Exhibit (10)(o)(vi)
 
EXECUTION COPY
 
FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER
 
THIS FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER (this “Agreement”), dated
as of July 16, 2002, is made by and among POTLATCH CORPORATION, a Delaware
corporation (the “Borrower”), the Subsidiary Guarantors party hereto, the
several financial institutions party hereto, and BANK OF AMERICA, N.A., as
administrative agent for the Lenders (in such capacity, the “Agent”). Terms used
but not otherwise defined herein shall have the meanings provided in the Credit
Agreement described below.
 
RECITALS
 
The Borrower, the Subsidiary Guarantors party thereto, the several financial
institutions from time to time party thereto (each a “Lender” and, collectively,
the “Lenders”) and the Agent are parties to a Credit Agreement dated as of June
29, 2001 (as amended by that certain First Amendment to Credit Agreement dated
as of August 27, 2001, that certain Second Amendment to Credit Agreement dated
as of December 19, 2001, that certain Third Amendment to Credit Agreement and
Waiver dated January 24, 2002, that certain consent letter dated March 19, 2002
(the “Cloquet Consent”), and that certain Consent and Modification dated June
12, 2002 relating to the Cloquet Consent, and as further amended, modified,
restated and supplemented from time to time, the “Credit Agreement”).
 
The Credit Parties have requested that the Required Lenders waive the Credit
Parties’ compliance with Section 7.10(c) of the Credit Agreement (captioned
“Fixed Charge Coverage Ratio”) for the fiscal quarter ended June 30, 2002.
 
The Credit Parties have also requested that the Required Lenders agree to
certain amendments to the Credit Agreement and certain other agreements.
 
The Borrower, the Subsidiary Guarantors, the Required Lenders and the Agent have
agreed to deliver and execute this Agreement on the terms and conditions set
forth herein.
 
AGREEMENT
 
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:
 
SECTION 1.    Waiver.
 
(a)  Subject to the provisions hereof, the Required Lenders hereby waive,
effective as of June 30, 2002:
 
(i)  the requirements set forth in Section 7.10(c) of the Credit Agreement
(captioned “Fixed Charge Coverage Ratio”) for the fiscal quarter ended June 30,
2002; and

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(ii)  the requirements set forth in Section 7.1(h)(i) of the Credit Agreement
(captioned “Notices”) with respect to any failure by the Credit Parties to give
written notice to the Agent and the Lenders of a Default or Event of Default
relating to compliance with Section 7.10(c) of the Credit Agreement for the
fiscal quarter ended June 30, 2002.
 
(b)  The foregoing waivers are limited one-time waivers and do not (i) allow the
Credit Parties to be in violation of Section 7.10(c) or Section 7.1(h)(i) of the
Credit Agreement with respect to any other period or any other matter or (ii)
constitute a waiver of any other provisions of the Credit Agreement.
 
(c)  The Credit Parties hereby undertake to comply with Section 7.10(c) of the
Credit Agreement and Section 7.1(h)(i) of the Credit Agreement immediately
hereafter.
 
SECTION 2.    Amendments to Credit Agreement.
 
(a)  Amendment to Section 1.1.     The first sentence of the definition of
“Eligible Reinvestment” in Section 1.1 of the Credit Agreement entitled
“Definitions” is amended by (x) deleting the word “and” at the end of clause (i)
thereof and replacing it with a comma; (y) deleting the period at the end of
clause (ii) thereof and replacing it with “and”; and (z) inserting the following
as a new clause (iii) thereof:
 
“(iii)  any prepayment or other payment to retire any Indebtedness other than
Subordinated Indebtedness, provided that with respect to any such prepayment or
retirement described in this clause (iii), (A) no Default or Event of Default
then exists or would result from such action and (B) after giving effect to such
action the Consolidated Parties are in compliance on a Pro Forma Basis with the
financial covenants set forth in Section 7.10 hereof.”
 
(b)  Amendment to Section 7.10(a).    Subsection (a) of Section 7.10 of the
Credit Agreement entitled “Financial Covenants” is hereby amended and modified
such that the relevant maximum Funded Indebtedness to Capitalization Ratio for
the fiscal quarters ending during the period from (and including) September 30,
2002 and thereafter is as set forth below:
 
Period

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Ratio

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September 30, 2002 and thereafter
  
55.0
%

 
(c)  Amendment to Section 8.5.    Clause (g) of Section 8.5 of the Credit
Agreement entitled “Asset Dispositions” is amended by deleting the phrase
“required under this Credit Agreement.” and replacing it with “required or
permitted under this Credit Agreement.”
 
(d)  Amendment to Section 8.8.    Subsection (a) of Section 8.8 of the Credit
Agreement entitled “Limitation on Actions with Respect to Other Indebtedness” is
amended by deleting clause (iii) thereof in its entirety and replacing it with
the following:

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“(iii)  make (or give any notice with respect thereto) any voluntary or optional
payment or prepayment thereof, or make (or give any notice with respect thereto)
any redemption or acquisition for value or defeasance (including without
limitation, by way of depositing money or securities with the trustee with
respect thereto before due for the purpose of paying when due), refund,
refinance or exchange with respect thereto, other than (with respect to clause
(ii) above and this clause (iii)) with proceeds received by the Borrower in
connection with any Asset Disposition permitted under Section 8.5 and so long as
the Borrower has complied with the requirements of Section 8.5.”
 
SECTION 3.    Additional Agreements.
 
(a)  Terms of Cloquet Consent.    In consideration of the Required Lenders
granting their consent to the actions described in the Cloquet Consent, the
Borrower agreed, among other things, to use its commercially reasonable efforts
to negotiate and enter into an amendment to and/or restatement of the Credit
Agreement that would become effective on or prior to July 31, 2002. The Borrower
and the Required Lenders hereby agree that such deadline is hereby extended to
August 30, 2002.
 
(b)  Release of Cash Collateral for LOC Obligations.    To the extent the
Borrower has previously provided cash collateral in support of issued and
outstanding Letters of Credit to secure the Borrower’s obligations thereunder
and such funds are held by the Agent in the Cash Collateral Account (defined
below) for the benefit of the Lenders, the Agent is hereby authorized and
directed (i) to release such funds from the Cash Collateral Account and return
them to the Borrower and (ii) to take such other actions and to execute and
deliver such other documentation as may be reasonably necessary in connection
therewith. For the purposes of this Section 3(b), “Cash Collateral Account”
shall have the meaning given to such term in the Cash Collateral Account
Agreement made and entered into as of May 10, 2002 (the “Cash Collateral Account
Agreement”) between the Borrower and the Agent. The parties further agree that
concurrently with the effectiveness of this Agreement (x) the Cash Collateral
Account Agreement shall be terminated and (y) the security interest granted by
the Borrower thereunder in the Cash Collateral Account and the amounts therein
shall be terminated and released, and that thereafter the Cash Collateral
Account Agreement shall have no further force and effect.
 
SECTION 4.    Conditions of Effectiveness.    The effectiveness of this
Agreement shall be subject to the satisfaction of each of the following
conditions precedent:
 
(a)  This Agreement.    The Agent shall have received a duly executed
counterpart of this Agreement from (i) the Required Lenders, (ii) Lenders (other
than Defaulting Lenders) holding in the aggregate at least a majority of the
Revolving Commitments (and Participation Interests therein) and (iii) each
Credit Party.
 
(b)  Amendment Fee.    The Agent, on behalf of each Lender who executes this
Agreement, shall have received from the Borrower an amendment fee equal to
0.125% multiplied by the aggregate Commitments of the Consenting Lenders (as
defined below), such fee being for the account of each such Consenting Lender
pro rata according to such Lender’s Commitment; provided, however, that such fee
shall be payable only to those Lenders (the “Consenting Lenders”) that shall
have returned (including via telecopy) executed signature pages to this

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Agreement at or before 1:00 p.m. EDT, July 16, 2002, as directed by the Agent.
 
(c)  Costs, Expenses and Fees.    The Borrower shall have paid any and all
out-of-pocket costs (to the extent invoiced) incurred by the Agent or the
Arranger (including the reasonable fees and expense of the Agent’s legal
counsel) and fees and other amounts payable to the Agent or the Arranger, in
each case in connection with the arrangement, negotiation, execution and
delivery of this Agreement.
 
(d)  Representations and Warranties; No Default.    As of the date hereof, after
giving effect to the Agreement contemplated hereby:
 
(i)  the representations and warranties contained in Section 6 of the Credit
Agreement shall be 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
 
(ii)  no Default or Event of Default shall have occurred and be continuing.
 
SECTION 5.    Representations and Warranties.    Each of the Borrower and the
Subsidiary Guarantors hereby represents and warrants to the Lenders and the
Agent that:
 
(a)  It has taken all necessary action to authorize the execution, delivery and
performance of this Agreement.
 
(b)  This Agreement has been duly executed and delivered by such Person and
constitutes such Person’s legal, valid and binding obligations, enforceable in
accordance with its terms, except as such enforceability may be subject to (i)
bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer,
moratorium or similar laws affecting creditors’ rights generally and (ii)
general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).
 
(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 such
Person of this Agreement.
 
(d)  The representations and warranties of the Credit Parties set forth in
Section 6 of the Credit Agreement are, subject to the limitations set forth
therein, true and correct in all material respects as of the date hereof (except
for those which expressly relate to an earlier date).
 
(e)  Subsequent to the execution and delivery of this Agreement and after giving
effect hereto, no Default or Event of Default exists under the Credit Agreement
or any of the other Credit Documents.
 
(f)  All of the provisions of the Credit Documents, except as amended hereby,
are in full force and effect.
 
SECTION 6.    Miscellaneous.

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(a)  Credit Agreement Otherwise Not Affected.    Except as expressly modified
pursuant hereto, the Credit Agreement and the other Credit Documents shall
remain unchanged and in full force and effect and is hereby ratified and
confirmed in all respects. The Required Lenders’ and the Agent’s execution and
delivery of, or acceptance of, this Agreement and any other documents and
instruments in connection herewith shall not be deemed to create a course of
dealing or otherwise create any express or implied duty by any of them to
provide any other or further amendments, consents or waivers in the future.
 
(b)  Acknowledgment of Subsidiary Guarantors.    The Subsidiary Guarantors
acknowledge and consent to all of the terms and conditions of this Agreement and
agree that this Agreement and any documents executed in connection herewith do
not operate to reduce or discharge the Subsidiary Guarantors’ obligations under
the Credit Agreement or the other Credit Documents.
 
(c)  No Reliance.    The Credit Parties hereby acknowledge and confirm to the
Agent and the Lenders that they are executing this Agreement on the basis of
their own investigation and for its own reasons without reliance upon any
agreement, representation, understanding or communication by or on behalf of any
other Person.
 
(d)  Costs and Expenses.    The Borrower agrees to pay to the Agent on demand
its reasonable out-of-pocket costs and expenses, and the reasonable fees and
disbursements of its counsel, in connection with the negotiation, preparation,
execution and delivery of this Agreement and any other documents to be delivered
in connection herewith.
 
(e)  Binding Effect.    This Agreement shall be binding upon, inure to the
benefit of and be enforceable by the Borrower, each Subsidiary Guarantor, the
Agent and each Lender and their respective successors and assigns.
 
(f)  Governing Law.    THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
 
(g)  Complete Agreement; Agreement.    This Agreement contains the entire and
exclusive agreement of the parties hereto with reference to the matters
discussed herein. This Agreement supersedes all prior commitments, drafts,
communications, discussion and understandings, oral or written, with respect
thereto. This Agreement may not be modified, amended or otherwise altered except
in accordance with the terms of Section 11.6 of the Credit Agreement.
 
(h)  Severability.    Whenever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under all applicable
laws and regulations. If, however, any provision of this Agreement shall be
prohibited by or invalid under any such law or regulation in any jurisdiction,
it shall, as to such jurisdiction, be deemed modified to conform to the minimum
requirements of such law or regulation, or, if for any reason it is not deemed
so modified, it shall be ineffective and invalid only to the extent of such
prohibition or invalidity without affecting the remaining provisions of this
Agreement, or the validity or effectiveness of such provision in any other
jurisdiction.

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(i)  Counterparts/Telecopy.    This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute but one and the same agreement. Delivery of an
executed counterpart by telecopy shall be as effective as an original and shall
constitute a representation that an original will be delivered.
 
(j)  Interpretation.    This Agreement is the result of negotiations between,
and has been reviewed by counsel to, the Agent and the Credit Parties and are
the product of all parties hereto. Accordingly, this Agreement shall not be
construed against any of the Lenders or the Agent merely because of the Agent’s
or any Lender’s involvement in the preparation thereof.
 
(k)  Credit Document.    This Agreement shall constitute a “Credit Document”
under and for all purposes of the Credit Agreement and the other Credit
Documents.
 
 
[signatures to follow]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, as of
the date first above written.
 
BORROWER:
     
POTLATCH CORPORATION
           
By:
                 

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Name:
                 

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Title:
                 

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SUBSIDIARY
GUARANTORS:
 
     
DULUTH & NORTHEASTERN
RAILROAD CO
           
By:
                 

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Name:
                 

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Title:
                 

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THE PRESCOTT AND NORTHWESTERN
RAILROAD COMPANY
           
By:
                 

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Name:
                 

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Title:
                 

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ST. MARIES RIVER
RAILROAD COMPANY
           
By:
                 

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Name:
                 

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Title:
                 

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WARREN AND SALINE RIVER
RAILROAD COMPANY
           
By:
                 

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Name:
                 

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Title:
                 

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AGENT:
     
BANK OF AMERICA, N.A.,
in its capacity as Administrative Agent
           
By:
                 

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Name:
                 

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Title:
                 

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LENDERS:
     
BANK OF AMERICA, N.A.,
individually in its capacity as a Lender
           
By:
                 

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Name:
                 

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Title:
                 

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LENDER
           
By:
                 

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Name:
                 

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Title:
                 

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