Document:

Exhibit

Exhibit 4.6

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934

As of the date of the Annual Report on Form 10-K of which this exhibit is a part, General Motors Financial Company, Inc. (the “Company”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)-the Company’s 5.250% Senior Notes due 2026 (the “Notes”), which are listed on The New York Stock Exchange and trade under the bond trading symbol “GM/26.”
Description of 5.250% Senior Notes due 2026
General
The Notes were issued pursuant to an indenture (as amended and supplemented to the date hereof, the “Base Indenture”), dated as of October 13, 2015, among the Company, AmeriCredit Financial Services, Inc., as guarantor (the “Guarantor”), and Wells Fargo Bank, National Association, as trustee (the “Trustee”), as supplemented by the fifth supplemental indenture thereto (together with the Base Indenture, the “Indenture”), dated as of March 1, 2016, among the Company, the Guarantor and the Trustee each of which is incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this exhibit is a part. The Notes were issued as a separate series of debt securities under the Indenture, and are treated as such for all purposes under the Indenture, including, without limitation, waivers, amendments and redemptions.
The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “Trust Indenture Act”). The Notes are subject to all such terms, and you are referred to the Indenture and the Trust Indenture Act for a statement thereof. This summary summarizes certain material provisions of the Indenture, but does not purport to be complete and is qualified in its entirety by reference to the Indenture. The definitions of certain terms used in the following summary are set forth below under “-Certain Definitions.” For purposes of this summary, the terms “we,” “us,” “our” and “our Company” refer only to General Motors Financial Company, Inc. and not to any of its Subsidiaries or affiliates.
Ranking
The Notes are our general unsecured obligations and rank:
		
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	senior in right of payment to all of our existing and future indebtedness and other obligations that are expressly subordinated in right of payment to the Notes;

		
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	pari passu in right of payment with all of our existing and future indebtedness that is not so subordinated, including, without limitation, our other senior notes;

		
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	effectively junior to any of our secured indebtedness and other secured obligations to the extent of the assets securing such indebtedness or other secured obligations; and

		
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	effectively junior to any liabilities of our Subsidiaries, including Receivables Entities.

The Notes initially were guaranteed by the Guarantor. However, pursuant to the terms of the Indenture, the respective guarantee was released, and the obligation to provide guarantees was terminated. Therefore, unless we so elect, the Notes will not be guaranteed by any of our Subsidiaries or affiliates or any other person, and will rank effectively junior to our and our Subsidiaries’ indebtedness and other obligations under Bank Lines, Residual Funding Facilities and any Permitted Receivables Financing, and certain obligations under Credit Enhancement Agreements. In addition, our operations are conducted through our Subsidiaries and, therefore, we are dependent upon the cash flows of our Subsidiaries to meet our obligations, including our obligations under the Notes. We and our Subsidiaries have a significant amount of outstanding indebtedness.
Further Issuances
The Indenture does not limit the amount of other debt that we may incur. We may, from time to time, without the consent of the holders of the Notes, issue other debt securities under the Base Indenture in addition to the Notes. We reserve the right, from time to time and without the consent of any holders of Notes, to re-open the Notes on terms identical in all respects to the outstanding Notes (except for the date of issuance, the date interest begins to accrue and, in certain circumstances, the first interest payment date), so that such additional Notes will be consolidated with, form 

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a single series with and increase the aggregate principal amount of the Notes; provided that if any additional notes issued are not fungible with the Notes for U.S. federal income tax purposes, the additional notes will have a separate CUSIP number.
Principal, Maturity and Interest
We initially issued an aggregate principal amount of $1,250,000,000 of the Notes on March 1, 2016.
Principal, premium, if any, and interest, if any, on the Notes is payable at the office or agency we designate for such purpose within the City and State of New York. We make payments of principal, premium, if any, and interest, if any, in respect of the Notes in book-entry form to The Depository Trust Company (“DTC”) in immediately available funds, while disbursement of such payments to owners of beneficial interests in Notes in book-entry form is made in accordance with the procedures of DTC and its participants in effect from time to time. Unless otherwise designated by us, our office or agency in New York is the office of the Trustee maintained for such purpose. 
The Notes will mature on March 1, 2026 (unless earlier redeemed). Interest on the Notes accrues at the rate of 5.250% per annum and is payable semi-annually in arrears on March 1 and September 1 of each year, and at maturity (each an “interest payment date”), to holders of record of the Notes on the date that is 15 calendar days prior to such interest payment date.
Interest on the Notes accrues from and including the most recent interest payment date. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months. If any interest payment date, stated maturity date or earlier redemption date for the Notes falls on a day that is not a Business Day, we make the required payment of principal, premium, if any, and interest, if any, on the next succeeding Business Day, and no interest accrues on the amount so payable for the intervening period.
Optional Redemption
Prior to the Par Call Date, we may redeem the Notes, in whole or in part from time to time, at a redemption price equal to the greater of the following amounts, plus accrued and unpaid interest thereon to, but excluding, the date of redemption:
		
	(i)
	100% of the principal amount of the Notes to be redeemed; and

		
	(ii)
	as determined by the Quotation Agent, the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed (exclusive of interest accrued and unpaid as of the date of redemption), discounted to the date of redemption on a semi-annual basis at the Treasury Rate (as defined below) plus 50 basis points.

On or after the Par Call Date, we may redeem the Notes, in whole or in part from time to time, at a redemption price equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date.
If the redemption date is after a record date and on or prior to a corresponding interest payment date, interest will be paid on the redemption date to the holder of record on the record date.
At least 30 days, but not more than 60 days, before a redemption date, we will send or cause to be sent a notice of redemption to each holder of the Notes to be redeemed. The notice of redemption for such Notes will state, among other things, the amount and series of Notes to be redeemed, the redemption date, the redemption price and that, unless we default in making such redemption payment, interest on such Notes called for redemption ceases to accrue on and after the redemption date. Once notice of redemption is sent, the Notes called for redemption will become due and payable on the redemption date at the applicable redemption price.
If money sufficient to pay the redemption price of the Notes to be redeemed on the redemption date is deposited with the Trustee or paying agent on or before the redemption date and certain other conditions are satisfied, then on and after such redemption date, interest will cease to accrue on such Notes called for redemption.
The redemption prices will be calculated assuming a 360-day year consisting of twelve 30-day months. For purposes of calculating the redemption prices, the following terms will have the meanings set forth below.
“Comparable Treasury Issue” means the United States Treasury security or securities selected by the Quotation Agent as having an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed that 

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would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the Notes.
“Comparable Treasury Price” means, with respect to any redemption date, (i) the average of four Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Quotation Agent obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
“Par Call Date” means December 1, 2025 (the date that is three months prior to the stated maturity date for the Notes).
“Quotation Agent” means a Reference Treasury Dealer appointed by us.
“Reference Treasury Dealer” means (i) any of Credit Agricole Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Société Générale and a Primary Treasury Dealer selected by us or any of their respective affiliates that is a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), and their respective successors; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, we will substitute therefor another Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer selected by us.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by us, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Quotation Agent by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date.
“Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.
If less than all of the Notes are to be redeemed, the Notes to be redeemed will be selected according to DTC procedures, in the case of Notes represented by a global security, or by lot, in the case of Notes that are not represented by a global security.
We may at any time, and from time to time, purchase Notes at any price or prices by means other than a redemption, whether by tender offer, open-market purchases, negotiated transactions or otherwise.
Mandatory Redemption
We are not required to make mandatory redemption or sinking fund payments with respect to the Notes.
Certain Covenants
The Indenture sets forth limited covenants that apply to the Notes. However, these covenants do not, among other things:
		
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	limit the amount of indebtedness or lease obligations that may be incurred by us and our Subsidiaries; or

		
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	contain provisions which would give holders of the Notes the right to require us to repurchase their Notes in the event of a decline in the credit rating of the Notes, a change of control, recapitalization or similar restructuring or in the case of any other event.

Merger, Consolidation or Sale of Assets
The Indenture provides that we may not consolidate or merge with or into (whether or not we are the surviving corporation), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the properties or assets of our Company and our subsidiaries, taken as a whole, in one or more related transactions, to another person unless (i) either (A) we are the surviving entity or (B) the person formed by or surviving any such consolidation or merger (if other than our Company) or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made is an entity organized or existing under the laws of the United States, any state thereof or the District of Columbia; (ii) the person formed by or surviving any such consolidation or merger (if other than our Company) or to which such sale, assignment, transfer, lease, conveyance or other disposition shall have been made assumes all 

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of our obligations under the Notes and the Indenture pursuant to an agreement reasonably satisfactory to the Trustee; and (iii) immediately after such transaction, no default or event of default under the Indenture has occurred and is continuing.
Information Rights
The Indenture provides that, whether or not we are subject to the periodic reporting requirements of the Exchange Act, so long as any Notes are outstanding, we will furnish to the holders or cause the Trustee to furnish to the holders (or file with the U.S. Securities and Exchange Commission (the “SEC”) for public availability), within the time periods specified in the SEC’s rules and regulations, (i) all quarterly and annual reports that would be required to be filed with the SEC on Forms 10-Q and 10-K if we were required to file such reports and (ii) all current reports that would be required to be filed with the SEC on Form 8-K if we were required to file such reports. In addition, whether or not required by the rules and regulations of the SEC, we will file or cause to be filed a copy of all such reports with the SEC for public availability (unless the SEC will not accept such a filing, in which case we will post such reports on our website within the time periods that would apply if we were required to file those reports with the SEC). To the extent any such reports are filed electronically on the SEC’s Electronic Data Gathering and Retrieval System (or any successor system), such filing shall be deemed to be furnished to the holders of Notes and the Trustee.
Calculation of Original Issue Discount and Other Amounts
The Indenture provides that we will promptly, at the end of each calendar year, calculate the original issue discount accrued on outstanding Notes as of the end of such year and shall determine whether the amount of original issue discount qualifies for the de minimis exception rule as set forth in Section 1273(a)(3) of the U.S. Internal Revenue Code of 1986, as amended (the “Code”). If such calculated amount does not qualify for the de minimis exception rule, then we will subsequently file no later than January 15th of each calendar year (a) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on outstanding Notes as of the end of such year and (b) such other specific information relating to such original issue discount as may then be relevant under the Code.
Liens
The Indenture provides that we will not, and will not permit any of our Restricted Subsidiaries to, create, incur or assume any Lien of any kind (other than Permitted Liens) upon any of our or their property or assets, now owned or hereafter acquired, unless all payments due under the Indenture and the Notes are secured on an equal and ratable basis with the obligations so secured until such time as such obligations giving rise to such Lien are no longer secured by a Lien.
Events of Default
The Indenture provides that each of the following constitutes an “event of default” with respect to the Notes:
		
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	failure to pay interest for 30 days after the date payment is due and payable; however, if we extend an interest payment period under the terms of the Notes, the extension will not be a failure to pay interest;

		
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	failure to pay when due (at maturity, upon redemption or otherwise) of the principal of, or premium, if any, on the Notes, and, in certain circumstances, continuance of such default for a period of more than three Business Days;

		
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	failure on our part to comply with any other covenant or agreement in the Indenture for 90 days after we have received written notice from the Trustee or the holders of at least 25% in aggregate principal amount of the Notes then outstanding affected by the failure to comply in the manner specified in the Indenture;

		
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	events of bankruptcy, insolvency or reorganization of our Company or any applicable guarantor; or

		
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	any guarantee by any applicable guarantor being held unenforceable or invalid, or any applicable guarantor denying or disaffirming its obligations under its guarantee, except as permitted by the Indenture.

If an event of default occurs and continues, the Trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding Notes may declare the entire principal amount of all Notes to be due and payable immediately, except that, if the event of default is caused by certain events of bankruptcy, insolvency or reorganization, the entire principal of all of Notes will become due and payable immediately without any act on the part of the Trustee 

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or holders of the Notes. If such a declaration occurs, the holders of a majority of the aggregate principal amount of the outstanding Notes can, subject to conditions, rescind the declaration.
The Indenture requires us and any guarantor (to the extent such guarantor is so required under the Trust Indenture Act) to deliver an officer’s certificate to the Trustee within 120 days after the end of each fiscal year regarding compliance with the terms of the Indenture. Within 30 days of becoming aware of any default or event of default, we are required to deliver to the Trustee a statement specifying such default or event of default.
The holders of a majority in aggregate principal amount of the then-outstanding Notes will have the right to direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee, subject to certain exceptions. The Indenture provides that in case an event of default has occurred and is continuing, the Trustee will be required, in the exercise of its power, to use the degree of care and skill of a prudent person in the conduct of its own affairs. Subject to such provisions, the Trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the request of any holder of Notes, unless such holder has offered to the Trustee reasonable written security and indemnity satisfactory to it against any loss, liability or expense.
Satisfaction and Discharge; Defeasance and Covenant Defeasance
Satisfaction and Discharge
The Indenture will be discharged and will cease to be of further effect as to all the Notes that have been issued thereunder when:
		
	•
	either:

		
	◦
	all Notes that have been authenticated, except lost, stolen or destroyed Notes that have been replaced or paid and Notes for whose payment money has been deposited in trust and thereafter repaid to us, have been delivered to the Trustee for cancellation; or

		
	◦
	all Notes that have not been delivered to the Trustee for cancellation have become due and payable pursuant to a notice of redemption or otherwise or will become due and payable within one year and we have irrevocably deposited or caused to be deposited funds with the Trustee as trust funds in trust solely for the benefit of the holders thereof, in amounts as will be sufficient to pay and discharge the aggregate indebtedness on the Notes not theretofore delivered to the Trustee for cancellation for principal of, premium, if any, on and interest, if any, on the Notes to the date of maturity or redemption;

		
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	we have paid or caused to be paid all sums payable by us in respect of the Notes under the Indenture; and

		
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	we have delivered an officer’s certificate and opinion of counsel each stating that all conditions precedent to satisfaction and discharge have been satisfied.

Defeasance of Certain Covenants and Certain Events of Default
The Indenture provides that we may elect, with respect to the Notes, either:
		
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	to defease and be discharged from all of our obligations with respect to the Notes, except for: (i) the rights of holders of outstanding Notes to receive payments in respect of the principal of, premium, if any, and interest, if any, on the Notes when such payments are due from the trust referred to below; (ii) our obligations with respect to the Notes concerning issuing temporary Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payment and money for security payments held in trust; (iii) the rights, powers, trusts, duties and immunities of the Trustee, and our obligations in connection therewith; and (iv) the legal defeasance provisions of the Indenture (“legal defeasance”); or

		
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	to be released from our obligations with respect to the Notes under the covenants specified in the Indenture, and thereafter (i) any omission to comply with those obligations will not constitute a default or an event of default with respect to the Notes and (ii) the events described above under “-Events of Default” (other than non-payment events) will no longer constitute events of default under the Indenture with respect to the Notes (“covenant defeasance”).

We must comply with the following conditions before legal defeasance or covenant defeasance can be effected:
		
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	we must irrevocably deposit with the Trustee, in trust, for the benefit of the holders of the Notes, cash in U.S. dollars, non-callable government securities or a combination thereof, in amounts as will be sufficient 

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to pay the principal of, premium, if any, and interest, if any, on the outstanding Notes on the stated date for payment thereof or on the applicable redemption date, as the case may be, and we must specify whether the Notes are being defeased to maturity or to a particular redemption date;
		
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	we must deliver to the Trustee an opinion of counsel to the effect that that the holders or beneficial owners, as applicable, of the Notes will not recognize income, gain or loss for federal income tax purposes as a result of legal defeasance or covenant defeasance, as the case may be, to be effected with respect to the Notes and will be subject to federal income tax on the same amount, in the same manner and at the same times as would be the case if such legal defeasance or covenant defeasance, as the case may be, had not occurred;

		
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	no default or event of default may have occurred or continue with respect to the Notes on the date of such deposit (other than a default or event of default resulting from the incurrence of indebtedness all or a portion of the proceeds of which will be used to defease the Notes) or, insofar as such default or event of default is related to bankruptcy or insolvency, at any time in the period ending on the 91st day after the date of deposit;

		
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	such legal defeasance or covenant defeasance will not result in a breach or violation of, or constitute a default under, any material agreement or instrument (other than the Indenture) to which we are a party or bound;

		
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	we must deliver to the Trustee an opinion of counsel to the effect that, on the 91st day following the deposit, such funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditor’s rights generally;

		
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	we must deliver an officer’s certificate stating that the deposit was not made with the intent of preferring holders of the Notes over our other creditors with the intent of defeating, hindering, delaying or defrauding any of our creditors; and

		
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	we must deliver an officer’s certificate and opinion of counsel stating that all conditions precedent relating to the defeasance have been complied with.

Modification and Waiver
Without the consent of any holders of Notes, we and the Trustee may enter into one or more supplemental indentures for any of the following purposes:
		
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	to cure any ambiguity or to correct or supplement any provision contained in the Indenture or in any supplemental indenture that may be defective or inconsistent with any other provision contained in the Indenture or in any supplemental indenture;

		
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	to convey, transfer, assign, mortgage or pledge to such Trustee as security for the Notes, or any guarantees endorsed thereon or attached thereto, any property or assets and to secure, or, if applicable, provide additional security for, the Notes or guarantees and to provide for matters relating thereto, and to provide for the release of any collateral as security for the Notes or guarantees;

		
	•
	to evidence the succession of another entity to our Company and the assumption of our covenants by the successor;

		
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	to add one or more covenants for the benefit of the holders of the Notes;

		
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	to add any additional events of default for the Notes;

		
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	to establish the form or terms of the Notes and debt securities of any series under the Base Indenture;

		
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	to evidence and provide for the acceptance of appointment of a separate or successor trustee or to comply with the rules of any applicable securities depository;

		
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	to change or eliminate any provision of the Indenture; provided that any such change or elimination shall not apply to any outstanding debt security of any series issued under the Base Indenture prior to the execution of such supplemental indenture which is entitled to the benefit of such provision;

		
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	to make any change that would provide any additional rights or benefits to the holders of the Notes or that does not materially adversely affect the legal rights under the Indenture of any holder of the Notes;

		
	•
	to supplement any of the provisions of the Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of the Notes, or any tranche thereof, pursuant to the terms of the Indenture; provided that any such action shall not adversely affect the interests of the holders of the Notes or any other series of debt securities issued under the Base Indenture in any material respect;

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	to add a guarantor or permit any entity to guarantee the obligations under the Notes or to transfer property or assets to the Trustee as security for the Notes;

		
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	to conform the text to any provision of the “Description of Debt Securities” in the base prospectus relating to the Notes or any provision of the “Description of the Notes” in the prospectus supplement relating to the Notes to the extent that such provision was intended to be a verbatim recitation of a provision set forth in the Indenture or any amendment or supplement thereto;

		
	•
	to comply with the requirements of the SEC to maintain the qualification of the Indenture under the Trust Indenture Act; or

		
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	to make any other provisions with respect to matters or questions arising under the Indenture; provided that such action shall not adversely affect in any material respect the interests of the holders of Notes outstanding on the date of such supplemental indenture.

Except as provided above, the consent of the holders of a majority in aggregate principal amount of the Notes (voting together as a single class) is generally required for the purpose of adding to, or changing or eliminating any of the provisions of, the Indenture or the Notes pursuant to a supplemental indenture. However, no amendment may, without the consent of each holder of Notes directly affected thereby:
		
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	reduce the principal amount of Notes whose holders must consent to an amendment, supplement or waiver of or with respect to the Indenture;

		
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	reduce the principal or change the fixed maturity of the Notes;

		
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	reduce the rate or extend the time for payment of interest, including default interest, on the Notes;

		
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	alter any of the provisions with respect to the redemption of the Notes;

		
	•
	waive a default in the payment of the principal of, or any premium or interest on, the Notes (except a rescission of acceleration of the Notes by the holders of at least a majority in aggregate principal amount of the then-outstanding Notes and a waiver of the payment default that resulted from such acceleration);

		
	•
	make the Notes payable in any currency other than that stated in the Notes;

		
	•
	make any change to certain provisions of the Indenture relating to, among other things: (i) the right of holders of Notes to receive payment of the principal of, or any premium or interest on, Notes and to institute suit for the enforcement of any such payment; (ii) waivers of past defaults; and (iii) amendments and waivers that require the consent of each affected holder;

		
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	waive a redemption payment with respect to the Notes;

		
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	release any guarantor providing a guarantee of the Notes from any of its obligations under such guarantee, except in accordance with the terms of the Indenture; or

		
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	make any change in the ranking or priority of the Notes or any guarantee thereof that would adversely affect the holders of the Notes.

A supplemental indenture that changes or eliminates any provision of the Indenture expressly included solely for the benefit of holders of other debt securities of one or more particular series issued under the Base Indenture will be deemed not to affect the rights under such Indenture of the holders of debt securities of any other series (including holders of the Notes).
The holders of at least a majority in aggregate principal amount of the then-outstanding Notes may, on behalf of the holders of all Notes, waive our compliance with certain restrictive provisions of the Indenture. The holders of not less than a majority in aggregate principal amount of the then-outstanding Notes may, on behalf of the holders of all Notes, waive any past default and its consequences under the Indenture with respect to the Notes, except a default in the payment of principal of (or premium, if any), any interest on or any additional amounts with respect to the Notes.

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Denomination, Registrations and Transfer
The Notes were issued in fully registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The registered holder of a Note will be treated as the owner of it for all purposes. A direct holder may have his or her Notes broken into, or “exchanged” for, more Notes of smaller denominations or combined into fewer Notes of larger denominations, as long as the total principal amount is not changed.
A direct holder may exchange or transfer Notes at the office of the Trustee. The Trustee acts as our agent for registering Notes in the names of holders and transferring Notes. We may change this appointment to another entity or perform the service ourselves. The entity performing the role of maintaining the list of registered direct holders is called the security registrar. It will also register transfers of Notes. We may cancel the designation of any particular transfer agent. We may also approve a change in the office through which any transfer agent acts.
A direct holder will not be required to pay a service charge to transfer or exchange Notes, but may be required to pay for any tax or other governmental charge associated with the exchange or transfer.
If the Notes are redeemable and we redeem less than all of the Notes, we may block the transfer or exchange of Notes during the period beginning 15 days before the selection of Notes for redemption and ending on the earliest date of notice of such redemption, in order to freeze the list of holders to prepare the mailing. We may also refuse to register transfers or exchanges of Notes selected for redemption, except that we will continue to permit transfers and exchanges of the unredeemed portion of any Note being partially redeemed.
Governing Law
The Indenture and the Notes are governed by, and construed in accordance with, the laws of the State of New York, without regard to its principles of conflicts of laws.
Concerning the Trustee and Paying Agent
The Indenture contains certain limitations on the rights of the Trustee, should it become a creditor of ours, to obtain payment of claims in certain cases, or to realize on certain property received in respect of any such claim as security or otherwise. The Trustee will be permitted to engage in other transactions; however, if the Trustee acquires any conflicting interest it must eliminate such conflict within 90 days, apply to the SEC for permission to continue or resign.
The holders of a majority in principal amount of the then-outstanding Notes will have the right to direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee on behalf of the holders of the Notes, subject to certain exceptions. The Indenture will provide that in case an event of default shall occur (which shall not be cured), the Trustee will be required, in the exercise of its power, to use the degree of care of a prudent person under the circumstances in the conduct of such person’s own affairs. Subject to such provisions, the Trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the request of any holder of Notes, unless such holder shall have offered to the Trustee security and indemnity satisfactory to it against any loss, liability or expense.
Wells Fargo Bank, National Association currently acts as the Trustee under the Indenture. U.S. Bank National Association currently act on other agreements with our Company in a variety of roles, including that of a bank, fiduciary and in an agency capacity, and such relationships change from time to time.
We will maintain one or more paying agents for the payment of principal of, premium, if any, and interest, if any, on, the Notes. We have initially appointed Wells Fargo Bank, National Association as our paying agent for the Notes. We may act as paying agent or registrar under the Indenture.
Certain Definitions
Set forth below are certain defined terms used in the Indenture. Reference is made to the Indenture for a full disclosure of all such terms, as well as any other capitalized terms used herein for which no definition has been provided.
“Bank Lines” means, with respect to us or any of our Restricted Subsidiaries, one or more debt facilities with banks or other lenders providing for revolving credit loans and/or letters of credit.

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“Consolidated Net Tangible Assets” means the aggregate amount of assets (less applicable reserves and other properly deductible items) after deducting therefrom all current liabilities and all goodwill, trade names, trademarks, unamortized debt discounts and expense and other like intangibles of our Company and our consolidated Subsidiaries, all as set forth in the most recent balance sheet of our Company and our consolidated Subsidiaries prepared in accordance with GAAP.
“Credit Enhancement Agreements” means, collectively, any documents, instruments, guarantees or agreements entered into by us, any of our Restricted Subsidiaries or any Receivables Entity for the purpose of providing credit support for one or more Receivables Entities or any of their respective securities, debt instruments, obligations or other Indebtedness.
“Hedging Obligations” means, with respect to any Person, the obligations of such Person under (i) interest rate swap agreements, interest rate cap agreements and interest rate collar agreements and (ii) other agreements or arrangements designed to protect such Person against fluctuations in interest or currency exchange rates.
“Non-Domestic Entity” means a Person not organized or existing under the laws of the United States, any state thereof or the District of Columbia.
“Permitted Liens” means:
		
	(i)
	Liens existing on the date of the Base Indenture;

		
	(ii)
	Liens to secure securities, debt instruments or other Indebtedness of one or more Receivables Entities or guarantees thereof;

		
	(iii)
	Liens to secure Indebtedness under a Residual Funding Facility or guarantees thereof;

		
	(iv)
	Liens to secure Indebtedness and other obligations (including letter of credit indemnity obligations and obligations relating to expenses with respect to debt facilities) under Bank Lines or guarantees thereof;

		
	(v)
	Liens on spread accounts, reserve accounts and other credit enhancement assets, Liens on the Capital Stock of our Subsidiaries, substantially all of the assets of which are spread accounts, reserve accounts and/or other credit enhancement assets, and Liens on interests in one or more Receivables Entities, in each case incurred in connection with Credit Enhancement Agreements, Residual Funding Facilities or issuances of securities, debt instruments or other Indebtedness by a Receivables Entity;

		
	(vi)
	Liens on property existing at the time of acquisition of such property (including properties acquired through merger or consolidation);

		
	(vii)
	Liens securing Indebtedness incurred to finance the construction or purchase of property of our Company or any of our Subsidiaries (but excluding Capital Stock of another Person); provided that any such Lien may not extend to any other property owned by our Company or any of our Subsidiaries at the time the Lien is incurred, and the Indebtedness secured by the Lien may not be incurred more than 180 days after the later of the acquisition or completion of construction of the property subject to the Lien;

		
	(viii)
	Liens securing Hedging Obligations;

		
	(ix)
	Liens to secure any Refinancing Indebtedness incurred to refinance any Indebtedness and all other obligations secured by any Lien referred to in the foregoing clause (i); provided that such new Lien shall be limited to all or part of the same property or type of property that secured the original Lien, and the Indebtedness secured by such Lien at such time is not increased to any amount greater than the outstanding principal amount or, if greater, committed amount of the Indebtedness described under clause (i) of this definition at the time the original Lien became a Permitted Lien;

		
	(x)
	Liens in favor of us or any of our Restricted Subsidiaries;

		
	(xi)
	Liens of our Company or any Restricted Subsidiary of our Company with respect to obligations that do not exceed five percent of Consolidated Net Tangible Assets;

		
	(xii)
	Liens to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature incurred in the ordinary course of business (including, without limitation, landlord Liens on leased properties);

		
	(xiii)
	Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are being contested in good faith by appropriate proceedings; provided, that any reserve or other appropriate provision as shall be required in conformity with GAAP shall have been made therefor;

9

		
	(xiv)
	Liens imposed by law or regulation, such as carriers’, warehousemen’s, materialmen’s, repairmen’s and mechanics’ and similar Liens, in each case for sums not yet overdue for a period of more than 30 days or that are being contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with respect to which such Person shall then be proceeding with an appeal or other proceedings for review; provided, that any reserve or other appropriate provision as shall be required in conformity with GAAP shall have been made therefor;

		
	(xv)
	Liens related to minor survey exceptions, minor encumbrances, ground leases, easements or reservations of, or rights of others for, licenses, rights-of-way, servitudes, sewers, electric lines, drains, telegraph and telephone and cable television lines, gas and oil pipelines and other similar purposes, or zoning, building codes or other restrictions (including, without limitation, minor defects or irregularities in title and similar encumbrances) as to the use of real properties or Liens incidental to the conduct of the business of such Person or to the ownership of its properties which were not incurred in connection with Indebtedness and which do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person;

		
	(xvi)
	Liens on equipment of our Company or any of our Restricted Subsidiaries granted in the ordinary course of business;

		
	(xvii)
	deposits made or other security provided to secure liabilities to insurance carriers under insurance or self-insurance arrangements in the ordinary course of business;

		
	(xviii)
	purported Liens evidenced by filings of precautionary Uniform Commercial Code financing statements relating solely to operating leases of personal property;

		
	(xix)
	Liens evidenced by Uniform Commercial Code financing statement filings (or similar filings) regarding or otherwise arising under leases entered into by us or any Restricted Subsidiary in the ordinary course of business;

		
	(xx)
	Liens on accounts, payment intangibles, chattel paper, instruments and/or other Receivables granted in connection with sales of any of such assets;

		
	(xxi)
	Liens on Receivables and related assets and proceeds thereof arising in connection with a Permitted Receivables Financing; and

		
	(xxii)
	Liens in favor of a guarantor or any of its Subsidiaries.

“Permitted Receivables Financing” means any facility, arrangement, transaction or agreement (i) pursuant to which our Company or any Restricted Subsidiary finances the acquisition or origination of Receivables with, or sells Receivables that it has acquired or originated to, a third party on terms that the Board of Directors has concluded are customary and market-standard, and/or (ii) that grants Liens to, or permits filings of precautionary Uniform Commercial Code financing statements by, the third party against our Company or our Restricted Subsidiaries, as applicable, under such facility, arrangement, transaction or agreement relating to the subject Receivables, related assets and/or proceeds.
“Receivable” means each of the following: (i) any right to payment of a monetary obligation, including, without limitation, any promissory note, financing agreement, installment sale contract, lease contract, insurance or service contract, or any credit, debit or charge card receivable, and (ii) any assets related to such receivables, including, without limitation, any collateral securing, or property leased under, such receivables.
“Receivables Entity” means each of the following: (i) any Person (whether or not a Subsidiary of our Company) established for the purpose of transferring or holding Receivables or issuing securities, debt instruments or other Indebtedness backed by Receivables and/or Receivable-backed securities, regardless of whether such Person is an issuer of securities, debt instruments or other Indebtedness; and (ii) any Subsidiary of our Company formed exclusively for the purpose of satisfying the requirements of Credit Enhancement Agreements, regardless of whether such Person is an issuer of securities, debt instruments or other Indebtedness.
“Refinancing Indebtedness” means any Indebtedness of our Company or any of our Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to extend, refinance, renew, replace, defease or refund, other Indebtedness of our Company or any of our Restricted Subsidiaries.
“Residual Funding Facility” means any funding arrangement with a financial institution or institutions or other lenders or purchasers under which advances are made to us or any Subsidiary based upon residual, subordinated or retained interests in Receivables Entities or any of their respective securities, debt instruments or other Indebtedness.

10

“Restricted Subsidiary” means any Subsidiary of our Company that is not a Receivables Entity or Non-Domestic Entity.
Book-Entry, Delivery and Form
The Notes were issued in book-entry form and represented by one or more global notes or global securities (collectively, “Global Securities”). The Global Securities were deposited with, or on behalf of, DTC, and registered in the name of Cede & Co., the nominee of DTC. So long as DTC or any successor depositary for a Global Security, or any nominee, is the registered holder of such Global Security, DTC or such successor depositary or nominee will be considered the sole owner or holder of the Notes represented by such Global Security. Except under the limited circumstances described below, purchasers of Notes will not be entitled to have Notes registered in their names and will not receive physical delivery of Notes. Accordingly, each beneficial owner must rely on the procedures of DTC and its participants to exercise any rights under the Notes. Unless and until it is exchanged in whole or in part for the individual Notes it represents, a Global Security may not be transferred except as a whole by DTC to a nominee of DTC, a nominee of DTC to DTC or another nominee of DTC or DTC or any nominee of DTC to a successor depositary or any nominee of such successor.
So long as Notes are in book-entry form, we will make payments on Notes to the depositary or its nominee, as the registered owner of the Notes, by wire transfer of immediately available funds. If Notes are issued in definitive certificated form under the limited circumstances described below, we will have the option of making payments by check mailed to the addresses of the persons entitled to payment or by wire transfer to bank accounts in the United States designated in writing to the applicable trustee or other designated party at least 15 days before the applicable payment date by the persons entitled to payment, unless a shorter period is satisfactory to such trustee or other designated party.
DTC may discontinue providing its services as depositary with respect to the Global Securities at any time by giving reasonable notice to us or the Trustee. Under such circumstances, in the event that a successor securities depositary is not appointed by us within 90 days, definitive Notes in registered certificated form are required to be printed and delivered.
As noted above, beneficial owners of Notes generally will not receive certificates representing their ownership interests in the Notes. However, if:
		
	•
	DTC notifies us that it is unwilling or unable to continue as a depositary for the Global Security or securities representing the Notes or if DTC ceases to be a clearing agency registered under the Exchange Act at a time when it is required to be registered and a successor depositary is not appointed within 90 days of the notification to us or of our becoming aware of DTC’s ceasing to be so registered, as the case may be;

		
	•
	we determine, in our sole discretion, not to have the Notes represented by one or more Global Securities; or

		
	•
	an event of default under the Indenture has occurred and is continuing with respect to the Notes;

we will prepare and deliver certificates for the Notes in exchange for beneficial interests in the Global Securities. Any beneficial interest in a Global Security that is exchangeable under the circumstances described in the preceding sentence will be exchangeable for Notes in definitive certificated form registered in the names that the depositary directs. It is expected that these directions will be based upon directions received by the depositary from its participants with respect to ownership of beneficial interests in the Global Securities.

11Exhibit 10.1

 

EXECUTION VERSION

 

COOPERATION AGREEMENT

 

This Agreement (this
 “Agreement”) is made and entered into as of January 30, 2020 by and among Verso Corporation (the “Company”)
and the entities and natural persons set forth in the signature pages hereto (each an “Investor” and collectively,
the “Investors”) (each of the Company and the Investors, a “Party” to this Agreement, and
collectively, the “Parties”).

 

RECITALS

 

WHEREAS, as of the
date hereof, the Investors are deemed to beneficially own, in the aggregate, shares of Class A Common Stock of the Company (the
 “Common Stock”) totaling 3,273,123 shares, or approximately 9.43%, of the Common Stock issued and outstanding
on the date hereof;

 

WHEREAS, the Investors
have nominated certain individuals for election as directors at the Company’s 2019 annual meeting of the stockholders scheduled
to be held on January 31, 2020 (the “2019 Annual Meeting”);

 

WHEREAS, on September
23, 2019 Lapetus Capital II LLC (“Lapetus”) delivered a demand to the Company, pursuant to Section 220 of the
General Corporation Law of the State of Delaware, requesting access to certain stock list materials of the Company (the “Stocklist
Demand”);

 

WHEREAS, on December
6, 2019, Lapetus delivered a demand to the Company, pursuant to Section 220 of the General Corporation Law of the State of Delaware,
requesting access to certain books and records of the Company (the “Books and Records Demand”); and

 

WHEREAS, as of the
date hereof, the Company and the Investors have determined to come to an agreement with respect to the composition of the Board
of Directors of the Company (the “Board”) as of the date hereof and in connection with the 2019 Annual Meeting
and certain other matters, as provided in this Agreement.

 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound
hereby, agree as follows:

 

		1.	Board Composition and Related Matters.

 

(a)              
Company Withdrawing Nominees. The Company hereby irrevocably withdraws the nominations of Ms. Cholmondeley
and Messrs. Shuster and Scheiwe for election to the Board at the 2019 Annual Meeting.

 

(b)              
Investor Withdrawing Nominee. The Investors hereby irrevocably withdraw the nomination of Mr. Lowe for election
to the Board at the 2019 Annual Meeting..

 

    

     

    

  

(c)              
Additional Appointee. The Board shall nominate, authorize and approve (and
the Company shall effectuate) the appointment of Marvin Cooper to the Board on January 31, 2020 immediately after the 2019 Annual
Meeting to fill a vacancy on the Board with a term expiring on the later of (1) the election of directors at the annual meeting
of stockholders following the 2019 Annual Meeting (the “2020 Annual Meeting”) and (2) the date that his successors
are duly elected and qualified.

 

(d)              
2019 Annual Meeting. The Company shall cause the 2019 Annual Meeting to occur
on January 31, 2020, and shall not cause the 2019 Annual Meeting to be postponed or adjourned with respect to the election of directors
other than in compliance with the joint stipulation to dismiss with prejudice Lapetus Capital II LLC v. Verso Corp., C.A.
No. 2019-1040-KSJM (the “Atlas Lawsuit”) under 8 Del. C. § 211 as filed in the form attached hereto
as Exhibit A (the “Joint Stipulation of Dismissal”) in accordance with this Agreement and issued by the
Court of Chancery of the State of Delaware. Each Investor agrees that, it will appear in person or by proxy at the 2019
Annual Meeting (including any adjournment thereof) and take all necessary steps and actions, individually and collectively, to
instruct and cause their nominees, brokers, agents, representatives or proxies to vote all shares of Common Stock beneficially
owned by such Investor “FOR” the 2020 Directors (as defined below) to the extent the 2020 Directors are set forth on
the Investors’ BLUE proxy card.

 

(e)              
Board Composition. As a result of the foregoing paragraphs (a) – (d), following the appointment of Mr.
Cooper, the Board will consist of the following seven individuals: Jeffrey Kirt, Sean Erwin, Marvin Cooper (the “Investor
Directors”); Randy Nebel, Dr. Robert Beckler, Nancy Taylor (the “Company Directors”); and Adam St.
John (the “Executive Director” and together with the Investors Directors and Company Directors, the “2020
Directors”). If for any reason the 2020 directors do not make up the entire Board as of the close of business on January
31, 2020, then as promptly as practicable after (but no later than the day immediately following) the certification by the independent
inspector of elections in connection with the 2019 Annual Meeting, the Company, the Board and if necessary, the Investors, shall
take all other action necessary for the Board to consist of the 2020 Directors until the later of (1) the election of directors
at the 2020 Annual Meeting and (2) the date that their successors are duly elected and qualified.

 

(f)               Committees. The following committees are the only standing committees of the Board: Compensation Committee,
Audit Committee and Corporate Governance and Nominating Committee (the “Standing Committees”).

 

(i)                
Immediately following the 2019 Annual Meeting, upon recommendation of the Corporate Governance and Nominating Committee
composed of the individuals below, the Board and all applicable committees of the Board shall take all necessary actions to appoint
the members of and the committee chairs to the Standing Committees.

 

(ii)             
Immediately following the actions contemplated by Section 1(e) above, the Board and all applicable committees of
the Board shall take all necessary actions to appoint Nancy Taylor, Jeffrey Kirt, Marvin Cooper, and Randy Nebel to the Corporate
Governance and Nominating Committee and to appoint Jeffrey Kirt as its chairman.

 

    2

     

    

  

(g)              
Chairman. Immediately following the 2019 Annual Meeting, the Board shall take all necessary actions to appoint
Sean T. Erwin as the Chairman of the Board until the election of directors at the 2020 Annual Meeting.

 

(h)              
Investor Demands. Lapetus irrevocably withdraws the Stocklist Demand and the Books and Records Demand.

 

(i)                
Proxy Action. The Company, the Board, and Lapetus shall promptly, but no later than the close of business
on the business day following the certification of the election of directors at the 2019 Annual Meeting, file the Joint Stipulation
of Dismissal and take all further action necessary to effect the dismissal of the Atlas Lawsuit.

 

(j)                
Replacement Investor Director.  During the term of this Agreement, the Company shall not take any action
to remove, or cause to be removed, any Investor Director other than for cause (as such term has been interpreted under the laws
of Delaware for purposes of Section 141(k) of the General Corporation Law of the State of Delaware).  In the event any of
the Investor Directors is unable or unwilling to serve as a director and ceases to be a director, resigns as a director, is removed
as a director or for any reason fails to serve or is not serving as a director for any reason prior to the 2020 Annual Meeting,
the Company agrees that Lapetus (in consultation with Blue Wolf) shall have the right to select a replacement candidate who is
reasonably acceptable (as determined by the Company Directors) to the Company and determined to be “independent” under
SEC and New York Stock Exchange rules, after the Company has conducted its ordinary course interview process for directors of the
Company.  The Company shall appoint such replacement candidate (the “Replacement Director”) to replace
the departing Investor Director, with such Replacement Director to be appointed to the Board and on each committee of the Board
on which the departing Investor Director served, if any, in substitution for such Investor Director to serve the unexpired term
of the departed Investor Director and the Replacement Director shall be considered an Investor Director for all purposes of this
Agreement.  If the proposed Investor Director is not reasonably acceptable to the Company, Lapetus (in consultation with Blue
Wolf) shall have the right to submit another proposed Replacement Director to the Company for its reasonable approval.  Lapetus
shall have the right to continue submitting the name of a proposed Replacement Directors to the Company for its reasonable approval
until the Company so approves such Replacement Director, at which time such Person shall be appointed as the Replacement Director
in substitution for such Investor Director.  The Company agrees that upon Lapetus’s request to approve a proposed Replacement
Director, it shall grant or withhold its reasonable approval as promptly as practicable (but in no event later than within five
(5) business days), subject to the Board promptly conducting its ordinary course background check and interview process for directors
of the Company.

 

(k)               Sale
Transaction. Each Investor further agrees that, it will appear in person or by proxy at the 2019 Annual Meeting
(including any adjournment or postponement thereof) and take all necessary steps and actions, individually and collectively,
to instruct and cause their nominees, brokers, agents, representatives or proxies to vote all shares of Common Stock
beneficially owned by such Investor at such meeting in accordance with the Board’s recommendation on the
Company’s proposal to approve the transactions (the “Sale Transaction”) contemplated by that certain
Membership Interest Purchase Agreement, dated November 11, 2019, by and among the Company, Verso Paper Holding LLC and
Pixelle Specialty Solutions LLC (“2019 Annual Meeting Proposal 2”). Each Investor shall take such further action
or execute such other instruments as may be necessary to effectuate the intent of this paragraph (k). Each Investor further
agrees it will not take any action that would reasonably be expected to interfere with, delay, impede or postpone the
approval or closing of the Sale Transaction.

 

    3

     

    

 

 

(l)                
No Other Compensation. Except as set forth in the respective Nomination Agreement between such Investor Director
and Atlas Holdings LLC, no Investor has, directly or indirectly, compensated or agreed to compensate, and will not, directly or
indirectly, compensate or agree to compensate an Investor Director for his or her respective service as a nominee or director of
the Company with any cash, securities (including any rights or options convertible into or exercisable for or exchangeable into
securities or any profit sharing agreement or arrangement), or other form of compensation directly or indirectly related to the
Company or its Affiliates or its securities. As used in this Agreement, the terms “Affiliate” shall have the respective
meanings set forth in Rule 12b-2 promulgated by the Securities and Exchange Commission under the Exchange Act of 1934, as amended,
and shall include all persons or entities that at any time during the term of this Agreement become Affiliates of any person or
entity referred to in this Agreement.

 

(m)             
Indemnification. The Company agrees that the Investor Directors shall be entitled to the same director benefits
as other members of the Board, including (i) compensation for such director’s service as a director and reimbursement for
such director’s expenses on the same basis as all other non-employee directors of the Company; (ii) equity-based compensation
grants and other benefits, if any, on the same basis as all other non-employee directors of the Company; and (iii) the same rights
of indemnification and directors’ and officers’ insurance coverage as the other non-employee directors of the Company
as such rights may exist from time to time. The Company hereby acknowledges that the Investor Directors may have certain rights
to other indemnification, advancement of expenses and/or insurance from sources outside of the Company and its insurers (collectively,
the “Other Indemnitors”). The Company hereby agrees (A) that, solely with respect to actions of an Investor
Director in his or her capacity as a member of the Board (or in such other capacity pursuant to which such Investor Director is
entitled to indemnification under the Company’s Amended and Restated Certificate of Incorporation, Amended and Restated
Bylaws or any other written agreement between the Company and an Indemnitee (collectively, and as each may be amended or supplemented
from time to time, the “Indemnification Agreements”)), it is the indemnitor of first resort (i.e., its obligations
to the Investor Directors (the “Indemnitees” and each, an “Indemnitee”) are primary and
any obligation of the Other Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities
incurred by such Indemnitee are secondary), (B) that it shall be required to advance the full amount of expenses incurred by an
Indemnitee and shall be liable for the full amount of all losses, claims, damages, liabilities and expenses (including attorneys’
fees, judgments, fines, penalties and amounts paid in settlement), in each instance, solely to the extent (1) legally permitted,
and (2) required by the terms of the Indemnification Agreements, and (C) that it irrevocably waives, relinquishes and releases
the Other Indemnitors from any and all claims against the Other Indemnitors for contribution, subrogation or any other recovery
of any kind in respect thereof. The Company further agrees that no advancement or payment by the Other Indemnitors on behalf of
an Indemnitee with respect to any claim for which such Indemnitee has sought indemnification from the Company shall affect the
foregoing and the Other Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement
or payment to all of the rights of recovery of such Indemnitee against the Company. The Company and each Indemnitee agree that
the Other Indemnitors are express third party beneficiaries of the terms of this Section 1(n).

 

    4

     

    

 

		2.	Representations and Warranties of the Company.

 

The Company represents
and warrants to the Investors that (a) the Company has the corporate power and authority to execute this Agreement and to bind
it thereto, (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, and assuming due execution
by each counterparty hereto, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against
the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles
and (c) the execution, delivery and performance of this Agreement by the Company does not and will not (i) violate or conflict
with any law, rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation
of or constitute a default (or an event which with notice or lapse of time or both would constitute such a breach, violation or
default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment,
acceleration or cancellation of, any organizational document or material agreement to which the Company is a party or by which
it is bound.

 

		3.	Representations and Warranties of the Investors.

 

Each Investor represents
and warrants to the Company severally and not jointly that (a) the authorized signatory of such Investor set forth on the signature
page hereto has the power and authority to execute this Agreement and any other documents or agreements to be entered into in connection
with this Agreement and to bind such Investor thereto, (b) this Agreement has been duly authorized, executed and delivered by such
Investor, and assuming due execution by each counterparty hereto, is a valid and binding obligation of such Investor, enforceable
against such Investor in accordance with its terms except as enforcement thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general
equity principles, (c) the execution of this Agreement, the consummation of any of the transactions contemplated hereby, and the
fulfillment of the terms hereof, in each case in accordance with the terms hereof, will not conflict with, or result in a breach
or violation of the organizational documents of such Investor as currently in effect, and (d) the execution, delivery and performance
of this Agreement by such Investor does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment
or decree applicable to such Investor, or (ii) result in any breach or violation of or constitute a default (or an event which
with notice or lapse of time or both would constitute such a breach, violation or default) under or pursuant to, or result in the
loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational
document, agreement, contract, commitment, understanding or arrangement to which such Investor is a party or by which it is bound.

 

    5

     

    

 

		4.	Press Release; Filings.

 

Promptly following
the execution of this Agreement, the Company and the Investors shall jointly issue a mutually agreeable press release in the form
attached hereto as Exhibit B (the “Press Release”) announcing certain terms of this Agreement. In connection
with the execution of this Agreement, and subject to the terms of this Agreement, no Party (including the Board) shall (and each
Party shall cause its Affiliates not to) make any filing or issue any other press release or public statement regarding this Agreement
or the matters contemplated hereby, other than (a) a Form 8-K and proxy statement
materials for the 2019 Annual Meeting to be filed by the Company and the Investors and the Investor’s Schedule 13D relating
to the Company related to this Agreement to be filed by the Investors, (b) the Company’s ordinary course communications with
Company constituencies, including employees, customers, suppliers, investors and stockholders, and SEC filing disclosures consistent
with the Press Release, Form 8-K and Schedule 13D, (c) as required by law or the rules and regulations of any stock exchange or
governmental entity, (d) with the prior written consent of Lapetus (with respect to filings, statements or announcements by the
Company or its Affiliates) and the Company (with respect to filings, statements or announcements by any Investor or its Affiliates),
and (e) otherwise in accordance with this Agreement. The Company, with respect to its Form 8-K and proxy statement materials, and
the Investors, with respect to any filing or amendment to a Schedule 13D and proxy statement materials related to this Agreement
and the 2019 Annual Meeting, will provide the other Party, prior to each such filing, a reasonable opportunity to review and comment
on such documents, and each such Party will consider any comments from the other Party in good faith. Except as required by applicable
law or regulation, each Party hereto acknowledges and agrees that it will not, and will take all necessary actions to cause its
Affiliates to not, issue any release, make any filing or otherwise make any public statement or announcement, in each instance,
that is inconsistent with the Press Release.

 

		5.	Specific Performance.

 

Each of the Investors,
on the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other Party or Parties,
as the case may be, would occur in the event any of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached and that such injury would not be adequately compensable by the remedies available at
law (including the payment of money damages). It is accordingly agreed that the Investors, on the one hand, and the Company, on
the other hand (the “Moving Party”), shall each be entitled to specific enforcement of, and injunctive relief
to prevent any violation of, the terms hereof, in each case without the posting of any bond or other undertaking, and the other
Party or Parties, as the case may be, hereto will not take action, directly or indirectly, in opposition to the Moving Party seeking
such relief on the grounds that any other remedy or relief is available at law or in equity. This Section 5 is not the exclusive
remedy for any violation of this Agreement.

 

		6.	Severability.

 

If any term,
provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full
force and effect and shall in no way be affected, impaired or invalidated. It is hereby stipulated and declared to be the
intention of the Parties that the Parties would have executed the remaining terms, provisions, covenants and restrictions
without including any of such which may be hereafter declared invalid, void or unenforceable. In addition, the Parties agree
to use their best efforts to agree upon and substitute a valid and enforceable term, provision, covenant or restriction for
any of such that is held invalid, void or enforceable by a court of competent jurisdiction.

 

    6

     

    

 

		7.	Notices.

 

Any notices, consents,
determinations, waivers or other communications required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending Party);
(c) when sent by email (with a confirming copy sent overnight with a nationally recognized overnight delivery service); or (d)
one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to
the Party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

Verso
Corporation

8540 Gander
Creek Drive

Miamisburg,
Ohio 45342

		Attention:	Corporate Secretary

		E-mail:	St.John.Daugherty@Versoco.com

 

with
a copy (for informational purposes only) to both:

 

Akin Gump
Strauss Hauer & Feld LLP

One Bryant
Park

Bank of
America Tower

New York,
NY 10036-674

		Attention:	Kerry Berchem, Esq.
	 	 	Alice Hsu, Esq.

                 

		Facsimile:	(212) 872-1002

		E-mail:	kberchem@akingump.com
	 	 	ahsu@akingump.com

 

If to the Investors:

 

c/o Atlas Holdings LLC

100 Northfield St.

Greenwich, CT 06830

		Attention:	Andrew Bursky; Timothy Fazio

		Email:	abursky@atlasholdingsllc.com; tfazio@atlasholdings.com

 

    7

     

    

  

and

 

c/o
Blue Wolf Capital Partners LLC

One
Liberty Plaza, 52nd Floor

165
Broadway

New
York, New York 10006

		Attention:	Adam Blumenthal

		Email:	adam@bluewolfcapital.com

 

with a copy (which
shall not constitute notice) to both:

 

Willkie
Farr & Gallagher LLP

787 Seventh
Avenue

New York,
NY 10019

		Attention:	Steven A. Seidman, Mark A. Cognetti and Laura H. Acker

		Facsimile:	(212) 728-8111

		E-mail:	sseidman@willkie.com; mcognetti@willkie.com; lacker@willkie.com

 

and

 

Greenberg
Traurig, LLP

MetLife
Building

200
Park Avenue

New
York, NY 10166

		Attention:	Peter H. Lieberman; Dmitriy A. Tartakovskiy

		Facsimile:	(212) 801-6400

		Email:	liebermanp@gtlaw.com; tartakovskiyd@gtlaw.com

 

		8.	Applicable Law.

 

This Agreement
shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without reference to the
conflict of laws principles thereof that would result in the application of the law of another jurisdiction. Each of the
Parties hereto irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and
obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights
and obligations arising hereunder brought by the other Party hereto or its successors or assigns, shall be brought and
determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware
(or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any federal court within the
State of Delaware). Each of the Parties hereto hereby irrevocably submits with regard to any such action or proceeding for
itself and in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts
and agrees that it will not bring any action relating to this Agreement in any court other than the aforesaid courts. Each of
the Parties hereto hereby irrevocably waives, and agrees not to assert in any action or proceeding with respect to this
Agreement, (a) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, (b)
any claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced
in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) and (c) to the fullest extent permitted by applicable legal requirements, any claim that
(i) the suit, action or proceeding in such court is brought in an inconvenient forum, (ii) the venue of such suit, action or
proceeding is improper or (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. Each
Party hereto agrees that notice to such Party provided in accordance with Section 7 hereof shall constitute effective
service of process in any such action or proceeding. EACH OF THE PARTIES HERETO WAIVES THE RIGHT TO TRIAL BY JURY.

 

     8

     

    

 

		9.	Counterparts.

 

This Agreement may
be executed in two or more counterparts, each of which shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each of the Parties and delivered to the other Party (including by means of electronic delivery
or facsimile).

 

		10.	Expenses.

 

The Company promptly
(but no later than three (3) business days after the date of this Agreement shall reimburse the Investors $700,000 in connection
with, or related to, the Investors’ interactions with the Company, the negotiation and execution of this Agreement, identification
of the Investor Directors and actions in connection with the 2019 Annual Meeting.

 

		11.	Mutual Non-Disparagement.

 

During the term of
this Agreement, the Company and the Investors shall each refrain from making, and shall cause their respective Affiliates and
its and their respective principals, directors, members, general partners, officers and employees not to make or cause to be made
any statement or announcement, including in any document or report filed with or furnished to the SEC or through the press, media,
analysts or other Persons, that constitutes an ad hominem attack on, or otherwise disparages, defames, slanders, impugns or is
reasonably likely to damage the reputation of, (a) in the case of statements or announcements by any of the Investors and their
related Persons, the current, former or future officers, current or former director nominees, directors or employees of the Company
or any of its Affiliates or, prior to the deadline for stockholders to present director nominations to be considered at the 2020
Annual Meeting, the Company or any of its Affiliates, and (b) in the case of statements or announcements by the Company and its
related Persons, the Investors or any of the Investors’ advisors, their respective current, former or future officers, directors,
employees, members or general partners. The foregoing shall not (i) restrict the ability of any Person to comply with any subpoena
or other legal process or respond to a request for information (provided that such request is not targeted at this Agreement or
the other party hereto) from any governmental authority with competent jurisdiction over the party from whom information is sought,
(ii) apply to any private communications between the Investors, their respective Affiliates and its and their respective principals,
directors, members, general partners, officers and employees, on the one hand, and the directors of the Company, on the other
hand, pursuant to Section 12 hereof to the extent that it would not be reasonably expected that such communication would
require a public disclosure, (iii) restrict the ability of the Investors and their related Persons to make any statement in response
to any criminal or civil investigation by any governmental authority related to the Company, its Affiliates, or any of its and
their respective current, former or future officers, directors or employees; (iv) prevent the Parties or any of their respective
Affiliates from (x) bringing litigation to enforce the provisions of this Agreement, (y) making counterclaims with respect to
any proceeding initiated by, or on behalf of, a Party or its Affiliates against the other Party hereto or its Affiliates or (z)
bringing bona fide commercial disputes that do not relate to the subject matter of this Agreement, (v) restrict the ability of
any Person to comply with any subpoena or other legal process or respond to a request for information from any governmental authority
with jurisdiction over the Party from whom information is sought or (vi) restrict the ability of the Investor Directors to discharge
their fiduciary duties as directors of the Company or members of any committee of the Board. For the avoidance of doubt, any materials
publicly released by either Party prior to the date of this Agreement will not be deemed to be in breach of this provision. For
the purposes of this Agreement, “Person” shall be interpreted broadly to include, among others, any individual, general
or limited partnership, corporation, limited liability or unlimited liability company, joint venture, estate, trust, group, association
or other entity of any kind or structure.

 

     9

     

    

 

		12.	Confidentiality.

 

The Company hereby
agrees that the Investor Directors shall be permitted to and may provide material non-public information, including but not limited
to, discussions or matters considered in meetings of the Board or Board committees, to the Investors, subject to the terms of a
confidentiality agreement set forth on Exhibit C attached hereto (the “Confidentiality Agreement”).

 

		13.	Securities Laws.

 

Each Investor acknowledges
that it is aware, and will advise each of its representatives who are informed as to the matters that are the subject of this Agreement,
that the United States securities laws may prohibit any person who directly or indirectly has received from an issuer material,
non-public information from purchasing or selling securities of such issuer or from communicating such information to any other
person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities.

 

		14.	Release.

 

(a)              
(a)As of the date hereof, the Investors, on behalf of itself, each of its Affiliates (which term as used in
this Section 14 shall not include any portfolio company of an Investor) and each of their respective predecessors, successors,
personal representatives, advisors and assigns (each, an “Investor Releasing Party” and, collectively, the
 “Investor Releasing Parties”), hereby irrevocably releases and forever discharges the Company and the Company’s
officers, directors, employees, predecessors, successors, assigns, advisors and subsidiaries (each, an “Investor Released
Party” and, collectively, the “Investor Released Parties”), for and from any and all manners of actions,
causes, causes of action, suits, liabilities, rights, costs, expenses (including, without limitation, attorneys’ fees and
costs), claims and demands, of whatever kind or nature, in law or in equity, whichever have or may have existed, or which do exist,
that may now or hereafter at any time be made or brought against any Investor Released Party by any Investor Releasing Party
by reason of or in connection with any matter, cause, thing, action or omission whatsoever, arising, occurring, relating
to or in respect of any time up through and including the date of this Agreement, including without limitation arising out of
or related to the Atlas Lawsuit (collectively, the “Investor Released Matters”); provided, however, that nothing
in this paragraph will release any Investor Released Party from (i) any obligations under this Agreement or claims to enforce
the terms of this Agreement, or (ii) claims that any Investor has no knowledge of as of the date of this Agreement. From and after
the date hereof, each Investor, on behalf of itself and each of the Investor Releasing Parties, agrees to not, directly or indirectly
(including, without limitation, in a derivative proceeding), assert any claim or demand or commence, institute or maintain, or
cause to be commenced, instituted, or maintained, or knowingly facilitate or assist any other party in commencing, instituting
or maintaining, any action of any kind against any of the Investor Released Parties based upon or with respect to any Investor
Released Matter(s); provided, however, that the foregoing shall not prevent the Investor or any of their representatives from
responding to oral questions, interrogatories, requests for information or documents, subpoenas civil investigative demands or
similar processes (a “Legal Requirement”) in connection with any legal process or proceeding that has not been
initiated by, or on behalf of, the Investor or any of its representatives; provided, further, that in the event that any of the
Investors or any of their representatives receives such Legal Requirement, the Investors shall give prompt written notice of such
Legal Requirement to the Company.

 

     10

     

    

 

(b)              
As of the date hereof, the Company, on behalf of itself, each of its Affiliates and each of their respective predecessors,
successors, personal representatives, advisors and assigns (each, a “Company Releasing Party” and, collectively,
the “Company Releasing Parties”), hereby irrevocably releases and forever discharges the Investors and the
Investor’s officers, directors, employees, managers, members, partners, predecessors, successors, assigns, advisors, current
or former nominees, and subsidiaries (each, a “Company Released Party” and, collectively, the “Company
Released Parties”), for and from any and all manners of actions, causes, causes of action, suits, liabilities, rights,
costs, expenses (including, without limitation, attorneys’ fees and costs), claims and demands, of whatever kind or nature,
in law or in equity, whichever have or may have existed, or which do exist, that may now or hereafter at any time be made or brought
against any Company Released Party by any Company Releasing Party by reason of or in connection with any matter, cause, thing,
action or omission whatsoever, arising, occurring, relating to or in respect of any time up through and including the date of
this Agreement, including, without limitation arising out of or related to the Atlas Lawsuit (collectively, the “Company
Released Matters”); provided, however, that nothing in this paragraph will release any Company Released Party from (i)
any obligations under this Agreement or claims to enforce the terms of this Agreement, or (ii) claims that the Company has no
knowledge of as of the date of this Agreement. From and after the date hereof, the Company, on behalf of itself and each of the
Company Releasing Parties, agrees to not, directly or indirectly (including, without limitation, in a derivative proceeding),
assert any claim or demand or commence, institute or maintain, or cause to be commenced, instituted, or maintained, or knowingly
facilitate or assist any other party in commencing, instituting or maintaining, any action of any kind against any of the Company
Released Parties based upon or with respect to any Company Released Matter(s); provided, however, that the foregoing shall not
prevent the Company or any of its representatives from responding to a Legal Requirement in connection with any legal process
or proceeding that has not been initiated by, or on behalf of, the Company or any of its representatives; provided, further, that
in the event that any of the Company or any of its representatives receives such Legal Requirement, the Company shall give prompt
written notice of such Legal Requirement to the Investors.

 

     11

     

    

 

		15.	Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries.

 

This Agreement contains
the entire understanding of the Parties with respect to its subject matter. There are no restrictions, agreements, promises, representations,
warranties, covenants or undertakings between the Parties other than those expressly set forth herein. No modifications of this
Agreement can be made except in writing signed by an authorized representative of each the Company and the Investors. No failure
on the part of any Party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy by such Party 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. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and
be enforceable by the Parties hereto and their respective successors, heirs, executors, legal representatives, and permitted assigns.
No Party shall assign this Agreement or any rights or obligations hereunder without, with respect to the Investors, the prior written
consent of the Company, and with respect to the Company, the prior written consent of the Investors. Except as set forth in Section
1(m), this Agreement is solely for the benefit of the Parties and is not enforceable by any other persons or entities.

 

[The remainder of this page intentionally
left blank]

 

     12

     

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed and delivered by the duly authorized signatories of the Parties as of the date hereof.

VERSO CORPORATION 

 

	By:   	    /s/ Adam St. John	 
	 	Name:    Adam St. John	 
	 	Title:      Chief Executive Officer	 

 

     13

     

    

 

	 	LAPETUS CAPITAL II LLC
	 	 
	 	By:	     /s/ Timothy J. Fazio
	 	Name:  Timothy
J. Fazio
	 	Title:
    Vice President
	 	 
	 	ATLAS CAPITAL RESOURCES II LP
	 	 
	 	By:
Atlas Capital GP II LP, its general partner
	 	By:
Atlas Capital Resources GP II LLC, its general
partner
	 	 
	 	By:	     /s/ Timothy J. Fazio
	 	Name:  Timothy J. Fazio
	 	Title:    Managing Partner
	 	 
	 	ATLAS CAPITAL GP II LP
	 	 
	 	By: Atlas Capital Resources GP II LLC, its general partner
	 	 
	 	By:	     /s/ Timothy J. Fazio
	 	Name:  Timothy J. Fazio
	 	Title:    Managing Partner
	 	 
	 	ATLAS CAPITAL RESOURCES GP II LLC
	 	 
	 	By:	     /s/ Timothy J. Fazio
	 	Name:  Timothy J. Fazio
	 	Title:    Managing Partner
	 	 
	 	LAPETUS CAPITAL III LLC
	 	 
	 	By:	     /s/
Timothy J. Fazio
	 	Name:  Timothy J. Fazio
	 	Title:    Vice President

 

     14

     

    

 

	 	ATLAS CAPITAL RESOURCES III LP
	 	 
	 	By:
    Atlas Capital GP III LP, its general partner
	 	By:
    Atlas Capital Resources GP III LLC, its general partner
	 	 
	 	By:	     /s/ Timothy J. Fazio
	 	Name:  Timothy J. Fazio
	 	Title:    Managing Partner
	 	

	 	ATLAS CAPITAL GP III LP
	 	 
	 	By:
    Atlas Capital Resources GP III LLC, its general partner
	 	 
	 	By:	    /s/ Timothy J. Fazio
	 	Name:  Timothy J. Fazio
	 	Title:    Managing Partner
	 	
	 	ATLAS CAPITAL RESOURCES GP III LLC
	 	 
	 	By:	     /s/
    Timothy J. Fazio
	 	Name:  Timothy J. Fazio
	 	Title:    Managing Partner

 

     15

     

    

 

	 	BW COATED LLC
	 	 
	 	By:
    Blue Wolf Capital Fund IV, L.P., its sole member
	 	By:
    Blue Wolf Capital Advisors IV, L.P., its general partner
	 	By:
    Blue Wolf Capital Advisors IV, LLC, its general partner
	 	 
	 	By:	    /s/ Adam Blumenthal
	 	Name:  Adam Blumenthal
 Title:    Managing Member
	 	
	 	BLUE WOLF CAPITAL FUND IV, L.P.
	 	 
	 	By:
    Blue Wolf Capital Advisors IV, L.P., its general partner
	 	By:
    Blue Wolf Capital Advisors IV, LLC, its general partner
	 	 
	 	By:	    /s/ Adam Blumenthal
	 	Name:  Adam Blumenthal
 Title:    Managing Member
	 	
 

	 	BLUE WOLF CAPITAL ADVISORS IV, L.P.
	 	 
	 	By:
    Blue Wolf Capital Advisors IV, LLC, its general partner
	 	 
	 	By:	    /s/ Adam Blumenthal
	 	Name:  Adam Blumenthal
	 	Title:    Managing Member
	 	 
	 	BLUE WOLF CAPITAL ADVISORS IV, LLC
	 	
 

	 	By:	    /s/ Adam Blumenthal
	 	Name:  Adam Blumenthal
	 	Title:    Managing Member

 

     16

     

    

 

Exhibit A

 

Form of Joint Stipulation of Dismissal

 

     17

     

    

 

Exhibit B

 

Press Release 

 

     18

     

    

 

Exhibit C

 

Confidentiality Agreement 

 

     19

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