Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EXHIBIT 10.1    
  

LOAN AGREEMENT  

        THIS AMENDED AND RESTATED LOAN AGREEMENT ("Agreement") is made and entered into as of November 6, 2001, by and between Simpson Manufacturing
Co., Inc. a California corporation ("Borrower"), and UNION BANK OF CALIFORNIA, N.A., a national banking association ("Bank"). This Agreement amends and restates in its entirety that certain
loan agreement dated as of November 10, 2000 by and between Borrower and Bank, as amended. 

SECTION 1. THE CREDIT  

1.1  CREDIT FACILITIES  

        1.1.1    The Revolving-To-Term Loan.    Bank will loan to Borrower an amount not to exceed
Thirteen Million Eight Hundred Thousand Dollars ($13,800,000) outstanding in the aggregate at any one time (the "Revolving-To-Term Loan"). The proceeds of the
Revolving-To-Term Loan shall be used for Borrower's general working capital purposes. Borrower may borrow, repay and reborrow all or part of the
Revolving-To-Term Loan in accordance with the terms of the Revolving-To-Term Note (defined below). All borrowings of the Revolving Loan must be made
before November 1, 2002, at which time all unpaid principal and interest of the Revolving Loan shall be due and payable. The Revolving-To-Term Loan shall be evidenced by
Bank's standard form of commercial promissory note (the "Revolving-To-Term Note"). Bank shall enter each amount borrowed and repaid in Bank's records and such entries shall be
deemed correct. Omission of Bank to make any such entries shall not discharge Borrower of its obligation to repay in full with interest all amounts borrowed. 

        As
of the date of this Agreement, the principal amount outstanding under Borrower's revolving loan with Bank evidenced by the promissory note dated November 10, 2000 ("Old Note")
shall be deemed the initial principal amount outstanding under the Revolving Loan, and the Old Note is hereby cancelled and superceded by the Revolving Note. 

        1.1.1.a    The Standby L/C Sublimit.    As a sublimit under the Revolving Loan, Bank shall issue, for the account of
Borrower, one or more irrevocable standby letters of credit (individually, a "Standby L/C"). The aggregate amount available to be drawn under all Standby L/Cs and the aggregate amount of unpaid
reimbursement obligations under drawn Standby L/Cs shall not exceed Four Million Dollars ($4,000,000) and shall reduce, dollar for dollar, the maximum amount available under the
Revolving-To-Term Loan. All Standby L/Cs shall be drawn on terms and conditions acceptable to Bank and shall be governed by the terms of (and Borrower agrees to execute) Bank's
standard form of standby letter of credit application and reimbursement agreement. No Standby L/C shall expire more than twelve (12) months from the date of its issuance, and in no event later
than November 1, 2003. At Borrower's request, Bank will issue L/Cs on behalf of Borrower's subsidiaries, including but not limited to: 1) Simpson Strong-Tie
Company Inc.; 2) Simpson Dura-Vent Company, Inc.; and 3) Simpson Strong-Tie, International Inc., so long as the Borrower executes the Bank's
standard form for L/C applications and reimbursement agreement. 

        1.2    Terminology.    The following words and phrases, whether used in their singular or plural form, shall have the
meanings set forth below: 

        "GAAP"
means generally accepted accounting principles and practices consistently applied. Accounting terms used in this Agreement but not otherwise expressly defined have the meanings
given them by GAAP. 

        "L/C"
means the Commercial L/Cs or the Standby L/Cs, or both, as the context may require. 

1

 

        "Lien"
means any voluntary or involuntary security interest, mortgage, pledge, claim, charge, encumbrance, title retention agreement, or third party interest, covering all or any part of
the property of Borrower or any Guarantor. 

        "Loan"
means all the credit facilities described above. 

        "Loan
Documents" means this Agreement, the Note, and all other documents, instruments and agreements required by Bank and executed in connection with this Agreement, the Note, the Loans,
and with all other credit facilities from time to time made available to Borrower by Bank. 

        "Note"
means all the promissory notes described above. 

        1.3    Prepayment    The Loan may be prepaid in full or in part but only in accordance with the terms of the Note, and
any such prepayment shall be subject to any prepayment fee provided for therein. In the event of a principal prepayment on any term indebtedness, the amount prepaid shall be applied to the scheduled
principal installments due in the reverse order of their maturity on the Loan being prepaid. 

        1.4    Interest.    The unpaid principal balance of the Loan shall bear interest at the rate or rates provided in the
Note. 

        1.5    Unused Fee.    On the last calendar day of the third month following the execution of this Agreement and on the
last calendar day of each three-month period thereafter, Borrower shall pay to Bank a fee of One Eighth of One percent (0.125%) per year on the unused portion of
Revolving-To-Term for the preceding quarter, computed on the basis of a 360 day year for actual days elapsed. 

        1.6    Standby Letter of Credit Fees.    Borrower agrees to pay Bank Three Quarters of One Percent (0.75%) per annum
of the principal face sum of all LCs. 

        1.7    Disbursement.    Bank shall disburse the proceeds of the Loan as provided in Bank's standard form
Authorization(s) to Disburse executed by Borrower. 

SECTION 2. CONDITIONS PRECEDENT  

        Bank shall not be obligated to disburse all or any portion of the Loans unless at or prior to the time of each such disbursement, the following conditions have
been fulfilled to Bank's satisfaction: 

        2.1    Compliance.    Borrower shall have performed and complied with all terms and conditions required by this
Agreement to be performed or complied with, and shall have executed and delivered to Bank the Note and all other Loan Documents. 

        2.2    Guaranties.    Simpson Strong-Tie Company Inc., and Simpson Dura-Vent
Company, Inc. (individually a "Guarantor" and collectively "Guarantors") shall have executed and delivered to Bank their respective continuing guaranties in form and amount satisfactory to
Bank. 

        2.3    Authorization to Obtain Credit.    Borrower shall have provided Bank with an executed copy of Bank's form
Authorization to Obtain Credit, authorizing the execution, delivery and performance of this Agreement and the other Loan Documents. Such resolutions shall also designate the persons who are authorized
to act on Borrower's behalf in connection with this Agreement to do the things required of Borrower pursuant to this Agreement. 

        2.4    Continuing Compliance.    At the time any disbursement is to be made and immediately thereafter, there shall
not exist any Event of Default (as hereinafter defined) or any event, condition, or act which with notice or lapse of time, or both, would constitute an Event of Default. 

2

 

SECTION 3. REPRESENTATIONS AND WARRANTIES  

        Borrower represents and warrants that: 

        3.1    Business Activity.    Borrower's principal business is manufacturer of specialty connectors and venting systems
for gas and wood burning appliances. 

        3.2    Affiliates and Subsidiaries.    Borrower's affiliates and subsidiaries (those entities in which Borrower has
either a controlling interest or a twenty-five percent (25%) or more ownership interest) and their addresses, and the names of the persons or entities owning five percent (5%) or more of
the equity interests in Borrower, are as provided on a schedule delivered to Bank on or before the date of this Agreement. 

        3.3    Organization and Qualification.    Borrower is duly organized and existing under the laws of the state of its
organization, is duly qualified and in good standing in any jurisdiction where such qualification is required, and has the power and authority to carry on the business in which it is engaged and/or
proposes to engage. 

        3.4    Power and Authorization.    Borrower has the power and authority to enter into this Agreement and to execute
and deliver the Note and all other Loan Documents. This Agreement and all things required by this Agreement and the other Loan Documents have been duly authorized by all requisite action of Borrower. 

        3.5    Authority to Borrow.    The execution, delivery and performance of this Agreement, the Note and all other Loan
Documents are not in contravention of any of the terms of any indenture, agreement or undertaking to which Borrower is a party or by which it or any of its property is bound or affected. 

        3.6    Compliance with Laws.    Borrower is in compliance with all applicable laws, rules, ordinances or regulations
which materially affect the operations or financial condition of Borrower. 

        3.7    Title.    Except for assets which may have been disposed of in the ordinary course of business, Borrower has
good and marketable title to all property reflected in its financial statements delivered to Bank and to all property acquired by Borrower since the date of said financial statements, free and clear
of all Liens, except Liens specifically referred to in said financial statements. 

        3.8    Financial Statements.    Borrower's financial statements, including both a balance sheet at
September 30, 2001, together with supporting schedules, and an income statement for the Nine (9) months ended September 30, 2001, have heretofore been furnished to Bank, are true
and complete, and fairly represent Borrower's financial condition for the period covered thereby. Since September 30, 2001, there has been no material adverse change in Borrower's financial
condition or operations. 

        3.9    Litigation.    There is no litigation or proceeding pending or threatened against Borrower or any of its
property which is reasonably likely to affect the financial condition, property or business of Borrower in a materially adverse manner or result in liability in excess of Borrower's insurance
coverage. 

        3.10    ERISA.    Borrower's defined benefit pension plans (as defined in the Employee Retirement Income Security Act
of 1974, as amended ("ERISA")), meet, as of the date hereof, the minimum funding standards of Section 302 of ERISA, and no Reportable Event or Prohibited Transaction as defined in ERISA has
occurred with respect to any such plan. 

        3.11    Regulation U.    No action has been taken or is currently planned by Borrower, or any agent acting on
its behalf, which would cause this Agreement or the Note to violate Regulation U or any other regulation of the Board of Governors of the Federal Reserve System, or to violate the Securities
and Exchange Act of 1934, in each case as in effect now or as the same may hereafter be in effect. Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying 

3

 

margin stock as one of its important activities and, except as may be expressly agreed to and documented between Borrower and Bank, none of the proceeds of the Loan will be used directly or
indirectly for such purpose. 

        3.12    No Event of Default.    Borrower is not now in default in the payment of any of its material obligations, and
there exists no Event of Default, and no condition, event or act which with notice or lapse of time, or both, would constitute an Event of Default. 

        3.13    Continuing Representations and Warranties.    The foregoing representations and warranties shall be considered
to have been made again at and as of the date of each and every Loan disbursement and shall be true and correct as of each such date. 

SECTION 4. AFFIRMATIVE COVENANTS  

        Until all sums payable pursuant to this Agreement, the Note and the other Loan Documents have been paid in full, unless Bank otherwise consents in writing,
Borrower agrees that: 

        4.1    Use of Proceeds.    Borrower will use the proceeds of the Loan only as provided in Section 1 above. 

        4.2    Payment of Obligations.    Borrower will pay and discharge promptly all taxes, assessments and other
governmental charges and claims levied or imposed upon it or its property, or any part thereof; provided, however, that Borrower shall have the right in good faith to contest any such taxes,
assessments, charges or claims and, pending the outcome of such contest, to delay or refuse payment thereof provided that adequately funded reserves are established by it to pay and discharge any such
taxes, assessments, charges and claims. 

        4.3    Maintenance of Existence.    Borrower will maintain and preserve its existence, its assets, and all rights,
franchises, licenses and other authority necessary for the conduct of its business, and will maintain and preserve its property, equipment and facilities in good order, condition and repair. Bank may,
at reasonable times, visit and inspect any of Borrower's properties. 

        4.4    Records.    Borrower will keep and maintain full and accurate accounts and records of its operations in
accordance with GAAP and will permit Bank, at Borrower's expense, to have access thereto, to make examination and photocopies thereof, and to make audits of Borrower's accounts and records and Bank's
collateral during regular business hours. 

        4.5    Information Furnished.    Borrower will furnish to Bank: 

	(a)
	Within
Thirty (30) days after the close of each fiscal quarter, except for the final quarter of each fiscal year, its unaudited balance sheet as of the close of such fiscal
quarter, its unaudited income and expense statement with year-to-date totals and supportive schedules, and its statement of retained earnings for that fiscal
quarter, all prepared in accordance with GAAP;

	(b)
	Within
One Hundred Twenty (120) days after the close of each fiscal year, a copy of its statement of financial condition including at least its balance sheet as of the close of
such fiscal year and its income and expense statement, and its retained earnings statement for such fiscal year, examined and prepared on an audited basis by independent certified public accountants
selected by Borrower and reasonably satisfactory to Bank, in accordance with GAAP along with any management letter provided by such accountants;

	(c)
	Give
Notice to Bank within Fifteen (15) days of any guaranty issued obligating Borrower or Guarantors.

	(d)
	Prompt
written notice to Bank of any Event of Default or breach under any of the terms or provisions of this Agreement or any other Loan Document, any litigation which would have a 

4

 

material
adverse effect on Borrower's financial condition, and any other matter which has resulted in, or is likely to result in, a material adverse change in Borrower's financial condition or
operations; 

	(e)
	Prior
written notice to Bank of any change in Borrower's [officers] [general partners] [members] and other
senior management, Borrower's name, and the location of Borrower's assets, principal place of business or chief executive office;

	(f)
	Copies
of any amendments to Borrower's loan documents with Wells Fargo Bank;

	(g)
	Within
fifteen (15) days after Borrower knows or has reason to know that any Reportable Event or Prohibited Transaction (as defined in ERISA) has occurred with respect to any
defined benefit pension plan of Borrower, a statement of an authorized officer of Borrower describing such event or condition and the action, if any, which Borrower proposes to take with respect
thereto;

	(h)
	Give
written notice at least Thirty (30) days prior to the proposed closing date of any acquisition in excess of Eight Million Dollars ($8,000,000), providing a description of
the business or assets to be acquired and the terms of the acquisition; and

	(i)
	Such
other financial statements and information as Bank may reasonably request from time to time. 

        4.6    Tangible Net Worth.    Borrower will at all times maintain Tangible Net Worth of not less than One Hundred
Eighty Million Dollars ($180,000,000) increasing by fifty percent (50%) of Borrower's net profit after taxes for each fiscal quarter ending on or after December 31, 2001. "Tangible Net Worth"
means Borrower's net worth increased by indebtedness subordinated to Bank and decreased by patents, licenses, trademarks, trade names, goodwill and other similar intangible assets, organizational
expenses, security deposits, prepaid costs and expenses and monies due from affiliates (including officers, shareholders and directors). 

        4.7    Adjusted Total Liabilities to Tangible Net Worth.    Borrower will at all times maintain a ratio of Adjusted
Total Liabilities to Tangible Net Worth of not greater than 1.5:1.0. "Adjusted Total Liabilities" shall mean total liabilities plus all guarantees and similar contingent liabilities of Borrower and
Guarantors. 

        4.8    Profit From Operations.    Borrower will achieve net profit from operations, as defined by generally accepted
accounting principles, of any positive amount for each fiscal year. 

        4.9    Cash Flow Ratio.    Borrower will maintain a ratio of Cash Flow to Debt Service of not less than 1.5:1.0 as of
the close of each fiscal year. "Cash Flow" means net profit after taxes to which depreciation, amortization and other noncash expenses are added for the twelve (12) month period immediately
preceding the date of calculation. "Debt Service" shall mean interest expenses plus prior period current portion of long-term debt, including subordinated debt payments. 

        4.10    Insurance.    Borrower will keep all of its insurable property, whether real, personal or mixed, insured by
companies approved by Bank, against fire and such other risks, and in such amounts as is customarily obtained by companies conducting similar business with respect to like properties. 

        4.11    Additional Requirements.    Upon Bank's demand, Borrower will promptly take such further action and execute
all such additional documents and instruments in connection with this Agreement and the other Loan Documents as Bank in its reasonable discretion deems necessary, and promptly supply Bank with such
other information concerning its affairs as Bank may request from time to time. 

        4.12    Litigation and Attorneys' Fees.    Upon Bank's demand, Borrower will promptly pay to Bank reasonable
attorneys' fees, including the reasonable estimate of the allocated costs and expenses of in-house legal counsel and staff, and all costs and other expenses paid or incurred by Bank in 

5

 

collecting, modifying or compromising the Loan or in enforcing or exercising its rights or remedies created by, connected with or provided for in this Agreement and the other Loan Documents. If any
judicial action, arbitration or other proceeding is commenced, only the prevailing party shall be entitled to attorneys' fees and court costs. 

        4.13    Bank Expenses.    Upon Bank's request, Borrower will pay or reimburse Bank for all costs, expenses and fees
incurred by Bank in preparing and documenting this Agreement and the Loan, and all amendments and modifications to any Loan Documents, including but not limited to all filing and recording fees, costs
of appraisals, insurance and attorneys' fees, including the reasonable estimate of the allocated costs and expenses of in-house legal counsel and staff. 

SECTION 5. NEGATIVE COVENANTS  

        Until all sums payable pursuant to this Agreement, the Note and the other Loan Documents have been paid in full, unless Bank otherwise consents in writing,
Borrower agrees that: 

        5.1    Liens.    Borrower will not create, assume or suffer to exist any Lien on any of its property, whether real,
personal or mixed, now owned or hereafter acquired, or upon the income or profits thereof, except (a) Liens in favor of Bank, (b) Liens for taxes not delinquent and taxes and other items
being contested in good faith, (c) minor encumbrances and easements on real property which do not affect its market value, (d) existing Liens on Borrower's personal property, and
(e) future purchase money security interests encumbering only the personal property purchased. 

        5.2    Other Indebtedness.    Create, incur, assume or permit to exist any indebtedness or liabilities resulting from
borrowings, loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except (a) the liabilities of Borrower to Bank; (b) trade
debt incurred by Borrower in the normal course of its business; (c) the existing liabilities of Borrower disclosed to Bank on its financial statement referenced in Section 3.8 hereof;
(d) indebtedness arising under existing real estate secured loans, provided however that such indebtedness shall not exceed the lessor of (I) One Hundred percent (100%) of the aggregate
purchase price of such real property as valued; or (ii) the aggregate appraised value of such real estate collateral; (e) unsecured indebtedness of Borrower to Wells Fargo Bank in an
aggregate amount not to exceed Nine Million and Two Hundred Thousand Dollars ($9,200,000); and (f) unsecured indebtedness of subsidiaries in an aggregate amount not to exceed Ten Million
Dollars ($10,000,000). 

        5.3    Sale of Assets, Liquidation or Merger.    Borrower will not liquidate, dissolve or enter into any
consolidation, merger, partnership or other combination, or convey, sell or lease all or the greater part of its assets or business, or purchase or lease all or the greater part of the assets or
business of another. 

        5.4    Loans, Advances and Guaranties.    Borrower will not, except in the ordinary course of business as currently
conducted, make any loans or advances, become a guarantor or surety, or pledge its credit or properties; except for amounts not in excess of Twenty Five Million Dollars ($25,000,000) in the aggregate. 

        5.5    Acquisition.    Borrower will not make any acquisitions or acquire any net assets, other than fixed or capital
assets acquired in the normal course of business, in excess of Twenty Million Dollars ($20,000,000) in any fiscal year. 

        5.6    Payment of Dividends.    Borrower will not declare or pay any dividends, other than dividends payable solely in
its own common stock, or authorize or make any other distribution with respect to any of its stock now or hereafter outstanding. 

6

 

        5.7    Redemption of Stock.    Borrower will not redeem or retire any share of its capital stock for value.
Notwithstanding the aforementioned, stock repurchases not exceeding Thirty Five Million Dollars ($35,000,000) in the aggregate will be allowed. 

        5.8    Affiliate Transactions.    Borrower will not transfer any property to any affiliate, except for value received
in the normal course of business and for an amount, including any management or service fee(s), as would be conducted and charged with an unrelated or unaffiliated entity. Borrower will not pay any
management fee or fee for services to any affiliate without Bank's prior written consent. 

        5.9    Lease Obligations.    Borrower will not incur new lease obligations as lessee which would result in aggregate
lease payments for any fiscal year exceeding Fifteen Million Dollars ($15,000,000). Each such lease shall be of equipment or real property needed by Borrower in the ordinary course of its business. 

        5.10    Borrower will not amend, alter, supplement or otherwise modify the terms of Guarantor's existing indebtedness to Wells
Fargo Bank, N.A.    

        5.11    Borrower will not transfer the proceeds of any loan or advance hereunder, or any other asset of Borrower to any
affiliate of Guarantor, unless such transfer is evidenced by a valid and enforceable instrument or statement or account.    

SECTION 6. EVENTS OF DEFAULT  

        The occurrence of any of the following events ("Events of Default") shall terminate any obligation of Bank to make or continue the Loan and shall automatically,
unless otherwise provided under the Note, make all sums of interest and principal and any other amounts owing under the Loan immediately due and payable, without notice of default, presentment or
demand for payment, protest or notice of nonpayment or dishonor, or any other notices or demands: 

        6.1    Borrower shall default in the due and punctual payment of the principal of or the interest on the Note or on any amounts
owing under any of the Loan Documents;    

        6.2    Any default shall occur under the Note;    

        6.3    Borrower shall default in the due performance or observance of any covenant or condition of the Loan
Documents;    

        6.4    Any guaranty or subordination agreement required hereunder shall be breached or becomes ineffective, or any Guarantor or
subordinating creditor shall die, disavow or attempt to revoke or terminate such guaranty or subordination agreement; or    

        6.5    There shall be a change in ownership or control of ten percent (10%) or more of the equity interests in Borrower or any
Guarantor.    

SECTION 7. GENERAL PROVISIONS  

        7.1    Additional Remedies.    The rights, powers and remedies given to Bank hereunder shall be cumulative and not
alternative and shall be in addition to all rights, powers and remedies given to Bank by law against Borrower or any other person or entity including but not limited to Bank's rights of setoff and
banker's lien. 

        7.2    Nonwaiver.    Any forbearance or failure or delay by Bank in exercising any right, power or remedy hereunder
shall not be deemed a waiver thereof and any single or partial exercise of any right, power or remedy shall not preclude the further exercise thereof. No waiver shall be effective unless it is in
writing and signed by an officer of Bank. 

7

 

        7.3    Inurement.    The benefits of this Agreement and the other Loan Documents shall inure to the successors and
assigns of Bank and the permitted successors and assigns of Borrower, but any attempted assignment by Borrower without Bank's prior written consent shall be null and void. 

        7.4    Applicable Law.    This Agreement and the other Loan Documents shall be governed by and construed according to
the laws of the State of California. 

        7.5    Severability.    Should any one or more provisions of this Agreement or any other Loan Document be determined
to be illegal or unenforceable, all other provisions of such document shall nevertheless be effective. 

        7.6    Controlling Document.    In the event of any inconsistency between the terms of this Agreement and any other
Loan Document, the terms of the other Loan Document shall prevail. 

        7.7    Construction.    The section and subsection headings herein are for convenient reference only and shall not
limit or otherwise affect the interpretation of this Agreement. 

        7.8    Amendments.    This Agreement may be amended only in writing signed by all parties hereto. 

        7.9    Counterparts.    Borrower and Bank may execute one or more counterparts to this Agreement, each of which shall
be deemed an original, but all such counterparts when taken together, shall constitute one and the same agreement. 

        7.10    Notices. Any notices or other communications provided for or allowed hereunder shall be effective only when given by one
of the following methods and addressed to the parties at their respective addresses and shall be considered to have been validly given (a) upon delivery, if delivered personally,
(b) upon receipt, if mailed, first class postage prepaid, with the United States Postal Service, (c) on the
next business day, if sent by overnight courier service of recognized standing, or (d) upon telephoned confirmation of receipt, if telecopied. The addresses to which notices or demands are to
be given may be changed from time to time by notice delivered as provided above. 

        7.11    Integration Clause.    Except for the other Loan Documents, this Agreement constitutes the entire agreement
between Bank and Borrower regarding the Loan, and all prior oral or written communications between Borrower and Bank shall be of no further effect or evidentiary value. 

8

 

        THIS
AGREEMENT is executed on behalf of the parties by their duly authorized representative(s) as of the date first above written. 

	 	 	Acknowledged by Guarantors:
	
Simpson Manufacturing Co., Inc.	
 	

Simpson Strong-Tie Company Inc.
	

By:

Title:

Address:

Koll Dublin Corporate Center

4120 Dublin Blvd., Suite 400

Dublin, CA 94568

Telephone: (925) 460-9912

Facsimile: (925) 847-9114	
 	

By:

Title:

By:

Title:

 Simpson Dura-Vent Company, Inc.

By:

Title:

By:

Title:
	
UNION BANK OF CALIFORNIA, N.A.	
 	

 
	

By:

Title:	
 	

 
	

By:

Title: Address:	
 	

 
	

Two Walnut Creek Center

200 Pringle Avenue, Suite 260

Walnut Creek, CA 94596-3570	
 	

 
	

Attention: Carol Garrett

Telephone: (925) 947-2439

Facsimile: (925) 947-2424	
 	

 

9

QuickLinks

EXHIBIT 10.1QuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.2    
  

PURCHASE AND SALE AGREEMENT  

 AIRPORT WAY PROPERTY  

        THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (this "Agreement") is made as of the 26th day of February, 2001 (the "Effective Date"), by and
between Carl D. Panattoni ("Seller"), and Simpson Manufacturing Corporation, a Delaware corporation ("Buyer") with reference to the following facts. 

        A.    Seller
owns the real property which is San Joaquin County Assessor's Parcel Nos. 177-34-53, -54, -55, -56, -57, -60 and -61, consisting of
approximately 46.962 acres of real property, and all improvements thereon, further described in the Preliminary Title Report attached as Exhibit "A"
(the "Sale Property"). 

        B.    Seller
has agreed to sell to Buyer and Buyer has agreed to buy from Seller the land and property described in this Agreement in accordance with and upon satisfaction of
the terms and conditions set forth herein. 

        NOW,
THEREFORE, in consideration of the mutual covenants and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows: 

1.    GENERAL  

        1.1    The Property.    The Sale Property, including any right, title and interest of Seller in and to adjacent
streets, alleys or rights-of-way; the buildings, structures, fixtures and other improvements affixed to or located thereon; and, any and all of Seller's right, title and
interest in and to (i) all assignable contracts and agreements, permits, licenses, approvals, authorizations, entitlements issued by any governmental authority in connection with the Sale
Property and (ii) all assignable drawings, plans and specification pertaining to the development of the Sale Property. 

        1.2    Purpose.    The purpose of this Agreement is to provide for the purchase and sale of the Sale Property, and to
establish the terms and conditions thereof. 

        The
parties acknowledge that they will be discussing with each other purchase, development, and/or construction alternatives regarding the Sale Property during the 45 day Study
Period stated herein, including the completion of offsite improvements and construction of an approximately 275,000 square foot building(s) on the Sale Property. The parties shall continue to
negotiate such alternatives that may supercede, by mutual agreement, the terms and conditions stated herein, including, without limitation, the obligations to pay for and construct off site
improvements. Notwithstanding the foregoing, in the event that the parties do not reach agreement on any such options or alternatives, the terms of this Agreement shall remain in full force and
effect. 

        1.3    Exchanges.    Either party may prefer to exchange rather than sell or buy. The parties will cooperate in that
regard, but the non-exchanging party shall not be required to incur any additional cost, liability, or expense. The non-exchanging party shall not be required to take title to
any property that it is not ultimately acquiring. 

2.    SALE PROPERTY  

        2.1    Agreement of Sale.    Seller agrees to sell and Buyer agrees to purchase the Sale Property on the terms and
conditions specified in this Agreement. 

        2.2    Price.    The purchase price ("Purchase Price") of the Sale Property shall be $4,396,066, less a credit of
$250,000 for Buyer's offsite improvements. The Purchase Price is based on a net acreage of 46.962 as established by Siegfried Engineering. The cost of preparing such survey shall be borne by Seller.
Buyer shall be responsible for the Airport Way offsite improvements as stated in Paragraph 4.07

 

provided that if Buyer elects, in its sole discretion to engage Seller as contractor of the improvements, the construction agreement will include the offsite improvements and Buyer shall deposit
$250,000.00 in escrow pursuant to a mutually acceptable escrow agreement which amount shall be released to Seller upon the completion of the offsite improvements and the acceptance of such
improvements by Buyer. Buyer may not purchase less than all of the Parcels comprising the Sale Property. 

        2.3    Terms of Sale.    The Purchase Price shall be paid in cash upon close of escrow. All cash amounts shall be in
lawful money of the United States and shall include any Deposit. 

        2.4    Bonded Indebtedness.    In addition to the Purchase Price and all other amounts to be paid by Buyer pursuant to
this Agreement, Buyer agrees to assume the balance due (principal and interest) on the portion of any and all public improvement bonds and assessments attributable to the Sale Property (determined as
that percentage of the total bond or assessment equal to the Sale Property's percentage of the total land area encumbered by such bonds) which may constitute a lien on the Sale Property at close of
escrow or afterwards. Notwithstanding the foregoing, Seller shall be responsible for paying its allocable share of all such bonds or assessments for the period prior to the close of escrow. 

        2.5    Good Faith Deposit.    Upon execution of this Agreement, Buyer agrees to concurrently open escrow and deposit
with Fidelity Title Company ("Title Company") the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000.00). On or before the end of the Study Period stated in  Paragraph 4.06, in the event Buyer wishes to
proceed with this transaction, Buyer shall deposit an additional ONE HUNDRED FIFTY THOUSAND DOLLARS
($150,000.00) into escrow, and Buyer shall concurrently order Title Company to release to Seller the entire $250,000.00 deposit plus accrued interest, all of which shall be held in accordance with the
terms of this Agreement. If the sale does not occur as a result of a Seller default, in addition to all of Buyer's rights and remedies under this Agreement, it is an express covenant and agreement of
Seller that Seller shall immediately return the Deposit to Buyer together with all accrued interest. The $250,000 deposit shall be subject to  Paragraph 2.06 in the event escrow does not close. If
Buyer does not deposit the additional $150,000, the Title Company shall automatically and
without further notice, return the deposit to Buyer with all accrued interest, and this Agreement shall terminate. In the event of such termination, neither party shall have any further obligation or
liability to the other, except for those provisions that expressly survive termination. 

        All
deposits shall be deposited into an interest bearing account, with interest paid to the recipient of the underlying principal. All deposits are subject to the terms and conditions
set forth in Paragraph 2.06 of this Agreement. The parties specifically agree to execute such instructions as Title Company may require to comply
with this Paragraph 2. 

        2.6    LIQUIDATED DAMAGES.    IN THE EVENT THE SALE OF THE PROPERTY AS CONTEMPLATED HEREUNDER IS NOT CONSUMMATED BY
REASON OF A DEFAULT OF BUYER UNDER THIS AGREEMENT, THE DEPOSIT (INCLUDING ALL INTEREST EARNED FROM THE INVESTMENT THEREOF) SHALL BE PAID TO AND RETAINED BY SELLER AS LIQUIDATED DAMAGES AND AS SELLER'S
SOLE AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT, AT LAW OR IN EQUITY AS A RESULT OF SUCH DEFAULT. THE PARTIES ACKNOWLEDGE THAT SELLER'S ACTUAL DAMAGES IN THE EVENT THAT THE SALE IS NOT CONSUMMATED
WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFORE, BY SEPARATELY INITIALING THIS SECTION, THE PARTIES ACKNOWLEDGE THAT THE NONREFUNDABLE DEPOSIT OF HAS BEEN AGREED UPON, AFTER
NEGOTIATION, AS THE PARTIES' REASONABLE ESTIMATE OF SELLER'S DAMAGES AND AS SELLER'S SOLE AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT, AT LAW OR IN EQUITY AGAINST BUYER IN THE EVENT THE CLOSING DOES NOT
OCCUR BY REASON OF BUYER'S DEFAULT. BUYER AND SELLER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTOOD THE ABOVE PROVISION 

C-2

 

COVERING LIQUIDATED DAMAGES, AND THAT EACH PARTY WAS REPRESENTED BY COUNSEL WHO EXPLAINED THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION AT THE TIME THIS AGREEMENT WAS EXECUTED. SELLER HEREBY
WAIVES ANY AND ALL BENEFITS IT MAY HAVE UNDER CALIFORNIA CIVIL CODE SECTION 3389. 

Seller's
Initial                     Buyer's Initial              

3.    ESCROW  

        3.1    Opening.    The purchase and sale of the Sale Property shall be consummated by means of an escrow that is to be
opened at Fidelity Title Company immediately after execution of this Agreement. 

        3.2    Closing.    Escrow shall close no later than fifteen (15) days after the Study Period stated in  Paragraph 4.06,
which date shall be referred to herein as the "Scheduled Closing Date". Any earlier closing or extensions beyond that date shall
require the written consent of Buyer and Seller. 

        3.3    Instructions.    The escrow instructions given Title Company shall be consistent with the terms of this
Agreement, and shall provide that as between the parties, the terms of this Agreement shall prevail if there is any inconsistency. 

        3.4    Costs.    The parties shall share equally escrow fees. Seller shall bear the cost of the CLTA title policy
coverage for the Sale Property. Recording fees shall be allocated in accordance with the custom in San Joaquin County, California. Seller shall pay the transfer taxes on the Sale Property. Buyer shall
bear the expense of the ALTA increment of the title insurance premium, if any, together with the cost of any ALTA survey or inspection, and any endorsements requested by Buyer, excluding however, the
survey to measure the net acreage of the Sale Property. 

        3.5    Prorations.    All charges and credits with respect to the Sale Property, including without limitation real
property taxes, assessments and bond payments, shall be prorated to close of escrow 

4.    CONDITIONS TO CLOSE OF ESCROW  

        4.1    General.    The provisions of this Paragraph 4 are
conditions precedent to the close of the escrow described in Paragraph 3 and unless otherwise provided expressly or by context, are covenants. 

        4.2    Title.    Seller shall cause title to be conveyed to Buyer by a grant deed in the form attached to this
Agreement as Exhibit "B"(the "Grant Deed") subject only to current taxes and other exceptions approved by Buyer pursuant to  Paragraph 4.03. Seller
must cause Title Company to issue its ALTA policy of title insurance insuring title in Buyer with liability in the amount
of the Purchase Price, subject only to the exceptions which have been approved by Buyer ("Title Policy"). If Buyer does not accept an exception, Seller shall have the right to remove such exception or
obtain, at Seller's expense, title insurance over the exception or advise Buyer that it will not cure such title defect. Notwithstanding the foregoing, Seller shall remove all monetary exceptions. The
policy shall list only the taxes and exceptions set forth in Paragraph 4.03 in addition only to the printed exceptions common to such ALTA
policy. Seller shall provide customary affidavits and undertaking to the Title Company to enable it to remove exceptions for occupancy, mechanics liens and other similar items. 

        4.3    Approval of Encumbrances.    With respect to existing encumbrances, Seller shall provide Buyer with legible
copies of all exceptions shown in the Preliminary Title Report. Buyer shall approve or disapprove such items within the Study Period described in  Paragraph 4.06. 

        4.4    Cash and Deed.    Buyer shall deposit with Title Company the cash and documents required from Buyer in
connection with the escrow and shall cause Title Company to deliver the purchase consideration to Seller upon the close of escrow. Seller shall deposit with Title Company the documents required from
Seller in connection with the escrow, including without limitation, a Non-Foreign Affidavit pursuant to Section 1445(b)(2) of the Internal Revenue Code in form and 

C-3

 

substance satisfactory to the parties and a State of California Form 507, and shall cause Title Company to be ready, willing and able to record and deliver to Buyer the duly executed and
acknowledged Grant Deed. 

        4.5    Failure of Title.    If Seller is unable to convey marketable title in the aforesaid condition within the
allowable time to close escrow, or if the Sale Property or any portion thereof shall have been destroyed or materially damaged by whatever cause, then Buyer may either accept the Sale Property in its
then state and condition of title or terminate this transaction and receive a refund of all funds as set forth herein. If Buyer elects to terminate as aforesaid and provided that Seller is not
otherwise in default of its obligations hereunder, Buyer shall not have any claim against Seller or the Sale Property (except that Buyer's Deposit shall be refunded). Seller shall be deemed able to
deliver (or have delivered) marketable title herein required if Title Company stands ready to issue on the date of closing the Title Policy. 

        4.6    Study Period.    Buyer shall have 45 days ("Study Period") from the later of (i) the date Seller
delivers to Buyer a fully executed copy of this Agreement, (i) all exceptions to the Title Report as stated in Paragraph 4.03, and
(iii) the documents listed in the attached Exhibit "C" ("Property Documents") within which to study the condition of the Sale Property and the
feasibility of developing it. Buyer shall perform such studies at its own cost. During the Study Period, Buyer and its representatives may enter the Sale Property to inspect, test, and survey it.
Buyer shall repair any damage caused by same, and Buyer agrees to indemnify and hold Seller harmless from any claims, including reasonable attorneys' fees, caused by such entry and activities. On or
before the end of the Study Period, if Buyer, in its sole and absolute discretion, disapproves the results of such studies, or Buyer is silent, this Agreement shall terminate and Buyer shall receive a
refund of the Deposit in accordance with Paragraph 2.05. If Buyer does not purchase the Sale Property, Buyer shall promptly return all documents
to Seller. 

        4.7    Offsite Improvements.    Seller shall be responsible for all improvements currently required by the City of
Stockton pursuant to the documents attached as Exhibit "C", except Buyer shall be responsible for all offsite improvements required along the Sale
Property's frontage on Airport Way. 

        4.8    Covenants, Conditions and Restrictions.    The parties agree that the exceptions to the Title Policy shall also
include additional covenants, conditions and restrictions of the Sale Property, subject to mutual approval of the parties, which shall be an express condition precedent to each party's respective
obligation to close escrow. 

5.    POSSESSION  

        Vacant possession of the Sale Property, free and clear of any leases or other occupancy shall be given to Buyer upon close of escrow. 

6.    BROKERS  

        Seller represents it has not engaged nor is it aware of any person entitled to any brokerage commission or finder's fee in connection with this Agreement, except
for CB Richard Ellis, Cornish & Carey Commercial, and Collier's International, which shall be compensated by Seller pursuant to a separate agreement. Buyer represents it has not engaged nor is
it aware of any person entitled to any brokerage commission or finder's fee in connection with this Agreement. Except as may be specifically provided to the contrary in this Agreement, neither Buyer
nor Seller is represented in this transaction by any real estate broker or agent. Each party agrees to indemnify the other party against any claim asserted against or adjudged against the other party,
for any brokerage commission or finder's fee or any like compensation occasioned by or as a result of any act or omission of each such party, including all attorney's fees, costs, expenses, and any
other fees incurred by, charged against, or adjudicated 

C-4

 

against, the other party, whether or not suit is filed, which are related to this indemnity agreement or enforcement thereof. 

7.    WARRANTIES  

        7.1    Toxic Substances.    Seller hereby warrants that to its actual knowledge there is not any contamination,
hazardous waste or toxic substance in existence on or below the surface of the Sale Property, including without limitation, contamination of the soil, sub-soil or groundwater which
constitutes a violation of any law, rule or regulation of any government entity having jurisdiction thereof or which exposes Buyer to liability to third parties. 

        7.2    Physical Condition of Property.    Seller hereby warrants that to Seller's actual knowledge: (i) there
are not any defects in the land or improvements comprising the Sale Property; and (ii) all improvements constructed by Seller, if any, have been constructed according to applicable building
codes pursuant to building permits issued by the appropriate governmental entity(ies), and have been inspected and approved by such entities. 

        7.3    Contracts and Intangibles.    To Seller's actual knowledge, the Seller has provided Buyer with complete copies
of all contracts and materials in its possession pertaining to the use, operation and development of the Sale Property. 

        7.4    Definition of Actual Knowledge.    The phrase "Seller's actual knowledge" shall mean the current knowledge of
Carl Panattoni and Mel Souza, without any requirement of due inquiry other than a review of their files for the Property. 

        7.5    Indemnification.    Seller hereby agrees to indemnify and defend Buyer against any claim or lien, including all
attorney's fees, costs, and expenses, incurred by Buyer relating to the Sale Property and resulting from any breach by Seller of this Agreement. Buyer similarly indemnifies Seller for claims resulting
from Buyer's breach of this Agreement. 

        7.6    As-Is, Where-Is.    Except as stated otherwise herein, Buyer acknowledges that Buyer is
acquiring the Sale Property in its "AS-IS" condition as of the date of close of escrow, solely in reliance on its own inspections and examination, and its own evaluation of the Sale
Property. There are no representations, warranties, covenants, understandings or agreements among the parties to this Agreement regarding the Sale Property or the transfer of the Sale Property
contemplated by this Agreement other than those incorporated in this Agreement. 

8.    RISK OF LOSS  

        Prior to the close of escrow, Seller shall bear all risks of loss to the Sale Property. From and after the close of escrow Buyer assumes and shall bear all risks
of loss to the Sale Property. 

9.    MISCELLANEOUS  

        9.1    Choice of Law, Courts, Attorneys' Fees.    This Agreement has been executed in Sacramento, California, and
shall be governed by and construed in accordance with the laws of the State of California. 

        In
the event of any action or proceeding between Seller and Purchaser to enforce any provision of this Agreement, the losing party shall pay to the prevailing party all costs and
expenses, including, without limitation, reasonable attorneys' fees and expenses, incurred in such action and in any appeal in connection therewith by such prevailing party. The prevailing party will
be determined by the court before whom the action was brought based upon an assessment of which party's major arguments or positions taken in the suit or proceeding could fairly be said to have
prevailed over the other party's major arguments or positions on major disputed issues in the court's decision. 

C-5

 

        IF
ANY ACTION OR PROCEEDING BETWEEN SELLER AND BUYER TO ENFORCE THE PROVISIONS OF THIS AGREEMENT PROCEEDS TO TRIAL, SELLER AND BUYER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY IN
SUCH TRIAL. Seller and Buyer agree that this paragraph constitutes a written consent to waiver of trial by jury within the meaning of California Code of Civil Procedure Section 631(a)(2), and
each party does hereby authorize and empower the other party to file this paragraph and/or this Agreement, as required, with the clerk or judge of any court of competent jurisdiction as a written
consent to waiver of jury trial. 

        9.2    Assignments.    Either party may assign this Agreement in whole or in part, voluntarily or involuntarily,
without prior written consent of the other party. Any assignment shall not relieve the assigning party of liability hereunder. 

        9.3    Time of Essence.    Time is of the essence of this Agreement and of the escrow provided for herein. 

        9.4    Integration.    This Agreement, including the Exhibits referred to herein, contains the entire agreement of the
parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements, or
understandings, oral or written, relating to the subject matter which are not fully expressed herein. This Agreement may be modified only by a writing signed by the party against whom it is sought to
be enforced. 

        9.5    Exhibits.    All Exhibits to which reference is made are deemed incorporated into this Agreement as though
fully set forth at length, whether or not actually attached. 

        9.6    Additional Documents.    Each party shall execute and deliver such documents as may be reasonably requested by
the other party to carry out the purpose and intent of this Agreement. 

        9.7    Notice.    Any notice required or desired to be given by either party to this Agreement shall be in writing and
shall be personally delivered to the address stated below, or in lieu of personal delivery, may be sent facsimile or by reputable overnight courier addressed to the other at the address listed
opposite such party's name at the end of this Agreement. Any notice given by facsimile shall also be sent by reputable overnight courier on the same day, and shall be deemed to have been given on the
day the facsimile is sent. Any notice given by overnight delivery shall be deemed to have been given on the day of delivery. Either party may, by written notice to the other in the manner aforesaid,
change the address or telephone number to which notices addressed to it shall thereafter be faxed or mailed. 

        9.8    Dependency and Survival of Provisions.    The respective warranties, representations, covenants, agreements,
obligations, and undertakings of each party hereunder shall be construed as dependent
upon and given in consideration of those of the other party, and shall survive the close of escrow and the delivery of deeds. 

        9.9    Waiver.    Waiver by one party of the performance of any covenant, condition or promise shall not invalidate
this Agreement, nor shall it be considered to be waived by such party of any other covenant, condition, or promise hereunder. The waiver by either or both parties of the time for performing any act
shall not constitute a waiver of the time for performing any other act or an identical act required to be performed at a later time. The exercise of any remedy provided by law and the provisions of
this Agreement for any remedy shall not exclude other remedies unless they are expressly excluded. 

        9.10    Drafting and Preparation.    Each party has cooperated and participated in the drafting and preparation of
this Agreement. Therefore, in any construction to be made of this agreement or any of its terms, both parties shall be construed to be equally responsible for the drafting and preparation of the same. 

C-6

 

        9.11    Defaults and Remedies of Buyer and Seller.    The following shall constitute a Default hereunder:
(i) either party defaults under any provision of this Agreement; (ii) either party defaults under any other provision of this Agreement; (iii) if at any time prior to Closing
(a) there shall be filed by either party in any court or with any governmental body pursuant to any statute either of the United States or of any state, a petition in bankruptcy or insolvency
or a petition seeking to effect any plan or other arrangement with creditors or seeking the appointment of a receiver; or (b) a receiver, conservator or liquidating agent or similar person
shall be appointed for all or a substantial portion of such party's property: or (c) a party shall give notice to any person or governmental body of insolvency or suspension or pending
suspension of its operations; or (d) a material, adverse change occurs in the financial condition of either party or either party shall make an assignment for the benefit of creditors or take
any other similar action for the protection or benefit of creditors. 

        In
the event of a Buyer Default, Seller shall have the right to keep the Deposit as its sole remedy. In the event of a Seller Default hereunder, Buyer shall have every remedy available
under California and Federal law, which shall be cumulative, including without limitation the right of specific performance and/or damages. 

C-7

 

        IN
WITNESS WHEREOF, this Agreement shall be considered executed on the latest of the dates set forth next to the signatures below. 

	Seller	 	Address and Telephone
	

/s/  CARL D. PANATTONI      
 CARL D. PANATTONI	
 	

Attention: Mel Souza

8401 Jackson Road

Sacramento, California 95826

(916) 381-1561 Tel

(916) 381-7639 Fax
	Dated:	February 27, 2001
	 	 
	

With a copy to:	
 	

Martin R. Boersma, Esq.

8413 Jackson Road, Suite C

Sacramento, California 95826

(916) 381-6171 Tel

(916) 381-1109 Fax
	
Buyer	
 	

 
	

SIMPSON MANUFACTURING CORPORATION,

a Delaware corporation	
 	

 
	

By:	

/s/  MICHAEL HERBERT      
 Michael Herbert

Chief Financial Officer	
 	

Simpson Manufacturing Corporation

Attention: Michael Herbert

4120 Dublin Boulevard, 4th Floor

Dublin, California 94568

(925) 560-9611 Tel

(925) 833-1499 Fax
	Dated:	February 23, 2001
	 	 
	

With a copy to:	
 	

Alan J. Robin, Esq.

Shartsis, Friese & Ginsburg LLP

One Maritime Plaza, 18th Floor

San Francisco, California 94111

(415) 421-6500 Tel

(415) 421-2922 Fax

        The
undersigned is executing this Agreement to evidence its agreement to be bound by the terms of the Agreement pertaining to the duties of Title Company with respect to the Deposit and
the Closing. Buyer and Seller may amend this Agreement without obtaining the consent of Title Company except as to amendments which affect the rights, duties or obligations of Title Company hereunder. 

	FIDELITY TITLE COMPANY	 	 
	

By:	

/s/  TIMOTHY P. MADDEN      
	
 	

 
	Its:	Vice President
	 	 
	

Date:	

February 27, 2001
	
 	

 

	EXHIBITS:	 	 	 	 
	

A	
 	

PRELIMINARY	
 	

TITLE	
 	

REPORT
	B	 	GRANT	 	 	 	DEED
	C	 	PROPERTY	 	 	 	DOCUMENTS

C-8

QuickLinks

EXHIBIT 10.2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]