Exhibit 10.3
GUARANTEE AND COLLATERAL AGREEMENT
Dated and effective as of August 1, 2006,
among
VERSO PAPER FINANCE HOLDINGS LLC
VERSO PAPER HOLDINGS LLC
as Borrower
each Subsidiary of the Borrower
identified herein,
and
CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Administrative Agent
TABLE OF CONTENTS
i
Page
ARTICLE I
DEFINITIONS
Section 1.01. Credit Agreement
1
Section 1.02. Other Defined Terms
1
ARTICLE II
GUARANTEE
Section 2.01. Guarantee
5
Section 2.02. Guarantee of Payment
6
Section 2.03. No Limitations, Etc.
6
Section 2.04. Reinstatement
7
Section 2.05. Agreement To Pay; Contribution; Subrogation
7
Section 2.06. Information
8
Section 2.07. Maximum Liability
8
Section 2.08. Payment Free and Clear of Taxes
8
ARTICLE III
PLEDGE OF SECURITIES
Section 3.01. Pledge
9
Section 3.02. Delivery of the Pledged Collateral
9
Section 3.03. Representations, Warranties and Covenants
10
Section 3.04. Registration in Nominee Name; Denominations
12
Section 3.05. Voting Rights; Dividends and Interest, Etc.
12
ARTICLE IV
SECURITY INTERESTS IN OTHER PERSONAL PROPERTY
Section 4.01. Security Interest
14
Section 4.02. Representations and Warranties
17
Section 4.03. Covenants
19
Section 4.04. Other Actions
21
Section 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral
23
ARTICLE V
REMEDIES
Section 5.01. Remedies Upon Default
24
Section 5.02. Application of Proceeds
26
TABLE OF CONTENTS
i
Page
ARTICLE I
DEFINITIONS
Section 1.01. Credit Agreement
1
Section 1.02. Other Defined Terms
1
ARTICLE II
GUARANTEE
Section 2.01. Guarantee
5
Section 2.02. Guarantee of Payment
6
Section 2.03. No Limitations, Etc.
6
Section 2.04. Reinstatement
7
Section 2.0