceeds in any
  form derived directly or indirectly from any dealing with the collateral and
  a right to an insurance payment or any other payment that indemnifies or
  compensates for a loss or damage to the collateral or the proceeds of the
  collateral.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (218129(LM)AF / ONQJD1F3456-1 / 1738438)

  	
   

  

 

 

PARTIES

 

(Registration Number 02-0279723-0022)

 

Ontrac Equipment Services Inc. - (Lessor) - (Locateur)

 

John Deere Limited - (Lessor) - (Locateur)

 

Smurfit-Stone Container Canada Inc. - (Lessee) -
(Locataire)

 

Emballages Smurfit-Stone Canada Inc. - (Lessee) -
(Locataire)

 

Smurfit-Stone Container Canada Inc./Emballages
Smurfit-Stone Canada Inc. - (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc./Smurfit-Stone
Container Canada Inc. - (Lessee) - (Locataire)

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0279723-0023

   

  2002-06-27 
  10:11 a.m.

   

   

   

   

   

  Date of Constituting Act:

  2002-06-14

   

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

   

  (Droits Résultant d’un Bail)

   

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2007-06-21

  	
   

  	
  ONE(1) JOHN
  DEERE 6X4 WORKSITE GATOR; S/N#VGW6X4D010134

  together with all attachments, accessories, accessions, replacements,
  substitutions, additions and improvements thereto and all proceeds in any
  form derived directly or indirectly from any dealing with the collateral and
  a right to an insurance payment or any other payment that indemnifies or
  compensates for a loss or damage to the collateral or the proceeds of the
  collateral.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:
  (218129(LM)AF / ONQJD1F3457-1 / 1738439)

  	
   

  

 

 

PARTIES

 

(Registration Number 02-0279723-0023)

Ontrac Equipment Services Inc. - (Lessor) - (Locateur)

 

John Deere Limited - (Lessor) - (Locateur)

 

Smurfit-Stone Container Canada Inc. - (Lessee) -
(Locataire)

 

Emballages Smurfit-Stone Canada Inc. - (Lessee) -
(Locataire)

 

Smurfit-Stone Container Canada Inc./Emballages
Smurfit-Stone Canada Inc. - (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc./Smurfit-Stone
Container Canada Inc. - (Lessee) - (Locataire)

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0279723-0024

   

  2002-06-27  10:11 a.m.

   

   

   

   

   

   

   

   

  Date of Constituting Act:

  2002-06-14

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

   

   

   

   

  (Droits Résultant d’un Bail)

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2006-06-21

  	
   

  	
  ONE(1) JOHN
  DEERE 1050C CRAWLER DOZER; S/N#LU1050C005720 together with all attachments,
  accessories, accessions, replacements, substitutions, additions and
  improvements thereto and all proceeds in any form derived directly or
  indirectly from any dealing with the collateral and a right to an insurance
  payment or any other payment that indemnifies or compensates for a loss or
  damage to the collateral or the proceeds of the collateral.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  REF:

  (218129(LM)AF / ONQJD1F3458-1 / 1738440)

  	
   

  

 

 

PARTIES

 

(Registration Number 02-0279723-0024)

Ontrac Equipment Services Inc. - (Lessor) - (Locateur)

 

John Deere Limited - (Lessor) - (Locateur)

 

Smurfit-Stone Container Canada Inc. - (Lessee) -
(Locataire)

 

Emballages Smurfit-Stone Canada Inc. - (Lessee) -
(Locataire)

 

Smurfit-Stone Container Canada Inc./Emballages
Smurfit-Stone Canada Inc. - (Lessee) - (Locataire)

 

Emballages Smurfit-Stone Canada Inc./Smurfit-Stone
Container Canada Inc. - (Lessee) - (Locataire)

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0553235-0001

   

  2002-12-09  9:00 a.m.

   

   

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-11-15

  	
   

  	
  2002
  BOBCAT SKID STEER LOADER MODEL 453/463 S/N 520012321 COMES WITH 44” GRAPPLE.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  SERPOL.19718  05-25387

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-11-15

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0554829-0001

  2002-12-09  10:40 a.m.

   

   

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-11-20

  	
   

  	
  2003
  CATERPILLAR MODEL D8RII TRACK-TYPE TRACTOR S/N CAT00D8RT6YZ01211

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  STANFR.19690
  - 05-25362

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-11-20

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0554905-0001

  2002-12-09  11:26 a.m.

   

   

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-12-02

  	
   

  	
  2003
  CATERPILLAR MODEL 950G WHEEL LOADER S/N CAT0950GLAXX00147.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  STANFR.19691
  - 05-25361

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-12-02

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0574146-0001

  

  2002-12-20  9:00 a.m.

   

   

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-12-09

  	
   

  	
  2003
  CHARGEUR SUR PNEUS CATERPILLAR MODELE 950G N/S CAT0950GK4BS00709.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  RAMSBJM.20370

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-12-09

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0175510-0001

  2003-04-15  9:00 a.m.

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2013-04-13

  	
   

  	
  2002
  HYSTER LIFT TRUCK MODEL S120XM S/N E004V01514Z

   

  2002
  HYSTER LIFT TRUCK MODEL S100XM S/N E004V01514Z

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  RAMSBJM.26778

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2003-04-14

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  Smurfit-Stone Container Canada Inc./

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0200369-0001

  2003-04-28  12:29 p.m.

   

   

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2013-04-21

  	
   

  	
  2003
  CATERPILLAR CUSHION TIRE FORKLIFT MODEL GC55K-LP-STR S/N: AT8800928.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  STANFR.27644

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2003-04-21

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0200373-0001

  2003-04-28  12:34 p.m.

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2013-04-21

  	
   

  	
  2003
  CATERPILLAR PNEUMATIC TIRE DIESEL FORKLIFT MODEL GP30K-LP, S/N:AT13E30918.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  STANFR.27646.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2003-04-21

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0051482-0001

  2004-02-02  11:44 a.m.

   

   

  	
   

  	
  Rights of Ownership of the Lessor 

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-01-23

  	
   

  	
  2003
  CATERPILLAR LIFT TRUCK MODEL GC25K S/N AT82D01585.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2004-01-23

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0051486-0001

  2004-02-02  11:47 a.m.

   

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-01-23

  	
   

  	
  2003
  CATERPILLAR LIFT TRUCK MODEL GC25K S/N AT82D01586.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2004-01-23

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0051487-0001

  2004-02-02  11:50 a.m.

   

   

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-01-23

  	
   

  	
  2003
  CATERPILLAR LIFT TRUCK MODEL GC25K S/N AT82D02940.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2004-01-23

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0051643-0001

   

  2004-02-02    12:05 p.m.

   

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor) 

  (Crédit-Bailleur)

  	
   

  	
  2014-01-20

  	
   

  	
  2003
  CATERPILLAR LIFT TRUCK MODEL GC55K S/N AT8800997 C/W: CASCADE PAPER CLAMP
  90F-RCS-SP S/N 361125-1.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2004-01-20

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc. 

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0051712-0001

   

  2004-02-02  12:09 p.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-01-20

  	
   

  	
  2003
  CATERPILLAR LIFT TRUCK MODEL GC55K S/N AT8800998 C/W: CASCADE  PAPAER
  CLAMP 90F-RCS-SP S/N 361125-2.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act: 

  2004-01-20

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc. 

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date
  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0578702-0001

   

  2004-10-05  9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-09-27

  	
   

  	
  2004
  HYSTER MODEL S120XMS-PRS LIFT TRUCK S/N F004V01805B.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2004-09-27

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc. 

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0578705-0001

   

  2004-10-05  9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-09-27

  	
   

  	
  2004
  HYSTER MODEL S120XMS-PRS LIFT TRUCK S/N F004V01810B.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act: 

  2004-09-27

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0578706-0001 

   

  2004-10-05    9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-09-27

  	
   

  	
  2004
  HYSTER MODEL S120XMS-PRS LIFT TRUCK S/N F004V01803B.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act: 

  2004-09-27

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0578708-0001 

   

  2004-10-05    9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-09-27

  	
   

  	
  ONE
  NEW 2004 HYSTER MODEL E120XL3 LIFT TRUCK S/N C098N03180B.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2004-09-27

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0578709-0001

   

  2004-10-05    9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-09-27

  	
   

  	
  2004
  HYSTER MODEL E120XL3 LIFT TRUCK S/N C098N03179B.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2004-09-27

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  

  

  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0589024-0001 

   

  2004-10-12    9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-07-30

  	
   

  	
  2004
  CATERPILLAR MODEL EP20KT LIFT TRUCK S/N ETB5A50448

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act: 

  2004-07-30

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date
  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0590128-0001 

   

  2004-10-12    9:00 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-07-30

  	
   

  	
  2004
  CATERPILLAR MODEL EP20KT LIFT TRUCK S/N ETB5A50447

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act: 

  2004-07-30

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
   

  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Container Canada Inc. 

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
   

  	
  12.

  	
  A.

  	
  Name Searched:

  	
  Smurfit-Stone
  Container Canada Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Currency of
  Search:

  	
  1995-01-03

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0281044-0001 

   

  2001-08-06    2:43 p.m.  

   

   

   

   

   

   

  Date of Constituting Act: 

  2001-04-10

  	
   

  	
  Rights of Ownership of the Lessor  

   

   

   

   

   

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Caterpillar Financial Services Limited 

  (Lessor) 

  (Crédit-Bailleur)  

   

   

   

   

  Smurfit-Stone Container Canada Inc. 

  (Lessee) 

  (Crédit-Preneur)

  	
   

  	
  2011-08-06

  	
   

  	
  Caterpillar
  Financial Services Limited (the “Lessor”) agrees to acquire and to lease to
  Smurfit-Stone Container Canada Inc. (the “Lessee”), and Lessee agrees to
  lease from Lessor certain movable property (the “Units” and individually a
  “Unit”) described in any Schedule (the “Schedule”) attached hereto or which
  may in the future be attached hereto (any such Schedule upon execution by
  Lessee and Lessor becoming a part hereof).

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  registration is a “Global” registration pursuant to article 2961.1 of the
  Civil Code of Quebec.

   

   

   

  This
  Rights of Ownership of the Lessor is subject to the following registration:

   

  Rectification
  of Registration # 01-0296366-0001 (see below)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0296366-0001 

   

  2001-08-16    2:05 p.m.

  	
   

  	
  Rectification of Registration

  	
   

  	
  Caterpillar Financial Services Limited 

  (Lessor)

  (Crédit-Bailleur)  

   

   

   

  Smurfit-Stone Container Canada Inc. 

  (Lessee)

  (Crédit-Preneur)  

   

  Emballages Smurfit-Stone Canada Inc. 

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  N/A

  	
   

  	
  The
  French version of Smurfit-Stone Container Canada Inc., which is Emballages
  Smurfit-Stone Canada Inc., is added as Lessee (“Crédit-Preneur”).

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  Rectification of Registration relates to the following registration:

   

  Rights
  of Ownership of the Lessor 

  # 01-0281044-0001 (see above)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0334809-0004 

   

  2001-09-14    9:00 a.m.  

   

   

   

   

   

  Date of Constituting Act: 

  2001-09-13

  	
   

  	
  Rights Resulting from a Lease and Assignment of Rights

   

   

   

  (Droits Résultant d’un Bail et Cession des Droits)

  	
   

  	
  Tennant Company (Lessor) 

  (Locateur) 

   

   

  Tennant Financial Services 

  (Assignee) 

  (Cessionnaire)  

   

   

   

   

  Smurfit-Stone Container Canada Inc.

  (Lessee) 

  (Locataire)

  	
   

  	
  2006-09-13

  	
   

  	
  1
  TENNANT SWEEPER MODEL 6200E TOGETHER WITH ALL REPLACEMENTS &
  SUBSTITUTIONS THEREOF & ALL PARTS, ACCESSORIES,
  ACCESSIONS & ATTACHMENTS THERETO.  

   

  REFERENCE
  LEASE NO. 4080532-001.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  The
  assignment includes all the rights.

   

   

  REF:
  (4080532-001 / ONQGE2F1098-1 / 1338326).

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0115275-0001 

   

  2002-03-26    9:00 a.m.  

   

   

   

   

   

  Date of Constituting Act: 

  N/A

  	
   

  	
  Rights Resulting from a Lease

   

   

   

   

   

   

  (Droits Résultant d’un Bail)

  	
   

  	
  Pitney Bowes Leasing 

  (Lessor) 

  (Locateur)

   

   

   

   

  Smurfit Stone (Lessee) 

  (Locataire)

  	
   

  	
  2007-04-01

  	
   

  	
  All
  items as defined and listed under contract #310781  

  1
  CD2A $21,624.00

  1
  986A $ 2,195.00

  1
  9861 $ 695.00
  

  1 9865 $ 3,550.00  

  1 9866 $ 1,670.00  

  1 FX3E $ 6,995.00

  1 CPAKG $ 995.00  

  1 SH55 $ 175.00

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Cost
  Lease Based On $38,024.00

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration 

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0101108-0001 

   

  2004-02-25    1:09 p.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Les Services Financiers Caterpillar Limitée (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2014-02-11

  	
   

  	
  2003
  LINDE LIFT TRUCK MODEL H45D-600-04 S/N H2X352P01866.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act: 

  2004-02-11

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Smurfit-Stone Container Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  13.

  	
  A.

  	
  Name Searched:

  	
  Emballages
  Smurfit-Stone Canada Inc.

  
	
   

  	
  B.

  	
  Currency of
  Search:

  	
  1995-01-03

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0320140-0001

  

  2000-10-23   12:44 p.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Corporation Financiere Teletech

  (Lessor) 

  (Crédit-Bailleur)  

  	
   

  	
  2007-04-23

  	
   

  	
  1
  PHOTOCOPIEUR NUMERIQUE CANON SN NLE 12678  

  

  1 FINISHER DI SN NLF
  24489

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2000-10-23

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Emballages Smurfit-Stone Canada Inc. (Lessee) 

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0355497-0002

  

  2000-11-22   9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Corporation Financiere Teletech

  (Lessor)

  (Crédit-Bailleur)  

  	
   

  	
  2004-11-21

  	
   

  	
  1
  TELCOPIEUR CANON

  CFX-L3500IF SN VEF 17156

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2000-11-21

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Emballages Smurfit-Stone Canada Inc. (Lessee) 

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0069942-0001

  

  2001-03-07  9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  Corporation Financiere Teletech

  (Lessor) 

  (Crédit-Bailleur)  

  	
   

  	
  2007-03-06

  	
   

  	
  1 TELECOPIEUR MODE

  CFX L-3500

  

  No
  de serie: UEF-43516@~

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2001-03-06

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Emballages Smurfit-Stone Canada Inc. (Lessee) 

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0253027-0001

  

  2001-07-17   9:00 a.m.  

  

  

  

  

  

  

  Date of Constituting Act:

  2001-07-09

  	
   

  	
  Rights Resulting from a Lease and Assignment of Rights

  

  

  

  

  (Droits Résultant d’un Bail et Cession des Droits)

  	
   

  	
  G. Dumais

  Automobiles Ltée

  (Lessor) 

  (Locateur)

  

  Services Financiers DaimlerChrysler (debis) Canada Inc.

  (Assignee)

  (Cessionnaire)

  

  Emballage Smurfit Stone Canada (Lessee)

  (Locataire)

  	
   

  	
  2005-07-09

  	
   

  	
  Road Vehicle:

  

  Cat.: 01  

  

  Identification Number: 

  Recreational Vehicle 

  1B7HF13Z31J611993

  

  Year: 2001

  

  Description:

  Dodge Ram

  1500 4X4 Quad Cab.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  The
  assignment includes all the rights.

  

  REF: (7000237813 /

  PQQCH1F61906-1 /

  1251096).

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0262385-0002

  

  2001-07-24   9:00 a.m.  

  	
   

  	
  Rights of Ownership of the Lessor  

  	
   

  	
  National Leasing Group Inc.

  (Lessor) 

  (Crédit-Bailleur)

  	
   

  	
  2005-07-23

  	
   

  	
  Please see next page “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  Rights of Ownership of the Lessor is subject to the following registration:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2001-07-20

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Assignment
  of Rights # 02-0077595-0001 (see below)

  	
   

  

 

 

PROPERTY

 

(Registration
Number 01-0262385-0002)

MOBILE RADIOS &
COMMUNICATION SYSTEMS C/W ACCESS, ATTACHMENTS AND SOFTWARE

12-PORT VHF HT 1250 FULL KEYPAD

12-BATTERIE ET CHARCHEUR RAPIDE SUR
TABLE

12-ETUI CUIR DIMF SW HT 1250

12-MICRO HPN CANCELING HT 750

30-PORT VHF HT 1250 LIM KEYPAD

30-ETUI CUIR SW ST1250 CLIMITE

30-MICRO HP N CANCELLING HT 750

20-BATTERIE NIMH HCAP HT750 REPETEUR
TAIT T800II VHF 50W

1-RECETEUR SERIE 13008770

1-EXCITER SERIE 13006360

1-TRANSMETTEUR 50 WATTS SERIE 703767

1-PORT POUR PC ET HAUT-PARLEUR

1-ALIMENTATION 110VOLT 15 AMP SERIE
13008858

1-CABINET ET CARTE MERE

1-M-48JR REPEATER PATCH SERIE
00909061

1-ANTENNE 3 DB

1-DUPLEXEUR 4 CAVITES

175-CABLE HELIAX 1/2” / PIED

1-CONNECTEUR N FEM HELIAX 1/2”

1-CONNECTEUR N MALE HELIAX 1/2”

2-COAXIAL FAIBLE PERTE/PI AVEC
CONNECTEUR N MALE

1-TREPIED 5 PIEDS AVEC BUTYL

1-MAT GALVANISE 10 PIED DELAI

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0077595-0001

   

  2001-02-27    11:23 a.m.

   

   

   

   

   

   

   

   

  Date of Constituting Act:

  2001-11-22

  	
   

  	
  Assignment of Rights

  	
   

  	
  National Leasing Group Inc.

  (Assignor)

   

   

   

  Sound Trust

  (Assignee)

   

   

   

  Montreal Trust Company of Canada

  (Trustee)

  	
   

  	
  N/A

  	
   

  	
  All
  of the Assignor’s rights which have been registered at the Register of
  Personal and Movable Real Rights under the registration numbers listed under
  the heading “reference à l’inscription visee” in this registration.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Montreal
  Trust Company of Canada acts as Trustee for Sound Trust.

   

   

   

  This
  Assignment of Rights relates to, among others, the following registration:

   

  Rights
  of Ownership of the Lessor # 01-0262385-0002
  (see above)

   

   

   

  This
  Assignment of Rights is subject to the following registration:

   

  Modification
  of a Published Right # 04-0366277-0003
  (see below)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0366277-0003

   

  2004-06-18    12:33 p.m.

   

   

   

   

  Date of Constituting Act:

  N/A

  	
   

  	
  Modification of a Published Right

   

   

   

   

   

  (Modification d’un Droit Publié)

  	
   

  	
  National Leasing Group Inc.

  (Lessor)

  (Crédit-Bailleur)

   

   

   

  Laro Technologie Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  ADDING
  THE DEBTOR LARO TECHNOLOGIE INC. TO THE REGISTRATION WITH AN ADDRESS OF 2479
  BOUL. LABELLE, PREVOST, QUEBEC, J0R 1T0.

   

   

   

  This
  Modification of a Published Right relates to, among others, the following
  registration:

   

  Assignment
  of Rights # 02-0077595-0001 (see above)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0006400-0004

   

  2002-01-09    9:00 a.m.

   

   

   

  	
   

  	
  Rights of Ownership of the Lessor

   

  	
   

  	
  CitiCapital Financement de Technologie Ltée

  (Lessor)

  (Crédit-Bailleur)

   

  	
   

  	
  2007-01-08

  	
   

  	
  2
  SANYO CASH REGISTERS MEDEL ECR340

   

  SN:
  30100109-30100128@

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2002-01-08

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0147203-0001

   

  2002-04-16    9:00 a.m.

   

   

   

   

   

   

   

  Date of Constituting Act:

  2002-04-15

  	
   

  	
  Rights of Ownership of the Lessor

   

   

   

   

   

   

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  CitiCapital Financement de Technologie Ltée

  (Lessor)

  (Crédit-Bailleur)

   

   

   

   

   

  Emballages Smurfit-Stone Canada Inc. (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2007-04-15

  	
   

  	
  2 PHOTOCOPIEURS CANON, MODELE
  7130F NS:NVH32761 MODELE 7130 NS:NVF43640,

   

  1 TELECOPIEUR LASER CLASSE 1060P
  NS:UEW02944

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0191095-0001

   

  2002-05-08    9:13 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  CitiCapital Financement de Technologie Ltée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2008-05-07

  	
   

  	
  1 CANON PHOTOCOPIEUR IR2200 SN:
  MPG22963

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  Date of Constituting Act:

  2002-05-08

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0305242-0001

   

  2002-07-15 9:07 a.m.

   

   

   

   

   

  Date of Constituting Act:

  2002-07-15

  	
   

  	
  Rights of Ownership of the Lessor

   

   

   

   

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  CitiCapital Financement de Technologie Ltée

  (Lessor)

  (Crédit-Bailleur)

   

   

   

  Emballages Smurfit-Stone Canada Inc., Division Pontiac (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2008-07-14

  	
   

  	
  Please see next
  page “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  Rights of Ownership of the Lessor is subject to the following registration:

   

  Rectification
  of Registration # 02-0334790-0001 (see below)

  	
   

  

 

 

PROPERTY

 

(Registration
Number 02-0305242-0001)

 

SYSTEME
DE RADIOCOMMUNICATION

47
V1439 P1225 PORT UHF 16CH #SERIE 475YCJ0013, 0289, 0315, 0450, 0223, 0290,
0371, 0451, 0231, 0291, 0421, 0455, 0277, 0292, 0429, 0458, 0279, 0293, 0433,
0459, 0280, 0294, 0436, 0461, 0283, 0295, 0440, 0462, 0284, 0296, 0441, 0466,
0285, 0298, 0442, 0467, 0286, 0300, 0445, 0473, 0287, 0303, 0446, 0478, 0288,
0309, 0447

C/W
ANTENNA/CLIP/BATTERY~

47
HTN-9702A CHARGER, 10HR. STD. RATE, SINGLE UNIT~

47
HMN-9030A, REMOTE SPEAKER MIC~

47
HNN-9049A BATTERY P1225~

25
M34DGC90J2-A M1225 MOBILE 20CH UHF #SERIE 869FBLC406, 407, 410, 411, 412, 414,
415, 434, 436, 438, 439,

869FCE3344,
348, 350, 359, 373, 379, 383, 407, 412, 430, 439, 453, 464, 869FBLL423~

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0334790-0001

   

  2002-07-31    11:30 a.m.

  	
   

  	
  Rectification of Registration

  	
   

  	
  CitiCapital Financement de Technologie Ltée

  (Lessor)

  (Crédit-Bailleur)

   

   

   

   

   

   

   

   

   

  Emballages Smurfit-Stone Canada Inc., Division Pontiac

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  N/A

  	
   

  	
  In the section
  “Property”, we must make a correction of the serial number.

   

  Replace serial number
  869FBLC406

   

  By serial number
  869FBL6415.

   

  Also in the section
  “Property”, the #434 must be taken out, #434 must not appear in this
  registration.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  Rectification of Registration relates to the following registration:

   

  Rights
  of Ownership of the Lessor # 02-0305242-0001 (see above)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0432570-0012

   

  2002-09-27   9:38 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Corporation de Financement Onset

  (Lessor)

  (Crédit-Bailleur)  

  	
   

  	
  2008-04-01

  	
   

  	
  Please see next page
  “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  Rights of
  Ownership of the Lessor is subject to the following registration:

  

  Assignment of Rights

  # 03-0671091-0001

  (see below)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2002-09-23

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Emballages Smurfit-Stone Canada Inc., Division Pontiac

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PROPERTY

 

(Registration
Number 02-0432570-0012)

 

General
Collateral :

 

3
PHOTOCOPIEURS CANON IR2200, SÉRIE: MPG41160, MPG42349, MPG42366

 

TOGETHER
WITH ALL ATTACHEMENTS ACCESSORIES ACCESSIONS 
REPLACEMENTS SUBTITUTIONS ADDITIONS AND IMPROVEMENTS THERETO AND ALL
PROCEEDS IN ANY FORM DERIVED DIRECTLY OR INDIRECTLY FROM ANY SALE AND OR
DEALINGS WITH THE COLLATERAL AND A RIGHT TO AN INSURANCE PAYMENT OR OTHER
PAYMENT THAT INDEMNIFIES OR COMPENSATES FOR LOSS OR DAMAGE TO THE COLLATERAL OR
PROCEEDS OF THE COLLATERAL.

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0671091-0001

   

  2003-12-16  
  2:34 p.m.

  	
   

  	
  Assignment of Rights

  	
   

  	
  Onset Capital Corporation

  (Assignor)

   

  Onset Alberta Ltd.

  (Assignor)

  	
   

  	
  N/A

  	
   

  	
  Please see next
  pages “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  Assignment of
  Rights relates to, among others, the following registration:

   

  Rights of
  Ownership of the Lessor

  # 02-0432570-0012

  (see above)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2003-11-25

  	
   

  	
  (Cession de Droits)

  	
   

  	
  BNY Trust Company of Canada

  (Assignee)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  This
  Assignment of
  Rights is subject to the following registration:

   

  Rectification of
  Registration

  # 03-0686855-0001

  (see below)

  	
   

  

 

 

PROPERTY

 

(Registration
Number 03-0671091-0001)

 

All
of such Assignor’s right, title and interest in, to and under (i) the
Leases (excluding, for greater certainty, title to the Leased Items forming the
subject matter of the Leases and the Residual Amount, if any, applicable to any
such Leases), (ii) the original credit application originally executed by
each Lessee and any credit analysis and credit agency report and the “quality
indicator score” records relating to the Lessees, if any, and (iii) all
other documents kept on file by the Assignors evidencing the Related Rights
and/or relating to the Leases, the Lessees or the Leased Items;

 

All
of such Assignor’s right, title and interest in and to all Collections made
after the relevant Lease Date including, rights if any, under direct debit
agreements with Lessees, and all cheques, notes, instruments of payment and
other remittances relating thereto; all of such Assignor’s right, title and
interest in and to the Related Rights created pursuant to or relating to the
Leases; and all proceeds from any or all of the foregoing;

 

(all
of such property and rights being collectively referred to herein as the “Lease
Entitlements”).

 

Definitions

 

“Administrative
Charges”, with respect to a Lease, means late payment charges, extension fees,
termination fees, insurance premiums, charges for returned cheques or
dishonoured payments or dishonoured transfer instructions and similar charges,
in each case payable by the Lessee, provided the same do not form part of
payments on account of Rent payable by the Lessees under the Leases;

 

“Assignor”
means each of Onset Capital Corporation and Onset Alberta Ltd.;

 

“Calculation
Date” means, with respect to a Lease, the Exercise Date or Expiration Date, as
the case may be, used to calculate the Implicit Rate for such Lease under the
Concurrent Lease Agreement;

 

“Cash
Collateral Account” means an Eligible Deposit Account established
in
the name of the Assignee;

 

“Collection
Account” means an Eligible Deposit Account established in the name of the
Servicer, as trustee for and on behalf of the Assignee;

 

“Collection
Period” means, in the case of the initial Collection Period, the period from
the initial Lease Date to and including December 31, 2003, and in the case
of each Collection Period thereafter, a calendar month;

 

 

PROPERTY

 

(Registration
Number 03-0671091-0001)

 

“Collections”
means all cash collections and other cash proceeds on account of Rent under the
Leases, including, without duplication, all cash payments on account of Scheduled
Payments, insurance proceeds, Liquidation Proceeds, Hedging Proceeds, all
interest earned on amounts contained in the Collection Account and the Cash
Collateral Account, all amounts paid by the Servicer, Onset Capital
Corporation, as Assignor or Servicer, as the case may be, or Onset Alberta Ltd.
pursuant the Concurrent Lease Agreement, all amounts received by the Assignee
as a result of the termination, modification or amendment of any Swap Agreement
(except to the extent used to enter into a replacement Swap Agreement) and any
other amounts deemed to be Collections, but for all purposes excluding all (i) Administrative
Charges, (ii) all security deposits payable by any Lessee under or in
respect of any Lease, but only to the extent that such security deposits do not
form part of the Outstanding Balance of such Lease, (iii) all amounts paid
under any Lease prior to the assignment of such Lease to the Assignee, (iv) all
amounts payable to persons other than the Assignors under or in respect of any
Lease to indemnify against liability payable to third parties, and (v) payments
or recoveries made in respect of (A) the Residual Amount upon the
termination or enforcement of any Lease and (B) Taxes payable by the
Lessees;

 

“Concurrent
Lease Agreement” means the Concurrent Lease Agreement dated November 25,
2003 executed between the Assignors and the Assignee.

 

“Eligible
Deposit Account” means either an account or a segregated trust account with an
Eligible Institution under the Concurrent Lease Agreement;

 

“Exercise
Date”, in respect of a Lease, means the first day on which the Lessee under
that Lease may purchase the related Leased Items in accordance with the terms
of such Lease;

 

“Expiration
Date”, in respect of a Lease, means the date on which such Lease is scheduled
to terminate in accordance with its terms, excluding any renewals or extensions
beyond such scheduled termination date arising from the Lessee electing to
continue to lease the related Leased Items after all Scheduled Payments have
been made;

 

“Hedging
Proceeds” in respect of a Concurrent Lease under the Concurrent Lease Agreement
and each Tranche Period under the Concurrent Lease Agreement, means the net
amount (other than swap unwinding costs) payable by the counterparty to the
Assignee pursuant to any Swap Agreement in respect of such Tranche Period under
the Concurrent Lease Agreement;

 

“Lease”
means the leases identified by reference to the registration number of such
lease of movable property in the Register of Personal and Movable Real Rights
in this registration, together with all supplements, amendments, transaction
documents, confirmations and customer agreements relating thereto, providing,
among other things, for the use by the Lessee thereunder of the Leased Items
forming the subject matter thereof;

 

“Leased
Items” means, collectively, the new or used tangible personal property,
together with all accessions, upgrades, additions and enhancements thereto,
which form the subject matter of a Lease or the Leases, as the context
requires;

 

“Lessee”,
in respect of a Lease, means the Person (other than the particular Assignor or
if such Lease was not originated by a Assignor, the assignor of such Lease to
the relevant Assignor), who is acquiring leasehold interests under the Lease
and is shown as a party thereto, and includes any co-lessee and any guarantor
or other Person who owes or is responsible for any payments under such Lease;

 

 

PROPERTY

 

(Registration
Number 03-0671091-0001)

 

“Liquidated
Lease” means any Lease enforced by the Servicer through sale of all or part of
the Leased Items forming the subject matter thereof, enforcement of a judgment
or otherwise;

 

“Liquidation
Proceeds” means the monies collected from whatever source during the relevant
Collection Period in respect of a Liquidated Lease, net of (i) the sum of
any amounts required by law or such Liquidated Lease to be remitted to the
Lessee or to a governmental authority in respect of Taxes on the sale or other
disposition of the Leased Items (or part thereof) by the Servicer, and (ii) all
reasonable out-of-pocket costs and expenses incurred by the Servicer in
enforcing and preparing for the sale or other disposition of, and selling or
otherwise disposing of, any Leased Items;

 

“Outstanding
Balance” means, with respect to a Lease at a particular date, the aggregate of
the present value of all Scheduled Payments (including arrears thereof) to be
made over the remaining portion of the Term of the Lease up to the Calculation
Date for such Lease calculated by discounting to such Calculation Date each
such Scheduled Payment (including arrears thereof) at the Implicit Rate
applicable to such Lease under the Concurrent Lease Agreement;

 

“Person”
means an individual, partnership, corporation, trust, joint venture,
unincorporated association, board or body established by statute, government
(or any agency or political subdivision thereof) or other entity;

 

“Related
Rights”, with respect to any Lease, means any of the following that secures
payment or performance, either directly or indirectly, of the Lessee’s
obligations following the Lease Date under such Lease, or provides security for
the residual value of the Leased Items forming the subject matter of such
Lease:

 

(a) any
Security Interest in any assets mortgaged, pledged, assigned or otherwise
encumbered under or in connection with such Lease, including the related Leased
Items to the extent a Security Interest therein has been registered by the
relevant Assignor, all amounts paid by the Lessee to the relevant Assignor by
way of advance rent payments, security deposits or otherwise and all financing
statements and similar registrations and notices covering any collateral
subject to the aforementioned Security Interests or the applicable Leased
Items, but, for greater certainty, does not include title to the Leased Items
under such Lease;

 

(b) all
guarantees, indemnities and similar arrangements of whatever kind (but only to
the extent relating to such Lease or the related Leased Items);

 

(c) all
proceeds of any policies of life, disability and general liability insurance
covering the Lessee (whether maintained by the relevant Lessee, a Assignor or
any other Person) which have been assigned to or for the benefit of the
relevant Assignor or pursuant to which the relevant Assignor has been named as
an insured party;

 

(d) all
proceeds of any policies of insurance relating to physical damage, loss,
destruction or breakdown of the Leased Items (whether maintained by the
relevant Lessee, Assignor or any other Person);

 

 

PROPERTY

 

(Registration
Number 03-0671091-0001)

 

(e) all
proceeds of any policies of insurance insuring the residual value of the Leased
Items (whether maintained by the relevant Lessee, Assignor or any other
Person); and

 

(f) all
proceeds of the foregoing, including any payment respecting indemnity or
compensation for loss of or damage to any of the

foregoing;

 

“Remittance
Date” means the fourteenth day of each calendar month occurring after the end
of the initial Collection Period;

 

“Rent”,
with respect to a Lease, means that portion of each payment to be made by the
Lessee, including any purchase option payment, that represents a payment on
account of the rent charged under such Lease for the use and possession of the
Leased Items forming the subject matter of such Lease;

 

“Replacement
Servicer”, at any time following a Servicer Transfer, means the Person whom the
Assignee designates from time to time by notice given to the Assignors as the
Replacement Servicer;

 

“Residual
Amount” means the dollar value ascribed by the relevant Assignor at the
commencement date of a Lease as the value of the Leased Items forming the
subject matter of such Lease as at the end of the Term of such Lease;

 

“Scheduled
Payment”, with respect to a Lease, means the payment required to be made by the
Lessee (or, in the case of a purchase option payment, payable at the option of
the Lessee) during the relevant Collection Period pursuant to the Lease on
account of Rent, exclusive of, for greater certainty, (i) Administrative
Charges, (ii) payments to be made upon the termination of such Lease in
respect of the Residual Amount, if any, (iii) payments made on account of
the rent charged under such Lease in respect of any period following the
Expiration Date (iv) any purchase option payment or bargain purchase
option payment which under the terms of the Lease is only payable on or after
the Expiration Date thereof, and (v) any Taxes payable by the Lessee;

 

“Security
Interest” means a lien, security interest, title retention agreement, pledge,
assignment (whether or not by way of security), charge, encumbrance, mortgage,
right of set-off, lease or other right or claim of any Person;

 

“Servicer”
means the Person designated as the Servicer pursuant to the Concurrent Lease
Agreement;

 

“Swap
Agreement” means an interest rate hedge, option, swap or similar agreement
entered into between the Assignee and a counterparty, such agreement to be in a
form acceptable to the Assignee, the Assignors and the Rating Agency under the
Concurrent Lease Agreement;

 

“Taxes”
means any withholding, stamp, general corporation, property, capital, large
corporations, excise, GST, sales or other tax or any fee, levy, assessment or
other governmental charge, including any related penalties or interest;

 

“Term”,
with respect to a Lease, means the period commencing on the commencement date
thereof and ending on the Expiration Date thereof;

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0686855-0001

   

  2003-12-29  
  12:18 p.m.

  	
   

  	
  Rectification of Registration

  	
   

  	
  Onset Capital Corporation

  (Assignor)

   

  Onset Alberta Ltd.

  (Assignor)

   

  BNY Trust Company of Canada

  (Assignee)

  	
   

  	
  N/A

  	
   

  	
  Please see next
  page “Rectification”

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  Rectification of Registration relates to, among others, the following
  registration:

   

  Assignment of
  Rights

  # 03-0671091-0001

  (see above)

  	
   

  

 

 

RECTIFICATION

 

(Registration
Number 03-0686855-0001)

 

Under
the section “Référence à l’inscription visée au Registre des droits personnels
et réels mobiliers” of registration number 03-0671091-0001, the following
registration numbers should be added:

 

00-0032668-0020

02-0432726-0001

02-0123932-0024

00-0138363-0019

01-0187460-0023

02-0041842-0013

02-0041842-0018

02-0062761-0005

02-0457598-0009

02-0483588-0016

03-0266632-0002

03-0291205-0012

02-0414877-0004

03-0101742-0001

 

Under
the section “Référence à l’inscription visée au Registre des droits personnels
et réels mobiliers”, the number 02-0292743-0007 should be changed for
02-0294045-0007.

 

The
following paragraph shoul be added in the heading “Autres Mentions”:

 

Quebec
Power of Attorney: The Holder hereby grants to Onset Capital Corporation and
its duly authorized agents and their respective successors, a power of attorney
and mandate to execute on its behalf any document reasonably necessary, under
the laws of Quebec, to discharge, strike-off, cancel, release or reduce any
Security Interest registered in favour of either of the Grantors in the
Register of Personal and Movable Real Rights, and for which discharge documents
the consent of the Holder is necessary. 
For greater certainty, this mandate and power of attorney shall only
apply to the discharge of Security Interests granted in favour of either
Grantor and shall not apply to any Security Interest granted by either Grantor
in favour of the Trust hereunder or otherwise.

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0183881-0001

   

  2003-04-22  
  9:00 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Corporation de Financement Onset

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2008-05-01

  	
   

  	
  Please see next
  page “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2003-04-17

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Emballages Smurfit-Stone Canada Inc., Division
  Pontiac

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PROPERTY

 

(Registration Number 03-0183881-0001)

 

General
Collateral :

 

1
TELECOPIEUR CANON LASER CLASS 2050P SÉRIE: UZX02089

 

TOGETHER
WITH ALL ATTACHEMENTS ACCESSORIES ACCESSIONS 
REPLACEMENTS SUBTITUTIONS ADDITIONS AND IMPROVEMENTS THERETO AND ALL
PROCEEDS IN ANY FORM DERIVED DIRECTLY OR INDIRECTLY FROM ANY SALE AND OR
DEALINGS WITH THE COLLATERAL AND A RIGHT TO AN INSURANCE PAYMENT OR OTHER
PAYMENT THAT INDEMNIFIES OR COMPENSATES FOR LOSS OR DAMAGE TO THE COLLATERAL OR
PROCEEDS OF THE COLLATERAL.

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0225758-0010

   

  2003-05-08  
  2:24 p.m.

  	
   

  	
  Rights Resulting from a Lease

  	
   

  	
  Minolta (Montreal) Inc.

  (Lessor)

  (Locateur)

  	
   

  	
  2009-05-15

  	
   

  	
  1-DI-620
  COPIER

   

  WITH
  ALL ATTACHMENTS, ACCESSORIES AND PROCEEDS THEREOF INCLUDING INSURANCE
  PROCEEDS AND INDEMNITY.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Lease
  term is 60 months with quarterly lease payments of $2994.00 plus
  applicable taxes.

  	
   

  
	
  Date of Constituting Act:

  2003-04-01

  	
   

  	
  (Droits Résultant d’un Bail)

  	
   

  	
  Les Emballages Smurfit-Stone

  (Lessee)

  (Locataire)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0390348-0005

   

  2004-07-02   9:00 a.m.

   

   

   

   

   

   

   

  Date of Constituting Act:

  2004-06-18

  	
   

  	
  Rights Resulting from a Lease and Assignment of Rights

   

   

   

   

   

   

  (Droits Résultant d’un Bail et Cession des Droits)

  	
   

  	
  Automobiles Mauger Ford Inc.

  (Lessor)

  (Locateur)

   

   

  Ford Credit Canada Leasing Company

  (Assignee)

  (Cessionnaire)

   

   

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Locataire)

  	
   

  	
  2007-06-30

  	
   

  	
  Road
  Vehicle:

   

  Cat.:
  01

   

  Identification
  Number:

  Recreational
  Vehicle

  2FTRF17244CA92439

   

  Year:
  2004

   

  Description:
  Ford F150

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  The
  assignment includes all the rights.

   

   

   

  REF:
  (2JN126 C73N 06182004 / PQQFC11F24767-1 / 2908674)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0405031-0008

  

  2004-07-09   9:00 a.m.

  

  

  

  Date of Constituting Act:

  N/A

  	
   

  	
  Rights Resulting from a Lease

  

  

  

  

  (Droits Résultant d’un Bail)

  	
   

  	
  Xerox Canada Ltd.

  (Lessor)

  (Locateur)

  

  

  

  Emballage Smurfit-Stone Canada Inc.

  (Lessee)

  (Locataire)

  	
   

  	
  2010-07-06

  	
   

  	
  EQUIPMENT

  

  OTHER

  

  ALL PRESENT AND FUTURE
  OFFICE EQUIPMENT AND SOFTWARE SUPPLIED OR FINANCED FROM TIME TO TIME BY THE
  SECURED PARTY (WHETHER BY LEASE, CONDITIONAL SALE OR OTHERWISE), WHETHER OR
  NOT MANUFACTURED BY THE SECURED PARTY OR ANY AFFILIATE THEREOF.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  CUSTOMER
  # 952193266

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0409331-0002

  

  2004-07-12   2:47 p.m.

  

  

  

  

  

  

  

  Date of Constituting Act:

  N/A

  	
   

  	
  Rights Resulting from a Lease

  

  

  

  

  

  

  

  

  (Droits Résultant d’un Bail)

  	
   

  	
  Xerox Canada Ltd.

  (Lessor)

  (Locateur)

  

  

  

  

  

  

  Emballage SmurfitStone Canada Inc.

  (Lessee)

  (Locataire)

  	
   

  	
  2010-07-11

  	
   

  	
  EQUIPMENT

  

  OTHER

  

  ALL PRESENT AND FUTURE
  OFFICE EQUIPMENT AND SOFTWARE SUPPLIED OR FINANCED FROM TIME TO TIME BY THE
  SECURED PARTY (WHEATHER BY LEASE, CONDITIONAL SALE OR OTHERWISE), WHETHER OR
  NOT MANUFACTURED BY THE SECURED PARTY OR ANY AFFILIATE THEREOF.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  CUST
  # 952193266

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0465068-0007

  

  2004-08-09   9:00 a.m.

  

  

  

  

  

  

  

  Date of Constituting Act:

  2004-07-26

  	
   

  	
  Rights Resulting from a Lease and Assignment of Rights

  

  

  

  

  

  

  (Droits Résultant d’un Bail et Cession des Droits)

  	
   

  	
  Automobiles Mauger Ford Inc.

  (Lessor)

  (Locateur)

  

  

  Ford Credit Canada Leasing Company

  (Assignee)

  (Cessionnaire)

  

  

  

  Emballages Smurfit-Stone Canada Inc.

  (Lessee)

  (Locataire)

  	
   

  	
  2007-08-06

  	
   

  	
  Road
  Vehicle:

  

  Cat.: 01

  

  Identification
  Number:

  Recreational Vehicle

  1FTVX12544NC38524

  

  Year: 2004

  

  Description: Ford
  F150

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  The
  assignment includes all the rights.

  

  

  

  REF: (2JN126 D08P
  07262004 / PQQFC11F25556-1 / 2977798)

  	
   

  

 

 

	
  14.

  	
  A.

  	
  Name Searched:

  	
  Smurfit-Stone
  Container Canada Inc.

  
	
   

  	
   

  	
   

  	
  Emballages Smurfit-Stone Canada Inc.

  
	
   

  	
   

  	
   

  	
  St. Laurent Paperboard Inc.

  
	
   

  	
   

  	
   

  	
  Cartons St-Laurent Inc.

  
	
   

  	
   

  	
   

  	
  3767795 Canada Inc.

  
	
   

  	
   

  	
   

  	
  3767825 Canada Inc.

  
	
   

  	
  B.

  	
  Currency of
  Search:

  	
  1995-01-03

  	
  3:00 p.m. for
  renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0175393-0002

  

  2000-06-26   12:27 p.m.

  

  Date of Constituting Act:

  1994-07-07

  	
   

  	
  Rights of Ownership of the Lessor

  

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Please see next page “Parties”.

  	
   

  	
  2010-06-26

  	
   

  	
  Please see next pages “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Please see next pages “Other Particulars”.

  	
   

  

 

 

PARTIES

 

(Registration
Number 00-0175393-0002)

PHH Vehicle Management Services Inc. - (Lessor) - (Crédit-Bailleur)

 

Smurfit-Stone Container Canada Inc. - (Lessee) - (Crédit-Preneur)

 

Emballages Smurfit-Stone Canada Inc. - (Lessee) - (Crédit-Preneur)

 

Smurfit-Stone Container Canada Inc./Emballages Smurfit-Stone Canada Inc.
- (Lessee) - (Crédit-Preneur)

 

Emballages Smurfit-Stone Canada Inc./Smurfit-Stone Container Canada Inc.
- (Lessee) - (Crédit-Preneur)

 

St. Laurent Paperboard Inc. - (Lessee) - (Crédit-Preneur)

 

Cartons St-Laurent Inc. - (Lessee) - (Crédit-Preneur)

 

3767795 Canada Inc. - (Lessee) - (Crédit-Preneur)

 

376825 Canada Inc. - (Lessee) - (Crédit-Preneur)

 

 

PROPERTY

 

(Registration
Number 00-0175393-0002)

 

All
present and future motor vehicles (including, without limitation, passenger
automobiles, trucks, truck tractors, truck trailers, truck chassis, or truck
bodies), automotive equipment (including, without limitation, trailers, boxes
and refrigeration units), and materials-handling equipment leased from time to
time by the Lessor to the Lessee, together with all present and future
attachments, accessions, appurtenances, accessories and replacement parts, and
all proceeds of or relating to any of the foregoing.

 

 

OTHER PARTICULARS

 

(Registration
Number 00-0175393-0002)

 

This
registration is a “Global” registration pursuant to article 2961.1 of the Civil
Code of Quebec.

 

REF:
(8325 / ONQPH4F250-1 / 429533)

 

This
application was prepared in respect of the “PHH Operating Master Lease”.

 

This
Rights of Ownership of the Lessor is subject to various registrations:

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0272330-0014

  

  2000-09-13   1:41 p.m.

  

  

  

  Date of Constituting Act:

  1999-06-01

  	
   

  	
  Rights of Ownership of the Lessor

  

  

  

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Minolta (Montreal) Inc.

  (Lessor)

  (Crédit-Bailleur)

  

  

  St. Laurent Paperboard Inc.

  (Lessee)

  (Crédit-Preneur)

  

  Cartons St-Laurent Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2005-06-01

  	
   

  	
  1
  MINOLTA 620 DIGITAL COPIER, 1 MINOLTA EP5000 COPIER,

  

  WITH ALL ATTACHMENTS,
  ACCESSORIES AND PROCEEDS THEREOF INCLUDING INSURANCE PROCEEDS AND
  INDEMNITIES.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  registration has been requested pursuant to the dispositions of the
  transitory rules.

  

  Lease term is
  60 months and the quarterly lease payment is $5780.00 plus applicable
  taxes.

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0305879-0019

  

  2001-08-23   12:24 p.m.

  

  

  

  

  

  

  

  Date of Constituting Act:

  N/A

  	
   

  	
  Rights Resulting from a Lease

  

  

  

  

  

  

  

  

  (Droits Résultant d’un Bail)

  	
   

  	
  Praxair Canada Inc.

  (Lessor)

  (Locateur)

  

  

  

  

  

  

  Cartons St-Laurent Inc./ St. Laurent Paperboard Inc.

  (Lessee)

  (Locataire)

  	
   

  	
  2011-08-23

  	
   

  	
  All
  present and future movable property of any nature and wherever located,
  including without limitation all bulk cryogenic storage tanks used for the
  storage, filling and delivery of industrial and medical gases including,
  without limitation; argon, carbon dioxide, nitrogen, nitrous oxide and
  oxygen; any cryogenic freezer; and any and all related equipment,
  accessories, parts, components and attachments thereof.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This
  registration is a “Global” registration pursuant to article 2961.1 of the
  Civil Code of Quebec.

  	
   

  

 

 

	
  16.

  	
  A.

  	
  Name Searched:

  	
  Cartons
  St-Laurent Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Currency of Search:

  	
  1995-01-03

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  96-0069340-0010

  

  1996-06-12   2:58 p.m.

  

  

  Date of Constituting Act:

  1996-02-27

  	
   

  	
  Rights Resulting from a Lease

  

  

  

  (Droits Résultant d’un Bail)

  	
   

  	
  IBM Canada Ltée

  (Lessor)

  (Locateur)

  

  

  Les Cartons St-Laurent Inc.

  (Lessee)

  (Locataire)

  	
   

  	
  2006-05-22

  	
   

  	
  Please see next
  page “Property”.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Term of the Lease: 

  44 months

  

  Amount of the Rent:

  $12,237.00 per month.

  	
   

  

 

 

PROPERTY

 

(Registration
Number 96-0069340-0010)

1
- 9406 510 UNITE CENTRALE 9406 AND ALL ITS ACCESSORIES INCLUDING WITHOUT
RESTRICTION:

 

3
X 2609 CARTE EIA 232/V24 DEUX LIGNES

1
X 2617 ADAPT HP IEEE 802.3 ETHERNET

1
X 2619 ADAPT HP RES JETON 16 4MBPS

1
X 2623 CONTROLEUR COMMUNIC 6 LIGNES

1
X 2674 CARTE BUS OPTIQUE

1
X 2686 PROC LIAISON OPT 266 MBPS

2
X 3153 MEMOIRE PRINCIPALE 64 MO

1
X 5052 UNITE EXT STOCKAGE POUR TOUR

1
X 5070 TOUR EXTENSION UNITE CENTR 266

4
X 6050 CONTROLEUR POSTE TWINAC 6050

1
X 6141 CONTROLEUR POSTE ASCII

1
X 6390 CONTROLEUR BANDE/DISQUE

1
X 6512 DISK UNIT CONTROLLER FOR RAID

17
X 6606 UNITE DISQUE A 1,96 GO MES

 

1
- 3490 E01 3490 E01 TAPE SUBSYSTEM AND ALL ITS ACCESSORIES INCLUDING WITHOUT
RESTRICTION:

 

1
X 5145 CABLE SCSI 4,5M

1
- 7855 010 MODEM V.32

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  97-0039889-0003

  

  1997-04-07   9:30 a.m.

  

  

  

  

  

  Date of Constituting Act:

  1994-10-31

  	
   

  	
  Conventional Movable Hypothec without Delivery

  	
   

  	
  Société de Portefeuille Dorsity Inc.

  (Holder)

  

  

  

  

  Cartons St-Laurent Inc.

  (Grantor)

  	
   

  	
  2007-04-02

  	
   

  	
  Tous les biens de temps à autre dans les locaux du Locataire sis au 630
  René-Lévesque ouest, Montréal, Québec.

  	
   

  	
  $

  	
  425,000.00

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
																	

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  99-0188541-0002

  

  1999-11-08  2:03 p.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Services Financiers Wajax Ltée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2005-10-15

  	
   

  	
  Chariots élévateurs:

  

  Hyster 1999 H60XM N/S : H177B11986W

  

  Hyster 1999 H60XM N/S : H177B11891W

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  1999-10-15

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Cartons St-Laurent Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0006469-0005

   

  2000-01-12    9:05 a.m.

   

   

   

   

   

  

  Date of Constituting Act:

  1999-12-30

   

   

  	
   

  	
  Rights of Ownership of the
  Lessor

   

   

   

   

   

  

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Services Financiers OE
  Inc.

  (Lessor)

  (Crédit-Bailleur)

   

  Services Financiers OE
  Inc.

  acting under the business name

  “Crédit.Bail OE”

  (Lessor)

  (Crédit-Bailleur)

   

  Cartons St-Laurent Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2004-12-20

  	
   

  	
  2 NP6050, S/N :
  NDK11794, NDK11795

   

  1 IR330S, S/N :
  NQJ02343

   

  FINISHER-E1,
  S/N : ZRZ31163

   

  DADF-B1, S/N :
  ZSC09053

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0164135-0008

   

  2000-06-15      1:29 p.m.

   

   

   

   

   

  

  Date of Constituting Act:

  1994-11-07

   

   

  	
   

  	
  Rights of Ownership of the
  Lessor

   

   

   

   

   

  

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  General Electric Capital
  Vehicle and Equipment Leasing Inc.

  (Lessor)

  (Crédit-Bailleur)

   

   

   

  Cartons St-Laurent Inc.

  (Lessee)

  (Crédit-Preneur)

   

   

  	
   

  	
  2004-06-15

  	
   

  	
  Road Vehicle:

   

  Cat.:  01

   

  Identification Number:

  Recreational Vehicle

  1G2WJ52MXSF262634

   

  Year: 
  1995

   

  Description:  Pontiac Grand Prix.

   

   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration has been
  requested pursuant to the dispositions of the transitory rules.

   

   

  This Rights of Ownership
  of the Lessor is subject to the following registration:

   

  Rectification of
  Registration

  # 03-0599876-0001

  (see below)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  03-0599876-0001

   

  2003-11-11   9:00 a.m.

   

   

   

   

   

  

  	
   

  	
  Rectification of
  Registration

   

   

  	
   

  	
  GE Capital Vehicle and
  Equipment Leasing Inc.

  (Lessor)

   

  

  GE Capital Location de Véhicules et D’Équipements Inc.

  (Lessor)

  	
   

  	
  N/A

  	
   

  	
  The name of the Lessor
  should have been “GE Capital Vehicle and Equipment Leasing Inc.” (English version) and “GE Capital Location de
  véhicules et d’équipements Inc.” (French
  version).

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This Rectification of
  Registration relates to, among others, the following registration:

   

  Rights of Ownership of the
  Lessor

  00-0164135-0008

  (see above)

   

   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0274932-0026

   

  2000-09-15   9:00 a.m.

   

   

   

   

   

   

   

  

  Date of Constituting Act:

  1997-10-22

   

   

  	
   

  	
  Rights Resulting from a
  Lease

   

   

   

   

   

   

   

   

   

  (Droits Résultant d’un
  Bail)

   

  

  	
   

  	
  Transportaction Lease
  Systems Inc.

  (Lessor)

  (Locateur)

   

   

   

   

   

  

  Carton St-Laurent Inc.

  (Lessee)

  (Locataire)

   

   

  	
   

  	
  2005-09-12

  	
   

  	
  The universality of all vehicles,
  present and future, provided to the Lessee pursuant to the motor vehicle
  lease agreement between the Lessor and the Lessee dated as of the date
  indicated under the heading REFERENCE A L’ACTE CONSTITUTIF, and including all
  replacements, supplements, or amendments thereto, together with any
  replacement or supplementary vehicle provided to the Lessee in accordance
  with the terms of the said motor vehicle lease agreement, and including all
  accessories and equipment attached thereto from time to time.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration is a
  “Global” registration pursuant to article 2961.1 of the Civil Code of Quebec.

   

  REF: (CARTONS / ONQCS1F1871-1 / 822741)

   

   

  This Rights Resulting from
  a Lease is subject to the following registrations:

   

  Assignment of Rights

  # 01-0237818-0001

  (see below)

   

  Assignment of Rights

  # 01-0239420-0001

  (see below)

   

   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0237818-0001

   

  2001-07-06   9:00 a.m.

   

   

   

   

   

   

   

  

  Date of Constituting Act:

  1998-01-30

   

   

  	
   

  	
  Assignment of Rights

   

   

   

   

   

   

   

   

   

  (Cession d’un Droit)

   

   

  	
   

  	
  Transportaction Lease
  Systems Inc.

  (Assignor)

  (Cédant)

   

   

   

  

  King Street Funding Trust

  (Assignee)

  (Cessionnaire)

   

  King Street Funding Trust

  represented by

  Montreal Trust Company of Canada

  as Trustee

  (Assignee)

  (Cessionnaire)

   

  

  	
   

  	
  N/A

  	
   

  	
  All right, title and interest of
  Transportaction Lease Systems Inc. (the “Lessor”) in respect of all present
  and future leased schedules executed or to be executed by the Lessor and the
  lessees pursuant to the Master Lease Agreements registered under the numbers
  described hereinafter, as well as all right, title and interest of the Lessor
  under said Master Lease Agreements in respect of all said leased schedules.

   

  Registration numbers of the Master
  Lease Agreements registered at the Register of Personal and Movable Real
  Rights as per this registration.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This Assignment of Rights
  relates to, among others, the following registration:

   

  Rights Resulting from a
  Lease

  # 00-0274932-0026

  (see above)

   

   

  This Assignment of Rights
  is subject to the following registration:

   

  Modification of a
  Published Right

  # 04-0304842-0001

  (see below)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration Ceases to be Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04-0304842-0001

   

  2004-05-26   9:00 a.m.

   

   

   

   

   

   

   

  

  Date of Constituting Act:

  N/A

   

   

  	
   

  	
  Modification of a
  Published Right

   

   

   

   

   

   

   

   

   

  (Modification d’un Droit
  Publié)

   

   

  	
   

  	
  Transportaction Lease
  Systems Inc.

  (Holder)

   

   

   

   

   

   

   

  Greenspace Services Ltd.

  (Grantor)

   

  

  Barefoot Grass of Canada Inc.

  (Lessee)

  (Locataire)

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  To add debtor.

   

  REF: (GREENSPACE / ONQCS1C1937-2 /
  2839454)

   

   

  This Modification of a
  Published Right relates to, among others, the following registration:

   

  Assignment of Rights

  # 01-0237818-0001

  (see above)

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  01-0239420-0001

   

  2001-07-06  
  11:50 a.m.

   

   

   

   

   

   

   

  

  Date of Constituting Act:

  2001-06-29

   

   

  	
   

  	
  Assignment of Rights

   

   

   

   

   

   

   

   

   

  (Cession d’un Droit)

   

   

  	
   

  	
  King Street Funding Trust

  (Assignor)

  (Cédant)

   

  King Street Funding Trust

  represented by

  Montreal Trust Company of Canada

  as Trustee

  (Assignor)

  (Cédant)

   

  

  TLS Lease Administration Trust

  (Assignee)

  (Cessionnaire)

   

  TLS Lease Administration Trust

  represented by

  1462888 Ontario Inc.

  as Trustee

  (Assignee)

  (Cessionnaire)

   

   

  	
   

  	
  N/A

  	
   

  	
  All right, title
  and interest of Transportaction Lease Systems Inc. (the “Lessor”) in respect
  of all leased schedules executed by the Lessor and the lessees mentioned in
  the Master Lease Agreements registered under the numbers described
  hereinafter, until the date of this application of registration, which right,
  title and interest of the Lessor were assigned to the Assignor pursuant to an
  assignment by the Lessor to the Assignor being registered at the Register
  concurrently herewith.

   

  Registration
  numbers of the Master Lease Agreements registered at the Register of Personal
  and Movable Real Rights as per this registration.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This Assignment of Rights relates to, among others,
  the following registration:

   

  Rights Resulting from a Lease

  # 00-0274932-0026

  (see above)

   

   

  	
   

  

 

 

	
  17.

  	
  A.

  	
  Name Searched:

  	
  Stone Container
  (Canada) Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Currency of
  Search:

  	
  1995-01-03

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0229793-0015

   

  2000-08-14  
  9:00 a.m.

   

   

   

   

   

  

  Date of Constituting Act:

  1999-03-27

  	
   

  	
  Rights of Ownership of the Lessor

   

   

   

   

   

  

  (Droits de Propriété du Crédit-Bailleur)

   

   

  	
   

  	
  Corporation Financiere Teletech

  (Lessor)

  (Crédit-Bailleur)

   

   

   

  

  Stone Container (Canada) Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2005-03-26

   

   

  	
   

  	
  TELECOPIEUR tel que
  décrits au contrat entre les parties aux présentes ainsi que tous les
  accessoires, composantes, ajouts ou biens de remplacements y étant relies et
  finances par Corporation Financiere Teletech.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration has been requested pursuant to the
  dispositions of the transitory rules.

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date 

  Registration

  Ceases to be 

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  02-0026933-0007

   

  2002-01-23 
  10:55 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  IBM Canada Limitée

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2012-01-11

  	
   

  	
  Please
  see next pages “Property”.

   

   

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  Term:  24
  months commencing on May 1st, 2001.

   

  Reference to the IBM Contract:

  ICA-180722,

  Supplement:  0101.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  2001-10-03

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Stone Container (Canada) Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

PROPERTY

 

(Registration Number 02-0026933-0007)

 

(1) 9406
170 AS/400 E-SERVER, N/S: 105FCLM

 

And
all its accessories including without restriction:

 

3
X 0348 V.24/EIA232 20FT PCI

CABLE

1
X 0381 REMOTE CONTROL

PANEL
CABLE

1
X 2290 MODEL 170

PROCESSOR
64MB

1
X 2740 PCI RAID DISK UNIT

CONTROLLER

1
X 2745 PCI TWO-LINE WAN IOA

1
X 2746 PCI TWINAXIAL WS

CONTROLLER

2
X 3001 32MB MAIN STORAGE

2
X 3002 128MB MAIN STORAGE

1
X 6383 16GB 1/4-INCH

CARTRIDGE
TAPE

4
X 6807 4.19GB DISK UNIT

1
X 7102 PCI SYSTEM

EXPANSION
UNIT

 

 

PROPERTY

 

(Registration Number 02-0026933-0007)

 

(1) 9910
P15 POWERWARE 9125

    1500VA, N/S: 10J8BHC

 

(1) 9406
170 AS/400 E-SERVER*, N/S: 105396M

 

And
all its accessories including without restriction:

1
X 0032 MODEM

1
X 0348 V.24/EIA232 20 FT PCI

CABLE

1
X 2290 MODEL 170

PROCESSOR
64MB

1
X 2740 PCI RAID DISK UNIT

CONTROLLER

2
X 2746 PCI TWINAXIAL WS CONTROLLER

2
X 3001 32MB MAIN STORAGE

2
X 3002 128MB MAIN STORAGE

1
X 6383 16GB 1/4-INCH

CARTRIDGE
TAPE

3
X 6817 8.58 GB 10K RPM DISK UNIT

1
X 7102 PCI SYSTEM

EXPANSION
UNIT

 

(1) 9910
140 AS/400 CPM/UPS 1400

    VA, N/S: 1OJSADY

 

 

	
  18.

  	
  A.

  	
  Name Searched:

  	
  Emballages Stone
  (Canada) Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Currency of
  Search:

  	
  1995-01-03

  	
  3:00 p.m.
  for renewal registrations under transitional rules

  
	
   

  	
   

  	
   

  	
  2004-10-05

  	
  12:00 p.m. for all other registrations

  

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0202964-0002

   

  2000-07-20  
  10:09 a.m.

  	
   

  	
  Rights of Ownership of the Lessor

  	
   

  	
  Corporation Financiere Teletech

  (Lessor)

  (Crédit-Bailleur)

  	
   

  	
  2005-01-14

  	
   

  	
  PHTOCOPIEUR CANON
  NP6016 #NDF24214. CABINET MOBILE.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration has been requested pursuant to the
  dispositions of the transitory rules.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date of Constituting Act:

  1999-01-15

  	
   

  	
  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Emballages Stone (Canada) Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0209843-0033

   

  2000-07-26  
  10:55 a.m.

   

   

   

   

   

  

  Date of Constituting Act:

  1999-03-05

  	
   

  	
  Rights of Ownership of the Lessor

   

   

   

   

   

  

  (Droits de Propriété du Crédit-Bailleur)

  	
   

  	
  Corporation Financiere Teletech

  (Lessor)

  (Crédit-Bailleur)

   

   

   

  

  Les Emballages Stone (Canada) Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2005-08-03

  	
   

  	
  Tous les équipements,
  appareils, accessoires et autres biens meubles reliés au système téléphonique
  ou composant le système téléphonique, fourni par Bell Canada au
  crédit-preneur et situés aux places d’affaires du crédit-preneur.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration has been requested pursuant to the
  dispositions of the transitory rules.

   

   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0229793-0013

   

  2000-08-14  
  9:00 a.m.

   

   

   

   

   

  

  Date of Constituting Act:

  1999-01-15

  	
   

  	
  Rights of Ownership of the Lessor

   

   

   

   

   

  

  (Droits de Propriété du Crédit-Bailleur)

   

   

  	
   

  	
  Corporation Financiere Teletech

  (Lessor)

  (Crédit-Bailleur)

   

   

   

  

  Emballages Stone (Canada) Inc.

  (Lessee)

  (Crédit-Preneur)

  	
   

  	
  2005-01-14

  	
   

  	
  PHOTOCOPIEUR tel que
  décrits au contrat entre les parties aux présentes ainsi que tous les
  accessoires, composantes, ajouts ou biens de remplacements y étant reliés et
  financés par Corporation Financiere Teletech.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration has been requested pursuant to the
  dispositions of the transitory rules.

   

   

  	
   

  

 

 

	
  Registration Number

  and

  Date/Hour/Minute

  	
   

  	
  Nature of Right

  	
   

  	
  Parties

  	
   

  	
  Date

  Registration

  Ceases to be

  Effective

  	
   

  	
  Property

  	
   

  	
  Amount

  and

  Interest Rate

  	
   

  	
  Pre-1994 Security

  Instrument

  	
   

  	
  Other Particulars

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  00-0229793-0014

   

  2000-08-14  
  9:00 a.m.

   

   

   

   

   

  

  Date of Constituting Act:

  1999-02-11

   

  

  	
   

  	
  Rights of Ownership of the Lessor

   

   

   

   

   

  

  (Droits de Propriété du Crédit-Bailleur)

   

   

  	
   

  	
  Corporation Financiere Teletech

  (Lessor)

  (Crédit-Bailleur)

   

   

   

  

  Emballages Stone (Canada) Inc.

  (Lessee)

  (Crédit-Preneur)

   

  	
   

  	
  2005-02-10

  	
   

  	
  TELECOPIEUR tel que
  décrits au contrat entre les parties aux présentes ainsi que tous les
  accessoires, composantes, ajouts ou biens de remplacements y étant reliés et
  financés par Corporation Financiere Teletech.

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  This registration has been requested pursuant to the
  dispositions of the transitory rules.

   

   

  	
   

  

 

 

SASKATCHEWAN
SEARCH RESULTS CHART

Personal Property Registry under The
Personal Property Security Act, 1994 (Saskatchewan) (Currency date
of October 6)

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  April 21, 1998

  	
   

  	
  112076173

  	
   

  	
  *
  MacMillan Bathurst

  * MacMillan Bathurst Inc.

  * Smurfit-MBI

  	
   

  	
  * PHH Vehicle Management Services Inc.

  	
   

  	
  “Motor
  Vehicles (including without limitation, truck tractors, truck trailers, truck
  chassis or truck bodies), automotive equipment (including without limitation
  trailers, boxes and refrigeration units) and materials handling equipment
  leased by the debtor from the secured party together with all attachments
  appurtenances, accessories or replacement parts.” Proceeds “all of the
  debtors present and after acquired personal property including without
  limitation, goods, securities, instruments, documents of title, chattel
  paper, intangibles and money.” Three vehicles described by serial numbers.

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  November 25, 2002

  	
   

  	
  118821102

  	
   

  	
  *
  Smurfit-MBI

  * MBI Limited

  * MBI Limitée

  * MBI Limited/ Limitée

  	
   

  	
  * Royal Bank of Canada

  	
   

  	
  One
  Kyocera Mita KM2530 Digital Copiers S/N AAH3018099 together with all goods
  and services, parts, attachments, accessories, additions, repair parts,
  substitutions and other equipment places on or forming part of the goods
  described herein. Proceeds — all present and after acquired personal property
  that may be derived from the sale or other disposition of the collateral
  described above and any proceeds thereof.

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  July 23,
  2004

  	
   

  	
  121062513

  	
   

  	
  *Smurfit-MBI

  *Smurfit-Stone Container Canada Inc.

  *Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  Caterpillar
  Financial Services Limited

  	
   

  	
  2004
  Hyster S50XM Serial Number D18V31373B

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  September 27,
  2004

  	
   

  	
  121303341

  	
   

  	
  *Smurfit-Stone Container Canada Inc. 
 *Smurfit-MBI

  	
   

  	
  Caterpillar
  Financial Services Limited

  	
   

  	
  2004
  D187V31373B

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  May 6,
  2004

  	
   

  	
  120749421

  	
   

  	
  Smurfit-MBI

  	
   

  	
  Citicorp
  Vendor Finance, Ltd.

  	
   

  	
  14-Norstar
  T7208 Set
 9-Norstar T7100 Set
 1-Call Pilot 150
 1-Norstar Stn Mod (0X16)
 1-Talking Duet
 3-T7316E (Charcoal) Set
 1-Norstar Truck Card-4 PT U INT Y& D.I.D.
 1-Norstar Miscs Trunk Module
 1-Norstar Slim Fibr 6 Port Combo

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  April 25,
  1997

  	
   

  	
  110527916

  	
   

  	
  Stone
  Consolidated Corporation

  	
   

  	
  GE
  Capital Railcar Services Canada Inc.

  	
   

  	
  Tank
  cars

  

 

 

NOVA
SCOTIA SEARCH RESULTS CHART

Personal Property Registry under The
Personal Property Security Act (Nova Scotia)

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  November 18, 2002

  	
   

  	
  6138896

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc./ Emballages Smurfit-Stone Canada Inc.
 * Smurfit-Stone Container Canada Inc.
 * Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  *
  Caterpillar Financial Services Inc.

  	
   

  	
  2003
  Caterpillar D8R II Serial No. CAT00D8RT6YZ01211 together with all
  accessions and proceeds including goods, documents of title, chattel paper,
  security, instruments, money or intangibles or any other personal property
  received when such collateral or proceeds are sold, collected, dealt with or
  otherwise disposed of

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  November 18, 2002

  	
   

  	
  6138903

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc./ Emballages Smurfit-Stone Canada Inc.
 * Smurfit-Stone Container Canada Inc.
 * Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  * Caterpillar
  Financial Services Inc.

  	
   

  	
  2003
  Caterpillar 950G Serial No. CAT0950GK4BS00709 together with all
  accessions and proceeds including goods, documents of title, chattel paper,
  security, instruments, money or intangibles or any other personal property received
  when such collateral or proceeds are sold, collected, dealt with or otherwise
  disposed of

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  November 18, 2002

  	
   

  	
  6138912

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc./ Emballages Smurfit-Stone Canada Inc.

  * Smurfit-Stone Container Canada Inc. 

  * Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  *
  Caterpillar Financial Services Inc.

  	
   

  	
  2002
  Bobcat 453/463 r D8R II Serial No. 520012321 together with all
  accessions and proceeds including goods, documents of title, chattel paper,
  security, instruments, money or intangibles or any other personal property
  received when such collateral or proceeds are sold, collected, dealt with or
  otherwise disposed of

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  November 29, 2002

  	
   

  	
  6180642

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc./ Emballages Smurfit-Stone Canada Inc.
 * Smurfit-Stone Container Canada Inc.
 * Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  *
  Caterpillar Financial Services Inc.

  	
   

  	
  2003
  Caterpillar 950G Serial No. CAT0950GLAXX00147 together with all
  accessions and proceeds including goods, documents of title, chattel paper,
  security, instruments, money or intangibles or any other personal property
  received when such collateral or proceeds are sold, collected, dealt with or
  otherwise disposed of

  

 

 

NEW
BRUNSWICK SEARCH RESULTS CHART

Personal Property Registry under The
Personal Property Security Act (New Brunswick)

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  July 3, 2001

  	
   

  	
  7241424

  	
   

  	
  *
  Abitibi-Consolidated Inc.
 * Smurfit Canada Holdings Limited
 * Emballages Smurfit-Stone Canada Inc.
 * Smurfit-Stone Container Canada Inc.

  	
   

  	
  *
  Astenjohnson, Inc.

  	
   

  	
  Paper
  machine clothing and all other goods and materials held by debtor under
  consignment from or sold otherwise supplied or financed by secured party and
  proceeds.

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  September 14, 2001

  	
   

  	
  7504863

  	
   

  	
  * Smurfit-Stone
  Container Canada Inc.
 * Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  *
  Caterpillar Financial Services Ltd.

  	
   

  	
  Serial
  number motor vehicle

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  April 1, 2002

  	
   

  	
  8148952

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc.
 * Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  *
  Caterpillar Financial Services Ltd.

  	
   

  	
  Serial
  number motor vehicle

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  November 18, 2002

  	
   

  	
  9047079

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc.

  * Emballages Smurfit-Stone Canada Inc.

  * Smurfit-Stone Container Canada Inc. /
  Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  *
  Caterpillar Financial Services Ltd.

  	
   

  	
  Serial
  number motor vehicle and proceeds

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  November 18, 2002

  	
   

  	
  9047097

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc.

  * Emballages Smurfit-Stone Canada Inc.

  * Smurfit-Stone Container Canada Inc. /
  Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  *
  Caterpillar Financial Services Ltd.

  	
   

  	
  Serial
  number motor vehicle and proceeds

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured Parties

  	
   

  	
  Collateral/Description

  
	
  November 18, 2002

  	
   

  	
  9047113

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc.

  * Emballages Smurfit-Stone Canada Inc.

  *Smurfit-Stone Container Canada Inc. /
  Emballages Smurfit-Stone Canada Inc.

  	
   

  	
  *Caterpillar
  Financial Services Ltd.

  	
   

  	
  Serial
  number motor vehicle and proceeds

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  November 29, 2002

  	
   

  	
  9085152

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc. 

  * Emballages Smurfit-Stone Canada Inc. 

  * Smurfit-Stone Container Canada Inc. / Emballages Smurfit-Stone Canada
  Inc.

  	
   

  	
  *
  Caterpillar Financial Services Ltd.

  	
   

  	
  Serial
  number motor vehicle and proceeds

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  April 2, 2003

  	
   

  	
  9495361

  	
   

  	
  * Smurfit-Stone
  Container Canada Inc.

  *Emballages Smurfit-Stone Canada Inc. 

  *Smurfit-Stone Container Canada Inc. / Emballages Smurfit-Stone Canada
  Inc.

  	
   

  	
  *Caterpillar
  Financial Services Limited.

  	
   

  	
  Serial
  number motor vehicle and proceeds

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  July 25, 2003

  	
   

  	
  9975128

  	
   

  	
  *
  Smurfit-Stone Container Canada Inc. 

  *Emballages Smurfit-Stone Canada Inc. 

  *Smurfit-Stone Container Canada Inc. / Emballages Smurfit-Stone Canada
  Inc.

  	
   

  	
  *Caterpillar
  Financial Services Limited.

  	
   

  	
  Serial
  number motor vehicle and proceeds

  

 

 

	
  Registration Date

  	
   

  	
  Registration
  #

  	
   

  	
  Debtor(s)

  	
   

  	
  Secured
  Parties

  	
   

  	
  Collateral/Description

  
	
  October 22, 2001

  	
   

  	
  7628034

  	
   

  	
  *
  Stone Container (Canada) Inc.

  	
   

  	
  * IBM
  Canada Limited

  	
   

  	
  All
  present and after-acquired goods supplied by the secured party and proceeds

  

 

 

Schedule
7.04

 

CERTAIN
INVESTMENTS

 

	
  A.

  	
  Investments in Persons
  other than Subsidiaries:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Schiffenhaus
  Canada, Inc.

  	
   

  	
  33.33% owned by
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Serpac Containers
  Limited

  	
   

  	
  49.5% owned by
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annan & Bird
  Lithographers Ltd.

  	
   

  	
  25% owned by
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annan & Bird
  Lithographers Inc.

  	
   

  	
  25% owned by
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Schiffenhaus California
  LLC

  	
   

  	
  25% owned by SMBI Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Aspamill Inc.

  	
   

  	
  45% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Maritime Containers
  Ltd.

  	
   

  	
  35% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Maritime Paper Products
  Inc.

  	
   

  	
  100% owned by Maritime
  Containers Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ICO, Inc.

  	
   

  	
  42% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Groupement Forestier de
  Champlain Inc.

  	
   

  	
  10% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Rosenbloom
  Group, Inc.

  	
   

  	
  45% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dyne-A-Pak

  	
   

  	
  100% owned by
  Rosenbloom Group, Inc.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Associated Paper Mills
  (Ontario) Limited

  	
   

  	
  45% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Rollcraft, Inc.

  	
   

  	
  100% owned by
  Associated Paper Mills (Ontario) Limited

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Cascapedia Booming Co.
  Ltd.

  	
   

  	
  50% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Celgar Investments Inc.

  	
   

  	
  45% owned by SSC Canada

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Innovative Fiber, LLC

  	
   

  	
  29% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Las Vegas Container LLC

  	
   

  	
  50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PSJ Development L.P.

  	
   

  	
  50% owned by SSCE

  

 

 

	
   

  	
  Stone Millennium
  (China) Holdings, Ltd.

  	
   

  	
  50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Shanghai Stone Millennium Paper and Packaging
  Industries, Ltd.

  	
   

  	
  47.5% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Qingdao Stone
  Millennium Paper and Packaging Industries, Inc.

  	
   

  	
  25% owned by Stone
  Millennium (China) Holdings, Ltd.;

  75% owned by Shanghai Stone Millennium Paper and Packaging Industries, Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Suzhou Stone Millennium
  Packaging & Paper Industries, Co. Ltd.

  	
   

  	
  25% owned by Stone
  Millennium (China) Holdings, Ltd.;

  75% owned by Shanghai Stone Millennium Paper and Packaging Industries, Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dongguan Stone
  Millennium Paper and Packaging Industries, Ltd.

  	
   

  	
  100% owned by Stone
  Millennium (China) Holdings, Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stone Container (Hong Kong) Limited

  	
   

  	
  50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Trans-Seal Corporation

  	
   

  	
  50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Stone Container Japan
  Company Ltd.

  	
   

  	
  50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Valores Universales
  S.A. de C.V.

  	
   

  	
  49% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Venepal S.A.C.A.

  	
   

  	
  32% owned by Valores
  Universales S.A. de C.V.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Tradepak Internacional
  S.A. de C.V.

  	
   

  	
  24.5% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Converpap, S.A. de C.V.

  	
   

  	
  99.98% owned by
  Tradepak Internacional S.A. de C.V.

  

 

 

	
   

  	
  Tradepak International, Inc.

  	
   

  	
  100% owned by Tradepak Internacional S.A. de C.V.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Wakecon Associates

  	
   

  	
  50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Groveton Paper Board, Inc.

  	
   

  	
  37.9% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Smurfit/CIMIC Holdings Limited

  	
   

  	
  42.50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CIMIC Packaging Paper Company Ltd.

  	
   

  	
  100% owned by Smurfit/CIMIC Holdings Limited

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Zhejiang CIMIC Nanyang Paper Products Co., Ltd.

  	
   

  	
  100% owned by Smurfit/CIMIC Holdings Limited

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WCO Enterprises

  	
   

  	
  50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Dalton Paper Products, Inc.

  	
   

  	
  50% owned by SSCE

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Xia Men Stone Millennium Paper and Packaging
  Industries, Ltd.

  	
   

  	
  25% owned by Stone Millennium (China) Holdings,
  Limited;

  75% owned by Shanghai Stone Millennium Paper and Packaging Industries, Ltd.

  
	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  Intercompany loans and advances referenced on Schedule
  7.01.

  
	
   

  	
   

  
	
  C.

  	
  JSCUS Investments

  

 

                

 

	
   

  	
   

  	
  Balance as of

  	
   

  
	
   

  	
   

  	
  September 30, 2004

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Investments:

  	
   

  	
   

  	
   

  
	
  Groveton

  	
   

  	
  3,525,000

  	
   

  
	
  Cimic Holdings

  	
   

  	
  7,570,920

  	
   

  
	
  Cimic Holdings
  Reserve

  	
   

  	
  -7,570,920

  	
   

  
	
  Timber Note
  Holdings

  	
   

  	
  43,737,000

  	
   

  
	
  Wakecon
  Associates

  	
   

  	
  147,000

  	
   

  
	
   

  	
   

  	
  47,409,000

  	
   

  

 

 

Schedule
7.12

 

SUBSIDIARY
DIVIDEND EXCEPTIONS

 

1.                                       Dividend and distribution restrictions
contained in corporate or limited liability company laws or charter documents
applicable to any Person.

 

2.                                       Dividend and distribution restrictions
contained in that certain Reimbursement Agreement dated as of December 1,
1997, between Comerica Bank and Innovative Packaging Corp. relating to
$5,000,000 Redevelopment Authority of the City of Milwaukee, Wisconsin Variable
Rate Demand Industrial Development Revenue Bonds.  Series 1997.Exhibit
10.1

 

EXECUTION VERSION

 

CREDIT AGREEMENT

 

among

 

SMURFIT-STONE CONTAINER
CORPORATION,

a Debtor and Debtor-in-Possession under
Chapter 11 of the Bankruptcy Code,

 

as the Parent and a U.S. Guarantor,

 

SMURFIT-STONE
CONTAINER ENTERPRISES, INC.,

a Debtor and Debtor-in-Possession under
Chapter 11 of the Bankruptcy Code,

 

as U.S. Borrower,

 

SMURFIT-STONE
CONTAINER CANADA INC.,

a company operating pursuant to a proceeding
under the CCAA and a Debtor and Debtor-in-Possession under Chapter 11 of the
Bankruptcy Code,

 

as Canadian Borrower,

 

THE OTHER LOAN PARTIES PARTY
HERETO,

 

THE LENDERS PARTY HERETO,

 

JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent and Collateral Agent,

 

and

 

JPMORGAN CHASE BANK, N.A.,
TORONTO BRANCH,

 

as Canadian Administrative Agent and Canadian
Collateral Agent,

 

 

J.P. MORGAN SECURITIES INC. and DEUTSCHE BANK
SECURITIES INC.

 

as Co-Lead Arrangers,

 

J.P. MORGAN SECURITIES INC., DEUTSCHE BANK
SECURITIES INC.,

GE CAPITAL MARKETS, INC. and BANC OF AMERICA
SECURITIES LLC

 

as Joint Bookrunners,

 

DEUTSCHE BANK SECURITIES INC.,

 

as Syndication Agent,

 

and

 

GENERAL ELECTRIC CAPITAL CORPORATION and BANK
OF AMERICA, N.A.

 

as Co-Documentation Agents

 

 

Dated as of January 28,
2009

 

 

CREDIT
AGREEMENT

TABLE OF CONTENTS

 

	
  ARTICLE
  1.

  	
  DEFINITIONS

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 1.1

  	
  Defined Terms

  	
  4

  
	
  Section 1.2

  	
  Terms Generally

  	
  45

  
	
  Section 1.3

  	
  Accounting Terms; GAAP

  	
  45

  
	
  Section 1.4

  	
  Exchange Rate Calculations

  	
  45

  
	
  Section 1.5

  	
  Québec Matters

  	
  46

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  2.

  	
  AMOUNT
  AND TERMS OF CREDIT

  	
  47

  
	
   

  	
   

  	
   

  
	
  Section 2.1

  	
  Commitment of the Lenders

  	
  47

  
	
  Section 2.2

  	
  Availability of U.S. Loans

  	
  48

  
	
  Section 2.3

  	
  Availability of Canadian Loans

  	
  48

  
	
  Section 2.4

  	
  Letters of Credit

  	
  49

  
	
  Section 2.5

  	
  Issuance

  	
  52

  
	
  Section 2.6

  	
  Nature of Letter of Credit Obligations Absolute

  	
  53

  
	
  Section 2.7

  	
  Making of Loans and Disbursements

  	
  53

  
	
  Section 2.8

  	
  Repayment of Loans and Unreimbursed Draws; Evidence of Debt

  	
  58

  
	
  Section 2.9

  	
  Interest on Loans

  	
  59

  
	
  Section 2.10

  	
  Default Interest

  	
  60

  
	
  Section 2.11

  	
  Optional Termination or Reduction of Commitment

  	
  61

  
	
  Section 2.12

  	
  Alternate Rate of Interest

  	
  61

  
	
  Section 2.13

  	
  Refinancing of Loans

  	
  62

  
	
  Section 2.14

  	
  Mandatory Prepayment; Commitment Termination

  	
  64

  
	
  Section 2.15

  	
  Optional Prepayment of Loans; Reimbursement of Lenders

  	
  68

  
	
  Section 2.16

  	
  Reserve Requirements; Change in Circumstances

  	
  71

  
	
  Section 2.17

  	
  Change in Legality

  	
  73

  
	
  Section 2.18

  	
  Pro Rata Treatment, etc.

  	
  73

  
	
  Section 2.19

  	
  Taxes

  	
  74

  
	
  Section 2.20

  	
  Certain Fees

  	
  77

  
	
  Section 2.21

  	
  Commitment Fee

  	
  77

  
	
  Section 2.22

  	
  Letter of Credit Fees

  	
  77

  
	
  Section 2.23

  	
  Nature of Fees

  	
  78

  
	
  Section 2.24

  	
  Priority and Liens

  	
  78

  
	
  Section 2.25

  	
  Use of Cash Collateral

  	
  84

  
	
  Section 2.26

  	
  Right of Set-Off

  	
  84

  
	
  Section 2.27

  	
  Security Interest in Collateral Accounts

  	
  85

  
	
  Section 2.28

  	
  Payment of Obligations

  	
  85

  
	
  Section 2.29

  	
  No Discharge; Survival of Claims

  	
  85

  
	
  Section 2.30

  	
  Fifteen Month Facility Extension Option

  	
  85

  
	
  Section 2.31

  	
  Eighteen Month Facility Extension Option

  	
  86

  
	
  Section 2.32

  	
  Mitigation Obligations; Replacement of Lenders

  	
  87

  
	
  Section 2.33

  	
  Defaulting Lenders

  	
  88

  

 

i

 

	
  ARTICLE
  3.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  90

  
	
   

  	
   

  	
   

  
	
  Section 3.1

  	
  Organization and Authority

  	
  90

  
	
  Section 3.2

  	
  Due Execution

  	
  90

  
	
  Section 3.3

  	
  Statements Made

  	
  91

  
	
  Section 3.4

  	
  Financial Statements

  	
  91

  
	
  Section 3.5

  	
  Ownership

  	
  92

  
	
  Section 3.6

  	
  Liens

  	
  92

  
	
  Section 3.7

  	
  Compliance with Law

  	
  92

  
	
  Section 3.8

  	
  Insurance

  	
  92

  
	
  Section 3.9

  	
  The Orders

  	
  93

  
	
  Section 3.10

  	
  Use of Proceeds

  	
  93

  
	
  Section 3.11

  	
  Litigation

  	
  93

  
	
  Section 3.12

  	
  Intellectual Property

  	
  93

  
	
  Section 3.13

  	
  Taxes

  	
  93

  
	
  Section 3.14

  	
  Investment Company Act; Other Regulations

  	
  94

  
	
  Section 3.15

  	
  ERISA; Employee Matters

  	
  94

  
	
  Section 3.16

  	
  Material Subsidiaries

  	
  95

  
	
  Section 3.17

  	
  Receivables Securitization Indebtedness

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4.

  	
  CONDITIONS
  OF LENDING

  	
  95

  
	
   

  	
   

  	
   

  
	
  Section 4.1

  	
  Conditions Precedent to Initial Loans

  	
  95

  
	
  Section 4.2

  	
  Conditions Precedent to Each Loan and Each Letter of Credit

  	
  99

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5.

  	
  AFFIRMATIVE
  COVENANTS

  	
  100

  
	
   

  	
   

  	
   

  
	
  Section 5.1

  	
  Financial Statements, Reports, etc.

  	
  100

  
	
  Section 5.2

  	
  Existence

  	
  103

  
	
  Section 5.3

  	
  Insurance

  	
  103

  
	
  Section 5.4

  	
  Obligations and Taxes

  	
  104

  
	
  Section 5.5

  	
  Notice of Event of Default, etc.

  	
  104

  
	
  Section 5.6

  	
  Access to Books and Records; Collateral Reviews and Appraisals

  	
  104

  
	
  Section 5.7

  	
  Maintenance of Concentration Account; Cash Dominion

  	
  105

  
	
  Section 5.8

  	
  Borrowing Base Certificate

  	
  106

  
	
  Section 5.9

  	
  Compliance with Laws

  	
  107

  
	
  Section 5.10

  	
  Environmental Laws

  	
  107

  
	
  Section 5.11

  	
  Additional Collateral; Further Assurances

  	
  107

  
	
  Section 5.12

  	
  Material Contracts

  	
  108

  
	
  Section 5.13

  	
  Receivables Securitization Programs

  	
  108

  
	
  Section 5.14

  	
  Restructuring Advisors

  	
  108

  
	
  Section 5.15

  	
  Public Rating

  	
  108

  
	
  Section 5.16

  	
  Use of Proceeds

  	
  108

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6.

  	
  NEGATIVE
  COVENANTS

  	
  109

  
	
   

  	
   

  	
   

  
	
  Section 6.1

  	
  Liens

  	
  109

  

 

ii

 

	
  Section 6.2

  	
  Merger, etc.

  	
  109

  
	
  Section 6.3

  	
  Indebtedness

  	
  109

  
	
  Section 6.4

  	
  Capital Expenditures

  	
  110

  
	
  Section 6.5

  	
  EBITDA

  	
  110

  
	
  Section 6.6

  	
  Minimum Liquidity

  	
  111

  
	
  Section 6.7

  	
  Guarantees and Other Liabilities

  	
  111

  
	
  Section 6.8

  	
  Chapter 11/CCAA Claims

  	
  111

  
	
  Section 6.9

  	
  Dividends; Capital Stock

  	
  111

  
	
  Section 6.10

  	
  Transactions with Affiliates

  	
  111

  
	
  Section 6.11

  	
  Investments, Loans and Advances

  	
  112

  
	
  Section 6.12

  	
  Disposition of Assets

  	
  112

  
	
  Section 6.13

  	
  Nature of Business

  	
  113

  
	
  Section 6.14

  	
  Restrictive Agreements among Loan Parties

  	
  113

  
	
  Section 6.15

  	
  Right of Subrogation among Loan Parties

  	
  113

  
	
  Section 6.16

  	
  Derivative Agreements

  	
  113

  
	
  Section 6.17

  	
  Reorganization Plan

  	
  113

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7.

  	
  EVENTS
  OF DEFAULT

  	
  113

  
	
   

  	
   

  	
   

  
	
  Section 7.1

  	
  Events of Default

  	
  113

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  8.

  	
  THE
  AGENTS

  	
  118

  
	
   

  	
   

  	
   

  
	
  Section 8.1

  	
  Administration

  	
  118

  
	
  Section 8.2

  	
  Advances and Payments

  	
  118

  
	
  Section 8.3

  	
  Sharing of Setoffs

  	
  118

  
	
  Section 8.4

  	
  Agreement of Required Lenders

  	
  119

  
	
  Section 8.5

  	
  Liability of Agents

  	
  119

  
	
  Section 8.6

  	
  Reimbursement and Indemnification

  	
  120

  
	
  Section 8.7

  	
  Rights of Agents

  	
  120

  
	
  Section 8.8

  	
  Other Duties, etc.

  	
  121

  
	
  Section 8.9

  	
  Independent Lenders

  	
  121

  
	
  Section 8.10

  	
  Notice of Transfer

  	
  121

  
	
  Section 8.11

  	
  Successor Agents

  	
  121

  
	
  Section 8.12

  	
  Quebec Security

  	
  121

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  9.

  	
  MISCELLANEOUS

  	
  122

  
	
   

  	
   

  	
   

  
	
  Section 9.1

  	
  Notices

  	
  122

  
	
  Section 9.2

  	
  Survival of Agreement, Representations and Warranties, etc.

  	
  123

  
	
  Section 9.3

  	
  Successors and Assigns

  	
  124

  
	
  Section 9.4

  	
  Confidentiality

  	
  127

  
	
  Section 9.5

  	
  Expenses

  	
  128

  
	
  Section 9.6

  	
  Indemnity

  	
  129

  
	
  Section 9.7

  	
  Choice of Law

  	
  130

  
	
  Section 9.8

  	
  No Waiver

  	
  130

  
	
  Section 9.9

  	
  Extension of Maturity

  	
  130

  

 

iii

 

	
  Section 9.10

  	
  Amendments, etc.

  	
  130

  
	
  Section 9.11

  	
  Severability

  	
  131

  
	
  Section 9.12

  	
  Headings

  	
  132

  
	
  Section 9.13

  	
  Execution in Counterparts

  	
  132

  
	
  Section 9.14

  	
  Prior Agreements; Inconsistencies

  	
  132

  
	
  Section 9.15

  	
  Further Assurances

  	
  132

  
	
  Section 9.16

  	
  Waiver of Jury Trial

  	
  132

  
	
  Section 9.17

  	
  Subordination of Intercompany Indebtedness

  	
  132

  
	
  Section 9.18

  	
  Certain Post Closing Matters

  	
  133

  
	
  Section 9.19

  	
  USA Patriot Act

  	
  136

  
	
  Section 9.20

  	
  Judgment Currency

  	
  136

  
	
  Section 9.21

  	
  Several Obligations; Nonreliance; Violation of Law

  	
  137

  
	
  Section 9.22

  	
  Canadian Anti-Money Laundering Legislation

  	
  137

  
	
  Section 9.23

  	
  Conversion

  	
  137

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10.

  	
  Guaranty

  	
  141

  
	
   

  	
   

  	
   

  
	
  Section 10.1

  	
  U.S. Guaranty

  	
  141

  
	
  Section 10.2

  	
  Canadian Guaranty

  	
  141

  
	
  Section 10.3

  	
  Guaranty of Payment

  	
  142

  
	
  Section 10.4

  	
  No Discharge or Diminishment of Guaranty

  	
  142

  
	
  Section 10.5

  	
  Defenses Waived

  	
  143

  
	
  Section 10.6

  	
  Rights of Subrogation

  	
  143

  
	
  Section 10.7

  	
  Reinstatement; Stay of Acceleration

  	
  143

  
	
  Section 10.8

  	
  Information

  	
  144

  
	
  Section 10.9

  	
  Termination

  	
  144

  
	
  Section 10.10

  	
  Taxes

  	
  144

  
	
  Section 10.11

  	
  Maximum Liability

  	
  144

  
	
  Section 10.12

  	
  Contribution

  	
  144

  
	
  Section 10.13

  	
  Liability Cumulative

  	
  145

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11.

  	
  Collection
  Allocation Mechanism

  	
  145

  
	
   

  	
   

  	
   

  
	
  Section 11.1

  	
  Implementation of CAM

  	
  145

  
	
  Section 11.2

  	
  Letters of Credit

  	
  146

  
	
  Section 11.3

  	
  Conversion

  	
  147

  
	
   

  
	
  Annex A-1 — Canadian Revolving Commitment
  Amounts

  
	
  Annex A-2 — U.S. Revolving Commitment
  Amounts

  
	
  Annex A-3 — U.S. Term Loan Commitment
  Amounts

  
	
  Annex A-4 — Canadian Term Loan Commitment
  Amounts

  
	
   

  
	
  Exhibit A-1 — Form of U.S.
  Interim Order

  
	
  Exhibit A-2 — Form of Initial
  Order

  
	
  Exhibit A-3 — Form of Final Order

  
	
  Exhibit B-1 — Form of Security
  and Pledge Agreement

  

 

iv

 

Exhibit B-2 — Form of Canadian Security Agreement

Exhibit C-1 — Form of Daily/Weekly Borrowing Base Certificate

Exhibit C-2 — Form of Monthly Borrowing Base Certificate

Exhibit D — Form of Opinion of Counsel

Exhibit E — Form of Assignment and Acceptance

Exhibit F — Form of Loan Party Joinder Agreement

Exhibit G — Form of Compliance Certificate

 

Schedule 1.1 — Eligible Equipment

Schedule 1.2 — Eligible Real Property

Schedule 2.24 — Non-Primed Liens

Schedule 3.5 — Subsidiaries

Schedule 3.6 — Liens

Schedule 3.7 — Environmental Matters

Schedule 3.12 — Intellectual Property

Schedule 4.1 — Closing Documents

Schedule 6.3 — Indebtedness

Schedule 6.11 — Other Investments

Schedule 6.12 — Permitted Asset Sales

Schedule 6.14 — Loan Party
Transaction Restrictions

 

v

 

CREDIT AGREEMENT
 Dated as of January 28, 2009

 

CREDIT AGREEMENT, dated as of January 28,
2009, among SMURFIT-STONE CONTAINER
ENTERPRISES, INC., a Delaware corporation, a debtor and
debtor-in-possession in a case pending under Chapter 11 of the Bankruptcy Code
(“U.S. Borrower”), SMURFIT-STONE CONTAINER CANADA INC., a company continued under the Companies Act
(Nova Scotia), a company operating pursuant to a proceeding under the
CCAA, and a debtor and debtor in possession in a case pending under Chapter 11
of the Bankruptcy Code (“Canadian Borrower,” and together with
the U.S. Borrower, the “Borrowers”),
SMURFIT-STONE CONTAINER CORPORATION,
a Delaware corporation, a debtor and debtor-in-possession in a case pending
under Chapter 11 of the Bankruptcy Code (“Parent”),
the other Loan Parties party hereto, the Lenders party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent and
Collateral Agent, and JPMORGAN CHASE BANK, N.A.,
TORONTO BRANCH, as Canadian Administrative Agent and Canadian
Collateral Agent.

 

INTRODUCTORY
STATEMENT

 

WHEREAS, on January 26, 2009, the Loan
Parties filed voluntary petitions with the Bankruptcy Court initiating the U.S.
Cases and have continued in the possession of their assets and in the
management of their businesses pursuant to Sections 1107 and 1108 of the
Bankruptcy Code; and

 

WHEREAS, on January 26, 2009, the
Canadian Loan Parties (other than Smurfit-MBI and SLP Finance General
Partnership) commenced the Canadian Cases in the Canadian Court under the CCAA;
and

 

WHEREAS, on January 26, 2009,
Smurfit-MBI and SLP Finance General Partnership commenced recognition
proceedings under the Bankruptcy and Insolvency Act (Canada); and

 

WHEREAS, the Borrowers have applied to the
Lenders for a credit facility in an aggregate principal amount of
US$750,000,000 (subject to the terms and conditions of this Agreement)
consisting of (i) a US$250,000,000 revolving credit and letter of credit
facility available in Dollars to the U.S. Borrower or the Canadian Borrower; (ii) a
US$400,000,000 term loan facility available in Dollars to the U.S. Borrower; (iii) a
US$65,000,000 revolving credit and letter of credit facility available in
Dollars or Canadian Dollars to the U.S. Borrower or the Canadian Borrower; and (iv) a
US$35,000,000 term loan facility available in Dollars to the Canadian Borrower;
and

 

WHEREAS, the proceeds of the Loans will be
used for (i) working capital, Letters of Credit and Capital Expenditures; (ii) other
general corporate purposes of the Loan Parties (including intercompany loans to
the extent permitted by this Agreement); (iii) for the refinancing in full
of Indebtedness outstanding under the Receivables Securitization Programs; (iv) payment
of any related transaction costs, fees and expenses; and (v) the costs of
administration of the Cases, all as provided for herein; and

 

1

 

WHEREAS, to provide for the repayment of the
Loans, the reimbursement of any drafts drawn under the Letters of Credit and
the payment of the other Secured Obligations of the Loan Parties, the Loan
Parties will provide to the Agents for the benefit of the Secured Parties the
following (each as more fully described herein):

 

(a)                                  With
respect to the Secured Obligations of the U.S. Loan Parties and the Canadian
Borrower:

 

(1)                                  in
the U.S. Cases pursuant to Section 364(c)(1) of the Bankruptcy Code,
an allowed Superpriority Claim payable from and having recourse to all
pre-petition and post-petition property of the estates of the U.S. Loan Parties
and the Canadian Borrower and all proceeds thereof (including, upon entry of
the Final Order, any proceeds of Avoidance Actions);

 

(2)                                  in
the U.S. Cases pursuant to Section 364(c)(2) of the Bankruptcy Code,
a perfected first priority Lien on all unencumbered property of the U.S. Loan
Parties and the Canadian Borrower (including, upon entry of the Final Order,
any proceeds of Avoidance Actions) and on all cash maintained in any Collateral
Account and any investments of the funds contained therein, provided that
amounts in the Collateral Accounts shall not be subject to the Carve-Out or the
CCAA Charges;

 

(3)                                  in
the U.S. Cases pursuant to Section 364(c)(3) of the Bankruptcy Code,
a perfected junior Lien upon all property of the U.S. Loan Parties and the Canadian
Borrower that is subject to valid and perfected Liens in existence on the
Filing Date or that is subject to valid Liens in existence on the Filing Date
that are perfected subsequent to the Filing Date as permitted by Section 546(b) of
the Bankruptcy Code (other than certain property that is subject to the
existing Liens that secure obligations under the Pre-Petition Credit Agreement,
which Liens shall be primed by the Liens granted pursuant to Section 364(d)(1) of
the Bankruptcy Code);

 

(4)                                  in
the U.S. Cases pursuant to Section 364(d)(1) of the Bankruptcy Code,
a perfected first priority, senior priming Lien on all of the property of the
U.S. Loan Parties and the Canadian Borrower (including, without limitation,
cash, inventory, receivables, rights under license agreements, property, plant
and equipment and the residual interest of the U.S. Loan Parties and the
Canadian Borrower in any Receivables Securitization Programs) that is subject
to the Primed Liens, which Primed Liens shall be primed by and made subject and
subordinate to the perfected first priority senior priming Liens to be granted
to the Administrative Agent, which senior priming Liens in favor of the
Administrative Agent shall also prime any Liens granted after the commencement
of the Cases to provide adequate protection Liens in respect of any of the
Primed Liens, but shall not prime (1) Non-Primed Liens which secure the
Calpine Debt or (2) other Non-Primed Liens solely to the extent such
Non-Primed Liens secure claims in an aggregate amount less than or equal to
US$60,000,000; and

 

(5)                                  in
the Canadian Cases, pursuant to an order of the Canadian Court, in respect of
the Secured Obligations of the Canadian Borrower, a CCAA DIP Lenders’ Charge
over all of the present and future assets of the Canadian Borrower with
priority over all existing Liens and security, including the Primed Liens; and

 

2

 

(b)                                 With
respect to the Secured Obligations of the Canadian Loan Parties:

 

(1)                                  in
the U.S. Cases pursuant to Section 364(c)(1) of the Bankruptcy Code,
an allowed Superpriority Claim payable from and having recourse to all
pre-petition and post-petition property of the estates of the Canadian Loan
Parties and all proceeds thereof (including, upon entry of the Final Order, any
proceeds of Avoidance Actions);

 

(2)                                  in
the U.S. Cases pursuant to Section 364(c)(2) of the Bankruptcy Code,
a perfected first priority Lien on all unencumbered property of the Canadian
Loan Parties (including, upon entry of the Final Order, any proceeds of
Avoidance Actions) and on all cash maintained in any Collateral Account and any
investments of the funds contained therein, provided that amounts in the
Collateral Accounts shall not be subject to the Carve-Out or the CCAA Charges;

 

(3)                                  in
the U.S. Cases pursuant to Section 364(c)(3) of the Bankruptcy Code,
a perfected junior Lien upon all property of the Canadian Loan Parties that is
subject to valid and perfected Liens in existence on the Filing Date or that is
subject to valid Liens in existence on the Filing Date that are perfected
subsequent to the Filing Date as permitted by Section 546(b) of the
Bankruptcy Code (other than certain property that is subject to the existing
Liens that secure obligations under the Pre-Petition Credit Agreement, which
liens shall be primed by the liens to be granted to the Administrative Agent
pursuant to Section 364(d)(1) of the Bankruptcy Code);

 

(4)                                  in
the U.S. Cases pursuant to Section 364(d)(1) of the Bankruptcy Code,
a perfected first priority, senior priming Lien on all of the property of the
Canadian Loan Parties (including, without limitation, cash, inventory,
receivables, rights under license agreements, property, plant and equipment and
the residual interest of the Canadian Loan Parties in any Receivables
Securitization Programs) that is subject to the Primed Liens, which Primed
Liens shall be primed by and made subject and subordinate to the perfected
first priority senior priming Liens to be granted to the Administrative Agent,
which senior priming Liens in favor of the Administrative Agent shall also
prime any Liens granted after the commencement of the Cases to provide adequate
protection Liens in respect of any of the Primed Liens, but shall not prime (1) Non-Primed
Liens which secure the Calpine Debt or (2) other Non-Primed Liens solely
to the extent such Non-Primed Liens secure claims in an aggregate amount less
than or equal to US$60,000,000; and

 

(5)                                  in
the Canadian Cases, pursuant to an order of the Canadian Court, the CCAA DIP
Lenders’ Charge over all of the present and future assets of the Canadian Loan
Parties with priority over all existing liens and security, including the
Primed Liens;

 

WHEREAS, all of the claims and Liens granted
hereunder to the Agents for the benefit of the Secured Parties in the U.S.
Cases shall be subject to the Carve-Out to the extent provided in Section 2.24
and in the Canadian Cases shall be subject to the CCAA Charges to the extent
provided in Section 2.24.

 

Accordingly, the parties hereto hereby agree
as follows:

 

3

 

ARTICLE
1.    DEFINITIONS

 

Section 1.1             Defined Terms.  As
used in this Agreement, the following terms shall have the meanings specified
below:

 

“ABR Loan”
shall mean any Loan bearing interest at a rate determined by reference to the
Alternate Base Rate in accordance with the provisions of ARTICLE 2.

 

“Account”
has the meaning specified in Article 9 of the UCC or the PPSA, as
applicable, and shall include, without limitation, any right to payment owed to
any Person arising out of the sale of goods or services by such Person.

 

“Account Debtor” shall mean, with respect to
any Account, the obligor with respect to such Account.

 

“Additional Credit”
shall have the meaning given such term in Section 4.2(d).

 

“Adjusted LIBO Rate”
shall mean, with respect to any Eurodollar Borrowing for any Interest Period,
an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of
1.0%) equal to the greater of (a) 3.5% and (b) (i) the LIBO Rate
in effect for such Interest Period multiplied by (ii) the Statutory Reserve
Rate.  For purposes hereof, the term “LIBO Rate” shall mean the rate appearing on
Reuters Screen LIBOR01 Page (or on any successor or substitute page of
such service, or any successor to or substitute for such service, providing
rate quotations comparable to those currently provided on such page of
such service, as determined by the Administrative Agent from time to time for
purposes of providing quotations of interest rates applicable to dollar
deposits in the London interbank market) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period, as the rate for dollar deposits with a maturity comparable to such
Interest Period.  In the event that such
rate is not available at such time for any reason, then the “LIBO Rate” with
respect to such Eurodollar Borrowing for such Interest Period shall be the rate
at which dollar deposits of US$5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Administrative
Agent in immediately available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

 

“Administration Charge”
shall have the meaning given such term in Section 2.24.

 

“Administrative Agent”
shall mean JPMorgan Chase Bank, N.A., in its capacity as administrative agent
for the Lenders hereunder.

 

“Administrative
Questionnaire” shall mean an administrative questionnaire in a
form supplied by the Administrative Agent.

 

“Affiliate”
shall mean, as to any Person, any other Person which, directly or indirectly,
is in control of, is controlled by, or is under common control with, such
Person.  For purposes of this definition,
a Person (a “Controlled Person”)
shall be deemed to be “controlled

 

4

 

by”
another Person (a “Controlling Person”) if
the Controlling Person possesses, directly or indirectly, power to direct or
cause the direction of the management and policies of the Controlled Person
whether by contract or otherwise.

 

“Agents”
shall mean the Administrative Agent, the Canadian Administrative Agent, the
Collateral Agent, and the Canadian Collateral Agent, together, and “Agent” means any one of such Agents
individually.

 

“Aggregate Credit Exposure”
shall mean, at any time, the aggregate Credit Exposure of all the Lenders.

 

“Agreement”
shall mean this Credit Agreement, as the same may from time to time be amended,
restated, modified or supplemented.

 

“Alternate Base Rate”
shall mean, for any day, a rate per annum equal to the greatest of (a) 4.5%,
(b) the Prime Rate in effect on such day, (c) the Federal Funds
Effective Rate in effect on such day plus 1⁄2 of 1% and (d) the Adjusted
LIBO Rate for a one month Interest Period on such day (or if such day is not a
Business Day, the immediately preceding Business Day) plus 1%, provided that,
for the avoidance of doubt, the Adjusted LIBO Rate for any day shall be based
on the rate appearing on the Reuters Screen LIBOR01 Page (or on any
successor or substitute page) at approximately 11:00 a.m. London time on
such day (without any rounding).  For
purposes hereof, “Prime Rate” shall mean
the rate of interest per annum publicly announced from time to time by the
Administrative Agent as its prime rate in effect at its principal office in New
York City (or, in the case of Loans or Borrowings denominated in Dollars made
by the Canadian Lenders pursuant to the Canadian Commitments, the rate per
annum announced from time to time by the Canadian Administrative Agent as its
U.S. base rate for commercial loans in effect at its office in Toronto); each
change in the Prime Rate shall be effective on the date such change is publicly
announced.  If the Administrative Agent
shall have determined (which determination shall be conclusive absent manifest
error) that it is unable to ascertain the Federal Funds Effective Rate for any
reason, including the inability or failure of the Administrative Agent to
obtain sufficient quotations in accordance with the terms hereof, the Alternate
Base Rate shall be determined without regard to clause (c) of the first
sentence of this definition, as appropriate, until the circumstances giving
rise to such inability no longer exist. 
Any change in the Alternate Base Rate due to a change in the Prime Rate,
the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective
from and including the effective date of such change in the Prime Rate, the
Federal Funds Effective Rate or the Adjusted LIBO Rate, respectively.

 

“Applicable Agent”
shall mean (a) with respect to the Canadian Commitments, extensions of
credit thereunder, payments in respect thereof and other matters pertaining
thereto, the Canadian Administrative Agent, (b) with respect to the U.S.
Commitments, extensions of credit thereunder, payments in respect thereof and
other matters pertaining thereto, the Administrative Agent and (c) with
respect to any action or determination under any Collateral Document or
Collateral thereunder, the Agent to which a security interest is granted under
such Collateral Document; provided that the Administrative Agent shall be the
Applicable Agent for all purposes not involving a particular Class of
Commitments, extensions of credit thereunder, 

 

5

 

payments
thereunder or other matters pertaining thereto, or actions or determinations
under a particular Collateral Document.

 

“Applicable
Margin” shall mean, for any day, with respect to any ABR Loan,
Eurodollar Loan, Canadian Prime Rate Loan, Discount Rate Loan, or with respect
to the Letters of Credit issued hereunder, as the case may be, the applicable
rate per annum set forth below under the caption “ABR and Canadian Prime Rate
Spread”, “Eurodollar and Discount Rate Spread”, “Letter of Credit Fees” or “Drafts
Drawn under Letters of Credit”, as the case may be:

 

	
  Pricing Level

  	
   

  	
  ABR and Canadian

  Prime Rate Spread

  	
   

  	
  Eurodollar

  and Discount

  Rate Spread

  	
   

  	
  Letter of

  Credit Fees

  	
   

  	
  Drafts Drawn

  under Letters

  of Credit

  	
   

  
	
  1

  	
   

  	
  5.5

  	
  %

  	
  6.5

  	
  %

  	
  6.5

  	
  %

  	
  5.5

  	
  %

  
	
  2

  	
   

  	
  6.5

  	
  %

  	
  7.5

  	
  %

  	
  7.5

  	
  %

  	
  6.5

  	
  %

  
	
  3

  	
   

  	
  7.5

  	
  %

  	
  8.5

  	
  %

  	
  8.5

  	
  %

  	
  7.5

  	
  %

  

 

The
Applicable Margin shall be determined based on Pricing Level 1; provided,
that from and after January 28, 2010 (assuming the proper exercise of the
Fifteen Month Facility Extension Option), the Applicable Margin shall be
determined based on Pricing Level 2; provided, further, that from
and after April 28, 2010 (assuming the proper exercise of the Eighteen
Month Facility Extension Option), the Applicable Margin shall be determined based
on Pricing Level 3.  Notwithstanding
anything to the contrary contained in this definition, the determination of the
Applicable Margin for any period shall be subject to the provisions of Section 2.10.

 

“Applicable Percentage”
shall mean, with respect to (a) any U.S. Revolving Lender, a percentage
equal to a fraction the numerator of which is such Lender’s U.S. Revolving
Commitment and the denominator of which is the aggregate U.S. Revolving
Commitment of all U.S. Revolving Lenders (if the U.S. Revolving Commitments
have terminated or expired, the Applicable Percentages shall be determined
based upon such Lender’s share of the aggregate U.S. Revolving Credit
Utilization at that time), (b) any Canadian Revolving Lender, a percentage
equal to a fraction the numerator of which is such Lender’s Canadian Revolving
Commitment and the denominator of which is the aggregate Canadian Revolving
Commitment of all Canadian Revolving Lenders (if the Canadian Revolving
Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon such Lender’s share of the aggregate Canadian Revolving
Credit Utilization at that time); provided that in the case of Section 2.33
when a Defaulting Lender shall exist, any such Defaulting Lender’s Revolving Commitment
shall be disregarded in any calculation pursuant to the foregoing clauses (a) and
(b), (c) any U.S. Term Loan Lender, a percentage equal to a fraction the
numerator of which is such Lender’s outstanding principal amount of the U.S.
Term Loans and the denominator of which is the aggregate outstanding amount of
the U.S. Term Loans of all U.S. Term Loan Lenders, (d) any Canadian Term
Loan Lender, a percentage equal to a fraction the numerator of which is such
Lender’s outstanding principal amount of the Canadian Term Loans and the
denominator of which is the aggregate outstanding amount of the Canadian Term
Loans of all Canadian Term Loan Lenders and (e) the Aggregate Credit
Exposure of any Lender, a percentage based upon such Lender’s share of the Aggregate
Credit Exposure and the unused Commitments; provided that in the case of Section 2.33
when a Defaulting Lender shall exist, any such Defaulting Lender’s Commitment
shall be disregarded in any calculation pursuant to this clause (e).

 

6

 

“Approved Fund”
shall have the meaning set forth in Section 9.3.

 

“Asset Sale”
shall mean a sale, lease or sub-lease (as lessor or sublessor), sale and
leaseback, assignment, conveyance, transfer or other disposition to, or any
exchange of property with, any Person (other than a Loan Party), in one
transaction or series of transactions, of all or any part of the Loan Parties’
or any of their Subsidiaries’ businesses, assets or properties of any kind,
whether real, personal, or mixed and whether tangible or intangible, whether
now owned or hereafter acquired, including, without limitation, the capital
stock of any of the Loan Parties (other than the Parent) or their Subsidiaries
in each case other than (i) Inventory sold in the ordinary course of
business, and (ii) sales of assets for aggregate consideration of less
than US$1,000,000 with respect to any transaction or series of related
transactions and less than US$10,000,000 in the aggregate on a cumulative basis
with respect to all such transactions during the term of this Agreement.

 

“Assignment and Acceptance”
shall mean an assignment and acceptance entered into by a Lender and an
Eligible Assignee, and accepted by the Administrative Agent, substantially in
the form of Exhibit E.

 

“Available Cash”
shall mean, on any date, (a) the fair market value on such date of
unrestricted cash and cash equivalents held in securities accounts of the Loan
Parties and their Subsidiaries, and (b) the amount of unrestricted
available funds held on such date in bank deposit accounts of the Loan Parties
and their Subsidiaries, in each case subject to no Liens other than (i) Liens
in favor of the Agents on behalf of the Secured Parties, (ii) Liens in
favor of the Pre-Petition Agent on behalf of the Pre-Petition Secured Lenders, (iii) the
CCAA Charges and (iv) an unregistered Lien in respect of Priority Payables
that are not yet due and payable, and in any event excluding amounts held in
any Collateral Account, as evidenced in the applicable Borrowing Base
Certificate delivered by each Borrower to the Administrative Agent pursuant to Section 5.8.

 

“Avoidance Actions”
shall mean claims and causes of action under Sections 502(d), 544, 545, 547,
548, 549 and 550 of the Bankruptcy Code.

 

“Banking Services”
shall mean each and any of the following bank services provided to any Loan
Party by any Lender or any of its Affiliates: (a) commercial credit cards,
(b) stored value cards and (c) treasury management services
(including, without limitation, controlled disbursement, automated
clearinghouse transactions, return items, overdrafts and interstate depository
network services).

 

“Banking Services
Obligations” shall mean any and all obligations of the Loan
Parties, whether absolute or contingent and howsoever and whensoever created,
arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor) in connection with Banking
Services.

 

“Banking Services Reserves”
means all Reserves which the Applicable Agent from time to time establishes in
its Permitted Discretion for Banking Services then provided or outstanding.

 

7

 

“Bankruptcy Code”
shall mean The Bankruptcy Reform Act of 1978, as heretofore and hereafter
amended, and codified as 11 U.S.C. Section 101 et  seq.

 

“Bankruptcy Court”
shall mean the United States Bankruptcy Court for the District of Delaware or
any other court having jurisdiction over the U.S. Cases from time to time.

 

“Board”
shall mean the Board of Governors of the Federal Reserve System of the United
States.

 

“Borrowers”
shall have the meaning set forth in the Introduction.

 

“Borrowing”
shall mean the incurrence of Revolving Loans or the Term Loans, as the case may
be, of a single Type and Class made from all the Lenders in accordance
with their Applicable Percentages on a single date and having, in the case of
Eurodollar Loans or Discount Rate Loans, a single Interest Period or Contract
Period (with any ABR Loan or Canadian Prime Rate Loan made pursuant to Section 2.17
being considered a part of the related Borrowing of Eurodollar Loans or
Discount Rate Loans).

 

“Borrowing Bases”
shall mean the U.S. Borrowing Base and the Canadian Borrowing Base.

 

“Borrowing Base Certificate”
shall mean a certificate substantially in the form of Exhibit C-1
hereto (with respect to the certificate to be delivered by the Loan Parties
weekly or more frequently) and Exhibit C-2 hereto (with respect to
the certificate to be delivered by the Loan Parties monthly) (in each case with
such changes therein as may be required by the Administrative Agent from time
to time to reflect the components of and reserves against the U.S. Borrowing
Base and the Canadian Borrowing Base as provided for hereunder from time to
time), executed and certified as accurate and complete by a Financial Officer
of each of the Loan Parties, which shall include appropriate exhibits,
schedules and supporting documentation, and additional reports as (i) outlined
in Exhibits C-1 and C-2, (ii) requested by the
Administrative Agent, and (iii) provided in Section 5.8.

 

“Budget”
shall have the meaning set forth in Section 4.1(j).

 

“Business Day”
shall mean any day other than a Saturday, Sunday or other day on which banks in
the State of New York are required or permitted to close (and, for a Letter of
Credit, other than a day on which the applicable Fronting Bank issuing such
Letter of Credit is closed); provided, however, that (a) when
used in connection with a Eurodollar Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits on
the London interbank market and (b) when used in connection with a
Borrowing of Canadian Revolving Loans, Canadian Term Loans or a Canadian
Revolving Facility Letter of Credit, the term “Business Day” shall also exclude
any day on which banks are not open for business in Toronto and Montreal.

 

“Calculation Date”
shall mean (a) the last Business Day of each month, (b) the date of
each notice of Borrowing or refinancing of Canadian Revolving Loans or Canadian
Term Loans, or (c) the Business Day preceding the issuance, amendment,
extension or renewal of each Canadian Revolving Facility Letter of Credit.

 

8

 

“Calpine”
shall mean Calpine Corrugated LLC, a California limited liability company.

 

“Calpine Debt”
shall mean Indebtedness of Calpine under (i) that certain Amended and
Restated Credit Agreement dated as of July 28, 2008 between Calpine and
The CIT Group/Equipment Financing, Inc. in respect of a loan in the
principal amount of US$40,350,000 and (ii) that certain Loan and Security
Agreement dated as of March 30, 2006 between Calpine and Union Bank of
California, N.A. as amended prior to and including that certain Sixth Amendment
to Loan and Security Agreement dated as of July 28, 2008 in respect of a
loan in the principal amount of US$12,000,000.

 

“CAM” shall
mean the mechanism for the allocation and exchange of interests in the Credit
Facilities and collections thereunder established under ARTICLE 11.

 

“CAM Exchange”
shall mean the exchange of the Lenders’ interests provided for in Section 11.1.

 

“CAM Percentage”
shall mean, as to each Lender, a fraction, expressed as a decimal, of which (a) the
numerator shall be the aggregate Obligations owed to such Lender, and (b) the
denominator shall be the aggregate Obligations owed to all the Lenders, in each
case immediately prior to the Termination Date. 
For purposes of computing each Lender’s CAM Percentage, all Obligations
which shall be denominated in Canadian Dollars shall be translated into Dollars
at the Exchange Rate in effect on the Termination Date.

 

“Canadian Administrative Agent” shall mean
JPMorgan Chase Bank, N.A., Toronto Branch, in its capacity as Canadian
administrative agent for the Lenders hereunder.

 

“Canadian Benefit Plans”
shall mean all employee benefit plans of any nature or kind whatsoever (other
than the Canadian Pension Plans) that are maintained or contributed to by the
Canadian Borrower or any other Canadian Loan Party.

 

“Canadian Borrower”
shall have the meaning set forth in the Introduction.

 

“Canadian Borrowing Base” shall mean, at the time of
any determination, an amount equal to the sum (expressed in Dollars, based on
the Exchange Rate determined in accordance with Section 1.4),
without duplication, of (a) 85% of Eligible Accounts of the Canadian Loan
Parties at such time plus (b) the lesser of (i) 65% of
Eligible Inventory of the Canadian Loan Parties at such time and (ii) 85%
of the Net Orderly Liquidation Value of Eligible Inventory of the Canadian Loan
Parties at such time (in each case with respect to clauses (i) and (ii) with
any Eligible Inventory to be valued at the lower of cost (determined on a
first-in, first-out basis) or market), plus (c) the Canadian
PP&E Component, minus (d) the amount of the Reserves at such
time, minus, without duplication, (e) the then applicable aggregate
amount of obligations secured by the CCAA Charges as calculated pursuant to Section 2.24
at such time, minus (f) to the extent not otherwise included in the
CCAA Charges, the amount of Priority Payables at such time.  The Canadian Borrowing Base at any time shall
be determined by reference to the most recent Borrowing Base Certificate
delivered to the Administrative Agent pursuant to Section 5.8 of
this Agreement.

 

9

 

“Canadian Cases” shall mean the consolidated
proceedings of the CCAA Cases and the Recognition Cases.

 

“Canadian Collateral Agent”
shall mean JPMorgan Chase Bank, N.A., Toronto Branch, in its capacity as
Canadian collateral agent for the Lenders hereunder and the other Secured
Parties.

 

“Canadian Commitments”
shall mean the Canadian Revolving Commitment and the Canadian Term Loan
Commitment.

 

“Canadian Concentration
Account” shall mean the blocked concentration account
established by the Canadian Borrower pursuant to Section 5.7 and
designated as the “Smurfit-Stone Canadian Concentration Account” with JPMorgan
Chase Bank, N.A., Toronto Branch, or a bank acceptable to the Canadian
Administrative Agent.

 

“Canadian Conversion Notice”
shall have the meaning given such term in Section 9.23(c).

 

“Canadian Court”
shall mean the Ontario Superior Court of Justice or any other court having
jurisdiction over the Canadian Cases.

 

“Canadian Dollar Equivalent”
shall mean, on any date of determination, with respect to any amount in
Dollars, the equivalent in Canadian Dollars of such amount determined by the
Administrative Agent using the Exchange Rate then in effect.

 

“Canadian Dollars” and “C$”
shall mean lawful currency of Canada.

 

“Canadian Guaranteed
Obligations” shall have the meaning set forth in Section 10.2.

 

“Canadian Guarantor”
and “Canadian Guarantors” shall mean,
individually or collectively, SMBI Inc. and each of the Canadian Subsidiaries
party to this Agreement (other than the Canadian Borrower).  As of the Closing Date, the Canadian
Guarantors are 3083527 Nova Scotia Company, a corporation organized under the
laws of the Province of Nova Scotia, MBI Limited/Limitée, a corporation
organized under the laws of the Province of New Brunswick, Smurfit-MBI, a
limited partnership organized under the laws of the Province of Ontario, Stone
Container Finance Company of Canada II, a corporation organized under the laws
of the Province of Nova Scotia, 639647 British Columbia Ltd., a company with
limited liability organized under the laws of the Province of British Columbia,
B.C. Shipper Supplies Ltd., a corporation organized under the laws of the
Province of British Columbia, Specialty Containers Inc., a corporation
organized under the laws of the Province of Alberta, SLP Finance General
Partnership, a general partnership formed and operated under the Civil Code of
Québec, Francobec Company, a corporation organized under the laws of the
Province of Nova Scotia, 605681 N.B. Inc., a corporation organized under the
laws of the Province of New Brunswick, and SMBI Inc., a Delaware corporation,
and, after the Closing Date, shall include each subsequently organized Canadian
Subsidiary and each direct parent thereof.

 

10

 

“Canadian Investment
Account” shall mean the account established by the Canadian
Borrower pursuant to Section 2.7(d) and designated as the “Smurfit-Stone
Canadian Investment Account” with JPMorgan Chase Bank, N.A., Toronto Branch, or
a bank acceptable to the Canadian Administrative Agent.

 

“Canadian Lender”
shall mean, as of any date of determination, a Person constituting a Canadian
Revolving Lender or Canadian Term Lender.

 

“Canadian Letter of Credit Account” shall
mean the non-interest bearing account established by the Canadian Borrower
under the sole and exclusive control of the Canadian Administrative Agent
maintained at JPMorgan Chase Bank, N.A., Toronto Branch, or a bank acceptable
to the Canadian Administrative Agent, designated as the “JPMorgan Chase Bank NA
(Smurfit-Stone Canadian Letter of Credit) Account” that shall be used solely
for the purposes set forth in Section 2.4(c) and Section 2.14.

 

“Canadian Letter of Credit
Outstandings” shall mean, at any time of determination, the sum
of (a) the aggregate undrawn amount of all outstanding Canadian Revolving
Facility Letters of Credit that are denominated in Dollars, plus the U.S.
Dollar Equivalent at such time of the aggregate undrawn amount of all Canadian
Revolving Facility Letters of Credit that are denominated in Canadian Dollars
and (b) the aggregate amount that has been drawn under any Canadian
Revolving Facility Letter of Credit denominated in Dollars that has not been
reimbursed by the Canadian Borrower or another Loan Party at such time plus the
U.S. Dollar Equivalent of the aggregate amount that has been drawn under any
Canadian Revolving Facility Letter of Credit denominated in Canadian Dollars
that has not been reimbursed by the Canadian Borrower or another Loan Party at
such time.  The Canadian Letter of Credit Outstandings with respect to any
Canadian Revolving Lender at any time shall equal its Applicable Percentage of
the aggregate Canadian Letter of Credit Outstandings at such time.

 

“Canadian Loan Party”
and “Canadian  Loan Parties”
shall mean, individually or collectively, the Canadian Borrower and the
Canadian Guarantors.

 

“Canadian Loans”
shall mean the Canadian Revolving Loans and the Canadian Term Loans.

 

“Canadian Pension Plans”
shall mean all plans that are considered to be pension plans for the purposes
of, and are required to be registered under, the ITA or any applicable pension
benefits standards statute or regulation in Canada and that are established,
maintained or contributed to by the Canadian Borrower or any other Canadian
Loan Party for its current or former employees.

 

“Canadian PP&E
Component” shall mean the lesser of (x) (i) during
the period commencing with the Closing Date until the twelve (12) month
anniversary of the Closing Date, up to US$15,000,000, (ii) during the
period commencing with the twelve (12) month anniversary of the Closing Date
until the fifteen (15) month anniversary of the Closing Date, up to
US$10,000,000, and (iii) on the fifteen (15) month anniversary of the
Closing Date and thereafter, up to US$7,500,000, or, in each case, such lesser
amount as may be specified by the Canadian Borrower on the Canadian Borrower’s
most recent Borrowing Base Certificate, and 

 

11

 

(y) the
greater of (A) (i) 50% of the Net Orderly Liquidation Value of
Eligible Equipment of the Canadian Loan Parties at such time plus (ii) 50%
of the Fair Market Value of Eligible Real Property of the Canadian Loan Parties
at such time (as set forth in the most recent third party real estate appraisal
in form and substance satisfactory to the Administrative Agent), and (B) 20%
of the Net Orderly Liquidation Value In Place of (i) Eligible Equipment of
the Canadian Loan Parties at such time and (ii) Eligible Real Property of
the Canadian Loan Parties at such time. 
Notwithstanding the foregoing sentence, until the earlier of (x) such
time as appraisals satisfactory to the Administrative Agent are completed
pursuant to Section 5.6 and (y) May 28, 2009, or such
later date as the Administrative Agent may approve in its exclusive discretion,
the Canadian PP&E Component shall be US$15,000,000 or such lesser amount as
may be specified by the Canadian Borrower on the Canadian Borrower’s most
recent Borrowing Base Certificate.

 

“Canadian Prime Rate”
shall mean, on any day, the greatest of (a) 4.5%, (b) the annual rate
of interest announced from time to time by the Canadian Administrative Agent as
being its reference rate then in effect for determining interest rates on
Canadian Dollar-denominated commercial loans made by it in Canada and (c) the
CDOR Rate for a one month term in effect from time to time plus 100 basis
points per annum.

 

“Canadian Prime Rate Loan”
shall mean any Loan bearing interest at a rate determined by reference to the
Canadian Prime Rate in accordance with the provisions of ARTICLE 2.

 

“Canadian Receivables
Securitization Program” shall mean the Receivables Purchase
Agreement, dated as of March 30, 2004, among MBI Limited/Limitee, in its
capacity as general partner of Smurfit-MBI, Computershare Trust Company of
Canada, in its capacity as trustee of King Street Funding Trust, and Scotia
Capital Inc., as amended, restated, modified or waived from time to time.

 

“Canadian Revolving
Commitment” shall mean, with respect to each Canadian Revolving
Lender, the commitment of such Lender to make Canadian Revolving Loans
hereunder and to acquire participations in Canadian Revolving Facility Letters
of Credit in the amount set forth opposite its name on Annex A-1 hereto
or as may subsequently be set forth in the Register from time to time, as the
same may be reduced from time to time pursuant to the terms of this
Agreement.  As of the Closing Date, the aggregate amount of the Canadian
Revolving Commitments is US$65,000,000.

 

“Canadian Revolving Credit
Utilization” shall mean, at any time of determination, the sum
of (a) the aggregate principal amount of Canadian Revolving Loans
outstanding at such time and denominated in Dollars, plus (b) the
U.S. Dollar Equivalent of the aggregate principal amount of Canadian Revolving
Loans outstanding at such time and denominated in Canadian Dollars, plus
(c) the Canadian Letter of Credit Outstandings at such time.

 

“Canadian Revolving
Facility Letters of Credit” shall mean any irrevocable letter of
credit issued pursuant to Section 2.4 for the account of the
Canadian Borrower or a Canadian Subsidiary by a Fronting Bank pursuant to the
terms and conditions of ARTICLE 2, which letter of credit shall be (i) a
standby or import documentary letter of credit, (ii) issued for 

 

12

 

purposes
consistent with the ordinary course of business of the Loan Parties, as
determined by the Loan Parties in their reasonable judgment, or for such other
purposes as are acceptable to the Canadian Administrative Agent, (iii) denominated
in Dollars or Canadian Dollars and (iv) otherwise in such form as may be
approved from time to time by the Canadian Administrative Agent and the
applicable Fronting Bank.

 

“Canadian Revolving Lenders”
shall mean the Lenders having Canadian Revolving Commitments or holding
Canadian Revolving Loans.

 

“Canadian Revolving Loan”
shall mean a revolving loan to the U.S. Borrower or the Canadian Borrower made
pursuant to Section 2.1(b)(ii) in Dollars or Canadian Dollars.

 

“Canadian Secured
Obligations” shall mean (a) all Obligations owing by the
Canadian Borrower (other than in respect of its guaranty of Obligations of the
U.S. Borrower), (b) all Obligations owing by any other Canadian Loan
Party, (b) all Banking Services Obligations owing by any Canadian Loan
Party and (c) all Swap Obligations owing by any Canadian Loan Party to one
or more Canadian Lenders or their respective Affiliates; provided that at or
prior to the time that any transaction relating to a Swap Obligation is
executed, the Canadian Lender or an Affiliate thereof party thereto (other than
JPMCB) shall have delivered written notice to the Administrative Agent that
such a transaction has been entered into and that it constitutes a Canadian
Secured Obligation entitled to the benefits of the Collateral Documents.

 

“Canadian Security
Agreement” shall mean the Canadian Security Agreement made by
each of the Canadian Loan Parties in favor of the Canadian Collateral Agent and
the Quebec Security Agreements.

 

“Canadian Subsidiary”
shall mean any Subsidiary of the Parent incorporated, organized or formed under
the laws of Canada or any province or other territory thereof.

 

“Canadian Term Loans”
shall mean the term loans to the Canadian Borrower made pursuant to Section 2.1(a)(ii) (or
made to the Canadian Borrower pursuant to Section 9.23(c))in
Dollars.

 

“Canadian Term Loan
Collateral Account” shall mean the account established by the
Canadian Borrower under the sole and exclusive control of the Canadian Administrative
Agent maintained with JPMorgan Chase Bank, N.A., Toronto Branch, or a bank
acceptable to the Canadian Administrative Agent, designated as the “Smurfit-Stone
Canadian Term Loan Collateral Account” that shall be used solely for the
purposes set forth in Section 2.7(d) and Section 2.14(c).

 

“Canadian Term Loan
Commitment” shall mean, with respect to each Canadian Term Loan
Lender, the commitment of such Lender to make a Canadian Term Loan hereunder in
the amount set forth opposite its name on Annex A-4 hereto, as the same shall
be reduced on the Closing Date pursuant to Section 2.14(j) and
as may be modified pursuant to Section 9.23(c).  As of the
Closing Date and prior to making the Canadian Term Loans, the aggregate amount
of the Canadian Term Loan Commitments of the Canadian Term Loan Lenders is
US$35,000,000.

 

13

 

“Canadian Term Loan
Conversion” shall have the meaning given such term in Section 9.23(c).

 

“Canadian Term Loan Lenders”
shall mean the Lenders having Canadian Term Loan Commitments or holding
Canadian Term Loans.

 

“Canadian Term Outstandings”
shall mean, at any time of determination, an amount equal to (a) the
aggregate principal amount of the Canadian Term Loans outstanding at such time minus
(b) the amount of cash held in the Canadian Term Loan Collateral Account
at such time.

 

“Capital Expenditures”
shall mean, for any period, the aggregate of all expenditures (whether paid in
cash and not accrued prior to such period but after the Closing Date or accrued
as liabilities during such period, and including that portion of Capital Lease
Obligations which is capitalized on the consolidated balance sheet of the Loan
Parties and their Subsidiaries) by the Loan Parties and their Subsidiaries
during such period that, in conformity with GAAP, are required to be included
in or reflected by the property, plant, equipment or intangibles or similar
fixed asset accounts reflected in the consolidated balance sheet of the Loan
Parties and their Subsidiaries, but excluding expenditures made in connection
with the replacement or restoration of assets, to the extent reimbursed or
financed from insurance proceeds paid on account of the loss of or the damage
to the assets being replaced or restored, or from awards of compensation
arising from the taking by condemnation or eminent domain of such assets being
replaced.

 

“Capital Lease Obligations”
of any Person means the obligations of such Person to pay rent or other amounts
under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to
be classified and accounted for as capital leases on a balance sheet of such
Person under GAAP, and the amount of such obligations shall be the capitalized
amount thereof determined in accordance with GAAP.

 

“Carve-Out”
shall have the meaning set forth in Section 2.24.

 

“Cases”
shall mean the U.S. Cases and the Canadian Cases, individually and
collectively.

 

“Cash Flow Forecast”
shall have the meaning set forth in Section 4.1(k).

 

“CCAA” shall
mean the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, as
heretofore or hereafter amended.

 

“CCAA Cases” shall mean the cases
commenced by the Canadian Loan Parties (other than Surfit-MBI and SLP Finance
General Partnership) pursuant to the CCAA.

 

“CCAA Charges” shall mean the
Administration Charge and the Directors’ Charge.

 

“CCAA DIP Lenders’ Charge”
shall have the meaning set forth in Section 2.24.

 

14

 

“CDOR Rate”
shall mean on any day, with respect to a particular term as specified herein,
the annual rate of discount or interest which is the arithmetic average of the
discount rates for such term applicable to Canadian Dollar bankers’ acceptances
identified as such on the Reuters Screen CDOR Page at approximately 10:00 A.M.
(Toronto, Ontario time) on such day, or if such day is not a Business Day, then
on the immediately preceding Business Day (as adjusted by the Administrative
Agent after 10:00 A.M. (Toronto, Ontario time) to reflect any error in any
posted rate or in the posted average annual rate).  If the rate does not appear on the Reuters
Screen CDOR Page as contemplated above, then the CDOR Rate on any day
shall be calculated as the arithmetic average of the annual discount rates for
such term applicable to Canadian Dollar bankers’ acceptances of, and as quoted
by, the Schedule I Banks, as of 10:00 A.M. (Toronto, Ontario time) on that
day, or if that day is not a Business Day, then on the immediately preceding
Business Day.

 

“Change of Control”
shall mean (x) with respect to the Parent (i) the acquisition of
ownership, directly or indirectly, beneficially or of record, by any Person or
group (within the meaning of the Securities Exchange Act of 1934 and the rules of
the Securities and Exchange Commission thereunder as in effect on the Closing
Date), of shares representing more than 35% of the aggregate ordinary voting
power represented by the issued and outstanding capital stock of the Parent; or
(ii) the occupation of a majority of the seats (other than vacant seats)
on the board of directors of the Parent, after the Filing Date, by Persons who
were neither (a) nominated by the board of directors of the Parent nor (b) appointed
by the directors so nominated, (y) the Parent shall cease to own, directly
or indirectly, beneficially and of record, 100% of the issued and outstanding
capital stock of the U.S. Borrower or any other Loan Party (or, in the case of
Calpine, 90%), or (z) the U.S. Borrower shall cease to own, directly or
indirectly, beneficially and of record, 100% of the issued and outstanding
capital stock of the Canadian Borrower.

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are U.S. Revolving Loans, Canadian
Revolving Loans, U.S. Term Loans, or Canadian Term Loans, and, when used in
reference to any Commitment, refers to whether such Commitment is a U.S.
Revolving Commitment, Canadian Revolving Commitment, U.S. Term Loan Commitment,
or Canadian Term Loan Commitment.

 

“Closing Date”
shall mean the date on which this Agreement has been executed and the
conditions precedent to the making of the initial Loans set forth in Section 4.1
have been satisfied or waived, which date shall occur as promptly as is
practicable after the date of this Agreement, but in no event later than five (5) days
following entry of the Interim Order.

 

“Closing Date Lender”
shall have the meaning set forth in Section 9.3.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Co-Lead Arrangers”
shall mean J.P. Morgan Securities Inc. and Deutsche Bank Securities Inc.

 

“Collateral”
shall mean all of the real, personal and mixed property (including equity
interests) in which Liens are purported to be granted pursuant to the Orders or
Collateral Documents.

 

15

 

 “Collateral Accounts” shall mean
collectively, the Canadian Letter of Credit Account, the Letter of Credit
Account, the Canadian Term Loan Collateral Account and the U.S. Term Loan
Collateral Account.

 

“Collateral Agent” shall mean JPMorgan Chase
Bank, N.A., in its capacity as collateral agent for the Lenders hereunder and
the other Secured Parties.

 

“Collateral Documents”
shall mean, collectively, the Security Agreements and any other documents
granting a Lien upon the Collateral as security for payment of any of the
Secured Obligations.

 

“Commercial LC Exposure”
shall mean, at any time, the sum of (a) the aggregate undrawn amount of
all outstanding commercial Letters of Credit at such time plus (b) the
aggregate amount of all disbursements relating to commercial Letters of Credit
that have not yet been reimbursed by or on behalf of the Borrowers at such
time.  The Commercial LC Exposure of any
Revolving Lender at any time shall be its Applicable Percentage of the total
Commercial LC Exposure at such time.

 

“Commitment”
shall mean each of, and “Commitments”
shall mean, collectively, the Canadian Revolving Commitments, the U.S.
Revolving Commitments, the U.S. Term Loan Commitments and the Canadian Term
Loan Commitments, and, with respect to each Canadian Revolving Lender, U.S.
Revolving Lender, U.S. Term Loan Lender or Canadian Term Loan Lender, as
applicable, the Commitment of each such Lender hereunder in the amount set
forth opposite its name on Annex A-1,  Annex A-2,  Annex A-3
or Annex A-4 hereto or as may subsequently be set forth in the Register
from time to time, as the same may be reduced from time to time pursuant to
this Agreement.

 

“Commitment Fee”
shall have the meaning set forth in Section 2.21.

 

“Commitment Fee Percentage” shall mean 1.0% per annum.

 

“Commitment Letter”
shall mean that certain Commitment Letter dated January 6, 2009 among the
Administrative Agent, J.P. Morgan Securities Inc., Deutsche Bank Securities
Inc., Deutsche Bank Trust Company Americas and the Parent on behalf of itself
and the other Loan Parties.

 

“Concentration Account”
shall mean the blocked concentration account established by the U.S. Borrower
pursuant to Section 5.7 and designated as the “Smurfit-Stone
Concentration Account” with JPMCB.

 

“Consenting Lenders”
shall have the meaning set forth in Section 9.10(b).

 

“Consolidated EBITDA”
shall mean, for any period, all as determined in accordance with GAAP, the
Consolidated Net Income of the Loan Parties and their Subsidiaries for such
period, plus, without duplication and to the extent deducted in
determining Consolidated Net Income for such period, (i) all federal,
state, provincial, local and foreign income taxes, (ii) Consolidated
Interest Expense, (iii) depreciation, depletion, amortization of
intangibles and other non-cash charges or non-cash losses deducted in
determining such Consolidated Net 

 

16

 

Income,
(iv) any restructuring charges in an amount not to exceed US$25,000,000 in
the aggregate during any twelve (12) month period (“restructuring charges”), (v) “Chapter
11/CCAA expenses” (or “administrative costs reflecting Chapter 11/CCAA expenses”,
inclusive of professional fees), (vi) non-cash pension expenses, as shown
on the Loan Parties’ consolidated statement of income for such period, and (vii) any
Downtime Credit, minus, without duplication and to the extent included
in determining such Consolidated Net Income for such period, (i) any
non-cash income or non-cash gains, (ii) cash contributions to fund pension
plan liabilities and (iii) cash expenditures pertaining to non-cash
charges or non-cash losses that were added back in the calculation of
Consolidated EBITDA hereunder for a prior period.  The classification of items as “restructuring
charges” or “Chapter 11/CCAA expenses” for purposes of determining Consolidated
EBITDA shall be made by the Loan Parties in a manner consistent with the allocations
in the Budget and the Cash Flow Forecast delivered to the Administrative Agent
on or prior to the Closing Date.

 

“Consolidated Interest
Expense” means, with reference to any period, total interest
expense (including that attributable to Capital Lease Obligations) of the
Parent and its Subsidiaries for such period with respect to all outstanding
Indebtedness of the Parent and its Subsidiaries (including all commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing), calculated on a consolidated basis for the
Parent and its Subsidiaries for such period in accordance with GAAP.  For purposes of the foregoing, interest
expense shall be determined after giving effect to any net payments made or
received by the Parent and its Subsidiaries with respect to Swap Agreements,
but excluding any gain or loss recognized under GAAP that results from the
mark-to-market valuation of any Swap Agreement.

 

“Consolidated
Net Income” means, for any period,
the consolidated net income (or loss) of the Parent and its Subsidiaries,
determined on a consolidated basis in accordance with GAAP; provided that there
shall be excluded (a) the income (or deficit) of any Person accrued prior
to the date it becomes a Subsidiary or is merged into or consolidated with the
Parent or any of its Subsidiaries, (b) the income (or deficit) of any
Person (other than a Subsidiary) in which the Parent or any of its Subsidiaries
has an ownership interest, except to the extent that any such income is
actually received by the Parent or such Subsidiary in the form of dividends or
similar distributions, (c) the undistributed earnings of any Subsidiary to
the extent that the declaration or payment of dividends or similar
distributions by such Subsidiary is not at the time permitted by the terms of
any contractual obligation (other than under any Loan Document) or Requirement
of Law applicable to such Subsidiary and (d) any gain (or loss) from the
sale or other disposition of any asset occurring outside of the ordinary course
of business of the Loan Parties.

 

“Contract Period”
shall mean the term of a Discount Rate Loan selected by the Canadian Borrower
in accordance with Section 2.7 and Section 2.13
commencing on the date of the Borrowing of such Discount Rate Loan, any
rollover date and the date on which any Canadian Prime Rate Loans are
refinanced with Discount Rate Loans pursuant to Section 2.13, as
applicable, and expiring on a Business Day which shall be either one month,
three months, or, with the consent of all of the applicable Canadian Lenders,
six months later; provided, that no Contract Period shall extend beyond
the Maturity Date.  Notwithstanding the
foregoing, whenever the last day of any Contract Period would otherwise occur on
a day which is not a 

 

17

 

Business
Day, the last day of such Contract Period shall occur on the next succeeding
Business Day.

 

“Converting Lender”
shall mean, each of JPMCB, JPMorgan Chase Bank, N.A., Toronto Branch and Deutsche
Bank Trust Company Americas.

 

“Credit Exposure”
shall mean as to any Lender at any time, the sum of (a) such Lender’s
Revolving Loans at such time, plus (b) such Lender’s LC Exposure plus
(c) an amount equal to the aggregate principal amount of its Term Loans
outstanding at such time.

 

“Credit Facility”
shall mean a Class of Commitments and extensions of credit
thereunder.  For purposes of this Agreement, each of the following
comprises a separate Credit Facility:  (a) the U.S. Term Loans, (b) the
Canadian Term Loans, (c) the U.S. Revolving Commitments, the U.S.
Revolving Loans and the U.S. Revolving Facility Letters of Credit, and (d) the
Canadian Revolving Commitments, the Canadian Revolving Loans and the Canadian
Revolving Facility Letters of Credit.

 

“Default”
shall have the meaning given such term in Section 2.24.

 

“Defaulting Lender”
shall mean any Lender, as determined by the Applicable Agent, that has (a) failed
to fund any portion of its Loans or participations in Letters of Credit within
three (3) Business Days of the date required to be funded by it hereunder,
(b) notified any Borrower, the Applicable Agent, any Fronting Bank or any
Lender in writing that it does not intend to comply with any of its funding
obligations under this Agreement or has made a public statement to the effect
that it does not intend to comply with its funding obligations under this
Agreement or under other agreements in which it commits to extend credit, (c) failed,
within three (3) Business Days after request by the Applicable Agent, to
confirm that it will comply with the terms of this Agreement relating to its
obligations to fund prospective Loans and participations in then outstanding
Letters of Credit, (d) otherwise failed to pay over to the Applicable
Agent or any other Lender any other amount required to be paid by it hereunder
within three (3) Business Days of the date when due, unless the subject of
a good faith dispute, or (e) (i) become or is insolvent or has a
parent company that has become or is insolvent or (ii) become the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance
of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment or has a parent company that has become the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance
of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment.

 

“Dilution Factors”
shall mean, without duplication, with respect to any period, the aggregate
amount of all deductions, credit memos, returns, adjustments, allowances, bad
debt write-offs and other non-cash credits which are recorded to reduce
accounts receivable in a manner consistent with current and historical
accounting practices of the Loan Parties.

 

“Dilution Ratio”
shall mean, at any date, the amount (expressed as a percentage) equal to (a) the
aggregate amount of the applicable Dilution Factors for the twelve (12) most

 

18

 

recently
ended fiscal months divided by (b) total gross sales for the twelve (12)
most recently ended fiscal months.

 

“Dilution Reserve”
shall mean, at any date, (i) the amount by which the Dilution Ratio
exceeds five percent (5%) multiplied by (ii) the Eligible Accounts on such
date.

 

“Directors’ Charge”
shall have the meaning given such term in Section 2.24.

 

“Discount Rate”
shall mean with respect to a Discount Rate Loan: (a) made by a Canadian
Revolving Lender which is a Schedule I Bank, the greater of (x) 3.5% and (y) the
CDOR Rate, and (b) made by a Canadian Revolving Lender which is not a
Schedule I Bank, the greater of (x) 3.5% and (y) the CDOR Rate plus
10 basis points per annum.

 

“Discount Rate Loan”
shall mean any Loan bearing interest at a rate determined by reference to the
Discount Rate in accordance with the provisions of ARTICLE 2.

 

“Dollars”
and “US$” shall mean lawful
money of the United States of America.

 

“Domestic Subsidiary”
shall mean any Subsidiary of the U.S. Borrower organized under the laws of the
United States or any political subdivision thereof.

 

“Downtime Credit”
shall mean a credit for production downtime, if any, in excess of downtime
identified in the Budget delivered on or prior to the Closing Date, in an
amount equal to US$2,500,000 for every 10,000 tons of production downtime in
excess of downtime identified in the Budget taken in any month ending on or
prior to July 31, 2009 (other than, in any event, downtime associated with
maintenance activity in the ordinary course of business), provided that
the cumulative amount of the Downtime Credit during all periods shall not
exceed US$20,000,000.  In the event the
amount of production downtime in excess of downtime identified in the Budget is
more or less than 10,000 tons, the Downtime Credit for such month shall be
prorated based upon the actual number of tons of production downtime in excess
of the downtime identified in the Budget (but in any event not to exceed the
US$20,000,000 cap set forth above).

 

“Effective Date”
shall mean the date identified as the effective date of a Reorganization Plan
of the Loan Parties that is confirmed or sanctioned pursuant to an order of the
Bankruptcy Court or Canadian Court, as the case may be, in the Cases.

 

“Eighteen Month Facility
Extension Option” shall have the meaning given such term in Section 2.31.

 

“Eligible Accounts”
means, at any time, the Accounts of a Loan Party which the Applicable Agent
determines in its Permitted Discretion are eligible as the basis for the
extension of Loans and the issuance of Letters of Credit hereunder.  Without limiting the Applicable Agent’s discretion
provided herein, Eligible Accounts shall not include any Account:

 

(a)           which is not subject to a first
priority perfected Lien in favor of the Applicable Agent for the benefit of the
Secured Parties subject only to (i) the CCAA Charges and (ii) an
unregistered Lien in respect of Priority Payables that are not yet due and
payable;

 

19

 

(b)           which is subject to any Lien other
than (i) a Lien in favor of the Applicable Agent for the benefit of the
Secured Parties, (ii) a Lien (if any) permitted by the Loan Documents
which does not have priority over the Lien in favor of the Applicable Agent for
the benefit of the Secured Parties, (iii) a Lien contemplated by clause (iv) of
the definition of Permitted Liens, and (iv) an unregistered Lien in
respect of Priority Payables that are not yet due and payable;

 

(c)           which (i) is unpaid more than 90
days after the date of the original invoice therefor, or (ii) has been
written off the books of the Loan Party or otherwise designated as
uncollectible (in determining the aggregate amount from the same Account Debtor
that is unpaid hereunder there shall be excluded the amount of any net credit
balances relating to Accounts due from an Account Debtor which are unpaid more
than 90 days from the date of invoice);

 

(d)           which is owing by an Account Debtor
for which more than 50% of the Accounts owing from such Account Debtor and its
Affiliates are ineligible hereunder;

 

(e)           which is owing by an Account Debtor
to the extent the aggregate amount of Accounts owing from such Account Debtor
and its Affiliates to the Loan Parties exceeds 10% of the aggregate amount of
Eligible Accounts of the Loan Parties;

 

(f)            which, for any Account Debtor,
exceeds the applicable credit limit, if any, determined by the Loan Parties, to
the extent of such excess, as determined in a manner mutually acceptable to the
Loan Parties and the Applicable Agent;

 

(g)           with respect to which any covenant,
representation, or warranty contained in this Agreement or in the Collateral
Documents has been breached or is not true in any material respect;

 

(h)           which (i) does not arise from
the sale of goods or performance of services in the ordinary course of
business, (ii) is not evidenced by an invoice or other documentation
satisfactory to the Applicable Agent which has been sent to the Account Debtor,
(iii) represents a progress billing, (iv) is contingent upon any Loan
Party’s completion of any further performance, (v) represents a sale on a
bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment,
cash-on-delivery or any other repurchase or return basis or (vi) relates
to payments of interest, in each case determined in a manner mutually
acceptable to the Loan Parties and the Applicable Agent;

 

(i)            for which the goods giving rise to
such Account have not been shipped to the Account Debtor or for which the
services giving rise to such Account have not been performed by a Loan Party or
if such Account was invoiced more than once, in each case determined in a
manner mutually acceptable to the Loan Parties and the Applicable Agent;

 

(j)            which is owed by an Account Debtor
which has (i) applied for, suffered, or consented to the appointment of
any receiver, custodian, trustee, or liquidator of its assets, (ii) has
had possession of all or a material part of its property taken by any receiver,
custodian, trustee or liquidator, (iii) filed, or had filed against it,
any request or petition for liquidation, reorganization, arrangement,
adjustment of debts, adjudication as bankrupt, winding-up, or voluntary or
involuntary case under any state, provincial or federal bankruptcy laws, (iv) has

 

20

 

admitted in writing its
inability, or is generally unable to, pay its debts as they become due, (v) become
insolvent, or (vi) ceased operation of its business;

 

(k)           which is owed by any Account Debtor
which has sold all or a substantially all of its assets;

 

(l)            which is owed by an Account Debtor
which (i) does not maintain its chief executive office or have material
business operations in the U.S. or Canada or (ii) is not organized and
existing under applicable law of the U.S. or Canada or, in either case any
political subdivision thereof, unless, in either case, such Account is backed
by a Letter of Credit acceptable to the Applicable Agent which is in the
possession of, has been assigned to and is directly drawable by, the Applicable
Agent;

 

(m)          which is owed in any currency other
than Dollars or Canadian Dollars;

 

(n)           (A) with respect to the U.S.
Borrowing Base, which is owed by (i) the government (or any department,
agency, public corporation, or instrumentality thereof) of any country other
than the U.S. unless such Account is backed by a Letter of Credit acceptable to
the Applicable Agent which is in the possession of the Applicable Agent, or (ii) the
government of the U.S., or any department, agency, public corporation, or
instrumentality thereof, unless the Federal Assignment of Claims Act of 1940,
as amended (31 U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.), and any other
steps necessary to perfect the Lien of the Applicable Agent for the benefit of
the Secured Parties in such Account have been complied with to the Applicable
Agent’s satisfaction; and (B) with respect to the Canadian Borrowing Base,
which is owed by (i) the government (or any department, agency, public
corporation, or instrumentality thereof) of any country other than Canada
unless such Account is backed by a Letter of Credit acceptable to the Applicable
Agent which is in the possession of the Applicable Agent, or (ii) the
government of Canada, or any department, agency, public corporation, or
instrumentality thereof, unless the Financial Administration Act (Canada) or
similar provincial or territorial legislation or municipal ordinance of similar
purpose, in each case as amended, and any other steps necessary to perfect the
Lien of the Applicable Agent for the benefit of the Secured Parties in such
Account have been complied with to the Applicable Agent’s satisfaction;

 

(o)           which is owed by any Affiliate,
employee, officer, director, agent, holder of more than 2% of the issued and
outstanding capital stock of the Parent or any stockholder of any other Loan
Party;

 

(p)           which is owed by an Account Debtor or
any Affiliate of such Account Debtor to which any Loan Party is indebted, but
only to the extent of such indebtedness or is subject to any security, deposit,
progress payment, retainage or other similar advance made by or for the benefit
of an Account Debtor, in each case to the extent thereof;

 

(q)           which is subject to any counterclaim,
deduction, defense, setoff or dispute but only to the extent of any such
counterclaim, deduction, defense, setoff or dispute;

 

(r)            which is evidenced by any promissory
note, chattel paper, or instrument or subject to a payment plan;

 

21

 

(s)           with respect to which such Loan Party
has made any agreement with the Account Debtor for any reduction thereof, other
than discounts and adjustments given in the ordinary course of business, or any
Account which was partially paid and such Loan Party created a new receivable
for the unpaid portion of such Account, or any unpaid portion of any partially
paid Account to the extent of such unpaid portion;

 

(t)            which does not comply in all
material respects with the requirements of all applicable laws and regulations,
whether federal, state, provincial or local, including without limitation the
Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and
Regulation Z of the Board;

 

(u)           which is for goods that have been
sold under a purchase order or pursuant to the terms of a contract or other
agreement or understanding (written or oral) that indicates or purports that
any Person other than such Loan Party has or has had an ownership interest in
such goods, or which indicates any party other than such Loan Party as payee or
remittance party, in each case determined in a manner mutually acceptable to
the Loan Parties and the Applicable Agent; or

 

(v)           which was created on cash on delivery
terms.

 

In the event that an Account which was
previously an Eligible Account ceases to be an Eligible Account hereunder, such
Loan Party shall notify the Applicable Agent thereof on and at the time of
submission to the Applicable Agent of the next Borrowing Base Certificate.  Except as otherwise set forth above, the
amount of an Eligible Account shall be determined based on the face amount of
such Account; provided that the face amount of an Account may, in the
Applicable Agent’s Permitted Discretion, be reduced by, without duplication, to
the extent not reflected in such face amount, (i) the amount of all
accrued and actual discounts, claims, credits or credits pending, promotional
program allowances, price adjustments, finance charges or other allowances
(including any amount that such Loan Party may be obligated to rebate to an
Account Debtor pursuant to the terms of any agreement or understanding (written
or oral)) and (ii) the aggregate amount of all cash received in respect of
such Account but not yet applied by such Loan Party to reduce the amount of
such Account.

 

“Eligible Equipment”
means the equipment owned by a Loan Party located at the Loan Parties’
facilities described on Schedule 1.1, as updated from time to time with
the consent of the Administrative Agent, and meeting each of the following
requirements:

 

(a)           such Loan Party has good title to
such equipment;

 

(b)           such Loan Party has the right to
subject such equipment to a Lien in favor of the Applicable Agent for the
benefit of the Secured Parties; such equipment is subject to a first priority
perfected Lien in favor of the Applicable Agent for the benefit of the Secured
Parties and is free and clear of all other Liens of any nature whatsoever
(except for (i) Permitted Liens which do not have priority over the Lien
in favor of the Applicable Agent for the benefit of the Secured Parties, (ii) unregistered
Liens in respect of Priority Payables that are not yet due and payable, (iii) the
CCAA Charges and (iv) Liens permitted by clause (iv) of the
definition of Permitted Liens);

 

22

 

(c)           the full purchase price for such
equipment has been paid by such Loan Party;

 

(d)           such equipment is located on premises
(i) owned by such Loan Party, which premises are subject to a first
priority perfected Lien in favor of the Applicable Agent for the benefit of the
Secured Parties, or (ii) leased by such Loan Party where (x) the
lessor has delivered to the Applicable Agent a Landlord Lien Waiver or (y) a
Reserve for rent, charges, and other amounts due or to become due with respect
to such facility has been established by the Applicable Agent in its Permitted
Discretion;

 

(e)           such equipment is in good working order
and condition (ordinary wear and tear excepted) and is used or held for use by
such Loan Party in the ordinary course of business of the Loan Party;

 

(f)            such equipment is not subject to any
agreement which restricts the ability of such Loan Party to use, sell,
transport or dispose of such equipment or which restricts the Applicable Agent’s
ability to take possession of, sell or otherwise dispose of such equipment; and

 

(g)           such equipment does not constitute “fixtures”
under the applicable laws of the jurisdiction in which such equipment is
located.

 

“Eligible Inventory”  means, at any time, the Inventory of a Loan
Party which the Applicable Agent determines in its Permitted Discretion is
eligible as the basis for the extension of Loans and the issuance of Letters of
Credit hereunder.  Without limiting the
Applicable Agent’s discretion provided herein, Eligible Inventory shall not
include any Inventory:

 

(a)           which is not subject to a first
priority perfected Lien in favor of the Applicable Agent for the benefit of the
Secured Parties subject only to (i) the CCAA Charges and (ii) an
unregistered Lien in respect of Priority Payables that are not yet due and
payable;

 

(b)           which is subject to any Lien other
than (i) a Lien in favor of the Applicable Agent for the benefit of the
Secured Parties, (ii) a Lien (if any) permitted by the Loan Documents
which does not have priority over the Lien in favor of the Applicable Agent for
the benefit of the Secured Parties, (iii) a Lien contemplated by clause (iv) of
the definition of Permitted Liens, and (iv) an unregistered Lien in
respect of Priority Payables that are not yet due and payable;

 

(c)           which is, in the Applicable Agent’s
opinion, slow moving, obsolete, unmerchantable, defective, used, unfit for
sale, not salable at prices approximating at least the cost of such Inventory
in the ordinary course of business or unacceptable due to age, type, category
or quantity;

 

(d)           with respect to which any covenant,
representation, or warranty contained in this Agreement or the Collateral
Documents been breached or is not true in any material respect and which does
not conform in any material respect to all standards imposed by any
Governmental Authority;

 

23

 

(e)           in which any Person other than such
Loan Party shall (i) have any direct or indirect ownership, interest or
title to such Inventory or (ii) be indicated on any purchase order or
invoice with respect to such Inventory as having or purporting to have an
interest therein;

 

(f)            which is not Work-in-Process, Raw
Materials or Finished Goods or which constitutes spare or replacement parts,
subassemblies, packaging supplies and shipping material, manufacturing
supplies, samples, prototypes, displays or display items, bill-and-hold goods,
goods that are returned or marked for return, repossessed goods, defective or
damaged goods, goods held on consignment, or goods which are not of a type held
for sale in the ordinary course of business, including, but not limited to,
fuels, chemicals, starches, ink and adhesives;

 

(g)           which is not located in the United
States or Canada or is in transit (other than between locations in the United
States or Canada controlled by Loan Parties, to the extent included in current
perpetual inventory reports of any Loan Party);

 

(h)           which is located in any location
leased by such Loan Party unless (i) the lessor has delivered to the
Applicable Agent a Landlord Lien Waiver or (ii) a Reserve for rent,
charges, and other amounts due or to become due with respect to such facility
has been established by the Applicable Agent in its Permitted Discretion;

 

(i)            which is located in any third party
warehouse or is in the possession of a bailee (other than a third party
processor) and is not evidenced by a document (other than bills of lading
issued with respect to Inventory in transit between locations in the United
States or Canada controlled by Loan Parties), unless (i) such warehouseman
or bailee has delivered to the Applicable Agent a Landlord Lien Waiver and such
other documentation as the Applicable Agent may require or (ii) an
appropriate Reserve has been established by the Applicable Agent in its
Permitted Discretion;

 

(j)            which is being processed offsite at
a third party location or outside processor, or is in-transit to or from said
third party location or outside processor;

 

(k)           which is a discontinued product or
component thereof;

 

(l)            which is the subject of a
consignment by such Loan Party as consignor;

 

(m)          which contains or bears any
intellectual property rights licensed to such Loan Party unless the Applicable
Agent is satisfied that it may sell or otherwise dispose of such Inventory
without (i) infringing the rights of such licensor, (ii) violating
any contract with such licensor, or (iii) incurring any liability with
respect to payment of royalties other than royalties incurred pursuant to sale
of such Inventory under the current licensing agreement;

 

(n)           which is not reflected in a current
inventory report of such Loan Party (unless such Inventory is reflected in a
report to the Applicable Agent as “in transit” Inventory);

 

(o)           for which reclamation rights have
been asserted by the seller; or

 

(p)           any portion of the cost of such
Inventory is attributable to intercompany profit between any Loan Party and any
of its Affiliates (but only to the extent of such portion).

 

24

 

In the event that Inventory
which was previously Eligible Inventory ceases to be Eligible Inventory
hereunder, such Loan Party shall notify the Applicable Agent thereof on and at
the time of submission to the Applicable Agent of the next Borrowing Base Certificate.

 

“Eligible Real Property”
means the real property (including fixtures thereto) listed on Schedule 1.2,
as updated from time to time with the consent of the Administrative Agent (such
consent not to be unreasonably withheld), owned by a Loan Party (i) that
is acceptable in the exclusive discretion of the Applicable Agent for inclusion
in the U.S. Borrowing Base or Canadian Borrowing Base, as the case may be, (ii) in
respect of which an appraisal report has been delivered to the Applicable Agent
in form, scope and substance reasonably satisfactory to the Applicable Agent, (iii) in
respect of which the Applicable Agent is satisfied that all actions necessary
or desirable in order to create perfected first priority Lien (subject only to (i) the
CCAA Charges and (ii) an unregistered Lien in respect of Priority Payables
that are not yet due and payable) on such real property have been taken,
including, the filing and recording of Collateral Documents, (iv) in
respect of which an environmental assessment report has been completed and
delivered to the Applicable Agent in form and substance satisfactory to such
Applicable Agent and which does not indicate any material environmental
liability, or material non-compliance with any Environmental Law (which liability
or non-compliance was not previously disclosed to Lenders), (v) which is
adequately protected by fully-paid valid title insurance with endorsements and
in amounts reasonably acceptable to the Applicable Agent, insuring that the
Applicable Agent, for the benefit of the Secured Parties, shall have a
perfected first priority Lien (subject only to (i) the CCAA Charges and (ii) an
unregistered Lien in respect of Priority Payables that are not yet due and
payable) on such real property, evidence of which shall have been provided in
form and substance reasonably satisfactory to the Applicable Agent, and (vi) if
required by the Applicable Agent: (A) an ALTA survey has been delivered
for which all necessary fees have been paid and which is dated no more than 30 days
prior to the date on which the applicable Collateral Document is recorded,
certified to the Applicable Agent and the issuer of the title insurance policy
in a manner reasonably satisfactory to the Applicable Agent by a land surveyor
duly registered and licensed in the state or province in which such Eligible
Real Property is located and reasonably acceptable to the Applicable Agent, and
shows all buildings and other improvements, any offsite improvements, the
location of any easements, parking spaces, rights of way, building setback
lines and other dimensional regulations and the absence of encroachments,
either by such improvements or on to such property, and other defects, other
than encroachments and other defects reasonably acceptable to the Applicable
Agent; and (B) such Loan Party shall have used its reasonable best efforts
to obtain such consents, agreements and confirmations of lessors and third
parties as the Applicable Agent may deem necessary or desirable, together with
evidence that all other actions that the Applicable Agent may deem necessary or
desirable in order to create perfected first priority Liens (subject only to (i) the
CCAA Charges and (ii) an unregistered Lien in respect of Priority Payables
that are not yet due and payable) on the property described in the Collateral
Document have been taken.

 

“Environmental Laws”
shall mean all local, state, federal, provincial and foreign laws, statutes,
ordinances, orders, rules, regulations, or binding policies or decrees relating
to (i) pollution or protection of the environment, including, without
limitation, those relating to protection or rehabilitation of the land, water
(surface or subsurface water) or air, or fines, injunctions, penalties,
damages, contribution, cost recovery compensation, losses, injuries, 

 

25

 

investigations or remedial work resulting from the presence, release or
threatened release of Hazardous Waste or Hazardous Substances, (ii) the
generation, use, storage, transportation or disposal of Hazardous Waste or
Hazardous Substance, or (iii) occupational safety and health, industrial
hygiene or protection of wetlands, in any manner applicable to the Loan Parties
or any of their respective properties, and any analogous future local, state,
federal, provincial and foreign laws, statutes, ordinances, orders, rules,
regulations, or binding policies or decrees, each as in effect as of the date
of determination.

 

“Environmental Lien”
shall mean a Lien in favor of any Governmental Authority for (i) any
liability under federal, provincial or state Environmental Laws, or (ii) damages
arising from or costs incurred by such Governmental Authority in response to a
release or threatened release of a Hazardous Substance or Hazardous Waste.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from
time to time, and the regulations promulgated and rulings issued thereunder.

 

“ERISA Affiliate”
shall mean any trade or business (whether or not incorporated) which is a
member of a group of which any of the Loan Parties is a member and which is
under common control within the meaning of Section 414(b) or (c) of
the Code and the regulations promulgated and rulings issued thereunder.

 

“Eurocurrency Liabilities”
shall have the meaning assigned thereto in Regulation D issued by the Board, as
in effect from time to time.

 

“Eurodollar Borrowing”
shall mean a Borrowing comprised of Eurodollar Loans.

 

“Eurodollar Loan”
shall mean any Loan bearing interest at a rate determined by reference to the
Adjusted LIBO Rate in accordance with the provisions of ARTICLE 2.

 

“Event of Default”
shall have the meaning given such term in ARTICLE 7.

 

“Excess Availability”
shall mean, on any date of determination, (x) the lesser of (i) the
sum of (A) the Total Revolving Commitment plus (B) Canadian
Term Outstandings plus U.S. Term Outstandings and (ii) the sum of (A) the
U.S. Borrowing Base plus (B) the Canadian Borrowing Base minus
(y) the Total U.S. Outstandings minus (z) the Total Canadian
Outstandings.

 

“Exchange Rate”
shall mean, on any day, (a) for purposes of determining the U.S. Dollar
Equivalent, the rate at which Canadian Dollars may be exchanged into Dollars
and (b) for purposes of determining the Canadian Dollar Equivalent, the
rate at which Dollars may be exchanged into Canadian Dollars, in each case as
quoted by the Bank of Canada for Canadian Dollars (or, if not so quoted, the
spot rate of exchange quoted for wholesale transactions made by the
Administrative Agent in Toronto, Ontario) at 12:00 Noon, Toronto time, on such
day; provided, that if at the time of any such determination, for any reason,
no such spot rate is being quoted, the Administrative Agent may use any
reasonable method it deems applicable to determine such rate, and such
determination shall be conclusive absent manifest error.

 

26

 

“Facilities”
shall mean any and all real property (including, without limitation, all
buildings, fixtures or other improvements located thereon) now, hereafter or
heretofore owned, leased, operated or used by the Loan Parties (but only as to
portions of buildings actually leased or used) or any of their respective
predecessors or any of their respective Affiliates that are directly or indirectly
controlled by the Loan Parties.

 

“Fair Market Value”
shall mean the price at which property would change hands between a willing
buyer and a willing seller, neither being under any compulsion to buy or to
sell and both having reasonable knowledge of relevant facts determined in a
manner acceptable to the Applicable Agent by an appraiser acceptable to the
Applicable Agent.

 

“Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards,
if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day that
is a Business Day, the average (rounded upwards, if necessary, to the next
1/100 of 1%) of the quotations for such day for such transactions received by
the Administrative Agent from three Federal funds brokers of recognized
standing selected by it.

 

“Fees”
shall collectively mean the Commitment Fees, Letter of Credit Fees and other
fees referred to in Section 2.20, Section 2.21,  Section 2.22, Section 2.30
and Section 2.31.

 

“Fifteen Month Facility
Extension Option” shall have the meaning given such term in Section 2.30.

 

“Filing Date”
shall mean January 26, 2009.

 

“Final Order”
shall have the meaning set forth in Section 4.2(d).

 

“Financial Officer”
shall mean the Chief Financial Officer, Chief Accounting Officer, Controller or
Treasurer of a Loan Party.

 

“Finished Goods” shall
mean completed goods which require no additional processing or manufacturing to
be sold to third party customers by the Loan Parties in the ordinary course of
business.

 

“Foreign Subsidiary”
shall mean any Subsidiary of the Parent that is not organized under the laws of
the United States of America.

 

“Fronting Bank”
shall mean JPMCB or such other commercial bank as may agree with JPMCB to act
in such capacity and shall be reasonably satisfactory to the Loan Parties and
the Administrative Agent.

 

“GAAP”
shall mean accounting principles generally accepted in the United States and
applied in accordance with Section 1.3.

 

27

 

“Governmental Authority”
shall mean the government of the United States of America or Canada, any other
nation or any political subdivision thereof, whether state, provincial or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

 

“Guaranteed Obligations”
shall have the meaning set forth in Section 10.2.

 

“Guarantor”
shall mean each of the Borrowers, the U.S. Guarantors and the Canadian
Guarantors; provided that no Foreign Subsidiary (other than the Canadian
Borrower) shall, or shall be deemed to, guarantee any Secured Obligations of
any entity organized under the laws of the United States nor shall it have any
obligations with respect to any such amounts.

 

“Guaranty”
shall mean ARTICLE 10 of this Agreement.

 

“Hazardous Substances”
shall mean, but is not limited to, any pollutant, contaminant, toxic substance,
hazardous material, dangerous good, asbestos, urea formaldehyde, PCB or
non-hazardous petroleum products or any other substance defined in or regulated
by any Environmental Laws as a hazardous substance.

 

“Hazardous Waste”
shall mean any Hazardous Substance that is a waste, by-product, residual
material or recyclable material, or any other substance which, in each case, is
defined in or regulated by any Environmental Laws as a hazardous waste.

 

“Indebtedness”
shall mean, at any time and with respect to any Person:  (i) all indebtedness of such Person for
borrowed money; (ii) all indebtedness of such Person for the deferred
purchase price of property or services (other than property, including
inventory, and services purchased, and trade accounts payable, accrued expenses
and deferred compensation items arising, in the ordinary course of business); (iii) all
obligations of such Person evidenced by notes, bonds, debentures or other
similar instruments; (iv) all indebtedness of such Person created or
arising under any conditional sale or other title retention agreement with
respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default
are limited to repossession or sale of such property); (v) all obligations
of such Person under leases which have been or should be, in accordance with
GAAP, recorded as Capital Lease Obligations, to the extent required to be so
recorded; (vi) all reimbursement, payment or similar obligations of such
Person, contingent or otherwise, under acceptance, letter of credit or similar
facilities; (vii) all net obligations of such Person in respect of Swap
Agreements (such net obligations to be equal at any time to the termination
value of such Swap Agreements or other arrangements that would be payable by or
to such Person at such time); (viii) all indebtedness referred to in
clauses (i) through (vii) above guaranteed directly or indirectly by
such Person, or in effect guaranteed directly or indirectly by such Person
through an agreement (a) to pay or purchase such indebtedness or to
advance or supply funds for the payment or purchase of such indebtedness, (b) to
purchase, sell or lease (as lessee or lessor) property, or to purchase or sell
services, primarily for the purpose of enabling the debtor to make payment of
such indebtedness or to assure the holder of such indebtedness against loss in
respect of such indebtedness, (c) to supply funds to or in any other
manner invest in the debtor (including any agreement to pay for property or
services irrespective of whether such property is 

 

28

 

received or such services are rendered) or (d) otherwise to assure
a creditor against loss in respect of such indebtedness; and (ix) all
indebtedness referred to in clauses (i) through (viii) above secured
by (or for which the holder of such indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien upon or in property
(including, without limitation, accounts and contract rights) owned by such
Person, even though such Person has not assumed or become liable for the
payment of such indebtedness.

 

“Indemnified Party”
shall have the meaning given such term in Section 9.6.

 

“Initial Order”
shall mean an order of the Canadian Court in the Canadian Cases in
substantially the form of Exhibit A-2, or such other form as is
satisfactory to the Administrative Agent in its exclusive discretion, entered
in accordance with the terms and conditions of Section 4.1, as such
order may be amended or restated to effect the consolidation of the Recognition
Cases and the CCAA Cases, and as such order may be further amended or restated
with the express written consent of the Administrative Agent.

 

“Insufficiency”
shall mean, with respect to any Plan, the amount, if any, of its unfunded benefit
liabilities within the meaning of Section 4001(a)(18) of ERISA.

 

“Intercompany Indebtedness”
shall mean any claim of an Affiliate of a Loan Party against any other
Affiliate of a Loan Party, any claim of a Loan Party against any of its
Affiliates, and any claim of any Affiliate of a Loan Party against a Loan Party
and shall include the face amount of Letters of Credit issued for the account
of Loan Parties other than the Borrowers.

 

“Interest Payment Date”
shall mean (i) as to any Eurodollar Loan and any Discount Rate Loan, the
last day of each consecutive thirty (30) day period running from the
commencement of the applicable Interest Period or Contract Period, and (ii) as
to all ABR Loans and Canadian Prime Rate Loans, the last calendar day of each
month and the date on which any ABR Loans are refinanced with Eurodollar Loans
or Canadian Prime Rate Loans are refinanced with Discount Rate Loans pursuant
to Section 2.13.

 

“Interest Period”
shall mean, as to any Borrowing of Eurodollar Loans, the period commencing on
the date of such Borrowing (including as a result of a refinancing of ABR
Loans) or on the last day of the preceding Interest Period applicable to such
Borrowing and ending on the numerically corresponding day (or if there is no
corresponding day, the last day) in the calendar month that is one, three or
six months thereafter, as the Borrowers may elect in the related notice
delivered pursuant to Section 2.7(b) or Section 2.13;
provided,
however,
that (i) if any Interest Period would end on a day which shall not be a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next
preceding Business Day, and (ii) no Interest Period shall end later than
the Maturity Date.

 

“Interim Canadian Revolving
Commitment” shall have the meaning set forth in Section 2.3(a).

 

“Interim U.S. Revolving
Commitment” shall have the meaning set forth in Section 2.2(a).

 

29

 

“Interim Order”
shall mean, individually and collectively, the Initial Order and the U.S.
Interim Order.

 

“Interim Period”
shall have the meaning set forth in Section 2.2(a).

 

“Inventory” shall
mean all Raw Materials, Work-in-Process and Finished Goods owned, held or
generated by the Loan Parties in the normal course of business.

 

“Inventory Reserves”
shall mean reserves against Inventory equal to the sum of the following:

 

(a)           a reserve for shrink,
or discrepancies that arise pertaining to inventory quantities on hand between
the Loan Parties’ perpetual accounting system, and physical counts of the
inventory which will be determined by the Administrative Agent in its Permitted
Discretion with the variance expressed as a percentage of Inventory; and

 

(b)           a reserve for
Inventory which is designated to be returned to vendor or which is recognized
as damaged or off quality or not to customer specifications by a Loan Party;
and

 

(c)           a revaluation reserve
whereby capitalized favorable variances shall be deducted from Eligible
Inventory and unfavorable variances shall not be added to Eligible Inventory;
and

 

(d)           a lower of the cost
or market reserve for any differences between a Loan Party’s actual cost to
produce versus its selling price to third parties, determined on a product line
basis; and

 

(e)           any other reserve
established by the Applicable Agent in its Permitted Discretion, from time to
time.

 

“Investment Accounts”
shall mean, individually or collectively, the Canadian Investment Account and
the U.S. Investment Account.

 

“Investments”
shall have the meaning given such term in Section 6.11.

 

“ITA” shall
mean the Income Tax Act (Canada), as amended, and any successor thereto, and
any regulations promulgated thereunder.

 

“JPMCB”
shall mean JPMorgan Chase Bank, N.A., a national banking association.

 

“Judgment Currency”
and “Judgment Currency Conversion Date”
shall have the meanings set forth in Section 9.20.

 

“Landlord Lien Waiver”
shall mean a written agreement in such form as is reasonably acceptable to the
Administrative Agent, pursuant to which a Person shall waive or subordinate its
rights and claims as landlord in any Collateral of the Loan Parties for unpaid 

 

30

 

rents, grant access to the Administrative Agent for the repossession
and sale of such Collateral and make other agreements relative thereto.

 

“LC Exposure”
shall mean the sum of the Commercial LC Exposure and the Standby LC
Exposure.  The LC Exposure of any
Revolving Lender at any time shall be its Applicable Percentage of the total LC
Exposure at such time.

 

“LC Reserve Account”
shall have the meaning set forth in Section 11.2.

 

“Lenders”
shall mean the Canadian Lenders and the U.S. Lenders.

 

“Lender Affiliate”
shall mean, (i) with respect to any Lender, (a) an Affiliate of such
Lender or (b) any entity (whether a corporation, partnership, trust or
otherwise) that is engaged in making, purchasing, holding or otherwise
investing in loans and similar extensions of credit in the ordinary course of
its business and is administered or managed by such Lender or an Affiliate of
such Lender and (ii) with respect to any Lender that is a fund which
invests in loans and similar extensions of credit, any other fund that invests
in loans and similar extensions of credit and is managed by the same investment
advisor as such Lender or by an Affiliate of such investment advisor.

 

“Letters of Credit”
shall mean the Canadian Revolving Facility Letters of Credit and the U.S.
Revolving Facility Letters of Credit.

 

“Letter of Credit Account”
shall mean the non-interest bearing account established by the U.S. Borrower
under the sole and exclusive control of the Administrative Agent maintained at
the office of the Administrative Agent at 270 Park Avenue, New York, New York
10017 designated as the “Smurfit-Stone U.S. Letter of Credit Account” that
shall be used solely for the purposes set forth in Section 2.4(c) and
Section 2.14.

 

“Letter of Credit Fees”
shall mean the fees payable in respect of Letters of Credit pursuant to Section 2.22.

 

“Letter of Credit
Outstandings” shall mean, at any time, the sum of (i) the
U.S. Letter of Credit Outstandings plus (ii) the Canadian Letter of Credit
Outstandings.

 

“Lien”
shall mean (i) any mortgage, deed of trust, pledge, security interest,
encumbrance, lien, assignment for security, hypothecation, prior claim (within
the meaning of the Civil Code of Quebec), encumbrance or charge of any kind
whatsoever (including any conditional sale or other title retention agreement
or any lease in the nature thereof), (ii) in the case of securities, any
purchaser option, call or similar right of a third party with respect to such
securities, and (iii) any other arrangement having the effect of providing
security.

 

“Loan” shall
mean each Canadian Revolving Loan, U.S. Revolving Loan, Canadian Term Loan, and
U.S. Term Loan.

 

“Loan Documents”
shall mean this Agreement, the Letters of Credit, any Letter of Credit
applications, the Collateral Documents and any other instrument or agreement
executed and delivered in connection herewith.

 

31

 

“Loan Party”
and “Loan Parties” shall mean the U.S.
Borrower, the Canadian Borrower, the Parent, the other U.S. Guarantors and the
Canadian Guarantors.

 

“Loan Party Joinder
Agreement” shall have the meaning give such term in Section 5.11.

 

“Material Adverse Effect”
shall mean (i) a material adverse effect upon the business, operations,
assets, properties or financial condition of the Parent and its consolidated
Subsidiaries, taken as a whole, (ii) the material impairment of the
ability of any Loan Party to perform its Obligations or (iii) a material
adverse effect upon the legality, validity, binding effect or enforceability
against any Loan Party of a Loan Document to which it is a party.

 

“Maturity Date”
shall mean January 28, 2010; provided, that upon the effectiveness
of the Fifteen Month Facility Extension Option, the Maturity Date shall be
extended to April 28, 2010; provided, further that upon the
effectiveness of the Eighteen Month Facility Extension Option, the Maturity
Date shall be extended to July 28, 2010.

 

“Maximum Liability”
shall have the meaning given such term in Section 10.11.

 

“Minority Lenders”
shall have the meaning given such term in Section 9.10(b).

 

“Moody’s”
shall mean Moody’s Investors Service, Inc. or any successor to the rating
agency business thereof.

 

“Multiemployer Plan”
shall mean a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA to which any Loan Party or any ERISA Affiliate is making or accruing an
obligation to make contributions, or has within any of the preceding five plan
years made or accrued an obligation to make contributions.

 

“Multiple Employer Plan”
shall mean a Single Employer Plan, which (i) is maintained for employees
of a Loan Party or an ERISA Affiliate and at least one Person other than such
Loan Party and its ERISA Affiliates or (ii) was so maintained and in
respect of which a Loan Party or an ERISA Affiliate could have liability under Section 4064
or 4069 of ERISA in the event such Plan has been or were to be terminated.

 

“Net Orderly Liquidation
Value” shall mean, with respect to machinery, equipment or
Inventory of any Person, the orderly liquidation value thereof as determined in
a manner acceptable to the Applicable Agent by an appraiser acceptable to the
Applicable Agent, net of all costs of liquidation thereof.

 

“Net Orderly Liquidation
Value In Place” shall mean, with respect to machinery,
equipment, Inventory or real estate of any Person, the orderly liquidation
value thereof when such assets are being purchased in place to remain in
operation in “as is” condition, taking advantage of all leasehold and site
improvements designed to facilitate such assets’ operation, as determined in a
manner acceptable to the Applicable Agent by an appraiser acceptable to the
Applicable Agent, net of all costs of liquidation thereof.

 

32

 

“Net Proceeds”
means, with respect to any event, (a) the cash proceeds received in
respect of such event including (i) any cash received in respect of any
non-cash proceeds (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable or purchase
price adjustment receivable or otherwise, but excluding any interest payments),
but only as and when received, (ii) in the case of a casualty, insurance
proceeds and (iii) in the case of a condemnation or similar event,
condemnation awards and similar payments, net of (b) the sum of (i) all
reasonable fees and out-of-pocket expenses paid to third parties (other than
Affiliates) in connection with such event, (ii) in the case of a sale,
transfer or other disposition of an asset that is subject to a Non-Primed Lien
(including pursuant to a sale and leaseback transaction or a casualty or a
condemnation or similar proceeding), the amount of all payments required to be
made as a result of such event to repay such Non-Primed Liens and (iii) the
amount of all taxes paid (or reasonably estimated to be payable) and the amount
of any reserves established to fund contingent liabilities reasonably estimated
to be payable, in each case during the year that such event occurred or the
next succeeding year and that are directly attributable to such event (as
determined reasonably and in good faith by a Financial Officer).

 

“Non-Paying Guarantor”
shall have the meaning set forth in Section 10.12.

 

“Non-Primed Liens”
shall mean those Liens securing: (i) certain pre-petition claims of
warehousemen, shippers, Permitted Liens and other classes of claimants
acceptable to the Administrative Agent against the Loan Parties that in each
case: (x) are senior in priority to the Pre-Petition Credit Agreement
Liens; and (y) are set forth on Schedule 2.24; and (ii) the
Calpine Debt.

 

“Obligation Currency”
shall have the meaning set forth in Section 9.20.

 

“Obligations”
shall mean all unpaid principal of and accrued and unpaid interest on the
Loans, the reimbursement of all amounts drawn on Letters of Credit, all accrued
and unpaid fees and all expenses, reimbursements, indemnities and other
obligations of the Loan Parties to the Lenders or to any Lender, any Agent, any
Fronting Bank or any indemnified party arising under the Loan Documents.

 

“Obligated Party”
shall have the meaning set forth in Section 10.3.

 

“Orders”
shall mean, collectively, (i) the Interim Order and (ii) the Final
Order.

 

“Organizational Documents”
shall mean (i) with respect to any corporation, its certificate or
articles of incorporation, as amended, and its by-laws, as amended, (ii) with
respect to any limited partnership, its certificate of limited partnership or
formation, as amended, and its partnership agreement, as amended, (iii) with
respect to any general partnership, its partnership agreement, as amended, (iv) with
respect to any limited liability company, its certificate of formation or
articles of organization, as amended, and its operating agreement, as amended,
and (v) with respect to any unlimited liability company, its certificate
of formation, as amended, and its memorandum and articles of association, as
amended.  In the event any term or
condition of this Agreement or any other Loan Document requires any Organizational
Document to be certified by a secretary of state or similar governmental
official, the reference to any such 

 

33

 

“Organizational Document” shall only be to a document of a type
customarily certified by such governmental official.

 

“Other Taxes”
shall have the meaning given such term in Section 2.19(b).

 

“Parent”
shall have the meaning set forth in the Introduction.

 

“Participant”
shall have the meaning set forth in Section 9.3.

 

“Patriot Act”
shall have the meaning given such term in Section 9.19.

 

“Paying Guarantor”
shall have the meaning set forth in Section 10.12.

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation, or any successor agency or
entity performing substantially the same functions.

 

“Pension Plan”
shall mean a defined benefit pension (as defined in Section 414(j) of
the Code and Section 3(35) of ERISA) which meets and is subject to the
requirements of Section 401(a) of the Code.

 

“Permitted Discretion”
shall mean a determination made in good faith and in the exercise of reasonable
(from the perspective of a secured asset-based lender) business judgment,
following either (x) consultation with the Borrowers or (y) two (2) Business
Days’ advance notice to the Borrowers.

 

“Permitted Investments”
shall mean (i) direct obligations of, or obligations
the principal of and interest on which are unconditionally guaranteed by, the
United States of America (or by any agency thereof to the extent such
obligations are backed by the full faith and credit of the United States of America)
or Canada (or by any agency thereof to the extent such obligations are backed
by the full faith and credit of Canada), in each case maturing within one year
from the date of acquisition thereof, (ii) without limiting
the provisions of paragraph (iv) below, investments
in commercial paper maturing within 270 days from the date of acquisition
thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Moody’s, (iii) investments
in certificates of deposit, banker’s acceptances and time deposits (including
Eurodollar time deposits) maturing within six months from the date of
acquisition thereof issued or guaranteed by or placed with (a) any
domestic office of the Administrative Agent or the bank with whom the Loan
Parties maintain their cash management system, provided, that if such bank is
not a Lender hereunder, such bank shall have entered into an agreement with the
Administrative Agent pursuant to which such bank shall have waived all rights
of setoff and confirmed that such bank does not have, nor shall it claim, a
security interest therein or (b) any domestic office of any other
commercial bank of recognized standing organized under the laws of the United
States of America or any State thereof that has a combined capital and surplus
and undivided profits of not less than US$500,000,000 and is the principal
banking Subsidiary of a bank holding company having a long-term unsecured debt
rating of at least “A” or the equivalent thereof from S&P or at least “A2”
or the equivalent thereof from Moody’s, (iv) investments in commercial
paper maturing within six months from the date of acquisition thereof and
issued by (a) the holding company of the Administrative Agent or (b) the
holding company of any other commercial bank of recognized standing 

 

34

 

organized under the laws of the United States of America or any State
thereof that has (1) a combined capital and surplus in excess of
US$500,000,000 and (2) commercial paper rated at the highest credit rating
obtainable from S&P or from Moody’s, (v) investments in fully
collateralized repurchase agreements with a term of not more than thirty (30)
days for underlying securities of the types described in clause (i) above
entered into with any office of a bank or trust company meeting the
qualifications specified in clause (iii) above, (vi) investments in
money market funds substantially all the assets of which are comprised of
securities of the types described in clauses (i) through (v) above,
and (vii) to the extent owned by the Loan Parties on the Filing Date,
investments in joint ventures as disclosed in Schedule 6.11 or in the
capital stock of any direct or indirect Subsidiary of the Loan Parties as
disclosed in Schedule
3.5.

 

“Permitted Liens”
shall mean (i) Liens set forth on Schedule 3.6, (ii) Liens
in favor of the Agents on behalf of the Secured Parties, (iii) the CCAA
Charges, (iv) Liens imposed by law (other than Environmental Liens and any
Lien imposed under ERISA) for taxes, assessments or charges of any Governmental
Authority for claims not yet due or which are being contested in good faith by
appropriate proceedings and with respect to which adequate reserves or other
appropriate provisions are being maintained in accordance with GAAP; (v) Liens
(other than any Lien imposed under ERISA) incurred or deposits made in
connection with workers’ compensation, unemployment insurance and other types
of social security benefits or to secure the performance of tenders, bids, leases,
contracts (other than for the repayment of Indebtedness), statutory obligations
and other similar obligations incurred in the ordinary course of business; (vi) non-material
Liens of landlords and Liens of statutory carriers, warehousemen, mechanics, materialmen
and other Liens (other than Environmental Liens and any Lien imposed under
ERISA) in existence on the Filing Date or thereafter imposed by law and created
in the ordinary course of business; (vii) deposits to secure the
performance of tenders, bids, and other contracts, other than for the payment
of borrowed money, arising in the ordinary course of business; (viii) easements
(including, without limitation, reciprocal easement agreements and utility
agreements), all applicable development, subdivision, use and site plan
agreements, or similar agreements, rights-of-way, covenants, consents,
reservations, encroachments, variations and zoning and other restrictions,
charges or encumbrances (whether or not recorded) and interest of ground
lessors, which do not materially interfere with the ordinary conduct of the
business of any Loan Party, and which do not materially detract from the value
of the property to which they attach or materially impair the use thereof to
any Loan Party; (ix) purchase money Liens (including Capital Lease
Obligations) upon or in any property acquired or held in the ordinary course of
business to secure the purchase price of such property or to secure
Indebtedness permitted by Section 6.3(iii) solely for the purpose of financing
the acquisition of such property; (x) Liens created in connection with
extensions, renewals or replacements, including replacement Liens granted by
the Bankruptcy Court, of any Lien referred to in clauses (i) through (ix) above,
provided that the principal amount of the obligation secured thereby is not
increased and that any such extension, renewal or replacement is limited to the
property originally encumbered thereby; (xi) pre-petition Liens granted
pursuant to the Pre-Petition Credit Agreement or the Security Documents (as
defined therein) by the Loan Parties party to the Pre-Petition Credit Agreement
for the benefit of the Secured Parties (as defined in such Security Documents);
(xii) Liens junior to the senior liens contemplated hereby that are granted by
any of the Orders pursuant to 11 U.S.C. §364(d)(1) as adequate protection
to the Primed Parties, provided that the Orders provide that the holders
of such junior liens shall not be permitted to take any action to enforce their
rights with respect to such junior liens as long as any amounts are 

 

35

 

outstanding under this Agreement or the Lenders have any Commitment
hereunder; (xiii) Liens on assets of Foreign Subsidiaries (other than the
Canadian Loan Parties) securing Indebtedness permitted by Section 6.3(vi);
(xiv) Liens arising from the granting of a license to enter into or use any
asset of a Loan Party in the ordinary course of business of such Loan Party
that does not interfere in any material respect with the use or application by
such Loan Party of the asset subject to such license; (xv) Liens arising by
operation of law on insurance policies and proceeds thereof to secure premiums
thereunder; (xvi) Liens arising out of judgments or awards in respect of which
an appeal or proceeding for review is being diligently prosecuted, provided
that (x) a stay of execution pending such appear or proceeding for review
has been obtained, (y) full provision for the payment of the indebtedness
secured by such Lien has been made on the books of such Person if and to the
extent required by GAAP, and (z) an Event of Default under Section 7.1
shall not have occurred as a result of the incurrence of such Lien; (xvii)
Liens consisting of cash deposits in an amount not to exceed US$10,000,000 with
swap counterparties as may be required pursuant to the terms of Swap Agreements
permitted by Section 6.16; (xviii) Liens granted by Calpine to
secure the Calpine Debt; (xix) rights of collecting banks or other financial
institutions having a right of setoff, revocation, refund or chargeback with
respect to money or instruments on deposit with or in the possession of such
financial institution; (xx) Liens with respect to a court ordered
administration charge in the Canadian Cases, junior to the CCAA DIP Lenders
Charge, in an aggregate amount not in excess of US$4,000,000 for the payment of
(a) allowed and unpaid professional fees and disbursements incurred by
professionals retained by the Canadian Loan Parties and (b) allowed and unpaid
professional fees and disbursements of the monitor in the Canadian Cases
including allowed and unpaid legal fees and expenses of its counsel (and
including any allowed and unpaid professional fees and disbursements incurred
by the parties referred to in (a) and (b), prior to the occurrence of such
Event of Default); and (xxi) other Liens securing Indebtedness in an aggregate
amount outstanding at any time not in excess of US$1,000,000.

 

“Person”
shall mean any natural person, corporation, partnership, trust, joint venture,
association, company, estate, unincorporated organization or government or any
agency or political subdivision thereof.

 

“Plan”
shall mean a Single Employer Plan or a Multiemployer Plan.

 

“Prepayment Event” means (a)
any Asset Sale; or (b) any casualty or other insured damage to, or any taking
under power of eminent domain or by condemnation or similar proceeding of, any
property or asset of any Loan Party.

 

“Pre-Petition Agent” shall have the
meaning set forth in Section 2.24.

 

“Pre-Petition Credit Agreement” shall
mean that certain Credit Agreement dated as of November 1, 2004, as amended,
supplemented or otherwise modified prior to the Filing Date, among the
Borrowers, as borrowers, the Parent and certain of the other Loan Parties, as
guarantors, the banks and other financial institutions from time to time
parties thereto, and Deutsche Bank Trust Company Americas, as administrative
agent.

 

“Pre-Petition Debt” shall have the
meaning set forth in Section 2.24.

 

36

 

“Pre-Petition Payment”
shall mean a payment (by way of adequate protection or otherwise) of principal
or interest or otherwise on account of any pre-petition/pre-filing Indebtedness
or trade payables or other pre-petition/pre-filing claims against the Loan
Parties, including, without limitation, reclamation claims and materialmen’s
liens.

 

“Pre-Petition Secured
Lenders” shall have the meaning set forth in Section 2.24.

 

“Primed Liens” shall
have the meaning set forth in Section 2.24.

 

“Primed Parties”
shall mean the parties who hold Primed Liens.

 

“Priority Payables”
means, with respect to any Person, any amount payable by such Person (i) solely
to the extent that it is owing and is secured by a Lien which ranks or is
capable of ranking prior to or pari passu with the Liens created by the
Collateral Documents, including amounts which are past due and owing for wages,
vacation pay, severance pay, employee deductions, sales tax, excise tax, Tax
payable pursuant to Part IX of the Excise Tax Act (Canada) (net of GST
input credits), income tax, workers compensation, government royalties, pension
fund obligations and overdue Taxes and (ii) is not being contested by such
Person in good faith by appropriate proceedings promptly instituted and
diligently conducted in a manner that stays enforcement of such Lien and with
respect to whom such Person has established a cash reserve on its books for the
full amount thereof.

 

“Quebec Security Agreements”
shall mean any (i) Deed of Hypothec and Issue of Bonds made by any Canadian
Loan Party in favor of the Applicable Agent, as fondé de pouvoir under Article 2692
of the Civil Code of Quebec, to be executed before a notary of the Province of
Quebec, (ii) bond issued by any Canadian Loan Party pursuant to such Deed
of Hypothec and Issue of Bonds, and (iii) pledge agreement to be granted
by any Canadian Loan Party in respect of any bond issued under such Deed of
Hypothec and Issue of Bonds.

 

“Raw Materials” shall
mean any items or materials used or consumed in the manufacture of goods to be
sold by the Loan Parties in the ordinary course of business.

 

“Receivables Securitization
Entities” shall mean Stone Receivables Corporation and SSCE
Funding, LLC.

 

“Receivables Securitization
Programs” shall mean the Canadian Receivables Securitization
Program and the U.S. Receivables Securitization Program.

 

“Receivables Securitization Termination
Date” means the date on which each of the
Receivables Securitization Programs are terminated in accordance with the
requirements of Section 5.13, as determined by the Administrative
Agent in its exclusive discretion.

 

“Recognition Cases”
shall mean the recognition proceedings commenced by the Canadian Loan Parties
pursuant to the Bankruptcy and Insolvency Act (Canada) of the U.S. Cases with
respect to Smurfit-MBI and SLP Finance General Partnership.

 

“Register”
shall have the meaning set forth in Section 9.3.

 

37

 

“Related Parties”
shall mean, with respect to any specified Person, such Person’s Affiliates and
the respective directors, officers, employees, agents and advisors of such
Person and such Person’s Affiliates.

 

“Release”
shall mean the disposing, discharging, injecting, spilling, pumping, leaking,
leaching, dumping, emitting, escaping, emptying, pouring, seeping or migrating
of any Hazardous Substance or Hazardous Waste into or upon any land or water or
air, or otherwise entering into the environment.

 

“Rent Reserve”
with respect to any leased location where any Collateral subject to Liens
arising by operation of law is located, a reserve for rent at such location in
an amount established in the Applicable Agent’s Permitted Discretion.

 

“Reorganization Plan”
shall mean a bankruptcy plan of reorganization or a CCAA plan or arrangement in
any of the Cases.

 

“Required Lenders”
shall mean, at any time, Lenders having aggregate Total Canadian Outstandings,
Total U.S. Outstandings and unused Commitments representing more than 50% of
the aggregate Total Canadian Outstandings, Total U.S. Outstandings and unused
Commitments at such time.

 

“Requirement of Law”
means, as to any Person, the Organizational Documents or other governing
documents of such Person, and any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or
to which such Person or any of its property is subject.

 

“Reserves”
means Dilution Reserves, Inventory Reserves, Rent Reserves and any other
reserves established by the Applicable Agent in its Permitted Discretion
(including, without limitation, reserves for accrued and unpaid interest on the
Secured Obligations, Banking Services Reserves, reserves for consignee’s,
warehousemen’s and bailee’s charges, reserves for Swap Obligations, reserves
for environmental liabilities of any Loan Party, reserves for contingent
liabilities of any Loan Party, reserves for uninsured losses of any Loan Party,
reserves for uninsured, underinsured, un-indemnified or under-indemnified liabilities
or potential liabilities with respect to any litigation, reserves for cash held
in deposit accounts of Smurfit-Stone Puerto Rico, Inc. during such times
as cash dominion is in effect under Section 5.7 and reserves for
taxes, fees, assessments, and other governmental charges) with respect to the
Collateral or any Loan Party, with regard to the Canadian Borrowing Base,
reserves for Priority Payables outstanding on or after the Effective Date that
may affect the collectability of such accounts or the saleability of such
inventory and that have not already been taken into account in the calculation
of the applicable Borrowing Base to the extent such Priority Payables do not
constitute amounts otherwise secured by the Directors’ Charge.

 

“Reset Date”
shall have the meaning set forth in Section 1.4.

 

“Revolving Commitment”
shall mean the Canadian Revolving Commitment and the U.S. Revolving Commitment.

 

38

 

“Revolving Loans”
shall mean, individually or collectively, U.S. Revolving Loans and Canadian
Revolving Loans.

 

“S&P”
shall mean Standard & Poor’s Rating Services, a division of The
McGraw-Hill Companies, Inc., or any successor to the rating agency
business thereof.

 

“Schedule I Banks”
shall mean the banks listed in Schedule I of the Bank Act (Canada) having
equity of more than C$8,000,000,000.

 

“Secured Obligations”
means the Canadian Secured Obligations and the U.S. Secured Obligations.

 

“Secured Parties”
means the Agents, the Lenders, the Fronting Banks and all of the Lenders and
the Affiliates of the Lenders to whom Banking Service Obligations or Swap
Obligations are owed.

 

“Security Agreements”
means, collectively, the Security and Pledge Agreement and the Canadian
Security Agreement, and “Security Agreement”
means any one of them.

 

“Security and Pledge
Agreement” shall have the meaning given such term in Section 4.1(c).

 

“Single Employer Plan”
shall mean a single employer plan, as defined in Section 4001(a)(15) of
ERISA, that (i) is maintained for employees of a Loan Party or an ERISA
Affiliate or (ii) was so maintained and in respect of which a Loan Party
could have liability under Section 4069 of ERISA in the event such Plan
has been or were to be terminated.

 

“Standby LC Exposure”
means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding standby Letters of Credit at such time plus (b) the aggregate
amount of all disbursements relating to standby Letters of Credit that have not
yet been reimbursed by or on behalf of the Borrowers at such time.  The Standby LC Exposure of any Revolving
Lender at any time shall be its Applicable Percentage of the total Standby LC
Exposure at such time.

 

“Statutory Reserve Rate”
shall mean on any date the percentage (expressed as a decimal) established by
the Board and any other banking authority which is the then stated maximum rate
for all reserves (including but not limited to any emergency, supplemental or
other marginal reserve requirements) applicable to any member bank of the
Federal Reserve System in respect of Eurocurrency Liabilities (or any successor
category of liabilities under Regulation D issued by the Board, as in effect
from time to time).  Such reserve
percentages shall include, without limitation, those imposed pursuant to said
Regulation.  The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change
in such percentage.

 

“Subsidiary”
shall mean, with respect to any Person (herein referred to as the “parent”),
any corporation, association or other business entity (whether now existing or
hereafter organized) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary
voting power for the election of directors is, at the 

 

39

 

time as of which any determination is being made, owned or controlled
by the parent or one or more subsidiaries of the parent or by the parent and
one or more subsidiaries of the parent.

 

“Super-majority Lenders”
shall mean, at any time, Lenders having aggregate Total Canadian Outstandings,
Total U.S. Outstandings and unused Commitments representing at least 66-2/3% of
the aggregate Total Canadian Outstandings, Total U.S. Outstandings and unused
Commitments at such time.

 

“Superpriority Claim”
shall mean a claim against any U.S. Loan Party in any of the U.S. Cases which
is a superpriority administrative expense claim having priority over any or all
administrative expenses of the kind specified in Sections 503(b) or 507(b) of
the Bankruptcy Code.

 

“Swap Agreement”
means any agreement with respect to any swap, forward, future or derivative
transaction or option or similar agreement involving, or settled by reference
to, one or more rates, currencies, commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any
combination of these transactions.

 

“Swap Obligations”
of a Person means any and all obligations of such Person, whether absolute or
contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions
therefor), under (a) any and all Swap Agreements, and (b) any and all
cancellations, buy backs, reversals, terminations or assignments of any Swap
Agreement transaction, in each case that is permitted by Section 6.16.

 

“Taxes”
shall have the meaning given such term in Section 2.19.

 

“Term Loans”
shall mean, individually or collectively, the U.S. Term Loans and the Canadian
Term Loans.

 

“Term Loan Commitment”
shall mean the U.S. Term Loan Commitment and the Canadian Term Loan Commitment.

 

“Termination Date”
shall mean the earliest to occur of (i) the Maturity Date, (ii) the
Effective Date, (iii) the forty-fifth (45th) day after the entry of the
Interim Order if the Final Order has not been entered prior to such forty-fifth
day, and (iv) the acceleration of the Loans and the termination of the
Revolving Commitment in accordance with the terms hereof.

 

“Termination Event”
shall mean (i) a “reportable event”, as such term is described in Section 4043
of ERISA and the regulations issued thereunder (other than a “reportable event”
not subject to the provision for 30-day notice to the PBGC under Section 4043
of ERISA or such regulations) or an event described in Section 4068 of
ERISA excluding events described in Section 4043(c)(9) of ERISA or 29
CFR §§ 2615.21 or 2615.23, or (ii) the withdrawal of any Loan Party or any
ERISA Affiliate from a Multiple Employer Plan during a plan year in which it
was a “substantial employer”, as such term is defined in Section 4001(a)(2) of
ERISA, or the incurrence of liability by any Loan Party or any ERISA Affiliate
under Section 4064 of ERISA upon the termination of a Multiple Employer
Plan, or 

 

40

 

(iii) providing notice of intent to terminate a Plan pursuant to Section 4041(c) of
ERISA or the treatment of a Plan amendment as a termination under Section 4041
of ERISA, or (iv) the institution of proceedings to terminate a Plan by
the PBGC under Section 4042 of ERISA, or (v) any other event or
condition (other than the commencement of the Cases and the failure to have
made any contribution accrued as of the Filing Date but not paid) which would
reasonably be expected to constitute grounds under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to administer, any
Plan, or the imposition of any liability under Title IV of ERISA (other than
for the payment of premiums to the PBGC).

 

“Total Canadian
Outstandings”  shall mean,
at any time of determination, the Canadian Revolving Credit Utilization plus
the Canadian Term Outstandings.

 

“Total Revolving Commitment” shall mean,
collectively, the Canadian Revolving Commitments and the U.S. Revolving
Commitments.

 

“Total U.S. Outstandings”
shall mean, at any time of determination, the U.S. Revolving Credit Utilization
plus the U.S. Term Outstandings.

 

“Transferee”
shall have the meaning given such term in Section 2.19.

 

“Type”
when used in respect of any Loan or Borrowing shall refer to the Rate of
interest by reference to which interest on such Loan or on the Loans comprising
such Borrowing is determined.  For purposes
hereof, “Rate” shall mean the Canadian Prime
Rate, the Discount Rate, the Adjusted LIBO Rate and the Alternate Base Rate.

 

“UCC” means
the Uniform Commercial Code as in effect from time to time in the State of New
York or any other state the laws of which are required to be applied in
connection with the issue of perfection of security interests. In addition, “UCC” means with respect to the
Canadian Loan Parties or any Collateral of the Canadian Loan Parties subject
thereto, the Personal Property Security Act (the “PPSA”)
or similar legislation as from time to time in effect in the Province of
Ontario or any other jurisdiction the laws of which are required to be applied
in connection with the issue of perfection of security interests including,
without limitation, the Civil Code of Quebec.

 

“Unfunded Current Liability”
shall mean, with respect to any Pension Plan, the amount, if any, by which the
actuarial present value of the accumulated plan benefits under such Pension
Plan as of the close of its most recent plan year exceeds the fair market value
of the assets allocable thereto, each determined in accordance with Statement
of Financial Accounting Standards No. 35, based upon the actuarial
assumptions used by such Pension Plan’s actuary in the most recent annual
valuation of such Pension Plan.

 

“Unused Revolving Commitment”
shall mean, at any time, (i) the Total Revolving Commitment less (ii) the
sum of (a) the Canadian Revolving Credit Utilization and (b) the U.S.
Revolving Credit Utilization.

 

“U.S. Borrower”
shall have the meaning set forth in the Introduction.

 

41

 

“U.S. Borrowing Base”
shall mean, at the time of any determination, an amount equal to the sum,
without duplication, of (a) 85% of Eligible Accounts of the U.S. Loan
Parties at such time plus (b) the lesser of (i) 65% of
Eligible Inventory of the U.S. Loan Parties at such time and (ii) 85% of
the Net Orderly Liquidation Value of Eligible Inventory of the U.S. Loan
Parties at such time (in each case with respect to clauses (i) and (ii) with
any Eligible Inventory to be valued at the lower of cost (determined on a
first-in, first-out basis) or market), plus (c) the U.S. PP&E
Component, minus (d) the Reserves at such time, minus (e) the
Carve-Out.  The U.S. Borrowing Base at
any time shall be determined by reference to the most recent Borrowing Base
Certificate delivered to the Administrative Agent pursuant to Section 5.8
of this Agreement.

 

“U.S. Cases”
shall mean the cases under the Bankruptcy Code of the Loan Parties.

 

“U.S. Conversion Notice”
shall have the meaning given such term in Section 9.23(a).

 

“U.S. Dollar Equivalent”
shall mean, on any date of determination, with respect to any amount in
Canadian Dollars, the equivalent in Dollars of such amount determined by the
Administrative Agent using the Exchange Rate in effect on such date of
determination.

 

“U.S. Guaranteed
Obligations” shall have the meaning set forth in Section 10.1.

 

“U.S. Guarantor”
and “U.S. Guarantors” means,
individually or collectively, the Parent and each of the Domestic Subsidiaries
party to this Agreement.  As of the
Closing Date, the U.S. Guarantors are the Parent, Calpine, Cameo Container
Corporation, an Illinois corporation, Lot 24D Redevelopment Corporation, a
Missouri corporation, Atlanta & Saint Andrews Bay Railway Company, a
Florida corporation, Stone International Services Corporation, a Delaware
corporation, Stone Global, Inc., a Delaware corporation, Stone Connecticut
Paperboard Properties, Inc., a Delaware corporation, Smurfit-Stone Puerto
Rico, Inc., a Puerto Rico corporation, Smurfit Newsprint Corporation, a
Delaware corporation, SLP Finance I, Inc., a Delaware corporation, and SLP
Finance II, Inc., a Delaware corporation, each of which is a debtor and
debtor-in-possession in a case pending under Chapter 11 of the Bankruptcy Code,
and, after the Closing Date, shall include each subsequently organized Domestic
Subsidiary and each direct parent thereof.

 

“U.S. Interim Order”
shall mean an order of the Bankruptcy Court in the U.S. Cases in substantially
the form of Exhibit A-1, or such other form as is satisfactory to
the Administrative Agent in its exclusive discretion, entered in accordance
with the terms and conditions of Section 4.1, as such order may be
amended, supplemented or restated with the express written consent of the
Administrative Agent in its exclusive discretion.

 

“U.S. Investment Account”
shall mean the account established by the U.S. Borrower pursuant to Section 2.7(c) and
designated as the “Smurfit-Stone Investment Account” with JPMCB.

 

“U.S. Lender”
means, as of any date of determination, a Person constituting a U.S. Term Loan
Lender or U.S. Revolving Lender.

 

42

 

“U.S. Letter of Credit
Outstandings” shall mean, at any time of determination, the sum
of (a) the aggregate undrawn amount of all outstanding U.S. Revolving
Facility Letters of Credit and (b) the aggregate amount that has been
drawn under any U.S. Revolving Facility Letter of Credit and has not been
reimbursed by the U.S. Borrower or another Loan Party at such time.  The
U.S. Letter of Credit Outstandings of any U.S. Revolving Lender at any time
shall equal its Applicable Percentage of the aggregate U.S. Letter of Credit
Outstandings at such time.

 

“U.S. Loan Party”
and “U.S. Loan Parties” shall mean,
individually or collectively, the U.S. Borrower, the Parent and the other U.S.
Guarantors.

 

“U.S. Loans”
shall mean the U.S. Revolving Loans and the U.S. Term Loans.

 

“U.S. PP&E Component”
shall mean the lesser of (x) (i) during the period commencing with the Closing Date until the
twelve (12) month anniversary of the Closing Date, US$150,000,000, (ii) during
the period commencing with the twelve (12) month anniversary of the Closing
Date until the fifteen (15) month anniversary of the Closing Date,
US$100,000,000, and (iii) on the fifteen (15) month anniversary of the
Closing Date and thereafter, US$75,000,000, in each case minus
the Canadian PP&E Component at such time, and (y) the greater of (A) (i) 50%
of the Net Orderly Liquidation Value of Eligible Equipment of the U.S. Loan
Parties at such time plus (ii) 50% of the Fair Market Value of
Eligible Real Property of the U.S. Loan Parties at such time (as set forth in
the most recent third party real estate appraisal in form and substance
satisfactory to the Administrative Agent), and (B) 20% of the Net Orderly
Liquidation Value In Place of (i) Eligible Equipment of the U.S. Loan
Parties at such time and (ii) Eligible Real Property of the U.S. Loan
Parties at such time.  Notwithstanding
the foregoing sentence, until the earlier of (x) such time as appraisals
satisfactory to the Administrative Agent are completed pursuant to Section 5.6
and (y) May 28, 2009, or such later date as the Administrative Agent
may approve in its exclusive discretion, the U.S. PP&E Component shall be
US$150,000,000 minus the Canadian PP&E Component.

 

“U.S. Receivables
Securitization Program” shall mean (a) that certain Master
Indenture, dated as of November 23, 2004, between SSCE Funding, LLC (as
used in this definition, the “Securitization Issuer”)
and Deutsche Bank Trust Company Americas, as Indenture Trustee (as used in this
Section and in such capacity, the “Securitization Trustee”)
and (b) that certain Series 2004-1 Indenture Supplement to Master
Indenture, dated as of November 23, 2004, between the Securitization
Issuer and the Securitization Trustee, in each case, as amended, restated,
modified or waived from time to time.

 

“U.S. Revolving Commitment”
shall mean, with respect to each U.S. Revolving Lender, the commitment of such
Lender to make U.S. Revolving Loans hereunder and to acquire participations in
U.S. Revolving Facility Letters of Credit in the amount set forth opposite its
name on Annex A-2 hereto or as may subsequently be set forth in the
Register from time to time, as the same may be reduced from time to time
pursuant to the terms of this Agreement.  As of the Closing Date, the
aggregate amount of the U.S. Revolving Commitments of the U.S. Revolving Lenders
is US$250,000,000.

 

43

 

“U.S. Revolving Credit
Utilization” shall mean, at any time of determination, the sum
of (a) the aggregate principal amount of U.S. Revolving Loans outstanding
at such time and (b) the U.S. Letter of Credit Outstandings at such time.

 

“U.S. Revolving Facility
Letters of Credit” shall mean any irrevocable letter of credit
issued pursuant to Section 2.4 for the account of the U.S. Borrower
or a Domestic Subsidiary by a Fronting Bank pursuant to the terms and
conditions of ARTICLE 2, which letter of credit shall be (i) a
standby or import documentary letter of credit, (ii) issued for purposes
that are consistent with the ordinary course of business of the Loan Parties or
for such other purposes as are acceptable to the Administrative Agent, (iii) denominated
in Dollars and (iv) otherwise in such form as may be approved from time to
time by the Administrative Agent and the applicable Fronting Bank.

 

“U.S. Revolving Lenders”
shall mean the Lenders having U.S. Revolving Commitments or holding U.S.
Revolving Loans.

 

“U.S. Revolving Loan”
means a revolving loan to the U.S. Borrower or the Canadian Borrower made
pursuant to Section 2.1(b)(i) in Dollars.

 

“U.S. Secured Obligations”
means (a) all Obligations owing by any U.S. Loan Party, (b) all
Banking Services Obligations owing by any U.S. Loan Party, (c) Swap
Obligations owing by any U.S. Loan Party to one or more U.S. Lenders or their
respective Affiliates; provided that at or prior to the time that any
transaction relating to a Swap Obligation is executed, the U.S. Lender or an
Affiliate thereof party thereto (other than JPMCB) shall have delivered written
notice to the Administrative Agent that such a transaction has been entered
into and that it constitutes a U.S. Secured Obligation entitled to the benefits
of the Collateral Documents, and (d) all obligations owing by the Canadian
Borrower in respect of its guaranty of Obligations of the U.S. Borrower.

 

“U.S. Term Loans”
means the term loans to the U.S. Borrower made pursuant to Section 2.1(a)(i) (or
made to the U.S. Borrower pursuant to Section 9.23(a))in Dollars.

 

“U.S. Term Loan Collateral
Account” shall mean the account established by the U.S. Borrower
under the sole and exclusive control of the Administrative Agent maintained at
the office of the Administrative Agent at 270 Park Avenue, New York, New York
10017 designated as the “Smurfit-Stone U.S. Term Loan Collateral Account” that
shall be used solely for the purposes set forth in Section 2.7(c) and
Section 2.14(a) and shall include any separate investment
product linked to such account mutually acceptable to the U.S. Borrower and the
Administrative Agent in accordance with Section 6.11.

 

“U.S. Term Loan Commitment”
shall mean, with respect to each U.S. Term Loan Lender, the commitment of such
Lender to make a U.S. Term Loan hereunder in the amount set forth opposite its
name on Annex A-3 hereto, as the same shall be reduced on the Closing Date
pursuant to Section 2.14(j) and as may be modified pursuant to
Section 9.23(a). 
As of the Closing Date and prior to making the U.S. Term Loans, the aggregate
amount of the U.S. Term Loan Commitments of the U.S. Term Loan Lenders is
US$400,000,000.

 

44

 

 “U.S. Term Loan Conversion” shall
have the meaning given such term in Section 9.23(a).

 

“U.S. Term Loan Lenders”
shall mean the Lenders having U.S. Term Loan Commitments or holding the U.S.
Term Loans.

 

“U.S. Term Outstandings”
shall mean, at any time of determination, an amount equal to (a) the
aggregate principal amount of U.S. Term Loans outstanding at such time minus
(b) the amount of cash held in the U.S. Term Loan Collateral Account at
such time.

 

“Withdrawal Liability”
shall have the meaning given such term under Part I of Subtitle E of Title
IV of ERISA.

 

“Work-in-Process” shall
mean Inventory which consists of work-in-process including, without limitation,
materials other than Raw Materials, Finished Goods or saleable products, title
to which and sole ownership of which is vested in a Loan Party.

 

Section 1.2             Terms Generally.  The definitions in Section 1.1
shall apply equally to both the singular and plural forms of the terms
defined.  Whenever the context may
require, any pronoun shall include the corresponding masculine, feminine and
neuter forms. Unless the context requires otherwise (a) any definition of
or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth
herein), (b) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (c) the words “herein”, “hereof”
and “hereunder”, and words of similar import, shall be construed to refer to
this Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words “asset” and “property” shall be construed
to have the same meaning and effect and to refer to any and all tangible and intangible
assets and properties, including cash, securities, accounts and contract
rights.

 

Section 1.3             Accounting Terms; GAAP.  Except as otherwise expressly provided
herein, all terms of an accounting or financial nature shall be construed in
accordance with GAAP, as in effect from time to time; provided that, if
the Loan Parties notify the Administrative Agent that the Loan Parties request
an amendment to any provision hereof to eliminate the effect of any change
occurring after the Closing Date in GAAP or in the application thereof on the
operation of such provision (or if the Administrative Agent notifies the Loan
Parties that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have
been withdrawn or such provision amended in accordance herewith.

 

Section 1.4             Exchange Rate Calculations.  On each Calculation Date, the Administrative
Agent shall (a) determine the Exchange Rate as of such Calculation Date in

 

45

 

respect of Canadian Dollars (and any other
currency for which an Exchange Rate is required) and (b) give notice
thereof to the applicable Borrower, and with respect to each Lender, to any
Lender that shall have requested such information. The Exchange Rate so
determined shall become effective on the first Business Day immediately
following the relevant Calculation Date (each, a “Reset
Date”) and shall remain effective until the next succeeding
Reset Date, and shall for all purposes of this Agreement (other than Section 2.13,
Section 9.20, Section 11.3 and any other provision
expressly requiring the use of a current Exchange Rate) be the Exchange Rate
employed in converting amounts between Dollars, on the one hand, and any other
applicable currency on the other hand; provided that, for purposes of
determining any Borrowing Base, the relevant Exchange Rate shall be determined
by the applicable Borrower at the time that the relevant Borrowing Base
Certificate is prepared and shall be set forth in such Borrowing Base
Certificate. Notwithstanding the foregoing, for purposes of determining
compliance by the Loan Parties with the limitations on Indebtedness,
Indebtedness secured by Liens, loans, advances, investments, guarantees and
payments contained in ARTICLE 6, compliance will be determined based on
the U.S. Dollar Equivalent amount of the Indebtedness, Liens, Loans, advances,
investments, guarantees and payments denominated in currencies other than
Dollars subject to such provisions on the date of incurrence or payment
thereof, and Borrowers will not be deemed to be in violation of such covenants
solely as a result of subsequent changes in the Exchange Rate which cause the
U.S. Dollar Equivalent amount of such obligations or payments to exceed such limitations.

 

Section 1.5             Québec Matters.  For purposes of any assets, liabilities or
entities located in the Province of Québec and for all other purposes pursuant
to which the interpretation or construction of this Agreement may be subject to
the laws of the Province of Québec or a court or tribunal exercising
jurisdiction in the Province of Québec, (a) “personal property” shall
include “movable property”, (b) “real property” or “real estate” shall
include “immovable property”, (c) “tangible property” shall include “corporeal
property”, (d) “intangible property” shall include “incorporeal property”,
(e) “security interest”, “mortgage” and “lien” shall include a “hypothec”,
“right of retention”, “prior claim” and a resolutory clause, (f) all
references to filing, perfection, priority, registering or recording under the
Uniform Commercial Code or a Personal Property Security Act shall include
publication under the Civil Code of Québec, (g) all
references to “perfection” of or “perfected” liens or security interest shall
include a reference to an “opposable” or “set up” lien or security interest as
against third parties, (h) any “right of offset”, “right of setoff” or
similar expression shall include a “right of compensation”, (i) “goods”
shall include “corporeal movable property” other than chattel paper, documents
of title, instruments, money and securities, (j) an “agent” shall include
a “mandatary”, (k) “construction liens” shall include “legal hypothecs”
contemplated under Article 2724(2) of the Civil Code of
Québec; (l) “joint and several” shall include “solidary”; (m) “gross
negligence or willful misconduct” shall be deemed to be “intentional or gross
fault”; (n) “beneficial ownership” shall include “ownership on behalf of
another as mandatary”; (o) “easement” shall include “servitude”; (p) “priority”
shall include “prior claim”; (q) “survey” shall include “certificate of
location and plan”; (r) “state” shall include “province”; (s) “fee
simple title” shall include “absolute ownership”; (t) “accounts” shall include
“claims”.  The parties hereto confirm
that it is their wish that this Agreement and any other document executed in
connection with the transactions contemplated herein be drawn up in the English
language only and that all other documents contemplated thereunder or relating
thereto, including notices, may also be drawn up 

 

46

 

in the English language only.  Les parties aux présentes
confirment que c’est leur volonté que cette convention et les autres documents
de crédit soient rédigés en langue anglaise seulement et que tous les
documents, y compris tous avis, envisagés par cette convention et les autres
documents peuvent être rédigés en langue anglaise seulement.

 

ARTICLE 2.    AMOUNT AND
TERMS OF CREDIT.

 

Section 2.1             Commitment
of the Lenders.

 

(a)                                  Subject
to the terms and subject to the conditions herein set forth,

 

(i)                                     each
U.S. Term Loan Lender agrees to make to the U.S. Borrower on the Closing Date a
U.S. Term Loan in Dollars in a principal amount equal to its U.S. Term Loan
Commitment; and

 

(ii)                                  each
Canadian Term Loan Lender agrees to make to the Canadian Borrower on the
Closing Date a Canadian Term Loan in Dollars  in
a principal amount equal to its Canadian Term Loan Commitment.

 

Amounts paid or repaid in
respect of Term Loans may not be reborrowed.

 

(b)                                 Subject
to the terms and subject to the conditions herein set forth,

 

(i)                                     each
U.S. Revolving Lender agrees to make to the U.S. Borrower or the Canadian
Borrower at any time and from time to time during the period commencing on the
Closing Date and ending on the Termination Date (or the earlier date of
termination of the U.S. Revolving Commitment) U.S. Revolving Loans in Dollars
in an aggregate principal amount not to exceed, when added to such Lender’s
Applicable Percentage of the then aggregate U.S. Revolving Credit Utilization,
the U.S. Revolving Commitment of such Lender, and

 

(ii)                                  each
Canadian Revolving Lender agrees to make to the U.S. Borrower or the Canadian
Borrower at any time and from time to time during the period commencing on the
Closing Date and ending on the Termination Date (or the earlier date of
termination of the Canadian Revolving Commitment) Canadian Revolving Loans in
Dollars or Canadian Dollars  in an
aggregate principal amount not to exceed, when added to such Lender’s
Applicable Percentage of the then aggregate Canadian Revolving Credit
Utilization, the Canadian Revolving Commitment of such Lender.

 

Subject to the
terms and conditions set forth herein, Revolving Loans may be repaid and
reborrowed.

 

47

 

(c)           Each Borrowing shall
be made by the Lenders pro rata in accordance with their respective applicable
Commitments; provided, however,
that the failure of any Lender to make any Loan shall not in itself relieve the
other Lenders of their obligations to lend.

 

Section 2.2             Availability
of U.S. Loans.

 

(a)           During the period
commencing on the Closing Date and ending on the date the Bankruptcy Court and
Canadian Court (if applicable), as the case may be, enters the Final Order
(such period being referred to as the “Interim
Period”), US$100,000,000 of the U.S. Revolving Commitment (the “Interim U.S. Revolving Commitment”)
shall be available to the U.S. Borrower and the Canadian Borrower (subject to
compliance with the U.S. Borrowing Base and the terms, conditions and covenants
described in this Agreement).

 

(b)           On the first Business
Day after the expiration of the Interim Period, the entire U.S. Revolving
Commitment shall be available to the U.S. Borrower and the Canadian Borrower
(subject to compliance with the U.S. Borrowing Base and the terms, conditions
and covenants in this Agreement).

 

(c)           Notwithstanding any
other provision of this Agreement to the contrary, (i) Total U.S.
Outstandings shall not at any time exceed the U.S. Borrowing Base and (ii) U.S.
Revolving Credit Utilization shall not at any time exceed (x) prior to the
expiration of the Interim Period, the Interim U.S. Revolving Commitment, and (y) from
and after the expiration of the Interim Period, the U.S. Revolving Commitment
(as such U.S. Revolving Commitment may be reduced from time to time pursuant to
the terms of this Agreement), and no Loan shall be made or Letter of Credit
issued in violation of the foregoing.

 

Section 2.3             Availability
of Canadian Loans.

 

(a)           During the Interim
Period, US$15,000,000 (or the Canadian Dollar Equivalent thereof) of the
Canadian Revolving Commitment (the “Interim
Canadian Revolving Commitment”) shall be available to the
Canadian Borrower and the U.S. Borrower (subject to compliance with the
Canadian Borrowing Base and the terms, conditions and covenants described in
this Agreement).

 

(b)           On the first Business
Day after the expiration of the Interim Period, the entire Canadian Revolving
Commitment shall be available to the Canadian Borrower and the U.S. Borrower
(subject to compliance with the Canadian Borrowing Base and the terms,
conditions and covenants in this Agreement).

 

(c)           Notwithstanding any
other provision of this Agreement to the contrary, (i) Total Canadian
Outstandings shall not at any time exceed the Canadian Borrowing Base and (ii) Canadian
Revolving Credit Utilization shall not at any time exceed (x) prior to the
expiration of the Interim Period, the Interim Canadian Revolving Commitment,
and (y) from and after the expiration of the Interim Period, the Canadian
Revolving Commitment (as such Canadian Revolving Commitment may be reduced from
time to time pursuant to the terms of this Agreement), and no Loan shall be
made or Letter of Credit issued in violation of the foregoing.

 

48

 

Section 2.4             Letters
of Credit.

 

(a)           Upon the terms and
subject to the conditions herein set forth, the U.S. Borrower may request a
Fronting Bank, at any time and from time to time after the Closing Date and
prior to the Termination Date, to issue, and, subject to the terms and
conditions contained herein, such Fronting Bank shall issue, for the account of
the U.S. Borrower or a Domestic Subsidiary, as the case may be, one or more
U.S. Revolving Facility Letters of Credit in a form reasonably acceptable to
the Administrative Agent and such Fronting Bank in support of obligations of
the U.S. Borrower or a Domestic Subsidiary of the U.S. Borrower, as the case
may be, provided
that no Letter of Credit shall be issued if after giving effect to such
issuance (i) the aggregate U.S. Letter of Credit Outstandings would
exceed US$35,000,000, (ii) the Total U.S. Outstandings would exceed the
U.S. Borrowing Base or (iii) the U.S. Revolving Credit Utilization would
exceed (x) prior to the expiration of the Interim Period, the Interim U.S.
Revolving Commitment and (y) from and after the expiration of the Interim
Period, the U.S. Revolving Commitment (as such U.S. Revolving Commitment may be
reduced from time to time pursuant to the terms of this Agreement).  In connection with a request for a U.S.
Revolving Facility Letter of Credit, the U.S. Borrower shall execute and
deliver a form of letter of credit application or other agreement to such
Fronting Bank in a form reasonably acceptable to the Administrative Agent and
such Fronting Bank.  In the event of any
inconsistency between the terms and conditions set forth herein and the terms
and conditions of any form of letter of credit application or other agreement
submitted by the U.S. Borrower to, or entered into by the U.S. Borrower with,
any Fronting Bank relating to any U.S. Revolving Facility Letter of Credit, the
terms and conditions of this Agreement shall control.

 

(b)           Upon the terms and
subject to the conditions herein set forth, the Canadian Borrower may request a
Fronting Bank, at any time and from time to time after the Closing Date and
prior to the Termination Date, to issue, and, subject to the terms and
conditions contained herein, such Fronting Bank shall issue, in Dollars or
Canadian Dollars, for the account of the Canadian Borrower or a Canadian
Subsidiary one or more Canadian Revolving Facility Letters of Credit in a form
reasonably acceptable to the Applicable Agent and such Fronting Bank in support
of obligations of the Canadian Borrower or a Canadian Subsidiary, provided
that no Letter of Credit shall be issued if after giving effect to such
issuance (i) the aggregate Canadian Letter of Credit Outstandings
would exceed US$10,000,000 (or the Canadian Dollar Equivalent thereof), (ii) the
Total Canadian Outstandings would exceed the Canadian Borrowing Base or (iii) the
Canadian Revolving Credit Utilization would exceed (x) prior to the
expiration of the Interim Period, the Interim Canadian Revolving Commitment and
(y) from and after the expiration of the Interim Period, the Canadian
Revolving Commitment (as such Canadian Revolving Commitment may be reduced from
time to time pursuant to the terms of this Agreement).   In connection with a request for a Canadian
Revolving Facility Letter of Credit, the Canadian Borrower shall execute and
deliver a form of letter of credit application or other agreement to such
Fronting Bank in a form reasonably acceptable to the Applicable Agent and such
Fronting Bank.  In the event of any
inconsistency between the terms and conditions set forth herein and the terms
and conditions of any form of letter of credit application or other agreement
submitted by the Canadian Borrower to, or entered into by the Canadian Borrower
with, any Fronting Bank relating to any Canadian Revolving Facility Letter of
Credit, the terms and conditions of this Agreement shall control.

 

49

 

(c)           No Letter of Credit
shall expire later than twelve (12) months after the issuance thereof, provided
that if the Termination Date shall occur prior to the expiration of any Letter
of Credit, the Borrowers shall, at or prior to the Termination Date, except as
the Applicable Agent may otherwise agree in writing, (i) cause all Letters
of Credit which expire after the Termination Date to be returned to the
applicable Fronting Bank undrawn and marked “canceled” and each such Letter of
Credit accompanied by written consent of the beneficiary on its letterhead
signed by an authorized signatory consenting to such cancellation or (ii) if
the Borrowers are unable to do so in whole or in part, either (x) provide
a “back-to-back” letter of credit to one or more Fronting Banks in a form
satisfactory to such Fronting Bank and the Applicable Agent (in their exclusive
discretion), issued by a bank satisfactory to such Fronting Bank and the
Applicable Agent (in their exclusive discretion), in an amount equal to the
greater of (A) an amount, as determined by such Fronting Bank and the
Applicable Agent, equal to the face amount of all outstanding Letters of Credit
issued by such Fronting Bank plus the sum of all projected contractual
obligations to the Applicable Agent, such Fronting Bank and the Lenders of the
Borrowers thereunder through the expiration date(s) of such Letters of
Credit, and (B) 105% of the then Letter of Credit Outstandings with
respect to Letters of Credit issued by such Fronting Bank or (y) solely
with respect to Letters of Credit scheduled to expire on or before the date
that is ninety (90) days after the Termination Date, deposit cash in the Letter
of Credit Account or Canadian Letter of Credit Account, as the case may be, in
an amount which, together with any amounts then held in the Letter of Credit
Account or the Canadian Letter of Credit Account, as the case may be, is equal
to the greater of (A) an amount, as determined by the Fronting Banks and
the Applicable Agent, equal to the face amount of all outstanding Letters of
Credit plus the sum of all projected contractual obligations to the Applicable
Agent, the Fronting Banks and the Lenders of the Borrowers thereunder through
the expiration date(s) of such Letters of Credit, and (B) 105% of the
then Letter of Credit Outstandings as collateral security for the Borrowers’
reimbursement obligations in connection therewith, such cash to be remitted to
the Borrowers upon the expiration, cancellation or other termination or
satisfaction of such reimbursement obligations.

 

(d)           The Borrowers shall pay
to each Fronting Bank, in addition to such other fees and charges as are
specifically provided for in Section 2.22 hereof, such fees and
charges in connection with the issuance and processing of the Letters of Credit
issued by such Fronting Bank as are customarily imposed by such Fronting Bank
from time to time in connection with letter of credit transactions.

 

(e)           Drafts drawn under each
Letter of Credit (i) shall be reimbursed by the applicable Borrower in the
same currency as which such draw was paid on the Business Day immediately
following the day such Borrower received notice from the applicable Fronting
Bank that payment of such draft will be made, provided, that if such Borrower
shall have received such notice thereof prior to 10:00 a.m., New York
time, on the date such draft was drawn, such Borrower shall effect
reimbursement on the same Business Day as such Borrower received notice
thereof, and, (ii)(A) with respect to Letters of Credit denominated in
Dollars, shall bear interest from the date of draw until the first Business Day
following the date of draw at a rate per annum equal to the Alternate Base Rate
plus the Applicable Margin and thereafter until reimbursed in full at a
rate per annum equal to the Alternate Base Rate plus the Applicable
Margin plus 2.0%,  and (B) with
respect to Letters of Credit denominated in Canadian Dollars, shall bear
interest from the date of draw until the first Business Day following the date
of draw at 

 

50

 

a rate per
annum equal to the Canadian Prime Rate plus the Applicable Margin and
thereafter until reimbursed in full at a rate per annum equal to the Canadian
Prime Rate plus the Applicable Margin plus 2.0%  (computed on the basis of the actual
number of days elapsed over a year of 360 days).  In the case of drafts drawn on any U.S.
Revolving Facility Letter of Credit, the U.S. Borrower shall effect such
reimbursement (x) if such draw occurs prior to the Termination Date (or
the earlier date of termination of the U.S. Revolving Commitment), in cash or
through a Borrowing of U.S. Revolving Loans without the satisfaction of the
conditions precedent set forth in Section 4.2 or (y) if such
draw occurs on or after the Termination Date (or the earlier date of
termination of the U.S. Revolving Commitment), in cash.  Each U.S. Revolving Lender agrees to make the
U.S. Revolving Loans described in clause (x) of the preceding sentence
notwithstanding a failure to satisfy the applicable lending conditions thereto
or the provisions of Section 2.33. 
In the case of drafts drawn on any Canadian Revolving Facility Letter of
Credit, the Canadian Borrower shall effect such reimbursement (x) if such
draw occurs prior to the Termination Date (or the earlier date of termination
of the Canadian Revolving Commitment), in cash or through a Borrowing of
Canadian Revolving Loans without the satisfaction of the conditions precedent
set forth in Section 4.2 or (y) if such draw occurs on or
after the Termination Date (or the earlier date of termination of the Canadian
Revolving Commitment), in cash.  Each Canadian
Revolving Lender agrees to make the Canadian Revolving Loans described in
clause (x) of the preceding sentence notwithstanding a failure to satisfy
the applicable lending conditions thereto or the provisions of Section 2.33.

 

(f)            Immediately upon the
issuance of any Letter of Credit by any Fronting Bank, such Fronting Bank shall
be deemed to have sold to each Canadian Revolving Lender or U.S. Revolving
Lender, as the case may be, other than such Fronting Bank, and each such other
Lender shall be deemed unconditionally and irrevocably to have purchased from
such Fronting Bank, without recourse or warranty, an undivided interest and
participation, to the extent of such Lender’s Applicable Percentage, in such
Letter of Credit, each drawing thereunder and the obligations of the Borrowers
under this Agreement with respect thereto. 
Upon any change in the Commitments pursuant to Section 2.11, Section 2.14, Section 2.15,  Section 9.3 or ARTICLE
11, it is hereby agreed that with respect to all Letter of Credit
Outstandings, there shall be an automatic adjustment to the participations
hereby created to reflect the new Applicable Percentages of the assigning and
assignee Lenders.  Any action taken or
omitted by a Fronting Bank under or in connection with a Letter of Credit, if
taken or omitted in the absence of gross negligence or willful misconduct,
shall not create for such Fronting Bank any resulting liability to any other
Lender.

 

(g)           In the event that a
Fronting Bank makes any payment under any U.S. Revolving Facility Letter of
Credit and the U.S. Borrower shall not have reimbursed such amount in full to
such Fronting Bank pursuant to this Section, the applicable Fronting Bank shall
promptly notify the Administrative Agent, which shall promptly notify each U.S.
Revolving Lender of such failure, and each U.S. Revolving Lender shall promptly
and unconditionally pay to the Administrative Agent for the account of the
applicable Fronting Bank the amount of such Lender’s Applicable Percentage of
such unreimbursed payment in Dollars and in same day funds.  In the event that a Fronting Bank makes any
payment under any Canadian Revolving Facility Letter of Credit and the Canadian
Borrower shall not have reimbursed such amount in full to such Fronting Bank
pursuant to this Section, the applicable Fronting Bank shall promptly notify
the Canadian Administrative Agent, which shall promptly notify each Canadian
Revolving 

 

51

 

Lender of such
failure, and each Canadian Revolving Lender shall promptly and unconditionally
pay to the Canadian Administrative Agent for the account of the applicable
Fronting Bank the amount of such Lender’s Applicable Percentage of such
unreimbursed payment in Dollars (or in respect of a Canadian Revolving Facility
Letter of Credit denominated in Canadian Dollars, in Canadian Dollars) and in
same day funds.  If the applicable
Fronting Bank so notifies the Applicable Agent, and the Applicable Agent so
notifies the U.S. Revolving Lenders or the Canadian Revolving Lenders, as the
case may be, prior to 11:00 a.m. (New York City time) on any Business Day,
such Lenders shall make available to the applicable Fronting Bank such Lender’s
Applicable Percentage of the amount of such payment on such Business Day in same
day funds.  If and to the extent such
Lender shall not have so made its Applicable Percentage of the amount of such
payment available to the applicable Fronting Bank, such Lender agrees to pay to
such Fronting Bank, forthwith on demand such amount, together with interest
thereon, for each day from such date until the date such amount is paid to the
Applicable Agent for the account of such Fronting Bank at the Federal Funds
Effective Rate.  The failure of any Lender
to make available to the applicable Fronting Bank its Applicable Percentage of
any payment under any Letter of Credit shall not relieve any other Lender of
its obligation hereunder to make available to the applicable Fronting Bank its
Applicable Percentage of any payment under any Letter of Credit on the date
required, as specified above, but no Lender shall be responsible for the
failure of any other Lender to make available to such Fronting Bank such other
Lender’s Applicable Percentage of any such payment.  Whenever a Fronting Bank receives a payment
of a reimbursement obligation as to which it has received any payments from the
Lenders pursuant to this paragraph, such Fronting Bank shall pay to each Lender
which has paid its Applicable Percentage thereof, in Dollars or Canadian
Dollars, as applicable, and in same day funds, an amount equal to such Lender’s
Applicable Percentage thereof.

 

(h)           Unless otherwise
requested by the Applicable Agent, each Fronting Bank shall report in writing
to the Applicable Agent (i) on the first Business Day of each week, the
daily activity (set forth by day) in respect of Letters of Credit during the
immediately preceding week, including all issuances, extensions, amendments and
renewals, all expirations and cancellations and all disbursements and
reimbursements, (ii) on or prior to each Business Day on which such
Fronting Bank expects to issue, amend, renew or extend any Letter of Credit,
the date of such issuance, amendment, renewal or extension and the aggregate
face amount of the Letters of Credit to be issued, amended, renewed or extended
by it and outstanding after giving effect to such issuance, amendment, renewal
or extension (and whether the amount thereof changed), it being understood that
such Fronting Bank shall not permit any issuance, renewal, extension or
amendment resulting in an increase in the amount of a Letter of Credit to occur
without first obtaining written confirmation from the Applicable Agent that it
is then permitted under this Agreement, (iii) on each Business Day on
which such Fronting Bank makes any payment under any Letter of Credit, the date
of such payment and the amount and currency of such payment, (iv) on any
Business Day on which a Borrower fails to reimburse a payment under a Letter of
Credit required to be reimbursed to such Fronting Bank on such day, the date of
such failure, the applicable Borrower and the amount and currency of such
Letter of Credit payment and (v) on any other Business Day, such other
information as the Applicable Agent shall reasonably request.

 

Section 2.5             Issuance.  Whenever a Borrower desires a Fronting Bank
to issue a Letter of Credit, it shall give to such Fronting Bank and the
Applicable Agent at least three (3) Business 

 

52

 

Days’ prior written (including facsimile
communication) notice (or such shorter period as may be agreed upon by the
Applicable Agent, the Borrowers and such Fronting Bank) specifying the date on
which the proposed Letter of Credit is to be issued (which shall be a Business
Day), the stated amount and currency of the Letter of Credit so requested, the
expiration date of such Letter of Credit and the name and address of the
beneficiary thereof.

 

Section 2.6             Nature
of Letter of Credit Obligations Absolute. 
The obligations of the Borrowers to reimburse the Lenders and Fronting
Banks for drawings made under any Letter of Credit shall be unconditional and
irrevocable and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including, without limitation:  (i) any lack of validity or
enforceability of any Letter of Credit; (ii) the existence of any claim,
setoff, defense or other right which any Borrower may have at any time against
a beneficiary of any Letter of Credit or against any of the Lenders or Fronting
Banks, whether in connection with this Agreement, the transactions contemplated
herein or any unrelated transaction; (iii) any draft, demand, certificate
or other document presented under any Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; (iv) payment by a Fronting Bank
of any Letter of Credit against presentation of a demand, draft or certificate
or other document which does not comply with the terms of such Letter of
Credit; (v) any other circumstance or happening whatsoever, which is
similar to any of the foregoing; or (vi) the fact that any Event of
Default shall have occurred and be continuing; provided, that such circumstance
or event shall not have been the result of the gross negligence or willful
misconduct of the applicable Fronting Bank.

 

Section 2.7             Making
of Loans and Disbursements.

 

(a)           Except as contemplated
by Section 2.12, Loans denominated in Dollars shall be either ABR
Loans or Eurodollar Loans and Loans denominated in Canadian Dollars shall be
either Canadian Prime Rate Loans or Discount Rate Loans, in each case as the
Borrowers may request subject to and in accordance with this Section, provided
that all Loans made pursuant to the same Borrowing shall, unless otherwise
specifically provided herein, be Loans of the same Type and in the same
currency.  Each Lender may fulfill its
Commitment with respect to any Eurodollar Loan or ABR Loan by causing any
lending office of such Lender to make such Loan; provided that any such use
of a lending office shall not affect the obligation of the applicable Borrower
to repay such Loan in accordance with the terms of this Agreement.  Each Lender shall, subject to its overall
policy considerations, use reasonable efforts (but shall not be obligated) to
select a lending office which will not result in the payment of increased costs
by the Borrowers pursuant to Section 2.16 or Section 2.19,
provided that a Lender’s selection of a lending office shall have no
effect on the obligations of any Loan Party pursuant to Section 2.16
or Section 2.19.  Subject to
the other provisions of this Section and the provisions of Section 2.13,
Borrowings of Loans of more than one Type may be incurred at the same time,
provided that no more than ten (10) Borrowings of Eurodollar Loans and
Discount Rate Loans may be outstanding at any time.

 

(b)           The applicable Borrower
shall give the Applicable Agent (with a simultaneous copy to the Administrative
Agent if the Administrative Agent is not the Applicable Agent) prior written,
facsimile or telephonic (confirmed promptly in writing) notice of each
Borrowing of Revolving Loans hereunder of at least three (3) Business Days
prior to a 

 

53

 

Borrowing of
Eurodollar Loans and Discount Rate Loans and, to the extent practical, one (1) Business
Day for ABR Loans and Canadian Prime Rate Loans, otherwise such ABR Loans and
Canadian Prime Rate Loans may be borrowed on the Business Day on which such
Borrower gives such notice; such notice shall be irrevocable and shall specify
the following information:

 

(i)                                     the
Borrower requesting such Borrowing;

 

(ii)                                  the
Type (e.g., Discount Rate, Canadian Prime Rate, Eurodollar or ABR) of such Borrowing;

 

(iii)                               the
Class (e.g., Canadian Revolving Loan or U.S. Revolving Loan) of such
Borrowing;

 

(iv)                              the
amount and currency of such Borrowing (which shall not (A) in the case of
Dollar-denominated Revolving Loans, be less than US$1,000,000 or any integral
multiple of US$1,000,000 in excess of such minimum amount, or (B) in the
case of Canadian Dollar-denominated Revolving Loans, be less than C$1,000,000
or any integral multiple of C$1,000,000 in excess of such minimum amount);

 

(v)                                 the
date of such Borrowing (which shall be a Business Day);

 

(vi)                              in
the case of a Eurodollar Loan, the Interest Period with respect thereto;

 

(vii)                           in
the case of a Discount Rate Loan, the Contract Period with respect thereto; and

 

(viii)                        the
number and location of the account to which funds are to be disbursed.

 

Such notice, to be effective,
must be received by the Applicable Agent (and the Administrative Agent if the
Administrative Agent is not the Applicable Agent) not later than 10:00 a.m.,
New York City time, on the third (3rd) Business Day preceding the date on
which such Borrowing is to be made in the case of Eurodollar Loans or Discount
Rate Loans and not later than 12:00 Noon, New York City time, on the same
Business Day as the date of such Borrowing in the case of ABR Loans and
Canadian Prime Rate Loans.  If no
election is made as to the Type of a U.S. Revolving Loan or Canadian Revolving
Loan denominated in Dollars, such notice shall be deemed a request for
Borrowing of ABR Loans.  If no election
is made as to the Type of a Canadian Revolving Loan denominated in Canadian
Dollars, such notice shall be deemed a request for Borrowing of Canadian Prime
Rate Loans.  If the Borrowing is a
request for a Eurodollar Loan and no election is made as to the Interest
Period, such notice shall be deemed to have requested an Interest Period of one
month’s duration.  If the Borrowing is a
request for a Discount Rate Loan and no election is made as to the Contract
Period, such notice shall be deemed to have requested a Contract Period of one
month’s duration.  If no election is made
as to the currency of a Loan, such notice shall be deemed a request for
Borrowing of Dollars.  The Applicable
Agent shall promptly notify each Revolving Lender of its Applicable Percentage
of 

 

54

 

such Borrowing, the date of
such Borrowing, the Type and Class of Borrowing or Loans being requested,
the Interest Period or Interest Periods applicable thereto and the Contract
Period or Contract Periods applicable thereto, as appropriate.  On the Borrowing date specified in such
notice, each Revolving Lender shall make its share of Borrowings of ABR Rate
Loans or Canadian Prime Rate Loans available to the Applicable Agent at its
office most recently designated for such purpose in a notice to the Lenders, no
later than 3:00 p.m., New York City time, and its share of Borrowings of
Eurodollar Loans or Discount Rate Loans available at the office of the
Applicable Agent at its office most recently designated for such purpose in a
notice to the Lenders, no later than no later than 1:00 p.m., New York
City time, in each case in immediately available funds.  Upon receipt of the funds made available by
the Lenders to fund any Borrowing hereunder, the Applicable Agent shall disburse
such funds in the manner specified in the notice of Borrowing delivered by the
Borrowers.

 

(c)           The U.S. Borrower
shall borrow the entire principal amount of the U.S. Term Loans on the Closing
Date and the proceeds of such Borrowing shall be disbursed as follows: (x) an
amount equal to the excess of the U.S. Term Loans over the then current U.S.
Borrowing Base shall be deposited in the U.S. Term Loan Collateral Account, (y) the
amount requested by the U.S. Borrower to be used in amounts and for purposes consistent
with the Budget delivered to the Administrative Agent on or prior to the
Closing Date shall be disbursed to the U.S. Borrower and (z) the remainder
of such Borrowing shall be deposited in the U.S. Investment Account.  The U.S. Borrower shall give the
Administrative Agent at least three (3) Business Days’ prior written,
facsimile or telephonic (confirmed promptly in writing) notice that it is
borrowing the U.S. Term Loans on the Closing Date; such notice shall specify
the following information:

 

(i)                                     the
Type (e.g., Eurodollar or ABR ) of such Borrowing;

 

(ii)                                  in
the case of a Eurodollar Loan, the Interest Period with respect thereto;

 

(iii)                               the
amount of such Borrowing to be deposited in the U.S. Term Loan Collateral
Account pursuant to clause (x) of the first sentence of this Section 2.7(c);

 

(iv)                              the
amount of such Borrowing to be disbursed to the U.S. Borrower pursuant to
clause (y) of the first sentence of this Section 2.7(c);

 

(v)                                 the
amount of such Borrowing to be deposited in the U.S. Investment Account
pursuant to clause (z) of the first sentence of this Section 2.7(c);
and

 

(vi)                              such
other instructions as the Administrative Agent may require.

 

If no election is made as to
the Type of Loan, such notice shall be deemed a request for Borrowing of ABR
Loans.  If the Borrowing is a request for
a Eurodollar Loan and no election is made as to the Interest Period, such
notice shall be deemed to have requested an Interest Period of one month’s
duration.  The Administrative Agent shall
promptly notify each U.S. Term Loan 

 

55

 

Lender of its Applicable
Percentage of such Borrowing, the Type of Borrowing being requested and the
Interest Period or Interest Periods applicable thereto, as appropriate.  On the Closing Date, each U.S. Term Loan
Lender shall make its share of the U.S. Term Loans available to the
Administrative Agent at its office most recently designated for such purpose in
a notice to the Lenders, no later than 12:00 Noon, New York City time, in immediately
available funds.  Upon receipt of the
funds made available by the U.S. Term Loan Lenders to fund the U.S. Term Loans
hereunder, the Administrative Agent shall disburse such funds in the manner
specified in the notice of Borrowing delivered by the U.S. Borrower.  After the Closing Date, one (1) Business
Day after the Administrative Agent’s receipt of (i) a Borrowing Base
Certificate demonstrating to the Administrative Agent’s satisfaction that the
then U.S. Borrowing Base exceeds the amount of the Total U.S. Outstandings, (ii) such
written disbursement instructions as the Administrative Agent may require and (iii) a
certification from a Financial Officer of the U.S. Borrower that no Default or
Event of Default has occurred and is continuing, the Administrative Agent shall
disburse an amount not to exceed the amount by which the U.S. Borrowing Base
exceeds the Total U.S. Outstandings from the U.S. Term Loan Collateral Account
(including amounts deposited therein pursuant to this paragraph (c) or Section 2.14(a))
to the U.S. Investment Account.  Upon the
Administrative Agent’s receipt from the U.S. Borrower of such written
disbursement instructions as the Administrative Agent may require, the
Administrative Agent shall permit the U.S. Borrower to withdraw from the U.S.
Investment Account such amount as the U.S. Borrower shall request.  If, as of the end of the third (3rd) Business
Day following any such withdrawal, the Available Cash (excluding amounts on
deposit in the Investment Accounts) shall exceed US$50,000,000, the U.S.
Borrower shall make a deposit to the U.S. Investment Account on the following
Business Day in an amount which, when aggregated with the amount deposited in
the Canadian Investment Account on such day, shall be equal to such excess. The
U.S. Investment Account shall be closed and the cash deposited therein shall be
disbursed to the U.S. Borrower on the earlier of (x) the Receivables
Securitization Termination Date and (y) sixty (60) days after the Closing
Date.

 

(d)           The Canadian Borrower
shall borrow the entire principal amount of the Canadian Term Loans on the
Closing Date and the proceeds of such Borrowing shall be disbursed as follows: (x) an
amount equal to the excess of the Canadian Term Loans over the then current
Canadian Borrowing Base shall be deposited in the Canadian Term Loan Collateral
Account, (y) the amount requested by the Canadian Borrower to be used in
amounts and for purposes consistent with the Budget delivered to the
Administrative Agent on or prior to the Closing Date shall be disbursed to the
Canadian Borrower and (z) the remainder of such Borrowing shall be
deposited in the Canadian Investment Account. 
The Canadian Borrower shall give the Canadian Administrative Agent at
least three (3) Business Days’ prior written, facsimile or telephonic
(confirmed promptly in writing) notice that it is borrowing the Canadian Term
Loans on the Closing Date; such notice shall specify the following information:

 

(i)                                     the
Type (e.g., Eurodollar or ABR ) of such Borrowing;

 

(ii)                                  in
the case of a Eurodollar Loan, the Interest Period with respect thereto;

 

56

 

(iii)                               the
amount of such Borrowing to be deposited in the Canadian Term Loan Collateral
Account pursuant to clause (x) of the first sentence of this Section 2.7(d);

 

(iv)                              the
amount of such Borrowing to be disbursed to the Canadian Borrower pursuant to
clause (y) of the first sentence of this Section 2.7(d);

 

(v)                                 the
amount of such Borrowing to be deposited in the Canadian Investment Account
pursuant to clause (z) of the first sentence of this Section 2.7(d);
and

 

(vi)                              such
other instructions as the Canadian Administrative Agent may require.

 

If no election is made as to
the Type of Loan, such notice shall be deemed a request for Borrowing of ABR
Loans.  If the Borrowing is a request for
a Eurodollar Loan and no election is made as to the Interest Period, such
notice shall be deemed to have requested an Interest Period of one month’s
duration.  The Canadian Administrative
Agent shall promptly notify each Canadian Term Loan Lender of its Applicable
Percentage of such Borrowing, the Type of Borrowing being requested and the
Interest Period or Interest Periods applicable thereto, as appropriate.  On the Closing Date, each Canadian Term Loan
Lender shall make its share of the Canadian Term Loans available to the
Canadian Administrative Agent at its office most recently designated for such
purpose in a notice to the Lenders, no later than 12:00 Noon, New York City
time, in immediately available funds. 
Upon receipt of the funds made available by the Canadian Term Loan
Lenders to fund the Canadian Term Loans hereunder, the Canadian Administrative
Agent shall disburse such funds in the manner specified in the notice of
Borrowing delivered by the Canadian Borrower. 
After the Closing Date, one (1) Business Day after the Canadian
Administrative Agent’s receipt of (i) a Borrowing Base Certificate
demonstrating to the Canadian Administrative Agent’s satisfaction that the then
Canadian Borrowing Base exceeds the amount of the Total Canadian Outstandings, (ii) such
written disbursement instructions as the Canadian Administrative Agent may
require and (iii) a certification from a Financial Officer of the Canadian
Borrower that no Default or Event of Default has occurred and is continuing,
the Canadian Administrative Agent shall disburse an amount not to exceed the
amount by which the Canadian Borrowing Base exceeds the Total Canadian
Outstandings from the Canadian Term Loan Collateral Account (including amounts
deposited therein pursuant to this paragraph (d) or Section 2.14(c))
to the Canadian Investment Account.  Upon
the Canadian Administrative Agent’s receipt from the Canadian Borrower of such
written disbursement instructions as the Canadian Administrative Agent may
require, the Canadian Administrative Agent shall permit the Canadian Borrower
to withdraw from the Canadian Investment Account such amount as the Canadian
Borrower shall request.  If, as of the
end of the third (3rd) Business Day following any such withdrawal, the
Available Cash (excluding amounts on deposit in the Investment Accounts) shall
exceed US$50,000,000, the Canadian Borrower shall make a deposit to the
Canadian Investment Account on the following Business Day in an amount which, when
aggregated with the amount deposited in the U.S. Investment Account on such
day, shall be equal to such excess.  The
Canadian Investment Account shall be closed and the cash deposited therein
shall be 

 

57

 

disbursed to the Canadian
Borrower on the earlier of (x) the Receivables Securitization Termination
Date and (y) sixty (60) days after the Closing Date.

 

(e)           Unless the Applicable
Agent shall have received notice from a Lender prior to the proposed date of
any Borrowing that such Lender will not make available to the Applicable Agent
such Lender’s share of such Borrowing, the Applicable Agent may assume that
such Lender has made such share available on such date in accordance with this Section and
may, in reliance upon such assumption, make available to the applicable
Borrower a corresponding amount.  In such
event, if a Lender has not in fact made its share of the applicable Borrowing
available to the Applicable Agent, then the applicable Lender and the applicable
Borrower severally agree to pay to the Applicable Agent forthwith on demand
such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the applicable Borrower to
but excluding the date of payment to the Applicable Agent, at (i) in the
case of such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by the Applicable Agent in accordance with banking industry rules on
interbank compensation or (ii) in the case of the Borrower, the interest
rate applicable to ABR Loans or Canadian Prime Rate Loans, as the case may
be.  If such Lender pays such amount to
the Applicable Agent, then such amount shall constitute such Lender’s Loan
included in such Borrowing.

 

Section 2.8             Repayment
of Loans and Unreimbursed Draws; Evidence of Debt

 

(a)           The U.S. Borrower
hereby unconditionally promises to pay to (i) the Administrative Agent for
the account of each U.S. Revolving Lender the then unpaid principal amount of
each U.S. Revolving Loan obtained by the U.S. Borrower and each unreimbursed
draw under all U.S. Revolving Facility Letters of Credit as set forth herein; (ii) the
Administrative Agent for the account of each U.S. Term Loan Lender the then
unpaid principal amount of each U.S. Term Loan as set forth herein; and (iii) the
Canadian Administrative Agent for the account of each Canadian Revolving Lender
the then unpaid principal amount of each Canadian Revolving Loan obtained by
the U.S. Borrower.

 

(b)           The Canadian Borrower
hereby unconditionally promises to pay to (i) the Administrative Agent for
the account of each U.S. Revolving Lender the then unpaid principal amount of
each U.S. Revolving Loan obtained by the Canadian Borrower; (ii) the
Canadian Administrative Agent for the account of each Canadian Revolving Lender
the then unpaid principal amount of each Canadian Revolving Loan obtained by
the Canadian Borrower and each unreimbursed draw under all Canadian Revolving
Facility Letters of Credit as set forth herein; and (iii) the Canadian
Administrative Agent for the account of each Canadian Term Loan Lender the
unpaid principal amount of each Canadian Term Loan.

 

(c)           Each Lender shall
maintain in accordance with its usual practice an account or accounts
evidencing the Obligations of the Borrowers to such Lender resulting from each
Loan made by such Lender or participation in each Letter of Credit in which
such Lender is participating, including the amounts of principal and interest
payable and paid to such Lender from time to time hereunder.

 

58

 

(d)           The Applicable Agent
shall maintain accounts in which it shall record (i) the amount of each
Loan made hereunder, the Type and Class thereof and the Interest Period or
Contract Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the U.S. Borrower or
the Canadian Borrower, as the case may be, to each Lender hereunder, (iii) the
amount of Term Loans on deposit in the respective Collateral Accounts and all
disbursements from deposits to such accounts and (iv) the amount of any
sum received by the Applicable Agent hereunder for the account of the Lenders
and each Lender’s share thereof.

 

(e)           The entries made in the
accounts maintained pursuant to paragraph (c) or (d) of this Section shall
be prima facie evidence of the existence and amounts of the obligations
recorded therein; provided that the failure of any Lender or the
Applicable Agent to maintain such accounts or any error therein shall not in
any manner affect the obligation of the Loan Parties to repay the Loans and
draws under Letters of Credit in accordance with the terms of this Agreement.

 

(f)            Any Lender may request
that Loans made by it be evidenced by a promissory note.  In such event, the Borrowers shall execute
and deliver to such Lender a promissory note or notes payable to the order of
such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) in a form furnished by the Administrative Agent.  Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.3) be represented by one or more
promissory notes in such form payable to the order of the payee named therein
(or, if such promissory note is a registered note, to such payee and its
registered assigns).

 

Section 2.9             Interest on Loans

 

(a)           Subject to the
provisions of Section 2.10, each ABR Loan shall bear interest
(computed, for ABR Loans wherein the Alternate Base Rate is determined by
reference to the Adjusted LIBO Rate or the Federal Funds Effective Rate, on the
basis of the actual number of days elapsed over a year of 360 days, and
otherwise computed on the basis of the actual number of days elapsed over a
year of 365 days) at a rate per annum equal to the Applicable Margin plus
the Alternate Base Rate.

 

(b)           Subject to the
provisions of Section 2.10, each Eurodollar Loan shall bear
interest (computed on the basis of the actual number of days elapsed over a
year of 360 days) at a rate per annum equal, during each Interest Period
applicable thereto, to the Applicable Margin plus the Adjusted LIBO Rate
for such Interest Period in effect for such Borrowing.

 

(c)           Subject to the
provisions of Section 2.10, each Canadian Prime Rate Loan shall
bear interest (computed on the basis of the actual number of days elapsed over
a year of 365 days) at a rate per annum equal to the Applicable Margin plus
the Canadian Prime Rate.

 

(d)           Subject to the
provisions of Section 2.10, each Discount Rate Loan shall bear
interest (computed on the basis of the actual number of days elapsed over a
year of 365 days) at a rate per annum equal, during each Contract Period
applicable thereto, to the Applicable Margin plus the Discount Rate for
such Contract Period in effect for such Borrowing.

 

59

 

(e)           Accrued interest on all
Loans shall be payable in arrears on each Interest Payment Date applicable
thereto, at maturity (whether by acceleration or otherwise), after such
maturity on demand and (with respect to Eurodollar Loans and Discount Rate
Loans) upon any repayment or prepayment thereof (on the amount prepaid).

 

(f)            For the purposes of
the Interest Act (Canada) and disclosure
thereunder, whenever any interest or any fee to be paid hereunder or in
connection herewith is to be calculated on the basis of a 360-day or 365-day
year, the yearly rate of interest to which the rate used in such calculation is
equivalent is the rate so used multiplied by the actual number of days in the
calendar year in which the same is to be ascertained and divided by 360 or 365,
as applicable.  The rates of interest
under this Agreement are nominal rates, and not effective rates or yields.  The principle of deemed reinvestment of
interest does not apply to any interest calculation under this Agreement.

 

(g)           Any provision of this
Agreement that would oblige a Canadian Loan Party to pay any fine, penalty or
rate of interest on any arrears of principal or interest secured by a mortgage
on real property or hypothec on immovables that has the effect of increasing
the charge on arrears beyond the rate of interest payable on principal money
not in arrears shall not apply to such Canadian Loan Party, which shall be
required to pay interest on money in arrears at the same rate of interest
payable on principal money not in arrears.

 

(h)           If any provision of
this Agreement would oblige a Canadian Loan Party to make any payment of
interest or other amount payable to any Secured Party in an amount or
calculated at a rate which would be prohibited by law or would result in a
receipt by that Secured Party of “interest” at a “criminal rate” (as such terms
are construed under the Criminal Code (Canada)),
then, notwithstanding such provision, such amount or rate shall be deemed to
have been adjusted with retroactive effect to the maximum amount or rate of
interest, as the case may be, as would not be so prohibited by applicable law
or so result in a receipt by that Secured Party of “interest” at a “criminal
rate”, such adjustment to be effected, to the extent necessary (but only to the
extent necessary), as follows:

 

(i)                                     first,
by reducing the amount or rate of interest; and

 

(ii)                                  thereafter,
by reducing any fees, commissions, costs, expenses, premiums and other amounts
required to be paid which would constitute interest for purposes of
section 347 of the Criminal Code (Canada).

 

Section 2.10           Default
Interest.  Upon the occurrence and
during the continuance of an Event of Default, the principal amount of all
Loans outstanding and, to the extent permitted by applicable law, any interest
payments on the Loans or any fees or other amounts owed hereunder, shall
thereafter bear interest payable on demand at a rate that is 2% per annum in
excess of the interest rate otherwise payable hereunder with respect to the
applicable Loans (or, (x) in the case of any such fees and other amounts
owed by the U.S. Loan Parties, at a rate which is 2% per annum in excess of the
interest rate otherwise payable hereunder for ABR Loans that are U.S. Revolving
Loans and (y) in the case of any such fees and other amounts owed by the
Canadian Loan Parties, at a rate which is 2% per annum in excess of the
interest rate otherwise 

 

60

 

payable hereunder for Canadian Prime Rate Loans
that are Canadian Revolving Loans); provided, in the case of Eurodollar Loans
and Discount Rate Loans, upon the expiration of the Interest Period or Contract
Period, as the case may be, in effect at the time any such increase in interest
rate is effective, if an Event of Default shall then be continuing, such
Eurodollar Loans and Discount Rate Loans shall thereupon become ABR Loans and
Canadian Prime Rate Loans, respectively, and shall thereafter bear interest
payable upon demand at a rate which is 2% per annum in excess of the interest
rate otherwise payable hereunder for ABR Loans and Canadian Prime Rate Loans,
as the case may be.  Payment or
acceptance of the increase rates of interest provided in this Section 2.10
is not a permitted alternative to timely payment and shall not constitute a
waiver of any Event of Default or otherwise prejudice or limit any rights or
remedies of the Agents or any Lender.

 

Section 2.11           Optional
Termination or Reduction of Commitment. 
Upon at least three (3) Business Days’ prior written notice to the
Applicable Agent (and the Administrative Agent if the Administrative Agent is
not the Applicable Agent), (i) the U.S. Borrower may at any time in whole
permanently terminate, or from time to time in part permanently reduce, the
U.S. Revolving Commitment and (ii) the Canadian Borrower may at any time
in whole permanently terminate, or from time to time in part permanently
reduce, the Canadian Revolving Commitment. 
Each such reduction or termination, as applicable, of such Commitment
shall be in the principal amount of US$1,000,000 or any integral multiple of
US$1,000,000 in excess thereof.  The U.S.
Borrower shall not be permitted to terminate or reduce the U.S. Revolving
Commitment if, as a result of such termination or reduction, the U.S. Revolving
Credit Utilization would exceed the aggregate U.S. Revolving Commitment.  The Canadian Borrower shall not be permitted
to terminate or reduce the Canadian Revolving Commitment if, as a result of
such termination or reduction, the Canadian Revolving Credit Utilization would
exceed the aggregate Canadian Revolving Commitment.  Any reduction or termination, as applicable,
pursuant to this Section shall be applied pro rata to reduce the
applicable Revolving Commitment of each applicable Lender until such Revolving
Commitment is zero.  Simultaneously with
each reduction or termination, as applicable, of any Revolving Commitment, the
applicable Borrower shall pay to the Applicable Agent for the account of each
applicable Lender the Commitment Fee accrued on the amount of the Revolving
Commitment of such Lender so terminated or reduced to but excluding the date of
such termination or reduction.

 

Section 2.12           Alternate
Rate of Interest.

 

(a)           If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

 

(i)                                     the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for
ascertaining the Eurodollar Rate for such Interest Period; or

 

(ii)                                  the
Administrative Agent is advised by the Required Lenders of the applicable Class that
the Eurodollar Rate for such Interest Period will not adequately and fairly
reflect the cost to such 

 

61

 

Lenders (or Lender) of making
or maintaining their Loans (or its Loan) included in such Borrowing for such
Interest Period;

 

then the Administrative Agent
shall give notice thereof to the Borrowers and the Lenders by telephone or
facsimile as promptly as practicable thereafter and, until the Administrative
Agent notifies the Borrowers and the Lenders that the circumstances giving rise
to such notice no longer exist, any request by the Borrowers for a Borrowing of
Eurodollar Loans (including pursuant to a refinancing with Eurodollar Loans)
pursuant to Section 2.7 or Section 2.13 shall be deemed
a request for a Borrowing of ABR Loans.

 

(b)           If prior to the
commencement of any Contract Period for a Borrowing comprised of a Discount
Rate Loan:

 

(i)                                     the
Canadian Administrative Agent determines (which determination shall be
conclusive manifest error) that adequate and reasonable means do not exist for
ascertaining the Discount Rate for such Contract Period, or

 

(ii)                                  the
Canadian Administrative Agent is advised by the Required Lenders of the
applicable Class that the Discount Rate for such Contract Period will not
adequately and fairly reflect the cost to such Lenders (or Lender) of making or
maintaining their Loans (or its Loan) included in such Borrowing for such
Contract Period,

 

then the Canadian
Administrative Agent shall give notice thereof to the Borrowers and the Lenders
by telephone or facsimile as promptly as practical thereafter and, until the
Canadian Administrative Agent notifies the Borrowers and the Lenders that the
circumstances giving rise to such notice no longer exists, any request by the
Borrowers for a Borrowing of Discount Rate Loans (including pursuant to a
refinancing with Discount Rate Loans) pursuant to Section 2.7 or Section 2.13
shall be deemed a request for a Borrowing of Canadian Prime Rate Loans.

 

Section 2.13           Refinancing
of Loans.  The Borrowers shall have
the right, at any time, on three (3) Business Days’ prior irrevocable
notice to the Applicable Agent (and the Administrative Agent if the
Administrative Agent is not the Applicable Agent) (which notice, to be
effective, must be received by the Applicable Agent not later than 1:00 p.m.,
New York City time, on the third Business Day preceding the date of any
refinancing), (x) to refinance any outstanding Borrowing or Borrowings of
Loans of one Type (or a portion thereof) with a Borrowing of Loans of the other
Type or (y) to continue an outstanding Borrowing of Eurodollar Loans for
an additional Interest Period or to continue an outstanding Borrowing of Discount
Rate Loans for an additional Contract Period, subject to the following:

 

(a)           as a condition to the
refinancing of ABR Loans with Eurodollar Loans and to the continuation of
Eurodollar Loans for an additional Interest Period, no Event of Default shall have
occurred and be continuing at the time of such refinancing;

 

(b)           as a condition to the
refinancing of Canadian Prime Rate Loans with Discount Rate Loans and to the
continuation of Discount Rate Loans for an additional Contract 

 

62

 

Period, no
Event of Default shall have occurred and be continuing at the time of such
refinancing;

 

(c)           if less than a full
Borrowing of Loans shall be refinanced, such refinancing shall be made pro rata
among the applicable Lenders in accordance with the respective principal
amounts of the Loans comprising such Borrowing held by such Lenders immediately
prior to such refinancing;

 

(d)           the aggregate principal
amount of Loans being refinanced shall be at least (i) in the case of Dollar-denominated
Loans, US$1,000,000 or any integral multiple of US$1,000,000 in excess thereof,
or (ii) in the case of Canadian Dollar-denominated Loans, C$1,000,000 or
any integral multiple of C$1,000,000 in excess thereof, provided that no partial
refinancing of a Borrowing of Eurodollar Loans or Discount Rate Loans as the
case may be, shall result in the Eurodollar Loans or Discount Rate Loans as the
case may be, remaining outstanding pursuant to such Borrowing being less than
US$1,000,000 or C$1,000,000, respectively, in aggregate principal amount;

 

(e)           each Lender shall
effect each refinancing by applying the proceeds of its new Canadian Prime Rate
Loan, Discount Rate Loan, Eurodollar Loan or ABR Loan, as the case may be, to
its Loan being refinanced;

 

(f)            the Interest Period
with respect to a Borrowing of Eurodollar Loans effected by a refinancing or in
respect to the Borrowing of Eurodollar Loans being continued as Eurodollar
Loans shall commence on the date of refinancing or the expiration of the current
Interest Period applicable to such continuing Borrowing, as the case may be;

 

(g)           a Borrowing of
Eurodollar Loans may be refinanced only on the last day of an Interest Period
applicable thereto;

 

(h)           each request for a
refinancing with a Borrowing of Eurodollar Loans which fails to state an
applicable Interest Period shall be deemed to be a request for an Interest
Period of one month;

 

(i)            the Contract Period
with respect to a Borrowing of Discount Rate Loans effected by a refinancing or
in respect to the Borrowing of Discount Rate Loans being continued as Discount
Rate Loans shall commence on the date of refinancing or the expiration of the
current Contract Period applicable to such continuing Borrowing, as the case
may be;

 

(j)            a Borrowing of Discount
Rate Loans may be refinanced only on the last day of a Contract Period
applicable thereto; and

 

(k)           each request for a
refinancing with a Borrowing of Discount Rate Loans which fails to state an
applicable Contract Period shall be deemed to be a request for a Contract
Period of one month.

 

In the event that the U.S. Borrower or Canadian Borrower, as
applicable, shall not give notice to refinance any Borrowing of Eurodollar
Loans, or to continue such Borrowing as Eurodollar Loans, or shall not be
entitled to refinance or continue such Borrowing as Eurodollar Loans, in 

 

63

 

each case as provided above, such Borrowing shall automatically be
refinanced with a Borrowing of ABR Loans at the expiration of the then-current
Interest Period.  In the event that the
Canadian Borrower shall not give notice to refinance any Borrowing of Discount
Rate Loans, or to continue such Borrowing as Discount Rate Loans, or shall not
be entitled to refinance or continue such Borrowing as Discount Rate Loans, in
each case as provided above, such Borrowing shall automatically be refinanced
with a Borrowing of Canadian Prime Rate Loans at the expiration of the
then-current Contract Period.  The Applicable
Agent shall, after it receives notice from the U.S. Borrower or Canadian
Borrower, as applicable, promptly give each Lender notice of any refinancing,
in whole or part, of any Loan made by such Lender.

 

(l)            Notwithstanding
anything to the contrary contained herein:

 

(i)                                     all
Loans denominated in Dollars shall be repaid in Dollars;

 

(ii)                                  all
Loans denominated in Canadian Dollars shall be repaid in Canadian Dollars;

 

(iii)                               Loans
denominated in Dollars may only be ABR Loans or Eurodollar Loans; and

 

(iv)                              Loans
denominated in Canadian Dollars may only be Canadian Prime Rate Loans or
Discount Rate Loans.

 

All Borrowings, refinancings,
continuations and conversions, as applicable, of Loans shall be consistent with
the foregoing.

 

Section 2.14           Mandatory
Prepayment; Commitment Termination

 

(a)           If at any time the
Total U.S. Outstandings exceeds the U.S. Borrowing Base, within one (1) Business
Day (i) the Borrowers will prepay the U.S. Revolving Loans in an amount
necessary to cause the Total U.S. Outstandings to be equal to or less than the
U.S. Borrowing Base, (ii) after giving effect to the prepayment in full of
the U.S. Revolving Loans, the U.S. Borrower will deposit into the Letter of
Credit Account an amount equal to 105% of the amount by which the aggregate
U.S. Letter of Credit Outstandings (net of the amount of cash held in the
Letter of Credit Account) so exceeds the U.S. Borrowing Base, and (iii) after
giving effect to the prepayment in full of the U.S. Revolving Loans and the
cash collateralization of the U.S. Letter of Credit Outstandings, the U.S.
Borrower will (x) deposit into the U.S. Term Loan Collateral Account an
amount equal to the amount by which the U.S. Term Outstandings exceeds the U.S.
Borrowing Base or (y) prepay the U.S. Term Loans in an amount equal to the
amount by which the U.S. Term Outstandings exceeds the U.S. Borrowing Base.

 

(b)           If at any time the U.S.
Revolving Credit Utilization exceeds (A) prior to the expiration of the
Interim Period, the Interim U.S. Revolving Commitment, or (B) from and
after the expiration of the Interim Period, the U.S. Revolving Commitment,
within one (1) Business Day (i) the Borrowers will prepay the U.S.
Revolving Loans in an amount necessary to cause the aggregate principal amount
of the U.S. Revolving Credit Utilization, including unreimbursed draws, to be
equal to or less than (A) prior to the expiration of the Interim Period,
the Interim U.S. Revolving Commitment, or (B) from and after the
expiration of the Interim 

 

64

 

Period, the
U.S. Revolving Commitment and (ii) if, after giving effect to the
prepayment in full of the U.S. Revolving Loans, the aggregate U.S. Letter of
Credit Outstandings exceeds (A) prior to the expiration of the Interim
Period, the Interim U.S. Revolving Commitment, or (B) from and after the
expiration of the Interim Period, the U.S. Revolving Commitment, the U.S.
Borrower will deposit into the Letter of Credit Account an amount equal to 105%
of the amount by which the aggregate U.S. Letter of Credit Outstandings (net of
the amount of cash held in the Letter of Credit Account) so exceeds (A) prior
to the expiration of the Interim Period, the Interim U.S. Revolving Commitment,
or (B) from and after the expiration of the Interim Period, the U.S.
Revolving Commitment.

 

(c)           If at any time the
Total Canadian Outstandings exceeds the Canadian Borrowing Base, within one (1) Business
Day (i) the Borrowers will prepay the Canadian Revolving Loans in an
amount necessary to cause the Total Canadian Outstandings to be equal to or
less than the Canadian Borrowing Base, (ii) after giving effect to the
prepayment in full of the Canadian Revolving Loans, the Canadian Borrower will
deposit into the Canadian Letter of Credit Account an amount equal to 105% of
the amount by which the aggregate Canadian Letter of Credit Outstandings (net
of the amount of cash held in the Canadian Letter of Credit Account) so exceeds
the Canadian Borrowing Base, and (iii) after giving effect to the
prepayment in full of the Canadian Revolving Loans and the cash collateralization
of the Canadian Letter of Credit Outstandings, the Canadian Borrower will (x) deposit
into the Canadian Term Loan Collateral Account an amount equal to the amount by
which the Canadian Term Outstandings exceeds the Canadian Borrowing Base or (y) prepay
the Canadian Term Loans in an amount equal to or the amount by which the
Canadian Term Outstandings exceeds the Canadian Borrowing Base.

 

(d)           If at any time the
Canadian Revolving Credit Utilization exceeds (A) prior to the expiration
of the Interim Period, the Interim Canadian Revolving Commitment, or (B) from
and after the expiration of the Interim Period, the Canadian Revolving
Commitment, within one (1) Business Day (i) the Borrowers will prepay
the Canadian Revolving Loans in an amount necessary to cause the aggregate
principal amount of the Canadian Revolving Credit Utilization, including
unreimbursed draws, to be equal to or less than (A) prior to the
expiration of the Interim Period, the Interim Canadian Revolving Commitment, or
(B) from and after the expiration of the Interim Period, the Canadian
Revolving Commitment and (ii) if, after giving effect to the prepayment in
full of the Canadian Revolving Loans, the aggregate Canadian Letter of Credit
Outstandings exceeds (A) prior to the expiration of the Interim Period,
the Interim Canadian Revolving Commitment, or (B) from and after the
expiration of the Interim Period, the Canadian Revolving Commitment, the
Canadian Borrower will deposit into the Canadian Letter of Credit Account an
amount equal to 105% of the amount by which the aggregate Canadian Letter of
Credit Outstandings (net of the amount of cash held in the Canadian Letter of
Credit Account) so exceeds (A) prior to the expiration of the Interim
Period, the Interim Canadian Revolving Commitment, or (B) from and after
the expiration of the Interim Period, the Canadian Revolving Commitment.

 

(e)           Upon the receipt of the
Net Proceeds by any of the U.S. Loan Parties from any Prepayment Event
(including amounts received by a U.S. Loan Party from a Canadian Guarantor
pursuant to Section 2.14(g)), the U.S. Loan Parties shall, jointly
and severally, apply such Net Proceeds as follows:  first, to repay the then outstanding
U.S. Term Loans; second, to repay the then outstanding U.S. Revolving Loans
(without a permanent reduction of the U.S. 

 

65

 

Revolving
Commitment); third, to repay the then outstanding Canadian Term Loans; fourth,
to repay the then outstanding Canadian Revolving Loans (without a permanent
reduction of the Canadian Revolving Commitment); fifth, to deposit into
the Letter of Credit Account an amount equal to the greater of (i) an
amount, as determined by the Fronting Banks and the Administrative Agent, equal
to the face amount of all outstanding U.S. Revolving Facility Letters of Credit
plus the sum of all projected contractual obligations of the Agents, the
Fronting Banks and the Lenders of the U.S. Borrower thereunder through the
expiration date(s) of such Letters of Credit and (ii) 105% of the
aggregate U.S. Letter of Credit Outstandings (net of the amount of cash held in
the Letter of Credit Account); and sixth, to deposit into the Canadian
Letter of Credit Account an amount equal to the greater of (i) an amount,
as determined by the Fronting Banks and the Canadian Administrative Agent,
equal to the face amount of all outstanding Canadian Revolving Facility Letters
of Credit plus the sum of all projected contractual obligations of the Agents,
the Fronting Banks and the Lenders of the Canadian Borrower thereunder through
the expiration date(s) of such Letters of Credit and (ii) 105% of the
aggregate Canadian Letter of Credit Outstandings (net of the amount of cash
held in the Canadian Letter of Credit Account); provided, however,
that if the U.S. Borrower shall deliver to the Administrative Agent a
certificate of a Financial Officer to the effect that the U.S. Loan Parties
intend to apply the Net Proceeds from a Prepayment Event described in clause (b) of
the definition thereof within 180 days after receipt of such Net Proceeds to
acquire (or replace or rebuild) real property, equipment or other tangible
assets (excluding inventory) to be used in the business of the U.S. Loan
Parties, and certifying that no Default or Event of Default has occurred and is
continuing, then no prepayment shall be required by this Section (to the
extent the U.S. Loan Parties effect such reinvestment within the foregoing
180-day period) so long as such Net Proceeds shall remain deposited in an
account with the Applicable Agent until requested by a U.S. Loan Party for use
in accordance with such notice.

 

(f)            Upon the receipt of
the Net Proceeds by the Canadian Borrower from any Prepayment Event (including
amounts received by the Canadian Borrower from a Canadian Guarantor pursuant to
Section 2.14(g), with the understanding that no such amount
received from a Canadian Guarantor shall be applied in respect of the Canadian
Borrower’s guaranty of the U.S. Secured Obligations), the Canadian Borrower
shall apply such Net Proceeds as follows: 
first, to repay the then outstanding Canadian Term Loans; second,
to repay the then outstanding Canadian Revolving Loans made to the Canadian
Borrower (without a permanent reduction of the Canadian Revolving Commitment); third,
to the extent permitted by applicable law and not otherwise prohibited by an
order of the Canadian Court, to repay the then outstanding U.S. Term Loans; fourth,
to the extent permitted by applicable law and not otherwise prohibited by an
order of the Canadian Court, to repay the then outstanding U.S. Revolving Loans
(without a permanent reduction of the U.S. Revolving Commitment); fifth,
to the extent permitted by applicable law and not otherwise prohibited by an
order of the Canadian Court, to repay the then outstanding Canadian Revolving
Loans made to the U.S. Borrower (without a permanent reduction of the Canadian
Revolving Commitment); sixth, to deposit into the Canadian Letter of
Credit Account an amount equal to the greater of (i) an amount, as
determined by the Fronting Banks and the Canadian Administrative Agent, equal
to the face amount of all outstanding Canadian Revolving Facility Letters of
Credit plus the sum of all projected contractual obligations of the Agents, the
Fronting Banks and the Lenders of the Canadian Borrower thereunder through the
expiration date(s) of such Letters of Credit and (ii) 105% of the
aggregate Canadian Letter of Credit Outstandings (net of the amount of cash
held in the Canadian Letter of Credit Account); and 

 

66

 

seventh,
to the extent permitted by applicable law and not otherwise prohibited by an
order of the Canadian Court, to deposit into the Letter of Credit Account an
amount equal to the greater of (i) an amount, as determined by the
Fronting Banks and the Administrative Agent, equal to the face amount of all
outstanding U.S. Revolving Facility Letters of Credit plus the sum of all
projected contractual obligations of the Agents, the Fronting Banks and the
Lenders of the U.S. Borrower thereunder through the expiration date(s) of
such Letters of Credit and (ii) 105% of the aggregate U.S. Letter of
Credit Outstandings (net of the amount of cash held in the Letter of Credit
Account); provided, however, that if the Canadian Borrower shall
deliver to the Canadian Administrative Agent a certificate of a Financial
Officer to the effect that the Canadian Loan Parties intend to apply the Net
Proceeds from a Prepayment Event described in clause (b) of the definition
thereof within 180 days after receipt of such Net Proceeds to acquire (or
replace or rebuild) real property, equipment or other tangible assets
(excluding inventory) to be used in the business of the Canadian Loan Parties,
and certifying that no Default or Event of Default has occurred and is
continuing, then no prepayment shall be required by this Section (to the
extent the Canadian Loan Parties effect such reinvestment within the foregoing
180-day period) so long as such Net Proceeds shall remain deposited in an
account with the Applicable Agent until requested by a Canadian Loan Party for
use in accordance with such notice.

 

(g)           Upon the receipt of the
Net Proceeds by any Canadian Guarantor from any Prepayment Event, such Canadian
Guarantor shall apply such Net Proceeds as follows:  first, to repay the then outstanding
Canadian Term Loans; second, to repay the then outstanding Canadian
Revolving Loans made to the Canadian Borrower (without a permanent reduction of
the Canadian Revolving Commitment); third, to deposit into the Canadian
Letter of Credit Account an amount equal to the greater of (i) an amount,
as determined by the Fronting Banks and the Canadian Administrative Agent,
equal to the face amount of all outstanding Canadian Revolving Facility Letters
of Credit plus the sum of all projected contractual obligations of the Agents,
the Fronting Banks and the Lenders of the Canadian Borrower thereunder through
the expiration date(s) of such Letters of Credit and (ii) 105% of the
aggregate Canadian Letter of Credit Outstandings (net of the amount of cash
held in the Canadian Letter of Credit Account); fourth, to repay any
outstanding post-petition/post-filing Indebtedness owed by such Canadian
Guarantor to a U.S. Loan Party or the Canadian Borrower; and fifth to
the extent permitted by applicable law and not otherwise prohibited by any
applicable court order to repay any outstanding pre-petition Indebtedness owed
by such Canadian Guarantor to a U.S. Loan Party or the Canadian Borrower; provided,
however, that if the Canadian Borrower shall deliver to the Canadian
Administrative Agent a certificate of a Financial Officer to the effect that
the Canadian Guarantors intend to apply the Net Proceeds from a Prepayment
Event described in clause (b) of the definition thereof within 180 days
after receipt of such Net Proceeds to acquire (or replace or rebuild) real
property, equipment or other tangible assets (excluding inventory) to be used
in the business of the Canadian Guarantors, and certifying that no Default or
Event of Default has occurred and is continuing, then no prepayment shall be
required by this Section (to the extent the Canadian Guarantors effect
such reinvestment within the foregoing 180-day period) so long as such Net
Proceeds shall remain deposited in an account with the Applicable Agent until
requested by a Canadian Loan Party for use in accordance with such notice.

 

(h)           If on any date, as a
result of fluctuations in the Exchange Rate, the Administrative Agent
determines that the aggregate Canadian Revolving Credit Utilization shall have
exceeded for more than three (3) consecutive Business Days (x) an
amount equal to 105% 

 

67

 

of the total
Canadian Revolving Commitments or (y) an amount equal to the Canadian
Borrowing Base minus the Canadian Term Loans, the Administrative Agent
shall notify the Borrowers of such occurrence and the Borrowers shall on the
next succeeding Business Day prepay Canadian Revolving Loans in an amount
sufficient to eliminate such excess.

 

(i)            Upon the Termination
Date, the Canadian Revolving Commitment and the U.S. Revolving Commitment shall
each be terminated in full and the Loan Parties shall pay the Loans in full in
cash and, if any Letter of Credit remains outstanding, comply with Section 2.4(c).

 

(j)            The U.S. Term Loan
Commitments and the Canadian Term Loan Commitments shall terminate at 5:00 p.m.,
New York City time, on the Closing Date.

 

Section 2.15           Optional
Prepayment of Loans; Reimbursement of Lenders

 

(a)           The Borrowers shall
have the right at any time and from time to time to prepay any Borrowings
without penalty (except for any breakage costs associated with Eurodollar Loans
and Discount Rate Loans), in whole or in part, (x) with respect to a
Borrowing of Eurodollar Loans or Discount Rate Loans, upon at least three (3) Business
Days’ prior written, facsimile or telephonic (confirmed promptly in writing)
notice to the Applicable Agent (and the Administrative Agent if the
Administrative Agent is not the Applicable Agent) and (y) with respect to
a Borrowing of ABR Loans or Canadian Prime Rate Loans, upon prior written,
facsimile or telephonic (confirmed promptly in writing) notice to the
Applicable Agent (and the Administrative Agent if the Administrative Agent is
not the Applicable Agent) received no later than 12:00 Noon, New York City time
on the date of such prepayment; provided, however,
that (i) each such partial prepayment shall be in integral multiples of
US$1,000,000 or C$1,000,000, as applicable, or the entire amount of such Borrowing,
(ii) no prepayment of a Borrowing of Eurodollar Loans or Discount Rate
Loans shall be permitted pursuant to this Section 2.15(a) other
than on the last day of an Interest Period or Contract Period applicable
thereto unless such prepayment is accompanied by the payment of the amounts
described in clause (i) of the first sentence of Section 2.15(b),
and (iii) no partial prepayment of a Borrowing of Eurodollar Loans or
Discount Rate Loans shall result in the aggregate principal amount of the
Eurodollar Loans or Discount Rate Loans remaining outstanding pursuant to such
Borrowing being less than US$1,000,000 or C$1,000,000, as applicable.  Each notice of prepayment shall specify the
prepayment date, the principal amount of the Borrowing to be prepaid and in the
case of a Borrowing of Eurodollar Loans, the Borrowing or Borrowings pursuant
to which made, shall be irrevocable and shall commit the U.S. Borrower or
Canadian Borrower, as the case may be, to prepay such Loan by the amount and on
the date stated therein.  The Applicable
Agent shall, promptly after receiving notice from the U.S. Borrower or Canadian
Borrower, as the case may be, hereunder, notify each applicable Lender of the
principal amount of the Loans held by such Lender which are to be prepaid, the
prepayment date and the manner of application of the prepayment.  Subject to Section 2.15(d), such
prepayments shall be applied ratably to the Loans included in the prepaid
Borrowing.

 

(b)           The Borrowers shall
reimburse each Lender on demand for any loss incurred or to be incurred by it
in the reemployment of the funds released (i) resulting from any
prepayment (for any reason whatsoever, including, without limitation,
refinancing with ABR

 

68

 

Loans or
Canadian Prime Rate Loans, as applicable) of any Eurodollar Loan or Discount
Rate Loan required or permitted under this Agreement, if such Loan is prepaid
other than on the last day of the Interest Period or Contract Period for such
Loan or (ii) in the event that after the Borrowers deliver a notice of
Borrowing under Section 2.7 in respect of Eurodollar Loans or
Discount Rate Loans, such Loans are not made on the first day of the Interest
Period or Contract Period specified in such notice of Borrowing for any reason
other than a breach by such Lender of its obligations hereunder.  In the case of a Eurodollar Loan, such loss
shall be the amount as reasonably determined by such Lender as the excess, if
any, of (A) the amount of interest which would have accrued to such Lender
on the amount so paid or not borrowed at a rate of interest equal to the
Adjusted LIBO Rate for such Loan, for the period from the date of such payment
or failure to borrow to the last day (x) in the case of a payment or
refinancing with ABR Loans other than on the last day of the Interest Period
for such Loan, of the then current Interest Period for such Loan, or (y) in
the case of such failure to borrow, of the Interest Period for such Loan which
would have commenced on the date of such failure to borrow, over (B) the
amount of interest which would have accrued to such Lender on such amount by
placing such amount on deposit for a comparable period with leading banks in
the London interbank market.  Each Lender
shall deliver to the U.S. Borrower or Canadian Borrower, as the case may be,
from time to time one or more certificates setting forth the amount of such
loss as determined by such Lender.

 

(c)           In the event the
U.S. Borrower or Canadian Borrower, as the case may be, fails to prepay any
Borrowing on the date specified in any prepayment notice delivered pursuant to Section 2.15(a),
the U.S. Borrower or Canadian Borrower, as the case may be, on demand by any
Lender shall pay to the Applicable Agent for the account of such Lender any
amounts required to compensate such Lender for any loss incurred by such Lender
as a result of such failure to prepay, including, without limitation, any loss,
cost or expenses incurred by reason of the acquisition of deposits or other
funds by such Lender to fulfill deposit obligations incurred in anticipation of
such prepayment, but without duplication of any amounts paid under Section 2.15(b).  Each Lender shall deliver to the U.S.
Borrower or Canadian Borrower, as the case may be, from time to time one or
more certificates setting forth the amount of such loss as determined by such
Lender.

 

(d)           Any proceeds of
Collateral (other than Collateral of the Canadian Loan Parties) received by any
Agent (i) not constituting either (A) a specific payment of principal,
interest, fees or other sum payable under the Loan Documents (which shall be
applied as specified by the applicable Borrower), (B) a mandatory
prepayment (which shall be applied in accordance with Section 2.14),
(C) amounts to be applied from weekly sweeps of Available Cash (which
shall be applied in accordance with Section 5.7) or (D) amounts
to be applied from the Concentration Account when full cash dominion is in
effect (which shall be applied in accordance with Section 2.15(g) and
Section 5.7) or (ii) after an Event of Default has occurred
and is continuing and the Applicable Agent so elects or the Required Lenders so
direct, such funds shall be applied ratably as follows: first, to pay
any fees, indemnities, or expense reimbursements then due to the Agents and the
Fronting Banks from the U.S. Loan Parties (other than in connection with
Banking Services Obligations or Swap Obligations); second, to pay any
fees or expense reimbursements then due to the Lenders from the U.S. Loan
Parties (other than in connection with Banking Services Obligations or Swap
Obligations); third, to pay interest then due and payable on the U.S.
Loans ratably; fourth, to prepay principal on the U.S. Loans and 

 

69

 

unreimbursed
drafts drawn under U.S. Revolving Facility Letters of Credit ratably, fifth,
to pay an amount to the Administrative Agent equal to the greater of (x) an
amount, as determined by the Fronting Banks and the Administrative Agent, equal
to the face amount of all outstanding U.S. Revolving Facility Letters of Credit
plus the sum of all projected contractual obligations to the Agents, the
Fronting Banks and the Lenders of the U.S. Borrower thereunder through the
expiration date(s) of such Letters of Credit, and (y) 105% of the
aggregate U.S. Letter of Credit Outstandings (net of the amount of cash held in
the Letter of Credit Account), to be held in the Letter of Credit Account as
cash collateral for such Obligations; sixth, to payment of any amounts
owing by the U.S. Loan Parties with respect to Banking Services Obligations and
Swap Obligations; seventh, to the payment of any other U.S. Secured
Obligation due to the Agents or any Lender by the U.S. Loan Parties; eighth,
to pay any fees, indemnities, or expense reimbursements then due to the Agents
and the Fronting Banks from the Canadian Loan Parties (other than in connection
with Banking Services Obligations or Swap Obligations); ninth, to pay
any fees or expense reimbursements then due to the Lenders from the Canadian
Loan Parties (other than in connection with Banking Services Obligations or
Swap Obligations); tenth, to pay interest then due and payable on the
Canadian Loans ratably; eleventh, to prepay principal on the Canadian
Loans and unreimbursed drafts drawn under Canadian Revolving Facility Letters
of Credit ratably, twelfth, to pay an amount to the Canadian
Administrative Agent equal to the greater of (x) an amount, as determined
by the Fronting Banks and the Canadian Administrative Agent, equal to the face
amount of all outstanding Canadian Revolving Facility Letters of Credit plus
the sum of all projected contractual obligations to the Agents, the Fronting
Banks and the Lenders of the Canadian Borrower thereunder through the
expiration date(s) of such Letters of Credit, and (y) 105% of the
aggregate Canadian Letter of Credit Outstandings (net of the amount of cash
held in the Canadian Letter of Credit Account), to be held in the Canadian
Letter of Credit Account as cash collateral for such Obligations; thirteenth,
to payment of any amounts owing by the Canadian Loan Parties with respect to
Banking Services Obligations and Swap Obligations; and fourteenth, to
the payment of any other Canadian Secured Obligation due to the Agents or any
Lender by the Canadian Loan Parties.

 

(e)           Any proceeds of
Collateral of the Canadian Loan Parties received by any Agent (i) not
constituting either (A) a specific payment of principal, interest, fees or
other sum payable under the Loan Documents (which shall be applied as specified
by the applicable Borrower), (B) a mandatory prepayment (which shall be
applied in accordance with Section 2.14), or (C) amounts to be
applied from the Canadian Concentration Account when full cash dominion is in
effect (which shall be applied in accordance with Section 2.15(g) and
Section 5.7) or (ii) after an Event of Default has occurred
and is continuing and the Applicable Agent so elects or the Required Lenders so
direct, such funds shall be applied ratably as follows: first, to pay
any fees, indemnities, or expense reimbursements then due to the Agents and the
Fronting Banks from the Canadian Loan Parties (other than in connection with
Banking Services Obligations or Swap Obligations); second, to pay any
fees or expense reimbursements then due to the Lenders from the Canadian Loan
Parties (other than in connection with Banking Services Obligations or Swap
Obligations); third, to pay interest then due and payable on the Loans
to the Canadian Borrower ratably; fourth, to prepay principal on the
Canadian Loans made to the Canadian Borrower and unreimbursed drafts drawn
under Canadian Revolving Facility Letters of Credit ratably, fifth, to
pay an amount to the Canadian Administrative Agent equal to the greater of (x) an
amount, as determined by the Fronting Banks and the Canadian Administrative
Agent, equal to the face amount of all outstanding Canadian Revolving Facility
Letters of Credit plus 

 

70

 

the sum of all
projected contractual obligations to the Canadian Administrative Agent, the
Fronting Banks and the Lenders of the Canadian Borrower thereunder through the
expiration date(s) of such Letters of Credit, and (y) 105% of the
aggregate Canadian Letter of Credit Outstandings (net of the amount of cash
held in the Canadian Letter of Credit Account), to be held in the Canadian
Letter of Credit Account as cash collateral for such Obligations; sixth,
to payment of any amounts owing with respect to Banking Services Obligations
and Swap Obligations owed by any Canadian Loan Party; seventh, to the
payment of any other Canadian Secured Obligation due to the Agents or any
Lender by the Loan Parties; and eighth, solely with respect to any
remaining proceeds of Collateral of the Canadian Borrower, to the extent
permitted by applicable law and not otherwise prohibited by any court order, to
the payment of any other Secured Obligations in the amounts and in the
priorities set forth in Section 2.15(d).

 

(f)            Notwithstanding
anything to the contrary contained in this Agreement, unless so directed by a
Borrower, or unless a Default or Event of Default is in existence, neither the
Applicable Agent nor any Lender shall apply any payment which it receives to
any Eurodollar Loan or Discount Rate Loan of a Class, except (a) on the
expiration date of the Interest Period applicable to any such Eurodollar Loan
or Contract Period applicable to any such Discount Rate Loan or (b) in the
event, and only to the extent, that there are no outstanding ABR Loans or
Canadian Prime Rate Loans of the same Class and, in any such event, the
Loan Parties shall pay the break funding payment required in accordance with Section 2.15(b).
The Agents and the Lenders shall have the continuing and exclusive right to
apply and reverse and reapply any and all such proceeds and payments to any
portion of the Secured Obligations.

 

(g)           At all times when
full cash dominion is in effect pursuant to Section 5.7, on each
Business Day, (i) the Administrative Agent shall apply all funds credited
to the Concentration Account the previous Business Day to prepay the U.S.
Revolving Loans and (ii) the Canadian Administrative Agent shall apply all
funds credited to the Canadian Concentration Account the previous Business Day
to prepay the Canadian Revolving Loans.

 

Section 2.16           Reserve
Requirements; Change in Circumstances.

 

(a)           Notwithstanding any
other provision herein, if after the date of this Agreement any change in
applicable law or regulation or in the interpretation or administration thereof
by any Governmental Authority charged with the interpretation or administration
thereof (whether or not having the force of law) shall change the basis of
taxation of payments to any Lender of the principal of or interest on any
Eurodollar Loan or Discount Rate Loan made by such Lender or any fees or other
amounts payable hereunder (other than changes in respect of Taxes, Other Taxes
and taxes imposed on, or measured by, the net income or net profits or
franchise taxes of such Lender in each case imposed by the jurisdiction in
which such Lender is organized, has its principal office, or in which the
applicable lending office for such Loan is located or by any political
subdivision or taxing authority therein, or by any other jurisdiction or by any
political subdivision or taxing authority therein other than a jurisdiction in
which such Lender would not be subject to tax but for the execution and
performance of, or receipt of payment and enforcement of rights under, this
Agreement or any other Loan Document), or shall impose, modify or deem
applicable any reserve, special deposit or similar requirement against assets
of, deposits with or for the account of or credit extended by such Lender
(except any such reserve requirement which is reflected in the Adjusted LIBO
Rate) or shall impose on such 

 

71

 

Lender or the
applicable interbank market any other condition affecting this Agreement or the
Eurodollar Loans or Discount Rate Loans made by such Lender, and the result of
any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Loan or to reduce the amount of any sum received or receivable
by such Lender hereunder (whether of principal, interest or otherwise) by an
amount deemed by such Lender to be material, then the Borrowers will pay to
such Lender in accordance with paragraph (c) below such additional amount
or amounts as will compensate such Lender for such additional costs incurred or
reduction suffered.

 

(b)           If any Lender shall
have determined that the adoption or effectiveness after the Closing Date of
any law, rule, regulation or guideline regarding capital adequacy, or any
change in any of the foregoing or in the interpretation or administration of
any of the foregoing by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Lender (or any lending office of such Lender) or any Lender’s holding
company with any request or directive regarding capital adequacy (whether or
not having the force of law) of any such authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on such
Lender’s capital or on the capital of such Lender’s holding company, if any, as
a consequence of this Agreement, the Loans made by such Lender pursuant hereto,
such Lender’s Commitment hereunder or the issuance of, or participation in, any
Letter of Credit by such Lender to a level below that which such Lender or such
Lender’s holding company could have achieved but for such adoption, change or
compliance (taking into account Lender’s policies and the policies of such
Lender’s holding company with respect to capital adequacy) by an amount deemed
by such Lender to be material, then from time to time the Borrowers shall pay
to such Lender such additional amount or amounts as will compensate such Lender
or such Lender’s holding company for any such reduction suffered.

 

(c)           A certificate of
each Lender setting forth such amount or amounts as shall be necessary to
compensate such Lender or its holding company as specified in paragraph (a) or
(b) above, as the case may be, shall be delivered to the Borrowers and
shall be conclusive absent manifest error. 
The Borrowers shall pay each Lender the amount shown as due on any such
certificate delivered to it within ten (10) days after its receipt of the
same.  Any Lender receiving any such
payment shall promptly make a refund thereof to the Borrowers if the law,
regulation, guideline or change in circumstances giving rise to such payment is
subsequently deemed or held to be invalid or inapplicable.

 

(d)           Except as provided
in the next sentence, failure on the part of any Lender to demand compensation
for any increased costs or reduction in amounts received or receivable or
reduction in return on capital with respect to any period shall not constitute
a waiver of such Lender’s right to demand compensation with respect to such
period or any other period. Notwithstanding anything to the contrary set forth
herein, unless a Lender gives notice to a Borrower that it is obligated to pay
an amount under this Section 2.16 within 270 days after the
increased cost or reduced return giving rise to such a claim is incurred or
suffered, then such Lender shall only be entitled to be compensated to the
extent that such increased cost or reduced return is incurred or suffered
within the 270-day period before such Lender gives such notice to the Borrower;
provided that if the circumstances giving rise to such a claim have a retroactive
effect, then such 270-day period shall be extended to include the period of
such retroactive 

 

72

 

effect.  The protection of this Section shall be
available to each Lender regardless of any possible contention of the
invalidity or inapplicability of the law, rule, regulation, guideline or other
change or condition which shall have occurred or been imposed.

 

Section 2.17           Change in Legality

 

(a)           Notwithstanding
anything to the contrary contained elsewhere in this Agreement, if (x) any
change after the date of this Agreement in any law or regulation or in the
interpretation thereof by any Governmental Authority charged with the
administration thereof shall make it unlawful for a Lender to make or maintain
a Eurodollar Loan or Discount Rate Loan or to give effect to its obligations as
contemplated hereby with respect to a Eurodollar Loan or Discount Rate Loan or (y) at
any time any Lender determines that the making or continuance of any of its
Eurodollar Loans or Discount Rate Loans has become impracticable as a result of
a contingency occurring after the Closing Date which adversely affects the
applicable interbank market or the position of such Lender in such market,
then, by written notice to the Borrowers, such Lender may (i) declare that
Eurodollar Loans or Discount Rate Loans will not thereafter be made by such
Lender hereunder, whereupon any request by the Borrowers for a (A) Eurodollar
Borrowing shall, as to such Lender only, be deemed a request for an ABR Loan
unless such declaration shall be subsequently withdrawn and, (B) a
Borrowing comprised of Discount Rate Loans shall, as to such Lenders only, be
deemed a request for a Canadian Prime Rate Loan unless such declaration shall
be subsequently withdrawn; and (ii) require that all outstanding (A) Eurodollar
Loans made by it be converted to ABR Loans, in which event all such Eurodollar
Loans shall be automatically converted to ABR Loans as of the effective date of
such notice as provided in paragraph (b) below, and (B) Discount Rate
Loans made by it be converted to Canadian Prime Rate Loans, in which event all
such Discount Rate Loans shall be automatically converted to Canadian Prime
Rate Loans as of the effective date of such notice as provided in paragraph (b) below.  In the event any Lender shall exercise its
rights under clause (i) or (ii) of this paragraph (a), all payments
and prepayments of principal which would otherwise have been applied to repay
the Eurodollar Loans or Discount Rate Loans, as the case may be, that would
have been made by such Lender or the converted Eurodollar Loans or Discount
Rate Loans, as the case may be, of such Lender shall instead be applied to
repay the ABR Loans or Canadian Prime Rate Loans, as the case may be, made by
such Lender in lieu of, or resulting from the conversion of, such Eurodollar
Loans or Discount Rate Loans, as the case may be.

 

(b)           For purposes of this
Section 2.17, a notice to the Borrowers by any Lender pursuant to
paragraph (a) above shall be effective, if lawful, and if any Eurodollar
Loans or Discount Rate Loans, as the case may be, shall then be outstanding, on
the last day of the then-current Interest Period or Contract Period, otherwise,
such notice shall be effective on the date of receipt by the Borrowers.

 

Section 2.18           Pro Rata
Treatment, etc.

 

(a)           All payments and
repayments of principal and interest in respect of the Loans (except as
expressly provided in Section 2.14, Section 2.15, Section 2.16,
Section 2.17 and ARTICLE 11) and all payments of Letter of
Credit Fees (other than those payable to a Fronting Bank) for Letters of Credit
shall be made pro rata among the applicable Lenders in accordance with their
respective applicable Commitments (provided that in the case of Term 

 

73

 

Loans or in
the event that such Commitments shall have expired or been terminated, such pro
rata allocation shall be based on the respective principal amounts of the
outstanding Loans or participations in Letters of Credit).  All payments of Commitment Fees shall be made
pro rata among the Lenders in accordance with their Commitments.  All payments by the Borrowers hereunder shall
be (i) except as otherwise provided in Section 2.19, net of
any tax applicable to the Borrowers and (ii) made in Dollars or Canadian
Dollars (as applicable) in immediately available funds, without defense, setoff
or counterclaim and free of any restriction or condition, at the office of the
Applicable Agent by 12:00 Noon, New York City time, on the date on which such
payment shall be due.  Interest in
respect of any Loan hereunder shall accrue from and including the date of such
Loan to but excluding the date on which such Loan is paid in full or converted
to a Loan of a different Type.

 

(b)           Unless the
Applicable Agent shall have received notice from the applicable Borrower prior
to the date on which any payment is due to the Applicable Agent for the account
of the Lenders or a Fronting Bank hereunder that the Borrower will not make
such payment, the Applicable Agent may assume that the Borrower has made such
payment on such date in accordance herewith and may, in reliance upon such
assumption, distribute to the Lenders or a Fronting Bank, as the case may be,
the amount due.  In such event, if the
Borrower has not in fact made such payment, then each of the Lenders or a
Fronting Bank, as the case may be, severally agrees to repay to the Applicable
Agent forthwith on demand the amount so distributed to such Lender or Fronting
Bank with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Applicable Agent, at the greater of the Federal Funds Effective Rate and a rate
determined by the Applicable Agent in accordance with banking industry rules on
interbank compensation.

 

(c)           If any Lender shall
fail to make any payment required to be made by it pursuant to Section 2.4(e) or
2.4(g), Section 2.7(b), 2.7(c), 2.7(d) or
2.7(e), Section 2.18(b) or Section 9.6(b),
then the Applicable Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Applicable
Agent for the account of such Lender to satisfy such Lender’s obligations under
such Sections until all such unsatisfied obligations are fully paid.

 

Section 2.19           Taxes

 

(a)           Except as otherwise
provided in this Section 2.19, any and all payments by the Loan
Parties hereunder and under any other Loan Document shall be made free and
clear of and without deduction for any and all current or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding taxes imposed on or measured by the net income or net profit
of an Agent, a Fronting Bank or any Lender (or any transferee or assignee
thereof, including a participation holder (any such entity being called a “Transferee”)) and franchise taxes, in
each case imposed on an Agent, a Fronting Bank or any Lender (or Transferee) by
the jurisdiction under the laws of which such Agent, such Fronting Bank or any
such Lender (or Transferee) is organized or in which the applicable lending
office of any such Lender (or Transferee) or applicable office of such Agent or
such Fronting Bank, is located or any political subdivision thereof or by any
other jurisdiction or by any political subdivision or taxing authority therein
other than a jurisdiction in which such Agent, such Fronting Bank or such
Lender (or Transferee) would not be subject to tax but for the execution and
performance 

 

74

 

of, the
receipt of payment and the enforcement of rights under this Agreement or any
other Loan Document (all such nonexcluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities being hereinafter referred to as “Taxes”).  If the Loan Parties shall be required by law
to deduct any Taxes from or in respect of any sum payable hereunder to the
Lenders (or any Transferee), a Fronting Bank or the Agents, (i) the sum
payable shall be increased by the amount necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section) such Lender (or Transferee), such Fronting Bank or such
Agent (as the case may be) shall receive an amount equal to the sum it would
have received had no such deductions been made, (ii) the Loan Parties
shall make such deductions and (iii) the Loan Parties shall pay the full
amount deducted to the relevant taxing authority or other Governmental
Authority in accordance with applicable law.

 

(b)           In addition, the
Loan Parties agree to pay any current or future stamp or documentary taxes or
any other excise or property taxes, charges, assessments or similar levies that
arise from any payment made hereunder or from the execution, delivery or
registration of, or otherwise with respect to, this Agreement or any other Loan
Document (hereinafter referred to as “Other Taxes”).

 

(c)           The Borrowers will
indemnify each Lender (or Transferee), each Fronting Bank and each Agent for
the full amount of Taxes and Other Taxes paid by such Lender (or Transferee),
such Fronting Bank or such Agent, as the case may be, and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or legally
asserted by the relevant taxing authority or other Governmental Authority.  Such indemnification shall be made within
thirty (30) days after the date any Lender (or Transferee), any Fronting Bank
or any Agent, as the case may be, makes written demand therefor.  If any Lender (or Transferee), Fronting Bank
or Agent receives a refund in respect of any Taxes or Other Taxes as to which
it has been indemnified by the Loan Parties pursuant to this Section, and in
such Lender’s (or Transferee’s), Fronting Bank’s or Agent’s opinion, such
refund amount is both reasonably identifiable and quantifiable by it without
unacceptable administrative burden, it shall promptly notify the Loan Parties
of such refund and shall, within thirty (30) days after receipt of a request by
the Loan Parties (or promptly upon receipt, if the Loan Parties have requested
application for such refund pursuant hereto), repay such refund to the Loan
Parties (to the extent of amounts that have been paid by the Loan Parties under
this Section with respect to such refund) plus interest that is received
by the Lender (or Transferee), Fronting Bank or such Agent as part of the
refund, net of all taxes and out-of-pocket expenses of such Lender (or
Transferee), Fronting Bank or such Agent and without additional interest
thereon; provided that the Loan Parties, upon the request of such Lender
(or Transferee), such Fronting Bank, or such Agent, agree to return such refund
(plus penalties, interest or other charges) to such Lender (or Transferee),
Fronting Bank or the Administrative Agent in the event such Lender (or
Transferee), such Fronting Bank, or such Agent is required to repay such
refund.  Nothing contained in this sub-Section (c) shall
interfere with the right of any Lender (or Transferee), Fronting Bank or any
Agent to arrange its affairs in any manner it thinks fit and, in particular, no
Lender (or Transferee), Fronting Bank or Agent shall be under any obligation to
claim relief for tax purposes on its corporate profits or otherwise, or to
claim such relief in priority to any other claims, reliefs, credits or
deductions available to it, or to require any Lender (or Transferee), any
Fronting Bank or any Agent to make available any 

 

75

 

of its tax
returns (or any other information relating to its taxes that it deems to be
confidential) to any Loan Party or any other Person.

 

(d)           Within thirty (30)
days after the date of any payment of Taxes or Other Taxes withheld by the Loan
Parties in respect of any payment to any Lender (or Transferee), any Fronting
Bank or any Agent, the Loan Parties will furnish to the Administrative Agent,
at its address referred to on the signature pages hereof, the original or
a certified copy of a receipt evidencing payment thereof or such other evidence
of payment as shall be satisfactory to the Agent or the Lender (or Transferee).

 

(e)           Without prejudice to
the survival of any other agreement contained herein, the agreements and
obligations contained in this Section shall survive the payment in full of
the principal of and interest on all Loans made hereunder.

 

(f)            Each Lender (and
Transferee), each Fronting Bank and each Agent shall on or prior to the Closing
Date (in the case of each Lender and Agent listed on the signature pages hereof
on the Closing Date) or on or prior to the date of the Assignment and
Acceptance pursuant to which it becomes a Lender (in the case of each other
Lender), deliver to the Loan Parties and the Administrative Agent such
certificates, documents and other evidence, as required by the Code or Treasury
Regulations issued pursuant thereto, including, if a United States Person (as
such term is defined in Section 7701(a)(30) of the Code), two original copies
of (A) Internal Revenue Service Form W-9 (unless such Lender (or
Transferee), Fronting Bank or Agent is an “exempt recipient” as defined in
Treasury Regulations Section 1.6049-4(c) for which no withholding is
required) and, if not a United States Person (as such term is defined in Section 7701(a)(30)
of the Code), two original copies of (B) Internal Revenue Service Forms
W-8BEN, W-8IMY, or W-8ECI and any other certificate or statement of exemption
required by the applicable Treasury Regulations, properly completed and duly
executed by such Lender (or Transferee), Fronting Bank or such Agent to
establish that such payment is not subject to United States Federal withholding
tax under the Code.  In addition, each Lender
(and Transferee), each Fronting Bank, and each Agent agrees that from time to
time after the Closing Date or the date of the Assignment and Acceptance
pursuant to which it becomes a Lender, whenever a lapse in time or change in
circumstances renders such forms or other documents obsolete or inaccurate in
any material respect, such Lender (and Transferee), such Fronting Bank, or such
Agent shall, to the extent permitted under applicable law, promptly deliver to
the Loan Parties such replacement forms or other documents or notify the Loan Parties
of its inability to deliver any such forms or other documents.  Unless the Loan Parties and the
Administrative Agent have received forms or other documents satisfactory to
them indicating that such payments hereunder are not subject to United States Federal
withholding tax or are subject to such tax at a rate reduced by an applicable
tax treaty, the Loan Parties or the Administrative Agent shall withhold taxes
from such payments at the applicable statutory rate.

 

(g)           The Loan Parties
shall not be required to pay any additional amounts to any Lender (or
Transferee), any Fronting Bank or any Agent in respect of United States Federal
withholding tax pursuant to sub-Section(a) above if the obligation to pay
such additional amounts would not have arisen but for a failure by such Lender
(or Transferee), such Fronting Bank or such Agent to comply with the provisions
of sub-Section (f) above.

 

76

 

(h)           Any Lender (or
Transferee), Fronting Bank or Agent claiming any additional amounts payable
pursuant to this Section 2.19 shall use reasonable efforts
(consistent with legal and regulatory restrictions) to file or deliver to the
applicable Loan Party with a copy to the Administrative Agent any certificate
or document reasonably requested by the Loan Parties if the making of such
delivery or such a filing would avoid the need for or reduce the amount of any
such additional amounts that may thereafter accrue and would not, in the sole
determination of such Lender (or Transferee), such Fronting Bank or such Agent,
be otherwise materially disadvantageous to such Lender (or Transferee),
Fronting Bank or such Agent.

 

(i)            For greater
certainty, no failure to provide such information, make such filing or change
such lending office shall relieve any Loan Party of any of its obligations
hereunder.

 

Section 2.20           Certain
Fees.  The Borrowers shall pay to the
Administrative Agent, for the respective accounts of the Administrative Agent
and the Lenders, the fees set forth in (i) that certain fee letter dated January 6,
2009 among the Administrative Agent, J.P. Morgan Securities Inc. and the
Parent, (ii) that certain fee letter dated January 6, 2009 among the
Administrative Agent, the Co-Lead Arrangers, Deutsche Bank Trust Company
Americas and the Parent, and (iii) that certain participation fee letter
dated January 23, 2009 among the Administrative Agent, the Co-Lead
Arrangers, Deutsche Bank Trust Company Americas and the Parent, in each case at
the times set forth therein; provided, that if the Canadian Borrower
would otherwise pay any of the fees described in this Section 2.20
to the Administrative Agent with respect to any services provided in Canada by
the Canadian Administrative Agent or the Canadian Collateral Agent, it shall
pay such portion of the fee directly to the Canadian Administrative Agent or
the Canadian Collateral Agent, as the case may be.

 

Section 2.21           Commitment Fee.  The
applicable Borrower shall pay to the Applicable Agent on behalf of the U.S.
Revolving Lenders and the Canadian Revolving Lenders a commitment fee (the “Commitment Fee”) for the period commencing on the
Closing Date and ending on the Termination Date or the earlier date of
termination of the Commitments calculated (on the basis of the actual number of
days elapsed over a year of 360 days) at a rate equal to the Commitment Fee
Percentage on the average daily Unused Revolving Commitment during the
preceding quarter.  For the avoidance of
doubt, the Commitment Fee shall cease to accrue on any portion of the Unused
Revolving Commitment on the date such portion is converted to a U.S. Term Loan
pursuant to Section 9.23(a) or to a Canadian Term Loan
pursuant to Section 9.23(c). 
Such Commitment Fee, to the extent then accrued, shall be payable (x) monthly,
in arrears, on the last calendar day of each month, (y) on the Termination
Date and (z) as provided in Section 2.11 hereof, upon any
reduction or termination in whole or in part of the Total Revolving Commitment.

 

Section 2.22           Letter
of Credit Fees.  The applicable
Borrower shall pay with respect to each Letter of Credit (i) to the
Applicable Agent on behalf of the U.S. Revolving Lenders and the Canadian
Revolving Lenders, as applicable, a fee calculated (from the date issued on the
basis of the actual number of days elapsed over a year of 360 days) at a rate
equal to the Applicable Margin on the undrawn stated amount thereof, and (ii) to
the applicable Fronting Bank such Fronting Bank’s customary fees for issuance,
amendments and processing referred to in Section 2.4.  In addition, the applicable Borrower shall
pay each Fronting Bank for its account a fronting 

 

77

 

fee in respect of each Letter of
Credit issued by such Fronting Bank, for the period from the date issued to and
including the date of termination of such Letter of Credit, computed at a rate
per annum equal to 0.25%, or, if such Fronting Bank is a bank other than JPMCB,
as separately agreed by the Borrowers and such Fronting Bank.  Accrued fees described in clause (i) of
the first sentence of this paragraph in respect of each Letter of Credit shall
be due and payable monthly in arrears on the last calendar day of each month
and on the Termination Date, or such earlier date as the Total Revolving
Commitment is terminated.  Accrued fees
described in clause (ii) of the first sentence of this paragraph in
respect of each Letter of Credit shall be payable at times to be determined by
the Fronting Banks, the Borrowers and the Administrative Agent.

 

Section 2.23           Nature of
Fees. All Fees shall be paid on the dates due, in immediately available
funds, to the Applicable Agent for the respective accounts of the Applicable
Agent and the Lenders, as provided herein and in the letters described in Section 2.20.  Once paid, none of the Fees shall be
refundable under any circumstances.

 

Section 2.24           Priority
and Liens

 

(a)           Each of the Loan
Parties hereby covenants and agrees that the Secured Obligations of the Loan
Parties hereunder and under the Loan Documents, the U.S. Guaranteed Obligations
and the Canadian Guaranteed Obligations of each of the Loan Parties as follows:

 

(i)            With
respect to the Secured Obligations of the U.S. Loan Parties and the Canadian
Borrower:

 

(A)                              in
the U.S. Cases pursuant to Section 364(c)(1) of the Bankruptcy Code,
such Secured Obligations shall at all times constitute an allowed Superpriority
Claim and be payable from and have recourse to all pre-petition and
post-petition property of the estates of the U.S. Loan Parties and the Canadian
Borrower and all proceeds thereof (including, upon entry of the Final Order,
any proceeds of Avoidance Actions), and which Superpriority Claim shall be
senior to the Superpriority Claim granted to the Pre-Petition Agent and the
Pre-Petition Secured Lenders pursuant to Section 2.24(d) below;

 

(B)                                in
the U.S. Cases pursuant to Section 364(c)(2) of the Bankruptcy Code,
such Secured Obligations shall at all times be secured by a perfected first
priority Lien on all unencumbered property of the U.S. Loan Parties and the
Canadian Borrower (including, upon entry of the Final Order, any proceeds of
Avoidance Actions) and on all cash maintained in any Collateral Account and any
investments of the funds contained therein, provided that amounts in the
Collateral Accounts shall not be subject to the Carve-Out or the CCAA Charges;

 

78

 

(C)                                in
the U.S. Cases pursuant to Section 364(c)(3) of the Bankruptcy Code,
such Secured Obligations shall be secured by a perfected junior Lien upon all
property of the U.S. Loan Parties and the Canadian Borrower that is subject to
valid and perfected Liens in existence on the Filing Date or that is subject to
valid Liens in existence on the Filing Date that are perfected subsequent to
the Filing Date as permitted by Section 546(b) of the Bankruptcy Code
(other than certain property that is subject to the existing Liens that secure
obligations under the Pre-Petition Credit Agreement, which liens shall be
primed by the liens to be granted to the Administrative Agent described in the
following clause (D));

 

(D)                               in
the U.S. Cases pursuant to Section 364(d)(1) of the Bankruptcy Code,
such Secured Obligations shall be secured by a perfected first priority, senior
priming Lien on all of the property of the U.S. Loan Parties and the Canadian
Borrower (including, without limitation, cash, inventory, receivables, rights
under license agreements, property, plant and equipment and the residual interest
of the U.S. Loan Parties and the Canadian Borrower in any Receivables
Securitization Programs) that is subject to the existing liens which secure (1) the
obligations of the Loan Parties under or in connection with the Pre-Petition
Credit Agreement, and (2) other Liens, obligations or indebtedness of the
Loan Parties junior to the Pre-Petition Credit Agreement (collectively, the “Primed Liens”), which Primed Liens
shall be primed by and made subject and subordinate to the perfected first
priority senior priming Liens to be granted to the Administrative Agent, which
senior priming Liens in favor of the Administrative Agent shall also prime any
Liens granted after the commencement of the Cases to provide adequate
protection Liens in respect of any of the Primed Liens, but shall not prime (1) Non-Primed
Liens which secure the Calpine Debt or (2) other Non-Primed Liens solely
to the extent such Non-Primed Liens secure claims in an aggregate amount less
than or equal to US$60,000,000; and

 

(E)                                 in
the Canadian Cases, pursuant to an order of the Canadian Court, in respect of
the Secured Obligations of the Canadian Borrower, such Secured Obligations will
be secured by a superpriority charge and senior priming security interest (“CCAA DIP Lenders’ Charge”) over all of
the present and future assets of the Canadian Borrower 

 

79

 

with priority over all existing
liens and security, including the Primed Liens; and

 

(ii)           With
respect to the Canadian Secured Obligations of the Canadian Loan Parties:

 

(A)                              in
the U.S. Cases pursuant to Section 364(c)(1) of the Bankruptcy Code,
such Secured Obligations shall at all times constitute an allowed Superpriority
Claim and be payable from and have recourse to all pre-petition and post-petition
property of the estates of the Canadian Loan Parties and all proceeds thereof
(including, upon entry of the Final Order, any proceeds of Avoidance Actions),
and which Superpriority Claim shall be senior to the Superpriority Claim
granted to the Pre-Petition Agent and the Pre-Petition Secured Lenders pursuant
to Section 2.24(d) below;

 

(B)                                in
the U.S. Cases pursuant to Section 364(c)(2) of the Bankruptcy Code,
such Secured Obligations shall at all times be secured by a perfected first
priority Lien on all unencumbered property of the Canadian Loan Parties
(including, upon entry of the Final Order, any proceeds of Avoidance Actions)
and on all cash maintained in any Collateral Account and any investments of the
funds contained therein, provided that amounts in the Collateral Accounts shall
not be subject to the Carve-Out or the CCAA Charges;

 

(C)                                in
the U.S. Cases pursuant to Section 364(c)(3) of the Bankruptcy Code,
such Secured Obligations shall be secured by a perfected junior Lien upon all
property of the Canadian Loan Parties that is subject to valid and perfected
Liens in existence on the Filing Date or that is subject to valid Liens in
existence on the Filing Date that are perfected subsequent to the Filing Date
as permitted by Section 546(b) of the Bankruptcy Code (other than
certain property that is subject to the existing Liens that secure obligations
under the Pre-Petition Credit Agreement, which liens shall be primed by the
liens to be granted to the Administrative Agent described in the following
clause (D));

 

(D)                               in
the U.S. Cases pursuant to Section 364(d)(1) of the Bankruptcy Code,
such Secured Obligations shall be secured by a perfected first priority, senior
priming Lien on all of the property of the Canadian Loan Parties (including, 

 

80

 

without limitation, cash,
inventory, receivables, rights under license agreements, property, plant and
equipment and the residual interest of the Canadian Loan Parties in any
Receivables Securitization Programs) that is subject to the Primed Liens, which
Primed Liens shall be primed by and made subject and subordinate to the
perfected first priority senior priming Liens to be granted to the
Administrative Agent, which senior priming Liens in favor of the Administrative
Agent shall also prime any Liens granted after the commencement of the Cases to
provide adequate protection Liens in respect of any of the Primed Liens, but
shall not prime (1) Non-Primed Liens which secure the Calpine Debt or (2) other
Non-Primed Liens solely to the extent such Non-Primed Liens secure claims in an
aggregate amount less than or equal to US$60,000,000; and

 

(E)                                 in
the Canadian Cases, pursuant to an order of the Canadian Court, such Secured
Obligations will be secured by the CCAA DIP Lenders’ Charge over all of the
present and future assets of the Canadian Loan Parties with priority over all
existing liens and security, including the Primed Liens;

 

subject in
each case only to the following:

 

(x)            with
respect to the Cases and assets of the U.S. Loan Parties, (x) in the event
of the occurrence and during the continuance of an Event of Default or an event
that would constitute an Event of Default with the giving of notice or lapse of
time or both (a “Default”),
the payment of allowed and unpaid professional fees and disbursements incurred
by (A) the U.S. Loan Parties and (B) any statutory committees
appointed in the Cases of the U.S. Loan Parties, in an aggregate amount of
items (A) and (B) not in excess of the lesser of (I) US$4,000,000
(plus all unpaid professional fees and disbursements reported on the Borrowing
Base Certificate delivered immediately prior to the occurrence of such Default
or Event of Default, to the extent such fees and expense are subsequently
allowed by the Bankruptcy Court), and (II) US$6,500,000, and (y) the
payment of fees pursuant to 28 U.S.C. § 1930 and to the Clerk of the Bankruptcy
Court ((x) and (y), collectively, the “Carve-Out”);

 

(y)           the
CCAA DIP Lenders’ Charge in the assets of the Canadian Loan Parties in the
Canadian Cases will be subject to the court ordered administration charge in an
aggregate amount not in excess of US$1,000,000 (the “Administration
Charge”) for the 

 

81

 

payment of (a) allowed and
unpaid professional fees and disbursements incurred by professionals retained
by the Canadian Loan Parties and (b) allowed and unpaid professional fees
and disbursements of the monitor in the Canadian Cases including allowed and
unpaid legal fees and expenses of its counsel (and including any allowed and
unpaid professional fees and disbursements incurred by the parties referred to
in (a) and (b), prior to the occurrence of such Event of Default); and

 

(z)            the
CCAA DIP Lenders’ Charge in the assets of the Canadian Loan Parties in the
Canadian Cases will also be subject to the Canadian Court ordered directors
charge in an amount not exceeding US$8,600,000 (the “Directors
Charge”), securing the Canadian Loan Parties’ obligation to
indemnify the officers and directors of the Canadian Loan Parties for personal
liability which may arise from non-payment by the Canadian Loan Parties of the
following (which shall be separately identified on the most recent Borrowing
Base Certificate): (a) all outstanding and future wages, salaries,
employee and pension benefits, vacation pay, bonuses and expenses payable on or
after the Filing Date, in each case incurred in the ordinary course of business
and consistent with existing compensation policies and arrangements; (b) any
statutory deemed trust amounts in favour of the Crown in right of Canada or of
any Province thereof or any other taxation authority which are required to be
deducted from employees’ wages, including, without limitation, amounts in
respect of (i) employment insurance, (ii) Canada Pension Plan, (iii) Quebec
Pension Plan, and (iv) income taxes; (c) all goods and services or
other applicable sales taxes required to be remitted by the Canadian Loan
Parties in connection with the sale of goods and services by the Canadian Loan
Parties, but only where such sales taxes are accrued or collected after the
Filing Date, or where such sales taxes were accrued or collected prior to the
Filing Date but are not required to be remitted until on or after the Filing
Date; and (d) any amount payable to the Crown in right of Canada or of any
Province thereof or any political subdivision thereof or any other taxation
authority in respect of municipal realty, municipal business or other taxes,
assessments or levies of any nature or kind which are entitled at law to be
paid in priority to claims of secured creditors and which are attributable to
or in respect of the carrying on of the business by the Canadian Loan Parties;

 

provided
that no portion of the Carve-Out shall be utilized for the payment of
professional fees and disbursements incurred in connection with any challenge
to the amount, extent, priority, validity, perfection or enforcement of (A) the
Indebtedness of the Loan Parties owed to the parties primed by the priming
Liens or to the collateral securing such Indebtedness or any other 

 

82

 

action against
such parties or (B) the Secured Obligations.  Amounts in the Collateral Accounts shall not
be subject to the Carve-Out.  By execution
hereof, the Loan Parties hereby consent to the priming Liens referenced in
clauses (i)(D) and (ii)(D) above. 
Notwithstanding the foregoing, so long as no Default or Event of Default
shall have occurred and be continuing, the Loan Parties shall be permitted to
pay compensation and reimbursement of expenses allowed and payable under 11
U.S.C. §§ 328, 330 and 331, or as allowed and payable pursuant to orders of the
Canadian Court, as the same may be due and payable, and any compensation and
expenses previously paid, or accrued but unpaid, prior to the occurrence of
such Default or Event of Default shall not reduce the Carve-Out or the
Administration Charge.

 

(b)           As a component of
adequate protection, the administrative agents under the Pre-Petition Credit
Agreement (collectively, the “Pre-Petition
Agent”) shall receive from the applicable Borrowers (i) following
the Closing Date, immediate cash payment of all accrued and unpaid interest
(including any pre-petition interest) on the obligations of such Borrower under
the Pre-Petition Credit Agreement (the “Pre-Petition
Debt”) and letter of credit fees at the non-default contract
rate applicable on the Filing Date as provided for in the Pre-Petition Credit
Agreement, and all other accrued and unpaid fees and disbursements (including,
but not limited to, fees and expenses owed to the Pre-Petition Agent and
incurred prior to the Filing Date), (ii) current cash payments of all fees
and expenses owing by such Borrower payable to the Pre-Petition Agent under the
Pre-Petition Credit Agreement, including, but not limited to, the reasonable
fees and disbursements of counsel, financial and other consultants for the
Pre-Petition Agent (including, but not limited to, such fees and disbursements
incurred prior to the Filing Date), and (iii) current cash payments of all
accrued but unpaid interest on the Pre-Petition Debt owing by such Borrower,
and letter of credit and other fees, in each case at the non-default contract
rate applicable on the Filing Date (including LIBOR pricing options) under the
Pre-Petition Credit Agreement, provided that, without prejudice to the rights
of any other party to contest such assertion, the lenders under the
Pre-Petition Credit Agreement (the “Pre-Petition
Secured Lenders”) reserve their rights to assert claims for the
payment of additional interest calculated at any other applicable rate of
interest (including, without limitation, default rates), or on any other basis,
provided for in the Pre-Petition Credit Agreement.

 

(c)           As a further component
of adequate protection, to the extent of the diminution in the value of
collateral on the Petition Date securing the Pre-Petition Debt, including use
of cash collateral, the Pre-Petition Agent and the Pre-Petition Secured Lenders
shall be granted junior replacement security interests in and Liens upon all of
the property of the U.S. Loan Parties (including, upon entry of the Final
Order, any proceeds of Avoidance Actions), which security interests and Liens
shall be subject to the Carve-Out and shall be junior to the security interest
in and Liens upon the property of the U.S. Loan Parties granted under Section 364(d)(1) of
the Bankruptcy Code for the benefit of the Administrative Agent and the
Lenders.

 

(d)           As a further
component of adequate protection, the Pre-Petition Agent and the Pre-Petition
Secured Lenders shall be granted, subject to the payment of the Carve-Out, a
Superpriority Claim in an amount equal to the diminution in the value of
collateral on the Filing Date securing the indebtedness under the Pre-Petition
Credit Agreement, as provided for in section 507(b) of the Bankruptcy
Code, immediately junior to the claims under section 364(c)(1) of the
Bankruptcy Code held by the Administrative Agent and the Lenders and payable
from all 

 

83

 

property of
the U.S. Loan Parties; provided, however, that the Pre-Petition
Agent and the Pre-Petition Secured Lenders shall not receive or retain any
payments, property or other amounts in respect of the Superpriority Claims
under section 507(b) of the Bankruptcy Code unless and until payment in
full of all Secured Obligations of the U.S. Loan Parties.

 

(e)           Subject to the
priorities set forth in subsection (a) above and to the Carve-Out, in the
case of the U.S. Loan Parties, or the Administration Charge, in the case of the
Canadian Loan Parties, as to all real property the title to which is held by a
Loan Party, or the possession of which is held by a Loan Party pursuant to
leasehold interest, the Loan Parties hereby assign and convey as security,
grant a security interest in, hypothecate, mortgage, pledge and set over unto
each Applicable Agent, on behalf of the Secured Parties all of the right, title
and interest of the Loan Parties, in all of such owned real property and in all
such leasehold interests, together in each case with all of the right, title
and interest of the Loan Parties in and to all buildings, improvements, and
fixtures related thereto, any lease or sublease thereof, all general
intangibles relating thereto and all proceeds thereof.  Each Loan Party acknowledges that, pursuant
to the Orders, the Liens in favor of the Applicable Agents on behalf of the
Secured Parties in all of such real property and leasehold instruments of the
Loan Parties shall be perfected without the recordation of any instruments of
mortgage or assignment.  The Loan Parties
further agree that, upon the request of the Administrative Agent, in the
exercise of its business judgment, the Loan Parties shall enter into separate fee
mortgages in recordable form with respect to such properties and other
Collateral Documents, each on terms satisfactory to the Administrative Agent; provided,
however, that no U.S. Loan Party shall be required to pledge in excess
of 65% of the capital stock of its direct Foreign Subsidiaries (other than
capital stock of the Canadian Borrower) or any of the capital stock of any
indirect Foreign Subsidiaries.

 

(f)            To the extent any
Loan Party makes aggregate payments to the Lenders in excess of the aggregate
amount of all Loans received by such Loan Party after the commencement of the
Cases, then such Loan Party, after the payment in full of all Secured
Obligations and the termination of the Revolving Commitment, shall be entitled
to a claim under Section 364(c)(1) of the Bankruptcy Code or the
Initial Order, as applicable, against each other Loan Party, in such amount as
may be determined by the Bankruptcy Court or the Canadian Court taking into
account the relative benefits received by each such person, and such claims
shall be deemed to be subordinate and junior in all respects to the
superpriority claims and charges of the Lenders and the superpriority claims
granted as adequate protection to the Primed Parties.

 

Section 2.25           Use of
Cash Collateral.  Notwithstanding
anything to the contrary contained herein, neither the U.S. Borrower nor the
Canadian Borrower shall be permitted to request a Borrowing under Section 2.7
unless the Loan Parties shall at that time have the use of substantially all
cash collateral subject to the Orders for the purposes described in Section 3.10.

 

Section 2.26           Right of
Set-Off.  Subject to the provisions
of Section 7.1, upon the occurrence and during the continuance of
any Event of Default, each Agent and each Lender is hereby authorized at any
time and from time to time, to the fullest extent permitted by law and without
further order of or application to the Bankruptcy Court or the Canadian Court,
to set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other Indebtedness at any time owing
by each such Agent and each such Lender to 

 

84

 

or for the credit or the account of any Loan
Party against any and all of the Secured Obligations of such Loan Party now or
hereafter existing under the Loan Documents, irrespective of whether or not
such Agent or such Lender shall have made any demand under any Loan Document
and although such obligations may not have been accelerated.  Each Lender and each Agent agrees promptly to
notify the Loan Parties after any such set-off and application made by such
Lender or by such Agent, as the case may be, provided that the failure
to give such notice shall not affect the validity of such set-off and
application.  The rights of each Lender
and each Agent under this Section are in addition to other rights and
remedies which such Lender and such Agent may have upon the occurrence and
during the continuance of any Event of Default.

 

Section 2.27           Security
Interest in Collateral Accounts.  The
Loan Parties, pursuant to Section 364(c)(2) of the Bankruptcy Code,
hereby assign and pledge to the Applicable Agent, for the ratable benefit of
the Secured Parties, and hereby grant to the Applicable Agent, for the ratable
benefit of the Secured Parties, a first priority security interest, senior to
all other Liens, if any, in all of the Loan Parties’ right, title and interest
in and to the Collateral Accounts and any investment of the funds contained
therein.  Cash held in the Letter of
Credit Account or the Canadian Letter of Credit Account shall not be available
for use by the Loan Parties, whether pursuant to Section 363 of the
Bankruptcy Code or otherwise.

 

Section 2.28           Payment
of Obligations.  Subject to the
provisions of Section 7.1, upon the maturity (whether by
acceleration or otherwise) of any of the Secured Obligations under this
Agreement or any other Loan Documents of the Loan Parties, the Lenders shall be
entitled to immediate payment of such Secured Obligations without further
application to or order of the Bankruptcy Court or the Canadian Court.  The Borrowers and the U.S. Loan Parties shall
be jointly and severally liable for payment of all Secured Obligations under
this Agreement or any of the other Loan Documents.  The U.S. Loan Parties and the Canadian Loan
Parties shall be jointly and severally liable for payment of all Canadian
Guaranteed Obligations under this Agreement or any of the other Loan Documents.

 

Section 2.29           No
Discharge; Survival of Claims.  Each
of the Loan Parties agrees that (i) its obligations hereunder shall not be
discharged by the entry of an order (w) confirming a Reorganization Plan
in any of the Cases under the Bankruptcy Code or under the CCAA, (x) converting
any of the U.S. Cases to a case under Chapter 7 of the Bankruptcy Code or any
of the Canadian Cases to similar liquidation proceeding in the Canadian Cases, (y) dismissing
or terminating any of the Cases, or (z) appointing any trustee in
bankruptcy, interim receiver, receiver or receiver-manager or similar officer
or agent with respect to the Canadian Loan Parties (and each of the Loan
Parties, pursuant to Section 1141(d)(4) of the Bankruptcy Code,
hereby waives any such discharge) and (ii) the Superpriority Claims and
the CCAA DIP Lenders’ Charge granted to the Agents and the Lenders pursuant to
the Orders and described in Section 2.24 shall not be affected in
any manner by the entry of an order confirming a Reorganization Plan.

 

Section 2.30           Fifteen
Month Facility Extension Option.  The
Borrowers may extend the Maturity Date from January 28, 2010 to April 28,
2010 (the “Fifteen Month Facility Extension Option”)
subject to, and the Maturity Date shall be so extended upon satisfaction of,
the following conditions precedent:

 

85

 

(i)            the
Borrowers shall provide written notice to the Administrative Agent at least
thirty (30) days prior to January 28, 2010 of their intention to exercise
the Fifteen Month Facility Extension Option;

 

(ii)           the
Borrowers shall pay a fee to the Administrative Agent on or before the initial
Maturity Date for the account of the Lenders equal to 1.0% of the outstanding
principal balance of the Term Loans plus the then aggregate Commitments;

 

(iii)          the Loan Parties shall have filed with the
Bankruptcy Court and the Canadian Court a Reorganization Plan providing for the
full repayment of the Loans in cash upon consummation thereof;

 

(iv)          as
of the initial Maturity Date, (a) Excess Availability plus (b) the
Loan Parties’ Available Cash shall be at least US$150,000,000 of which Excess
Availability is not less than US$100,000,000 (taking into account the reduction
in the U.S. PP&E Component and Canadian PP&E Component to be effective
on January 28, 2010); and

 

(v)           no
Default or Event of Default shall have occurred and be continuing as of the
initial Maturity Date.

 

The
Administrative Agent will notify the Borrowers and the Lenders upon the
effectiveness of the Fifteen Month Facility Extension Option.

 

Section 2.31           Eighteen
Month Facility Extension Option. 
Following exercise of the Fifteen Month Facility Extension Option, the
Borrowers may extend the Maturity Date from April 28, 2010 to July 28,
2010 (the “Eighteen Month Facility Extension Option”)
subject to, and the Maturity Date shall be so extended upon satisfaction of,
the following conditions precedent:

 

(i)            the
Borrowers shall provide written notice to the Administrative Agent at least
thirty (30) days prior to April 28, 2010 of their intention to exercise
the Eighteen Month Facility Extension Option;

 

(ii)           the
Borrowers shall pay a fee to the Administrative Agent on or before April 28,
2010 for the account of the Lenders equal to 1.0% of the outstanding principal
balance of the Term Loans plus the then aggregate Commitments;

 

(iii)          Required
Lenders shall have approved the extension of the Maturity Date to July 28,
2010;

 

(iv)          the
Loan Parties shall not have withdrawn from the Bankruptcy Court or the Canadian
Court a Reorganization Plan and confirmation or approval of such Reorganization
Plan shall not 

 

86

 

have been denied by the
Bankruptcy Court or the Canadian Court, as applicable, at any time prior to April 28,
2010;

 

(v)           as
of April 28, 2010, (a) Excess Availability plus (b) the
Loan Parties’ Available Cash shall be at least US$150,000,000 of which Excess
Availability is not less than US$100,000,000 (taking into account the reduction
in the U.S. PP&E Component and Canadian PP&E Component to be effective
on April 28, 2010); and

 

(vi)          no
Default or Event of Default shall have occurred and be continuing as of April 28,
2010.

 

The
Administrative Agent will notify the Borrowers and the Lenders upon the
effectiveness of the Eighteen Month Facility Extension Option.

 

Section 2.32           Mitigation
Obligations; Replacement of Lenders.

 

(a)           If any Lender
requests compensation under Section 2.16, or if the Borrowers are
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.19,
then such Lender shall use reasonable efforts to designate a different lending
office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the judgment of such Lender, such designation or assignment (i) would
eliminate or reduce amounts payable pursuant to Section 2.16 or Section 2.19,
as the case may be, in the future and (ii) would not subject such Lender
to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender.  The Borrowers hereby
agree to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

 

(b)           If any Lender
requests compensation under Section 2.16, or if the Borrowers are
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender) pursuant to Section 2.19,
or if any Lender becomes a Defaulting Lender, then the Borrowers may, at their
sole expense and effort, upon notice to such Lender and the Applicable Agent,
require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in Section 9.3), all
its interests, rights and obligations under this Agreement to an assignee that
shall assume such obligations (which assignee may be another Lender, if a
Lender accepts such assignment); provided that (i) the Borrowers shall
have received the prior written consent of the Applicable Agent (and if a
Revolving Commitment is being assigned, the Fronting Banks), which consent
shall not unreasonably be withheld, (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans and
participations in Letters of Credit, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of
such outstanding principal and accrued interest and fees) or the Borrowers (in
the case of all other amounts) and (iii) in the case of any such
assignment resulting from a claim for compensation under Section 2.16
or payments required to be made pursuant to Section 2.19, such
assignment will result in a reduction in such compensation or payments.  A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver

 

87

 

by such Lender
or otherwise, the circumstances entitling the Borrowers to require such
assignment and delegation cease to apply.

 

Section 2.33                                Defaulting
Lenders.  Notwithstanding any
provision of this Agreement to the contrary, if any Lender becomes a Defaulting
Lender, then the following provisions shall apply for so long as such Lender is
a Defaulting Lender:

 

(a)           fees shall cease to
accrue on the unfunded portion of the Revolving Commitment of such Defaulting
Lender pursuant to Section 2.21;

 

(b)           the Commitment and
Credit Exposure of such Defaulting Lender shall not be included in determining
whether all Lenders or the Required Lenders have taken or may take any action
hereunder (including any consent to any amendment or waiver pursuant to Section 9.10),
provided that any waiver, amendment or modification requiring the consent of
all Lenders or each affected Lender which affects such Defaulting Lender
differently than other affected Lenders shall require the consent of such
Defaulting Lender;

 

(c)           if any LC Exposure
exists at the time a Lender becomes a Defaulting Lender then:

 

(i)                                     all
or any part of such LC Exposure which pertains to the U.S. Letter of Credit
Outstandings shall be reallocated among the non-Defaulting Lenders having U.S.
Revolving Commitments in accordance with their respective Applicable
Percentages but only to the extent (x) the sum of all non-Defaulting
Lenders’ U.S. Revolving Loans plus such Defaulting Lender’s LC Exposure in
respect of U.S. Letter of Credit Outstandings does not exceed the total of all
non-Defaulting Lenders’ U.S. Revolving Commitments and (y) the conditions
set forth in Section 4.2 are satisfied at such time;

 

(ii)                                  all
or any part of such LC Exposure which pertains to the Canadian Letter of Credit
Outstandings shall be reallocated among the non-Defaulting Lenders having
Canadian Revolving Commitments in accordance with their respective Applicable
Percentages but only to the extent (x) the sum of all non-Defaulting
Lenders’ Canadian Revolving Loans plus such Defaulting Lender’s LC Exposure in
respect of Canadian Letter of Credit Outstandings does not exceed the total of
all non-Defaulting Lenders’ Canadian Revolving Commitments and (y) the
conditions set forth in Section 4.2 are satisfied at such time

 

(iii)                               if
the reallocation described in clauses (i) or (ii) above cannot, or
can only partially, be effected, neither the Fronting Banks nor any Lender
shall have any obligation to issue new Letters of Credit under this Agreement
unless the Borrowers shall have cash collateralized such Defaulting Lender’s LC
Exposure (after giving 

 

88

 

effect to any partial
reallocation pursuant to clauses (i) and (ii) above) in accordance
with the procedures set forth in Section 2.4(c) for so long as
such LC Exposure is outstanding;

 

(iv)                              if
the Borrowers cash collateralize any portion of such Defaulting Lender’s LC
Exposure pursuant to Section 2.33(c), the Borrowers shall not be
required to pay any fees to such Defaulting Lender pursuant to Section 2.21
with respect to such Defaulting Lender’s LC Exposure during the period such
Defaulting Lender’s LC Exposure is cash collateralized;

 

(v)                                 if
the LC Exposure of the non-Defaulting Lenders is reallocated pursuant to Section 2.33(c),
then the fees payable to the Lenders pursuant to Section 2.21 shall
be adjusted in accordance with such non-Defaulting Lenders’ Applicable
Percentages; or

 

(vi)                              if
any Defaulting Lender’s LC Exposure is neither cash collateralized nor
reallocated pursuant to Section 2.33(c), then, without prejudice to
any rights or remedies of any Fronting Bank or any Lender hereunder, all letter
of credit fees payable under Section 2.22 with respect to such
Defaulting Lender’s LC Exposure shall be payable to such Fronting Bank until such
LC Exposure is cash collateralized or reallocated;

 

(d)           so long as any
Lender is a Defaulting Lender, no Fronting Bank shall be required to issue,
amend or increase any Letter of Credit, unless it is satisfied that the related
exposure will be 100% covered by the Commitments of the non-Defaulting Lenders
or cash collateral will be provided by the Borrowers in accordance with Section 2.33(c),
and participating interests in any such newly issued or increased Letter of
Credit shall be allocated among non-Defaulting Lenders in a manner consistent
with Section 2.33(c)(i) (and Defaulting Lenders shall not
participate therein); and

 

(e)           any amount payable
to such Defaulting Lender hereunder (whether on account of principal, interest,
fees or otherwise and including any amount that would otherwise be payable to
such Defaulting Lender pursuant to Section 2.26 but excluding Section 2.32(b))
shall, in lieu of being distributed to such Defaulting Lender, be retained by
the Applicable Agent in a segregated account and, subject to any applicable
requirements of law, be applied at such time or times as may be determined by
the Applicable Agent (i) first, to the payment of any amounts owing
by such Defaulting Lender to the Applicable Agent hereunder, (ii) second,
pro rata, to the payment of any amounts owing by such Defaulting Lender to any
Fronting Bank hereunder, (iii) third, if so determined by the
Applicable Agent or requested by a Fronting Bank, to be held in such account as
cash collateral for future funding obligations of the Defaulting Lender of any
participating interest in any Letter of Credit, (iv) fourth, to the
funding of any Loan in respect of which such Defaulting Lender has failed to
fund its portion thereof as required by this Agreement, as determined by the
Applicable Agent, (v) fifth, if so determined by the Applicable
Agent and the Borrowers, held in such account as cash collateral for future
funding obligations of the Defaulting Lender of any Loans under this Agreement,
(vi) sixth, to the 

 

89

 

payment of any
amounts owing to the Lenders or a Fronting Bank as a result of any judgment of
a court of competent jurisdiction obtained by any Lender or such Fronting Bank
against such Defaulting Lender as a result of such Defaulting Lender’s breach
of its obligations under this Agreement, (vii) seventh, to the
payment of any amounts owing to the Borrowers as a result of any judgment of a
court of competent jurisdiction obtained by the Borrowers against such Defaulting
Lender as a result of such Defaulting Lender’s breach of its obligations under
this Agreement, and (viii) eighth, to such Defaulting Lender or as
otherwise directed by a court of competent jurisdiction; provided that if such
payment is (x) a prepayment of the principal amount of any Loans or
reimbursement obligations in respect of Letter of Credit disbursements for
which a Defaulting Lender has funded its participation obligations and (y) made
at a time when the conditions set forth in Section 4.2 are satisfied,
such payment shall be applied solely to prepay the Loans of, and reimbursement
obligations owed to, all non-Defaulting Lenders pro rata prior to being applied
to the prepayment of any Loans, or reimbursement obligations owed to, any
Defaulting Lender.

 

In the event that the
Applicable Agent, the Borrowers and each Fronting Bank each agrees that a
Defaulting Lender has adequately remedied all matters that caused such Lender
to be a Defaulting Lender, then the LC Exposure of the Lenders shall be readjusted
to reflect the inclusion of such Lender’s Revolving Commitment and on such date
such Lender shall purchase at par such of the Loans of the other Lenders as the
Applicable Agent shall determine may be necessary in order for such Lender to
hold such Loans in accordance with its Applicable Percentage.

 

ARTICLE 3.      REPRESENTATIONS
AND WARRANTIES

 

In order to induce the Lenders to make Loans and issue or participate
in Letters of Credit hereunder, the Loan Parties, jointly and severally,
represent and warrant as follows:

 

Section 3.1                                      Organization
and Authority.  Each of the Loan
Parties and its respective Subsidiaries (i) is duly organized, validly
existing and in good standing under the law of its jurisdiction of
organization; (ii) is duly qualified to do business and in good standing
in each jurisdiction in which the failure to so qualify would have a Material
Adverse Effect; (iii) subject to the entry of the Orders (as applicable),
has the requisite power and authority to effect the transactions contemplated
hereby, and by the other Loan Documents to which it is a party, and (iv) subject
to the entry by the Bankruptcy Court or the Canadian Court, as applicable, of
the Orders, has all requisite power and authority and the legal right to own
and operate its properties, and to conduct its business as now or currently
proposed to be conducted.

 

Section 3.2                                      Due
Execution.  Upon the entry by the
Bankruptcy Court and the Canadian Court, as applicable, of the Orders, the
execution, delivery and performance by each of the Loan Parties of each of the
Loan Documents to which it is a party, including, without limitation, the grant
of the Liens by each of the Loan Parties hereunder and under the Collateral
Documents, (i) are within the respective powers of each of the Loan
Parties, have been duly authorized by all necessary action, including the
consent of shareholders, partners or members, where required, and do not (A) contravene
the Organizational Documents of any of the Loan Parties, (B) violate any
Requirement of Law that could reasonably be expected to result in a Material
Adverse Effect, (C) conflict with or result in a breach of, or constitute
a default under, 

 

90

 

any indenture, mortgage or deed of trust
entered into after the Filing Date or any material lease, agreement or other
instrument entered into after the Filing Date binding on the Loan Parties or
any of their respective properties, or (D) result in or require the
creation or imposition of any Lien under any document described in clause (C) upon
any of the property of any of the Loan Parties other than Liens granted
pursuant to this Agreement and the Collateral Documents; and (ii) do not
require the consent, authorization by or approval of or notice to or filing or
registration with any Governmental Authority other than the entry of the
Interim Order (or the Final Order, as applicable).  Except for the entry of the Interim Order (or
the Final Order, as applicable), no authorization, approval or other action by,
and no notice to or filing with, any Governmental Authority or regulatory body
is required for the perfection of the security interests or the exercise by the
Agents or the Lenders of their respective rights and remedies under the Loan
Documents.  Upon the entry by the
Bankruptcy Court and the Canadian Court, as applicable, of the Orders, this
Agreement shall have been duly executed and delivered by each of the Loan
Parties.  Upon the entry by the
Bankruptcy Court and the Canadian Court, as applicable, of the Orders, this
Agreement, and each of the other Loan Documents to which the Loan Parties are
or will be a party, when delivered hereunder or thereunder, will be, a legal,
valid and binding obligation of each Loan Party, enforceable against the Loan Parties
in accordance with its terms and the Orders subject to general principles of
equity.

 

Section 3.3                                      Statements
Made.  The information that has been
delivered in writing by any of the Loan Parties to the Agents, the Bankruptcy
Court or the Canadian Court (other than projections and information of a
general economic nature) taken as a whole, as of the date such information was
so furnished, does not contain any untrue statement of a material fact or omit
to state any material fact necessary to make the statements contained therein,
in light of the circumstances under which they were made, taken as a whole, not
materially misleading; and, to the extent that any such information constitutes
projections, such projections were prepared in good faith on the basis of
assumptions, methods, data, tests and information believed by the Loan Parties
to be reasonable at the time such projections were furnished.  All representations and warranties, as made
or deemed made as of a particular time, shall survive execution of each of the
Loan Documents and the making of each Loan or issuance of each Letter of
Credit, and may be relied upon by the Agents and the Lenders as being true and
correct as of the date when made or deemed made until all of the Loan Parties’
Obligations are fully and indefeasibly paid.

 

Section 3.4                                      Financial
Statements.  The Loan Parties have
furnished the Lenders with copies of the audited consolidated financial
statements and schedules of the Parent and its consolidated Subsidiaries for
the fiscal year ended December 31, 2007 and the unaudited financial
statements for each succeeding fiscal quarter thereafter through and including
the fiscal quarter ending September 30, 2008.  Such financial statements present fairly in
all material respects the financial condition and results of operations of the
Parent and its consolidated Subsidiaries on a consolidated basis as of such
dates and for such periods, except, in the case of unaudited financial
statements, for the absence of footnote disclosure and for normal year-end
audit adjustments; such balance sheets and the notes thereto disclose all
liabilities, direct or contingent, of the Loan Parties and their Subsidiaries
as of the dates thereof required to be disclosed by GAAP and such financial
statements were prepared in a manner consistent with GAAP.  Since the fiscal year ended December 31,
2007, and the fiscal quarter ended September 30, 2008, there has been no
event or condition that has had, or could reasonably be expected to 

 

91

 

have, a Material Adverse Effect other than
those which customarily occur as a result of events and circumstances leading
up to and following the commencement the Cases.

 

Section 3.5                                      Ownership.  Each of the Persons listed on Schedule 3.5
is a direct or indirect Subsidiary of the Parent and Schedule 3.5 correctly sets
forth the ownership interest of each of the Loan Parties in their respective
Subsidiaries, in each case as of the Closing Date, and the jurisdiction of
organization of each Subsidiary.  None of
the Loan Parties owns any other Subsidiaries, whether directly or indirectly,
other than as set forth on Schedule 3.5, as
may be updated by the Loan Parties from time to time.  The Loan Parties have valid title to all
assets included from time to time in the Canadian PP&E Component and the
U.S. PP&E Component and to all other material properties and possessions
under lease.

 

Section 3.6                                      Liens.  There are no Liens of any nature whatsoever
on any assets of any of the Loan Parties or their Subsidiaries other than
Permitted Liens.  Except as set forth on Schedule
3.6, none of the Loan Parties is a party to any contract, agreement, lease
or instrument the performance of which, either unconditionally or upon the
happening of an event, will result in or require the creation of a Lien on any
assets of any Loan Party or any of their Subsidiaries or otherwise result in a
violation of this Agreement other than the Liens granted to the Applicable
Agents (for the benefit of the Secured Parties) as provided for in this
Agreement.  The aggregate amount of
claims secured by the Non-Primed Liens, other than the Calpine Debt, does not
exceed US$60,000,000.

 

Section 3.7                                      Compliance
with Law.

 

(a)           The operations of
the Loan Parties and their Subsidiaries comply in all material respects with
all Environmental Laws; (i) except as set forth on Schedule 3.7, to
the knowledge of the Loan Parties, none of the operations of the Loan Parties
or their Subsidiaries is the subject of any Governmental Authority investigation
evaluating whether any violation of Environmental Laws has occurred or remedial
action involving a material expenditure by the Loan Parties is needed to
respond to the presence or release of any Hazardous Waste or Hazardous
Substance in or into the environment which, in each case, would be reasonably
likely to result in a Material Adverse Effect; and (ii) the Loan Parties
and their Subsidiaries do not have any contingent liability in connection with
any violation of Environmental Laws or release of any Hazardous Waste or
Hazardous Substance into the environment that is reasonably likely to result in
a Material Adverse Effect.

 

(b)           None of the Loan
Parties or their Subsidiaries is in violation of any law, rule or
regulation, or in default with respect to any judgment, writ, injunction or
decree of any Governmental Authority the violation of which, or a default with
respect to which, would have a Material Adverse Effect.

 

Section 3.8                                      Insurance.  All policies of insurance of any kind or
nature owned by or issued to the Loan Parties and their Subsidiaries,
including, without limitation, policies of life, fire, theft, product
liability, public liability, property damage, other casualty, employee
fidelity, workers’ compensation, employee health and welfare, title, property
and liability insurance, are in full force and effect and are of a nature and
provide such coverage as (i) is customarily carried 

 

92

 

by companies of the size and character of the
Loan Parties and their Subsidiaries or (ii) was carried by the Loan
Parties and their Subsidiaries prior to commencement of the Cases.

 

Section 3.9                                      The
Orders.  On the date of the making of
the initial Loans or the issuance of the initial Letters of Credit hereunder,
whichever first occurs, the Interim Order will have been entered and will not
have been stayed, amended, vacated, reversed or rescinded except as approved by
the Administrative Agent, in its exclusive discretion in writing.  On the date of the making of any Loan or the
issuance of any Letter of Credit, the Interim Order (or the Final Order, as
applicable), shall have been entered and shall not have been amended, stayed,
vacated or rescinded except as approved in writing by the Administrative Agent,
in its exclusive discretion.  Upon the
maturity (whether by the acceleration or otherwise) of any of the obligations
of the Loan Parties hereunder and under the other Loan Documents, the Lenders
shall, subject to the provisions of Section 7.1 and the Orders, be
entitled to immediate payment of such obligations, and to enforce the remedies
provided for hereunder, without further application to or order by the
Bankruptcy Court or the Canadian Court.

 

Section 3.10                                Use
of Proceeds.  The proceeds of the
Loans will be used for (i) working capital, Letters of Credit and Capital
Expenditures; (ii) other general corporate purposes of the Loan Parties
(including intercompany loans to the extent permitted by this Agreement); (iii) for
the refinancing in full of the Indebtedness outstanding under the Receivables
Securitization Programs; (iv) payment of any related transaction costs,
fees and expenses; and (v) the costs of administration of the Cases.  The Letters of Credit will be issued for
purposes consistent with the ordinary course of business of the Loan Parties,
as determined by the Loan Parties in their reasonable judgment, or for such
other purposes as are acceptable to the Administrative Agent.  The proceeds of Loans may not be used in
connection with the investigation (including discovery proceedings), initiation
or prosecution of any claims, causes or action, adversary proceedings or other
litigation against the Lenders or the Administrative Agent; provided,
however, that no more than US$100,000 of the proceeds of the Loans or the
Collateral may be used by any statutory committee of unsecured creditors to
investigate, and by the monitor in the Canadian Cases to review, the
pre-petition liens and claims of the Pre-Petition Agent and the Pre-Petition
Lenders.

 

Section 3.11                                Litigation.  There are no unstayed actions, suits or
proceedings pending or, to the knowledge of the Loan Parties threatened,
against or affecting any Loan Party or any of their respective Subsidiaries or
any of their respective properties, before any court or governmental
department, commission, board, bureau, agency or instrumentality, domestic or
foreign, that are reasonably likely to have a Material Adverse Effect.

 

Section 3.12                                Intellectual
Property. Set forth on Schedule 3.12 hereto is a complete and accurate list
of all registered patents, trademarks, trade names, service marks and
copyrights, and all applications therefor and licenses thereof, of each Loan
Party or any of their Subsidiaries, showing as of the Closing Date the
jurisdiction in which registered, the registration number, the date of
registration and the expiration date.

 

Section 3.13                                Taxes.  Except to the extent permitted by Section 5.4
hereof, each Loan Party has filed or caused to be filed all federal, state,
provincial, regional and other material tax returns, reports, elections and
filings or other documents that are required to be filed and has paid 

 

93

 

all taxes, fees, levies, withholdings or
charges shown to be due and payable on said returns or on any assessments made
against it or any of its property and all other material taxes, fees or other
charges imposed on it or any of its property by any Governmental Authority
(other than any the amount or validity of which are currently being contested
in good faith by appropriate proceedings and with respect to which reserves, if
any, in conformity with GAAP have been provided on the books of such Loan
Party); other than deemed trusts and statutory liens and charges in favor of a
Governmental Authority in respect of amounts accrued but not yet due in the
usual and ordinary course of the business of the Loan Party, no material tax
Lien has been filed, and, to the knowledge of the Loan Parties, no material
claim is being asserted, with respect to any such tax, fee or other charge
(other than a claim the amount or validity of which is being contested in good
faith by the Loan Party and with respect to which reserves, if any, in
conformity with GAAP have been provided on the books of such Loan Party), and
for greater certainty taxes includes all taxes, charges, fees, levies, imposts
and other assessments, including all income, sales, use, goods and services,
harmonized sales, value added, capital, capital gains, alternative, net worth,
transfer, profits, withholding, payroll, employer health, excise, real property
and personal property taxes, and any other taxes, customs duties, fees,
assessments, or similar charges in the nature of a tax, including Canada
Pension Plan and provincial pension plan contributions, unemployment insurance
payments and workers’ compensation premiums, together with any installments
with respect thereto, and any interest, fines and penalties with respect
thereto, imposed by any Governmental Authority (including federal, state,
provincial, municipal and foreign Governmental Authorities), and whether
disputed or not.

 

Section 3.14                                Investment
Company Act; Other Regulations. 
Neither the Parent nor any other Loan Party is an “investment company”,
or a company “controlled” by an “investment company”, within the meaning of the
Investment Company Act of 1940, as amended. 
The Loan Parties are not subject to any organizational or governing
document, or any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority that prohibits its
ability to incur Indebtedness, other than the Orders.

 

Section 3.15                                ERISA;
Employee Matters.

 

(a)           The Loan Parties and
each of their ERISA Affiliates are in substantial compliance with all
applicable provisions and requirements of ERISA with respect to each Plan, and
have substantially performed all their obligations under each Plan, except to
the extent that any non-compliance with ERISA or any such failure to perform
would not have a Material Adverse Effect on the Loan Parties or any of their
ERISA Affiliates.

 

(b)           No Termination Event
has occurred which has resulted, or is reasonably likely to result, in any
liability to the PBGC or to any other Person that would have a Material Adverse
Effect.

 

(c)           Except to the extent
required under Section 4980B of the Code or Section 601 of ERISA,
none of the Loan Parties maintains or contributes to any employee welfare
benefit plan (as defined in Section 3(1) of ERISA) that provides
health or welfare benefits (through the purchase of insurance or otherwise) for
any retired or former employees of the Loan Parties, except to the extent that
the provision of such benefits would not have a Material Adverse Effect.

 

94

 

(d)           No Pension Plan has
an Unfunded Current Liability in an amount that would have a Material Adverse
Effect.

 

(e)           The Canadian Pension
Plans are duly registered under the ITA and any other applicable laws which
require registration, have been administered in all material respects in
accordance with their terms and with the ITA and such other applicable laws,
and, to the knowledge of the Canadian Borrower, no event has occurred which
could reasonably be expected to cause the loss of such registered status.  The Canadian Benefit Plans have been
administered in all material respects in accordance with their terms and
applicable laws.

 

(f)            All material
obligations of the Canadian Borrower and the other Canadian Loan Parties
required to be performed by the Canadian Borrower or the other Canadian Loan
Parties in connection with the Canadian Pension Plans and the funding
agreements therefor and the Canadian Benefit Plans have been performed on a
timely basis.

 

(g)           As of the Closing
Date, there are no outstanding disputes, investigations, examinations or other
legal proceedings concerning the assets of the Canadian Pension Plans or the
Canadian Benefit Plans.

 

(h)           No promises of
benefit improvements under the Canadian Pension Plans or the Canadian Benefit
Plans have been made, except where such improvement could not reasonably be
expected to have a Material Adverse Effect.

 

(i)            All contributions
or premiums required to be made or paid by the Canadian Borrower or any of its
Subsidiaries to the Canadian Pension Plans or the Canadian Benefit Plans have
been made on a timely basis in accordance with the terms of such plans and all
applicable laws.

 

(j)            To the knowledge of
the Canadian Borrower, there have been no improper withdrawals or applications
of the assets of the Canadian Pension Plans or the Canadian Benefit Plans.

 

Section 3.16                                Material
Subsidiaries.  As of the Filing Date,
the only Material Subsidiary (as such term is defined in the Pre-Petition
Credit Agreement) of the Parent that is a Domestic Subsidiary is the U.S.
Borrower.

 

Section 3.17                                Receivables
Securitization Indebtedness.  All
indebtedness evidenced by the notes issued pursuant to that certain Series 2004-2
Indenture Supplement to Master Indenture, dated as of November 23, 2004,
between SSCE Funding, LLC and Deutsche Bank Trust Company Americas, as
Indenture Trustee, as amended, restated, modified or waived from time to time,
was indefeasibly paid in full prior to the Filing Date.

 

ARTICLE 4.   CONDITIONS OF LENDING

 

Section 4.1                                      Conditions
Precedent to Initial Loans.  The
obligation of the Lenders to make the initial Loans or issue Letters of Credit
on the Closing Date is subject to the following conditions precedent:

 

95

 

(a)           Supporting Documents.  The Administrative Agent shall have received
for each of the Loan Parties:

 

(i)                                     Organizational
Documents, to the extent applicable, certified as of a recent date prior to the
Closing Date by the applicable Governmental Authority;

 

(ii)                                  signature
and incumbency certificates of the officers of such Loan Party executing the
Loan Documents to which it is a party, dated as of the Closing Date;

 

(iii)                               duly
adopted resolutions of the board of directors or similar governing body of each
Loan Party approving and authorizing the execution, delivery and performance of
this Agreement and the other Loan Documents to which it is a party or by which
it or its assets may be bound as of the Closing Date, certified as of the
Closing Date by its secretary or assistant secretary as being in full force and
effect without modification or amendment;

 

(iv)                              a
good standing certificate or equivalent thereof from the applicable
Governmental Authority of each Loan Party’s jurisdiction of incorporation,
organization or formation and in each jurisdiction in which it is qualified as
a foreign corporation or other entity to do business, each dated a recent date
prior to the Closing Date; and

 

(v)                                 such
other documents as the Administrative Agent may reasonably request.

 

(b)           Interim Order.  Not later than five (5) days following
the Filing Date, the Administrative Agent and the Lenders shall have received a
certified copy of each Interim Order approving the Loan Documents and granting
the Superpriority Claim status and senior priming and other Liens described in Section 2.24
and the CCAA DIP Lenders’ Charge, in the case of the Initial Order, which
Interim Order (i) shall have been entered upon an application or motion of
the applicable Loan Parties, in form and substance satisfactory to the
Administrative Agent and the Co-Lead Arrangers and on such prior notice to such
parties as may be satisfactory to the Administrative Agent and the Co-Lead
Arrangers, (ii) shall authorize extensions of credit in amounts
satisfactory to the Administrative Agent and the Co-Lead Arrangers, (iii) shall
approve the payment by the Loan Parties of all of the Fees set forth in Section 2.20,
Section 2.21 and Section 2.22, (iv) shall be in
full force and effect, (v) shall not have been stayed, reversed, modified
or amended in any respect without the written consent of the Administrative
Agent and the Co-Lead Arrangers, (vi) shall be entered with the consent or
non-objection of a preponderance (as determined by the Administrative Agent and
the Co-Lead Arrangers in their exclusive discretion) of the secured creditors
of any of the Loan Parties under the Pre-Petition Credit Agreement, and (vii) if
the Interim Order is the subject of a pending appeal in any respect, neither
the making of such Loan nor the issuance of such Letter of Credit nor the
performance by any of the Loan Parties of any of their obligations hereunder or
under the Loan Documents or 

 

96

 

under any
other instrument or agreement referred to herein shall be the subject of a presently
effective stay pending appeal.

 

(c)           Loan Documents.  The Administrative Agent shall have received (i) this
Agreement, duly executed and delivered by the Administrative Agent, each Loan
Party and each Lender, (ii) the Security and Pledge Agreement in
substantially the form of Exhibit B-1 (the “Security and Pledge Agreement”),
duly executed by each Loan Party and delivered to the Administrative Agent, (iii) the
Canadian Security Agreement in substantially the form of Exhibit B-2,
and (iv) each of the other Loan Documents listed on Schedule 4.1
hereto.

 

(d)           First Day Orders.  All of the “first day orders” entered by the
Bankruptcy Court and by the Canadian Court at the time of the commencement of
the U.S. Cases, including but not limited to in respect of amounts of critical
vendor payments, if any, shall be reasonably satisfactory in form and substance
to the Administrative Agent and the Co-Lead Arrangers.

 

(e)           Opinions of Counsel.  The Administrative Agent and the Lenders
shall have received the favorable written opinions of counsel to the Loan
Parties, acceptable to the Administrative Agent, substantially in the forms of Exhibit D.

 

(f)            Payment of Fees.  The Loan Parties shall have paid to the
Applicable Agents and the Co-Lead Arrangers the then unpaid balance of all
accrued and unpaid Fees due under and pursuant to this Agreement and the
letters referred to in Section 2.20, which payments due on the
Closing Date may be made with the proceeds of Loans.

 

(g)           Corporate and
Judicial Proceedings. 
All corporate and judicial proceedings and all instruments and
agreements in connection with the transactions among the Loan Parties, the
Administrative Agent and the Lenders contemplated by this Agreement shall be
satisfactory in form and substance to the Administrative Agent in its exclusive
discretion, and the Administrative Agent shall have received all information
and copies of all documents and papers, including records of corporate and
judicial proceedings, which the Administrative Agent may have requested in connection
therewith, such documents and papers where appropriate to be certified by
proper corporate, governmental or judicial authorities.

 

(h)           Information.  The Administrative Agent and the Lenders
shall have received all information required by the Patriot Act or any other “know-your-customer”
or anti-money laundering rules and regulations and such other information
(financial or otherwise) as may be reasonably requested by the Administrative
Agent and shall have discussed such information with the Loan Parties’
management and shall be satisfied with the nature and substance of such
discussions.

 

(i)            Availability.  The sum of (i) Excess Availability plus
(ii) aggregate amounts on deposit in the Investment Accounts, after giving
effect to the Loans and disbursements to be made on the Closing Date, shall be
at least US$150,000,000.

 

(j)            Budget.  The Administrative Agent and
the Lenders shall have received a forecast on a consolidated
basis of the Loan Parties’ income statement, balance sheet and cash flows for
each month of fiscal years 2009 and 2010, including information consolidated
solely as to the U.S. Loan Parties and solely as to the Canadian Loan Parties
and the material assumptions 

 

97

 

on which such
forecasts were based, and setting forth the anticipated disbursements and uses
of the Commitments, in form and substance satisfactory to the Administrative
Agent and the Co-Lead Arrangers (as updated from time to time pursuant to Section 5.1(f),
the “Budget”).

 

(k)           Cash Flow Forecast.  The Administrative
Agent and the Lenders shall have received a forecast of sources
and uses of cash by the U.S. Loan Parties and the Canadian Loan Parties on a
weekly basis covering the 13 calendar weeks succeeding the Filing Date, in form
and substance satisfactory to the Administrative Agent and the Co-Lead
Arrangers (as updated from time to time pursuant to Section 5.1(e),
the “Cash Flow Forecast”).

 

(l)            Compliance with Laws.  The Loan Parties shall have granted the
Administrative Agent access to and the right to inspect all reports, audits and
other internal information of the Loan Parties relating to environmental and
employee health and safety matters and any third party verification of certain
matters relating to compliance with applicable laws and regulations requested
by the Administrative Agent and the Administrative Agent shall be reasonably
satisfied that the Loan Parties are in compliance in all material respects with
all applicable Environmental Laws and be satisfied with the reasonably
estimated costs of maintaining compliance.

 

(m)          Lien Searches.  The
Administrative Agent shall have received lien searches conducted in the
jurisdictions in which the Loan Parties are organized or conduct business,
satisfactory to the Administrative Agent (dated as of a date reasonably
satisfactory to the Administrative Agent), reflecting the absence of Liens and
encumbrances on the assets of the Loan Parties other than Permitted Liens.

 

(n)           Securitization
Documents.  The Administrative Agent
shall have received the most recent reports prepared by the Loan Parties in
respect of the Receivables Securitization Programs satisfactory in form and
substance to the Administrative Agent in its exclusive discretion.

 

(o)           Field
Examinations.  The Administrative
Agent shall have received field examinations of the Loan Parties’ accounts
receivable, inventory and equipment and appraisals of all or such portions of
the Loan Parties’ assets the Administrative Agent may deem appropriate, which
field examinations and appraisals shall be satisfactory in form and substance
to the Administrative Agent.

 

(p)           Evidence of
Insurance.  The Administrative Agent
shall have received evidence of insurance policies for the Loan Parties and
their Subsidiaries satisfactory in form and substance to the Administrative
Agent.

 

(q)           Closing Documents.  The Administrative Agent shall have received
all documents required by this Agreement satisfactory in form and substance to
the Administrative Agent and the Co-Lead Arrangers.

 

(r)            Other Conditions.  Such other conditions as are satisfactory to
the Administrative Agent.

 

98

 

Section 4.2             Conditions Precedent to Each Loan and Each Letter of Credit.  The obligation of the Lenders to make each
Loan and of each Fronting Bank to issue, amend, renew or extend any Letter of
Credit, is subject to the following conditions precedent:

 

(a)           Notice.  The Applicable Agent (and to the
Administrative Agent if it is not the Applicable Agent) shall have received a
notice with respect to each Borrowing or the issuance of each Letter of Credit,
as the case may be, as required by ARTICLE 2.

 

(b)           Representations and
Warranties.  All
representations and warranties contained in this Agreement and the other Loan
Documents shall be true and correct in all material respects on and as of the
date of each Borrowing or the issuance of each Letter of Credit hereunder with
the same effect as if made on and as of such date except to the extent such
representations and warranties expressly relate to an earlier date.

 

(c)           No Default.  On the date of each Borrowing or the issuance
of each Letter of Credit hereunder, no Default or Event of Default shall have
occurred and be continuing.

 

(d)           Orders.  The Interim Order shall be in full force and
effect and shall not have been stayed, reversed, modified or amended in any
respect without the prior written consent of the Administrative Agent, provided
that at the time of the making of any Loan or the issuance of any Letter of
Credit the aggregate amount of either of which, when added to the sum of the
principal amount of all Loans then outstanding and the Letter of Credit Outstandings,
would exceed the amount authorized by the Interim Order (collectively, the “Additional Credit”), the Administrative
Agent and each of the Lenders shall have received a certified copy of the order
of the Bankruptcy Court and an order of the Canadian Court if deemed necessary
in the Administrative Agent’s exclusive discretion approving continued lending
(collectively, the “Final Order”)
in substantially the form set forth on Exhibit A-3 or such other
form as may be agreed by the Administrative Agent and the Loan Parties, which,
in any event, shall have been entered by the Bankruptcy Court (and Canadian
Court, as applicable) no later than forty-five (45) days after the entry of the
Interim Order, and at the time of the extension of any Additional Credit the
Final Order shall be in full force and effect, and shall not have been stayed,
reversed, modified or amended in any respect without the prior written consent
of the Administrative Agent; and, if either the Interim Order or the Final
Order is the subject of a pending appeal in any respect, neither the making of
the Loans nor the issuance of any Letter of Credit nor the performance by any
of the Loan Parties of any of their obligations under any of the Loan Documents
or under any other instrument or agreement referred to herein shall be the
subject of a presently effective stay pending appeal.

 

(e)           Payment of Fees and
Expenses.  The Loan
Parties shall have paid to the Applicable Agent the then unpaid balance of all
accrued and unpaid Fees and expenses then due and payable under and pursuant to
this Agreement and the letters referred to in Section 2.20.

 

(f)            Borrowing Base
Certificate.  The Administrative
Agent shall have received a Borrowing Base Certificate in accordance with Section 5.8
dated no more than seven (7) days prior to each Borrowing or the issuance
of each Letter of Credit, which Borrowing Base Certificate shall include
supporting schedules as required by the Administrative Agent.

 

99

 

(g)           Other Conditions.  Such other
conditions as are satisfactory to the Administrative Agent.

 

Each Borrowing and each issuance, amendment, renewal or extension of a
Letter of Credit shall be deemed to constitute a representation and warranty by
the Loan Parties on the date thereof that the conditions specified above have
been satisfied or waived.

 

ARTICLE 5.                             AFFIRMATIVE COVENANTS

 

From the Closing Date and for so long as any Commitment shall be in
effect or any Letter of Credit shall remain outstanding (in a face amount in
excess of the amount of cash then held in the Letter of Credit Account and the
Canadian Letter of Credit Account, or in excess of the face amount of
back-to-back letters of credit delivered, in each case pursuant to Section 2.4(c)),
or any amount shall remain outstanding or unpaid under this Agreement, each of
the Loan Parties and their respective Subsidiaries agree that, unless the
Required Lenders shall otherwise consent in writing:

 

Section 5.1             Financial Statements,
Reports, etc.  The Loan
Parties will, and will cause their Subsidiaries to, deliver to the
Administrative Agent and each of the Lenders:

 

(a)           within seventy-five
(75) days after the end of each fiscal year, (i) consolidated balance
sheets and related statements of income, stockholders’ equity, and cash flows,
showing the financial condition of the Loan Parties and their Subsidiaries
as of the close of such fiscal year and the results of their respective
operations during such year, the consolidated statements to be audited for the
Loan Parties and their respective Subsidiaries by their current independent
auditors or other independent public accountants of recognized national
standing and accompanied by an opinion of such accountants (which shall not be
qualified other than with respect to the Cases) and (ii) such statements
consolidated solely as to U.S. Loan Parties and consolidated solely as to
Canadian Loan Parties (on an unaudited basis and without footnotes), in each
case to be certified by a Financial Officer of Parent to the effect that such
consolidated financial statements fairly present in all material respects, the
financial condition and results of operations of the Loan Parties and their
Subsidiaries on a consolidated basis in accordance with GAAP;

 

(b)           within forty-five
(45) days after the end of the first three fiscal quarters of each fiscal year
of the Loan Parties, and within seventy-five (75) days after the end of the
fourth fiscal quarter of each fiscal year, (i) consolidated balance sheets
and related statements of income, stockholders’ equity and cash flows, showing
the financial condition of the Loan Parties and their Subsidiaries on a
consolidated basis, in each case as of the close of such fiscal quarter and the
results of their operations during such fiscal quarter and the then elapsed
portion of the fiscal year, and (ii) such statements consolidated solely
as to U.S. Loan Parties and consolidated solely as to Canadian Loan Parties, in
each case certified by a Financial Officer of the Parent as fairly presenting
in all material respects, the financial condition and results of operations of
the Loan Parties and their Subsidiaries on a consolidated basis in accordance
with GAAP, subject to normal year-end audit adjustments and the absence of
footnotes;

 

100

 

(c)           within twenty-five
(25) days after the end of each fiscal month (forty-five (45) days after the
end of the fiscal month ended January 31, 2009), (i) unaudited
monthly consolidated balance sheets and related statements of income and cash
flows of the Loan Parties and their Subsidiaries (including the amount of
Available Cash balances at the end of each such fiscal month), and (ii) such
statements consolidated solely as to U.S. Loan Parties and consolidated solely
as to Canadian Loan Parties, in each case in form and scope satisfactory to the
Administrative Agent and showing the results of the Loan Parties’ and their
Subsidiaries’ operations during such fiscal month and the then elapsed portion
of the fiscal year, which shall include a summary of the results of the Loan
Parties’ business operations for the preceding month as compared to the
corresponding period in the Budget, including a discussion of significant
variances, which summary shall describe the results of the Loan Parties and
their respective Subsidiaries on a consolidated basis;

 

(d)           (i) concurrently
with any delivery of financial statements under (a), (b) or (c) above
as applicable, a certificate of a Financial Officer of the Parent on behalf of
each of the Loan Parties in the form of Exhibit G (A) certifying
that no Event of Default or Default has occurred, or, if such an Event of
Default or Default has occurred, specifying the nature and extent thereof and
any corrective action taken or proposed to be taken with respect thereto and (B) setting
forth computations in reasonable detail satisfactory to the Administrative
Agent demonstrating compliance with the provisions of Section 6.3, Section 6.4,
Section 6.5, Section 6.6, Section 6.11, and
Section 6.12 and (ii) accompanying the audited consolidated
financial statements delivered under (a)(i) above a certificate of the
accounting firm that reported on such financial statements stating whether they
obtained knowledge during the course of their examination of such financial
statements of any Default (which certificate may be limited to the extent
required by accounting rules or guidelines);

 

(e)           on the last Business
Day of each week, (i) an updated Cash Flow Forecast covering the next
succeeding thirteen (13) calendar weeks, and (ii) and a report comparing
the preceding week’s actual sources and uses of cash by the Loan Parties to
each  Cash Flow Forecast for such
week, in each case in form and substance satisfactory to the Administrative
Agent in its exclusive discretion;

 

(f)            no later than
forty-five (45) days after the end of each of the first three fiscal quarters
of each fiscal year of the Loan Parties, and within seventy-five (75) days from
the end of the last fiscal quarter of each fiscal year of the Loan Parties, an
update of the Budget satisfactory in form and substance to the Administrative
Agent in its exclusive discretion, and Loan Parties shall be available to
discuss such updated Budget with the Administrative Agent upon the
Administrative Agent’s reasonable request;

 

(g)           promptly after the
same become publicly available, copies of all periodic and other reports, proxy
statements and other materials filed by any Loan Party with the Securities and
Exchange Commission, or any governmental authority succeeding to any of or all
the functions of said commission, or with any national or provincial securities
commission or exchange, as the case may be;

 

(h)           as soon as available
and in any event (A) within thirty (30) days after any Loan Party, or any
of their ERISA Affiliates knows or has reason to know that any Termination 

 

101

 

Event
described in clause (i) of the definition of Termination Event with
respect to any Single Employer Plan of any of the Loan Parties or such ERISA
Affiliate has occurred and (B) within ten (10) days after any of the
Loan Parties or any of their ERISA Affiliates knows or has reason to know that
any other Termination Event with respect to any such Plan has occurred, a
statement of a Financial Officer of such Loan Party describing such Termination
Event and the action, if any, which such Loan Party or such ERISA Affiliate
proposes to take with respect thereto;

 

(i)            promptly and in any
event within ten (10) days after receipt thereof by any of the Loan
Parties or any of their ERISA Affiliates from the PBGC copies of each notice
received by such Loan Party or any such ERISA Affiliate of the PBGC’s intention
to terminate any Single Employer Plan of such Loan Party or such ERISA Affiliate
or to have a trustee appointed to administer any such Plan;

 

(j)            if requested by the
Administrative Agent, promptly and in any event within thirty (30) days after
the filing thereof with the Internal Revenue Service, copies of each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) with
respect to each Single Employer Plan of any of the Loan Parties or any of their
ERISA Affiliates;

 

(k)           within ten (10) days
after notice is given or required to be given to the PBGC under Section 302(f)(4)(A) of
ERISA of the failure of any of the Loan Parties or any of their ERISA
Affiliates to make timely payments to a Plan, a copy of any such notice filed
and a statement of a Financial Officer of such Loan Party setting forth (A) sufficient
information necessary to determine the amount of the Lien under Section 302(f)(3),
(B) the reason for the failure to make the required payments and (C) the
action, if any, which the Loan Parties or any of their ERISA Affiliates
proposed to take with respect thereto;

 

(l)            promptly and in any
event within ten (10) days after receipt thereof by any of the Loan
Parties or any ERISA Affiliate from a Multiemployer Plan sponsor, a copy of
each notice received by such Loan Party or any ERISA Affiliate concerning (A) the
imposition of Withdrawal Liability by a Multiemployer Plan, (B) the
determination that a Multiemployer Plan is, or is expected to be, in
reorganization within the meaning of Title IV of ERISA, (C) the
termination of a Multiemployer Plan within the meaning of Title IV of ERISA, or
(D) the amount of liability incurred, or which may be incurred, by the
Loan Parties or any ERISA Affiliate in connection with any event described in
clause (A), (B) or (C) above;

 

(m)          promptly and in any
event within ten (10) days after receipt thereof by any of the Canadian
Loan Parties (A) copies of each annual and other return, report, or
valuation with respect to each registered pension plan as filed with any
applicable Governmental Authority, (B) copies of any direction, order, notice,
ruling or opinion received from any applicable Governmental Authority with
respect to any registered pension plan, and (C) notice of any increases
having a cost to one or more of the Canadian Loan Parties in excess of
US$5,000,000 per annum in the aggregate, in the benefits of any existing
pension plan or employee benefit plan or the establishment of any new pension
plan or employee benefit plan or the commencement of contributions to any such
plan to which any Canadian Loan Party was not previously contributing;

 

102

 

(n)           within twenty-five
(25) days after the end of each fiscal month, a schedule detailing the balance
of all accrued but unpaid Priority Payables;

 

(o)           promptly, from time
to time, such other information (including, without limitation, projections)
regarding the operations, business affairs and financial condition of any Loan
Party or any of its Subsidiaries, or compliance with the terms of any material
loan or financing agreement, as the Administrative Agent, at the request of any
Lender, may reasonably request;

 

(p)           promptly after the
same is available, copies of all pleadings, motions, applications, judicial
information, financial information and other documents filed in the Cases by or
on behalf of any of the Loan Parties with the Bankruptcy Court or the Canadian
Court, or distributed by or on behalf of any of the Loan Parties to any monitor
or official committee appointed in any of the Cases, providing copies of same
to counsel for the Administrative Agent;

 

(q)           promptly and in any
event within thirty (30) days after any Canadian Loan Party becomes aware or
has reason to become aware of any event which may give rise to the full
termination of any Canadian Pension Plan or partial termination of any Canadian
Pension Plan which could reasonably be expected to have a Material Adverse
Effect, a statement of a Financial Officer of such Loan Party describing such
event and the action, if any, which such Loan Party proposes to take with
respect thereto; and

 

(r)            within ten (10) days
after the failure of any of the Canadian Loan Parties to make current service
contributions to any Canadian Pension Plan, a copy of any such notice filed and
a statement of a Financial Officer of such Loan Party setting forth (A) sufficient
information necessary to determine the amount of any corresponding Lien, (B) the
reason for the failure to make the required payments and (C) the action,
if any, which the Loan Parties propose to take with respect thereto.

 

Section 5.2             Existence.  The Loan
Parties will, and will cause their Subsidiaries to,  preserve and maintain in full force and
effect all governmental rights, privileges, qualifications, permits, licenses
and franchises necessary or desirable in the normal conduct of their businesses
except (i) (A) if in the reasonable business judgment of such Loan
Party it is in its best economic interest not to preserve and maintain such
rights, privileges, qualifications, permits, licenses and franchises, and (B) such
failure to preserve the same could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect, and (ii) as otherwise
permitted in connection with sales of assets permitted by Section 6.12.

 

Section 5.3             Insurance.  The Loan
Parties will, and will cause their Subsidiaries to:  (a) keep their insurable properties
insured at all times, against such risks, including fire and other risks
insured against by extended coverage, as is customary with companies of the
same or similar size in the same or similar businesses; and maintain in full
force and effect public liability insurance against claims for personal injury
or death or property damage occurring upon, in, about or in connection with the
use of any properties owned, occupied or controlled by any Loan Party in such
amounts and with such deductibles as are customary with companies of the same
or similar size in the same or similar businesses and in the same geographic
area, with financially sound and responsible insurance companies; and (b) maintain
such other insurance or self 

 

103

 

insurance as may be required by law, with
financially sound and responsible insurance companies.

 

Section 5.4             Obligations and Taxes. 
Except with the express written consent of the Administrative Agent in
each instance, each Loan Party will pay all its material obligations arising
after the Filing Date promptly and in accordance with their terms and pay and
discharge promptly all material taxes, assessments, governmental charges,
levies, fees, imposts and withholding obligations imposed upon it or upon its
income or profits or in respect of its property arising after the Filing Date,
before the same shall become in default, as well as all material lawful claims
for labor, materials and supplies or otherwise arising after the Filing Date
which, if unpaid, would become a Lien or charge upon such properties or any
part thereof; provided,
however,
that no Loan Party shall be required to pay and discharge or to cause to be
paid and discharged any such obligation, tax, assessment, charge, levy, fees,
imposts and withholding obligations or claim so long as the validity or amount
thereof shall be contested in good faith by appropriate proceedings (if the
Loan Parties shall have set aside on their books adequate reserves therefor).

 

Section 5.5             Notice of Event of Default, etc.  The Loan Parties will promptly give to the
Administrative Agent notice in writing of:

 

(i)                                     any
Default or Event of Default; and

 

(ii)                                  any
litigation, proceedings or material investigations which may exist at any time
between any Loan Party and any Governmental Authority.

 

Section 5.6             Access to Books and
Records; Collateral Reviews and Appraisals.

 

(a)           The Loan Parties
will, and will cause their Subsidiaries to, maintain or cause to be maintained
at all times true and complete books and records in accordance with GAAP of the
financial operations of the Loan Parties and their respective Subsidiaries; and
provide the Administrative Agent and its representatives access to all such
books and records during regular business hours, in order that the
Administrative Agent may examine and make abstracts from such books, accounts,
records and other papers for the purpose of verifying the accuracy of the
various reports delivered by the Loan Parties to the Administrative Agent or
the Lenders pursuant to this Agreement or for otherwise ascertaining compliance
with this Agreement, all at such reasonable times and as often as reasonably
requested and in any event no less frequently than two (2) times during
any calendar year and, so long as no Default or Event of Default shall have
occurred and be continuing, no more than four (4) times during any
calendar year.  The Loan Parties will
permit (and will cause their Subsidiaries to permit) any representatives
designated by the Administrative Agent to discuss their affairs, finances and
condition with their officers and independent accountants, all at such
reasonable times and as often as reasonably requested.

 

(b)           The Loan Parties
will, and will cause their Subsidiaries to, permit any representatives
designated by the Administrative Agent (including any consultants, accountants,
lawyers and appraisers retained by the Administrative Agent) to conduct
evaluations and 

 

104

 

appraisals of
the Loan Parties’ computation of the Borrowing Bases and the assets included in
the Borrowing Bases and such other assets and properties of the Loan Parties or
their Subsidiaries as the Administrative Agent or Required Lenders may require,
all at such reasonable times and as often as reasonably requested and in any
event no less frequently than two (2) times during any calendar year and,
so long as no Default or Event of Default shall have occurred and be continuing,
no more than four (4) times during any calendar year.  The Loan Parties shall pay the reasonable
fees (including reasonable and customary internally allocated fees of employees
of the Administrative Agent as to which invoices have been furnished) and expenses
of any such representatives retained by the Administrative Agent as to which
invoices have been furnished to conduct any such evaluation or appraisal,
including the reasonable fees and expenses associated with collateral
monitoring services performed by the ABL Portfolio Management Group of the
Administrative Agent.  To the extent
required by the Administrative Agent in its Permitted Discretion as a result of
any such evaluation, appraisal or monitoring, the Loan Parties also agree to
modify or adjust the computation of the Borrowing Bases (which may include
maintaining additional reserves, modifying the advance rates or modifying the
eligibility criteria for the components of the Borrowing Bases).

 

(c)           In the event that
historical accounting practices, systems or reserves relating to the components
of the Borrowing Bases are modified in a manner that is adverse to the Lenders
in any material respect, the Loan Parties will agree to maintain such
additional reserves (for purposes of computing the Borrowing Bases) in respect
to the components of the Borrowing Bases and make such other adjustments to its
parameters for including the components of the Borrowing Bases as the
Administrative Agent shall reasonably require based upon such modifications.

 

(d)           The Loan Parties
will, and will cause their Subsidiaries to, grant the Administrative Agent
access to and the right to inspect all reports, audits and other internal
information of the Loan Parties relating to environmental matters upon
reasonable notice, and obtain any third party verification of matters relating
to compliance with Environmental Laws reasonably requested by the
Administrative Agent at any time and from time to time.

 

Section 5.7             Maintenance of
Concentration Account; Cash Dominion.

 

(a)           Within sixty (60)
days of the Closing Date (or such later date as the Administrative Agent may
approve in its exclusive discretion), the U.S. Loan Parties will, and will
cause their Domestic Subsidiaries to, maintain with the Administrative Agent an
account or accounts to be used by the U.S. Loan Parties as their principal
domestic concentration or sweep account(s) into which shall be deposited
the available balances from the collection accounts of the U.S. Loan Parties
(other than Calpine or Smurfit-Stone Puerto Rico, Inc.) at the end of each
Business Day (as contemplated by Article 7 of the Security and Pledge
Agreement), net of disbursements paid in the ordinary course of business during
such Business Day and all of the U.S. Loan Parties’ and their Domestic Subsidiaries’
accounts shall be subject to a cash management system satisfactory to the
Administrative Agent in its exclusive discretion, including from and after such
sixtieth (60th)
day, (i) weekly sweeps of Available Cash in excess of US$50,000,000, such
cash to be applied to outstanding U.S. Revolving Loans (without a permanent
reduction of the U.S. Revolving Commitment), and (ii) full cash dominion,
including daily cash sweeps (other than cash of Calpine and other than with
respect to up to $2,000,000 

 

105

 

held in
deposit accounts of Smurfit-Stone Puerto Rico, Inc.) to the Concentration
Account if Excess Availability is less than US$150,000,000 for three
consecutive days, such cash to be applied to outstanding U.S. Revolving Loans
(without a permanent reduction of the U.S. Revolving Commitment).  The obligation of the U.S. Loan Parties to
comply with clause (ii) of the preceding sentence shall continue until
Excess Availability has exceeded US$150,000,000 for sixty (60) consecutive
days.  Upon the occurrence of an Event of
Default, all of the collections and account balances of the U.S. Loan Parties
and their Domestic Subsidiaries (other than Calpine) shall be swept on a daily
basis into the Concentration Account.

 

(b)           Within sixty (60)
days of the Closing Date (or such later date as the Administrative Agent may
approve in its exclusive discretion), the Canadian Loan Parties will, and will
cause their Canadian Subsidiaries to, maintain with JPMorgan Chase Bank, N.A.,
Toronto Branch, or a bank acceptable to the Canadian Administrative Agent, an
account or accounts to be used by the Canadian Loan Parties as their principal
domestic concentration or sweep account(s) into which shall be deposited
the available balances from the collection accounts of the Canadian Loan
Parties at the end of each Business Day (as contemplated by the Canadian
Security Agreement), net of disbursements paid in the ordinary course of
business during such Business Day and all of the Canadian Loan Parties’ and
their Canadian Subsidiaries’ accounts shall be subject to a cash management
system satisfactory to the Canadian Administrative Agent in its exclusive
discretion, including from and after such sixtieth (60th) day, full cash dominion,
including daily cash sweeps to the Canadian Concentration Account if Excess
Availability is less than US$150,000,000 for three consecutive days, such cash
to be applied to outstanding Canadian Revolving Loans (without a permanent
reduction of the Canadian Revolving Commitment).  The obligation of the Canadian Loan Parties
to remain in full cash dominion shall continue until Excess Availability has
exceeded US$150,000,000 for sixty (60) consecutive days.  Upon the occurrence of an Event of Default,
all of the collections and account balances of the Canadian Loan Parties and
their Canadian Subsidiaries shall be swept on a daily basis into the Canadian
Concentration Account.

 

Section 5.8             Borrowing Base Certificate. 
The Loan Parties will furnish to the Administrative Agent, no later than
(i) the last Business Day of each week with respect to the immediately
preceding week, a completed Borrowing Base Certificate showing the Borrowing
Bases, each as of the close of business on the last day of such period, (ii) fifteen
(15) days following the last day of the immediately preceding fiscal month, a
completed Borrowing Base Certificate showing the Borrowing Bases, each as of
the close of business on the last day of such period, (iii) if requested
by the Administrative Agent at any other time when the Excess Availability is
less than 20% of the Total Revolving Commitment, as soon as reasonably
available but in no event later than three (3) Business Days after such
request and (iv) at such other times as the Loan Parties may elect, a
completed Borrowing Base Certificate showing the Borrowing Bases, each as of
the date so requested, in each case with the information supporting the
Borrowing Base calculations required by Exhibit C-1 and Exhibit C-2
hereto, including the information set forth on the schedule of reporting
requirements attached thereto (in each case, as modified from time to time by
the Administrative Agent in its Permitted Discretion), all delivered
electronically in a file reasonably acceptable to the Administrative Agent; provided
that until the Receivables Securitization Termination Date, the Loan Parties
will deliver daily and monthly (by the 15th day of each month with respect to the
immediately preceding fiscal month) Borrowing Base Certificates.

 

106

 

Section 5.9             Compliance with Laws. 
Comply with requirements of all applicable laws, rules, regulations and
orders of any Governmental Authority (including, without limitation, ERISA),
except to the extent that failure to comply herewith could not, in the
aggregate, have a Material Adverse Effect.

 

Section 5.10           Environmental Laws.

 

(a)           Exercise all
reasonable due diligence in order to comply in all material respects, and cause
(i) all tenants under any leases or occupancy agreements affecting any
portion of the Facilities and (ii) all other Persons on or occupying such
property under the control of any Loan Party, to comply in all material
respects with all Environmental Laws.

 

(b)           Promptly take any
and all necessary remedial action in connection with the presence, storage,
use, disposal, transportation or release of any Hazardous Waste or Hazardous
Substance on or under any Facility required to comply with all applicable
Environmental Laws and Governmental Authorizations unless the failure to so
comply could not reasonably be expected to have a Material Adverse Effect and (ii) in
the event the Loan Parties take any remedial action with respect to any
Hazardous Waste or Hazardous Substance on or under any Facility, conduct and
complete such remedial action in material compliance with all applicable
Environmental Laws and in accordance with the policies, orders and directives
of any applicable Governmental Authorities except when, and only to the extent
that, the Loan Parties’ liability for such presence, storage, use, disposal,
transportation or release of any such Hazardous Waste or Hazardous Substance is
being contested in good faith by the Loan Parties.

 

Section 5.11           Additional Collateral; Further Assurances.

 

(a)           The U.S. Borrower
and each other U.S. Loan Party shall cause each of its Domestic Subsidiaries
formed or acquired after the Closing Date in accordance with the terms of this
Agreement to become a U.S. Guarantor, and the Canadian Borrower and each other
Canadian Loan Party shall cause each Canadian Subsidiary formed or acquired
after the Closing Date to become a Canadian Guarantor, in each case, by
executing the Loan Party Joinder Agreement set forth as Exhibit F
hereto (the “Loan Party Joinder Agreement”)
on or before the twentieth (20th) day following the date of such acquisition or
formation. Upon execution and delivery thereof, each such Person (i) shall
automatically become a Guarantor hereunder and thereupon shall have all of the
rights, benefits, duties, and obligations in such capacity under the Loan
Documents and (ii) will grant Liens to the Applicable Agent, for the
benefit of the Applicable Agent and the Secured Parties, in any property of
such Loan Party which constitutes Collateral.

 

(b)           Without limiting the
foregoing, each Loan Party will, and will cause each Subsidiary to, execute and
deliver, or cause to be executed and delivered, to the Applicable Agent such
documents, agreements and instruments, and will take or cause to be taken such
further actions (including the filing and recording of financing statements and
other documents and such other actions or deliveries of the type required by Section 4.1,
as applicable), which may be required by law or which the Applicable Agent may,
from time to time, reasonably request to carry out the terms and conditions of
this Agreement and the other Loan Documents 

 

107

 

and to ensure
perfection and priority of the Liens created or intended to be created by the Collateral
Documents, all at the expense of the Loan Parties.

 

(c)           Each Loan Party
will, and will cause each Subsidiary to, execute and deliver, or cause to be
executed and delivered, to the Administrative Agent such documents, agreements
and instruments, and will take or cause to be taken such further actions, which
may be required by law or which the Administrative Agent may, from time to
time, reasonably request to carry out the terms and conditions of this
Agreement and the other Loan Documents, all at the expense of the Loan Parties.

 

Section 5.12           Material Contracts. 
Each Loan Party will, and will cause their Subsidiaries to, preserve and
maintain in full force and effect all contracts necessary or desirable in the
normal conduct of their businesses except where failure to preserve the same
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.

 

Section 5.13           Receivables Securitization Programs.  On or before April 1, 2009 or such later
date as the Administrative Agent may approve in writing in its exclusive
discretion, each Loan Party will, and will cause their Subsidiaries to, (a) terminate
the Receivables Securitization Programs, repay all Indebtedness outstanding
thereunder, and provide evidence of such termination and payment in full, as
applicable, satisfactory to the Administrative Agent in its exclusive
discretion, (b) with respect to each Receivables Securitization Entity,
either (i) transfer all Accounts or other assets owned by such Receivables
Securitization Entity to a U.S. Loan Party free and clear of all Liens (other
than Liens in favor of the Agents on behalf of the Secured Parties and Liens in
favor of the Pre-Petition Agent on behalf of the Pre-Petition Secured Lenders
and other Permitted Liens that do not have priority over the Lien in favor of
the Applicable Agent for the benefit of the Secured Parties), or (ii) merge
such Receivables Securitization Entity with and into a U.S. Loan Party, with
such U.S. Loan Party being the surviving entity of such merger, in each case,
on terms satisfactory to the Administrative Agent in its exclusive discretion,
and (c) cause Smurfit-MBI, an Ontario limited partnership, to acquire all
of the interests of Computershare Trust Company of Canada, in its capacity as
trustee of King Street Funding Trust, in all outstanding Accounts and other
related assets that were purchased by Computershare Trust Company of Canada, in
its capacity as trustee of King Street Funding Trust, from Smurfit-MBI, and
such Accounts and other related assets shall be acquired by Smurfit-MBI free
and clear of all Liens (other than Liens in favor of the Agents on behalf of
the Secured Parties and Liens in favor of the Pre-Petition Agent on behalf of
the Pre-Petition Secured Lenders and other Permitted Liens that do not have
priority over the Lien in favor of the Applicable Agent for the benefit of the
Secured Parties), on terms satisfactory to the Administrative Agent in its
exclusive discretion.

 

Section 5.14           Restructuring Advisors. 
Retain PriceWaterhouse Coopers and Lazard Ltd. or such other third party
financial restructuring advisors as are reasonably satisfactory to the
Administrative Agent in its Permitted Discretion.

 

Section 5.15           Public Rating.  
Obtain a rating from S&P and Moody’s on the Loans no later than
ninety (90) days after the Closing Date.

 

108

 

Section 5.16           Use
of Proceeds.

 

(a)           The proceeds of the
Loans and the Letters of Credit (including disbursements from the U.S.
Investment Account, Canadian Investment Account, U.S. Term Loan Collateral
Account or the Canadian Term Loan Collateral Account) will be used only in
accordance with the purposes set forth in Section 3.10, and such
use or uses shall be substantially consistent with the Budget, as updated from
time to time.

 

(b)           No part of the
proceeds of any Loan and no Letter of Credit will be used, whether directly or
indirectly, for any purpose that constitutes a violation of any of the
regulations of the Board, including Regulations T, U and X.

 

ARTICLE 6.                             NEGATIVE COVENANTS

 

From the Closing Date and for so long as any Commitment shall be in
effect or any Letter of Credit shall remain outstanding (in a face amount in
excess of the amount of cash then held in the Letter of Credit Account, or in
excess of the face amount of back-to-back letters of credit delivered, in each
case pursuant to Section 2.4(c)) or any amount shall remain
outstanding or unpaid under this Agreement, unless the Required Lenders shall
otherwise consent in writing:

 

Section 6.1             Liens.  Each of the
Loan Parties will not (and will not apply to the Bankruptcy Court or the
Canadian Court for authority to), and will cause their Subsidiaries not to,
incur, create, assume or suffer to exist any Lien or encumbrance on any asset
of the Loan Parties now owned or hereafter acquired by any Loan Party other
than Permitted Liens.

 

Section 6.2             Merger, etc.  Each of
the Loan Parties will not (and will not apply to the Bankruptcy Court or the
Canadian Court for authority to), and will cause their Subsidiaries not to,
consolidate, amalgamate, wind-up or merge with or into another Person, except
that, if at the time thereof and immediately after giving effect thereto no
Default or Event of Default shall have occurred and be continuing (i) any
Foreign Subsidiary (other than a Loan Party) may merge with any other Foreign
Subsidiary (other than a Loan Party) and (ii) any Receivables
Securitization Entity may merge into a U.S. Loan Party in a transaction in
which the U.S. Loan Party is the surviving entity.

 

Section 6.3             Indebtedness.  Each of
the Loan Parties will not (and will not apply to the Bankruptcy Court or the
Canadian Court for authority to), and will cause their Subsidiaries not to,
contract, create, incur, assume or suffer to exist any Indebtedness, except for
(i) the Secured Obligations; (ii) Indebtedness incurred prior to the
Filing Date (including existing Capital Lease Obligations) of the Loan Parties,
including the Indebtedness listed on Schedule 6.3; (iii) Indebtedness
incurred subsequent to the Filing Date secured by purchase money Liens and
Capital Lease Obligations in an aggregate amount not in excess of US$10,000,000
to the extent permitted by Section 6.4; (iv) Indebtedness
allowed under Section 6.7; (v) other unsecured Indebtedness
incurred subsequent to the Filing Date in an aggregate amount not to exceed
US$5,000,000; (vi) Indebtedness of Foreign Subsidiaries (other than
Canadian Loan Parties) in an aggregate amount not to exceed US$20,000,000
outstanding at any time, provided that such Indebtedness is non-recourse
to all of the Loan Parties; (vii) Indebtedness permitted by Section 6.11;
and (vii) Indebtedness permitted by Section 6.16; and (viii) Indebtedness
incurred to pay annual premiums for property and casualty insurance policies
maintained by the Parent or any Subsidiary not exceeding in an aggregate amount
at any time outstanding US$10,000,000.

 

109

 

Section 6.4             Capital Expenditures. 
Each of the Loan Parties will not (and will not apply to the Bankruptcy
Court or the Canadian Court for authority to), and will cause each of their
respective Subsidiaries not to, make Capital Expenditures during the periods
set forth below, in an aggregate amount (calculated on a consolidated basis) in
excess of the amount specified opposite such period:

 

	
  Period

  	
   

  	
  Maximum Capital Expenditures

  	
   

  
	
  February 1,
  2009 to March 31, 2009

  	
   

  	
  US$45,000,000

  	
   

  
	
  February 1,
  2009 to June 30, 2009

  	
   

  	
  US$90,000,000

  	
   

  
	
  February 1,
  2009 to September 30, 2009

  	
   

  	
  US$155,000,000

  	
   

  
	
  February 1,
  2009 to December 31, 2009

  	
   

  	
  US$205,000,000

  	
   

  
	
  12-month
  period ended March 31, 2010

  	
   

  	
  US$220,000,000

  	
   

  
	
  12-month
  period ended June 30, 2010

  	
   

  	
  US$220,000,000

  	
   

  

 

Section 6.5             EBITDA.

 

(a)           As of the end of
each fiscal month of the Loan Parties, commencing with the fiscal month ending February 28,
2009, the Loan Parties will not permit Consolidated EBITDA for any two (2) consecutive
calendar months to be negative (with each month measured separately and without
giving effect to any Downtime Credit).

 

(b)           As of the end of
each fiscal period of the Loan Parties, commencing with the fiscal month ending
February 28, 2009, the Loan Parties will not permit Consolidated EBITDA
for (i) each fiscal period beginning on February 1, 2009 and ending
on a date set forth below on or before December 31, 2009, to be less than
the respective amounts specified opposite such fiscal period, and (ii) for
each twelve-month period ending on a date set forth below after December 31,
2009, to be less than the respective amounts specified opposite such period:

 

	
  Period Ending

  	
   

  	
  Cumulative Consolidated EBITDA

  	
   

  
	
  February 28,
  2009

  	
   

  	
  US$17,900,000

  	
   

  
	
  March 31,
  2009

  	
   

  	
  US$40,600,000

  	
   

  
	
  April 30,
  2009

  	
   

  	
  US$59,000,000

  	
   

  
	
  May 31,
  2009

  	
   

  	
  US$82,300,000

  	
   

  
	
  June 30,
  2009

  	
   

  	
  US$112,900,000

  	
   

  
	
  July 31,
  2009

  	
   

  	
  US$144,300,000

  	
   

  
	
  August 31,
  2009

  	
   

  	
  US$188,200,000

  	
   

  
	
  September 30,
  2009

  	
   

  	
  US$221,200,000

  	
   

  
	
  October 31,
  2009

  	
   

  	
  US$261,000,000

  	
   

  
	
  November 30,
  2009

  	
   

  	
  US$288,000,000

  	
   

  
	
  December 31,
  2009

  	
   

  	
  US$314,400,000

  	
   

  
	
  January 31,
  2010

  	
   

  	
  US$344,100,000

  	
   

  
	
  February 28,
  2010

  	
   

  	
  US$349,400,000

  	
   

  
	
  March 31,
  2010

  	
   

  	
  US$355,400,000

  	
   

  
	
  April 30,
  2010

  	
   

  	
  US$357,300,000

  	
   

  
	
  May 31,
  2010

  	
   

  	
  US$361,100,000

  	
   

  
	
  June 30,
  2010

  	
   

  	
  US$366,100,000

  	
   

  

 

110

 

Section 6.6             Minimum Liquidity.  The Loan Parties will not permit the sum of
Excess Availability plus Available Cash held by the Loan Parties to be
less than US$50,000,000 for any period of three (3) consecutive days, provided
that such amount shall not be less than US$30,000,000 on any day.

 

Section 6.7             Guarantees and Other Liabilities.  Each of the Loan Parties will not (and will
not apply to the Bankruptcy Court or the Canadian Court for authority to), and
will cause their Subsidiaries not to, purchase or repurchase (or agree,
contingently or otherwise, so to do) the Indebtedness of, or assume, guarantee
(directly or indirectly or by an instrument having the effect of assuring
another’s payment or performance of any obligation or capability of so doing,
or otherwise), endorse or otherwise become liable, directly or indirectly, for
the obligations, stock or dividends of any Person, except (i) for any
guaranty of Indebtedness or other obligations (or otherwise becoming liable for
any of the obligations) of any of the Loan Parties in the ordinary course of
business and consistent with the past business practices with trade vendors if
such Indebtedness or the obligations are permitted by this Agreement, (ii) by
endorsement of negotiable instruments for deposit or collection in the ordinary
course of business, and (iii) any guaranty of Indebtedness of a Foreign
Subsidiary that is not a Loan Party by another Foreign Subsidiary that is not a
Loan Party.

 

Section 6.8             Chapter 11/CCAA Claims. 
Each of the Loan Parties will not (and will not apply to the Bankruptcy
Court or the Canadian Court for authority to), and will cause their
Subsidiaries not to, incur, create, assume, suffer to exist or permit (i) any
other Superpriority Claim which is pari  passu
with or senior to the claims of the Administrative Agent and the Lenders
against the Loan Parties hereunder, except for the Carve-Out or (ii) any
court ordered superpriority charge which is pari  passu with or
senior to the CCAA DIP Lenders’ Charge against the Canadian Loan Parties,
except for the CCAA Charges.

 

Section 6.9             Dividends; Capital Stock. 
Each of the Loan Parties will not (and will not apply to the Bankruptcy
Court or the Canadian Court for authority to), and will cause their
Subsidiaries not to, declare or pay, directly or indirectly, any dividends or
make any other distribution or payment, whether in cash, property, securities
or a combination thereof, with respect to (whether by reduction of capital or
otherwise) any shares of capital stock (or any options, warrants, rights or
other equity securities or agreements relating to any capital stock), or set
apart any sum for the aforesaid purposes on anything other than an arm’s-length
basis, except for dividends or distributions paid in cash by a Subsidiary to a
Loan Party or any other Person that owns capital stock or other equity
interests in such Subsidiary, ratably according to their respective holdings of
the type of capital stock or other equity interests in respect of which such
dividend or distribution is being made.

 

Section 6.10           Transactions with Affiliates.  Each of the Loan Parties will not (and will
not apply to the Bankruptcy Court or the Canadian Court for authority to), and
will cause their Subsidiaries not to, sell or transfer any property or assets
to, or otherwise engage in or permit to exist any other material transactions
with, any of its Affiliates (other than transactions (i) among Loan
Parties or (ii) among Subsidiaries that are not Loan Parties) other than
in the ordinary course of the Loan Parties’ businesses in good faith and at
commercially reasonable prices and 

 

111

 

on commercially reasonable terms and
conditions not less favorable to the Loan Parties than could be obtained on an
arm’s-length basis from a non-Affiliate.

 

Section 6.11           Investments, Loans and Advances.  Each of the Loan Parties will not (and will
not apply to the Bankruptcy Court or the Canadian Court for authority to), and
will cause their Subsidiaries not to, purchase, hold or acquire any capital
stock, evidences of Indebtedness or other securities of, make or permit to
exist any loans or advances to, or make or permit to exist any investment in,
any other Person (all of the foregoing, “Investments”),
except for (i) Investments by U.S. Loan Parties in the Canadian Borrower
or in the U.S. Loan Parties other than Calpine; (ii) Investments by
Canadian Loan Parties in U.S. Loan Parties other than Calpine; (iii) Permitted
Investments; (iv) Indebtedness owed by any Foreign Subsidiaries (other
than the Canadian Loan Parties) in an aggregate amount not to exceed
US$5,000,000 outstanding at any time; (v) Indebtedness owing, or to be
owed by the Canadian Loan Parties (other than the Canadian Borrower) to the
U.S. Loan Parties other than Calpine in an aggregate amount not to exceed
US$10,000,000 outstanding at any time; (vi) Indebtedness owed by the
Canadian Guarantors to the Canadian Borrower in an aggregate amount not to
exceed at any time the lesser of (a) Total Canadian Outstandings and (b) the
Canadian Borrowing Base; (vii) Indebtedness owed by the Canadian Borrower
to the U.S. Loan Parties other than Calpine; (viii) Investments listed on Schedule
6.11; (ix) additional investments in Foreign Subsidiaries (other than
Loan Parties) and in joint ventures listed on Schedule 6.11 in an
aggregate amount not to exceed US$5,000,000, plus up to an additional
US$20,000,000 to the extent not distributed to Foreign Subsidiaries in the
thirty (30) days prior to the Filing Date; (x) additional investments in
Calpine in an aggregate amount not to exceed US$10,000,000; (xi) Investments
consisting of securities or notes received in settlement of accounts receivable
incurred in the ordinary course of business from a customer that such Loan
Party has reasonably determined is unable to make cash payments in accordance
with the terms of such account receivable; (xii) Investments by Foreign
Subsidiaries (other than Canadian Subsidiaries) in other Foreign Subsidiaries
(other than Canadian Subsidiaries); and (xiii) other Investments in an
aggregate amount not to exceed US$1,000,000. 
Each of the Loan Parties will not (and will not apply to the Bankruptcy
Court or the Canadian Court for authority to), and will cause their
Subsidiaries not to, invest amounts on deposit in the U.S. Term Loan Collateral
Account or the U.S. Investment Account in any investment product other than
Permitted Investments described in clauses (i) through (vi) of the
definition thereof.

 

Section 6.12           Disposition of Assets. 
Except as may be authorized by orders of the Bankruptcy Court or the
Canadian Court, as applicable, and on terms and conditions acceptable to the
Administrative Agent, each of the Loan Parties will not, and will cause their
Subsidiaries not to, sell or otherwise dispose of any assets (including,
without limitation, the capital stock of any Subsidiary of the Loan Parties)
except for (i) sales of Inventory in the ordinary course of business, (ii) sales
of surplus assets of the Loan Parties no longer used in the Loan Parties’
business operations, (iii) sales of assets listed on Schedule 6.12,
(iv) sales and other dispositions from one Loan Party to another Loan
Party, provided, that any such sales or dispositions shall be in the
ordinary course of such Loan Parties’ business, made in good faith, at
commercially reasonable prices and on commercially reasonable terms and
conditions, unless such transactions are between (A) U.S. Loan Parties and
the Canadian Borrower or (B) Canadian Guarantors, (v) sales and other
dispositions from one Foreign Subsidiary (other than Canadian Subsidiaries) to 

 

112

 

another Foreign Subsidiary (other than
Canadian Subsidiaries), and (vi) sales of assets having a fair market
value not in excess of US$25,000,000 in the aggregate.

 

Section 6.13           Nature of Business. 
Each of the Loan Parties will not (and will not apply to the Bankruptcy
Court or the Canadian Court for authority to), and will cause their
Subsidiaries not to, modify or alter in any material manner the nature and type
of its business as conducted at or prior to the Filing Date or the manner in
which such business is conducted (except as required by the Bankruptcy Code or
CCAA).

 

Section 6.14           Restrictive Agreements among Loan Parties.  Each of the Loan Parties will not (and will
not apply to the Bankruptcy Court or the Canadian Court for authority to), and
will cause their Subsidiaries not to, except for this Agreement or to the
extent existing on the Filing Date and disclosed on Schedule 6.14, permit,
place or agree to permit or place any restrictions on the payment of dividends
or other distributions among the Loan Parties or their Subsidiaries or
Affiliates or the making of advances or any other cash payments among the Loan
Parties or their Subsidiaries or Affiliates.

 

Section 6.15           Right of Subrogation among Loan Parties.  Each of the Loan Parties will not (and will
not apply to the Bankruptcy Court or the Canadian Court for authority to), and
will cause their Subsidiaries not to, assert any right of subrogation against
any other Loan Party until all Borrowings and all Letters of Credit are paid in
full and the Commitments are terminated.

 

Section 6.16           Derivative Agreements. 
Each of the Loan Parties will not (and will not apply to the Bankruptcy
Court or the Canadian Court for authority to), and will cause their
Subsidiaries not to, enter into any Swap Agreement, except (a) Swap
Agreements entered into to hedge or mitigate risks to which any Loan Party or
any Subsidiary has actual exposure (other than those in respect of capital
stock of any Person), and (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with
respect to any interest-bearing liability or investment of any Loan Party or
any Subsidiary, provided that in each case such Swap Agreements may only
be entered into in the ordinary course of the Loan Parties’ business,
consistent with past practices.

 

Section 6.17           Reorganization Plan. 
The Loan Parties will not (and will not apply to the Bankruptcy Court or
the Canadian Court for authority to), file any Reorganization Plan that does
not provide for the repayment in full in cash on the effective date thereof of
all outstanding Secured Obligations.

 

ARTICLE 7.                             EVENTS OF DEFAULT

 

Section 7.1             Events of Default.  In
the case of the happening of any of the following events and the continuance
thereof beyond the applicable period of grace (if any) set forth below (each,
an “Event of Default”):

 

(a)           any representation
or warranty made by any Loan Party in this Agreement or in any Loan Document or
in connection with this Agreement or the credit extensions hereunder or any
statement or representation made in any report, financial statement,
certificate 

 

113

 

or other
document furnished by any Loan Party to the Lenders under or in connection with
this Agreement, shall prove to have been false or misleading in any material
respect when made or delivered; or

 

(b)           default shall be
made in the payment of any principal of the Loans or any reimbursement
obligation or cash collateralization in respect of Letters of Credit, when and
as the same shall become due and payable, whether at the due date thereof or at
a date fixed for prepayment thereof or by acceleration thereof or otherwise; or

 

(c)           default shall be
made in the payment of any fees or interest on the Loans or other amounts
payable by the Loan Parties hereunder (other than any amounts referred to in
clause (b) of this Section), when and as the same shall become due and
payable, and such failure shall continue unremedied for more than one (1) Business
Day; or

 

(d)           default shall be
made by any Loan Party, or any of their respective Subsidiaries, in the due
observance or performance of any covenants, conditions or agreements contained
in ARTICLE 6 hereof; or

 

(e)           default shall be
made by any Loan Party, or any of their respective Subsidiaries, in the due
observance or performance of any covenant, condition or agreement (other than
the covenants, conditions or agreements contained in ARTICLE 6 hereof)
to be observed or performed pursuant to the terms of this Agreement or any of
the other Loan Documents and such default shall continue unremedied for more
than ten (10) days following the earlier of (i) notice of such breach
by the Administrative Agent or any Lender or (ii) any Loan Party having
knowledge of such breach; or

 

(f)            any of the Cases
shall be dismissed or converted to a case under Chapter 7 of the Bankruptcy
Code, or any Loan Party shall file a motion or other pleading seeking the
dismissal of any of the Cases under Section 1112 of the Bankruptcy Code or
otherwise; a trustee under Chapter 7 or Chapter 11 of the Bankruptcy Code, a
responsible officer or an examiner with enlarged powers relating to the
operation of the business (powers beyond those set forth in Section 1106(a)(3) and
(4) of the Bankruptcy Code) under Section 1106(b) of the
Bankruptcy Code shall be appointed in any of the Cases and the order appointing
such trustee, responsible officer or examiner shall not be reversed or vacated
within thirty (30) days after the entry thereof; or a trustee in bankruptcy,
receiver, interim receiver, receiver and manager or official with similar
powers shall be appointed with respect to any Canadian Loan Party or its
assets; or an application shall be filed by any Loan Party for the approval of
any other Superpriority Claim (other than the Carve-Out) in any of the Cases
which is pari  passu
with or senior to the claims of the Administrative Agent and the Lenders
against any Loan Party hereunder, or there shall arise or be granted any such pari
passu or senior Superpriority Claim without the consent of the
Administrative Agent in its exclusive discretion (provided that the
Administrative Agent’s discretion with respect to the foregoing claims shall be
limited to claims for less than $1,000,000); or the Bankruptcy Court shall
enter an order terminating the use of cash collateral for the purposes
described in Section 3.10; or a motion shall be filed by any Loan
Party in any of the Canadian Cases for the approval of any other superpriority
charge other than the CCAA Charges against any of the Canadian Loan Parties, or
there shall arise any such pari  passu or senior charge without
the consent of the Administrative Agent in its exclusive discretion 

 

114

 

(provided that
the Administrative Agent’s discretion with respect to the foregoing claims
shall be limited to claims for less than $1,000,000); or

 

(g)           the Bankruptcy Court
or the Canadian Court shall enter an order or orders granting relief from the
automatic stay applicable under Section 362 of the Bankruptcy Code or the
stay in the Initial Order, as applicable, to the holder or holders of any
security interest to permit foreclosure or enforcement of any kind (or the
granting of a deed in lieu of foreclosure or the like) on any assets of any of
the Loan Parties which have a value in excess of US$5,000,000  in the aggregate; or

 

(h)           a Change of Control
shall occur; or

 

(i)            the Loan Parties
shall fail to deliver any certified Borrowing Base Certificate when due and
such default shall continue unremedied for more than (i) one (1) Business
Day with respect to a daily Borrowing Base Certificate, (ii) three (3) Business
Days with respect to a weekly Borrowing Base Certificate and (iii) five (5) Business
Days with respect to a monthly Borrowing Base Certificate; or

 

(j)            any Loan Document shall
not be for any reason, or any of the Loan Parties shall so assert in a pleading
filed in any court, in full force and effect and enforceable in all material
respects in accordance with its terms; or

 

(k)           an order of the
Bankruptcy Court or the Canadian Court shall be entered reversing, amending,
supplementing, staying for a period in excess of ten (10) days, vacating
or otherwise modifying any of the Orders without the prior written consent of
the Administrative Agent; or

 

(l)            any judgment or
order as to a post-petition liability or debt for the payment of money in
excess of US$1,000,000  shall be
rendered against any of the Loan Parties or any of their Subsidiaries and such
judgment shall remain undischarged and there shall be any period of thirty (30)
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; or

 

(m)          any non-monetary
judgment or order with respect to a post-petition event shall be rendered
against any Loan Party, or any of their respective Subsidiaries, which does or
would reasonably be expected to cause a Material Adverse Effect; or

 

(n)           the Loan Parties or
any of their Subsidiaries shall make any Pre-Petition Payment (whether by way
of adequate protection or otherwise) of principal or interest or otherwise on
account of any pre-petition Indebtedness or payables (including, without
limitation, reclamation claims) other than Pre-Petition Payments authorized by
the Bankruptcy Court or Canadian Court in respect of (i) accrued payroll
and related employee benefit expenses as of the Filing Date, (ii) reclamation
claims in such amounts as determined by the Loan Parties and agreed to by the
Administrative Agent; (iii) materialmen’s, shippers, warehousemen’s and
other similar liens and certain other pre-petition claims permitted by the
Administrative Agent and authorized by the Bankruptcy Court or Canadian Court
in an aggregate amount not to exceed $46,000,000, (iv) the payment of
current interest and letter of credit fees (and the payment of all interest and
fees that are accrued and unpaid as of the Filing Date) at the applicable
non-default 

 

115

 

rates provided
for pursuant to the Pre-Petition Credit Agreement, all as described in the Loan
Parties’ “Motion for an Order (I) Authorizing Debtors to Obtain
Post-Petition Financing; (II) Granting Liens, Including Priming Liens, and
Superpriority Claims Pursuant to 11 U.S.C. § 364; (III) Authorizing Use of
Proceeds to Effectuate Payout of Securitization Facilities (IV) Authorizing
Use of Cash Collateral Pursuant to 11 U.S.C. § 363; (V) Granting Adequate
Protection Pursuant to 11 U.S.C. §§ 363 and 364; and (VI) Scheduling a
Final Hearing,” and as authorized by the Orders, (v) payments in
respect of prepetition claims of taxing authorities in an aggregate amount not
to exceed $23,100,000 as described in the Loan Parties’ “Motion for an Order
Authorizing the Payment of Prepetition Sales, Use, Property, and Other Taxes
and Governmental Charges;” (vi) the payment of pre-petition claims to
certain critical vendors in an aggregate amount not to exceed $60,000,00 as
described in the Loan Parties’ “Motion for an Order Authorizing the Payment
of Prepetition Claims of Certain Critical Vendors;” (vii) the payment
of certain pre-petition obligations owed to customers and brokers in an
aggregate amount not to exceed $23,000,000 as described in the Loan Parties’ “Motion
for an Order Authorizing the Debtors to Honor Certain Prepetition Obligations
to Customers and Brokers and to Otherwise Continue Prepetition Customer and
Broker Programs and Practices in the Ordinary Course of Business;” (viii) payment
of pre-petition obligations in respect of insurance programs in an aggregate
amount not to exceed $7,000,000 as described in the Loan Parties’ “Motion
for an Order Authorizing the Debtors to (I) Make Installment Payments
Under Prepetition Insurance Premium Financing Agreements, (II) Continue
Prepetition Insurance Programs in the Ordinary Course of Business, and (III) Pay
All Prepetition Obligations in Respect Thereof;” or (ix) such other
orders which are satisfactory in form and substance to the Administrative
Agent; or

 

(o)           any Termination
Event described in clauses (iii) or (iv) of the definition of such
term shall have occurred and shall continue unremedied for more than ten (10) days
and the sum (determined as of the date of occurrence of such Termination Event)
of the Insufficiency of the Plan in respect of which such Termination Event shall
have occurred and be continuing and the Insufficiency of any and all other
Plans with respect to which such a Termination Event (described in such clauses
(iii) or (iv)) shall have occurred and then exist is equal to or greater
than US$1,000,000; or

 

(p)           (i) any Loan
Party or any ERISA Affiliate thereof shall have been notified by the sponsor of
a Multiemployer Plan that it has incurred Withdrawal Liability to such
Multiemployer Plan, (ii) such Loan Party or such ERISA Affiliate does not
have reasonable grounds to contest such Withdrawal Liability and is not in fact
contesting such Withdrawal Liability in a timely and appropriate manner, and (iii) the
amount of such Withdrawal Liability specified in such notice, when aggregated
with all other amounts required to be paid to Multiemployer Plans in connection
with Withdrawal Liabilities (determined as of the date of such notification),
exceeds US$1,000,000  allocable to
post-petition obligations or requires payments exceeding US$100,000  per annum in excess of the annual payments
made with respect to such Multiemployer Plans by such Loan Party or such ERISA
Affiliate for the plan year immediately preceding the plan year in which such
notification is received; or

 

(q)           any Loan Party or
any ERISA Affiliate thereof shall have been notified by the sponsor of a
Multiemployer Plan that such Multiemployer Plan is in reorganization or is
being terminated, within the meaning of Title IV of ERISA, if as a result of
such reorganization or termination the aggregate annual contributions of such
Loan Party and its ERISA Affiliates to 

 

116

 

all
Multiemployer Plans that are then in reorganization or being terminated have
been or will be increased over the amounts contributed to such Multiemployer
Plans for the plan years that include the Closing Date by an amount exceeding
US$1,000,000; or

 

(r)            any Loan Party or
any ERISA Affiliate thereof shall have committed a failure described in Section 302(f)(1) of
ERISA (other than the failure to make any contribution accrued and unpaid as of
the Filing Date) and the amount determined under Section 302(f)(3) of
ERISA is equal to or greater than US$1,000,000; or

 

(s)           any Loan Party shall
have failed to make current service contributions to a Canadian Pension Plan
(other than the failure to make any contribution accrued and unpaid as of the
Filing Date); or

 

(t)            it shall be
determined (whether by the Bankruptcy Court, the Canadian Court or by any other
judicial or administrative forum) that any Loan Party is liable for the payment
of claims arising out of any failure to comply (or to have complied) with
applicable Environmental Laws the payment of which will have a Material Adverse
Effect and the enforcement thereof shall not have been stayed;

 

then, and in every such event and at any time thereafter during the
continuance of such event, the Administrative Agent may, and at the request of
the Required Lenders, shall, take one or more of the following actions without
further order of or application to the Bankruptcy Court or the Canadian Court, provided
that with respect to item (iv) below and the enforcement of liens or other
remedies with respect to collateral referred to in item (v) below, the
Administrative Agent shall provide the Borrowers (with a copy to counsel for
the Official Creditors’ Committee appointed in any of the U.S. Cases, to the
United States Trustee for the Bankruptcy Court’s District, and to any monitor
in the Canadian Cases) with five (5) business days’ prior written notice
(the “Default Notice”), and,
solely to the extent required in the Canadian Cases, with leave of the Canadian
Court:  (i) terminate forthwith the
Commitments; (ii) declare the Loans then outstanding to be forthwith due
and payable, whereupon the principal of the Loans together with accrued
interest thereon and any unpaid accrued Fees and all other liabilities of the
Loan Parties accrued hereunder and under any other Loan Document, shall become
forthwith due and payable, without presentment, demand, protest or any other
notice of any kind, all of which are hereby expressly waived by the Loan
Parties, anything contained herein or in any other Loan Document to the
contrary notwithstanding; (iii) require the Loan Parties upon demand to
forthwith deposit in the Letter of Credit Account or Canadian Letter of Credit
Account, as the case may be, cash in an amount, taken together with any amounts
then held in the Letter of Credit Account or Canadian Letter of Credit Account,
as the case may be, is equal to the greater of (A) an amount, as
determined by the Fronting Banks and the Applicable Agents, equal to the face
amount of all outstanding Letters of Credit issued by the Fronting Banks plus
the sum of all projected contractual obligations to the Applicable Agents, the
Fronting Banks and the Lenders of the Borrowers thereunder through the
expiration date(s) of such Letters of Credit, and (B) 105% of the
aggregate Letter of Credit Outstandings issued by the Fronting Banks  (and to the extent the Loan Parties shall fail to furnish
such funds as demanded by the Administrative Agent, the Administrative Agent
shall be authorized to debit the accounts of the Loan Parties maintained with
the Administrative Agent in such amount five (5) Business Days after the
giving of the Default Notice (the “Default Notice Period”));
(iv) set-off amounts in any Collateral Account or 

 

117

 

any other accounts maintained with the Administrative Agent or any
other Lender or their Affiliates and apply such amounts to the obligations of
the Loan Parties hereunder and in the other Loan Documents; or (v) exercise
any and all remedies (including, without limitation, with respect to the Liens
in favor of the Agents and the Secured Parties) under the Loan Documents and
under applicable law available to the Administrative Agent and the Lenders.

 

ARTICLE 8.                             THE AGENTS

 

Section 8.1             Administration.  The
general administration of the Loan Documents shall be performed by the
Administrative Agent.  Each Lender hereby
irrevocably authorizes each Agent, at its discretion, to take or refrain from
taking such actions as agent on its behalf and to exercise or refrain from
exercising such powers under the Loan Documents as are delegated by the terms
hereof or thereof, as appropriate, together with all powers reasonably
incidental thereto (including the release of Collateral in connection with any
transaction that is expressly permitted by the Loan Documents).  The Agents shall not have any duties or
responsibilities except as set forth in this Agreement and the remaining Loan
Documents.

 

Section 8.2             Advances and Payments. 
On the date of each Loan, the Applicable Agent shall be authorized (but
not obligated) to advance, for the account of each of the Lenders, the amount
of the Loan to be made by it in accordance with its Commitment hereunder.  Should the Applicable Agent do so, each of
the Lenders agrees forthwith to reimburse such Agent in immediately available
funds for the amount so advanced on its behalf by such Agent, together with
interest at the Federal Funds Effective Rate if not so reimbursed on the date
due from and including such date but not including the date of reimbursement.

 

Section 8.3             Sharing of Setoffs.

 

(a)           Each U.S. Lender
agrees that if it shall, through the exercise of a right of banker’s lien,
setoff or counterclaim against the U.S. Loan Parties and the Canadian Borrower,
including, but not limited to, a secured claim or other security or interest
arising from, or in lieu of, such secured claim and received by such U.S.
Lender under any applicable bankruptcy, insolvency or other similar law, or
otherwise, obtain payment in respect of its U.S. Loans as a result of which the
unpaid portion of its U.S. Loans is proportionately less than the unpaid
portion of the U.S. Loans of any other U.S. Lender (a) it shall promptly
purchase at par (and shall be deemed to have thereupon purchased) from such
other U.S. Lender a participation in the U.S. Loans of such other U.S. Lender,
so that the aggregate unpaid principal amount of each U.S. Lender’s U.S. Loans
and its participation in U.S. Loans of the other U.S. Lenders shall be in the
same proportion to the aggregate unpaid principal amount of all U.S. Loans then
outstanding as the principal amount of its U.S. Loans prior to the obtaining of
such payment was to the principal amount of all U.S. Loans outstanding prior to
the obtaining of such payment and (b) such other adjustments shall be made
from time to time as shall be equitable to ensure that the U.S. Lenders share
such payment pro-rata, provided that if any such non-pro-rata payment is
thereafter recovered or otherwise set aside such purchase of participations
shall be rescinded (without interest). 
Each of the U.S. Loan Parties expressly consents to the foregoing
arrangements and agrees that any U.S. Lender holding (or deemed to be holding)
a participation in a U.S. Loan may exercise any and all rights of banker’s
lien, setoff (in each case, subject to the same notice requirements as pertain
to clause (iv) of the remedial provisions of Section 7.1) 

 

118

 

or
counterclaim with respect to any and all moneys owing by the U.S. Loan Parties
to such U.S. Lender as fully as if such U.S. Lender held a promissory note and
was the original obligee thereon, in the amount of such participation.

 

(b)           Each Canadian Lender
agrees that if it shall, through the exercise of a right of banker’s lien,
setoff or counterclaim against the Canadian Loan Parties and the U.S. Borrower,
including, but not limited to, a secured claim or other security or interest
arising from, or in lieu of, such secured claim and received by such Canadian
Lender under any applicable bankruptcy, insolvency or other similar law, or
otherwise, obtain payment in respect of its Canadian Loans as a result of which
the unpaid portion of its Canadian Loans is proportionately less than the
unpaid portion of the Canadian Loans of any other Canadian Lender (a) it
shall promptly purchase at par (and shall be deemed to have thereupon purchased)
from such other Canadian Lender a participation in the Canadian Loans of such
other Canadian Lender, so that the aggregate unpaid principal amount of each
Canadian Lender’s Canadian Loans and its participation in Canadian Loans of the
other Canadian Lenders shall be in the same proportion to the aggregate unpaid
principal amount of all Canadian Loans then outstanding as the principal amount
of its Canadian Loans prior to the obtaining of such payment was to the
principal amount of all Canadian Loans outstanding prior to the obtaining of
such payment and (b) such other adjustments shall be made from time to
time as shall be equitable to ensure that the Canadian Lenders share such
payment pro-rata, provided that if any such non-pro-rata payment is thereafter
recovered or otherwise set aside such purchase of participations shall be
rescinded (without interest).  Each of
the Canadian Loan Parties expressly consents to the foregoing arrangements and
agrees that any Canadian Lender holding (or deemed to be holding) a
participation in a Canadian Loan may exercise any and all rights of banker’s
lien, setoff (in each case, subject to the same notice requirements as pertain
to clause (iv) of the remedial provisions of Section 7.1) or
counterclaim with respect to any and all moneys owing by the Canadian Loan
Parties to such Canadian Lender as fully as if such Canadian Lender held a
promissory note and was the original obligee thereon, in the amount of such
participation.

 

Section 8.4             Agreement of Required Lenders.  Upon any occasion requiring or permitting an
approval, consent, waiver, election or other action on the part of the Required
Lenders, action shall be taken by the Agents for and on behalf or for the
benefit of all Lenders upon the direction of the Required Lenders, and any such
action shall be binding on all Lenders. 
No amendment, modification, consent, or waiver shall be effective except
in accordance with the provisions of Section 9.10.

 

Section 8.5             Liability of Agents.

 

(a)           Each Agent, when
acting on behalf of the Lenders, may execute any of its respective duties under
this Agreement by or through any of its respective officers, agents, and
employees, and neither the Agents nor their directors, officers, agents,
employees or Affiliates shall be liable to the Lenders or any of them for any
action taken or omitted to be taken in good faith, or be responsible to the
Lenders or to any of them for the consequences of any oversight or error of
judgment, or for any loss, unless the same shall happen through its gross
negligence or willful misconduct.  The
Agents and their respective directors, officers, agents, employees and
Affiliates shall in no event be liable to the Lenders or to any of them for any
action taken or omitted to be taken by them pursuant to instructions received
by them from the Required 

 

119

 

Lenders or in
reliance upon the advice of counsel selected by it.  Without limiting the foregoing, neither the
Agents, nor any of their respective directors, officers, employees, agents or
Affiliates shall be responsible to any Lender for the due execution, validity,
genuineness, effectiveness, sufficiency, or enforceability of, or for any
statement, warranty, or representation in, this Agreement, any Loan Document or
any related agreement, document or order, or shall be required to ascertain or
to make any inquiry concerning the performance or observance by the Loan
Parties of any of the terms, conditions, covenants, or agreements of this
Agreement or any of the Loan Documents.

 

(b)           Neither the Agents
nor any of their respective directors, officers, employees, agents or
Affiliates shall have any responsibility to the Loan Parties on account of the
failure or delay in performance or breach by any Lender or by the Loan Parties
of any of their obligations under this Agreement or any of the Loan Documents
or in connection herewith or therewith.

 

(c)           The Agents, in their
capacity as Agents hereunder, shall be entitled to rely on any communication,
instrument, or document reasonably believed by such person to be genuine or
correct and to have been signed or sent by a person or persons believed by such
person to be the proper person or persons, and such person shall be entitled to
rely on advice of legal counsel, independent public accountants, and other
professional advisers and experts selected by such person.

 

Section 8.6             Reimbursement and Indemnification.  Each Lender agrees (i) to reimburse (x) the
Agents for such Lender’s Applicable Percentage of any expenses and fees
incurred for the benefit of the Lenders under this Agreement and any of the
Loan Documents, including, without limitation, counsel fees and compensation of
agents and employees paid for services rendered on behalf of the Lenders, and
any other expense incurred in connection with the operations or enforcement
thereof not reimbursed by the Loan Parties and (y) the Agents for such
Lender’s Applicable Percentage of any expenses of the Agents incurred for the
benefit of the Lenders that the Loan Parties have agreed to reimburse pursuant
to Section 9.5 and has failed to so reimburse and (ii) to
indemnify and hold harmless the Agents and any of their directors, officers,
employees, agents or Affiliates, on demand, in the amount of its proportionate
share, from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses, or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by, or asserted
against it or any of them in any way relating to or arising out of this
Agreement or any of the Loan Documents or any action taken or omitted by it or
any of them under this Agreement or any of the Loan Documents to the extent not
reimbursed by the Loan Parties (except such as shall result from their
respective gross negligence or willful misconduct).

 

Section 8.7             Rights of Agents.  It
is understood and agreed that the Agents shall have the same rights and powers
hereunder (including the right to give such instructions) as the other Lenders
and may exercise such rights and powers, as well as its rights and powers under
other agreements and instruments to which it is or may be party, and engage in
other transactions with any Loan Party, as though it were not an Agent
hereunder.

 

120

 

Section 8.8                                      Other Duties, etc. 
Anything herein to the contrary notwithstanding, none of the Joint
Bookrunners, lead arrangers, syndication agents, or documentation agents shall
have any powers, duties or responsibilities under this Agreement or any of the
other Loan Documents, except in its capacity, as applicable, as an Agent, a
Lender or Fronting Bank hereunder.

 

Section 8.9                                      Independent Lenders. 
Each Lender acknowledges that it has decided to enter into this
Agreement and to make the Loans hereunder based on its own analysis of the
transactions contemplated hereby and of the creditworthiness of the Loan
Parties and agrees that the Agents shall bear no responsibility therefor.

 

Section 8.10                                Notice of
Transfer.  The Administrative
Agent may deem and treat a Lender party to this Agreement as the owner of such
Lender’s portion of the Loans for all purposes, unless and until a written
notice of the assignment or transfer thereof executed by such Lender shall have
been received by the Administrative Agent.

 

Section 8.11                                Successor
Agents.  Each Agent may resign
at any time by giving written notice thereof to the Lenders and the Loan
Parties.  Upon any such resignation, the
Required Lenders shall have the right to appoint a successor Agent, which shall
be reasonably satisfactory to the Loan Parties. 
If no successor Agent shall have been so appointed by the Required
Lenders and shall have accepted such appointment, within thirty (30) days after
the retiring Agent’s giving of notice of resignation, the retiring Agent may,
on behalf of the Lenders, appoint a successor Agent, which shall be a
commercial bank organized under the laws of the United States of America or of
any State thereof and having a combined capital and surplus of a least
US$100,000,000, which shall be reasonably satisfactory to the Loan
Parties.  Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations under this Agreement.  After any retiring Agent’s resignation
hereunder as Agent, the provisions of this ARTICLE 8 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.

 

Section 8.12                                Quebec
Security.

 

(a)                                  For
greater certainty, and without limiting the powers of any Agent, each of the
Agents, the Lenders and the Fronting Banks, for themselves, and each Lender for
each of its Affiliates, hereby irrevocably constitutes JPMorgan Chase Bank,
N.A., Toronto Branch as the holder of an irrevocable power of attorney (fondé de pouvoir within the meaning of Article 2692 of
the Civil Code of Québec) in order to hold hypothecs
and security granted by any Loan Party on property pursuant to the laws of the
Province of Québec in order to secure obligations of any Loan Party under any
bond, debenture or similar title of indebtedness, issued by any Loan Party, and
hereby agrees that JPMorgan Chase Bank, N.A., Toronto Branch may act as the
bondholder and mandatary (i.e. agent) with respect to any bond, debenture or
similar title of indebtedness that may be issued by any Loan Party and pledged
in favour of JPMorgan Chase Bank, N.A., Toronto Branch, for the benefit of the
Secured Parties. The execution by JPMorgan Chase Bank, N.A., Toronto Branch,
acting as fondé de pouvoir, bondholder and
mandatary, prior to the execution of this Agreement of any deeds of hypothec or
other security documents is hereby ratified and confirmed.

 

121

 

(b)                                 Notwithstanding
the provisions of Section 32 of An Act respecting the
special powers of legal persons (Québec), JPMorgan Chase Bank, N.A.,
Toronto Branch may acquire and be the holder of any bond, debenture or similar
title of indebtedness issued by any Loan Party (i.e. the fondé de
pouvoir may acquire and hold the first bond, debenture or similar
title of indebtedness issued under any deed of hypothec by any Loan Party).

 

(c)                                  The
constitution of JPMorgan Chase Bank, N.A., Toronto Branch as fondé de pouvoir, and as bondholder and mandatary with
respect to any bond, debenture, or similar title of indebtedness that may be
issued and pledged from time to time to JPMorgan Chase Bank, N.A., Toronto
Branch for the benefit of the Secured Parties, shall be deemed to have been
ratified and confirmed by each Person accepting an assignment of, a
participation in or an arrangement in respect of, all or any portion of any
Secured Parties’ rights and obligations under this Agreement by the execution
of an assignment, including an Assignment and Acceptance, or other agreement
pursuant to which it becomes such assignee or participant, and by each
successor Agent by the execution of an Assignment and Acceptance  or other agreement, or by the compliance
with other formalities, as the case may be, pursuant to which it becomes a
successor Agent under this Agreement.

 

(d)                                 JPMorgan
Chase Bank, N.A., Toronto Branch acting as fondé de pouvoir,
bondholder or mandatary shall have the same rights, powers, immunities,
indemnities and exclusions from liability as are prescribed in favour of the
Agents in this Agreement, which shall apply mutatis mutandis to
JPMorgan Chase Bank, N.A., Toronto Branch, acting as fondé de
pouvoir, bondholder or mandatary.

 

ARTICLE 9.       MISCELLANEOUS

 

Section 9.1                                      Notices.

 

(a)                                  Except
in the case of notices and other communications expressly permitted to be given
by telephone (and subject to paragraph (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows:

 

(i)                                     if
to the Loan Parties, to Smurfit-Stone Container Corporation at Six CityPlace
Drive, 10th Floor, St. Louis, MO 63141, Attention of Chief
Financial Officer (Fax No. (314) 787-6162);

 

(ii)                                  if
to the Administrative Agent or the Collateral Agent, to JPMorgan Chase Bank,
Loan and Agency Services Group, 1111 Fannin Street, 10th Floor, Houston, Texas
77002, Attention of Christian Cho (Telecopy No. 713-427-6307) and Sylvia
Gutierrez (Telecopy No. 713-427-6307), with a copy to JPMorgan Chase Bank,
N.A., 277 Park Avenue, 8th Floor, New York, NY 10172, Attention of Ann
Kurinskas (Telecopy No. 212-622-4556);

 

(iii)                               if
to the Canadian Administrative Agent or the Canadian Collateral Agent, to
JPMorgan Chase Bank, N.A., Toronto Branch 200 Bay 

 

122

 

Street, Suite 1800,
Toronto, Ontario M5J 2J2, Attention of Amanda Vidulich (Telecopy No. 416-981-9128);

 

(iv)                              if
to JPMCB, as Fronting Bank with respect to any U.S. Revolving Facility Letter
of Credit, to it at JPMorgan Chase Bank, N.A., 300 South Riverside Plaza, L/C
Department, Mail code: IL1-0236, Chicago, IL 60606, Attention of Floro
Alcantara (Telephone: 312-954-1910) and Annette Bond (Telephone: 312-954-3240)
Fax: 312-954-0203, with a copy to JPMorgan Chase Bank, N.A., 277 Park Avenue,
8th Floor, New York, NY 10172, Attention of Ann Kurinskas (Telecopy No. 212-622-4556);
and

 

(v)                                 if
to JPMCB, as Fronting Bank with respect to any Canadian Revolving Facility
Letter of Credit, to it at JPMorgan Chase Bank, N.A., Toronto Branch L/C
Department, 200 Bay Street, Floor 18 Toronto, M5J 2J2, Canada, Attention of
Jennifer McLaughlin (Telephone: 416-981-2324; Fax: 416-981-2375), with a copy
to JPMorgan Chase Bank, N.A., 277 Park Avenue, 8th Floor, New York, NY 10172,
Attention of Ann Kurinskas (Telecopy No. 212-622-4556); and

 

(vi)                              if
to any Lender, to it at its address (or telecopy number) set forth in its
Administrative Questionnaire.

 

(b)                                 Notices
and other communications to the Lenders hereunder may be delivered or furnished
by electronic communications pursuant to procedures approved by the
Administrative Agent; provided that the foregoing shall not apply to notices
pursuant to ARTICLE
2 unless otherwise agreed by the Administrative Agent and the
applicable Lender.  The Administrative
Agent or the Loan Parties may, in their respective discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by them; provided that approval of such
procedures may be limited to particular notices or communications.

 

(c)                                  Any
party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto.  All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt.

 

Section 9.2                                      Survival of Agreement, Representations and Warranties, etc.  All warranties, representations and covenants
made by any Loan Party herein or in any certificate or other instrument
delivered by it or on its behalf in connection with this Agreement shall be
considered to have been relied upon by the Lenders and shall survive the making
of the Loans herein contemplated regardless of any investigation made by any
Lender or on its behalf and shall continue in full force and effect so long as
any amount due or to become due hereunder is outstanding and unpaid and so long
as the Commitments have not been terminated. 
All statements in any such certificate or other instrument shall
constitute representations and warranties by the Loan Parties hereunder with
respect to the Loan Parties.

 

123

 

Section 9.3                                      Successors and Assigns.

 

(a)                                  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted hereby
(including any Affiliate of a Fronting Bank that issues any Letter of Credit),
except that (i) the Borrowers may not assign or otherwise transfer any of
their rights or obligations hereunder without the prior written consent of each
Lender (and any attempted assignment or transfer by the Borrowers without such
consent shall be null and void) and (ii) no Lender may assign or otherwise
transfer its rights or obligations hereunder except in accordance with this
Section.  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
(including any Affiliate of a Fronting Bank that issues any Letter of Credit),
Participants (to the extent provided in paragraph (c) of this Section)
and, to the extent expressly contemplated hereby, the Related Parties of each
of the Administrative Agent, the Fronting Bank(s) and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)

 

(i)                                     Subject
to the conditions set forth in paragraph (b)(ii) below, any Lender may
assign to one or more assignees (other than a Loan Party or an Affiliate of a
Loan Party) all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing
to it) with the prior written consent (such consent not to be unreasonably
withheld) of:

 

(A)                              the
Administrative Agent, provided that no consent of the Administrative Agent
shall be required for an assignment of all or any portion of a Term Loan to a
Lender, an Affiliate of a Lender or an Approved Fund; and

 

(B)                                each
Fronting Bank, provided that no consent of any Fronting Bank shall be required
for an assignment of all or any portion of a Term Loan.

 

(ii)                                  Assignments
shall be subject to the following additional conditions:

 

(A)                              except
in the case of an assignment to a Lender or an Affiliate of a Lender or an
assignment of the entire remaining amount of the assigning Lender’s Commitment
or Loans of any Class, the amount of the Commitment or Loans of the assigning
Lender subject to each such assignment (determined as of the date the
Assignment and Acceptance with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $1,000,000 unless the
Administrative Agent otherwise consents;

 

124

 

(B)                                each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement,
provided that this clause shall not be construed to prohibit the assignment of
a proportionate part of all the assigning Lender’s rights and obligations in
respect of one Class of Commitments or Loans;

 

(C)                                the
parties to each assignment shall execute and deliver to the Administrative
Agent an Assignment and Acceptance, together with a processing and recordation
fee of $3,500;

 

(D)                               the
assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire in which the assignee designates one or
more credit contacts to whom all syndicate-level information (which may contain
material non-public information about the Loan Parties and their Related
Parties or their respective securities) will be made available and who may
receive such information in accordance with the assignee’s compliance
procedures and applicable laws, including Federal and state securities laws;

 

(E)                                 no
such assignment shall be made to a Loan Party or any Affiliate of a Loan Party;
and

 

(F)                                 with
the exception of assignments from the Converting Lenders necessary to effect
further allocations of the Commitments and the Loans, and except as directed by
the Administrative Agent pursuant to Section 9.3(e), no such
assignments shall be made prior to the earlier of (I) the date the
Bankruptcy Court enters the Final Order or (II) the date the
Administrative Agent declares in writing the syndication of the Commitments to
be complete.

 

For the purposes of this Section 9.3(b), the term “Approved
Fund” has the following meaning:

 

“Approved Fund” means any
Person (other than a natural person) that is engaged in making, purchasing,
holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate
of an entity that administers or manages a Lender.

 

(iii)                               Subject
to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section, from and after the effective date specified in each Assignment and
Acceptance the assignee thereunder shall be a party hereto and, to the extent
of the interest assigned by such Assignment and Acceptance, have the rights and
obligations of a 

 

125

 

Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering
all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to
the benefits of Section 2.15, Section 2.16, Section 2.19,
Section 9.5, Section 9.6).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 9.3
shall be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (c) of
this Section.

 

(iv)                              The
Administrative Agent, acting for this purpose as an agent of the Borrowers,
shall maintain at one of its offices a copy of each Assignment and Acceptance
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitment of, and principal amount of the Loans and
payments made by the Fronting Bank(s) pursuant to a Letter of Credit owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and the Borrowers, the Administrative Agent, the Fronting Bank(s) and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrowers, the Fronting Bank(s) and any Lender, at any
reasonable time and from time to time upon reasonable prior notice.

 

(v)                                 Upon
its receipt of a duly completed Assignment and Acceptance executed by an
assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and
any written consent to such assignment required by paragraph (b) of this
Section, the Administrative Agent shall accept such Assignment and Acceptance
and record the information contained therein in the Register; provided that if
either the assigning Lender or the assignee shall have failed to make any
payment required to be made by it under this Agreement, the Administrative
Agent shall have no obligation to accept such Assignment and Acceptance and
record the information therein in the Register unless and until such payment
shall have been made in full, together with all accrued interest thereon.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

 

126

 

(c)                                  Any
Lender may, without the consent of the Borrowers, the Administrative Agent, or
the Fronting Banks, sell participations to one or more banks or other entities
(a “Participant”) in all or
a portion of such Lender’s rights and obligations under this Agreement (including
all or a portion of its Commitment and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) the Borrowers, the Administrative
Agent, the Fronting Bank(s) and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement.  Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any provision
of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver described in the first proviso to Section 9.10(a) that
affects such Participant.  The Loan
Parties agree that each Participant shall be entitled to the benefits of Section 2.15,
Section 2.16 and Section 2.19 to the same extent as if
it were a Lender and had acquired its interest by assignment pursuant to
paragraph (b) of this Section.  To
the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 2.26 as though it were a Lender, provided such
Participant agrees to be subject to Section 8.3 as though it were a
Lender.

 

(d)                                 Any
Lender may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such
Lender, including without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to
any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of
its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

 

(e)                                  Each
Lender having a Commitment on the Closing Date (a “Closing Date Lender”), hereby agrees to
execute and deliver, at any time and from time to time on or prior to the date
the Bankruptcy Court enters the Final Order, such Assignments and Acceptances
as the Administrative Agent may direct in order to effect secondary allocations
of the Commitments to other Persons who shall become Lenders hereunder.  The Closing Date Lenders shall effect such
assignments with the payment of a corresponding amount of fees to market as the
Administrative Agent may direct, but which fees, as paid by a Closing Date
Lender, shall be no greater than the amount of fees to market received by such
Closing Date Lender in connection with such Closing Date Lender’s initial
Commitments under this Agreement.

 

Section 9.4                                      Confidentiality.  Each
Agent, the Fronting Banks and each of the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its and its Affiliates’ directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep
such Information confidential in accordance herewith), (b) to the extent
requested by any regulatory authority, (c) to the extent required by
Requirement of Laws or by any subpoena or similar legal process, (d) to
any other party to this Agreement, (e) in connection with the exercise of
any remedies hereunder or any suit, action or proceeding relating

 

127

 

to this Agreement or any other Loan Document
or the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or participant in, or any prospective
assignee of or participant in, any of its rights or obligations under this
Agreement or (ii) any actual or prospective counterparty (or its advisors)
to any swap or derivative transaction relating to the Loan Parties and their
obligations, (g) with the consent of the Borrowers or (h) to the
extent such Information (i) becomes publicly available other than as a
result of a breach of this Section or (ii) becomes available to any
Agent, any Fronting Bank or any Lender on a non-confidential basis from a
source other than the Borrowers. For the purposes of this Section, “Information” means all information
received from the Borrowers or any of their Subsidiaries relating to the
Borrowers or any of their Subsidiaries or any of their respective businesses,
other than any such information that is available to any Agent, any Fronting
Bank or any Lender on a non-confidential basis and not known by such Person to
be in contravention of any applicable confidentiality or similar provision
prior to disclosure by the Borrowers. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

 

EACH AGENT, EACH FRONTING BANK AND EACH OF
THE LENDERS ACKNOWLEDGES THAT INFORMATION FURNISHED TO IT MAY INCLUDE
MATERIAL NON-PUBLIC INFORMATION CONCERNING ANY OF THE LOAN PARTIES OR THEIR
SUBSIDIARIES AND THEIR RESPECTIVE RELATED PARTIES OR THEIR RESPECTIVE SECURITIES,
AND CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF
MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE SUCH MATERIAL
NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW,
INCLUDING FEDERAL AND STATE SECURITIES LAWS.

 

ALL INFORMATION, INCLUDING REQUESTS FOR
WAIVERS AND AMENDMENTS, FURNISHED BY THE LOAN PARTIES OR THE AGENTS PURSUANT
TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE SYNDICATE-LEVEL
INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE
LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES.  ACCORDINGLY, EACH LENDER REPRESENTS TO THE
LOAN PARTIES AND THE AGENTS THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE
QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN
MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES
AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

 

Section 9.5                                      Expenses.  Whether or
not the transactions hereby contemplated shall be consummated, the Loan Parties’
agree to pay all reasonable expenses incurred by each Agent and the Co-Lead
Arrangers (including, without limitation, the reasonable fees and disbursements
of Bryan Cave LLP, counsel for the Administrative Agent, any other local
counsel that such Agent shall retain (including Canadian and Delaware counsel)
and any internal or third-party 

 

128

 

appraisers, consultants and auditors advising
such Agent and the Co-Lead Arrangers and their counsel) in connection with the
preparation, execution, delivery and administration of this Agreement and the
other Loan Documents, the making of the Loans and the issuance of the Letters
of Credit, the perfection of the Liens contemplated hereby, the syndication of
the transactions contemplated hereby, the costs, fees and expenses of each
Agent and the Co-Lead Arrangers in connection with the initial and periodic
collateral reviews and appraisals, field audits, monitoring of assets
(including collateral monitoring fees of or incurred by the Administrative
Agent) and publicity expenses, and, following the occurrence of an Event of
Default, all expenses incurred by the Lenders and each Agent in the enforcement
or protection of the rights of any one or more of the Lenders or such Agent in
connection with this Agreement or the other Loan Documents, including but not
limited to the fees and disbursements of any counsel for the Lenders or such
Agent.  Such payments by the Loan Parties
shall be made upon delivery of a statement setting forth such costs and
expenses.  Whether or not the
transactions hereby contemplated shall be consummated, the Loan Parties agree
to reimburse the Administrative Agent and the Co-Lead Arrangers for the expenses
set forth in the Commitment Letter and the reimbursement provisions thereof are
hereby incorporated herein by reference. 
The obligations of the Loan Parties under this Section shall
survive the termination of this Agreement or the payment of the Loans.

 

Section 9.6                                      Indemnity.

 

(a)                                  Each
of the Loan Parties agree to indemnify and hold harmless each Agent, the
Co-Lead Arrangers and the Lenders and their directors, officers, employees,
trustees, advisors, agents and Affiliates (each an “Indemnified Party”) from
and against any and all expenses, losses, claims, damages and liabilities
incurred by such Indemnified Party arising out of claims made by any Person in
any way relating to the transactions contemplated hereby, but excluding
therefrom all expenses, losses, claims, damages, and liabilities to the extent
that they are determined by the final judgment of a court of competent
jurisdiction to have resulted from (i) the willful misconduct or gross
negligence of such Indemnified Party or (ii) an action commenced by such
Indemnified Party against a Loan Party and which action results in a final
judgment in favor of such Loan Party. 
The obligations of the Loan Parties under this Section shall
survive the termination of this Agreement and the payment of the Loans.

 

(b)                                 To
the extent that a Borrower fails to pay any amount required to be paid by it to
the Applicable Agent or a Fronting Bank under Section 9.5 or
paragraph (a) of this Section, each Lender severally agrees to pay to the
Applicable Agent or the Fronting Bank, as the case may be, such Lender’s
Applicable Percentage (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided
that the unreimbursed expense or indemnified loss, claim, damage, liability or
related expense, as the case may be, was incurred by or asserted against the
Applicable Agent or the Fronting Bank in its capacity as such.

 

(c)                                  To
the extent permitted by applicable law, no Loan Party, Agent or any of the
Lenders shall assert, and each Loan Party, Agent and Lender hereby waives, any
claim against any other Loan Party, Agent or any Lender, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement or any agreement or instrument 

 

129

 

contemplated
hereby, any Loan or Letter of Credit or the use of the proceeds thereof except
to the extent such damages would otherwise be subject to indemnity hereunder.

 

Section 9.7                                      Choice of Law.  THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL, UNLESS OTHERWISE SPECIFIED
THEREIN, IN ALL RESPECTS BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED
WHOLLY WITHIN SUCH STATE AND THE BANKRUPTCY CODE.

 

Section 9.8                                      No Waiver.  No failure
on the part of any Agent or any of the Lenders to exercise, and no delay in
exercising, any right, power or remedy hereunder or any of the other Loan
Documents shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy.  All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law.

 

Section 9.9                                      Extension of Maturity. 
Should any payment of principal of or interest or any other amount due
hereunder become due and payable on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day and, in
the case of principal, interest shall be payable thereon at the rate herein
specified during such extension.

 

Section 9.10                                Amendments, etc.

 

(a)                                  No
modification, amendment or waiver of any provision of this Agreement, the
Security and Pledge Agreement or any other Loan Document, and no consent to any
departure by the Loan Parties therefrom, shall in any event be effective unless
the same shall be in writing and signed by the Required Lenders, and then such
waiver or consent shall be effective only in the specific instance and for the
purpose for which given; provided, however, that no such
modification or amendment shall without the written consent of each Lender
affected thereby (x) increase the Commitment of such Lender (it being
understood that a waiver of an Event of Default shall not constitute an
increase in the Commitment of a Lender), or (y) reduce the principal
amount of any Loan (or any unreimbursed Letter of Credit) or the rate of
interest payable thereon, or extend any date for the payment of interest,
principal or fees hereunder or reduce any Fees payable hereunder or extend the
final maturity of the Loan Parties’ obligations hereunder (subject to Section 2.30
and Section 2.31); and, provided, further,
that no such modification or amendment shall without the written consent of (A) all
of the Lenders (i) amend or modify any provision of this Agreement which
provides for the unanimous consent or approval of the Lenders or the consent or
approval of each affected Lender, (ii) amend this Section 9.10
or the definition of Required Lenders or Super-majority Lenders, (iii) amend
or modify the Superpriority Claim status of the Lenders contemplated by Section 2.24,
(iv) increase the Total Revolving Commitment by an amount in excess of
US$100,000,000, (v) release all or substantially all of the Collateral
from the Liens created hereunder and under the other Loan Documents or (B) the Super-majority Lenders (i) release
any material portion (but less than all or substantially all) of the Collateral
from the Liens created hereunder and under the other Loan Documents (other than
with respect to asset sales permitted under Section 6.12), (ii) release
any Loan Party from its joint and several obligations under ARTICLE 10, (iii) alter
the eligibility 

 

130

 

standards or
amend any of the component definitions used in determining the Borrowing Bases
in a manner which would increase the amount of the Borrowing Bases, (iv) increase
the Total Revolving Commitment by an amount up to US$100,000,000, (v) increase
the advance rates in calculation of the Borrowing Bases, (vi) change Section 7.1(f) or
(vii) change Section 2.33. 
No such amendment or modification may adversely affect the rights and
obligations of the Agents or any Fronting Bank hereunder without its prior
written consent.  No notice to or demand
on any Loan Party shall entitle any Loan Party to any other or further notice
or demand in the same, similar or other circumstances.  Each assignee under Section 9.3
shall be bound by any amendment, modification, waiver, or consent authorized as
provided herein, and any consent by a Lender shall bind any Person subsequently
acquiring an interest on the Loans held by such Lender.  No amendment to this Agreement shall be
effective against any Loan Party unless in writing and signed by such Loan
Party.  The Administrative Agent shall
provide written notice to the monitor in the Canadian Cases promptly following
any request from the Canadian Loan Parties pursuant to this Agreement or any of
the other Loan Documents for the consent of the Lenders to release any material
portion of or all or substantially all of the Collateral from the Liens in
favor of the Agents on behalf of the Secured Parties or for the release of the
proceeds of such Collateral from such Liens.

 

(b)                                 Notwithstanding
anything to the contrary contained in Section 9.10(a), in the event
that any Loan Party requests that this Agreement be modified or amended in a
manner which would require the unanimous consent of all of the Lenders or the
consent of the Super-majority Lenders and such modification or amendment is
agreed to by the Consenting Lenders (as hereinafter defined), then with the
consent of the Loan Parties and the Consenting Lenders, the Loan Parties and
the Consenting Lenders shall be permitted to amend the Agreement without the
consent of the Lender or Lenders which did not agree to the modification or
amendment requested by such Loan Party (such Lender or Lenders, collectively
the “Minority
Lenders”) to provide for (w) the termination of the
Commitment of each of the Minority Lenders, (x) the addition to this
Agreement of one or more other financial institutions (each of which shall be
an Eligible Assignee), or an increase in the Revolving Commitment of one or
more of the Consenting Lenders, so that the Total Revolving Commitment after
giving effect to such amendment shall be in the same amount as the Total
Revolving Commitment immediately before giving effect to such amendment, (y) if
any Loans are outstanding at the time of such amendment, the making of such
additional Loans by such new financial institutions or Consenting Lender or
Lenders, as the case may be, as may be necessary to repay in full the
outstanding Loans of the Minority Lenders immediately before giving effect to
such amendment and (z) such other modifications to this Agreement as may
be appropriate.  As used herein, the term
“Consenting Lenders” shall
mean, at any time, Lenders having aggregate Total Canadian Outstandings, Total
U.S. Outstandings and unused Commitments representing more than 66-2/3% of the
aggregate Total Canadian Outstandings, Total U.S. Outstandings and unused Commitments
at such time.

 

Section 9.11                                Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

131

 

Section 9.12                                Headings.
Section headings used herein are for convenience only and are not to
affect the construction of or be taken into consideration in interpreting this
Agreement.

 

Section 9.13                                Execution in
Counterparts.  This Agreement
may be executed in any number of counterparts, each of which shall constitute
an original, but all of which taken together shall constitute one and the same
instrument.

 

Section 9.14                                Prior
Agreements; Inconsistencies. 
This Agreement represents the entire agreement of the parties with
regard to the subject matter hereof and the terms of any letters and other
documentation entered into between any Loan Party and any Lender or the
Administrative Agent prior to the execution of this Agreement which relate to
Loans to be made hereunder shall be replaced by the terms of this Agreement
(except as otherwise expressly provided herein with respect to the Commitment
Letter and the fee letter referred to therein, including without limitation the
provisions of Section 2.20). 
In the event of any conflicts between the express provisions of this
Agreement and the Orders, the provisions of the Orders shall control to the
extent of any such inconsistency.  In the
event of any conflicts between the express provisions of this Agreement and the
Security Agreement, the provisions of this Agreement shall control to the
extent of any such inconsistency.

 

Section 9.15                                Further
Assurances.  Whenever and so
often as reasonably requested by an Agent, the Loan Parties will promptly
execute and deliver or cause to be executed and delivered all such other and
further instruments, documents or assurances, and promptly do or cause to be
done all such other and further things as may be necessary and reasonably
required in order to further and more fully vest in the Agents all rights,
interests, powers, benefits, privileges and advantages conferred or intended to
be conferred by this Agreement and the other Loan Documents.

 

Section 9.16                                Waiver of
Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED THEREBY.

 

Section 9.17                                Subordination
of Intercompany Indebtedness. 
Each of the Loan Parties agree that any and all Intercompany
Indebtedness owed to any Loan Party shall be subordinate and subject in right
of payment to the prior payment, in full and in cash, of all Secured
Obligations.  Notwithstanding any right
of any Loan Party to ask, demand, sue for, take or receive any payment in
respect of any Intercompany Indebtedness owed to any Loan Party, any and all
rights, liens and security interests of any Loan Party, whether now or
hereafter arising and howsoever existing, in any assets of any other Subsidiary
of Parent (whether constituting part of the Collateral given to the Agents for
the benefit of the Secured Parties to secure payment of all or any part of the
Secured Obligations or otherwise) shall be and are subordinated to the rights
of the Agents and the Secured Parties in those assets.  No Loan Party shall have any right to
possession of any such asset or to foreclose upon any such asset, whether by
judicial action or otherwise, unless and until all of the Secured Obligations
(other than unasserted contingent indemnity obligations) shall have been fully
paid and satisfied and all financing arrangements among the Loan Parties and
the Lenders have been terminated.  So
long as any Event of Default shall have occurred and be continuing, then, any
payment or distribution of any kind or 

 

132

 

character, either in cash, securities or
other property, which shall be payable or deliverable upon or with respect to
any Intercompany Indebtedness owed by any Loan Party shall be paid or delivered
directly to the Administrative Agent for application on any of the Secured
Obligations, due or to become due, until such Secured Obligations (other than
contingent indemnity obligations) shall have first been fully paid and satisfied.  Each of the Loan Parties irrevocably
authorize and empower the Administrative Agent to demand, sue for, collect and
receive every such payment or distribution and give acquittance therefor and to
make and present for and on behalf of any Loan Party such proofs of claim and
take such other action, in the Administrative Agent’s own name or in the name
of the applicable Loan Party or otherwise, as the Administrative Agent may deem
necessary or advisable for the enforcement of this Section 9.17.  The Administrative Agent may vote such proofs
of claim in any such proceeding, receive and collect any and all dividends or
other payments or disbursements made thereon in whatever form the same may be
paid or issued and apply the same on account of any of the Secured
Obligations.  Should any payment,
distribution, security or instrument or proceeds thereof be received by any
Loan Party upon or with respect to the Intercompany Indebtedness at any time an
Event of Default shall have occurred and be continuing and prior to the
satisfaction of all of the Secured Obligations and the termination of all
financing arrangements among the Loan Parties and the Lenders, the applicable
Loan Party shall receive and hold the same in trust, as trustee, for the
benefit of the Lenders and shall so long as any Event of Default shall have
occurred and be continuing promptly deliver the same to the Administrative
Agent, for the benefit of the Lenders, in precisely the form received (except
for the endorsement or assignment of the applicable Loan Party where
necessary), for application to any of the Secured Obligations, due or not due,
and, until so delivered, the same shall be held in trust by the applicable Loan
Party as the property of the Lenders.  If
any Loan Party fails to make any such endorsement or assignment to the
Administrative Agent, the Administrative Agent or any of its officers or
employees are irrevocably authorized to make the same.  So long as any Event of Default shall have occurred
and be continuing, the Loan Parties agree that until the Secured Obligations
have been paid in full (in cash) and satisfied and all financing arrangements
among the Loan Parties and the Lenders have been terminated, the Loan Parties
will neither assign nor transfer to any Person (other than the Administrative
Agent) any claim the Loan Parties have or may have against any other Subsidiary
of the Parent.

 

Section 9.18                                Certain Post Closing Matters.

 

(a)                                  Notwithstanding
anything to the contrary contained in this Agreement, within the time periods
set forth below or such later date to which the Administrative Agent may, in
its exclusive discretion, agree in writing, the Loan Parties shall deliver to
the Administrative Agent:

 

(i)                                     within
ninety (90) days after the Closing Date, mortgages in favor of the Applicable
Agent and in form and substance reasonably satisfactory to the Administrative
Agent on such Eligible Real Property of the Loan Parties as may then constitute
all or any part of the U.S. PP&E Component or the Canadian PP&E Component,
together with such updated title commitments and related real estate due
diligence materials as the Administrative Agent may request in accordance with
the definition of Eligible Real Property;

 

133

 

(ii)                                  within
sixty (60) days after the Closing Date, account control agreements in favor of
the Applicable Agent and in form and substance reasonably satisfactory to the
Administrative Agent on deposit accounts and securities accounts of the Loan
Parties maintained with any institution other than such Applicable Agent;

 

(iii)                               within
ten (10) days after the Closing Date, the form of Final Order, in form and
substance satisfactory to the Administrative Agent in is exclusive discretion,
which shall be attached hereto as Exhibit A-3, delivery of which
was temporarily waived by the Lenders for the purposes of effectuating the
Closing Date;

 

(iv)                              within
three (3) Business Days after the Bankruptcy Court enters the U.S. Interim
Order, orders shall have been made in the Recognition Cases recognizing the
U.S. Cases of Smurfit-MBI and SLP Finance General Partnership and granting
charges over the assets of each of Smurfit-MBI and SLP Finance General
Partnership and otherwise in form satisfactory to the Administrative Agent,
which orders shall be in full force and effect and shall not have been stayed,
reversed, modified, or amended in any respect without the prior written consent
of the Administrative Agent;

 

(v)                                 within
fifteen (15) days after the Closing Date, certificates representing ownership
interests in Pledged Collateral (as defined in the Security and Pledge
Agreement) that are required to be delivered to the Administrative Agent
pursuant to the Security and Pledge Agreement, together with an update to Exhibit E
to the Security and Pledge Agreement providing the information contemplated by
but not included on such Exhibit E as of the Closing Date;

 

(vi)                              within
thirty (30) days after the Closing Date, the Organizational Documents and
certificate of good standing or similar certificate for Smurfit-Stone Puerto
Rico, Inc.;

 

(vii)                           within
ninety (90) days after the Closing Date, (A) a mortgage granted by MBI
Limited/Limitée, in its capacity as general partner of Smurfit-MBI, in favour
of the Canadian Collateral Agent in respect of the property municipally known
as 8150 Parkhill Drive, Milton, Ontario, and (B) a deed of hypothec and
issue of bonds by the Canadian Borrower in favour of the Canadian Collateral
Agent, as fondé de pouvoir, in respect of the property municipally known as 15400
Sherbrooke Street East, Montreal, Quebec, and such other documents related
thereto, in each case in form and substance reasonably satisfactory to the
Canadian Administrative Agent, together with such title insurance policies and
related real 

 

134

 

estate due diligence materials
and other materials as the Canadian Administrative Agent may request;

 

(viii)                        within
fifteen (15) days after the Closing Date, (A) Pledged Security
Certificates (as defined in the Canadian Security Agreement) required to be
delivered to the Canadian Collateral Agent pursuant to the Canadian Security
Agreement and other materials as may be required to provide the Canadian
Collateral Agent with control over such Pledged Security Certificates, and (B) each
Instrument evidencing obligations owing to any Canadian Loan Party in a
principal amount in excess of $1,000,000 included in or related to the
Collateral (as defined in the Canadian Security Agreement) endorsed and/or
accompanied by such instruments of assignment and transfer in such form and
substance as the Canadian Collateral Agent may reasonably request pursuant to
the Canadian Security Agreement, together with an update to Schedule A of the
Canadian Security Agreement providing the information contemplated by but not
included on such Schedule A as of the Closing Date;

 

(ix)                                within
one (1) day after the Closing Date, copies certified by the Secretary of
State of the State of Delaware of (x) the Certificate of Merger of SSCE
Funding, LLC with and into Stone Receivables LLC and (y) the Certificate
of Merger of Stone Receivables LLC with and into Smurfit-Stone Container
Enterprises, Inc.;

 

(x)                                   within
three (3) Business Days after the Closing Date, the Termination and
Reassignment Agreement with respect to the termination of the Canadian
Receivables Securitization Program in form and substance reasonably
satisfactory to the Administrative Agent;

 

(xi)                                within
three (3) Business Days after the Closing Date, the amended and restated
Initial Order in form and substance reasonably satisfactory to the
Administrative Agent; and

 

(xii)                             on or
before the date the Bankruptcy Court enters the Final Order, a cross border
protocol with respect to proceedings in the Cases before the Canadian Court and
the Bankruptcy Court in form and substance reasonably satisfactory to the
Administrative Agent.

 

(b)                                 All
conditions precedent and representations contained in the Loan Documents shall
be deemed modified to the extent necessary to effect the foregoing (and to
permit the taking of the actions described above within the time periods
required above); provided, that to the extent any representation and
warranty would not be true because the foregoing actions were not taken on the
Closing Date, the respective representation and warranty shall be required to
be true and correct at the time the respective action is taken in accordance 

 

135

 

with the
foregoing provisions of this Section 9.18.  The acceptance of the benefits of the making
of each Loan and the issuance of each Letter of Credit shall constitute a
representation, warranty and covenant by the Loan Parties to each of the
Lenders that the actions required pursuant to this Section 9.18
will be taken within the relevant time periods referred to in this Section 9.18
and that, at such time, all representations and warranties contained in this
Agreement shall then be true and correct without any modification pursuant to
this Section 9.18.

 

Section 9.19                                USA Patriot
Act.  Each Lender hereby
notifies the Loan Parties that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to
obtain, verify and record information that identifies the Loan Parties, which
information includes the name and address of the Loan Parties and other
information that will allow such Lender to identify the Loan Parties in
accordance with the Patriot Act.

 

Section 9.20                                Judgment Currency. (a)              Except as otherwise provided in Section 11.3,
the Loan Parties’ obligations hereunder and under the other Loan Documents to
make payments in Dollars or in Canadian Dollars (the “Obligation Currency”) shall not be
discharged or satisfied by any tender or recovery pursuant to any judgment
expressed in or converted into any currency other than the Obligation Currency,
except to the extent that such tender or recovery results in the effective
receipt by the Applicable Agent, the applicable Fronting Bank or the applicable
Lender of the full amount of the Obligation Currency expressed to be payable to
the Applicable Agent, the applicable Fronting Bank or the applicable Lender
under this Agreement or the other Loan Documents.  If, for the purpose of obtaining or enforcing
judgment against any Loan Party in any court or in any jurisdiction, it becomes
necessary to convert into or from any currency other than the Obligation
Currency (such other currency being hereinafter referred to as the “Judgment Currency”) an amount due in the
Obligation Currency, the conversion shall be made, at the Exchange Rate, in the
case of Canadian Dollars or Dollars, and, in the case of other currencies, the
rate of exchange (as quoted by the Administrative Agent or if the
Administrative Agent does not quote a rate of exchange on such currency, by a
known dealer in such currency designated by the Administrative Agent)
determined, in each case, as of the date immediately preceding the day on which
the judgment is given (such Business Day being hereinafter referred to as the “Judgment Currency Conversion Date”).

 

(b)                                 If
there is a change in the rate of exchange prevailing between the Judgment
Currency Conversion Date and the date of actual payment of the amount due, the
Loan Parties covenant and agree to pay, or cause to be paid, such additional
amounts, if any (but in any event not a lesser amount), as may be necessary to
ensure that the amount paid in the Judgment Currency, when converted at the
rate of exchange prevailing on the date of payment, will produce the amount of
the Obligation Currency which could have been purchased with the amount of
Judgment Currency stipulated in the judgment or judicial award at the rate of
exchange prevailing on the Judgment Currency Conversion Date.

 

(c)                                  For
purposes of determining the amount of any payment in the Obligation Currency
under this Section 9.20, the rate of exchange used shall take into
account any premium and costs payable in connection with the purchase of the
Obligation Currency.

 

136

 

Section 9.21                                Several Obligations; Nonreliance; Violation of Law. The
respective obligations of the Lenders hereunder are several and not joint and
the failure of any Lender to make any Loan or perform any of its obligations
hereunder shall not relieve any other Lender from any of its obligations
hereunder. Each Lender hereby represents that it is not relying on or looking
to any margin stock for the repayment of the Borrowings provided for herein.
Anything contained in this Agreement to the contrary notwithstanding, neither
any Fronting Bank nor any Lender shall be obligated to extend credit to the
Borrowers in violation of any Requirement of Law.

 

Section 9.22                                Canadian
Anti-Money Laundering Legislation.

 

(a)                                  Each
of the Canadian Loan Parties acknowledges that, pursuant to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada)  and other applicable anti-money laundering, anti-terrorist
financing, government sanction and “know your client” laws, whether within
Canada or elsewhere (collectively, including any guidelines or orders
thereunder, “AML Legislation”),
the Applicable Agent and the Lenders may be required to obtain, verify and
record information regarding such Canadian Loan Party, its directors, authorized
signing officers, direct or indirect shareholders or other Persons in control
of such Canadian Loan Party, and the transactions contemplated hereby. Each of
the Canadian Loan Parties shall promptly provide all such information,
including supporting documentation and other evidence, as may be reasonably
requested by any Lender or the Applicable Agent, or any prospective assign or
participant of a Lender or the Applicable Agent, in order to comply with any
applicable AML Legislation, whether now or hereafter in existence.

 

(b)                                 If
the Applicable Agent has ascertained the identity of any Canadian Loan Party or
any authorized signatories of such Canadian Loan Party for the purposes of
applicable AML Legislation, then the Applicable Agent:

 

(i)                  shall
be deemed to have done so as an agent for each Lender, and this Agreement shall
constitute a “written agreement” in such regard between each Lender and such
Applicable Agent within the meaning of applicable AML Legislation; and

 

(ii)               shall
provide to each Lender copies of all information obtained in such regard
without any representation or warranty as to its accuracy or completeness.

 

Notwithstanding
the preceding sentence and except as may otherwise be agreed in writing, each
of the Lenders agrees that the Applicable Agent has no obligation to ascertain
the identity of any Canadian Loan Party or any authorized signatories of
such Canadian Loan Party on behalf of any Lender, or to confirm the
completeness or accuracy of any information it obtains from such Canadian Loan
Party or any such authorized signatory in doing so.

 

Section 9.23                                Conversion.

 

(a)                                  In
connection with the completion of syndication efforts, on a date designated by
the Administrative Agent on not less than one (1) Business Days notice to
the U.S. 

 

137

 

Borrower, the
Converting Lenders and Bank of America, N.A., and which date shall be no later
than the later of (i) the date the Bankruptcy Court enters the Final Order
and (ii) forty (40) days after the Closing Date (the “Conversion Date”), to the extent the
percentage obtained by dividing the U.S. Revolving Commitment of a Converting
Lender on the Closing Date by the aggregate Commitments of such Converting
Lender on the Closing Date (immediately prior to the initial funding of the
Term Loans) is greater than 33.333%, the Converting Lenders may elect to
decrease their U.S. Revolving Commitments by an amount to be specified by each
such Converting Lender and increase their outstanding U.S. Term Loans by the amount
of such decrease (each, a “U.S. Term Loan
Conversion”), provided, that the amount of a U.S. Term
Loan Conversion by a Converting Lender shall not result in the percentage
obtained by dividing the U.S. Revolving Commitment of a Converting Lender (after
giving effect to such U.S. Term Loan Conversion) by the aggregate Revolving
Commitments and Term Loans of such Converting Lender at the time of such
conversion (after giving effect to any assignments by such Converting Lender
after the Closing Date and on or prior to such date, the “U.S. Revolving Credit Hold Percentage”)
to be less than 33.333%; provided, further, that no U.S. Term
Loan Conversion shall result in the U.S. Revolving Credit Utilization to be
greater than the Interim U.S. Revolving Commitment (after giving effect to such
conversion); and provided, further, that if the U.S. Revolving
Credit Hold Percentage of the Converting Lenders is less than the percentage
obtained by dividing the U.S. Revolving Commitment of Bank of America, N.A. by
the aggregate Revolving Commitments and Term Loans of Bank of America, N.A. at
the time of such conversion, Bank of America, N.A. shall be deemed to be a
Converting Lender and may decrease such amount of its U.S. Revolving Commitment
(and thereby increase its outstanding U.S. Term Loans by such amount) as may be
necessary to reduce its U.S. Revolving Credit Hold Percentage to not less than
the U.S. Revolving Credit Hold Percentage of the other Converting Lenders.  To effect a U.S. Term Loan Conversion, a
Converting Lender shall provide written notice (a “U.S. Conversion Notice”) to the U.S.
Borrower, the other Converting Lenders and the Administrative Agent on or prior
to the Conversion Date setting forth the percentage of such Converting Lender’s
U.S. Revolving Commitment that will be converted to a U.S. Term Loan.  On the date of the Administrative Agent’s
delivery of notice regarding the establishment of the Conversion Date, JPMCB
and Deutsche Bank Trust Company Americas shall advise Bank of America, N.A. of
the U.S. Revolving Credit Hold Percentage. 
Each U.S. Conversion Notice received by the Administrative Agent shall
be irrevocable.

 

(b)                                 Subject
to the limitations set forth in Section 9.23(a) above, on the
conversion date specified by a Converting Lender in its U.S. Conversion Notice:

 

(i)                                     such
Converting Lender shall make an amount available to the Administrative Agent at
its office most recently designated for such purpose, no later than 12:00 Noon,
New York City time, in U.S. Dollars and in immediately available funds, equal
to (A) the percentage of such Converting Lender’s U.S. Revolving
Commitment that will be converted to a U.S. Term Loan multiplied by (B) the
difference between (x) the U.S. Revolving Commitment of such Converting
Lender on such date (as determined immediately prior to any U.S. Term Loan
Conversions on such date), minus (y) the aggregate outstanding U.S.
Revolving Loans of such Converting Lender on such date (prior to giving 

 

138

 

effect to any conversion of
U.S. Revolving Loans to U.S. Term Loans as provided in clause (ii)(y) below);
provided, that, if the foregoing amount is zero, the Converting Lender
shall not be required to make any amount available to the Administrative Agent;

 

(ii)                                  upon
the Administrative Agent’s receipt of funds pursuant to clause (i) above,
if applicable, (x) the Administrative Agent shall deposit such funds in
the U.S. Term Loan Collateral Account and such funds shall be deemed to be an
outstanding U.S. Term Loan (subject to disbursement to the U.S. Borrower as
provided in Section 2.7(c)), (y) an amount equal to (A) the
percentage of such Converting Lender’s U.S. Revolving Commitment that will be
converted to a U.S. Term Loan multiplied by (B) the aggregate outstanding
U.S. Revolving Loans of such Converting Lender on such date (prior to giving
effect to any conversion of U.S. Revolving Loans to U.S. Term Loans as provided
in this clause (y)) shall be deemed to be an outstanding U.S. Term Loan and
shall cease to be a U.S. Revolving Loan, and (z) the U.S. Revolving
Commitment of such Converting Lender shall be reduced permanently in an amount
equal to the amount of such Converting Lender’s U.S. Revolving Commitment that
was converted to a U.S. Term Loan;

 

(iii)                               each
U.S. Term Loan made pursuant to clause (i) above or deemed to be made
pursuant to clause (ii) above shall be an ABR Loan (which ABR Loan may be
converted in accordance with the terms of this Agreement); and

 

(iv)                              each
U.S. Revolving Lender’s undivided interest and participation in each U.S.
Revolving Facility Letter of Credit pursuant to Section 2.4(f) shall
be adjusted to account for the reduction in the aggregate U.S. Revolving
Commitment.

 

(c)                                  In
connection with the completion of syndication efforts, on the Conversion Date,
to the extent the percentage obtained by dividing the Canadian Revolving
Commitment of a Converting Lender on the Closing Date by the aggregate
Commitments of such Converting Lender on the Closing Date (immediately prior to
the initial funding of the Term Loans) is greater than 8.666%, the Converting
Lenders may elect to decrease their Canadian Revolving Commitments by an amount
to be specified by each such Converting Lender and increase their outstanding
Canadian Term Loans by the amount of such decrease (each, a “Canadian Term Loan Conversion”), provided,
that the amount of a Canadian Term Loan Conversion by a Converting Lender shall
not result in the percentage obtained by dividing the Canadian Revolving
Commitment of a Converting Lender (after giving effect to such Canadian Term
Loan Conversion) by the aggregate Revolving Commitments and Term Loans of such
Converting Lender at the time of such conversion (after giving effect to any
assignments by such Converting Lender after the Closing Date and on or prior to
such date, the “Canadian

 

139

 

Revolving
Credit Hold Percentage”) to be less than 8.666%; provided,
further, that no Canadian Term Loan Conversion shall result in the
Canadian Revolving Credit Utilization to be greater than the Interim Canadian
Revolving Commitment (after giving effect to such conversion); and provided,
further, that if the Canadian Revolving Credit Hold Percentage of the
Converting Lenders is less than the percentage obtained by dividing the
Canadian Revolving Commitment of Bank of America, N.A., Canada Branch, by the
aggregate Revolving Commitments and Term Loans of Bank of America, N.A., Canada
Branch, at the time of such conversion, Bank of America, N.A., Canada Branch,
shall be deemed to be a Converting Lender and may decrease such amount of its
Canadian Revolving Commitment (and thereby increase its outstanding Canadian
Term Loans by such amount) as may be necessary to reduce its Canadian Revolving
Credit Hold Percentage to not less than the Canadian Revolving Credit Hold
Percentage of the other Converting Lenders. 
To effect a Canadian Term Loan Conversion, a Converting Lender shall
provide written notice (a “Canadian
Conversion Notice”) to the Canadian Borrower, the other
Converting Lenders and the Canadian Administrative Agent on or prior to the
Conversion Date setting forth the percentage of such Converting Lender’s
Canadian Revolving Commitment that will be converted to a Canadian Term
Loan.  On the date of the Administrative
Agent’s delivery of notice regarding the establishment of the Conversion Date,
JPMCB and Deutsche Bank Trust Company Americas shall advise Bank of America,
N.A., Canada Branch, of the Canadian Revolving Credit Hold Percentage.  Each Canadian Conversion Notice received by
the Canadian Administrative Agent shall be irrevocable.

 

(d)                                 Subject
to the limitations set forth in Section 9.23(c) above, on the
conversion date specified by a Converting Lender in its Canadian Conversion
Notice:

 

(i)                                     such
Converting Lender shall make an amount available to the Canadian Administrative
Agent at its office most recently designated for such purpose, no later than
12:00 Noon, New York City time, in U.S. Dollars and in immediately available
funds, equal to (A) the percentage of such Converting Lender’s Canadian
Revolving Commitment that will be converted to a Canadian Term Loan multiplied
by (B) the difference between (x) the Canadian Revolving Commitment
of such Converting Lender on such date (as determined immediately prior to any
Canadian Term Loan Conversions on such date), minus (y) the
aggregate outstanding Canadian Revolving Loans of such Converting Lender on
such date (prior to giving effect to any conversion of Canadian Revolving Loans
to Canadian Term Loans as provided in clause (ii)(y) below); provided,
that, if the foregoing amount is zero, the Converting Lender shall not be
required to make any amount available to the Canadian Administrative Agent;

 

(ii)                                  upon
the Canadian Administrative Agent’s receipt of funds pursuant to clause (i) above,
if applicable, (x) the Canadian Administrative Agent shall deposit such
funds in the Canadian Term Loan Collateral Account and such funds shall be
deemed to be an outstanding Canadian Term Loan (subject to disbursement to the
Canadian Borrower as provided in Section 2.7(d)), (y) an 

 

140

 

amount equal to (A) the
percentage of such Converting Lender’s Canadian Revolving Commitment that will
be converted to a Canadian Term Loan multiplied by (B) the aggregate
outstanding Canadian Revolving Loans of such Converting Lender on such date
(prior to giving effect to any conversion of Canadian Revolving Loans to
Canadian Term Loans as provided in this clause (y)) shall be deemed to be an
outstanding Canadian Term Loan and shall cease to be a Canadian Revolving Loan,
and (z) the Canadian Revolving Commitment of such Converting Lender shall
be reduced permanently in an amount equal to the amount of such Converting
Lender’s Canadian Revolving Commitment that was converted to a Canadian Term
Loan;

 

(iii)                               each
Canadian Term Loan made pursuant to clause (i) above or deemed to be made
pursuant to clause (ii) above shall be an ABR Loan (which ABR Loan may be
converted in accordance with the terms of this Agreement); and

 

(iv)                              each
Canadian Revolving Lender’s undivided interest and participation in each
Canadian Revolving Facility Letter of Credit pursuant to Section 2.4(f) shall
be adjusted to account for the reduction in the aggregate Canadian Revolving
Commitment.

 

ARTICLE 10.                                                                      GUARANTY

 

Section 10.1                                U.S.
Guaranty.  Each of the Borrowers and
the U.S. Guarantors, each in its capacity as a Guarantor, hereby agrees that it
is jointly and severally liable for, and, as primary obligor and not merely as
surety, absolutely and unconditionally guarantees to the Administrative Agent
(for the benefit of the Secured Parties) the prompt payment when due, whether
at stated maturity, upon acceleration or otherwise, and at all times
thereafter, of the Secured Obligations and all costs and expenses including,
without limitation, all court costs and attorneys’ and paralegals’ fees
(including allocated costs of in-house counsel and paralegals) and expenses
paid or incurred by the Secured Parties in endeavoring to collect all or any
part of the Secured Obligations from, or in prosecuting any action against, any
Borrower, any other Guarantor or any other guarantor of all or any part of the
Secured Obligations (such costs and expenses, together with the Secured Obligations,
collectively the “U.S. Guaranteed
Obligations”).  Each of
the Borrowers and the U.S. Guarantors further agrees that the U.S. Guaranteed
Obligations may be extended or renewed in whole or in part without notice to or
further assent from it, and that it remains bound upon its guarantee
notwithstanding any such extension or renewal. All terms of this Guaranty apply
to and may be enforced by or on behalf of any domestic or foreign branch or
Affiliate of any Lender that extended any portion of the Secured Obligations.

 

Section 10.2                                Canadian
Guaranty.  Each of the
Canadian Guarantors, each in its capacity as a Guarantor, hereby agrees that it
is jointly and severally liable for, and, as primary obligor and not merely as
surety, absolutely and unconditionally guarantees to the Canadian
Administrative Agent (for the benefit of the Secured Parties) the prompt
payment when due, 

 

141

 

whether at stated maturity, upon acceleration
or otherwise, and at all times thereafter, of the Canadian Secured Obligations
and all costs and expenses including, without limitation, all court costs and
attorneys’ and paralegals’ fees (including allocated costs of in-house counsel
and paralegals) and expenses paid or incurred by the Secured Parties in
endeavoring to collect all or any part of the Canadian Secured Obligations
from, or in prosecuting any action against, the Canadian Borrower, any other
Canadian Guarantor or any other guarantor of all or any part of the Canadian
Secured Obligations (such costs and expenses, together with the Canadian
Secured Obligations, collectively the “Canadian Guaranteed
Obligations”, and, together with the U.S. Guaranteed
Obligations, the “Guaranteed Obligations”).
Each of the Canadian Guarantors further agrees that the Canadian Guaranteed
Obligations may be extended or renewed in whole or in part without notice to or
further assent from it, and that it remains bound upon its guarantee
notwithstanding any such extension or renewal. All terms of this Guaranty apply
to and may be enforced by or on behalf of any domestic or foreign branch or
Affiliate of any Lender that extended any portion of the Canadian Secured
Obligations.

 

Section 10.3                                Guaranty of
Payment.  This Guaranty is a
guaranty of payment and not of collection. Each Guarantor waives any right to
require any Secured Party to sue any Loan Party, any other guarantor, or any
other person obligated for all or any part of the Guaranteed Obligations (each,
an “Obligated Party”), or otherwise to
enforce its payment against any collateral securing all or any part of the
Guaranteed Obligations.

 

Section 10.4                                No
Discharge or Diminishment of Guaranty.

 

(a)                                  Except
as otherwise provided for herein, the obligations of each Guarantor hereunder
are unconditional and absolute and not subject to any reduction, limitation,
impairment or termination for any reason (other than the indefeasible payment
in full in cash of the Guaranteed Obligations), including:  (i) any claim of waiver, release,
extension, renewal, settlement, surrender, alteration, or compromise of any of
the Guaranteed Obligations, by operation of law or otherwise; (ii) any
change in the corporate existence, structure or ownership of any Loan Party or
any other guarantor of or other person liable for any of the Guaranteed
Obligations; (iii) any insolvency, bankruptcy, reorganization or other
similar proceeding affecting any Obligated Party, or their assets or any
resulting release or discharge of any obligation of any Obligated Party; or (iv) the
existence of any claim, setoff or other rights which any Guarantor may have at
any time against any Obligated Party, the Agents, any Fronting Bank, any
Lender, or any other person, whether in connection herewith or in any unrelated
transactions.

 

(b)                                 The
obligations of each Guarantor hereunder are not subject to any defense or
setoff, counterclaim, recoupment, or termination whatsoever by reason of the
invalidity, illegality, or unenforceability of any of the Guaranteed
Obligations or otherwise, or any provision of applicable law or regulation
purporting to prohibit payment by any Obligated Party, of the Guaranteed
Obligations or any part thereof.

 

(c)                                  Further,
the obligations of any Guarantor hereunder are not discharged or impaired or
otherwise affected by: (i) the failure of any Secured Party to assert any
claim or demand or to enforce any remedy with respect to all or any part of the
Guaranteed Obligations; (ii) any waiver or modification of or supplement
to any provision of any agreement relating to the Guaranteed Obligations; (iii) any
release, non-perfection, or invalidity of any indirect or 

 

142

 

direct
security for the obligations of any Loan Party for all or any part of the
Guaranteed Obligations or any obligations of any other guarantor of or other
person liable for any of the Guaranteed Obligations; (iv) any action or
failure to act by any Secured Party with respect to any collateral securing any
part of the Guaranteed Obligations; or (v) any default, failure or delay,
willful or otherwise, in the payment or performance of any of the Guaranteed
Obligations, or any other circumstance, act, omission or delay that might in
any manner or to any extent vary the risk of such Guarantor or that would
otherwise operate as a discharge of any Guarantor as a matter of law or equity
(other than the indefeasible payment in full in cash of the Guaranteed
Obligations).

 

Section 10.5                                Defenses
Waived.  To the fullest extent
permitted by applicable law, each Guarantor hereby waives any defense based on
or arising out of any defense of any Borrower or any other Guarantor or the
unenforceability of all or any part of the Guaranteed Obligations from any
cause, or the cessation from any cause of the liability of any Borrower or any other
Guarantor, other than the indefeasible payment in full in cash of the
Guaranteed Obligations. Without limiting the generality of the foregoing, each
Guarantor irrevocably waives acceptance hereof, presentment, demand, protest
and, to the fullest extent permitted by law, any notice not provided for
herein, as well as any requirement that at any time any action be taken by any
person against any Obligated Party, or any other person.  Each Agent may, at its election, foreclose on
any Collateral held by it by one or more judicial or nonjudicial sales, accept
an assignment of any such Collateral in lieu of foreclosure or otherwise act or
fail to act with respect to any collateral securing all or a part of the
Guaranteed Obligations, compromise or adjust any part of the Guaranteed
Obligations, make any other accommodation with any Obligated Party or exercise
any other right or remedy available to it against any Obligated Party, without
affecting or impairing in any way the liability of such Guarantor under this
Guaranty except to the extent the Guaranteed Obligations have been fully and
indefeasibly paid in cash.  To the
fullest extent permitted by applicable law, each Guarantor waives any defense
arising out of any such election even though that election may operate,
pursuant to applicable law, to impair or extinguish any right of reimbursement
or subrogation or other right or remedy of any Guarantor against any Obligated
Party or any security.

 

Section 10.6                                Rights of
Subrogation.  No Guarantor
will assert any right, claim or cause of action, including, without limitation,
a claim of subrogation, contribution or indemnification that it has against any
Obligated Party, or any Collateral, until the Guaranteed Obligations have been
paid in full and the Commitments have been terminated.

 

Section 10.7                                Reinstatement;
Stay of Acceleration.  If at
any time any payment of any portion of the Guaranteed Obligations is rescinded
or must otherwise be restored or returned upon the insolvency, bankruptcy, or
reorganization of any Loan Party or otherwise, each Guarantor’s obligations
under this Guaranty with respect to that payment shall be reinstated at such
time as though the payment had not been made and whether or not any Secured
Party is in possession of this Guaranty. 
If acceleration of the time for payment of any of the Guaranteed
Obligations is stayed upon the insolvency, bankruptcy or reorganization of any
Loan Party, all such amounts otherwise subject to acceleration under the terms
of any agreement relating to the Guaranteed Obligations shall nonetheless be
payable by the Guarantors forthwith on demand by the Lender.

 

143

 

Section 10.8           Information. 
Each Guarantor assumes all responsibility for being and keeping itself
informed of the Borrowers’ financial condition and assets, and of all other
circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations
and the nature, scope and extent of the risks that each Guarantor assumes and
incurs under this Guaranty, and agrees that no Secured Party shall have any
duty to advise any Guarantor of information known to it regarding those
circumstances or risks.

 

Section 10.9           Termination. 
Each Guarantor acknowledges and agrees that this Guaranty is irrevocable
until the Guaranteed Obligations have been paid in full and the Commitments
have been terminated. The Lenders may continue to make loans or extend credit
to the Borrowers based on this Guaranty. Each Guarantor will continue to be
liable to the Lenders for any Guaranteed Obligations created, assumed or
committed from time to time, and all subsequent renewals, extensions,
modifications and amendments with respect to, or substitutions for, all or any
part of that Guaranteed Obligations.

 

Section 10.10         Taxes.  All
payments of the Guaranteed Obligations will be made by each Guarantor free and
clear of and without deduction for any Taxes in accordance with Section 2.19.

 

Section 10.11         Maximum Liability.  The provisions of this Guaranty are
severable, and in any action or proceeding involving any corporate law of any
Governmental Authority, or any state, provincial, regional, federal or foreign
bankruptcy, insolvency, reorganization or other law affecting the rights of
creditors generally, if the obligations of any Guarantor under this Guaranty
would otherwise be held or determined to be avoidable, invalid or unenforceable
on account of the amount of such Guarantor’s liability under this Guaranty,
then, notwithstanding any other provision of this Guaranty to the contrary, the
amount of such liability shall, without any further action by the Guarantors or
the Lenders, be automatically limited and reduced to the highest amount that is
valid and enforceable as determined in such action or proceeding (such highest
amount determined hereunder being the relevant Guarantor’s “Maximum Liability”.  This Section with respect to the Maximum
Liability of each Guarantor is intended solely to preserve the rights of the
Lenders to the maximum extent not subject to avoidance under applicable law,
and no Guarantor nor any other person or entity shall have any right or claim
under this Section with respect to such Maximum Liability, except to the
extent necessary so that the obligations of any Guarantor hereunder shall not
be rendered voidable under applicable law. Each Guarantor agrees that the
Guaranteed Obligations may at any time and from time to time exceed the Maximum
Liability of each Guarantor without impairing this Guaranty or affecting the
rights and remedies of the Lenders hereunder, provided that, nothing in this
sentence shall be construed to increase any Guarantor’s obligations hereunder
beyond its Maximum Liability.

 

Section 10.12         Contribution. 
In the event any Guarantor (a “Paying Guarantor”)
shall make any payment or payments under this Guaranty or shall suffer any loss
as a result of any realization upon any collateral granted by it to secure its
obligations under this Guaranty, each other Guarantor (each a “Non-Paying Guarantor”) shall
contribute to such Paying Guarantor an amount equal to such Non-Paying
Guarantor’s “Contribution Percentage” of such payment or payments made, or
losses suffered, by such Paying Guarantor. 
For purposes of this ARTICLE 10, each Non-Paying Guarantor’s “Contribution
Percentage” with respect to any such payment or loss by a Paying Guarantor
shall be determined as of the date on which such payment or loss was 

 

144

 

made by reference to the ratio of (i) such
Non-Paying Guarantor’s Maximum Liability as of such date (without giving effect
to any right to receive, or obligation to make, any contribution hereunder) or,
if such Non-Paying Guarantor’s Maximum Liability has not been determined, the
aggregate amount of all monies received by such Non-Paying Guarantor from the
Borrowers after the Closing Date (whether by loan, capital infusion or by other
means) to (ii) the aggregate Maximum Liability of all Guarantors hereunder
(including such Paying Guarantor) as of such date (without giving effect to any
right to receive, or obligation to make, any contribution hereunder), or to the
extent that a Maximum Liability has not been determined for any Guarantor, the
aggregate amount of all monies received by such Guarantors from the Borrowers
after the Closing Date (whether by loan, capital infusion or by other
means).  Nothing in this provision shall
affect any Guarantor’s several liability for the entire amount of the
Guaranteed Obligations (up to such Guarantor’s Maximum Liability).  Each of the Guarantors covenants and agrees
that its right to receive any contribution under this Guaranty from a
Non-Paying Guarantor shall be subordinate and junior in right of payment to the
payment in full in cash of the Guaranteed Obligations.  This provision is for the benefit of both the
Agents, the Fronting Banks, the Lenders and the Guarantors and may be enforced
by any one, or more, or all of them in accordance with the terms hereof.

 

Section 10.13         Liability Cumulative.  The liability of each Loan Party as a
Guarantor under this ARTICLE 10 is in addition to and shall be
cumulative with all liabilities of each Loan Party to the Agents, the Fronting
Banks and the Lenders under this Agreement and the other Loan Documents to
which such Loan Party is a party or in respect of any obligations or
liabilities of the other Loan Parties, without any limitation as to amount,
unless the instrument or agreement evidencing or creating such other liability
specifically provides to the contrary.

 

ARTICLE 11.                       COLLECTION ALLOCATION MECHANISM

 

Section 11.1           Implementation of CAM.

 

(a)           On the Termination
Date, the Lenders shall automatically and without further act (and without
regard to the provisions of Section 9.3) be deemed to have
exchanged interests in the Credit Facilities such that in lieu of the interest
of each Lender in each Credit Facility in which it shall participate as of such
date (including such Lender’s interest in the Obligations of each Loan Party in
respect of each such Credit Facility), such Lender shall hold an interest in
every one of the Credit Facilities (including the Obligations of each Loan
Party in respect of each such Credit Facility), whether or not such Lender
shall previously have participated therein, equal to such Lender’s CAM
Percentage thereof.  Each Lender and each
Loan Party hereby consents and agrees to the CAM Exchange, and each Lender
agrees that the CAM Exchange shall be binding upon its successors and assigns and
any Person that acquires a participation in its interests in any Credit
Facility.  Each Loan Party agrees from
time to time to execute and deliver to the Administrative Agent all instruments
and documents as the Administrative Agent shall reasonably request to evidence
and confirm the respective interests of the Lenders after giving effect to the
CAM Exchange.

 

(b)           As a result of the
CAM Exchange, upon and after the Termination Date, each payment received by the
Administrative Agent pursuant to any Loan Document in respect of the
Obligations, and each distribution made by the Administrative Agent in respect
of the 

 

145

 

Obligations,
shall be distributed to the Lenders pro rata in accordance with their respective
CAM Percentages.  Any direct payment
received by a Lender upon or after the Termination Date, including by way of
setoff, in respect of the Obligations shall be paid over to the Administrative
Agent for distribution to the Lenders in accordance herewith.

 

Section 11.2           Letters of
Credit.

 

(a)           In the event that on
the Termination Date any Letter of Credit shall be outstanding and undrawn in
whole or in part, or any amount drawn under any such Letter of Credit shall not
have been reimbursed by the applicable Borrower or with the proceeds of a
Revolving Loan, each Lender having, on such date and prior to giving effect to
the CAM Exchange, Letter of Credit Outstandings with respect to such Letter of
Credit shall promptly pay over to the Administrative Agent, in immediately
available funds, in the case of any undrawn amount, and in Dollars, in the case
of any unreimbursed amount, an amount equal to such Lender’s Applicable
Percentage of such undrawn face amount or (to the extent it has not already
done so) such unreimbursed drawing, as the case may be, together with interest
thereon from the Termination Date to the date on which such amount shall be
paid to the Administrative Agent at the rate that would be applicable at the
time to an ABR Loan in a principal amount equal to such amount.  The Administrative Agent shall establish a
separate account or accounts for each Lender (each, an “LC Reserve Account”) for the amounts
received with respect to each such Letter of Credit pursuant to the preceding
sentence.  The Administrative Agent shall
deposit in each Lender’s LC Reserve Account such Lender’s CAM Percentage of the
amounts received from the Lenders as provided above.  The Administrative Agent shall have sole
dominion and control over each LC Reserve Account, and the amounts deposited in
each LC Reserve Account shall be held in such LC Reserve Account until
withdrawn as provided in paragraph (b), 
(c),  (d)  or (e) 
below.  The Administrative Agent shall
maintain records enabling it to determine the amounts paid over to it and
deposited in the LC Reserve Accounts in respect of each Letter of Credit and
the amounts on deposit in respect of each Letter of Credit attributable to each
Lender’s CAM Percentage.  The amounts
held in each Lender’s LC Reserve Account shall be held as a reserve against the
outstanding Letter of Credit Outstandings, shall be the property of such
Lender, shall not constitute Loans to or give rise to any claim of or against
any Loan Party and shall not give rise to any obligation on the part of either
Borrower to pay interest to such Lender, it being agreed that the reimbursement
obligations in respect of Letters of Credit shall arise only at such times as
drawings are made thereunder, as provided in ARTICLE 2.

 

(b)           In the event that on
or after the Termination Date any drawing shall be made in respect of a Letter
of Credit, the Administrative Agent shall, at the request of the applicable
Fronting Bank, withdraw from the LC Reserve Account of each Lender any amounts,
up to the amount of such Lender’s CAM Percentage of such drawing, deposited in
respect of such Letter of Credit and remaining on deposit and deliver such
amounts to the applicable Fronting Bank in satisfaction of the reimbursement
obligations of the Lenders under Section 2.4(g) (but not of
either Borrower under Section 2.4(e)).  In the event any Lender shall default on its
obligation to pay over any amount to the Administrative Agent in respect of any
Letter of Credit as provided in this Section 11.2, the applicable
Fronting Bank shall, in the event of a drawing thereunder, have a claim against
such Lender to the same extent as if such Lender had defaulted on its
obligations under Section 2.4(g), but shall have no claim against
any other Lender in respect of such defaulted amount, notwithstanding the
exchange of interests in the 

 

146

 

applicable
Borrower’s reimbursement obligations pursuant Section 11.1.  Each other Lender shall have a claim against
such defaulting Lender for any damages sustained by it as a result of such
default, including, in the event such Letter of Credit shall expire undrawn,
its CAM Percentage of the defaulted amount.

 

(c)           In the event that
after the Termination Date any Letter of Credit shall expire undrawn, the Administrative
Agent shall withdraw from the LC Reserve Account of each Lender the amount
remaining on deposit therein in respect of such Letter of Credit and distribute
such amount to such Lender.

 

(d)           With the prior
written approval of the Administrative Agent and the applicable Fronting Bank
(not to be unreasonably withheld), any Lender may withdraw the amount held in
its LC Reserve Account in respect of the undrawn amount of any Letter of
Credit.  Any Lender making such a
withdrawal shall be unconditionally obligated, in the event there shall
subsequently be a drawing under such Letter of Credit, to pay over to the
Administrative Agent, for the account of the applicable Fronting Bank, on
demand, its CAM Percentage of such drawing.

 

(e)           Pending the withdrawal
by any Lender of any amounts from its LC Reserve Account as contemplated by the
above paragraphs, the Administrative Agent will, at the direction of such
Lender and subject to such rules as the Administrative Agent may prescribe
for the avoidance of inconvenience, invest such amounts in Permitted
Investments.  Each Lender which has not
withdrawn its CAM Percentage of amounts in its LC Reserve Account as provided
in paragraph (d)  above shall have the right, at intervals reasonably
specified by the Administrative Agent, to withdraw the earnings on investments
so made by the Administrative Agent with amounts in its LC Reserve Account and
to retain such earnings for its own account.

 

Section 11.3           Conversion. 
In the event the Termination Date shall occur, Obligations owed by the
Loan Parties denominated in any currency other than Dollars (other than, for
the avoidance of doubt, obligations in respect of undrawn Canadian Revolving
Facility Letters of Credit denominated in Canadian Dollars) shall, automatically
and with no further act required, be converted to obligations of the same Loan
Parties denominated in Dollars.  Such
conversion shall be effected based upon the Exchange Rates in effect with
respect to the relevant currencies on the Termination Date.  On and after any such conversion, all amounts
accruing and owed to any Lender in respect of its Obligations shall accrue and
be payable in Dollars at the rates otherwise applicable hereunder (and, in the
case of interest on Loans, at the default rate applicable to ABR Loans
hereunder).  Notwithstanding the
foregoing provisions of this Section 11.3, any Lender may, by
notice to the Borrowers and the Administrative Agent prior to the Termination
Date, elect not to have the provisions of this Section 11.3 apply
with respect to all Obligations owed to such Lender immediately following the
Termination Date, and, if such notice is given, all Obligations owed to such
Lender immediately following the Termination Date shall remain designated in
their original currencies.

 

[REMAINDER OF THIS PAGE
INTENTIONALLY LEFT BLANK]

 

147

 

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

 

	
   

  	
  SMURFIT-STONE CONTAINER ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  150 North Michigan Avenue

  
	
   

  	
  Chicago, IL 60601

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 36-2041256

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SMURFIT-STONE CONTAINER CANADA INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
  Charles A. Hinrichs

  
	
   

  	
  Title:

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  630 Rene-Levesque Blvd. West, Suite 3000

  
	
   

  	
  Montreal, QC

  
	
   

  	
  H3B 5C7

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SMURFIT-STONE CONTAINER CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
   Charles A. Hinrichs

  
	
   

  	
  Title:

  	
   Senior Vice President and
  Chief Financial Officer

  
	
   

  	
  150 North Michigan Avenue

  
	
   

  	
  Chicago, IL 60601

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 43-1531401

  
	
   

  	
   

  	
   

  

Signature
Page to Credit Agreement

 

 

	
   

  	
  CALPINE
  CORRUGATED LLC

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  3366
  E. Muscat Avenue

  
	
   

  	
  Fresno,
  CA 93725

  
	
   

  	
   

  
	
   

  	
  FEIN: 11-3740470

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CAMEO CONTAINER CORPORATION

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  
	
   

  	
  FEIN: 36-2425701

  
	
   

  	
   

  
	
   

  	
  LOT 24D REDEVELOPMENT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul K. Kaufmann

  
	
   

  	
   

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  
	
   

  	
  FEIN: 37-1356747

  
	
   

  	
   

  
	
   

  	
  ATLANTA & SAINT ANDREWS BAY RAILWAY
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  
	
   

  	
  FEIN: 63-6000093

  

 

Signature
Page to Credit Agreement

 

 

	
   

  	
  STONE
  INTERNATIONAL SERVICES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 36-3599630

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STONE GLOBAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 36-4200806

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STONE CONNECTICUT PAPERBOARD
  PROPERTIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 36-3498038

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SMURFIT-STONE PUERTO RICO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Amelia Industrial Park

  
	
   

  	
  47 Amelia Street

  
	
   

  	
  Guaynabo, Puerto Rico 00968

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 66-0665984

  

 

Signature
Page to Credit Agreement

 

 

	
   

  	
  SMURFIT NEWSPRINT CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 93-0361650

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SLP
  FINANCE I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 43-1898169

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SLP FINANCE II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 43-1903935

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SMBI INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  Six CityPlace Drive

  
	
   

  	
  Creve Coeur, MO 63141

  
	
   

  	
   

  	
   

  
	
   

  	
  FEIN: 13-4182567

  

 

Signature
Page to Credit Agreement

 

 

	
   

  	
  3083527
  NOVA SCOTIA COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  630 Rene-Levesque Blvd.
  West, Suite 3000

  
	
   

  	
  Montreal, QC

  
	
   

  	
  H3B 5C7

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MBI LIMITED/LIMITÉE

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  7120 Hurontario Street

  
	
   

  	
  No. 200

  
	
   

  	
  Mississauga, ON

  
	
   

  	
  L5W 0A9

  
	
   

  	
   

  	
   

  
	
   

  	
  SMURFIT-MBI, by its general partner, MBI
  Limited/Limitée

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
   Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  7120 Hurontario Street

  
	
   

  	
  No. 200

  
	
   

  	
  Mississauga, ON

  
	
   

  	
  L5W 0A9

  
	
   

  	
   

  	
   

  
	
   

  	
  STONE CONTAINER FINANCE COMPANY OF CANADA II

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  1959 Upper Water Street, Suite 900

  
	
   

  	
  Halifax, NS

  
	
   

  	
  B3J 2X2

  

 

Signature
Page to Credit Agreement

 

 

	
   

  	
  639647 BRITISH COLUMBIA LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  7120 Hurontario Street

  
	
   

  	
  No. 200

  
	
   

  	
  Mississauga, ON

  
	
   

  	
  L5W 0A9

  
	
   

  	
   

  	
   

  
	
   

  	
  B.C. SHIPPER SUPPLIES LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  7120 Hurontario Street

  
	
   

  	
  No. 200

  
	
   

  	
  Mississauga, ON

  
	
   

  	
  L5W 0A9

  
	
   

  	
   

  	
   

  
	
   

  	
  SPECIALTY CONTAINERS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  7120 Hurontario Street

  
	
   

  	
  No. 200

  
	
   

  	
  Mississauga, ON

  
	
   

  	
  L5W 0A9

  
	
   

  	
   

  	
   

  
	
   

  	
  SLP FINANCE GENERAL
  PARTNERSHIP, by its general partner, SLP Finance I, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name: 

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  630, Boul. Rene-Levesque
  Ouest

  
	
   

  	
  Bureau 3000

  
	
   

  	
  Montreal, QC

  
	
   

  	
  H3B 5C7

  

 

Signature
Page to Credit Agreement

 

 

	
   

  	
  FRANCOBEC COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
  Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  1000 Chemin de l’Usine

  
	
   

  	
  La Tuque, QC

  
	
   

  	
  G9X3P8

  
	
   

  	
   

  	
   

  
	
   

  	
  605681 N.B. INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Charles A. Hinrichs

  
	
   

  	
  Name:

  	
   Charles A. Hinrichs

  
	
   

  	
  Title: 

  	
  Senior Vice President and Chief Financial Officer

  
	
   

  	
  44 Chipman Hill,
  Suite 1000, Post Office Box 7289

  Stn A, Saint John, NB E2L 4S6

  

 

Signature
Page to Credit Agreement

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
  Individually and as Administrative Agent and Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter S. Predun

  
	
   

  	
  Name:

  	
  Peter S. Predun

  
	
   

  	
  Title: 

  	
  Executive Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., TORONTO BRANCH

  
	
   

  	
  as Canadian Administrative Agent and Canadian Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Drew McDonald

  
	
   

  	
  Name:

  	
  Drew McDonald

  
	
   

  	
  Title: 

  	
  Executive Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Anca Trifan

  
	
   

  	
  Name:

  	
  Anca Trifan

  
	
   

  	
  Title: 

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Philip Saliba

  
	
   

  	
  Name:

  	
  Philip Saliba

  
	
   

  	
  Title: 

  	
  Director

  

 

Signature
Page to Credit Agreement

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A., TORONTO BRANCH

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Peter S. Predun

  
	
   

  	
  Name:

  	
  Peter S. Predun

  
	
   

  	
  Title: 

  	
  Executive Director

  

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Clara Yang Strand

  
	
   

  	
  Name:

  	
  Clara Yang Strand

  
	
   

  	
  Title: 

  	
  Senior Vice President

  

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A. (CANADA BRANCH)

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Medina Sales de Andrade

  
	
   

  	
  Name:

  	
  Medina Sales de Andrade

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  THE FOOTHILL GROUP, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Greg Apkarian

  
	
   

  	
  Name:

  	
  Greg Apkarian

  
	
   

  	
  Title: 

  	
  Vice President

  

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL ELECTRIC CAPITAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Wafa Shalabi

  
	
   

  	
  Name:

  	
  Wafa Shalabi

  
	
   

  	
  Title: 

  	
  Duly Authorized Signatory

  

 

 

	
   

  	
  LENDERS:

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NOVA SCOTIA

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Diane Emanuel

  
	
   

  	
  Name:

  	
  Diane Emanuel

  
	
   

  	
  Title: 

  	
  Director

  

 

 

Annex A-1

 

Canadian
Revolving Commitment Amounts

 

	
  LENDER

  	
   

  	
  COMMITMENT

  	
   

  
	
  JPMorgan Chase Bank, N.A., Toronto Branch

  	
   

  	
  US$21,350,000.00

  	
   

  
	
  Deutsche Bank Trust Company Americas

  	
   

  	
  US$21,350,000.00

  	
   

  
	
  Bank of America, N.A., Canada Branch

  	
   

  	
  US$8,000,000.00

  	
   

  
	
  The Bank of Nova Scotia

  	
   

  	
  US$5,633,333.33

  	
   

  
	
  General Electric Capital Corporation

  	
   

  	
  US$8,666,666.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  US$65,000,000

  	
   

  

 

 

Annex A-2

 

U.S.
Revolving Commitment Amounts

 

	
  LENDER

  	
   

  	
  COMMITMENT

  	
   

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  US$71,500,000.00

  	
   

  
	
  Deutsche Bank Trust Company Americas

  	
   

  	
  US$71,500,000.00

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  US$52,000,000.00

  	
   

  
	
  The Bank of Nova Scotia

  	
   

  	
  US$21,666,666.67

  	
   

  
	
  General Electric Capital Corporation

  	
   

  	
  US$33,333,333.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  US$250,000,000

  	
   

  

 

 

Annex A-3

 

U.S. Term
Loan Commitment Amounts

 

	
  LENDER

  	
   

  	
  COMMITMENT

  	
   

  
	
  JPMorgan Chase Bank, N.A.

  	
   

  	
  US$106,482,758.62

  	
   

  
	
  Deutsche Bank Trust Company Americas

  	
   

  	
  US$106,482,758.62

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  US$34,666,666.67

  	
   

  
	
  The Bank of Nova Scotia

  	
   

  	
  US$34,666,666.67

  	
   

  
	
  General Electric Capital Corporation

  	
   

  	
  US$53,333,333.33

  	
   

  
	
  The Foothill Group, Inc.

  	
   

  	
  US$64,367,816.09

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  US$400,000,000

  	
   

  

 

 

Annex A-4

 

Canadian
Term Loan Commitment Amounts

 

	
  LENDER

  	
   

  	
  COMMITMENT

  	
   

  
	
  JPMorgan Chase Bank, N.A., Toronto Branch

  	
   

  	
  US$8,167,241.38

  	
   

  
	
  Deutsche Bank Trust Company Americas

  	
   

  	
  US$8,167,241.38

  	
   

  
	
  Bank of America, N.A., Canada Branch

  	
   

  	
  US$5,333,333.33

  	
   

  
	
  The Bank of Nova Scotia

  	
   

  	
  US$3,033,333.33

  	
   

  
	
  General Electric Capital Corporation

  	
   

  	
  US$4,666,666.67

  	
   

  
	
  The Foothill Group, Inc.

  	
   

  	
  US$5,632,183.91

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  US$35,000,000

  	
   

  

 

 

Exhibit A-1

 

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

	
  In
  re: 

   

  SMURFIT-STONE
  CONTAINER 

  CORPORATION,
  et  al.,(1) 

   

  Debtors.

  	
   

  	
  Chapter
  11

   

  Case
  No. 09-10235 (BLS) 

   

  Jointly
  Administered 

   

  Ref.
  Docket No. 14

  

 

INTERIM ORDER (I) AUTHORIZING
DEBTORS (A) TO OBTAIN POST-PETITION FINANCING PURSUANT TO 11 U.S.C. §§105,
361, 362, 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) AND 364(e) AND (B) TO
UTILIZE CASH COLLATERAL PURSUANT TO 11 U.S.C. §363, (II) AUTHORIZING USE
OF PROCEEDS TO EFFECTUATE PAYOUT OF SECURITIZATION FACILITIES, (III) GRANTING
ADEQUATE PROTECTION TO PRE-PETITION SECURED PARTIES PURSUANT TO 11 U.S.C. §§
361, 362, 363 AND 364 AND (IV) SCHEDULING FINAL HEARING PURSUANT TO
BANKRUPTCY RULES 4001(B) AND (C)

 

Upon
the motion (the “DIP  Motion”),
dated January 26, 2009, of Smurfit-Stone Container Corporation (“SSCC”) and its affiliated U.S. debtors (collectively, the “U.S. Debtors”) and Smurfit-Stone Container Canada Inc. (“SSC Canada”) and its affiliated Canadian debtors
(collectively, the “Canadian Debtors”),
each as debtors and debtors-in-possession (the U.S. Debtors and the Canadian
Debtors hereinafter collectively referred to as the “Debtors”),
in the above-captioned Chapter 11 cases (collectively, the “Cases”) pursuant to sections 105, 361, 362, 363(c)(2),
364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) and 364(e) of

 

(1) The Debtors in these chapter 11 cases, along with the last
four digits of each Debtor’s federal tax identification number, are:
Smurfit-Stone Container Corporation (1401), Smurfit-Stone Container Enterprises, Inc.
(1256), Calpine Corrugated, LLC (0470), Cameo Container Corporation (5701), Lot
24D Redevelopment Corporation (6747), Atlanta & Saint Andrews Bay
Railway Company (0093), Stone International Services Corporation (9630), Stone
Global, Inc. (0806), Stone Connecticut Paperboard Properties, Inc.
(8038), Smurfit-Stone Puerto Rico, Inc. (5984), Smurfit Newsprint
Corporation (1650), SLP Finance I, Inc. (8169), SLP Finance II, Inc.
(3935), SMBI Inc. (2567), Smurfit-Stone Container Canada Inc. (3988), Stone
Container Finance Company of Canada II (1587), 3083527 Nova Scotia Company
(8836), MBI Limited/Limitée (6565), Smurfit-MBI (1869), 639647 British Columbia
Ltd. (7733), B.C. Shipper Supplies Ltd. (7418), Specialty Containers Inc.
(6564), SLP Finance General Partnership (TBD), Francobec Company (7735), and
605681 N.B. Inc. (1898).  The Debtors’
corporate headquarters are located at, and the mailing address for each Debtor
is, 150 North Michigan Avenue, Chicago, Illinois 60601.

 

 

title 11
of the United States Code, 11 U.S.C. §§101, et seq. (the “Bankruptcy
Code”), and Rules 2002, 4001 and 9014 of the Federal Rules of
Bankruptcy Procedure (the “Bankruptcy Rules”),
seeking, among other things, entry of an interim order (this “Interim Order”) authorizing the Debtors to:

 

(i)                                  Obtain credit
and incur debt, pursuant to Sections 363, 364(c) and 364(d)(1) of the
Bankruptcy Code,

 

(a) on
an interim basis for a period (the “Interim Period”)
from the Closing Date through and including the earlier of the entry of a Final
Order, as defined below, or March 13, 2009, up to an aggregate principal
amount of US$550,000,000 (consisting of a US$400,000,000 U.S. term loan for
borrowings by Smurfit-Stone Container Enterprises, Inc. (“SSCE”); a US$35,000,000 Canadian term loan for borrowings
by SSC Canada; a US$100,000,000 U.S. revolving loan for borrowings by SSCE
and/or SSC Canada; and a US$15,000,000 Canadian revolving loan for borrowings
by SSCE and/or SSC Canada; the actual principal amount of any such loans at any
time subject to those conditions set forth in the DIP Credit Agreement (as
defined below)); all borrowings by SSCE shall be guaranteed by the other U.S.
Debtors (other than SMBI Inc.) and SSC Canada and all borrowings by SSC Canada
shall be guaranteed by all of the other Debtors, and

 

(b) upon
entry of the Final Order, up to an aggregate committed amount of US$750,000,000
(consisting of a US$400,000,000 U.S. term loan for borrowings by SSCE; a
US$35,000,000 Canadian term loan for borrowings by SSC Canada; a US$250,000,000
U.S. revolving loan for borrowings by SSCE and/or SSC Canada; and a
US$65,000,000 Canadian revolving loan for borrowings by SSCE and/or SSC Canada;
the actual principal amount of any such loans at any time subject to those
conditions set forth in the DIP Credit Agreement); all

 

2

 

borrowings by SSCE shall be guaranteed by the
other U.S. Debtors (other than SMBI Inc.) and SSC Canada and all borrowings by
SSC Canada shall be guaranteed by all of the other Debtors;

 

each
on terms and conditions more fully described herein, secured by first priority,
valid, priming, perfected and enforceable liens (as defined in section 101(37)
of the Bankruptcy Code) on property of the Debtors’ estates pursuant to
sections 364(c)(2), 364(c)(3) and 364(d)(1) of the Bankruptcy Code,
and with priority, as to administrative expenses, as provided in section 364(c)(1) of
the Bankruptcy Code, subject to the terms and conditions contained herein;

 

(ii)                               (a) Establish
a financing arrangement (the “DIP Facility”)
pursuant to (I) that certain Credit Agreement (as amended, modified or
supplemented in accordance with the terms of this Interim Order, the “DIP Credit Agreement”)(2), substantially in the form attached
hereto as Exhibit B, by and between SSCE and SSC Canada
(collectively, the “Borrowers”),
SSCC, the other Loan Parties party thereto, JPMorgan Chase Bank, N.A., as
administrative agent and collateral agent (the “U.S. DIP
Agent”), JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian
administrative agent and Canadian collateral agent (“Canadian
DIP Agent”, collectively with the U.S. DIP Agent, the “DIP Agents”), and the Lenders party thereto (the “DIP Lenders”, collectively with the DIP Agents, the “DIP Secured Parties”), and (II) all other agreements,
documents, notes, certificates, and instruments executed and/or delivered with,
to, or in favor of the DIP Secured Parties, including, without limitation,
security agreements, pledge agreements, notes, guarantees, mortgages, and
Uniform Commercial Code (“UCC”)
financing statements and all other related agreements, documents, notes,
certificates, and instruments executed and/or delivered in connection therewith
or related thereto (collectively,

 

(2) Capitalized
terms used in this Interim Order but not defined herein shall have the meanings
ascribed to such terms in the DIP Credit Agreement.

 

3

 

and together with the DIP Credit Agreement,
as may be amended, modified or supplemented and in effect from time to time,
the “DIP Financing Agreements”); and (b) incur
the “Secured Obligations” under the DIP
Credit Agreement ((a) and (b) collectively, the “DIP
Obligations”);

 

(iii)                            Authorize the
use of the proceeds of the DIP Facility (net of any amounts used to pay fees,
costs and expenses under the DIP Credit Agreement) in each case in a manner
consistent with the terms and conditions of the DIP Credit Agreement, and in a
manner substantially consistent with the Budget solely for (a) working
capital, Letters of Credit and Capital Expenditures; (b) other general
corporate purposes of the Debtors (including intercompany loans to the extent
permitted by the DIP Credit Agreement); (c) upon entry of this Interim
Order, the refinancing in full or defeasance of Indebtedness outstanding under
the Receivables Securitization Programs; (d) payment of any related
transaction costs, fees and expenses; and (e) the costs of administration
of the Cases.

 

(iv)                           Grant, with respect to
the DIP Obligations (as defined below) of the U.S. Debtors (other than SMBI, Inc.)
and SSC Canada:

 

(a)                                  pursuant to Section 364(c)(1) of
the Bankruptcy Code, an allowed Superpriority Claim payable from and having
recourse to all pre-petition and post-petition property of the estates of the
U.S. Debtors and SSC Canada and all proceeds thereof;

 

(b)                                 pursuant to Section 364(c)(2) of
the Bankruptcy Code, a perfected first priority Lien on all unencumbered
property of the U.S. Debtors and SSC Canada (including, upon entry of the Final
Order, any proceeds of Avoidance Actions) and on all cash maintained in any
Collateral Account and any investments of the funds contained therein, provided
that amounts in the Collateral Accounts shall not be subject to the Carve-Out or
the CCAA Charges;

 

4

 

(c)                                  pursuant to Section 364(c)(3) of
the Bankruptcy Code, a perfected junior Lien upon all property of the U.S.
Debtors and SSC Canada that is subject to valid and perfected and unavoidable
Liens in existence on the Petition Date (as defined below) or that is subject
to valid Liens in existence on the Petition Date that are perfected subsequent
to the Petition Date as permitted by Section 546(b) of the Bankruptcy
Code (other than certain property that is subject to the Primed Liens (as
defined below), which Primed Liens shall be primed by the liens to be granted
to the U.S. DIP Agent described in the following clause (d));

 

(d)                                 pursuant to Section 364(d)(1) of
the Bankruptcy Code, a perfected first priority, senior priming Lien on all of
the property of the U.S. Debtors and SSC Canada (including, without limitation,
inventory, receivables, rights under license agreements, property, plant and
equipment and the residual interest of the U.S. Debtors and SSC Canada in any
Receivables Securitization Programs) that is subject to the Primed Liens, which
Primed Liens shall be primed by and made subject and subordinate to the
perfected first priority senior priming Liens to be granted to the U.S. DIP
Agent, which senior priming Liens in favor of the U.S. DIP Agent shall also
prime any Liens granted after the Petition Date to provide adequate protection
Liens in respect of any of the Primed Liens, but shall not prime (1) Non-Primed
Liens which secure the Calpine Debt or (2) other Non-Primed Liens solely
to the extent such Non-Primed Liens secure claims in an aggregate amount less
than or equal to US$60,000,000.

 

(v)                              Grant, with
respect to the DIP Obligations of the Canadian Guarantors, including SMBI, Inc.,
relative to the Canadian Term Loan and the Canadian Revolving Facility:

 

(a)                                  pursuant to Section 364(c)(1) of
the Bankruptcy Code, an allowed Superpriority Claim and be payable from and
have recourse to all pre-petition and post-petition property of the estates of
the Canadian Guarantors and all proceeds thereof;

 

5

 

(b)                                 pursuant to Section 364(c)(2) of
the Bankruptcy Code, a perfected first priority Lien on all unencumbered
property of the Canadian Guarantors (including, upon entry of the Final Order,
any proceeds of Avoidance Actions) and on all cash maintained in any Collateral
Account and any investments of the funds contained therein, provided
that amounts in the Collateral Accounts shall not be subject to the Carve-Out
or the CCAA Charges;

 

(c)                                  pursuant to Section 364(c)(3) of
the Bankruptcy Code, a perfected junior Lien upon all property of the Canadian
Guarantors that is subject to valid and perfected and unavoidable Liens in
existence on the Petition Date or that is subject to valid Liens in existence
on the Petition Date that are perfected subsequent to the Petition Date as
permitted by Section 546(b) of the Bankruptcy Code (other than
certain property that is subject to the Primed Liens, which Primed Liens shall
be primed by the liens to be granted to the U.S. DIP Agent described in the
following clause (d));

 

(d)                                 pursuant to Section 364(d)(1) of
the Bankruptcy Code, a perfected first priority, senior priming Lien on all of
the property of the Canadian Guarantors (including, without limitation,
inventory, receivables, rights under license agreements, property, plant and
equipment and the residual interest of the Canadian Guarantors in any
Receivables Securitization Programs) that is subject to the Primed Liens, which
Primed Liens shall be primed by and made subject and subordinate to the
perfected first priority senior priming Liens to be granted to the U.S. DIP
Agent, which senior priming Liens in favor of the U.S. DIP Agent shall also
prime any Liens granted after the Petition Date to provide adequate protection
Liens in respect of any of the Primed Liens, but shall not prime (1) Non-Primed
Liens which secure the Calpine Debt or (2) other Non-Primed Liens solely
to the extent such Non-Primed Liens secure claims in an aggregate amount less
than or equal to US$60,000,000.

 

6

 

(vi)                           Authorize the
use of “cash collateral” as such term is defined in Section 363 of the
Bankruptcy Code (the “Cash Collateral”),
in which the Pre-Petition Secured Parties (as defined below) have an interest;

 

(vii)                        Grant the
Pre-Petition Agents (for the benefit of the Pre-Petition Secured Parties) (each
as defined below) Pre-Petition Replacement Liens and Pre-Petition Superpriority
Claims (each as defined below), to the extent of any diminution in the value of
the Pre-Petition Agents’ interest in the Collateral (as defined below) on the
Petition Date, securing the indebtedness under the Pre-Petition Financing
Agreements, as defined below, having the priority set forth in this Interim
Order, as adequate protection for the granting of the DIP Liens (as defined
below) to the U.S. DIP Agent, the use of Cash Collateral, and for the
imposition of the automatic stay;

 

(viii)                     Vacate and modify
the automatic stay imposed by section 362 of the Bankruptcy Code to the extent
necessary to implement and effectuate the terms and provisions of the DIP
Financing Agreements and this Interim Order;

 

(ix)                             Schedule a
final hearing (the “Final Hearing”)
to consider entry of an order (the “Final Order”)
granting the relief requested in the DIP Motion on a final basis and approve
the form of notice with respect to the Final Hearing; and

 

(x)                                Waive any
applicable stay (including under Rule 6004 of the Federal Rules of
Bankruptcy Procedure) and provide for immediate effectiveness of this Interim
Order.

 

The
Bankruptcy Court having considered the DIP Motion, the Declaration of Charles
A. Hinrichs, Chief Financial Officer of Smurfit-Stone Container Corporation, in
Support of First Day Motions, the exhibits attached thereto, the DIP Facility
and the DIP Credit Agreement, and the evidence submitted at the hearing on this
Interim Order (the “Interim Hearing”);
and in

 

7

 

accordance with Rules 2002, 4001(b),
(c), and (d), and 9014 of the Bankruptcy Rules and the local rules of
the Bankruptcy Court, due and proper notice of the DIP Motion and the Interim
Hearing having been given; an Interim Hearing having been held and concluded on
January 27, 2009; and it appearing that approval of the interim relief
requested in the DIP Motion is necessary to avoid immediate and irreparable
harm to the Debtors pending the Final Hearing and otherwise is fair and
reasonable and in the best interests of the Debtors, their creditors, their
estates and their equity holders, and is essential for the continued operation
of the Debtors’ business; and it further appearing that, other than pursuant to
the DIP Financing Agreements, the Debtors are unable to secure (i) adequate
unsecured credit allowable under Bankruptcy Code Section 503(b)(1) as
an administrative expense, (ii) credit for money borrowed with priority
over any or all administrative expenses of the kind specified in Bankruptcy
Code Sections 503(b) or 507(b), (iii) credit for money borrowed
secured solely by a Lien on property of the estate that is not otherwise
subject to a Lien, or (iv) credit for money borrowed secured by a junior
Lien on property of the estate which is subject to a Lien; and, subject to the
terms hereof, there is adequate protection of the interests of holders of liens
on the property of the estates on which liens are to be granted; and all
objections, if any, to the entry of this Interim Order having been withdrawn, resolved
or overruled by this Court; and after due deliberation and consideration, and
for good and sufficient cause appearing therefor:

 

BASED UPON THE RECORD ESTABLISHED AT THE INTERIM HEARING, THE COURT
HEREBY MAKES THE FOLLOWING FINDINGS OF FACT AND CONCLUSIONS OF LAW:

 

A.                                   Petition
Date.  On January 26,
2009 (the “Petition Date”), the Debtors filed
voluntary petitions under Chapter 11 of the Bankruptcy Code with the United
States Bankruptcy Court for the District of Delaware (the “Court”).  The Debtors have continued in the

 

8

 

management and operation of their business
and property as debtors-in-possession pursuant to sections 1107 and 1108 of the
Bankruptcy Code.  No trustee or examiner
has been appointed in the Cases.  In
addition, on January 26, 2009 the Canadian Debtors (except Smurfit-MBI and
SLP Finance General Partnership) applied for an initial order under the
Companies’ Creditors Arrangement Act in the Ontario, Canada Superior Court of
Justice.  In addition, Smurfit-MBI and
SLP Finance General Partnership intend to seek recognition of their respective
Chapter 11 Cases in the Canadian Court and an order granting charges over the
assets of each of Smurfit-MBI and SLP Finance General Partnership to secure
their respective DIP Obligations, under Section 268 of the Bankruptcy And
Insolvency Act.

 

B.                                     Jurisdiction
and Venue.  This Court has
jurisdiction over these proceedings, pursuant to 28 U.S.C. §§ 157(b) and
1334, and over the persons and property affected hereby.  Consideration of the DIP Motion constitutes a
core proceeding under 28 U.S.C. § 157(b)(2). 
Venue for the Cases and proceedings on the DIP Motion is proper before
this Court pursuant to 28 U.S.C. §§ 1408 and 1409.

 

C.                                     Notice.  The Interim Hearing is being
held pursuant to the authorization of Bankruptcy Rule 4001.  Notice of the Interim Hearing and the
emergency relief requested in the DIP Motion has been provided by the Debtors,
whether by telecopy, email, overnight courier or hand delivery on January 26,
2009, to certain parties in interest, including:  (i) the Office of the United States
Trustee, (ii) the United States Securities and Exchange Commission, (iii) the
Office of the United States Attorney for the District of Delaware, (iv) the
Internal Revenue Service, (v) the Debtors’ thirty (30) largest unsecured
creditors on a consolidated basis, (vi) counsel to the Pre-Petition
Agents, (vii) the Pre-Petition Agents, (viii) counsel to the DIP
Agents, and (ix) the indenture trustees for the Debtors’ five series of
outstanding pre-petition

 

9

 

senior notes. 
Under the circumstances, such notice of the Interim Hearing is due and
sufficient notice and complies with Bankruptcy Rule 4001 under the
circumstances.

 

D.                                    Debtors’
Acknowledgements and Agreements. 
Without prejudice to the rights of parties in interest as set forth in
paragraph 6 below, the Debtors admit, stipulate, acknowledge and agree as
follows (collectively, paragraphs D (i) through D (vi) hereof shall
be referred to herein as the “Debtors’ Stipulations”):

 

(i)                                     Pre-Petition
Financing Agreements.  Prior to the
Petition Date, certain of the Debtors were party to (a) that certain
Credit Agreement, dated as of November 1, 2004, by and between the Borrowers,
SSCC, as guarantor, the banks and other financial institutions from time to
time parties thereto (the “Pre-Petition Lenders”),
Deutsche Bank Trust Company Americas, as administrative agent (the “U.S. Pre-Petition Agent”), and Deutsche Bank AG, as
Canadian administrative agent (together with the U.S. Pre-Petition Agent, the “Pre-Petition Agents”, and collectively with the
Pre-Petition Lenders, the “Pre-Petition Secured
Parties”), (b) that certain Guarantee and Collateral Agreement
(U.S.), dated as of November 1, 2004, executed by the Borrowers, SSCC and
certain subsidiaries of SSCC, in favor of the U.S. Pre-Petition Agent, and (c) all
other agreements, documents, notes, certificates, and instruments executed
and/or delivered with, to, or in favor of Pre-Petition Secured Parties,
including, without limitation, security agreements, guaranties, and UCC
financing statements and all other related agreements, documents, notes,
certificates, and instruments executed and/or delivered in connection therewith
or related thereto (collectively, as amended, modified or supplemented and in
effect, the “Pre-Petition Financing Agreements”).

 

(ii)                                  Pre-Petition
Debt Amount.  As of the
Petition Date, the Debtors were indebted under the Pre-Petition Financing
Agreements (a) on account of Loans (as defined in the Pre-Petition
Financing Agreements) made to SSCE, in the approximate aggregate principal
amount of not less than approximately US$746,000,000 plus letters of credit in
the approximate aggregate stated amount of not less than approximately
US$252,800,000, plus, in each case, interest accrued and accruing (at the rates
(including, to the extent allowed, the default rate) set forth in the
Pre-Petition Financing Agreements), costs, expenses, fees (including attorneys’
fees and legal expenses), other charges (in each case, to the extent
reimbursable under the Pre-Petition Financing Agreements) and other
obligations, including, without limitation, on account of Swap Agreements (as
defined in the Pre-Petition Financing Agreements) with a Pre-Petition Lender or
an affiliate thereof, cash management services, overdrafts, and temporary
advances, and (b) on account of Loans made to SSC Canada, in the
approximate aggregate principal amount of not less than approximately US$366,000,000,
plus

 

10

 

letters
of credit in the approximate aggregate stated amount of not less than
approximately US$27,000,000, plus, in each case, interest accrued and accruing,
costs, expenses, fees (including attorneys’ fees and legal expenses), other
charges (in each case, to the extent reimbursable under the Pre-Petition
Financing Agreements) and obligations, including, without limitation, Swap
Agreements (as defined in the Pre-Petition Financing Agreements) with a
Pre-Petition lender or an affiliate thereof, cash management services,
overdrafts, and temporary advances (collectively the “Pre-Petition
Debt”).  SSCC guaranteed all
of the obligations of SSCE (the “Pre-Petition U.S.
Obligations”) under the Pre-Petition Financing Agreements.  Certain material subsidiaries of SSC Canada
(the “Pre-Petition Canadian Guarantors”), as
well as SSCC and SSCE, guaranteed the obligations of SSC Canada (the “Pre-Petition Canadian Obligations”) under the Pre-Petition
Credit Agreement .

 

(iii)                               Pre-Petition
Collateral.  To secure the
Pre-Petition Debt, the Debtors granted security interests, mortgages and liens
(the “Pre-Petition Liens”) to the
Pre-Petition Secured Parties on the personal and real property and the proceeds
thereof as described and defined as “Collateral” in the Pre-Petition Financing
Agreements (collectively, the “Pre-Petition Collateral”).(3) 
The Pre-Petition U.S. Obligations are secured by those Pre-Petition Liens
granted by SSCC and SSCE, as well as by the capital stock of SSCE and 65% of
the capital stock of SSC Canada.  The
Pre-Petition Canadian Obligations are secured by those Pre-Petition Liens
granted by SSC Canada and the Pre-Petition Canadian Guarantors, pledges of all
of the capital stock of the Pre-Petition Canadian Guarantors, and the liens and
stock pledges securing the Pre-Petition U.S. Obligations.  The Pre-Petition Liens have priority over all
other liens, except (a) the DIP Liens (as defined below), (b) the
Carve Out (as defined below) to which the DIP Liens are subject, and (c) any
liens which are valid, properly perfected, unavoidable, and senior to or pari passu with the Pre-Petition Liens (the “Priority Liens”).

 

(iv)                              Pre-Petition
Liens.  (a) As of
the Petition Date, the Debtors believe that (i) the Pre-Petition Liens are
valid, binding, enforceable, and perfected first-priority liens, subject only
to any Priority Liens and are not subject to avoidance, recharacterization or
subordination pursuant to the Bankruptcy Code or applicable non-bankruptcy law,
(ii) the Pre-Petition Debt constitutes legal, valid and binding
obligations of the Debtors, enforceable in accordance with the terms of the
Pre-Petition Financing Agreements (other than in respect of the stay of
enforcement arising from section 362 of the Bankruptcy Code), no offsets,
defenses or counterclaims to any of the Pre-Petition Debt exists, and no
portion of the Pre-Petition Debt is subject to avoidance, recharacterization or
subordination pursuant to the Bankruptcy Code or applicable non-bankruptcy law,
and (iii) the 

 

(3) The
acknowledgment and agreement by the Debtors of the Pre-Petition Debt and the
related liens, rights priorities and protections granted to or in favor of the
Pre-Petition Secured Parties, as set forth herein and in the Pre-Petition
Financing Agreements, shall constitute a proof of claim on behalf of the
Pre-Petition Lenders in these Cases in respect of the Pre-Petition Debt.

 

11

 

Pre-Petition
Debt constitutes allowable secured claims, and (b) on the date that this
Interim Order is entered, each Debtor has waived, discharged and released the
Pre-Petition Secured Parties, together with their affiliates, agents,
attorneys, officers, directors and employees, of any right any Debtor may have (x) to
challenge or object to the amount, validity, or enforceability of the
Pre-Petition Debt, (y) to challenge or object to the validity,
enforceability, or non-voidability of the Pre-Petition Liens securing the
Pre-Petition Debt, and (z) to bring or pursue any and all claims,
counterclaims, objections, challenges, causes of action and/or choses in action
against any of the Pre-Petition Parties or arising out of, based upon or
related to the Pre-Petition Financing Agreements or otherwise.

 

(v)                                 Cash
Collateral.  The
Pre-Petition Secured Parties have a security interest in certain of the Cash
Collateral constituting proceeds of Pre-Petition Collateral to secure the
Pre-Petition Debt.

 

(vi)                              Priming
of DIP Facility.  In entering
into the DIP Financing Agreements, and as consideration therefor, the Debtors
hereby agree that until such time as all DIP Obligations are paid in full in
cash (or other arrangements for payment of the DIP Obligations satisfactory to
the DIP Agents have been made) and the DIP Financing Agreements are terminated
in accordance with the terms thereof, the Debtors shall not in any way prime,
seek to prime, or support any other party that seeks to prime the security
interests and DIP Liens provided to the DIP Secured Parties under this Interim
Order by offering a subsequent lender or a party-in-interest a superior or pari passu lien or claim pursuant to Section 364(d) of
the Bankruptcy Code or otherwise.

 

E.                                      Findings
Regarding the Post-Petition Financing.

 

(i)                                     Need
for Post-Petition Financing. 
An immediate need exists for the Debtors to obtain funds from the DIP
Facility in order to continue operations and to administer and preserve the
value of their estates.  The ability of
the Debtors to finance their operations, to preserve and maintain the value of
the Debtors’ assets and maximize a return for all creditors requires the
availability of working capital from the DIP Facility, the absence of which
would immediately and irreparably harm the Debtors, their estates, their
creditors and equity holders and the possibility for a successful
reorganization of the Debtors.

 

(ii)                                  No
Credit Available on More Favorable Terms.  The Debtors have been unable
to obtain (a) adequate unsecured credit allowable under Bankruptcy Code
section

 

12

 

503(b)(1) as
an administrative expense, (b) credit for money borrowed with priority
over any or all administrative expenses of the kind specified in Bankruptcy Code
Sections 503(b) or 507(b), (c) credit for money borrowed secured
solely by a Lien on property of the estate that is not otherwise subject to a
Lien, or (d) credit for money borrowed secured by a junior Lien on
property of the estate which is subject to a Lien, in each case, on more
favorable terms and conditions than those provided in the DIP Credit Agreement
and this Interim Order.  The Debtors are
unable to obtain credit for borrowed money without granting to the DIP Secured
Parties the DIP Protections (as defined below).

 

F.                                      Use
of Proceeds of the DIP Facility. 
Proceeds of the DIP Facility (net of any amounts used to pay fees,
costs and expenses under the DIP Financing Agreements) shall be used, in each
case in a manner consistent with the terms and conditions of the DIP Financing
Agreements, and in a manner substantially consistent with the Budget solely for
(i) working capital, Letters of Credit and Capital Expenditures; (ii) other
general corporate purposes of the Debtors (including intercompany loans to the
extent permitted by the DIP Credit Agreement); (iii) upon entry of this
Interim Order, the refinancing in full or defeasance of Indebtedness
outstanding under the Receivables Securitization Programs; (iv) payment of
any related transaction costs, fees and expenses; and (v) the costs of
administration of the Cases; provided, however, that no more than
US$100,000 of the proceeds of the Loans or the DIP Collateral may be used by
any statutory committee of unsecured creditors to investigate, and by the
monitor in the Canadian Cases to review, the Pre-Petition Liens and claims of
the Pre-Petition Agents and the Pre-Petition Lenders.

 

13

 

G.                                     Application
of Proceeds of DIP Collateral. 
All proceeds of the sale or other disposition of the DIP Collateral (as
defined below) shall be applied in accordance with the terms and conditions of
the DIP Credit Agreement.

 

H.                                    Adequate
Protection for Pre-Petition Secured Parties.  As a result of the grant of
the DIP Liens, subordination to the Carve Out, and the use of Collateral,
including Cash Collateral, authorized herein, the Pre-Petition Secured Parties
are entitled to receive adequate protection pursuant to sections 361, 362, 363
and 364 of the Bankruptcy Code as set forth herein.

 

I.                                         Section 552.  In light of the
subordination of their liens and superpriority claims to (i) the Carve Out
in the case of the DIP Secured Parties, and (ii) the Carve Out and the DIP
Liens in the case of the Pre-Petition Secured Parties, the DIP Secured Parties
and the Pre-Petition Secured Parties are each entitled to all of the rights and
benefits of section 552(b) of the Bankruptcy Code, and the “equities of
the case” exception shall not apply.

 

J.                                        Extension
of Financing.  The DIP Secured
Parties have indicated a willingness to provide financing to certain of the
Debtors in accordance with the DIP Credit Agreement.  Such financing is essential to the Debtors’
estate.  The DIP Secured Parties are good
faith financiers.  The DIP Secured Parties’
claims, superpriority claims, security interests and liens and other
protections granted pursuant to this Interim Order (and the Final Order) and
the DIP Facility will not be affected by any subsequent reversal, modification,
vacatur or amendment of this Interim Order or the Final Order or any other
order, as provided in section 364(e) of the Bankruptcy Code.

 

K.                                    Business
Judgment and Good Faith Pursuant to Section 364(e).

 

(i)                                     The terms and
conditions of the DIP Facility and the DIP Credit Agreement, and the fees paid
and to be paid thereunder, are fair, reasonable, and the best

 

14

 

available
under the circumstances, reflect the Debtors’ exercise of prudent business
judgment consistent with their fiduciary duties, and are supported by
reasonably equivalent value and consideration;

 

(ii)                                  the DIP
Facility was negotiated in good faith and at arms’ length between the Debtors
and the DIP Secured Parties; and

 

(iii)                               use of the
proceeds to be extended under the DIP Facility will be so extended in good
faith, and for valid business purposes and uses, as a consequence of which the
DIP Secured Parties are entitled to the protection and benefits of section 364(e) of
the Bankruptcy Code.

 

L.                                      Relief
Essential; Best Interest. 
The relief requested in the DIP Motion (and as provided in this Interim
Order) is necessary, essential, and appropriate for the continued operation of
the Debtors’ business and the management and preservation of the Debtors’
assets and personal property.  It is in
the best interest of Debtors’ estates that the Debtors be allowed to establish
the DIP Facility contemplated by the DIP Credit Agreement.

 

M.                                 Entry
of Interim Order.  For the reasons
stated above, the Debtors have requested immediate entry of this Interim Order
pursuant to Bankruptcy Rule 4001(c)(2).

 

NOW, THEREFORE, on the DIP Motion of the Debtors and the
record before this Court with respect to the DIP Motion, and with the consent
of the Debtors, the Pre-Petition Secured Parties and the DIP Secured Parties to
the form and entry of this Interim Order, and good and sufficient cause
appearing therefor,

 

IT IS ORDERED that:

 

1.                                       Motion
Granted.  The DIP Motion
is granted in accordance with the terms and conditions set forth in this
Interim Order and the DIP Credit Agreement.

 

15

 

2.                                       DIP
Financing Agreements.

 

(a)                                  Approval
of Entry Into DIP Financing Agreements.  The Debtors are expressly
and immediately authorized, empowered and directed to execute and deliver the
DIP Financing Agreements and to incur and to perform the DIP Obligations in
accordance with, and subject to, the terms of this Interim Order and the DIP
Financing Agreements, and to execute and deliver all instruments, certificates,
agreements and documents which may be required or necessary for the performance
by the Debtors under the DIP Facility and the creation and perfection of the
DIP Liens described in and provided for by this Interim Order and the DIP
Financing Agreements.  The Debtors are
hereby authorized and directed to do and perform all acts, pay the principal,
interest, fees, expenses and other amounts described in the DIP Credit
Agreement and all other DIP Financing Agreements as such become due, including,
without limitation, closing fees, administrative fees, commitment fees, letter
of credit fees and reasonable attorneys’, financial advisors’ and accountants’
fees and disbursements as provided for in the DIP Credit Agreement, which
amounts shall not otherwise be subject to approval of this Court.  Upon execution and delivery, the DIP
Financing Agreements shall represent valid and binding obligations of the
Debtors enforceable against the Debtors in accordance with their terms.

 

(b)                                 Authorization
to Borrow.  In order to
enable them to continue to operate their business, during the Interim Period
and subject to the terms and conditions of this Interim Order, the DIP Credit
Agreement, the other DIP Financing Agreements, and the Budget, the Debtors are
hereby authorized under the DIP Facility to borrow up to an aggregate principal
amount of US$550,000,000 (consisting of a US$400,000,000 U.S. term loan for
borrowings by SSCE; a US$35,000,000 Canadian term loan for borrowings by SSC
Canada; a US$100,000,000 U.S. revolving loan for borrowings by SSCE and/or SSC
Canada; and a US$15,000,000

 

16

 

Canadian
revolving loan for borrowings by SSCE and/or SSC Canada), the actual principal
amount at any time subject to those conditions set forth in the DIP Credit
Agreement, until entry of the Final Order with respect to the DIP Motion and,
thereafter, in such amounts as may be permitted by such Final Order; all
borrowings by SSCE shall be guaranteed by the other U.S. Debtors (other than
SMBI, Inc.) and SSC Canada, and all borrowings by SSC Canada shall be
guaranteed by all of the other Debtors.

 

(c)                                  Application
of DIP Proceeds.  The proceeds of
the DIP Facility (net of any amounts used to pay fees, costs and expenses under
the DIP Credit Agreement) shall be used, in each case in a manner consistent
with the terms and conditions of the DIP Financing Agreements, and in a manner
substantially consistent with the Budget solely for (i) working capital,
Letters of Credit and Capital Expenditures; (ii) other general corporate
purposes of the Debtors (including intercompany loans to the extent permitted
by the DIP Credit Agreement); (iii) upon entry of this Interim Order, the
refinancing in full or defeasance of Indebtedness outstanding under the
Receivables Securitization Programs; (iv) payment of any related
transaction costs, fees and expenses; and (v) the costs of administration
of the Cases; provided, however, that no more than US$100,000 of the
proceeds of the Loans or the DIP Collateral may be used by any statutory
committee of unsecured creditors to investigate, and by the monitor in the
Canadian Cases to review, the Pre-Petition Liens and claims of the Pre-Petition
Agent and the Pre-Petition Lenders.

 

(d)                                 Conditions
Precedent.  The DIP Secured
Parties shall have no obligation to make any loan or advance under the DIP
Credit Agreement during the Interim Period unless the conditions precedent to
make such loan under the DIP Credit Agreement have been satisfied in full or
waived in accordance with the DIP Credit Agreement.

 

17

 

(e)                                  Post-Petition
Liens.  Effective
immediately upon the execution of this Interim Order, the DIP Agents (as
provided in the DIP Credit Agreement and for the ratable benefit of the DIP Secured
Parties) are hereby granted the following security interests and liens (all
property identified in clauses (i)(a), (b) and (c), and (ii)(a), (b) and
(c) below being collectively referred to as the “DIP
Collateral”);  provided, however, that
no U.S. Debtor shall be required to pledge in excess of 65% of the capital
stock of its direct Foreign Subsidiaries (other than capital stock of SSC
Canada) or any of the capital stock of any indirect Foreign Subsidiaries (all such
liens and security interests granted to the DIP Agents, as provided in the DIP
Credit Agreement and for the ratable benefit of the DIP Secured Parties,
pursuant to this Order and the DIP Financing Agreements,  the “DIP Liens”):

 

(i)                                     With respect to
the DIP Obligations of the U.S. Debtors and SSC Canada:

 

(a)                                  Pursuant to
section 364(c)(2) of the Bankruptcy Code, the U.S. DIP Agent is hereby
granted (for the ratable benefit of the DIP Secured Parties) a perfected first
priority Lien on all unencumbered property of the U.S. Debtors and SSC Canada (including,
upon entry of the Final Order, any proceeds of Avoidance Actions) and on all
cash maintained in any Collateral Account and any investments of the funds
contained therein, provided that amounts in the Collateral
Accounts shall not be subject to the Carve Out or the CCAA Charges;

 

(b)                                 Pursuant to
section 364(c)(3) of the Bankruptcy Code, the U.S. DIP Agent (for the
ratable of the DIP Secured Parties) is hereby granted a perfected
junior Lien upon all property of the U.S. Debtors and SSC Canada that is
subject to valid and perfected and unavoidable Liens in existence on the
Petition Date or that is subject to valid Liens in existence on the Petition
Date that are perfected subsequent to the Petition Date as permitted by Section 546(b) of
the Bankruptcy Code (other than certain property that is subject to the Primed
Liens, which Primed Liens shall be primed by the liens to be granted to the
U.S. DIP Agent described in clause (c) below); and

 

(c)                                  Pursuant to
section 364(d)(1) of the Bankruptcy Code, the U.S. DIP Agent (for the
ratable of the DIP Secured Parties) is hereby granted a perfected
first priority, senior priming Lien on all property of the U.S. Debtors
and SSC Canada (including, without limitation, inventory,

 

18

 

receivables,
rights under license agreements, property, plant and equipment and the residual
interest of the U.S. Debtors and SSC Canada in any
Receivables Securitization Programs) that is subject to the existing liens
which secure (x) the obligations of the Debtors under or in connection
with the Pre-Petition Financing Agreement, and (y) other Liens,
obligations or indebtedness of the Debtors junior to the Pre-Petition Financing
Agreement (collectively, the “Primed Liens”),
which Primed Liens shall be primed by and made subject and subordinate to the
perfected first priority senior priming Liens to be granted to the U.S. DIP
Agent, which senior priming Liens in favor of the U.S. DIP Agent shall also
prime any Liens granted after the Petition Date to provide adequate protection
Liens in respect of any of the Primed Liens, but shall not prime (1) Non-Primed
Liens which secure the Calpine Debt (or any adequate protection liens on the
assets of Calpine granted to the holders of the Calpine debt) or (2) other
Non-Primed Liens solely to the extent such Non-Primed Liens secure claims in an
aggregate amount less than or equal to US$60,000,000 (see attached Exhibit A).

 

(ii)                                  With respect to
the DIP Obligations of the Canadian Guarantors relative to the Canadian
Term Loan and the Canadian Revolving Facility:

 

(a)                                  Pursuant to
section 364(c)(2) of the Bankruptcy Code, the Canadian DIP Agent is hereby
granted (for the ratable benefit of the DIP Secured Parties) a perfected first
priority Lien on all unencumbered property of the Canadian Guarantors
(including, upon entry of the Final Order, any proceeds of Avoidance Actions)
and on all cash maintained in any Collateral Account and any direct investments
of the funds contained therein, provided that amounts
in the Collateral Accounts shall not be subject to the Carve Out or the CCAA
Charges;

 

(b)                                 Pursuant to
section 364(c)(3) of the Bankruptcy Code, the Canadian DIP Agent (for the
ratable of the DIP Secured Parties) is hereby granted a perfected
junior Lien upon all property of the Canadian Guarantors that is subject to
valid and perfected and unavoidable Liens in existence on the Petition Date or
that is subject to valid Liens in existence on the Petition Date that are
perfected subsequent to the Petition Date as permitted by Section 546(b) of
the Bankruptcy Code (other than certain property that is subject to the Primed
Liens, which Primed Liens shall be primed by the liens to be granted to the
U.S. DIP Agent described in clause (c) below); and

 

(c)                                  Pursuant to
section 364(d)(1) of the Bankruptcy Code, the Canadian DIP Agent (for the
ratable of the DIP Secured Parties) is hereby granted a perfected
first priority, senior priming Lien on all property of the Canadian Guarantors
(including, without limitation, inventory,

 

19

 

receivables,
rights under license agreements, property, plant and equipment and the residual
interest of the Canadian Guarantors in any Receivables Securitization Programs)
that is subject to the Primed Liens,
which Primed Liens shall be primed by and made subject and subordinate to the
perfected first priority senior priming Liens to be granted to the U.S. DIP
Agent, which senior priming Liens in favor of the U.S. DIP Agent shall also
prime any Liens granted after the Petition Date to provide adequate protection
Liens in respect of any of the Primed Liens, but shall not prime (1) Non-Primed
Liens which secure the Calpine Debt or (2) other Non-Primed Liens solely
to the extent such Non-Primed Liens secure claims in an aggregate amount less
than or equal to US$60,000,000.

 

(f)                                    DIP
Lien Priority.  Solely to the
extent provided in the Credit Agreement and this Order, the DIP Liens are
subject only to the Non-Primed Liens and, in the event of the occurrence
and during the continuance of an Event of Default or Default or both, to the Carve
Out and the CCAA Charges.  The DIP
Liens granted by the U.S. Debtors (other than SMBI, Inc.)  and SSC Canada shall secure all of the DIP
Obligations, and the DIP Liens granted by the Canadian Debtors (other than SSC
Canada) and SMBI, Inc. shall secure only the DIP
Obligations of the Canadian Guarantors relative to the
Canadian Term Loan and the Canadian Revolving Facility.  The DIP Liens shall not be made subject to or
pari passu with any lien or security
interest (other than the Non-Primed Liens) by any court order heretofore or
hereafter entered in the Cases and shall be valid and enforceable against any
trustee appointed in the Cases, upon the conversion of any of the Cases to a
case under Chapter 7 of the Bankruptcy Code or in any other proceedings related
to any of the foregoing (any “Successor Cases”),
and/or upon the dismissal of any of the Cases. 
The DIP Liens shall not be subject to Sections 510, 549, 550 or 551 of
the Bankruptcy Code or the “equities of the case” exception of Section 552
of the Bankruptcy Code, or, if approved in the Final Order, Section 506(c) of
the Bankruptcy Code.  To avoid any doubt,
the liens securing the Pre-Petition Debt are to be subordinated to, and junior
to, the liens and claims of the DIP Secured Parties.

 

20

 

(g)                                 Enforceable
Obligations.  The DIP
Financing Agreements shall constitute and evidence the valid and binding
obligations of the Debtors, which obligations shall be enforceable against the
Debtors, their estates and any successors thereto and their creditors, in
accordance with their terms.

 

(h)                                 Protection
of DIP Secured Parties and Other Rights.  From and after the Petition Date,
the Debtors shall use the proceeds of the extensions of credit under the DIP
Facility only for the purposes specifically set forth in the DIP Credit
Agreement and this Interim Order and in substantial compliance with the Budget.

 

(i)                                     Superpriority
Administrative Claim Status.

 

(i)                                     The DIP
Obligations of the U.S. Debtors and SSC Canada, pursuant to Section 364(c)(1) of
the Bankruptcy Code, shall at all times constitute an allowed
Superpriority Claim (the “U.S. DIP Superpriority
Claim”) and be payable from and have recourse to all
pre-petition and post-petition property of the estates of the U.S. Debtors
and SSC Canada and all proceeds thereof, subject to the Carve-Out
and, in the case of SSC Canada, the CCAA Charges.

 

(ii)                                  The DIP
Obligations of the Canadian Guarantors relative to the Canadian Term Loan and
the Canadian Revolving Facility, pursuant to Section 364(c)(1) of
the Bankruptcy Code, shall at all times constitute an allowed
Superpriority Claim (the “Canada DIP Superpriority
Claim” and, together with the U.S. DIP Superpriority Claim and the
DIP Liens, the “DIP Protections”) and be payable
from and have recourse to all pre-petition and post-petition property of the
estates of the Canadian Guarantors and all proceeds thereof, subject to the
CCAA Charges and, in the case of SSC Canada, the Carve-Out.

 

21

 

(iii)                               Other than as
provided in the Credit Agreement and this Order with respect to the Carve Out
and the CCAA Charges, no costs or expenses of administration, including,
without limitation, professional fees allowed and payable under Bankruptcy Code
sections 328, 330, and 331, or otherwise, that have been or may be incurred in
these proceedings, or in any Successor Cases, and no priority claims are, or
will be, senior to, prior to or on a parity with the DIP Protections or the DIP
Obligations, or with any other claims of the DIP Secured Parties arising
hereunder.

 

3.                                       Authorization
to Use Cash Collateral and Proceeds of DIP Financing Agreement.

 

Pursuant
to the terms and conditions of this Interim Order, the DIP Facility and the DIP
Credit Agreement, and in a manner substantially consistent with the Budget (as
the same may be modified, supplemented or updated from time to time consistent
with the terms and conditions of the DIP Credit Agreement), (a) each
Debtor is authorized to use the advances under the DIP Credit Agreement from
and after the Closing Date, and (b) each Debtor is authorized to use all
Cash Collateral of the Pre-Petition Secured Parties, and the Pre-Petition
Secured Parties are directed promptly to turn over to the Debtors all Cash
Collateral received or held by them, provided that the Pre-Petition
Secured Parties are granted adequate protection as hereinafter set forth.  The Debtors’ right to use the advances under
the DIP Credit Agreement shall terminate upon notice being provided by the DIP
Agents to the Debtors (i) that a DIP Order Event of Default (as defined
below) has occurred and is continuing, or (ii) of the termination of the
DIP Credit Agreement.  The Debtors’ right
to use the Cash Collateral shall terminate upon notice being provided by the
DIP Agents to the Debtors (i) that a DIP Order Event of Default (as
defined below) has occurred and is continuing, and (ii) of the termination
of the DIP Credit 

 

22

 

Agreement.  Nothing in this Interim Order shall authorize
the disposition of any assets of the Debtors or their estates outside the
ordinary course of business or other proceeds resulting therefrom, except as
permitted in the DIP Facility and the DIP Credit Agreement (subject to any required
Court approval).

 

4.                                       Adequate
Protection for Pre-Petition Secured Parties.  As adequate protection for
the interest of the Pre-Petition Secured Parties in the Pre-Petition Collateral
(including Cash Collateral) on account of the granting of the DIP Liens,
subordination to the Carve Out, the Debtors’ use of Collateral, including Cash
Collateral, and other decline in value arising out of the automatic stay or the
Debtors’ use, sale, or lease of the Pre-Petition Collateral, or otherwise, the
Pre-Petition Secured Parties shall receive adequate protection as follows:

 

(a)                                  Pre-Petition
Replacement Liens.  Solely to the
extent of the diminution of the value of the interest of the Pre-Petition
Secured Parties in the Pre-Petition Collateral, the Pre-Petition Secured
Parties shall have, subject to the terms and conditions set forth below,
pursuant to sections 361, 363(e) and 364(d) of the Bankruptcy Code,
junior replacement security interests in and liens upon all of the property of
the U.S. Debtors (including, upon entry of the Final Order, any
proceeds of Avoidance Actions) (the “Pre-Petition
Replacement Liens”) which security interests and liens shall be
junior to the DIP Liens, the Priority Liens (but only with respect to property
that was encumbered by Priority Liens as of the Petition Date), the Non-Primed
Liens which secure the Calpine Debt (or any adequate protection liens on the
assets of Calpine granted to the holders of the Calpine debt) and the Carve Out
as provided herein.

 

(b)                                 Pre-Petition
Superpriority Claim.  Solely to the
extent of the diminution of the value of the interests of the Pre-Petition
Secured Parties in the Pre-Petition Collateral, the Pre-Petition Secured
Parties shall have, subject to the payment of the Carve Out, an allowed 

 

23

 

superpriority
administrative expense claim (the “Pre-Petition
Superpriority Claim”) as provided for in section 507(b) of the
Bankruptcy Code, immediately junior to the claims under section 364(c)(1) of
the Bankruptcy Code held by the U.S. DIP Agent and the DIP Lenders and payable
from all property of the U.S. Debtors; provided, however, that
the Pre-Petition Agents and the Pre-Petition Secured Parties shall not receive
or retain any payments, property or other amounts in respect of the
superpriority claims under section 507(b) of the Bankruptcy Code unless
and until the DIP Obligations have indefeasibly been paid in cash in full.  The Debtors shall also provide such
information, reports, and other information as reasonably requested from time
to time by the Pre-Petition Agents.

 

(c)                                  Adequate
Protection Payment.  The
Pre-Petition Agents shall receive from the U.S. Debtors or SSC Canada adequate
protection in the form of (i) following the closing of the DIP Facility,
immediate cash payment of all accrued and unpaid interest (including any
pre-petition interest) under the Pre-Petition Credit Agreement and letter of
credit fees at the non-default contract rate applicable on the Petition Date as
provided for in the Pre-Petition Financing Agreements, and all other accrued
and unpaid fees and disbursements (including, but not limited to, fees and
expenses owed to the Pre-Petition Agents and incurred prior to the Petition
Date), (ii) current cash payments of all fees and expenses payable to the
Pre-Petition Agents under the Pre-Petition Financing Agreements, including, but
not limited to, the reasonable fees and disbursements of counsel, financial and
other consultants for the Pre-Petition Agents (including, but not limited to,
such fees and disbursements incurred prior to the Petition Date), and (iii) current
cash payments of all accrued but unpaid interest on the Pre-Petition Debt, and
letter of credit and other fees, in each case at the non-default contract rate
applicable on the Petition Date (including LIBOR pricing options) under the
Pre-Petition Financing Agreements, 

 

24

 

provided that, without
prejudice to the rights of any other party to contest such assertion, the Pre-Petition
Secured Parties reserve their rights to assert claims for the payment of
additional interest calculated at any other applicable rate of interest
(including, without limitation, default rates), or on any other basis, provided
for in the Pre-Petition Financing Agreements (the “Adequate
Protection Payments”); provided, however, that SSC
Canada’s obligations with respect to the Adequate Protections Payments shall be
limited to those amounts relating to the Pre-Petition Canadian Obligations.

 

5.                                       Post-Petition
Lien Perfection.  This Interim
Order shall be sufficient and conclusive evidence of the validity, perfection,
and priority of the DIP Liens and the Pre-Petition Replacement Liens without
the necessity of filing or recording any financing statement, deed of trust,
mortgage, or other instrument or document which may otherwise be required under
the law of any jurisdiction or the taking of any other action to validate or
perfect the DIP Liens and the Pre-Petition Replacement Liens or to entitle the
DIP Liens and the Pre-Petition Replacement Liens to the priorities granted
herein.  Notwithstanding the foregoing,
the DIP Secured Parties and the Pre-Petition Secured Parties (with respect to
the Pre-Petition Replacement Liens) may, each in their sole discretion, file
such financing statements, mortgages, security agreements, notices of liens and
other similar documents, and is hereby granted relief from the automatic stay
of section 362 of the Bankruptcy Code in order to do so, and all such financing
statements, mortgages, security agreements, notices and other agreements or
documents shall be deemed to have been filed or recorded at the time and on the
date of the commencement of the Cases. 
The Debtors shall execute and deliver to the DIP Secured Parties and the
Pre-Petition Secured Parties all such financing statements, mortgages, notices
and other documents as the DIP Secured Parties and the Pre-Petition Secured
Parties may reasonably request to evidence, confirm, 

 

25

 

validate
or perfect, or to insure the contemplated priority of, the DIP Liens and the
Pre-Petition Replacement Liens granted pursuant hereto.  The DIP Agents, in their discretion, may file
a photocopy of this Interim Order as a financing statement with any recording
officer designated to file financing statements or with any registry of deeds
or similar office in any jurisdiction in which any Debtor has real or personal
property, and in such event, the subject filing or recording officer shall be authorized
to file or record such copy of this Interim Order.

 

6.                                       Reservation
of Certain Third Party Rights and Bar of Challenges and Claims.  Nothing in this Interim
Order or the DIP Credit Agreement shall prejudice whatever rights any official
committee(s) or any other party in interest (other than the Debtors) may
have (a) to object to or challenge the findings herein, including, but not
limited to, those in relation to (i) the validity, extent, perfection or
priority of the mortgage, security interests and liens of the Pre-Petition
Secured Parties in and to the Pre-Petition Collateral, or (ii) the
validity, allowability, priority, status or amount of the Pre-Petition Debt, or
(b) to bring suit against any of the Pre-Petition Secured Parties in
connection with or related to the Pre-Petition Debt, or the actions or
inactions of any of the Pre-Petition Secured Parties arising out of or related
to the Pre-Petition Debt or otherwise; provided, however, that,
unless any official committee(s) or any other party in interest obtains
the requisite standing to commence, and commences, a contested matter or
adversary proceeding raising such objection or challenge, including without
limitation any claim against the Pre-Petition Secured Parties in the nature of
a setoff, counterclaim or defense to the Pre-Petition Debt (including but not
limited to, those under sections 506, 544, 547, 548, 549, 550 and/or 552 of the
Bankruptcy Code or by way of suit against any of the Pre-Petition Secured
Parties), by the later of (a) 60 days following the appointment of the
first official committee of unsecured creditors, or (b) if no official
committee of unsecured creditors is appointed, 75 days 

 

26

 

following
entry of the Final Order (collectively, (a) and (b) shall be referred
to as the “Challenge Period,” and the date that
is the next calendar day after the termination of the Challenge Period, in the
event that no objection or challenge is raised during the Challenge Period,
shall be referred to as the “Challenge Period
Termination Date”), upon the Challenge Period Termination Date, any
and all such challenges and objections by any party (including, without
limitation, any official creditors’ committee(s), any Chapter 11 or Chapter 7
trustee appointed herein or in any Successor Case, and any other party in
interest) shall be deemed to be forever waived and barred, and the Pre-Petition
Debt shall be deemed to be an allowed claim within the meaning of section 506
of the Bankruptcy Code for all purposes in connection with the Cases and the
Debtors’ Stipulations shall be binding on all creditors, interest holders and
parties in interest.  To the extent any
such objection or complaint is filed, the findings herein shall nonetheless
remain binding and preclusive on any official committee and on any other person
or entity, except to the extent that such assertions were expressly challenged
in such objection or complaint.

 

7.                                       Carve
Out.  Subject to the
terms and conditions contained in this paragraph 7, the DIP Liens and DIP
Superpriority Claims on the one hand, and the Pre-Petition Liens, the
Pre-Petition Replacement Liens and the Pre-Petition Superpriority Claims, on
the other, are subordinate only to the Non-Primed Liens and the Priority Liens
(but only with respect to property that was encumbered by Priority Liens as of
the Petition Date), respectively, and the following: in the event of the
occurrence and during the continuance of an Event of Default or a Default or
both:

 

	
  (x)

  	
   

  	
  with respect to U.S. Loan
  Parties and their Cases and assets, (i) the payment of allowed and
  unpaid professional fees and disbursements incurred by (A) the U.S. Loan
  Parties and (B) any 

  

 

27

 

statutory
committees appointed in the Cases of the U.S. Loan Parties, in an aggregate
amount of items (A) and (B) not in excess of the lesser of (I) US$4,000,000
(plus all unpaid professional fees and disbursements reported on the Borrowing
Base Certificate delivered immediately prior to the occurrence of such Default
or Event of Default, to the extent such fees and expense are subsequently
allowed by the Bankruptcy Court), and (II) US$6,500,000, and (ii) the
payment of fees pursuant to 28 U.S.C. § 1930 and to the Clerk of the Bankruptcy
Court ((i) and (ii), collectively, the “Carve-Out”);

 

(y)                                 the CCAA DIP
Lenders’ Charge in the assets of the Canadian Loan Parties in the Canadian
Cases will be subject to the Canadian Court ordered administration charge in an
aggregate amount not in excess of US$1,000,000 (the “Administration
Charge”) for the payment of (a) allowed and unpaid
professional fees and disbursements incurred by professionals retained by the
Canadian Loan Parties and (b) allowed and unpaid professional fees and
disbursements of the monitor in the Canadian Cases including allowed and unpaid
legal fees and expenses of its counsel (and including any allowed and unpaid
professional fees and disbursements incurred by the parties referred to in (a) and
(b), prior to the occurrence of such Event of Default); and

 

28

 

(z)                                   the CCAA DIP
Lenders’ Charge in the assets of the Canadian Loan Parties in the Canadian
Cases will also be subject to the Canadian Court ordered directors charge in an
amount not exceeding US$8,600,000 (the “Directors Charge”,
and, together with the Administration Charge, the “CCAA
Charges”), securing the Canadian Loan Parties’ obligation to
indemnify the officers and directors of the Canadian Loan Parties for personal
liability which may arise from non-payment by the Canadian Loan Parties of the
following (which shall be separately identified on the most recent Borrowing
Base Certificate): (a) all outstanding and future wages, salaries,
employee and pension benefits, vacation pay, bonuses and expenses payable on or
after the Filing Date, in each case incurred in the ordinary course of business
and consistent with existing compensation policies and arrangements; (b) any
statutory deemed trust amounts in favour of the Crown in right of Canada or of
any Province thereof or any other taxation authority which are required to be
deducted from employees’ wages, including, without limitation, amounts in
respect of (i) employment insurance, (ii) Canada Pension Plan, (iii) Quebec
Pension Plan, and (iv) income taxes; (c) all goods and services or
other applicable sales taxes required to be remitted by the Canadian Loan
Parties in connection with the sale of goods and services by the Canadian Loan
Parties, but only where such sales taxes are accrued or collected after the 

 

29

 

Filing
Date, or where such sales taxes were accrued or collected prior to the Filing
Date but are not required to be remitted until on or after the Filing Date; and
(d) any amount payable to the Crown in right of Canada or of any Province
thereof or any political subdivision thereof or any other taxation authority in
respect of municipal realty, municipal business or other taxes, assessments or
levies of any nature or kind which are entitled at law to be paid in priority
to claims of secured creditors and which are attributable to or in respect of
the carrying on of the business by the Canadian Loan Parties;

 

provided that, subject
to paragraph 2(c) above, no portion of the Carve-Out or the Administration
Charge shall be utilized for the payment of professional fees and disbursements
incurred in connection with any challenge to the amount, extent, priority,
validity, perfection or enforcement of the Indebtedness of the Loan Parties
owed to the parties primed by the priming Liens or to the collateral securing
such Indebtedness or any other action against such parties.  Amounts in the Collateral Accounts shall not
be subject to the Carve-Out, Administration Charge, or Directors Charge.  Notwithstanding the foregoing, so long as no
Default or Event of Default shall have occurred and be continuing, the Loan
Parties shall be permitted to pay compensation and reimbursement of expenses
allowed and payable under 11 U.S.C. §§ 328, 330 and 331, or as allowed and
payable pursuant to orders of the Canadian Court, as the same may be due and
payable, and any compensation and expenses previously paid, or accrued but
unpaid, prior to the occurrence of such Default or Event of Default shall not
reduce the Carve-Out or the Administration Charge.

 

30

 

8.                                       Payment
of Compensation.  Nothing herein
shall be construed as consent to the allowance of any professional fees or
expenses of any of the Debtors, any official committee or of any person or
shall affect the right of the DIP Secured Parties or the Pre-Petition Agents to
object to the allowance and payment of such fees and expenses.

 

9.                                       Section 506(c) Claims.  Subject to entry of the
Final Order, as a further condition of the DIP Facility and any obligation of
the DIP Secured Parties to make credit extensions pursuant to the DIP Financing
Agreements, the Debtors (and any successors thereto or any representatives
thereof, including any trustees appointed in the Cases or any Successor Cases
(defined below)) shall be deemed to have waived any rights, benefits, or causes
of action under section 506(c) of the Bankruptcy Code as they may relate
to or be asserted against the DIP Agents, the DIP Secured Parties, the DIP
Liens, the Pre-Petition Agents, the Pre-Petition Secured Parties, and the
Pre-Petition Liens. Nothing contained in this Interim Order or in the Final
Order shall be deemed a consent by the Pre-Petition Secured Parties or the DIP
Secured Parties to any charge, lien, assessment or claim against the DIP
Collateral or the Pre-Petition Collateral under Section 506(c) of the
Bankruptcy Code or otherwise.

 

10.                                 Collateral
Rights.  Unless the DIP
Agents have provided their prior written consent or all DIP Obligations have
been indefeasibly paid in full in cash (or will be indefeasibly paid in full in
cash upon entry of a final, non-appealable order approving indebtedness
described in subparagraph (a) below or other arrangements for payment of
the DIP Obligations satisfactory to the DIP Agents have been made) and all
Commitments have terminated, there shall not be entered in these proceedings,
or in any Successor Case, any order which authorizes any of the following:

 

31

 

(a)                                  the
obtaining of credit or the incurring of indebtedness that is secured by a
security, mortgage, or collateral interest or other lien on all or any portion
of the DIP Collateral and/or entitled to priority administrative status which
is superior to or pari passu with those granted
pursuant to this Interim Order to the DIP Secured Parties; or

 

(b)                                 the
use of Cash Collateral for any purpose other than to indefeasibly pay in full
in cash the DIP Obligations or as otherwise permitted in the DIP Credit Agreement.

 

11.                                 Proceeds of Subsequent Financing.  Without limiting the provisions and
protections of paragraph 10 above, if at any time prior to the indefeasible
repayment in full in cash of all DIP Obligations and the termination of the DIP
Secured Parties’ obligations to make loans and advances under the DIP Facility
(including subsequent to the confirmation of any Chapter 11 plan or plans (the “Plan”) with respect to the Debtors), the Debtors’ estates,
any trustee, any examiner with enlarged powers or any responsible officer
subsequently appointed, shall obtain credit or incur debt pursuant to
Bankruptcy Code Sections 364(b), 364(c) or 364(d) in violation of the
DIP Credit Agreement, then all of the cash proceeds derived from such credit or
debt and all Cash Collateral shall immediately be turned over to the DIP Agents
in reduction of the DIP Obligations.

 

12.                                 Commitment Termination Date.  All (a) DIP Obligations shall be
immediately due and payable, and (b) authority to use the proceeds of the
DIP Financing Agreements and to use Cash Collateral shall cease, both on the
date that is the earliest to occur of:  (i) the Maturity Date, (ii) the Effective
Date, (iii) the forty-fifth (45th) day after the
entry of this Order if the Final Order has not been entered prior to such
forty-fifth day, and (iv) the acceleration of the Loans and the
termination of the Revolving Commitments in accordance with the DIP Credit
Agreement (the “Commitment Termination
Date”).

 

32

 

13.                                 Payment from Proceeds of DIP Collateral.  Until the DIP Obligations have been
indefeasibly paid in full in cash (or other written arrangements satisfactory
to the DIP Agents for payment of the DIP Obligations have been made in the DIP
Credit Agreement or otherwise), all products and proceeds of the DIP Collateral
shall be (i) remitted to accounts maintained at the DIP Agents in
accordance with the Credit Agreement and (ii) applied by the DIP Agents to
the outstanding DIP Obligations as and to the extent set forth in DIP Credit
Agreement.

 

14.                                 Disposition of DIP Collateral.  The Debtors shall not sell, transfer,
lease, encumber or otherwise dispose of any portion of the DIP Collateral,
without the prior written consent of the requisite DIP Secured Parties required
under the DIP Credit Agreement (and no such consent shall be implied, from any
other action, inaction or acquiescence by the DIP Secured Parties or an order
of this Court), except for sales of Inventory in the ordinary course of
business or except as otherwise provided for in the DIP Credit Agreement and
this Interim Order and approved by the Bankruptcy Court to the extent required
under applicable bankruptcy law.

 

15.                                 Events of Default.  The occurrence of the Commitment
Termination Date or, if sooner, the DIP Agents’ furnishing the Debtors with
notice of the occurrence of any Event of Default (as defined in the DIP Credit
Agreement) shall constitute a “DIP Order Event of
Default”.  Unless and until
the DIP Obligations are indefeasibly paid in full in cash (or other
arrangements for payment of the DIP Obligations satisfactory to the DIP Agents
have been made) and all Commitments have irrevocably terminated, all Letters of
Credit have been cash collateralized as required by the DIP Credit Agreement, and
all DIP Obligations which survive termination have been cash collateralized to
the reasonable satisfaction of the DIP Agents, the protections afforded to the
Pre-Petition Secured Parties and the DIP Secured Parties pursuant to 

 

33

 

this Interim Order and under the DIP Credit Agreement, and any actions
taken pursuant thereto, shall survive the entry of any order confirming a Plan
or converting these cases into a Successor Case, and the DIP Liens, the DIP Super-Priority
Claim, the Pre-Petition Replacement Liens and the Pre-Petition Superpriority
Claim shall continue in these proceedings and in any Successor Case, and such
DIP Liens, DIP Super-Priority Claim, Pre-Petition Replacement Liens and the
Pre-Petition Superpriority Claim shall maintain their respective priority as
provided by this Interim Order.

 

16.                                 Rights and Remedies Upon DIP Order Event of
Default.

 

(a)                                  Any
automatic stay otherwise applicable to the DIP Secured Parties is hereby
modified so that (i) after the occurrence of any DIP Order Event of
Default and (ii) at any time thereafter during the continuance of such DIP
Order Event of Default, upon five (5) business days prior written notice
of such occurrence, in each case given to each of the Debtors, counsel to the
Debtors, counsel for any creditors’ committee appointed in the Cases, and the
U.S. Trustee, the DIP Secured Parties shall be entitled to exercise their
rights and remedies in accordance with the DIP Financing Agreements.  Immediately following the giving of notice by
the DIP Agents of the occurrence of a DIP Order Event of Default:  (i) the Debtors shall continue to
deliver and cause the delivery of the proceeds of DIP Collateral to the DIP
Agents as provided in the DIP Credit Agreement and this Interim Order; (ii) the
DIP Agents shall continue to apply such proceeds in accordance with the
provisions of this Interim Order and of the DIP Credit Agreement; (iii) the
Debtors shall have no right to use any of such proceeds, nor any other Cash
Collateral other than towards the satisfaction of the DIP Obligations and the
Carve Out; and (iv) any obligation otherwise imposed on the DIP Agents or
the DIP Secured Parties to provide any loan or advance to the Debtors pursuant
to the DIP Facility shall be suspended. 
Following the 

 

34

 

giving of written notice by the DIP Agents of the occurrence of a DIP
Order Event of Default, the Debtors and any creditors’ committee appointed in
the Cases shall be entitled to an emergency hearing before this Court solely
for the purpose of contesting whether a DIP Order Event of Default has
occurred.  If the Debtors or any such
creditors’ committee do not contest the right of the DIP Secured Parties to
exercise their remedies based upon whether a DIP Order Event of Default has
occurred within such time period, or if the Debtors or any such committee do
timely contest the occurrence of a DIP Order Event of Default and the
Bankruptcy Court after notice and hearing declines to stay the enforcement
thereof, the automatic stay, as to the DIP Secured Parties, shall automatically
terminate at the end of such notice period.

 

(b)                                 Subject to the provisions of paragraph 16(a),
upon the occurrence of a DIP Order Event of Default, the DIP Agents and DIP
Lenders are authorized to exercise their remedies and proceed under or pursuant
to the DIP Financing Agreements.  All
proceeds realized from any of the foregoing shall be turned over to the DIP Agents
for application to the DIP Obligations under, and in accordance with the
provisions of, the DIP Financing Agreements and this Interim Order; provided,
however, that, in the event of the liquidation of the Borrowers’ and other
Debtors’ estates after the Commitment Termination Date, the amount of the
Carve-Out shall be funded into a segregated account exclusively from Cash
Collateral received by the DIP Agents subsequent to the Commitment Termination
Date prior to the distribution of any such Cash Collateral to any other parties
in interest.

 

(c)                                  The
automatic stay imposed under Bankruptcy Code section 362(a) is hereby
modified pursuant to the terms of the DIP Credit Agreement as necessary to (1) permit
the Debtors to grant the Pre-Petition Replacement Liens and the DIP Liens and
to incur all liabilities and obligations to the Pre-Petition Secured Parties
and the DIP Secured Parties under 

 

35

 

the DIP Financing Agreements, the DIP Facility and this Interim Order,
and (2) authorize the DIP Secured Parties and the Pre-Petition Secured
Parties to retain and apply payments hereunder.

 

(d)                                 Nothing
included herein shall prejudice, impair, or otherwise affect Pre-Petition
Secured Parties’ or DIP Secured Parties’ rights to seek any other or
supplemental relief in respect of the Debtors (including other or additional
adequate protection) nor the DIP Agents’ or DIP Lenders’ rights, as provided in
the DIP Credit Agreement, to suspend or terminate the making of loans under the
DIP Credit Agreement.

 

17.                                 Proofs of Claim.  The Pre-Petition Secured Parties and the
DIP Secured Parties will not be required to file proofs of claim in the Cases
or in any Successor Case.

 

18.                                 Other Rights and Obligations.

 

(a)                                  Good Faith Under Section 364(e) of the
Bankruptcy Code; No Modification or Stay of this Interim Order.
Based on the findings set forth in this Interim Order and in accordance with
section 364(e) of the Bankruptcy Code, which is applicable to the DIP
Facility contemplated by this Interim Order, in the event any or all of the
provisions of this Interim Order are hereafter modified, amended or vacated by
a subsequent order of this or any other Court, the DIP Secured Parties are
entitled to the protections provided in section 364(e) of the Bankruptcy
Code and, no such appeal, modification, amendment or vacation shall affect the
validity and enforceability of any advances made hereunder or the liens or
priority authorized or created hereby. 
Notwithstanding any such modification, amendment or vacation, any claim
granted to the DIP Secured Parties hereunder arising prior to the effective
date of such modification, amendment or vacation of any DIP Protections granted
to the DIP Secured Parties shall be governed in all respects by the original
provisions of this Interim Order, and the DIP Secured Parties shall be entitled
to all of the rights, remedies, privileges and benefits, including 

 

36

 

the DIP Protections granted herein, with respect to any such
claim.  Since the loans made pursuant to
the DIP Credit Agreement are made in reliance on this Interim Order, the
obligations owed the DIP Secured Parties prior to the effective date of any
stay, modification or vacation of this Interim Order shall not, as a result of
any subsequent order in the Cases or in any Successor Cases, be subordinated,
lose their lien priority or superpriority administrative expense claim status,
or be deprived of the benefit of the status of the liens and claims granted to
the DIP Secured Parties under this Interim Order and/or the DIP Financing
Agreements.

 

(b)                                 Expenses.  As provided in the DIP Financing
Agreements, the Debtors will pay all
reasonable expenses incurred by each DIP Agent and the Co-Lead Arrangers
(including, without limitation, the reasonable fees and disbursements of Bryan
Cave LLP and Richards Layton & Finger, counsel for the DIP Agent, any
other local counsel that such DIP Agent shall retain (including Canadian
counsel) and any internal or third-party appraisers, consultants and auditors advising
such DIP Agent and the Bookrunners and their counsel) in connection with the
preparation, execution, delivery and administration of the DIP Financing
Agreements, whether or not the transactions contemplated hereby are
consummated.  Payment of such fees shall
not be subject to allowance by the Bankruptcy Court.  Professionals for the DIP Secured Parties or
Pre-Petition Secured Parties shall not be required to comply with the U.S.
Trustee fee guidelines.  Copies of
invoices submitted to the Debtors by the professionals for the DIP Secured
Parties or the Pre-Petition Secured Parties shall be forwarded by the Debtors
to the U.S. Trustee, counsel for any Official Committee of Unsecured Creditors,
and such other parties as the Court may direct (but this Court shall resolve
any dispute as to the reasonableness of any fees and expenses accrued from and
after the date of the Interim Order).

 

37

 

(c)                                  Binding Effect.  The provisions of this Interim Order
shall be binding upon and inure to the benefit of the DIP Secured Parties and
the Pre-Petition Secured Parties, the Debtors, and their respective successors
and assigns (including any trustee or other fiduciary hereinafter appointed as
a legal representative of the Debtors or with respect to the property of the
estates of the Debtors) whether in the Cases, in any Successor Cases, or upon
dismissal of any such Chapter 11 or Chapter 7 Case.

 

(d)                                 No Waiver.  The failure of the Pre-Petition Secured
Parties and the DIP Secured Parties to seek relief or otherwise exercise their
rights and remedies under the DIP Financing Agreements, the DIP Facility, this
Interim Order or otherwise, as applicable, shall not constitute a waiver of any
of the Pre-Petition Secured Parties’ and the DIP Secured Parties’ rights
hereunder, thereunder, or otherwise. 
Notwithstanding anything herein, the entry of this Interim Order is
without prejudice to, and does not constitute a waiver of, expressly or implicitly,
or otherwise impair the Pre-Petition Secured Parties or the DIP Secured Parties
under the Bankruptcy Code or under non-bankruptcy law, including without
limitation, the rights of the Pre-Petition Secured Parties and the DIP Secured
Parties to (i) request conversion of the Cases to cases under Chapter 7,
dismissal of the Cases, or the appointment of a trustee in the Cases, or (ii) propose,
subject to the provisions of section 1121 of the Bankruptcy Code, a Plan, or (iii) exercise
any of the rights, claims or privileges (whether legal, equitable or otherwise)
of the DIP Secured Parties or the Pre-Petition Secured Parties.

 

(e)                                  No Third Party Rights.  Except as explicitly provided for herein,
this Interim Order does not create any rights for the benefit of any third
party, creditor, equity holder or any direct, indirect, or incidental
beneficiary.

 

38

 

(f)                                    No Marshaling.  Neither the DIP Secured Parties nor the
Pre-Petition Secured Parties shall be subject to the equitable doctrine of
“marshaling” or any other similar doctrine with respect to any of the DIP
Collateral or the Pre-Petition Collateral, as applicable.

 

(g)                                 Section 552(b).  The DIP Secured Parties and the
Pre-Petition Secured Parties shall each be entitled to all of the rights and
benefits of section 552(b) of the Bankruptcy Code and the “equities of the
case” exception under section 552(b) of the Bankruptcy Code shall not
apply to the DIP Secured Parties or the Pre-Petition Secured Parties with
respect to proceeds, product, offspring or profits of any of the Pre-Petition
Collateral or the DIP Collateral.

 

(h)                                 Amendment.  The Debtors and the DIP Agents may amend,
modify, supplement or waive any provision of the DIP Financing Agreements
without further approval of the Court, unless such amendment, modification,
supplement or waiver (i) increases the interest rate (other than as a
result of the imposition of the default rate), (ii) increases the
Commitments of the DIP Lenders under the DIP Financing Agreements, or (iii) changes
the maturity date.  Except as otherwise
provided herein, no waiver, modification, or amendment of any of the provisions
hereof shall be effective unless set forth in writing, signed by on behalf of
all the Debtors and the DIP Agents (after having obtained the approval of the
DIP Secured Parties as provided in the DIP Financing Agreements) and approved
by the Bankruptcy Court.

 

(i)                                     Survival of Interim Order.  The provisions of this Interim Order and
any actions taken pursuant hereto shall survive entry of any order which may be
entered (i) confirming any Plan in the Cases, (ii) converting any of
the Cases to a case under Chapter 7 of the Bankruptcy Code, or (iii) to
the extent authorized by applicable law, dismissing any of the Cases, (iv) withdrawing
of the reference of any of the Cases from this Court, or (v) providing for
abstention from handling or retaining of jurisdiction of any of the Cases in
this Court.  The terms 

 

39

 

and provisions of this Interim Order, including the DIP Protections
granted pursuant to this Interim Order and the DIP Financing Agreements and any
protections granted the Pre-Petition Secured Parties, shall continue in full
force and effect notwithstanding the entry of such order, and such DIP Protections
and protections for the Pre-Petition Secured Parties shall maintain their
priority as provided by this Interim Order until all the obligations of the
Debtors to the DIP Lenders pursuant to the DIP Financing Agreements and the
Pre-Petition Debt has been indefeasibly paid in full and discharged (such
payment being without prejudice to any terms or provisions contained in the DIP
Facility which survive such discharge by their terms).  The DIP Obligations shall not be discharged
by the entry of an order confirming a Plan, the Debtors having waived such
discharge pursuant to section 1141(d)(4) of the Bankruptcy Code.

 

(j)                                     Inconsistency.  In the event of any inconsistency between
the terms and conditions of the DIP Financing Agreements and of this Interim Order,
the provisions of this Interim Order shall govern and control.

 

(k)                                  Enforceability.  This Interim Order shall constitute
findings of fact and conclusions of law pursuant to the Bankruptcy Rule 7052
and shall take effect and be fully enforceable nunc pro
tunc to the Petition Date immediately upon execution hereof.

 

(1)                                  Objections Overruled.  All objections to the DIP Motion, to the
extent not withdrawn or resolved, are hereby overruled.

 

(m)                               No Waivers or Modification of Interim Order.  The Debtors irrevocably waive any right
to seek any modification or extension of this Interim Order without the prior
written consent of the DIP Agents and the Pre-Petition Agents and no such
consent shall be implied by any other action, inaction or acquiescence of the DIP
Agents and the Pre-Petition Agents.

 

40

 

(n)                                 Waiver of any Applicable Stay.  Any applicable stay (including, without
limitation, under Bankruptcy Rule 6004(h)) is hereby waived and shall not
apply to this Interim Order.

 

19.                                 Authorization to Use DIP Financing to Make A
Capital Contribution to Stone Receivables LLC in order to Redeem Securitization
Notes and Reconvey The Receivables.

 

(a)                                  SSCE
is authorized to use proceeds of advances under the DIP Credit Agreement and
Cash Collateral to make a capital contribution to Stone Receivables LLC (“SRC”) in order to consummate the transactions described in
this Paragraph 19.  Those proceeds and
Cash Collateral shall be utilized by SRC to make a capital contribution to SSCE
Funding, LLC (the “Issuer”) for
redemption of its Series 2004-1 Notes in accordance with Section 4.10(b) of
the Indenture Supplement (as hereinafter defined) and the terms of this Order.

 

(b)                                 SSCE
will make a capital contribution to SRC, and SRC will simultaneously make a
capital contribution to the Issuer to provide the Issuer with funds necessary
to pay the Redemption Price pursuant to that certain Series 2004-1
Indenture Supplement (the “Indenture Supplement”)
to the Master Indenture (the Indenture Supplement and the Master Indenture are
together, the “Indenture”), dated as of November 23,
2004, between the Issuer and Deutsche Bank Trust Company Americas as indenture
trustee (the “Indenture Trustee”).  To the extent any interest rates are yet to
be determined in connection with the Redemption Price and amounts are to be
estimated, SSCE shall (I) determine the LIBOR rate at 10.00% per annum
(the “Estimated Rate”) for the period from February 17,
2009 to March 16, 2009, (II) enter into a redemption side letter in a
form acceptable to SSCE as Debtor, SRC, the Issuer, the Indenture Trustee, and
the U.S. DIP Agent (the “Redemption Letter”)
and (III) use proceeds of the DIP Credit Agreement and Cash Collateral or
any other 

 

41

 

funds available to SSCE to make a capital contribution to SRC, and SRC
will simultaneously make a capital contribution to the Issuer to purchase a
derivative from a counterparty having short term ratings no lower than P-1 and
A-1 from Moody’s Investors Service and Standard & Poor’s Corp.,
respectively (the “Derivative”)
to pay any shortfalls with respect to the Redemption Price to be determined in
accordance with the Redemption Letter (hereinafter, the “Shortfall
Amount” as it relates solely to Clause (III)). Any such Shortfall
Amount shall be paid by the Derivative counterparty to the Trustee. The Issuer
shall simultaneously deposit the Redemption Price (after taking into account
the Estimated Rate) into the Collection Account for the benefit of the Series 2004-1
Noteholders.  Thereafter, the Indenture
Trustee shall make payments to the Series 2004-1 Noteholders in accordance
with the Indenture.  (Capitalized terms
used in this paragraph and not otherwise defined shall have the meaning provided
in the Indenture.)

 

(c)                                  Upon
the satisfaction of the conditions precedent set forth herein and the
Redemption Letter (including without limitation, the capital contribution of
certain amounts to SRC by SSCE, the capital contributions of certain amounts to
the Issuer by SRC, the deposit of an amount equal to the Redemption Price in
such Collection Account, the purchase of the Derivative by the Issuer, and the
Assignment of the right, title and interest (but not the obligations) of the
Derivative to the Trustee and the delivery to the Indenture Trustee of an
Opinion of Counsel), (I) the remaining Collateral and all liens, claims,
and encumbrances against the remaining Collateral (including, without
limitation, any liens and/or security interests granted in respect of the
Issuer’s receivables) shall be released in all respects from the Indenture, (II) the
Issuer shall merge with and into SRC, with SRC being the survivor of such
merger, and (III) immediately thereafter, SRC shall merge with and into
SSCE, with SSCE being the survivor of 

 

42

 

such merger (the mergers referred to in Clauses II and III are
collectively referred to herein as the “Mergers”).    (Capitalized terms used in this paragraph and
not otherwise defined shall have the meaning provided in the Indenture.)

 

(d)                                 The
contemplated Mergers, payments, capital contributions and transfers are for
fair and equivalent value and comply with the Indenture and the other
referenced documents.

 

(e)                                  Upon
consummation of the Mergers, all assets, including accounts receivable, owned
by the Issuer and SRC immediately prior to such Mergers, including the
Collateral (as defined in the Indenture), shall become property of the
bankruptcy estate of SSCE, and shall be free and clear of all liens, claims and
encumbrances, except the DIP Liens and Pre-Petition Adequate Protection Liens
in accordance with the terms of this Order and the Final Order.

 

(f)                                    In
accordance with Bankruptcy Rule 6004(h), the authorization to consummate
the Mergers and other transactions contemplated herein, including the
authorization to use proceeds of advances under the DIP Credit Agreement as
capital contributions to purchase the Derivative and to redeem the Series 2004-1
Notes as set forth herein, is not stayed and will become effective immediately
upon entry of this Order.

 

(g)                                 The
Indenture Trustee shall be released from, and shall have no liability for, any
and all liabilities or claims arising out of the financing and/or redemption of
the 2004-1 Notes and the release of Collateral in accordance with this
Paragraph 19.

 

20.                                 Final Hearing.

 

(a)                                  The
Final Hearing to consider entry of the Final Order and final approval of the
DIP Facility is scheduled for
            , 2009,
at            (EST) at the
United States 

 

43

 

Bankruptcy Court for the District of Delaware.  If no objections to the relief sought in the
Final Hearing are filed and served in accordance with this Interim Order, no
Final Hearing may be held, and a separate Final Order may be presented by the
Debtors and entered by this Court.

 

(b)                                 On or before
              ,
2009 the Debtors shall serve, by United States mail, first-class postage
prepaid, notice of the entry of this Interim Order and of the Final Hearing
(the “Final Hearing Notice”), together with
copies of this Interim Order, the proposed Final Order and the DIP Motion, on
the parties having been given notice of the Interim Hearing and to any other
party that has filed a request for notices with this Court and to any committee
after the same has been appointed, or committee counsel, if the same shall have
been appointed.  The Final Hearing Notice
shall state that any party in interest objecting to the entry of the proposed
Final Order shall file written objections with the Clerk of the Bankruptcy
Court no later than
            , 2009,
which objections shall be served so that the same are received on or before
such date by:  (a) counsel for the
Debtors, Sidley Austin LLP,  One South Dearborn, Chicago, IL 60603,
Attention: James F. Conlan; (b) counsel for the DIP Agents, Bryan
Cave LLP, 211 North Broadway, Suite 3600, St. Louis, MO 63102, Attention:
Gregory D. Willard; and Richards, Layton & Finger, 920 North King
Street, Wilmington, DE 19801, Attention: Mark D. Collins; (c) counsel for
the Pre-Petition Agents, Simpson, Thacher & Bartlett LLP, 425 Lexington Ave, New York, NY 10017,
Attention: Peter V. Pantaleo; (d) counsel to any committee; and (e) the
U.S. Trustee; and shall be filed with the Clerk of the United States Bankruptcy
Court for the District of Delaware, in each case to allow actual receipt of the
foregoing no later than
                ,
2009, at
             (EST).

 

44

 

(c)                                  Retention of Jurisdiction.  The Bankruptcy Court has and will retain
jurisdiction to enforce this Interim Order according to its terms.

 

	
  Dated: 

  	
  January 27, 2009

  	
   

  
	
   

  	
  Wilmington, Delaware

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BRENDAN L. SHANNON

  
	
   

  	
  UNITED STATES BANKRUPTCY JUDGE

  

 

45

 

EXHIBIT A

 

Non-Primed Liens

 

Liens that:

 

(i) are properly perfected, enforceable and in existence as of the
Petition Date;

(ii) are senior in priority to the Liens created under the
Pre-Petition Credit Agreement;

(iii) fall within any one of the following categories:

 

a.                                       those
Liens securing purchase money indebtedness;

 

b.                                      mechanics’
Liens, materialmen’s Liens, carriers’ Liens, warehousemen’s Liens and landlord’s
Liens arising by operation of law;

 

c.                                       rights
of banks or other financial institutions having a right of setoff, revocation,
refund or chargeback with respect to deposits with or in the possession of such
bank or financial institution;

 

d.                                      Liens
arising by operation of law on insurance policies and proceeds thereof to
secure premiums thereunder;

 

e.                                       other
Liens securing claims of no more than $500,000 on an individual basis and no
more than $10,000,000 on an aggregate basis; or

 

f.                                         other
Liens acceptable to the Administrative Agent; 
and

 

(iv) either:

(x) secure claims of no more than $200,000 on an individual basis;
or

(y) secure claims that are scheduled by the Debtors on the

Register Of Non-Primed Liens
(4).

 

(4)  The Debtors will prepare and maintain from time to time a
comprehensive Register Of Non-Primed Liens.

 

46

 

REGISTER OF NON-PRIMED LIENS

 

To
the extent parties on this Register have valid liens that otherwise satisfy
requirements (i) - (iii) of Schedule 2.24 (to which this Register is
appended), such liens are not being primed by the DIP Liens.  However, inclusion on the Register does not
constitute an admission by the Debtors that the listed parties have valid liens
or that they have valid claims of more than $200,000.

 

	
  Vendor

  	
   

  	
  Address

  
	
  1

  	
   

  	
  ALL
  TRUCK TRANSPORTATION INC

  	
   

  	
  4924
  S Austin Chicago, IL 60638 USA

  
	
  2

  	
   

  	
  Alliance
  Machine Systems

  	
   

  	
  5303
  East Desmet Spokane, WA 99212 USA

  
	
  3

  	
   

  	
  Alstom

  	
   

  	
  7-B
  Place Du Commerce Brossard, QC J4w 3k3 Canada

  
	
  4

  	
   

  	
  BAY
  LINE RAILROAD LLC

  	
   

  	
  #712406
  Cincinnati, OH 45271-2406 USA

  
	
  5

  	
   

  	
  BHS
  Corrugated

  	
   

  	
  9103
  Yellow Brick Road Baltimore, MD 21237-4702 USA

  
	
  6

  	
   

  	
  BLI

  	
   

  	
  #1261
  Saint Charles, MO 63302-1261 USA

  
	
  7

  	
   

  	
  CH
  ROBINSON WORLDWIDE

  	
   

  	
  #9121
  Minneapolis, MN 55480-9121 USA

  
	
  8

  	
   

  	
  CN

  	
   

  	
  Box
  4254 Station A71206 Chicago, IL 60694-1206 USA

  
	
  9

  	
   

  	
  CONWAY
  TRUCKLOAD INC

  	
   

  	
  #953695
  Saint Louis, MO 63195-3695 USA

  
	
  10

  	
   

  	
  Corrugated
  Gear & Services

  	
   

  	
  209
  W South Street Ithaca, MI 48847 USA

  
	
  11

  	
   

  	
  CSX
  TRANSPORTATION (CSXT)

  	
   

  	
  500
  Water St Sc J180 Jacksonville, FL 32202 USA

  
	
  12

  	
   

  	
  CSX
  TRANSPORTATION (CSXT)

  	
   

  	
  #44053
  Jacksonville, FL 32231-4053 USA

  
	
  13

  	
   

  	
  Dufrene
  Machinery, Inc.

  	
   

  	
  1831
  Veterans Memorial Hwy Austell, GA 30168 USA

  
	
  14

  	
   

  	
  ENTREPRISES DE TRANSPORT J C G INC

  	
   

  	
  1200 Pere Daniel Trois Rivieres, QC G9a 5r6
  Canada

  
	
  15

  	
   

  	
  Everest
  Auto

  	
   

  	
  227 Brunswick Suite D Pointe-Claire, QC
  H9r 4x5 Canada

  
	
  16

  	
   

  	
  Fosber
  America, Inc.

  	
   

  	
  1831
  Veterans Memorial Hwy Austell, GA 30168 USA

  
	
  17

  	
   

  	
  GENERAL
  LOGISTICS INC

  	
   

  	
  #8013
  Davenport, IA 52809 USA

  
	
  18

  	
   

  	
  GROUPE
  ROBERT INC

  	
   

  	
  500
  Rte. 112, Rougemont, Canpq J0l 1m0, Canada

  
	
  19

  	
   

  	
  Harper
  Machinery

  	
   

  	
  #11603
  Brown, WI 54307-1603 USA

  
	
  20

  	
   

  	
  HUB
  GROUP

  	
   

  	
  33773
  Treasury Center Chicago, IL 60694-3700 USA

  
	
  21

  	
   

  	
  JACOBSON
  DISTRIBUTION COMPANY

  	
   

  	
  #224
  Des Moines, IA 50301 USA

  
	
  22

  	
   

  	
  JAMES
  BROWN TRUCKING CO

  	
   

  	
  #535203
  Atlanta, GA 30353 USA

  
	
  23

  	
   

  	
  K&N
  Electric

  	
   

  	
  #303
  Spokane, WA 99210 USA

  
	
  24

  	
   

  	
  KANSAS
  CITY SOUTHERN RAILWAY INC

  	
   

  	
  36454
  Treasury Center Chicago, IL 60694-6400 USA

  
	
  25

  	
   

  	
  LILY
  TRANSPORTATION CORP

  	
   

  	
  145
  Rosemary Street Needham, MA 02494 USA

  
	
  26

  	
   

  	
  MARQUETTE
  TRANSPORTATION FINANCE IN

  	
   

  	
  Nw
  79391450 Minneapolis, MN 55485 USA

  
	
  27

  	
   

  	
  MCGRIFF
  TRANSPORTATION INC

  	
   

  	
  #1148
  Cullman, AL 35056 USA

  
	
  28

  	
   

  	
  MEGA
  GULF COAST LINES INC

  	
   

  	
  1002
  Fountain PArkway Grand Prairie, TX 75050 USA

  
	
  29

  	
   

  	
  MONTANA
  RAIL LINK

  	
   

  	
  3122
  Solutions Center Chicago, IL 60677 USA

  
	
  30

  	
   

  	
  NORFOLK
  SOUTHERN CORPORATION

  	
   

  	
  #532888
  Atlanta, GA 30353-2888 USA

  
	
  31

  	
   

  	
  SWIFT
  TRANSPORTATION CORP

  	
   

  	
  #643991
  Pittsburgh, PA 15264-3991 USA

  
	
  32

  	
   

  	
  UNION
  PACIFIC RAILROAD

  	
   

  	
  12567
  Collections Center Dr Chicago, IL 60693 USA

  
	
  33

  	
   

  	
  UPS
  FREIGHT

  	
   

  	
  #533238
  Atlanta, GA 30353-3238 USA

  
	
  34

  	
   

  	
  VHI
  TRANSPORT INC

  	
   

  	
  4525
  Lee Street Chester, VA 23831 USA

  
	
  35

  	
   

  	
  Voith
  - Austell, GA

  	
   

  	
  3090
  Stagecoach Road Caddo, LA 71047 USA

  
	
  36

  	
   

  	
  Voith
  Paper Rolls

  	
   

  	
  #410926
  Mecklenburg, NC 28241 USA

  
	
  37

  	
   

  	
  WATKINS &
  SHEPARD TRUCKING

  	
   

  	
  #5328
  Missoula, MT 59806 USA

  
	
  38

  	
   

  	
  WESTERN
  EXPRESS INC

  	
   

  	
  Dept
  54306035 Nashville, TN 37230-6035 USA

  
	
  39

  	
   

  	
  WHITE
  OAK TRANSPORTATION INC

  	
   

  	
  #43512
  Birmingham, AL 35243 USA

  
	
  40

  	
   

  	
  WORLDWIDE
  DEDICATED SERVICES INC

  	
   

  	
  28013
  Network Place Chicago, IL 60673 USA

  

 

47

 

EXHIBIT B

 

[See Credit
Agreement, dated as of January 28, 2009, as previously filed.]

 

48

 

Exhibit A-2

 

Court File No. CV-09-7966-00CL

 

ONTARIO

SUPERIOR COURT OF JUSTICE

COMMERCIAL LIST

 

	
  THE HONOURABLE

  	
  )

  	
  MONDAY, THE 26th

  
	
   

  	
  )

  	
   

  
	
  JUSTICE PEPALL

  	
  )

  	
  DAY OF JANUARY, 2009

  

 

IN THE MATTER OF THE COMPANIES’
CREDITORS ARRANGEMENT ACT, R.S.C. 1985, c. C-36, AS AMENDED

 

AND IN THE MATTER OF THE BANKRUPTCY
AND INSOLVENCY ACT, R.S.C. 1985, c. B-3, AS AMENDED

 

AND IN THE MATTER OF A PLAN OF COMPROMISE OR
ARRANGEMENT OF SMURFIT-STONE CONTAINER CANADA INC. AND THE OTHER APPLICANTS
LISTED ON SCHEDULE “A”

 

Applicants

 

INITIAL ORDER

 

THIS
APPLICATION, made by the Applicants,
pursuant to the Companies’ Creditors Arrangement Act,
R.S.C. 1985, c. C-36, as amended (the “CCAA”) was heard this day at 330
University Avenue, Toronto, Ontario.

 

ON
READING the affidavit of Dean Jones
sworn January 25, 2009 (the “Jones Affidavit”)
and the Exhibits thereto, the first report of Deloitte and Touche Inc.
(“Deloitte”) in its capacity as proposed monitor for the Applicants and on
hearing the submissions of counsel for the Applicants, the DIP Agent (as
defined below) and on reading the consent of Deloitte to act as the Monitor,

 

 

SERVICE

 

1.                                       THIS COURT ORDERS that
the time for service of the Notice of Application and the Application Record is
hereby abridged so that this Application is properly returnable today and
hereby dispenses with further service thereof.

 

APPLICATION

 

2.                                       THIS COURT ORDERS AND DECLARES that the Applicants are companies to which the CCAA applies.  Although not Applicants, those partnerships
listed on Schedule “B” (the “Partnerships”) shall enjoy the benefits of the
protections provided by this Order.

 

PLAN OF ARRANGEMENT

 

3.                                       THIS COURT ORDERS that
the Applicants shall have the authority to file and may, subject to further
order of this Court, file with this Court a plan of compromise or arrangement
(hereinafter referred to as the “Plan”) between, inter alia,
the Applicants and one or more classes of their secured and/or unsecured
creditors as they deem appropriate.

 

POSSESSION OF PROPERTY AND OPERATIONS

 

4.                                       THIS COURT ORDERS that
the Applicants and Partnerships shall remain in possession and control of their
current and future assets, undertakings and properties of every nature and kind
whatsoever, and wherever situate including all proceeds thereof (the
“Property”).  Subject to further Order of
this Court, the Applicants and Partnerships shall continue to carry on business
in a manner consistent with the preservation of their business (the “Business”)
and Property.  The Applicants and
Partnerships shall be authorized and empowered to continue to retain and employ
the employees, consultants, agents, experts, accountants, counsel and such
other persons (collectively “Assistants”) currently retained or employed by
them, with liberty to retain 

 

2

 

such
further Assistants as they deem reasonably necessary or desirable in the
ordinary course of business or for the carrying out of the terms of this Order.

 

5.                                       THIS COURT ORDERS that
the Applicants and Partnerships shall be entitled to continue to utilize the
centralized cash management systems currently in place as described in the Jones Affidavit or replace them
with other substantially similar central cash management system(s) (together,
the “Cash Management System”) and that any present or future bank providing the
Cash Management System shall not be under any obligation whatsoever to inquire
into the propriety, validity or legality of any transfer, payment, collection
or other action taken under the Cash Management System, or as to the use or
application by the Applicants or Partnerships of funds transferred, paid,
collected or otherwise dealt with in the Cash Management System, shall be
entitled to provide the Cash Management System without any liability in respect
thereof to any Person (as hereinafter defined) other than the Applicants and
Partnerships, pursuant to the terms of the documentation applicable to the Cash
Management System, and shall be, in its capacity as provider of the Cash
Management System, an unaffected creditor under the Plan with regard to any
claims or expenses it may suffer or incur in connection with the provision of
the Cash Management System.   The Monitor
shall review and monitor the Cash Management System and report to this Court
from time to time.

 

6.                                       THIS COURT ORDERS that
the Applicants and Partnerships shall be entitled but not required to pay the
following expenses whether incurred prior to or after this Order:

 

(a)                                  all outstanding and future wages, salaries, employee and pension
benefits and contributions, vacation pay, bonuses and expenses payable on or
after the date of this Order, in each case incurred in the ordinary course of
business and consistent with existing compensation policies and arrangements;

 

3

 

(b)                                 the fees and disbursements of any Assistants retained or employed by
the Applicants and Partnerships in respect of these proceedings, at their
standard rates and charges; and

 

(c)                                  amounts owing for goods and services actually supplied to the
Applicants and Partnerships, or to obtain the release of goods contracted for,
prior to the date of this order:

 

(i)                  by railways, trucking companies and other carriers and customs
brokers, with the consent of the Monitor and the DIP Agent; and

 

(ii)               with
the consent of the Monitor and the DIP Agent, up to US$11.6 million by other suppliers if, in the opinion of
the Applicants and Partnerships, the supplier is critical to the Business and
ongoing operations of the Applicants and/or Partnerships.

 

7.                                       THIS COURT ORDERS
that, except as otherwise provided to the contrary herein, the Applicants and
Partnerships shall be entitled but not required to pay all reasonable expenses
incurred by them in carrying on the Business in the ordinary course from and
after the date of this Order, and in carrying out the provisions of this Order,
which expenses shall include, without limitation:

 

(a)                                  all expenses and capital expenditures reasonably necessary for the
preservation of the Property or the Business including, without limitation,
payments on account of insurance (including directors and officers insurance),
maintenance and security services; and

 

(b)                                 payment for goods or services actually supplied to the Applicants
and Partnerships following the date of this Order.

 

8.                                       THIS COURT ORDERS that
the Applicants and Partnerships shall remit, in accordance with legal
requirements, or pay:

 

(a)                                  any statutory deemed trust amounts in favour of the Crown in right
of Canada or of any Province thereof or any other taxation authority which are 

 

4

 

required to be
deducted from employees’ wages, including, without limitation, amounts in
respect of (i) employment insurance, (ii) Canada Pension Plan, (iii) Quebec
Pension Plan, and (iv) income taxes;

 

(b)                                 all goods and services or other applicable sales taxes
(collectively, “Sales Taxes”) required to be remitted by the Applicants and
Partnerships in connection with the sale of goods and services by the
Applicants and Partnerships, but only where such Sales Taxes are accrued or
collected after the date of this Order, or where such Sales Taxes were accrued
or collected prior to the date of this Order but not required to be remitted
until on or after the date of this Order, and

 

(c)                                  any amount payable to the Crown in right of Canada or of any
Province thereof or any political subdivision thereof or any other taxation
authority in respect of municipal realty, municipal business or other taxes,
assessments or levies of any nature or kind which are entitled at law to be
paid in priority to claims of secured creditors and which are attributable to
or in respect of the carrying on of the Business by the Applicants and
Partnerships.

 

9.                                       THIS COURT ORDERS that
until such time as an Applicant or Partnership delivers a notice in writing to
repudiate a real property lease in accordance with paragraph 11(c) of this
Order (a “Notice of Repudiation”), the Applicants and Partnerships shall pay
all amounts constituting rent or payable as rent under real property leases
(including, for greater certainty, common area maintenance charges, utilities
and realty taxes and any other amounts payable to the landlord under the lease)
or as otherwise may be negotiated between the Applicants and Partnerships and
the relevant landlords from time to time (“Rent”), for the period commencing
from and including the date of this Order, twice-monthly in equal payments on
the first and fifteenth day of each month, in advance (but not in
arrears).  On the date of the first of
such payments, any arrears relating to the period commencing from and including
the 

 

5

 

date
of this Order shall also be paid.  Upon
delivery of a Notice of Repudiation, the relevant Applicant or Partnership
shall pay all Rent due for the notice period stipulated in paragraph 11(c) of
this Order, to the extent that Rent for such period has not already been paid.

 

10.                                 THIS COURT ORDERS
that, except as specifically permitted herein or in the DIP Documents (as
defined below), the Applicants and Partnerships are hereby directed, until
further Order of this Court: (a) to make no payments of principal,
interest thereon or otherwise on account of amounts owing by the Applicants or
Partnerships to any of their creditors as of this date; (b) to grant no
security interests, trust, liens, charges or encumbrances upon or in respect of
any of the Property; and (c) to not grant credit or incur liabilities
except in the ordinary course of the Business.

 

RESTRUCTURING

 

11.                                 THIS COURT ORDERS that
the Applicants and Partnerships shall, subject to such covenants as may be
contained in the DIP Documents, have the right to:

 

(a)                                  permanently or temporarily cease, downsize or shut down any of their
business or operations and to dispose of redundant or non-material assets not
exceeding $2 million in any
one transaction or $25 million
in the aggregate, subject to paragraph 11(c), if applicable;

 

(b)                                 terminate the employment of such of their employees or temporarily
lay off such of their employees as the relevant Applicant or Partnership deems
appropriate on such terms as may be agreed upon between the relevant Applicant
or Partnership and such employee, or failing such agreement, to deal with the
consequences thereof in the Plan;

 

(c)                                  in accordance with paragraphs 12 and 13, vacate, abandon or quit the
whole but not part of any leased premises and/or repudiate any real property
lease and any ancillary agreements relating to any leased premises, on not less
than 

 

6

 

fourteen (14)
days notice in writing to the relevant landlord on such terms as may be agreed
upon between the relevant Applicant or Partnership and such landlord, or
failing such agreement, to deal with the consequences thereof in the Plan;

 

(d)                                 repudiate such of their arrangements or agreements of any nature
whatsoever, whether oral or written, as the Applicants or Partnerships deem
appropriate on such terms as may be agreed upon between the relevant Applicant
or Partnership and such counter-parties, or failing such agreement, to deal
with the consequences thereof in the Plan; and

 

(e)                                  pursue all avenues of refinancing and offers for material parts of
the Business or Property, in whole or part, subject to prior approval of this
Court being obtained before any material refinancing or any sale (except as
permitted by subparagraph (a), above),

 

all of the foregoing to permit the Applicants
and Partnerships to proceed with an orderly restructuring of the Business (the
“Restructuring”).

 

12.                                 THIS COURT ORDERS that
the Applicants and Partnerships shall provide each of the relevant landlords
with notice of the relevant Applicant’s or Partnership’s intention to remove
any fixtures from any leased premises at least seven (7) days prior to the
date of the intended removal.  The
relevant landlord shall be entitled to have a representative present in the
leased premises to observe such removal and, if the landlord disputes the
Applicant’s or Partnership’s entitlement to remove any such fixture under the provisions
of the lease, such fixture shall remain on the premises and shall be dealt with
as agreed between any applicable secured creditors, such landlord and the
relevant Applicant or Partnership, or by further Order of this Court upon
application by the relevant Applicant or Partnership on at least two (2) days
notice to such landlord and any such secured creditors. If an Applicant or
Partnership repudiates the lease governing such leased premises in accordance
with paragraph 11(c) of this 

 

7

 

Order,
it shall not be required to pay Rent under such lease pending resolution of any
such dispute (other than Rent payable for the notice period provided for in
paragraph 11(c) of this Order), and the repudiation of the lease shall be
without prejudice to the Applicant’s claim to the fixtures in dispute.

 

13.                                 THIS COURT ORDERS that
if a Notice of Repudiation is delivered, then (a) during the notice period
prior to the effective time of the repudiation, the landlord may show the
affected leased premises to prospective tenants during normal business hours,
on giving the relevant Applicant or Partnership and the Monitor 24 hours’ prior
written notice, and (b) at the effective time of the repudiation, the
relevant landlord shall be entitled to take possession of any such leased
premises without waiver of or prejudice to any claims or rights such landlord
may have against the Applicant or Partnership in respect of such lease or
leased premises and such landlord shall be entitled to notify the Applicant or
Partnership of the basis on which it is taking possession and to gain
possession of and re-lease such leased premises to any third party or parties
on such terms as such landlord considers advisable, provided that nothing herein
shall relieve such landlord of its obligation to mitigate any damages claimed
in connection therewith.

 

NO PROCEEDINGS AGAINST THE APPLICANTS OR PARTNERSHIPS OR THE PROPERTY

 

14.                                 THIS COURT ORDERS that
until and including February 25, 2009, or such later date as this Court
may order (the “Stay Period”), no proceeding or enforcement process in any
court or tribunal (each, a “Proceeding”) shall be commenced or continued
against or in respect of the Applicants, the Partnerships or the Monitor, or
affecting the Business or the Property, except with the written consent of the
applicable Applicant or Partnership, the DIP Agent and the Monitor, or with
leave of this Court, and any and all Proceedings currently under way against or
in respect of the Applicants, the Partnerships or affecting the Business or the
Property are hereby stayed and suspended pending further Order of this Court.

 

8

 

NO EXERCISE OF RIGHTS OR REMEDIES

 

15.                                 THIS COURT ORDERS that
during the Stay Period, all rights and remedies of any individual, firm,
corporation, governmental body or agency, or any other entities (all of the
foregoing, collectively being “Persons” and each being a “Person”) against or
in respect of the Applicants, the Partnerships or the Monitor, or affecting the
Business or the Property, are hereby stayed and suspended except with the
written consent of the applicable Applicant or Partnership, the DIP Agent and
the Monitor, or leave of this Court, provided that nothing in this Order shall (i) empower
the Applicants and Partnerships to carry on any business which the Applicants
or Partnerships are not lawfully entitled to carry on, (ii) exempt the
Applicants and Partnerships from compliance with statutory or regulatory
provisions relating to health, safety or the environment, (iii) prevent
the filing of any registration to preserve or perfect a security interest, or (iv) prevent
the registration of a claim for lien.

 

NO INTERFERENCE WITH RIGHTS

 

16.                                 THIS COURT ORDERS that
during the Stay Period, no Person shall discontinue, fail to honour, alter,
interfere with, repudiate, terminate or cease to perform any right, renewal
right, contract, agreement, licence or permit in favour of or held by the
Applicants or Partnerships, except with the written consent of the relevant
Applicant or Partnership, the DIP Agent and the Monitor, or leave of this
Court.

 

CONTINUATION OF SERVICES

 

17.                                 THIS COURT ORDERS that
during the Stay Period, all Persons having oral or written agreements with an
Applicant or Partnership or statutory or regulatory mandates for the supply of
goods and/or services, including without limitation all computer software,
communication and other data services, centralized banking services, payroll
services, insurance, transportation, services, utility or other services to the
Business, an Applicant or Partnership, are hereby restrained until further
Order of 

 

9

 

this
Court from discontinuing, altering, interfering with or terminating the supply
of such goods or services as may be required by the Applicants or Partnerships,
and that the Applicants and Partnerships shall be entitled to the continued use
of their current premises, telephone numbers, facsimile numbers, internet addresses
and domain names, provided in each case that the normal prices or charges for
all such goods or services received after the date of this Order are paid by
the Applicants and Partnerships in accordance with normal payment practices of
the Applicants or Partnerships or such other practices as may be agreed upon by
the supplier or service provider and each of the Applicants or Partnerships,
the DIP Agent and the Monitor, or as may be ordered by this Court.

 

NON-DEROGATION OF RIGHTS

 

18.                                 THIS COURT ORDERS
that, notwithstanding anything else contained herein, no creditor of the
Applicants and Partnerships shall be under any obligation after the making of
this Order to advance or re-advance any monies or otherwise extend any credit
to the Applicants and Partnerships. 
Nothing in this Order shall derogate from the rights conferred and
obligations imposed by the CCAA.

 

PROCEEDINGS AGAINST DIRECTORS AND OFFICERS

 

19.                                 THIS COURT ORDERS that
during the Stay Period, and except as permitted by subsection 11.5(2) of the
CCAA, no Proceeding may be commenced or continued against any of the former,
current or future directors or officers of the Applicants with respect to any
claim against the directors or officers that arose before the date hereof and
that relates to any obligations of the Applicants or Partnerships whereby the
directors or officers are alleged under any law to be liable in their capacity
as directors or officers for the payment or performance of such obligations,
until a compromise or arrangement in respect of the Applicants and
Partnerships, if one is filed, is sanctioned by this Court or is refused by the
creditors of the Applicants or Partnerships or this Court.

 

10

 

DIRECTORS’ AND OFFICERS’ INDEMNIFICATION AND CHARGE

 

20.           THIS COURT ORDERS
that the Applicants shall indemnify their directors and officers from all
claims, costs, charges and expenses relating to the failure of the Applicants
or Partnerships, after the date hereof, to make payments of the nature referred
to in subparagraphs 6(a), 8(a), 8(b) and 8(c) of this Order which
they sustain or incur by reason of or in relation to their respective
capacities as directors and/or officers of the Applicants except to the extent
that, with respect to any officer or director, such officer or director has
actively participated in the breach of any related fiduciary duties or has been
grossly negligent or guilty of wilful misconduct.

 

21.           THIS COURT ORDERS
that the directors and officers of the Applicants shall be entitled to the
benefit of and are hereby granted a charge (the “Directors’ Charge”) on the
Property, which charge shall not exceed an aggregate amount of $8.6 million, as security for the
indemnity provided in paragraph 20 of this Order.  The Directors’ Charge shall have the priority
set out in paragraphs 40 and 43 herein.

 

22.           THIS COURT ORDERS
that, notwithstanding any language in any applicable insurance policy to the
contrary, (a) no insurer shall be entitled to be subrogated to or claim
the benefit of the Directors’ Charge, and (b) the Applicants’ directors
and officers shall only be entitled to the benefit of the Directors’ Charge to
the extent that they do not have coverage under any directors’ and officers’
insurance policy, or to the extent that such coverage is insufficient to pay
amounts indemnified in accordance with paragraph 20 of this Order.

 

APPOINTMENT OF MONITOR

 

23.           THIS COURT ORDERS
that Deloitte is hereby appointed pursuant to the CCAA as the Monitor, an
officer of this Court, to monitor the Property and the Applicants’ and
Partnerships’ conduct of the Business with the powers and obligations set out
in the CCAA or set forth herein and that the Applicants and Partnerships and 

 

11

 

their
shareholders, officers, directors, and Assistants shall advise the Monitor of
all material steps taken by the Applicants and Partnerships pursuant to this
Order, and shall co-operate fully with the Monitor in the exercise of its
powers and discharge of its obligations.

 

24.           THIS COURT ORDERS
that the Monitor, in addition to its prescribed rights and obligations under
the CCAA, is hereby directed and empowered to:

 

(a)                                  monitor the Applicants’ and Partnerships’ receipts and
disbursements;

 

(b)                                 report to this Court at such times and intervals as the Monitor may
deem appropriate with respect to matters relating to the Applicants, the
Partnerships, Property, the Business, and such other matters as may be relevant
to the proceedings herein;

 

(c)                                  assist the Applicants and Partnerships, to the extent required by
the Applicants and Partnerships, in their dissemination, to the DIP Agent and
its counsel of financial and other information as agreed to between the
Applicants and Partnerships and the DIP Agent which may be used in these
proceedings including reporting on a basis to be agreed with the DIP Agent and
perform such other duties and exercise such powers as may be contemplated to be
performed and exercised by the Monitor under the DIP Documents;

 

(d)                                 advise the Applicants and Partnerships in their preparation of the
Applicants’ and Partnerships’ cash flow statements and reporting required by
the DIP Agent, which information shall be reviewed with the Monitor and
delivered to the DIP Agent and its counsel in compliance with the DIP
Documents, or as otherwise agreed to by the DIP Agent;

 

(e)                                  advise the Applicants and Partnerships in their development of the
Plan and any amendments to the Plan;

 

12

 

(f)                                    assist the Applicants and Partnerships, to the extent required by
the Applicants and Partnerships, with the holding and administering of
creditors’ or shareholders’ meetings for voting on the Plan;

 

(g)                                 have full and complete access to the books, records and management,
employees and advisors of the Applicants and the Partnerships and to the
Business and the Property to the extent required to perform its duties arising
under this Order;

 

(h)                                 be at liberty to engage independent legal counsel or such other
persons as the Monitor deems necessary or advisable respecting the exercise of
its powers and performance of its obligations under this Order;

 

(i)                                     consider, and if deemed advisable by the Monitor, prepare a report
and assessment on the Plan; and

 

(j)                                     perform such other duties as are required by this Order or by this
Court from time to time.

 

25.           THIS COURT ORDERS
that the Monitor shall not take possession of the Property and shall take no
part whatsoever in the management or supervision of the management of the
Business and shall not, by fulfilling its obligations hereunder, be deemed to
have taken or maintained possession or control of the Business or Property, or
any part thereof.

 

26.           THIS COURT ORDERS
that nothing herein contained shall require the Monitor to occupy or to take
control, care, charge, possession or management (separately and/or
collectively, “Possession”) of any of the Property that might be
environmentally contaminated, might be a pollutant or a contaminant, or might
cause or contribute to a spill, discharge, release or deposit of a substance
contrary to any federal, provincial or other law respecting the protection,
conservation, enhancement, remediation or rehabilitation of the environment or
relating to the disposal of waste or other 

 

13

 

contamination
including, without limitation, the Canadian Environmental
Protection Act, the Ontario Environmental Protection
Act, the Ontario Water Resources
Act, or the Ontario Occupational Health and
Safety Act and regulations thereunder (the “Environmental
Legislation”), provided however that nothing herein shall exempt the Monitor
from any duty to report or make disclosure imposed by applicable Environmental
Legislation.  The Monitor shall not, as a
result of this Order or anything done in pursuance of the Monitor’s duties and
powers under this Order, be deemed to be in Possession of any of the Property
within the meaning of any Environmental Legislation, unless it is actually in
possession.

 

27.           THIS COURT ORDERS
that the Monitor shall provide any creditor of an Applicant or Partnership with
information provided by the Applicant or Partnership in response to reasonable
requests for information made in writing by such creditor addressed to the
Monitor.  The Monitor shall not have any
responsibility or liability with respect to the information disseminated by it
pursuant to this paragraph.  In the case
of information that the Monitor has been advised by an Applicant or Partnership
is confidential, the Monitor shall not provide such information to creditors
unless otherwise directed by this Court or on such terms as the Monitor and the
Applicant or Partnership may agree.

 

28.           THIS COURT ORDERS
that, in addition to the rights and protections afforded the Monitor under the
CCAA or as an officer of this Court, the Monitor shall incur no liability or
obligation as a result of its appointment or the carrying out of the provisions
of this Order, save and except for any gross negligence or wilful misconduct on
its part.  Nothing in this Order shall
derogate from the protections afforded the Monitor by the CCAA or any
applicable legislation.

 

29.           THIS COURT ORDERS
that the Monitor, counsel to the Monitor and Canadian counsel to the Applicants
and Partnerships shall be paid their reasonable fees and disbursements, in each
case at their standard rates and charges, by the Applicants and 

 

14

 

Partnerships
as part of the costs of these proceedings. 
The Applicants and Partnerships are hereby authorized and directed to
pay the accounts of the Monitor, counsel for the Monitor and Canadian counsel
for the Applicants and Partnerships on a twice-monthly basis and, in addition,
the Applicants and Partnerships are hereby authorized to pay to the Monitor,
counsel to the Monitor, and Canadian counsel to the Applicants and
Partnerships, retainers in the amounts of $400,000 each, to be held by them as security for
payment of their respective fees and disbursements outstanding from time to
time.

 

30.           THIS COURT ORDERS
that the Monitor and its legal counsel shall pass their accounts from time to
time, and for this purpose the accounts of the Monitor and its legal counsel
are hereby referred to a judge of the Commercial List of the Ontario Superior
Court of Justice.

 

31.           THIS COURT ORDERS
that the Monitor, Canadian  counsel to the
Monitor, if any, and the Applicants’ and Partnerships’ Canadian  counsel shall be entitled to the benefit of and are hereby
granted a charge (the “Administration Charge”) on the Property, which charge
shall not exceed an aggregate amount of $5
million,  as security for
their professional fees and disbursements incurred at the standard rates and
charges of the Monitor and such counsel, both before and after the making of
this Order in respect of these proceedings. 
The Administration Charge shall have the priority set out in paragraphs 40 and 43 hereof.

 

DIP FINANCING

 

32.           THIS COURT ORDERS
that the Applicants and Partnerships are hereby authorized and empowered to
enter into, obtain and borrow under a credit facility (the “DIP Credit
Agreement”) among the Applicants and Partnerships, Smurfit-Stone Container
Enterprises, Inc., Smurfit-Stone Container Corporation, the other “Loan
Parties” thereto, the “Lenders” party thereto, JPMorgan Chase Bank, N.A. as
Administrative Agent and Collateral Agent, and JPMorgan Chase Bank, N.A.,
Toronto Branch, as Canadian Administrative Agent and Canadian Collateral Agent
(the 

 

15

 

Canadian
Administrative Agent and the Canadian Collateral Agent are, collectively, the
“DIP Agent”) substantially in the form attached as Exhibit “A” to the Jones Affidavit (subject to such non-material
amendments and modifications as the parties may agree with a copy thereof being
provided in advance to the Monitor), provided that borrowings under such credit
facility shall not exceed the principal amount of US$350 million unless
permitted by further Order of this Court.

 

33.           THIS COURT ORDERS
that the Applicants and Partnerships are hereby authorized and empowered to
execute and deliver the DIP Credit Agreement and such commitment letters, fee
letters, credit agreements, mortgages, charges, hypothecs and security
documents, guarantees and other definitive documents (collectively, the “DIP
Documents”), as are contemplated by the DIP Documents or as may be reasonably
required by the DIP Agent pursuant to the terms thereof, and the Applicants and
Partnerships are hereby authorized and directed to pay and perform all of their
indebtedness, interest, fees, liabilities and obligations to the DIP Agent
under and pursuant to the DIP Documents as and when the same become due and are
to be performed, notwithstanding any other provision of this Order.

 

34.           THIS COURT ORDERS
that the DIP Agent, for and on behalf of the Secured Parties (as defined in the
DIP Credit Agreement) (collectively, the “DIP Lenders”) shall be entitled to
the benefit of and is hereby granted a charge (the “DIP Lenders Charge”) on the
Property, including without limitation the real property listed in Schedule “C”
attached hereto, which charge shall not exceed the aggregate amount owed to the
DIP Lenders under the DIP Documents.

 

35.           THIS COURT ORDERS that
the DIP Lenders Charge shall have the priority set out in paragraphs 40 and 43 hereof.  The DIP Lenders Charge shall attach to all
existing and after-acquired Property, as the case may be, including any lease,
license, occupation permit, or other contract, notwithstanding any requirement
for the consent of the lessor, licensor, or other party to such contract.

 

16

 

36.           THIS COURT ORDERS
that, notwithstanding any other provision of this Order:

 

(a)                                  the DIP Agent may take such steps from time to time as it may deem
necessary or appropriate to file, register, record or perfect the DIP Lenders
Charge or any of the DIP Documents;

 

(b)                                 upon the occurrence of an event of default under the DIP Documents
or the DIP Lenders Charge, the DIP Agent, upon five days notice to the Applicants and Partnerships
and the Monitor, may exercise any and all of its rights and remedies on behalf
of the DIP Lenders against the Applicants, the Partnerships or the Property
under or pursuant to the DIP Documents and the DIP Lenders Charge, including
without limitation, to make demand, accelerate payment and give other notices,
or to apply to this Court for the appointment of a receiver, receiver and
manager or interim receiver, or for a bankruptcy order against the Applicants
and Partnerships and for the appointment of a trustee in bankruptcy of the
Applicants, and upon the occurrence of an event of default under the terms of
the DIP Documents, the DIP Agent shall be immediately entitled to cease making
advances to the Applicants and set off and/or consolidate any amounts owing by
the DIP Agent to the Applicants against the obligations of the Applicants to
the DIP Agent under the DIP Documents or the DIP Lenders Charge, seize and
retain proceeds from the sale of the Property and the cash flow of the
Applicants and Partnerships to repay amounts owing to the DIP Lenders in
accordance with the DIP Documents and the DIP Lenders Charge, as the case may
be, but subject to the priorities as set out in paragraphs 40 and 43 of this Order;
and

 

(c)                                  the foregoing rights and remedies of the DIP Agent shall be
enforceable against the Applicants and Partnerships and against any trustee in 

 

17

 

bankruptcy,
interim receiver, receiver or receiver and manager of the Applicants, the
Partnerships or the Property.

 

37.           THIS COURT ORDERS AND
DECLARES that, notwithstanding paragraph 14, but subject to
paragraph 36, the DIP Agent and the DIP Lenders shall be treated as unaffected
by any stay created in these proceedings and the DIP Agent and the DIP Lenders
shall be treated as unaffected in any plan of arrangement or compromise filed
by the Applicants under the CCAA, or any proposal filed by the Applicants under
the Bankruptcy and Insolvency Act of Canada
(the “BIA”), with respect to any advances made under the DIP Documents.

 

38.           THIS COURT ORDERS that
nothing in this Order shall be construed as relieving the Applicants and
Partnerships from their obligations to comply with the DIP Documents and in
particular the Budget (as defined in the DIP Credit Agreement).

 

39.           THIS COURT ORDERS that
the Applicants and the Partnerships party to the Receivables Agreement are
authorized to terminate the Receivables Agreement and enter into and perform
their obligations under the Termination and Reassignment Agreement, each as
defined in the Jones Affidavit.

 

VALIDITY AND PRIORITY OF CHARGES CREATED BY THIS ORDER

 

40.           THIS COURT ORDERS
that the priorities of the Directors’ Charge, the Administration Charge and the
DIP Lenders Charge, as among them, shall be as follows:

 

First — Administration Charge (to the extent
of $1 million);

 

Second — Directors’ Charge (to the extent of
$8.6 million);

 

Third — DIP Lenders Charge; and

 

18

 

Fourth — Administration Charge (for any
amount greater than $1 million, to a maximum of $5 million).

 

41.           THIS COURT ORDERS
that any distribution in respect of the DIP Lenders Charge as amongst the
beneficiaries thereto shall be governed by the DIP Documents.

 

42.           THIS COURT ORDERS that
the filing, registration or perfection of the Directors’ Charge, the
Administration Charge or the DIP Lenders Charge (collectively, the “Charges”)
shall not be required, and that the Charges shall be valid and enforceable for
all purposes, including as against any right, title or interest filed,
registered, recorded or perfected subsequent to the Charges coming into
existence, notwithstanding any such failure to file, register, record or
perfect.

 

43.           THIS COURT ORDERS
that each of the Directors’ Charge, the Administration Charge and the DIP
Lenders Charge (all as constituted and defined herein) shall constitute a
charge on the Property and such Charges shall rank in priority to all other
security interests, trusts, liens, charges and encumbrances, statutory or
otherwise (collectively, “Encumbrances”) in favour of any Person.  The security granted by the DIP Documents
charging the Property shall have the same priority as the DIP Lenders Charge.

 

44.           THIS COURT ORDERS
that except as otherwise expressly provided for herein, or as may be approved
by this Court, the Applicants and Partnerships shall not grant any Encumbrances
over any Property that rank in priority to, or pari passu
with, any of the Charges, unless the Applicants and Partnerships also obtain
the prior written consent of the Monitor, the DIP Agent and the beneficiaries
of the Directors’ Charge and the Administration Charge, or further Order of
this Court.

 

45.           THIS COURT ORDERS
that the Directors’ Charge, the Administration Charge, the DIP Documents and
the DIP Lenders Charge shall not be rendered invalid or unenforceable and the
rights and remedies of the chargees entitled to the benefit of the 

 

19

 

Charges
(collectively, the “Chargees”) and/or the DIP Agent thereunder shall not
otherwise be limited or impaired in any way by (a) the pendency of these
proceedings and the declarations of insolvency made herein; (b) any
application(s) for bankruptcy order(s) issued pursuant to BIA, or any
bankruptcy order made pursuant to such applications; (c) the filing of any
assignments for the general benefit of creditors made pursuant to the BIA; (d) the
provisions of any federal or provincial statutes; or (e) any negative
covenants, prohibitions or other similar provisions with respect to borrowings,
incurring debt or the creation of Encumbrances, contained in any existing loan
documents, lease, sublease, offer to lease or other agreement (collectively, an
“Agreement”) which binds the Applicants, the Partnerships, or any of them, and
notwithstanding any provision to the contrary in any Agreement:

 

(a)                                  neither the creation of the Charges nor the execution, delivery,
perfection, registration or performance of the DIP Documents shall create or be
deemed to constitute a breach by any of the Applicants or Partnerships of any
Agreement to which it is a party;

 

(b)                                 none of the Chargees shall have any liability to any Person
whatsoever as a result of any breach of any Agreement caused by or resulting
from the Applicants and Partnerships entering into the DIP Credit Agreement,
the creation of the Charges, or the execution, delivery or performance of the
DIP Documents; and

 

(c)                                  the payments made by the Applicants and the Partnerships pursuant to
this Order or the DIP Credit Agreement or the other DIP Documents and the
granting of the Charges do not and will not constitute fraudulent preferences,
fraudulent conveyances, oppressive conduct, settlements or other challengeable,
voidable or reviewable transactions under any applicable law.

 

20

 

46.           THIS COURT ORDERS
that any Charge created by this Order over leases of real property in Canada
shall only be a Charge in the relevant Applicant’s or Partnership’s interest in
such real property leases.

 

RECOGNITION

 

47.           THIS COURT ORDERS AND
DECLARES that the Partnerships are entities which are entitled to
relief under section 268 of the BIA.

 

48.           THIS COURT ORDERS AND
DECLARES that the proceedings commenced on January 26, 2009  by the Applicants and Partnerships under chapter 11 of
title 11 of the United States Bankruptcy Code in
the United States Bankruptcy Court for the District of Delaware (the “US
Bankruptcy Proceedings”) be and hereby are recognized as a “foreign proceeding”
as defined by section 267 of the BIA.

 

SERVICE AND NOTICE

 

49.           THIS COURT ORDERS
that (i) the Applicants and the Partnerships shall give notice to the
Monitor concurrently with any request that any of them may submit to the DIP
Lenders for release of any of the Collateral from the DIP Liens (each as
defined in the DIP Documents) or for the release of proceeds of such
Collateral; and (ii) in addition, the DIP Agent shall give notice to the
Monitor promptly following any request from the Applicants or the Partnerships
pursuant to the DIP Documents for the consent of the Lenders to release all or
substantially all of the Collateral from the Liens (each as defined in the DIP
Documents), or for the consent of the Supermajority Lenders to release any
material part of the Collateral from the Liens or for the release of proceeds
of such collateral.

 

50.           THIS COURT ORDERS
that the Applicants and Partnerships shall, within ten (10) business days
of the date of entry of this Order, cause a notice to be sent to their known
creditors, other than employees and creditors to which the Applicants and
Partnerships owe less than $1,000,
whether separately or as part of a notice to all such 

 

21

 

creditors
pursuant to the US Bankruptcy Proceedings, at their addresses as they appear on
the Applicants’ and Partnerships’ records notifying them of this filing and the
address of the Monitor’s website where a copy of this Order is posted, and
shall promptly send a copy of this Order to any interested Person who requests
a copy.  The Monitor is relieved of its
obligation under Section 11(5) of the CCAA to provide a copy of this
Order, but may assist the Applicants and Partnerships in sending the notice
referred to above.

 

51.           THIS COURT ORDERS
that the Applicants and Partnerships and the Monitor be at liberty to serve any
materials and orders in these proceedings, any notices or other correspondence,
by forwarding true copies thereof by prepaid ordinary mail, courier, personal
delivery or electronic transmission to the Applicants’ and Partnerships’
creditors or other interested parties at their respective addresses as last
shown on the records of the Applicants and Partnerships and that any such
service or notice by courier, personal delivery or electronic transmission
shall be deemed to be received on the next business day following the date of
forwarding thereof, or if sent by ordinary mail, on the third business day
after mailing.

 

52.           THIS COURT ORDERS
that the Applicants and Partnerships, the Monitor, and any party who has filed
a Notice of Appearance may serve any court materials in these proceedings by
e-mailing a PDF or other electronic copy of such materials to counsels’ email
addresses as recorded on the Service List from time to time, in accordance with
the E-filing protocol of the Commercial List to the extent practicable, and the
Monitor may post a copy of any or all such materials on its website at
www.deloitte.com/ca/smurfitstonecanada.

 

GENERAL

 

53.           THIS COURT ORDERS
that the Applicants or Partnerships or the Monitor may from time to time apply
to this Court for advice and directions in the discharge of its powers and
duties hereunder.

 

22

 

54.           THIS COURT ORDERS
that nothing in this Order shall prevent the Monitor from acting as an interim
receiver, a receiver, a receiver and manager, or a trustee in bankruptcy of the
Applicants, the Partnerships, the Business or the Property.

 

55.           THIS COURT HEREBY REQUESTS
the aid and recognition of any court, tribunal, regulatory or administrative
body having jurisdiction in Canada or in the United States, to give effect to
this Order and to assist the Applicants and Partnerships, the Monitor and their
respective agents in carrying out the terms of this Order.  All courts, tribunals, regulatory and
administrative bodies are hereby respectfully requested to make such orders and
to provide such assistance to the Applicants and Partnerships and to the
Monitor, as an officer of this Court, as may be necessary or desirable to give
effect to this Order, to grant representative status to the Monitor in any
foreign proceeding, or to assist the Applicants and Partnerships and the
Monitor and their respective agents in carrying out the terms of this Order.

 

56.           THIS COURT ORDERS
that each of the Applicants and Partnerships and the Monitor be at liberty and
is hereby authorized and empowered to apply to any court, tribunal, regulatory
or administrative body, wherever located, for the recognition of this Order and
for assistance in carrying out the terms of this Order.

 

57.           THIS COURT ORDERS
that any interested party (including the Applicants and Partnerships and the
Monitor) may apply to this Court to vary or amend this Order on not less than
seven (7) days notice to any other party or parties likely to be affected
by the order sought or upon such other notice, if any, as this Court may order.

 

58.           THIS COURT ORDERS
that, (a) notwithstanding paragraph 57, no order shall be made varying,
rescinding or otherwise affecting the provisions of this Order with respect to
the DIP Documents or the DIP Lenders Charge unless notice of a motion for such
order is served on the Applicants and Partnerships, the Monitor and the DIP
Agent returnable no later than February 18, 2009; and (b) subject to
court order, prior to February 18, 2009, the amounts that can be borrowed
by the Canadian Borrower under 

 

23

 

the
Canadian Revolving Commitment and the US Revolving Commitment (each as defined
in the DIP Credit Agreement) shall be limited to the amounts set out in
sections 2.2(a) and 2.3(a) of the DIP Credit Agreement.

 

59.           THIS COURT ORDERS
that this Order and all of its provisions are effective as of 12:01 a.m.
Eastern Standard Time on the date of this Order.

 

60.           THIS COURT ORDERS that
leave is reserved to the Applicants and Partnerships to apply for an Amended
and Restated Initial Order on January 28, 2009 to seek, inter alia, recognition of any DIP Orders made in the US
Bankruptcy Proceedings.

 

 

	
   

  	
   

  

 

24

 

SCHEDULE “A”

 

Smurfit-Stone Container Canada Inc.

 

3083527 Nova Scotia Company

 

MBI Limited/Limitée

 

639647 British Columbia Ltd.

 

B.C. Shipper Supplies Ltd.

 

Specialty Containers Inc.

 

605681 N. B. Inc.

 

Francobec Company

 

Stone Container Finance Company of Canada II

 

25

 

SCHEDULE “B”

 

Smurfit-MBI

 

SLP Finance General Partnership

 

26

 

SCHEDULE “C”

 

Québec Timberlands (approximately 960,000 acres) in Québec

 

1000 Chemin de l’Usine, La
Tuque, Québec

 

90 Parc Industriel, Matane,
Québec

 

15400 Sherbrooke Street East,
Montreal, Québec

 

211 Route 301 Portage-du-Fort,
Québec

 

150 chemin St-Edgar, New Richmond, Québec

 

819 Main Street, Bathurst, New Brunswick

 

747 Appleby Line, Burlington, Ontario

 

200 Chemin de la
Rivière-au-Lait, Canton de Vallières, Haut Saint-Maurice, Québec

 

1115 34th Ave South East, Calgary, Alberta

 

8705 24th Street, Edmonton, Alberta

 

Foot of Gifford Street, New Westminster,
British Columbia

 

1360 Inkster Boulevard, Winnipeg, Manitoba

 

730 Islington Ave., Toronto,
Ontario

 

200 Water Street, Whitby, Ontario

 

390 Woodlawn Road, West, Guelph, Ontario

 

8150 Parkhill Drive, Milton, Ontario

 

1035 Hodge Street, Saint-Laurent, Québec

 

5550 Royalmount Ave, Town of Mount-Royal, Québec

 

1400, 1st Ave East, Regina, Saskatchewan

 

27

 

Exhibit A-3

 

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE

 

	
  In re:

  	
   

  	
  Chapter 11

  
	
   

  	
   

  	
   

  
	
  SMURFIT-STONE CONTAINER CORPORATION, et  al.,(1)

  	
   

  	
  Case No. 09-10235 (BLS)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jointly Administered

  
	
  Debtors.

  	
   

  	
   

  
	
   

  	
   

  	
  Ref.
  Docket Nos. 14 and 58

  

 

FINAL
ORDER (I) AUTHORIZING DEBTORS (A) TO OBTAIN POST-PETITION FINANCING
PURSUANT TO 11 U.S.C. §§105, 361, 362, 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) AND
364(e) AND (B) TO UTILIZE CASH COLLATERAL PURSUANT TO 11 U.S.C. §363
and (II) GRANTING ADEQUATE PROTECTION TO PRE-PETITION

SECURED PARTIES PURSUANT TO 11 U.S.C. §§ 361, 362, 363 AND 364

 

Upon the motion (the “DIP  Motion”), dated January 26, 2009, of Smurfit-Stone
Container Corporation (“SSCC”) and its
affiliated U.S. debtors (collectively, the “U.S. Debtors”)
and Smurfit-Stone Container Canada Inc. (“SSC Canada”)
and its affiliated Canadian debtors (collectively, the “Canadian
Debtors”), each as debtors and debtors-in-possession (the U.S.
Debtors and the Canadian Debtors hereinafter collectively referred to as the “Debtors”), in the above-captioned Chapter 11 cases
(collectively, the “Cases”)
pursuant to sections 105, 361, 362, 363(c)(2), 364(c)(1), 364(c)(2), 364(c)(3),
364(d)(1) and 364(e) of title 11 of the United States Code, 11 U.S.C.
§§101, et seq. (the “Bankruptcy Code”),
and Rules

 

(1) The Debtors in these chapter 11 cases, along with the last
four digits of each Debtor’s federal tax identification number, are:
Smurfit-Stone Container Corporation (1401), Smurfit-Stone Container
Enterprises, Inc. (1256), Calpine Corrugated, LLC (0470), Cameo Container
Corporation (5701), Lot 24D Redevelopment Corporation (6747),
Atlanta & Saint Andrews Bay Railway Company (0093), Stone
International Services Corporation (9630), Stone Global, Inc. (0806), Stone
Connecticut Paperboard Properties, Inc. (8038), Smurfit-Stone Puerto
Rico, Inc. (5984), Smurfit Newsprint Corporation (1650), SLP Finance
I, Inc. (8169), SLP Finance II, Inc. (3935), SMBI Inc. (2567),
Smurfit-Stone Container Canada Inc. (3988), Stone Container Finance Company of
Canada II (1587), 3083527 Nova Scotia Company (8836), MBI Limited/Limitée
(6565), Smurfit-MBI (1869), 639647 British Columbia Ltd. (7733), B.C. Shipper
Supplies Ltd. (7418), Specialty Containers Inc. (6564), SLP Finance General
Partnership (9525), Francobec Company (7735), and 605681 N.B. Inc. (1898).  The Debtors’ corporate headquarters are
located at, and the mailing address for each Debtor is, 150 North Michigan
Avenue, Chicago, Illinois 60601.

 

 

2002, 4001 and 9014 of the Federal Rules of Bankruptcy Procedure
(the “Bankruptcy Rules”), seeking, among
other things, entry of a final order (this “Final Order”)
authorizing the Debtors to:

 

(i)                                     Obtain
credit and incur debt, pursuant to Sections 363, 364(c) and 364(d)(1) of
the Bankruptcy Code, on a final basis up to an aggregate committed amount of
US$750,000,000 (consisting of a US$400,000,000 term loan facility for
borrowings by Smurfit-Stone Container Enterprises, Inc. (“SSCE”); a US$35,000,000 term loan facility for borrowings
by SSC Canada; a US$215,000,000 revolving credit facility for borrowings by
SSCE and/or SSC Canada; a US$35,000,000 revolving credit and letter of credit
facility for borrowings by SSCE and/or SSC Canada; and a US$65,000,000
revolving credit and letter of credit facility available in U.S. dollars or
Canadian dollars for borrowings by SSCE and/or SSC Canada; the actual principal
amount of any such loans at any time subject to those conditions set forth in
the DIP Credit Agreement, including the conversion provisions in Section 9.23
of the DIP Credit Agreement); all borrowings by SSCE shall be guaranteed by the
other U.S. Debtors (other than SMBI Inc.) and SSC Canada and all borrowings by
SSC Canada shall be guaranteed by all of the other Debtors; each on terms and
conditions more fully described herein, secured by first priority, valid,
priming, perfected and enforceable liens (as defined in section 101(37) of the
Bankruptcy Code) on property of the Debtors’ estates pursuant to sections
364(c)(2), 364(c)(3) and 364(d)(1) of the Bankruptcy Code, and with
priority, as to administrative expenses, as provided in section 364(c)(1) of
the Bankruptcy Code, subject to the terms and conditions contained herein;

 

(ii)                                  (a) Establish
a financing arrangement (the “DIP Facility”)
pursuant to (I) that certain Credit Agreement (as amended, modified or
supplemented prior to entry of, and in 

 

2

 

accordance with the terms of,
this Final Order, and as hereafter amended, modified or supplemented and in
effect from time to time, the “DIP Credit Agreement”)(2),
substantially in the form attached hereto as Exhibit B, by and
between SSCE and SSC Canada (collectively, the “Borrowers”),
SSCC, the other Loan Parties party thereto, JPMorgan Chase Bank, N.A., as
administrative agent and collateral agent (the “U.S. DIP
Agent”), JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian
administrative agent and Canadian collateral agent (“Canadian
DIP Agent”, collectively with the U.S. DIP Agent, the “DIP Agents”), and the Lenders party thereto (the “DIP Lenders”, collectively with the DIP Agents, the “DIP Secured Parties”), and (II) all other agreements,
documents, notes, certificates, and instruments executed and/or delivered with,
to, or in favor of the DIP Secured Parties, including, without limitation,
security agreements, pledge agreements, notes, guarantees, mortgages, and
Uniform Commercial Code (“UCC”)
financing statements and all other related agreements, documents, notes,
certificates, and instruments executed and/or delivered in connection therewith
or related thereto (collectively, and together with the DIP Credit Agreement,
as may be amended, modified or supplemented and in effect from time to time,
the “DIP Financing Agreements”); and (b) incur
the “Secured Obligations” under the DIP
Credit Agreement ((a) and (b) collectively, the “DIP
Obligations”);

 

(iii)                               Authorize
the use of the proceeds of the DIP Facility (net of any amounts used to pay
fees, costs and expenses under the DIP Credit Agreement) in each case in a
manner consistent with the terms and conditions of the DIP Credit Agreement,
and in a manner substantially consistent with the Budget solely for (a) working
capital, Letters of Credit and 

 

(2) Capitalized terms used in this Final Order but not defined
herein shall have the meanings ascribed to such terms in the DIP Credit
Agreement.

 

3

 

Capital Expenditures; (b) other
general corporate purposes of the Debtors (including intercompany loans to the
extent permitted by the DIP Credit Agreement); (c) payment of any related
transaction costs, fees and expenses; and (d) the costs of administration
of the Cases.

 

(iv)                              Grant,
with respect to the DIP Obligations (as defined below) of the U.S. Debtors
(other than SMBI, Inc.) and SSC Canada:

 

(a)                                  pursuant to Section 364(c)(1) of
the Bankruptcy Code, an allowed Superpriority Claim payable from and having
recourse to all pre-petition and post-petition property of the estates of the
U.S. Debtors and SSC Canada and all proceeds thereof;

 

(b)                                 pursuant to Section 364(c)(2) of
the Bankruptcy Code, a perfected first priority Lien on all unencumbered
property of the U.S. Debtors and SSC Canada (including any proceeds of
Avoidance Actions) and on all cash maintained in any Collateral Account and any
investments of the funds contained therein, provided that amounts in the
Collateral Accounts shall not be subject to the Carve-Out or the CCAA Charges;

 

(c)                                  pursuant to Section 364(c)(3) of
the Bankruptcy Code, a perfected junior Lien upon all property of the U.S.
Debtors and SSC Canada that is subject to valid and perfected and unavoidable
Liens in existence on the Petition Date (as defined below) or that is subject
to valid Liens in existence on the Petition Date that are perfected subsequent
to the Petition Date as permitted by Section 546(b) of the Bankruptcy
Code (other than certain property that is subject to the Primed Liens (as
defined below), which Primed Liens shall be primed by the liens to be granted
to the U.S. DIP Agent described in the following clause (d));

 

(d)                                 pursuant
to Section 364(d)(1) of the Bankruptcy Code, a perfected first
priority, senior priming Lien on all of the property of the U.S. Debtors and
SSC Canada, including all cash and non-cash proceeds of any of said property,
(and including, without 

 

4

 

limitation, inventory,
receivables, rights under license agreements, property, plant and equipment and
the residual interest of the U.S. Debtors and SSC Canada in any Receivables
Securitization Programs) that is subject to the Primed Liens, which Primed
Liens shall be primed by and made subject and subordinate to the perfected
first priority senior priming Liens to be granted to the U.S. DIP Agent, which
senior priming Liens in favor of the U.S. DIP Agent shall also prime any Liens
granted after the Petition Date to provide adequate protection Liens in respect
of any of the Primed Liens, but shall not prime (1) Non-Primed Liens
(which term as used in this Final Order shall include all pre-petition liens
and post-petition adequate protection liens on Calpine Property that secure the
Calpine Debt) or (2) other Non-Primed Liens solely to the extent such
Non-Primed Liens secure claims in an aggregate amount less than or equal to
US$60,000,000.

 

 (v)                              Grant,
with respect to the DIP Obligations of the Canadian Guarantors, including SMBI, Inc.,
relative to the Canadian Term Loan and the Canadian Revolving Facility:

 

(a)                                  pursuant to Section 364(c)(1) of
the Bankruptcy Code, an allowed Superpriority Claim and be payable from and
have recourse to all pre-petition and post-petition property of the estates of
the Canadian Guarantors and all proceeds thereof;

 

(b)                                 pursuant to Section 364(c)(2) of
the Bankruptcy Code, a perfected first priority Lien on all unencumbered
property of the Canadian Guarantors (including any proceeds of Avoidance
Actions) and on all cash maintained in any Collateral Account and any
investments of the funds contained therein, provided that amounts in the
Collateral Accounts shall not be subject to the Carve-Out or the CCAA Charges;

 

(c)                                  pursuant to Section 364(c)(3) of
the Bankruptcy Code, a perfected junior Lien upon all property of the Canadian
Guarantors that is subject to valid and perfected and unavoidable Liens in
existence on the Petition Date or that is subject to valid Liens in 

 

5

 

existence on
the Petition Date that are perfected subsequent to the Petition Date as
permitted by Section 546(b) of the Bankruptcy Code (other than
certain property that is subject to the Primed Liens, which Primed Liens shall
be primed by the liens to be granted to the U.S. DIP Agent described in the
following clause (d));

 

(d)                                 pursuant
to Section 364(d)(1) of the Bankruptcy Code, a perfected first
priority, senior priming Lien on all of the property of the Canadian
Guarantors, including all cash and non-cash proceeds of any of said property,
(and including, without limitation, inventory, receivables, rights under license
agreements, property, plant and equipment and the residual interest of the
Canadian Guarantors in any Receivables Securitization Programs) that is subject
to the Primed Liens, which Primed Liens shall be primed by and made subject and
subordinate to the perfected first priority senior priming Liens to be granted
to the U.S. DIP Agent, which senior priming Liens in favor of the U.S. DIP
Agent shall also prime any Liens granted after the Petition Date to provide
adequate protection Liens in respect of any of the Primed Liens, but shall not
prime (1) Non-Primed Liens which secure the Calpine Debt or (2) other
Non-Primed Liens solely to the extent such Non-Primed Liens secure claims in an
aggregate amount less than or equal to US$60,000,000.

 

(vi)                              Authorize
the use of “cash collateral” as such term is defined in Section 363 of the
Bankruptcy Code (excluding the cash collateral of the estate of Calpine
Corrugated LLC (“Calpine”), the “Cash Collateral”), in which the Pre-Petition Secured
Parties (as defined below) have an interest;

 

(vii)                           Grant
the Pre-Petition Agents (for the benefit of the Pre-Petition Secured Parties)
(each as defined below) Pre-Petition Replacement Liens and Pre-Petition
Superpriority Claims (each as defined below), to the extent of any diminution
in the value of the Pre-Petition 

 

6

 

Agents’ interest in the
Collateral (as defined below) on the Petition Date, securing the indebtedness
under the Pre-Petition Financing Agreements, as defined below, having the
priority set forth in this Final Order, as adequate protection for the granting
of the DIP Liens (as defined below) to the U.S. DIP Agent, the use of Cash
Collateral, and for the imposition of the automatic stay;

 

(viii)                        Vacate
and modify the automatic stay imposed by section 362 of the Bankruptcy Code to
the extent necessary to implement and effectuate the terms and provisions of
the DIP Financing Agreements and this Final Order; and

 

(ix)                                Waive
any applicable stay (including under Rule 6004 of the Federal Rules of
Bankruptcy Procedure) and provide for immediate effectiveness of this Final
Order.

 

The Bankruptcy Court having considered the DIP Motion, the Declaration
of Charles A. Hinrichs, Chief Financial Officer of Smurfit-Stone Container
Corporation, in Support of First Day Motions, the exhibits attached thereto,
the DIP Facility and the DIP Credit Agreement, and the evidence submitted at
the interim hearing on the DIP Motion held on January 27, 2009 (the “Interim Hearing”) and at the hearing on this Final Order
held on February 23, 2009 (the “Final Hearing”);
and the Bankruptcy Court having entered on January 27, 2009 an Interim
Order (I) Authorizing Debtors (A) to Obtain Post-Petition Financing
Pursuant to 11 U.S.C. §§105, 361, 362, 364(c)(1), 364(c)(2), 364(c)(3), 364(d)(1) and
364(e) and (B) To Utilize Cash Collateral Pursuant to 11 U.S.C. §363,
(II) Authorizing Use of Proceeds to Effectuate Payout of Securitization
Facilities, (III) Granting Adequate Protection to Pre-Petition Secured
Parties Pursuant to 11 U.S.C. §§ 361, 362, 363 and 364 and (IV) Scheduling
Final Hearing Pursuant to Bankruptcy Rules 4001(B) and (C) (the “Interim Order”); and in accordance with Rules 2002,
4001(b), (c), and (d), and 9014 of the Bankruptcy Rules and the local rules of
the Bankruptcy 

 

7

 

Court, due and proper notice of
the DIP Motion and the Final Hearing having been given; a Final Hearing having
been held and concluded on February 23, 2009; and it appearing that approval
of the relief requested in the DIP Motion is necessary to avoid immediate and
irreparable harm to the Debtors and otherwise is fair and reasonable and in the
best interests of the Debtors, their creditors, their estates and their equity
holders, and is essential for the continued operation of the Debtors’ business;
and it further appearing that, other than pursuant to the DIP Financing
Agreements, the Debtors are unable to secure (i) adequate unsecured credit
allowable under Bankruptcy Code Section 503(b)(1) as an
administrative expense, (ii) credit for money borrowed with priority over
any or all administrative expenses of the kind specified in Bankruptcy Code
Sections 503(b) or 507(b), (iii) credit for money borrowed secured
solely by a Lien on property of the estate that is not otherwise subject to a
Lien, or (iv) credit for money borrowed secured by a junior Lien on
property of the estate which is subject to a Lien; and, subject to the terms
hereof, there is adequate protection of the interests of holders of liens on
the property of the estates on which liens are to be granted; and all
objections, if any, to the entry of this Final Order having been withdrawn,
resolved or overruled by this Court; and after due deliberation and
consideration, and for good and sufficient cause appearing therefor:

 

BASED UPON THE RECORD ESTABLISHED AT THE
INTERIM HEARING AND THE FINAL HEARING, THE COURT HEREBY MAKES THE FOLLOWING
FINDINGS OF FACT AND CONCLUSIONS OF LAW:

 

A.                                   Petition Date.  On January 26, 2009 (the “Petition Date”), the Debtors filed voluntary petitions
under Chapter 11 of the Bankruptcy Code with the United States Bankruptcy Court
for the District of Delaware (the “Court”).  The Debtors have continued in the management
and operation of their business and property as debtors-in-possession pursuant
to sections 1107 and 1108 of the Bankruptcy Code.  No trustee or examiner has been appointed in 

 

8

 

the Cases.  In addition, on January 26, 2009 an
initial order was entered in favor of the Canadian Debtors (except Smurfit-MBI
and SLP Finance General Partnership) under the Companies’ Creditors Arrangement
Act (Canada) in the Ontario Superior Court of Justice.  Furthermore, on January 28, 2009
Smurfit-MBI and SLP Finance General Partnership were granted recognition of
their respective Chapter 11 Cases in the Canadian Court and an order was
entered granting charges over the assets of each of Smurfit-MBI and SLP Finance
General Partnership to secure their respective DIP Obligations, under Section 268
of the Bankruptcy and Insolvency Act (Canada).

 

B.                                     Jurisdiction and Venue.  This Court has jurisdiction over these
proceedings, pursuant to 28 U.S.C. §§ 157(b) and 1334, and over the
persons and property affected hereby.  Consideration
of the DIP Motion constitutes a core proceeding under 28 U.S.C. §
157(b)(2).  Venue for the Cases and
proceedings on the DIP Motion is proper before this Court pursuant to 28 U.S.C.
§§ 1408 and 1409.

 

C.                                     Committee Formation.  On February 5, 2009, the United
States Trustee for the District of Delaware appointed an official committee of
unsecured creditors in the Cases (the “Statutory Committee”).

 

D.                                    Interim Order.  At the Interim Hearing, the Bankruptcy
Court approved the Debtors’ execution, delivery and performance of the DIP
Financing Agreements pending the Final Hearing on the DIP Motion.  Pursuant to the Interim Order, the Final
Hearing was scheduled for February 23, 2009.

 

E.                                      Notice. 
The Final Hearing is being held pursuant to the authorization of
Bankruptcy Rule 4001.  Notice of the
Final Hearing and the relief requested in the DIP Motion has been provided by
the Debtors, whether by telecopy, email, overnight courier or hand delivery 

 

9

 

on January 26, 2009, to
certain parties in interest, including:  (i) the
Office of the United States Trustee, (ii) the United States Securities and
Exchange Commission, (iii) the Office of the United States Attorney for
the District of Delaware, (iv) the Internal Revenue Service, (v) the
Debtors’ thirty (30) largest unsecured creditors on a consolidated basis, (vi) counsel
to the Pre-Petition Agents, (vii) the Pre-Petition Agents, (viii) counsel
to the DIP Agents, and (ix) the indenture trustees for the Debtors’ five
series of outstanding pre-petition senior notes.  Under the circumstances, such notice of the
Final Hearing is due and sufficient notice and complies with Bankruptcy Rule 4001
under the circumstances.

 

F.                                      Debtors’ Acknowledgements and Agreements.
 Without prejudice to the rights of
parties in interest as set forth in paragraph 6 below, the Debtors admit,
stipulate, acknowledge and agree as follows (collectively, paragraphs D (i) through
D (vi) hereof shall be referred to herein as the “Debtors’
Stipulations”):

 

(i)                                     Pre-Petition
Financing Agreements.  Prior to
the Petition Date, certain of the Debtors were party to (a) that certain
Credit Agreement, dated as of November 1, 2004, by and between the
Borrowers, SSCC, as guarantor, the banks and other financial institutions from
time to time parties thereto (the “Pre-Petition Lenders”),
Deutsche Bank Trust Company Americas, as administrative agent (the “U.S. Pre-Petition Agent”), and Deutsche Bank AG, as
Canadian administrative agent (together with the U.S. Pre-Petition Agent, the “Pre-Petition Agents”, and collectively with the
Pre-Petition Lenders, the “Pre-Petition Secured
Parties”), (b) that certain Guarantee and Collateral Agreement
(U.S.), dated as of November 1, 2004, executed by the Borrowers, SSCC and
certain subsidiaries of SSCC, in favor of the U.S. Pre-Petition Agent, and (c) all
other agreements, documents, notes, certificates, and instruments executed
and/or delivered with, to, or in favor of Pre-Petition Secured Parties,
including, without limitation, security agreements, guaranties, and UCC
financing statements and all other related agreements, documents, notes,
certificates, and instruments executed and/or delivered in connection therewith
or related thereto (collectively, as amended, modified or supplemented and in
effect, the “Pre-Petition Financing Agreements”).

 

(ii)                                  Pre-Petition
Debt Amount.  As of the Petition
Date, certain of the Debtors were indebted under the Pre-Petition Financing
Agreements (a) on account of Loans (as defined in the Pre-Petition
Financing Agreements) made to 

 

10

 

SSCE, in the approximate aggregate principal amount of not less than
approximately US$746,000,000 plus letters of credit in the approximate
aggregate stated amount of not less than approximately US$252,800,000, plus, in
each case, interest accrued and accruing (at the rates (including, to the
extent allowed, the default rate) set forth in the Pre-Petition Financing
Agreements), costs, expenses, fees (including attorneys’ fees and legal
expenses), other charges (in each case, to the extent reimbursable under the
Pre-Petition Financing Agreements) and other obligations, including, without
limitation, on account of Swap Agreements (as defined in the Pre-Petition Financing
Agreements) with a Pre-Petition Lender or an affiliate thereof, cash management
services, overdrafts, and temporary advances, and (b) on account of Loans
made to SSC Canada, in the approximate aggregate principal amount of not less
than approximately US$366,000,000, plus letters of credit in the approximate
aggregate stated amount of not less than approximately US$27,000,000, plus, in
each case, interest accrued and accruing, costs, expenses, fees (including
attorneys’ fees and legal expenses), other charges (in each case, to the extent
reimbursable under the Pre-Petition Financing Agreements) and obligations,
including, without limitation, Swap Agreements (as defined in the Pre-Petition
Financing Agreements) with a Pre-Petition lender or an affiliate thereof, cash
management services, overdrafts, and temporary advances (collectively the “Pre-Petition Debt”). 
SSCC guaranteed all of the obligations of SSCE (the “Pre-Petition
U.S. Obligations”) under the Pre-Petition Financing Agreements.  Certain material subsidiaries of SSC Canada
(the “Pre-Petition Canadian Guarantors”), as
well as SSCC and SSCE, guaranteed the obligations of SSC Canada (the “Pre-Petition Canadian Obligations”) under the Pre-Petition
Credit Agreement .

 

(iii)                               Pre-Petition
Collateral.  To secure the
Pre-Petition Debt, certain of the Debtors granted security interests, mortgages
and liens (the “Pre-Petition Liens”) to the
Pre-Petition Secured Parties on the personal and real property and the proceeds
thereof as described and defined as “Collateral” in the Pre-Petition Financing
Agreements (collectively, the “Pre-Petition Collateral”).(3) 
The Pre-Petition U.S. Obligations are secured by those Pre-Petition Liens
granted by SSCC and SSCE, as well as by the capital stock of SSCE and 65% of
the capital stock of SSC Canada.  The
Pre-Petition Canadian Obligations are secured by those Pre-Petition Liens
granted by SSC Canada and the Pre-Petition Canadian Guarantors, pledges of all
of the capital stock of the Pre-Petition Canadian Guarantors, and the liens and
stock pledges securing the Pre-Petition U.S. Obligations.  The Pre-Petition Liens have priority over all
other liens, except (a) the DIP Liens (as defined below), (b) the
Carve Out (as defined below) to which the DIP Liens are subject, (c) the
liens securing the Calpine Debt, including the liens on the property of the
estate of Calpine (the “Calpine Property”)
granted to

 

(3) The acknowledgment and agreement by the Debtors of the
Pre-Petition Debt and the related liens, rights priorities and protections
granted to or in favor of the Pre-Petition Secured Parties, as set forth herein
and in the Pre-Petition Financing Agreements, shall constitute a proof of claim
on behalf of the Pre-Petition Lenders in these Cases in respect of the Pre-Petition
Debt.

 

11

 

the holders of the Calpine Debt (the “Calpine Lenders”) pursuant to the
Interim Order (I) Authorizing Use of Cash Collateral By Calpine
Corrugated, LLC Pursuant to 11 U.S.C. § 363; (II) Granting Adequate
Protection to Certain Prepetition Lenders Pursuant to 11 U.S.C. §§ 361 and 363;
and (III) Scheduling a Final Hearing and any related final order (the “Calpine Lender Liens”) and (d) any liens which are
valid, properly perfected, unavoidable, and senior to or pari passu
with the Pre-Petition Liens (the “Priority Liens”).

 

(iv)                              Pre-Petition
Liens.  (a) As of the
Petition Date, the Debtors believe that (i) the Pre-Petition Liens are
valid, binding, enforceable, and perfected first-priority liens, subject only
to any Priority Liens and are not subject to avoidance, recharacterization or
subordination pursuant to the Bankruptcy Code or applicable non-bankruptcy law,
(ii) the Pre-Petition Debt constitutes legal, valid and binding
obligations of certain of the Debtors, enforceable in accordance with the terms
of the Pre-Petition Financing Agreements (other than in respect of the stay of
enforcement arising from section 362 of the Bankruptcy Code), no offsets,
defenses or counterclaims to any of the Pre-Petition Debt exists, and no
portion of the Pre-Petition Debt is subject to avoidance, recharacterization or
subordination pursuant to the Bankruptcy Code or applicable non-bankruptcy law,
and (iii) the Pre-Petition Debt constitutes allowable secured claims, and (b) on
the date that the Interim Order was entered (and confirmed by the entry of this
Final Order), each Debtor has waived, discharged and released the Pre-Petition
Secured Parties, together with their affiliates, agents, attorneys, officers,
directors and employees, of any right any Debtor may have (x) to challenge
or object to the amount, validity, or enforceability of the Pre-Petition Debt, (y) to
challenge or object to the validity, enforceability, or non-voidability of the
Pre-Petition Liens securing the Pre-Petition Debt, and (z) to bring or
pursue any and all claims, counterclaims, objections, challenges, causes of
action and/or choses in action against any of the Pre-Petition Parties or
arising out of, based upon or related to the Pre-Petition Financing Agreements
or otherwise.

 

(v)                                 Cash
Collateral.  The Pre-Petition
Secured Parties have a security interest in certain of the Cash Collateral
constituting proceeds of Pre-Petition Collateral to secure the Pre-Petition
Debt.

 

(vi)                              Priming
of DIP Facility.  In entering
into the DIP Financing Agreements, and as consideration therefor, the Debtors
hereby agree that until such time as all DIP Obligations are paid in full in
cash (or other arrangements for payment of the DIP Obligations satisfactory to
the DIP Agents have been made) and the DIP Financing Agreements are terminated
in accordance with the terms thereof, except with respect to the Calpine
Property, the Debtors shall not in any way prime, seek to prime, or support any
other party that seeks to prime the security interests and DIP Liens provided
to the DIP Secured Parties under the Interim Order or this Final Order, as
applicable, by offering a subsequent lender or a party-in-interest a superior
or pari passu lien or claim pursuant to Section 364(d) of
the Bankruptcy Code or otherwise.

 

12

 

G.                                     Findings Regarding the Post-Petition Financing.

 

(i)                                     Need for Post-Petition Financing.  An immediate need exists for the Debtors
to obtain funds from the DIP Facility in order to continue operations and to
administer and preserve the value of their estates.  The ability of the Debtors to finance their
operations, to preserve and maintain the value of the Debtors’ assets and
maximize a return for all creditors requires the availability of working
capital from the DIP Facility, the absence of which would immediately and
irreparably harm the Debtors, their estates, their creditors and equity holders
and the possibility for a successful reorganization of the Debtors.

 

(ii)                                  No Credit Available on More Favorable Terms.  The Debtors have been unable to obtain (a) adequate
unsecured credit allowable under Bankruptcy Code section 503(b)(1) as an
administrative expense, (b) credit for money borrowed with priority over
any or all administrative expenses of the kind specified in Bankruptcy Code
Sections 503(b) or 507(b), (c) credit for money borrowed secured
solely by a Lien on property of the estate that is not otherwise subject to a
Lien, or (d) credit for money borrowed secured by a junior Lien on
property of the estate which is subject to a Lien, in each case, on more
favorable terms and conditions than those provided in the DIP Credit Agreement,
the Interim Order and this Final Order. 
The Debtors are unable to obtain credit for borrowed money without
granting to the DIP Secured Parties the DIP Protections (as defined below).

 

H.                                    Use of Proceeds of the DIP Facility.  Proceeds of the DIP Facility (net of any
amounts used to pay fees, costs and expenses under the DIP Financing
Agreements) shall be used, in each case in a manner consistent with the terms
and conditions of the DIP Financing Agreements, and in a manner substantially
consistent with the Budget solely for (i) working capital, Letters of
Credit and Capital Expenditures; (ii) other general corporate purposes of
the

 

13

 

Debtors (including intercompany
loans to the extent permitted by the DIP Credit Agreement); (iii) payment
of any related transaction costs, fees and expenses; and (iv) the costs of
administration of the Cases; provided, however, that no more than
US$250,000 of the proceeds of the Loans or the DIP Collateral may be used by
the Statutory Committee of unsecured creditors to investigate, and by the
monitor in the Canadian Cases to review, the Pre-Petition Liens and claims of
the Pre-Petition Agents and the Pre-Petition Lenders.  In addition, while the refinancing in full or
defeasance of Indebtedness outstanding under the Receivables Securitization
Program has been effectuated in accordance with the provisions of the Interim
Order, those provisions are hereby incorporated by reference and the completion
of all aspects of such refinancing or defeasance are contemplated hereby.

 

I.                                         Application of Proceeds of DIP Collateral.  All proceeds of the sale or other
disposition of the DIP Collateral (as defined below) shall be applied in
accordance with the terms and conditions of this Final Order and the DIP Credit
Agreement.

 

J.                                        Adequate Protection for Pre-Petition Secured
Parties.  As a result of
the grant of the DIP Liens, subordination to the Carve Out, and the use of
Collateral, including Cash Collateral, authorized herein, the Pre-Petition
Secured Parties are entitled to receive adequate protection pursuant to
sections 361, 362, 363 and 364 of the Bankruptcy Code as set forth herein.

 

K.                                    Section 552.  In light of the subordination of their
liens and superpriority claims to (i) the Carve Out in the case of the DIP
Secured Parties, and (ii) the Carve Out and the DIP Liens in the case of
the Pre-Petition Secured Parties, the DIP Secured Parties and the Pre-Petition
Secured Parties are each entitled to all of the rights and benefits of section
552(b) of the Bankruptcy Code, and the “equities of the case” exception
shall not apply.

 

14

 

L.                                      Extension of Financing.  The DIP Secured Parties have indicated a
willingness to provide financing to certain of the Debtors in accordance with
the DIP Credit Agreement.  Such financing
is essential to the Debtors’ estate.  The
DIP Secured Parties are good faith financiers. 
The DIP Secured Parties’ claims, superpriority claims, security
interests and liens and other protections granted pursuant to the Interim
Order, this Final Order and the DIP Facility will not be affected by any
subsequent reversal, modification, vacatur or amendment of the Interim Order,
this Final Order or any other order, as provided in section 364(e) of the
Bankruptcy Code.

 

M.                                 Business Judgment and Good Faith Pursuant to Section 364(e).

 

(i)                                     The
terms and conditions of the DIP Facility and the DIP Credit Agreement, and the
fees paid and to be paid thereunder, are fair, reasonable, and the best
available under the circumstances, reflect the Debtors’ exercise of prudent
business judgment consistent with their fiduciary duties, and are supported by
reasonably equivalent value and consideration;

 

(ii)                                  the
DIP Facility was negotiated in good faith and at arms’ length between the
Debtors and the DIP Secured Parties; and

 

(iii)                               use
of the proceeds to be extended under the DIP Facility will be so extended in
good faith, and for valid business purposes and uses, as a consequence of which
the DIP Secured Parties are entitled to the protection and benefits of section
364(e) of the Bankruptcy Code.

 

N.                                    Relief Essential; Best Interest.  The relief requested in the DIP Motion
(and as provided in the Interim Order and in this Final Order) is necessary,
essential, and appropriate for the continued operation of the Debtors’ business
and the management and preservation of the

 

15

 

Debtors’ assets and personal
property.  It is in the best interest of
Debtors’ estates that the Debtors be allowed to establish the DIP Facility
contemplated by the DIP Credit Agreement.

 

O.                                    Entry of Final Order.  For the reasons stated above, the Debtors
have requested immediate entry of this Final Order pursuant to Bankruptcy Rule 4001(c)(2).

 

NOW, THEREFORE, on
the DIP Motion of the Debtors and the record before this Court with respect to
the DIP Motion, and with the consent of the Debtors, the Pre-Petition Secured
Parties and the DIP Secured Parties to the form and entry of this Final Order,
and good and sufficient cause appearing therefor,

 

IT IS ORDERED that:

 

1.                                       Motion Granted.  The DIP Motion is granted in accordance
with the terms and conditions set forth in this Final Order and the DIP Credit
Agreement.

 

2.                                       DIP Financing Agreements.

 

(a)                                  Approval of Entry Into DIP Financing Agreements.  The Debtors are expressly and immediately
authorized, empowered and directed to execute and deliver the DIP Financing
Agreements (to the extent not previously executed or delivered) on a final
basis and to incur and to perform the DIP Obligations in accordance with, and
subject to, the terms of this Final Order and the DIP Financing Agreements, and
to execute and deliver all instruments, certificates, agreements and documents
which may be required or necessary for the performance by the Debtors under the
DIP Facility and the creation and perfection of the DIP Liens described in and
provided for by this Final Order and the DIP Financing Agreements.  The Debtors are hereby authorized and
directed to do and perform all acts, pay the principal, interest, fees,
expenses and other amounts described in the DIP Credit Agreement and all other
DIP Financing Agreements as such become due, including, without limitation,
closing fees, administrative fees,

 

16

 

commitment fees, letter of
credit fees and reasonable attorneys’, financial advisors’ and accountants’
fees and disbursements as provided for in the DIP Credit Agreement, which
amounts shall not otherwise be subject to approval of this Court.  The DIP Financing Agreements represent valid
and binding obligations of the Debtors enforceable against the Debtors in
accordance with their terms.

 

(b)                                 Authorization to Borrow.  In order to enable them to continue to
operate their business, subject to the terms and conditions of this Final
Order, the DIP Credit Agreement, the other DIP Financing Agreements, and the
Budget, the Debtors are hereby authorized under the DIP Facility to borrow up
to an aggregate committed amount of US$750,000,000 (consisting of a
US$400,000,000 term loan facility for borrowings by SSCE; a US$35,000,000 term
loan facility for borrowings by SSC Canada; a US$215,000,000 revolving credit
facility for borrowings by SSCE and/or SSC Canada; a US$35,000,000 revolving
credit and letter of credit facility for borrowings by SSCE and/or SSC Canada;
and a US$65,000,000 revolving credit and letter of credit facility available in
U.S. dollars or Canadian dollars for borrowings by SSCE and/or SSC Canada; the
actual principal amount of any such loans at any time subject to those
conditions set forth in the DIP Credit Agreement, including the conversion provisions
in Section 9.23 of the DIP Credit Agreement); all borrowings by SSCE shall
be guaranteed by the other U.S. Debtors (other than SMBI Inc.) and SSC Canada
and all borrowings by SSC Canada shall be guaranteed by all of the other
Debtors; all in accordance with the terms and conditions of the DIP Credit
Agreement.

 

(c)                                  Application of DIP Proceeds.  The proceeds of the DIP Facility (net of
any amounts used to pay fees, costs and expenses under the DIP Credit
Agreement) shall be used, in each case in a manner consistent with the terms
and conditions of the DIP Financing

 

17

 

Agreements, and in a manner
substantially consistent with the Budget solely for (i) working capital,
Letters of Credit and Capital Expenditures; (ii) other general corporate
purposes of the Debtors (including intercompany loans to the extent permitted
by the DIP Credit Agreement); (iii) payment of any related transaction
costs, fees and expenses; and (iv) the costs of administration of the
Cases; provided, however, that no more than US$250,000 of the proceeds
of the Loans or the DIP Collateral may be used by the Statutory Committee of
unsecured creditors to investigate, and by the monitor in the Canadian Cases to
review, the Pre-Petition Liens and claims of the Pre-Petition Agent and the
Pre-Petition Lenders.  Furthermore, all
of the provisions of the Interim Order, related to the refinancing in full or
defeasance of Indebtedness outstanding under the Receivables Securitization
Program are hereby incorporated by reference and the completion of all aspects
of such refinancing or defeasance is hereby authorized.

 

 (d)                              Conditions Precedent.  The DIP Secured Parties shall have no
obligation to make any loan or advance under the DIP Credit Agreement unless
the conditions precedent to make such loan under the DIP Credit Agreement have
been satisfied in full or waived in accordance with the DIP Credit Agreement.

 

(e)                                  Post-Petition Liens.  Effective immediately upon the execution
of the Interim Order, the DIP Agents (as provided in the DIP Credit Agreement
and for the ratable benefit of the DIP Secured Parties) were granted (which
grant is hereby ratified, confirmed and approved on a final basis) and upon
entry of this Final Order, are hereby granted the following security interests
and liens (all property identified in clauses (i)(a), (b) and (c), and
(ii)(a), (b) and (c) below (together with all cash and non-cash
proceeds of any of said property) being collectively referred to as the “DIP Collateral”);  provided,
however, that no U.S. Debtor shall be required to pledge in excess of 65% of
the capital stock of its direct Foreign Subsidiaries

 

18

 

(other than capital stock of
SSC Canada) or any of the capital stock of any indirect Foreign Subsidiaries
(all such liens and security interests granted to the DIP Agents, as provided
in the DIP Credit Agreement and for the ratable benefit of the DIP Secured
Parties, pursuant to the Interim Order, this Final Order and the DIP Financing
Agreements,  the “DIP Liens”):

 

(i)                                     With
respect to the DIP Obligations of the U.S. Debtors and SSC Canada:

 

(a)                                  Pursuant
to section 364(c)(2) of the Bankruptcy Code, the U.S. DIP Agent is hereby
granted (for the ratable benefit of the DIP Secured Parties) a perfected first
priority Lien on all unencumbered property of the U.S. Debtors and SSC Canada
(including any proceeds of Avoidance Actions) and on all cash maintained in any
Collateral Account and any investments of the funds contained therein, provided
that amounts in the Collateral Accounts shall not be subject to the Carve Out
or the CCAA Charges;

 

(b)                                 Pursuant
to section 364(c)(3) of the Bankruptcy Code, the U.S. DIP Agent (for the
ratable of the DIP Secured Parties) is hereby granted a perfected junior Lien
upon all property of the U.S. Debtors and SSC Canada that is subject to valid
and perfected and unavoidable Liens in existence on the Petition Date or that
is subject to valid Liens in existence on the Petition Date that are perfected
subsequent to the Petition Date as permitted by Section 546(b) of the
Bankruptcy Code (other than certain property that is subject to the Primed
Liens, which Primed Liens shall be primed by the liens to be granted to the
U.S. DIP Agent described in clause (c) below); and

 

(c)                                  Pursuant
to section 364(d)(1) of the Bankruptcy Code, the U.S. DIP Agent (for the
ratable of the DIP Secured Parties) is hereby granted a perfected first
priority, senior priming Lien on all property of the U.S. Debtors and SSC
Canada (including, without limitation, inventory, receivables, rights under
license agreements, property, plant and equipment and the residual interest of
the U.S. Debtors and SSC Canada in any Receivables Securitization Programs)
that is subject to the existing liens which secure (x) the obligations of
the Debtors under or in connection with the Pre-Petition Financing Agreement,
and (y) other Liens, obligations or indebtedness of the Debtors junior to
the Pre-Petition Financing Agreement (collectively, the “Primed
Liens”), which Primed Liens shall be primed by and made subject and
subordinate to the perfected first priority senior priming Liens to be granted
to the U.S. DIP Agent, which senior priming Liens in favor of the U.S. DIP
Agent shall also prime any Liens granted after the Petition Date to provide
adequate protection Liens in respect of any of the Primed Liens, but shall not
prime

 

19

 

(1) Non-Primed Liens which secure the Calpine Debt (or any adequate
protection liens on the assets of Calpine granted to the holders of the Calpine
Debt) or (2) other Non-Primed Liens solely to the extent such Non-Primed
Liens secure claims in an aggregate amount less than or equal to US$60,000,000
(see attached Exhibit A).

 

(ii)                                  With
respect to the DIP Obligations of the Canadian Guarantors relative to the
Canadian Term Loan and the Canadian Revolving Facility:

 

(a)                                  Pursuant
to section 364(c)(2) of the Bankruptcy Code, the Canadian DIP Agent is
hereby granted (for the ratable benefit of the DIP Secured Parties) a perfected
first priority Lien on all unencumbered property of the Canadian Guarantors
(including any proceeds of Avoidance Actions) and on all cash maintained in any
Collateral Account and any direct investments of the funds contained therein, provided
that amounts in the Collateral Accounts shall not be subject to the Carve Out
or the CCAA Charges;

 

(b)                                 Pursuant
to section 364(c)(3) of the Bankruptcy Code, the Canadian DIP Agent (for
the ratable of the DIP Secured Parties) is hereby granted a perfected junior
Lien upon all property of the Canadian Guarantors that is subject to valid and
perfected and unavoidable Liens in existence on the Petition Date or that is
subject to valid Liens in existence on the Petition Date that are perfected
subsequent to the Petition Date as permitted by Section 546(b) of the
Bankruptcy Code (other than certain property that is subject to the Primed
Liens, which Primed Liens shall be primed by the liens to be granted to the
U.S. DIP Agent described in clause (c) below); and

 

(c)                                  Pursuant
to section 364(d)(1) of the Bankruptcy Code, the Canadian DIP Agent (for
the ratable of the DIP Secured Parties) is hereby granted a perfected first
priority, senior priming Lien on all property of the Canadian Guarantors
(including, without limitation, inventory, receivables, rights under license
agreements, property, plant and equipment and the residual interest of the
Canadian Guarantors in any Receivables Securitization Programs) that is subject
to the Primed Liens, which Primed Liens shall be primed by and made subject and
subordinate to the perfected first priority senior priming Liens to be granted
to the U.S. DIP Agent, which senior priming Liens in favor of the U.S. DIP
Agent shall also prime any Liens granted after the Petition Date to provide
adequate protection Liens in respect of any of the Primed Liens, but shall not
prime (1) Non-Primed Liens which secure the Calpine Debt or (2) other
Non-Primed Liens solely to the extent such Non-Primed Liens secure claims in an
aggregate amount less than or equal to US$60,000,000 (see attached Exhibit A).

 

20

 

Notwithstanding anything to the contrary in the DIP Credit Agreement
and this Final Order, the DIP Liens on the Calpine Property shall be junior to
the Calpine Lender Liens in the Calpine Property.

 

(f)                                    DIP Lien Priority.  Solely to the extent provided in the DIP
Credit Agreement, the Interim Order and this Final Order, the DIP Liens are
subject only to the Non-Primed Liens and, in the event of the occurrence and
during the continuance of an Event of Default or Default or both, to the Carve
Out and the CCAA Charges.  The DIP
Liens granted by the U.S. Debtors (other than SMBI, Inc.) and SSC
Canada shall secure all of the DIP Obligations, and the DIP Liens granted by
the Canadian Debtors (other than SSC Canada) and SMBI, Inc. shall
secure only the DIP Obligations of the Canadian Guarantors relative
to the Canadian Term Loan and the Canadian Revolving Facility.  The DIP Liens shall not be made subject to or
pari passu with any lien or security
interest (other than the Non-Primed Liens) by any court order heretofore or
hereafter entered in the Cases and shall be valid and enforceable against any
trustee appointed in the Cases, upon the conversion of any of the Cases to a
case under Chapter 7 of the Bankruptcy Code or in any other proceedings related
to any of the foregoing (any “Successor Cases”),
and/or upon the dismissal of any of the Cases. 
The DIP Liens shall not be subject to Sections 506(c), 510, 549, 550 or
551 of the Bankruptcy Code or the “equities of the case” exception of Section 552
of the Bankruptcy Code.  To avoid any
doubt, the liens securing the Pre-Petition Debt are to be subordinated to, and
junior to, the liens and claims of the DIP Secured Parties.

 

(g)                                 Enforceable Obligations.  The DIP Financing Agreements shall
constitute and evidence the valid and binding obligations of the Debtors, which
obligations shall be enforceable against the Debtors, their estates and any
successors thereto and their creditors, in accordance with their terms.

 

21

 

(h)                                 Protection of DIP Secured Parties and Other Rights.  From and after the Petition Date, the
Debtors shall use the proceeds of the extensions of credit under the DIP
Facility only for the purposes specifically set forth in the DIP Credit
Agreement, the Interim Order and this Final Order and in substantial compliance
with the Budget.

 

(i)                                     Superpriority Administrative Claim Status.

 

(i)                                     The
DIP Obligations of the U.S. Debtors and SSC Canada, pursuant to Section 364(c)(1) of
the Bankruptcy Code, shall at all times constitute an allowed Superpriority
Claim (the “U.S. DIP Superpriority Claim”)
and be payable from and have recourse to all pre-petition and post-petition
property of the estates of the U.S. Debtors and SSC Canada and all proceeds
thereof, subject to the Carve-Out and, in the case of SSC Canada, the CCAA
Charges, and, in the case of Calpine, any superpriority claim granted to the
Calpine Lenders against Calpine.

 

(ii)                                  The
DIP Obligations of the Canadian Guarantors relative to the Canadian Term Loan and
the Canadian Revolving Facility, pursuant to Section 364(c)(1) of the
Bankruptcy Code, shall at all times constitute an allowed Superpriority Claim
(the “Canada DIP Superpriority Claim” and,
together with the U.S. DIP Superpriority Claim and the DIP Liens, the “DIP Protections”) and be payable from and have recourse to
all pre-petition and post-petition property of the estates of the Canadian
Guarantors and all proceeds thereof, subject to the CCAA Charges and, in the
case of SSC Canada, the Carve-Out.

 

(iii)                               Other
than as provided in the DIP Credit Agreement, the Interim Order and this Final
Order with respect to the Carve Out, the CCAA Charges and the Calpine Property,
no costs or expenses of administration, including, without limitation,
professional fees allowed and payable under Bankruptcy Code sections 328, 330,
and 331, or otherwise, that have 

 

22

 

been or may be incurred in
these proceedings, or in any Successor Cases, and no priority claims are, or
will be, senior to, prior to or on a parity with the DIP Protections or the DIP
Obligations, or with any other claims of the DIP Secured Parties arising
hereunder.

 

3.                                       Authorization to Use Cash Collateral and Proceeds
of DIP Financing Agreement.

 

Pursuant to the terms and conditions of the Interim Order, this Final
Order, the DIP Facility and the DIP Credit Agreement, and in a manner
substantially consistent with the Budget (as the same may be modified,
supplemented or updated from time to time consistent with the terms and
conditions of the DIP Credit Agreement), (a) each Debtor is authorized to
use the advances under the DIP Credit Agreement from and after the Closing
Date, and (b) each Debtor is authorized to use all Cash Collateral of the
Pre-Petition Secured Parties, and the Pre-Petition Secured Parties are directed
promptly to turn over to the Debtors all Cash Collateral received or held by
them, provided that the Pre-Petition Secured Parties are granted
adequate protection as hereinafter set forth. 
The Debtors’ right to use the advances under the DIP Credit Agreement
shall terminate upon notice being provided by the DIP Agents to the Debtors (i) that
a DIP Order Event of Default (as defined below) has occurred and is continuing,
or (ii) of the termination of the DIP Credit Agreement.  The Debtors’ right to use the Cash Collateral
shall terminate upon notice being provided by the DIP Agents to the Debtors (i) that
a DIP Order Event of Default (as defined below) has occurred and is continuing,
and (ii) of the termination of the DIP Credit Agreement.  Nothing in this Final Order shall authorize
the disposition of any assets of the Debtors or their estates outside the
ordinary course of business or other proceeds resulting therefrom, except as
permitted in the DIP Credit Agreement (subject to any required Court approval).

 

23

 

4.                                       Adequate Protection for Pre-Petition Secured
Parties.  As adequate
protection for the interest of the Pre-Petition Secured Parties in the
Pre-Petition Collateral (including Cash Collateral) on account of the granting
of the DIP Liens, subordination to the Carve Out, the Debtors’ use of
Collateral, including Cash Collateral, and other decline in value arising out
of the automatic stay or the Debtors’ use, sale, or lease of the Pre-Petition
Collateral, or otherwise, the Pre-Petition Secured Parties shall receive
adequate protection as follows:

 

(a)                                  Pre-Petition Replacement Liens.  Solely to the extent of the diminution of
the value of the interest of the Pre-Petition Secured Parties in the
Pre-Petition Collateral, the Pre-Petition Secured Parties shall have, subject
to the terms and conditions set forth below, pursuant to sections 361, 363(e) and
364(d) of the Bankruptcy Code, junior replacement security interests in
and liens upon all of the property of the U.S. Debtors (including any proceeds
of Avoidance Actions) (the “Pre-Petition Replacement
Liens”) which security interests and liens shall be junior to the
DIP Liens, the Priority Liens (but only with respect to property that was
encumbered by Priority Liens as of the Petition Date), the Non-Primed Liens
which secure the Calpine Debt (or any adequate protection liens on the assets
of Calpine granted to the holders of the Calpine debt) and the Carve Out as
provided herein.

 

(b)                                 Pre-Petition Superpriority Claim.  Solely to the extent of the diminution of
the value of the interests of the Pre-Petition Secured Parties in the
Pre-Petition Collateral, the Pre-Petition Secured Parties shall have, subject
to the payment of the Carve Out and to any superpriority claim granted to the
Calpine Lenders against Calpine, an allowed superpriority administrative
expense claim (the “Pre-Petition
Superpriority Claim”) as provided for in section 507(b) of the
Bankruptcy Code, immediately junior to the claims under section 364(c)(1) of
the Bankruptcy Code held by the U.S. DIP Agent and the DIP Lenders and payable
from all 

 

24

 

property of the U.S. Debtors; provided,
however, that the Pre-Petition Agents and the Pre-Petition Secured
Parties shall not receive or retain any payments, property or other amounts in
respect of the superpriority claims under section 507(b) of the Bankruptcy
Code unless and until the DIP Obligations have indefeasibly been paid in cash
in full.  The Debtors shall also provide
such information, reports, and other information as reasonably requested from
time to time by the Pre-Petition Agents.

 

(c)                                  Adequate Protection Payment.  The Pre-Petition Agents shall receive
from the U.S. Debtors or SSC Canada adequate protection in the form of (i) immediate
cash payment of all accrued and unpaid interest (including any pre-petition
interest) under the Pre-Petition Credit Agreement and letter of credit fees at
the non-default contract rate applicable on the Petition Date as provided for
in the Pre-Petition Financing Agreements, and all other accrued and unpaid fees
and disbursements (including, but not limited to, fees and expenses owed to the
Pre-Petition Agents and incurred prior to the Petition Date), (ii) current
cash payments of all fees and expenses payable to the Pre-Petition Agents under
the Pre-Petition Financing Agreements, including, but not limited to, the
reasonable fees and disbursements of counsel, financial and other consultants
for the Pre-Petition Agents (including, but not limited to, such fees and
disbursements incurred prior to the Petition Date), and (iii) current cash
payments of all accrued but unpaid interest on the Pre-Petition Debt (including
Swap Agreements), and letter of credit and other fees, in each case at the
non-default contract rate applicable on the Petition Date (including LIBOR
pricing options) under the Pre-Petition Financing Agreements, provided
that, without prejudice to the rights of any other party to contest such
assertion, the Pre-Petition Secured Parties reserve their rights to assert
claims for the payment of additional interest calculated at any other
applicable rate of interest (including, without limitation, default rates), or 

 

25

 

on any other basis, provided
for in the Pre-Petition Financing Agreements (the “Adequate
Protection Payments”); provided, however, that SSC
Canada’s obligations with respect to the Adequate Protections Payments shall be
limited to those amounts relating to the Pre-Petition Canadian Obligations.

 

The payment of
the fees, expenses and disbursements set forth in this paragraph 4(c) of
this Final Order (including professional fees and expenses of Simpson Thacher &
Bartlett LLP, Capstone Advisory Group, LLC and any other professionals or
advisors retained by or on behalf of the Pre-Petition Agents) shall be made
within 10 business days after the receipt by the Debtors, the Statutory Committee
and the United States Trustee (the “Review Period”)
of invoices thereof (the “Invoiced Fees”)
(subject in all respects to applicable privilege or work product doctrines) and
without the necessity of filing formal fee applications, including such amounts
arising before and after the Petition Date; provided, however,
that the Debtors, the Statutory Committee and the United States Trustee may
preserve their right to dispute the reasonableness of any payment of any
portion of the Invoiced Fees by (i) filing with the Court, prior to
expiration of the Review Period, an objection and request for a hearing with
respect to such objection and (ii) providing notice of the objection and
requested hearing to the affected professional.

 

In the event
that it is determined by a final, non-appealable order that any payments
received by any of the Pre-Petition Agents and Pre-Petition Lenders as adequate
protection could not be applied to post-petition interest, fees and expenses
under 506 (b), any such payments may, upon appropriate notice, hearing and
order, be recharacterized as payment of principal or subject to such other
relief as the Court may order.

 

26

 

5.                                       Post-Petition Lien Perfection.  The Interim Order and this Final Order
shall be sufficient and conclusive evidence of the validity, perfection, and
priority of the DIP Liens and the Pre-Petition Replacement Liens without the
necessity of filing or recording any financing statement, deed of trust,
mortgage, or other instrument or document which may otherwise be required under
the law of any jurisdiction or the taking of any other action to validate or
perfect the DIP Liens and the Pre-Petition Replacement Liens or to entitle the
DIP Liens and the Pre-Petition Replacement Liens to the priorities granted
herein.  Notwithstanding the foregoing,
the DIP Secured Parties and the Pre-Petition Secured Parties (with respect to
the Pre-Petition Replacement Liens) may, each in their sole discretion, file
such financing statements, mortgages, security agreements, notices of liens and
other similar documents, and is hereby granted relief from the automatic stay
of section 362 of the Bankruptcy Code in order to do so, and all such financing
statements, mortgages, security agreements, notices and other agreements or
documents shall be deemed to have been filed or recorded at the time and on the
date of the commencement of the Cases. 
The Debtors shall execute and deliver to the DIP Secured Parties and the
Pre-Petition Secured Parties all such financing statements, mortgages, notices
and other documents as the DIP Secured Parties and the Pre-Petition Secured
Parties may reasonably request to evidence, confirm, validate or perfect, or to
insure the contemplated priority of, the DIP Liens and the Pre-Petition
Replacement Liens granted pursuant hereto. 
The DIP Agents, in their discretion, may file a photocopy of this Final
Order as a financing statement with any recording officer designated to file financing
statements or with any registry of deeds or similar office in any jurisdiction
in which any Debtor has real or personal property, and in such event, the
subject filing or recording officer shall be authorized to file or record such
copy of this Final Order.

 

27

 

6.                                       Reservation of Certain Third Party Rights and Bar
of Challenges and Claims.  Nothing
in this Final Order or the DIP Credit Agreement shall prejudice whatever rights
the Statutory Committee or any other party in interest (other than the Debtors)
may have (a) to object to or challenge the findings herein, including, but
not limited to, those in relation to (i) the validity, extent, perfection
or priority of the mortgage, security interests and liens of the Pre-Petition
Secured Parties in and to the Pre-Petition Collateral, or (ii) the
validity, allowability, priority, status or amount of the Pre-Petition Debt, or
(b) to bring suit against any of the Pre-Petition Secured Parties in
connection with or related to the Pre-Petition Debt, or the actions or
inactions of any of the Pre-Petition Secured Parties arising out of or related
to the Pre-Petition Debt or otherwise; provided, however, that,
unless the Statutory Committee or any other party in interest commences a
contested matter or adversary proceeding raising such objection or challenge,
or seeks standing to commence a contested matter or adversary proceeding to
raise such objection or challenge, including without limitation any claim
against the Pre-Petition Secured Parties in the nature of a setoff,
counterclaim or defense to the Pre-Petition Debt (including but not limited to,
those under sections 506, 544, 547, 548, 549, 550 and/or 552 of the Bankruptcy
Code or by way of suit against any of the Pre-Petition Secured Parties), on or before
(a) 90 days following the appointment of the Statutory Committee, or (b) such
other date that may be agreed to in writing by the Pre-Petition Agent and the
Statutory Committee, or (c) a date scheduled pursuant to an order of the
Court (the “Challenge Period,” and the date
that is the next calendar day after the termination of the Challenge Period, in
the event that no objection or challenge is raised during the Challenge Period,
shall be referred to as the “Challenge Period
Termination Date”), upon the Challenge Period Termination Date, any
and all such challenges and objections by any party (including, without
limitation, any official creditors’ committee(s), 

 

28

 

any Chapter 11 or Chapter 7
trustee appointed herein or in any Successor Case, and any other party in
interest) shall be deemed to be forever waived and barred, and the Pre-Petition
Debt shall be deemed to be an allowed claim within the meaning of section 506
of the Bankruptcy Code for all purposes in connection with the Cases and the
Debtors’ Stipulations shall be binding on all creditors, interest holders and
parties in interest.  To the extent any
such objection or complaint is filed, the findings herein shall nonetheless
remain binding and preclusive on the Statutory Committee and on any other
person or entity, except to the extent that such assertions were expressly
challenged in such objection or complaint. 
Nothing herein shall be deemed to grant standing to the Statutory
Committee or any other party in interest to commence such a contested matter or
adversary proceeding.

 

7.                                       Carve Out.  Subject to the terms and conditions
contained in this paragraph 7, the DIP Liens and DIP Superpriority Claims on
the one hand, and the Pre-Petition Liens, the Pre-Petition Replacement Liens
and the Pre-Petition Superpriority Claims, on the other, are subordinate only
to the Non-Primed Liens and the Priority Liens (but only with respect to
property that was encumbered by Priority Liens as of the Petition Date),
respectively, and the following: in the event of the occurrence and during the
continuance of an Event of Default or a Default or both:

 

(x)                                   with respect to U.S.
Loan Parties and their Cases and assets, (i) the payment of all allowed
and unpaid professional fees and disbursements incurred by (A) the U.S.
Loan Parties and (B) the Statutory Committee appointed in the Cases of the
U.S. Loan Parties, including the allowed and unpaid actual and necessary
out-of-pocket expense of members of the Statutory Committee 

 

29

 

incurred in the performance of the duties of such committee member, in
an aggregate amount of items (A) and (B) not in excess of
US$11,000,000 and (ii) the payment of fees pursuant to 28 U.S.C. § 1930
and to the Clerk of the Bankruptcy Court ((i) and (ii), collectively, the
“Carve-Out”);

 

(y)                                 the CCAA DIP Lenders’
Charge in the assets of the Canadian Loan Parties in the Canadian Cases will be
subject to the Canadian Court ordered administration charge in an aggregate
amount not in excess of US$1,000,000 (the “Administration Charge”)
for the payment of (a) allowed and unpaid professional fees and
disbursements incurred by professionals retained by the Canadian Loan Parties
and (b) allowed and unpaid professional fees and disbursements of the
monitor in the Canadian Cases including allowed and unpaid legal fees and
expenses of its counsel (and including any allowed and unpaid professional fees
and disbursements incurred by the parties referred to in (a) and (b),
prior to the occurrence of such Event of Default); and

 

(z)                                   the CCAA DIP
Lenders’ Charge in the assets of the Canadian Loan Parties in the Canadian
Cases will also be subject to the Canadian Court ordered directors charge in an
amount not exceeding US$8,600,000 (the “Directors Charge”,
and, together with the Administration Charge, the “CCAA
Charges”), securing the Canadian Loan Parties’ obligation to
indemnify the officers 

 

30

 

and directors of the Canadian Loan Parties for personal liability which
may arise from non-payment by the Canadian Loan Parties of the following (which
shall be separately identified on the most recent Borrowing Base Certificate): (a) all
outstanding and future wages, salaries, employee and pension benefits, vacation
pay, bonuses and expenses payable on or after the Filing Date, in each case
incurred in the ordinary course of business and consistent with existing
compensation policies and arrangements; (b) any statutory deemed trust
amounts in favour of the Crown in right of Canada or of any Province thereof or
any other taxation authority which are required to be deducted from employees’
wages, including, without limitation, amounts in respect of (i) employment
insurance, (ii) Canada Pension Plan, (iii) Quebec Pension Plan, and (iv) income
taxes; (c) all goods and services or other applicable sales taxes required
to be remitted by the Canadian Loan Parties in connection with the sale of
goods and services by the Canadian Loan Parties, but only where such sales
taxes are accrued or collected after the Filing Date, or where such sales taxes
were accrued or collected prior to the Filing Date but are not required to be
remitted until on or after the Filing Date; and (d) any amount payable to
the Crown in right of Canada or of any Province thereof or any political
subdivision thereof or any other taxation authority in respect of municipal
realty, municipal business or other taxes, assessments or 

 

31

 

levies of any nature or kind which are entitled at law to be paid in
priority to claims of secured creditors and which are attributable to or in
respect of the carrying on of the business by the Canadian Loan Parties;

 

provided that,
subject to paragraph 2(c) above, no portion of the Carve-Out or the
Administration Charge shall be utilized for the payment of professional fees
and disbursements incurred in connection with any challenge to the amount,
extent, priority, validity, perfection or enforcement of the Indebtedness of
the Loan Parties owed to the parties primed by the priming Liens or to the
collateral securing such Indebtedness or any other action against such
parties.  Amounts in the Collateral Accounts
shall not be subject to the Carve-Out, Administration Charge, or Directors
Charge.  Notwithstanding the foregoing,
so long as no Default or Event of Default shall have occurred and be
continuing, the Loan Parties shall be permitted to pay compensation and
reimbursement of expenses allowed and payable under 11 U.S.C. §§ 328, 330 and
331, or as allowed and payable pursuant to orders of the Canadian Court, as the
same may be due and payable, and any compensation and expenses previously paid,
or accrued but unpaid, prior to the occurrence of such Default or Event of
Default shall not reduce the Carve-Out or the Administration Charge.

 

8.                                       Payment of Compensation.  Nothing herein shall be construed as
consent to the allowance of any professional fees or expenses of any of the
Debtors, any official committee or of any person or shall affect the right of
the DIP Secured Parties or the Pre-Petition Agents to object to the allowance
and payment of such fees and expenses.

 

9.                                       Section 506(c) Claims.  As a further condition of the DIP
Facility and any obligation of the DIP Secured Parties to make credit
extensions pursuant to the DIP Financing 

 

32

 

Agreements, the Debtors (and
any successors thereto or any representatives thereof, including any trustees appointed
in the Cases or any Successor Cases (defined below)) shall be deemed to have
waived any rights, benefits, or causes of action under section 506(c) of
the Bankruptcy Code as they may relate to or be asserted against the DIP
Agents, the DIP Secured Parties, the DIP Liens, the Pre-Petition Agents, the
Pre-Petition Secured Parties, and the Pre-Petition Liens.  Nothing contained in the Interim Order or in
this Final Order shall be deemed a consent by the Pre-Petition Secured Parties
or the DIP Secured Parties to any charge, lien, assessment or claim against the
DIP Collateral or the Pre-Petition Collateral under Section 506(c) of
the Bankruptcy Code or otherwise.

 

10.                                 Collateral Rights.  Unless the DIP Agents have provided their
prior written consent or all DIP Obligations have been indefeasibly paid in
full in cash (or will be indefeasibly paid in full in cash upon entry of a
final, non-appealable order approving indebtedness described in subparagraph (a) below
or other arrangements for payment of the DIP Obligations satisfactory to the
DIP Agents have been made) and all Commitments have terminated, there shall not
be entered in these proceedings (except with respect to the bankruptcy case of
Calpine and the Calpine Property), or in any Successor Case, any order which
authorizes any of the following:

 

(a)                                  the
obtaining of credit or the incurring of indebtedness that is secured by a
security, mortgage, or collateral interest or other lien on all or any portion
of the DIP Collateral and/or entitled to priority administrative status which
is superior to or pari passu with those granted
pursuant to the Interim Order or this Final Order to the DIP Secured Parties;
or

 

(b)                                 the
use of Cash Collateral for any purpose other than to indefeasibly pay in full
in cash the DIP Obligations or as otherwise permitted in the DIP Credit
Agreement.

 

33

 

11.                                 Proceeds of Subsequent Financing.  Without limiting the provisions and
protections of paragraph 10 above, if at any time prior to the indefeasible
repayment in full in cash of all DIP Obligations and the termination of the DIP
Secured Parties’ obligations to make loans and advances under the DIP Facility
(including subsequent to the confirmation of any Chapter 11 plan or plans (the “Plan”) with respect to the Debtors), the Debtors’ estates,
any trustee, any examiner with enlarged powers or any responsible officer
subsequently appointed, shall obtain credit or incur debt pursuant to
Bankruptcy Code Sections 364(b), 364(c) or 364(d) in violation of the
DIP Credit Agreement, then all of the cash proceeds derived from such credit or
debt and all Cash Collateral shall immediately be turned over to the DIP Agents
in reduction of the DIP Obligations; provided, however, for the avoidance of
doubt, that the turn over requirements of this paragraph 11 shall not apply in
the bankruptcy case of Calpine with respect to the Calpine Property.

 

12.                                 Commitment Termination Date.  All (a) DIP Obligations shall be
immediately due and payable, and (b) authority to use the proceeds of the
DIP Financing Agreements and to use Cash Collateral shall cease, both on the
date that is the earliest to occur of:  (i) the
Maturity Date, (ii) the Effective Date, and (iii) the acceleration of
the Loans and the termination of the Revolving Commitments in accordance with
the DIP Credit Agreement (the “Commitment Termination
Date”).

 

13.                                 Payment from Proceeds of DIP Collateral.  Until the DIP Obligations have been
indefeasibly paid in full in cash (or other written arrangements satisfactory
to the DIP Agents for payment of the DIP Obligations have been made in the DIP
Credit Agreement or otherwise), except with respect to the Calpine Property,
all products and proceeds of the DIP Collateral shall be (i) remitted to
accounts maintained at the DIP Agents in accordance with the 

 

34

 

Credit Agreement and (ii) applied
by the DIP Agents to the outstanding DIP Obligations as and to the extent set
forth in the DIP Credit Agreement; provided, however, for the avoidance of
doubt, that any Non-Primed Liens on DIP Collateral shall attach, to the same
extent and priority, to the proceeds of such DIP Collateral that secure such
Non-Primed Liens, and nothing herein alters the rights of any holders of
Non-Primed Liens with respect to such proceeds from any sale pursuant to
section 363 of the Bankruptcy Code of DIP Collateral securing such Non-Primed
Liens.

 

14.                                 Disposition of DIP Collateral.  The Debtors shall not sell, transfer,
lease, encumber or otherwise dispose of any portion of the DIP Collateral,
without the prior written consent of the requisite DIP Secured Parties required
under the DIP Credit Agreement (and no such consent shall be implied, from any
other action, inaction or acquiescence by the DIP Secured Parties or an order
of this Court), except for the Calpine Property, sales of Inventory in the ordinary
course of business or except as otherwise provided for in the DIP Credit
Agreement or this Final Order and approved by the Bankruptcy Court to the
extent required under applicable bankruptcy law.

 

15.                                 Events of Default.  The occurrence of the Commitment
Termination Date or, if sooner, the DIP Agents’ furnishing the Debtors with
notice of the occurrence of any Event of Default (as defined in the DIP Credit
Agreement) shall constitute a “DIP Order Event of
Default”.  Unless and until
the DIP Obligations are indefeasibly paid in full in cash (or other
arrangements for payment of the DIP Obligations satisfactory to the DIP Agents
have been made) and all Commitments have irrevocably terminated, all Letters of
Credit have been cash collateralized as required by the DIP Credit Agreement,
and all DIP Obligations which survive termination have been cash collateralized
to the reasonable satisfaction of the DIP Agents, the 

 

35

 

protections afforded to the
Pre-Petition Secured Parties and the DIP Secured Parties pursuant to the
Interim Order, this Final Order and under the DIP Credit Agreement, and any
actions taken pursuant thereto, shall survive the entry of any order confirming
a Plan or converting these cases into a Successor Case, and the DIP Liens, the
DIP Super-Priority Claim, the Pre-Petition Replacement Liens and the
Pre-Petition Superpriority Claim shall continue in these proceedings and in any
Successor Case, and such DIP Liens, DIP Super-Priority Claim, Pre-Petition
Replacement Liens and the Pre-Petition Superpriority Claim shall maintain their
respective priority as provided by this Final Order.

 

16.                                 Rights and Remedies Upon DIP Order Event of
Default.

 

(a)                                  Any
automatic stay otherwise applicable to the DIP Secured Parties is hereby
modified so that (i) after the occurrence of any DIP Order Event of
Default and (ii) at any time thereafter during the continuance of such DIP
Order Event of Default, upon five (5) business days prior written notice
of such occurrence, in each case given to each of the Debtors, counsel to the
Debtors, counsel for the Statutory Committee, and the U.S. Trustee, the DIP
Secured Parties shall be entitled to exercise their rights and remedies in
accordance with the DIP Financing Agreements. 
Immediately following the giving of notice by the DIP Agents of the
occurrence of a DIP Order Event of Default: 
(i) the Debtors shall continue to deliver and cause the delivery of
the proceeds of DIP Collateral to the DIP Agents as provided in the DIP Credit
Agreement and this Final Order; (ii) the DIP Agents shall continue to
apply such proceeds in accordance with the provisions of this Final Order and
of the DIP Credit Agreement; (iii) the Debtors shall have no right to use
any of such proceeds, nor any other Cash Collateral other than towards the
satisfaction of the DIP Obligations and the Carve Out; and (iv) any
obligation otherwise imposed on the DIP Agents or the DIP Secured Parties to
provide any loan or advance 

 

36

 

to the Debtors pursuant to the
DIP Facility shall be suspended. 
Following the giving of written notice by the DIP Agents of the
occurrence of a DIP Order Event of Default, the Debtors and the Statutory
Committee shall be entitled to an emergency hearing before this Court solely
for the purpose of contesting whether a DIP Order Event of Default has
occurred.  If the Debtors or the
Statutory Committee do not contest the right of the DIP Secured Parties to
exercise their remedies based upon whether a DIP Order Event of Default has
occurred within such time period, or if the Debtors or the Statutory Committee
do timely contest the occurrence of a DIP Order Event of Default and the
Bankruptcy Court after notice and hearing declines to stay the enforcement
thereof, the automatic stay, as to the DIP Secured Parties, shall automatically
terminate at the end of such notice period.

 

(b)                                 Subject to the provisions of paragraph 16(a),
upon the occurrence of a DIP Order Event of Default, the DIP Agents and DIP
Lenders are authorized to exercise their remedies and proceed under or pursuant
to the DIP Financing Agreements.  All
proceeds realized from any of the foregoing shall be turned over to the DIP
Agents for application to the DIP Obligations under, and in accordance with the
provisions of, the DIP Financing Agreements and this Final Order; provided,
however, that, in the event of the liquidation of the Borrowers’ and other
Debtors’ estates after the Commitment Termination Date, the amount of the Carve-Out
shall be funded into a segregated account exclusively from Cash Collateral
received by the DIP Agents subsequent to the Commitment Termination Date prior
to the distribution of any such Cash Collateral to any other parties in
interest. Any proceeds or property recovered, (unencumbered or otherwise) as
the result of an Avoidance Action (“Avoidance Proceeds”) shall be held, subject
to the DIP Liens and the Pre-Petition Replacement Liens, in a segregated
account and shall not be distributed to creditors of the Debtors until: (i) all
DIP Obligations and 

 

37

 

(ii) obligations
equal to the amount of the diminution in value of the interest of the
Pre-Petition Secured Parties in the Pre-Petition Collateral (the “Primed
Obligation”) have been paid in full. The DIP Agents and the Pre-Petition
Agents, respectively, shall not seek recovery from any Avoidance Proceeds
unless, after (i) making reasonable attempts to have the outstanding DIP
Obligations and the Primed Obligation repaid from other collateral subject to
the DIP Liens and the Pre-Petition Replacement Liens and (ii) delivering
10 business days advance notice to the Statutory Committee of their intention
to seek recovery from any Avoidance Proceeds, any DIP Obligations remain unpaid
or the Primed Obligation remains outstanding.

 

(c)                                  The
automatic stay imposed under Bankruptcy Code section 362(a) is hereby
modified pursuant to the terms of the DIP Credit Agreement as necessary to (1) permit
the Debtors to grant the Pre-Petition Replacement Liens and the DIP Liens and
to incur all liabilities and obligations to the Pre-Petition Secured Parties
and the DIP Secured Parties under the DIP Financing Agreements, the DIP
Facility, the Interim Order and this Final Order, and (2) authorize the
DIP Secured Parties and the Pre-Petition Secured Parties to retain and apply
payments hereunder.

 

(d)                                 Nothing
included herein shall prejudice, impair, or otherwise affect the Pre-Petition
Secured Parties’ or DIP Secured Parties’ rights to seek any other or
supplemental relief in respect of the Debtors (including other or additional
adequate protection) nor the DIP Agents’ or DIP Lenders’ rights, as provided in
the DIP Credit Agreement, to suspend or terminate the making of loans under the
DIP Credit Agreement.

 

17.                                 Proofs of Claim.  The Pre-Petition Secured Parties and the
DIP Secured Parties will not be required to file proofs of claim in the Cases
or in any Successor Case.

 

38

 

18.                                 Other Rights and Obligations.

 

(a)                                  Good Faith Under Section 364(e) of the
Bankruptcy Code; No Modification or Stay of this Final Order.  Based on the findings set forth in the
Interim Order and this Final Order and in accordance with section 364(e) of
the Bankruptcy Code, which is applicable to the DIP Facility contemplated by
this Final Order, in the event any or all of the provisions of the Interim
Order or this Final Order are hereafter modified, amended or vacated by a
subsequent order of this or any other Court, the DIP Secured Parties are
entitled to the protections provided in section 364(e) of the Bankruptcy
Code and, no such appeal, modification, amendment or vacation shall affect the
validity and enforceability of any advances made hereunder or the liens or
priority authorized or created hereby. 
Notwithstanding any such modification, amendment or vacation, any claim
granted to the DIP Secured Parties hereunder arising prior to the effective
date of such modification, amendment or vacation of any DIP Protections granted
to the DIP Secured Parties shall be governed in all respects by the original
provisions of the Interim Order and this Final Order, and the DIP Secured
Parties shall be entitled to all of the rights, remedies, privileges and
benefits, including the DIP Protections granted herein, with respect to any
such claim.  Since the loans made
pursuant to the DIP Credit Agreement are made in reliance on the Interim Order
and this Final Order, the obligations owed the DIP Secured Parties prior to the
effective date of any stay, modification or vacation of the Interim Order or
this Final Order shall not, as a result of any subsequent order in the Cases or
in any Successor Cases, be subordinated, lose their lien priority or
superpriority administrative expense claim status, or be deprived of the
benefit of the status of the liens and claims granted to the DIP Secured
Parties under the Interim Order, this Final Order and/or the DIP Financing
Agreements.

 

39

 

(b)                                 Expenses.  As provided in the DIP Financing
Agreements, the Debtors will pay all reasonable expenses incurred by each DIP
Agent and the Co-Lead Arrangers (including, without limitation, the reasonable
fees and disbursements of Bryan Cave LLP and Richards Layton & Finger,
counsel for the DIP Agent, any other local counsel that such DIP Agent shall
retain (including Canadian counsel) and any internal or third-party appraisers,
consultants and auditors advising such DIP Agent and the Bookrunners and their
counsel) in connection with the preparation, execution, delivery and
administration of the DIP Financing Agreements, whether or not the transactions
contemplated hereby are consummated. 
Payment of such fees shall not be subject to allowance by the Bankruptcy
Court.  Professionals for the DIP Secured
Parties or Pre-Petition Secured Parties shall not be required to comply with
the U.S. Trustee fee guidelines.  Copies
of invoices submitted to the Debtors by the professionals for the DIP Secured
Parties or the Pre-Petition Secured Parties shall be forwarded by the Debtors
to the U.S. Trustee, counsel for the Statutory Committee, and such other
parties as the Court may direct (but this Court shall resolve any dispute as to
the reasonableness of any fees and expenses accrued from and after the date of
this Final Order).

 

(c)                                  Binding Effect.  The provisions of this Final Order shall
be binding upon and inure to the benefit of the DIP Secured Parties and the
Pre-Petition Secured Parties, the Debtors, and their respective successors and
assigns (including any trustee or other fiduciary hereinafter appointed as a
legal representative of the Debtors or with respect to the property of the
estates of the Debtors) whether in the Cases, in any Successor Cases, or upon dismissal
of any such Chapter 11 or Chapter 7 Case.

 

(d)                                 No Waiver.  The failure of the Pre-Petition Secured
Parties and the DIP Secured Parties to seek relief or otherwise exercise their
rights and remedies under the DIP 

 

40

 

Financing Agreements, the DIP
Facility, this Final Order or otherwise, as applicable, shall not constitute a
waiver of any of the Pre-Petition Secured Parties’ and the DIP Secured Parties’
rights hereunder, thereunder, or otherwise. 
Notwithstanding anything herein, the entry of this Final Order is
without prejudice to, and does not constitute a waiver of, expressly or
implicitly, or otherwise impair the Pre-Petition Secured Parties or the DIP
Secured Parties under the Bankruptcy Code or under non-bankruptcy law,
including without limitation, the rights of the Pre-Petition Secured Parties
and the DIP Secured Parties to (i) request conversion of the Cases to
cases under Chapter 7, dismissal of the Cases, or the appointment of a trustee
in the Cases, or (ii) propose, subject to the provisions of section 1121
of the Bankruptcy Code, a Plan, or (iii) exercise any of the rights,
claims or privileges (whether legal, equitable or otherwise) of the DIP Secured
Parties or the Pre-Petition Secured Parties.

 

(e)                                  No Third Party Rights.  Except as explicitly provided for herein,
this Final Order does not create any rights for the benefit of any third party,
creditor, equity holder or any direct, indirect, or incidental beneficiary.

 

(f)                                    No Marshaling.  Neither the DIP Secured Parties nor the
Pre-Petition Secured Parties shall be subject to the equitable doctrine of
“marshaling” or any other similar doctrine with respect to any of the DIP
Collateral or the Pre-Petition Collateral, as applicable.

 

(g)                                 Section 552(b).  The DIP Secured Parties and the
Pre-Petition Secured Parties shall each be entitled to all of the rights and
benefits of section 552(b) of the Bankruptcy Code and the “equities of the
case” exception under section 552(b) of the Bankruptcy Code shall not
apply to the DIP Secured Parties or the Pre-Petition Secured Parties with
respect to proceeds, product, offspring or profits of any of the Pre-Petition
Collateral or the DIP Collateral.

 

41

 

(h)                                 Amendment.  The Debtors and the DIP Agents may amend,
modify, supplement or waive any provision of the DIP Financing Agreements
without further notice to or approval of the Court, unless such amendment,
modification, supplement or waiver (i) increases the interest rate (other
than as a result of the imposition of the default rate), (ii) increases
the Commitments of the DIP Lenders under the DIP Financing Agreements, or (iii) changes
the maturity date ((i), (ii), and (iii) being collectively referred to
herein as a “Material Modification”).  The Debtors shall provide to the Statutory
Committee, the U.S. Trustee, and any entity whose rights are directly and
adversely affected by a Material Modification five business days advance
written notice of each Material Modification. The Debtors shall also provide to
the Statutory Committee and the U.S. Trustee such advance notice as is
reasonably practicable of all other modifications to the DIP Financing
Agreements. Except as otherwise provided herein, no waiver, modification, or
amendment of any of the provisions hereof shall be effective unless set forth
in writing, signed by or on behalf of all the Debtors and the DIP Agents (after
having obtained the approval of the DIP Secured Parties as provided in the DIP Financing
Agreements) and approved by the Bankruptcy Court.

 

(i)                                     Information for the Statutory Committee.  The Debtors shall provide to the Statutory
Committee the same financial statements, reports and other information that the
Debtors are required to provide to the DIP Agents and the DIP Lenders pursuant
to Section 5.1 of the DIP Credit Agreement as and when the Debtors provide
such information to the DIP Agents and the DIP Lenders.

 

(j)                                     Survival of Final Order.  The provisions of this Final Order and
any actions taken pursuant hereto shall survive entry of any order which may be
entered (i) confirming any Plan in the Cases, (ii) converting any of
the Cases to a case under Chapter 7 of

 

42

 

the Bankruptcy Code, or (iii) to the extent authorized by
applicable law, dismissing any of the Cases, (iv) withdrawing of the
reference of any of the Cases from this Court, or (v) providing for
abstention from handling or retaining of jurisdiction of any of the Cases in
this Court.  The terms and provisions of
the Interim Order and this Final Order, including the DIP Protections granted
pursuant to the Interim Order and this Final Order and the DIP Financing
Agreements and any protections granted the Pre-Petition Secured Parties, shall
continue in full force and effect notwithstanding the entry of such order, and
such DIP Protections and protections for the Pre-Petition Secured Parties shall
maintain their priority as provided by the Interim Order and this Final Order until
all the obligations of the Debtors to the DIP Lenders pursuant to the DIP
Financing Agreements and the Pre-Petition Debt has been indefeasibly paid in
full and discharged (such payment being without prejudice to any terms or
provisions contained in the DIP Facility which survive such discharge by their
terms).  The DIP Obligations shall not be
discharged by the entry of an order confirming a Plan, the Debtors having
waived such discharge pursuant to section 1141(d)(4) of the Bankruptcy
Code.

 

(k)                                  Inconsistency.  In the event of any inconsistency between
the terms and conditions of the DIP Financing Agreements, the Interim Order and
this Final Order, the provisions of this Final Order shall govern and control.

 

(l)                                     Enforceability.  This Final Order shall constitute
findings of fact and conclusions of law pursuant to the Bankruptcy Rule 7052
and shall take effect and be fully enforceable nunc pro
tunc to the Petition Date immediately upon execution hereof.

 

(m)                               Objections Overruled.  All objections to the DIP Motion, to the
extent not withdrawn or resolved, are hereby overruled.

 

43

 

(n)                                 No Waivers or Modification of Final Order.  The Debtors irrevocably waive any right
to seek any modification or extension of this Final Order without the prior
written consent of the DIP Agents and the Pre-Petition Agents and no such
consent shall be implied by any other action, inaction or acquiescence of the
DIP Agents and the Pre-Petition Agents.

 

(o)                                 Waiver of
any Applicable Stay.  Any
applicable stay (including, without limitation, under Bankruptcy Rule 6004(h))
is hereby waived and shall not apply to this Final Order.

 

19.                                Letters
of Credit.  At the
Debtors’ request, letters of credit outstanding as of the Petition Date under
the Pre-Petition Credit Agreement may be extended, amended or renewed with the
consent of the issuing bank and the Pre-Petition Agents, provided that all fees
and reimbursement obligations in respect thereof shall remain Pre-Petition
Debt.

 

20.                                Liens of Taxing
Authorities.  Any valid
and enforceable liens in existence as of the Petition Date held by Gregg
County, Dallas County, Tarrant County, Hopkins County and El Paso, Texas, and
the City of Memphis, Tennessee, on the personal property of the Debtors, which
liens secure the payment of ad valoram taxes by the Debtors to such taxing
authorities, shall constitute Non-Primed Liens under this Final Order.

 

21.                                Retention
of Jurisdiction.  The
Bankruptcy Court has and will retain jurisdiction to enforce this Final Order
according to its terms.

 

22.                                Required
Lender Consents.  Promptly
upon receipt by the DIP Agents of the Required Lenders’ consents necessary to
amend the DIP Credit Agreement with respect to the terms of this Final Order,
the DIP Agents shall file and serve a notice that the necessary consents have
been received.  Solely for purposes of
the DIP Credit Agreement, including Section 4.2(d)

 

44

 

of the DIP Credit Agreement, this Final Order shall be deemed to have
been entered by the Court upon the filing of said notice.

 

SO ORDERED by the Bankruptcy Court this
        day of February, 2009.

 

 

	
   

  	
   

  
	
   

  	
  BRENDAN L. SHANNON

  
	
   

  	
  UNITED STATES BANKRUPTCY JUDGE

  
	
   

  	
   

  
	
   

  	
  Entered on Docket:

  

 

45

 

EXHIBIT A

 

Non-Primed Liens

 

Liens that:

 

(i) are properly perfected, enforceable and in existence as of the
Petition Date;

(ii) are senior in priority to the Liens created under the
Pre-Petition Credit Agreement;

(iii) fall within any one of the following categories:

 

a.                                       those
Liens securing purchase money indebtedness;

 

b.                                      mechanics’
Liens, materialmen’s Liens, carriers’ Liens, warehousemen’s Liens and
landlord’s Liens arising by operation of law;

 

c.                                       rights
of banks or other financial institutions having a right of setoff, revocation,
refund or chargeback with respect to deposits with or in the possession of such
bank or financial institution;

 

d.                                      Liens
arising by operation of law on insurance policies and proceeds thereof to
secure premiums thereunder;

 

e.                                       other
Liens securing claims of no more than $500,000 on an individual basis and no
more than $10,000,000 on an aggregate basis; or

 

f.                                         other
Liens acceptable to the Administrative Agent; 
and

 

(iv) either:

(x) secure claims of no more than $200,000 on an individual basis;
or

(y) secure claims that are scheduled by the Debtors on the Register
Of Non-Primed Liens  (2).

 

(2)  The Debtors will prepare and
maintain from time to time a comprehensive Register Of Non-Primed Liens.

 

 

REGISTER OF NON-PRIMED LIENS

 

To
the extent parties on this Register have valid liens that otherwise satisfy
requirements (i) - (iii) of Schedule 2.24 (to which this Register is
appended), such liens are not being primed by the DIP Liens.  However, inclusion on the Register does not
constitute an admission by the Debtors that the listed parties have valid liens
or that they have valid claims of more than $200,000.

 

	
  Vendor

  	
   

  	
  Address

  
	
  1

  	
   

  	
  AIG
  Commerical Equipment Finance

  	
   

  	
  Jeffrey
  C. Wisler and Marc J. Phillips, Connolly Bove Lodge & Hutz LLP, The
  Nemours Building, 1007 North Orange Street, P.O. Box 2207, Wilmington,
  DE 19899

  	 

	
  2

  	
   

  	
  AirTek
  Construction, Inc.

  	
   

  	
  Daniel
  K. Astin, Anthony M. Saccullo and Mary E. Augustine, Ciardi Ciardi &
  Astin, Citizens Bank Center, 919 North Market Street, Suite 700,
  Wilmington, DE 19801

  	 

	
  3

  	
   

  	
  ALL
  TRUCK TRANSPORTATION INC

  	
   

  	
  4924
  S  Austin Chicago, IL 60638 USA

  	 

	
  4

  	
   

  	
  Alliance
  Machine Systems

  	
   

  	
  5303
  East Desmet Spokane, WA 99212 USA

  	 

	
  5

  	
   

  	
  Alstom

  	
   

  	
  7-B
  Place Du Commerce Brossard, QC J4w 3k3 Canada

  	 

	
  6

  	
   

  	
  BAY
  LINE RAILROAD LLC

  	
   

  	
  #712406
  Cincinnati, OH 45271-2406 USA

  	 

	
  7

  	
   

  	
  BHS
  Corrugated

  	
   

  	
  9103
  Yellow Brick Road Baltimore, MD 21237-4702 USA

  	 

	
  8

  	
   

  	
  BLI

  	
   

  	
  #1261
  Saint Charles, MO 63302-1261 USA

  	 

	
  9

  	
   

  	
  CH
  ROBINSON WORLDWIDE

  	
   

  	
  #9121
  Minneapolis, MN 55480-9121 USA

  	 

	
  10

  	
   

  	
  CN

  	
   

  	
  Box
  4254 Station A71206 Chicago, IL 60694-1206 USA

  	 

	
  11

  	
   

  	
  CONWAY
  TRUCKLOAD INC

  	
   

  	
  #953695
  Saint Louis, MO 63195-3695 USA

  	 

	
  12

  	
   

  	
  Corrugated
  Gear & Services

  	
   

  	
  209
  W South Street Ithaca, MI 48847 USA

  	 

	
  13

  	
   

  	
  CSX
  TRANSPORTATION (CSXT)

  	
   

  	
  500
  Water St Sc J180 Jacksonville, FL 32202 USA

  	 

	
  14

  	
   

  	
  CSX
  TRANSPORTATION (CSXT)

  	
   

  	
  #44053
  Jacksonville, FL 32231-4053 USA

  	 

	
  15

  	
   

  	
  De
  Lage Landen Financial Services, Inc.

  	
   

  	
  Regina
  Stango Kelbon, Blank Rome LLP, One Logan Square, Philadelphia, PA 19103

  	 

	
  16

  	
   

  	
  Dufrene
  Machinery, Inc.

  	
   

  	
  1831
  Veterans Memorial Hwy Austell, GA 30168 USA

  	 

	
  17

  	
   

  	
  ENTREPRISES DE TRANSPORT J C G INC

  	
   

  	
  1200 Pere Daniel Trois Rivieres, QC G9a 5r6
  Canada

  	 

	
  18

  	
   

  	
  Everest
  Auto

  	
   

  	
  227 Brunswick Suite D Pointe-Claire, QC
  H9r 4x5 Canada

  	 

	
  19

  	
   

  	
  Fosber
  America, Inc.

  	
   

  	
  1831
  Veterans Memorial Hwy Austell, GA 30168 USA

  	 

	
  20

  	
   

  	
  GENERAL
  LOGISTICS INC

  	
   

  	
  #8013
  Davenport, IA 52809 USA

  	 

	
  21

  	
   

  	
  GROUPE
  ROBERT INC

  	
   

  	
  500
  Rte. 112, Rougemont, Canpq J0l 1m0, Canada

  	 

	
  22

  	
   

  	
  Harper
  Machinery

  	
   

  	
  #11603
  Brown, WI 54307-1603 USA

  	 

	
  23

  	
   

  	
  HUB
  GROUP

  	
   

  	
  33773
  Treasury Center Chicago, IL 60694-3700 USA

  	 

	
  24

  	
   

  	
  IES
  Industrial, Inc. d/b/a Murray Electric

  	
   

  	
  William
  B. Westcott, Andrews Myers Coulter & Hayes, P.C., 3900 Essex Lane,
  Suite 800, Houston, Texas 77027 and Richard G. Placey, Montgomery,
  McCracken, Walker & Rhoads, LLP, 1105 N. Market St., 15th Floor,
  Wilmington, DE 19801

  	 

	
  25

  	
   

  	
  JACOBSON
  DISTRIBUTION COMPANY

  	
   

  	
  #224
  Des Moines, IA 50301 USA

  	 

	
  26

  	
   

  	
  JAMES
  BROWN TRUCKING CO

  	
   

  	
  #535203
  Atlanta, GA 30353 USA

  	 

	
  27

  	
   

  	
  K&N
  Electric

  	
   

  	
  #303
  Spokane, WA 99210 USA

  	 

	
  28

  	
   

  	
  KANSAS
  CITY SOUTHERN RAILWAY INC

  	
   

  	
  36454
  Treasury Center Chicago, IL 60694-6400 USA

  	 

	
  29

  	
   

  	
  LILY
  TRANSPORTATION CORP

  	
   

  	
  145
  Rosemary Street Needham, MA 02494 USA

  	 

	
  30

  	
   

  	
  MARQUETTE
  TRANSPORTATION FINANCE IN

  	
   

  	
  Nw
  79391450 Minneapolis, MN 55485 USA

  	 

	
  31

  	
   

  	
  MCGRIFF
  TRANSPORTATION INC

  	
   

  	
  #1148
  Cullman, AL 35056 USA

  	 

	
  32

  	
   

  	
  MEGA
  GULF COAST LINES INC

  	
   

  	
  1002
  Fountain PArkway Grand Prairie, TX 75050 USA

  	 

	
  33

  	
   

  	
  MONTANA
  RAIL LINK

  	
   

  	
  3122
  Solutions Center Chicago, IL 60677 USA

  	 

	
  34

  	
   

  	
  NORFOLK
  SOUTHERN CORPORATION

  	
   

  	
  #532888
  Atlanta, GA 30353-2888 USA

  	 

	
  35

  	
   

  	
  Plum
  Creek Marketing, Inc.

  	
   

  	
  John
  R. Knapp, Jr., Cairncross & Hempelmann, P.S., 524 2nd Avenue,
  Suite 500, Seattle, WA 98104-2323

  	 

	
  36

  	
   

  	
  SWIFT
  TRANSPORTATION CORP

  	
   

  	
  #643991
  Pittsburgh, PA 15264-3991 USA

  	 

	
  37

  	
   

  	
  UNION
  PACIFIC RAILROAD

  	
   

  	
  12567
  Collections Center Dr Chicago, IL 60693 USA

  	 

	
  38

  	
   

  	
  UPS
  FREIGHT

  	
   

  	
  #533238
  Atlanta, GA 30353-3238 USA

  	 

	
  39

  	
   

  	
  VHI
  TRANSPORT INC

  	
   

  	
  4525
  Lee Street Chester, VA 23831 USA

  	 

	
  40

  	
   

  	
  Voith
  - Austell, GA

  	
   

  	
  3090
  Stagecoach Road Caddo, LA 71047 USA

  	 

	
  41

  	
   

  	
  Voith
  Paper Rolls

  	
   

  	
  #410926
  Mecklenburg, NC 28241 USA

  	 

	
  42

  	
   

  	
  WATKINS &
  SHEPARD TRUCKING

  	
   

  	
  #5328
  Missoula, MT 59806 USA

  	 

	
  43

  	
   

  	
  WESTERN
  EXPRESS INC

  	
   

  	
  Dept
  54306035 Nashville, TN 37230-6035 USA

  	 

	
  44

  	
   

  	
  W.G.
  Yates & Sons Construction Co.

  	
   

  	
  c/o
  Joseph Grey, Stevens & Lee P.C., 1105 North Market Street, 7th
  Floor, Wilmington, DE 19801

  	 

	
  45

  	
   

  	
  WHITE
  OAK TRANSPORTATION INC

  	
   

  	
  #43512
  Birmingham, AL 35243 USA

  	 

	
  46

  	
   

  	
  WORLDWIDE
  DEDICATED SERVICES INC

  	
   

  	
  28013
  Network Place Chicago, IL 60673 USA

  	 

								

 

 

EXHIBIT B

 

[See Credit
Agreement, dated as of January 28, 2009, as previously filed.]

 

 

Exhibit B-1

 

EXECUTION VERSION

 

SECURITY AND PLEDGE AGREEMENT

 

THIS SECURITY AND PLEDGE AGREEMENT (as it may be amended or modified
from time to time, the “Security Agreement”) is entered into as of January 28,
2009  by and among SMURFIT-STONE
CONTAINER CORPORATION, a Delaware corporation, each of its U.S. direct or
indirect subsidiaries party to the Credit Agreement (as hereinafter defined)
(the “Grantors”), each of which Grantors is a debtor and
debtor-in-possession in a case pending under Chapter 11 of the Bankruptcy Code,
and JPMorgan Chase Bank, N.A., in its capacity as administrative agent (the “Administrative
Agent”) for the lenders party to the Credit Agreement referred to below.

 

PRELIMINARY STATEMENT

 

The Grantors, SMURFIT-STONE CONTAINER ENTERPRISES, INC., a Delaware
corporation (the “U.S. Borrower”), the Administrative Agent, the other
Loan Parties which are party thereto, the Lenders party thereto and JPMORGAN
CHASE BANK, N.A., TORONTO BRANCH, as Canadian administrative agent, are
entering into a Credit Agreement dated as of even date herewith (as it may be
restated, amended or modified from time to time, the “Credit Agreement”).  Each Grantor is entering into this Security
Agreement in order to induce the Lenders to enter into and extend credit to the
U.S. Borrower and Smurfit-Stone Container Canada Inc., a corporation continued
under the Companies Act (Nova Scotia) (the “Canadian Borrower”, together
with the U.S. Borrower, collectively, the “Borrowers”) under the Credit
Agreement and to secure the Secured Obligations that it has agreed to guarantee
pursuant to Article X of the Credit Agreement.

 

WHEREAS, it is a condition precedent to the making of Loans and the
issuance of Letters of Credit that the Grantors shall have granted a security
interest, pledge and lien on (x) all cash maintained in the Collateral
Accounts pursuant to Section 364(c)(2) of the Bankruptcy Code and (y) certain
of the Grantors’ assets and properties and the proceeds thereof pursuant to
Sections 364(c)(2), 364(c)(3) and 364(d)(1) of the Bankruptcy Code;
and

 

WHEREAS, the grant of such security interest, pledge and lien has been
authorized pursuant to Sections 364(c)(2), 364(c)(3) and 364(d)(1) of
the Bankruptcy Code by the Interim Order, and, after the entry thereof, will
have been so authorized by the Final Order (collectively, the “Orders”);
and

 

WHEREAS, to supplement the Orders without in any way diminishing or
limiting the effect of the Orders or the security interest, pledge and lien
granted thereunder, the parties hereto desire to more fully set forth their
respective rights in connection with such security interest, pledge and lien;
and

 

WHEREAS, this Agreement has been approved by the Orders;

 

ACCORDINGLY, the Grantors and the Administrative Agent, on behalf of
the Lenders, hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1.                             Terms Defined in Credit Agreement.  All
capitalized terms used herein and not otherwise defined shall have the meanings
assigned to such terms in the Credit Agreement.

 

1.2.                             Terms Defined in UCC.  Terms defined in the UCC which are not
otherwise defined in this Security Agreement are used herein as defined in the
UCC.

 

1

 

1.3.                             Definitions of Certain Terms Used Herein.  As
used in this Security Agreement, in addition to the terms defined in the
Preliminary Statement, the following terms shall have the following meanings:

 

“Accounts” shall have the meaning set forth in Article 9 of
the UCC.

 

“Article” means a numbered article of this Security Agreement, unless
another document is specifically referenced.

 

“Chattel Paper” shall have the meaning set forth in Article 9
of the UCC.

 

“Closing Date” means the date of the Credit Agreement.

 

“Collateral” shall have the meaning set forth in Article II.

 

“Collateral Deposit Account” shall have the meaning set forth in
Section 7.1(a).

 

“Collateral Report” means any certificate (including any
Borrowing Base Certificate), report or other document delivered by any Grantor
to the Administrative Agent or any Lender with respect to the Collateral
pursuant to any Loan Document.

 

“Concentration Account” shall have the meaning set forth in Section 7.1(b).

 

“Commercial Tort Claims” means the following existing commercial
tort claims of the Grantors: (i) a matter filed by the U.S. Borrower in
the Circuit Court of King William County, Virginia against the County of King
William seeking a correction of the Machinery and Tools taxes which were
assessed against and paid by the U.S. Borrower for the tax years 2004 through
2007; and (ii) the action styled Smurfit-Stone
Container Corporation vs. Southeast Fuels, Inc., filed in the
United States District Court, Eastern District of Virginia, Richmond Division
on September 19, 2008.

 

“Control” shall have the meaning set forth in Article 8 or,
if applicable, in Section 9-104, 9-105, 9-106 or 9-107 of Article 9
of the UCC.

 

“Copyrights” means, with respect to any Person, all of such
Person’s right, title, and interest in and to the following:  (a) all copyrights, rights and interests
in copyrights, works protectable by copyright, copyright registrations, and
copyright applications; (b) all renewals of any of the foregoing; (c) all
income, royalties, damages, and payments now or hereafter due and/or payable
under any of the foregoing, including, without limitation, damages or payments
for past or future infringements for any of the foregoing; (d) the right
to sue for past, present, and future infringements of any of the foregoing; and
(e) all rights corresponding to any of the foregoing throughout the world.

 

“Default” means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless
cured or waived, become an Event of Default.

 

“Deposit
Account Control Agreement” means an agreement, in form and substance
satisfactory to the Administrative Agent, among any Loan Party, a banking
institution holding such Loan Party’s funds, and the Administrative Agent with
respect to collection and control of all deposits and balances held in a
deposit account maintained by any Loan Party with such banking institution.

 

“Deposit Accounts” shall have the meaning set forth in Article 9
of the UCC.

 

“Documents” shall have the meaning set forth in Article 9
of the UCC.

 

“Equipment” shall have the meaning set forth in Article 9
of the UCC.

 

2

 

“Event of Default” means an event described in Section 5.1.

 

“Exhibit” refers to a specific exhibit to this Security
Agreement, unless another document is specifically referenced.

 

“Fixtures” shall have the meaning set forth in Article 9 of
the UCC.

 

“General Intangibles” shall have the meaning set forth in Article 9
of the UCC.

 

“Goods” shall have the meaning set forth in Article 9 of
the UCC.

 

“Instruments” shall have the meaning set forth in Article 9
of the UCC.

 

“Inventory” shall have the meaning set forth in Article 9
of the UCC.

 

“Investment Property” shall have the meaning set forth in Article 9
of the UCC.

 

“Landlord
Lien Waiver” means any landlord waiver or other agreement, in form and
substance satisfactory to the Administrative Agent, between the Administrative
Agent and any third party (including any bailee, consignee, customs broker, or
other similar Person) in possession of any Collateral or any landlord of any
Loan Party for any real property where any Collateral is located, as such
landlord waiver or other agreement may be amended, restated, or otherwise
modified from time to time.

 

“Lenders” means the lenders party to the Credit Agreement and
their successors and assigns.

 

“Letter-of-Credit Rights” shall have the meaning set forth in Article 9
of the UCC.

 

“Licenses”
means, with respect to any Person, all of such Person’s right, title, and
interest in and to (a) any and all licensing agreements or similar
arrangements in and to its Patents, Copyrights, or Trademarks, (b) all
income, royalties, damages, claims, and payments now or hereafter due or
payable under and with respect thereto, including, without limitation, damages
and payments for past and future breaches thereof, and (c) all rights to
sue for past, present, and future breaches thereof.

 

“Lock
Boxes” shall have the meaning set forth in Section 7.1(a).

 

“Lock
Box Agreements” shall have the meaning set forth in Section 7.1(a).

 

“Patents” means, with respect to any Person, all of such Person’s
right, title, and interest in and to:  (a) any
and all patents and patent applications; (b) all inventions and
improvements described and claimed therein; (c) all reissues, divisions,
continuations, renewals, extensions, and continuations-in-part thereof; (d) all
income, royalties, damages, claims, and payments now or hereafter due or
payable under and with respect thereto, including, without limitation, damages
and payments for past and future infringements thereof; (e) all rights to
sue for past, present, and future infringements thereof; and (f) all
rights corresponding to any of the foregoing throughout the world.

 

“Pledged Collateral” means all Instruments, Securities and other
Investment Property of the Grantors, whether or not physically delivered to the
Administrative Agent pursuant to this Security Agreement.

 

“Receivables” means the Accounts, Chattel Paper, Documents,
Investment Property, Instruments and any other rights or claims to receive
money which are General Intangibles or which are otherwise included as
Collateral.

 

“Required Secured Parties” means (a) prior to an
acceleration of the Secured Obligations under the Credit Agreement, the
Required Lenders, (b) after an acceleration of the Secured Obligations
under the Credit 

 

3

 

Agreement
but prior to the date upon which the Credit Agreement has terminated by its
terms and all of the obligations thereunder have been paid in full, Lenders
holding in the aggregate at least a majority of the total of the Aggregate
Credit Exposure, and (c) after the Credit Agreement has terminated by its
terms and all of the Secured Obligations thereunder have been paid in full
(whether or not the Secured Obligations under the Credit Agreement were ever
accelerated), Lenders holding in the aggregate at least a majority of the
aggregate net early termination payments and all other amounts then due and
unpaid from any Grantor to the Lenders under Swap Agreement, as determined by
the Administrative Agent in its reasonable discretion.

 

“Section” means a numbered section of this Security Agreement,
unless another document is specifically referenced.

 

“Security” has the meaning set forth in Article 8 of the
UCC.

 

“Stock Rights” means all dividends, instruments or other
distributions and any other right or property which the Grantors shall receive
or shall become entitled to receive for any reason whatsoever with respect to,
in substitution for or in exchange for any capital stock constituting Collateral,
any right to receive capital stock and any right to receive earnings, in which
the Grantors now have or hereafter acquire any right, issued by an issuer of
such capital stock.

 

“Supporting Obligations” shall have the meaning set forth in Article 9
of the UCC.

 

“Trademarks”
means, with respect to any Person, all of such Person’s right, title, and
interest in and to the following:  (a) all
trademarks (including service marks), trade names, trade dress, and trade
styles and the registrations and applications for registration thereof and the
goodwill of the business symbolized by the foregoing; (b) all licenses of
the foregoing, whether as licensee or licensor; (c) all renewals of the
foregoing; (d) all income, royalties, damages, and payments now or hereafter
due or payable with respect thereto, including, without limitation, damages,
claims, and payments for past and future infringements thereof; (e) all
rights to sue for past, present, and future infringements of the foregoing,
including the right to settle suits involving claims and demands for royalties
owing; and (f) all rights corresponding to any of the foregoing throughout
the world.

 

“UCC” means the Uniform Commercial Code, as in effect from time
to time, of the State of New York  or
of any other state the laws of which are required as a result thereof to be
applied in connection with the attachment, perfection or priority of, or
remedies with respect to, Administrative Agent’s or any Lender’s Lien on any
Collateral.

 

The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms.

 

ARTICLE II

GRANT OF SECURITY INTEREST

 

Each Grantor hereby pledges, assigns and grants to the Administrative
Agent, on behalf of and for the ratable benefit of the Secured Parties, a
security interest in all of its right, title and interest in, to and under all
personal property and other assets, whether now owned by or owing to, or
hereafter acquired by or arising in favor of such Grantor (including under any
trade name or derivations thereof), and whether owned or consigned by or to, or
leased from or to, such Grantor, and regardless of where located (all of which
will be collectively referred to as the “Collateral”), including:

 

	
  (i)

  	
   

  	
  all
  Accounts;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  all
  Chattel Paper;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  all
  Copyrights, Patents and Trademarks;

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  all
  Documents;

  

 

 

4

 

	
  (v)

  	
   

  	
  all
  Equipment;

  
	
   

  	
   

  	
   

  
	
  (vi)

  	
   

  	
  all
  Fixtures;

  
	
   

  	
   

  	
   

  
	
  (vii)

  	
   

  	
  all
  General Intangibles;

  
	
   

  	
   

  	
   

  
	
  (viii)

  	
   

  	
  all
  Goods;

  
	
   

  	
   

  	
   

  
	
  (ix)

  	
   

  	
  all
  Instruments;

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  all
  Inventory;

  
	
   

  	
   

  	
   

  
	
  (xi)

  	
   

  	
  all
  Investment Property;

  
	
   

  	
   

  	
   

  
	
  (xii)

  	
   

  	
  all
  cash or cash equivalents;

  
	
   

  	
   

  	
   

  
	
  (xiii)

  	
   

  	
  all
  letters of credit, Letter-of-Credit Rights and Supporting Obligations;

  
	
   

  	
   

  	
   

  
	
  (xiv)

  	
   

  	
  all
  Deposit Accounts with any bank or other financial institution;

  
	
   

  	
   

  	
   

  
	
  (xv)

  	
   

  	
  all
  Commercial Tort Claims;

  
	
   

  	
   

  	
   

  
	
  (xvi)

  	
   

  	
  and
  all accessions to, substitutions for and replacements, proceeds (including
  Stock Rights), insurance proceeds and products of the foregoing, together
  with all books and records, customer lists, credit files, computer files,
  programs, printouts and other computer materials and records related thereto
  and any General Intangibles at any time evidencing or relating to any of the
  foregoing;

  

 

to
secure the prompt and complete payment and performance of the Secured
Obligations (or, in the case of SMBI Inc., the Canadian Secured Obligations).

 

Notwithstanding anything contained herein to the contrary, (i) the
total amount of shares of capital stock or other ownership interests of any
Person pledged pursuant to this Security Agreement that is not incorporated or
organized in the United States (other than the shares of capital stock and
other ownership interests in the Canadian Borrower) shall in no event exceed
sixty-five percent (65%) of the total outstanding shares of capital stock or
such other ownership interests thereof, (ii) no grant of a security
interest hereunder in intellectual property (including Copyrights, Patents and
Trademarks) shall constitute an assignment of such intellectual property, (iii) no
security interest in contractual rights shall be granted hereby to the extent
and for so long as the grant of a security interest therein pursuant hereto
would violate the terms of the agreement under which such contractual rights
arise or exist to the extent such prohibition is enforceable under applicable
law, (iv) no security interest shall be granted hereby in rights under
governmental licenses, authorizations or any other asset of any Grantor, to the
extent and for so long as the grant of a security interest therein is
prohibited by law, and (v) no security interest shall be granted hereby in
any intent-to-use trademark or service mark application prior to the filing of
a statement or use or amendment to allege use, or any other intellectual
property, to the extent that applicable law or regulation prohibits the
creation of a security interest or would otherwise result in the loss of rights
from the creation of such security interest or from the assignment of such
rights upon the occurrence and during the continuance of a Default.

 

ARTICLE III

REPRESENTATIONS AND
WARRANTIES

 

Each Grantor represents and warrants to the Administrative Agent and
the Lenders that:

 

3.1.                             Title, Perfection and Priority.  As
of the Filing Date, such Grantor has good and valid rights in or the power to
transfer the Collateral and title to the Collateral with respect to which it
has purported to grant a security interest hereunder, free and clear of all
Liens except for Liens permitted under Section 4.1(e), and has full power
and authority to grant to the Administrative Agent the security interest in
such Collateral pursuant hereto.  Upon
entry of the Interim Order, the Administrative Agent will have a fully perfected
first priority security interest in the Collateral of the Grantor, subject only
to Liens permitted under Section 4.1(e).

 

5

 

3.2.                             Type and Jurisdiction of Organization,
Organizational and Identification Numbers.  The type of entity of such
Grantor, its state of organization, the organizational number issued to it by
its state of organization and its federal employer identification number are
set forth on Exhibit A.

 

3.3.                             Principal Location.  Such
Grantor’s mailing address and the location of its place of business (if it has
only one) or its chief executive office (if it has more than one place of
business), are disclosed in Exhibit A; such Grantor has no other
places of business except those set forth in Exhibit A.

 

3.4.                             Collateral Locations.  As
of the Filing Date, all of such Grantor’s locations where Collateral is located
are listed on Exhibit A.  As
of the Filing Date, all of said locations are owned by such Grantor except for
locations (i) which are leased by the Grantor as lessee and designated in Part VII(b) of
Exhibit A and (ii) at which Inventory is held in a public
warehouse or is otherwise held by a bailee or on consignment as designated in Part VII(c) of
Exhibit A.

 

3.5.                             Deposit Accounts.  As of the Filing Date, all of such Grantor’s Deposit Accounts are listed on Exhibit B.

 

3.6.                             Exact Names.  Such Grantor’s name in which
it has executed this Security Agreement is the exact name as it appears in such
Grantor’s organizational documents, as amended, as filed with such Grantor’s
jurisdiction of organization.  Except as
set forth on Exhibit A, such Grantor has not, during the past five
years, been known by or used any other corporate or fictitious name, or been a
party to any merger or consolidation, or been a party to any acquisition.

 

3.7.                             Letter-of-Credit Rights and Chattel Paper.  Exhibit C
lists all Letter-of-Credit Rights with respect to each letter of credit in a
face amount in excess of $5,000,000 and Chattel Paper in an amount in excess of
$1,000,000 of such Grantor as of the
Filing Date.  All action by such Grantor necessary or
desirable to protect and perfect the Administrative Agent’s Lien on each item
listed on Exhibit C (including the delivery of all originals and
the placement of a legend on all Chattel Paper as required hereunder) has been
duly taken. Upon entry of the Interim Order, the Administrative Agent will have
a fully perfected first priority security interest in the Collateral listed on Exhibit C,
subject only to Liens permitted under Section 4.1(e).

 

3.8.                             Accounts and Chattel Paper.

 

(a)                                  The names of the obligors, amounts owing, due
dates and other material information with respect to its Accounts and Chattel
Paper are and will be correctly stated in all records of such Grantor relating
thereto and in all invoices and Collateral Reports with respect thereto
furnished to the Administrative Agent by such Grantor from time to time.  As of the time when each Account or each item
of Chattel Paper arises, such Grantor shall be deemed to have represented and
warranted that such Account or Chattel Paper, as the case may be, and all
records relating thereto, are genuine and in all material respects what they
purport to be.

 

(b)                                 As of the Filing Date, with respect to its Accounts, except as specifically disclosed on the
most recent Collateral Report, (i) all Accounts are Eligible Accounts; (ii) all
Accounts represent bona fide sales of Inventory or rendering of services to
Account Debtors in the ordinary course of such Grantor’s business and are not
evidenced by a judgment, Instrument or Chattel Paper; (iii) there are no
setoffs, claims or disputes existing or asserted with respect thereto and such
Grantor has not made any agreement with any Account Debtor for any extension of
time for the payment thereof, any compromise or settlement for less than the
full amount thereof, any release of any Account Debtor from liability therefor,
or any deduction therefrom except a discount or allowance allowed by such
Grantor in the ordinary course of its business for prompt payment and disclosed
to the Administrative Agent; (iv) to such Grantor’s knowledge, there are
no facts, events or occurrences which in any way impair the validity or
enforceability thereof or could reasonably be expected to reduce the amount
payable thereunder as shown on such Grantor’s books and records and any
invoices, statements and Collateral Reports with respect thereto; (v) such
Grantor has not received any notice of proceedings or actions which are
threatened or pending against any Account Debtor which might result in any
adverse change in such Account 

 

6

 

Debtor’s
financial condition; and (vi) such Grantor has no knowledge that any
Account Debtor is unable generally to pay its debts as they become due.

 

(c)                                  In addition, as of the Filing Date, with
respect to all of its Accounts, (i) the amounts shown on all invoices,
statements and Collateral Reports with respect thereto are actually and
absolutely owing to such Grantor as indicated thereon and are not in any way
contingent; and (ii) to such Grantor’s knowledge, all Account Debtors have
the capacity to contract.

 

3.9.                             Inventory.  As of the Filing Date, with
respect to any of its Inventory scheduled or listed on the most recent
Collateral Report, (a) such Inventory (other than Inventory in transit) is
located at one of such Grantor’s locations set forth on Exhibit A, (b) no
Inventory (other than Inventory in transit) is now, or shall at any time or
times hereafter be stored at any other location except as permitted by Section 4.1(g),
(c) such Grantor has good, indefeasible and merchantable title to such
Inventory and such Inventory is not subject to any Lien or security interest or
document whatsoever except for the Lien granted to the Administrative Agent,
for the benefit of the Administrative Agent and Lenders, and except for
Permitted Liens, (d) except as specifically disclosed in the most recent
Collateral Report, such Inventory is Eligible Inventory of good and
merchantable quality, free from any defects, (e) such Inventory is not
subject to any licensing, patent, royalty, trademark, trade name or copyright
agreements with any third parties which would require any consent of any third
party upon sale or disposition of that Inventory or the payment of any monies
to any third party upon such sale or other disposition, (f) such Inventory
has been produced in accordance with the Federal Fair Labor Standards Act of
1938, as amended, and all rules, regulations and orders thereunder and (g) the
completion of manufacture, sale or other disposition of such Inventory by the
Administrative Agent following an Event of Default shall not require the
consent of any Person and shall not constitute a breach or default under any
contract or agreement to which such Grantor is a party or to which such
property is subject.

 

3.10.                       Intellectual Property. As
of the Filing Date, such Grantor
does not have any interest in, or title to, any registered Patent, Trademark or
Copyright except as set forth in Schedule 3.12 to the Credit
Agreement.  This Security Agreement is
effective to create a valid and continuing Lien and security interest in favor
of the Administrative Agent on such Grantor’s Patents, Trademarks and
Copyrights.  Upon entry of the Interim
Order, the Administrative Agent will have a fully perfected first priority
security interest in such Grantor’s Patents, Trademarks and Copyrights, subject
only to Liens permitted by Section 4.1(e).

 

3.11.                       Filing Requirements.  As of the Filing Date, none of its Equipment is covered by any certificate of title, except
for vehicles.  None of the Collateral
owned by it is of a type for which security interests or liens may be perfected
by filing under any federal statute except for Patents, Trademarks and
Copyrights held by such Grantor and described in Schedule 3.12 to the
Credit Agreement.  The street address of
each property on which any Fixtures may be located is set forth in Exhibit D.

 

3.12.                       No Financing Statements, Security Agreements.  As of the Filing Date, no financing statement or security agreement describing all or any
portion of the Collateral which has not lapsed or been terminated naming such
Grantor as debtor has been filed or is of record in any jurisdiction except (a) for
financing statements or security agreements naming the Administrative Agent on
behalf of the Lenders as the secured party and (b) as permitted by Section 4.1(e).

 

3.13.                       Pledged Collateral.

 

(a)                                  As of the Filing Date, Exhihbit E sets
forth a complete and accurate list of all Pledged Collateral owned by such
Grantor.  Such Grantor, is the direct,
sole beneficial owner and sole holder of record of the Pledged Collateral
listed on Exhihbit E as being owned by it, free and clear of any Liens,
except for Liens permitted under Section 4.1(e).  Such Grantor further represents and warrants
that (i) all Pledged Collateral owned by it constituting capital stock has
been (to the extent such concepts are relevant with respect to such Pledged
Collateral) duly authorized, validly issued, are fully paid and non-assessable,
(ii) with respect to any certificates delivered to the Administrative
Agent representing capital stock, either such certificates are 

 

7

 

Securities
as defined in Article 8 of the UCC as a result of actions by the issuer or
otherwise, or, if such certificates are not Securities, such Grantor has so
informed the Administrative Agent so that the Administrative Agent may take
steps to perfect its security interest therein as a General Intangible, (iii) all
such Pledged Collateral held by a securities intermediary is (or, within 60
days of the Filing Date, will be) covered by a control agreement among such
Grantor, the securities intermediary and the Administrative Agent pursuant to
which the Administrative Agent has Control, (iv) all Pledged Collateral
which represents Indebtedness owed to such Grantor by another Grantor or
Subsidiary has been duly authorized, authenticated or issued and delivered by
the issuer of such Indebtedness, is the legal, valid and binding obligation of
such issuer and such issuer is not in default thereunder and (v) to such
Grantor’s knowledge, all Pledged Collateral which represents Indebtedness owed
to such Grantor (other than Indebtedness covered by item (iv) above) has
been duly authorized, authenticated or issued and delivered by the issuer of
such Indebtedness, is the legal, valid and binding obligation of such issuer
and such issuer is not in default thereunder.

 

(b)                                 In addition, (i) none of the Pledged
Collateral owned by it has been issued or transferred in violation of the
securities registration, securities disclosure or similar laws of any
jurisdiction to which such issuance or transfer may be subject, (ii) except
as set forth on Exhihbit E, there are existing no options, warrants,
calls or commitments of any character whatsoever relating to such Pledged
Collateral or which obligate the issuer of any capital stock included in the
Pledged Collateral to issue additional capital stock, and (iii) no
consent, approval, authorization, or other action by, and no giving of notice,
filing with, any governmental authority or any other Person, other than the
Bankruptcy Court in connection with the Orders, is required for the pledge by
such Grantor of such Pledged Collateral pursuant to this Security Agreement or for
the execution, delivery and performance of this Security Agreement by such
Grantor, or for the exercise by the Administrative Agent of the voting or other
rights provided for in this Security Agreement or for the remedies in respect
of the Pledged Collateral pursuant to this Security Agreement, except as may be
required in connection with such disposition by laws affecting the offering and
sale of securities generally.

 

(c)                                  Except as set forth in Exhihbit E,
such Grantor owns 100% of the issued and outstanding capital stock which
constitute Pledged Collateral owned by it and, to such Grantor’s knowledge,
none of the Pledged Collateral which represents Indebtedness owed to such
Grantor is subordinated in right of payment to other Indebtedness or subject to
the terms of an indenture.

 

3.14.                       Bankruptcy Court.  Upon
the entry by the Bankruptcy Court and the Canadian Court, as applicable, of the
Orders, this Security Agreement shall have been duly executed and delivered by
the Grantors.  Upon the entry by the Bankruptcy
Court and the Canadian Court, as applicable, of the Orders this Security
Agreement when delivered hereunder or thereunder, will be, a legal, valid and
binding obligation of each Grantor, enforceable against the Grantors in
accordance with its terms and the Orders.

 

ARTICLE IV

COVENANTS

 

From the date of this Security Agreement, and thereafter until this
Security Agreement is terminated, each Grantor agrees that:

 

4.1.                             General.

 

(a)                                  Collateral Records.  Such
Grantor will maintain complete and accurate books and records with respect to
the Collateral owned by it.

 

(b)                                 Authorization to File Financing Statements;
Ratification.  Such Grantor hereby authorizes the
Administrative Agent to file, without further
order of the Bankruptcy Court or the Canadian Court, and if requested
will deliver to the Administrative Agent, all financing statements and other
documents and take such other actions as may from time to time be requested by
the Administrative Agent in order to maintain a first perfected security interest
in and, if applicable, Control of, the Collateral owned by such Grantor.  Any financing statement filed by the
Administrative Agent may be filed in any filing office in any 

 

8

 

UCC jurisdiction and may (i) indicate such Grantor’s Collateral (1) as
all assets of the Grantor or words of similar effect, regardless of whether any
particular asset comprised in the Collateral falls within the scope of Article 9
of the UCC or such jurisdiction, or (2) by any other description which
reasonably approximates the description contained in this Security Agreement,
and (ii) contain any other information required by part 5 of Article 9
of the UCC for the sufficiency or filing office acceptance of any financing
statement or amendment, including (A) whether such Grantor is an
organization, the type of organization and any organization identification
number issued to such Grantor, and (B) in the case of a financing
statement filed as a fixture filing or indicating such Grantor’s Collateral as
as-extracted collateral or timber to be cut, a sufficient description of real
property to which the Collateral relates. 
Such Grantor also agrees to furnish any such information to the
Administrative Agent promptly upon request. 
Such Grantor also ratifies its authorization for the Administrative
Agent to have filed in any UCC jurisdiction any initial financing statements or
amendments thereto if filed prior to the date hereof.

 

(c)                                  Further Assurances.  Such
Grantor will, if so requested by the Administrative Agent (and without further
order of the Bankruptcy Court or the Canadian Court), furnish to the
Administrative Agent, as often as the Administrative Agent requests in its
Permitted Discretion, statements and schedules further identifying and
describing the Collateral owned by it and such other reports and information in
connection with its Collateral as the Administrative Agent may reasonably
request, all in such detail as the Administrative Agent may specify.  Such Grantor also agrees to take any and all
actions necessary to defend title to the Collateral against all persons and to
defend the security interest of the Administrative Agent in its Collateral and
the priority thereof against any Lien not expressly permitted hereunder.

 

(d)                                 Disposition of Collateral.  Such
Grantor will not sell, lease or otherwise dispose of the Collateral owned by it
except for dispositions specifically permitted pursuant to Section 6.12 of
the Credit Agreement.

 

(e)                                  Liens.  Such Grantor will not create, incur,
or suffer to exist any Lien on the Collateral owned by it except (i) the
security interest created by this Security Agreement, and (ii) other
Permitted Liens.

 

(f)                                    Other Financing Statements.  Such
Grantor will not authorize the filing of any financing statement naming it as
debtor covering all or any portion of the Collateral owned by it, except as
permitted by Section 4.1(e). 
Such Grantor acknowledges that it is not authorized to file any
financing statement or amendment or termination statement with respect to any
financing statement without the prior written consent of the Administrative
Agent, subject to such Grantor’s rights under Section 9-509(d)(2) of
the UCC.

 

(g)                                 Locations. Such Grantor will not maintain any Collateral owned by it at any location
other than those locations listed on Exhibit A, provided
that such Grantor may amend Exhibit A to change, or add to, such
locations after giving the Administrative Agent 30 days prior written notice (provided
further that such Grantor shall exercise commercially reasonable efforts
to obtain a Landlord Lien Waiver for each such location which is not owned by
such Grantor if more than $100,000 of Collateral is maintained at such
location).

 

(h)                                 Compliance with Terms.  Such
Grantor will perform and comply in all material respects with all obligations
in respect of the Collateral owned by it and all agreements to which it is a
party or by which it is bound relating to such Collateral.

 

4.2.                             Receivables.

 

(a)                                  Certain Agreements on Receivables.  Such
Grantor will not make or agree to make any discount, credit, rebate or other
reduction in the original amount owing on a Receivable or accept in
satisfaction of a Receivable less than the original amount thereof, except
that, prior to the occurrence of an Event of Default, such Grantor may reduce
the amount of Accounts arising from the sale of Inventory in accordance with
its present policies and in the ordinary course of business.

 

9

 

(b)                                 Collection of Receivables. 
Except as otherwise provided in this Security Agreement, such Grantor
will collect and enforce, at such Grantor’s sole expense, all amounts due or
hereafter due to such Grantor under the Receivables owned by it.

 

(c)                                  Delivery of Invoices.  At
any time when an Event of Default exists, such Grantor will deliver to the
Administrative Agent immediately upon its request duplicate invoices with
respect to each Account owned by it bearing such language of assignment as the
Administrative Agent shall specify.

 

(d)                                 Disclosure of Material Reductions in
Receivables.  Such Grantor, promptly upon obtaining
knowledge of any event, circumstance or change that has occurred since the most
recent date on which a Borrowing Base Certificate was required to be delivered
pursuant to Section 5.8 of the Credit Agreement that could
materially reduce the aggregate amount of Eligible Accounts or result in a
material portion of the Eligible Accounts ceasing to be Eligible Accounts,
shall promptly disclose such fact to the Administrative Agent in writing.

 

(e)                                  Electronic Chattel Paper.  Such
Grantor shall take all steps necessary to grant the Administrative Agent
Control of all electronic chattel paper in accordance with the UCC and all “transferable
records” as defined in each of the Uniform Electronic Transactions Act and the
Electronic Signatures in Global and National Commerce Act.

 

4.3.                             Inventory and Equipment.

 

(a)                                  Maintenance of Goods.  Such
Grantor will do all things necessary to maintain, preserve, protect and keep
its Inventory and the Equipment in good repair and working and saleable
condition, except for damaged or defective goods arising in the ordinary course
of such Grantor’s business and except for ordinary wear and tear in respect of
the Equipment.

 

(b)                                 Returned Inventory.  If
an Account Debtor returns any Inventory to such Grantor when no Event of
Default exists, then such Grantor shall promptly determine the reason for such
return and shall issue a credit memorandum to the Account Debtor in the
appropriate amount.  Such Grantor shall
promptly report to the Administrative Agent any return involving an amount in
excess of $500,000.  Each such report
shall indicate the reasons for the returns and the locations and condition of
the returned Inventory.  In the event any
Account Debtor returns Inventory to such Grantor when an Event of Default
exists, such Grantor, upon the request of the Administrative Agent, shall: (i) hold
the returned Inventory in trust for the Administrative Agent; (ii) segregate
all returned Inventory from all of its other property; (iii) dispose of
the returned Inventory solely according to the Administrative Agent’s written
instructions; and (iv) not issue any credits or allowances with respect
thereto without the Administrative Agent’s prior written consent.  All returned Inventory shall be subject to
the Administrative Agent’s Liens thereon. 
Whenever any Inventory is returned, the related Account shall be deemed
ineligible to the extent of the amount owing by the Account Debtor with respect
to such returned Inventory and such returned Inventory shall not be Eligible
Inventory.

 

(c)                                  Inventory Count.  Such
Grantor will conduct a physical count of its Inventory at least once per fiscal
year, and after and during the continuation of an Event of Default, at such
other times as the Administrative Agent requests. Such Grantor, at its own
expense, shall deliver to the Administrative Agent the results of each physical
verification, which such Grantor has made, or has caused any other Person to
make on its behalf, of all or any portion of its Inventory.

 

(d)                                 Equipment.  Such Grantor shall promptly
inform the Administrative Agent of any additions to or deletions from its
Equipment which individually exceed $5,000,000. 
Such Grantor shall not permit any Equipment to become a fixture with
respect to real property or to become an accession with respect to other
personal property with respect to which real or personal property the
Administrative Agent does not have a Lien of the same priority as the Lien on
such Equipment prior thereto.  Such
Grantor will not, without the Administrative Agent’s prior written consent,
alter or remove any identifying symbol or number on any of such Grantor’s
Equipment constituting Eligible Equipment.

 

10

 

(e)                                  Titled Vehicles.  Upon
the Administrative Agent’s request, such Grantor will provide to the
Administrative Agent a schedule of all vehicles owned by such Grantor that are
covered by a certificate of title and deliver to the Administrative Agent, upon
request, the original of any vehicle title certificate and provide and/or file
all other documents or instruments necessary to have the Lien of the
Administrative Agent noted on any such certificate or with the appropriate
state office.

 

4.4.                             Delivery of Instruments, Securities, Chattel
Paper and Documents. Such
Grantor will (a) deliver to the Administrative Agent immediately upon
execution of this Security Agreement the originals of each item of Chattel
Paper in an amount in excess of $1,000,000, each certificated Security having a
face or fair market value in excess of $1,000,000 and each Instrument in a
principal amount in excess of $1,000,000 owned by it (if any then exist), (b) hold
in trust for the Administrative Agent upon receipt and immediately thereafter
deliver to the Administrative Agent any such Chattel Paper, Securities and
Instruments, (c) upon the Administrative Agent’s request, deliver to the
Administrative Agent (and thereafter hold in trust for the Administrative Agent
upon receipt and immediately deliver to the Administrative Agent) any Document
evidencing or constituting Collateral having a value in excess of $1,000,000
and (d) upon the Administrative Agent’s request, deliver to the
Administrative Agent a duly executed amendment to this Security Agreement, in
the form of Exhihbit F hereto (the “Amendment”), pursuant to
which such Grantor will pledge such additional Collateral.  Such Grantor hereby authorizes the
Administrative Agent to attach each Amendment to this Security Agreement and
agrees that all additional Collateral owned by it set forth in such Amendments
shall be considered to be part of the Collateral.

 

4.5.                             Uncertificated Pledged Collateral. Such Grantor will permit the Administrative
Agent from time to time to cause the appropriate issuers (and, if held with a
securities intermediary, such securities intermediary) of uncertificated
securities or other types of Pledged Collateral owned by it not represented by
certificates to mark their books and records with the numbers and face amounts
of all such uncertificated securities or other types of Pledged Collateral not
represented by certificates and all rollovers and replacements therefor to
reflect the Lien of the Administrative Agent granted pursuant to this Security
Agreement.  With respect to any Pledged
Collateral owned by it, promptly, upon request of the Administrative Agent,
such Grantor will take any actions necessary to cause (a) the issuers of
uncertificated securities which are Pledged Collateral and (b) any
securities intermediary which is the holder of any such Pledged Collateral, to
cause the Administrative Agent to have and retain Control over such Pledged
Collateral.  Without limiting the
foregoing, such Grantor will, with respect to any such Pledged Collateral held
with a securities intermediary, cause such securities intermediary within 60
days after the Filing Date to enter into a control agreement with the
Administrative Agent, in form and substance satisfactory to the Administrative
Agent, giving the Administrative Agent Control. 
Each Grantor confirms and agrees that each issuer of uncertificated
securities which are Pledged Collateral shall comply with any instructions that
are originated by the Administrative Agent without any further consent of
such Grantor.  Each Grantor that is
an issuer of Pledged Collateral hereby acknowledges and agrees to comply with
any instructions that are originated by the Administrative Agent without
any further consent of any such Grantor in accordance with this Section.

 

4.6.                             Pledged Collateral.

 

(a)                                  Changes in Capital Structure of Issuers. Such Grantor will not, except to the extent
expressly permitted by the Credit Agreement, (i) permit or suffer any
other Grantor or Subsidiary thereof to dissolve, liquidate, retire any of its
capital stock or other Instruments or Securities evidencing ownership, reduce
its capital, sell or encumber all or substantially all of its assets or merge
or consolidate with any other entity, or (ii) vote any such Pledged
Collateral in favor of any of the foregoing.

 

(b)                                 Issuance of Additional Securities.  Such
Grantor will not permit or suffer the issuer of capital stock constituting
Pledged Collateral consisting of ownership interests in a Subsidiary owned by
it to issue additional capital stock, any right to receive the same or any
right to receive earnings, except to such Grantor.

 

11

 

(c)                                  Registration of Pledged Collateral.  Such
Grantor will permit any registerable Pledged Collateral owned by it to be
registered in the name of the Administrative Agent or its nominee at any time
at the option of the Required Secured Parties.

 

(d)                                 Exercise of Rights in Pledged Collateral.

 

(i)                                     Without in any way limiting the foregoing and
subject to clause (ii) below, such Grantor shall have the right to
exercise all voting rights or other rights relating to the Pledged Collateral
owned by it for all purposes not inconsistent with this Security Agreement, the
Credit Agreement or any other Loan Document; provided
however, that no vote
or other right shall be exercised or action taken which would have the effect
of impairing the rights of the Administrative Agent in respect of such Pledged
Collateral.

 

(ii)                                  Such Grantor will permit the Administrative
Agent or its nominee at any time after the occurrence of an Event of Default,
without notice, subject to Section 5.2(h), to exercise all voting
rights or other rights relating to the Pledged Collateral owned by it,
including, without limitation, exchange, subscription or any other rights,
privileges, or options pertaining to any capital stock or Investment Property
constituting such Pledged Collateral as if it were the absolute owner thereof.

 

(iii)                               Such Grantor shall be entitled to collect and
receive for its own use all cash dividends and interest paid in respect of the
Pledged Collateral owned by it to the extent not in violation of the Credit
Agreement other than any of the following distributions and payments
(collectively referred to as the “Excluded Payments”): (A) dividends
and interest paid or payable other than in cash in respect of such Pledged
Collateral, and instruments and other property received, receivable or
otherwise distributed in respect of, or in exchange for, any Pledged Collateral;  (B) dividends and other distributions
paid or payable in cash in respect of such Pledged Collateral in connection
with a partial or total liquidation or dissolution or in connection with a
reduction of capital, capital surplus or paid-in capital of an issuer; and (C) cash
paid, payable or otherwise distributed, in respect of principal of, or in
redemption of, or in exchange for, such Pledged Collateral; provided however, that until actually
paid, all rights to such distributions shall remain subject to the Lien created
by this Security Agreement; and

 

(iv)                              All Excluded Payments and all other
distributions in respect of any of the Pledged Collateral owned by such
Grantor, whenever paid or made, shall be delivered to the Administrative Agent
to hold as Pledged Collateral and shall, if received by such Grantor, be
received in trust for the benefit of the Administrative Agent, be segregated
from the other property or funds of such Grantor, and be forthwith delivered to
the Administrative Agent as Pledged Collateral in the same form as so received
(with any necessary endorsement).

 

4.7.                             Intellectual Property.

 

(a)                                  Such Grantor will use its best efforts to
secure all consents and approvals necessary or appropriate for the assignment
to or benefit of the Administrative Agent of any License held by such Grantor
and to enforce the security interests granted hereunder.

 

(b)                                 Such Grantor shall notify the Administrative
Agent immediately if it knows or has reason to know that any application or
registration relating to any Patent, Trademark or Copyright (now or hereafter
existing) may become abandoned or dedicated, or of any adverse determination or
development (including the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark
Office, the United States Copyright Office or any court) regarding such Grantor’s
ownership of any Patent, Trademark or Copyright, its right to register the
same, or to keep and maintain the same.

 

(c)                                  In no event shall such Grantor, either
directly or through any agent, employee, licensee or designee, file an
application for the registration of any Patent, Trademark or Copyright with the
United States 

 

12

 

Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency without giving the Administrative Agent prior written notice thereof,
and, upon request of the Administrative Agent, such Grantor shall execute and
deliver any and all security agreements as the Administrative Agent may request
to evidence the Administrative Agent’s first priority security interest on such
Patent, Trademark or Copyright, and the General Intangibles of such Grantor
relating thereto or represented thereby.

 

(d)                                 Such Grantor shall take all actions necessary
or requested by the Administrative Agent to maintain and pursue each
application, to obtain the relevant registration and to maintain the
registration of each of its Patents, Trademarks and Copyrights (now or hereafter
existing), including the filing of applications for renewal, affidavits of use,
affidavits of noncontestability and opposition and interference and
cancellation proceedings, unless the Administrative Agent shall determine that
such Patent, Trademark or Copyright is not material to the conduct of such
Grantor’s business.

 

(e)                                  Such Grantor shall, unless it shall
reasonably determine that such Patent, Trademark or Copyright is in no way
material to the conduct of its business or operations, promptly sue for infringement,
misappropriation or dilution and to recover any and all damages for such
infringement, misappropriation or dilution, and shall take such other actions
as the Administrative Agent shall deem appropriate under the circumstances to
protect such Patent, Trademark or Copyright. 
In the event that such Grantor institutes suit because any of its
Patents, Trademarks or Copyrights constituting Collateral is infringed upon, or
misappropriated or diluted by a third party, such Grantor shall comply with Section 4.8.

 

4.8                                Commercial Tort Claims.  Such
Grantor shall promptly, and in any event within two Business Days after the
same is acquired by it, notify the Administrative Agent of any commercial tort
claim (as defined in the UCC) having, in such Grantor’s reasonable business
judgment, a value in excess of $1,000,000, acquired by it and, unless the
Administrative Agent otherwise consents, such Grantor shall enter into an
amendment to this Security Agreement, in the form of Exhihbit F hereto,
granting to Administrative Agent a first priority security interest in such
commercial tort claim.

 

4.9.                             Letter-of-Credit Rights.  If
such Grantor is or becomes the beneficiary of a letter of credit with a stated
amount in excess of $5,000,000, it shall promptly, and in any event within two
Business Days after becoming a beneficiary, notify the Administrative Agent
thereof and cause the issuer and/or confirmation bank to (i) consent to
the assignment of any Letter-of-Credit Rights to the Administrative Agent and (ii) agree
to direct all payments thereunder to a Deposit Account at the Administrative
Agent or subject to a Deposit Account Control Agreement for application to the
Secured Obligations, in accordance with Section 2.15 of the Credit
Agreement, all in form and substance reasonably satisfactory to the
Administrative Agent.

 

4.10.                       Federal, State or Municipal Claims.  Such
Grantor will promptly notify the Administrative Agent of any Collateral having
a value in excess of $1,000,000 which constitutes a claim against the United
States government or any state or local government or any instrumentality or
agency thereof, the assignment of which claim is restricted by federal, state
or municipal law.

 

4.11.                       No Interference.  Such
Grantor agrees that it will not interfere with any right, power and remedy of
the Administrative Agent provided for in this Security Agreement or now or
hereafter existing at law or in equity or by statute or otherwise, or the
exercise or beginning of the exercise by the Administrative Agent of any one or
more of such rights, powers or remedies.

 

4.12.                       Insurance.

 

(a)                                  In the event any Collateral is located in any
area that has been designated by the Federal Emergency Management Agency as a “Special
Flood Hazard Area”, such Grantor shall purchase and maintain flood insurance on
such Collateral (including any personal property which is located on any real
property leased by such Loan Party within a “Special Flood Hazard Area”).  The amount of flood insurance required by
this Section shall be in an amount equal to the lesser of the total
Commitment or the total replacement cost value of the improvements.

 

13

 

(b)                                 All insurance policies required hereunder and
under Section 5.3 of the Credit Agreement shall name the Administrative
Agent (for the benefit of the Administrative Agent and the Lenders) as an
additional insured or as loss payee, as applicable, and shall contain loss
payable clauses or mortgagee clauses, through endorsements in form and
substance satisfactory to the Administrative Agent, which provide that: (i) all
proceeds thereunder with respect to any Collateral shall be payable to the
Administrative Agent; (ii) no such insurance shall be affected by any act
or neglect of the insured or owner of the property described in such policy;
and (iii) such policy and loss payable or mortgagee clauses may be
canceled, amended, or terminated only upon at least thirty days prior written
notice given to the Administrative Agent.

 

(c)                                  All premiums on any such insurance shall be
paid when due by such Grantor, and promptly upon request of the Administrative
Agent, copies of the policies shall be delivered to the Administrative
Agent.  If such Grantor fails to obtain
any insurance as required by this Section, the Administrative Agent may obtain
such insurance at the Borrower’s expense. 
By purchasing such insurance, the Administrative Agent shall not be
deemed to have waived any Default arising from the Grantor’s failure to
maintain such insurance or pay any premiums therefor.

 

4.13.                       Landlord Lien Waivers.  Such
Grantor shall use commercially reasonable efforts to obtain a Landlord Lien
Waiver, from the lessor of each leased property, mortgagee of owned property or
bailee or consignee with respect to any warehouse, processor or converter
facility or other location where Collateral having a value in excess of
$100,000 is stored or located, which agreement or letter shall provide access
rights, contain a waiver or subordination of all Liens or claims that the
landlord, mortgagee, bailee or consignee may assert against the Collateral at
that location, and shall otherwise be reasonably satisfactory in form and
substance to the Administrative Agent. With respect to such locations or
warehouse space leased as of the Closing Date and thereafter, if the
Administrative Agent has not received a Landlord Lien Waiver as of the
Effective Date (or, if later, as of the date such location is acquired or
leased), Borrower’s Eligible Inventory at that location shall be subject to
such Reserves as may be established by the Administrative Agent in accordance
with the provisions of the Credit Agreement. 
After the Closing Date, no real property or warehouse space shall be
leased by such Grantor and no Inventory shall be shipped to a processor or
converter under arrangements established after the Closing Date, unless and
until a satisfactory Landlord Lien Waiver shall first have been obtained with
respect to such location and if it has not been obtained, Borrower’s Eligible
Inventory at that location shall be subject to the establishment of Reserves
acceptable to the Administrative Agent in accordance with the provisions of the
Credit Agreement.  Such Grantor shall
timely and fully pay and perform its obligations under all leases and other
agreements with respect to each leased location or third party warehouse where
any Collateral is or may be located.

 

4.14.                       Deposit Account Control Agreements.  Such
Grantor (other than Calpine) will provide to the Administrative Agent upon the
Administrative Agent’s request, a Deposit Account Control Agreement duly
executed on behalf of each financial institution holding a deposit account
(other than zero balance accounts, payroll accounts and withholding tax payment
accounts) of such Grantor in which an average balance of at least $1,000,000 is
maintained; provided that, the
aggregate average balance in such deposit accounts (other than deposit accounts
of Calpine, zero balance accounts, payroll accounts and withholding tax payment
accounts) as to which a Deposit Account Control Agreement is not in effect
shall not exceed $5,000,000; provided further that, the  Administrative Agent may, in its discretion, defer delivery
of any such Deposit Account Control Agreement, establish a Reserve with respect
to any deposit account for which the Administrative Agent has not received such
Deposit Account Control Agreement, and require such Grantor to open and
maintain a new deposit account with a financial institution subject to a
Deposit Account Control Agreement.

 

4.15.                       Change of Name or Location; Change of Fiscal
Year.  Such Grantor shall not (a) change its
name as it appears in official filings in the state of its incorporation or
organization, (b) change its chief executive office, principal place of
business, mailing address, or the location of its records concerning the
Collateral as set forth in the Security Agreement, (c) change the type of
entity that it is, (d) change its organization identification number, if
any, issued by its state of incorporation or other organization, or (e) change
its state of incorporation or organization, in each case, unless the
Administrative Agent shall have received at least thirty days prior 

 

14

 

written
notice of such change and the Administrative Agent shall have acknowledged in
writing that either (1) such change will not adversely affect the
validity, perfection or priority of the Administrative Agent’s security
interest in the Collateral, or (2) any reasonable action requested by the
Administrative Agent in connection therewith has been completed or taken
(including any action to continue the perfection of any Liens in favor of the
Administrative Agent, on behalf of Lenders, in any Collateral), provided that, any new location shall be
in the continental U.S. or in Canada. 
Such Grantor shall not change its fiscal year which currently ends on December 31.

 

ARTICLE V

EVENTS OF DEFAULT AND
REMEDIES

 

5.1.                             Events of Default.  The
occurrence of any one or more of the following events shall constitute an Event
of Default hereunder:

 

(a)                                  Any representation or warranty made by or on
behalf of any Grantor under or in connection with this Security Agreement shall
be materially false as of the date on which made.

 

(b)                                 The breach by any Grantor of any of the terms
or provisions of Article IV or Article VII.

 

(c)                                  The breach by any Grantor (other than a
breach which constitutes an Event of Default under any other Section of
this Article V) of any of the terms or provisions of this Security
Agreement which is not remedied within ten days after such breach.

 

(d)                                 The occurrence of any “Event of Default”
under, and as defined in, the Credit Agreement.

 

(e)                                  Any capital stock which is included within
the Collateral shall at any time constitute a Security or the issuer of any
such capital stock shall take any action to have such interests treated as a
Security (other than any Securities having a face or fair market value of
$1,000,000 or less which are not issued by a Grantor hereunder) unless (i) all
certificates or other documents constituting such Security have been delivered
to the Administrative Agent and such Security is properly defined as such under
Article 8 of the UCC of the applicable jurisdiction, whether as a result
of actions by the issuer thereof or otherwise, or (ii) the Administrative
Agent has entered into a control agreement with the issuer of such Security or
with a securities intermediary relating to such Security and such Security is
defined as such under Article 8 of the UCC of the applicable jurisdiction,
whether as a result of actions by the issuer thereof or otherwise.

 

5.2.                             Remedies.

 

(a)                                  Upon the occurrence of an Event of Default,
subject to Section 5.2(h), the Administrative Agent may, or upon
the request of the Required Secured Parties shall, exercise any or all of the
following rights and remedies:

 

(i)                                     those rights and remedies provided in the
Orders, this Security Agreement, the Credit Agreement, or any other Loan
Document; provided that, this Section 5.2(a) shall
not be understood to limit any rights or remedies available to the
Administrative Agent and the Lenders prior to an Event of Default;

 

(ii)                                  those rights and remedies available to a
secured party under the UCC (whether or not the UCC applies to the affected
Collateral) or under any other applicable law (including, without limitation,
any law governing the exercise of a bank’s right of setoff or bankers’ lien)
when a debtor is in default under a security agreement;

 

15

 

(iii)                               give notice of sole control or any other instruction under any Deposit
Account Control Agreement or and other control agreement with any securities
intermediary and take any action therein with respect to such Collateral;

 

(iv)                              without notice (except as specifically provided in Section 8.1 or
elsewhere herein), demand or advertisement of any kind to any Grantor or any
other Person, enter the premises of any Grantor where any Collateral is located
(through self-help and without judicial process) to collect, receive, assemble,
process, appropriate, sell, lease, assign, grant an option or options to
purchase or otherwise dispose of, deliver, or realize upon, the Collateral or
any part thereof in one or more parcels at public or private sale or sales
(which sales may be adjourned or continued from time to time with or without
notice and may take place at any Grantor’s premises or elsewhere), for cash, on
credit or for future delivery without assumption of any credit risk, and upon
such other terms as the Administrative Agent may deem commercially reasonable;
and

 

(v)                                 concurrently with written notice to the
applicable Grantor, transfer and register in its name or in the name of its
nominee the whole or any part of the Pledged Collateral, to exchange
certificates or instruments representing or evidencing Pledged Collateral for
certificates or instruments of smaller or larger denominations, to exercise the
voting and all other rights as a holder with respect thereto, to collect and
receive all cash dividends, interest, principal and other distributions made
thereon and to otherwise act with respect to the Pledged Collateral as though
the Administrative Agent was the outright owner thereof.

 

(b)                                 The Administrative Agent, on behalf of the
Lenders, may comply with any applicable state or federal law requirements in
connection with a disposition of the Collateral and compliance will not be
considered to adversely affect the commercial reasonableness of any sale of the
Collateral.

 

(c)                                  The Administrative Agent shall have the right
upon any such public sale or sales and, to the extent permitted by law, upon
any such private sale or sales, to purchase for the benefit of the
Administrative Agent and the Lenders, the whole or any part of the Collateral
so sold, free of any right of equity redemption, which equity redemption the
Grantor hereby expressly releases.

 

(d)                                 Until the Administrative Agent is able to
effect a sale, lease, or other disposition of Collateral, the Administrative
Agent shall have the right to hold or use Collateral, or any part thereof, to
the extent that it deems appropriate for the purpose of preserving Collateral
or its value or for any other purpose deemed appropriate by the Administrative
Agent.  The Administrative Agent may, if
it so elects, seek the appointment of a receiver or keeper to take possession
of Collateral and to enforce any of the Administrative Agent’s remedies (for
the benefit of the Administrative Agent and Lenders), with respect to such
appointment without prior notice or hearing as to such appointment.

 

(e)                                  If, after the Credit Agreement has terminated
by its terms and all of the Obligations have been paid in full, there remain
Swap Obligations outstanding, the Required Secured Parties may exercise the
remedies provided in this Section 5.2 upon the occurrence of any event
which would allow or require the termination or acceleration of any Swap
Obligations pursuant to the terms of the Swap Agreement.

 

(f)                                    Notwithstanding the foregoing, neither the
Administrative Agent nor the Lenders shall be required to (i) make any
demand upon, or pursue or exhaust any of their rights or remedies against, any
Grantor, any other obligor, guarantor, pledgor or any other Person with respect
to the payment of the Secured Obligations or to pursue or exhaust any of their
rights or remedies with respect to any Collateral therefor or any direct or
indirect guarantee thereof, (ii) marshal the Collateral or any guarantee
of the Secured Obligations or to resort to the Collateral or any such guarantee
in any particular order, or (iii) effect a public sale of any Collateral.

 

(g)                                 Each Grantor recognizes that the
Administrative Agent may be unable to effect a public sale of any or all the
Pledged Collateral and may be compelled to resort to one or more private sales
thereof in 

 

16

 

accordance
with clause (a) above.  Each
Grantor also acknowledges that any private sale may result in prices and other
terms less favorable to the seller than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall not
be deemed to have been made in a commercially unreasonable manner solely by
virtue of such sale being private.  The
Administrative Agent shall be under no obligation to delay a sale of any of the
Pledged Collateral for the period of time necessary to permit any Grantor or
the issuer of the Pledged Collateral to register such securities for public
sale under the Securities Act of 1933, as amended, or under applicable state
securities laws, even if the applicable Grantor and the issuer would agree to
do so.

 

(h)                                 Notwithstanding anything to the contrary
contained in this Agreement, the exercise of remedies hereunder shall be
subject to compliance with the notice requirements set forth in Section 7.1
of the Credit Agreement.

 

5.3.                             Grantor’s Obligations Upon Default.  Upon
the request of the Administrative Agent after the occurrence of a Default, each
Grantor will:

 

(a)                                  assemble and make available to the
Administrative Agent the Collateral and all books and records relating thereto
at any place or places specified by the Administrative Agent, whether at a
Grantor’s premises or elsewhere;

 

(b)                                 permit the Administrative Agent, by the
Administrative Agent’s representatives and agents, to enter, occupy and use any
premises where all or any part of the Collateral, or the books and records
relating thereto, or both, are located, to take possession of all or any part
of the Collateral or the books and records relating thereto, or both, to remove
all or any part of the Collateral or the books and records relating thereto, or
both, and to conduct sales of the Collateral, without any obligation to pay the
Grantor for such use and occupancy;

 

(c)                                  prepare and file, or cause an issuer of
Pledged Collateral to prepare and file, with the Securities and Exchange
Commission or any other applicable government agency, registration statements,
a prospectus and such other documentation in connection with the Pledged
Collateral as the Administrative Agent may request, all in form and substance
satisfactory to the Administrative Agent, and furnish to the Administrative
Agent, or cause an issuer of Pledged Collateral to furnish to the
Administrative Agent, any information regarding the Pledged Collateral in such
detail as the Administrative Agent may specify;

 

(d)                                 take, or cause an issuer of Pledged
Collateral to take, any and all actions necessary to register or qualify the
Pledged Collateral to enable the Administrative Agent to consummate a public
sale or other disposition of the Pledged Collateral; and

 

(e)                                  at its own expense, cause the independent
certified public accountants then engaged by each Grantor to prepare and
deliver to the Administrative Agent and each Lender, at any time, and from time
to time, promptly upon the Administrative Agent’s request, the following
reports with respect to the applicable Grantor: (i) a reconciliation of
all Accounts; (ii) an aging of all Accounts; (iii) trial balances;
and (iv) a test verification of such Accounts.

 

5.4.                             Grant of Intellectual Property License.  For
the purpose of enabling the Administrative Agent to exercise the rights and
remedies under this Article V at such time as the Administrative
Agent shall be lawfully entitled to exercise such rights and remedies, but in
each case subject to the limitations and exclusions set forth in Article II
hereof, each Grantor hereby (a) grants to the Administrative Agent, for
the benefit of the Administrative Agent and the Lenders, an irrevocable,
nonexclusive license (exercisable without payment of royalty or other
compensation to any Grantor) to use, license or sublicense any intellectual
property rights now owned or hereafter acquired by such Grantor, and wherever
the same may be located, and including in such license access to all media in
which any of the licensed items may be recorded or stored and to all computer
software and programs used for the compilation or printout thereof and (b) irrevocably
agrees that the Administrative Agent may sell any of such Grantor’s Inventory
directly to any person, including without limitation persons who have
previously purchased the Grantor’s Inventory from such Grantor and in
connection 

 

17

 

with
any such sale or other enforcement of the Administrative Agent’s rights under
this Security Agreement, may sell Inventory which bears any Trademark owned by
or licensed to such Grantor and any Inventory that is covered by any Copyright
owned by or licensed to such Grantor and the Administrative Agent may finish
any work in process and affix any Trademark owned by or licensed to such
Grantor and sell such Inventory as provided herein.

 

ARTICLE VI

ACCOUNT VERIFICATION;
ATTORNEY IN FACT; PROXY

 

6.1.                             Account Verification.  The
Administrative Agent may at any time, in the Administrative Agent’s own name,
in the name of a nominee of the Administrative Agent, or in the name of any
Grantor communicate (by mail, telephone, facsimile or otherwise) with the
Account Debtors of any such Grantor, parties to contracts with any such Grantor
and obligors in respect of Instruments of any such Grantor to verify with such
Persons, to the Administrative Agent’s satisfaction, the existence, amount,
terms of, and any other matter relating to, Accounts, Instruments, Chattel
Paper, payment intangibles and/or other Receivables.

 

6.2.                             Authorization for Secured Party to Take
Certain Action.

 

(a)                                  Each Grantor irrevocably authorizes the
Administrative Agent at any time and from time to time in the sole discretion
of the Administrative Agent and appoints the Administrative Agent as its
attorney in fact (i) to execute on behalf of such Grantor as debtor and to
file financing statements necessary or desirable in the Administrative Agent’s
sole discretion to perfect and to maintain the perfection and priority of the
Administrative Agent’s security interest in the Collateral, (ii) to
endorse and collect any cash proceeds of the Collateral, (iii) to file a
carbon, photographic or other reproduction of this Security Agreement or any
financing statement with respect to the Collateral as a financing statement and
to file any other financing statement or amendment of a financing statement
(which does not add new collateral or add a debtor) in such offices as the
Administrative Agent in its sole discretion deems necessary or desirable to
perfect and to maintain the perfection and priority of the Administrative Agent’s
security interest in the Collateral, (iv) to contact and enter into one or
more agreements with the issuers of uncertificated securities which are Pledged
Collateral or with securities intermediaries holding Pledged Collateral as may
be necessary or advisable to give the Administrative Agent Control over such
Pledged Collateral, (v) to apply the proceeds of any Collateral received
by the Administrative Agent to the Secured Obligations as provided in Section 7.3,
(vi) to discharge past due taxes, assessments, charges, fees or Liens on
the Collateral (except for such Liens as are specifically permitted hereunder),
(vii) to contact Account Debtors for any reason, (viii) to demand
payment or enforce payment of the Receivables in the name of the Administrative
Agent or such Grantor and to endorse any and all checks, drafts, and other
instruments for the payment of money relating to the Receivables, (ix) to
sign such Grantor’s name on any invoice or bill of lading relating to the
Receivables, drafts against any Account Debtor of the Grantor, assignments and
verifications of Receivables, (x) to exercise all of such Grantor’s rights
and remedies with respect to the collection of the Receivables and any other
Collateral, (xi) to settle, adjust, compromise, extend or renew the
Receivables, (xii) to settle, adjust or compromise any legal proceedings
brought to collect Receivables, (xiii) to prepare, file and sign such Grantor’s
name on a proof of claim in bankruptcy or similar document against any Account
Debtor of such Grantor, (xiv) to prepare, file and sign such Grantor’s name on
any notice of Lien, assignment or satisfaction of Lien or similar document in
connection with the Receivables, (xv) to change the address for delivery of
mail addressed to such Grantor to such address as the Administrative Agent may
designate and to receive, open and dispose of all mail addressed to such
Grantor, and (xvi) to do all other acts and things necessary to carry out this
Security Agreement; and such Grantor agrees to reimburse the Administrative
Agent on demand for any payment made or any expense incurred by the
Administrative Agent in connection with any of the foregoing; provided that,
this authorization shall not relieve such Grantor of any of its obligations
under this Security Agreement or under the Credit Agreement.

 

(b)                                 All acts of said attorney or designee are
hereby ratified and approved. The powers conferred on the Administrative Agent,
for the benefit of the Administrative Agent and Lenders, under this Section 6.2
are solely to protect the Administrative Agent’s interests in the Collateral
and shall not impose any 

 

18

 

duty
upon the Administrative Agent or any Lender to exercise any such powers.  The Administrative Agent agrees that, except
for the powers granted in Section 6.2(a)(i)-(vi) and Section 6.2(a)(xvi),
it shall not exercise any power or authority granted to it unless an Event of
Default has occurred and is continuing.

 

6.3.                             Proxy. EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE
ADMINISTRATIVE AGENT AS ITS PROXY AND ATTORNEY-IN-FACT (AS SET FORTH IN SECTION 6.2
ABOVE) WITH RESPECT TO ITS PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH
PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN ADDITION TO
THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE APPOINTMENT OF THE
ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO
EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF
SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING GIVING OR WITHHOLDING
WRITTEN CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND
VOTING AT SUCH MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND
WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED
COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING
THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), UPON
THE OCCURRENCE OF A DEFAULT.

 

6.4.                             Nature of Appointment; Limitation of Duty.  THE
APPOINTMENT OF THE ADMINISTRATIVE AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS
ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE IRREVOCABLE UNTIL THE DATE
ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH SECTION 8.14.
NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER THE ADMINISTRATIVE AGENT,
NOR ANY LENDER, NOR ANY OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT
OR POWER GRANTED HEREUNDER OR OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT
BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING SO, EXCEPT IN
RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED
THAT, IN NO EVENT SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR
CONSEQUENTIAL DAMAGES.

 

ARTICLE VII

COLLECTION AND APPLICATION OF COLLATERAL PROCEEDS; DEPOSIT
ACCOUNTS

 

7.1.                             Collection of Receivables.

 

(a)                                  On or before the date which is sixty (60)
days after the Closing Date (or such later date as the Administrative Agent may
agree under Section 5.7 of the Credit Agreement), each Grantor (other than
Calpine) shall (a) execute and deliver to the Administrative Agent Deposit
Account Control Agreements for each Deposit Account maintained by such Grantor
into which all cash, checks or other similar payments relating to or
constituting payments made in respect of Receivables will be deposited (a “Collateral
Deposit Account”), which Collateral Deposit Accounts are identified as such
on Exhibit B, and (b) establish lock box service (the “Lock
Boxes”) with the bank(s) set forth in Exhibit B, which
lock boxes shall be subject to irrevocable lockbox agreements in the form
provided by or otherwise acceptable to the Administrative Agent and shall be
accompanied by an acknowledgment by the bank where the Lock Box is located of
the Lien of the Administrative Agent granted hereunder and of irrevocable
instructions to wire all amounts collected therein to the Concentration Account
(a “Lock Box Agreement”). After the Closing Date, each Grantor will
comply with the terms of Section 7.2.

 

(b)                                 On or before the date which is sixty (60)
days after the Closing Date (or such later date as the Administrative Agent may
agree under Section 5.7 of the Credit Agreement), each Grantor (other than

 

19

 

Calpine)
shall direct all of its Account Debtors to forward payments directly to Lock
Boxes subject to Lock Box Agreements. 
The Administrative Agent shall have sole access to the Lock Boxes at all
times and each Grantor shall take all actions necessary to grant the
Administrative Agent such sole access. 
At no time shall any Grantor remove any item from a Lock Box or from a
Collateral Deposit Account without the Administrative Agent’s prior written
consent.  If any Grantor (other than
Calpine) should refuse or neglect to notify any Account Debtor to forward
payments directly to a Lock Box subject to a Lock Box Agreement after notice
from the Administrative Agent, the Administrative Agent shall, notwithstanding
the language set forth in Section 6.2(b) be entitled to make such
notification directly to Account Debtor.  If notwithstanding the foregoing
instructions, any such Grantor receives any proceeds of any Receivables, such
Grantor shall receive such payments as the Administrative Agent’s trustee, and
shall immediately deposit all cash, checks or other similar payments related to
or constituting payments made in respect of Receivables received by it to a
Collateral Deposit Account.  All funds
deposited into any Lock Box subject to a Lock Box Agreement or a Collateral
Deposit Account will be swept on a daily basis into a concentration account
maintained by the U.S. Borrower with the Administrative Agent (the “Concentration
Account”). The Administrative Agent shall hold and apply funds received
into the Concentration Account as provided by the terms of Section 7.3.  Notwithstanding the foregoing, (i) up to
$2,000,000 held in deposit accounts of Smurfit-Stone Puerto Rico, Inc.
shall not be required to be swept into the Concentration Account, and (ii) payments
made to a U.S. Loan Party in Canadian Dollars may be deposited in the Canadian
Concentration Account instead of the Concentration Account.

 

7.2.          Covenant
Regarding New Deposit Accounts; Lock Boxes. 
Before opening or replacing any Collateral Deposit Account, other
Deposit Account (other than deposit accounts of Calpine, zero balance accounts,
payroll accounts and withholding tax payment accounts) in which an average
balance of at least $1,000,000 is maintained (provided
that, the aggregate average balance in Deposit Accounts (other than
deposit accounts of Calpine, zero balance accounts, payroll accounts and
withholding tax payment accounts) as to which a Deposit Account Control
Agreement is not in effect shall not exceed $5,000,000), or establishing a new
Lock Box, each Grantor (other than Calpine) shall (a) obtain the
Administrative Agent’s consent in writing to the opening of such Deposit
Account or Lock Box, and (b) cause each bank or financial institution in
which it seeks to open (i) a Deposit Account, to enter into a Deposit
Account Control Agreement with the Administrative Agent in order to give the
Administrative Agent Control of such Deposit Account, or (ii) a Lock Box,
to enter into a Lock Box Agreement with the Administrative Agent in order to
give the Administrative Agent Control of the Lock Box.  In the case of Deposit Accounts or Lock Boxes
maintained with Lenders, the terms of such letter shall be subject to the
provisions of the Credit Agreement regarding setoffs.

 

7.3.          Application of
Proceeds; Deficiency.  All amounts
deposited in the Concentration Account shall, after having been credited to the
Concentration Account, be applied (and allocated) by Administrative Agent to
the Secured Obligations as and to the extent required by Sections 2.15 and 5.7
of the Credit Agreement.  Collections
which are received into the Concentration Account but are not required to be
applied to or held as security for the Secured Obligations shall be deposited
into the U.S. Borrower’s general operating account rather than being used to
reduce amounts owing under the Credit Agreement.  The Grantors shall remain liable for any
deficiency if the proceeds of any sale or disposition of the Collateral are
insufficient to pay all Secured Obligations, including any attorneys’ fees and
other expenses incurred by Administrative Agent or any Lender to collect such
deficiency.

 

ARTICLE
VIII

GENERAL
PROVISIONS

 

8.1.          Waivers.  Each Grantor hereby waives notice of the time
and place of any public sale or the time after which any private sale or other
disposition of all or any part of the Collateral may be made.  To the extent such notice may not be waived
under applicable law, any notice made shall be deemed reasonable if sent to the
Grantors, addressed as set forth in Article IX, at least ten days prior to
(i) the date of any such public sale or (ii) the time after which any
such private sale or other disposition may be made.  To the maximum extent permitted by applicable
law, each Grantor waives all claims, damages, and demands against the
Administrative Agent or any Lender arising out of the repossession, retention
or sale of the Collateral, except such as arise solely out of the gross
negligence or willful misconduct of the Administrative Agent or such Lender as
finally 

 

20

 

determined
by a court of competent jurisdiction. To the extent it may lawfully do so, each
Grantor absolutely and irrevocably waives and relinquishes the benefit and
advantage of, and covenants not to assert against the Administrative Agent or
any Lender, any valuation, stay, appraisal, extension, moratorium, redemption
or similar laws and any and all rights or defenses it may have as a surety now
or hereafter existing which, but for this provision, might be applicable to the
sale of any Collateral made under the judgment, order or decree of any court,
or privately under the power of sale conferred by this Security Agreement, or
otherwise.  Except as otherwise
specifically provided herein, each Grantor hereby waives presentment, demand,
protest or any notice (to the maximum extent permitted by applicable law) of
any kind in connection with this Security Agreement or any Collateral.

 

8.2.          Limitation on
Administrative Agent’s and Lenders’ Duty with Respect to the Collateral.  The Administrative Agent shall have no
obligation to clean-up or otherwise prepare the Collateral for sale. The
Administrative Agent and each Lender shall use reasonable care with respect to
the Collateral in its possession or under its control.  Neither the Administrative Agent nor any
Lender shall have any other duty as to any Collateral in its possession or
control or in the possession or control of any agent or nominee of the
Administrative Agent or such Lender, or any income thereon or as to the
preservation of rights against prior parties or any other rights pertaining
thereto. To the extent that applicable law imposes duties on the Administrative
Agent to exercise remedies in a commercially reasonable manner, each Grantor
acknowledges and agrees that it is commercially reasonable for the
Administrative Agent (i) to fail to incur expenses deemed significant by
the Administrative Agent to prepare Collateral for disposition or otherwise to
transform raw material or work in process into finished goods or other finished
products for disposition, (ii) to fail to obtain third party consents for
access to Collateral to be disposed of, or to obtain or, if not required by
other law, to fail to obtain governmental or third party consents for the
collection or disposition of Collateral to be collected or disposed of, (iii) to
fail to exercise collection remedies against Account Debtors or other Persons
obligated on Collateral or to remove Liens on or any adverse claims against
Collateral, (iv) to exercise collection remedies against Account Debtors
and other Persons obligated on Collateral directly or through the use of
collection agencies and other collection specialists, (v) to advertise
dispositions of Collateral through publications or media of general circulation,
whether or not the Collateral is of a specialized nature, (vi) to contact
other Persons, whether or not in the same business as such Grantor, for
expressions of interest in acquiring all or any portion of such Collateral, (vii) to
hire one or more professional auctioneers to assist in the disposition of
Collateral, whether or not the Collateral is of a specialized nature, (viii) to
dispose of Collateral by utilizing internet sites that provide for the auction
of assets of the types included in the Collateral or that have the reasonable
capacity of doing so, or that match buyers and sellers of assets, (ix) to
dispose of assets in wholesale rather than retail markets, (x) to disclaim
disposition warranties, such as title, possession or quiet enjoyment, (xi) to
purchase insurance or credit enhancements to insure the Administrative Agent
against risks of loss, collection or disposition of Collateral or to provide to
the Administrative Agent a guaranteed return from the collection or disposition
of Collateral, or (xii) to the extent deemed appropriate by the Administrative
Agent, to obtain the services of other brokers, investment bankers, consultants
and other professionals to assist the Administrative Agent in the collection or
disposition of any of the Collateral. Each Grantor acknowledges that the
purpose of this Section 8.2 is to provide non-exhaustive indications of
what actions or omissions by the Administrative Agent would be commercially
reasonable in the Administrative Agent’s exercise of remedies against the
Collateral and that other actions or omissions by the Administrative Agent
shall not be deemed commercially unreasonable solely on account of not being
indicated in this Section 8.2. 
Without limitation upon the foregoing, nothing contained in this Section 8.2
shall be construed to grant any rights to any Grantor or to impose any duties
on the Administrative Agent that would not have been granted or imposed by this
Security Agreement or by applicable law in the absence of this Section 8.2.

 

8.3.          Compromises and
Collection of Collateral.  The
Grantors and the Administrative Agent recognize that setoffs, counterclaims,
defenses and other claims may be asserted by obligors with respect to certain
of the Receivables, that certain of the Receivables may be or become
uncollectible in whole or in part and that the expense and probability of
success in litigating a disputed Receivable may exceed the amount that
reasonably may be expected to be recovered with respect to a Receivable.  In view of the foregoing, each Grantor agrees
that the Administrative Agent may at any time and from time to time, if an
Event of Default has occurred and is continuing, subject to Section 5.2(h),
compromise with the obligor on any Receivable, accept in 

 

21

 

full
payment of any Receivable such amount as the Administrative Agent in its sole
discretion shall determine or abandon any Receivable, and any such action by
the Administrative Agent shall be commercially reasonable so long as the
Administrative Agent acts in good faith based on information known to it at the
time it takes any such action.

 

8.4.          Secured Party
Performance of Debtor Obligations. 
Without having any obligation to do so, the Administrative Agent may
perform or pay any obligation which any Grantor has agreed to perform or pay in
this Security Agreement and the Grantors shall reimburse the Administrative
Agent for any amounts paid by the Administrative Agent pursuant to this Section 8.4.  The Grantors’ obligation to reimburse the
Administrative Agent pursuant to the preceding sentence shall be a Secured
Obligation payable on demand.

 

8.5.          Specific
Performance of Certain Covenants. 
Each Grantor acknowledges and agrees that a breach of any of the
covenants contained in Sections 4.1(d), 4.1(e), 4.4, 4.5, 4.6, 4.7, 4.8, 4.9,
4.10, 4.12, 4.13, 4.14, 4.15, 5.3, or 8.7 or in Article VII will cause
irreparable injury to the Administrative Agent and the Lenders, that the
Administrative Agent and Lenders have no adequate remedy at law in respect of
such breaches and therefore agrees, without limiting the right of the
Administrative Agent or the Lenders to seek and obtain specific performance of
other obligations of the Grantors contained in this Security Agreement, that the
covenants of the Grantors contained in the Sections referred to in this Section 8.5
shall be specifically enforceable against the Grantors.

 

8.6.          Dispositions Not
Authorized.  No Grantor is authorized
to sell or otherwise dispose of the Collateral except as set forth in Section 4.1(d) and
notwithstanding any course of dealing between any Grantor and the
Administrative Agent or other conduct of the Administrative Agent, no
authorization to sell or otherwise dispose of the Collateral (except as set
forth in Section 4.1(d)) shall be binding upon the Administrative Agent or
the Lenders unless such authorization is in writing signed by the
Administrative Agent with the consent or at the direction of the Required
Secured Parties.

 

8.7.          No Waiver;
Amendments; Cumulative Remedies. No delay or omission of the Administrative
Agent or any Lender to exercise any right or remedy granted under this Security
Agreement shall impair such right or remedy or be construed to be a waiver of
any Default or an acquiescence therein, and any single or partial exercise of
any such right or remedy shall not preclude any other or further exercise
thereof or the exercise of any other right or remedy. No waiver, amendment or
other variation of the terms, conditions or provisions of this Security
Agreement whatsoever shall be valid unless in writing signed by the
Administrative Agent with the concurrence or at the direction of the Lenders
required under Section 9.02 of the Credit Agreement and then only to the
extent in such writing specifically set forth. 
All rights and remedies contained in this Security Agreement or by law
afforded shall be cumulative and all shall be available to the Administrative
Agent and the Lenders until the Secured Obligations have been paid in full.

 

8.8.          Limitation by
Law; Severability of Provisions. All rights, remedies and powers provided
in this Security Agreement may be exercised only to the extent that the
exercise thereof does not violate any applicable provision of law, and all the
provisions of this Security Agreement are intended to be subject to all
applicable mandatory provisions of law that may be controlling and to be
limited to the extent necessary so that they shall not render this Security
Agreement invalid, unenforceable or not entitled to be recorded or registered,
in whole or in part.  Any provision in
any this Security Agreement that is held to be inoperative, unenforceable, or
invalid in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable,
or invalid without affecting the remaining provisions in that jurisdiction or
the operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of this Security Agreement are
declared to be severable.

 

8.9.          Reinstatement.  This Security Agreement shall remain in full
force and effect and continue to be effective should a Grantor become a debtor
in a case under Chapter 7 of the Bankruptcy Code or should a Chapter 11 or
Chapter 7 trustee be appointed for such Grantor, and shall continue to be
effective or be reinstated, as the case may be, if at any time payment and
performance of the Secured Obligations, or any part thereof, is, pursuant to
applicable law, rescinded or reduced in amount, or must otherwise be restored
or returned 

 

22

 

by
any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent
conveyance,” or otherwise, all as though such payment or performance had not
been made.  In the event that any payment,
or any part thereof, is rescinded, reduced, restored or returned, the Secured
Obligations shall be reinstated and deemed reduced only by such amount paid and
not so rescinded, reduced, restored or returned.

 

8.10.        Benefit of
Agreement.  The terms and provisions
of this Security Agreement shall be binding upon and inure to the benefit of
the Grantors, the Administrative Agent and the Lenders and their respective
successors and assigns (including all persons who become bound as a debtor to
this Security Agreement), except that no Grantor shall have the right to assign
its rights or delegate its obligations under this Security Agreement or any
interest herein, without the prior written consent of the Administrative
Agent.  No sales of participations, assignments,
transfers, or other dispositions of any agreement governing the Secured
Obligations or any portion thereof or interest therein shall in any manner
impair the Lien granted to the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, hereunder.

 

8.11.        Survival of
Representations.  All representations
and warranties of the Grantors contained in this Security Agreement shall
survive the execution and delivery of this Security Agreement.

 

8.12.        Taxes and Expenses.  Any taxes (including income taxes) payable or
ruled payable by Federal or State authority in respect of this Security
Agreement shall be paid by the Grantors, together with interest and penalties,
if any.  The Grantors shall reimburse the
Administrative Agent for any and all fees, costs and expenses as contemplated
by Section 9.5 of the Credit Agreement.

 

8.13.        Headings.  The title of and section headings in this
Security Agreement are for convenience of reference only, and shall not govern
the interpretation of any of the terms and provisions of this Security
Agreement.

 

8.14.        Termination.  This Security Agreement shall continue in
effect (notwithstanding the fact that from time to time there may be no Secured
Obligations outstanding) until (i) the Credit Agreement has terminated
pursuant to its express terms and (ii) all of the Secured Obligations have
been indefeasibly paid and performed in full (or with respect to any
outstanding Letters of Credit, a cash deposit or back to back Letter of Credit
has been delivered to the Administrative Agent as required by the Credit
Agreement) and no commitments of the Administrative Agent or the Lenders which
would give rise to any Secured Obligations are outstanding.

 

8.15.        Entire Agreement.  This Security Agreement represents the entire
agreement between the Grantors and the Administrative Agent with regard to the
Collateral and supersedes all prior agreements and understandings between the
Grantors and the Administrative Agent relating to the Collateral.  In the event of any conflicts between the
express provisions of this Security Agreement and the Credit Agreement, the
provisions of the Credit Agreement shall control to the extent of any such
inconsistency.

 

8.16.        CHOICE OF LAW.  THIS SECURITY AGREEMENT SHALL, UNLESS
OTHERWISE SPECIFIED THEREIN, IN ALL RESPECTS BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE
AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE AND THE BANKRUPTCY CODE.

 

8.17.        CONSENT TO JURISDICTION.  EACH GRANTOR HEREBY IRREVOCABLY SUBMITS TO
THE NON-EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT
SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT AND EACH GRANTOR
HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY
WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY
SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH 

 

23

 

A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.  NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE
ADMINISTRATIVE AGENT OR ANY LENDER TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN
THE COURTS OF ANY OTHER JURISDICTION. 
ANY JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST THE ADMINISTRATIVE AGENT
OR ANY LENDER OR ANY AFFILIATE OF THE AGENT OR ANY LENDER INVOLVING, DIRECTLY
OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED
WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT ONLY
IN A COURT IN NEW YORK, NEW YORK.

 

8.18.        WAIVER OF JURY TRIAL. EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OF
THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY.

 

8.19.        Indemnity.  Each Grantor hereby agrees to indemnify the
Administrative Agent and the Lenders, and their respective successors, assigns,
agents and employees on the terms and subject to the conditions of Section 9.6
of the Credit Agreement.

 

8.20.        Counterparts.  This Security Agreement may be executed in
any number of counterparts, all of which taken together shall constitute one
agreement, and any of the parties hereto may execute this Security Agreement by
signing any such counterpart.  Any
facsimile copy of a signature hereto shall have the same effect as the original
thereof.

 

ARTICLE IX

NOTICES

 

9.1.          Sending Notices.  Any notice required or permitted to be given
under this Security Agreement shall be sent by United States mail, telecopier,
personal delivery or nationally established overnight courier service, and
shall be deemed received (a) when received, if sent by hand or overnight
courier service, or mailed by certified or registered mail notices or (b) when
sent, if sent by telecopier (except that, if not given during normal business
hours for the recipient, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient), in each case at the
addresses set forth in Section 9.1 of the Credit Agreement.

 

9.2.          Change in Address for Notices.  Each of the Grantors, the Administrative
Agent and the Lenders may change the address for service of notice upon it by a
notice in writing to the other parties.

 

ARTICLE X

THE ADMINISTRATIVE AGENT

 

JPMorgan
Chase Bank, N.A. has been appointed Administrative Agent for the Lenders
hereunder pursuant to Article VIII of the Credit Agreement.  It is expressly understood and agreed by the
parties to this Security Agreement that any authority conferred upon the
Administrative Agent hereunder is subject to the terms of the delegation of
authority made by the Lenders to the Administrative Agent pursuant to the
Credit Agreement, and that the Administrative Agent has agreed to act (and any
successor Administrative Agent shall act) as such hereunder only on the express
conditions contained in such Article VIII. 
Any successor Administrative Agent appointed pursuant to Article VIII
of the Credit Agreement shall be entitled to all the rights, interests and
benefits of the Administrative Agent hereunder.

 

[Signature Page Follows]

 

24

 

IN
WITNESS WHEREOF, the Grantors and the Administrative Agent have executed this
Security Agreement as of the date first above written.

 

 

	
   

  	
  GRANTORS:

  
	
   

  	
   

  
	
   

  	
  SMURFIT-STONE CONTAINER ENTERPRISES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SMURFIT-STONE CONTAINER CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CALPINE CORRUGATED LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CAMEO CONTAINER CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Signature Page to Security and
Pledge Agreement

 

 

	
   

  	
  LOT 24D REDEVELOPMENT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ATLANTA & SAINT ANDREWS BAY RAILWAY COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  STONE INTERNATIONAL SERVICES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Signature Page to Security and
Pledge Agreement

 

 

	
   

  	
  STONE GLOBAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STONE CONNECTICUT PAPERBOARD PROPERTIES,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SMURFIT-STONE PUERTO RICO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SMURFIT NEWSPRINT CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SLP FINANCE I, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Signature Page to Security and
Pledge Agreement

 

 

	
   

  	
  SLP FINANCE II, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SMBI INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Signature Page to Security and
Pledge Agreement

 

 

	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  
	
   

  	
    as
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Signature Page to Security and
Pledge Agreement

 

 

EXHIBIT A

 

(See Sections 3.2, 3.3, 3.4,
3.9 and 9.1 of Security Agreement)

 

INFORMATION AND COLLATERAL LOCATIONS OF

[provide for each Grantor]

 

I.                                         Name of Grantor:

 

II.                                     State of Incorporation or
Organization:

 

III.                                 Type of Entity:

 

IV.                                 Organizational Number
assigned by State of Incorporation or Organization:

 

V.                                     Federal Identification
Number:

 

VI.                                 Place of Business (if it has only one) or Chief Executive Office (if more than one
place of business) and Mailing Address:

 

 

 

Attention:

 

VII.                             Locations of Collateral:

 

(a)                                  Properties Owned by the Grantor:

 

 

(b)                                 Properties Leased by the Grantor (Include Landlord’s Name):

 

 

(c)                                  Public Warehouses or other Locations pursuant
to Bailment or Consignment Arrangements (include name of Warehouse Operator or other Bailee or Consignee):

 

30

 

EXHIBIT B

(See Section 3.5 of
Security Agreement)

 

DEPOSIT ACCOUNTS

 

	
  Name of Grantor

  	
   

  	
  Name of Institution

  	
   

  	
  Account Number

  	
   

  	
  Check here if

  Deposit Account is

  a Collateral Deposit

  Account

  	
   

  	
  Description of

  Deposit Account

  if not a Collateral

  Deposit Account

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

LOCK BOXES

 

	
  Name of Grantor

  	
   

  	
  Name of Institution

  	
   

  	
  Lock Box Number

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

31

 

EXHIBIT C

 

(See Section 3.7 of
Security Agreement)

 

LETTER OF CREDIT RIGHTS

 

CHATTEL PAPER

 

32

 

 

EXHIBIT D

 

(See Section 3.11 of
Security Agreement)

 

FIXTURES

 

Street address of property on which Fixtures are located (by Grantor):

 

33

 

EXHIBIT E

 

(See Section 3.13 of
Security Agreement and Definition of “Pledged Collateral”)

 

LIST OF PLEDGED COLLATERAL,
SECURITIES AND OTHER INVESTMENT PROPERTY

 

STOCKS

 

	
  Name of

  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Certificate

  Number(s)

  	
   

  	
  Number of

  Shares

  	
   

  	
  Class of Stock

  	
   

  	
  Percentage of

  Outstanding

  Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

BONDS

 

	
  Name of

  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Number

  	
   

  	
  Face Amount

  	
   

  	
  Coupon Rate

  	
   

  	
  Maturity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

34

 

GOVERNMENT SECURITIES

 

	
  Name of

  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Number

  	
   

  	
  Type

  	
   

  	
  Face Amount

  	
   

  	
  Coupon Rate

  	
   

  	
  Maturity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

OTHER SECURITIES OR OTHER
INVESTMENT PROPERTY

 

(CERTIFICATED AND
UNCERTIFICATED)

 

	
  Name of Grantor

  	
   

  	
  Issuer

  	
   

  	
  Description of Collateral

  	
   

  	
  Percentage Ownership

  Interest

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Add
description of custody accounts or arrangements with securities intermediary,
if applicable]

 

35

 

EXHIBIT F

 

(See Section 4.4 and
4.8 of Security Agreement)

 

AMENDMENT

 

This Amendment, dated
                                ,
       is delivered pursuant to Section 4.4
of the Security Agreement referred to below. 
All defined terms herein shall have the meanings ascribed thereto or
incorporated by reference in the Security Agreement.  The undersigned hereby certifies that the
representations and warranties in Article III of the Security Agreement
are and continue to be true and correct. 
The undersigned further agrees that this Amendment may be attached to
that certain Security and Pledge Agreement, dated
                        
    ,         ,
between the undersigned, as the Grantors, and JPMorgan Chase Bank, N.A., as the
Administrative Agent, (the “Security Agreement”) and that the Collateral
listed on Schedule I to this Amendment shall be and become a part of the
Collateral referred to in said Security Agreement and shall secure all Secured
Obligations referred to in said Security Agreement.

 

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  

 

36

 

SCHEDULE I TO AMENDMENT

 

STOCKS

 

	
  Name of

  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Certificate

  Number(s)

  	
   

  	
  Number of

  Shares

  	
   

  	
  Class of Stock

  	
   

  	
  Percentage of

  Outstanding

  Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

BONDS

 

	
  Name of

  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Number

  	
   

  	
  Face Amount

  	
   

  	
  Coupon Rate

  	
   

  	
  Maturity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

GOVERNMENT SECURITIES

 

	
  Name of

  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Number

  	
   

  	
  Type

  	
   

  	
  Face Amount

  	
   

  	
  Coupon Rate

  	
   

  	
  Maturity

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

37

 

OTHER SECURITIES OR OTHER
INVESTMENT PROPERTY

 

(CERTIFICATED AND
UNCERTIFICATED)

 

	
  Name of Grantor

  	
   

  	
  Issuer

  	
   

  	
  Description of Collateral

  	
   

  	
  Percentage Ownership

  Interest

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Add description of custody accounts or arrangements with securities
intermediary, if applicable]

 

COMMERCIAL TORT CLAIMS

 

	
  Name of Grantor

  	
   

  	
  Description of Claim

  	
   

  	
  Parties

  	
   

  	
  Case Number; Name of

  Court where Case was

  Filed

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

38

 

Exhibit B-2

 

CANADIAN
SECURITY AGREEMENT

 

THIS CANADIAN SECURITY
AGREEMENT
is made as of January           ,
2009 by each of the Debtors (as defined in Section 1 below) in favour of
JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Collateral Agent (as defined in Section 1
below).

 

RECITALS:

 

A.                                  Smurfit-Stone Container Corporation, a debtor
and debtor-in-possession under Chapter 11 of the Bankruptcy Code, as the Parent
and a U.S. Guarantor, Smurfit-Stone Container Enterprises, Inc., a debtor
and debtor-in-possession under Chapter 11 of the Bankruptcy Code, as U.S.
Borrower, Smurfit-Stone Container Canada Inc., a company operating pursuant to
a proceeding under the CCAA and a debtor and debtor-in-possession under Chapter
11 of the Bankruptcy Code, the other Loan Parties party thereto, the Lenders
from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative
Agent and Collateral Agent, and JPMorgan Chase Bank, N.A., Toronto Branch, as
Canadian Administrative Agent and Canadian Collateral Agent, are parties to a credit
agreement dated as of the date hereof (as amended, supplemented, restated or
replaced from time to time, the “Credit Agreement”).

 

B.                                    Each of the Debtors are debtor entities
pursuant to the CCAA Cases and each of the Debtors has absolutely and
unconditionally guaranteed, in favour of the Canadian Administrative Agent (for its own benefit and for
the ratable
benefit of the Secured Parties), the prompt payment when due of the Obligations
of such Debtor.

 

C.                                    To secure the payment and performance of the
Obligations, each Debtor has agreed to grant to the Canadian Collateral Agent
(for its own benefit and for the ratable benefit of the other Secured Parties)
the Security Interests in respect of its Collateral in accordance with the terms
of this Agreement.

 

D.                                   It is in the best interests of each Debtor to
execute this Agreement.

 

For good and valuable
consideration, the receipt and adequacy of which are acknowledged by each
Debtor, each Debtor severally (and not jointly or jointly and severally) agrees
with and in favour of the Canadian Collateral Agent (for its own benefit and
for the ratable benefit of the other Secured Parties) as follows:

 

1.                                      Definitions.  In this Agreement capitalized terms used but
not otherwise defined in this Agreement shall have the meanings given to them
in the Credit Agreement, and the following terms have the following meanings:

 

“Accessions”,
“Account”, “Chattel
Paper”, “Certificated Security”,
“Consumer Goods”, “Document of Title”, “Equipment”, “Futures
Account”, “Futures Contract”,
“Futures Intermediary”, “Goods”, “Instrument”,
“Intangible”, “Inventory”,
“Investment Property”,  “Money”, “Proceeds”, “Securities
Account”, “Securities Intermediary”
“Security”, “Security
Certificate”, “Security Entitlement”,
and “Uncertificated Security” have the
meanings given to them in the PPSA.

 

“Agreement”
means this Canadian Security Agreement, including the exhibits and recitals
hereto, the Supplements and the Schedules, as it or they may be amended,
supplemented, restated or replaced from time to time, and the expressions “hereof”,
“herein”, “hereto”, “hereunder”, “hereby” and similar expressions refer to this
Agreement and not to any particular section or other portion of this Agreement.

 

“Books and Records”
means, in respect of any Debtor, all books, records, files, papers, disks,
documents and other repositories of data recording in any form or medium,
evidencing or relating to the Personal

 

 

Property of such Debtor which are at any time
owned by such Debtor or to which such Debtor (or any Person on such Debtor’s
behalf) has access.

 

“Canadian Collateral Agent”
means JPMorgan Chase Bank, N.A., Toronto Branch, in its capacity as Canadian
collateral agent for the Secured Parties under the Credit Agreement, or any
successor Canadian collateral agent appointed pursuant to the Credit Agreement.

 

“Collateral”
means, in respect of any Debtor, all of the present and future:

 

(a)                                 undertaking;

 

(b)                                Personal
Property (including any Personal Property that may be described in any schedule
to this Agreement or any schedules, documents or listings that such Debtor may
from time to time provide to the Canadian Collateral Agent in connection with
this Agreement); and

 

(c)                                 real
property (including any real property that may be described in any schedule to
this Agreement or any schedules, documents or listings that such Debtor may
from time to time provide to the Canadian Collateral Agent in connection with
this Agreement and including all fixtures, improvements, buildings and other
structures placed, installed or erected from time to time on any such real
property),

 

of such Debtor (including Books and Records,
Contracts, Intellectual Property Rights and Permits, including all such
property in which such Debtor now or in the future has any right, title or
interest whatsoever, whether owned, leased, licensed, possessed or otherwise
held by such Debtor, and all Proceeds thereof, wherever located.

 

“Collateral Reports” means any certificate (including
any Borrowing Base Certificate), report or other document delivered by any
Debtor with respect to the Collateral pursuant to any Loan Document.

 

“Contracts”
means, in respect of any Debtor, all contracts and agreements to which such
Debtor is at any time a party or pursuant to which such Debtor has at any time
acquired rights, and includes (i) all rights of such Debtor to receive
money due and to become due to it in connection with a contract or agreement, (ii) all
rights of such Debtor to damages arising out of, or for breach or default in
respect of, a contract, licence or agreement, and (iii) all rights of such
Debtor to perform and exercise all remedies in connection with a contract or
agreement.

 

“Control”
means, in respect of a particular Person, the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ability to exercise voting power,
by contract or otherwise.  “Controlled” has meanings correlative thereto.

 

“Credit Agreement”
has the meaning set out in the recitals hereto.

 

“Debtors”
means each of the Persons identified under the caption “DEBTORS” on the
signature page(s) of this Agreement and any other Person which hereafter
delivers a Supplement, and “Debtor”
means any one of them.

 

“Intellectual Property
Rights” means, in respect of any Debtor, all industrial and
intellectual property rights of such Debtor or in which such Debtor has any
right, title or interest, including copyrights, patents, inventions (whether or
not patented), trade-marks, get-up and trade dress, industrial designs,
integrated circuit topographies, plant breeders’ rights, know how and trade
secrets, registrations and applications for

 

2

 

registration for any of such industrial and
intellectual property rights, and all Contracts related to any such industrial
and intellectual property rights.

 

“Issuer”  has the meaning given to that term in the STA.

 

“Laws” means
all federal, provincial, municipal, foreign and international statutes, acts,
codes, ordinances, decrees, treaties, rules, regulations, municipal by-laws,
judicial or arbitral or administrative or ministerial or departmental or
regulatory judgements, orders, decisions, rulings or awards or any provisions
of the foregoing, including general principles of common and civil law and
equity, and all policies, practices and guidelines of any Governmental
Authority binding on or affecting the Person referred to in the context in
which such word is used (including, in the case of tax matters, any accepted
practice or application or official interpretation of any relevant taxation
authority); and “Law” means any one or more of the
foregoing.

 

“Obligations” means, in respect of (i) the
Canadian Borrower, the Secured Obligations of the Canadian Borrower, and (ii) each
Debtor other than the Canadian Borrower, the Canadian Secured Obligations of
such Debtor.

 

“Permits”
means, in respect of any Debtor, all permits, licences, waivers, exemptions,
consents, certificates, authorizations, approvals, franchises, rights-of-way,
easements and entitlements that such Debtor has, requires or is required to
have, to own, possess or operate any of its property or to operate and carry on
any part of its business.

 

“Personal Property”
means personal property and includes Accounts, Chattel Paper, Documents of
Title, Equipment, Goods, Instruments, Intangibles, Inventory, Investment
Property and Money.

 

“Pledged Certificated
Securities”  means, in
respect of any Debtor, any and all Collateral of such Debtor that is a
Certificated Security.

 

“Pledged Futures Contracts”  means, in respect of any Debtor, any and all Collateral of
such Debtor that is a Futures Contract.

 

“Pledged Futures Accounts”  means, in respect of any Debtor, any and all Collateral of
such Debtor that is a Futures Account.

 

“Pledged Futures
Intermediary”  means, at any
time, any Person which is at such time a Futures Intermediary at which a
Pledged Futures Account is maintained.

 

“Pledged Futures
Intermediary’s Jurisdiction” means, with respect to any Pledged
Futures Intermediary, its jurisdiction as determined under section 7.1(4) of
the PPSA.

 

“Pledged Issuer”
means, in respect of any Debtor at any time, any Person which is at such time
an Issuer with respect to any Pledged Securities or Pledged Security
Entitlements.

 

“Pledged Issuer’s
Jurisdiction” means, with respect to any Pledged Issuer, its
jurisdiction as determined under section 44 of the STA.

 

“Pledged Security
Certificates” means, in respect of any Debtor, any and all
Security Certificates owned by such Debtor representing the Pledged
Certificated Securities.

 

3

 

“Pledged Securities”  means, in respect of any Debtor, any and all Collateral of
such Debtor that is a Security.

 

“Pledged Securities
Accounts”  means, in
respect of any Debtor, any and all Collateral of such Debtor that is a
Securities Account.

 

“Pledged Securities
Intermediary”  means, at any
time, any Person which is at such time a Securities Intermediary at which a
Pledged Securities Account is maintained.

 

“Pledged Securities
Intermediary’s Jurisdiction” means, with respect to any
Securities Intermediary, its jurisdiction as determined under section 45(2) of
the STA.

 

“Pledged Security
Entitlements”  means, in
respect of any Debtor, any and all Collateral of such Debtor that is a Security
Entitlement.

 

“Pledged Uncertificated
Securities”  means, in
respect of any Debtor, any and all Collateral of such Debtor that is an
Uncertificated Security.

 

“PPSA” means
the Personal Property Security Act
(Ontario), as such legislation may be amended, renamed or replaced from time to
time, and includes all regulations from time to time made under such
legislation.

 

“Receiver”
means a receiver, a manager or a receiver and manager.

 

“Release Date”
means the date on which all of the Obligations of each Debtor have been
indefeasibly paid and discharged in full and no Secured Party has any further
obligations under the Loan Documents pursuant to which further Obligations of
any Loan Party might arise.

 

“Schedules”
means the schedules to this Agreement.

 

 “Security Interests” means, with
respect to any Debtor, the Liens created by such Debtor in favour of the
Canadian Collateral Agent (for its own benefit and for the ratable benefit of
the other Secured Parties) under this Agreement.

 

“Serial Number Goods” means a motor vehicle, a trailer,
a mobile home, a designated manufactured home, an aircraft, a boat or an
outboard motor for a boat.

 

“STA” means
the Securities Transfer Act (Ontario), as
such legislation may be amended, renamed or replaced from time to time, and
includes all regulations from time to time made under such legislation.

 

“Supplement”
has the meaning given to it in Section 34.

 

“ULC” means
an Issuer that is an unlimited company or unlimited liability company.

 

“ULC Laws”
means the Companies Act (Nova Scotia), the Business Corporations Act (Alberta), the Business Corporations Act (British Columbia) and any other
present or future Laws governing ULCs.

 

“ULC Shares”
means shares or other equity interests in the capital stock of a ULC.

 

2.             Grant of
Security Interests.  As
general and continuing collateral security for the due payment and performance
of its Obligations (including the payment of any such Obligations that would
become due but for any automatic stay under the provisions of the Bankruptcy and Insolvency Act (Canada) and

 

4

 

the
United States Bankruptcy Code or any analogous provisions of any other
applicable Law in Canada, the United States, or any other jurisdiction), each
Debtor pledges, mortgages, charges and assigns (by way of security) to the
Canadian Collateral Agent (for its own benefit and for the ratable benefit of
the other Secured Parties), and grants to the Canadian Collateral Agent (for
its own benefit and for the ratable benefit of the other Secured Parties) a
security interest in, the Collateral of such Debtor.

 

3.                                       Limitations
on Grant of Security Interests.  If the
grant of the Security Interests in respect of any Contract, Intellectual
Property Right or Permit under Section 2 would result in the termination
or breach of such Contract, Intellectual Property Right or Permit, or is
otherwise prohibited or ineffective (whether by the terms thereof or under
applicable Law), then such Contract, Intellectual Property Right or Permit will
not be subject to the Security Interests but will be held in trust by the
applicable Debtor for the benefit of the Canadian Collateral Agent (for its own
benefit and for the ratable benefit of the other Secured Parties) and, on the
exercise by the Canadian Collateral Agent of any of its rights or remedies
under this Agreement following an Event of Default will be assigned by such
Debtor as directed by the Canadian Collateral Agent; provided that: (a) the
Security Interests of such Debtor shall attach to such Contract, Intellectual
Property Right or Permit, or applicable portion thereof, immediately at such
time as the condition causing such termination or breach is remedied, and (b) if a term in a Contract that
prohibits or restricts the grant of the Security Interests in the whole of an
Account or Chattel Paper forming part of the Collateral is unenforceable
against the Canadian Collateral Agent under applicable Law, then the exclusion
from the Security Interests set out above shall not apply to such Account or
Chattel Paper.  In addition,
the Security Interests do not attach to Consumer Goods or extend to the last
day of the term of any lease or agreement for lease of real property.  Such last day will be held by the applicable
Debtor in trust for the Canadian Collateral Agent (for its own benefit and for
the ratable benefit of the other Secured Parties) and, on the exercise by the
Canadian Collateral Agent of any of its rights or remedies under this Agreement
following an Event of Default, will be assigned by such Debtor as directed by
the Canadian Collateral Agent.  For
greater certainty, no Intellectual Property Right in any trade-mark, get-up or
trade dress is presently assigned to the Canadian Collateral Agent by sole
virtue of the grant of the Security Interests contained in Section 2.

 

4.                                       Attachment;
No Obligation to Advance.  Each
Debtor confirms that value has been given by the Secured Parties to such
Debtor, that such Debtor has rights in its Collateral existing at the date of
this Agreement or the date of any Supplement, as applicable, and that such
Debtor and the Canadian Collateral Agent have not agreed to postpone the time
for attachment of the Security Interests to any of the Collateral of such Debtor.  The Security Interests in respect of the
Collateral of each Debtor created by this Agreement will have effect and be
deemed to be effective whether or not the Obligations of such Debtor or any
part thereof are owing or in existence before or after or upon the date of this
Agreement or the date of any Supplement, as applicable.  Neither the execution and delivery of this
Agreement or any Supplement nor the provision of any financial accommodation by
any Secured Party shall oblige any Secured Party to make any financial
accommodation or further financial accommodation available to any Debtor or any
other Person.

 

5.                                       Representations
and Warranties.  Each Debtor
represents and warrants to the Canadian Collateral Agent (for its own benefit
and for the ratable benefit of the other Secured Parties) that, as of the date
of this Agreement or the date of any Supplement or such other date as specified
below, as applicable:

 

(a)                                  Debtor
Information.  All of the
information set out in the Schedules and Supplements, as applicable, with
respect to such Debtor is accurate and complete.

 

(b)                                 Title to
Investment Property.  Such Debtor is the
record and beneficial owner of all Collateral of such Debtor that is Investment
Property.

 

5

 

(c)                                  Consents —
Pledged Securities.  Except in the
case of ULC Shares, for the purposes of complying with any transfer
restrictions contained in the Organizational Documents of any Pledged Issuer,
such Debtor hereby irrevocably consents to any transfer of such Debtor’s
Pledged Securities of such Pledged Issuer.

 

(d)                                 No
Consumer Goods.  Such Debtor
does not own any Consumer Goods which are material in value or which are
material to the business, operations, property, condition or prospects (financial
or otherwise) of such Debtor.

 

(e)                                  Intellectual Property Rights.  All
registrations and applications for registration pertaining to any Intellectual
Property Rights of such Debtor, all other material Intellectual Property Rights
of such Debtor, and the nature of such Debtor’s right, title or interest
therein, are described in the Schedules and Supplements as applicable, with
respect to such Debtor.

 

(f)                                    Accounts and Chattel Paper.  The
names of the obligors, amounts owing, due dates and other material information
with respect to its Accounts and Chattel Paper are and will be correctly stated
in all records of such Debtor relating thereto and in all invoices and
Collateral Reports with respect thereto furnished in accordance with the Credit
Agreement by such Debtor from time to time.  As of the time when each Account or
each item of Chattel Paper arises, such Debtor shall be deemed to have
represented and warranted that such Account and Chattel Paper, as the case may
be, and all records relating thereto, are genuine and in all material respects
what they purport to be.   As of the Filing Date, except as specifically
disclosed on the most recent Collateral Report, (i) all Accounts are
Eligible Accounts, (ii) all Accounts represent bona fide sales of
Inventory or rendering of services to Account debtors in the ordinary course of
such Debtor’s business and are not evidenced by a judgment, Instrument or
Chattel Paper, (iii) there are no set-offs, claims or disputes existing or
asserted with respect thereto and such Debtor has not  made
any agreement with any Account debtor for any extension of time for the payment
thereof, any compromise or settlement for less than the full amount thereof,
any release of any Account debtor from liability therefor, or any deduction therefrom
except a discount or allowance allowed by such Debtor in the ordinary course of
business for prompt payment and disclosed in accordance with the Credit
Agreement, (iv) to such Debtor’s knowledge, there are no facts, events or
occurrences which in any way impair the validity or enforceability thereof or
could reasonably be expected to reduce the amount payable thereunder as shown
on such Debtor’s books and records and any invoices, statements and Collateral
Reports with respect thereto, (v) such Debtor has not received any notice
of proceedings or actions which are threatened or pending against any Account
debtor which might result in any adverse change in such Account debtor’s
financial condition, and (vi) such Debtor has no knowledge that any Account
debtor is unable to pay its debts generally as they become due.  In addition, as of the Filing Date, the
amounts shown on all invoices, statements and Collateral Reports with respect
thereto are actually and absolutely owing to such Debtor as indicated thereon
and are not in any way contingent and, to such Debtor’s knowledge, all Account
debtors have the capacity to contract.

 

(g)                                 Inventory.  As of the Filing Date, with
respect to any Inventory scheduled or listed on the most recent Collateral
Report, (i) such Inventory (other than Inventory in transit) is located at
one of such Debtor’s locations set forth in the Schedules hereto, (ii) such
Debtor has good, indefeasible and merchantable title to such Inventory and such
Inventory is not subject to any Lien or security interest or document
whatsoever except for the Lien granted to the Canadian Collateral Agent (for
its own benefit and for the

 

6

 

ratable benefit of the other Secured Parties), and except for Permitted
Liens, (iii) except as disclosed in the most recent Collateral Report,
such Inventory is Eligible Inventory of good and merchantable quality, free
from any defects, (iv) such Inventory is not subject to any licensing,
patent, royalty, trademark, trade name or copyright agreement(s) with any
third parties which would require any consent of any third party upon sale or
disposition of that Inventory or payment of any monies to any third party upon
such sale or disposition, and (v) the completion of manufacture, sale or
other disposition of such Inventory by the Canadian Collateral Agent following
and Event of Default shall not require the consent of any Person and shall not
consent of any Person and shall not constitute a breach of default under any contract
or agreement to which such Debtor is a party or which such property is subject.

 

(h)                                 Due Authorization.  The
Pledged Securities of such Debtor have been duly authorized and validly issued and are fully paid and,
except in the case of ULC Shares, non-assessable.

 

(i)                                     Warrants, Options, etc.  There
are no outstanding warrants, options or other rights to purchase, or other
agreements outstanding with respect to, or property that is now or hereafter
convertible into, or that requires the issuance or sale of, any Pledged
Securities of such Debtor.

 

(j)                                     No Required Disposition. 
Other than pursuant to the Security Documents (as defined in the
Pre-Petition Credit Agreement) and the rights of the Pre-Petition Agent
thereunder following an Event of Default (as defined in the Pre-Petition Credit
Agreement), there is no existing
agreement, option, right or privilege capable of becoming an agreement or
option pursuant to which such Debtor would be required to sell or otherwise dispose of any Pledged Securities of such Debtor or under which any Pledged Issuer thereof has
any obligation to issue any Securities of such Pledged Issuer to any Person.

 

6.                                       Covenants.  Each Debtor covenants and agrees with the
Canadian Collateral Agent (for its own benefit and for the ratable benefit of
the other Secured Parties) that:

 

(a)                                  Further
Documentation.  Such Debtor will from
time to time, at the expense of such Debtor, promptly and duly authorize, execute and
deliver such further instruments and documents, and take such further action,
as the Canadian Collateral Agent may reasonably request for the purpose of
obtaining or preserving the full benefits of, and the rights and powers granted
by, this Agreement (including the filing of any financing statements or
financing change statements under any applicable legislation with respect to
the Security Interests).  Such Debtor acknowledges
that this Agreement has been prepared based on the existing Laws in the
Province of Ontario and that a change in such Laws, or the Laws of other jurisdictions,
may require the execution and delivery of different forms of security
documentation.  Accordingly, such Debtor agrees
that the Canadian Collateral Agent will have the right to require that this
Agreement be amended, supplemented, restated or replaced, and that such Debtor will
promptly on request by the Canadian Collateral Agent
authorize, execute and deliver any such amendment, supplement, restatement or
replacement (i) to reflect any changes in such Laws, whether arising as a
result of statutory amendments, court decisions or otherwise, (ii) to
facilitate the creation and registration of appropriate security in all
appropriate jurisdictions, or (iii) if such Debtor merges or
amalgamates with any other Person or enters into any corporate reorganization,
in each case in order to confer on the Canadian Collateral
Agent Liens similar to, and having the same effect as, the Security
Interests.

 

7

 

(b)                                 Maintenance
of Records.  At the
written request of the Canadian Collateral Agent, acting reasonably,
such Debtor will mark any Collateral of such Debtor specified
by the Canadian Collateral Agent to evidence the existence of the Security
Interests.

 

(c)                                  Further
Identification of Collateral.  Such
Debtor will promptly furnish to the Canadian Collateral Agent such statements
and schedules further identifying and describing the Collateral of such Debtor,
and such other reports in connection with the Collateral of such Debtor, as the
Canadian Collateral Agent may from time to time reasonably request, including
an updated list of any motor vehicles or other “serial number” goods owned by
such Debtor and classified as Equipment, including vehicle identification
numbers.

 

(d)                                 Amalgamation, Merger or Consolidation.  Such
Debtor will not permit
any Pledged Issuer of such Debtor to amalgamate, merge or consolidate unless all of the outstanding
capital stock of the surviving or resulting corporation is, upon such
amalgamation, merger or consolidation, pledged under this Agreement.

 

(e)                                  Agreements
re Intellectual Property Rights. 
Promptly upon request from time to time by the Canadian Collateral
Agent, such Debtor will authorize, execute and deliver any and all agreements,
instruments, documents and papers that the Canadian Collateral Agent may
reasonably request to evidence the Security Interests in any Intellectual
Property Rights of such Debtor and, where applicable, the goodwill of the
business of such Debtor connected with the use of, and symbolized by, any such
Intellectual Property Rights.

 

(f)                                    Instruments;
Documents of Title; Chattel Paper. 
Promptly upon request from time to time by the Canadian Collateral
Agent, such Debtor will deliver to the Canadian Collateral Agent,
endorsed and/or accompanied by such instruments of assignment and transfer in
such form and substance as the Canadian Collateral Agent may
reasonably request, any and all Instruments, Documents of Title and Chattel
Paper of such Debtor included in or relating to the Collateral of
such Debtor as the Canadian Collateral Agent may
specify in its request.

 

(g)                                 Pledged
Certificated Securities. 
Promptly upon request from time to time by the Canadian Collateral
Agent, such Debtor will deliver to the Canadian Collateral
Agent any and all Pledged Security Certificates of such Debtor and other
materials as may be required from time to time to provide the Canadian
Collateral Agent with control over all Pledged Certificated Securities
of such Debtor in the manner provided under section 23 of the
STA.  Except in the case of ULC Shares
(which shall not be so registered other than in the course of realization
thereon hereunder), at the request of the Canadian Collateral
Agent, such Debtor will cause all Pledged Security Certificates
of such Debtor to be registered in the name of the Canadian
Collateral Agent or its nominee.

 

(h)                                 Pledged
Uncertificated Securities. 
Promptly upon request from time to time by the Canadian Collateral
Agent, such Debtor will deliver to the Canadian Collateral
Agent any and all such documents, agreements and other materials as may be
required from time to time to provide the Canadian Collateral
Agent with control over all Pledged Uncertificated Securities of such Debtor in the
manner provided under section 24 of the STA.  Each Debtor confirms and agrees that the
Pledged Issuer shall comply with any instructions that are originated by the
Canadian Collateral Agent without any further consent of such Debtor.  Each Debtor that is a Pledged Issuer hereby
acknowledges and agrees to comply with any instructions that are originated by
the Canadian Collateral Agent without any further consent of the Debtor in
accordance with this Section.

 

8

 

(i)                                   Pledged
Security Entitlements. 
Promptly upon request from time to time by the Canadian Collateral
Agent, such Debtor will deliver to the Canadian Collateral
Agent any and all such documents, agreements and other materials as may be
required from time to time to provide the Canadian Collateral
Agent with control over all Pledged Security Entitlements of such Debtor in the
manner provided under section 25 or 26 of the STA.

 

(j)                                   Pledged
Futures Contracts.  Promptly upon
request from time to time by the Canadian Collateral Agent, such Debtor will
deliver to the Canadian Collateral Agent any and all such
documents, agreements and other materials as may be required from time to time
to provide the Canadian Collateral Agent with control over
all Pledged Futures Contracts of such Debtor in the manner provided under subsection 1(2) of
the PPSA.

 

(k)                                Partnerships, Limited Liability Companies. 
Within 10 days of the date of this Agreement (or, with respect to any
Supplement, at the time of execution of such Supplement), such Debtor will ensure that the terms of any interest
in a partnership or limited liability company that is Collateral of such Debtor will expressly provide that such interest is
a “security” for the purposes of the STA.

 

(l)                                   Transfer Restrictions.  If the
constating documents of any Pledged Issuer (other than a ULC) restrict the
transfer of the Securities of such Pledged Issuer, then such Debtor will
deliver to the Canadian Collateral Agent a certified copy of
a resolution of the directors, shareholders, unitholders or partners of such
Pledged Issuer, as applicable, consenting to the transfer(s) contemplated
by this Agreement, including any prospective transfer of the Collateral of such
Debtor by the Canadian Collateral Agent upon a
realization on the Security Interests.

 

(m)                             Notices.  Such Debtor will advise the Canadian
Collateral Agent promptly, in reasonable detail, of any:

 

(i)                                   change to
a Pledged Securities Intermediary’s Jurisdiction, Pledged Issuer’s
Jurisdiction, or Pledged Future Intermediary’s Jurisdiction, or the creation or
acquisition of any Certificated Security, Uncertificated Security, Security
Entitlement, Securities Account, Futures Contract or Futures Account;

 

(ii)                                change in
the location of the jurisdiction of incorporation or amalgamation, chief
executive office, or domicile of such Debtor;

 

(iii)                             change in
the name of such Debtor;

 

(iv)                            merger,
consolidation or amalgamation of such Debtor with any other Person;

 

(v)                               additional
jurisdiction in which such Debtor has tangible Personal Property;

 

(vi)                            acquisition
of any right, title or interest in real property by such Debtor;

 

(vii)                         acquisition
of any Intellectual Property Rights which are the subject of a registration of
application with any governmental intellectual property or other governing body
or registry, or which are material to such Debtor’s business;

 

9

 

(viii)                      acquisition
of any Instrument (other than cheques in the ordinary course of business),
Document of Title or Chattel Paper other than any Instrument, Document of Title
or Chattel Paper in any amount less than $1,000,000;

 

(ix)                             creation
or acquisition of any Subsidiary of such Debtor;

 

(x)                                Lien
(other than Permitted Liens) on, or claim asserted against, any of the
Collateral of such Debtor; or

 

(xi)                             occurrence
of an event, claim or occurrence that could reasonably be expected to have a
material adverse effect on the value of the Collateral of such Debtor or on the
Security Interests.

 

Such Debtor will not effect
or permit any of the changes referred to in clauses (ii) through (vii) above
unless all filings have been made and all other actions taken that are required
in order for the Canadian Collateral Agent to continue at all times following
such change to have a valid and perfected first priority Security Interest in
respect of all of the Collateral of such Debtor.

 

(n)                                 Disposition
of Collateral.  Each Debtor
will not sell, lease or otherwise dispose of the Collateral owned by it except
for dispositions specifically permitted pursuant to Section 6.12 of the
Credit Agreement.

 

(o)                                 Serial Number Goods. 
Within 20 days from the date of this Agreement (or, with respect to any
Supplement, at the time of execution of such Supplement), such Debtor shall
provide a schedule setting out all Serial Number Goods owned by such Debtor
which comprise Collateral of such Debtor.

 

7.                                       Survival
of Representations, Warranties and Covenants.  All agreements, representations, warranties
and covenants made by each Debtor or incorporated by reference in this
Agreement (a) are material, (b) will be considered to have been
relied on by the Secured Parties, and (c) will survive the execution and
delivery of this Agreement and any Supplement or any investigation made at any
time by or on behalf of any Secured Party and any disposition or payment of the
Obligations until the Release Date.

 

8.                                       Voting Rights.  Unless an
Event of Default has occurred and is continuing, each Debtor will be
entitled to exercise all voting power from time to time exercisable in respect
of the Pledged Securities and Pledged Security Entitlements of such Debtor and give
consents, waivers and ratifications in respect thereof; provided, however, that
no vote will be cast or consent, waiver or ratification given or action taken
which would be, or would have a reasonably likelihood of being, prejudicial to
the interests of the Secured Parties or which would have the effect of reducing
the value of the Collateral of such Debtor as security for the Obligations of such
Debtor or imposing any restriction on the transferability of any of the
Collateral of such Debtor.  Unless an Event of Default has occurred and
is continuing, the Canadian Collateral Agent shall, from time to time at the request and
expense of the applicable Debtor, execute or cause to be executed, in respect of all Pledged Securities
of such Debtor (which shall not
include any ULC Shares) that are registered in the name of the Canadian
Collateral Agent or its nominee,
valid proxies appointing such Debtor as its (or its nominee’s) proxy to attend, vote and act for and on
behalf of the Canadian Collateral Agent or such nominee, as the case may be, at any
and all meetings of the applicable Pledged Issuer’s shareholders or debt
holders, all Pledged Securities that are registered in the name of the Canadian
Collateral Agent or such
nominee, as the case may be, and to execute and deliver, consent to or approve
or disapprove of or withhold consent to any resolutions in writing of
shareholders

 

10

 

or debt holders of the
applicable Pledged Issuer for and on behalf of the Canadian
Collateral Agent or such
nominee, as the case may be.  Subject to Section 14
hereof, immediately upon the occurrence and during the continuance of any Event
of Default, all such rights of the applicable Debtor to vote
and give consents, waivers and ratifications will cease and the Canadian
Collateral Agent or its nominee will be entitled to exercise all such
voting rights and to give all such consents, waivers and ratifications.

 

9.                                       Dividends;
Interest.  Unless an
Event of Default has occurred and is continuing, each Debtor will be
entitled to receive any and all cash dividends, interest, principal payments
and other forms of cash distribution on the Pledged Securities or Pledged
Security Entitlements of such Debtor which it is otherwise
entitled to receive, but any and all stock dividends or other non-cash
distributions made on or in respect of the Pledged Securities or Pledged
Security Entitlements of such Debtor, whether resulting from a subdivision,
combination or reclassification of the outstanding capital stock of any Pledged
Issuer of such Debtor or received in exchange for such Pledged
Securities, Pledged Security Entitlements or any part thereof or as a result of
any amalgamation, merger, consolidation, acquisition or other exchange of
property to which any Pledged Issuer of such Debtor may be a
party or otherwise, and any and all stock dividends and other non-cash
distributions received in exchange for any Pledged Securities or Pledged
Security Entitlements will be and become part of the Collateral of such Debtor subject
to the Security Interests and, if received by such Debtor, except
with respect to any ULC Shares will forthwith be delivered to the Canadian
Collateral Agent or its nominee (accompanied, if appropriate, by proper
instruments of assignment and/or stock powers of attorney executed by such Debtor in
accordance with the Canadian Collateral Agent’s instructions) to
be held subject to the terms of this Agreement; and if any of the Pledged
Security Certificates have been registered in the name of the Canadian
Collateral Agent or its nominee, the Canadian Collateral
Agent will execute and deliver (or cause to be executed and delivered) to
such Debtor all such dividend orders and other instruments as
such Debtor may request for the purpose of enabling such Debtor to
receive the dividends, distributions or other payments which such Debtor is
authorized to receive and retain pursuant to this Section.  Subject to Section 14 hereof, if an
Event of Default has occurred and is continuing, all rights of such Debtor pursuant
to this Section will cease and the Canadian Collateral
Agent will have the sole and exclusive right and authority to receive and
retain the cash dividends, interest, principal payments and other forms of cash
distribution which such Debtor would otherwise be authorized to retain
pursuant to this Section.  Any money and
other property paid over to or received by the Canadian Collateral
Agent pursuant to the provisions of this Section will be retained by the Canadian
Collateral Agent as additional Collateral hereunder and be applied in
accordance with the provisions of this Agreement.

 

10.                                 Rights
on Event of Default. 
Subject to the Initial Order, if an Event of Default has occurred and is
continuing, then and in every such case the Security Interests of each Debtor
shall become enforceable and the Canadian Collateral Agent, in addition to any
rights now or hereafter existing under applicable Law may, personally or by
agent, at such time or times as the Canadian Collateral Agent, in its
discretion may determine, do any one or more of the following:

 

(a)                                  Rights
under PPSA, etc.  Exercise
against such Debtor all of the rights and remedies granted to secured parties
under the PPSA and any other applicable statute, or otherwise available to the
Canadian Collateral Agent by contract, at law or in equity.

 

(b)                                 Demand
Possession.  Demand
possession of any or all of the Collateral of such Debtor, in which event such
Debtor will, at the expense of such Debtor, immediately cause the Collateral of
such Debtor designated by the Canadian Collateral Agent to be assembled and
made available and/or delivered to the Canadian Collateral Agent at any place
designated by the Canadian Collateral Agent.

 

11

 

(c)                                  Take
Possession.  Enter on any
premises where any Collateral of such Debtor is located and take possession of,
disable or remove such Collateral.

 

(d)                                 Deal with
Collateral.  Hold, store
and keep idle, or operate, lease or otherwise use or permit the use of, any or
all of the Collateral of such Debtor for such time and on such terms as the
Canadian Collateral Agent may determine, and demand, collect and retain all
earnings and other sums due or to become due from any Person in respect of any
of the Collateral of such Debtor.

 

(e)                                  Carry on
Business.  Carry on, or
concur in the carrying on of, any or all of the business or undertaking of such
Debtor and enter on, occupy and use (without charge by such Debtor) any of the
premises, buildings, plant and undertaking of, or occupied or used by, such
Debtor.

 

(f)                                    Enforce
Collateral.  Seize,
collect, receive, enforce or otherwise deal with any Collateral of such Debtor
in such manner, on such terms and conditions and at such times as the Canadian
Collateral Agent deems advisable.

 

(g)                                 Dispose of
Collateral.  Realize on
any or all of the Collateral of such Debtor and sell, lease, assign, give
options to purchase, or otherwise dispose of and deliver any or all of the
Collateral of such Debtor (or contract to do any of the above), in one or more
parcels at any public or private sale, at any exchange, broker’s board or
office of the Canadian Collateral Agent or elsewhere, with or without advertising
or other formality, except as required by applicable Law, on
such terms and conditions as the Canadian Collateral Agent may deem advisable
and at such prices as it may deem best, for cash or on credit or for future
delivery.

 

(h)                                 Court-Approved
Disposition of Collateral.  Obtain
from any court of competent jurisdiction an order for the sale or foreclosure
of any or all of the Collateral of such Debtor.

 

(i)                                     Purchase
by Canadian Collateral Agent.  At any
public sale, and to the extent permitted by Law on any private sale, bid for
and purchase any or all of the Collateral of such Debtor offered for sale and,
upon compliance with the terms of such sale, hold, retain, sell or otherwise
dispose of such Collateral without any further accountability to such Debtor or
any other Person with respect to such holding, retention, sale or other
disposition, except as required by Law. 
In any such sale to the Canadian Collateral Agent, the Canadian
Collateral Agent may, for the purpose of making payment for all or any part of
the Collateral of such Debtor so purchased, use any claim for any or all of the
Obligations of such Debtor then due and payable to it as a credit against the
purchase price.

 

(j)                                     Collect
Accounts.  Notify
(whether in its own name or in the name of the Debtor) the account debtors
under any Accounts of such Debtor of the assignment of such Accounts to the
Canadian Collateral Agent and direct such account debtors to make payment of
all amounts due or to become due to such Debtor in respect of such Accounts
directly to the Canadian Collateral Agent and, upon such notification and at
the expense of such Debtor, enforce collection of any such Accounts, and
adjust, settle or compromise the amount or payment of such Accounts, in such
manner and to such extent as the Canadian Collateral Agent deems appropriate in
the circumstances.

 

12

 

(k)                                  Transfer of Collateral.  Subject to
Section 14 hereof, transfer
any Collateral of such Debtor
that is Investment Property into the name of the Canadian Collateral
Agent or its nominee.

 

(l)                                     Voting.  Subject to Section 14 hereof, vote any
or all of the Pledged Securities of such Debtor (whether
or not transferred to the Canadian Collateral Agent or its
nominee) and Pledged Security Entitlements of such Debtor and give
or withhold all consents, waivers and ratifications in respect thereof and
otherwise act with respect thereto as though it were the outright owner
thereof.

 

(m)                               Exercise Other Rights.  Subject to
Section 14 hereof, exercise
any and all rights, privileges, entitlements and options pertaining to any
Collateral of such Debtor
that is Investment Property as if the Canadian Collateral Agent were the absolute owner of such Investment
Property.

 

(n)                                 Dealing
with Contracts and Permits.  Deal
with any and all Contracts and Permits of such Debtor to the same extent as
such Debtor might (including the enforcement, realization, sale, assignment,
transfer, and requirement for continued performance), all on such terms and
conditions and at such time or times as may seem advisable to the Canadian
Collateral Agent.

 

(o)                                 Payment of
Liabilities.  Pay any
liability secured by any Lien against any Collateral of such Debtor.  Such Debtor will immediately on demand
reimburse the Canadian Collateral Agent for all such payments and, until paid,
any such reimbursement obligation shall form part of the Obligations of such
Debtor and shall be secured by the Security Interests.

 

(p)                                 Borrow and
Grant Liens.  Borrow money
for the maintenance, preservation or protection of any Collateral of such
Debtor or for carrying on any of the business or undertaking of such Debtor and
grant Liens on any Collateral of such Debtor (in priority to the Security
Interests of such Debtor or otherwise) as security for the money so
borrowed.  Such Debtor will immediately
on demand reimburse the Canadian Collateral Agent for all such borrowings and,
until paid, any such reimbursement obligations shall form part of the
Obligations of such Debtor and shall be secured by the Security Interests of
such Debtor.

 

(q)                                 Appoint
Receiver.  Appoint by
instrument in writing one or more Receivers of such Debtor or any or all of the
Collateral of such Debtor with such rights, powers and authority (including any
or all of the rights, powers and authority of the Canadian Collateral Agent
under this Agreement) as may be provided for in the instrument of appointment
or any supplemental instrument, and remove and replace any such Receiver from
time to time.  To the extent permitted by
applicable Law, any Receiver appointed by the Canadian Collateral Agent will
(for purposes relating to responsibility for the Receiver’s acts or omissions)
be considered to be the agent of such Debtor and not of the Canadian Collateral
Agent or any of the other Secured Parties. 
Any Receiver appointed by the Canadian Collateral Agent shall be vested
with the rights and remedies which could have been exercised by the Canadian
Collateral Agent in respect of each Debtor or the Collateral of any such Debtor
and such other power and discretions as are granted by any instrument of
appointment or any court of competent jurisdiction.

 

13

 

(r)                                    Court-Appointed
Receiver.  Obtain from
any court of competent jurisdiction an order for the appointment of a Receiver
of such Debtor or of any or all of the Collateral of such Debtor.

 

(s)                                  Consultants.  Require such Debtor to engage a consultant of
the Canadian Collateral Agent’s choice, or engage a consultant on its own
behalf, such consultant to receive the full cooperation and support of such
Debtor and its agents and employees, including unrestricted access to the
premises of such Debtor and the Books and Records of such Debtor; all
reasonable fees and expenses of such consultant shall be for the account of
such Debtor and such Debtor hereby authorizes any such consultant to report
directly to the Canadian Collateral Agent and to disclose to the Canadian
Collateral Agent any and all information obtained in the course of such consultant’s
employment.

 

The Canadian Collateral Agent may exercise
any or all of the foregoing rights and remedies without demand of performance
or other demand, presentment, protest, advertisement or notice of any kind
(except as required by applicable Law) to or on any Debtor or any other Person,
and each Debtor hereby waives each such demand, presentment, protest,
advertisement and notice to the extent permitted by applicable Law.  None of the above rights or remedies will be
exclusive of or dependent on or merge in any other right or remedy, and one or
more of such rights and remedies may be exercised independently or in
combination from time to time.  Each
Debtor acknowledges and agrees that any action taken by the Canadian Collateral
Agent hereunder following the occurrence and during the continuance of an Event
of Default shall not be rendered invalid or ineffective as a result of the
curing of the Event of Default on which such action was based.

 

11.                                 Realization
Standards.  To the extent
that applicable Law imposes duties on the Canadian Collateral Agent to exercise
remedies in a commercially reasonable manner and without prejudice to the
ability of the Canadian Collateral Agent to dispose of the Collateral in any
such manner, each Debtor acknowledges and agrees that it is not commercially
unreasonable for the Canadian Collateral Agent to (or not to) (a) incur
expenses reasonably deemed significant by the Canadian Collateral Agent to
prepare the Collateral of such Debtor for disposition or otherwise to complete
raw material or work in process into finished goods or other finished products
for disposition, (b) fail to obtain third party consents for access to the
Collateral of such Debtor to be disposed of, (c) fail to exercise
collection remedies against account debtors or other Persons obligated on the
Collateral of such Debtor or to remove Liens against the Collateral of such
Debtor, (d) exercise collection remedies against account debtors and other
Persons obligated on the Collateral of such Debtor directly or through the use
of collection agencies and other collection specialists, (e) dispose of
Collateral of such Debtor by way of public auction, public tender or private
contract, with or without advertising and without any other formality, (f) contact
other Persons, whether or not in the same business of such Debtor, for
expressions of interest in acquiring all or any portion of the Collateral of
such Debtor, (g) hire one or more professional auctioneers to assist in
the disposition of the Collateral of such Debtor, whether or not such
Collateral is of a specialized nature or an upset or reserve bid or price is
established, (h) dispose of the Collateral of such Debtor by utilizing
internet sites that provide for the auction of assets of the types included in
such Collateral or that have the reasonable capacity of doing so, or that match
buyers and sellers of assets, (i) dispose of assets in wholesale rather
than retail markets, (j) disclaim disposition warranties, such as title,
possession or quiet enjoyment, (k) purchase insurance or credit
enhancements to insure the Canadian Collateral Agent against risks of loss,
collection or disposition of the Collateral of such Debtor or to provide to the
Canadian Collateral Agent a guaranteed return from the collection or
disposition of such Collateral, (l) the extent deemed appropriate by the
Canadian Collateral Agent, to obtain the services of other brokers, investment
bankers, consultants and other professionals to assist the Canadian Collateral
Agent in the collection or disposition of any of the Collateral of such Debtor,
(m) dispose of Collateral of such Debtor in whole or 

 

14

 

in
part, and (n) dispose of Collateral of such Debtor to a customer of the
Canadian Collateral Agent, and (o) establish an upset or reserve bid price
in respect of Collateral of such Debtor.

 

12.                                 Grant
of Licence.  For the
purpose of enabling the Canadian Collateral Agent to exercise its rights and
remedies under this Agreement when the Canadian Collateral Agent is entitled to
exercise such rights and remedies, and for no other purpose, each Debtor grants
to the Canadian Collateral Agent an irrevocable, non-exclusive licence
(exercisable without payment of royalty or other compensation to such Debtor)
to use, assign or sublicense any or all of the Intellectual Property Rights of
such Debtor, including in such licence reasonable access to all media in which
any of the licensed items may be recorded or stored and to all computer
programs used for the compilation or printout of the same.  For any trade-marks, get up and trade dress
and other business indicia, such licence includes an obligation on the part of
the Canadian Collateral Agent to maintain the standards of quality maintained
by such Debtor or, in the case of trade-marks, get-up and trade dress, or other
business indicia licensed to such Debtor, the standards of quality imposed upon
such Debtor by the relevant licence.  For
copyright works, such licence shall include the benefit of any waivers of moral
rights and similar rights.

 

13.                                 Securities
Laws.  The Canadian
Collateral Agent is authorized, in connection with any offer or sale of any
Pledged Securities or Pledged Security Entitlements of any Debtor, to comply
with any limitation or restriction as it may be advised by counsel is necessary
to comply with applicable Law, including compliance with procedures that may
restrict the number of prospective bidders and purchasers, requiring that
prospective bidders and purchasers have certain qualifications, and restricting
prospective bidders and purchasers to Persons who will represent and agree that
they are purchasing for their own account or investment and not with a view to
the distribution or resale of such Securities. 
In addition to and without limiting Section 11, each Debtor further
agrees that compliance with any such limitation or restriction will not result
in a sale being considered or deemed not to have been made in a commercially
reasonable manner, and the Canadian Collateral Agent will not be liable or
accountable to such Debtor for any discount allowed by reason of the fact that
such Pledged Securities or Pledged Security Entitlements are sold in compliance
with any such limitation or restriction. 
If the Canadian Collateral Agent chooses to exercise its right to sell
any or all Pledged Securities or Pledged Security Entitlements of any Debtor,
upon written request, such Debtor will cause each applicable Pledged Issuer to
furnish to the Canadian Collateral Agent all such information as the Canadian
Collateral Agent may request in order to determine the number of shares and
other instruments included in the Collateral of such Debtor which may be sold
by the Canadian Collateral Agent in exempt transactions under any Laws
governing securities, and the rules and regulations of any applicable
securities regulatory body thereunder, as the same are from time to time in
effect.

 

14.                                 ULC Shares.  Each
Debtor acknowledges that
certain of the Collateral of such Debtor may now or in the future consist of ULC Shares, and that it is the
intention of the Canadian Collateral Agent and each Debtor that neither the Canadian Collateral
Agent nor any other Secured
Party should under any circumstances prior to realization thereon be held to be
a “member” or a “shareholder”, as applicable, of a ULC for the purposes of any
ULC Laws.  Therefore, notwithstanding any
provisions to the contrary contained in this Agreement, the Credit Agreement or
any other Loan Document, where a Debtor is the registered owner of ULC Shares which are Collateral of such Debtor, such Debtor will remain the sole registered and
beneficial owner of such ULC Shares until such time as such ULC Shares are
effectively transferred into the name of the Canadian Collateral
Agent, any other Secured Party,
or any other Person on the books and records of the applicable ULC.  Accordingly, each Debtor shall be entitled to receive and retain for
its own account any dividend on or other distribution, if any, in respect of
such ULC Shares (except for any dividend or distribution comprised of
Pledged Security Certificates of such Debtor, which shall be delivered to the Canadian
Collateral Agent to hold as Collateral hereunder) and shall have the right to vote such ULC
Shares and to control the direction, management and policies of the applicable
ULC to the same extent as such Debtor would if such ULC Shares were not pledged to the Canadian 

 

15

 

Collateral
Agent pursuant
hereto.  Nothing in this Agreement, the Credit
Agreement or any other Loan Document is intended to, and nothing in this
Agreement, the Credit Agreement or any other Loan Document shall, constitute
the Canadian Collateral Agent,
any other Secured Party, or any other Person other than the applicable Debtor, a member or shareholder of a ULC for the
purposes of any ULC Laws (whether listed or unlisted, registered or
beneficial), until such time as
notice is given to such Debtor and
further steps are taken pursuant hereto or thereto so as to register the Canadian
Collateral Agent, any other
Secured Party, or such other Person, as specified in such notice, as the holder
of the ULC Shares.  To the extent any
provision hereof or of the Credit Agreement or any other Loan Document would
have the effect of constituting the Canadian Collateral Agent or any other Secured Party as a member or a
shareholder, as applicable, of any ULC prior to such time, such provision shall
be severed herefrom and shall be ineffective with respect to ULC Shares which
are Collateral of any Debtor
without otherwise invalidating or rendering unenforceable this Agreement or
invalidating or rendering unenforceable such provision insofar as it relates to
Collateral of any Debtor
which is not ULC Shares.  Except upon the
exercise of rights of the Canadian Collateral Agent to sell, transfer or otherwise dispose
of ULC Shares in accordance with this Agreement, each Debtor shall
not cause or permit, or enable a Pledged Issuer that is a ULC to cause or
permit, the Canadian Collateral Agent or any other Secured Party to: (a) be
registered as a shareholder or member of such Pledged Issuer; (b) have
any notation entered in their favour in the share register of such Pledged
Issuer; (c) be held out as shareholders or members of such Pledged Issuer;
(d) receive, directly or indirectly, any dividends, property or other
distributions from such Pledged Issuer by reason of the Canadian
Collateral Agent holding the
Security Interests over the ULC Shares; or (e) act as a shareholder or
member of such Pledged Issuer, or exercise any rights of a shareholder of
member of such Pledged Issues including the right to attend a meeting of
shareholders of such Pledged Issuer or to vote its ULC Shares, issued by such
Pledged Issuer.

 

15.                                 Application
of Proceeds.  All Proceeds
of Collateral of any Debtor received by the Canadian Collateral Agent or a
Receiver may be applied to discharge or satisfy any expenses (including the
Receiver’s remuneration and other expenses of enforcing the Canadian Collateral
Agent’s rights against such Debtor under this Agreement), Liens on the
Collateral of such Debtor in favour of Persons other than the Canadian
Collateral Agent, borrowings, taxes and other outgoings affecting the
Collateral of such Debtor or which are considered advisable by the Canadian
Collateral Agent or the Receiver to protect, preserve, repair, process,
maintain or enhance the Collateral of such Debtor or prepare it for sale, lease
or other disposition, or to keep in good standing any Liens on the Collateral
of such Debtor ranking in priority to any of the Security Interests, or to
sell, lease or otherwise dispose of the Collateral of such Debtor.  The balance of such Proceeds may, at the sole
discretion of the Canadian Collateral Agent, be held as collateral security for
the Obligations of the applicable Debtor or be applied to such of the
Obligations of the applicable Debtor (whether or not the same are due and
payable) in such manner and at such times as the Canadian Collateral Agent
considers appropriate and thereafter will be accounted for as required by Law.

 

16.                                 Continuing
Liability of each Debtor.  Each
Debtor will remain liable for any Obligations of such Debtor that are
outstanding following realization of all or any part of the Collateral of such
Debtor and the application of the Proceeds thereof.

 

17.                                 Canadian Collateral Agent’s
Appointment as Attorney-in-Fact.  Effective upon the occurrence
and during the continuance of an Event of Default, each Debtor constitutes and appoints the Canadian Collateral Agent and any officer or agent of the Canadian Collateral Agent, with full power of substitution,
as such Debtor’s true and lawful attorney-in-fact
with full power and authority in the place of such Debtor and in the name of such Debtor or in its
own name, from time to time in the Canadian Collateral Agent’s discretion, to take any and all appropriate action and to execute any
and all documents and instruments as, in the opinion of such attorney, may be
necessary or desirable to accomplish the purposes of this Agreement.  Without limiting the effect of this Section,
each Debtor grants the Canadian 

 

16

 

Collateral
Agent an irrevocable proxy to vote the Pledged Securities
and Pledged Security Entitlements of such Debtor and to
exercise all other rights, powers, privileges and remedies to which a holder
thereof would be entitled (including giving or withholding written consents of
shareholders, calling special meetings of shareholders and voting at such
meetings), which proxy shall be effective, automatically and without the
necessity of any action (including any transfer of any Pledged Securities or
Pledged Security Entitlements of such Debtor on the books and records of a Pledged Issuer
or Pledged Securities Intermediary, as applicable), upon the occurrence of an
Event of Default.  These powers are
coupled with an interest and are irrevocable until the Release Date.  Nothing in this Section affects the
right of the Canadian Collateral Agent as secured party or
any other Person on the Canadian Collateral Agent’s behalf, to sign
and file or deliver (as applicable) all such financing statements, financing
change statements, notices, verification statements and other documents
relating to the Collateral and this Agreement as the Canadian Collateral
Agent or such other Person considers appropriate.  Each Debtor hereby
ratifies and confirms, and agrees to ratify and confirm, whatever lawful acts
the Canadian Collateral Agent or any of the Canadian Collateral
Agent’s sub-agents, nominees or attorneys do or purport to do in exercise of
the power of attorney granted to the Canadian Collateral Agent pursuant
to this Section.

 

18.                                 Performance
by Canadian Collateral Agent of Debtor’s Obligations.  If any Debtor fails to perform or comply with
any of the obligations of such Debtor under this Agreement, the Canadian
Collateral Agent may, but need not, perform or otherwise cause the performance
or compliance of such obligation, provided that such performance or compliance
will not constitute a waiver, remedy or satisfaction of such failure.  The expenses of the Canadian Collateral Agent
incurred in connection with any such performance or compliance will be payable
by such Debtor to the Canadian Collateral Agent immediately on demand, and
until paid, any such expenses will form part of the Obligations of such Debtor
and will be secured by the Security Interests of such Debtor.

 

19.                                 Interest.  If any amount payable by any Debtor to the
Canadian Collateral Agent under this Agreement is not paid when due, such
Debtor will pay to the Canadian Collateral Agent, immediately on demand,
interest on such amount from the date due until paid, at a nominal annual rate
equal to the rate set out in Section 2.10 of the Credit Agreement.  All amounts payable by such Debtor to the
Canadian Collateral Agent under this Agreement, and all interest on all such
amounts, compounded monthly on the last Business Day of each month, will form
part of the Obligations of such Debtor and will be secured by the Security
Interests of such Debtor.

 

20.                                 Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction will, as to that jurisdiction,
be ineffective to the extent of such prohibition or unenforceability and will
be severed from the balance of this Agreement, all without affecting the
remaining provisions of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction.

 

21.                                 Rights
of Canadian Collateral Agent; Limitations on Canadian Collateral Agent’s
Obligations.

 

(a)                                  Limitations
on Liability of Secured Parties. 
Neither the Canadian Collateral Agent nor any other Secured Party will
be liable to any Debtor or any other Person for any failure or delay in
exercising any of the rights of such Debtor under this Agreement (including any
failure to take possession of, collect, sell, lease or otherwise dispose of any
Collateral of such Debtor, or to preserve rights against prior parties).  Neither the Canadian Collateral Agent, any
other Secured Party, a Receiver, nor any agent thereof (including, in Alberta
or British Columbia, any sheriff) is required to take, or will have any
liability for any failure to take or delay in taking, any steps necessary or
advisable to preserve rights against other Persons under any Collateral of any
Debtor in its possession.  Neither the 

 

17

 

Canadian Collateral Agent,
any other Secured Party, any Receiver, nor any agent thereof will be liable for
any, and each Debtor will bear the full risk of all, loss or damage to any and
all of the Collateral of such Debtor (including any Collateral of such Debtor
in the possession of the Canadian Collateral Agent, any other Secured Party,
any Receiver, or any agent thereof) caused for any reason other than the gross
negligence or wilful misconduct of the Canadian Collateral Agent, such other
Secured Party, such Receiver or such agent thereof.

 

(b)                                 Debtors
Remain Liable under Accounts and Contracts.  Notwithstanding any provision of this
Agreement, each Debtor will remain liable under each of the documents giving
rise to the Accounts of such Debtor and under each of the Contracts of such
Debtor to observe and perform all the conditions and obligations to be observed
and performed by such Debtor thereunder, all in accordance with the terms of
each such document and Contract.  Neither
the Canadian Collateral Agent nor any other Secured Party will have any
obligation or liability under any Account of any Debtor (or any document giving
rise thereto) or Contract of any Debtor by reason of or arising out of this
Agreement or the receipt by the Canadian Collateral Agent of any payment
relating to such Account or Contract pursuant hereto, and in particular (but
without limitation), neither the Canadian Collateral Agent nor any other
Secured Party will be obligated in any manner to perform any of the obligations
of any Debtor under or pursuant to any Account of such Debtor (or any document
giving rise thereto) or under or pursuant to any Contract of such Debtor, to
make any payment, to make any inquiry as to the nature or the sufficiency of
any payment received by it or as to the sufficiency of any performance by any
party under any Account of such Debtor (or any document giving rise thereto) or
under any Contract of such Debtor, to present or file any claim, to take any
action to enforce any performance or to collect the payment of any amounts
which may have been assigned to it or to which it may be entitled at any time.

 

(c)                                  Collections
on Accounts and Contracts.  Each
Debtor shall be authorized to, at any time that an Event of Default is not
continuing, collect the Accounts of such Debtor and payments under the
Contracts of such Debtor in the normal course of the business of such Debtor
and for the purpose of carrying on the same.

 

(d)                                 Use of
Agents.  The Canadian Collateral Agent
may perform any of its rights or duties under this Agreement by or through
agents and is entitled to retain counsel and to act in reliance on the advice
of such counsel concerning all matters pertaining to its rights and duties
under this Agreement.

 

22.                                 Dealings
by Canadian Collateral Agent.  The
Canadian Collateral Agent will not be obliged to exhaust its recourse against
any Debtor or any other Person or against any other security it may hold in
respect of the Obligations of such Debtor or any part thereof before realizing
upon or otherwise dealing with the Collateral of such Debtor in such manner as
the Canadian Collateral Agent may consider desirable.  The Canadian Collateral Agent and the other
Secured Parties may grant extensions of time and other indulgences, take and
give up security, accept compositions, grant releases and discharges and
otherwise deal with any Debtor and any other Person, and with any or all of the
Collateral of any Debtor, and with other security and sureties, as they may see
fit, all without prejudice to the Obligations of any Debtor or to the rights
and remedies of the Canadian Collateral Agent under this Agreement.  The powers conferred on the Canadian
Collateral Agent under this Agreement are solely to protect the interests of
the Canadian Collateral Agent in the Collateral of each Debtor and will not
impose any duty upon the Canadian Collateral Agent to exercise any such powers.

 

18

 

23.                                 Communication.  Any
notice or other communication required or permitted to be given under this
Agreement will be made in accordance with the terms of the Credit Agreement.

 

24.                                 Release of Information.  Each Debtor authorizes the Canadian
Collateral Agent to provide a copy of this Agreement and such other information
as may be requested of the Canadian Collateral Agent (i) to the extent
necessary to enforce the Canadian Collateral Agent’s rights, remedies and
entitlements under this Agreement, (ii) to any assignee or prospective
assignee of all or any part of its Obligations, and (iii) as required by
applicable Law.

 

25.                                 Expenses; Indemnity; Waiver.

 

(a)                                  Each Debtor agrees to pay, and to indemnify and
save the Canadian Collateral Agent and each of the other Secured Parties
harmless from, any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever with respect to the preparation, execution, delivery,
enforcement, performance and administration of this Agreement to the extent
such Debtor would be required to do so pursuant to Section 9.5 of the
Credit Agreement.

 

(b)                                 No Debtor shall assert, and each Debtor
hereby unconditionally and irrevocably waives (to the fullest extent permitted
by applicable Law), (i) any claim against any Secured Party (or any
director, officer or employee thereof) or any Receiver, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement, and (ii) all of the rights, benefits and protections
given by any present or future statute that imposes limitations on the rights,
powers or remedies of a secured party or on the methods of, or procedures for,
realization of security, including any “seize or sue” or “anti-deficiency”
statute or any similar provision of any other statute.

 

(c)                                  All amounts due under this Section shall
be payable to the Canadian Collateral Agent for the ratable benefit of the
applicable Secured Parties in accordance with the Credit Agreement.

 

(d)                                 The indemnifications set out in this Section will
survive the Release Date and the release or extinguishment of the Security
Interests.

 

26.                                 Release of Debtor.  Upon the written request of any Debtor given
at any time on or after the Release Date (or prior to the Release Date with respect to any disposition of
Collateral specifically permitted pursuant to Section 6.12 of the Credit
Agreement), the Canadian Collateral Agent shall at the expense of
such Debtor, release such Debtor and the Collateral of such Debtor or such
Collateral specifically permitted to be disposed of, as the case may be, from
the Security Interests and, in the case of any release on or after the Release
Date, such release shall serve to terminate any licence granted in this
Agreement.  Upon any such release, and at
the request and expense of such Debtor, the Canadian Collateral Agent shall
execute and deliver to such Debtor such releases and discharges as such Debtor
may reasonably request.

 

27.                                 Additional Security.  This Agreement is in addition to, and not in
substitution of, any and all other security previously or concurrently
delivered by any Debtor or any other Person to any Secured Party, all of which
other security shall remain in full force and effect.

 

28.                                 Alteration or Waiver.  None of the terms or
provisions of this Agreement may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the Canadian 

 

19

 

Collateral Agent.  The Secured Parties will not, by any act or
delay, be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Event of Default or in any breach of any of the terms and
conditions hereof.  No failure to
exercise, nor any delay in exercising, on the part of any Secured Party, any
right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right,
power or privilege hereunder will preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  A waiver by any Secured Party of any right or
remedy hereunder on any one occasion will not be construed as a bar to any
right or remedy which the Canadian Collateral Agent would otherwise have on any
future occasion.  Neither the taking of
any judgment nor the exercise of any power of seizure or sale will extinguish
the liability of any Debtor to pay the Obligations of such
Debtor, nor will the same
operate as a merger of any covenant contained in this Agreement or of any other
liability, nor will the acceptance of any payment or other security constitute
or create any novation.

 

29.                                 Amalgamation.  If any Debtor is a corporation or other body
corporate, such Debtor acknowledges that if it amalgamates or merges with any
other corporation or corporations or bodies corporate, then (i) the
Collateral and the Security Interests of such Debtor will extend to and include
all the property and assets of the amalgamated corporation and to any property
or assets of the amalgamated corporation thereafter owned or acquired, (ii) the
term “Debtor”, where used in this Agreement, will extend to and include the
amalgamated corporation or other body corporate, and (iii) the term “Obligations”,
where used in this Agreement, will extend to and include the Obligations of the
amalgamated corporation or other body corporate.

 

30.                                 Governing Law; Attornment.  This Agreement will be governed by and
construed in accordance with the Laws of the Province of Ontario, excluding any
conflict of laws rule or principle that might refer these matters to the
laws of another jurisdiction.  Without
prejudice to or limitation of any other rights or remedies available to the
Canadian Collateral Agent and/or the ability of the Canadian Collateral Agent
to enforce this Agreement in any other proper jurisdiction, each Debtor
irrevocably submits and attorns to the non-exclusive jurisdiction of the courts
of such province.  Each of the Debtors
agrees that service of all writs, processes, statements, correspondence or
summonses in any suit, action or proceeding brought against such Debtor under
or in respect of this Agreement in the Province of Ontario shall be made upon
such Debtor at such Debtor’s address for notice as provided in the Credit
Agreement, or in any other manner permitted by applicable Law. To the extent
permitted by applicable Law, each Debtor irrevocably waives any objection
(including any claim of inconvenient forum) that it may now or hereafter have
to the venue of any legal proceeding arising out of or relating to this
Agreement in the courts of such Province.

 

31.                                 Interpretation.  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word ‘shall”.  The word “or” is disjunctive; the word “and”
is conjunctive.  The word “shall” is
mandatory; the word “may” is permissive. 
Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set out herein), (b) any
reference herein to any statute or any section thereof shall, unless otherwise
expressly stated, be deemed to be a reference to such statute or section as
amended, restated or re-enacted from time to time, (c) any reference
herein to any Person shall be construed to include such Person’s successors and
permitted assigns, (d) the words “herein”, “hereof” and “hereunder”, and
words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision
hereof, and (e) all references herein to Sections and Schedules shall be
construed to refer to 

 

20

 

Sections and Schedules to,
this Agreement, Section headings are for convenience of reference only,
are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.  Any reference in this Agreement to a Permitted
Lien is not intended to subordinate or postpone, and shall not be interpreted
as subordinating or postponing, or as any agreement to subordinate or postpone,
any Security Interest to any Permitted Lien. 
In accordance with the Property Law Act (British
Columbia), the doctrine of consolidation applies to this Agreement.

 

32.                                 Successors and Assigns.  This Agreement will enure to the benefit of,
and be binding on, each Debtor and its successors and permitted assigns, and
will enure to the benefit of, and be binding on, the Canadian Collateral Agent
and its successors and assigns.  No
Debtor may assign this Agreement, or any of its rights or obligations under
this Agreement.  The Canadian Collateral
Agent may assign this Agreement and any of its rights and obligations hereunder
to any Person that replaces it in its capacity as such.  If any Debtor or the Canadian Collateral
Agent is an individual, then the term “Debtor” or “Canadian Collateral Agent”,
as applicable, will also include his or her heirs, administrators and
executors.

 

33.                                 Additional Debtor(s).  Additional Persons may from time to time
after the date of this Agreement become Debtors under this Agreement by
executing and delivering to the Canadian Collateral Agent a supplemental
agreement (together with all schedules thereto, a “Supplement”)
to this Agreement, in substantially the form attached hereto as Exhibit A.  Effective from and after the date of the
execution and delivery by any Person to the Canadian Collateral Agent of a
Supplement:

 

(a)                                  such Person shall be,
and shall be deemed for all purposes to be, a Debtor under this Agreement with
the same force and effect, and subject to the same agreements, representations,
indemnities, liabilities, obligations and Security Interests, as if such Person
had been an original signatory to this Agreement as a Debtor; and

 

(b)                                 all Collateral of
such Person shall be subject to the Security Interest from such Person as
security for the due payment and performance of the Canadian Secured
Obligations of such Person in accordance with the provisions of this Agreement,
and such Canadian Secured Obligations shall be Obligations of such Person.

 

The execution and delivery
of a Supplement by any additional Person shall not require the consent of any
Debtor and all of the Obligations of each Debtor and the Security Interests
granted thereby shall remain in full force and effect, notwithstanding the
addition of any new Debtor to this Agreement.

 

34.                                 Acknowledgment of
Receipt/Waiver.  Each Debtor
acknowledges receipt of an executed copy of this Agreement and, to the extent
permitted by applicable Law, waives the right to receive a copy of any
financing statement or financing change statement registered in connection with
this Agreement or any verification statement issued in respect of any such
financing statement or financing change statement.

 

35.                                 Enforcement by Canadian
Collateral Agent.  This
Agreement and the Security Interests may be enforced only by the action of the
Canadian Collateral Agent acting on behalf of the Secured Parties and no other
Secured Party shall have any rights individually to enforce or seek to enforce
this Agreement or any of the Security Interests, it being understood and agreed
that such rights and remedies may be exercised by the Canadian Collateral Agent
for the benefit of the Secured Parties upon the terms of this Agreement.

 

36.                                 Electronic Signature.  Delivery of an executed signature page to
this Agreement by any Debtor by facsimile or other electronic form of
transmission shall be as effective as delivery by such Debtor of a 

 

21

 

manually executed copy of this Agreement by such Debtor.  This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract.

 

[signatures
on the next following page]

 

22

 

IN WITNESS WHEREOF the undersigned has caused this
Agreement to be duly executed as of the date first written above.

 

DEBTORS:

 

	
  SMURFIT-STONE CONTAINER CANADA INC./EMBALLAGES
  SMURFIT-STONE CANADA INC.

  	
   

  	
  3083527 NOVA SCOTIA COMPANY

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MBI LIMITED/LIMITÉE

  	
   

  	
  SMURFIT-MBI, by its general partner MBI LIMITED/LIMITÉE

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FRANCOBEC COMPANY/SOCIÉTÉ FRANCOBEC

  	
   

  	
  STONE CONTAINER FINANCE COMPANY OF CANADA II

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  639647 BRITISH COLUMBIA LTD.

  	
   

  	
  B.C. SHIPPER SUPPLIES LTD.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SPECIALTY CONTAINERS INC.

  	
   

  	
  605681 N.B. INC.

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

Signature Page to Canadian Security
Agreement

 

S-1

 

	
  SLP FINANCE 1, INC. and SLP FINANCE

  II, INC., carrying on business in partnership
  under the firm name SLP FINANCE GENERAL PARTNERSHIP

   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

Signature Page to Canadian
Security Agreement

 

S-2

 

SCHEDULE
A-1

 

DEBTOR INFORMATION

 

Full legal name: Smurfit-Stone Container Canada
Inc.

 

Prior names:(1)

 

                                                Smurfit-Stone Container Canada Inc.

                                                Emballages Smurfit-Stone Canada Inc.

                                                3767825 Canada Inc.

                                                3767809 Canada Inc.

                                                3767817 Canada Inc.

                                                3767795 Canada Inc.

                                                3701174 Canada Inc.

                                                St. Laurent Paperboard Inc.

                                                Cartons St-Laurent Inc.

                                                St. Laurent Fibre Resources Inc.

                                                Ressources en Fibre St-Laurent Inc.

                                                Thunder Bay Packaging Inc.

                                                Emballages Thunder Bay Inc.

                                                Emballages Stone (Canada) Inc.

                                                Stone Container (Canada) Inc.

 

Predecessor companies:

 

                                                Smurfit-Stone Container Canada Inc.

                                                Emballages Smurfit-Stone Canada Inc.

                                                3767825 Canada Inc.

                                                3767809 Canada Inc.

                                                3767817 Canada Inc.

                                                3767795 Canada Inc.

                                                3701174 Canada Inc.

                                                St. Laurent Paperboard Inc.

                                                Cartons St-Laurent Inc.

                                                St. Laurent Fibre Resources Inc.

                                                Ressources en Fibre St-Laurent Inc.

                                                Thunder Bay Packaging Inc.

                                                Emballages Thunder Bay Inc.

                                                Emballages Stone (Canada) Inc.

                                                Stone Container (Canada) Inc.

 

Jurisdiction of
incorporation, continuance or organization: Nova Scotia

 

Address of chief executive
office: 630,
Boul. Rene-Levesque Ouest, Bureau 3000, Montreal, QC H3B 5C7

 

Addresses of all places
where business is carried on or tangible Personal Property is kept:

 

                                                The paperboard mill located at 1000 Chemin de
l’Usine, La Tuque, Quebec

                                                The corrugating medium mill located at 90
Parc Industriel, Matane, Quebec

                                                The converting plant located at 15400
Sherbrooke Street East, Montreal, Quebec

 

(1) The
prior names and predecessor companies listed are for the past ten years.

 

General Security Agreement

 

 

                                                The converting plant located at 747 Appleby
Line, Burlington, Ontario

                                                The pulp mill located at 211, Route 301,
Portage-Du-Fort, Quebec*

                                                The limerboard mill located at 150 Chemin
St-Edgon, New Richmond, Quebec*

                                                The corrugating medium mill located at 819
Main Street, Bathurst, New Brunswick*

 

*
permanently shut down

 

Addresses of all owned
real property:

 

                                                The paperboard mill located at 1000 Chemin de
l’Usine, La Tuque, Quebec

                                                The corrugating medium mill located at 90
Parc Industriel, Matane, Quebec

                                                The converting plant located at 15400
Sherbrooke Street East, Montreal, Quebec

                                                The converting plant located at 747 Appleby
Line, Burlington, Ontario

                                                The pulp mill located at 211, Route 301,
Portage-Du-Fort, Quebec*

                                                The limerboard mill located at 150 Chemin
St-Edgon, New Richmond, Quebec*

                                                The corrugating medium mill located at 819
Main Street, Bathurst, New Brunswick*

 

*
permanently shut down

 

Addresses of all leased
real property: 630, Boul. Rene-Levesque Ouest, Bureau 3000, Montreal, QC H3B 5C7

 

Description of all “serial
number goods” (i.e., motor vehicles, trailers, aircraft, boats and outboard
motors for boats)  (2):

 

Instruments, Documents of
Title and Chattel Paper of such Debtor in an amount in excess of $1,000,000:

 

	
  Borrowing Entity

  	
   

  	
  Lending Entity

  	
   

  	
  Balance as of December 31,

  2008

  	
   

  
	
  Smurfit-Stone Container
  Enterprises, Inc.

  	
   

  	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  3083527 Nova Scotia Company

  	
   

  	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  $

  	
  220,127,119

  	
   

  

 

(2) As per
Section 6(o) hereof, to be delivered within 20 days of the date of
the Canadian Security Agreement.

 

2

 

Pledged Certificated
Securities(3):

 

	
  Pledged Issuer

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding

  Securities of

  Pledged Issuer

  	
   

  	
  Security

  Certificate

  Numbers

  	
   

  	
  Security

  Certificate

  Location

  	
   

  
	
  3083527 Nova Scotia Company

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  
	
  MBI Limited/Limitée

  	
   

  	
  ·

  	
   

  	
  50

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  
	
  St. Laurent Display and Packaging Corp.

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  
	
  Celgar Investments, Inc.

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  
	
  Stone Venepal (Celgar) Pulp, Inc.

  	
   

  	
  ·

  	
   

  	
  45

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  

 

Pledged Uncertificated
Securities(4):

 

	
  Pledged Issuer

  	
   

  	
  Pledged Issuer’s

  Jurisdiction

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding Securities

  of Pledged Issuer

  	
   

  
	
  Smurfit-MBI

  	
   

  	
  Ontario

  	
   

  	
  ·

  	
   

  	
  49.9999

  	
  %

  
	
  Aspamill
  Inc.

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  45

  	
  %

  
	
  Groupement  Forestier de Champlain Inc.

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  10

  	
  %

  
	
  Rosenbloom Group, Inc.

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  45

  	
  %

  
	
  Associated Paper Mills (Ontario) Limited

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  45

  	
  %

  
	
  Cascapedia
  Booming Co. Ltd.

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  50

  	
  %

  

 

(3) To be completed by the Debtor.

(4) To be completed by the
Debtor.

 

3

 

Pledged
Securities Accounts: None

 

Pledged
Futures Accounts: None

 

Intellectual Property:

 

	
  Trademark

  	
   

  	
  Status

  	
   

  	
  App.No.

  	
   

  	
  Filing Date

  	
   

  	
  Reg. No.

  	
   

  	
  Reg. Date

  
	
  COPLY

  	
   

  	
  Registered

  	
   

  	
  409157

  	
   

  	
  4/1/1977

  	
   

  	
  TMA229101

  	
   

  	
  7/14/1978

  
	
  ECO-FILM

  	
   

  	
  Registered

  	
   

  	
  699423

  	
   

  	
  2/20/1992

  	
   

  	
  TMA416028

  	
   

  	
  8/27/1993

  

 

	
  Trademark

  	
   

  	
  Status

  	
   

  	
  App.No.

  	
   

  	
  Filing Date

  	
   

  	
  Reg. No.

  	
   

  	
  Reg. Date

  
	
  AUTOBIN

  	
   

  	
  Allowed

  	
   

  	
  1256866

  	
   

  	
  5/6/2005

  	
   

  	
  —

  	
   

  	
  —

  
	
  CHEMCOR

  	
   

  	
  Registered

  	
   

  	
  310214

  	
   

  	
  1/12/1968

  	
   

  	
  TMA158488

  	
   

  	
  9/27/1968

  
	
  ECOWRAP

  	
   

  	
  Registered

  	
   

  	
  730490

  	
   

  	
  6/4/1993

  	
   

  	
  TMA443919

  	
   

  	
  6/16/1995

  
	
  

  GRAFXFLÜT DESSIN

  	
   

  	
  Registered

  	
   

  	
  856480

  	
   

  	
  9/18/1997

  	
   

  	
  TMA518251

  	
   

  	
  10/20/1999

  
	
  HYDROCOR

  	
   

  	
  Registered

  	
   

  	
  323156

  	
   

  	
  6/10/1969

  	
   

  	
  TMA171951

  	
   

  	
  10/9/1970

  
	
  ICE-PAK

  	
   

  	
  Registered

  	
   

  	
  300665

  	
   

  	
  11/7/1966

  	
   

  	
  TMA156627

  	
   

  	
  5/3/1968

  
	
  

  LOGO DE CARTONS ST-LAURENT

  	
   

  	
  Registered

  	
   

  	
  878695

  	
   

  	
  5/19/1998

  	
   

  	
  TMA535710

  	
   

  	
  10/25/2000

  
	
  

  PREPRINT THE OUTSIDE EDGE & Design

  	
   

  	
  Registered

  	
   

  	
  1263479

  	
   

  	
  7/4/2005

  	
   

  	
  TMA700912

  	
   

  	
  11/15/2007

  

 

4

 

	
  Trademark

  	
   

  	
  Status

  	
   

  	
  App.No.

  	
   

  	
  Filing Date

  	
   

  	
  Reg. No.

  	
   

  	
  Reg. Date

  
	
  PRINTERS’ SELECT

  	
   

  	
  Registered

  	
   

  	
  856481

  	
   

  	
  9/18/1997

  	
   

  	
  TMA508325

  	
   

  	
  2/23/1999

  
	
  RECALT

  	
   

  	
  Registered

  	
   

  	
  1076109

  	
   

  	
  9/25/2000

  	
   

  	
  TMA565366

  	
   

  	
  7/30/2002

  
	
  RECYCLACORR

  	
   

  	
  Allowed

  	
   

  	
  1275724

  	
   

  	
  10/14/2005

  	
   

  	
  —

  	
   

  	
  —

  
	
  SNO-TOP

  	
   

  	
  Registered

  	
   

  	
  281956

  	
   

  	
  4/28/1964

  	
   

  	
  TMA138119

  	
   

  	
  11/13/1964

  
	
  SNO-TOP PLUS

  	
   

  	
  Registered

  	
   

  	
  808744

  	
   

  	
  4/2/1996

  	
   

  	
  TMA473599

  	
   

  	
  3/25/1997

  
	
  

  TUKOTE & DESIGN

  	
   

  	
  Registered

  	
   

  	
  274193

  	
   

  	
  2/27/1963

  	
   

  	
  TMA138084

  	
   

  	
  11/13/1964

  

 

 

	
  Patents — Canada

  	
   

  	
  Registration or Application Number

  
	
   

  	
   

  	
   

  
	
  Multi-Layer Wrapper Construction

  	
   

  	
  CA 2,139,082

  
	
   

  	
   

  	
   

  
	
  Envelope Multicouche

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Making Coated or Impregnated Paper or Paperboard

  	
   

  	
  CA 2,256,744

  

 

	
  Patents — United States of America

  	
   

  	
  Registration or Application Number

  
	
   

  	
   

  	
   

  
	
  Multi-Layer Wrapper Construction (Ecowrap)

  	
   

  	
  5,562,980

  
	
   

  	
   

  	
   

  
	
  Method of Making Coated or Impregnated Paper or Paperboard

  	
   

  	
  08/660,553

  

 

5

 

SCHEDULE
A-1

 

DEBTOR INFORMATION

 

Full
legal name: Stone Container Finance Company of Canada II

 

Prior names: None

 

Predecessor companies: None

 

Jurisdiction of
incorporation, continuance or organization: Nova Scotia

 

Address of chief executive
office: 1959
Upper Water Street, Suite 900, Halifax, NS B3J 2X2

 

Addresses of all places
where business is carried on or tangible Personal Property is kept: 1959 Upper Water Street, Suite 900,
Halifax, NS B3J 2X2

 

Addresses
of all owned real property: None

 

Addresses
of all leased real property: None

 

Description of all “serial
number goods” (i.e., motor vehicles, trailers, aircraft, boats and outboard
motors for boats)  (1):

 

Instruments, Documents of
Title and Chattel Paper of such Debtor in an amount in excess of $1,000,000:

 

	
  Borrowing Entity

  	
   

  	
  Lending Entity

  	
   

  	
  Balance as of December 31,

  2008

  	
   

  
	
  Smurfit-Stone Container Canada Inc.

  	
   

  	
  Stone
  Container Finance Company of Canada II

  	
   

  	
  $

  	
  207,031,994

  	
   

  
							

 

Pledged Certificated
Securities(2):

 

	
  Pledged Issuer

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding

  Securities of

  Pledged Issuer

  	
   

  	
  Security

  Certificate

  Numbers

  	
   

  	
  Security

  Certificate

  Location

  	
   

  
	
  Smurfit-Stone Container Canada Inc.

  	
   

  	
  Class C
  Shares

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  

 

(1) As per
Section 6(o) hereof, to be delivered within 20 days of the date of
the Canadian Security Agreement.

(2) To be
completed by the Debtor.

 

 

Pledged Uncertificated
Securities(3):

 

	
  Pledged Issuer

  	
   

  	
  Pledged Issuer’s

  Jurisdiction

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding Securities

  of Pledged Issuer

  	
   

  
	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  

 

Pledged
Securities Accounts: None

 

Pledged
Futures Accounts: None

 

Intellectual Property: None

 

(3) To be completed by the Debtor.

 

2

 

SCHEDULE
A-1

 

DEBTOR
INFORMATION

 

Full legal name: 3083527 Nova Scotia Company

 

Prior names: None

 

Predecessor companies: None

 

Jurisdiction of incorporation, continuance or
organization: Nova Scotia

 

Address of chief executive office: 630 Rene-Levesque Blvd. West, Suite 3000,
Montreal, QC H3B 5C7

 

Addresses of all places where business is carried
on or tangible Personal Property is kept: 630 Rene-Levesque Blvd. West,
Suite 3000, Montreal, QC H3B 5C7

 

Addresses
of all owned real property: None

 

Addresses
of all leased real property: None

 

Description of all “serial number goods” (i.e.,
motor vehicles, trailers, aircraft, boats and outboard motors for boats)  (1):

 

Instruments, Documents of Title and Chattel Paper
of such Debtor in an amount in excess of $1,000,000: None

 

Pledged Certificated Securities(2):

 

	
  Pledged Issuer

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding

  Securities of

  Pledged Issuer

  	
   

  	
  Security

  Certificate

  Numbers

  	
   

  	
  Security

  Certificate

  Location

  	
   

  
	
  MBI Limited/Limitée

  	
   

  	
  ·

  	
   

  	
  50

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  

 

Pledged Uncertificated Securities(3):

 

	
  Pledged Issuer

  	
   

  	
  Pledged Issuer’s

  Jurisdiction

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding Securities

  of Pledged Issuer

  	
   

  
	
  Smurfit-MBI

  	
   

  	
  Ontario

  	
   

  	
  ·

  	
   

  	
  49.9999

  	
  %

  

 

(1) As per
Section 6(o) hereof, to be delivered within 20 days of the date of
the Canadian Security Agreement.

(3) To be completed by the Debtor.

(3) To be completed by the Debtor.

 

General Security Agreement

 

 

Pledged
Securities Accounts: None

 

Pledged
Uncertificated Securities: None

 

Pledged
Futures Accounts: None

 

Intellectual Property: None

 

2

 

SCHEDULE
A-1

 

DEBTOR INFORMATION

 

Full legal name: MBI Limited/Limitée

 

Prior names: MacMillan Bathurst Inc.

 

Predecessor companies: N/A

 

Jurisdiction of
incorporation, continuance or organization: New Brunswick

 

Address of chief executive
office: 7120
Hurontario Road, Mississauga, ON L5W 0A9

 

Addresses of all places
where business is carried on or tangible Personal Property is kept: 7120 Hurontario Road, Mississauga,
ON L5W 0A9

 

Addresses of all owned real property:

 

                                                730 Islington Avenue, Toronto, Ontario

                                                200 Water Street, Whitby, Ontario

                                                390 Woodlawn Road, West, Guelph, Ontario

                                                8150 Parkhill Drive, Milton, Ontario

                                                1400 1st Avenue East, Regina, Saskatchewan

                                                1115 34th Avenue South East, Calgary, Alberta

                                                8705 24th Street, Edmonton, Alberta

                                                1360 Inkster Boulevard, Winnipeg, Manitoba

                                                1035 Hodge Street, Saint-Laurent, Quebec

                                                5550 Royalmount Avenue, Town of Mount Royal,
Quebec

                                                Foot of Gifford Street, New Westminster, British
Columbia

 

Addresses of all leased
real property: None

 

Description of all “serial
number goods” (i.e., motor vehicles, trailers, aircraft, boats and outboard
motors for boats)  (1):

 

Instruments, Documents of
Title and Chattel Paper of such Debtor in an amount in excess of $1,000,000: None

 

(1) As per
Section 6(o) hereof, to be delivered within 20 days of the date of
the Canadian Security Agreement.

 

General Security Agreement

 

 

Pledged Certificated
Securities(2):

 

	
  Pledged Issuer

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding

  Securities of

  Pledged Issuer

  	
   

  	
  Security

  Certificate

  Numbers

  	
   

  	
  Security

  Certificate

  Location

  	
   

  
	
  Smurfit-MBI

  	
   

  	
  ·

  	
   

  	
  0.0002

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  

 

Pledged Uncertificated
Securities(3):

 

	
  Pledged Issuer

  	
   

  	
  Pledged Issuer’s

  Jurisdiction

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding Securities

  of Pledged Issuer

  	
   

  
	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  

 

Pledged
Securities Accounts: None

 

Pledged
Futures Accounts: None

 

Intellectual
Property: None

 

(2) To be completed by the Debtor.

(3) To be completed by the
Debtor.

 

2

 

SCHEDULE
A-1

 

DEBTOR INFORMATION

 

Full legal name: Smurfit-MBI

 

Prior names: MBI, MacMillan Bathurst

 

Predecessor companies: N/A

 

Jurisdiction of
incorporation, continuance or organization: Ontario

 

Address of chief executive
office: 7120
Hurontario Road, Mississauga, ON L5W 0A9

 

Addresses of all places
where business is carried on or tangible Personal Property is kept:

 

                                                730 Islington Avenue, Toronto, Ontario

                                                200 Water Street, Whitby, Ontario(1)

                                                390 Woodlawn Road, West, Guelph, Ontario

                                                8150 Parkhill Drive, Milton, Ontario

                                                1400 1st Avenue East, Regina, Saskatchewan

                                                1115 34th Avenue South East, Calgary, Alberta

                                                8705 24th Street, Edmonton, Alberta

                                                1360 Inkster Boulevard, Winnipeg, Manitoba

                                                1035 Hodge Street, Saint-Laurent, Quebec

                                                5550 Royalmount Avenue, Town of Mount Royal,
Quebec

                                                Foot of Gifford Street, New Westminster,
British Columbia

 

Addresses of all owned
real property: None(2)

 

Addresses of all leased
real property:

 

                                                5595 Finch Avenue East, Unit 1, Toronto ON
M8Z 4N8

                                                5800 Avebury Road, Unit 2, Mississauga, ON
L5R 3M3

                                                7420 Pacific Circle, Mississauga, ON L5T 2A4

                                                Unit 190, 13160 Vamier Place, Richmond, BC
V6V 2J2

 

Description of all “serial
number goods” (i.e., motor vehicles, trailers, aircraft, boats and outboard
motors for boats)  (3):

 

(1)
Permitted Asset Sale — this is the Whitby, Ontario plant shut down permanently
in 2008

(2) Smurfit-MBI does not own
any Real Property, MBI Limited does. 
Smurfit-MBI owns all Personal Property at the locations and operates the
Businesses.

(3) As per
Section 6(o) hereof, to be delivered within 20 days of the date of the Canadian
Security Agreement.

 

General Security Agreement

 

 

Instruments, Documents of
Title and Chattel Paper of such Debtor in an amount in excess of $1,000,000:

 

	
  Borrowing Entity

  	
   

  	
  Lending Entity

  	
   

  	
  Balance as of December 31,

  2008

  	
   

  
	
  Smurfit-Stone Container Canada Inc.

  	
   

  	
  Smurfit-MBI

  	
   

  	
  $

  	
  93,630,281

  	
   

  
							

 

Pledged Certificated
Securities(4):

 

	
  Pledged Issuer

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding

  Securities of

  Pledged Issuer

  	
   

  	
  Security

  Certificate

  Numbers

  	
   

  	
  Security

  Certificate

  Location

  	
   

  
	
  SMBI Inc.

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  
	
  639647 British Columbia Ltd.

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  	
   

  

 

Pledged Uncertificated
Securities(5):

 

	
  Pledged Issuer

  	
   

  	
  Pledged Issuer’s

  Jurisdiction

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding Securities

  of Pledged Issuer

  	
   

  
	
  Schiffenhaus
  Canada, Inc.

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  33.33

  	
  %

  
	
  Serpac
  Containers Limited

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  49.5

  	
  %

  

 

Pledged
Securities Accounts: None

 

Pledged
Futures Accounts: None

 

(4) To be completed by the Debtor.

(5) To be completed by the Debtor.

 

2

 

Intellectual Property:

 

	
  Trademark

  	
   

  	
  Status

  	
   

  	
  App.No.

  	
   

  	
  Filing Date

  	
   

  	
  Reg. No.

  	
   

  	
  Reg. Date

  
	
  FASTPAK

  	
   

  	
  Registered

  	
   

  	
  300882

  	
   

  	
  11/17/1966

  	
   

  	
  TMA152204

  	
   

  	
  7/21/1967

  
	
  GUARDMAC

  	
   

  	
  Registered

  	
   

  	
  468173

  	
   

  	
  4/7/1981

  	
   

  	
  TMA273797

  	
   

  	
  11/12/1982

  
	
  HYDRA-GUARD

  	
   

  	
  Registered

  	
   

  	
  884855

  	
   

  	
  7/20/1998

  	
   

  	
  TMA601484

  	
   

  	
  2/5/2004

  
	
  IMAGE PAC

  	
   

  	
  Registered

  	
   

  	
  604153

  	
   

  	
  3/31/1988

  	
   

  	
  TMA363186

  	
   

  	
  11/10/1989

  
	
  

  IMAGE PAC & DESIGN

  	
   

  	
  Registered

  	
   

  	
  604156

  	
   

  	
  3/31/1988

  	
   

  	
  TMA379874

  	
   

  	
  2/15/1991

  
	
  

  IMAGE PAC DISPLAY & DESIGN

  	
   

  	
  Registered

  	
   

  	
  604154

  	
   

  	
  3/31/1988

  	
   

  	
  TMA364429

  	
   

  	
  1/19/1990

  
	
  

  IMAGE PAC GRAPHICS & DESIGN

  	
   

  	
  Registered

  	
   

  	
  689335

  	
   

  	
  9/12/1991

  	
   

  	
  TMA410448

  	
   

  	
  4/2/1993

  

 

3

 

	
  

  IMAGE PAC GRAPHICS & DESIGN

  	
   

  	
  Registered

  	
   

  	
  604155

  	
   

  	
  3/31/1988

  	
   

  	
  TMA363187

  	
   

  	
  11/10/1989

  
	
  

  IMAGE PAC MERCHANDISING DESIGN

  	
   

  	
  Registered

  	
   

  	
  843543

  	
   

  	
  4/28/1997

  	
   

  	
  TMA498069

  	
   

  	
  7/30/1998

  
	
  MBI

  	
   

  	
  Registered

  	
   

  	
  721242

  	
   

  	
  1/28/1993

  	
   

  	
  TMA423895

  	
   

  	
  2/25/1994

  
	
  

  MBI & DESIGN

  	
   

  	
  Registered

  	
   

  	
  732739

  	
   

  	
  7/9/1993

  	
   

  	
  TMA437117

  	
   

  	
  12/16/1994

  
	
  

  POWDER BLUE BOX DESIGN

  	
   

  	
  Registered

  	
   

  	
  783227

  	
   

  	
  5/18/1995

  	
   

  	
  TMA470366

  	
   

  	
  2/4/1997

  
	
  

  RAINBOW BOX DESIGN

  	
   

  	
  Registered

  	
   

  	
  783226

  	
   

  	
  5/18/1995

  	
   

  	
  TMA470362

  	
   

  	
  2/4/1997

  
	
  RIGI-MAC

  	
   

  	
  Registered

  	
   

  	
  313867

  	
   

  	
  6/10/1968

  	
   

  	
  TMA164228

  	
   

  	
  7/25/1969

  

 

4

 

	
  SCUFF-GUARD

  	
   

  	
  Registered

  	
   

  	
  884854

  	
   

  	
  7/20/1998

  	
   

  	
  TMA538415

  	
   

  	
  12/6/2000

  
	
  SEAL-GUARD

  	
   

  	
  Registered

  	
   

  	
  884853

  	
   

  	
  7/20/1998

  	
   

  	
  TMA525016

  	
   

  	
  3/15/2000

  
	
  SILHOUETTE PACKAGING

  	
   

  	
  Registered

  	
   

  	
  797975

  	
   

  	
  11/23/1995

  	
   

  	
  TMA469276

  	
   

  	
  1/21/1997

  
	
  SLIP-GUARD

  	
   

  	
  Registered

  	
   

  	
  884856

  	
   

  	
  7/20/1998

  	
   

  	
  TMA601160

  	
   

  	
  2/3/2004

  
	
  STICK-GUARD

  	
   

  	
  Registered

  	
   

  	
  884851

  	
   

  	
  7/20/1998

  	
   

  	
  TMA611581

  	
   

  	
  6/1/2004

  
	
  

  SUPER C FLUTE & DESIGN

  	
   

  	
  Registered

  	
   

  	
  578796

  	
   

  	
  2/24/1987

  	
   

  	
  TMA340119

  	
   

  	
  5/13/1988

  
	
  

  THE IMAGE MAKERS design

  	
   

  	
  Registered

  	
   

  	
  1164314

  	
   

  	
  1/10/2003

  	
   

  	
  TMA638768

  	
   

  	
  5/2/2005

  
	
  GREASE-GUARD

  	
   

  	
  Registered

  	
   

  	
  884850

  	
   

  	
  7/20/1998

  	
   

  	
  TMA549335

  	
   

  	
  8/6/2001

  

 

5

 

SCHEDULE
A-1

 

DEBTOR
INFORMATION

 

Full legal name: 639647 British Columbia Ltd.

 

Prior names: N/A

 

Predecessor
companies: None

 

Jurisdiction of
incorporation, continuance or organization: British Columbia

 

Address of chief executive
office: 7120
Hurontario Street, No. 200, Mississauga, ON L5W 0A9

 

Addresses of all places where business is carried
on or tangible Personal Property is kept: 
7120 Hurontario
Street, No. 200, Mississauga, ON L5W 0A9

 

Addresses of all owned
real property: None

 

Addresses of all leased
real property: None

 

Description of all “serial number goods” (i.e.,
motor vehicles, trailers, aircraft, boats and outboard motors for boats)  (1):

 

Instruments, Documents of Title and Chattel Paper
of such Debtor in an amount in excess of $1,000,000: None

 

Pledged Certificated Securities(2):

 

	
  Pledged
  Issuer

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding

  Securities of

  Pledged Issuer

  	
   

  	
  Security

  Certificate

  Numbers

  	
   

  	
  Security

  Certificate

  Location

  
	
  B.C. Shipper Supplies Ltd.

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  
	
  Specialty Containers Inc.

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  

 

(1) As per Section 6(o) hereof, to
be delivered within 20 days of the date of the Canadian Security Agreement.

(2) To be completed
by the Debtor.

 

General Security Agreement

 

 

Pledged Uncertificated
Securities(3):

 

	
  Pledged Issuer

  	
   

  	
  Pledged Issuer’s

  Jurisdiction

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding Securities

  of Pledged Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Securities
Accounts: None

 

Pledged Futures Accounts: None

 

Intellectual Property: None

 

(3) To be completed by the Debtor.

 

2

 

SCHEDULE
A-1

 

DEBTOR
INFORMATION

 

Full legal name: B.C. Shipper Supplies Ltd.

 

Prior names: N/A

 

Predecessor
companies: 455913 British Columbia Ltd.(1)

 

Jurisdiction of
incorporation, continuance or organization: British Columbia

 

Address of chief executive
office: 7120
Hurontario Street, No. 200, Mississauga, ON L5W 0A9

 

Addresses of all places where business is carried
on or tangible Personal Property is kept: 1302 Derwent Way, Delta, BC

 

Addresses of all owned
real property: None

 

Addresses of all leased
real property: 1302 Derwent Way, Delta, BC

 

Description of all “serial number goods” (i.e.,
motor vehicles, trailers, aircraft, boats and outboard motors for boats)  (2):

 

Instruments, Documents of Title and Chattel Paper
of such Debtor in an amount in excess of $1,000,000: None

 

Pledged Certificated
Securities: None

 

Pledged
Uncerificated Securities: None

 

Securities
Accounts: None

 

Pledged Uncertificated
Securities: None

 

Pledged Futures Accounts: None

 

Intellectual Property: None

 

(1) Amalgamation on November 1, 1993 and
continued as B.C. Shipper Supplies Ltd.

(2) As per Section 6(o) hereof, to
be delivered within 20 days of the date of the Canadian Security Agreement.

 

General Security Agreement

 

 

SCHEDULE
A-1

 

DEBTOR
INFORMATION

 

Full legal name: Specialty Containers Inc.(1)

 

Prior names: N/A

 

Predecessor companies: N/A

 

Jurisdiction of
incorporation, continuance or organization: Alberta

 

Address of chief executive
office: 7120
Hurontario Street, No. 200, Mississauga, ON L5W 0A9

 

Addresses of all places where business is carried
on or tangible Personal Property is kept: None

 

Addresses of all owned
real property: None

 

Addresses of all leased
real property: 7120 Hurontario Street, No. 200, Mississauga, ON L5W 0A9

 

Description of all “serial number goods” (i.e.,
motor vehicles, trailers, aircraft, boats and outboard motors for boats)  (2):

 

Instruments, Documents of Title and Chattel Paper
of such Debtor in an amount in excess of $1,000,000: None

 

Pledged Certificated Securities: None

 

Pledged
Uncertificated Securities: None

 

Pledged
Securities Accounts: None

 

Pledged Uncertificated
Securities: None

 

Pledged Futures Accounts: None

 

Intellectual Property: None

 

(1) All Personal Property was sold in 2008.

(2) As per Section 6(o) hereof, to
be delivered within 20 days of the date of the Canadian Security Agreement.

 

General Security Agreement

 

SCHEDULE
A-1

 

DEBTOR
INFORMATION

 

Full legal name: SLP Finance General Partnership

 

Prior names: N/A

 

Predecessor companies: N/A

 

Jurisdiction of
incorporation, continuance or organization: Quebec

 

Address of chief executive
office: 630,
Boul. Rene-Levesque Ouest, Bureau 3000, Montreal, QC H3B 5C7

 

Addresses of all places where business is carried
on or tangible Personal Property is kept: 630, Boul. Rene-Levesque Ouest, Bureau 3000,
Montreal, QC H3B 5C7

 

Addresses of all owned
real property: None

 

Addresses of all leased
real property: None

 

Description of all “serial number goods” (i.e.,
motor vehicles, trailers, aircraft, boats and outboard motors for boats)  (1):

 

Instruments, Documents of Title and Chattel Paper
of such Debtor in an amount in excess of $1,000,000:

 

	
  Borrowing Entity

  	
   

  	
  Lending Entity

  	
   

  	
  Balance as of December 31,

  2008

  
	
  Smurfit-Stone Container
  Canada Inc.

  	
   

  	
  SLP Finance General
  Partnership

  	
   

  	
  $1,793,288

  $338,439,677 (St. Laurent Acq.)

  

 

(1) As per Section 6(o) hereof, to
be delivered within 20 days of the date of the Canadian Security Agreement.

 

General Security Agreement

 

 

Pledged Certificated Securities(2):

 

	
  Pledged Issuer

  	
   

  	
  Securities
  Owned

  	
   

  	
  % of
  issued and

  outstanding

  Securities of

  Pledged Issuer

  	
   

  	
  Security

  Certificate

  Numbers

  	
   

  	
  Security

  Certificate

  Location

  
	
  Smurfit-Stone Container Canada Inc.

  	
   

  	
  Class D Shares

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  
	
  Francobec Company

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  
	
  605681 N.B. Inc.

  	
   

  	
  ·

  	
   

  	
  100

  	
  %

  	
  ·

  	
   

  	
  ·

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Uncertificated Securities(3):

 

	
  Pledged
  Issuer

  	
   

  	
  Pledged Issuer’s

  Jurisdiction

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding Securities

  of Pledged Issuer

  
	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  

 

Pledged
Securities Accounts: None

 

Pledged Futures Accounts: None

 

Intellectual Property: None

 

(2) To be completed by the Debtor.

(3) To be completed by the
Debtor.

 

2

 

SCHEDULE
A-1

 

DEBTOR
INFORMATION

 

Full legal name: Francobec Company

 

Prior names: N/A

 

Predecessor companies: N/A

 

Jurisdiction of
incorporation, continuance or organization: Nova Scotia

 

Address of chief executive
office: 1000
Chemin de l’Usine, La Tuque, QC G9X3P8

 

Addresses of all places where business is carried
on or tangible Personal Property is kept: 200 Chemin de la Riviere au Lait, Canton de
Vallieres, Haut St. Maurice, QC

 

Addresses of all owned
real property: 200 Chemin de la Riviere au Lait, Canton de Vallieres, Haut St.
Maurice, QC

 

Addresses of all leased
real property: None

 

Description of all “serial number goods” (i.e.,
motor vehicles, trailers, aircraft, boats and outboard motors for boats)  (1):

 

Instruments, Documents of Title and Chattel Paper
of such Debtor in an amount in excess of $1,000,000: None

 

Pledged Certificated
Securities: None

 

Pledged
Securities Accounts: None

 

Pledged Uncertificated
Securities: None

 

Pledged Futures Accounts: None

 

Intellectual Property: None

 

(1) As per Section 6(o) hereof, to
be delivered within 20 days of the date of the Canadian Security Agreement.

 

General Security Agreement

 

 

SCHEDULE
A-1

 

DEBTOR
INFORMATION

 

Full legal name: 605681 N.B. Inc.(1)

 

Prior names: N/A

 

Predecessor companies: N/A

 

Jurisdiction of
incorporation, continuance or organization: New Brunswick

 

Address of chief executive
office: 44
Chipman Hill, Suite 1000, Post Office Box 7289 Stn A, Saint John, NB E2L
4S6

 

Addresses of all places where business is carried
on or tangible Personal Property is kept: None

 

Addresses of all owned real
property: None

 

Addresses of all leased
real property: None

 

Description of all “serial number goods” (i.e.,
motor vehicles, trailers, aircraft, boats and outboard motors for boats)  (2):

 

Instruments, Documents of Title and Chattel Paper
of such Debtor in an amount in excess of $1,000,000: None

 

Pledged Certificated
Securities: None

 

Pledged
Securities Accounts: None

 

Pledged Uncertificated
Securities: None

 

Pledged Futures Accounts: None

 

Intellectual Property: None

 

(1) Company has been liquidated, to be
dissolved.

(2) As per Section 6(o) hereof, to
be delivered within 20 days of the date of the Canadian Security Agreement.

 

General Security Agreement

 

 

EXHIBIT
A

 

FORM OF
SUPPLEMENT

TO

CANADIAN SECURITY AGREEMENT

 

TO:                          JPMORGAN CHASE BANK, N.A.,
as Canadian
Collateral Agent

 

WHEREAS:

 

A.            Reference
is made to the Canadian Security Agreement (the “Security
Agreement”) dated as of [date] entered
into by each of the
Persons identified under the caption “DEBTORS” on the signature pages thereto
and any other Person which thereafter signs a Supplement, in favour of the
Canadian Collateral Agent (for its own benefit and for the ratable benefit of
the other Secured Parties).

 

B.            Smurfit-Stone
Container Corporation, a debtor and debtor-in-possession under Chapter 11 of
the Bankruptcy Code, as the Parent and a U.S. Guarantor, Smurfit-Stone
Container Enterprises, Inc., a debtor and debtor-in-possession under
Chapter 11 of the Bankruptcy Code, as U.S. Borrower, Smurfit-Stone Container
Canada Inc., a company operating pursuant to a proceeding under the CCAA and a
debtor and debtor-in-possession under Chapter 11 of the Bankruptcy Code, the
other Loan Parties party thereto, the Lenders from time to time party thereto,
JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent, and
JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent and
Canadian Collateral Agent, are parties to a credit agreement dated as of the
date hereof (as amended, supplemented, restated or replaced from time to time,
the “Credit Agreement”).

 

C.            Capitalized
terms used but not otherwise defined in this Supplement have the respective
meanings given to such terms in the Security Agreement, including the
definitions of terms incorporated in the Security Agreement by reference to
other agreements.

 

D.            Section 34
of the Security Agreement provides that additional Persons may from time to
time after the date of the Security Agreement become Debtors under the Security
Agreement by executing and delivering to the Canadian Collateral Agent a
supplemental agreement to the Security Agreement in the form of this
Supplement.

 

E.             The
undersigned (the “New Debtor”)
has agreed to become a Debtor under the Security Agreement by executing and
delivering this Supplement to the Canadian Collateral Agent.

 

For good and
valuable consideration, the receipt and sufficiency of which are acknowledged
by the New Debtor, the New Debtor agrees with and in
favour of the Canadian Collateral Agent (for its own benefit and for the
ratable benefit of the Secured Parties) as follows:

 

1.             The New Debtor has received a copy of, and has reviewed,
the Security Agreement and is executing and delivering this Supplement to the
Canadian Collateral Agent pursuant to Section 34 of the Security
Agreement.

 

2.             Effective from and after the date this Supplement is
executed and delivered to the Canadian Collateral Agent by the New Debtor:

 

(a)                                  the New Debtor shall be, and shall be deemed
for all purposes to be, a Debtor under the Security Agreement with the same
force and effect, and subject to the same agreements,

 

General Security Agreement

 

 

representations, indemnities, liabilities, obligations and Security
Interests, as if the New Debtor had been, as of the date of this Supplement, an
original signatory to the Security Agreement as a Debtor; and

 

(b)                                 all Collateral of the New Debtor shall be
subject to the Security Interests granted by the New Debtor as security for the
due payment and performance of the New Debtor’s Canadian Secured Obligations in
accordance with the provisions of the Security Agreement, and such Canadian
Secured Obligations shall be Obligations of the New Debtor.

 

In furtherance of the foregoing, the New
Debtor, as general and continuing collateral security for the due payment and
performance of its Obligations, pledges, mortgages, charges and assigns (by way
of security) to the Canadian Collateral Agent (for its own benefit and for the
ratable benefit of the other Secured Parties), and grants to the Canadian
Collateral Agent (for its own benefit and for the ratable benefit of the other
Secured Parties) a security interest in, the Collateral of the New Debtor.  The terms and provisions of the Security Agreement
are incorporated by reference in this Supplement.

 

3.             The New Debtor represents and
warrants to the Canadian Collateral Agent (for its own benefit and for the
ratable benefit of the other Secured Parties) that each of the representations and warranties
made or deemed to have been made by it under the Security Agreement as a Debtor
are true and correct on the date of this Supplement.

 

4.             All of the information set out in Schedule A with
respect to the New Debtor is accurate and complete.

 

5.             Upon this Supplement bearing the signature of any Person
claiming to have authority to bind the New Debtor coming into the possession of
the Canadian Collateral Agent,
this Supplement and the Security Agreement will be deemed to be finally and
irrevocably executed and delivered by, and be effective and binding on, and
enforceable against, the New Debtor free from any promise or condition
affecting or limiting the liabilities of the New Debtor and the New Debtor
shall be, and shall be deemed for all purposes to be, a Debtor under the
Security Agreement.  No statement,
representation, agreement or promise by any officer, employee or agent of the Canadian
Collateral Agent or any Secured
Party, unless expressly set forth in this Supplement, forms any part of this
Supplement or has induced the New Debtor to enter into this Supplement and the
Security Agreement or in any way affects any of the agreements, obligations or
liabilities of the New Debtor under this Supplement and the Security Agreement.

 

6.             Delivery of an executed signature page to this
Supplement by the New Debtor by facsimile or other electronic transmission
shall be as effective as delivery by the New Debtor of a manually executed copy
of this Supplement by the New Debtor.

 

7.             This Supplement will be governed by and construed in
accordance with the laws of the Province of Ontario, and the laws of Canada
applicable therein.

 

2

 

8.             This Supplement and the Security Agreement shall be
binding upon the New Debtor and its successors. 
The New Debtor shall not assign its rights and obligations under this
Supplement or the Security Agreement, or any of its rights or obligations in
this Supplement or the Security Agreement.

 

	
  Dated: 

  	
  [DATE]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [NEW DEBTOR]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
  Attention:

  	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
   

  	
   

  
	
  E-mail:

  	
   

  	
   

  	
   

  
					

 

3

 

SCHEDULE
A

 

DEBTOR
INFORMATION

 

Full legal name:

 

Prior names:

 

Predecessor companies:

 

Jurisdiction of incorporation, continuance or
organization:

 

Address of chief executive office:

 

Addresses of all places where business is carried
on or tangible Personal Property is kept:

 

Addresses of all owned real property:

 

Addresses of all leased real property:

 

Description of all “serial number goods” (i.e.,
motor vehicles, trailers, aircraft, boats and outboard motors for boats):

 

Instruments, Documents of Title and Chattel Paper
of the Debtor in an amount in excess of $1,000,000:

 

Pledged Certificated Securities:

 

	
  Pledged
  Issuer

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding

  Securities of

  Pledged Issuer

  	
   

  	
  Security Certificate

  Numbers

  	
   

  	
  Security Certificate

  Location

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Securities Accounts:

 

	
  Pledged
  Securities

  Intermediary

  	
   

  	
  Securities Account

  Number

  	
   

  	
  Pledged Securities

  Intermediary’s

  Jurisdiction

  	
   

  	
  Pledged Security Entitlements

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

General Security Agreement

 

 

Pledged Uncertificated
Securities:

 

	
  Pledged Issuer

  	
   

  	
  Pledged Issuer’s

  Jurisdiction

  	
   

  	
  Securities Owned

  	
   

  	
  % of issued and

  outstanding Securities of

  Pledged Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Futures Accounts:

 

	
  Pledged
  Futures

  Intermediary

  	
   

  	
  Futures Account

  Number

  	
   

  	
  Pledged Futures

  Intermediary’s

  Jurisdiction

  	
   

  	
  Pledged Futures Contracts

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Registered trade-marks and applications for
trademark registrations:

 

	
  Country

  	
   

  	
  Trade-mark

  	
   

  	
  Application
  No.

  	
   

  	
  Application
  Date

  	
   

  	
  Registration
  No.

  	
   

  	
  Registration
  Date

  	
   

  	
  Licenced
  to or

  by Debtor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Y/N)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Patents and patent applications:

 

	
  Country

  	
   

  	
  Title

  	
   

  	
  Patent No.

  	
   

  	
  Application

  Date

  	
   

  	
  Date of Grant

  	
   

  	
  Licenced to or

  by Debtor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Y/N)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Copyright registrations and applications for
copyright registrations:

 

	
  Country

  	
   

  	
  Work

  	
   

  	
  Application No.

  	
   

  	
  Application

  Date

  	
   

  	
  Registration No.

  	
   

  	
  Licenced to or

  by Debtor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Y/N)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Industrial designs/registered designs and
applications for registered designs:

 

	
  Country

  	
   

  	
  Design

  	
   

  	
  Application No.

  	
   

  	
  Application Date

  	
   

  	
  Registration No.

  	
   

  	
  Issue Date

  	
   

  	
  Licenced to or

  by Debtor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Y/N)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

2

 

Exhibit C-1

 

Form of Weekly Borrowing Base Certificate

 

 

Smurfit-Stone Container Enterprises, Inc. (as
U.S. Borrower) / Smurfit-Stone Container Canada Inc. (as

Canadian Borrower)

Borrowing Base Certificate

For the period ended               
(in $000’s US Dollars)

 

	
   

  	
   

  	
  US

  	
   

  	
  Canada

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Summary of Availability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A. 

  	
  Available Receivables

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B. 

  	
  Available Inventory (as of period ended        )

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C. 

  	
  PP&E Component (as of period ended             )

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D. 

  	
  Less:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Carve-Out (US Only)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Administration Charge (Canada Only)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Directors Charge (Canada Only)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Priority Payables Reserve (to the extent
  not included in the Administrative or Directors Charges) 

  	
   

  	
  — 

  	
   

  	
  — 

  	
   

  	
  — 

  	
   

  
	
  Other (Per Terms of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E. 

  	
  Available Borrowing Base (lines A + B + C -
  D)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F. 

  	
  Total Commitment

  	
   

  	
  $

  	
  650,000

  	
   

  	
  $

  	
  100,000

  	
   

  	
  $

  	
  750,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G. 

  	
  Lower of Borrowing Base and Total
  Commitment (Lesser of line E or F)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  H. 

  	
  Less:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i)   Revolving Loans

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  (ii)  Letter of Credit
  Obligations

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  (iii) Term Loans Outstanding

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    Aggregate Credit Exposure (Sum of
  (i),(ii) and (iii))

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
  Excess Availability (G - H)

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    Available Cash

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    Excess Availability plus Available
  Cash

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  

 

Officer’s Certification:

 

Pursuant to, and in
accordance with, the terms and provisions of the Credit Agreement dated as of January [
], 2009 (as amended, spuplemented or otherwise modified from time to time, the “Credit
Agreement”; capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Credit Agreement), among Smurfit-Stone Container
Corporation, Smurfit-Stone Container Enterprises, Inc. (the “US Borrower”),
Smurfit-Stone Container Canada Inc. (the (“Canadian Borrower”), the Lenders
party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent and
Collateral Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian
Administrative Agent and Canadian Collateral Agent, the undersigned certifies
on behalf of the US Borrower and Canadian Borrower that the information
provided in this Borrowing Base Certificate (including in any exhibits,
schedules, supporting documentation or reports requested by either Agent in
accordance with the terms of the Credit Agreement) to JPMorgan Chase Bank, N.A.
as Administrative Agents and Collateral Agents, has been determined in
accordance with the Credit Agreement and is accurate and complete.

 

	
   

  	
   

  	
   

  
	
  Signature & Title

  	
   

  	
  Date

  

 

1

 

Smurfit-Stone Container Enterprises, Inc. (as
U.S. Borrower) / Smurfit-Stone Container Canada Inc. (as Canadian Borrower)

Borrowing Base Certificate

For the period ended               
(in $000’s US Dollars)

 

	
   

  	
   

  	
  US

  	
   

  	
  Canada

  	
   

  	
  Grand Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Accounts Receivable per Aging

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less ineligibles:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  No Perfected First Priority Lien

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  No Sole, Lawful, Absolute Title

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Over 90 Days Past Invoice Date

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Credits Over 90 Days Past Invoice Date

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Cross - Aging (Greater than 50% of Total
  Balance Past Due)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Concentration Cap (10% of Eligible Accounts
  Receivable)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  In Excess of Approved Credit Limit

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Does Not Comply With Any Covenant,
  Representation or Warranty of Credit Agreement

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Non-Trade A/R, Progress Billings or
  Un-invoiced

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Bill and Hold / Services Billed Not Yet
  Performed

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Consignment or Guaranteed Sales

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Finance Charges

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Pre-Billed

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Duplicate Billing

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Bankruptcy/Insolvent (Other Than
  Post-Petition)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Written Off or Otherwise Designated
  Uncollectible

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Foreign except Canada (not supported by
  L/C)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Not denominated in US or Canadian Dollars

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  US Federal Government Accounts / Canadian
  Government Accounts (not supported by L/C)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Intercompany / Affiliate / Employee /
  Director A/R

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Contra Exchange

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Contra Unvouchered A/P Reserve - Exchange

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Contra Non-Exchange

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Contra Unvouchered A/P Reserve -
  Non-Exchange (2.63%)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  In dispute or subject to deduction, setoff
  or counterclaim

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Defective Product Reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Evidenced by Promissory Note, Chattel
  Paper, or other instrument

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to Payment Plan

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Reserve for Returns, Discounts, Finance
  Charges, Sales Allowances

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Short Paid Invoices

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Debit Memos / Chargebacks

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Does Not Comply With Requirements of All
  Applicable Laws

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Invoice Does Not Indicate Loan Party as
  Payee or Remittance Party

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Translation Adjustment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Cash in Advance / Cash on Delivery Terms

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Meadwestvaco Accrual

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Customer Rebates

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Unapplied Cash

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total ineligibles:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eligible Accounts

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Advance Rate

  	
   

  	
  85.0

  	
  %

  	
  85.0

  	
  %

  	
  85.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Amount of Eligible Accounts before
  Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dilution Reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Canadian Sales Tax Reserve (to the extent
  not included in the Priority Payables Reserve)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other Reserves (Per Terms of the Credit
  Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total Reserves

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Amount of Eligible Accounts Receivable
  less Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  

 

Translation Adjustment

 

2

 

	
   

  	
  Schedule 1.0

  
	
   

  	
  to Exhibit C-1

  

 

Smurfit-Stone
Container Enterprises, Inc. (as U.S. Borrower) / Smurfit-Stone Container
Canada Inc. (as Canadian Borrower)

Collateral
Monitoring Reporting Requirements

Documents to
be Submitted to the Bank

 

The following information is to be submitted, pursuant to Section 5.08
of the Credit Agreement as noted below.

 

	
   

  	
   

  	
   

  	
  Weekly Reporting: Due the last business

  	
   

  	
  Per terms of Credit

  	
   

  
	
   

  	
  Reporting Frequency

  	
   

  	
  day of each week (a)

  	
   

  	
  Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Borrowing Base Certificate in the form of Exhibit C-2.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Accounts Receivable Supporting Documents:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Accounts
  receivable summary aging in an electronic format suitable to the Collateral
  Agent.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Accounts
  receivable rollforward as follows: A/R Beginning of Month + Gross Billings +
  Other Debit Adjustments - Cash Receipts - Discounts - Credit Memos Issued -
  Write-offs - Returns - Other Credit Adjustments = A/R End of Month (To be calculated without duplication of items
  reported as Ineligible on the Borrowing Base Certificate)

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Top
  10 accounts receivable balances aged per the most recent consolidated summary
  aging (To be provided only if unable to
  provide a summary aging by customer account as per #1).

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Reconciliation
  of A/R aging report to general ledger and financial statements

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Top
  10 sales concentration on a consolidated basis.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Supporting
  documentation (system generated extract report where applicable) for the A/R
  ineligibles/ reserves reported on the Borrowing Base Certificate by division.
  (In a manner mutually agreeable to the
  Borrowers and Administrative Agent)

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Inventory Supporting Documents:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Inventory
  by category (raw material, supplies, WIP and Finished).

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Total
  page of inventory general ledger reports and supporting documentation
  for all inventory categories reported on the Borrowing Base Certificate.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Gross
  margin and turnover by segment as reported to Company Management.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Reconciliation
  of inventory reports to general ledger and financial statements.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Schedule
  of monthly rent for all leased locations (to the extent applicable to the
  Rent Reserve calculated in the Borrowing Base Certificate).

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Supporting
  documentation (system generated extract report where applicable) for the
  inventory ineligibles/ reserves reported on the Borrowing Base Certificate by
  division.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Other Supporting Documents:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Consolidated
  financial statements (to be submitted per terms of the Credit Agreement)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Accounts
  payable summary by vendor.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Top
  10 accounts payable vendor balances (To be
  provided only if unable to provide a summary aging by customer account as per
  #1).

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Top
  10 vendors by total purchases.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Reconciliation
  of A/P aging to general ledger and financial statements.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Projected
  financial statements (to be submitted per terms of the Credit Agreement)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Listing
  to support the Reserve calculations reported on the Borrowing Base
  Certificate, including the Priority Payable Reserve, in a format suitable to
  the Collateral Agent. (In a manner mutually
  agreeable to the Borrowers and Administrative Agent)

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

	
   

  	
  (a) Showing
  the Borrowing Base as of the last business day of the immediately preceding
  week.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

Smurfit-Stone
Container Enterprises, Inc. (as U.S. Borrower) / Smurfit-Stone Container
Canada Inc.

(as Canadian Borrower)

Collateral
Monitoring Reporting Requirements

Documents to
be Submitted to the Bank

 

Submit to:

JPMorgan
Chase Bank

IB
ABL Portfolio Management

Attn:
Robert A. Kaulius

270
Park Avenue, 44th Floor

New
York, NY 10017- 2014

Phone:
(212) 270 - 0285

Fax:
(646) 534 - 2288

E-Mail:
robert.a.kaulius@jpmorgan.com

 

2

 

Exhibit C-2

 

Form of
Monthly Borrowing Base Certificate

 

 

Smurfit-Stone
Container Enterprises, Inc. (as U.S. Borrower) / Smurfit-Stone Container
Canada Inc. (as

Canadian Borrower)

Borrowing Base Certificate

For the period ended            (in
$000’s US Dollars)

 

	
   

  	
   

  	
  US

  	
   

  	
  Canada

  	
   

  	
  Total

  	
   

  
	
     Summary of Availability

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A.

  	
  Available Receivables

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  Available Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
  PP&E Component

  	
   

  	
  135,000

  	
   

  	
  15,000

  	
   

  	
  150,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
  Less:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Carve-Out (US Only)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
  Administration Charge (Canada Only)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
  Directors Charge (Canada Only)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
  Priority Payables Reserve (to the extent not included in the Administrative
  or Directors Charges) 

  	
   

  	
  —
  

  	
   

  	
  —
  

  	
   

  	
  —
  

  	
   

  
	
   

  	
  Other (Per Terms of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
  Available Borrowing Base (lines A + B + C - D)

  	
   

  	
  135,000

  	
   

  	
  15,000

  	
   

  	
  150,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
  Total Commitment

  	
   

  	
  $

  	
  650,000

  	
   

  	
  $

  	
  100,000

  	
   

  	
  $

  	
  750,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G.

  	
  Lower of Borrowing Base and Total Commitment (Lesser of line E or F)

  	
   

  	
  135,000

  	
   

  	
  15,000

  	
   

  	
  150,000

  	
   

  
	
  H.

  	
  Less:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (i) Revolving Loans

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
  (ii) Letter of Credit Obligations

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
  (iii) Term Loans Outstanding

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Aggregate Credit Exposure (Sum of
  (i),(ii) and (iii))

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
  Excess Availability (G - H)

  	
   

  	
  $

  	
  135,000

  	
   

  	
  $

  	
  15,000

  	
   

  	
  $

  	
  150,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Available Cash

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Excess Availability plus Available Cash

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  150,000

  	
   

  

 

	
  Officer’s
  Certification:

  
	
   

  
	
  Pursuant to, and in accordance with, the terms and
  provisions of the Credit Agreement dated as of January [ ], 2009 (as
  amended, spuplemented or otherwise modified from time to time, the “Credit
  Agreement”; capitalized terms used but not defined herein shall have the
  meanings ascribed to such terms in the Credit Agreement), among Smurfit-Stone
  Container Corporation, Smurfit-Stone Container Enterprises, Inc. (the
  “US Borrower”), Smurfit-Stone Container Canada Inc. (the (“Canadian Borrower”),
  the Lenders party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent
  and Collateral Agent, JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian
  Administrative Agent and Canadian Collateral Agent, the undersigned certifies
  on behalf of the US Borrower and Canadian Borrower that the information
  provided in this Borrowing Base Certificate (including in any exhibits,
  schedules, supporting documentation or reports requested by either Agent in
  accordance with the terms of the Credit Agreement) to JPMorgan Chase Bank,
  N.A. as Administrative Agents and Collateral Agents, has been determined in
  accordance with the Credit Agreement and is accurate and complete.

  
	
   

  
	
   

  	
   

  	
   

  
	
  Signature &
  Title

  	
   

  	
  Date

  

 

1

 

Smurfit-Stone Container Enterprises, Inc.
(as U.S. Borrower) / Smurfit-Stone Container Canada Inc. (as Canadian Borrower)

Borrowing Base Certificate

For the period
ended              (in
$000’s US Dollars)

 

	
   

  	
   

  	
  US

  	
   

  	
  Canada

  	
   

  	
  Grand Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross Accounts Receivable per Aging

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less ineligibles:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  No Perfected First Priority Lien

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  No Sole, Lawful, Absolute Title

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Over 90 Days Past Invoice Date

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Credits Over 90 Days Past Invoice Date

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Cross - Aging (Greater than 50% of Total Balance Past Due)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Concentration Cap (10% of Eligible Accounts Receivable)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  In Excess of Approved Credit Limit

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Does Not Comply With Any Covenant, Representation or Warranty of
  Credit Agreement

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Non-Trade A/R, Progress Billings or Un-invoiced

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Bill and Hold / Services Billed Not Yet Performed

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Consignment or Guaranteed Sales

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Finance Charges

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Pre-Billed

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Duplicate Billing

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Bankruptcy/Insolvent (Other Than Post-Petition)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Written Off or Otherwise Designated Uncollectible

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Foreign except Canada (not supported by L/C)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Not denominated in US or Canadian Dollars

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  US Federal Government Accounts / Canadian Government Accounts (not
  supported by L/C)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Intercompany / Affiliate / Employee / Director A/R

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Contra Exchange

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Contra Unvouchered A/P Reserve - Exchange

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Contra Non-Exchange

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Contra Unvouchered A/P Reserve - Non-Exchange (2.63%)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  In dispute or subject to deduction, setoff or counterclaim

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Defective Product Reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Evidenced by Promissory Note, Chattel Paper, or other instrument

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to Payment Plan

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Reserve for Returns, Discounts, Finance Charges, Sales Allowances

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Short Paid Invoices

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Debit Memos / Chargebacks

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Does Not Comply With Requirements of All Applicable Laws

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Invoice Does Not Indicate Loan Party as Payee or Remittance Party

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Translation Adjustment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Cash in Advance / Cash on Delivery Terms

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Meadwestvaco Accrual

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Customer Rebates

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Unapplied Cash

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Discount reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total ineligibles:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Eligible Accounts

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Advance Rate

  	
   

  	
  85.0

  	
  %

  	
  85.0

  	
  %

  	
  85.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Amount of Eligible Accounts before Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dilution Reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Canadian sales tax reserve (to the extent not included in the
  Priority Payables Reserve)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other Reserves (Per Terms of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total Reserves

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Amount of Eligible Accounts Receivable less
  Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  

 

	
  Translation
  Adjustment

  

 

2

 

Smurfit-Stone Container Enterprises, Inc. (as U.S. Borrower) /
Smurfit-Stone Container Canada Inc. (as Canadian Borrower)

Borrowing Base Certificate

For the period ended                           (in $000’s US
Dollars)

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  US Inventory

  	
   

  
	
   

  	
   

  	
  Container
  Division

  	
   

  	
  Mill Division

  	
   

  
	
   

  	
   

  	
  Raw Material

  	
   

  	
  Chemicals

  	
   

  	
  Fuels

  	
   

  	
  Supplies

  	
   

  	
  Work-in-

  Process

  	
   

  	
  Finished

  Goods

  	
   

  	
  Inventory
  in-

  transit

  	
   

  	
  Total

  	
   

  	
  Raw Material

  	
   

  	
  Chemicals

  	
   

  	
  Fuels

  	
   

  	
  Supplies

  	
   

  	
  Consigned

  	
   

  	
  WIP

  	
   

  	
  Finished

  Goods

  	
   

  	
  Inventory
  in-

  transit

  	
   

  	
  Total

  	
   

  	
  Subtotal

  	
   

  
	
  Inventory per
  inventory summary

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Foreign currency
  adjustment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Gross
  Inventory per Perpetual / Listing

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less ineligibles:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  No Perfected
  First Priority Lien

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  No valid
  unencumbered title

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Obsolete, Slow
  Moving, Unmerchantable or Unfit for Sale

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Does Not Comply
  With Any Covenant, Representation or Warranty of Credit Agreement

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to Third
  Party Security Interest

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Packaging
  Materials / Shipping Materials / Manufacuring Supplies

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Damaged or Marked
  for Return to Vendor

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Consigned
  Inventory (with Company as Consignor or Consignee)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Bill and Hold
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Sample,
  Prototype, Display Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Foreign (not
  located in US - Excluding In-Transit between Loan Parties)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Third Party
  Warehouse / Bailee Location - No Landlord Lien Waiver, No Rent Reserve or No
  Assigned Access Rights

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Located at
  Outside Processor (Excluding Eligible In-Transit Inventory)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Discontinued
  Products

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to
  Proprietary Rights (licenses, patents, trademarks, etc.) Deemed by Collateral
  Agent to Impede Ability to Sell or Dispose of Such Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Not Included in a
  Current Perpetual Report

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to
  Reclamation Rights Asserted by the Seller

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Intercompany
  Profit (to the extent of such portion)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Starch Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Reclamation
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Chemicals
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Fuels Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Pulp in Europe

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms
  of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total
  ineligibles:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Eligible
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
    (i) Advance
  Rate

  	
   

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  N/A

  	
   

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
  NOLV Factor Rate

  	
   

  	
  72.4

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  43.1

  	
  %

  	
  53.4

  	
  %

  	
  86.3

  	
  %

  	
  72.4

  	
  %

  	
  N/A

  	
   

  	
  58.7

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  42.1

  	
  %

  	
  80.8

  	
  %

  	
  58.7

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
    (ii) 85% of NOLV Factor Rate

  	
   

  	
  61.5

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  36.6

  	
  %

  	
  45.4

  	
  %

  	
  73.4

  	
  %

  	
  61.5

  	
  %

  	
  #DIV/0!

  	
   

  	
  49.9

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  35.8

  	
  %

  	
  68.7

  	
  %

  	
  49.9

  	
  %

  	
  #DIV/0!

  	
   

  	
  N/A

  	
   

  
	
  Lesser of
  (i) or (ii)

  	
   

  	
  61.5

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  36.6

  	
  %

  	
  45.4

  	
  %

  	
  65.0

  	
  %

  	
  61.5

  	
  %

  	
  #DIV/0!

  	
   

  	
  49.9

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  35.8

  	
  %

  	
  65.0

  	
  %

  	
  49.9

  	
  %

  	
  #DIV/0!

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Amount of
  Eligible Inventory

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less Inventory
  Reserves:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rent Reserve -
  Warehouse

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Rent Reserve -
  Facility

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Rent Reserve -
  In/Out Charges

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Freight Reserve
  (related to In-Transit Inventory-Container)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Freight Reserve
  (related to In-Transit Inventory-Board Sales)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms
  of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total Inventory
  Reserves:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net
  Amount of Eligible Inventory less Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

3

 

Smurfit-Stone Container Enterprises, Inc. (as U.S. Borrower) /
Smurfit-Stone Container Canada Inc. (as Canadian Borrower)

Borrowing Base Certificate

For the period ended
                    
(in $000’s US Dollars)

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  US Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Reclamation Division

  	
   

  	
  Board Sales Division

  	
   

  	
  Corporate

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Supplies

  	
   

  	
  Work-in-

  Process

  	
   

  	
  Finished

  Goods

  	
   

  	
  Inventory
  in-

  transit

  	
   

  	
  Total

  	
   

  	
  Finished

  Goods

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  SubTotal

  	
   

  
	
  Inventory per inventory summary

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Foreign currency adjustment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Gross Inventory per Perpetual / Listing

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less ineligibles:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  No Perfected First Priority Lien

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  No valid unencumbered title

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Obsolete, Slow Moving, Unmerchantable or Unfit for Sale

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Does Not Comply With Any Covenant, Representation or Warranty of
  Credit Agreement

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to Third Party Security Interest

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Packaging Materials / Shipping Materials / Manufacuring Supplies

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Damaged or Marked for Return to Vendor

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Consigned Inventory (with Company as Consignor or Consignee)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Bill and Hold Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Sample, Prototype, Display Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Foreign (not located in US - Excluding In-Transit between Loan
  Parties)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Third Party Warehouse / Bailee Location - No Landlord Lien Waiver, No
  Rent Reserve or No Assigned Access Rights

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Located at Outside Processor (Excluding Eligible In-Transit
  Inventory)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Discontinued Products

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to Proprietary Rights (licenses, patents, trademarks, etc.)
  Deemed by Collateral Agent to Impede Ability to Sell or Dispose of Such
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Not Included in a Current Perpetual Report

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to Reclamation Rights Asserted by the Seller

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Intercompany Profit (to the extent of such portion)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Starch Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Reclamation Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Chemicals Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Fuels Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Pulp in Europe

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total ineligibles:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Eligible Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Advance Rate

  	
   

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  N/A

  	
   

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
    NOLV Factor Rate

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  N/A

  	
   

  	
  80.8

  	
  %

  	
  80.8

  	
  %

  	
  75.7

  	
  %

  	
  N/A

  	
   

  
	
  (ii) 85% of NOLV Factor Rate

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  68.7

  	
  %

  	
  68.7

  	
  %

  	
  64.3

  	
  %

  	
  #DIV/0!

  	
   

  
	
  Lesser of (i) or (ii)

  	
   

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  N/A

  	
   

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  64.3

  	
  %

  	
  #DIV/0!

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Amount of Eligible Inventory

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less Inventory Reserves:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rent Reserve - Warehouse

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Rent Reserve - Facility

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Rent Reserve - In/Out Charges

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Freight Reserve (related to In-Transit Inventory-Container)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Freight Reserve (related to In-Transit Inventory-Board Sales)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
  0

  	
  —

  	
   

  
	
  Total Inventory Reserves:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Amount of Eligible Inventory less Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  

 

4

 

Smurfit-Stone Container Enterprises, Inc. (as U.S.
Borrower) / Smurfit-Stone Container Canada Inc. (as Canadian Borrower)

Borrowing Base Certificate

For the period ended                (in
$000’s US Dollars)

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Exchange
  Rate

  	
   

  	
  Exchange Rate

  	
   

  	
  $

  	
  —

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Canadian
  Inventory

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Container
  Division

  	
   

  	
  Mill
  Division

  	
   

  	
  Corporate

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Raw Material

  	
   

  	
  Chemicals

  	
   

  	
  Fuels

  	
   

  	
  Supplies

  	
   

  	
  Work-in-

  Process

  	
   

  	
  Finished

  Goods

  	
   

  	
  Inventory
  in-

  transit

  	
   

  	
  Total

  	
   

  	
  Raw Material

  	
   

  	
  Chemicals

  	
   

  	
  Fuels

  	
   

  	
  Supplies

  	
   

  	
  Consigned

  	
   

  	
  Work-in-

  Process

  	
   

  	
  Finished

  Goods

  	
   

  	
  Inventory
  in-

  transit

  	
   

  	
  Total

  	
   

  	
  Total

  	
   

  	
  Grand Total

  	
   

  
	
  Inventory per
  inventory summary

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Foreign currency
  adjustment

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Gross
  Inventory per Perpetual / Listing

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
   

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less
  ineligibles:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  No Perfected
  First Priority Lien

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  No valid
  unencumbered title

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Obsolete, Slow
  Moving, Unmerchantable or Unfit for Sale

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Does Not Comply
  With Any Covenant, Representation or Warranty of Credit Agreement

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to Third
  Party Security Interest

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Packaging
  Materials / Shipping Materials / Manufacuring Supplies

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Damaged or Marked
  for Return to Vendor

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Consigned
  Inventory (with Company as Consignor or Consignee)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Bill and Hold
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Sample,
  Prototype, Display Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Foreign (not
  located in US - Excluding In-Transit between Loan Parties)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Third Party
  Warehouse / Bailee Location - No Landlord Lien Waiver, No Rent Reserve or No
  Assigned Access Rights

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Located at
  Outside Processor (Excluding Eligible In-Transit Inventory)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Discontinued
  Products

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to
  Proprietary Rights (licenses, patents, trademarks, etc.) Deemed by Collateral
  Agent to Impede Ability to Sell or Dispose of Such Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Not Included in a
  Current Perpetual Report

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Subject to
  Reclamation Rights Asserted by the Seller

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Intercompany
  Profit (to the extent of such portion)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Starch Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Reclamation
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Chemicals
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Fuel Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Pulp in Europe

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms
  of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total
  ineligibles:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Eligible
  Inventory

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) Advance
  Rate

  	
   

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  N/A

  	
   

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  65.0

  	
  %

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  
	
  NOLV Factor Rate

  	
   

  	
  68.6

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  43.1

  	
  %

  	
  53.4

  	
  %

  	
  87.9

  	
  %

  	
  68.6

  	
  %

  	
  N/A

  	
   

  	
  60.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  42.1

  	
  %

  	
  61.6

  	
  %

  	
  60.2

  	
  %

  	
  N/A

  	
   

  	
  72.5

  	
  %

  	
  N/A

  	
   

  
	
  (ii) 85% of
  NOLV Factor Rate

  	
   

  	
  58.3

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  36.6

  	
  %

  	
  45.4

  	
  %

  	
  74.7

  	
  %

  	
  58.3

  	
  %

  	
  #DIV/0!

  	
   

  	
  51.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  35.8

  	
  %

  	
  52.4

  	
  %

  	
  51.2

  	
  %

  	
  #DIV/0!

  	
   

  	
  61.6

  	
  %

  	
  #DIV/0!

  	
   

  
	
  Lesser of
  (i) or (ii)

  	
   

  	
  58.3

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  36.6

  	
  %

  	
  45.4

  	
  %

  	
  65.0

  	
  %

  	
  58.3

  	
  %

  	
  #DIV/0!

  	
   

  	
  51.2

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  0.0

  	
  %

  	
  35.8

  	
  %

  	
  52.4

  	
  %

  	
  51.2

  	
  %

  	
  #DIV/0!

  	
   

  	
  61.6

  	
  %

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net Amount of
  Eligible Inventory before Inventory Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less Inventory
  Reserves:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rent Reserve -
  Warehouse

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Rent Reserve -
  Facility

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Rent Reserve -
  In/Out Charges

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Freight Reserve
  (related to In-Transit Inventory-Container)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Shrink Reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Capitalized
  Variance Reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Lower of Cost or
  Market Reserve

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms
  of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Total Inventory
  Reserves:

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net
  Amount of Eligible Inventory less Reserves

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  —

  	
   

  

 

5

 

Smurfit-Stone Container Enterprises, Inc. (as U.S.
Borrower) / Smurfit-Stone Container Canada Inc. (as Canadian Borrower)
Borrowing Base Certificate

For the period ended
                                  
(in $000’s US Dollars)

 

	
  PP&E Component

  	
   

  	
  US

  	
   

  	
  Canada

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lesser of (a) and (b):

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (a)

  	
   

  	
  $

  	
  150,000

  	
   

  	
  $

  	
  15,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i) 50% of the NOLV of Eligible Equipment plus, 50% of the FMV
  of Eligible Real Property 

  	
   

  	
  —
  

  	
   

  	
  —
  

  	
   

  
	
  (ii) 20% of the NOLV In Place of Eligible Equipment and Eligible
  Real Property 

  	
   

  	
  —
  

  	
   

  	
  —
  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iii) Less:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Environmental Reserves

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Other (Per Terms of the Credit Agreement)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater of (i) or (ii) less (iii)

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Canadian PP&E Component

  	
   

  	
  $

  	
  15,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Available PP&E Component

  	
   

  	
  $

  	
  135,000

  	
   

  	
  $

  	
  15,000

  	
   

  

 

6

 

	
   

  	
  Schedule 1.0

  
	
   

  	
  to Exhibit C-2

  

 

Smurfit-Stone
Container Enterprises, Inc. (as U.S. Borrower) / Smurfit-Stone Container Canada
Inc. (as Canadian Borrower)

Collateral
Monitoring Reporting Requirements

Documents to
be Submitted to the Bank

 

The following information is to be
submitted, pursuant to Section 5.08 of the Credit Agreement as noted below.

 

	
   

  	
  Reporting Frequency
  

  	
   

  	
  Monthly
  Reporting: Due within 15

  calendar days of each fiscal month end (a)

  	
   

  	
  Per terms of Credit

  Agreement 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Borrowing Base Certificate in the form of Exhibit C-1.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Accounts Receivable Supporting Documents:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Accounts receivable summary aging in an electronic format suitable to
  the Collateral Agent.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. 

  	
  Accounts receivable
  rollforward as follows: A/R Beginning of Month + Gross Billings + Other Debit
  Adjustments - Cash Receipts - Discounts - Credit Memos Issued - Write-offs -
  Returns - Other Credit Adjustments = A/R End of Month (To be calculated without duplication of items
  reported as Ineligible on the Borrowing Base Certificate)  

  	
   

  	
  X 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Top 10 accounts receivable
  balances aged per the most recent consolidated summary aging (To be provided only if unable to provide a summary
  aging by customer account as per #1). 

  	
   

  	
  X 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Reconciliation of A/R aging report to general ledger and financial
  statements 

  	
   

  	
  X
  (as soon as available, but no later than

  30 days after each fiscal month end) 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Top 10 sales concentration on a consolidated basis.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Supporting documentation
  (system generated extract report where applicable) for the A/R ineligibles/
  reserves reported on the Borrowing Base Certificate by division. (In a manner mutually agreeable to the Borrowers and
  Administrative Agent) 

  	
   

  	
  X 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Inventory Supporting Documents:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Inventory by category (raw material, supplies, WIP and Finished).

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Total page of inventory general ledger reports and supporting
  documentation for all inventory categories reported on the Borrowing Base
  Certificate.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Gross margin and turnover by segment as reported to Company
  Management.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Reconciliation of inventory reports to general ledger and financial
  statements. 

  	
   

  	
  X
  (as soon as available, but no later than

  30 days after each fiscal month end) 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Schedule of monthly rent for all leased locations (to the extent
  applicable to the Rent Reserve calculated in the Borrowing Base Certificate).

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Supporting documentation
  (system generated extract report where applicable) for the inventory
  ineligibles/ reserves reported on the Borrowing Base Certificate by division.
  

  	
   

  	
  X 

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Other Supporting Documents:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Consolidated financial statements (to be submitted per terms of the
  Credit Agreement)

  	
   

  	
   

  	
   

  	
  X

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Accounts payable summary by vendor.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Top 10 accounts payable vendor balances (To be provided only if unable to provide a summary aging by customer
  account as per #1).

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Top 10 vendors by total purchases.

  	
   

  	
  X

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Reconciliation of A/P aging to general ledger and financial
  statements.

  	
   

  	
  X
  (as soon as available, but no later than

  30 days after each fiscal month end)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Projected financial statements (to be submitted per terms of the
  Credit Agreement)

  	
   

  	
   

  	
   

  	
  X

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Listing to support the
  Reserve calculations reported on the Borrowing Base Certificate, including
  the Priority Payable Reserve, in a format suitable to the Collateral Agent. (In a manner mutually agreeable to the Borrowers and
  Administrative Agent) 

  	
   

  	
  X 

  	
   

  	
   

  	
   

  

 

	
   

  	
  (a) Showing the Borrowing Base as of the last day of the immediately
  preceding fiscal month.

  

 

 

 

Smurfit-Stone Container Enterprises, Inc. (as U.S.
Borrower) / Smurfit-Stone Container Canada Inc. (as Canadian Borrower)

Collateral Monitoring Reporting Requirements

Documents to be Submitted to the Bank

 

Submit to:

JPMorgan
Chase Bank

IB
ABL Portfolio Management

Attn:
Robert A. Kaulius

270
Park Avenue, 44th Floor

New
York, NY 10017- 2014

Phone:
(212) 270 - 0285

Fax:
(646) 534 - 2288

E-Mail: robert.a.kaulius@jpmorgan.com

 

2

 

Exhibit D-1

 

	
   

  

   

  	
   

  	
  SIDLEY
  AUSTIN LLP

  787
  SEVENTH AVENUE

  NEW
  YORK, NY 10019

  (212)
  839 5300

  (212)
  839 5599 FAX

  	
   

  	
  BEIJING

  BRUSSELS

  CHICAGO

  DALLAS

  FRANKFURT

  GENEVA

  HONG
  KONG

  LONDON

  	
   

  	
  LOS
  ANGELES

  NEW
  YORK

  SAN
  FRANCISCO

  SHANGHAI

  SINGAPORE

  SYDNEY

  TOKYO

  WASHINGTON,
  D.C.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  FOUNDED
  1866

  	
   

  	
   

  

 

January 28,
2009

 

Those Institutions Listed on

  Schedule I
Attached Hereto

 

Re:                               DIP Credit Agreement of Smurfit-Stone
Container Enterprises, Inc.

 

Ladies
and Gentlemen:

 

We have acted as counsel to Smurfit-Stone Container
Enterprises, Inc., a Delaware corporation (the “U.S. Borrower”),
and a debtor and debtor in possession in a case jointly administered with the
cases of the U.S. Borrower’s parent, Smurfit-Stone Container Corporation (the “Parent”),
and the direct and indirect Subsidiaries of the Parent and the U.S. Borrower
listed on Schedule II (together with the U.S. Borrower and the Parent,
the “Loan Parties”), pending under Chapter 11 of the Bankruptcy Code,
commenced in the United States Bankruptcy Court for the District of Delaware
(collectively, the “Chapter 11 Cases”), in connection with the
Credit Agreement, dated as of January 28, 2009 (the “DIP Credit
Agreement”), among the Parent, the U.S. Borrower, Smurfit-Stone Container
Canada Inc. (the “Canadian Borrower”), certain of the Loan Parties, the
financial institutions party thereto (the “Lenders”) and JPMorgan Chase
Bank, N.A., as Administrative Agent and Collateral Agent (in such capacity, the
“Agent”), and the transactions contemplated thereby.  The Loan Parties identified on Schedule
III hereto are hereinafter referred to as the “Delaware Loan Parties”.  Calpine Corrugated, LLC, a
California limited liability company, is hereinafter referred to as the “California
Loan Party”.  Cameo Container
Corporation, an Illinois corporation, is hereinafter referred to as the “Illinois
Loan Party”.  This opinion letter is furnished to you at
the request of the U.S. Borrower pursuant to Section 4.1(e) of
the DIP Credit Agreement.  Capitalized
terms not otherwise defined herein have the meanings specified in the DIP
Credit Agreement.

 

In connection with this opinion letter, we have examined originals, or
copies certified or otherwise identified to our satisfaction, of the following:

 

(i)                                     the DIP Credit Agreement;

 

(ii)                                  the Security and Pledge Agreement, dated
as of January 28, 2009, by and among each of the Loan Parties organized
under the laws of the United States or a political subdivision thereof and the
Agent;

 

Sidley Austin LLP is a
limited liability partnership practicing in affiliation with other Sidley
Austin partnerships

 

 

(iii)                               copies, certified by the Secretary of
State of the State of Delaware (the “Delaware Secretary of State”), to
be true and correct copies of the certificates of incorporation, together with
all amendments thereto, of each of the Delaware Loan Parties on file in the
office of the Delaware Secretary of State;

 

(iv)                              copies, certified by the Secretary of
State of the State of California (the “California Secretary of State”),
to be true and correct copies of the articles of organization, together with
all amendments thereto, of the California Loan Party on file in the office of
the California Secretary of State;

 

(v)                                 copies, certified by the Secretary of
State of the State of Illinois (the “Illinois Secretary of State”), to
be true and correct copies of the articles of incorporation, together with all
amendments thereto, of the Illinois Loan Party on file in the office of the
Illinois Secretary of State;

 

(vi)                              good-standing certificates of the
Delaware Secretary of State with respect to the good standing of each of the
Delaware Loan Parties;

 

(vii)                           a certificate of status of the California
Secretary of State with respect to the good standing of the California Loan
Party;

 

(viii)                        a good-standing certificate of the
Illinois Secretary of State with respect to the good standing of the Illinois
Loan Party;

 

(ix)                                copies of the by-laws of each of the
Delaware Loan Parties, certified by the secretary of such Delaware Loan Party
to be a true and correct copy of the by-laws of such Delaware Loan Party in
effect at the time of the adoption of the resolutions referred to in clause
(xii);

 

(x)                                   a copy of the operating agreement of the
California Loan Party, certified by the secretary of the California Loan Party
to be a true and correct copy of the operating agreement of the California Loan
Party in effect at the time of the adoption of the resolutions referred to in
clause (xiii);

 

(xi)                                a copy of the by-laws of the Illinois
Loan Party, certified by the secretary of the Illinois Loan Party to be a true
and correct copy of the by-laws of the Illinois Loan Party in effect at the
time of the adoption of the resolutions referred to in clause (xiv);

 

(xii)                             copies of the resolutions adopted by the
board of directors of each Delaware Loan Party, certified by the secretary of
such Delaware Loan Party to be true and correct copies of all resolutions
adopted by such board of directors relating to the Transaction Documents and
the transactions contemplated thereby;

 

2

 

(xiii)                          copies of the resolutions adopted by the
Management Committee of the California Loan Party, certified by the secretary
of the California Loan Party to be true and correct copies of all resolutions
adopted by the Management Committee relating to the Transaction Documents and
the transactions contemplated thereby;

 

(xiv)                         copies of the resolutions adopted by the
board of directors of the Illinois Loan Party, certified by the secretary of
the Illinois Loan Party to be true and correct copies of all resolutions
adopted by such board of directors relating to the Transaction Documents and
the transactions contemplated thereby;

 

(xv)                            certificates of the secretary of each
Delaware Loan Party as to, among other things, the charter documents and
by-laws of such Delaware Loan Party, and the incumbency of the parties
executing any Transaction Documents on behalf of such Delaware Loan Party;

 

(xvi)                         certificates of the secretary of the
California Loan Party as to, among other things, the charter documents and
operating agreement of the California Loan Party, and the incumbency of the
parties executing any Transaction Documents on behalf of the California Loan
Party;

 

(xvii)                      certificates of the secretary of the
Illinois Loan Party as to, among other things, the charter documents and
by-laws of the Illinois Loan Party, and the incumbency of the parties executing
any Transaction Documents on behalf of the Illinois Loan Party;

 

(xviii)                   the order entered by the Bankruptcy Court on January 27,
2009 (the “Order”), a copy of which is attached hereto as Exhibit A,
approving, among other things, the execution, delivery and performance by the
Loan Parties of the Transaction Documents; and

 

(xix)                           a certified copy, dated January 28,
2009, of the docket of the Clerk of the Bankruptcy Court for the District of
Delaware in the jointly administered cases captioned In re Smurfit-Stone
Container Corporation, et al., Case No. 09-10235 (BLS) (the “Docket”).

 

The documents referred to in clauses (i) and (ii) above
are hereinafter collectively referred to as the “Transaction Documents”.  “Applicable Law” means those laws, rules and
regulations of the State of New York, the State of California, the State of
Illinois, and the United States of America that in our experience, are normally
applicable to transactions of the type contemplated by the Transaction
Documents and to companies engaged in the same line of business as the Loan
Parties, without our having made any special investigation as to the
applicability of any specific law, rule or regulation.

 

3

 

In rendering the opinions set forth herein, we have also (a) examined
and relied on originals, or copies certified or otherwise identified to our
satisfaction, of such (i) certificates of public officials, (ii) certificates
and representations of officers and representatives of the Loan Parties, and (iii) other
documents and records, and (b) made such inquiries of officers and
representatives of the Loan Parties, as we have deemed relevant or necessary as
the basis for such opinions.  We have
relied upon, and assumed the accuracy of, all such certificates and
representations, documents and records and the representations and warranties
made by the Loan Parties in the Transaction Documents, in each case with
respect to the factual matters set forth therein, and that all certificates and
information received from public officials earlier than the date of this
opinion letter continue to be accurate as though issued on the date hereof. We
have assumed the genuineness of all signatures, the authenticity of all
documents submitted to us as originals, the conformity to original documents of
all copies submitted to us as certified or photostatic copies, and the
authenticity of the originals of such copies and the legal capacity of all
natural persons.  In rendering the
opinions set forth herein we have also assumed that there are no written or
oral terms and conditions agreed to by the Agent or any of the Lenders on the
one hand and the U.S. Borrower or any of the other Loan Parties on the other
which vary the accuracy, completeness, correctness, validity or effect of the
Transaction Documents.

 

In rendering the opinions set forth herein, we have assumed that:

 

(i)                                     all parties (other than the Delaware Loan
Parties, the California Loan Party, and the Illinois Loan Party) to the
Transaction Documents (the “Non-Delaware/California/Illinois Loan Parties”)
are duly organized, validly existing, and in good standing under the laws of their
respective jurisdictions of organization and have the requisite corporate,
banking or other organizational power (as applicable) to enter into such
Transaction Documents; and

 

(ii)                                  the execution and delivery of the
Transaction Documents have been duly authorized by all necessary corporate,
banking or other organizational action (as applicable) and proceedings on the
part of all such Non-Delaware/California/Illinois Loan Parties; the Transaction
Documents have been duly executed and delivered by all such
Non-Delaware/California/Illinois Loan Parties and the Transaction Documents
constitute the valid and binding obligations of such parties, enforceable
against such parties in accordance with their respective terms; the respective
terms and provisions of each of the Transaction Documents do not, and the
execution and delivery thereof by each of such parties and performance of its
obligations thereunder will not, (a) violate the articles or certificate
of incorporation or other charter document or by-laws or other organizational
or similar document of such Non-Delaware/California/Illinois Loan Party or any
law, order or decree of any court, administrative agency or other governmental
authority binding on such party, or (b) result in a breach of or cause a
default under any contract or indenture to which it is a party or by which it
is bound, provided that no such 

 

4

 

assumption is made in this clause (b) with
respect to any contract or indenture that was entered into or arose prior to
the date of the commencement of the Chapter 11 Cases.

 

(iii)                               the
Administrative Agent, the Collateral Agent, the Syndication Agent, the Co-Lead
Arrangers, each Lender
and each other agent, arranger, and bookrunner subject to the Transaction
Documents has the requisite power and authority, has obtained all necessary
consents, licenses and permits (including, but not limited to, to the extent
necessary, a license under the California Finance Lender’s Law (California
Financial Code Sections 22000, et seq.)), has
taken all necessary action and has complied with any and all applicable laws
with which the Administrative Agent, the Collateral Agent, the Syndication
Agent, the Co-Lead Arrangers, each such Lender or each such other agent, arranger
or bookrunner, as applicable, is required to comply, in each case relating to
or affecting the matters and actions contemplated by the Transaction
Documents.  In making such assumption, we
are not rendering any opinion with respect to the Administrative Agent, the
Collateral Agent, the Syndication Agent, the Co-Lead Arrangers, any Lender or
any other agent, arranger or bookrunner, or any of the Transaction Documents
under the California Finance Lender’s Law or any other law applicable to any
such person with respect to the Transaction Documents.

 

(iv)                              We have assumed
that the California Loan Party is not engaged in rendering “professional
services” as that term is defined in Section 13401(a) of the
California Corporations Code.

 

Based upon the foregoing and subject to the qualifications stated
herein, we are of the opinion that, as of the date hereof:

 

1.                                       Each of the Delaware Loan Parties is
existing and in good standing under the laws of the State of Delaware, with the
corporate power to own its properties and conduct its business as such
properties are presently owned and such business is presently conducted as
described in the “Affidavit of Charles A. Hinrichs in Support of First Day
Motions” filed in the Chapter 11 Cases with the Bankruptcy Court on January 26,
2009 (the “Affidavit”),
and to perform its obligations under the Transaction Documents to which it is a
party.   Each of the Delaware Loan
Parties has the requisite corporate power and authority to execute and deliver
each Transaction Document to which it is a party and to perform its obligations
under such Transaction Documents.  Such
execution, delivery and performance: (i) have been duly authorized by all
necessary corporate action on the part of each Delaware Loan Party and do not
require any approval of such Delaware Loan Party’s equity holders except such
approvals as have been obtained; and (ii) do not violate any provision of
the certificate of incorporation or the by-laws of any Delaware Loan Party.

 

2.                                       The California Loan Party is existing in
good standing under the laws of the State of California, with the limited
liability company power to own its properties and 

 

5

 

conduct its
business as such properties are presently owned and such business is presently
conducted as described in the Affidavit, and to perform its obligations under the
Transaction Documents to which it is a party. 
The California Loan Party has the requisite limited liability company
power and authority to execute and deliver each Transaction Document to which
it is a party and to perform its obligations under such Transaction
Documents.  The Transaction Documents
have been duly authorized by all necessary limited liability company action on
the part of the California Loan Party. 
The execution and delivery of the Transaction Documents and the
performance by the California Loan Party of its obligations under the
Transaction Documents do not violate any provision of the articles of organization
or the operating agreement of the California Loan Party or require any approval
of the members of the California Loan Party except such approvals as have been
obtained.

 

3.                                       The Illinois Loan Party is existing and
in good standing under the laws of the State of Illinois, with the corporate
power to own its properties and conduct its business as such properties are
presently owned and such business is presently conducted as described in the Affidavit, and to execute and deliver each
Transaction Document to which it is a party and to perform its obligations
under such Transaction Documents.   The
Illinois Loan Party has the requisite corporate power and authority to execute
and deliver each Transaction Document to which it is a party and to perform its
obligations under such Transaction Documents. 
Such execution, delivery and performance: (i) have been duly
authorized by all necessary corporate action on the part of the Illinois Loan
Party and does not require any approval of the Illinois Loan Party’s equity
holders except such approvals as have been obtained; and (ii) do not
violate any provision of the articles of incorporation or the by-laws of the
Illinois Loan Party.

 

4.                                       The execution and delivery by each of the
Loan Parties of each of the Transaction Documents to which it is a party, and
the performance by each of the Loan Parties of each of the Transaction
Documents to which it is a party, assuming each Secured Party and each Loan
Party will comply with the provisions of the Transaction Documents, will not
violate any Applicable Law of the State of New York, Applicable Law of the
State of California, and Applicable Law of the State of Illinois (including,
without limitation, any usury laws) or any Applicable Law of the United States
of America (including, without limitation, Regulations T, U and X) applicable
to the Loan Parties.

 

5.                                       Subject to the exercise by the Bankruptcy
Court of its jurisdiction over the Chapter 11 Cases, and in reliance thereon
and based upon our review of the Docket as it existed as of 9:10 a.m.
(Delaware time) on January 28, 2009, (a) we believe that the Order is
in full force and effect and (b) no order amending, staying, vacating,
rescinding or reversing the Order has been entered by the Bankruptcy Court.

 

6.                                       Subject to the exercise by the Bankruptcy
Court of its jurisdiction over the Chapter 11 Cases, and in reliance thereon,
as of the date hereof, each Transaction Document is a 

 

6

 

valid and binding
obligation of each Loan Party enforceable against such Loan Party in accordance
with its terms and the terms of the Order.

 

7.                                       Each Transaction Document is, to the
extent that it relates to matters other than those arising under Bankruptcy Law
(as defined below) or arising in or related to the Chapter 11 Cases, a valid and
binding obligation of each Loan Party, enforceable under applicable New York
law against each such Loan Party in accordance with its terms.

 

8.                                       No Government Approvals (as defined
below) under Applicable Laws are required to be obtained or made by any Loan
Party in connection with the due execution and delivery of, or performance by,
any Loan Party of its obligations under the Transaction Documents that have not
been obtained or made, other than the entry of the Order.  “Government
Approvals” means any order, consent, approval, license, authorization, or
validation of, or filing, recording or registration with, or exemption by, any
New York state court, Illinois state court, California state court, or federal
court, or any governmental body or authority or subdivision thereof, in the
State of New York, the State of California, the State of Illinois or in the
United States of America pursuant to any Applicable Laws.

 

Our opinions above are subject to the following qualifications:

 

(a)                                  Our opinions are subject to limitations
imposed by any applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium and similar laws affecting creditors’ rights generally
and the effect of general principles of equity (regardless of whether
considered in a proceeding in equity or at law).  In addition, a court or governmental
authority (such as the Securities and Exchange Commission) may refuse to
enforce a provision of a Transaction Document if it deems such provision to
violate public policy, including any provision indemnifying a party against, or
exculpating a party from, liability for its own wrongful or negligent
acts.  In addition, we note that a court
may refuse to enforce a provision for the payment of attorney’s fees except to
the extent it determines such fees to be reasonable.

 

(b)                                 Certain remedial provisions of the
Transaction Documents may be unenforceable in whole or in part, but the
inclusion of such provisions does not affect the validity of the remaining
provisions of the Transaction Documents; however, the unenforceability of such
provisions may result in delays in the enforcement of the Agent’s rights and
remedies under the Transaction Documents (and we express no opinion as to the
economic consequences, if any, of such delays). 
Subject to subparagraph (a) above, the Transaction Documents
contain adequate provisions for enforcing payment of the Obligations.

 

(c)                                  We express no opinion as to the effect of
(i) the compliance or noncompliance of the Agent or any Lender with any
state or federal laws or regulations applicable to any such party because of
such party’s legal or regulatory status or the nature of

 

7

 

such party’s business or (ii) the
failure of any such party to be authorized to conduct business in any
jurisdiction.

 

(d)                                 We render no opinion as to (i) the
effectiveness of any Transaction Document to create a security interest in, or (ii) the
attachment, perfection or priority of any security interest in or lien on, any
property of any of the Loan Parties.

 

(e)                                  We have relied upon the findings of fact,
conclusions of law, decretal paragraphs and other terms contained in the Order,
and we express no opinion with respect to the effect on the Transaction
Documents or the transactions contemplated thereby of any direct or indirect
amendment, modification, rescission, reversal, vacation or stay with respect to
the Order by the Bankruptcy Court or another court of competent jurisdiction
after the date and time referred to in paragraph 5 above.

 

(f)                                    We express no opinion as to any provision
of any Transaction Document that purports to (i) indemnify any Person for
its own gross negligence or willful misconduct or (ii) confer upon any
Person the right to require specific performance or to receive liquidated
damages.

 

(g)                                 We express no opinion as to provisions in
the Transaction Documents that purport to create rights of set-off in favor of
participants or that provide for set-off to be made otherwise than in
accordance with applicable laws.

 

(h)                                 We express no opinion as to the effect
(if any) of any law of any jurisdiction (except the State of New York) in which
any Lender is located that may limit the rate of interest that such Lender may
charge or collect.

 

(i)                                     In rendering our opinion as to the
enforceability of the choice of New York law, we have relied on Section 5-1401
of the New York General Obligations Law, which states in pertinent part that “[t]he
parties to any contract, agreement or undertaking, contingent or otherwise, in
consideration of, or relating to any obligation arising out of a transaction
covering in the aggregate not less than two hundred fifty thousand dollars, . .
.. may agree that the law of this state shall govern their rights and duties in
whole or in part, whether or not such contract, agreement or undertaking bears
a reasonable relation to this state.” 
Our opinion in this regard is subject to the qualifications that such
enforceability may be limited by public policy considerations of any
jurisdiction in which enforcement of such provisions, or of a judgment upon an
agreement containing such provisions, is sought.  One United States federal district court
sitting in New York, in upholding the application of Section 5-1401 of the
General Obligations Law in a case in which it found sufficient connections with
New York State, suggested that the enforcement of the election of the parties
to a contract to apply New York law might present a constitutional issue if New
York State had no connection to either the parties or the transaction and
applying New York law would violate an important public policy of a more-

 

8

 

interested state. 
Lehman Brothers Commercial Corporation and Lehman Brothers Special
Financing Inc. v. Minmetals International Non-Ferrous Metals Trading Company
et. al., 179 F. Supp. 2d 118 (S.D.N.Y. 2000) (the “Minmetal Opinion”).  The Minmetal Opinion did not address, and we
have not found any judicial interpretation of, what constitutes “no connection”
for purposes of Section 5-1401 of the New York General Obligations Law,
and we do not express any opinion as to the extent of the connections of (i) the
parties to the Transaction Documents or (ii) the transactions contemplated
thereby to New York State.

 

We call to your attention that the Minmetal Opinion stated that even if
a contract were governed by New York law and could have been legally performed
in New York, it is not enforceable under New York law if it is illegal in its
place of performance and the parties entered into the contract knowing that it
was illegal in its place of performance or were deliberately ignorant of such
illegality.  For the purposes of our
opinions set forth herein in respect of the Transaction Documents, as it
pertains to the enforceability of provisions contained in Section 9.7
of the DIP Credit Agreement (and any similar provision in any other Transaction
Document), pursuant to which the parties thereto agree that the laws of the
State of New York shall govern such documents, we have assumed that the parties
did not enter into the Transaction Documents with knowledge or deliberate
ignorance of the illegality of such document in its place of performance.

 

(j)                                     We express no opinion as to provisions in
the Transaction Documents that purport to waive objections to venue, claims
that a particular jurisdiction is an inconvenient forum or the like.  We note that the selection of New York State
or United States federal courts sitting in New York City contained in the
Transaction Documents as the venue for proceedings relating to the Transaction
Documents is subject to the power of such courts to transfer actions pursuant
to 28 U.S.C. Section 1404(a).

 

(k)                                  In rendering our opinions in Paragraph 1
as to the valid existence and good standing of the Delaware Loan Parties, we
have relied solely upon the certificates of the Delaware Secretary of State
referred to in clauses (iii) and (vi) of the second paragraph of this
opinion letter.  In rendering our
opinions in Paragraph 2 as to the existence in good standing of the California
Loan Party, we have relied solely upon the certificates of the California
Secretary of State referred to in clauses (iv) and (vii) of the
second paragraph of this opinion letter. 
In rendering our opinions in Paragraph 3 as to the valid existence and
good standing of the Illinois Loan Party, we have relied solely upon the
certificates of the Illinois Secretary of State referred to in clauses (v) and
(viii) of the second paragraph of this opinion letter.

 

(l)                                     We express no opinion as to whether a
United States federal court would have subject-matter or personal jurisdiction
over a controversy arising under the Transaction Documents.

 

9

 

(m)                               We express no opinion on the
effectiveness of any service of process made other than in accordance with
applicable law.

 

The foregoing opinions are limited to the Delaware General Corporation
Law, the Applicable Laws of the State of New York, the Applicable Laws of the
State of California, the Applicable Laws of the State of Illinois and the
Applicable Laws of the United States of America (including the Bankruptcy Code
and the Bankruptcy Rules and all other rules, judicial decisions and
orders under or in connection therewith (collectively, “Bankruptcy Law”)),
and we express no opinion with respect to the laws of any other state or
jurisdiction.

 

This opinion letter is furnished by us solely for your benefit and the
benefit of your successors and assignees under the DIP Credit Agreement
(including future Lenders thereunder to the extent the applicable assignments
were permitted under and made in accordance with Section 9.3 of the DIP
Credit Agreement), and it may not be relied upon, quoted from or delivered to
any person other than such successors, participants and assignees, your legal
counsel, the legal counsel of such successors, participants and assignees on
the condition and understanding that any such reliance by a future assignee or
participant must be actual and reasonable under the circumstances existing at
the time of the assignment or participation, including any changes in law or
facts.   In addition to the foregoing, we
further consent to disclosure of this opinion to bank regulatory authorities to
the extent required by law, so long as it is understood that by such
authorities are not addressees of this opinion and we assume no duties to any
such authorities.  The opinions expressed
above are based solely on factual matters in existence as of the date hereof
(or as certified in officers’ certificates delivered by the Loan Parties as of
the date hereof) and laws and regulations in effect on the date hereof, and we
assume no obligation to revise or supplement this opinion letter to reflect any
matters which may hereafter come to our attention, including should such
factual matters change or should such laws or regulations be changed by
legislative or regulatory action, judicial decision or otherwise.

 

Very truly yours,

 

10

 

Schedule I

 

List of Institutions

 

JPMorgan Chase Bank, N.A.

JPMorgan Chase Bank,
N.A., Toronto Branch

Deutsche Bank Trust
Company Americas

Bank of America, N.A.

Bank of America, Canada
Branch

The Bank of Nova Scotia

General Electric Capital
Corporation

The Foothill Group, LLC

 

 

Schedule II

 

Loan Parties

 

Smurfit-Stone Container
Corporation, a Delaware corporation

Smurfit-Stone Container
Enterprises, Inc., a Delaware corporation

Calpine Corrugated, LLC, a
California limited liability company

Cameo Container Corporation,
an Illinois corporation

Lot 24D Redevelopment
Corporation, a Missouri corporation

Atlanta & Saint
Andrews Bay Railway Company, a Florida corporation

Stone International Services
Corporation, a Delaware corporation

Stone Global, Inc., a
Delaware corporation

Stone Connecticut Paperboard
Properties, Inc., a Delaware corporation

Smurfit-Stone Puerto Rico, Inc.,
a Puerto Rico corporation

Smurfit Newsprint Corporation,
a Delaware corporation

SLP Finance I, Inc., a
Delaware corporation

SLP Finance II, Inc., a
Delaware corporation

SMBI Inc., a Delaware
corporation

 

Smurfit-Stone Container Canada
Inc., a corporation organized under the laws of the Province of Nova Scotia

Stone Container Finance
Company of Canada II, a corporation organized under the laws of the Province of
Nova Scotia

3083527 Nova Scotia Company, a
corporation organized under the laws of the Province of Nova Scotia

MBI Limited/Limitée, a
corporation organized under the laws of the Province of New Brunswick

Smurfit-MBI, a limited
partnership organized under the laws of the Province of Ontario

639647 British Columbia Ltd.,
a company with limited liability organized under the laws of the Province of
British Columbia

B.C. Shipper Supplies Ltd., a
corporation organized under the laws of the Province of British Columbia

Specialty Containers Inc., a
corporation organized under the laws of the Province of Alberta

SLP Finance General
Partnership, a general partnership formed and operated under the Civil Code of
Québec

Francobec Company, a
corporation organized under the laws of the Province of Nova Scotia

605681 N.B. Inc., a corporation organized under
the laws of the Province of New Brunswick

 

 

Schedule III

 

Delaware Loan Parties

 

Smurfit-Stone Container
Corporation, a Delaware corporation

Smurfit-Stone Container
Enterprises, Inc., a Delaware corporation

Stone International Services
Corporation, a Delaware corporation

Stone Global, Inc., a
Delaware corporation

Stone Connecticut Paperboard
Properties, Inc., a Delaware corporation

Smurfit Newsprint Corporation,
a Delaware corporation

SLP Finance I, Inc., a
Delaware corporation

SLP Finance II, Inc., a
Delaware corporation

SMBI Inc., a Delaware
corporation

 

 

Exhibit A

 

Order

 

Attached

 

 

Exhibit E

 

Form of
Assignment and Acceptance

 

This Assignment and
Acceptance (the “Assignment and Acceptance”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, modified or restated from time to time, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Acceptance as if set forth
herein in full.

 

For
an agreed consideration, the Assignor hereby irrevocably sells and assigns to
the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with the Standard Terms and
Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement
and any other documents or instruments delivered pursuant thereto to the extent
related to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including any letters of credit and guarantees included
in such facilities) and (ii) to the extent permitted to be assigned under
applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including contract claims, tort claims, malpractice claims, statutory claims
and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above (the rights and obligations
sold and assigned pursuant to clauses (i) and (ii) above being
referred to herein collectively as the “Assigned Interest”).  Such sale and assignment is without recourse
to the Assignor and, except as expressly provided in this Assignment and
Acceptance, without representation or warranty by the Assignor.

 

	
  1.

  	
   

  	
  Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Assignee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  [and is an Affiliate/Approved Fund of [identify
  Lender]]

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Borrowers:

  	
  SMURFIT-STONE CONTAINER ENTERPRISES, INC. and SMURFIT-STONE CONTAINER
  CANADA INC.

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Administrative Agent:

  	
  JPMORGAN CHASE BANK, N.A., as the administrative agent under the
  Credit Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Credit Agreement:

  	
  The US$750,000,000 Credit Agreement dated as of January 28,
  2009 among SMURFIT-STONE
  CONTAINER ENTERPRISES, INC., SMURFIT-STONE CONTAINER CANADA INC., the

  

 

 

	
   

  	
   

  	
   

  	
  other Loan Parties parties thereto, the Lenders parties thereto,
  JPMORGAN CHASE BANK, N.A., as Administrative Agent, and the other agents
  parties thereto

  

 

6.                                       Assigned Interest:

 

	
  Facility Assigned
 (e.g. “U.S. Revolving

  Commitment,” “Canadian

  Revolving Commitment,”

  “U.S. Term Loans,” or

  “Canadian Term Loans”)

  	
   

  	
  Aggregate Amount of

  Commitment/Loans

  for all Lenders

  	
   

  	
  Amount of

  Commitment/Loans

  Assigned

  	
   

  	
  Percentage Assigned

  of

  Commitment/Loans

  set forth, to at least 9

  decimals, as a

  percentage of the

  Commitment/Loans

  of all Lenders

  thereunder

  	
   

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  

 

Effective Date: _____________________, 20___

 

The
Assignee agrees to deliver to the Administrative Agent a completed
Administrative Questionnaire in which the Assignee designates on or more credit
contacts to whom all syndicate-level information (which may contain material
non-public information about the Company, the Loan Parties and their Related
Parties or their respective securities) will be made available and who may
receive such information in accordance with the Assignee’s compliance
procedures and applicable laws, including Federal and state securities laws.

 

The
terms set forth in this Assignment and Acceptance are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  
				

 

 

	
  [Consented to and] Accepted:

  	
   

  
	
   

  	
   

  
	
  [JPMORGAN CHASE BANK, N.A., as

  	
   

  
	
  Administrative Agent]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  [Consented to:]

  	
   

  
	
   

  	
   

  
	
  [JPMORGAN CHASE BANK, N.A., as Fronting Bank]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  
	
  Title:

  	
   

  

 

 

ANNEX 1

 

STANDARD TERMS AND
CONDITIONS FOR

ASSIGNMENT AND ACCEPTANCE

 

1. Representations and
Warranties.

 

1.1 Assignor. The Assignor (a) represents
and warrants that (i) it is the legal and beneficial owner of the Assigned
Interest, (ii) the Assigned Interest is free and clear of any lien,
encumbrance or other adverse claim and (iii) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Acceptance and to consummate the transactions contemplated hereby;
and (b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with the Credit
Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan
Documents or any collateral thereunder, (iii) the financial condition of
any Borrower, any of their Subsidiaries or Affiliates or any other Person
obligated in respect of any Loan Document or (iv) the performance or
observance by any Borrower, any of its Subsidiaries or Affiliates or any other
Person of any of their respective obligations under any Loan Document.

 

1.2. Assignee. The
Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment and Acceptance and to consummate the transactions contemplated
hereby and to become a Lender under the Credit Agreement, (ii) it
satisfies the requirements, if any, specified in the Credit Agreement that are
required to be satisfied by it in order to acquire the Assigned Interest and
become a Lender, (iii) from and after the Effective Date, it shall be
bound by the provisions of the Credit Agreement as a Lender thereunder and, to
the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.1
thereof, as applicable, and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance and to purchase the Assigned Interest on the
basis of which it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Lender, and (v) attached
to the Assignment and Acceptance is any documentation required to be delivered
by it pursuant to the terms of Section 2.19(f), duly completed and
executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

 

2. Payments. From and
after the Effective Date, the Administrative Agent shall make all payments in
respect of the Assigned Interest (including payments of principal, interest,

 

 

fees and other amounts) to the Assignor for amounts which have accrued
to but excluding the Effective Date and to the Assignee for amounts which have
accrued from and after the Effective Date.

 

3. General Provisions.
This Assignment and Acceptance shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns. This
Assignment and Acceptance may be executed in any number of counterparts, which
together shall constitute one instrument. Delivery of an executed counterpart
of a signature page of this Assignment and Acceptance by facsimile shall
be effective as delivery of a manually executed counterpart of this Assignment
and Acceptance. This Assignment and Acceptance shall be governed by, and
construed in accordance with, the law of the State of New York applicable to
contracts made and to be performed wholly within such state and the Bankruptcy
Code.

 

 

Exhibit F

 

Form of
Loan Party Joinder Agreement

 

THIS
LOAN PARTY JOINDER AGREEMENT (this “Agreement”),
dated as of
                                    ,
is entered into between                       ,
a                       
(the “New Subsidiary”) and JPMORGAN CHASE BANK, N.A., in its
capacity as administrative agent (the “Administrative
Agent”) under that certain Credit Agreement, dated as of January 28,
2009, among SMURFIT-STONE CONTAINER ENTERPRISES, INC.,
a Delaware corporation, SMURFIT-STONE
CONTAINER CANADA INC., a corporation continued under the Companies Act (Nova
Scotia) (collectively, the “Borrowers”),
SMURFIT-STONE CONTAINER CORPORATION, a Delaware corporation, the other
Loan Parties party thereto, the Lenders
party thereto, the Administrative Agent and JPMORGAN CHASE BANK N.A.,
TORONTO BRANCH, as Canadian Administrative Agent (as the same may be amended, modified, extended or restated from time
to time, the “Credit Agreement”).
All capitalized terms used herein and not otherwise defined shall have the
meanings set forth in the Credit Agreement.

 

The
New Subsidiary and the Administrative Agent, for the benefit of the Lenders,
hereby agree as follows:

 

1.             [Use for Domestic Subsidiaries:  The New Subsidiary
hereby acknowledges, agrees and confirms that, by its execution of this
Agreement, the New Subsidiary will be deemed to be a Loan Party under the
Credit Agreement and a “U.S. Guarantor”
for all purposes of the Credit Agreement and shall have all of the obligations
of a Loan Party and a U.S. Guarantor thereunder as if it had executed the
Credit Agreement. The New Subsidiary hereby ratifies, as of the date hereof,
and agrees to be bound by, all of the terms, provisions and conditions
contained in the Credit Agreement, including without limitation (a) all of
the representations and warranties of the Loan Parties set forth in Article III
of the Credit Agreement, (b) all of the covenants set forth in Articles
V and VI of the Credit Agreement, and (c) all of the guaranty
obligations applicable to U.S. Guarantors set forth in Article X of
the Credit Agreement. Without limiting the generality of the foregoing terms of
this paragraph 1, the New Subsidiary, subject to the limitations set forth in Section 10.11
of the Credit Agreement, hereby guarantees, jointly and severally with the
Borrowers and other U.S. Guarantors, to the Administrative Agent and the
Lenders, as provided in Article X of the Credit Agreement, the
prompt payment and performance of the U.S. Guaranteed Obligations in full when
due (whether at stated maturity, as a mandatory prepayment, by acceleration or
otherwise) strictly in accordance with the terms thereof and agrees that if any
of the U.S. Guaranteed Obligations are not paid or performed in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration or
otherwise), the New Subsidiary will, jointly and severally together with the
Borrowers and other U.S. Guarantors, promptly pay and perform the same, without
any demand or notice whatsoever, and that in the case of any extension of time
of payment or renewal of any of the U.S. Guaranteed Obligations, the same will
be promptly paid in full when due (whether at extended maturity, as a mandatory
prepayment, by acceleration or otherwise) in accordance with the terms of such
extension or renewal.]

 

1.             [Use for Canadian Subsidiaries:  The New Subsidiary
hereby acknowledges, agrees and confirms that, by its execution of this
Agreement, the New Subsidiary will be deemed

 

 

to be a Loan Party under the
Credit Agreement and a “Canadian
Guarantor” for all purposes of the Credit Agreement and shall have all
of the obligations of a Loan Party and a Canadian Guarantor thereunder as if it
had executed the Credit Agreement. The New Subsidiary hereby ratifies, as of
the date hereof, and agrees to be bound by, all of the terms, provisions and
conditions contained in the Credit Agreement, including without limitation (a) all
of the representations and warranties of the Loan Parties set forth in Article III
of the Credit Agreement, (b) all of the covenants set forth in Articles
V and VI of the Credit Agreement, and (c) all of the guaranty
obligations applicable to the Canadian Guarantors set forth in Article X
of the Credit Agreement. Without limiting the generality of the foregoing terms
of this paragraph 1, the New Subsidiary, subject to the limitations set forth
in Section 10.11 of the Credit Agreement, hereby guarantees,
jointly and severally with the other Canadian Guarantors, to the Administrative
Agent and the Lenders, as provided in Article X of the Credit
Agreement, the prompt payment and performance of the Canadian Guaranteed
Obligations in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration or otherwise) strictly in accordance with the terms
thereof and agrees that if any of the Canadian Guaranteed Obligations are not
paid or performed in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration or otherwise), the New Subsidiary will, jointly and
severally together with the other Canadian Guarantors, promptly pay and perform
the same, without any demand or notice whatsoever, and that in the case of any
extension of time of payment or renewal of any of the Canadian Guaranteed Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
as a mandatory prepayment, by acceleration or otherwise) in accordance with the
terms of such extension or renewal.]

 

2.             If required, the New Subsidiary is,
simultaneously with the execution of this Agreement, executing and delivering
such Collateral Documents (and such other documents and instruments) as
requested by the Administrative Agent in accordance with the Credit Agreement.

 

3.             The address of the New Subsidiary
for purposes of Section 9.1 of the Credit Agreement is as follows:

 

________________________

 

________________________

 

________________________

 

Attention:
_______________

 

4.             The New Subsidiary hereby waives
acceptance by the Administrative Agent and the Lenders of the guaranty by the
New Subsidiary upon the execution of this Agreement by the New Subsidiary.

 

5.             This Agreement may be executed in
any number of counterparts, each of which when so executed and delivered shall
be an original, but all of which shall constitute one and the same instrument.

 

6.             THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

 

IN
WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly
executed by its authorized officer, and the Administrative Agent, for the
benefit of the Lenders, has caused the same to be accepted by its authorized
officer, as of the day and year first above written.

 

 

	
   

  	
  [NEW SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

	
  Acknowledged and accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  JPMORGAN CHASE BANK, N.A.,

  	
   

  	
   

  
	
  as Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
						

 

 

Exhibit G

 

Form of
Compliance Certificate

 

	
  To:

  	
  The Administrative Agent and the Lenders

  
	
   

  	
  parties to the Credit Agreement described below

  

 

This Compliance Certificate
(this “Certificate”) is furnished pursuant to that certain Credit Agreement
dated as of January 28, 2009 (as amended, modified, restated, renewed or extended from time to
time, the “Agreement”) among Smurfit-Stone Container Enterprises, Inc., a
Delaware corporation (the “U.S. Borrower”), Smurfit-Stone Container Canada
Inc., a company continued under the Companies Act (Nova Scotia) (the “Canadian
Borrower”), Smurfit-Stone Container Corporation, a Delaware corporation (the “Parent”),
the other Loan Parties party thereto, the Lenders party thereto, JPMorgan Chase
Bank, N.A., as Administrative Agent and Collateral Agent for the Lenders, and
JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Administrative Agent and
Canadian Collateral Agent for the Lenders. Unless otherwise defined herein,
capitalized terms used in this Compliance Certificate have the meanings
ascribed thereto in the Agreement.

 

THE UNDERSIGNED HEREBY CERTIFIES, ON ITS
BEHALF AND ON BEHALF OF EACH LOAN PARTY, THAT:

 

1.     I am the duly elected                  of
the Parent;

 

2.     I have reviewed the terms of the Agreement and I have made, or
have caused to be made under my supervision, a detailed review of the
transactions and conditions of the Loan Parties and their Subsidiaries during
the accounting period covered by the attached financial statements [for quarterly or monthly financial
statements add: and such financial statements present fairly in
all material respects the financial condition and results of operations of the
Loan Parties and their consolidated Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit
adjustments and the absence of footnotes];

 

3.     The examinations described in paragraph 2 did not disclose,
except as set forth below, and I have no knowledge of (i) the existence of
any condition or event which constitutes a Default or Event of Default during
or at the end of the accounting period covered by the attached financial
statements or as of the date of this Certificate or (ii) any change in
GAAP or in the application thereof that has occurred since the date of the
audited financial statements referred to in Section 3.4 of the Agreement;

 

4.     I hereby certify that no Loan Party has changed (i) its
name, (ii) its chief executive office, (iii) principal place of
business, (iv) the type of entity it is or (v) its state of
incorporation or organization without having given the Administrative Agent the
notice required by Section 4.15 of the Security and Pledge
Agreement and/or Section 6 of the Canadian Security Agreement, as
applicable; and

 

 

5.     Schedule I attached hereto sets forth financial data and
computations evidencing the Loan Parties’ compliance with certain covenants of
the Agreement, all of which data and computations are true, complete and
correct.

 

Described below are the
exceptions, if any, to paragraph 3 by listing, in detail, the (i) nature
of the condition or event, the period during which it has existed and the
action which the Loan Parties have taken, are taking, or propose to take with
respect to each such condition or event or (ii) the change in GAAP or the
application thereof and the effect of such change on the attached financial
statements:

 

____________________________________________________________________________________________________

 

____________________________________________________________________________________________________

 

____________________________________________________________________________________________________

 

The foregoing
certifications, together with the computations set forth in Schedule I hereto
and the financial statements delivered with this Certificate in support hereof,
are made and delivered this    day of
                        ,
20    .

 

	
   

  	
  SMURFIT-STONE CONTAINER CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

SCHEDULE I

 

Compliance as of
              ,
20     with

Section 6.3,
6.4, 6.5, 6.6, 6.11 and 6.12 of

the Agreement

 

 

SCHEDULES
TO CREDIT AGREEMENT

Among

 

SMURFIT-STONE
CONTAINER CORPORATION,

a Debtor and
Debtor-in-Possession under Chapter 11 of the Bankruptcy Code,

 

as the Parent and
a U.S. Guarantor,

 

SMURFIT-STONE
CONTAINER ENTERPRISES, INC.,

a Debtor and Debtor-in-Possession under Chapter 11 of the Bankruptcy Code,

 

as U.S. Borrower,

 

SMURFIT-STONE
CONTAINER CANADA INC.,

a company
operating pursuant to a proceeding under the CCAA,

 

as Canadian
Borrower,

 

THE
OTHER LOAN PARTIES PARTY HERETO,

THE
LENDERS PARTY HERETO,

JPMORGAN
CHASE BANK, N.A.,

as Administrative
Agent and Collateral Agent,

 

and

 

JPMORGAN
CHASE BANK, N.A., TORONTO BRANCH,

as Canadian
Administrative Agent and Canadian Collateral Agent,

 

 

Schedule 1.1

 

Eligible Equipment

 

United States

Mills

	
  1.

  	
  600 N. 8th Street,
  Fernandina Beach, FL

  
	
  2.

  	
  9469 Eastport Road, P.
  O. Box 26998, Jacksonville, FL

  
	
  3.

  	
  West Point District, VA

  
	
  4.

  	
  1611 County Road 85, PO
  Box 508, Stevenson, AL

  
	
  5.

  	
  Old Georgetown Road,
  Florence, SC

  

 

Container Plants

	
  1.

  	
  North Eight Street,
  Fernandina, FL

  
	
  2.

  	
  185 N. Smith Street,
  Corona, CA

  
	
  3.

  	
  201 S. Hillview Drive,
  Milpitas, CA

  
	
  4.

  	
  775 S. Linwood Road,
  Galesburg, IL

  
	
  5.

  	
  6th &
  Zschokke, Highland, IL

  
	
  6.

  	
  1601 Tri View Avenue,
  Sioux City, IA

  
	
  7.

  	
  577 Goddard Avenue,
  Chesterfield, MO

  
	
  8.

  	
  8080 North Point Blvd.,
  Winston-Salem, NC

  
	
  9.

  	
  2606 Wilco Blvd.,
  Wilson, NC

  
	
  10.

  	
  9960 Alliance Road,
  Cincinnati, OH

  
	
  11.

  	
  975 N. Freedom Street,
  Ravenna, OH

  
	
  12.

  	
  100 McDonald Blvd.,
  Aston, PA

  
	
  13.

  	
  4512 Anderson Road,
  N.E., Knoxville, TN

  
	
  14.

  	
  1720 Ninth Avenue,
  Humboldt, TN

  
	
  15.

  	
  6701 South Freeway, Ft.
  Worth, TX

  
	
  16.

  	
  2800 W. Custer Avenue,
  Milwaukee, WI

  
	
  17.

  	
  Reach Rd., Industrial
  Park, Williamsport, PA

  
	
  18.

  	
  7350 Stiles Road, El
  Paso, TX

  
	
  19.

  	
  IS – 20 &
  Highway 155, Tyler, TX

  
	
  20.

  	
  5700 Lewis Road,
  Sandston, VA

  
	
  21.

  	
  6180 Jersey Alcovy Rd.,
  Covington, GA

  
	
  22.

  	
  7601 South 78th Ave.,
  Bridgeview, IL

  
	
  23.

  	
  Mead &
  Kenskill, Washington, OH

  
	
  24.

  	
  700 Garrett Pkwy.,
  Lewisburg, TN

  
	
  25.

  	
  51 Robinson Street,
  North Tonawanda, NY

  
	
  26.

  	
  4461 Highway 301 South,
  Latta, SC

  
	
  27.

  	
  201 West Grove St.,
  Adams, WI

  
	
  28.

  	
  320 Parker Street,
  Springfield, MA

  

 

Canada

1.  Mill located at
1000 Chemin de l’Usine, La Tuque, QC

2.  PAT converting
plant located at 15400 Sherbrooke St. East, Montreal, QC

3.  Plant located at
8150 Parkhill Drive, Milton ON

 

 

Schedule 1.2

 

Eligible Real
Property

 

United States

Mills

	
  1.

  	
  600 N. 8th Street,
  Fernandina Beach, FL

  
	
  2.

  	
  9469 Eastport Road, P.
  O. Box 26998, Jacksonville, FL

  
	
  3.

  	
  West Point District, VA

  
	
  4.

  	
  1611 County Road 85, PO
  Box 508, Stevenson, AL

  
	
  5.

  	
  Old Georgetown Road, Florence,
  SC

  

 

Container Plants

	
  1.

  	
  North Eight Street,
  Fernandina, FL

  
	
  2.

  	
  185 N. Smith Street,
  Corona, CA

  
	
  3.

  	
  201 S. Hillview Drive,
  Milpitas, CA

  
	
  4.

  	
  775 S. Linwood Road,
  Galesburg, IL

  
	
  5.

  	
  6th &
  Zschokke, Highland, IL

  
	
  6.

  	
  1601 Tri View Avenue,
  Sioux City, IA

  
	
  7.

  	
  577 Goddard Avenue,
  Chesterfield, MO

  
	
  8.

  	
  8080 North Point Blvd.,
  Winston-Salem, NC

  
	
  9.

  	
  2606 Wilco Blvd.,
  Wilson, NC

  
	
  10.

  	
  9960 Alliance Road,
  Cincinnati, OH

  
	
  11.

  	
  975 N. Freedom Street,
  Ravenna, OH

  
	
  12.

  	
  100 McDonald Blvd.,
  Aston, PA

  
	
  13.

  	
  4512 Anderson Road,
  N.E., Knoxville, TN

  
	
  14.

  	
  1720 Ninth Avenue,
  Humboldt, TN

  
	
  15.

  	
  6701 South Freeway, Ft.
  Worth, TX

  
	
  16.

  	
  2800 W. Custer Avenue,
  Milwaukee, WI

  
	
  17.

  	
  Reach Rd., Industrial
  Park, Williamsport, PA

  
	
  18.

  	
  7350 Stiles Road, El
  Paso, TX

  
	
  19.

  	
  IS – 20 &
  Highway 155, Tyler, TX

  
	
  20.

  	
  5700 Lewis Road,
  Sandston, VA

  
	
  21.

  	
  6180 Jersey Alcovy Rd.,
  Covington, GA

  
	
  22.

  	
  7601 South 78th Ave.,
  Bridgeview, IL

  
	
  23.

  	
  Mead &
  Kenskill, Washington, OH

  
	
  24.

  	
  700 Garrett Pkwy.,
  Lewisburg, TN

  
	
  25.

  	
  51 Robinson Street,
  North Tonawanda, NY

  
	
  26.

  	
  4461 Highway 301 South,
  Latta, SC

  
	
  27.

  	
  201 West Grove St.,
  Adams, WI

  
	
  28.

  	
  320 Parker Street,
  Springfield, MA

  

 

Canada

1.  Mill located at
1000 Chemin de l’Usine, La Tuque, QC

2.  PAT converting
plant located at 15400 Sherbrooke St. East, Montreal, QC

3.  Plant located at
8150 Parkhill Drive, Milton ON

 

 

Schedule 2.24

 

Non-Primed Liens

 

Liens that:

 

(i) are properly
perfected, enforceable and in existence as of the Petition Date;

(ii) are senior in
priority to the Liens created under the Pre-Petition Credit Agreement;

(iii) fall within
any one of the following categories:

 

a.                                      those Liens securing purchase money
indebtedness;

 

b.                                      mechanics’ Liens, materialmen’s Liens,
carriers’ Liens, warehousemen’s Liens and landlord’s Liens arising by operation
of law;

 

c.                                       rights of banks or other financial
institutions having a right of setoff, revocation, refund or chargeback with
respect to deposits with or in the possession of such bank or financial
institution;

 

d.                                      Liens arising by operation of law on
insurance policies and proceeds thereof to secure premiums thereunder;

 

e.                                       other Liens securing claims of no more
than $500,000 on an individual basis and no more than $10,000,000 on an
aggregate basis; or

 

f.                                        other Liens acceptable to the
Administrative Agent; and

 

(iv) either:

(x) secure
claims of no more than $200,000 on an individual basis; or

(y) secure
claims that are scheduled by the Debtors on the Register Of Non-Primed Liens
(1).

 

(1) The Debtors will prepare and maintain from time to time a
comprehensive Register Of Non-Primed Liens.

 

 

REGISTER
OF NON-PRIMED LIENS

 

To the extent parties on
this Register have valid liens that otherwise satisfy requirements (i) -
(iii) of Schedule 2.24 (to which this Register is appended), such liens
are not being primed by the DIP Liens. However, inclusion on the Register does
not constitute an admission by the Debtors that the listed parties have valid
liens or that they have valid claims of more than $200,000.

 

	
  Vendor

  	
   

  	
  Address

  
	
  1

  	
   

  	
  AIG Commerical
  Equipment Finance

  	
   

  	
  Jeffrey C. Wisler and
  Marc J. Phillips, Connolly Bove Lodge & Hutz LLP, The Nemours
  Building, 1007 North Orange Street, P.O. Box 2207, Wilmington, DE 19899

  
	
  2

  	
   

  	
  AirTek
  Construction, Inc.

  	
   

  	
  Daniel K. Astin,
  Anthony M. Saccullo and Mary E. Augustine, Ciardi Ciardi & Astin,
  Citizens Bank Center, 919 North Market Street, Suite 700, Wilmington, DE
  19801

  
	
  3

  	
   

  	
  ALL TRUCK
  TRANSPORTATION INC

  	
   

  	
  4924 S Austin Chicago,
  IL 60638 USA

  
	
  4

  	
   

  	
  Alliance Machine
  Systems

  	
   

  	
  5303 East Desmet
  Spokane, WA 99212 USA

  
	
  5

  	
   

  	
  Alstom

  	
   

  	
  7-B Place Du Commerce
  Brossard, QC J4w 3k3 Canada

  
	
  6

  	
   

  	
  BAY LINE RAILROAD LLC

  	
   

  	
  #712406 Cincinnati, OH
  45271-2406 USA

  
	
  7

  	
   

  	
  BHS Corrugated

  	
   

  	
  9103 Yellow Brick Road
  Baltimore, MD 21237-4702 USA

  
	
  8

  	
   

  	
  BLI

  	
   

  	
  #1261 Saint Charles, MO
  63302-1261 USA

  
	
  9

  	
   

  	
  CH ROBINSON WORLDWIDE

  	
   

  	
  #9121 Minneapolis, MN
  55480-9121 USA

  
	
  10

  	
   

  	
  CN

  	
   

  	
  Box 4254 Station A71206
  Chicago, IL 60694-1206 USA

  
	
  11

  	
   

  	
  CONWAY TRUCKLOAD INC

  	
   

  	
  #953695 Saint Louis, MO
  63195-3695 USA

  
	
  12

  	
   

  	
  Corrugated
  Gear & Services

  	
   

  	
  209 W South Street
  Ithaca, MI 48847 USA

  
	
  13

  	
   

  	
  CSX TRANSPORTATION
  (CSXT)

  	
   

  	
  500 Water St Sc J180
  Jacksonville, FL 32202 USA

  
	
  14

  	
   

  	
  CSX TRANSPORTATION
  (CSXT)

  	
   

  	
  #44053 Jacksonville, FL
  32231-4053 USA

  
	
  15

  	
   

  	
  De Lage Landen
  Financial Services, Inc.

  	
   

  	
  Regina Stango Kelbon,
  Blank Rome LLP, One Logan Square, Philadelphia, PA 19103

  
	
  16

  	
   

  	
  Dufrene
  Machinery, Inc.

  	
   

  	
  1831 Veterans Memorial
  Hwy Austell, GA 30168 USA

  
	
  17

  	
   

  	
  ENTREPRISES DE
  TRANSPORT J C G INC

  	
   

  	
  1200 Pere Daniel Trois
  Rivieres, QC G9a 5r6 Canada

  
	
  18

  	
   

  	
  Everest Auto

  	
   

  	
  227 Brunswick
  Suite D Pointe-Claire, QC H9r 4x5 Canada

  
	
  19

  	
   

  	
  Fosber
  America, Inc.

  	
   

  	
  1831 Veterans Memorial
  Hwy Austell, GA 30168 USA

  
	
  20

  	
   

  	
  GENERAL LOGISTICS INC

  	
   

  	
  #8013 Davenport, IA
  52809 USA

  
	
  21

  	
   

  	
  GROUPE ROBERT INC

  	
   

  	
  500 Rte. 112,
  Rougemont, Canpq J0l 1m0, Canada

  
	
  22

  	
   

  	
  Harper Machinery

  	
   

  	
  #11603 Brown, WI
  54307-1603 USA

  
	
  23

  	
   

  	
  HUB GROUP

  	
   

  	
  33773 Treasury Center
  Chicago, IL 60694-3700 USA

  
	
  24

  	
   

  	
  IES
  Industrial, Inc. d/b/a Murray Electric

  	
   

  	
  William B. Westcott,
  Andrews Myers Coulter & Hayes, P.C., 3900 Essex Lane,
  Suite 800, Houston, Texas 77027 and Richard G. Placey, Montgomery,
  McCracken, Walker & Rhoads, LLP, 1105 N. Market St., 15th Floor,
  Wilmington, DE 19801

  
	
  25

  	
   

  	
  JACOBSON DISTRIBUTION
  COMPANY

  	
   

  	
  #224 Des Moines, IA
  50301 USA

  
	
  26

  	
   

  	
  JAMES BROWN TRUCKING CO

  	
   

  	
  #535203 Atlanta, GA
  30353 USA

  
	
  27

  	
   

  	
  K&N Electric

  	
   

  	
  #303 Spokane, WA 99210
  USA

  
	
  28

  	
   

  	
  KANSAS CITY SOUTHERN
  RAILWAY INC

  	
   

  	
  36454 Treasury Center
  Chicago, IL 60694-6400 USA

  
	
  29

  	
   

  	
  LILY TRANSPORTATION
  CORP

  	
   

  	
  145 Rosemary Street
  Needham, MA 02494 USA

  
	
  30

  	
   

  	
  MARQUETTE
  TRANSPORTATION FINANCE IN

  	
   

  	
  Nw 79391450
  Minneapolis, MN 55485 USA

  
	
  31

  	
   

  	
  MCGRIFF TRANSPORTATION
  INC

  	
   

  	
  #1148 Cullman, AL 35056
  USA

  
	
  32

  	
   

  	
  MEGA GULF COAST LINES
  INC

  	
   

  	
  1002 Fountain PArkway
  Grand Prairie, TX 75050 USA

  
	
  33

  	
   

  	
  MONTANA RAIL LINK

  	
   

  	
  3122 Solutions Center
  Chicago, IL 60677 USA

  
	
  34

  	
   

  	
  NORFOLK SOUTHERN
  CORPORATION

  	
   

  	
  #532888 Atlanta, GA
  30353-2888 USA

  
	
  35

  	
   

  	
  Plum Creek Marketing,
  Inc.

  	
   

  	
  John R.
  Knapp, Jr., Cairncross & Hempelmann, P.S., 524 2nd Avenue,
  Suite 500, Seattle, WA 98104-2323

  
	
  36

  	
   

  	
  SWIFT TRANSPORTATION
  CORP

  	
   

  	
  #643991 Pittsburgh, PA
  15264-3991 USA

  
	
  37

  	
   

  	
  UNION PACIFIC RAILROAD

  	
   

  	
  12567 Collections
  Center Dr Chicago, IL 60693 USA

  
	
  38

  	
   

  	
  UPS FREIGHT

  	
   

  	
  #533238 Atlanta, GA
  30353-3238 USA

  
	
  39

  	
   

  	
  VHI TRANSPORT INC

  	
   

  	
  4525 Lee Street
  Chester, VA 23831 USA

  
	
  40

  	
   

  	
  Voith - Austell, GA

  	
   

  	
  3090 Stagecoach Road
  Caddo, LA 71047 USA

  
	
  41

  	
   

  	
  Voith Paper Rolls

  	
   

  	
  #410926 Mecklenburg, NC
  28241 USA

  
	
  42

  	
   

  	
  WATKINS &
  SHEPARD TRUCKING

  	
   

  	
  #5328 Missoula, MT
  59806 USA

  
	
  43

  	
   

  	
  WESTERN EXPRESS INC

  	
   

  	
  Dept 54306035
  Nashville, TN 37230-6035 USA

  
	
  44

  	
   

  	
  W.G. Yates &
  Sons Construction Co.

  	
   

  	
  c/o Joseph Grey,
  Stevens & Lee P.C., 1105 North Market Street, 7th Floor, Wilmington,
  DE 19801

  
	
  45

  	
   

  	
  WHITE OAK TRANSPORTATION
  INC

  	
   

  	
  #43512 Birmingham, AL
  35243 USA

  
	
  46

  	
   

  	
  WORLDWIDE DEDICATED
  SERVICES INC

  	
   

  	
  28013 Network Place
  Chicago, IL 60673 USA

  

 

 

Schedule 3.5

 

Subsidiaries

 

	
   

  	
   

  	
  Jurisdiction
  of

  	
   

  	
   

  
	
  Subsidiary

  	
   

  	
  Organization

  	
   

  	
  Equity
  Ownership

  
	
  Smurfit-Stone Container
  Enterprises, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Corporation - 100%

  
	
  Lot 24D Redevelopment
  Corporation

  	
   

  	
  Missouri

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Atlanta & St.
  Andrews Bay Railroad Co.

  	
   

  	
  Florida

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Cameo Container
  Corporation

  	
   

  	
  Illinois

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Stone International
  Services Corporation

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Calpine Corrugated, LLC

  	
   

  	
  California

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 90%

  
	
  Stone Global, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Stone Connecticut
  Paperboard Properties, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Smurfit-Stone Puerto
  Rico, Inc.

  	
   

  	
  Puerto Rico

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Smurfit Newsprint
  Corporation

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  SLP Finance
  I, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  SLP Finance
  II, Inc.

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Stone Receivables LLC

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Timber Capital Holdings
  LLC

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Stone Container Finance
  Company of Canada

  	
   

  	
  Nova Scotia

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Stone Container Finance
  Company of Canada II

  	
   

  	
  Nova Scotia

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  

 

 

	
  Smurfit-Stone Container
  Canada Inc.

  	
   

  	
  Nova Scotia

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  Stone Container Finance Company of Canada – Class C Shares

  Stone Container Finance Company of Canada II – Class C Shares

  SLP Finance General Partnership – Class D Shares

  
	
  Stone Container de
  Mexico S. de R.L. de C.V.

  	
   

  	
  Mexico

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. – 99.994%

  Cameo Container Corporation - .006%

  
	
  CCA de Baja California
  S.A. de C.V.

  	
   

  	
  Mexico

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Dongguan Stone
  Millennium Paper & Packaging Industries, Ltd.

  	
   

  	
  China

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  Stone Truepenny
  International, Inc.

  	
   

  	
  British Virgin Islands

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc. - 100%

  
	
  SSCE Funding, LLC

  	
   

  	
  Delaware

  	
   

  	
  Stone Receivables LLC -
  100%

  
	
  Timber Note Holdings
  LLC

  	
   

  	
  Delaware

  	
   

  	
  Timber Capital Holdings
  LLC – 100%

  
	
  SLP Finance General
  Partnership

  	
   

  	
  Quebec

  	
   

  	
  SLP Finance
  I, Inc. – 50%

  SLP Finance II, Inc. – 50%

  
	
  Xiamen Stone Millennium
  Packaging & Paper Industries Co. Ltd.

  	
   

  	
  China

  	
   

  	
  Dongguan Stone
  Millennium Paper & Packaging Industries, Ltd. - 100%

  
	
  Smurfit-Stone i2i
  Design Center, Ltd.

  	
   

  	
  British Virgin Islands

  	
   

  	
  Stone Truepenny
  International, Inc. - 100%

  
	
  Smurfit-Stone China
  Trading, Ltd.

  	
   

  	
  British Virgin Islands

  	
   

  	
  Stone Truepenny
  International, Inc. - 100%

  
	
  Smurfit-Stone (Asia)
  Limited

  	
   

  	
  Hong Kong

  	
   

  	
  Stone Truepenny
  International, Inc. - 100%

  
	
  Smurfit-Stone i2i
  (China)

  	
   

  	
  China

  	
   

  	
  Smurfit-Stone (Asia)
  Limited - 100%

  
	
  Smurfit-Stone HY
  Holdings, Ltd.

  	
   

  	
  British Virgin Islands

  	
   

  	
  Stone Truepenny
  International, Inc. - 100%

  
	
  3083527 Nova Scotia
  Company

  	
   

  	
  Nova Scotia

  	
   

  	
  Smurfit-Stone Container
  Canada Inc. - 100%

  
	
  MBI Limited/Limitée

  	
   

  	
  New Brunswick

  	
   

  	
  Smurfit-Stone Container
  Canada Inc. - 50%

  3083527 Nova Scotia Company – 50%

  

 

 

	
  Smurfit-MBI

  	
   

  	
  Ontario

  	
   

  	
  Smurfit-Stone Container
  Canada Inc. – 49.9999%

  3083527 Nova Scotia Company – 49.9999%

  MBI Limited/Limitée - .0002%

  
	
  St. Laurent Display and
  Packaging Corp.

  	
   

  	
  Ontario

  	
   

  	
  Smurfit-Stone Container
  Canada Inc. - 100%

  
	
  Celgar
  Investments, Inc.

  	
   

  	
  British Virgin Islands

  	
   

  	
  Smurfit-Stone Container
  Canada Inc. - 100%

  
	
  Stone Venepal (Celgar)
  Pulp, Inc.

  	
   

  	
  Canada (federal)

  	
   

  	
  Smurfit-Stone Container
  Canada Inc. - 45%

  Celgar Investments, Inc. - 45%

  
	
  SMBI Inc.

  	
   

  	
  Delaware

  	
   

  	
  Smurfit-MBI - 100%

  
	
  639647 British Columbia
  Ltd.

  	
   

  	
  British Columbia

  	
   

  	
  Smurfit-MBI - 100%

  
	
  Francobec Company

  	
   

  	
  Nova Scotia

  	
   

  	
  SLP Finance General
  Partnership - 100%

  
	
  605681 N.B. Inc.

  	
   

  	
  New Brunswick

  	
   

  	
  SLP Finance General
  Partnership - 100%

  
	
  B.C. Shipper Supplies
  Ltd.

  	
   

  	
  British Columbia

  	
   

  	
  639647 British Columbia
  Ltd. - 100%

  
	
  Specialty Containers
  Inc.

  	
   

  	
  Alberta

  	
   

  	
  639647 British Columbia
  Ltd. - 100%

  

 

 

Schedule 3.6

 

Liens

 

1.   Liens securing the Utility Systems and
Environmental Improvement Bonds and Industrial Revenue Bonds identified on Schedule 6.3,
which Liens cover the assets financed by such bonds.

 

2.   Liens securing the Capital Lease Obligations
and purchase-money Indebtedness identified on Schedule 6.3, which Liens
cover the property financed by such Capital Lease Obligations and
purchase-money Indebtedness.

 

3.   Liens securing the Timber Note Monetization
Indebtedness identified on Schedule 6.3, which Liens cover the specified
notes payable and related assets held by Timber Note Holdings LLC.

 

4.   Liens in respect of the Receivables
Securitization Programs identified on Schedule 6.3.

 

 

Schedule 3.7

 

Environmental Matters

 

None.

 

 

Schedule 3.12

 

Intellectual Property

 

Registered Patents

 

Canada

 

	
  Patents - Canada

  	
   

  	
  Registration or Application Number

  
	
   

  	
   

  	
   

  
	
  Multi-Layer Wrapper
  Construction

  	
   

  	
  CA 2,139,082

  
	
   

  	
   

  	
   

  
	
  Envelope Multicouche

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Method of Making Coated
  or Impregnated Paper or Paperboard

  	
   

  	
  CA 2,256,744

  

 

United States

 

See attached.

 

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PATENTS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Patent Number

  	
   

  	
  Grant Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/273661

  	
   

  	
  10/18/2002

  	
   

  	
  6935504

  	
   

  	
  8/30/2005

  	
   

  	
  PASSIVE INTERLOCK STRUCTURE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/955684

  	
   

  	
  9/30/2004

  	
   

  	
  7350670

  	
   

  	
  4/1/2008

  	
   

  	
  BAG-IN-BOX CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/293878

  	
   

  	
  11/13/2002

  	
   

  	
  7007825

  	
   

  	
  3/7/2006

  	
   

  	
  BAG-IN-BOX BEVERAGE CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/236618

  	
   

  	
  9/6/2002

  	
   

  	
  7066379

  	
   

  	
  6/27/2006

  	
   

  	
  SHIPPING CONTAINER CONVERTIBLE TO A DISPLAY CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/352796

  	
   

  	
  1/28/2003

  	
   

  	
  6886737

  	
   

  	
  5/3/2005

  	
   

  	
  POINT-OF-PURCHASE DISPLAY WITH INDICIA PANEL

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/785147

  	
   

  	
  2/24/2004

  	
   

  	
  7094194

  	
   

  	
  8/22/2006

  	
   

  	
  REINFORCED BULK BIN AND METHODS FOR MAKING SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/286159

  	
   

  	
  11/1/2002

  	
   

  	
  7314159

  	
   

  	
  1/1/2008

  	
   

  	
  QUADCORNER TRAY WRAPPER DESIGNS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/330919

  	
   

  	
  12/27/2002

  	
   

  	
  6935509

  	
   

  	
  8/30/2005

  	
   

  	
  RECEPTACLE FOR TRAY DISPLAY

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/125909

  	
   

  	
  4/19/2002

  	
   

  	
  7165676

  	
   

  	
  1/23/2007

  	
   

  	
  HEAT SEAL BLISTER PACKAGE HAVING IMPROVED MOISTURE VAPOR
  TRANSMISSION BARRIER AND METHOD FOR FORMING SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/384515

  	
   

  	
  8/27/1999

  	
   

  	
  6358191

  	
   

  	
  3/19/2002

  	
   

  	
  SYSTEM AND METHOD FOR FLEXIBLE CONTROL AND ADJUSTMENT OF
  A BOX FORMING MACHINE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  07/727117

  	
   

  	
  7/9/1991

  	
   

  	
  5147271

  	
   

  	
  9/15/1992

  	
   

  	
  MACHINE FOR PRODUCING POLYGONAL CASES

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/051399

  	
   

  	
  4/23/1993

  	
   

  	
  5381948

  	
   

  	
  1/17/1995

  	
   

  	
  PACKAGING OF POLYGONAL SECTION MADE OF A SHEET-TYPE
  MATERIAL AND BLANK FOR PRODUCING SUCH A PACKAGING

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  United States

  	
   

  	
  Patent Cooperation Treaty

  	
   

  	
  08/632472

  	
   

  	
  10/18/1994

  	
   

  	
  5704540

  	
   

  	
  1/6/1998

  	
   

  	
  CARTON OR CARTON COVER OF RIGID SHEET MATERIAL WITH
  HANDLE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  

 

1

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PATENTS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Patent Number

  	
   

  	
  Grant Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/560218

  	
   

  	
  4/28/2000

  	
   

  	
  6394742

  	
   

  	
  5/28/2002

  	
   

  	
  METHOD FOR STACKING BOXES AND REMOVAL OF INDIVIDUAL
  BOXES FROM THE STACK

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/010174

  	
   

  	
  1/28/1993

  	
   

  	
  5295623

  	
   

  	
  3/22/1994

  	
   

  	
  METHOD AND A BLANK FOR MAKING A BOX AROUND A LOAD, AND A
  BOX OBTAINED IN THIS WAY

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/172267

  	
   

  	
  12/23/1993

  	
   

  	
  5395043

  	
   

  	
  3/7/1995

  	
   

  	
  A BLANK FOR MAKING A BOX AROUND A LOAD

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  07/321562

  	
   

  	
  3/9/1989

  	
   

  	
  4932930

  	
   

  	
  6/12/1990

  	
   

  	
  METHOD AND MACHINE FOR FORMING CASES WITH POLYGONAL
  SECTION MADE FROM A SHEET MATERIAL AND CASES THUS OBTAINED

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  07/321753

  	
   

  	
  3/9/1989

  	
   

  	
  4945007

  	
   

  	
  7/31/1990

  	
   

  	
  BLANK OF MATERIAL IN SHEET FORM AND PARTITION MADE
  THEREFROM

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/393140

  	
   

  	
  3/20/2003

  	
   

  	
  6932265

  	
   

  	
  8/23/2005

  	
   

  	
  BOX CONVERTIBLE TO A DISPLAY CONTAINER AND METHOD OF
  MAKING SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/877405

  	
   

  	
  6/25/2004

  	
   

  	
  7434721

  	
   

  	
  10/14/2008

  	
   

  	
  POLYGONAL COLLAPSIBLE BULK BIN

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/082642

  	
   

  	
  2/25/2002

  	
   

  	
  7124890

  	
   

  	
  10/24/2006

  	
   

  	
  CASE READY STACKABLE TRAY DESIGNS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/923643

  	
   

  	
  8/4/2001

  	
   

  	
  6752350

  	
   

  	
  6/22/2004

  	
   

  	
  COMPOSITE REEL APPARATUS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/141438

  	
   

  	
  5/8/2002

  	
   

  	
  6752280

  	
   

  	
  6/22/2004

  	
   

  	
  COLLAPSIBLE DISPLAY SHELVING

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/043428

  	
   

  	
  1/10/2002

  	
   

  	
  6443329

  	
   

  	
  9/3/2002

  	
   

  	
  CORRUGATED HANGING DISPENSER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/194331

  	
   

  	
  7/12/2002

  	
   

  	
  6793070

  	
   

  	
  9/21/2004

  	
   

  	
  SHIPPING AND DISPLAY CASE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/831987

  	
   

  	
  4/26/2004

  	
   

  	
  7484655

  	
   

  	
  2/3/2009

  	
   

  	
  INTEGRATED CARTON LID DESIGNS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/955702

  	
   

  	
  9/30/2004

  	
   

  	
  7389909

  	
   

  	
  6/24/2008

  	
   

  	
  BAG-IN-BOX CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/988798

  	
   

  	
  11/15/2004

  	
   

  	
  7121453

  	
   

  	
  10/17/2006

  	
   

  	
  CARTON WITH CORNER POST CONSTRUCTION

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  

 

2

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PATENTS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Patent Number

  	
   

  	
  Grant Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  United States

  	
   

  	
  Patent Cooperation Treaty

  	
   

  	
  10/485581

  	
   

  	
  9/13/2004

  	
   

  	
  7451878

  	
   

  	
  11/18/2008

  	
   

  	
  SHIPPING CONTAINER CONVERTIBLE TO DISPENSING OR ALL
  AROUND DISPLAY CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  07/876572

  	
   

  	
  4/30/1992

  	
   

  	
  5388531

  	
   

  	
  2/14/1995

  	
   

  	
  SHIPPING PLATFORM APPARATUS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/047440

  	
   

  	
  1/31/2005

  	
   

  	
  7455215

  	
   

  	
  11/25/2008

  	
   

  	
  SHIPPING CONTAINER CONVERTIBLE TO A DISPLAY CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  29/169290

  	
   

  	
  10/17/2002

  	
   

  	
  D503614

  	
   

  	
  4/5/2005

  	
   

  	
  BOX CONVERTIBLE TO A DISPLAY CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/083308

  	
   

  	
  2/26/2002

  	
   

  	
  6669081

  	
   

  	
  12/30/2003

  	
   

  	
  SHIPPING AND DISPLAY CASE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/086053

  	
   

  	
  2/28/2002

  	
   

  	
  6508395

  	
   

  	
  1/21/2003

  	
   

  	
  STACKABLE SHIPPING CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/629250

  	
   

  	
  4/8/1996

  	
   

  	
  5697548

  	
   

  	
  12/16/1997

  	
   

  	
  TRAY-STYLE CARTON HAVING REINFORCED SIDE WALLS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/684613

  	
   

  	
  7/19/1996

  	
   

  	
  5713469

  	
   

  	
  2/3/1998

  	
   

  	
  CARTON WITH INTEGRAL CORE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/009559

  	
   

  	
  1/26/1993

  	
   

  	
  5285957

  	
   

  	
  2/15/1994

  	
   

  	
  REPULPABLE, REINFORCED CORRUGATED CONTAINERS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  07/907073

  	
   

  	
  7/1/1992

  	
   

  	
  5197606

  	
   

  	
  3/30/1993

  	
   

  	
  CUSHION MEMBER FOR USE IN A SHIPPING CONTAINER

  	
   

  	
  Jefferson Smurfit Corporation (U.S.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  29/057194

  	
   

  	
  7/18/1996

  	
   

  	
  D384885

  	
   

  	
  10/14/1997

  	
   

  	
  OCTAGONAL SHIPPING CONTAINER

  	
   

  	
  Jefferson Smurfit Corporation (U.S.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/014453

  	
   

  	
  2/5/1993

  	
   

  	
  5400955

  	
   

  	
  3/28/1995

  	
   

  	
  BOX FORMED FROM A SHEET MATERIAL, BLANK

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/155219

  	
   

  	
  11/22/1993

  	
   

  	
  5375715

  	
   

  	
  12/27/1994

  	
   

  	
  POLYGONAL SECTION PACKAGING OF SHEET MATERIAL, IN
  PARTICULAR FOR BOTTLES AND A BLANK

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  07/808773

  	
   

  	
  12/17/1991

  	
   

  	
  5160307

  	
   

  	
  11/3/1992

  	
   

  	
  MACHINE FOR MAKING A TAPERING CARTON

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/429510

  	
   

  	
  5/5/2003

  	
   

  	
  6974033

  	
   

  	
  12/13/2005

  	
   

  	
  WRAPAROUND-STYLE SHIPPING CONTAINERS CONVERTIBLE TO
  DISPENSING OR DISPLAY CONTAINERS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/082891

  	
   

  	
  2/26/2002

  	
   

  	
  6715623

  	
   

  	
  4/6/2004

  	
   

  	
  COLLAPSIBLE DISPLAY SHELVING

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/133124

  	
   

  	
  5/19/2005

  	
   

  	
  7374528

  	
   

  	
  5/20/2008

  	
   

  	
  AIR EVACUATION SYSTEMS AND METHODS FOR LINING A
  CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  

 

3

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PATENTS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Patent Number

  	
   

  	
  Grant Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/990407

  	
   

  	
  11/21/2001

  	
   

  	
  6530516

  	
   

  	
  3/11/2003

  	
   

  	
  SELF-DEPLOYING CARTON BOTTOM

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/609662

  	
   

  	
  6/30/2000

  	
   

  	
  6942113

  	
   

  	
  9/13/2005

  	
   

  	
  POINT OF PURCHASE DISPLAY

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/090015

  	
   

  	
  6/3/1998

  	
   

  	
  6155479

  	
   

  	
  12/5/2000

  	
   

  	
  SELF-ERECTING CONTAINERS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/535611

  	
   

  	
  9/8/1995

  	
   

  	
  5601232

  	
   

  	
  2/11/1997

  	
   

  	
  BOTTOM CLOSURE RESTRAINMENT APPARATUS FOR PALLETIZED
  BULK BIN CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  51

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/365887

  	
   

  	
  12/29/1994

  	
   

  	
  5555982

  	
   

  	
  9/17/1996

  	
   

  	
  CONVERTIBLE SHIPPING CONTAINER-DISPLAY APPARATUS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/329211

  	
   

  	
  10/26/1994

  	
   

  	
  5507430

  	
   

  	
  4/16/1996

  	
   

  	
  SHIPPING CONTAINER APPARATUS CONVERTIBLE FOR USE AS A
  DISPLAY APPARATUS FOR GOODS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/945192

  	
   

  	
  9/20/2004

  	
   

  	
  7207441

  	
   

  	
  4/24/2007

  	
   

  	
  BLISTER DISPLAY PACKAGE HAVING TEAR- RESISTANT SECURITY
  TAPE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/326544

  	
   

  	
  10/20/1994

  	
   

  	
  5590606

  	
   

  	
  1/7/1997

  	
   

  	
  SHIPPING PLATFORM APPARATUS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/964847

  	
   

  	
  11/5/1997

  	
   

  	
  5934474

  	
   

  	
  8/10/1999

  	
   

  	
  COLLAPSIBLE PALLETIZED CONTAINER SYSTEM

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/060583

  	
   

  	
  5/12/1993

  	
   

  	
  5509620

  	
   

  	
  4/23/1996

  	
   

  	
  ROTATABLE REEL APPARATUS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/106560

  	
   

  	
  6/29/1998

  	
   

  	
  5894933

  	
   

  	
  4/20/1999

  	
   

  	
  STACKABLE MERCHANDISING CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/184096

  	
   

  	
  7/19/2005

  	
   

  	
  7375633

  	
   

  	
  5/20/2008

  	
   

  	
  METHODS AND SYSTEMS FOR IN-LINE RFID TRANSPONDER TESTING

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/379177

  	
   

  	
  8/23/1999

  	
   

  	
  6247589

  	
   

  	
  6/19/2001

  	
   

  	
  CONTAINER FOR AN ARTICLE OF HAND-HELD POWER EQUIPMENT

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc. and the
  Toro Company

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/204646

  	
   

  	
  12/2/1998

  	
   

  	
  6027017

  	
   

  	
  2/22/2000

  	
   

  	
  CONTAINER APPARATUS AND METHOD FOR CONVERTING A SHIPPING
  CONTAINER INTO ONE OR MORE DISPLAY TRAYS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  61

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/690074

  	
   

  	
  7/31/1996

  	
   

  	
  5853120

  	
   

  	
  12/29/1998

  	
   

  	
  TRAY APPARATUS WITH REINFORCED CORNER STRUCTURE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  62

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  29/000364

  	
   

  	
  10/13/1992

  	
   

  	
  D356216

  	
   

  	
  3/14/1995

  	
   

  	
  PORTABLE SPECTATOR SEAT

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  

 

4

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PATENTS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Patent Number

  	
   

  	
  Grant Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  63

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/306282

  	
   

  	
  5/6/1999

  	
   

  	
  6253993

  	
   

  	
  7/3/2001

  	
   

  	
  SELF-ERECTING CONTAINER APPARATUS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  64

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/778496

  	
   

  	
  1/3/1997

  	
   

  	
  5832841

  	
   

  	
  11/10/1998

  	
   

  	
  SHIPPING PLATFORM APPARATUS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  65

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/045089

  	
   

  	
  3/20/1998

  	
   

  	
  5984120

  	
   

  	
  11/16/1999

  	
   

  	
  POINT-OF-PURCHASE DISPLAY SYSTEM AND METHOD FOR
  FORMATION THEREOF

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  66

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/187512

  	
   

  	
  11/6/1998

  	
   

  	
  6076475

  	
   

  	
  6/20/2000

  	
   

  	
  DIVISIBLE SHIPPING PLATFORM APPARATUS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  67

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/773445

  	
   

  	
  12/26/1996

  	
   

  	
  5799797

  	
   

  	
  9/1/1998

  	
   

  	
  CORNER POST CONSTRUCTION

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  68

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/403646

  	
   

  	
  3/14/1995

  	
   

  	
  5598685

  	
   

  	
  2/4/1997

  	
   

  	
  APPARATUS AND PROCESS FOR PACKAGING FRAGILE ARTICLES

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  69

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  29/077066

  	
   

  	
  9/25/1997

  	
   

  	
  D417842

  	
   

  	
  12/21/1999

  	
   

  	
  SPOUTED CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  70

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/889897

  	
   

  	
  7/8/1997

  	
   

  	
  5799864

  	
   

  	
  9/1/1998

  	
   

  	
  CONTAINER CLOSURE ARRANGEMENT

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  71

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/167214

  	
   

  	
  12/16/1993

  	
   

  	
  5368225

  	
   

  	
  11/29/1994

  	
   

  	
  CONTAINER WITH TRUNCATED CORNERS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  72

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/293149

  	
   

  	
  8/19/1994

  	
   

  	
  5402929

  	
   

  	
  4/4/1995

  	
   

  	
  CONTAINER TRAY-COVER CORNER CLOSURE ARRANGEMENT

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  73

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  07/902850

  	
   

  	
  6/23/1992

  	
   

  	
  5277310

  	
   

  	
  1/11/1994

  	
   

  	
  COMPOSITE APPLIANCE PACKAGE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  74

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/186859

  	
   

  	
  3/22/1994

  	
   

  	
  5358173

  	
   

  	
  10/25/1994

  	
   

  	
  CONTAINER CLOSURE FLAP ARRANGEMENT

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  75

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/401432

  	
   

  	
  3/9/1995

  	
   

  	
  5516034

  	
   

  	
  5/14/1996

  	
   

  	
  PRODUCE TRAY

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  76

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/361161

  	
   

  	
  12/21/1994

  	
   

  	
  5573175

  	
   

  	
  11/12/1996

  	
   

  	
  OCTAGONAL CONTAINER WITH LOCK BOTTOM

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  77

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/699724

  	
   

  	
  9/3/1996

  	
   

  	
  5692672

  	
   

  	
  12/2/1997

  	
   

  	
  CONTAINER END CLOSURE ARRANGEMENT

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  

 

5

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PATENTS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Patent Number

  	
   

  	
  Grant Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  78

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/651934

  	
   

  	
  5/21/1996

  	
   

  	
  5692714

  	
   

  	
  12/2/1997

  	
   

  	
  AUTOMATIC SELF-ERECTING DISPLAY STAND

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  79

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  08/597828

  	
   

  	
  2/7/1996

  	
   

  	
  5792317

  	
   

  	
  8/11/1998

  	
   

  	
  WET END STARCH APPLICATION

  	
   

  	
  Jefferson Smurfit Corporation (U.S.) and GL&V-Paper
  Machine Group, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  80

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/133549

  	
   

  	
  8/13/1998

  	
   

  	
  5979746

  	
   

  	
  11/9/1999

  	
   

  	
  TRAY APPARATUS WITH REINFORCED CORNER STRUCTURE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  81

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  09/255257

  	
   

  	
  2/22/1999

  	
   

  	
  6139938

  	
   

  	
  10/31/2000

  	
   

  	
  HIGH FLUTE DENSITY, PRINTABLE, CORRUGATED PAPERBOARD

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  82

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/533244

  	
   

  	
  9/19/2006

  	
   

  	
  7381176

  	
   

  	
  6/3/2008

  	
   

  	
  METHOD AND MACHINE FOR CONSTRUCTING A COLLAPSIBLE BULK
  BIN

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  83

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/681048

  	
   

  	
  3/1/2007

  	
   

  	
  7452317

  	
   

  	
  11/18/2008

  	
   

  	
  AIR EVACUATION SYSTEMS AND METHODS FOR LINING A
  CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  84

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/197045

  	
   

  	
  7/17/2002

  	
   

  	
  6966447

  	
   

  	
  11/22/2005

  	
   

  	
  CORRUGATED DISPLAY BASE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  09/520888

  	
   

  	
  3/7/2000

  	
   

  	
  6227438

  	
   

  	
  5/8/2001

  	
   

  	
  EXPANDABLE DEPTH TRAY

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  86

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  08/611960

  	
   

  	
  3/7/1996

  	
   

  	
  5753073

  	
   

  	
  5/19/1998

  	
   

  	
  HIGH SELECTIVITY NITRIDE TO OXIDE ETCH PROCESS

  	
   

  	
  Smurfit-Stone Container Canada, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  87

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  08/567674

  	
   

  	
  12/5/1995

  	
   

  	
  5630545

  	
   

  	
  5/20/1997

  	
   

  	
  APPARATUS FOR PACKAGING ARTICLES

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  88

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  08/050815

  	
   

  	
  4/22/1993

  	
   

  	
  5362346

  	
   

  	
  11/8/1994

  	
   

  	
  METHOD OF MAKING REINFORCED CORRUGATED BOARD

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  89

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  07/625916

  	
   

  	
  12/11/1990

  	
   

  	
  5083996

  	
   

  	
  1/28/1992

  	
   

  	
  METHOD FOR MANUFACTURING PALLET ASSEMBLY

  	
   

  	
  Jefferson Smurfit Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  07/613287

  	
   

  	
  11/15/1990

  	
   

  	
  5022582

  	
   

  	
  6/11/1991

  	
   

  	
  CORRUGATED BOX FLAP LOCKING FEATURE FOR PRODUCE AND THE
  LIKE

  	
   

  	
  Jefferson Smurfit Corporation (U.S.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  91

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  29/200049

  	
   

  	
  2/18/2004

  	
   

  	
  D512632

  	
   

  	
  12/13/2005

  	
   

  	
  THREE PIECE BEVERAGE CARRIER

  	
   

  	
  Smurfit-Stone Container Corporation

  

 

6

 

Patent
Applications

 

See attached.

 

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PENDING PATENT APPLICATIONS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/982601

  	
   

  	
  11/5/2004

  	
   

  	
  METHODS AND APPARATUS FOR FORMING A CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/158612

  	
   

  	
  6/22/2005

  	
   

  	
  METHODS AND APPARATUS FOR RFID TRANSPONDER FABRICATION

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/158704

  	
   

  	
  6/22/2005

  	
   

  	
  METHODS AND SYSTEMS FOR IN-LINE RFID TRANSPONDER
  ASSEMBLY

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/158402

  	
   

  	
  6/22/2005

  	
   

  	
  METHODS AND SYSTEMS FOR IN-LINE RFID TRANSPONDER
  ASSEMBLY

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/148729

  	
   

  	
  6/9/2005

  	
   

  	
  SHIPPING CONTAINERS WITH STACKING SUPPORT STRUCTURES

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/646912

  	
   

  	
  8/22/2003

  	
   

  	
  POINT-OF-PURCHASE DISPLAY WITH RFID INVENTORY CONTROL

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  10/878882

  	
   

  	
  6/28/2004

  	
   

  	
  PAPERBOARD MATERIAL HAVING INCREASED STRENGTH AND METHOD
  FOR MAKING SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  United States

  	
   

  	
  Patent Cooperation Treaty

  	
   

  	
  10/501261

  	
   

  	
  1/9/2003

  	
   

  	
  CORRUGATED HANGING DISPENSER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/318304

  	
   

  	
  12/23/2005

  	
   

  	
  BAG-IN-BOX BEVERAGE CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/254528

  	
   

  	
  10/20/2005

  	
   

  	
  METHODS AND SYSTEMS FOR MONITORING A SHELF LIFE OF A
  PRODUCT STORED WITHIN A CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/303395

  	
   

  	
  12/16/2005

  	
   

  	
  BLANK AND METHODS AND APPARATUS FOR FORMING A DISPENSER
  CASE FROM THE BLANK

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/420990

  	
   

  	
  5/30/2006

  	
   

  	
  DISPLAY CONTAINER HAVING INTEGRAL DISPLAY PANEL AND
  METHOD FOR CONSTRUCTING THE SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/359968

  	
   

  	
  2/22/2006

  	
   

  	
  CONTAINER HAVING RECLOSABLE END WALL

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/364261

  	
   

  	
  2/28/2006

  	
   

  	
  APPARATUS AND METHOD FOR FEEDING A MATERIAL WEB TO A
  MACHINE

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/392128

  	
   

  	
  3/29/2006

  	
   

  	
  BLANK, APPARATUS AND METHOD FOR CONSTRUCTING CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/533233

  	
   

  	
  9/19/2006

  	
   

  	
  COLLAPSIBLE BULK BIN AND METHODS FOR CONSTRUCTING THE
  SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  

 

1

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PENDING PATENT APPLICATIONS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/599119

  	
   

  	
  11/14/2006

  	
   

  	
  SHIPPING AND DISPLAY CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/553080

  	
   

  	
  10/26/2006

  	
   

  	
  BLANK OF SHEET MATERIAL AND METHODS AND APPARATUS FOR
  FORMING A CONTAINER FROM THE BLANK

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/476271

  	
   

  	
  6/28/2006

  	
   

  	
  REINFORCED BULK BIN AND METHODS FOR MAKING SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/538342

  	
   

  	
  10/3/2006

  	
   

  	
  BLANK AND METHODS AND APPARATUS FOR FORMING A BARREL
  FROM THE BLANK

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/676418

  	
   

  	
  2/19/2007

  	
   

  	
  CONTAINER FOR SHIPPING A PRODUCT AND METHOD OF
  CONSTRUCTING THE SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/626029

  	
   

  	
  1/23/2007

  	
   

  	
  DISPLAY PACKAGE CONSTRUCTIONS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/626198

  	
   

  	
  1/23/2007

  	
   

  	
  DISPLAY PACKAGE CONSTRUCTIONS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/754403

  	
   

  	
  5/29/2007

  	
   

  	
  CONTAINER INCLUDING AN INTERACTIVE GAME BOARD AND BLANK
  FOR MAKING THE SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/874669

  	
   

  	
  10/18/2007

  	
   

  	
  BAG-IN-BOX CONTAINER AND METHOD OF CONSTRUCTING THE SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/779723

  	
   

  	
  7/18/2007

  	
   

  	
  MULTI-SHELF PAPERBOARD DISPLAY UNIT AND METHOD OF
  ASSEMBLING THE SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  11/943338

  	
   

  	
  11/20/2007

  	
   

  	
  QUADCORNER TRAY WRAPPER DESIGNS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/040486

  	
   

  	
  2/29/2008

  	
   

  	
  BLANK AND METHODS OF CONSTRUCTING A CONTAINER FROM THE
  BLANK

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  61/032664

  	
   

  	
  2/29/2008

  	
   

  	
  BALER MACHINE MONITORING AND PERFORMANCE INTERFACES,
  SYSTEMS AND METHODS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  

 

2

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PENDING PATENT APPLICATIONS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  61/037856

  	
   

  	
  3/19/2008

  	
   

  	
  SHIPPING CHOCKS AND METHODS FOR LOADING
  CYLINDRICAL-SHAPED OBJECTS FOR TRANSPORT

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/209949

  	
   

  	
  9/12/2008

  	
   

  	
  CONTAINER HAVING AN AUTOMATICALLY LOCKING BOTTOM AND
  BLANKS FOR MAKING THE SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/102235

  	
   

  	
  4/14/2008

  	
   

  	
  METHOD AND MACHINE FOR CONSTRUCTING A COLLAPSIBLE BULK
  BIN

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  61/048871

  	
   

  	
  4/29/2008

  	
   

  	
  POLYGONAL CONTAINER AND BLANK FOR MAKING THE SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  61/051302

  	
   

  	
  5/7/2008

  	
   

  	
  REINFORCED POLYGONAL CONTAINER AND BLANK FOR MAKING THE
  SAME

  	
   

  	
  Not yet assigned b/c provisional filing.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/174440

  	
   

  	
  7/16/2008

  	
   

  	
  BALER MACHINE MONITORING AND PERFORMANCE INTERFACES,
  SYSTEMS AND METHODS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/211191

  	
   

  	
  9/16/2008

  	
   

  	
  SHIPPING CHOCKS AND METHODS FOR LOADING
  CYLINDRICAL-SHAPED OBJECTS FOR TRANSPORT

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/197937

  	
   

  	
  8/25/2008

  	
   

  	
  CONTAINER WITH INNER REINFORCEMENT AND METHOD AND SYSTEM
  OF MANUFACTURING

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/239396

  	
   

  	
  9/26/2008

  	
   

  	
  METHODS AND MACHINES FOR FORMING A POLYGONAL CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/264664

  	
   

  	
  11/4/2008

  	
   

  	
  POLYGONAL CONTAINER AND BLANK FOR MAKING THE SAME

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/256051

  	
   

  	
  10/22/2008

  	
   

  	
  REINFORCED POLYGONAL CONTAINERS AND BLANKS FOR MAKING
  THE SAME

  	
   

  	
  Not yet assigned. Waiting for signed papers from
  inventor.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  61/107614

  	
   

  	
  10/22/2008

  	
   

  	
  A MACHINE FOR FORMING REINFORCED POLYGONAL CONTAINERS
  FROM BLANKS

  	
   

  	
  Not yet assigned b/c provisional filing.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  United States

  	
   

  	
  National

  	
   

  	
  12/267378

  	
   

  	
  11/7/2008

  	
   

  	
  INTEGRATED CARTON LID DESIGNS

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc. under the
  assignment of the parent patent.

  

 

3

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. PENDING PATENT APPLICATIONS

 

	
  1

  	
   

  	
  Country

  	
   

  	
  Filing Type

  	
   

  	
  Application

  Number

  	
   

  	
  Application

  Date

  	
   

  	
  Title

  	
   

  	
  Current Owner

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  44

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  11/439683

  	
   

  	
  5/24/2006

  	
   

  	
  FLIP-UP HEADERS FOR POINT-OF-PURCHASE DISPLAYS

  	
   

  	
  Smurfit-Stone Container Corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  45

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
  10/982601

  	
   

  	
  11/5/2004

  	
   

  	
  METHODS AND APPARATUS FOR FORMING A CONTAINER

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  	
   

  

 

4

 

Registered Trademarks

 

Canada

 

	
  Trademark

  	
   

  	
  Status

  	
   

  	
  App.No.

  	
   

  	
  Filing
  Date

  	
   

  	
  Reg.
  No.

  	
   

  	
  Reg.
  Date

  	
   

  
	
  COPLY

  	
   

  	
  Registered

  	
   

  	
  409157

  	
   

  	
  4/1/1977

  	
   

  	
  TMA229101

  	
   

  	
  7/14/1978

  	
   

  
	
  ECO-FILM

  	
   

  	
  Registered

  	
   

  	
  699423

  	
   

  	
  2/20/1992

  	
   

  	
  TMA416028

  	
   

  	
  8/27/1993

  	
   

  

 

	
  Trademark

  	
   

  	
  Status

  	
   

  	
  App.No.

  	
   

  	
  Filing
  Date

  	
   

  	
  Reg.
  No.

  	
   

  	
  Reg.
  Date

  	
   

  
	
  AUTOBIN

  	
   

  	
  Allowed

  	
   

  	
  1256866

  	
   

  	
  5/6/2005

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  CHEMCOR

  	
   

  	
  Registered

  	
   

  	
  310214

  	
   

  	
  1/12/1968

  	
   

  	
  TMA158488

  	
   

  	
  9/27/1968

  	
   

  
	
  ECOWRAP

  	
   

  	
  Registered

  	
   

  	
  730490

  	
   

  	
  6/4/1993

  	
   

  	
  TMA443919

  	
   

  	
  6/16/1995

  	
   

  
	
  

  GRAFXFLÜT DESSIN  

  	
   

  	
  Registered

  	
   

  	
  856480

  	
   

  	
  9/18/1997

  	
   

  	
  TMA518251

  	
   

  	
  10/20/1999

  	
   

  
	
  HYDROCOR

  	
   

  	
  Registered

  	
   

  	
  323156

  	
   

  	
  6/10/1969

  	
   

  	
  TMA171951

  	
   

  	
  10/9/1970

  	
   

  
	
  ICE-PAK

  	
   

  	
  Registered

  	
   

  	
  300665

  	
   

  	
  11/7/1966

  	
   

  	
  TMA156627

  	
   

  	
  5/3/1968

  	
   

  
	
  

  LOGO DE
  CARTONS

  ST-LAURENT

  	
   

  	
  Registered

  	
   

  	
  878695

  	
   

  	
  5/19/1998

  	
   

  	
  TMA535710

  	
   

  	
  10/25/2000

  	
   

  
	
  

  	
   

  	
  Registered

  	
   

  	
  1263479

  	
   

  	
  7/4/2005

  	
   

  	
  TMA700912

  	
   

  	
  11/15/2007

  	
   

  
	
  PREPRINT THE OUTSIDE EDGE & Design  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PRINTERS’ SELECT

  	
   

  	
  Registered

  	
   

  	
  856481

  	
   

  	
  9/18/1997

  	
   

  	
  TMA508325

  	
   

  	
  2/23/1999

  	
   

  
	
  RECALT

  	
   

  	
  Registered

  	
   

  	
  1076109

  	
   

  	
  9/25/2000

  	
   

  	
  TMA565366

  	
   

  	
  7/30/2002

  	
   

  

 

 

	
  Trademark

  	
   

  	
  Status

  	
   

  	
  App.No.

  	
   

  	
  Filing Date

  	
   

  	
  Reg. No.

  	
   

  	
  Reg. Date

  	
   

  
	
  RECYCLACORR

  	
   

  	
  Allowed

  	
   

  	
  1275724

  	
   

  	
  10/14/2005

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  SNO-TOP

  	
   

  	
  Registered

  	
   

  	
  281956

  	
   

  	
  4/28/1964

  	
   

  	
  TMA138119

  	
   

  	
  11/13/1964

  	
   

  
	
  SNO-TOP PLUS

  	
   

  	
  Registered

  	
   

  	
  808744

  	
   

  	
  4/2/1996

  	
   

  	
  TMA473599

  	
   

  	
  3/25/1997

  	
   

  
	
  

  TUKOTE & DESIGN

  	
   

  	
  Registered

  	
   

  	
  274193

  	
   

  	
  2/27/1963

  	
   

  	
  TMA138084

  	
   

  	
  11/13/1964

  	
   

  

 

United States

 

See attached.

 

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. and FOREIGN REGISTERED TRADEMARKS

 

	
  1

  	
   

  	
  Mark
  Name

  	
   

  	
  Country

  	
   

  	
  Case
  Type

  	
   

  	
  Filing
  Type

  	
   

  	
  Class

  Number

  	
   

  	
  Goods

  	
   

  	
  Application
  No.

  	
   

  	
  Application
  Date

  	
   

  	
  Registration

  No.

  	
   

  	
  Registration

  Date

  	
   

  	
  Current
  Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  CORDECK 4 (AND DESIGN)

  	
   

  	
  Australia

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated paperboard pallets, containers and
  packaging

  	
   

  	
  592958

  	
   

  	
  12/21/1992

  	
   

  	
  592958

  	
   

  	
  3/16/1995

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  CORDECK 4 (AND DESIGN)

  	
   

  	
  Austria

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated paperboard pallets

  	
   

  	
  AM 56/93

  	
   

  	
  1/8/1993

  	
   

  	
  147344

  	
   

  	
  5/24/1993

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  CORDECK 4 (AND DESIGN)

  	
   

  	
  Benelux

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  20

  	
   

  	
  Pallets made of corrugated cardboard or corrugated
  fiberboard

  	
   

  	
  791043

  	
   

  	
  12/30/1992

  	
   

  	
  532109

  	
   

  	
  12/30/1992

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  I2I

  	
   

  	
  Benelux

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  35, 42

  	
   

  	
  Marketing and marketing consultancy in connection
  with the choice of packagings; preparation and management of databases,
  containing data on packaging materials in International Class 35; Design
  and development of packaging, including boxes, bags and other containers,
  taking into account marketing issues in International Class 42

  	
   

  	
  1066675

  	
   

  	
  11/26/2004

  	
   

  	
  767222

  	
   

  	
  6/1 0/2005

  	
   

  	
  Smurfit-Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  META SYSTEMS

  	
   

  	
  Brazil

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Machine for making boxes

  	
   

  	
  828133956

  	
   

  	
  2/9/2006

  	
   

  	
  828133956

  	
   

  	
  4/1/2008

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  RAP-A-MAT (AND DESIGN)

  	
   

  	
  Canada

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
   

  	
   

  	
  Unitary paperboard blanks cut and scored for folding
  into a container encasing products therein

  	
   

  	
  343433

  	
   

  	
  6/8/1971

  	
   

  	
  TMA327935

  	
   

  	
  12/7/1979

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  STONE CONTAINER CORPORATION

  	
   

  	
  Canada

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
   

  	
   

  	
  Plastic bags and sacks; paper and paper articles;
  namely, liner board, corrugated medium, paper board, box board and corrugated
  containers; paper and paper articles; namely packing and packaging paper,
  paper board, newsprint, paper bags and sacks

  	
   

  	
  673800

  	
   

  	
  1/18/1991

  	
   

  	
  TMA422156

  	
   

  	
  1/21/1994

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  PREPRINT THE OUTSIDE EDGE (AND DESIGN)

  	
   

  	
  Canada

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
   

  	
   

  	
  Corrugated containers, containerboard and paperboard
  packaging

  	
   

  	
  1263479

  	
   

  	
  7/4/2005

  	
   

  	
  TMA700912

  	
   

  	
  11/15/2007

  	
   

  	
  Smurfit-Stone Container Canada, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  I2I

  	
   

  	
  China P.R.

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  40

  	
   

  	
  Consultation services in the field of processing and
  erecting paper packaging and containers, corrugated containers, folding
  cartons, multiwall bags and trays; consultation services in the field of
  processing and erecting plastic packaging

  	
   

  	
  4386526

  	
   

  	
  11/29/2004

  	
   

  	
  4386526

  	
   

  	
  6/21/2008

  	
   

  	
  Smurfit-Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  SMURFIT-STONE CONTAINER CORPORATION

  	
   

  	
  Community Trademark

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  1, 7, 16, 17, 19, 22, 31, 35, and 40

  	
   

  	
  Agricultural and forestry products, namely market
  pulp

  	
   

  	
  984765

  	
   

  	
  11/11/1998

  	
   

  	
  984765

  	
   

  	
  6/26/2000

  	
   

  	
  Smurfit-Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  STONE

  	
   

  	
  France

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  17

  	
   

  	
  Plastics in the form of sheets and rolls for use in
  manufacture

  	
   

  	
  268213

  	
   

  	
  2/18/1991

  	
   

  	
  1645014

  	
   

  	
  2/18/1991

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  STONE CONTAINER CORPORATION

  	
   

  	
  France

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16, 22

  	
   

  	
  Paper and paper articles; namely, liner board,
  corrugated medium, paper board, box board and corrugated containers; Plastic
  bags and sacks

  	
   

  	
  261220

  	
   

  	
  1/15/1991

  	
   

  	
  1681305

  	
   

  	
  1/15/1991

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  STONE

  	
   

  	
  France

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16, 22

  	
   

  	
  Paper, newsprint, cardboard; goods of paper and
  cardboard, namely corrugated board and material for corrugated board,
  cardboard cover, corrugated medium for the manufacture of corrugated board,
  containers made of paper, cardboard and corrugated board, paper bags and
  sacks as well as liner board and boxboard; Plastic bags and sacks for the
  transport and storage of materials in bulk; waste bags

  	
   

  	
  261221

  	
   

  	
  1/15/1991

  	
   

  	
  1650055

  	
   

  	
  1/15/1991

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  I2I

  	
   

  	
  France

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  Design and consultation services in the field of
  designing,

  	
   

  	
  43325973

  	
   

  	
  11/25/2004

  	
   

  	
  43325973

  	
   

  	
  11/25/2004

  	
   

  	
  Smurfit-Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  CORDECK 4 (AND DESIGN)

  	
   

  	
  France

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated paperboard pallets

  	
   

  	
  92/447126

  	
   

  	
  12/22/1992

  	
   

  	
  92447126

  	
   

  	
  6/4/1993

  	
   

  	
  Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  I2I

  	
   

  	
  Germany

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  35, 42

  	
   

  	
  Consultation services in the field of marketing; compilation

  	
   

  	
  30467308.0/42

  	
   

  	
  11/26/2004

  	
   

  	
  30467308

  	
   

  	
  2/14/2005

  	
   

  	
  Smurfit-Stone Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  STONE

  	
   

  	
  Germany

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16, 22

  	
   

  	
  Paper, newsprint, cardboard; goods of paper and
  cardboard

  	
   

  	
  St 17 207/16 Wz

  	
   

  	
  1/14/1991

  	
   

  	
  2009346

  	
   

  	
  2/12/1992

  	
   

  	
  Stone Container Corporation

  

 

1

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. and FOREIGN REGISTERED TRADEMARKS

 

	
  19

  	
   

  	
  CORDECK 4 (AND DESIGN)

  	
   

  	
  Germany

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  20

  	
   

  	
  Pallets made of
  corrugated paperboard used for the shipment

  	
   

  	
  St 18312/20 Wz

  	
   

  	
  12/21/1992

  	
   

  	
  2069001

  	
   

  	
  6/24/1994

  	
   

  	
  Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  STONE

  	
   

  	
  Germany

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  17

  	
   

  	
  Plastics in the form of
  film and rolls (semi-finished)

  	
   

  	
  St17256/17Wz

  	
   

  	
  2/20/1991

  	
   

  	
  2077820

  	
   

  	
  9/16/1994

  	
   

  	
  Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  I2I

  	
   

  	
  Great Britain

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  35, 39, 40, an

  	
   

  	
  Design services in
  relation to the design, development, fabrication

  	
   

  	
  2378908

  	
   

  	
  11/25/2004

  	
   

  	
  2378908

  	
   

  	
  7/7/2006

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  CORDECK 4 (AND DESIGN)

  	
   

  	
  Great Britain

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated paperboard
  pallets

  	
   

  	
  1522194

  	
   

  	
  12/23/1992

  	
   

  	
  1522194

  	
   

  	
  5/6/1994

  	
   

  	
  Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  I2I

  	
   

  	
  Hong Kong

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  35, 42

  	
   

  	
  Consultation services in
  the field of marketing paper

  	
   

  	
  300323469

  	
   

  	
  11/22/2004

  	
   

  	
  300323469

  	
   

  	
  11/22/2004

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  STONE

  	
   

  	
  Mexico

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  17

  	
   

  	
  Plastics in the form of
  sheets and rolls for use in manufacture

  	
   

  	
  107132

  	
   

  	
  2/21/1991

  	
   

  	
  430929

  	
   

  	
  2/10/1993

  	
   

  	
  Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  STONE

  	
   

  	
  Mexico

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper and paper
  articles; liner board, corrugated medium, paperboad, box board, and
  corrugated containers

  	
   

  	
  104986

  	
   

  	
  1/18/1991

  	
   

  	
  404363

  	
   

  	
  1/28/1992

  	
   

  	
  Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  26

  	
   

  	
  STONE

  	
   

  	
  Mexico

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Plastic bags and sacks

  	
   

  	
  104987

  	
   

  	
  1/18/1991

  	
   

  	
  409485

  	
   

  	
  3/30/1992

  	
   

  	
  Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27

  	
   

  	
  AUTOBIN

  	
   

  	
  Mexico

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated bin to hold
  food items

  	
   

  	
  718707

  	
   

  	
  5/20/2005

  	
   

  	
  897953

  	
   

  	
  8/30/2005

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  PREPRINT THE OUTSIDE
  EDGE (AND DESIGN)

  	
   

  	
  Mexico

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  725300

  	
   

  	
  6/27/2005

  	
   

  	
  921138

  	
   

  	
  2/24/2006

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  I2I

  	
   

  	
  Spain

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  Design and consultation
  services in the field of designing

  	
   

  	
  2624824

  	
   

  	
  11/26/2004

  	
   

  	
  2624824

  	
   

  	
  6/2/2005

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper and paper
  articles; namely, packing and packaging paper

  	
   

  	
  74/079,920

  	
   

  	
  7/19/1990

  	
   

  	
  1,717,973

  	
   

  	
  9/22/1992

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  31

  	
   

  	
  STONE

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper and paper
  articles; namely, packing and packaging paper

  	
   

  	
  74/081,449

  	
   

  	
  7/19/1990

  	
   

  	
  1,686,352

  	
   

  	
  5/12/1992

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Machinery for
  assembling, articulating, and filling a variety of packagin containers

  	
   

  	
  74/080,530

  	
   

  	
  7/23/1990

  	
   

  	
  1,647,891

  	
   

  	
  6/18/1991

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  HYDROCORR

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated paperboard

  	
   

  	
  73/554,713

  	
   

  	
  8/22/1985

  	
   

  	
  1,391,574

  	
   

  	
  4/29/1986

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  17

  	
   

  	
  Plastics in the form of
  sheets and rolls for use in manufacture

  	
   

  	
  74/092,072

  	
   

  	
  8/28/1990

  	
   

  	
  1,648,859

  	
   

  	
  6/25/1991

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  CORDECK

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  20

  	
   

  	
  Corrugated paperboard
  pallets

  	
   

  	
  73/579,273

  	
   

  	
  1/24/1986

  	
   

  	
  1,404,991

  	
   

  	
  8/12/1986

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  PACKOMATIC

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Packaging
  machinery—namely, machines

  	
   

  	
  71/300,622

  	
   

  	
  5/16/1930

  	
   

  	
  275,550

  	
   

  	
  9/23/1930

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  RAP-A-MAT

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Semi-automatic
  corrugated blank folding machines

  	
   

  	
  72/366,073

  	
   

  	
  7/23/1970

  	
   

  	
  942,326

  	
   

  	
  9/5/1972

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  38

  	
   

  	
  RAP-A-MAT

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Unitary paperboard
  blanks cut and scored for folding into a container

  	
   

  	
  72/366,074

  	
   

  	
  7/23/1970

  	
   

  	
  915,550

  	
   

  	
  6/29/1971

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  39

  	
   

  	
  YOUR PAPERBOARD
  SOLUTIONS COMPANY (AND DESIGN)

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  corrugated paperboard
  blanks; paperboard packaging

  	
   

  	
  76/307,795

  	
   

  	
  8/31/2001

  	
   

  	
  2,900,184

  	
   

  	
  11/2/2004

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  TUFF-TRAVELER

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  containers made of
  paperboard

  	
   

  	
  75/897,136

  	
   

  	
  1/14/2000

  	
   

  	
  2,406,399

  	
   

  	
  11/21/2000

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  META

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  cartons made of
  paperboard and blanks therefor

  	
   

  	
  75/362,298

  	
   

  	
  9/17/1997

  	
   

  	
  2,173,188

  	
   

  	
  7/14/1998

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  1, 21, 31

  	
   

  	
  Agricultural and forestry
  products; namely, market pulp

  	
   

  	
  74/109,427

  	
   

  	
  10/26/1990

  	
   

  	
  1,671,519

  	
   

  	
  1/14/1992

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper and paper
  articles, namely, liner board, corrugated medium

  	
   

  	
  74/079,965

  	
   

  	
  7/19/1990

  	
   

  	
  1,668,470

  	
   

  	
  12/17/1991

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  44

  	
   

  	
  STACKOR

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  High compression kraft
  linerboard and heavy duty corrugating

  	
   

  	
  73/629,145

  	
   

  	
  11/7/1986

  	
   

  	
  1,444,099

  	
   

  	
  6/23/1987

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  

 

2

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. and FOREIGN REGISTERED TRADEMARKS

 

	
  45

  	
   

  	
  STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  22

  	
   

  	
  Plastic bags and sacks
  for general use

  	
   

  	
  74/079,984

  	
   

  	
  7/19/1990

  	
   

  	
  1,649,531

  	
   

  	
  7/2/1991

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  46

  	
   

  	
  CORDECK 4 (AND DESIGN)

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated paperboard
  pallets

  	
   

  	
  74/292,165

  	
   

  	
  7/8/1992

  	
   

  	
  1,758,313

  	
   

  	
  3/16/1993

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  47

  	
   

  	
  DESIGN | BETTER | FASTER

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  Design and consultation
  services associated with paper packaging

  	
   

  	
  76/409,459

  	
   

  	
  5/17/2002

  	
   

  	
  2,713,227

  	
   

  	
  5/6/2003

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  48

  	
   

  	
  STONE-A-MATIC

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paperboard cartons

  	
   

  	
  73/358,116

  	
   

  	
  4/5/1982

  	
   

  	
  1,247,675

  	
   

  	
  8/9/1983

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  49

  	
   

  	
  SMURFIT-STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper and paper
  articles; namely, liner board, corrugated medium

  	
   

  	
  75/483,525

  	
   

  	
  5/12/1998

  	
   

  	
  2,543,229

  	
   

  	
  2/26/2002

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50

  	
   

  	
  SMURFIT-STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  40

  	
   

  	
  Recycling services in
  the field of paper and paper articles,

  	
   

  	
  75/483,890

  	
   

  	
  5/12/1998

  	
   

  	
  2,579,054

  	
   

  	
  6/11/2002

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  51

  	
   

  	
  SMURFIT-STONE

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  35

  	
   

  	
  Business marketing
  consulting services in the field of paper

  	
   

  	
  76/369,786

  	
   

  	
  2/12/2002

  	
   

  	
  2,884,730

  	
   

  	
  9/14/2004

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  52

  	
   

  	
  SMURFIT-STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Machinery for
  assembling, articulating, and filling a variety of packaging containers

  	
   

  	
  75/483,529

  	
   

  	
  5/12/1998

  	
   

  	
  2,540,794

  	
   

  	
  2/19/2002

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  53

  	
   

  	
  SMURFIT-STONE CONTAINER
  CORPORATION

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper and paper
  articles; namely, packing and packaging paper

  	
   

  	
  76/359,057

  	
   

  	
  1/15/2002

  	
   

  	
  2,677,299

  	
   

  	
  1/21/2003

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  CORRMAX

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated paperboard

  	
   

  	
  73/619,936

  	
   

  	
  9/15/1986

  	
   

  	
  1,437,294

  	
   

  	
  4/21/1987

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  55

  	
   

  	
  CUSTOMERONE (AND DESIGN)

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  Consulting services in
  the design, usage and manufacture of containers

  	
   

  	
  76/178,356

  	
   

  	
  12/11/2000

  	
   

  	
  2,786,934

  	
   

  	
  11/25/2003

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  56

  	
   

  	
  DESIGN BANK

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  Design and consultation
  services in the field of paper packaging

  	
   

  	
  76/164,201

  	
   

  	
  11/13/2000

  	
   

  	
  2,714,173

  	
   

  	
  5/6/2003

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  57

  	
   

  	
  DYNA STAK

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paperboard shipping
  containers

  	
   

  	
  73/505,515

  	
   

  	
  10/25/1984

  	
   

  	
  1,335,491

  	
   

  	
  5/14/1985

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  58

  	
   

  	
  IMAGE PAC

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  40, 42

  	
   

  	
  Photographic
  reproduction services; color separation service

  	
   

  	
  75/516,462

  	
   

  	
  7/9/1998

  	
   

  	
  2,339,978

  	
   

  	
  4/11/2000

  	
   

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  59

  	
   

  	
  PRODUCE-PAK

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paperboard box

  	
   

  	
  72/285,910

  	
   

  	
  11/30/1967

  	
   

  	
  861,217

  	
   

  	
  12/3/1968

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  60

  	
   

  	
  ROLL-CRADLE

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated cardboard
  boxes for protecting and supporting rolls

  	
   

  	
  74/169,528

  	
   

  	
  5/23/1991

  	
   

  	
  1,691,495

  	
   

  	
  6/9/1992

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  61

  	
   

  	
  SG (AND DESIGN)

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Labels and packaging
  made of paper

  	
   

  	
  73/228,071

  	
   

  	
  8/20/1979

  	
   

  	
  1,152,398

  	
   

  	
  4/28/1981

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  62

  	
   

  	
  SMURFIT RECYCLING

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  40

  	
   

  	
  Paper, glass, plastic
  and metal recycling services

  	
   

  	
  74/073,756

  	
   

  	
  6/28/1990

  	
   

  	
  1,734,154

  	
   

  	
  11/17/1992

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  63

  	
   

  	
  THE COMPLETE PACKAGE

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  Designing custom
  cartons, containers, displays, labels, core

  	
   

  	
  75/454,922

  	
   

  	
  3/23/1998

  	
   

  	
  2,360,665

  	
   

  	
  6/20/2000

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  64

  	
   

  	
  MISCELLANEOUS DESIGN

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  40, 42

  	
   

  	
  Photographic
  reproduction services; color separation service

  	
   

  	
  75/516,463

  	
   

  	
  7/9/1998

  	
   

  	
  2,437,878

  	
   

  	
  3/27/2001

  	
   

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  65

  	
   

  	
  VPS.5

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  78/816,501

  	
   

  	
  2/16/2006

  	
   

  	
  3,180,968

  	
   

  	
  12/5/2006

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  66

  	
   

  	
  VPS.10

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  78/816,498

  	
   

  	
  2/16/2006

  	
   

  	
  3,180,967

  	
   

  	
  12/5/2006

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  67

  	
   

  	
  VPS.20

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  78/816,493

  	
   

  	
  2/16/2006

  	
   

  	
  3,180,966

  	
   

  	
  12/5/2006

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  68

  	
   

  	
  VPS.35

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  78/816,491

  	
   

  	
  2/16/2006

  	
   

  	
  3,180,965

  	
   

  	
  12/5/2006

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  69

  	
   

  	
  RECYCLACORR

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paperboard treated with
  a wax substance used in the manufacture

  	
   

  	
  78/732,015

  	
   

  	
  10/12/2005

  	
   

  	
  3,370,405

  	
   

  	
  1/15/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  70

  	
   

  	
  SMURFIT-STONE (AND
  DESIGN)

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  40

  	
   

  	
  Manufacturing of
  paperboard and paper-based packaging

  	
   

  	
  78/797,351

  	
   

  	
  1/23/2006

  	
   

  	
  3,464,210

  	
   

  	
  7/8/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  71

  	
   

  	
  SMURFIT-STONE (AND
  DESIGN)

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  Graphic and structural
  design services in the field of paper

  	
   

  	
  78/797,348

  	
   

  	
  1/23/2006

  	
   

  	
  3,464,209

  	
   

  	
  7/8/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  

 

3

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. and FOREIGN REGISTERED TRADEMARKS

 

	
  72

  	
   

  	
  VPS.25

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  78/799,199

  	
   

  	
  1/25/2006

  	
   

  	
  3,446,736

  	
   

  	
  6/10/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  73

  	
   

  	
  VPS.40

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  78/799,206

  	
   

  	
  1/25/2006

  	
   

  	
  3,446,737

  	
   

  	
  6/10/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  74

  	
   

  	
  SMURFIT-STONE (AND
  DESIGN)

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Packaging machinery and
  structural parts therefor; machines

  	
   

  	
  78/797,374

  	
   

  	
  1/23/2006

  	
   

  	
  3,469,503

  	
   

  	
  7/15/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  75

  	
   

  	
  SMURFIT-STONE (AND
  DESIGN)

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper and paper
  articles, namely, liner board for corrugated containers

  	
   

  	
  78/797,370

  	
   

  	
  1/23/2006

  	
   

  	
  3,464,211

  	
   

  	
  7/8/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  76

  	
   

  	
  SMURFIT-STONE (AND
  DESIGN)

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  35

  	
   

  	
  Business marketing
  consulting services in the field of paper

  	
   

  	
  78/797,359

  	
   

  	
  1/23/2006

  	
   

  	
  3,455,438

  	
   

  	
  6/24/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  77

  	
   

  	
  AUTOBIN

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers
  for holding food items

  	
   

  	
  78/653,985

  	
   

  	
  6/20/2005

  	
   

  	
  3,395,942

  	
   

  	
  3/11/2008

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  78

  	
   

  	
  PREPRINT THE OUTSIDE
  EDGE (AND DESIGN)

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  78/696,676

  	
   

  	
  8/19/2005

  	
   

  	
  3,349,662

  	
   

  	
  12/4/2007

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  79

  	
   

  	
  SMART DISPLAY

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  9

  	
   

  	
  inventory control
  systems comprised of integrated-circuit chip based RFID (Radio Frequency
  Identification) tags; REID tag readers and transponders capable of
  communicating with the REID tags; and central processors that maintain a
  database of REID tags and their status, for monitoring the storage,
  transport, sales and theft of articles contained in paper, paperboard and/or
  corrugated paperboard containers, dispensers and displays

  	
   

  	
  76/542,566

  	
   

  	
  9/5/2003

  	
   

  	
  3,209,463

  	
   

  	
  2/13/2007

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  80

  	
   

  	
  ULTRA SHIELD

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper and paper articles
  coated with a durable film laminate

  	
   

  	
  78/573,527

  	
   

  	
  3/23/2005

  	
   

  	
  3,190,010

  	
   

  	
  12/26/2006

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  81

  	
   

  	
  PANASOFT

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  1

  	
   

  	
  Bleached kraft pulp for
  use in the manufacture of absorbent

  	
   

  	
  76/573,041

  	
   

  	
  1/28/2004

  	
   

  	
  3,124,018

  	
   

  	
  8/1/2006

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  82

  	
   

  	
  PANAFLUFF

  	
   

  	
  United States

  	
   

  	
  Intent To Use
  Application

  	
   

  	
  National

  	
   

  	
  1

  	
   

  	
  Bleached kraft pulp for
  use in the manufacture of absorbent

  	
   

  	
  76/573,689

  	
   

  	
  1/28/2004

  	
   

  	
  3,121,195

  	
   

  	
  7/25/2006

  	
   

  	
  Smurfit-Stone Container
  Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  83

  	
   

  	
  ANDERSOFT

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Tissue laminated
  corrugated paperboard

  	
   

  	
  75/276,784

  	
   

  	
  4/18/1997

  	
   

  	
  2,152,408

  	
   

  	
  4/21/1998

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  84

  	
   

  	
  YOUR PAPERBOARD
  SOLUTIONS COMPANY (AND DESIGN)

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated paperboard
  blanks; paperboard packaging

  	
   

  	
  76/307,794

  	
   

  	
  8/31/2001

  	
   

  	
  2,913,504

  	
   

  	
  12/21/2004

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  85

  	
   

  	
  VPS.30

  	
   

  	
  United States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated containers,
  containerboard and paperboard packaging

  	
   

  	
  78/816,916

  	
   

  	
  2/16/2006

  	
   

  	
  3,180,970

  	
   

  	
  12/5/2006

  	
   

  	
  Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  86

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  87

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  88

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  89

  	
   

  	
  DESIGN ONLY

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  16

  	
   

  	
  Single phase laminated paper
  and cardboard products in corrugated form

  	
   

  	
  78/847,927

  	
   

  	
  3/28/2006

  	
   

  	
  3,251,164

  	
   

  	
  6/12/2007

  	
   

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  90

  	
   

  	
  SMURFIT-IMAGE PAC
  DISPLAY GROUP

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  16, 40, 42

  	
   

  	
  Single phase laminated
  paper and cardboard products in corrugated form

  	
   

  	
  78/846,974

  	
   

  	
  3/27/2006

  	
   

  	
  3,246,870

  	
   

  	
  5/29/2007

  	
   

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  91

  	
   

  	
  IMAGINE PAC GRAPHICS

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  40, 42

  	
   

  	
  Photographic
  reproduction services

  	
   

  	
  78/846,902

  	
   

  	
  3/27/2006

  	
   

  	
  3,251,160

  	
   

  	
  6/12/2007

  	
   

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  92

  	
   

  	
  SMURFIT-IMAGE PAC

  	
   

  	
  United States

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  16, 40, 42

  	
   

  	
  Single phase laminated
  paper and cardboard products in corrugated form

  	
   

  	
  78/845,754

  	
   

  	
  3/24/2006

  	
   

  	
  3,246,863

  	
   

  	
  5/29/2007

  	
   

  	
  Smurfit-MBI

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  93

  	
   

  	
  INNOVATIVE PACKAGING

  	
   

  	
  State-Wisconsin

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  35, 40, 42, 100, 101,
  106

  	
   

  	
  Design, manufacturing,
  marketing, and sales of corrugated sheets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20055501569

  	
   

  	
  2/16/2005

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  94

  	
   

  	
  IPC

  	
   

  	
  State-Wisconsin

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  35, 40, 42, 100, 101,
  106

  	
   

  	
  Design, manufacturing,
  marketing, and sales of corrugated sheets

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  20055501512

  	
   

  	
  2/9/2005

  	
   

  	
  Smurfit-Stone Container
  Enterprises, Inc.

  

 

4

 

Trademark Applications

 

See attached.

 

 

SMURFIT-STONE CONTAINER ENTERPRISES

U.S. and FOREIGN PENDING TRADEMARK
APPLICATIONS

 

	
  1

  	
   

  	
  Mark Name

  	
   

  	
  Country

  	
   

  	
  Case Type

  	
   

  	
  Filing Type

  	
   

  	
  Class Number

  	
   

  	
  Goods

  	
   

  	
  Application No.

  	
   

  	
  Application Date

  	
   

  	
  Current Owner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  META
  SYSTEMS

  	
   

  	
  Brazil

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Cardboard
  for making boxes

  	
   

  	
  828133891

  	
   

  	
  2/9/2006

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  AUTOBIN

  	
   

  	
  Canada

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
   

  	
   

  	
  Corrugated
  bin to hold food items

  	
   

  	
  1256866

  	
   

  	
  5/6/2005

  	
   

  	
  Smurfit-Stone
  Container Canada Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  RECYCLACORR

  	
   

  	
  Canada

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paperboard
  treated with a wax substance used in the manufacture

  	
   

  	
  1275724

  	
   

  	
  10/14/2005

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  I2I

  	
   

  	
  Italy

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  Design
  and consultation services in the field of designing

  	
   

  	
  TO2004C003511

  	
   

  	
  11/26/2004

  	
   

  	
  Smurfit-Stone
  Container Corporation

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  META
  KD-8

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Cartons
  made of paperboard and blanks therefor

  	
   

  	
  77/285,554

  	
   

  	
  9/21/2007

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  VPS.15

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Corrugated
  containers, containerboard and paperboard packaging

  	
   

  	
  78/799,203

  	
   

  	
  1/25/2006

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  META
  TRAY-8

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Packaging
  machinery

  	
   

  	
  77/574,241

  	
   

  	
  9/19/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  META
  TRAY-8

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Cartons
  made of paperboard and blanks therefor

  	
   

  	
  77/574,244

  	
   

  	
  9/19/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  META
  FS

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Packaging
  machinery

  	
   

  	
  77/575,452

  	
   

  	
  9/22/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  META
  FS

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Cartons
  made of paperboard and blanks therefor

  	
   

  	
  77/575,450

  	
   

  	
  9/22/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  SMURFIT-STONE
  (AND DESIGN)

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  1

  	
   

  	
  Agricultural
  and forestry products, namely, wood and paper pulp

  	
   

  	
  78/797,386

  	
   

  	
  1/23/2006

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  META
  KD-8

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Packaging
  machinery

  	
   

  	
  77/303,912

  	
   

  	
  10/15/2007

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  REVUE

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Packaging,
  namely, corrugated paperboard cards surrounding a blister-type display pack

  	
   

  	
  77/442,963

  	
   

  	
  4/8/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  SMURFIT-STONE
  SOLVING IT FROM ALL SIDES

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  1

  	
   

  	
  Agricultural
  and forestry products, namely, wood and paper pulp

  	
   

  	
  77/511,279

  	
   

  	
  6/30/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  META
  WRAP-8

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Packaging
  machinery

  	
   

  	
  77/441,706

  	
   

  	
  4/7/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  META
  WRAP-8

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Cartons
  made of paperboard and blanks therefor

  	
   

  	
  77/441,711

  	
   

  	
  4/7/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  SMURFIT-STONE
  HI-BRITE

  	
   

  	
  United
  States

  	
   

  	
  Regular

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Linerboard
  for corrugated cardboard

  	
   

  	
  77/630,081

  	
   

  	
  12/10/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  SMURFIT-STONE
  SOLVING IT FROM ALL SIDES

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  7

  	
   

  	
  Packaging
  machinery and structural parts therefor; machines

  	
   

  	
  77/511,280

  	
   

  	
  6/30/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  SMURFIT-STONE
  SOLVING IT FROM ALL SIDES

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  Paper
  and paper articles, namely, liner board for corrugated

  	
   

  	
  77/511,283

  	
   

  	
  6/30/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21

  	
   

  	
  SMURFIT-STONE
  SOLVING IT FROM ALL SIDES

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  35

  	
   

  	
  Business
  marketing consulting services in the field of paper

  	
   

  	
  77/511,284

  	
   

  	
  6/30/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  SMURFIT-STONE
  SOLVING IT FROM ALL SIDES

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  40

  	
   

  	
  Manufacturing
  of paperboard and paper-based packaging to the order and specification of
  others; recycling services in the field of paper and paper articles, glass,
  plastic and metal

  	
   

  	
  77/511,286

  	
   

  	
  6/30/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  SMURFIT-STONE
  SOLVING IT FROM ALL SIDES

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  42

  	
   

  	
  graphic
  and structural design services in the field of paperboard products and other
  industrial and commercial containers

  	
   

  	
  77/511,287

  	
   

  	
  6/30/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  ENSULATE

  	
   

  	
  United
  States

  	
   

  	
  Intent
  To Use Application

  	
   

  	
  National

  	
   

  	
  16

  	
   

  	
  treated
  paperboard used in the manufacture of corrugated material used for forming
  corrugated boxes, containers, and other corrugated materials

  	
   

  	
  77/515,658

  	
   

  	
  7/7/2008

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  

 

1

 

Registered Copyrights

 

Smurfit-Stone Container Enterprises, Inc.

 

	
  Copyright Reg. No.

  	
   

  	
  Title

  	
   

  	
  Claimant

  	
   

  	
  Published

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TXu-397-586*

  	
   

  	
  Problem Tracking System Requirements Analysis and
  General System’s Design Report

  	
   

  	
  Stone Container Corporation & The Akemann
  Group, Ltd.

  	
   

  	
  1989

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TXu-423-675*

  	
   

  	
  Measurex process control program to IBM AS/400

  	
   

  	
  Stone Container Corporation

  	
   

  	
  1990

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TX-3-699-367*

  	
   

  	
  Bar Code Printing on Corrugated: An Update

  	
   

  	
  Stone Container Corporation

  	
   

  	
  1993

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PA-826-170

  	
   

  	
  Working Smarter Workshop

  	
   

  	
  Stone Container Corporation

  	
   

  	
  1996

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TX-4-416-199

  	
   

  	
  Working Smarter: Putting Counselor Selling and the Money
  Saver Process to Work for You

  	
   

  	
  Stone Container Corporation

  	
   

  	
  1996

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TX-4-417-110

  	
   

  	
  The Guide to Working Smarter

  	
   

  	
  Stone Container Corporation

  	
   

  	
  1996

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VA92983

  	
   

  	
  Mat with decorated surface

  	
   

  	
  Cameo Container Corporation

  	
   

  	
  1983

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VA72181

  	
   

  	
  Mat with decorated surface

  	
   

  	
  Cameo Container Corporation

  	
   

  	
  1980

  

 

 

Schedule 4.1

Closing
Documents

 

1.       Credit
Agreement

 

2.       Security and
Pledge Agreement

 

3.       Canadian
Security Agreement

 

4.       Deed
of Hypothec and Issue of Bonds made by each of Canadian Borrower, Smurfit-MBI,
MBI Limited, 3083527 Nova Scotia Company, Francobec Company, 639647 British
Columbia  Ltd. and SLP Finance I, Inc. and SLP Finance
II, Inc., as partners of SLP Finance General  Partnership,
in favour of JPMorgan Chase Bank, N.A., Toronto Branch, as fondé de pouvoir

 

5.       25%
Demand Bond issued by the Canadian Borrower in favour of the Canadian  Collateral Agent

 

6.       Pledge
of Bond Agreement made by Canadian Borrower in favour of the Canadian  Collateral Agent

 

7.       Delivery
order in respect of the 25% Demand Bond by Canadian Borrower in favour of  JPMorgan Chase Bank, N.A., Toronto Branch, as fondé de pouvoir

 

8.       Payoff
and Termination Letter with respect to VFN, Series 2004-2

 

9.       Redemption
Funding Agreement with respect to Series 2004-1 Notes

 

10.     Lien
Releases with respect to Series 2004-1 Notes

 

11.     U.S.
Interim Order

 

12.     Initial
Order entered by Ontario Superior Court of Justice

 

13.     Recognition
Order entered by Ontario Superior Court of Justice

 

14.     Participation
Fee Letter

 

15.     Funding
Letter

 

16.     Notice
of Borrowing with respect to the U.S. Term Loan

 

17.     Notice
of Borrowing with respect to Canadian Term Loan

 

18.     Notice
of Borrowing with respect to Revolving Loans

 

19.     Borrowing
Base Certificate

 

20.     Cash
Flow Forecast

 

21.     Lien
Searches

 

22.     Securitization
Reports

 

23.     Insurance
Certificates

 

 

Schedule 6.3

 

Indebtedness

 

1.     Pre-Petition Credit Agreement — The
U.S. Borrower and Canadian Borrower are Borrowers under the Pre-Petition Credit
Agreement (as defined in the Credit Agreement). The Parent has guaranteed the
obligations of the Borrowers thereunder. Certain material Canadian subsidiaries
of the Parent have guaranteed the obligations of the Canadian Borrower
thereunder. As of the Closing Date, the approximate outstanding principal
balance under the Prepetition Credit Agreement are:

U.S. Revolving Loans — $468,000,000

U.S. Letters of Credit —
$130,891,530

Canadian Revolving Loans
— $171,000,000

Canadian Letters of
Credit — $26,485,284

Tranche B Term Loan —
$136,776,990.61

Tranche C Term Loan —
$257,802,494.75

Tranche C-1 Term Loan —
$77,944,973.02

Deposit Funded Letters of
Credit — $121,930,726.03

 

2.     Calpine Corrugated, LLC — Calpine
Corrugated, LLC has incurred the Calpine Debt (as defined in the Credit
Agreement). The Parent has provided an unsecured guaranty of the Calpine Debt..
As of December 31, 2008, the approximate outstanding balance of the
Calpine Debt was $45,971,665.

 

3.     Receivables Securitization Programs
— Certain Subsidiaries of the Parent are parties to the U.S. Receivables
Securitization Program and Canadian Receivables Securitization Program (as such
terms are defined in the Credit Agreement). As of the Closing Date, the
approximate outstanding balance of the U.S. Securitization Program is
$350,000,000 and the approximate outstanding balance of the Canadian
Securitization Program is C$38,000,000.

 

4.     Senior Notes — The Parent has issued
the following unsecured senior notes:

 

	
   

  	
   

  	
  Outstanding Balance

  	
   

  
	
  8.375% Unsecured Senior Notes, due July 1,
  2012

  	
   

  	
  $

  	
  400,000,000

  	
   

  
	
  8.25% Unsecured Senior Notes, due October 1,
  2012

  	
   

  	
  $

  	
  700,000,000

  	
   

  
	
  7.50% Unsecured Senior Notes, due June 1,
  2013

  	
   

  	
  $

  	
  300,000,000

  	
   

  
	
  8.00% Unsecured Senior Notes, due March 15,
  2017

  	
   

  	
  $

  	
  675,000,000

  	
   

  

 

Stone Container Finance
Company of Canada II has issued 7.375% Unsecured Senior Notes, due July 15,
2014. As of the Closing Date, the outstanding principal balance of such notes
is $200,000,000. The Parent has provided an unsecured guaranty of such notes.

 

 

5.     Utility Systems and Environmental
Improvement Bonds; Industrial Revenue Bonds — The Parent and its
Subsidiaries have issued utility systems and environmental control bonds and
industrial revenue bonds as set forth below:

 

	
   

  	
   

  	
  Rate

  	
   

  	
  Year of

  Maturity

  	
   

  	
  December 31,

  2008 Balance

  	
   

  
	
  Hodge Bonds

  	
   

  	
  7.450

  	
  %

  	
  2024

  	
   

  	
  $

  	
  58,085,000

  	
   

  
	
  Hopewell Environmental Improvement

  	
   

  	
  5.250

  	
  %

  	
  2015

  	
   

  	
  $

  	
  41,340,000

  	
   

  
	
  Coshocton Environmental Improvement

  	
   

  	
  5.125

  	
  %

  	
  2013

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
  Navajo IRB

  	
   

  	
  7.400

  	
  %

  	
  2026

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  Navajo IRB

  	
   

  	
  7.200

  	
  %

  	
  2027

  	
   

  	
  $

  	
  14,650,000

  	
   

  
	
  Stevenson IRB’s

  	
   

  	
  3.400

  	
  %

  	
  Various

  	
   

  	
  $

  	
  120,115,000

  	
   

  

 

6.     Capitalized Lease Obligations and
purchase-money Indebtedness - The Parent and its Subsidiaries have incurred
Capitalized Lease Obligations and purchase-money Indebtedness having aggregate
outstanding amount of approximately $4,700,995 as December 31, 2008.

 

7.     Timber Note Monetization - The Company
sold approximately 980,000 acres of owned and leased timberland in Florida,
Georgia and Alabama in October 1999. The final purchase price, after
adjustments, was $710 million. The Company received $225 million in cash, with
the balance of $485 million in the form of installment notes. The Company
entered into a program to monetize the installment notes receivable. The notes
were sold without recourse to Timber Note Holdings LLC (“TNH”), a qualified
special-purpose entity under the provisions of SFAS No. 140, for $430
million cash proceeds and a residual interest in the notes. As of the Closing
Date, the outstanding balance of the Indebtedness of TNH under this facility is
$296,747,169.

 

8.     Wood Chipping Processing Contracts -
The U.S. Borrower has certain wood chip processing contracts extending from
2012 through 2018 with minimum purchase commitments. As part of the agreements,
the U.S. Borrower guarantees the third party contractors’ debt outstanding and
has a security interest in the chipping equipment. At September 30, 2008,
the maximum potential amount of future payments related to these guarantees was
approximately $29 million, which decreases ratably over the life of the
contracts. In the event the guarantees on these contracts are called, proceeds from
the liquidation of the chipping equipment would be based on current market
conditions and the U.S. Borrower may not recover in full the guarantee payments
made.

 

9.     Hang-Yick Paper Products Co. Ltd. Letter
of Credit - The U.S. Borrower is contingently liable for $18 million under
a one year letter of credit which expires in April 2009 to support
borrowings of Hang-Yick Paper Products Co. Ltd., one of the U.S. Borrower’s
non-consolidated affiliates. Such letter of credit is collateralized by a
pledge of affiliate stock owned by the other shareholder in the event the
letter of credit is drawn upon and the other shareholder is unable to reimburse
the U.S. Borrower for its 50% share of the letter of credit obligation.

 

10.   Insurance Premium Financings. Indebtedness
in respect of financings of insurance premiums having an outstanding balance of
principal and interest as of December 31, 2008 of $3,397,419.30.

 

 

11.   SBA Loan. The U.S. Borrower is
obligated on an SBA Loan having an outstanding principal balance of $420,583 as
of December 31, 2008.

 

 

Schedule 6.11

 

Other Investments

 

1. Investments in
Joint Ventures

 

	
  Joint Venture

  	
   

  	
  Ownership Interest

  
	
   

  	
   

  	
   

  
	
  Schiffenhaus
  Canada, Inc.

  	
   

  	
  33.33%
  owned by Smurfit-MBI

  
	
   

  	
   

  	
   

  
	
  Serpac
  Containers Limited

  	
   

  	
  49.5%
  owned by Smurfit-MBI

  
	
   

  	
   

  	
   

  
	
  Schiffenhaus
  California LLC

  	
   

  	
  25%
  owned by SMBI Inc.

  
	
   

  	
   

  	
   

  
	
  Aspamill
  Inc.

  	
   

  	
  45%
  owned by Smurfit-Stone Container Canada Inc.

  
	
   

  	
   

  	
   

  
	
  Groupement
  Forestier de Champlain Inc.

  	
   

  	
  10%
  owned by Smurfit-Stone Container Canada Inc.

  
	
   

  	
   

  	
   

  
	
  Rosenbloom
  Group, Inc.

  	
   

  	
  45%
  owned by Smurfit-Stone Container Canada Inc.

  
	
   

  	
   

  	
   

  
	
  Associated
  Paper Mills (Ontario) Limited

  	
   

  	
  45%
  owned by Smurfit-Stone Container Canada Inc.

  
	
   

  	
   

  	
   

  
	
  Cascapedia
  Booming Co. Ltd.

  	
   

  	
  50%
  owned by Smurfit-Stone Container Canada Inc.

  
	
   

  	
   

  	
   

  
	
  Las
  Vegas Container LLC

  	
   

  	
  50%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  Stone
  Container (Hong Kong) Limited

  	
   

  	
  50%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  Stone
  Container Japan Company Ltd.

  	
   

  	
  50%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  Valores
  Universales S.A. de C.V.

  	
   

  	
  49%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  Wakecon
  Associates

  	
   

  	
  50%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  Groveton
  Paper Board, Inc.

  	
   

  	
  48.6%
  owned by Smurfit-Stone Container Enterprises, Inc.

  

 

 

	
  Smurfit/CIMIC
  Holdings Limited

  	
   

  	
  42.5%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  WCO
  Enterprises

  	
   

  	
  50%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  Niagara
  Sheets LLC

  	
   

  	
  24.5%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  NewCorr
  Packaging Limited Partnership

  	
   

  	
  16.4%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  NewCorr
  Realty LLC

  	
   

  	
  16.67%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  i2i
  Europe Limited

  	
   

  	
  33%
  owned by Smurfit-Stone Container Enterprises, Inc.

  
	
   

  	
   

  	
   

  
	
  Hang-Yick
  Paper Products Co. Ltd.

  	
   

  	
  50%
  owned by Smurfit-Stone HY Holdings, Ltd.

  
	
   

  	
   

  	
   

  
	
  Interstate
  Smurfit-Stone (Thailand) Co, Ltd.

  	
   

  	
  50%
  owned by Stone Truepenny International, Inc.

  

 

As specified in Schedule
6.3, the U.S. Borrower is contingently liable for $18 million under a one
year letter of credit which expires in April 2009 to support borrowings of
Hang-Yick Paper Products Co. Ltd. (“Hang-Yick”). In the event such
letter of credit is drawn, an additional Investment in Hang-Yick will arise in
the amount of such draw. In addition, such letter of credit is collateralized
by a pledge of the remaining capital stock of Hang-Yick. In the event such
letter of credit is drawn upon and the other shareholder is unable to reimburse
the U.S. Borrower for its 50% share of the letter of credit obligation, the
U.S. Borrower may foreclose on such stock; upon such foreclosure, the U.S.
Borrower would hold 100% of the outstanding capital stock of Hang-Yick.
Hang-Yick maintains two wholly-owned Subsidiaries organized under the laws of
China, Billion Treasure Output Limited and Modern China Limited. In the event
Hang-Yick becomes a wholly-owned Subsidiary of the U.S. Borrower, such entities
would also become wholly-owned Subsidiaries of the Borrower.

 

The U.S. Borrower holds a
loan outstanding to Niagara Sheets LLC having an outstanding principal balance
of $730,100 as of December 31, 2008.

 

 

2. Intercompany Loans
and Advances

 

	
  Borrowing Entity

  	
   

  	
  Lending Entity

  	
   

  	
  Balance as of December 31,

  2008

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Calpine
  Corrugated, LLC

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  	
   

  	
  $49,829,450

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone
  Container de Mexico S. de R.L. de C.V.

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  	
   

  	
  $29,329,469

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stone
  Receivables LLC

  	
   

  	
  Smurfit-Stone
  Container Enterprises, Inc.

  	
   

  	
  $9,228,117

  $409,705 (Servicing Fee)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  Stone
  Container Finance Company of Canada II

  	
   

  	
  $207,031,994

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  SLP
  Finance General Partnership

  	
   

  	
  $1,793,288

  $338,439,677 (St. Laurent Acq.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  Smurfit-MBI

  	
   

  	
  $93,630,281

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Smurfit-Stone
  Container Enterprises, Inc.

  	
   

  	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  $50,000,000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3083527
  Nova Scotia Company

  	
   

  	
  Smurfit-Stone
  Container Canada Inc.

  	
   

  	
  $220,127,119

  

 

 

Schedule 6.12

 

*Permitted Asset Sales

 

*The information included in this Schedule 6.12 has been
omitted pursuant to a request for  confidential
treatment and has been filed separately with the Securities and Exchange
Commission.

 

 

Schedule 6.14

 

Loan Party Transaction Restrictions

 

1.   Dividend and distribution restrictions
contained in corporate or limited liability company laws or charter documents
applicable to any Person.

 

2.     Pre-Petition Credit Agreement.

 

3.     U.S. Receivables Securitization Program.

 

4.     Restrictions on dividends and distributions
by Calpine set forth in the documentation of the Calpine Debt.

 

5.     Restrictions on dividends and distributions
by Timber Capital Holdings LLC and Timber Note Capital LLC set forth in the
documentation of the Timber Note Monetization referenced in Schedule 6.3.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]