Document:

Consent and Modification Dated September 11, 2002

  
 Exhibit (10)(o)(viii) 
  
 CONSENT AND MODIFICATION 
  
 September 11, 2002 

 
 Potlatch Corporation 
 601 West Riverside Avenue, Suite 1100 
 Spokane, WA 99201 
 Attn: Gerald L. Zuehlke, Vice President and Chief Financial Officer 
  

	 	Re:
	 
	Credit Agreement, dated as of June 29, 2001 among Potlatch Corporation, a Delaware corporation, as Borrower, the Subsidiary Guarantors from time to time party
thereto, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent (as amended and modified by the First Amendment thereto dated August 27, 2001, the Second Amendment thereto dated December 19, 2001, the Third
Amendment and Waiver thereto dated January 24, 2002, that certain consent letter dated March 19, 2002 (the “Cloquet Consent”), that certain Consent and Modification dated June 12, 2002 relating to the Cloquet Consent, and that
certain Fourth Amendment to Credit Agreement and Waiver dated as of July 16, 2002 and as further amended, modified, restated and supplemented from time to time, the “Credit Agreement”). 
 

  
 Ladies and Gentlemen: 
  
 Reference is hereby made to the above-referenced Credit Agreement. Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Credit Agreement. 

 
 You have asked Bank of America, as Issuing Lender for all new Letters of Credit under the Credit Agreement, to issue one or
more Letters of Credit under the Credit Agreement in euro (the “Euro Letters of Credit”). Pursuant to the terms of Section 2.2(a) of the Credit Agreement, the Issuing Lender may only issue Letters of Credit denominated in Dollars.
Accordingly, you have requested that, notwithstanding the terms of Section 2.2(a) of the Credit Agreement, the Required Lenders, the Agent and the Issuing Lender consent to the issuance of one or more Euro Letters of Credit under the Credit
Agreement. 
  
 The Required Lenders, the Agent and the Issuing Lender hereby consent to (a) the issuance of one or
more Euro Letters of Credit, subject to the other terms and conditions set forth in the Credit Agreement relating to Letters of Credit, and (b) in order to facilitate the issuance of Euro Letters of Credit, the following modifications to the Credit
Agreement: 
  
 The Dollar Equivalent (as defined below) shall be determined with respect to each Euro
Letter of Credit (i) as of any date on which the Borrower or the Lenders (to the extent such drawing has not been reimbursed directly by the Borrower) are to reimburse the Issuing Lender for a drawing under a Euro Letter of Credit, (ii) as of the
last Business Day of each month, and, during the occurrence and continuation of an Event of Default, such other dates as may be requested in writing by the Required Lenders (but in any event no more than once a week, unless consented to by the Agent
and Issuing Lender), and (iii) as of any other date as the Agent may elect (each such date under clauses (i), (ii) and (iii), a “Determination Date”). For the purposes hereof “Dollar Equivalent” shall mean, as of
any Determination Date, (i) with respect to the amount of any drawing that has been honored by the Issuing Lender under a Euro Letter of Credit, the amount actually paid by the Issuing Lender in Dollars to purchase euro through its foreign exchange
office in order to honor such drawing under a Euro Letter of Credit, and (ii) as to any other amount denominated in euro, the equivalent amount in Dollars as determined by the Agent at such time on the basis of the rate quoted by the Agent as the
spot rate for the purchase by the Agent of euro with Dollars through its foreign exchange trading office at approximately 11:00 a.m. (San Francisco time) on the date one Business Day prior to the date as of which the foreign exchange computation is
made. 

  
 Notwithstanding anything to the contrary contained in the Credit
Agreement, (a) to the extent the Borrower is reimbursing the Issuing Lender directly (as opposed to with the proceeds of a Revolving Loan requested under the Credit Agreement) for a drawing under a Euro Letter of Credit, such reimbursement shall be
made in Dollars, (b) to the extent the Lenders are reimbursing the Issuing Lender for a drawing under a Euro Letter of Credit (i.e., through the funding by the Lenders of (x) a Revolving Loan, the proceeds of which will reimburse the Issuing
Lender for a drawing under a Euro Letter of Credit or (y) Participation Interests in a Euro Letter of Credit), such reimbursement shall be made in Dollars and (c) for all purposes under the Credit Agreement, the Agent shall calculate the Dollar
Equivalent of drawings under, and LOC Obligations outstanding with respect to, Euro Letters of Credit. Without limiting the forgoing, the Dollar Equivalent amount of drawings under, the LOC Obligations outstanding with respect to, Euro Letters of
Credit shall be used for purposes of determining (i) the availability of additional Revolving Loans under Section 2.1(a); (ii) the availability of additional Letters of Credit under Section 2.2(a); (iii) the outstanding LOC Obligations under Section
3.3(b)(i); (iv) the Unused Fee under Section 3.5(a); (v) the Letter of Credit Fee under Section 3.5(b); (vi) the Issuing Lender fees under Section 3.5(c); and (vii) the amount of unreimbursed drawings and outstanding LOC Obligations under Sections
2.2(c), (d) and (e), 3.14, 3.15 and 9.2. 

 
 2 

  
  
 Except to the extent specifically
provided to the contrary in this letter, all terms and conditions of the Credit Agreement shall remain in full force and effect, without modification or limitation. This consent and modification shall not operate as a consent to any other action or
inaction by the Borrower or any of the Guarantors, or as a waiver of any right, power, or remedy of any Lender or the Agent under, or any provision contained in, the Credit Agreement except as specifically provided herein. This consent and may be
executed in two or more counterparts, each of which shall be deemed an original, and all of which taken together shall be deemed to constitute one and the same instrument. This letter shall constitute a Credit Document. 
  
  
 
	  	 	  	 	 Very truly yours,
  
 
	 LENDERS:
 	 	  	 	 BANK OF AMERICA, N.A.,
 in its capacity as Administrative Agent
 
	 
	  	 	  	 	 By:
 	 	 /s/    KEVIN F.
SULLIVAN        
 
Kevin F. Sullivan

Managing Director
 

 
  
 
	  	 	  	 	 BANK OF AMERICA, N.A.,
 individually in its capacity as Issuing Lender and a Lender
 
	 
	  	 	  	 	 By:
 	 	 /s/    KEVIN F.
SULLIVAN        
 
Kevin F. Sullivan

Managing Director
 

 
  
 
	  	 	  	 	 BANK OF NOVA SCOTIA 
 
	 
	  	 	  	 	 By:
 	 	 /s/    PATRICK G. NORRIS
        
 
Patrick G. Norris
 Director
 

 
  
 
	  	 	  	 	 COBANK, ACB 
 
	 
	  	 	  	 	 By:
 	 	 /s/    S. RICHARD DILL
        
 
S. Richard Dill
 Vice President
 rdill@cobank.com
 

 
  
 
	  	 	  	 	 WELLS FARGO BANK, N.A.
 
	 
	  	 	  	 	 By:
 	 	 /s/    STEVEN J. ANDERSON
        
 
Steven J. Anderson
 Senior Vice President
 

 
  
 [Lender Signatures Continue] 
  

 
 3 

 
	 WACHIVIA BANK, NATIONAL ASSOCIATION
(F/K/A WACHOVIA BANK, N.A.)
 
	 
	 By:
 	 	 /s/    SHAWN JANKO        

	  	 	 Shawn Janko
 Vice
President
 

 
  
 
	 NORTHWEST FARM CREDIT SERVICES, PCA
 
	 
	 By:
 	 	   /S/    JIM D.
ALLEN        
 

	  	 	 Jim D. Allen
 Vice
President
 

 
  
 
	 TRANSAMERICA BUSINESS CAPITAL CORPORATION
 
	 
	 By:
 	 	  
 

	  	 	 Name:             
 
	  	 	 Title:         
 

 
  
 
	 CAPITAL FARM CREDIT
 
	 
	 By:
 	 	 /S/    ROBERT P.
ABBOTT        
 

	  	 	 Robert P. Abbott
 VP Commercial
Loans  
 

 
  
 
	 U.S. BANK NATIONAL ASSOCIATION
 
	 
	 By:
 	 	  
 

	  	 	 Name:             
 
	  	 	 Title:
 

 

 
 4 

 The terms of the foregoing Consent and Modification dated as of September 11, 2002 and hereby acknowledged and agreed to:

  
 
	 BORROWER:
 	 	  	 	 POTLATCH CORPORATION
  
 
	 
	  	 	  	 	 By:
 	 	 /s/    GERALD L.
ZUEHLKE        
 

	  	 	  	 	  	 	 Gerald L. Zuehlke
 VP Finance,
CFO
 
	 
	  	 	  	 	  	 	  

 
  
 
	 SUBSIDIARY GUARANTORS:
 	 	  	 	 THE PRESCOTT AND
NORTHWESTERN
 RAILROAD COMPANY
  
 
	 
	  	 	  	 	 By:
 	 	 /s/    MALCOLM A.
RYERSE        
 

	  	 	  	 	  	 	 Malcolm A. Ryerse        
 Secretary and Asst. Treasurer
 
	 
	  	 	  	 	  	 	  

 
  
 
	 ST. MARIES RIVER
 RAILROAD COMPANY
  
 
	 
	 By:
 	 	 /s/    MALCOLM A.
RYERSE        
 

	  	 	 Malcolm A. Ryerse        
 Secretary and Asst. Treasurer
 

 
  
 
	 WARREN AND SALINE RIVER
 RAILROAD COMPANY
  
 
	 
	 By:
 	 	 /s/    MALCOLM A.
RYERSE        
 

	  	 	 Malcolm A. Ryerse        
 Secretary and Asst. Treasurer
 

 

 
 5Consent and Modification Dated September 27, 2002

  
 Exhibit (10)(o)(ix) 
  
 CONSENT AND MODIFICATION 
  
 September 27, 2002 
  
 Potlatch Corporation 
 601 West Riverside Avenue, Suite 1100 
 Spokane, WA 99201 
 Attn: Gerald L. Zuehlke, Vice President and Chief Financial Officer 
  

	 	Re:
	 
	Credit Agreement, dated as of June 29, 2001 among Potlatch Corporation, a Delaware corporation, as Borrower, the Subsidiary Guarantors from time to time party
thereto, the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent (as amended and modified by the First Amendment thereto dated August 27, 2001, the Second Amendment thereto dated December 19, 2001, the Third
Amendment and Waiver thereto dated January 24, 2002, that certain consent letter dated March 19, 2002 (the “Cloquet Consent”), that certain Consent and Modification dated June 12, 2002 relating to the Cloquet Consent, that certain
Fourth Amendment to Credit Agreement and Waiver dated as of July 16, 2002, that certain Fifth Amendment to Credit Agreement dated as of September 9, 2002, and that certain Consent and Modification dated as of September 11, 2002 and as further
amended, modified, restated and supplemented from time to time, the “Credit Agreement”). 
 

	

  
 Ladies and Gentlemen: 
  
 Reference is hereby made to the above-referenced Credit Agreement. Capitalized terms used herein without definition shall have the
meanings ascribed to such terms in the Credit Agreement. 
  
 You have asked Bank of America, as Issuing Lender for
all new Letters of Credit under the Credit Agreement, to issue one or more commercial Letters of Credit under the Credit Agreement. Pursuant to the terms of Section 2.2(a) of the Credit Agreement, the Issuing Lender may only issue standby Letters of
Credit. Accordingly, you have requested that, notwithstanding the terms of Section 2.2(a) of the Credit Agreement, the Required Lenders, the Agent and Bank of America, as Issuing Lender, consent to the issuance of one or more commercial Letters of
Credit under the Credit Agreement. 
  
 The Required Lenders, the Agent and Bank of America, as Issuing Lender, hereby
consent to (a) the issuance of one or more commercial Letters of Credit, subject to the other terms and conditions set forth in the Credit Agreement relating to Letters of Credit, and (b) in order to facilitate the issuance of the commercial Letters
of Credit, the following modifications to the Credit Agreement: 
  
 (i)  Section 2.2(a) of
the Credit Agreement is hereby modified by deleting the phrase “standby Letters of Credit” in the first sentence thereof and replacing it with the phrase “standby and commercial Letters of Credit”. 

 
 1 

  
 (ii)  Section 2.2(h) of the Credit Agreement is hereby
deleted in its entirety and replaced with the following: 
  
 “(h)   Applicability
of ISP98 and UCP.    Unless otherwise expressly agreed by the applicable Issuing Lender and the Borrower when a Letter of Credit is issued, (i) the rules of the “International Standby Practices 1998” published by
the Institute of International Banking Law & Practice (or such later version thereof as may be in effect at the time of issuance) shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform Customs and Practice for
Documentary Credits, as most recently published by the International Chamber of Commerce (the “ICC”) at the time of issuance (including the ICC decision published by the Commission on Banking Technique and Practice on April 6, 1998
regarding the European single currency (euro)) shall apply to each commercial Letter of Credit.”. 
  

 
 2 

  
 Except to the extent specifically provided to the contrary in this letter, all
terms and conditions of the Credit Agreement shall remain in full force and effect, without modification or limitation. This consent and modification shall not operate as a consent to any other action or inaction by the Borrower or any of the
Guarantors, or as a waiver of any right, power, or remedy of any Lender or the Agent under, or any provision contained in, the Credit Agreement except as specifically provided herein. This consent and may be executed in two or more counterparts,
each of which shall be deemed an original, and all of which taken together shall be deemed to constitute one and the same instrument. This letter shall constitute a Credit Document. 
  
 
	  	 	  	 	 Very truly yours,
 
	  	 	  	 	  
	 LENDERS:
 	 	  	 	 BANK OF AMERICA, N.A.,
 in its capacity as Administrative Agent
 
	  	 	  	 	  
	 
	  	 	  	 	 By:
 	 	  
 

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

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

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

 
  
 
	  	 	  	 	 THE BANK OF NOVA SCOTIA
 
	  	 	  	 	  
	 
	  	 	  	 	 By:
 	 	  
 

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

 
  
 
	  	 	  	 	 COBANK, ACB
 
	  	 	  	 	  
	 
	  	 	  	 	 By:
 	 	  
 

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

 
  
  
 
	  	 	  	 	 WELLS FARGO BANK, N.A.
 
	  	 	  	 	  
	 
	  	 	  	 	 By:
 	 	  
 

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

 
  
  
 [Lender Signatures Continue]

  

 
 3 

  
 
	 WACHIVIA BANK, NATIONAL ASSOCIATION
(F/K/A WACHOVIA BANK, N.A.)
 
	 
	 By:
 	 	  
 

	  	 	 Name:
 
	  	 	 Title:
 

 
  
 
	 NORTHWEST FARM CREDIT SERVICES,
PCA
 
	 
	 By:
 	 	  
 

	  	 	 Name:
 
	  	 	 Title:
 

 
  
 
	 TRANSAMERICA BUSINESS CAPITAL
CORPORATION
 
	 
	 By:
 	 	  
 

	  	 	 Name:
 
	  	 	 Title:
 

 
  
  
 
	 CAPITAL FARM CREDIT
 
	 
	 By:
 	 	  
 

	  	 	 Name:
 
	  	 	 Title:
 

 
  
  
 
	 U.S. BANK NATIONAL
ASSOCIATION
 
	 
	 By:
 	 	  
 

	  	 	 Name:
 
	  	 	 Title:
 

 

 
 4 

  
 The terms of the foregoing Consent and Modification dated as of September 27,
2002 are hereby acknowledged and agreed to: 
  
 
	 BORROWER:
 	 	  	 	 POTLATCH CORPORATION
 
	  	 	  	 	  
	 
	  	 	  	 	 By:
 	 	  
 

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

 
  
 
	 SUBIDIARY GUARANTORS:

 	 	  	 	 THE PRESCOTT AND
NORTHWESTERN

 RAILROAD COMPANY
 
	  	 	  	 	  
	 
	  	 	  	 	 By:
 	 	  
 

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

 
  
 
	  	 	  	 	 ST. MARIES RIVER
 RAILROAD COMPANY
 
	  	 	  	 	  
	 
	  	 	  	 	 By:
 	 	  
 

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

 
  
 
	  	 	  	 	 WARREN AND SALINE RIVER
 RAILROAD COMPANY
 
	  	 	  	 	  
	 
	  	 	  	 	 By:
 	 	  
 

	  	 	  	 	  	 	 Name:
 
	  	 	  	 	  	 	 Title:
 

 
  

 
 5

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