Document:

EXHIBIT 10.24

 

May 2, 2005

 

Charles J. Aardema

5315 Oakbrook Dr.

Fairfield, OH 45014

 

RE:  Employment Letter Agreement

 

Dear Chuck:

 

This letter agreement (“Agreement”) is being delivered to you (“Executive”)
in connection with your employment with NewPage Corporation (hereinafter
referred to as the “Company”).  The terms
of your employment are as set forth below, effective upon the Closing Date (as
defined under the Equity and Purchase Agreement (the “Purchase Agreement”) by
and between Escanaba Timber LLC (f/k/a Maple Acquisition LLC) and MeadWestvaco
Corporation dated as of January 14, 2005, as amended) (the “Effective Date”):

 

1.             Position:  Executive
will be employed as Vice President, Human Resources and Communications of the
Company and Escanaba Timber LLC and will have such authority, responsibilities
and duties as are customarily attendant to that position.  Executive shall also serve certain of the
Company’s designated subsidiaries or affiliates as determined by the Board of
Directors of NewPage Holding Corporation (the “Holding Board”), for no
additional consideration.

 

2.             Location: 
The principal place of the Executive’s employment shall be at the
Company’s headquarters, which shall initially be in Dayton, Ohio.

 

3.             Compensation and Executive Benefits:  During Executive’s employment, Executive
shall receive:

 

(a) Base Salary:  $190,000, payable in accordance with the
payroll practices of the Company.  Each
year, the Holding Board shall review the Executive’s base salary for
increase.  Once increased, base salary
shall not be decreased.

 

(b) Signing Bonus: $81,375,
payable on the Effective Date, $63,875.79 of which the Executive hereby
instructs the Company to pay on his behalf to Maple Timber Acquisition LLC (the
“Parent”) to purchase the interests in the Paper Series and Timber Series of
the Parent on the Effective Date pursuant to the Executive Purchase Agreement,
dated as the Effective Date,

 

 

between the Parent and the Executive (the “Executive
Purchase Agreement”).

 

(c) Annual Bonus.  Executive shall be eligible to participate in
an annual bonus pool for senior executives of the Company as follows:  (i) for the performance period from May 1,
2005 to December 31, 2005, such bonus shall be based upon the provisions
of the current Papers Business Unit Incentive Plan and the Executive’s target
bonus shall be based on 35% of Base Salary, pro rated for the period between May 1,
2005 and December 31, 2005 (it being understood that MeadWestvaco
Corporation is responsible for the bonus for the period between January 1,
2005 and April 30, 2005) (ii) for performance periods after 2005,
such bonus will be based upon the achievement by the Company of consolidated
EBITDA related targets reasonably derived from the annual business plan
presented by management and approved by the Holding Board.  The Executive’s target bonus for achieving
target EBITDA, as approved by the Holding Board, will be 35% of Base Salary and
the Executive will receive a minimum bonus for achieving minimum EBITDA, as
approved by the Holding Board.  Bonuses
will be calculated on a straight-line basis for EBITDA achievements between
targets.  There shall be no cap on the
amount of such performance-based bonuses. 
No bonus will be paid if minimum EBITDA is not achieved.  Each annual bonus shall be paid on or before March 15th
of the year following the tax year in which the relevant services have been
performed.

 

(d) Vacation.  Five (5) weeks of paid annual vacation
time each year (accrued in full on the Effective Date and each anniversary
thereafter).  Executive shall not be
entitled to payment for unused vacation days upon the termination of his
employment except as set forth in Section 10 below.  The carry-over of vacation days shall be in
accordance with Company policy from time to time in effect.

 

(e) Other Benefits.  Executive shall be eligible to participate in
employee benefit plans pursuant to the terms of such plans that are available
to similarly situated executives of the Company.  The Company may at any time or from time to
time amend, modify, suspend or terminate any employee benefit plan, program or
arrangement for any reason in its sole discretion.

 

4.             Reimbursement of Expenses:  The Executive will be reimbursed for all
appropriate business expenses incurred by him in connection with his duties in
accordance with the policies of the Company as in effect from time to time.

 

 

5.             Disclosure:  The
Executive represents and warrants that Executive is not a party to or subject
to any restrictive covenants, legal restrictions or other agreements in favor
of any entity, or person which would in any way preclude, inhibit, impair or
limit the Executive’s ability to perform Executive’s obligations for the
Company, including, but not limited to, non-competition agreements,
non-solicitation agreements or confidentiality agreements.

 

6.             Confidentiality:

 

I.          During
the course of the Executive’s employment by MeadWestvaco Corporation, the
Executive had access to, and during the course of the Executive’s employment
under this Agreement, the Executive will have access
to, certain trade secrets and confidential information relating to the Company
and its affiliates and subsidiaries (the “Protected Parties”) which is not
readily available from sources outside the Company.  The confidential and proprietary information
and, in any material respect, trade secrets of the Protected Parties are among
their most valuable assets, including but not limited to, their customer,
supplier and vendor lists, contract terms, databases, competitive strategies,
computer programs, frameworks, or models, their marketing programs, their
sales, financial, marketing, training and technical information, their product
development (and proprietary product data), business plans and strategies
(including, but not limited to, acquisition and divestiture plans),
environmental matters and other regulatory matters and any other information,
whether communicated orally, electronically, in writing or in other tangible
forms concerning how the Protected Parties create, develop, acquire or maintain
their products and marketing plans, target their potential customers and
operate their other businesses.  The
Protected Parties invested, and continue to invest, considerable amounts of
time and money in their process, technology, know-how, obtaining and developing
the goodwill of their customers, their other external relationships, their data
systems and data bases, and all the information described above (hereinafter
collectively referred to as “Confidential Information”), and any
misappropriation or unauthorized disclosure of Confidential Information in any
form would irreparably harm the Protected Parties.  The Executive acknowledges that such
Confidential Information constitutes valuable,

 

 

highly confidential, special and unique
property of the Protected Parties.  The
Executive shall hold in a fiduciary capacity for the benefit of the Protected
Parties all Confidential Information relating to the Protected Parties and
their businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company or its subsidiaries and affiliates and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this
Agreement).  Except as required by law or
an order of a court or governmental agency with jurisdiction, the Executive
shall not, during the period the Executive is employed by the Company or its
subsidiaries and affiliates or at any time thereafter, disclose any
Confidential Information, directly or indirectly, to any person or entity for
any reason or purpose whatsoever, nor shall the Executive use it in any way,
except in the course of the Executive’s employment with, and for the benefit
of, the Protected Parties or to enforce any rights or defend any claims
hereunder or under any other agreement to which the Executive is a party,
provided that such disclosure is relevant to the enforcement of such rights or
defense of such claims and is only disclosed in the formal proceedings related
thereto.  The Executive shall take all
reasonable steps to safeguard the Confidential Information and to protect it
against disclosure, misuse, espionage, loss and theft.  The Executive understands and agrees that the
Executive shall acquire no rights to any such Confidential Information.

 

II.        All
files, records, documents, drawings, specifications, data, computer programs,
evaluation mechanisms and analytics and similar items relating thereto or to
the Business (for the purposes of this Agreement, “Business” shall be as
defined in Section 8 hereof), as well as all customer lists, specific
customer information, compilations of product research and marketing techniques
of the Company and its subsidiaries and affiliates, whether prepared by the
Executive or otherwise coming into the Executive’s possession, shall remain the
exclusive property of the Company and its subsidiaries and affiliates, and the
Executive shall not remove any such items from the premises of the Company and
its subsidiaries and affiliates, except in furtherance of the Executive’s
duties under this Agreement.

 

 

III.       It
is understood that while employed by the Company the Executive will promptly
disclose to it, and assign to it the Executive’s interest in any invention,
improvement or discovery made or conceived by the Executive, either alone or
jointly with others, which arises out of the Executive’s employment.  At the Company’s request and expense, the
Executive will assist the Company and its subsidiaries and affiliates during
the period of the Executive’s employment under this Agreement and thereafter in
connection with any controversy or legal proceeding relating to such invention,
improvement or discovery and in obtaining domestic and foreign patent or other
protection covering the same.

 

IV.       As
requested by the Company and at the Company’s expense, from time to time and
upon the termination of the Executive’s employment for any reason, the
Executive will promptly deliver to the Company and its subsidiaries and
affiliates, as applicable, all copies and embodiments, in whatever form, of all
Confidential Information in the Executive’s possession or within his control
(including, but not limited to, memoranda, records, notes, plans, photographs,
manuals, notebooks, documentation, program listings, flow charts, magnetic
media, disks, diskettes, tapes and all other materials containing any
Confidential Information) irrespective of the location or form of such
material.  If requested by the Company,
the Executive will provide the Company with written confirmation that all such
materials have been delivered to the Company as provided herein.

 

7.             Non-Solicitation or Hire.  During the Executive’s employment and for a
period of one (1) year following the termination of the Executive’s
employment for any reason, the Executive shall not directly or indirectly
solicit or attempt to solicit or induce, directly or indirectly, (a) any
party who is a customer of the Company or its subsidiaries or affiliates,
during period for the purpose of marketing, selling or providing to any such
party any services or products offered by or available from the Company or its
subsidiaries or affiliates and relating to the Business (as defined in Section 8)
or (b) any employee of the Company or any of its subsidiaries or
affiliates or any person who was an employee of the Company or any of its
subsidiaries or affiliates during the twelve (12) month period immediately
prior to the date of Executive’s termination of employment to terminate such
employee’s employment relationship with the Protected Parties in order, in
either case, to enter into a

 

 

similar relationship with the Executive, or
any other person or any entity in competition with the Business of the Company
or any of its subsidiaries or affiliates.

 

8.             Non-Competition.  During the Executive’s employment and for a
period of one (1) year following the termination of the Executive’s
employment for any reason, Executive shall not, whether individually, as a
director, manager, member, stockholder, partner, owner, employee, consultant or
agent of any business, or in any other capacity, other than on behalf of the
Company or a subsidiary or affiliate, organize, establish, own, operate,
manage, control, engage in, participate in, invest in, permit his name to be
used by, act as a consultant or advisor to, render services for (alone or in
association with any person, firm, corporation or business organization), or
otherwise assist any person or entity that engages in or owns, invests in,
operates, manages or controls any venture or enterprise, which engages or
proposes to engage in the coated paper and/or carbonless paper business
anywhere in the world (the “Business”). 
Notwithstanding the foregoing, nothing in this Agreement shall prevent
the Executive from owning for passive investment purposes not intended to
circumvent this Agreement, less than five percent (5%) of the publicly traded
common equity securities of any company engaged in the Business (so long as the
Executive has no power to manage, operate, advise, consult with or control the
competing enterprise and no power, alone or in conjunction with other
affiliated parties, to select a director, manager, general partner, or similar
governing official of the competing enterprise other than in connection with
the normal and customary voting powers afforded the Executive in connection
with any permissible equity ownership).

 

9.             Remedies; Specific Performance.  The Parties acknowledge and agree
that the Executive’s breach or threatened breach of any of the restrictions set
forth in Sections 6, 7 and 8 will result in irreparable and continuing damage
to the Protected Parties for which there may be no adequate remedy at law and
that the Protected Parties shall be entitled to equitable relief, including
specific performance and injunctive relief as remedies for any such breach or
threatened or attempted breach.  The
Executive hereby consents to the grant of an injunction (temporary or
otherwise) against the Executive or the entry of any other court order against
the Executive prohibiting and enjoining him from violating, or directing him to
comply with any provision of Sections 6, 7 or 8.  The Executive also agrees that such remedies
shall be in addition to any and all remedies, including damages, available to
the Protected Parties against him for such breaches or threatened or attempted
breaches.  In addition, without

 

 

limiting the Protected Parties’ remedies for
any breach of any restriction on the Executive set forth in Sections 6, 7, or
8, except as required by law, the Executive shall not be entitled to any
payments set forth in Section 10 hereof if the Executive breaches the
covenants applicable to the Executive contained in Sections 6, 7 or 8.

 

10.           Termination:  The Company may terminate Executive’s
employment hereunder for any reason and at any time without prior notice.  Upon a termination of the Executive’s
employment without Cause (as defined below) or by Executive with Good Reason
(as defined below), and subject to the Executive’s compliance with Sections 6,
7 and 8 of this Agreement and subject to the execution by the Executive,
without revocation, of a valid employment release substantially in the form
attached hereto as Exhibit A, the Executive shall receive from the Company
(which shall be in lieu of any payments or benefits to which the Executive may
be entitled under any Company severance plan (the “Severance Plan)):

 

I.          any
unpaid Base Salary through the date of termination;

 

II.        a
pro rata bonus for the year of termination, calculated as the product of (x) “Severance
Bonus Amount” (as defined below) and (y) a fraction, the numerator of which is
the number of days in the current fiscal year through the date of termination
and the denominator of which is 365, payable at the time that bonuses are paid
after the Executive’s termination date, to similarly situated executives;

 

III.       any
accrued but unused vacation pay;

 

IV.       an
amount equal to two (2) times Base Salary minus an amount equal to the
original purchase price paid for the Paper Class A Common Percentage
Interests pursuant to the terms of the Executive Purchase Agreement between the
Executive and the Company; provided that if such termination without Cause or
with Good Reason is within 12 months following the acquisition by NewPage Holding
Corporation or its subsidiaries of the stock or assets of a business enterprise
of at least substantially the same revenues and total assets as NewPage Holding
Corporation (“NewPage”) and its subsidiaries on a consolidated basis (for the
avoidance of doubt, such a business enterprise shall include one of the four (4) leading
coated paper companies other than the Company), the amount shall be equal to three (3) times Base Salary minus
an amount equal to the original

 

 

purchase price paid for the Paper Class A Common Percentage
Interests pursuant to the terms of the Executive Purchase Agreement between the
Executive and the Company; provided, further that, if at the time of a
termination of employment without Cause or with Good Reason, the aggregate “fair
market value” of the Paper Class A Common Percentage Interests being
repurchased from the Executive pursuant to the Executive Purchase Agreement is
less than the aggregate original purchase price paid by the Executive for such
Paper Class A Common Percentage Interests, the Executive shall receive an
additional cash payment equal to the difference between (i) the aggregate
original purchase price paid for such Paper Class A Common Percentage
Interests by the Executive and (ii) the aggregate “fair market value” of
such Paper Class A Common Percentage Interests at the time of the
termination without Cause or with Good Reason;

 

V.        continued
receipt of welfare benefits for twenty-four (24) months after the Executive’s
date of termination; provided, however, if the Executive becomes reemployed
with another employer and is eligible to receive welfare benefits under another
employer-provided plan, the welfare benefits described in this Section 10(V).
shall be secondary to those provided under such other plan;

 

VI.       outplacement
services substantially similar to those provided pursuant to the terms of the
Severance Plan; and

 

VII.      accrued
benefits pursuant to the terms and conditions of the Company’s benefit plans
and programs.

 

Upon a termination without Cause or with Good
Reason, the payment in I above shall be made within 10 business days after the
date of termination (unless an earlier date is prescribed by law) and the
payments in II-IV shall be paid in a lump sum after the later of (i) the
expiration of the applicable revocation period contained in the employment
release and (ii) with respect to bonus, the annual bonus payment date for
similarly situated employees after the Executive’s termination of employment.

 

If the Executive’s employment terminates as a
result of the Executive’s death or if the Company terminated the Executive’s
employment on account of the Executive’s Disability (as defined below), the
Executive, or the Executive’s legal representatives (as appropriate), shall be
entitled to receive items I, II, III, and VII.

 

 

listed above and if the Executive’s
employment terminates with Cause or as a result of a resignation by the
Executive without Good Reason, the Executive shall only be entitled to receive
items I, III and VII.  The payment
set forth in I and III shall be paid in a lump sum within 10 business days
after termination (unless an earlier date is prescribed by law) and with
respect to II at such time that annual bonuses are paid after the Executive’s
termination date to similarly situated employees.

 

The obligations of the Company to Executive
which arise upon the termination of his employment pursuant to this Section 10
shall not be subject to mitigation or offset.

 

For the purposes of this Agreement, “Cause”
means (i) commission of a felony by the Executive, (ii) acts of
dishonesty by the Executive resulting or intending to result in personal gain
or enrichment at the expense of the Company or its subsidiaries or affiliates, (iii) the
Executive’s material breach of any provision of any policy of the Company, NewPage Holding
or Maple Timber Acquisition LLC (Paper Series or Timber Series), (iv) the
Executive’s failure to follow the lawful written directions of Executive’s
supervisor, the Chief Executive Officer and President of the Company or NewPage Holding,
or the Holding Board, the Board of Directors of the Company or the Board of
Directors of Maple Timber Acquisition LLC (Paper Series or Timber Series),
(v) conduct by the Executive in connection with Executive’s duties that is
fraudulent, willful and materially injurious to the Company or its subsidiaries
or affiliates or (vi) conduct by the Executive in connection with
Executive’s duties that is unlawful and materially injurious to the Company or
its subsidiaries or affiliates; provided that the Executive shall have ten (10) business
days following the Company’s written notice of its intention to terminate the
Executive’s employment to cure such Cause, if curable, as determined by the
Holding Board, in its sole discretion.

 

For the purposes of this Agreement, “Good
Reason” means, without the consent of the Executive, (i) a reduction by
the Company in the Executive’s Base Salary or in the percentage of Base Salary
on which the Executive’s bonus is based; (ii) a material reduction in the
aggregate benefits provided to the Executive, except for any across-the-board
reduction(s) affecting all similarly situated Executives on substantially the
same proportional basis; (iii) relocation of the Executive outside of
fifty (50) miles from his office location set forth in Section 2 hereof,
or (iv) any failure by the Company to obtain the express written
assumption of the Company’s obligations to the Executive as described herein by
any successor or assign of the Company.

 

 

For the purposes of this Agreement, “Disability”
means the determination by the Company, in accordance with applicable law,
based on information provided by a physician selected by the Company or its
insurers and reasonably acceptable to the Executive that, as a result of a
physical or mental injury or illness, the Executive has been unable to perform
the essential functions of the Executive’s job with or without reasonable
accommodation for a period of (i) ninety (90) consecutive days or (ii) one-hundred
eighty (180) days in any one-year period.

 

For the purposes of this Agreement, “Severance
Bonus Amount” shall mean, in the event of a termination (i) prior to June 1st
of any calendar year, the annual performance-based bonus paid to the Executive
for the calendar year prior to the termination or (ii) on or after June 1st
of any calendar year, the annual performance-based bonus that would have been
payable to the Executive for the calendar year of the termination (determined
as of the end of such calendar year and payable when the Company pays its
annual performance-based bonuses to similarly situated employees).

 

11.           Removal from any Boards and Positions.  If the Executive’s employment terminates for
any reason, he shall be deemed to resign (i) if a member, from the Holding
Board, the Board of Directors of the Paper Series and the Timber Series of
Maple Timber Acquisition LLC or any other board of directors of any subsidiary
or affiliate of the Company or any other board to which he has been appointed
or nominated by or on behalf of the Company and (ii) from any position
with the Company or any subsidiary or affiliate of the Company, including, but
not limited to, as an officer of the Company or any of its subsidiaries or
affiliates

 

12.           Nondisparagement:  Except as required by law or order of a court
or governmental agency having jurisdiction or to report, in good faith, an
impropriety or financial wrongdoing affecting the business of the Company,
Executive agrees that Executive will not at any time publish or communicate to
any person or entity any Disparaging (as defined below) remarks, comments or
statements concerning the Company, Cerberus Capital Management, L.P., their
parents, subsidiaries and affiliates, and their respective present and former
members, partners, directors, officers, shareholders, employees, agents, attorneys,
successors and assigns.  “Disparaging”
remarks, comments or statements are those that impugn the character, honesty,
integrity or morality or business acumen or abilities in connection with any
aspect of the operation of business of the individual or entity being
disparaged.

 

 

13.           Property: 
The Executive acknowledges that all originals and copies of materials,
records and documents generated by Executive or coming into Executive’s
possession during Executive’s employment by the Company or its subsidiaries and
affiliates are the sole property of the Company and its subsidiaries and
affiliates (“Company Property”).  During
the Executive’s employment and at all times thereafter, the Executive shall not
remove, or cause to be removed, from the premises of the Company or its
subsidiaries or affiliates, copies of any record, file, memorandum, document,
computer related information or equipment, or any other item relating to the
business of the Company or its subsidiaries or affiliates, except in furtherance
of Executive’s duties under the Agreement. 
When the Executive’s employment terminates, or upon request of the
Company at any time, the Executive shall promptly deliver to the Company all
copies of Company Property in Executive’s possession or control.

 

14.           Notices: 
Any notice or other communication required or which may be given
hereunder shall be in writing and shall be delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage prepaid, and shall be deemed given when so delivered
personally, telegraphed, telexed, or sent by facsimile transmission or, if
mailed, four (4) days after the date of mailing, as follows:

 

(a) If
the Company, to:

 

NewPage Corporation

Courthouse Plaza N.E.

Dayton, Ohio

 

Attention: 
Board of Directors

 

 

With copies to:

 

Cerberus Capital Management, L.P.

299 Park Avenue

New York, New York 10171

 

	
  Attention:

  	
  Lenard
  Tessler

  
	
  Telephone:

  	
  212-891-2100

  
	
  Fax:

  	
  (212)
  755-3009

  

 

And

 

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, NY  10022

 

	
  Attention:

  	
  Stuart D.
  Freedman, Esq.

  
	
  Telephone:

  	
  212-756-2000

  
	
  Fax:

  	
  (212) 593-5955

  

 

(b)                   If
the Executive, to the Executive’s home address reflected in the Company’s
records.

 

15.           Entire Agreement: 
This Agreement contains the entire agreement between the
Company and the Executive with respect to the subject matter hereof and
supersedes all prior agreements, written or oral, with respect thereto,
including, but not limited to, the Term Sheet between Maple Timber Acquisition
LLC and Executive, dated as of March 29, 2005.

 

16.           Waiver and Amendments: 
This Agreement may be amended, modified, superseded,
canceled, renewed or extended, and the terms and conditions hereof may be
waived, only by a written instrument signed by the Company and the Executive
or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any right, power or privilege
hereunder, nor any single or partial exercise of any right, power or privilege
hereunder, preclude any other or further exercise thereof or the exercise of
any other right, power or privilege hereunder. 
This Agreement and all compensation derived therefrom are intended not
to constitute compensation deferred under a nonqualified deferred compensation
plan as contemplated in Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”).  Accordingly,
notwithstanding any other provision of this Agreement, the provisions of this
Agreement will be interpreted consistent with the preceding sentence, and the
Agreement may be modified to the minimum extent necessary, as agreed upon by
the Company and the Executive, to comply with the requirements of Section 409A
of the Code and the regulations promulgated thereunder.

 

17.           Governing Law and Venue.

 

I.          This Agreement shall be governed and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be performed entirely within such state, without regard
to conflicts of laws principles.

 

 

II.        The
parties agree irrevocably to submit to the exclusive jurisdiction of the
federal courts or, if no federal jurisdiction exists, the state courts, located
in Dayton, Ohio, for the purposes of any suit, action or other proceeding
brought by any party arising out of any breach of any of the provisions of this
Agreement and hereby waive, and agree not to assert by way of motion, as a
defense or otherwise, in any such suit, action, or proceeding, any claim that
it is not personally subject to the jurisdiction of the above-named courts,
that the suit, action or proceeding is brought in an inconvenient forum, that
the venue of the suit, action or proceeding is improper, or that the provisions
of this Agreement may not be enforced in or by such courts.  In addition, the parties agree to the waiver
of a jury trial.

 

18.           Assignability:  This
Agreement, and the rights and obligations hereunder, may not be assigned by the
parties without written consent signed by the parties; provided, however, that
the Company may assign its rights and/or obligations described herein to the
successor of the business of the Company.

 

19.           Counterparts:  This
Agreement may be executed in counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same instrument.

 

20.           Headings:  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning of terms contained herein.

 

21.           Severability:  If
any term, provision, covenant or restriction of this Agreement, or any part
thereof, is held by a court of competent jurisdiction of any foreign, federal,
state, county or local government or any other governmental, regulatory or
administrative agency or authority to be invalid, void, unenforceable or
against public policy for any reason, 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 or impaired or invalidated.

 

22.           Judicial Modification.  If any court determines that any of the
covenants in Sections 6, 7 or 8, or any part of any of them, is invalid or
unenforceable, the remainder of such covenants and parts thereof shall not
thereby be affected and shall be given full effect, without regard to the
invalid portion.  If any court determines
that any of such covenants, or any part thereof, is invalid or unenforceable
because of the geographic or temporal scope of such provision, such

 

 

court shall reduce such scope to the minimum
extent necessary to make such covenants valid and enforceable.

 

23.           Tax Withholding.  The Company or other payor is authorized to
withhold from any benefit provided or payment due hereunder, the amount of
withholding taxes due any federal, state or local authority in respect of such
benefit or payment and to take such other action as may be necessary in the
opinion of the Holding Board to satisfy all obligations for the payment of such
withholding taxes.

 

24.           Termination of Purchase Agreement/Termination of
Company Obligations:  In the
event the Closing Date does not occur and the Purchase Agreement terminates
pursuant to Article XIII thereof, the terms of employment contained herein
shall be null and void or, if the Executive’s employment with MeadWestvaco
Corporation or its subsidiaries terminates prior to the Closing Date, the terms
contained herein shall be null and void unless the Company agrees otherwise, in
its sole discretion.

 

 

Sincerely,

 

 

	
   

  	
  /s/ Linda Sheffield

  	
   

  

 

 

Name: Linda Sheffield

Title: Treasurer

 

 

Please indicate your acceptance of the terms
of this Agreement by your signature below.

 

	
   

  	
  Accepted

  	
    /s/ Charles J. Aardema

  	
   

  
	
   

  	
   

  	
    Name: Charles J. Aardema

  

 

Date: May 2, 2005

 

 

EXHIBIT A

 

FORM EMPLOYMENT
GENERAL RELEASE

 

For good and
valuable consideration, receipt whereof is hereby acknowledged,                             (“Executive”),
individually and on behalf of his respective heirs, executors, administrators,
representatives, agents, attorneys and assigns (the “Executive Releasor”),
hereby irrevocably, fully and unconditionally releases and forever discharges
NewPage Corporation, (the “Company”) and its affiliated companies,
parents, subsidiaries, predecessors, successors, assigns, divisions, related
entities and all of their present employees, officers, directors, trustees,
shareholders, members, partners (as applicable), agents, investors, attorneys
and representatives (the “Company Released Parties”), from any and all manner
of actions and causes of action, suits, debts, dues, accounts, bonds,
covenants, contracts, agreements, judgments, charges, claims, and demands
whatsoever which the Executive Releasor, has, or may hereafter have against the
Company Released Parties or any of them arising out of or by reason of any
cause, matter or thing whatsoever from the beginning of the world to the date
hereof, including without limitation any and all matters relating to employment
with the Company and its subsidiaries or affiliates, and the cessation thereof,
and all matters arising under any federal, state or local statute, rule or
regulation or principle of contract law or common law, including but not
limited to the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621,
et  seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000
et  seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101
et  seq., the Employee Retirement Income Security Act of 1974, 29
U.S.C. § 1001 et  seq., the Fair Labor Standards Act, 29
U.S.C. § 201 et  seq., the Family and Medical Leave Act of
1993, 29 U.S.C. § 2601 et  seq. and applicable labor and
employment laws of the states of New York and Ohio.  Notwithstanding the foregoing, the Executive’s
release described herein shall be subject to the Company’s compliance with its
obligations under Section 10 of the Letter Agreement between the Company
and the Executive, dated as of                   
       , 2005 (the “Letter Agreement) and
nothing contained herein shall release the Company Released Parties from any
obligations under any agreement relating to the grant, holding or disposition
of equity, including, without limitation any equity purchase and/or any
equityholders agreements.

 

In
consideration of the obligations and representations of Executive, the Company
hereby irrevocably, fully and unconditionally releases and forever discharges
the Executive, from any and all manner of actions and causes of action, suits,
debts, dues, accounts, bonds, covenants, contracts, agreements, judgments,
charges, claims, and demands whatsoever which the Company, has, or may
hereafter have against the Executive arising out of or by reason of any cause,
matter or thing whatsoever from the beginning of the world to the date hereof,
including without limitation any and all matters relating to employment with
the Company and its subsidiaries or affiliates, and the cessation thereof,
other than any obligations of the Executive or terms set forth in Sections 6,
7, 8, 9 and 21 of the Letter Agreement, which shall survive, and all matters
arising under any federal, state or local statute, rule or regulation or
principle of contract law or common law. 
Notwithstanding the foregoing, the Company does not waive or release
Executive from any obligations under this General Release or liability to
Company Released Parties for any claims such Company Released Parties may have
against the Executive arising out of the Executive’s gross negligence or
willful misconduct.

 

PLEASE
READ CAREFULLY BEFORE SIGNING.  THIS DOCUMENT

 

 

INCLUDES
A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

Executive
acknowledges that he has been given the opportunity to review and consider this
General Release for twenty-one (21) days from the date he received a copy.  If he elects to sign before the expiration of
the twenty-one (21) days, Executive acknowledges that he will have chosen, of
his own free will without any duress, to waive his right to the full twenty-one
(21) day period.

 

Executive may
revoke this General Release after signing it by giving written notice to                           ,
within seven (7) days after signing it. 
This General Release, provided it is not revoked, will be effective on
the eighth (8th) day after execution.

 

Executive
acknowledges that he has been advised to consult with an attorney prior to
signing this General Release.

 

Executive is
signing this General Release knowingly, voluntarily and with full understanding
of its terms and effects.  Executive is
signing this General Release of his own free will without any duress, being
fully informed and after due deliberation. 
Executive voluntarily accepts the consideration provided to him for the
purpose of making full and final settlement of all claims referred to above.

 

Executive
acknowledges that he has not relied on any representations or statements not
set forth in this General Release. 
Executive will not disclose the contents or substance of this General
Release to any third parties, other than his attorneys, accountants, or as
required by law, and Executive will instruct each of the foregoing not to
disclose the same.

 

This General
Release will be governed by and construed in accordance with the laws of the
State of New York.  If any provision in
this General Release is held invalid or unenforceable for any reason, the
remaining provisions shall be construed as if the invalid or unenforceable
provision had not been included.

 

IN WITNESS WHEREOF, the Parties hereto,
intending to be legally bound hereby, have executed this General Release as of                         .

 

	
  EXECUTIVE

  	
  NEWPAGE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
   

  	
  Title:

  
				

 

18EXHIBIT 10.25

 

May 2, 2005

 

George F. Martin

6 Mulberry Circle

Gladstone, MI 49837

 

RE:  Employment Letter Agreement

 

Dear George:

 

This letter agreement (“Agreement”) is being delivered to you (“Executive”)
in connection with your employment with NewPage Corporation (hereinafter
referred to as the “Company”).  The terms
of your employment are as set forth below, effective upon the Closing Date (as
defined under the Equity and Purchase Agreement (the “Purchase Agreement”) by
and between Escanaba Timber LLC (f/k/a Maple Acquisition LLC) and MeadWestvaco
Corporation dated as of January 14, 2005, as amended) (the “Effective Date”):

 

1.             Position:  Executive
will be employed as Vice President, Coated Operations, of the Company and will
have such authority, responsibilities and duties as are customarily attendant
to that position.  Executive shall also
serve certain of the Company’s designated subsidiaries or affiliates as
determined by the Board of Directors of NewPage Holding Corporation (the “Holding
Board”), for no additional consideration.

 

2.             Location: 
The principal place of the Executive’s employment shall be at the
Company’s headquarters, which shall initially be in Dayton, Ohio.

 

3.             Compensation and Executive Benefits:  During Executive’s employment, Executive
shall receive:

 

(a) Base Salary:  $235,000, payable in accordance with the
payroll practices of the Company.  Each
year, the Holding Board shall review the Executive’s base salary for
increase.  Once increased, base salary
shall not be decreased.

 

(b) Signing Bonus: $162,750,
payable on the Effective Date, $127,751.58 of which the Executive hereby
instructs the Company to pay on his behalf to Maple Timber Acquisition LLC (the
“Parent”) to purchase the interests in the Paper Series and Timber Series of
the Parent on the Effective Date pursuant to the Executive Purchase Agreement,
dated as the Effective Date,

 

 

between the Parent and the Executive (the “Executive
Purchase Agreement”).

 

(c) Annual Bonus.  Executive shall be eligible to participate in
an annual bonus pool for senior executives of the Company as follows:  (i) for the performance period from May 1,
2005 to December 31, 2005, such bonus shall be based upon the provisions
of the current Papers Business Unit Incentive Plan and the Executive’s target
bonus shall be based on 45% of Base Salary, pro rated for the period between May 1,
2005 and December 31, 2005 (it being understood that MeadWestvaco
Corporation is responsible for the bonus for the period between January 1,
2005 and April 30, 2005) (ii) for performance periods after 2005,
such bonus will be based upon the achievement by the Company of consolidated
EBITDA related targets reasonably derived from the annual business plan
presented by management and approved by the Holding Board.  The Executive’s target bonus for achieving
target EBITDA, as approved by the Holding Board, will be 45% of Base Salary and
the Executive will receive a minimum bonus for achieving minimum EBITDA, as
approved by the Holding Board.  Bonuses
will be calculated on a straight-line basis for EBITDA achievements between
targets.  There shall be no cap on the
amount of such performance-based bonuses. 
No bonus will be paid if minimum EBITDA is not achieved.  Each annual bonus shall be paid on or before March 15th
of the year following the tax year in which the relevant services have been
performed.

 

(d) Vacation.  Five (5) weeks of paid annual vacation
time each year (accrued in full on the Effective Date and each anniversary
thereafter).  Executive shall not be
entitled to payment for unused vacation days upon the termination of his
employment except as set forth in Section 10 below.  The carry-over of vacation days shall be in
accordance with Company policy from time to time in effect.

 

(e) Other Benefits.  Executive shall be eligible to participate in
employee benefit plans pursuant to the terms of such plans that are available
to similarly situated executives of the Company.  The Company may at any time or from time to
time amend, modify, suspend or terminate any employee benefit plan, program or
arrangement for any reason in its sole discretion.

 

4.             Reimbursement of Expenses:  The Executive will be reimbursed for all
appropriate business expenses incurred by him in connection with his duties in
accordance with the policies of the Company as in effect from time to time.

 

 

5.             Disclosure:  The
Executive represents and warrants that Executive is not a party to or subject
to any restrictive covenants, legal restrictions or other agreements in favor
of any entity, or person which would in any way preclude, inhibit, impair or
limit the Executive’s ability to perform Executive’s obligations for the
Company, including, but not limited to, non-competition agreements,
non-solicitation agreements or confidentiality agreements.

 

6.             Confidentiality:

 

I.          During
the course of the Executive’s employment by MeadWestvaco Corporation, the
Executive had access to, and during the course of the Executive’s employment
under this Agreement, the Executive will have access
to, certain trade secrets and confidential information relating to the Company
and its affiliates and subsidiaries (the “Protected Parties”) which is not
readily available from sources outside the Company.  The confidential and proprietary information
and, in any material respect, trade secrets of the Protected Parties are among
their most valuable assets, including but not limited to, their customer,
supplier and vendor lists, contract terms, databases, competitive strategies,
computer programs, frameworks, or models, their marketing programs, their
sales, financial, marketing, training and technical information, their product
development (and proprietary product data), business plans and strategies
(including, but not limited to, acquisition and divestiture plans),
environmental matters and other regulatory matters and any other information,
whether communicated orally, electronically, in writing or in other tangible
forms concerning how the Protected Parties create, develop, acquire or maintain
their products and marketing plans, target their potential customers and
operate their other businesses.  The
Protected Parties invested, and continue to invest, considerable amounts of
time and money in their process, technology, know-how, obtaining and developing
the goodwill of their customers, their other external relationships, their data
systems and data bases, and all the information described above (hereinafter
collectively referred to as “Confidential Information”), and any
misappropriation or unauthorized disclosure of Confidential Information in any
form would irreparably harm the Protected Parties.  The Executive acknowledges that such
Confidential Information constitutes valuable,

 

 

highly confidential, special and unique
property of the Protected Parties.  The
Executive shall hold in a fiduciary capacity for the benefit of the Protected
Parties all Confidential Information relating to the Protected Parties and
their businesses, which shall have been obtained by the Executive during the
Executive’s employment by the Company or its subsidiaries and affiliates and
which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this
Agreement).  Except as required by law or
an order of a court or governmental agency with jurisdiction, the Executive
shall not, during the period the Executive is employed by the Company or its
subsidiaries and affiliates or at any time thereafter, disclose any
Confidential Information, directly or indirectly, to any person or entity for
any reason or purpose whatsoever, nor shall the Executive use it in any way,
except in the course of the Executive’s employment with, and for the benefit
of, the Protected Parties or to enforce any rights or defend any claims
hereunder or under any other agreement to which the Executive is a party,
provided that such disclosure is relevant to the enforcement of such rights or
defense of such claims and is only disclosed in the formal proceedings related
thereto.  The Executive shall take all
reasonable steps to safeguard the Confidential Information and to protect it
against disclosure, misuse, espionage, loss and theft.  The Executive understands and agrees that the
Executive shall acquire no rights to any such Confidential Information.

 

II.        All
files, records, documents, drawings, specifications, data, computer programs,
evaluation mechanisms and analytics and similar items relating thereto or to
the Business (for the purposes of this Agreement, “Business” shall be as
defined in Section 8 hereof), as well as all customer lists, specific
customer information, compilations of product research and marketing techniques
of the Company and its subsidiaries and affiliates, whether prepared by the
Executive or otherwise coming into the Executive’s possession, shall remain the
exclusive property of the Company and its subsidiaries and affiliates, and the
Executive shall not remove any such items from the premises of the Company and
its subsidiaries and affiliates, except in furtherance of the Executive’s
duties under this Agreement.

 

 

III.       It
is understood that while employed by the Company the Executive will promptly
disclose to it, and assign to it the Executive’s interest in any invention,
improvement or discovery made or conceived by the Executive, either alone or
jointly with others, which arises out of the Executive’s employment.  At the Company’s request and expense, the
Executive will assist the Company and its subsidiaries and affiliates during
the period of the Executive’s employment under this Agreement and thereafter in
connection with any controversy or legal proceeding relating to such invention,
improvement or discovery and in obtaining domestic and foreign patent or other
protection covering the same.

 

IV.       As
requested by the Company and at the Company’s expense, from time to time and
upon the termination of the Executive’s employment for any reason, the
Executive will promptly deliver to the Company and its subsidiaries and
affiliates, as applicable, all copies and embodiments, in whatever form, of all
Confidential Information in the Executive’s possession or within his control
(including, but not limited to, memoranda, records, notes, plans, photographs,
manuals, notebooks, documentation, program listings, flow charts, magnetic
media, disks, diskettes, tapes and all other materials containing any
Confidential Information) irrespective of the location or form of such
material.  If requested by the Company,
the Executive will provide the Company with written confirmation that all such
materials have been delivered to the Company as provided herein.

 

7.             Non-Solicitation or Hire.  During the Executive’s employment and for a
period of one (1) year following the termination of the Executive’s
employment for any reason, the Executive shall not directly or indirectly
solicit or attempt to solicit or induce, directly or indirectly, (a) any
party who is a customer of the Company or its subsidiaries or affiliates,
during period for the purpose of marketing, selling or providing to any such
party any services or products offered by or available from the Company or its
subsidiaries or affiliates and relating to the Business (as defined in Section 8)
or (b) any employee of the Company or any of its subsidiaries or
affiliates or any person who was an employee of the Company or any of its
subsidiaries or affiliates during the twelve (12) month period immediately
prior to the date of Executive’s termination of employment to terminate such
employee’s employment relationship with the Protected Parties in order, in
either case, to enter into a

 

 

similar relationship with the Executive, or
any other person or any entity in competition with the Business of the Company
or any of its subsidiaries or affiliates.

 

8.             Non-Competition.  During the Executive’s employment and for a period
of one (1) year following the termination of the Executive’s employment
for any reason, Executive shall not, whether individually, as a director,
manager, member, stockholder, partner, owner, employee, consultant or agent of
any business, or in any other capacity, other than on behalf of the Company or
a subsidiary or affiliate, organize, establish, own, operate, manage, control,
engage in, participate in, invest in, permit his name to be used by, act as a
consultant or advisor to, render services for (alone or in association with any
person, firm, corporation or business organization), or otherwise assist any
person or entity that engages in or owns, invests in, operates, manages or
controls any venture or enterprise, which engages or proposes to engage in the
coated paper and/or carbonless paper business anywhere in the world (the “Business”).  Notwithstanding the foregoing, nothing in
this Agreement shall prevent the Executive from owning for passive investment
purposes not intended to circumvent this Agreement, less than five percent (5%)
of the publicly traded common equity securities of any company engaged in the
Business (so long as the Executive has no power to manage, operate, advise,
consult with or control the competing enterprise and no power, alone or in
conjunction with other affiliated parties, to select a director, manager,
general partner, or similar governing official of the competing enterprise
other than in connection with the normal and customary voting powers afforded
the Executive in connection with any permissible equity ownership).

 

9.             Remedies; Specific Performance.  The Parties acknowledge and agree
that the Executive’s breach or threatened breach of any of the restrictions set
forth in Sections 6, 7 and 8 will result in irreparable and continuing damage
to the Protected Parties for which there may be no adequate remedy at law and
that the Protected Parties shall be entitled to equitable relief, including
specific performance and injunctive relief as remedies for any such breach or
threatened or attempted breach.  The
Executive hereby consents to the grant of an injunction (temporary or
otherwise) against the Executive or the entry of any other court order against
the Executive prohibiting and enjoining him from violating, or directing him to
comply with any provision of Sections 6, 7 or 8.  The Executive also agrees that such remedies
shall be in addition to any and all remedies, including damages, available to
the Protected Parties against him for such breaches or threatened or attempted
breaches.  In addition, without

 

 

limiting the Protected Parties’ remedies for
any breach of any restriction on the Executive set forth in Sections 6, 7, or
8, except as required by law, the Executive shall not be entitled to any
payments set forth in Section 10 hereof if the Executive breaches the
covenants applicable to the Executive contained in Sections 6, 7 or 8.

 

10.           Termination:  The Company may terminate Executive’s
employment hereunder for any reason and at any time without prior notice.  Upon a termination of the Executive’s
employment without Cause (as defined below) or by Executive with Good Reason
(as defined below), and subject to the Executive’s compliance with Sections 6,
7 and 8 of this Agreement and subject to the execution by the Executive,
without revocation, of a valid employment release substantially in the form
attached hereto as Exhibit A, the Executive shall receive from the Company
(which shall be in lieu of any payments or benefits to which the Executive may
be entitled under any Company severance plan (the “Severance Plan)):

 

I.          any
unpaid Base Salary through the date of termination;

 

II.        a
pro rata bonus for the year of termination, calculated as the product of (x) “Severance
Bonus Amount” (as defined below) and (y) a fraction, the numerator of which is
the number of days in the current fiscal year through the date of termination
and the denominator of which is 365, payable at the time that bonuses are paid
after the Executive’s termination date, to similarly situated executives;

 

III.       any
accrued but unused vacation pay;

 

IV.       an
amount equal to two (2) times Base Salary minus an amount equal to the
original purchase price paid for the Paper Class A Common Percentage
Interests pursuant to the terms of the Executive Purchase Agreement between the
Executive and the Company; provided that if such termination without Cause or
with Good Reason is within 12 months following the acquisition by NewPage Holding
Corporation or its subsidiaries of the stock or assets of a business enterprise
of at least substantially the same revenues and total assets as NewPage Holding
Corporation (“NewPage”) and its subsidiaries on a consolidated basis (for the
avoidance of doubt, such a business enterprise shall include one of the four (4) leading
coated paper companies other than the Company), the amount shall be equal to three (3) times Base Salary minus
an amount equal to the original

 

 

purchase price paid for the Paper Class A Common Percentage
Interests pursuant to the terms of the Executive Purchase Agreement between the
Executive and the Company; provided, further that, if at the time of a
termination of employment without Cause or with Good Reason, the aggregate “fair
market value” of the Paper Class A Common Percentage Interests being repurchased
from the Executive pursuant to the Executive Purchase Agreement is less than
the aggregate original purchase price paid by the Executive for such Paper Class A
Common Percentage Interests, the Executive shall receive an additional cash
payment equal to the difference between (i) the aggregate original
purchase price paid for such Paper Class A Common Percentage Interests by
the Executive and (ii) the aggregate “fair market value” of such Paper Class A
Common Percentage Interests at the time of the termination without Cause or
with Good Reason;

 

V.        continued
receipt of welfare benefits for twenty-four (24) months after the Executive’s
date of termination; provided, however, if the Executive becomes reemployed
with another employer and is eligible to receive welfare benefits under another
employer-provided plan, the welfare benefits described in this Section 10(V).
shall be secondary to those provided under such other plan;

 

VI.       outplacement
services substantially similar to those provided pursuant to the terms of the
Severance Plan; and

 

VII.      accrued
benefits pursuant to the terms and conditions of the Company’s benefit plans
and programs.

 

Upon a termination without Cause or with Good
Reason, the payment in I above shall be made within 10 business days after the
date of termination (unless an earlier date is prescribed by law) and the
payments in II-IV shall be paid in a lump sum after the later of (i) the
expiration of the applicable revocation period contained in the employment
release and (ii) with respect to bonus, the annual bonus payment date for
similarly situated employees after the Executive’s termination of employment.

 

If the Executive’s employment terminates as a
result of the Executive’s death or if the Company terminated the Executive’s
employment on account of the Executive’s Disability (as defined below), the
Executive, or the Executive’s legal representatives (as appropriate), shall be
entitled to receive items I, II, III, and VII.

 

 

listed above and if the Executive’s
employment terminates with Cause or as a result of a resignation by the
Executive without Good Reason, the Executive shall only be entitled to receive
items I, III and VII. The payment set forth in I and III shall be paid in
a lump sum within 10 business days after termination (unless an earlier date is
prescribed by law) and with respect to II at such time that annual bonuses are
paid after the Executive’s termination date to similarly situated employees.

 

The obligations of the Company to Executive
which arise upon the termination of his employment pursuant to this Section 10
shall not be subject to mitigation or offset.

 

For the purposes of this Agreement, “Cause”
means (i) commission of a felony by the Executive, (ii) acts of
dishonesty by the Executive resulting or intending to result in personal gain
or enrichment at the expense of the Company or its subsidiaries or affiliates, (iii) the
Executive’s material breach of any provision of any policy of the Company, NewPage Holding
or Maple Timber Acquisition LLC (Paper Series or Timber Series), (iv) the
Executive’s failure to follow the lawful written directions of Executive’s
supervisor, the Chief Executive Officer and President of the Company or NewPage Holding,
or the Holding Board, the Board of Directors of the Company or the Board of
Directors of Maple Timber Acquisition LLC (Paper Series or Timber Series),
(v) conduct by the Executive in connection with Executive’s duties that is
fraudulent, willful and materially injurious to the Company or its subsidiaries
or affiliates or (vi) conduct by the Executive in connection with
Executive’s duties that is unlawful and materially injurious to the Company or
its subsidiaries or affiliates; provided that the Executive shall have ten (10) business
days following the Company’s written notice of its intention to terminate the
Executive’s employment to cure such Cause, if curable, as determined by the
Holding Board, in its sole discretion.

 

For the purposes of this Agreement, “Good
Reason” means, without the consent of the Executive, (i) a reduction by
the Company in the Executive’s Base Salary or in the percentage of Base Salary
on which the Executive’s bonus is based; (ii) a material reduction in the
aggregate benefits provided to the Executive, except for any across-the-board
reduction(s) affecting all similarly situated Executives on substantially the
same proportional basis; (iii) relocation of the Executive outside of
fifty (50) miles from his office location set forth in Section 2 hereof,
or (iv) any failure by the Company to obtain the express written
assumption of the Company’s obligations to the Executive as described herein by
any successor or assign of the Company.

 

 

For the purposes of this Agreement, “Disability”
means the determination by the Company, in accordance with applicable law,
based on information provided by a physician selected by the Company or its
insurers and reasonably acceptable to the Executive that, as a result of a
physical or mental injury or illness, the Executive has been unable to perform
the essential functions of the Executive’s job with or without reasonable
accommodation for a period of (i) ninety (90) consecutive days or (ii) one-hundred
eighty (180) days in any one-year period.

 

For the purposes of this Agreement, “Severance
Bonus Amount” shall mean, in the event of a termination (i) prior to June 1st
of any calendar year, the annual performance-based bonus paid to the Executive
for the calendar year prior to the termination or (ii) on or after June 1st
of any calendar year, the annual performance-based bonus that would have been
payable to the Executive for the calendar year of the termination (determined
as of the end of such calendar year and payable when the Company pays its
annual performance-based bonuses to similarly situated employees).

 

11.           Removal from any Boards and Positions.  If the Executive’s employment terminates for
any reason, he shall be deemed to resign (i) if a member, from the Holding
Board, the Board of Directors of the Paper Series and the Timber Series of
Maple Timber Acquisition LLC or any other board of directors of any subsidiary
or affiliate of the Company or any other board to which he has been appointed
or nominated by or on behalf of the Company and (ii) from any position
with the Company or any subsidiary or affiliate of the Company, including, but
not limited to, as an officer of the Company or any of its subsidiaries or
affiliates

 

12.           Nondisparagement:  Except as required by law or order of a court
or governmental agency having jurisdiction or to report, in good faith, an
impropriety or financial wrongdoing affecting the business of the Company,
Executive agrees that Executive will not at any time publish or communicate to
any person or entity any Disparaging (as defined below) remarks, comments or
statements concerning the Company, Cerberus Capital Management, L.P., their
parents, subsidiaries and affiliates, and their respective present and former
members, partners, directors, officers, shareholders, employees, agents,
attorneys, successors and assigns.  “Disparaging”
remarks, comments or statements are those that impugn the character, honesty,
integrity or morality or business acumen or abilities in connection with any
aspect of the operation of business of the individual or entity being
disparaged.

 

 

13.           Property: 
The Executive acknowledges that all originals and copies of materials,
records and documents generated by Executive or coming into Executive’s
possession during Executive’s employment by the Company or its subsidiaries and
affiliates are the sole property of the Company and its subsidiaries and
affiliates (“Company Property”).  During
the Executive’s employment and at all times thereafter, the Executive shall not
remove, or cause to be removed, from the premises of the Company or its
subsidiaries or affiliates, copies of any record, file, memorandum, document,
computer related information or equipment, or any other item relating to the
business of the Company or its subsidiaries or affiliates, except in
furtherance of Executive’s duties under the Agreement.  When the Executive’s employment terminates,
or upon request of the Company at any time, the Executive shall promptly
deliver to the Company all copies of Company Property in Executive’s possession
or control.

 

14.           Notices: 
Any notice or other communication required or which may be given
hereunder shall be in writing and shall be delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage prepaid, and shall be deemed given when so delivered
personally, telegraphed, telexed, or sent by facsimile transmission or, if
mailed, four (4) days after the date of mailing, as follows:

 

(a) If
the Company, to:

 

NewPage Corporation

Courthouse Plaza N.E.

Dayton, Ohio

 

Attention: 
Board of Directors

 

 

With copies to:

 

Cerberus Capital Management, L.P.

299 Park Avenue

New York, New York 10171

 

	
  Attention:

  	
  Lenard
  Tessler

  
	
  Telephone:

  	
  212-891-2100

  
	
  Fax:

  	
  (212)
  755-3009

  

 

And

 

 

Schulte Roth & Zabel LLP

919 Third Avenue

New York, NY  10022

 

	
  Attention:

  	
  Stuart D.
  Freedman, Esq.

  
	
  Telephone:

  	
  212-756-2000

  
	
  Fax:

  	
  (212) 593-5955

  

 

(b)                   If
the Executive, to the Executive’s home address reflected in the Company’s
records.

 

15.           Entire Agreement: 
This Agreement contains the entire agreement between the
Company and the Executive with respect to the subject matter hereof and
supersedes all prior agreements, written or oral, with respect thereto,
including, but not limited to, the Term Sheet between Maple Timber Acquisition
LLC and Executive, dated as of April 16, 2005.

 

16.           Waiver and Amendments: 
This Agreement may be amended, modified, superseded,
canceled, renewed or extended, and the terms and conditions hereof may be
waived, only by a written instrument signed by the Company and the Executive
or, in the case of a waiver, by the party waiving compliance.  No delay on the part of any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any right, power or privilege
hereunder, nor any single or partial exercise of any right, power or privilege
hereunder, preclude any other or further exercise thereof or the exercise of
any other right, power or privilege hereunder. 
This Agreement and all compensation derived therefrom are intended not
to constitute compensation deferred under a nonqualified deferred compensation
plan as contemplated in Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”).  Accordingly,
notwithstanding any other provision of this Agreement, the provisions of this
Agreement will be interpreted consistent with the preceding sentence, and the
Agreement may be modified to the minimum extent necessary, as agreed upon by
the Company and the Executive, to comply with the requirements of Section 409A
of the Code and the regulations promulgated thereunder.

 

17.           Governing Law and Venue.

 

I.          This Agreement shall be governed and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be performed entirely within such state, without regard
to conflicts of laws principles.

 

 

II.        The
parties agree irrevocably to submit to the exclusive jurisdiction of the
federal courts or, if no federal jurisdiction exists, the state courts, located
in Dayton, Ohio, for the purposes of any suit, action or other proceeding
brought by any party arising out of any breach of any of the provisions of this
Agreement and hereby waive, and agree not to assert by way of motion, as a
defense or otherwise, in any such suit, action, or proceeding, any claim that
it is not personally subject to the jurisdiction of the above-named courts,
that the suit, action or proceeding is brought in an inconvenient forum, that
the venue of the suit, action or proceeding is improper, or that the provisions
of this Agreement may not be enforced in or by such courts.  In addition, the parties agree to the waiver
of a jury trial.

 

18.           Assignability:  This
Agreement, and the rights and obligations hereunder, may not be assigned by the
parties without written consent signed by the parties; provided, however, that
the Company may assign its rights and/or obligations described herein to the
successor of the business of the Company.

 

19.           Counterparts:  This
Agreement may be executed in counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same instrument.

 

20.           Headings:  The
headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning of terms contained herein.

 

21.           Severability:  If
any term, provision, covenant or restriction of this Agreement, or any part
thereof, is held by a court of competent jurisdiction of any foreign, federal,
state, county or local government or any other governmental, regulatory or
administrative agency or authority to be invalid, void, unenforceable or
against public policy for any reason, 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 or impaired or invalidated.

 

22.           Judicial Modification.  If any court determines that any of the
covenants in Sections 6, 7 or 8, or any part of any of them, is invalid or
unenforceable, the remainder of such covenants and parts thereof shall not
thereby be affected and shall be given full effect, without regard to the
invalid portion.  If any court determines
that any of such covenants, or any part thereof, is invalid or unenforceable
because of the geographic or temporal scope of such provision, such

 

 

court shall reduce such scope to the minimum
extent necessary to make such covenants valid and enforceable.

 

23.           Tax Withholding.  The Company or other payor is authorized to
withhold from any benefit provided or payment due hereunder, the amount of
withholding taxes due any federal, state or local authority in respect of such
benefit or payment and to take such other action as may be necessary in the
opinion of the Holding Board to satisfy all obligations for the payment of such
withholding taxes.

 

24.           Termination of Purchase Agreement/Termination of
Company Obligations:  In the
event the Closing Date does not occur and the Purchase Agreement terminates
pursuant to Article XIII thereof, the terms of employment contained herein
shall be null and void or, if the Executive’s employment with MeadWestvaco
Corporation or its subsidiaries terminates prior to the Closing Date, the terms
contained herein shall be null and void unless the Company agrees otherwise, in
its sole discretion.

 

 

Sincerely,

 

 

	
   

  	
  /s/ Linda Sheffield

  	
   

  

 

 

Name: Linda Sheffield

Title: Treasurer

 

 

Please indicate your acceptance of the terms
of this Agreement by your signature below.

 

	
   

  	
  Accepted

  	
    /s/ George F. Martin

  	
   

  
	
   

  	
   

  	
    Name: George F. Martin

  

 

Date: May 2, 2005

 

 

EXHIBIT A

 

FORM EMPLOYMENT
GENERAL RELEASE

 

For good and
valuable consideration, receipt whereof is hereby acknowledged,                          (“Executive”),
individually and on behalf of his respective heirs, executors, administrators,
representatives, agents, attorneys and assigns (the “Executive Releasor”),
hereby irrevocably, fully and unconditionally releases and forever discharges
NewPage Corporation, (the “Company”) and its affiliated companies,
parents, subsidiaries, predecessors, successors, assigns, divisions, related
entities and all of their present employees, officers, directors, trustees,
shareholders, members, partners (as applicable), agents, investors, attorneys
and representatives (the “Company Released Parties”), from any and all manner
of actions and causes of action, suits, debts, dues, accounts, bonds,
covenants, contracts, agreements, judgments, charges, claims, and demands
whatsoever which the Executive Releasor, has, or may hereafter have against the
Company Released Parties or any of them arising out of or by reason of any
cause, matter or thing whatsoever from the beginning of the world to the date
hereof, including without limitation any and all matters relating to employment
with the Company and its subsidiaries or affiliates, and the cessation thereof,
and all matters arising under any federal, state or local statute, rule or
regulation or principle of contract law or common law, including but not
limited to the Age Discrimination in Employment Act of 1967, 29 U.S.C. § 621,
et  seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000
et  seq., the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101
et  seq., the Employee Retirement Income Security Act of 1974, 29
U.S.C. § 1001 et  seq., the Fair Labor Standards Act, 29
U.S.C. § 201 et  seq., the Family and Medical Leave Act of
1993, 29 U.S.C. § 2601 et  seq. and applicable labor and
employment laws of the states of New York and Ohio.  Notwithstanding the foregoing, the Executive’s
release described herein shall be subject to the Company’s compliance with its obligations
under Section 10 of the Letter Agreement between the Company and the
Executive, dated as of                 
    , 2005 (the “Letter Agreement) and nothing contained
herein shall release the Company Released Parties from any obligations under any
agreement relating to the grant, holding or disposition of equity, including,
without limitation any equity purchase and/or any equityholders agreements.

 

In
consideration of the obligations and representations of Executive, the Company
hereby irrevocably, fully and unconditionally releases and forever discharges
the Executive, from any and all manner of actions and causes of action, suits,
debts, dues, accounts, bonds, covenants, contracts, agreements, judgments,
charges, claims, and demands whatsoever which the Company, has, or may
hereafter have against the Executive arising out of or by reason of any cause,
matter or thing whatsoever from the beginning of the world to the date hereof,
including without limitation any and all matters relating to employment with
the Company and its subsidiaries or affiliates, and the cessation thereof,
other than any obligations of the Executive or terms set forth in Sections 6,
7, 8, 9 and 21 of the Letter Agreement, which shall survive, and all matters
arising under any federal, state or local statute, rule or regulation or
principle of contract law or common law. 
Notwithstanding the foregoing, the Company does not waive or release
Executive from any obligations under this General Release or liability to
Company Released Parties for any claims such Company Released Parties may have
against the Executive arising out of the Executive’s gross negligence or
willful misconduct.

 

PLEASE
READ CAREFULLY BEFORE SIGNING.  THIS
DOCUMENT

 

 

INCLUDES
A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

 

Executive
acknowledges that he has been given the opportunity to review and consider this
General Release for twenty-one (21) days from the date he received a copy.  If he elects to sign before the expiration of
the twenty-one (21) days, Executive acknowledges that he will have chosen, of
his own free will without any duress, to waive his right to the full twenty-one
(21) day period.

 

Executive may
revoke this General Release after signing it by giving written notice to                              ,
within seven (7) days after signing it. 
This General Release, provided it is not revoked, will be effective on
the eighth (8th) day after execution.

 

Executive
acknowledges that he has been advised to consult with an attorney prior to
signing this General Release.

 

Executive is
signing this General Release knowingly, voluntarily and with full understanding
of its terms and effects.  Executive is
signing this General Release of his own free will without any duress, being
fully informed and after due deliberation. 
Executive voluntarily accepts the consideration provided to him for the
purpose of making full and final settlement of all claims referred to above.

 

Executive
acknowledges that he has not relied on any representations or statements not
set forth in this General Release. 
Executive will not disclose the contents or substance of this General
Release to any third parties, other than his attorneys, accountants, or as
required by law, and Executive will instruct each of the foregoing not to disclose
the same.

 

This General
Release will be governed by and construed in accordance with the laws of the
State of New York.  If any provision in
this General Release is held invalid or unenforceable for any reason, the
remaining provisions shall be construed as if the invalid or unenforceable
provision had not been included.

 

IN WITNESS WHEREOF, the Parties hereto,
intending to be legally bound hereby, have executed this General Release as of                        .

 

	
  EXECUTIVE

  	
  NEWPAGE CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Name:

  
	
   

  	
  Title:

  
				

 

18

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