Exhibit 10.1

EXECUTION COPY

SECOND AMENDMENT TO CREDIT AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of
February 4, 2011 to the Credit Agreement referenced below is by and among
(i) Potlatch Corporation, a Delaware corporation and a REIT (“Potlatch” or the
“Company”), (ii) Potlatch Forest Holdings, Inc., a Delaware corporation
(“Potlatch Forest”), (iii) Potlatch Land & Lumber, LLC, a Delaware limited
liability company and a taxable REIT subsidiary of Potlatch (“Potlatch Land &
Lumber”) (collectively, the “Borrowers”), (iv) certain Material Subsidiaries of
the Borrowers from time to time party hereto as guarantors (the “Guarantors”),
(v) each lender from time to time party hereto, and (vii) Bank of America, N.A.,
as Administrative Agent, Swing Line Lender and an L/C Issuer.

W I T N E S S E T H

WHEREAS, a revolving credit facility has been established in favor of the
Borrowers pursuant to the terms of that Credit Agreement dated as of December 8,
2008 (as amended, restated, modified or supplemented from time to time, the
“Credit Agreement”) among the Borrowers, the Guarantors, the Lenders identified
therein (the “Lenders”) and the Administrative Agent;

WHEREAS, the Borrowers have requested that the Lenders amend the Credit
Agreement to modify certain provisions contained therein; and

WHEREAS, the Required Lenders have agreed to amend the Credit Agreement on the
terms and subject to the conditions set forth herein.

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

1. Defined Terms. Capitalized terms used herein but not otherwise defined herein
shall have the meanings provided to such terms in the Credit Agreement.

2. Amendments to Credit Agreement.

(a) Section 1.01 of the Credit Agreement is hereby amended by inserting the
following new definitions in the appropriate alphabetical order:

“Second Amendment” means the Second Amendment to this Agreement, dated as of
February 4, 2011.

“Second Amendment Effective Date” has the meaning specified in the Second
Amendment.

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(b) The definition of “Aggregate Commitments” appearing in Section 1.01 of the
Credit Agreement is hereby amended by deleting the last sentence contained in
such definition and inserting the following new sentence in lieu thereof:

“The Aggregate Commitments as of the Second Amendment Effective Date shall be
ONE HUNDRED FIFTY MILLION DOLLARS ($150,000,000).”

(c) Section 6.10(b) of the Credit Agreement is hereby amended by deleting such
Section in its entirety and inserting the following Section 6.10(b) in lieu
thereof:

“(b) Collateral Coverage Ratio. Subject to Section 6.13(b), at all times, the
Collateral Coverage Ratio shall be greater than 3.00:1.00.”

(d) Section 6.10(c) of the Credit Agreement is hereby amended by deleting such
Section in its entirety and inserting the following Section 6.10(c) in lieu
thereof:

“(c) Funded Indebtedness to Capitalization Ratio. At all times the Funded
Indebtedness to Capitalization Ratio shall be less than or equal to 70.0%.”

(e) Sections 6.13(b) and (c) and Section 6.14(b) are hereby amended by deleting
each reference to “2.25 to 1.0” contained therein and replacing each such
reference with “3.00 to 1.0”.

(f) Section 7.01(d) of the Credit Agreement is hereby amended by deleting such
Section in its entirety and inserting the following Section 7.01(d) in lieu
thereof:

“(d) obligations (contingent or otherwise) of the Borrowers or any Subsidiary
existing or arising under any Swap Contracts, provided that such obligations are
(or were) entered into by such Person in the ordinary course of business for the
purpose of directly mitigating risks associated with purchases, sales,
liabilities, commitments, investments, assets, or property held or reasonably
anticipated by such Person, or changes in the value of securities issued by such
Person, and not for purposes of speculation or taking a “market view;””

(g) Schedule 2.01 to the Credit Agreement is hereby amended by deleting such
Schedule in its entirety and replacing it with Schedule 2.01 as set forth in
Annex A hereto.

3. Conditions Precedent to Effectiveness. This Amendment shall become effective
on the date (the “Second Amendment Effective Date”) when each of the following
conditions shall have been satisfied:

(a) the Borrowers, the Guarantors, the Administrative Agent and the Lenders
constituting the Required Lenders shall have signed a counterpart hereof
(whether the same or different counterparts) and shall have delivered (including
by way of pdf, facsimile or other electronic transmission) the same to the
Administrative Agent;

 

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(b) the Borrowers shall have paid to the Administrative Agent (or one of its
Affiliates, as applicable) (a) a non-refundable cash amendment fee in dollars
for distribution to each Lender which executes and delivers to the
Administrative Agent (or its designee) a counterpart hereof by 12:00 noon
(Pacific time) on February 2, 2011, in an amount equal to 20.0 basis points of
the Commitments of such Lender outstanding on the Second Amendment Effective
Date (after giving effect to this Amendment) and (b) all other fees required to
be paid on or before the Second Amendment Effective Date;

(c) the Borrowers shall have paid all reasonable fees, expenses and
disbursements of counsel to the Administrative Agent to the extent invoiced
prior to or on the Second Amendment Effective Date, plus such additional amounts
of reasonable fees, expenses and disbursements of counsel to the Administrative
Agent as shall constitute its reasonable estimate of reasonable fees, expenses
and disbursements of counsel to the Administrative Agent incurred or to be
incurred by it through the closing proceedings (provided that such estimate
shall not thereafter preclude a final settling of accounts between the Borrowers
and the Administrative Agent);

(d) after giving effect to this Amendment, the representations and warranties of
the Loan Parties contained in Section 4 of this Amendment, Article V of the
Credit Agreement or any other Loan Document, or which are contained in any
document furnished at any time under or in connection herewith or therewith,
shall be true and correct in all material respects (or, if the applicable
representation and warranty is already subject to a materiality standard, shall
be true and correct in all respects) on and as of the Second Amendment Effective
Date, except to the extent that such representations and warranties expressly
refer to an earlier date, in which case they shall be true and correct in all
material respects (or, if the applicable representation and warranty is already
subject to a materiality standard, shall be true and correct in all respects) as
of such date; and

(e) no Default or Event of Default shall exist and be continuing as of the
Second Amendment Effective Date.

4. Representations and Warranties. Each of the Borrowers and the Guarantors
hereby represents and warrants that (a) it has the requisite corporate power and
authority to execute, deliver and perform this Amendment, (b) it is duly
authorized to, and has been authorized by all necessary corporate action to,
execute, deliver and perform this Amendment, (c) no consent, approval,
authorization or order of, or filing, registration or qualification with, any
court or governmental authority or third party is required in connection with
the execution, delivery or performance by it of this Amendment, (d) the
execution, delivery and performance by it of this Amendment do not and will not
conflict with, result in a breach of or constitute a default under the articles
of incorporation, bylaws or other organizational documents of either the
Borrowers or the Guarantors or any of their Subsidiaries or any indenture or
other material agreement or instrument to which any such Person is a party or by
which any of its properties may be bound or the approval of any Governmental
Authority relating to such Person except as could not reasonably be expected to
have a Material Adverse Effect, (e) the representations and warranties contained
in Article V of the Credit Agreement are true and correct in all material
respects on and as of the date hereof as though made on and as of such date
(except for those which expressly relate to an earlier date) and (f) after
giving effect to this Amendment, no Default or Event of Default exists under the
Credit Agreement or the other Loan Documents on and as of the date hereof or
will occur as a result of the transactions contemplated hereby.

 

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5. No Other Changes; Ratification. Except as expressly modified hereby, all of
the terms and provisions of the Credit Agreement (including schedules and
exhibits thereto) and the other Loan Documents shall remain in full force and
effect. The term “this Agreement” or “Credit Agreement” and all similar
references as used in each of the Loan Documents shall hereafter mean the Credit
Agreement as amended by this Amendment. Except as herein specifically agreed,
the Credit Agreement is hereby ratified and confirmed and shall remain in full
force and effect according to its terms.

6. Costs and Expenses. The Borrowers agree to pay all reasonable costs and
expenses of the Administrative Agent in connection with the preparation,
execution and delivery of this Amendment, including without limitation the
reasonable fees and expenses of Moore & Van Allen PLLC.

7. Counterparts; Facsimile; Email. This Amendment may be executed in any number
of counterparts, each of which when so executed and delivered shall be deemed an
original and it shall not be necessary in making proof of this Amendment to
produce or account for more than one such counterpart. Delivery of an executed
counterpart of this Amendment by telecopy or email (in PDF format) by any party
hereto shall be effective as such party’s original executed counterpart.

8. Governing Law. This Amendment shall be deemed to be a contract made under,
and for all purposes shall be construed in accordance with, the laws of the
State of New York.

9. Entirety. This Amendment and the other Loan Documents embody the entire
agreement between the parties and supersede all prior agreements and
understandings, if any, relating to the subject matter hereof. This Amendment
and the other Loan Documents represent the final agreement between the parties
and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties. There are no oral agreements between the
parties.

10. Reaffirmation. Each of the Loan Parties party hereto acknowledges and agrees
that it is a Loan Party under the Credit Agreement, that it is bound by all
terms of the Credit Agreement applicable to a Borrower or a Guarantor, as
applicable, and that it is responsible for the observance and full performance
of its respective obligations under the Credit Agreement and the Loan Documents.
The Loan Parties agree that this Amendment and any documents executed in
connection herewith do not operate to reduce or discharge the Loan Parties’
obligations under the Credit Agreement or the other Loan Documents. Each Loan
Party affirms the liens and security interests created and granted by it in the
Loan Documents (including, but not limited to, the Pledge Agreement and the
Timberland Mortgages) and agrees that this Amendment shall in no manner
adversely affect or impair such liens and security interests.

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
Amendment to be duly executed and delivered as of the date first above written.

 

BORROWERS:     POTLATCH CORPORATION,     a Delaware corporation     By:   /s/
Eric Cremers     Name:   Eric Cremers     Title:   Vice President, Finance & CFO
    POTLATCH FOREST HOLDINGS, INC.,     a Delaware corporation     By:   /s/
Eric Cremers     Name:   Eric Cremers     Title:   Vice President, Finance & CFO
    POTLATCH LAND & LUMBER, LLC,     a Delaware limited liability company    
By:   /s/ Eric Cremers     Name:   Eric Cremers     Title:   Vice President,
Finance & CFO

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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GUARANTORS:     PFHI IDAHO INVESTMENT LLC,     a Delaware limited liability
company     By:   /s/ Eric Cremers     Name:   Eric Cremers     Title:   Vice
President, Finance & CFO     PFPC MCCALL INVESTMENT LLC,     a Delaware limited
liability company     By:   /s/ Eric Cremers     Name:   Eric Cremers     Title:
  Vice President, Finance & CFO     POTLATCH TIMBERLANDS, LLC,     a Delaware
limited liability company     By:   /s/ Eric Cremers     Name:   Eric Cremers  
  Title:   Vice President, Finance & CFO     POTLATCH LAKE STATES TIMBERLANDS,
LLC,     a Delaware limited liability company     By:   /s/ Eric Cremers    
Name:   Eric Cremers     Title:   Vice President, Finance & CFO     POTLATCH
MINNESOTA TIMBERLANDS, LLC,     a Delaware limited liability company     By:  
/s/ Eric Cremers     Name:   Eric Cremers     Title:   Vice President, Finance &
CFO

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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POTLATCH WISCONSIN TIMBERLANDS, LLC, a Delaware limited liability company By:  
/s/ Eric Cremers Name:   Eric Cremers Title:   Vice President, Finance & CFO

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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ADMINISTRATIVE AGENT       AND LENDERS:     BANK OF AMERICA, N.A.,     as
Administrative Agent     By:   /s/ Anthea Del Blanco     Name:   Anthea Del
Blanco     Title:   Vice President

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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BANK OF AMERICA, N.A., as a Lender, an L/C Issuer and Swing Line Lender By:  
/s/ Michael J. Balok Name:   Michael J. Balok Title:   Managing Director

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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U.S. BANK NATIONAL ASSOCIATION By:   /s/ Richard J. Ameny, Jr. Name:   Richard
J. Ameny, Jr. Title:   Vice President

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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WELLS FARGO BANK, N.A. By:   /s/ Deborah S. Watson Name:   Deborah S. Watson
Title:   Managing Director

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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COOPERATIEVE CENTRALE

RAIFFEISEN – BOERENLEENBANK

B.A. “RABOBANK INTERNATIONAL”

NEW YORK BRANCH

By:   /s/ Marina Kremer Name:   Marina Kremer Title:   Executive Director By:  
/s/ Andrew Sherman Name:   Andrew Sherman Title:   Executive Director

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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NORTHWEST FARM CREDIT

SERVICES, PCA

By:   /s/ Kerisa Alvis Name:   Kerisa Alvis Title:   Account Manager/AVP

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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GREENSTONE FARM CREDIT

SERVICES, ACA/FLCA

By:   /s/ Jeff Pavlik Name:   Jeff Pavlik Title:   Vice President

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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STERLING SAVINGS BANK By:   /s/ Colin Duffy Name:   Colin Duffy Title:   Vice
President

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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UNION BANK, N.A. By:  

 

Name:  

 

Title:  

 

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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UNITED FCS, FLCA D/B/A FCS
COMMERCIAL FINANCE GROUP By:   /s/ Lisa Caswell Name:   Lisa Caswell Title:  
Assistant Vice President

 

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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COBANK, ACB

By:

  /s/ Pete Huffine

Name:

  Pete Huffine

Title:

  Vice President

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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AMERICAN AGCREDIT, FLCA

By:

  /s/ Vern Zander

Name:

  Vern Zander

Title:

  Vice President

 

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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CAPITAL FARM CREDIT By:   /s/ Jeff Norte Name:   Jeff Norte Title:   Senior Vice
President

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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BADGERLAND FINANCIAL By:   /s/ Larry Coulthard Name:   Larry Coulthard Title:  

VP Loan Participation

  & Capital Markets

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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FARM CREDIT EAST, ACA successor

by merger to FIRST PIONEER FARM

CREDIT, ACA

By:   /s/ James M. Papai Name:   James M. Papsi Title:   Senior Vice President

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION

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FARMCREDIT SERVICES OF THE

MOUNTAIN PLAINS, FLCA

By:   /s/ Bradley K. Leafgren

Name:   Bradley K. Leafgren Title:   Vice President

 

SECOND AMENDMENT TO CREDIT AGREEMENT

POTLATCH CORPORATION