Document:

AMENDMENT
TO RIGHTS AGREEMENT

 

1.                             General
Background.  In accordance
with Section 27 of the Rights Agreement between First Chicago Trust Company of
New York (the “Rights Agent”) and Louisiana Pacific Corporation dated May 26,
1998, (the “Agreement”), the Rights Agent and Louisiana Pacific Corporation
desire to amend the Agreement.

 

2.                             Effectiveness.  This Amendment shall be effective
as of October 17, 2001   (the
“Amendment”) and all defined terms and definitions in the Agreement shall be
the same in the Amendment except as specifically revised by the Amendment.

 

3.                             Revision.   The section in the Agreement entitled
“Change of Rights Agent” is hereby deleted in its entirety and replaced with
the following:

 

Change of Rights
Agent.  The Rights
Agent or any successor Rights Agent may resign and be discharged from its
duties under this Agreement upon 30 days’ notice in writing mailed to the
Company and to each transfer agent of the Common Shares or Preferred shares by
registered or certified mail, and to the holders of the Right Certificates by
first-class mail.  The Company may
remove the Rights Agent or any successor Rights Agent, as the case may be, and
to each transfer agent of the Common Shares or Preferred Shares by registered
or certified mail, and to the holders of the Right Certificates by first-class
mail.  If the Rights Agent shall resign
or be removed or shall otherwise become incapable of acting, the Company shall
appoint a successor to the Rights Agent. 
If the Company shall fail to make such appointment within a period of 30
days after giving notice of such removal or after it has been notified in
writing of such resignation or incapacity by the resigning or incapacitated
rights Agent or by the holder of a Right Certificate (who shall, with such notice,
submit such holder’s Right Certificate for inspection by the company), then the
registered holder of any Right Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent.  Any successor Rights Agent, whether appointed
by the Company or by such a court, shall be a corporation or trust company
organized and doing business under the laws of the United States, in good
standing, which is authorized under such laws to exercise corporate trust or
stock transfer powers and is subject to supervision or examination by federal
or state authority and which has individually or combined with an affiliate at
the time of its appointment as Rights Agent a combined capital and surplus of
at least $100 million dollars.  After
appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as 

 

 

Rights Agent
without further act or deed; but the predecessor Rights Agent shall deliver and
transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or
deed necessary for the purpose.  Not
later than the effective date of any such appointment the Company shall file
notice thereof in writing with the predecessor Rights Agent and each transfer
agent of the Common Shares or Preferred Shares, and mail a notice thereof in
writing to the registered holders of the Right Certificates.  Failure to give any notice provided for in
this Section 21, however, or any defect therein, shall not affect the legality
or validity of the resignation or removal of the Rights Agent or the
appointment of the successor Rights Agent, as the case may be.

 

4.          Except as amended hereby, the Agreement and all schedules
or exhibits thereto shall remain in full force and effect.

 

IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed in their names and
on their behalf by and through their duly authorized officers, as of this 17th
day of October, 2001.

 

	
  Louisiana
  Pacific Corporation

  	
  First
  Chicago Trust Co. of New York

  
	
   

  	
   

  	
   

  	
   

  
	
  By:  Curtis
  M. Stevens

  	
  By:  Michael
  J. Foley

  
	
  Title:  Vice
  President, Treasurer

  	
  Title:  Chief
  Marketing OfficerCREDIT
AGREEMENT

 

This CREDIT
AGREEMENT (“Agreement”) is entered into as of November 15, 2001,
among LOUISIANA-PACIFIC CORPORATION, a Delaware corporation (the “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), and BANK OF AMERICA, N.A., as the
Administrative Agent and an L/C Issuer.

 

The Borrower has
requested that the Lenders provide a revolving credit facility, and the Lenders
are willing to do so on the terms and conditions set forth herein.

 

In consideration
of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

 

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

 

1.01   Defined Terms.

 

As used in this
Agreement, the following terms shall have the meanings set forth below:

 

“Administrative
Agent” means Bank of America in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent.

 

“Administrative
Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other
address or account as the Administrative Agent may from time to time notify to
the Borrower and the Lenders.

 

“Affiliate”
means, as to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such
Person.  A Person shall be deemed to be
“controlled by” any other Person if such other Person possesses, directly or
indirectly, power (a) to vote 10% or more of the securities (on a fully diluted
basis) having ordinary voting power for the election of directors or managing
general partners; or (b) to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise.

 

“Agent/Arranger
Fee Letter” has the meaning specified in Section 2.09(b).

 

“Agent-Related
Persons” means the Administrative Agent (including any successor
administrative agent), together with its Affiliates (including, in the case of
Bank of America in its capacity as the Administrative Agent, the Arranger), and
the officers, directors, employees, agents and attorneys-in-fact of such
Persons and Affiliates.

 

“Aggregate
Commitments” has the meaning set forth in the definition of “Commitment.”

 

“Agreement”
means this Credit Agreement.

 

1

 

“Applicable
Rate” means 3.000% per annum for Eurodollar Rate Loans and 2.000% per annum
for Base Rate Loans, provided, that if Borrower’s long-term unsecured
senior debt rating falls to a level equal to or below BB- by S&P and Ba3 by
Moody’s, then “Applicable Rate” shall thereafter mean 3.750% per annum for
Eurodollar Rate Loans and 2.750% per annum for Base Rate Loans.

 

“Arrangers”
means Banc of America Securities LLC, in its capacity as joint lead arranger
and sole book manager (“BAS”) and Wachovia Securities, in its capacity
as joint lead arranger.

 

“Assignment and
Assumption Agreement” means an Assignment and Assumption Agreement
substantially in the form of Exhibit D.

 

“Attorney Costs”
means and includes all fees and disbursements of any law firm or other external
counsel and the allocated cost of internal legal services and all disbursements
of internal counsel.

 

“Attributable
Indebtedness” means, on any date, without duplication (a) in respect of any
capital lease of any Person, the implied principal component of Capital Lease
Obligations as of such date, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the
relevant lease that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP if such lease were accounted for as a
capital lease.

 

“Audited
Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended December 31, 2000, and
the related consolidated statements of income and cash flows for such fiscal
year of the Borrower and its Subsidiaries.

 

“Bank of
America” means Bank of America, N.A.

 

“BAS” has
the meaning set forth in the definition of “Arrangers.”

 

“Base Rate”
means for any day a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for
such day as publicly announced from time to time by Bank of America as its
“prime rate.”  Such “prime rate” is a
rate set by Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic conditions and other
factors, and is used as a reference point for pricing some loans, which may be
priced at, above, or below such announced rate.  Any change in such rate announced by Bank of America shall take
effect at the opening of business on the day specified in the public
announcement of such change.

 

“Base Rate Loan”
means a Loan that bears interest based on
the Base Rate.

 

“Board”
means the Board of Governors of the Federal Reserve System of the United States
of America.

 

2

 

“Borrower”
has the meaning set forth in the introductory paragraph hereto.

 

“Borrowing”
means a borrowing consisting of simultaneous Loans of the same Type and having
the same Interest Period made by each of the Lenders pursuant to Section
2.01.

 

“Business Day”
means any day other than a Saturday, Sunday, or other day on which commercial
banks are authorized to close under the Laws of, or are in fact closed in, the
state where the Administrative Agent’s Office is located and, if such day
relates to any Eurodollar Rate Loan, means any such day on which dealings in
Dollar deposits are conducted by and between banks in the applicable offshore
Dollar interbank market.

 

“Canadian
Credit Facility” means (a) a working capital credit facility for
Louisiana-Pacific Canada Ltd. from Royal Bank of Canada in the principal amount
of $25,000,000 (Canadian); and (b) a credit line up to $35,000,000 (Canadian)
for Louisiana-Pacific Canada Ltd., and its Subsidiaries, from Royal Bank of
Canada to cover principal, interest, overdrafts, fees and Swap Termination
Values, and transaction risk (including, but not limited to electronic funds
transfer and payment distribution services); each backed by a guarantee by the
Borrower, guarantees by the Subsidiaries of Louisiana-Pacific Canada Ltd.,
Liens upon the accounts receivable and inventory of Louisiana-Pacific Canada
Ltd. and its Subsidiaries, and any refinancing, refunding, renewal or extension
thereof, provided that the amount of Indebtedness thereunder is not increased
at the time of such refinancing, refunding, renewal or extension except by an
amount equal to a reasonable premium or other reasonable amount paid, and fees
and expenses reasonably incurred, in connection with such refinancing and by an
amount equal to any existing commitments unutilized thereunder.

 

“Capital Lease
Obligations” means all obligations under capital leases of Borrower and its
Subsidiaries determined on a consolidated basis, in each case taken at the
amount thereof accounted for as liabilities in accordance with GAAP.

 

“Cash”
means, in the context of consideration received or to be received by the
Borrower or any Subsidiary pursuant to a transaction that constitutes a
Disposition, (i) any liabilities of the Borrower or such Subsidiary, as shown
on its most recent balance sheet, that are assumed by the transferee in such
transaction, other than contingent liabilities and liabilities that are by
their terms subordinated to the Obligations and (ii) any securities, notes or
other obligations received by the Borrower or such Subsidiary from such
transferee that are converted into cash within 30 days following the
consummation of such Disposition to the extent of the cash received by the
Borrower or such Subsidiary in that conversion.  The term non-Cash in the context of any such consideration shall
mean all consideration that is not “Cash” under this definition.

 

“Cash
Collateral” has the meaning specified in Section 2.14(b).

 

“Cash
Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of (i) in the case of L/C Obligations,
the Administrative Agent, the L/C Issuers and the Lenders, as collateral for
the L/C Obligations and (ii) in the case of Eurodollar Rate Loans, the
Administrative Agent and the Lenders, in each case as collateral for the L/C Obligations
or certain Eurodollar Rate Loans, as the case may be, cash or deposit account 

 

3

 

balances pursuant
to documentation in form and substance reasonably satisfactory to the
Administrative Agent and, if applicable, the L/C Issuers (which documents are
hereby consented to by the Lenders). 
Derivatives of such term shall have corresponding meaning.  If a Default or Event of Default has
occurred and is continuing, Cash Collateral shall be maintained in blocked
non-interest bearing deposit accounts at Bank of America.  If no Default or Event of Default has
occurred and is continuing, Cash Collateral shall be, at the Borrower’s option,
(x) maintained in blocked interest bearing deposit accounts at Bank of America
or (y) invested in such other Cash Equivalents as directed by the Borrower and
for which the Borrower shall have provided evidence reasonably satisfactory to
the Administrative Agent that the Administrative Agent shall have a perfected,
first priority security interest in such Cash Collateral.

 

“Cash
Equivalents” means (a) Dollars; (b) securities issued or directly and fully
guaranteed or insured by the United States government or any Governmental
Authority thereof (provided that the full faith and credit of the United States
is pledged in support of those securities) having maturities of not more than
six months from the date of acquisition; (c) certificates of deposit and
eurodollar time deposits with maturities of six months or less from the date of
acquisition, bankers’ acceptances with maturities not exceeding six months and
overnight bank deposits, in each case, with any Lender or with any domestic
commercial bank having capital and surplus in excess of $500,000,000 and a
Thomson Bank Watch Rating of “B” or better; (d) repurchase obligations with a
term of not more than seven days for underlying securities of the types
described in clauses (b) and (c) above entered into with any financial
institution meeting the qualifications in clause (c) above; (e) commercial
paper having the highest rating obtainable from either Moody’s or S&P and,
in each case maturing within six months after the date of acquisition; and (f)
money market funds at least 95% of the assets of which constitute Cash
Equivalents of the kinds described in clauses (a) through (e) above.

 

“Change of
Control” means, with respect to any Person, an event or series of events by
which:

 

(a)  any “person” or “group” (as such terms are
used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but
excluding any employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of any such plan), becomes the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a
person or group shall be deemed to have “beneficial ownership” of all
securities that such person or group has the right to acquire (such right, an “option
right”), whether such right is exercisable immediately or only after the
passage of time), directly or indirectly, of 30% or more of the Stock of such
Person entitled to vote for members of the board of directors or equivalent
governing body of such Person on a partially diluted basis (i.e., taking into
account all such securities that such person or group has the right to acquire
pursuant to any option rights in both the dividend and divisor used in
calculating such percentage); or

 

(b)  during any period of 12 consecutive months,
a majority of the members of the board of directors or other equivalent
governing body of such Person cease to be 

 

4

 

composed of
individuals (i) who were members of that board or equivalent governing body on
the first day of such period, (ii) whose election or nomination to that board
or equivalent governing body was approved by individuals referred to in clause
(i) above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved by
individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of that board or equivalent
governing body.

 

“Closing Date”
means the first date all the conditions precedent in Section 4.01 are
satisfied or waived in accordance with Section 4.01 (or, in the case of Section
4.01(b), waived by the Person entitled to receive the applicable payment).

 

“Code”
means the Internal Revenue Code of 1986.

 

“Collateral”
means (a) all Cash Collateral and (b) all property covered by the Collateral
Documents and any other property, real or personal, tangible or intangible, now
existing or hereafter acquired, that is subject to a security interest or Lien
in favor of the Administrative Agent, on behalf of itself and the Lenders, to
secure the Obligations.

 

“Collateral
Coverage Ratio” means, at any date of determination, the ratio of (a) the
Deemed Mortgaged Property Value to (b) the Aggregate Commitments

 

“Collateral
Documents” means, collectively, all documents with respect to Cash
Collateral, the Deed of Trust, the Security Agreement, the Pledge Agreement,
and all other security agreements, mortgages, deeds of trust, patent, trademark
and copyright assignments, lease assignments, guarantees and other similar
agreements between the Borrower, any of its Subsidiaries and the Lenders, or
the Administrative Agent for the benefit of the Lenders, now or hereafter
delivered (pursuant to Section 6.13 or otherwise) to the Lenders or the
Administrative Agent pursuant to or in connection with the transactions
contemplated hereby, and all financing statements (or comparable documents now
or hereafter filed in accordance with the UCC or comparable law) against the
Borrower or any of its Subsidiaries, as debtor, in favor of the Lenders, or the
Administrative Agent for the benefit of itself and the Lenders, as secured
party.

 

“Commitment”
means, as to each Lender, its obligation to (a) make Loans to the Borrower
pursuant to Section 2.01, and (b) purchase participations in L/C
Obligations, in an aggregate principal amount at any one time outstanding not
to exceed the amount set forth opposite such Lender’s name on Schedule 2.01,
as such amount may be reduced or adjusted from time to time in accordance with
this Agreement (collectively, the “Aggregate Commitments”).

 

“Commitment Fee
Percentage” means 0.750% per annum, provided, that if Borrower’s
long-term unsecured senior debt rating falls to a level equal to or below BB-
by S&P and Ba3 by Moody’s, then “Commitment Fee Percentage” shall
thereafter mean 0.875%.

 

“Compiance
Certificate” means a certificate substantially in the form of Exhibit C.

 

5

 

“Consolidated
EBITDDA” means, as measured quarterly on the last day of each fiscal
quarter for the four quarters then ending, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to the sum of
(a) Consolidated Net Income, (b) Consolidated Interest Charges, (c) the
amount of taxes, based on or measured by income, used or included in the
determination of such Consolidated Net Income, and (d) the amount of
depreciation, depletion and amortization expense deducted in determining such
Consolidated Net Income.

 

“Consolidated
Funded Indebtedness” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, (a) the sum, without
duplication, of (i) the outstanding principal amount of all obligations,
whether current or long-term, for borrowed money (including Obligations
hereunder, under the Permitted Securitization, and under the Indentures) and
all obligations evidenced by bonds, debentures, notes, loan agreements or other
similar instruments (excluding contingent reimbursement obligations for undrawn
letters of credit and outstanding surety bonds, each in the ordinary course of
business), (ii) Attributable Indebtedness in respect of capital leases and
Synthetic Lease Obligations, (iii) unfunded reserves maintained with respect to
pending or threatened disputes or settlement thereof, and (iv) all Guaranty
Obligations with respect to Indebtedness of the types specified in subsections
(i), (ii) and (iii) above of Persons other than the Borrower or any Subsidiary,
minus (b) all such Indebtedness (other than Indebtedness under the
Permitted Securitization) included in subsection (a) above that is (x)
Non-Recourse to the Borrower and its Subsidiaries or (y) recourse to L-P SPV,
Inc., L-P SPV2, LLC, or any other Subsidiary of the Borrower that is a special
purpose subsidiary created for the consummation of a financing transaction on
terms and conditions satisfactory to the Administrative Agent and the Required
Lenders, but only to the extent that such Indebtedness is Non-Recourse to the
Borrower and its Subsidiaries other than L-P SPV, Inc., L-P SPV2, LLC, or such
other Subsidiary, as applicable.

 

“Consolidated
Interest Charges” means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, (a) the sum of (i) all interest and the
amortization of all premium payments, fees, charges and related expenses of the
Borrower and its Subsidiaries, determined on a consolidated basis, in connection
with borrowed money (including capitalized interest) or in connection with the
deferred purchase price of assets, in each case to the extent treated as
interest in accordance with GAAP, and (ii) the portion of rent expense of the
Borrower and its Subsidiaries, determined on a consolidated basis, with respect
to such period under capital leases that is treated as interest in accordance
with GAAP minus (b) interest income on the Timber Notes Receivable, up
to the amount, if any, that the interest expense in such period on the senior
notes secured by the Timber Notes Receivable is treated as interest in
accordance with GAAP.

 

“Consolidated
Net Income” means, for any period, for the Borrower and its Subsidiaries on
a consolidated basis, the net income of the Borrower and its Subsidiaries from
continuing operations for that period, including gains or losses from
Dispositions of assets, but excluding (i) up to $50,000,000 (in the aggregate)
in other non-cash extraordinary items and non-cash gains or losses arising from
(A) the pulp mill located in Samoa, California, (B) the pulp mill located in
Chetwynd, British Columbia, (C) the 65% interest in a joint venture in Ireland
that has an oriented strand board (OSB) mill, and (D) the Borrower’s industrial
panel products segment and 

 

6

 

(ii) up to
$10,000,000 in cash losses associated with the closure of the pulp mill located
in Chetwynd, British Columbia.

 

“Contractual
Obligation” means, as to any Person, any provision of any outstanding Stock
issued by such Person or of any agreement, instrument or other undertaking to
which such Person is a party or by which it or any of its property is bound.

 

“Credit
Extension” means each of the following: (a) a Borrowing, and (b) an L/C
Credit Extension.

 

“Debt to
Capitalization Ratio” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, the ratio, expressed as
a percentage, of (a) Consolidated Funded Indebtedness, to (b) the sum of (i)
Consolidated Funded Indebtedness and (ii) Shareholders’ Equity.

 

“Debtor Relief
Laws” means the Bankruptcy Code of the United States of America, and all
other liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States of America or other
applicable jurisdictions from time to time in effect and affecting the rights
of creditors generally.

 

“Deed of Trust”
means, collectively, each of the thirteen Deeds of Trust, substantially in the
form attached hereto as Exhibit F, dated as of the Closing Date,
executed by the Borrower in favor of the Administrative Agent, for the benefit
of itself and the Lenders, and each deed of trust, mortgage or similar
instrument executed and delivered to the Administrative Agent pursuant hereto
or otherwise in connection herewith.

 

“Deemed
Mortgaged Property Value” means the value of the Mortgaged Property that is
covered by title insurance with exceptions reasonably acceptable to the
Administrative Agent, according to the most recent appraisal conducted pursuant
to either Section 4.01(a)(viii), 6.01(d), or 6.01(e) or,
if the most recent Quarterly Timber Report is more recent, the sum of (a) 70%
of the Retail Timberlands Value plus (b) the product of (i) the Mortgaged
Property Per-Acre Value times (ii) the number of acres of Mortgaged Property
that is covered by title insurance with exceptions reasonably acceptable to the
Administrative Agent.

 

“Default”
means any event that, with the giving of any notice, the passage of time, or
both, would be an Event of Default.

 

“Default Rate”
means an interest rate equal to (a) the Base Rate plus (b) the
Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per
annum; provided, however, that with respect to a Eurodollar Rate
Loan, the Default Rate shall be an interest rate equal to the interest rate
(including any Applicable Rate) otherwise applicable to such Loan plus 2% per
annum, in each case to the fullest extent permitted by applicable Laws; and
further provided, that in no event shall the Default Rate exceed the
Maximum Rate.

 

7

 

“Disposition”
or “Dispose” means, with respect to any Person, the sale, transfer,
license or other disposition (including any sale and leaseback transaction) of
any property (other than the Stock of such Person) by such Person, including
any sale, assignment, transfer or other disposal, with or without recourse, of
any notes or accounts receivable or any rights and claims associated therewith.

 

“Dissolving
Subsidiary” has the meaning specified in Section 3.08.

 

“Dollar”
and “$” means lawful money of the United States of America unless
otherwise specified.

 

“Domestic
Subsidiary” means a Subsidiary organized under the laws of one of the
United States or subdivision thereof.

 

“EBIT”
means, with respect to any Person, as measured in accordance with GAAP and
quarterly on the last day of each fiscal quarter for the four quarters then
ending, an amount equal to, without duplication, the sum of (i) consolidated
net income (or net loss) for such period, plus (ii) consolidated interest
charges to the extent included in the determination of such consolidated net
income (or loss), plus (iii) all accrued taxes on or measured by income to the
extent included in the determination of such consolidated net income (or loss);
provided, that consolidated net income (or loss) shall be computed for these
purposes without giving effect to extraordinary losses or extraordinary gains
or to any gains or losses associated with the sale or write-down of assets
outside the ordinary course of business.

 

“Eligible
Assignee” has the meaning specified in Section 10.07(h).

 

“Environmental
Laws” means all Laws relating to environmental, health, safety and land use
matters applicable to any property.

 

“Environmental
Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or
indemnities), of the Borrower or any other Loan Party directly or indirectly
resulting from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment, or disposal of
any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the
release or threatened release of any Hazardous Materials into the environment
or (c) any contract, agreement or other consensual arrangement pursuant to
which liability is assumed or imposed with respect to any of the foregoing.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 and any regulations
issued pursuant thereto.

 

“ERISA
Affiliate” means any trade or business (whether or not incorporated) under
common control with the Borrower within the meaning of Section 414(b) or (c) of
the Code (and Sections 414(m) and (o) of the Code for purposes of provisions
relating to Section 412 of the Code).

 

8

 

“ERISA Event”
means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal
by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section
4063 of ERISA during a plan year in which it was a substantial employer (as
defined in Section 4001(a)(2) of ERISA) or a cessation of operations that
is treated as such a withdrawal under Section 4062(e) of ERISA which could
reasonably be expected to give rise to any liability with respect to such
withdrawal; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate
from a Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Sections 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which might reasonably be
expected to constitute grounds under Section 4042 of ERISA for the termination
of, or the appointment of a trustee to administer, any Pension Plan or
Multiemployer Plan; or (f) the imposition of any liability under Title IV of
ERISA, other than PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon the Borrower or any ERISA Affiliate.

 

“Eurodollar
Base Rate” has the meaning set forth in the definition of “Eurodollar
Rate.”

 

“Eurodollar
Rate” means for any Interest Period with respect to any Eurodollar Rate
Loan, a rate per annum determined by the Administrative Agent pursuant to the
following formula:

 

	
  Eurodollar
  Rate  =

  	
  Eurodollar Base
  Rate

  	
   

  
	
  1.00 – Eurodollar
  Reserve Percentage

  

 

Where,

 

“Eurodollar
Base Rate” means, for such Interest Period:

 

(a)  the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate that appears on
the page of the Telerate screen that displays an average British Bankers
Association Interest Settlement Rate for deposits in Dollars (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest
Period, determined as of approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period, or

 

(b)  in the event the rate referenced in the
preceding subsection (a) does not appear on such page or service or such page
or service shall cease to be available, the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate on such other
page or other service that displays an average British Bankers Association
Interest Settlement Rate for deposits in Dollars (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest Period,
determined as of approximately 11:00 a.m. (London time) two Business Days prior
to the first day of such Interest Period, or

 

(c)  in the event the rates referenced in the
preceding subsections (a) and (b) are not available, the rate per annum
determined by the Administrative Agent as the rate of 

 

9

 

interest (rounded
upward to the next 1/100th of 1%) at which deposits in Dollars for delivery on
the first day of such Interest Period in same day funds in the approximate
amount of the Eurodollar Rate Loan being made, continued or converted by Bank
of America and with a term equivalent to such Interest Period would be offered
by Bank of America’s London Branch to major banks in the offshore Dollar market
at their request at approximately 11:00 a.m. (London time) two Business Days
prior to the first day of such Interest Period.

 

“Eurodollar
Rate Loan” means a Loan that bears interest at a rate based on the
Eurodollar Rate.

 

“Eurodollar
Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, rounded upward to the next 1/100th
of 1%) in effect on such day, whether or not applicable to any Lender, under
regulations issued from time to time by the Board for determining the maximum
reserve requirement (including any emergency, supplemental or other marginal
reserve requirement) with respect to Eurocurrency funding (currently referred
to as “Eurocurrency liabilities”).  The
Eurodollar Rate for each outstanding Eurodollar Rate Loan shall be adjusted
automatically as of the effective date of any change in the Eurodollar Reserve
Percentage.

 

“Event of
Default” means any of the events or circumstances specified in Article
VIII.

 

“Evergreen
Letter of Credit” has the meaning specified in Section 2.03(b)(iii).

 

“Excess
Proceeds” has the meaning specified in Section 7.05(j)(iv).

 

“Existing
Credit Facility” means the Credit Agreement dated as of January 31, 1997
among the Borrower, Bank of America, as agent, and a syndicate of lenders.

 

“Existing
Hedging Obligations” of any Person means all liabilities of such Person
under the Swap Contracts existing as of the Closing Date and identified on Schedule
1.01.

 

“Existing
Letters of Credit” has the meaning specified in Section 2.03(l).

 

“Federal Funds
Rate” means, for any day, the rate per annum (rounded upwards to the
nearest 1/100 of 1%) equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers on such day, as published by the Federal Reserve Bank
on the Business Day next succeeding such day; provided that (a) if such
day is not a Business Day, the Federal Funds Rate for such day shall be such
rate on such transactions on the next preceding Business Day as so published on
the next succeeding Business Day, and (b) if no such rate is so published on
such next succeeding Business Day, the Federal Funds Rate for such day shall be
the average rate charged to Bank of America on such day on such transactions as
determined by the Administrative Agent.

 

“Foreign Lender”
has the meaning specified in Section 10.15.

 

“Foreign
Subsidiary” means a Subsidiary that is not a Domestic Subsidiary.

 

10

 

“Forex
Agreement” means the Standby Purchase and Note Support Agreement dated
August 16, 1999 by and among the Borrower, Bank of America, and Canadian Imperial
Bank of Commerce, as amended by (a) the Waiver and First Amendment to Standby
Purchase and Note Support Agreement dated July 18, 2001 and (b) the Second
Amendment to Standby Purchase and Note Support Agreement dated as of the date
hereof.

 

“Forex Obligation”
means the Borrower’s obligations under the Forex Agreement.

 

“GAAP”
means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession, that are applicable to the
circumstances as of the date of determination, consistently applied.

 

“Governmental
Authority” means any nation or government, any state or other political
subdivision thereof, any agency, authority, instrumentality, regulatory body,
court, administrative tribunal, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers
or functions of or pertaining to government, and any corporation or other entity owned or controlled, through stock or
capital ownership or otherwise, by any of the foregoing.

 

“Guarantors”
means any Person required under Section 6.13(a) to execute a Guaranty.

 

“Guaranty”
means any guaranty executed pursuant to Section 6.13(a).

 

“Guaranty
Obligation” means, as to any Person, (a) any obligation, contingent or
otherwise, of such Person guarantying or having the economic effect of
guarantying any Indebtedness or other obligation payable or performable by
another Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect,
(i) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation, (ii) to purchase or lease property,
securities or services for the purpose of assuring the obligee in respect of
such Indebtedness or other obligation of the payment or performance of such
Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other
manner the obligee in respect of such Indebtedness or other obligation of the
payment or performance thereof or to protect such obligee against loss in
respect thereof (in whole or in part), or (b) any Lien on any assets of such
Person securing any Indebtedness or other obligation of any other Person,
whether or not such Indebtedness or other obligation is assumed by such Person (to
the extent of the greater of book and fair market value of such assets); provided,
however, that the term “Guaranty Obligation” shall not include
endorsements of instruments for deposit or collection in the ordinary course of
business.  The amount of any Guaranty
Obligation shall be deemed to be an amount equal to the stated or determinable
amount of the related primary obligation, or portion thereof, in respect of
which such Guaranty Obligation is made or, if not stated or determinable, 

 

11

 

the maximum
reasonably anticipated liability in respect thereof as determined by the
guarantying Person in good faith.

 

“Hazardous
Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum
or petroleum distillates, asbestos or asbestos-containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all
other substances or wastes of any nature regulated pursuant to any
Environmental Law.

 

“Hedging Lender”
shall mean any Affiliate of any Lender that is a party to Swap Contracts
evidencing Hedging Obligations but is not a signatory to this Agreement.

 

“Hedging
Obligations” of any Person means the Existing Hedging Obligations of such
Person and all other liabilities of such Person under Swap Contracts entered
into with any Lender or an Affiliate of any Lender with the written consent of
the Administrative Agent, including in any case termination obligations
thereunder; provided, however, that such liabilities under a Swap
Contract (a) with an Affiliate of a Lender shall not constitute Hedging
Obligations hereunder unless and until such liabilities are certified as such
in writing to the Administrative Agent by the Borrower and such Lender
Affiliate and (b) shall constitute Hedging Obligations hereunder only up to an
aggregate notional amount of $25,000,000 (excluding the Existing Hedging
Obligations).

 

“Honor Date”
has the meaning specified in Section 2.03(c)(i).

 

“Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following:

 

(a)  all obligations of such Person for borrowed
money and all obligations of such Person evidenced by bonds, debentures, notes,
loan agreements or other similar instruments;

 

(b)  all direct or contingent obligations of such
Person arising under letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds and similar instruments;

 

(c)  net obligations under any Swap Contract in
an amount equal to the Swap Termination Value thereof;

 

(d)  all obligations of such Person to pay the
deferred purchase price of property or services (other than trade accounts
payable in the ordinary course of business);

 

(e)  indebtedness (excluding prepaid interest
thereon) secured by a Lien on property owned or being purchased by such Person
(including indebtedness arising under conditional sales or other title
retention agreements), whether or not such indebtedness shall have been assumed
by such Person or is limited in recourse;

 

12

 

(f)  Capital Lease Obligations and Synthetic
Lease Obligations; and

 

(g)  all Guaranty Obligations of such Person in
respect of any of the foregoing.

 

For all purposes
hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture in which such Person is a general partner or a
joint venturer, unless (i) such Indebtedness is Non-Recourse to such Person subject
only to customary exceptions reasonably acceptable to the Administrative Agent
or (ii) such Indebtedness is Non-Recourse to such Person as a matter of law by
virtue of the organizational structure of the partnership or joint venture.  The amount of any Capital Lease Obligation
or Synthetic Lease Obligation as of any date shall be deemed to be the amount
of Attributable Indebtedness in respect thereof as of such date.

 

“Indemnified
Liabilities” has the meaning set forth in Section 10.05.

 

“Indemnitees”
has the meaning set forth in Section 10.05.

 

“Indentures”
means, collectively, the Senior Note Indentures and the Senior Subordinated
Note Indenture.

 

“Intercreditor
Agreement” means the intercreditor agreement, substantially in the form
attached hereto as Exhibit G, dated as of the Closing Date, between the
Administrative Agent on behalf of the Lenders, on the one hand, and Bank of
America and Canadian Imperial Bank of Commerce, a Canadian chartered bank, on
the other hand.

 

“Interest
Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan; provided, however,
that if any Interest Period for a Eurodollar Rate Loan exceeds three months,
the respective dates that fall every three months after the beginning of such
Interest Period shall also be Interest Payment Dates; and (b) as to any Base
Rate Loan, the last Business Day of each March, June, September and December
and the Maturity Date.

 

“Interest
Period” means, with respect to each Eurodollar Rate Loan, the period
commencing on the date such Eurodollar Rate Loan is disbursed or converted to
or continued as a Eurodollar Rate Loan and ending on the date one, two, three
or six months thereafter, as selected by the Borrower in its Loan Notice; provided
that:

 

(i)      any Interest Period that would otherwise
end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless, in the case of a Eurodollar Rate Loan, such
Business Day falls in another calendar month, in which case such Interest
Period shall end on the next preceding Business Day;

 

(ii)      any Interest Period pertaining to a
Eurodollar Rate Loan that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall end on the last
Business Day of the calendar month at the end of such Interest Period; and

 

13

 

(iii)     no Interest Period shall extend beyond the
scheduled Maturity Date.

 

“Investment”
means, as to any Person, any acquisition or investment by such Person, whether
by means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution to,
guaranty of debt of, or purchase or other acquisition of any other debt or
equity participation or interest in, another Person, including any partnership
or joint venture interest in such other Person, or (c) the purchase or other
acquisition (in one transaction or a series of transactions) of assets of
another Person that constitute a business unit.  For purposes of covenant compliance, the amount of any Investment
shall be the amount actually invested, net of payment, redemption, dividends
and other distributions on account of such Investment received by such Person,
but without adjustment for subsequent increases or decreases in the value of
such Investment and without giving effect to any write-downs with respect to
such Investment on such Person’s balance sheet.

 

“IRS” means
the United States Internal Revenue Service.

 

“Laws”
means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative
or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable
administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case
whether or not having the force of law.

 

“L/C Advance”
means, with respect to each Lender, such Lender’s participation in any L/C Borrowing
in accordance with its Pro Rata Share.

 

“L/C Borrowing”
means an extension of credit resulting from a drawing under any Letter of
Credit which has not been reimbursed on the date when made or refinanced as a
Borrowing.

 

“L/C Credit
Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the renewal or increase of
the amount thereof.

 

“L/C Issuer”
means (a) Bank of America in its capacity as issuer of Letters of Credit (other
than Existing Letters of Credit) hereunder, or any successor issuer of Letters
of Credit (other than Existing Letters of Credit) hereunder and (b) subject to
the limitations contained in Section 2.03(l), Wachovia, or any successor
to Wachovia, in its capacity as the issuer of the Existing Letters of Credit.

 

“L/C
Obligations” means, as at any date of determination, the aggregate undrawn
face amount of all outstanding Letters of Credit plus the aggregate of
all Unreimbursed Amounts, including all L/C Borrowings, but excluding any
Unreimbursed Amounts to the extent that they have been refinanced by Borrowings
of Base Rate Loans as of such date.

 

14

 

“Lender”
has the meaning specified in the introductory paragraph hereto and, as the
context requires, shall include the L/C Issuers and any Affiliate of a Lender
to the extent it is owed Hedging Obligations as provided in the definition
thereof.

 

“Lending Office”
means, as to any Lender, the office or offices of such Lender described as such
on Schedule 10.02, or such other office or offices as a Lender may from
time to time notify the Borrower and the Administrative Agent.

 

“Letter of
Credit” means any letter of credit issued hereunder and shall include the
Existing Letters of Credit.

 

“Letter of
Credit Application” means an application and agreement for the issuance or
amendment of a letter of credit in the form from time to time in use by the
relevant L/C Issuer.

 

“Letter of
Credit Expiration Date” means the day that is seven days prior to the
Maturity Date (or, if such day is not a Business Day, the immediately preceding
Business Day).

 

“Letter of
Credit Sublimit” means an amount equal to the lesser of the Aggregate
Commitments and $100,000,000.  The
Letter of Credit Sublimit is part of, and not in addition to, the Aggregate
Commitments.

 

“Lien”
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement of any kind or nature
whatsoever (including any conditional sale or other title retention agreement,
any financing lease having substantially the same economic effect as any of the
foregoing, and the due filing of any financing statement under the Uniform
Commercial Code or comparable Laws of any jurisdiction), including the interest
of a purchaser of accounts receivable.

 

“Loan” has
the meaning specified in Section 2.01.

 

“Loan Documents”
means this Agreement, each Collateral Document, the Agent/Arranger Fee Letter,
each Request for Credit Extension, each Compliance Certificate, each Guaranty,
the Intercreditor Agreement, any Swap Contracts evidencing Hedging Obligations,
and all other documents executed by a Loan Party and delivered to the
Administrative Agent or any Lender pursuant thereto.

 

“Loan Notice”
means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to
the other, or (c) a continuation of Loans as the same Type, pursuant to Section
2.02(a), which, if in writing, shall be substantially in the form of Exhibit
A.

 

“Loan Parties”
means, collectively, the Borrower, each Guarantor, and each Subsidiary whose
Stock is pledged under any Pledge Agreement.

 

“Material
Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, condition (financial
or otherwise) or prospects 

 

15

 

of the Borrower or
the Borrower and its Subsidiaries taken as a whole; (b) a material impairment
of the ability of any Loan Party to perform its obligations under any Loan
Document to which it is a party; or (c) a material adverse effect upon the
legality, validity, binding effect or enforceability against any Loan Party of
any Loan Document to which it is a party.

 

“Maturity Date”
means (a) January 31, 2004, or (b) such earlier date upon which the Commitments
may be terminated in accordance with the terms hereof.

 

“Maximum Rate”
has the meaning specified in Section 10.10.

 

“Merchantable
Timber Inventory” means, as of the Closing Date, the number of thousands of
board feet of merchantable timber inventory as set forth in the appraisal
conducted pursuant to Section 4.01(a)(viii), as thereafter adjusted for
purchases and sales, timber harvests and growth, all with respect to growing
timber on the Mortgaged Property as set forth in the most recent of (a) the
most recent Quarterly Timber Report and (b) the most recent appraisal conducted
pursuant to either Section 4.01(a)(viii), 6.01(d), or 6.01(e).

 

“Moody’s”
means Moody’s Investors Service, Inc.

 

“Mortgaged
Property” means, at any time, all property subject to a Lien pursuant to
the Deed of Trust at such time.

 

“Mortgaged
Property Per-Acre Value” means an average Dollar value per acre of the land
comprising the Mortgaged Property as determined pursuant to the most recent of
(a) the most recent Quarterly Timber Report and (b) the most recent appraisal
conducted pursuant to either Section 4.01(a)(viii), 6.01(d), or 6.01(e).

 

“Multiemployer
Plan” means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate
makes or is obligated to make contributions, or during the preceding three
calendar years, has made or been obligated to make contributions.

 

“Net
Disposition Proceeds” means, as to any Disposition, proceeds in cash,
checks or other Cash Equivalents as and when received by such Person, net
of:  (a) the direct costs relating to
such Disposition excluding amounts payable to such Person or any Affiliate of
such person, (b) sales, use or other transaction taxes paid or payable by such
Person as a direct result thereof,  (c)
amounts required to be applied to repay principal, interest and prepayment
premiums and penalties on Indebtedness secured by the asset which is the
subject of such Disposition, and (d) income taxes payable on account of such
Disposition.

 

“Net Issuance
Proceeds” means, as to any issuance of equity or incurrence of Indebtedness
by any Person, cash proceeds received by such Person in connection therewith,
net of out-of-pocket costs and expenses paid or incurred in connection
therewith.

 

“Non-Recourse”
means, with respect to Indebtedness of any Person, Indebtedness:  (a) as to which neither such Person, a
Subsidiary of such Person, nor any Person of which such Person 

 

16

 

is a Subsidiary,
(i) provides credit support of any kind (including any undertaking, agreement
or instrument that would constitute Indebtedness but excluding any agreement to
provide managerial support), (ii) is directly or indirectly liable as a
guarantor or otherwise, or (iii) constitutes the lender; and (b) in respect of
which no default would permit upon notice, lapse of time or both any holder of
any other Indebtedness (other than the Obligations) of such Person, a
Subsidiary of such Person, or any Person of which such Person is a Subsidiary,
to declare a default on such other Indebtedness or cause the payment thereof to
be accelerated or payable prior to its stated maturity.

 

“Nonrenewal
Notice Date” has the meaning specified in Section 2.03(b)(iii).

 

“Obligations”
means the Hedging Obligations and all advances to, and debts, liabilities,
obligations, covenants and duties of, any Loan Party arising under any Loan
Document, whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising
and including interest that accrues after the commencement by or against any Loan
Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws
naming such Person as the debtor in such proceeding.

 

“Organization
Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws; (b) with respect to any limited
liability company, the articles of formation and operating agreement; and (c)
with respect to any partnership, joint venture, trust or other form of business
entity, the partnership, joint venture or other applicable agreement of
formation and any agreement, instrument, filing or notice with respect thereto
filed in connection with its formation with the secretary of state or other
department in the state of its formation, in each case as amended from time to
time.

 

“Other Taxes”
has the meaning specified in Section 3.01(b).

 

“Outstanding
Amount” means (i) with respect to Loans on any date, the aggregate
outstanding principal amount thereof after giving effect to any borrowings and
prepayments or repayments of Loans occurring on such date; and (ii) with
respect to any L/C Obligations on any date, the amount of such L/C Obligations
on such date after giving effect to any L/C Credit Extension occurring on such
date and any other changes in the aggregate amount of the L/C Obligations as of
such date, including as a result of any reimbursements of outstanding unpaid
drawings under any Letters of Credit or any reductions in the maximum amount
available for drawing under Letters of Credit taking effect on such date.

 

“Participant”
has the meaning specified in Section 10.07(d).

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“Pension Plan”
means any “employee pension benefit plan” (as such term is defined in Section
3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of
ERISA and is sponsored or maintained by the Borrower or any ERISA Affiliate or
to which the Borrower or any ERISA Affiliate contributes or has an obligation
to contribute, or in the case of 

 

17

 

a multiple
employer plan (as described in Section 4064(a) of ERISA) has made contributions
at any time during the immediately preceding five plan years.

 

“Permitted
Business” means any business conducted by the Borrower on the Closing Date and
any reasonable extension thereof.

 

“Permitted
Securitization” means the securitization of the accounts receivable of the
Borrower and its Subsidiaries up to an amount of approximately $125,000,000 at
any time outstanding on terms and conditions set forth in the “Transaction
Documents” as defined in the Permitted Securitization Credit and Security
Agreement and any refinancings, refundings, renewals or extensions thereof; provided
that the amount of Indebtedness thereunder is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses
reasonably incurred, in connection with such refinancing and by an amount equal
to any existing commitments unutilized thereunder.

 

“Permitted
Securitization Credit and Security Agreement” means the Credit and Security
Agreement, dated on or about the date hereof, among the Borrower, the
Securitization Subsidiary, Blue Ridge Asset Funding Corporation, and the other
parties thereto.

 

“Person”
means any individual, trustee, corporation, general partnership, limited
partnership, limited liability company, unlimited liability company, joint
stock company, trust, unincorporated organization, bank, business association,
firm, joint venture or Governmental Authority.

 

“Plan”
means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by the Borrower or any ERISA Affiliate.

 

“Pledge
Agreement” means the Pledge Agreement, substantially in the form attached
hereto as Exhibit H, dated as of the Closing Date, executed by the
Borrower in favor of the Administrative Agent for the benefit of itself and the
Lenders.

 

“Pledged
Collateral” shall have the meaning specified in the Pledge Agreement, which
shall at all such times include the Stock of 3047525 Nova Scotia Company and
3047526 Nova Scotia Company.

 

“Pro Rata Share”
means, with respect to each Lender, the percentage of the Aggregate Commitments
specified set forth opposite the name of such Lender on Schedule 2.01,
as such share may be adjusted (carried out to the ninth decimal place) as
contemplated herein.

 

“Quarterly
Timber Report” has the meaning specified in Section 6.01(d).

 

“Register”
has the meaning specified in Section 10.07(c).

 

“Replacement
Assets” means either (a) long-term assets that will be used or useful in a
Permitted Business, (b) substantially all of the assets of another Permitted
Business, or (c) a 

 

18

 

majority of the
Stock entitled to vote (determined without regard to any voting power that has
been or may be conferred by any class or classes of Stock by reason of the
occurrence of any contingency) at such time in the election of the Board of
Directors of any Person engaged in a Permitted Business that will become on the
date of acquisition thereof a Subsidiary as a result of such acquisition.

 

“Reportable
Event” means any of the events set forth in Section 4043(c) of ERISA, other
than events for which the 30 day notice period has been waived.

 

“Request for
Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Loans, a Loan Notice, and (b) with respect to an L/C Credit
Extension, a Letter of Credit Application.

 

“Required
Lenders” means, as of any date of determination, Lenders whose Voting
Percentages aggregate more than 66 2/3%.

 

“Responsible
Officer” means the chief executive officer, president, chief financial
officer, treasurer, assistant treasurer or controller of a Loan Party.  Any document delivered hereunder that is
signed by a Responsible Officer of a Loan Party shall be conclusively presumed
to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be
conclusively presumed to have acted on behalf of such Loan Party.

 

“Restricted
Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock of the Borrower
or any Subsidiary, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of
any such capital stock or of any option, warrant or other right to acquire any
such capital stock.

 

“Retail
Timberlands Value” means, for any date, the product of (a) the arithmetic
average price per thousand board feet of sawlogs weighted by grade and species
(as reported by an outside index or reporting service acceptable to the
Administrative Agent and the Required Lenders) for the twelve months preceding
such date (net of any applicable log and haul costs per thousand board feet
during such twelve months); and (b) the Merchantable Timber Inventory of the
Borrower and its Subsidiaries as adjusted on or most recently before such date
pursuant to the definition thereof in this Section 1.01.

 

“S&P”
means Standard and Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

 

“Securitization
Subsidiary” means the Subsidiary created by the Borrower as a special
purpose vehicle in order to carry out the Permitted Securitization.

 

19

 

“Security
Agreement” means the Security Agreement, substantially in the form attached
hereto as Exhibit I, dated as of the Closing Date, executed by the
Borrower in favor of the Administrative Agent for the benefit of itself and the
Lenders.

 

“Senior Note
Indentures” means, collectively, (a) the First Supplemental Trust
Indenture, dated as of August 18, 2000, between the Borrower and Bank One Trust
Company, N.A. as Trustee, supplementing the Indenture dated as of April 2,
1999, authorizing the issuance and delivery of up to $190,000,000 aggregate
principal amount of 8.500% senior notes due 2005, and (b) the Second
Supplemental Trust Indenture, dated as of August 18, 2000, between the Borrower
and Bank One Trust Company, N.A. as Trustee, supplementing the Indenture dated
as of April 2, 1999, authorizing the issuance and delivery of up to
$200,000,000 aggregate principal amount of 8.875% senior notes due 2010.

 

“Senior
Subordinated Note Indenture” means the Third Supplemental Trust Indenture,
dated as of August 13, 2001, between the Borrower and Bank One Trust Company,
N.A. as Trustee, supplementing the Indenture dated as of April 2, 1999,
authorizing the issuance and delivery of up to $300,000,000 aggregate principal
amount of 10.875% senior subordinated notes due 2008.

 

“Shareholders’
Equity” means, as of any date of determination for the Borrower and its
Subsidiaries on a consolidated basis, shareholders’ equity as of that date
determined in accordance with GAAP, but excluding (a) up to $10,000,000 in cash
losses associated with the closure of the pulp mill located in Chetwynd,
British Columbia, and (b) up to $50,000,000 in non-cash gains or losses arising
from (i) the pulp mill located in Samoa, California, (ii) the pulp mill located
in Chetwynd, British Columbia, (iii) the 65% interest in a joint venture in
Ireland that has an oriented strand board (OSB) mill, and (iv) the Borrower’s
industrial panel products segment.

 

“Solvent”
means, as to any Person at any time, that (a) the fair value of the property of
such Person on a going concern basis is greater than the amount of such
Person’s liabilities (including contingent liabilities), as such value is
established and such liabilities are evaluated for purposes of Section 101(32)
of the Bankruptcy Code and, in the alternative, for purposes of the New York
Uniform Fraudulent Conveyance Act or any similar state statute applicable to
such Person or any of its Subsidiaries; (b) the present fair salable value of
the property of such Person is not less than the amount that will be required
to pay the probable liability of such Person on its debts as they become
absolute and matured; (c) such Person is able to realize upon its property and
pay its debts and other liabilities (including contingent liabilities) as they
mature in the normal course of business; (d) such Person does not intend to,
and does not believe that it will, incur debts or liabilities beyond such
Person’s ability to pay as such debts and liabilities mature; and (e) such
Person is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which such Person’s property would constitute
unreasonably small capital.

 

“Stock”
means all shares, options, warrants, general or limited partnership interests,
units or other equivalents (regardless of how designated) of or in a corporation,
general partnership, 

 

20

 

limited
partnership, limited liability company, unlimited liability company, joint
stock company, or equivalent entity whether voting or nonvoting, including
common stock and preferred stock.

 

“Stock Option
Plan” means any stock option, stock purchase or other equity-based
compensation plan or arrangement established or entered into for the benefit of
any employee, director or consultant of the Borrower or any Subsidiary.

 

“Subsidiary”
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity (a) of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person and (b) the financial statements of which are consolidated with those of
such Person in accordance with GAAP. 
Unless otherwise specified, all references herein to a “Subsidiary” or
to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of the Borrower;
provided, that the term “Subsidiary” shall not include any Dissolving
Subsidiary unless the dissolution of such Dissolving Subsidiary has not been
completed by July 31, 2002.

 

“Swap Contract”
means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions,
currency options, spot contracts, or any other similar transactions or any
combination of any of the foregoing (including any options to enter into any of
the foregoing), whether or not any such transaction is governed by or subject
to any master agreement, and (b) any and all transactions of any kind, and the
related confirmations, which are subject to the terms and conditions of, or
governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together
with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement.

 

“Swap Termination
Value” means, in respect of any one or more Swap Contracts, after taking
into account the effect of any legally enforceable netting agreement relating
to such Swap Contracts, (a) for any date on or after the date such Swap
Contracts have been closed out and termination value(s) determined in
accordance therewith, such termination value(s), and (b) for any date prior to
the date referenced in clause (a) the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined based upon one
or more mid-market or other readily available quotations provided by any
recognized dealer in such Swap Contracts (which may include any Lender).

 

21

 

“Synthetic
Lease Obligation” means the monetary obligation of a Person under any
synthetic lease, tax retention operating lease, or similar financing product
under which the Indebtedness is considered borrowed money indebtedness for tax
purposes but is classified as an operating lease under GAAP.

 

“Taxes” has
the meaning specified in Section 3.01(a).

 

“Threshold
Amount” means $25,000,000.

 

“Timber Notes
Receivable” means, collectively, (i) the promissory notes in the principal
amount of approximately $50,000,000 by Sierra Pacific Industries in favor of L-P
SPV, Inc., a Delaware corporation, and (ii) the promissory notes in the
principal amount of approximately $354,000,000 by Simpson Timber Company in
favor of L-P SPV2, LLC, a Delaware limited liability company.

 

“Type”
means, with respect to a Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

 

“UCC” means
the Uniform Commercial Code.

 

“Unfunded
Pension Liability” means the excess of a Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that Pension
Plan’s assets, determined in accordance with the assumptions used for funding
the Pension Plan pursuant to Section 412 of the Code for the applicable plan
year.

 

“Unreimbursed
Amount” has the meaning specified in Section 2.03(c)(i).

 

“Voting
Percentage” means, as to any Lender, (a) at any time when the Commitments
are in effect, such Lender’s Pro Rata Share and (b) at any time after the
termination of the Commitments, the percentage (carried out to the ninth
decimal place) which (i) the sum of (A) the Outstanding Amount of such Lender’s
Loans, plus (B) such Lender’s Pro Rata Share of the Outstanding Amount
of L/C Obligations, then constitutes of (ii) the Outstanding Amount of all
Loans and L/C Obligations; provided, however, that if any Lender
has failed to fund any portion of the Loans or participations in L/C
Obligations required to be funded by it hereunder, until cure of such failure,
such Lender’s Voting Percentage shall be deemed to be —0—, and the respective
Pro Rata Shares and Voting Percentages of the other Lenders shall be recomputed
for purposes of this definition and the definition of “Required Lenders”
without regard to such Lender’s Commitment or the outstanding amount of its
Loans and L/C Advances, as the case may be.

 

“Wachovia”
means Wachovia Bank, N.A.

 

1.02   Other
Interpretive Provisions.

 

With reference to
this Agreement and each other Loan Document, unless otherwise specified herein
or in such other Loan Document:

 

22

 

(a)  The meanings of defined terms are equally
applicable to the singular and plural forms of the defined terms.

 

(b)  (i)          The
words “herein” and “hereunder” and words of similar import when
used in any Loan Document shall refer to such Loan Document as a whole and not
to any particular provision thereof.

 

(ii)      Unless otherwise specified, Article,
Section, Exhibit and Schedule references are to the Loan Document in which such
reference appears.

 

(iii)     The term “including” is by way of example
and not limitation.

 

(iv)     The term “documents” includes any and all
instruments, documents, agreements, certificates, notices, reports, financial
statements and other writings, however evidenced, and whether in physical or
electronic form.

 

(c)  In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to
but excluding;” and the word “through” means “to and including.”

 

(d)  Section headings herein and the other Loan
Documents are included for convenience of reference only and shall not affect
the interpretation of this Agreement or any other Loan Document.

 

1.03   Accounting Terms.

 

(a)  All accounting terms not specifically or
completely defined herein shall be construed in conformity with, and all
financial data required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing
the Audited Financial Statements, except as otherwise specifically
prescribed herein.

 

(b)  If at any time any change in GAAP would
affect the computation of any financial ratio or requirement set forth in any
Loan Document, and either the Borrower or the Required Lenders shall so
request, the Administrative Agent, the Lenders and the Borrower shall negotiate
in good faith to amend such ratio or requirement to preserve the original
intent thereof in light of such change in GAAP (subject to the approval of the Required
Lenders); provided that, until so amended, (i) such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change
therein and (ii) the Borrower shall provide to the Administrative Agent and the
Lenders financial statements and other documents required under this Agreement
or as reasonably requested hereunder setting forth a reconciliation between
calculations of such ratio or requirement made before and after giving effect
to such change in GAAP.

 

23

 

1.04   Rounding.

 

Any financial
ratios required to be maintained by the Borrower pursuant to this Agreement
shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by
which such ratio is expressed herein and rounding the result up or down to the
nearest number (with a rounding-up if there is no nearest number).

 

1.05   References
to Agreements and Laws.

 

Unless otherwise
expressly provided herein, (a) references to agreements (including the Loan
Documents) and other contractual instruments shall be deemed to include all
subsequent amendments, restatements, extensions, supplements and other
modifications thereto, but only to the extent that such amendments,
restatements, extensions, supplements and other modifications are not
prohibited by any Loan Document; and (b) references to any Law shall include
all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such Law.

 

ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01   Loans.

 

Subject to the
terms and conditions set forth herein, each Lender severally agrees to make
loans (each such loan, a “Loan”) to the Borrower from time to time on
any Business Day during the period from the Closing Date to the Maturity Date,
in an aggregate amount not to exceed at any time outstanding the amount of such
Lender’s Commitment; provided, however, that after giving effect
to any Borrowing, (i) the aggregate Outstanding Amount of all Loans and L/C
Obligations shall not exceed the Aggregate Commitments, and (ii) the aggregate
Outstanding Amount of the Loans of any Lender, plus such Lender’s Pro
Rata Share of the Outstanding Amount of all L/C Obligations shall not exceed
such Lender’s Commitment.  Within the
limits of each Lender’s Commitment, and subject to the other terms and
conditions hereof, the Borrower may borrow under this Section 2.01,
prepay under Section 2.04, and reborrow under this Section 2.01.  Loans may be Base Rate Loans or Eurodollar
Rate Loans, as further provided herein.

 

2.02   Borrowings,
Conversions and Continuations of Loans.

 

(a)  Each Borrowing, each conversion of Loans
from one Type to the other, and each continuation of Loans as the same Type
shall be made upon the Borrower’s irrevocable notice to the Administrative
Agent, which may be given by telephone. 
Each such notice must be received by the Administrative Agent not later
than (i) 9:00 a.m., San Francisco time, three Business Days prior to the
requested date of any Borrowing of, conversion to or continuation of Eurodollar
Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate Loans,
and (ii) 9:00 a.m., San Francisco time, on the requested date of any Borrowing
of Base Rate Loans.  Each such
telephonic notice must be confirmed promptly by delivery to the Administrative 

 

24

 

Agent of a written
Loan Notice, appropriately completed and signed by a Responsible Officer of the
Borrower.  Each Borrowing of, conversion
to or continuation of Eurodollar Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof.  Each Borrowing of Base Rate Loans shall be
in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess
thereof.  Each Loan Notice (whether
telephonic or written) shall specify (i) whether the Borrower is requesting a
Borrowing, a conversion of Loans from one Type to the other, or a continuation
of Loans as the same Type, (ii) the requested date of the Borrowing, conversion
or continuation, as the case may be (which shall be a Business Day), (iii) the
principal amount of Loans to be borrowed, converted or continued, (iv) the Type
of Loans to be borrowed or to which existing Loans are to be converted, and (v)
if applicable, the duration of the Interest Period with respect thereto.  If the Borrower fails to specify a Type of
Loan in a Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Loans shall be
made as, or in the case of a non-requested conversion or continuation,
continued as or converted to, Base Rate Loans. 
Any such automatic conversion to Base Rate Loans shall be effective as
of the last day of the Interest Period then in effect with respect to the
applicable Eurodollar Rate Loans.  If
the Borrower requests a Borrowing of, conversion to, or continuation of
Eurodollar Rate Loans in any such Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of one month.

 

(b)  Following receipt of a Loan Notice, the
Administrative Agent shall promptly notify each Lender of its Pro Rata Share of
the applicable Loans, and if no timely notice of a conversion or continuation
is provided by the Borrower, the Administrative Agent shall notify each Lender
of the details of any automatic conversion to Base Rate Loans described in the
preceding subsection.  In the case of a
Borrowing, each Lender shall make the amount of its Loan available to the
Administrative Agent in immediately available funds at the Administrative
Agent’s Office not later than 10:00 a.m., San Francisco time, on the Business
Day specified in the applicable Loan Notice. 
Upon satisfaction of the applicable conditions set forth in Section
4.02 (and, if such Borrowing is the initial Credit Extension, Section
4.01), the Administrative Agent shall make all funds so received available
to the Borrower in like funds as received by the Administrative Agent either by
(i) crediting the account of the Borrower on the books of Bank of America with
the amount of such funds or (ii) wire transfer of such funds, in each case in
accordance with instructions provided to the Administrative Agent by the
Borrower; provided, however, that if, on the date of the
Borrowing (whether an initial Borrowing, or a conversion or continuation of a
Loan) there are L/C Borrowings outstanding, then the proceeds of such Borrowing
shall be applied, first, to the payment in full of any such L/C
Borrowings, and second, to the Borrower as provided above.

 

(c)  Except as otherwise provided herein, a
Eurodollar Rate Loan may be continued or converted only on the last day of the
Interest Period for such Eurodollar Rate Loan. 
During the existence of a Default or Event of Default, no Loans may be
requested as, converted to or continued as Eurodollar Rate Loans without the
consent of the Required Lenders.  During
the existence of a Default, the Required Lenders may demand that any or all of
the then outstanding Eurodollar Rate Loans be converted, in the case of each
such Loan, at the last day of the Interest Period for such Loan then in effect,
to Base Rate Loans.  During the
existence of an 

 

25

 

Event of Default,
the Required Lenders may demand that any or all of the then outstanding
Eurodollar Rate Loans be converted immediately to Base Rate Loans.

 

(d)  The Administrative Agent shall promptly
notify the Borrower and the Lenders of the interest rate applicable to any
Eurodollar Rate Loan upon determination of such interest rate.  The determination of the Eurodollar Rate by
the Administrative Agent shall be conclusive in the absence of manifest error.  The Administrative Agent shall notify the Borrower
and the Lenders of any change in Bank of America’s prime rate used in
determining the Base Rate promptly following the public announcement of such
change.

 

(e)  At any one time, after giving effect to all
Borrowings, all conversions of Loans from one Type to the other, and all
continuations of Loans as the same Type as of such time, there shall not be
more than seven Interest Periods covering different periods of time in effect
with respect to Loans.

 

2.03   Letters of Credit.

 

(a)  The Letter of Credit Commitment.

 

(i)       Subject to the terms and conditions set
forth herein, (A) each L/C Issuer agrees, in reliance upon the agreements of
the other Lenders set forth in this Section 2.03, (1) from time to time
on any Business Day during the period from the Closing Date until the Letter of
Credit Expiration Date, to issue standby Letters of Credit for the account of
the Borrower, for the benefit of the Borrower or any of its Subsidiaries, and
to amend or renew Letters of Credit previously issued by it, in accordance with
subsection (b) below, and (2) to honor drafts under the Letters of Credit; and
(B) the Lenders severally agree to participate in Letters of Credit issued for
the account of the Borrower; provided that the L/C Issuers shall not be
obligated to make any L/C Credit Extension with respect to any Letter of
Credit, and no Lender shall be obligated to participate in, any Letter of
Credit if as of the date of such L/C Credit Extension, (x) the Outstanding
Amount of all L/C Obligations and all Loans would exceed the Aggregate
Commitments, (y) the aggregate Outstanding Amount of the Loans of any Lender, plus
such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations
would exceed such Lender’s Commitment, or (z) the Outstanding Amount of the L/C
Obligations would exceed the Letter of Credit Sublimit.  Within the foregoing limits, and subject to
the terms and conditions hereof, the Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that
have expired or that have been drawn upon and reimbursed.  With respect to each Existing Letter of
Credit, (i) all undrawn face amounts thereof shall constitute L/C Obligations,
(ii) all drawings thereunder not reimbursed by the Borrower as required in the
second sentence of Section 2.03(c)(i) shall constitute Unreimbursed
Amounts, and (iii) the reimbursement obligations with respect thereto shall be
governed by the terms and conditions hereof.

 

(ii)      No L/C Issuer shall be under any
obligation to issue any Letter of Credit if:

 

26

 

(A)  any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain such L/C Issuer from issuing such Letter of Credit, or any Law
applicable to such L/C Issuer or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction over
such L/C Issuer shall prohibit, or request that such L/C Issuer refrain from,
the issuance of letters of credit generally or such Letter of Credit in
particular or shall impose upon such L/C Issuer with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which such L/C
Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon such L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which such L/C Issuer
in good faith deems material to it;

 

(B)  subject to Section 2.03(b)(iii), the
expiry date of such requested Letter of Credit would occur more than twelve
months after the date of issuance or last renewal, unless the Required Lenders
have approved such expiry date;

 

(C)  the expiry date of such requested Letter of
Credit would occur after the Letter of Credit Expiration Date, unless all the
Lenders have approved such expiry date;

 

(D)  the issuance of such Letter of Credit would
violate one or more policies of such L/C Issuer; or

 

(E)  such Letter of Credit is in a face amount
less than $50,000, or is to be denominated in a currency other than Dollars.

 

(iii)     No L/C Issuer shall be under any obligation
to amend any Letter of Credit if (A) such L/C Issuer would have no obligation
at such time to issue such Letter of Credit in its amended form under the terms
hereof, or (B) the beneficiary of such Letter of Credit does not accept the
proposed amendment to such Letter of Credit.

 

(b)  Procedures for Issuance and Amendment of
Letters of Credit; Evergreen Letters of Credit.

 

(i)       Each Letter of Credit shall be issued or
amended, as the case may be, upon the request of the Borrower delivered to an
L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of
Credit Application, appropriately completed and signed by a Responsible Officer
of the Borrower.  Such Letter of Credit
Application must be received by such L/C Issuer and the Administrative Agent
not later than 8:00 a.m., San Francisco time, at least two Business Days (or
such later date and time as such L/C Issuer may agree in a particular instance
in its sole discretion) prior to the proposed issuance date or date of
amendment, as the case may be.  In the
case of a request for an initial issuance of a Letter of Credit, such Letter of
Credit Application shall specify in form and detail satisfactory to such L/C
Issuer: (A) the proposed issuance date of the requested Letter of Credit (which
shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof;
(D) the name and address of the beneficiary thereof; (E) the documents to be
presented by such beneficiary in case of any drawing thereunder; (F) the full
text of any certificate to be presented by such beneficiary in case of any
drawing thereunder; and (G) such other matters as the L/C Issuer may
require.  In the case 

 

27

 

of a request for
an amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the L/C Issuer (A)
the Letter of Credit to be amended; (B) the proposed date of amendment thereof
(which shall be a Business Day); (C) the nature of the proposed amendment; and
(D) such other matters as the L/C Issuer may require.

 

(ii)      Promptly after receipt of any Letter of
Credit Application, the relevant L/C Issuer will confirm with the
Administrative Agent (by telephone or in writing) that the Administrative Agent
has received a copy of such Letter of Credit Application from the Borrower and,
if not, the L/C Issuer will provide the Administrative Agent with a copy
thereof.  Upon receipt by the L/C Issuer
of confirmation from the Administrative Agent that the requested issuance or
amendment is permitted in accordance with the terms hereof, then, subject to
the terms and conditions hereof, the L/C Issuer shall, on the requested date,
issue a Letter of Credit for the account of the Borrower or enter into the
applicable amendment, as the case may be, in each case in accordance with the
L/C Issuer’s usual and customary business practices.  Immediately upon the issuance of each Letter of Credit, each
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the L/C Issuer a participation in such Letter of Credit in an
amount equal to the product of such Lender’s Pro Rata Share times the
amount of such Letter of Credit.

 

(iii)     If the Borrower so requests in any
applicable Letter of Credit Application, the relevant L/C Issuer may, in it
sole and absolute discretion, agree to issue a Letter of Credit that has
automatic renewal provisions (each, an “Evergreen Letter of Credit”); provided
that any such Evergreen Letter of Credit must permit the L/C Issuer to prevent
any such renewal at least once in each twelve-month period (commencing with the
date of issuance of such Letter of Credit) by giving prior notice to the
beneficiary thereof not later than a day (the “Nonrenewal Notice Date”)
in each such twelve-month period to be agreed upon at the time such Letter of
Credit is issued.  Unless otherwise
directed by the L/C Issuer, the Borrower shall not be required to make a
specific request to the L/C Issuer for any such renewal.  Once an Evergreen Letter of Credit has been
issued, the Lenders shall be deemed to have authorized (but may not require)
the L/C Issuer to permit the renewal of such Letter of Credit at any time to a
date not later than the Letter of Credit Expiration Date; provided, however,
that the L/C Issuer shall not permit any such renewal if (A) the L/C Issuer
would have no obligation at such time to issue such Letter of Credit in its
renewed form under the terms hereof, or (B) it has received notice (which may
be by telephone or in writing) on or before the Business Day immediately
preceding the Nonrenewal Notice Date (1) from the Administrative Agent that the
Required Lenders have elected not to permit such renewal or (2) from the
Administrative Agent, any Lender or the Borrower that one or more of the
applicable conditions specified in Section 4.02 is not then
satisfied.  Notwithstanding anything to
the contrary contained herein, the L/C Issuer shall have no obligation to
permit the renewal of any Evergreen Letter of Credit at any time.

 

(iv)     Promptly after its delivery of any Letter
of Credit or any amendment to a Letter of Credit to an advising bank with
respect thereto or to the beneficiary thereof, the relevant L/C Issuer will
also deliver to the Borrower and the Administrative Agent a true and complete
copy of such Letter of Credit or amendment.

 

28

 

(c)  Drawings and Reimbursements; Funding of
Participations.

 

(i)       Upon any drawing under any Letter of
Credit, the L/C Issuer that issued such Letter of Credit shall notify the
Borrower and the Administrative Agent thereof. 
Not later than 9:00 a.m., San Francisco time, on the date of any payment
by such L/C Issuer under a Letter of Credit (each such date, an “Honor Date”),
the Borrower shall reimburse such L/C Issuer through the Administrative Agent
in an amount equal to the amount of such drawing.  If the Borrower fails to so reimburse the L/C Issuer by such
time, the Administrative Agent shall promptly notify each Lender of the Honor Date,
the amount of the unreimbursed drawing (the “Unreimbursed Amount”), and
such Lender’s Pro Rata Share thereof. 
In such event, the Borrower shall be deemed to have requested a
Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount
equal to the Unreimbursed Amount, without regard to the minimum and multiples
specified in Section 2.02 for the principal amount of Base Rate Loans,
but subject to the amount of the unutilized portion of the Aggregate
Commitments and the conditions set forth in Section 4.02 (other than the
delivery of a Request for Credit Extension). 
Any notice given by an L/C Issuer or the Administrative Agent pursuant
to this Section 2.03(c)(i) may be given by telephone if immediately
confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such
notice.

 

(ii)      Each Lender (including any Lender acting
as L/C Issuer) shall upon any notice pursuant to Section 2.03(c)(i) make
funds available to the Administrative Agent for the account of the relevant L/C
Issuer at the Administrative Agent’s Office in an amount equal to its Pro Rata
Share of the Unreimbursed Amount not later than 10:00 a.m., San Francisco time,
on the Business Day specified in such notice by the Administrative Agent, whereupon,
subject to the provisions of Section 2.03(c)(iii), each Lender that so
makes funds available shall be deemed to have made a Base Rate Loan to the
Borrower in such amount.  The
Administrative Agent shall remit the funds so received to the relevant L/C Issuer.

 

(iii)     With respect to any Unreimbursed Amount
that is not fully refinanced by a Borrowing of Base Rate Loans because the
conditions set forth in Section 4.02 cannot be satisfied or for any
other reason, the Borrower shall be deemed to have incurred from the relevant
L/C Issuer an L/C Borrowing in the amount of the Unreimbursed Amount that is
not so refinanced, which L/C Borrowing shall be due and payable on demand
(together with interest) and shall bear interest at the Default Rate.  In such event, each Lender’s payment to the
Administrative Agent for the account of such L/C Issuer pursuant to Section
2.03(c)(ii) shall be deemed payment in respect of its participation in such
L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction
of its participation obligation under this Section 2.03.

 

(iv)     Until each Lender funds its Loan or L/C
Advance pursuant to this Section 2.03(c) to reimburse the L/C Issuers
for any amounts drawn under any Letters of Credit, interest in respect of such
Lender’s Pro Rata Share of each such amount shall be solely for the account of
the respective L/C Issuer.

 

(v)      Each Lender’s obligation to make Loans or
L/C Advances to reimburse the L/C Issuers for amounts drawn under Letters of
Credit, as contemplated by this

 

29

 

Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any set-off, counterclaim, recoupment, defense or
other right which such Lender may have against any L/C Issuer, the Borrower or
any other Person for any reason whatsoever; (B) the occurrence or continuance
of a Default or Event of Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided, however,
that each Lender’s obligation to make Loans, but not L/C Advances, pursuant to
this Section 2.03(c) is subject to the conditions set forth in Section
4.02 (other than the delivery of a Request for Credit Extension).  Any such reimbursement shall not relieve or
otherwise impair the obligation of the Borrower to reimburse each L/C Issuer
for the amount of any payment made by such L/C Issuer under any Letter of
Credit, together with interest as provided herein.

 

(vi)     If any Lender fails to make available to
the Administrative Agent for the account of any L/C Issuer any amount required
to be paid by such Lender pursuant to the foregoing provisions of this Section
2.03(c) by the time specified in Section 2.03(c)(ii), such L/C
Issuer shall be entitled to recover from such Lender (acting through the
Administrative Agent), on demand, such amount with interest thereon for the
period from the date such payment is required to the date on which such payment
is immediately available to the L/C Issuer at a rate per annum equal to the
Federal Funds Rate from time to time in effect.  A certificate of the L/C Issuer submitted to any Lender (through
the Administrative Agent) with respect to any amounts owing under this clause
(vi) shall be conclusive absent manifest error.

 

(d)  Repayment of Participations.

 

(i)       At any time after any L/C Issuer has made
a payment under any Letter of Credit and has received from any Lender such
Lender’s L/C Advance in respect of such payment in accordance with Section
2.03(c), if the Administrative Agent receives for the account of such L/C
Issuer any payment related to such Letter of Credit (whether directly from the
Borrower or otherwise, including proceeds of Cash Collateral applied thereto by
the Administrative Agent), or any payment of interest thereon, the
Administrative Agent will distribute to such Lender its Pro Rata Share thereof
in the same funds as those received by the Administrative Agent.

 

(ii)      If any payment received by the
Administrative Agent for the account of any L/C Issuer pursuant to Section
2.03(c)(i) is required to be returned, each Lender shall pay to the
Administrative Agent for the account of such L/C Issuer its Pro Rata Share
thereof on demand of the Administrative Agent, plus interest thereon from the
date of such demand to the date such amount is returned by such Lender, at a
rate per annum equal to the Federal Funds Rate from time to time in effect, but
in no event to exceed the Maximum Rate.

 

(e)  Obligations Absolute.  The obligation of the Borrower to reimburse
any L/C Issuer for each drawing under each Letter of Credit, and to repay each
L/C Borrowing and each drawing under a Letter of Credit that is refinanced by a
Borrowing, shall be absolute, unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Agreement under all
circumstances, including the following:

 

30

 

(i)       any lack of validity or enforceability of
such Letter of Credit, this Agreement, or any other agreement or instrument
relating thereto;

 

(ii)      the existence of any claim, counterclaim,
set-off, defense or other right that the Borrower may have at any time against
any beneficiary or any transferee of such Letter of Credit (or any Person for
whom any such beneficiary or any such transferee may be acting), the L/C Issuer
or any other Person, whether in connection with this Agreement, the
transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

 

(iii)     any draft, demand, certificate or other
document presented under such Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under such Letter of Credit;

 

(iv)     any payment by such L/C Issuer under such
Letter of Credit against presentation of a draft or certificate that does not
strictly comply with the terms of such Letter of Credit; or any payment made by
such L/C Issuer under such Letter of Credit to any Person purporting to be a
trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any
beneficiary or any transferee of such Letter of Credit, including any arising
in connection with any proceeding under any Debtor Relief Law; or

 

(v)      any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing, including any other
circumstance that might otherwise constitute a defense available to, or a
discharge of, the Borrower.

 

The Borrower shall
promptly examine a copy of each Letter of Credit and each amendment thereto
that is delivered to it and, in the event of any claim of noncompliance with
the Borrower’s instructions or other irregularity, the Borrower will
immediately notify the relevant L/C Issuer. 
The Borrower shall be conclusively deemed to have waived any such claim
against such L/C Issuer and its correspondents unless such notice is given as
aforesaid.

 

(f)  Role of L/C Issuers.  Each Lender and the Borrower agree that, (i)
in paying any drawing under a Letter of Credit, each L/C Issuer shall not have
any responsibility to obtain any document (other than any sight draft,
certificates and documents expressly required by the Letter of Credit) or to
ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document, (ii) the L/C
Issuers may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and (iii) the L/C Issuers shall not be responsible
for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, that may prove to be
invalid or ineffective for any reason. 
No Agent-Related Person nor any of the respective correspondents,
participants or assignees of any L/C Issuer shall be liable to any Lender for
(x) any action taken or omitted in connection 

 

31

 

herewith at the
request or with the approval of the Lenders or the Required Lenders, as
applicable; (y) any action taken or omitted in the absence of gross negligence
or willful misconduct; or (z) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or
Letter of Credit Application.  The
Borrower hereby assumes all risks of the acts or omissions of any beneficiary or
transferee with respect to its use of any Letter of Credit; provided, however,
that this assumption is not intended to, and shall not, preclude the Borrower’s
pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement.  No Agent-Related Person, nor any of the respective
correspondents, participants or assignees of any L/C Issuer, shall be liable or
responsible for any of the matters described in clauses (i) through (v) of Section
2.03(e); provided, however, that anything in such clauses or
this Section 2.03(f) to the contrary notwithstanding, the Borrower may
have a claim against an L/C Issuer, and such L/C Issuer may be liable to the
Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrower which the Borrower
proves were caused by such L/C Issuer’s willful misconduct or gross negligence
or such L/C Issuer’s willful failure to pay under any Letter of Credit after
the presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit.

 

(g)  Cash Collateral.  Upon the request of the Administrative
Agent, (i) if any L/C Issuer has honored any full or partial drawing request
under any Letter of Credit and such drawing has resulted, after the Honor Date
thereof, in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration
Date, any Letter of Credit may for any reason remain outstanding and partially
or wholly undrawn, the Borrower shall immediately Cash Collateralize the then
Outstanding Amount of all L/C Obligations (in an amount equal to such
Outstanding Amount).

 

(h)  Applicability of ISP98.  Unless otherwise expressly agreed by the L/C
Issuer and the Borrower when a Letter of Credit is issued (including any such
agreement applicable to an Existing Letter of Credit), 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 Letter of Credit.

 

(i)  Letter of Credit Fees.  The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata Share a
Letter of Credit fee for each Letter of Credit equal to the Applicable Rate for
Eurodollar Rate Loans times the actual daily maximum amount available to
be drawn under each Letter of Credit. 
Such fee for each Letter of Credit shall be due and payable quarterly in
arrears on the last Business Day of each March, June, September and December,
commencing with the first such date to occur after the issuance of such Letter
of Credit, and on the Letter of Credit Expiration Date.

 

(j)  Fronting Fee and Documentary and
Processing Charges Payable to L/C Issuers. 
The Borrower shall pay directly to any L/C Issuer that has issued any
Letters of Credit, for such L/C Issuer’s own account, a fronting fee in an
amount with respect to each such Letter of Credit equal to the greater of (i)
$1,500 per annum and (ii) 1/8 of 1% per annum on the daily maximum amount
available to be drawn thereunder, calculated as of the last day of each March,
June, September and December, and shall be due and payable quarterly in arrears
on each such 

 

32

 

day (unless such
day is not a Business Day, in which case the payment date shall be extended to
the next succeeding Business Day), commencing with the first such date to occur
after the issuance of such Letter of Credit (or in the case of any Existing
Letter of Credit, the first such date to occur after the Closing Date) and on
the Letter of Credit Expiration Date. 
In addition, the Borrower shall pay directly to each L/C Issuer for its
own account the customary issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of such L/C Issuer
relating to letters of credit as from time to time in effect.  Such fees and charges are due and payable on
demand and are nonrefundable.

 

(k)  Conflict with Letter of Credit
Application.  In the event of any
conflict between the terms hereof and the terms of any Letter of Credit
Application, the terms hereof shall control.

 

(l)  Existing Letters of Credit.  The outstanding standby letters of credit issued
for the Borrower by Wachovia identified on Schedule 2.03(l), to which
copies of such letters of credit are attached, shall be “Existing Letters of
Credit” hereunder and Wachovia shall have the rights and obligations of an
L/C Issuer under all the provisions of the Loan Documents, except that Wachovia
shall not and shall not be obligated thereby to issue Letters of Credit.  Wachovia shall exercise any rights or
remedies it may have under any reimbursement agreements executed in connection
with the Existing Letters of Credit and otherwise act in respect of such
Existing Letters of Credit at the direction of the Administrative Agent (at the
request of the Required Lenders to the extent required hereunder).  In any such exercise or action, Wachovia
shall be subject to, and entitled to the benefits of, Section 9.01.

 

2.04   Optional
Prepayments.

 

The Borrower may,
upon notice to the Administrative Agent, at any time or from time to time
voluntarily prepay Loans in whole or in part without premium or penalty other
than as required under Section 3.05; provided that (i) such
notice must be received by the Administrative Agent not later than 8:00 a.m.,
San Francisco time, (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans, and (B) on the date of prepayment of Base Rate Loans;
(ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount
of  $5,000,000 (or the total amount of
such Loans outstanding, if less than $5,000,000) or a whole multiple of
$1,000,000 in excess thereof; and (iii) any prepayment of Base Rate Loans shall
be in a principal amount of $500,000 (or the total amount of such Loans
outstanding, if less than $500,000) or a whole multiple of $100,000 in excess
thereof.  Each such notice shall specify
the date and amount of such prepayment and the Type(s) of Loans to be
prepaid.  The Administrative Agent will
promptly notify each Lender of its receipt of each such notice, and of such
Lender’s Pro Rata Share of such prepayment. 
If such notice is given by the Borrower, the Borrower shall make such
prepayment and the payment amount specified in such notice shall be due and
payable on the date specified therein. 
Any prepayment of a Eurodollar Rate Loan shall be accompanied by all
accrued interest thereon, together with any additional amounts required
pursuant to Section 3.05.  Each
such prepayment shall be applied to the Loans of the Lenders in accordance with
their respective Pro Rata Shares.

 

33

 

2.05   Mandatory
Prepayments.

 

(a)  If for any reason the Outstanding Amount of
all Loans and L/C Obligations at any time exceeds the Aggregate Commitments
then in effect, the Borrower shall immediately prepay Loans and/or Cash
Collateralize the L/C Obligations in an aggregate amount equal to such excess.

 

(b)  If the Borrower or any of its Subsidiaries
shall at any time or from time to time consummate a Disposition permitted by Section
7.05(j), then (i) the Borrower shall promptly notify the Administrative
Agent of the consummation of such Disposition (including the amount of the
estimated Net Disposition Proceeds to be received by the Borrower in respect
thereof), (ii) subject to Section 2.05(g), the Borrower shall prepay the
Loans in an amount equal to 50% of the Net Disposition Proceeds received by the
Borrower in respect of such Disposition, until the aggregate amount of
prepayments under this Section 2.05(b)(ii) equals $50,000,000 and (iii)
subject to Section 2.05(g), if, at any time, the aggregate Excess
Proceeds held by the Borrower pursuant to Section 7.05(j)(iv)(B) exceeds
$10,000,000 at such time or if the Borrower holds any Excess Proceeds pursuant
to the last proviso of Section 7.05(j)(iv), the Borrower shall prepay
the Loans in the amount equal to such aggregate Excess Proceeds.

 

(c)  If the Borrower or any of its Subsidiaries
shall at any time or from time to time receive Net Issuance Proceeds from the
issuance of equity securities to any Person other than (i) from any such
issuance to the Borrower or any other Subsidiary, (ii) in the case of any
non-wholly owned Subsidiary, from any such issuance to the Borrower, any
Subsidiary and any other owner pro rata based on such Persons’ ownership
interests prior to such issuance, and (iii) from any such issuance pursuant to
a Stock Option Plan, then within three Business Days after receipt of the Net
Issuance Proceeds therefrom, subject to Section 2.05(g), the Borrower
shall prepay the Loans in an aggregate principal amount equal to 50% of such
Net Issuance Proceeds.

 

(d)  Subject to Section 2.05(e), any
prepayment made under Section 2.05(b) or 2.05(c), or that would
have been required to be made thereunder but was not because there were no
Loans outstanding, shall result in a permanent reduction of the Aggregate
Commitments by the amount of such prepayment that was made or that would have
been made.  Once reduced in accordance
with this Section, the Commitments may not be increased.  The Administrative Agent shall promptly
notify the Lenders of any such reduction of Commitments.  Any reduction of the Aggregate Commitments
shall be applied to the Commitment of each Lender according to its Pro Rata
Share.

 

(e)  If a reduction of the Aggregate Commitments
as a result of any prepayment would result in the Aggregate Commitments being less
than the aggregate undrawn face amount of all outstanding Letters of Credit,
then such prepayment shall be Cash Collateralized but the Commitments shall be
permanently reduced under this Section 2.05(e) only after such Letters
of Credit are cancelled or expire in accordance with their terms.

 

(f)  Prepayment of the Loans pursuant to this Section
2.05 shall be applied, first, to the payment in full of any L/C
Borrowings outstanding, second, to the payment of Loans constituting
Base Rate Loans or matured Eurodollar Rate Loans, as selected by the Borrower, 

 

34

 

and third,
at the Borrower’s option (which option will not be available if an Event of
Default has occurred and is continuing), to Cash Collateralize Loans
constituting unmatured Eurodollar Rate Loans (which Cash Collateral shall be
applied on the maturity date of the relevant Interest Periods to prepay such
Loans in order of their maturities) or to prepay any Loans constituting
unmatured Eurodollar Rate Loans in the order of the maturity of their Interest
Periods and all accrued interest and amounts payable pursuant to Section
3.05.

 

(g)  If under the mandatory prepayment formulas
in Sections 2.05(b) or (c) the Borrower would otherwise be
required to prepay the Loans in an amount equal to or greater than $25,000,000
with respect to any individual Disposition or equity issuance, then the
Borrower shall be required instead to prepay the Loans in an amount equal to
$24,999,999 and Cash Collateralize the remainder of such amount.  If and to the extent any proposed
Disposition or equity issuance would result in the prepayments under this Section
2.05 to exceed $24,999,999 in the aggregate, then the Borrower shall prepay
the Loans until such aggregate prepayments under this Section 2.05 equal
$24,999,999, and shall either, at its option, (i) Cash Collateralize the
excess, or (ii) subject to the first sentence of this Section 2.05(g),
apply the excess to prepay the Loans and concurrently deliver to the Administrative
Agent an opinion of counsel, reasonably satisfactory to the Administrative
Agent, to the effect that the mandatory prepayment required as a result of such
Disposition  or equity issuance does not
violate any Contractual Obligations.

 

2.06   Voluntary
Reduction or Termination of Commitments.

 

The Borrower may,
upon notice to the Administrative Agent, terminate the Aggregate Commitments,
or permanently reduce the Aggregate Commitments to an amount not less than the
then Outstanding Amount of all Loans and L/C Obligations; provided that
(i) any such notice shall be received by the Administrative Agent not later
than 11:00 a.m., five Business Days prior to the date of termination or
reduction, and (ii) any such partial reduction shall be in an aggregate amount
of $5,000,000 or any whole multiple of $1,000,000 in excess thereof.  The Administrative Agent shall promptly
notify the Lenders of any such notice of reduction or termination of the
Aggregate Commitments.  Once reduced in
accordance with this Section, the Commitments may not be increased.  Any reduction of the Aggregate Commitments
shall be applied to the Commitment of each Lender according to its Pro Rata
Share.  All commitment fees accrued
until the effective date of any termination of the Aggregate Commitments shall
be paid on the effective date of such termination.

 

2.07   Repayment of
Loans.

 

The Borrower shall
repay to the Lenders on the Maturity Date the aggregate principal amount of
Loans outstanding on such date.

 

2.08   Interest.

 

(a)  Subject to the provisions of subsection (b)
below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
the Eurodollar Rate for such Interest Period plus the Applicable Rate;
and (ii) each Base Rate Loan shall bear interest on the outstanding principal
amount thereof from 

 

35

 

the applicable
borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate.  However, in no event
shall the rate of interest payable pursuant to this Section 2.08 exceed
the Maximum Rate.

 

(b)  While any Event of Default exists or after
acceleration, the Borrower shall pay interest on the principal amount of all
outstanding Obligations (other than any Hedging Obligations, which shall be
governed by the applicable agreement between the Borrower and the applicable
Lender or the applicable Affiliate of a Lender, and without duplication of the
Default Rate of interest on any L/C Borrowings due under Section
2.03(c)(iii)) at a fluctuating interest rate per annum at all times equal
to the Default Rate to the fullest extent permitted by applicable Law.  Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
demand.

 

(c)  Interest on each Loan shall be due and
payable in arrears on each Interest Payment Date applicable thereto and at such
other times as may be specified herein. 
Interest hereunder shall be due and payable in accordance with the terms
hereof before and after judgment, and before and after the commencement of any
proceeding under any Debtor Relief Law.

 

2.09   Fees.

 

In addition to
certain fees described in subsections (i) and (j) of Section 2.03:

 

(a)  Commitment Fee.  The Borrower shall pay a commitment fee to
the Administrative Agent for the account of each Lender in accordance with its
Pro Rata Share, a commitment fee equal to the Commitment Fee Percentage times
the actual daily amount by which the Aggregate Commitments exceed the sum of
(i) the Outstanding Amount of Loans and (ii) the Outstanding Amount of L/C
Obligations.  The commitment fee shall
accrue at all times from the Closing Date until the Maturity Date, including at
any time during which one or more of the conditions in Article IV is not
met.  The commitment fee shall be
calculated, and due and payable, quarterly in arrears on the last Business Day
of each March, June, September and December, commencing with the first such
date to occur after the Closing Date, and on the Maturity Date.

 

(b)  Arrangement, Administrative, and Upfront
Fees.  The Borrower shall pay an
arrangement fee to Bank of America for the Arrangers’ accounts, and shall pay
an administrative fee to the Administrative Agent for the Administrative
Agent’s own account, in the amounts and at the times specified in the letter
agreement, dated June 29, 2001 (the “Agent/Arranger Fee Letter”),
between the Borrower and Bank of America, as an Arranger and the Administrative
Agent.  On the Closing Date, the
Borrower shall pay to the Administrative Agent, for the account of the Lenders
in accordance with their respective Pro Rata Shares, an upfront fee in the
amount agreed to among each Lender, the Arrangers and the Borrower.  Such upfront fees are for the credit
facilities committed by the Lenders under this Agreement and are fully earned
on the date paid.  The upfront fee paid
to each Lender is solely for its own account. 
All fees shall be fully earned when paid and are nonrefundable for any
reason whatsoever.

 

36

 

2.10   Computation
of Interest and Fees.

 

Interest on Base
Rate Loans shall be calculated on the basis of a year of 365 or 366 days, as
the case may be, and the actual number of days elapsed.  Computation of all other types of interest
and all fees shall be calculated on the basis of a year of 360 days and the
actual number of days elapsed, which results in a higher yield to the payee
thereof than a method based on a year of 365 or 366 days.  Interest shall accrue on each Loan for the
day on which the Loan is made, and shall not accrue on a Loan, or any portion
thereof, for the day on which the Loan or such portion is paid, provided
that any Loan that is repaid on the same day on which it is made shall bear
interest for one day.

 

2.11   Evidence of Debt.

 

(a)  The Credit Extensions made by each Lender
shall be evidenced by one or more accounts or records maintained by such Lender
and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the
Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Credit Extensions made by the Lenders to the Borrower and
the interest and payments thereon.  Any
failure to so record or any error in doing so shall not, however, limit or
otherwise affect the obligation of the Borrower hereunder to pay any amount
owing with respect to the Loans or L/C Obligations.  In the event of any conflict between the accounts and records
maintained by any Lender and the accounts and records of the Administrative
Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error.

 

(b)  In addition to the accounts and records
referred to in subsection (a), each Lender and the Administrative Agent shall
maintain in accordance with its usual practice accounts or records evidencing
the purchases and sales by such Lender of participations in Letters of Credit.  In the event of any conflict between the
accounts and records maintained by the Administrative Agent and the accounts
and records of any Lender in respect of such matters, the accounts and records
of the Administrative Agent shall control.

 

2.12   Payments
Generally.

 

(a)  All payments to be made by the Borrower
shall be made without condition or deduction for any counterclaim, defense,
recoupment or setoff.  Except as
otherwise expressly provided herein, all payments by the Borrower hereunder shall
be made to the Administrative Agent, for the account of the respective Lenders
to which such payment is owed, at the Administrative Agent’s Office in Dollars
and in immediately available funds not later than 12:00 noon, San Francisco
time, on the date specified herein.  The
Administrative Agent will promptly distribute to each Lender its Pro Rata Share
(or other applicable share as provided herein) of such payment in like funds as
received by wire transfer to such Lender’s Lending Office.  All payments received by the Administrative
Agent after 12:00 noon, San Francisco time, shall be deemed received on the
next succeeding Business Day and any applicable interest or fee shall continue
to accrue.

 

37

 

(b)  Subject to the definition of “Interest Period,”
if any payment to be made by the Borrower shall come due on a day other than a
Business Day, payment shall be made on the next following Business Day, and
such extension of time shall be reflected in computing interest or fees, as the
case may be.

 

(c)  Except as provided in Section 9.11,
if at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (i) first,
toward costs and expenses then owed under Section 10.04 and amounts
payable under Article III, (ii) second, toward repayment of
interest and fees then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of interest and fees then due to such
parties, and (iii) third, toward repayment of principal and L/C
Borrowings then due hereunder, ratably among the parties entitled thereto in
accordance with the amounts of principal and L/C Borrowings then due to such
parties.

 

(d)  Unless the Borrower or any Lender has
notified the Administrative Agent prior to the date any payment is required to
be made by it to the Administrative Agent hereunder, that the Borrower or such
Lender, as the case may be, will not make such payment, the Administrative
Agent may assume that the Borrower or such Lender, as the case may be, has
timely made such payment and may (but shall not be so required to), in reliance
thereon, make available a corresponding amount to the Person entitled thereto.  If and to the extent that such payment was
not in fact made to the Administrative Agent in immediately available funds,
then:

 

(i)       if the Borrower failed to make such
payment, each Lender shall forthwith on demand repay to the Administrative
Agent the portion of such assumed payment that was made available to such
Lender in immediately available funds, together with interest thereon in
respect of each day from and including the date such amount was made available
by the Administrative Agent to such Lender to the date such amount is repaid to
the Administrative Agent in immediately available funds, at the Federal Funds
Rate from time to time in effect; and

 

(ii)      if any Lender failed to make such payment,
such Lender shall forthwith on demand pay to the Administrative Agent the
amount thereof in immediately available funds, together with interest thereon
for the period from the date such amount was made available by the
Administrative Agent to the Borrower to the date such amount is recovered by
the Administrative Agent (the “Compensation Period”) at a rate per annum
equal to the Federal Funds Rate from time to time in effect. If such Lender
pays such amount to the Administrative Agent, then such amount shall constitute
such Lender’s Loan included in the applicable Borrowing.  If such Lender does not pay such amount
forthwith upon the Administrative Agent’s demand therefor, the Administrative
Agent may make a demand therefor upon the Borrower, and the Borrower shall pay
such amount to the Administrative Agent, together with interest thereon for the
Compensation Period at a rate per annum equal to the rate of interest
applicable to the applicable Borrowing, but in no event to exceed the Maximum
Rate.  Nothing herein shall be deemed to
relieve any Lender from its obligation to fulfill its Commitment or to
prejudice any rights which the Administrative Agent or the Borrower may have
against any Lender as a result of any default by such Lender hereunder.

 

38

 

A notice of the
Administrative Agent to any Lender with respect to any amount owing under this
subsection (d) shall be conclusive, absent manifest error.

 

(iii)     If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided
in the foregoing provisions of this Article II, and the conditions to
the applicable Credit Extension set forth in Article IV are not
satisfied or waived in accordance with the terms hereof, the Administrative
Agent shall return such funds (in like funds as received from such Lender) to
such Lender, without interest.

 

(e)  The obligations of the Lenders hereunder to
make Loans and to fund participations in Letters of Credit are several and not
joint.  The failure of any Lender to
make any Loan or to fund any such participation on any date required hereunder
shall not relieve any other Lender of its corresponding obligation to do so on
such date, and no Lender shall be responsible for the failure of any other
Lender to so make its Loan or purchase its participation.

 

(f)  Nothing herein shall be deemed to obligate
any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any Lender that it has obtained or will
obtain the funds for any Loan in any particular place or manner.

 

2.13   Sharing of
Payments.

 

If, other than as
expressly provided elsewhere herein, any Lender shall obtain on account of the
Loans made by it, or the participations in L/C Obligations held by it, any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) in excess of its ratable share (or other share
contemplated hereunder) thereof, such Lender shall immediately (a) notify the
Administrative Agent of such fact, and (b) purchase from the other Lenders such
participations in such Loans made by them and/or such subparticipations in the
participations in L/C Obligations held by them, as the case may be, as shall be
necessary to cause such purchasing Lender to share the excess payment in
respect of such Loans or such participations, as the case may be, pro rata with
each of them; provided, however, that if all or any portion of
such excess payment is thereafter recovered from the purchasing Lender, such
purchase shall to that extent be rescinded and each other Lender shall repay to
the purchasing Lender the purchase price paid therefor, together with an amount
equal to such paying Lender’s ratable share (according to the proportion of (i)
the amount of such paying Lender’s required repayment to (ii) the total amount
so recovered from the purchasing Lender) of any interest or other amount paid
or payable by the purchasing Lender in respect of the total amount so
recovered.  The Borrower agrees that any
Lender so purchasing a participation from another Lender may, to the fullest
extent permitted by law, exercise all its rights of payment including the right
of set-off, but subject to Section 10.09 with respect to such
participation as fully as if such Lender were the direct creditor of the Borrower
in the amount of such participation. 
The Administrative Agent will keep records (which shall be conclusive
and binding in the absence of manifest error) of participations purchased under
this Section and will in each case notify the Lenders following any such
purchases or repayments.  Each Lender
that purchases a participation pursuant to this Section shall from and after
such purchase have the right to give all notices, requests, demands, directions
and other communications under this Agreement with respect to 

 

39

 

the portion of the
Obligations purchased to the same extent as though the purchasing Lender were
the original owner of the Obligations purchased.

 

2.14   Security.

 

(a)  At all times after the Closing Date, the
Obligations shall be secured in accordance with the Collateral Documents.

 

(b)  The Borrower hereby grants to the
Administrative Agent, for the benefit of the Administrative Agent, the L/C
Issuers and the Lenders, a Lien upon all cash, Cash Equivalents and deposit
account balances at any time used to Cash Collateralize any of the Borrower’s
Obligations hereunder (collectively, the “Cash Collateral”), and
authorizes the Administrative Agent to apply such Cash Collateral to the
payment of L/C Obligations pursuant to Section 9.11(c) or to the payment
of Eurodollar Rate Loans pursuant to Section 2.05(f), in each case as
and when due.  The Borrower authorizes
and directs the Administrative Agent to apply amounts Cash Collateralized under
Section 2.05(g) to Obligations as and when they become due.

 

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01   Taxes.

 

(a)  Any and all payments by the Borrower to or
for the account of the Administrative Agent or any Lender under any Loan
Document shall be made free and clear of and without deduction for any and all
present or future taxes, duties, levies, imposts, deductions, assessments,
fees, withholdings or similar charges, and all liabilities with respect
thereto, excluding, in the case of the Administrative Agent and each
Lender, taxes imposed on or measured by its net income, and franchise taxes
imposed on it (in lieu of net income taxes), by the jurisdiction (or any
political subdivision thereof) under the Laws of which the Administrative Agent
or such Lender, as the case may be, is organized or maintains a lending office
(all such non-excluded taxes, duties, levies, imposts, deductions, assessments,
fees, withholdings or similar charges, and liabilities being hereinafter
referred to as “Taxes”).  If the
Borrower shall be required by any Laws to deduct any Taxes from or in respect
of any sum payable under any Loan Document to the Administrative Agent or any
Lender, (i) subject to the last sentence of Section 10.15(a), the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section), the Administrative Agent and such Lender receives an amount
equal to the sum it would have received had no such deductions been made, (ii)
the Borrower shall make such deductions, (iii) the Borrower shall pay the full
amount deducted to the relevant taxation authority or other authority in
accordance with applicable Laws, and (iv) within 30 days after the date of such
payment, the Borrower shall furnish to the Administrative Agent (which shall
forward the same to such Lender) the original or a certified copy of a receipt
evidencing payment thereof.

 

(b)  In addition, the Borrower agrees to pay any
and all present or future stamp, court or documentary taxes and any other
excise or property taxes or charges or similar levies which arise from any
payment made under any Loan Document or from the execution, delivery, 

 

40

 

performance,
enforcement or registration of, or otherwise with respect to, any Loan Document
(hereinafter referred to as “Other Taxes”).

 

(c)  Subject to the last sentence of Section
10.15(a), if the Borrower shall be required to deduct or pay any Taxes or
Other Taxes from or in respect of any sum payable under any Loan Document to
the Administrative Agent or any Lender, the Borrower shall also pay to the
Administrative Agent (for the account of such Lender) or to such Lender, at the
time interest is paid, such additional amount that such Lender specifies (in
reasonable detail) as necessary to preserve the after-tax yield (after
factoring in all taxes, including taxes imposed on or measured by net income)
such Lender would have received if such Taxes or Other Taxes had not been
imposed.

 

(d)  The Borrower agrees to indemnify the
Administrative Agent and each Lender for (i) the full amount of Taxes and Other
Taxes (including any Taxes or Other Taxes imposed or asserted by any
jurisdiction on amounts payable under this Section) paid by the Administrative
Agent and such Lender (other than for any withholding permitted by clause (x)
of the last sentence of Section 10.15(a)), (ii) amounts payable under Section
3.01(c) and (iii) any liability (including penalties, interest and
expenses) arising therefrom or with respect thereto, in each case whether or
not such Taxes or Other Taxes were correctly or legally imposed or asserted by
the relevant Governmental Authority. 
Payment under this subsection (d) shall be made within 30 days after the
date the Lender or the Administrative Agent makes a demand therefor and
provides reasonable evidence of payment.

 

(e)  Each Lender that is not an export credit
agency hereby represents that, as of the date it became a Lender under this
Agreement, it was not subject to any Taxes applicable to payments made by the
Borrower hereunder.

 

3.02   Illegality.

 

If any Lender
determines that any Law has made it unlawful, or that any Governmental
Authority has asserted that it is unlawful, for any Lender or its applicable
Lending Office to make, maintain or fund Eurodollar Rate Loans, or materially
restricts the authority of such Lender to purchase or sell, or to take deposits
of, Dollars in the applicable offshore Dollar market, or to determine or charge
interest rates based upon the Eurodollar Rate, then, on notice thereof by such
Lender to the Borrower through the Administrative Agent, any obligation of such
Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans
to Eurodollar Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to
such determination no longer exist. 
Upon receipt of such notice, the Borrower shall, upon demand from such
Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all Eurodollar Rate Loans of such Lender to Base Rate Loans, either on
the last day of the Interest Period thereof, if such Lender may lawfully
continue to maintain such Eurodollar Rate Loans to such day, or immediately, if
such Lender may not lawfully continue to maintain such Eurodollar Rate
Loans.  Upon any such prepayment or
conversion, the Borrower shall also pay interest on the amount so prepaid or
converted.  Each Lender agrees, to the
extent permitted by applicable law, to designate a 

 

41

 

different Lending
Office if such designation will avoid the need for such notice and will not, in
the good faith judgment of such Lender, otherwise be materially disadvantageous
to such Lender.

 

3.03   Inability
to Determine Rates.

 

If the
Administrative Agent determines in connection with any request for a Eurodollar
Rate Loan or a conversion to or continuation thereof that (a) Dollar deposits
are not being offered to banks in the London interbank eurodollar market for
the applicable amount and Interest Period of such Eurodollar Rate Loan, (b)
adequate and reasonable means do not exist for determining the Eurodollar Rate
for such Eurodollar Rate Loan, or (c) the Eurodollar Rate for such Eurodollar
Rate Loan does not adequately and fairly reflect the cost to the Lenders of
funding such Eurodollar Rate Loan, the Administrative Agent will promptly
notify the Borrower and all Lenders. 
Thereafter, the obligation of the Lenders to make or maintain Eurodollar
Rate Loans shall be suspended until the Administrative Agent revokes such
notice.  Upon receipt of such notice,
the Borrower may revoke any pending request for a Borrowing, conversion or
continuation of Eurodollar Rate Loans or, failing that, will be deemed to have
converted such request into a request for a Borrowing of Base Rate Loans in the
amount specified therein.

 

3.04   Increased
Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate
Loans.

 

(a)  If any Lender determines that as a result of
the introduction of or any change in or in the interpretation of any Law, or
such Lender’s compliance therewith (as so introduced or changed), there shall
be any increase in the cost to such Lender of agreeing to make or making,
funding or maintaining Eurodollar Rate Loans or (as the case may be) issuing or
participating in Letters of Credit, or a reduction in the amount received or
receivable by such Lender in connection with any of the foregoing (excluding
for purposes of this subsection (a) any such increased costs or reduction in
amount resulting from (i) Taxes or Other Taxes (as to which Section 3.01
shall govern), (ii) changes in the basis of taxation of overall net income or
overall gross income by the United States or any foreign jurisdiction or any
political subdivision of either thereof under the Laws of which such Lender is
organized or has its Lending Office, and (iii) reserve requirements utilized,
as to Eurodollar Rate Loans, in the determination of the Eurodollar Rate), then
from time to time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender such additional
amounts as will compensate such Lender for such increased cost or reduction.

 

(b)  If any Lender determines that the
introduction of any Law regarding capital adequacy or any change therein or in
the interpretation thereof (as so introduced or changed), or compliance by such
Lender (or its Lending Office) therewith, has the effect of reducing the rate
of return on the capital of such Lender or any corporation controlling such
Lender as a consequence of such Lender’s obligations hereunder (taking into
consideration its policies with respect to capital adequacy and such Lender’s
desired return on capital), then from time to time upon demand of such Lender
(with a copy of such demand to the Administrative Agent), the Borrower shall
pay to such Lender such additional amounts as will compensate such Lender for such
reduction.

 

42

 

3.05   Funding Losses.

 

Upon demand of any
Lender (with a copy to the Administrative Agent) from time to time, the
Borrower shall promptly compensate such Lender for and hold such Lender harmless
from any loss, cost or expense incurred by it as a result of:

 

(a)  any continuation, conversion, payment or
prepayment of any Loan other than a Base Rate Loan on a day other than the last
day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise); or

 

(b)  any failure by the Borrower (for a reason
other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the
amount notified by the Borrower;

 

including any loss
of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable
to terminate the deposits from which such funds were obtained.  The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

 

For purposes of
calculating amounts payable by the Borrower to the Lenders under this Section
3.05, each Lender shall be
deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar
Base Rate used in determining the Eurodollar Rate for such Loan by a matching
deposit or other borrowing in the applicable offshore Dollar interbank market
for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded.

 

3.06   Matters
Applicable to all Requests for Compensation.

 

(a)  A certificate of the Administrative Agent or
any Lender claiming compensation under this Article III and setting
forth the additional amount or amounts to be paid to it hereunder shall be
conclusive in the absence of manifest error. 
In determining such amount, the Administrative Agent or such Lender may
use any reasonable averaging and attribution methods.

 

(b)  If the Borrower becomes obligated to make
any additional or increased payment with respect to any Lender by reason of Section
3.01(a), or upon any Lender making a claim for compensation under Section
3.01 or 3.04 or having its obligations with respect to Eurodollar
Rate Loans suspended under Section 3.02, the Borrower may remove or
replace such Lender in accordance with Section 10.16.

 

3.07   Survival.

 

All of the
Borrower’s obligations under this Article III shall survive termination
of the Aggregate Commitments and repayment of all other Obligations.

 

43

 

3.08   Dissolving
Subsidiaries.

 

Each of ABT Canada
Limited., L-P Foreign Sales Corporation, Louisiana-Pacific, S.A. de C.V. and Louisiana-Pacific
Acquisition Inc. (each, a “Dissolving Subsidiary”) is in the process of,
or has been, dissolved, and each such Person has no material assets and no
material direct or contingent liabilities.

 

ARTICLE IV.

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

4.01   Conditions
of Initial Credit Extension.

 

The obligation of
each Lender to make its initial Credit Extension hereunder is subject to
satisfaction of the following conditions precedent:

 

(a)  Unless waived by all the Lenders (or by the
Administrative Agent with respect to immaterial matters or immaterial items
(which shall not include the incumbency certificate, resolutions, articles or
bylaws of the Borrower) specified in clause (iii) or (iv) below with respect to
which the Borrower has given assurances satisfactory to the Administrative
Agent that such items shall be delivered promptly following the Closing Date),
the Administrative Agent’s receipt of the following, each of which shall be
originals or facsimiles (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the signing Loan
Party, each dated the Closing Date (or, in the case of certificates of
governmental officials, a recent date before the Closing Date) and each in form
and substance satisfactory to the Administrative Agent and its legal counsel:

 

(i)       executed counterparts of this Agreement
and the Intercreditor Agreement, sufficient in number for distribution to the
Administrative Agent, each Lender and the Borrower;

 

(ii)      executed Pledge Agreement, Security
Agreement and Deed of Trust in appropriate form for recording, as applicable,
together with

 

(A) UCC-1
financing statements executed by the Borrower or the Subsidiaries, as
applicable, to be filed, registered or recorded as necessary or advisable to
perfect the Liens of the Administrative Agent for the benefit of the Lenders
under the Collateral Documents in accordance with applicable law;

 

(B) written advice
relating to such Lien and judgment searches as the Administrative Agent shall
have reasonably requested with respect to any of the Collateral, and such
termination statements or other documents, including payoff letters, as may be
necessary to release any Lien not permitted by Section 7.01;

 

(C) evidence that
all other actions necessary or, in the reasonable opinion of the Administrative
Agent, desirable, have been taken to perfect and protect the first priority
security interest created by the Collateral Documents other than the Security
Agreement, 

 

44

 

subject only to
Liens permitted under Section 7.01(c), (d) and (h), and
the security interest created by the Security Agreement, subject only to Liens
permitted under Section 7.01(b), (c), (d), (h), (j)
and (o);

 

(D)  evidence that adequate arrangements have
been made for payment by the Borrower of any filing or recording tax or fee in
connection with the Deed of Trust;

 

(E)  with respect to the Mortgaged Property,
standard A.L.T.A. or comparable policies of title insurance or a binder or
binders issued by Fidelity National Title insuring or undertaking to insure, in
the case of a binder, that the applicable Deed of Trust creates and constitute
valid Liens against such Mortgaged Property in favor of the Administrative
Agent, for the benefit of the Lenders, subject only to exceptions reasonably
acceptable to the Administrative Agent and the Required Lenders, with such
endorsements and affirmative insurance as the Administrative Agent or the
Required Lenders may reasonably request;

 

(F)  proof of payment of all title insurance
premiums, documentary stamp or intangible taxes, recording fees and mortgage
taxes payable in connection with the recording of the Deed of Trust or the
issuance of the title insurance policies, including sums, if any, due in
connection with any future advances that may be in the form of disbursement
instructions and associated payoff letters approved by the relevant title
insurers and reasonably acceptable to the Administrative Agent;

 

(G)  all certificates and instruments
representing Pledged Collateral and such stock transfer powers executed in
blank as the Administrative Agent may specify; and

 

(H)  evidence that the Administrative Agent has
been named loss payee under applicable policies of casualty insurance covering
the Collateral under the Security Agreement, and additional insured under all
policies of liability insurance required by the Collateral Documents;

 

(iii)     such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Administrative Agent may require to
establish the identities of and verify the authority and capacity of each
Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Agreement and the other Loan Documents to which such Loan
Party is a party;

 

(iv)     such evidence as the Administrative Agent
may reasonably require to verify that each Loan Party is duly organized or
formed, validly existing, in good standing and qualified to engage in business
in each jurisdiction in which it is required to be qualified to engage in
business, including certified copies of each Loan Party’s Organization
Documents, certificates of good standing and/or qualification to engage in business
and tax clearance certificates;

 

45

 

(v)      a certificate signed by a Responsible
Officer of the Borrower certifying (A) that the conditions specified in Sections
4.02(a) and (b) have been satisfied, and (B) that other than as
disclosed in the quarterly financial statements of the Borrower for the period
ended June 30, 2001 or in other public disclosures made by the Borrower or as
disclosed in writing to the Lenders on or before October 16, 2001, there has been
no event or circumstance since the date of the Audited Financial Statements
which has or could be reasonably expected to have a Material Adverse Effect;

 

(vi)     opinions of counsel to each Loan Party
substantially in the forms of Exhibits E-1, E-2, and E-3;

 

(vii)    evidence that the Existing Credit Facility
has been or concurrently with the Closing Date is being terminated and that
satisfactory arrangements have been made for the payment in full of all
obligations thereunder;

 

(viii)   a copy of (A) summary appraisal reports with
respect to all of the timberlands owned by the Borrower and its Subsidiaries in
Texas and Louisiana, and (B) detailed appraisal reports with respect to all of
the Mortgaged Property, each in form and substance satisfactory to the Administrative
Agent and the Lenders and prepared by an independent appraiser retained by the
Administrative Agent at the Borrower’s expense, and with respect to the
appraisal of the Mortgaged Property, showing that the Collateral Coverage Ratio
is at least 2.0:1.0;

 

(ix)     evidence that the Permitted Securitization
has closed and that the Borrower has a Borrowing Base (as defined in the
Permitted Securitization Credit and Security Agreement) of at least
$70,000,000;

 

(x)      executed copies of the Second Amendment to
Standby Purchase and Note Support Agreement, in form and substance acceptable
to the Required Lenders; and

 

(xi)     such other assurances, certificates,
documents, consents or opinions as the Administrative Agent, the L/C Issuers or
the Required Lenders reasonably may require.

 

(b)  Any fees required to be paid on or before
the Closing Date pursuant to the Loan Documents shall have been paid.

 

(c)  The Borrower shall have paid all Attorney
Costs of the Administrative Agent to the extent invoiced prior to or on the
Closing Date, plus such additional amounts of Attorney Costs as shall
constitute its reasonable estimate of Attorney Costs 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 Borrower and the
Administrative Agent).

 

46

 

 

4.02   Conditions
to all Credit Extensions and Conversions and Continuations.

 

The obligation of
each Lender to honor any Request for Credit Extension (other than a Loan Notice
requesting only a conversion of a Loan from a Eurodollar Rate Loan to a Base
Rate Loan) is subject to the following conditions precedent:

 

(a)  The representations and warranties of the
Borrower in Article V, of the Borrower or any Loan Party in any Loan
Document, and of the Borrower or any Loan Party in any document executed and
delivered at any time under or in connection herewith, shall be true and
correct in all material respects on and as of the date of such Credit
Extension, conversion or continuation, except to the extent that such
representations and warranties provide that they are made as of an earlier
date, in which case they shall be true and correct in all material respects as
of such earlier date.

 

(b)  No Default or Event of Default shall exist,
or would result from such proposed Credit Extension, conversion or
continuation.

 

(c)  The Administrative Agent and, if applicable,
the relevant L/C Issuer shall have received a Request for Credit Extension in
accordance with the requirements hereof.

 

(d)  The Administrative Agent shall have
received, in form and substance satisfactory to it, such other assurances,
certificates, documents or consents related to the foregoing as the
Administrative Agent or the Required Lenders reasonably may require.

 

Each Request for
Credit Extension submitted by the Borrower (other than a Loan Notice requesting
only a conversion of a Loan from a Eurodollar Rate Loan to a Base Rate Loan)
shall be deemed to be a representation and warranty that the conditions
specified in Sections 4.02(a) and (b) have been satisfied on and
as of the date of the applicable Credit Extension.

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

 

The Borrower
represents and warrants to the Administrative Agent and the Lenders that:

 

5.01   Existence,
Qualification and Power; Compliance with Laws.

 

It is duly
qualified and is licensed and in good standing under the Laws of the State of
Texas and has complied with all other conditions prerequisite to its lawfully
doing business in each such State.  Each
Loan Party (a) is a corporation duly organized or formed, validly existing and
in good standing under the Laws of the jurisdiction of its incorporation or
organization, (b) has all requisite power and authority and all governmental
licenses, authorizations, consents and approvals to own its assets, carry on
its business and to execute, deliver, and perform its obligations under the
Loan Documents to which it is a party, (c) is duly qualified and is licensed and
in good standing under the Laws of each jurisdiction where its ownership, lease
or operation of properties or the conduct of its business requires such
qualification or license, and has complied with all other conditions
prerequisite to its lawfully doing business in each such 

 

47

 

jurisdiction, (d) is in compliance with all Laws applicable to such
Loan Party or its properties, and (e) has all requisite corporate power and all
government certificates of authority, licenses, permits, qualifications, and
documentation to own, lease and operate its properties and to carry on its
business as now being, and as proposed to be, conducted, except in each case
referred to in clauses (c), (d) or (e), to the extent that failure to be so
qualified, licensed, in good standing, in compliance, or to have such power,
certificates, qualification or documentation, as applicable, could not
reasonably be expected to have a Material Adverse Effect.

 

5.02   Authorization; No
Contravention.

 

The execution,
delivery and performance by each Loan Party of each Loan Document to which such
Person is party, have been duly authorized by all necessary corporate or other
organizational action, and do not and will not (a) contravene the terms of any
of such Person’s Organization Documents; (b) conflict with or result in any
breach or contravention of, or the creation of any Lien under (other than the
Liens created under the Loan Documents), any Contractual Obligation to which
such Person is a party or any order, injunction, writ or decree of any
Governmental Authority to which such Person or its property is subject; or (c)
violate any Law applicable to such Loan Party.

 

5.03   Governmental
Authorization.

 

No approval,
consent, exemption, authorization, or other action by, or notice to, or filing
with, any Governmental Authority is necessary or required in connection with
the execution, delivery or performance by, or enforcement against, any Loan
Party of this Agreement or any other Loan Document, except, with respect to the
perfection of the Liens granted to the Administrative Agent under the Loan
Documents for the benefit of the Lenders, such recordings and filings described
in Section 5.09.

 

5.04   Binding Effect.

 

This Agreement has
been, and each other Loan Document, when delivered hereunder, will have been
duly executed and delivered by each Loan Party that is party thereto.  This Agreement constitutes, and each other
Loan Document when so delivered will constitute, a legal, valid and binding
obligation of each Loan Party that is party thereto, enforceable against such
Loan Party in accordance with its terms, except as enforceability may be
limited by Debtor Relief Laws or by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

5.05   Financial Statements; No Material Adverse Effect.

 

(a)  The Audited Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; (ii) fairly
present in all material respects the financial condition of the Borrower and
its Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein; and
(iii) reflect all material indebtedness and other liabilities, 

 

48

 

direct or contingent, of the Borrower and its Subsidiaries as of the
date thereof, including liabilities for taxes, material commitments and
Indebtedness, in each case to the extent required to be so reflected under GAAP
consistently applied throughout the period covered thereby.

 

(b)  Since the date of the Audited Financial
Statements, other than as disclosed in the quarterly financial statements of
the Borrower for the period ended June 30, 2001 or in other public disclosures
made by the Borrower or as disclosed in writing to the Lenders on or before
October 16, 2001, there has been no event or circumstance that has or could
reasonably be expected to have a Material Adverse Effect.

 

5.06   Litigation.

 

Except as
disclosed on Schedule 5.06 there are no actions, suits, proceedings,
claims or disputes pending or, to the knowledge of the Borrower, threatened, at
law, in equity, in arbitration or before any Governmental Authority, by or
against the Borrower or any of its Subsidiaries or against any of their
properties or revenues that (a) purport to affect or pertain to this Agreement
or any other Loan Document, or any of the transactions provided for herein, or
(b) could reasonably be expected to have a Material Adverse Effect.

 

5.07   No Default.

 

Neither the
Borrower nor any Subsidiary is in default under or with respect to any
Contractual Obligation which could be reasonably expected to have a Material
Adverse Effect.  No Default or Event of
Default has occurred and is continuing or would be reasonably expected to
result from the consummation of the transactions provided for in this Agreement
or any other Loan Document.

 

5.08   Ownership
of Property; Liens.

 

The Borrower and
each Subsidiary has good record and marketable title in fee simple to, or valid
leasehold interests in, all real property necessary or used in the ordinary
conduct of its business, except for such defects in title as could not,
individually or in the aggregate, be reasonably expected to have a Material
Adverse Effect.  The property of the
Borrower and its Subsidiaries is subject to no Liens other than Liens permitted
by Section 7.01.  The Borrower
has good record and marketable title to all of the Land and standing Timber (as
defined in the Deed of Trust), subject to Liens permitted by Section 7.01(h).  As of the Closing Date, there is no
financing statement or other document creating or evidencing a Lien now on file
in any public office covering any of such Land or standing Timber except with
respect to Liens permitted under Section 7.01(g) and (h).

 

5.09   Collateral
Documents.

 

(a)  The provisions of each of the Collateral
Documents are effective to create in favor of the Administrative Agent for the
benefit of the Lenders a legal, valid and enforceable security interest in all
right, title and interest of the Borrower in the personal property Collateral;
and, upon (i) the filing of financing statements in the appropriate
governmental offices in the 

 

49

 

jurisdictions
listed on Schedule 5.09(a) (other than any such governmental offices
that refuse to accept such financing statements because the states in which
such offices are located have modified their laws governing the filing of such
financing statements), (ii) the recording of the Deed of Trust in the Texas
counties identified in Schedule 5.09(b), and (iii) the delivery to the
Administrative Agent of the Pledged Collateral, the Administrative Agent for
the benefit of the Lenders shall have a perfected first priority security
interest in all right, title and interest of the Borrower in the personal
property Collateral other than the Collateral under the Security Agreement and
the Pledge Agreement, subject only to Liens permitted under Section 7.01(c),
(d), (h), and (j) and a perfected security interest in all
right, title and interest of the Borrower in the Collateral under the Security
Agreement and the Pledge Agreement, subject in priority only to Liens permitted
under Section 7.01(b), (c), (d), (h), and (j),
and, with respect to the Collateral under the Security Agreement, subject in
priority to Liens permitted under Section 7.01(o), in each case to the
extent such perfection may be effected through the filing of a financing
statement under the UCC or a recording of a deed of trust.

 

(b)  The Deed of Trust when delivered will be
effective to grant to the Administrative Agent for the benefit of the Lenders a
legal, valid and enforceable deed of trust lien on all the right, title and
interest of the trustor under the Deed of Trust in the Mortgaged Property
described therein.  When the Deed of
Trust is duly recorded in the official real property records of the counties in
which the real property described in the Deed of Trust is located, and the
recording fees and taxes in respect thereof are paid and compliance is
otherwise had with the formal requirements of state law applicable to the
recording of deeds of trust generally, (i) the Land and standing Timber (as
each such term is defined in the Deed of Trust) will be subject to a legal,
valid, enforceable and perfected first priority deed of trust or mortgage, as
applicable, subject to no Liens except Liens permitted under Section 7.01(h)
and (ii) the other Mortgaged Property will be subject to a legal, valid,
enforceable and perfected first priority security interest, subject to no Liens
except Liens permitted under Section 7.01(c), (d), (h) and
(j).

 

(c)  No person other than the Borrower has any
mineral estate or any similar interest in or related to the Mortgaged Property
that could, through the exercise of any right to use the surface of the land
constituting Mortgaged Property for the extraction or development of such
minerals or similar interest, interfere with the growing of timber thereon or
the harvest of timber therefrom, or decrease the value of the Mortgaged
Property as currently used, which interference or decrease could reasonably be
expected to have a Material Adverse Effect.

 

(d)  All representations and warranties of the
Borrower in the Collateral Documents and all other Loan Documents (i) are true
and correct in all material respects, except to the extent that such
representations and warranties provide that they are made as of an earlier
date, in which case they are true and correct in all material respects as of
such earlier date and (ii) shall at all times be construed to be for the
benefit of the Administrative Agent and the Lenders, and they shall remain in
full force and effect, notwithstanding the assignment of any of the Collateral
Documents or the foreclosure or the partial release of the Liens created
thereunder, in each case, until the occurrence of the events described in Section
9.11(b)(i).

 

50

 

 

5.10   Environmental
and Zoning Compliance.

 

The Borrower
conducts, in the ordinary course of business, for itself and its Subsidiaries,
a review of the effect of existing Environmental Laws and claims alleging
potential liability or responsibility for violation of any Environmental Law on
their respective businesses, operations and properties, and as a result thereof
the Borrower has reasonably concluded that such Environmental Laws and claims
could not, individually or in the aggregate, be reasonably expected to have a
Material Adverse Effect.  The Borrower’s
use and operation of the Mortgaged Property are in compliance with all
applicable Laws, including all applicable land use and zoning laws, except to
the extent that non-compliance could not be reasonably expected to have a
Material Adverse Effect.

 

5.11   Insurance.

 

The properties of
the Borrower and its Subsidiaries are insured with financially sound and
reputable insurance companies not Affiliates of the Borrower, in such amounts,
with such deductibles and covering such risks as are customarily carried by
companies engaged in similar businesses and owning similar properties in
localities where the Borrower or its Subsidiaries operate.

 

5.12   Taxes.

 

The Borrower and
its Subsidiaries have filed all Federal, state and other material tax returns
and reports required to be filed, and have paid all Federal, state and other
material taxes, assessments, fees and other governmental charges levied or
imposed upon them or their properties, income or assets otherwise due and
payable, except those which are not yet delinquent (giving effect to any
applicable grace or cure period) or are being contested in good faith by
appropriate proceedings and for which adequate reserves have been provided in
accordance with GAAP.  To the Borrower’s
knowledge, there is no proposed tax assessment against the Borrower or any
Subsidiary that could, if made, be reasonably expected to have a Material
Adverse Effect.

 

5.13   ERISA Compliance.

 

(a)  Each Plan is in compliance in all material
respects with the applicable provisions of ERISA, the Code and other Federal or
state Laws.  Each Plan that is intended
to qualify under Section 401(a) of the Code has received a favorable
determination letter from the IRS or an application for such a letter is
currently being or will be processed by the IRS with respect thereto and such
application is or will be within a remedial amendment period and, to the
Borrower’s knowledge, nothing has occurred which would prevent, or cause the
loss of, such qualification which is not correctable without cost or at a cost
that is immaterial.  The Borrower and
each ERISA Affiliate have made all required contributions to each Plan subject
to Section 412 of the Code, and no application for a funding waiver or an
extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Plan.

 

51

 

(b)  There are no pending or, to the Borrower’s
knowledge, threatened claims, actions or lawsuits, or action by any
Governmental Authority, with respect to any Plan that could be reasonably
expected to have a Material Adverse Effect. 
There has been no prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan that has resulted or could be
reasonably expected to result in a Material Adverse Effect.

 

(c)  (i) 
No ERISA Event has occurred within the past 12 years or is reasonably
expected to occur; (ii) except as specifically disclosed in Schedule 5.13,
no Pension Plan has any Unfunded Pension Liability; (iii) neither the Borrower
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability
under Title IV of ERISA with respect to any Pension Plan (other than premiums
due and not delinquent under Section 4007 of ERISA); (iv) neither the Borrower
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability (and no event has occurred which, with the giving of notice under
Section 4219 of ERISA, could be reasonably expected to result in such
liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer
Plan; and (v) neither the Borrower nor any ERISA Affiliate has engaged in a
transaction that could be subject to Sections 4069 or 4212(c) of ERISA.

 

5.14   Subsidiaries.

 

As of the Closing
Date, the Borrower has no Subsidiaries other than those specifically disclosed
in Part (a) of Schedule 5.14 and has no equity investments in any other
corporation or entity other than those specifically disclosed in Part(b) of Schedule
5.14.

 

5.15   Margin Regulations;
Investment Company Act; Public Utility Holding Company Act.

 

(a)  The proceeds of the Loans are to be used
solely for the purposes set forth in and permitted by Section 6.12 and Section
7.13.  Neither the Borrower nor any
of its Subsidiaries is engaged and will not engage, principally or as one of
its important activities, in the business of purchasing or carrying margin
stock (within the meaning of Regulation U issued by the Board), or extending
credit for the purpose of purchasing or carrying margin stock.

 

(b)  None of the Borrower, any Person controlling
the Borrower, or any Subsidiary (i) is a “holding company,” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or of
a “subsidiary company” of a “holding company,” within the meaning of the Public
Utility Holding Company Act of 1935, or (ii) is or is required to be registered
as an “investment company” under the Investment Company Act of 1940.

 

5.16   Solvency.

 

The Borrower and
each of its Subsidiaries is Solvent.

 

5.17   Disclosure.

 

No statement,
information, report, representation, or warranty made by any Loan Party in any
Loan Document or furnished to the Administrative Agent or any Lender by or on
behalf of 

 

52

 

any Loan Party in
connection with any Loan Document contains any untrue statement of a material
fact or omits any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading.

 

ARTICLE VI.

AFFIRMATIVE COVENANTS

 

So long as any
Lender shall have any Commitment, or any Loan or other Obligation for the
payment of money that has accrued and is payable shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower
shall, and shall (except in the case of the covenants set forth in Sections
6.01, 6.02, 6.03, 6.11, and 6.13) cause each
Subsidiary to:

 

6.01   Financial
Statements and Timber Reports.

 

Deliver to the
Administrative Agent and each Lender, in form and detail satisfactory to the
Administrative Agent and the Required Lenders:

 

(a)  as soon as available, but in any event
within 90 days after the end of each fiscal year of the Borrower, a
consolidated balance sheet of the Borrower and its Subsidiaries as at the end
of such fiscal year, and the related consolidated statements of income and cash
flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail, audited and
accompanied by a report and opinion of an independent certified public
accountant of nationally recognized standing reasonably acceptable to the
Administrative Agent, which report and opinion shall be prepared in accordance
with GAAP and shall not be subject to any qualifications or exceptions as to
the scope of the audit nor to any qualifications and exceptions not reasonably
acceptable to the Administrative Agent; and

 

(b)  as soon as available, but in any event
within 45 days after the end of each of the first three fiscal quarters of each
fiscal year of the Borrower, a consolidated balance sheet of the Borrower and
its Subsidiaries as at the end of such fiscal quarter, and the related
consolidated statements of income and cash flows for such fiscal quarter and
for the portion of the Borrower’s fiscal year then ended, setting forth in each
case in comparative form the figures for the corresponding fiscal quarter of
the previous fiscal year and the corresponding portion of the previous fiscal
year, all in reasonable detail and certified by a Responsible Officer of the
Borrower as presenting fairly in all material respects the financial condition,
results of operations and cash flows of the Borrower and its Subsidiaries in
accordance with GAAP, subject only to normal year-end audit adjustments and the
absence of footnotes; and

 

(c)  as soon as practicable and in any event
within 30 days after the end of each calendar month, internal monthly
consolidated financial statements of the Borrower and its Subsidiaries by
business segment, in reasonable detail and certified by a Responsible Officer of
the Borrower as presenting, in all material respects, fairly and in a manner
consistent with other such financial statements delivered under this Section
6.01(c), the financial condition, results of operations and cash flows of
the Borrower and its Subsidiaries; and

 

53

 

(d)  as soon as practicable and in any event
within 60 days after the end of each fiscal quarter, either (i) an appraisal
report from the same independent appraiser that produced the initial report
provided under Section 4.01(a)(viii)(B), prepared at the Borrower’s
expense, as of the end (or approximately the end) of the immediately preceding
fiscal quarter, and in the form of and using the same appraisal methods and
approaches as such initial report, or (ii) a certificate duly executed by a
Responsible Officer of the Borrower, certifying and setting forth a complete
report of all timber harvesting operations from the Mortgaged Property for such
fiscal quarter (the “Quarterly Timber Report”), including the following:

 

(A)  a summary of all locations of, and the
number of acres constituting, the Mortgaged Property;

 

(B)  a calculation of the Retail Timberlands
Value as of the end of such fiscal quarter;

 

(C)  a summary of activity, including a breakdown
of harvesting under stumpage agreements and under other types of agreements,
under (A) all outstanding timber cutting contracts or log sale agreements or
auctions or sales of logs conducted orally on the Mortgaged Property whereby
the Borrower, as seller, is or may become obligated to cut, harvest or
otherwise remove timber from the timberlands and to sell or deliver such timber
to third Persons, and (B) all stumpage and other timber cutting contracts,
including Scaling Bureau summaries of log deliveries under all such contracts
or agreements;

 

(D)  a summary of the total amount of timber cut
from the Mortgaged Property since the Closing Date and during the previous
fiscal quarter classified by species, total volumes removed and acreage
Disposed of with such additional details as the Required Lenders may reasonably
request;

 

(E)  an estimate of timber growth during the
previous fiscal quarter, provided that, regardless of the actual amount of such
estimate, the addition to Merchantable Timber Inventory for any consecutive
four fiscal quarters based upon such estimate shall not exceed 4% of
Merchantable Timber Inventory at the end of the fiscal quarter immediately
preceding such four fiscal quarters;

 

(F)  all proceeds received and revenues generated
by such cutting, harvesting, sale, exchange, or disposition during the previous
fiscal quarter and any other receipts from operation of the timberlands such as
wood use fees;

 

(G)  a summary of operating costs incurred in
connection with such cutting, harvesting, or removal during the previous fiscal
quarter; and

 

(H)  a summary of the status of timber harvesting
and similar permits applied for and received by the Borrower.

 

(e)  upon 45 days after notice to the Borrower by
the Administrative Agent of its determination, in its sole discretion, or at
the request of the Required Lenders, that the Mortgaged 

 

54

 

Property Per-Acre
Value may no longer accurately reflect the average Dollar value per acre of the
land comprising the Mortgaged Property or that the Deemed Mortgaged Property
Value may no longer accurately reflect the value of the Mortgaged Property, a
detailed appraisal report with respect to all of the land comprising Mortgaged
Property, in form and substance reasonably satisfactory to the Administrative
Agent and the Required Lenders and prepared by an independent appraiser
retained by the Administrative Agent at the Borrower’s expense and approved by
the Borrower (which approval shall not be unreasonably withheld or delayed),
setting forth such appraiser’s determination of the average Dollar value per
acre of the Mortgaged Property and the Deemed Mortgaged Property Value.

 

6.02   Certificates;
Other Information.

 

Deliver to the
Administrative Agent and each Lender, in form and detail satisfactory to the
Administrative Agent and the Required Lenders:

 

(a)  concurrently with the delivery of the
financial statements referred to in Section 6.01(a), a certificate
of its independent certified public accountants certifying such financial
statements and stating that in making the examination necessary therefor no
knowledge was obtained of any Default or Event of Default or, if any such
Default or Event of Default shall exist, stating the nature and status of such event;

 

(b)  concurrently with the delivery of the
financial statements referred to in Sections 6.01(a) and (b),
a duly completed Compliance Certificate signed by a Responsible Officer of the
Borrower;

 

(c)  no later than 3 Business Days after
requested by the Administrative Agent or any Lender, copies of any detailed
audit reports, management letters or recommendations submitted to the board of
directors (or the audit committee of the board of directors) of the Borrower by
independent accountants in connection with the accounts or books of the
Borrower or any Subsidiary, or any audit of any of them;

 

(d)  promptly after the same are available,
copies of each annual report, proxy or financial statement or other report or
communication sent to the stockholders of the Borrower, and copies of all
annual, regular, periodic and special reports and registration statements which
the Borrower filed with the Securities and Exchange Commission under Section 13
or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to
be delivered to the Administrative Agent pursuant hereto; and

 

(e)  promptly, such additional information
regarding the business, financial or corporate affairs of the Borrower or any
Subsidiary as the Administrative Agent, at the reasonable request of any
Lender, may from time to time request.

 

55

 

6.03   Notices.

 

Promptly (and in
any event, with respect to Section 6.03(a), no later than 5 Business
Days after knowledge thereof by a Responsible Officer) notify the
Administrative Agent and each Lender:

 

(a)  of the occurrence of any Default or Event of
Default;

 

(b)  of any matter that has resulted or could be
reasonably expected to have a Material Adverse Effect, including (i) breach or
non-performance of, or any default under, a Contractual Obligation of the
Borrower or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension between the Borrower or any Subsidiary and any
Governmental Authority; or (iii) the commencement of, or any material
development in, any litigation or proceeding affecting the Borrower or any
Subsidiary, including pursuant to any applicable Environmental Laws;

 

(c)  of any litigation, investigation or
proceeding affecting any the Borrower or any Subsidiary in which the amount
involved exceeds the Threshold Amount, or in which injunctive relief or similar
relief is sought, which relief, if granted, could be reasonably expected to
have a Material Adverse Effect;

 

(d)  of the occurrence of any ERISA Event;

 

(e)  of any amendment, restatement, extension,
supplement, refinancing, refunding, renewal or other modification of, or waiver
or consent with respect to, the Canadian Credit Facility; and

 

(f)  of any material change in accounting
policies or financial reporting practices by the Borrower or any Subsidiary.

 

Each notice
pursuant to this Section shall be accompanied by a statement of a Responsible
Officer of the Borrower setting forth details of the occurrence referred to
therein and stating what action the Borrower has taken and proposes to take
with respect thereto.  Each notice
pursuant to Section 6.03(a) shall describe with particularity any and
all provisions of this Agreement or other Loan Document that have been
breached.

 

6.04   Payment of Obligations.

 

Pay and discharge
as the same shall become due and payable or before they become delinquent
(giving effect to any applicable grace or cure period), as the case may be, all
its obligations and liabilities, the nonpayment or nondischarge of which could
reasonably be expected to have a Material Adverse Effect, including (a) all tax
liabilities, assessments and governmental charges or levies upon it or its
properties or assets; (b) all lawful claims which, if unpaid, would by law
become a Lien upon its property not permitted hereunder; and (c) all
Indebtedness, as and when due and payable, but subject to any subordination
provisions contained in any instrument or agreement evidencing or governing
such Indebtedness; except to 

 

56

 

the extent that
any of the same are being contested in good faith by appropriate proceedings
and adequate reserves in accordance with GAAP are being maintained by the
Borrower or such Subsidiary.

 

6.05   Preservation
of Existence and Rights.

 

Preserve, renew
and maintain in full force and effect its legal existence and good standing
under the Laws of the jurisdiction of its organization; take all reasonable
action to maintain all rights, privileges, permits, licenses and franchises
necessary or desirable in the normal conduct of its business, and preserve or
renew all of its registered patents, trademarks, trade names and service marks,
except, in each case, in a transaction permitted by Section 7.04 or 7.05
or to the extent that failure to do so could not reasonably be expected to have
a Material Adverse Effect.

 

6.06   Maintenance
of Properties.

 

(a)  Maintain, preserve and protect all of its
properties and equipment necessary in the operation of its business in good
working order and condition, ordinary wear and tear excepted; (b) make all
necessary repairs thereto and renewals and replacements thereof; (c) use the
standard of care typical in the industry in the operation and maintenance of
its facilities; and (d) not cause or permit any of the Personal Property (as
defined in the Deed of Trust) to be removed from the county in which it was
located on the Closing Date, except items that have become obsolete or worn
beyond practical use and that have been replaced by adequate substitutes having
a value equal to, or greater than, the replaced items when new; except in each
case to the extent that failure to do so could not reasonably be expected to
have a Material Adverse Effect.

 

6.07   Maintenance
of Insurance.

 

Maintain with financially
sound and reputable insurance companies not Affiliates of the Borrower,
insurance with respect to its properties and business against loss or damage of
the kinds customarily insured against by Persons engaged in the same or similar
business, of such types and in such amounts as are customarily carried under
similar circumstances by such other Persons.

 

6.08   Compliance with
Laws.

 

Comply in all
material respects with the requirements of all Laws applicable to it or to its
business or property, except in such instances in which (i) such requirement of
Law is being contested in good faith or a bona fide dispute exists with respect
thereto; or (ii) the failure to comply therewith could not reasonably be
expected to have a Material Adverse Effect.

 

6.09   Books and Records.

 

Maintain proper
books of record and account, in which, in each case, in conformity with GAAP
consistently applied, full, true and correct entries shall be made of all
financial transactions and matters involving the assets and business of the
Borrower or such Subsidiary, as the case may be.

 

57

 

6.10   Inspection
Rights.

 

Permit
representatives and independent contractors of the Administrative Agent to
visit and inspect any of its properties, to examine its corporate, financial
and operating records, and make copies thereof or abstracts therefrom, and to
discuss its affairs, finances and accounts with its directors, officers, and
independent public accountants, all at the expense of the Borrower and at such
reasonable times during normal business hours and as often as may be reasonably
desired, upon reasonable advance notice to the Borrower; provided, however,
that when an Event of Default exists the Administrative Agent or any Lender (or
any of their respective representatives or independent contractors) may do any
of the foregoing at the expense of the Borrower at any time during normal
business hours and without advance notice.

 

6.11   Compliance
with ERISA.

 

Do, and cause each
of its ERISA Affiliates to do, each of the following: (a) maintain each Plan in
compliance with the applicable provisions of ERISA, the Code and other Federal
or state law; (b) cause each Plan that is qualified under Section 401(a) of the
Code to maintain such qualification; and (c) make all required contributions to
any Plan subject to Section 412 of the Code; except, in each case, to the
extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect.

 

6.12   Use of Proceeds.

 

Use the proceeds
of the Credit Extensions for working capital, capital expenditures, to
refinance Indebtedness under the Existing Credit Facility and Indebtedness
permitted hereunder, and other general corporate purposes not in contravention
of any applicable Law or of any Loan Document.

 

6.13   Guaranties;
Stock Pledges; Collateral Documents.At any time:

 

(a)  Cause the following Subsidiaries to execute
a guaranty of payment of the Obligations, substantially in the form of Exhibit
B:

 

(i)       each existing and future Domestic
Subsidiary that holds assets (excluding intercompany assets) with book value
constituting 5% or more of the aggregate consolidated book value of the assets
(excluding intercompany assets) of the Borrower and its Subsidiaries; and

 

(ii)      if the aggregate book value of the assets
(excluding intercompany assets) held by the Borrower and the Subsidiaries that
have executed a Guaranty pursuant to clause (i) of this Section 6.13(a)
consists of 35% or less of the aggregate consolidated book value of assets
(excluding intercompany assets) of the Borrower and its Subsidiaries, then all
Domestic Subsidiaries.

 

Notwithstanding
the foregoing, neither the Securitization Subsidiary nor any Subsidiary
identified on Schedule 6.13(a) shall be required to execute a guaranty under
this Section 6.13(a).

 

58

 

(b)  Take all actions that the Administrative
Agent reasonably deems necessary or advisable to grant to the Administrative
Agent, for the benefit of the Lenders, a perfected first priority Lien in all
right, title and interest of the Borrower in the following percentages of the
Borrower’s Stock  in the following
Subsidiaries, subject only to Liens permitted under Section 7.01,
including the execution of amendments or other documentation in form and
substance reasonably satisfactory to the Administrative Agent in order to add
such percentages of Stock as pledged collateral under the Pledge Agreement, and
the taking of all actions that the Administrative Agent reasonably deems
necessary or advisable to perfect its Lien in such new Pledged Collateral,
including the delivery of all certificates and instruments representing such
new Pledged Collateral and such corresponding stock transfer powers executed in
blank as the Administrative Agent may specify:

 

(i)       100% of the Stock of each Domestic
Subsidiary that is a Guarantor;

 

(ii)      65% of the Stock of each Foreign
Subsidiary that is owned by either the Borrower or by a Domestic Subsidiary of
the Borrower and that holds assets (excluding intercompany assets) with book
value constituting 5% or more of the aggregate consolidated book value of the
assets (excluding intercompany assets) of the Borrower and its Subsidiaries;
and

 

(iii)     if the aggregate book value of the assets
(excluding intercompany assets) held by the Borrower and the Subsidiaries that
have executed a Guaranty pursuant to clause (i) of Section 6.13(a)
consists of 35% or less of the aggregate consolidated book value of assets
(excluding intercompany assets) of the Borrower and its Subsidiaries, then 65%
of the Stock of each other Foreign Subsidiary that is owned by either the
Borrower or by a Domestic Subsidiary of the Borrower.

 

(c)  If at any time the Collateral Coverage Ratio
is not at least 2:00 to 1:00, promptly take all actions and provide such
documents in order to grant a Lien upon such additional timberlands acceptable
to the Administrative Agent and in any event sufficient to cause the Collateral
Coverage Ratio to equal or exceed 2:00 to 1:00, and take all actions and
provide such documents with respect to the perfection of such Lien that were
required under Section 4.01(a)(ii) with respect to such Collateral and
any other actions and documents reasonably requested by the Administrative
Agent in connection therewith.

 

(d)  Do all things necessary or proper to defend
title to the Mortgaged Property, except that defense of a challenge or dispute
with respect to such title shall not be required if the aggregate value of all
Mortgaged Property for which title is being challenged or disputed has an
aggregate fair market value of less than $3,000,000 (as determined in the most
recent appraisal of such Mortgaged Property conducted pursuant to either Section
4.01(a)(viii), 6.01(d), or 6.01(e)), and if exclusion of the
Mortgaged Property in question in such challenge or dispute from the
calculation of the Collateral Coverage Ratio would not cause the Collateral
Coverage Ratio to be less than 2.0 to 1.0. 
The Administrative Agent shall have the right, at any time, to intervene
in any suit affecting such title and to employ independent counsel in
connection with any such suit 

 

59

 

to which it may be
a party by intervention or otherwise; and upon demand Borrower agrees to pay
the Administrative Agent all reasonable costs and expenses paid or incurred by
the Administrative Agent in respect of any such suit affecting title to any
such property or affecting the Liens or rights of the Administrative Agent, for
the benefit of the Lenders, under the Deed of Trust, including reasonable
Attorney Costs, and the Borrower shall indemnify and hold harmless the
Administrative Agent from and against any and all costs and expenses, including
any and all cost, loss, damage or liability that the Administrative Agent may
suffer or incur by reason of the failure or inability of the Borrower, for any
reason, to convey the rights, titles and interests that the Deed of Trust
purports to mortgage or assign, and all amounts at any time so payable by the Borrower
under this Section 6.13(d) shall be secured by the Lien of the Deed of
Trust and by the said assignment.

 

(e)  Subject to the exception set forth in the
first sentence of Section 6.13(d), protect, warrant and forever defend
title to (i) the Land and standing Timber under and as defined in the Deed of
Trust, and (ii) the other Mortgaged Property, unto the Administrative Agent and
the Lenders and their respective successors and assigns, at the Borrower’s
expense, against all persons whomsoever lawfully having or claiming an interest
therein or a Lien thereon, other than, with respect to such Land or standing
Timber, Liens permitted under Section 7.01(h), and with respect to the
other Mortgaged Property, Liens permitted under Sections 7.01(c), (d),
(h) and (j).

 

(f)  Promptly upon the written request by the
Administrative Agent or the Required Lenders, do, execute, acknowledge,
deliver, record, re-record, file, re-file, register and re-register, any and
all such further acts, deeds, conveyances, security agreements, mortgages,
assignments, estoppel certificates, financing statements and continuations
thereof, termination statements, notices of assignment, transfers,
certificates, assurances and other instruments the Administrative Agent or such
Lenders, as the case may be, may reasonably require from time to time in order
(i) to carry out more effectively the purposes of this Agreement or any other
Loan Document, (ii) to subject to the Liens created by any of the Collateral
Documents any of the properties, rights or interests covered by any of the
Collateral Documents, (iii) to perfect and maintain the validity, effectiveness
and priority of any of the Collateral Documents and the Liens intended to be
created thereby, subject, in priority, only to Liens permitted under Sections
7.01(c), (d), (h) and (j) (and, with respect to the
Liens under the Security Agreement, Sections 7.01(b) and (o)) and
(iv) to better assure, convey, grant, assign, transfer, preserve, protect and
confirm to the Administrative Agent and Lenders the rights granted or now or
hereafter granted to the Lenders under any Loan Document.

 

ARTICLE VII.

NEGATIVE COVENANTS

 

So long as any
Lender shall have any Commitment, or any Loan or other Obligation for the
payment of money that has accrued and is payable shall remain unpaid or
unsatisfied, or any Letter of Credit shall remain outstanding, the Borrower
shall not, nor shall it permit any Subsidiary to, directly or indirectly:

 

60

 

 

7.01   Liens.

 

Create, incur,
assume or suffer to exist, any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following:

 

(a)  Liens pursuant to any Loan Document;

 

(b)  Liens existing on the Closing Date and
listed on Schedule 7.01 and any renewals or extensions thereof, provided
that the property covered thereby is not increased and any renewal or extension
of the obligations secured or benefited thereby is permitted by Section
7.03(b);

 

(c)  Liens for taxes, assessments or governmental
charges or claims not yet due or which are being contested in good faith and by
appropriate proceedings, if adequate reserves with respect thereto are
maintained on the books of the applicable Person in accordance with GAAP;

 

(d)  carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s, loggers’ or other like Liens arising in the
ordinary course of business which are not overdue for a period of more than 30
days or which are being contested in good faith and by appropriate proceedings,
if adequate reserves with respect thereto are maintained on the books of the
applicable Person;

 

(e)  pledges or deposits in the ordinary course
of business in connection with workers’ compensation, unemployment insurance
and other social security legislation, other than any Lien imposed by ERISA;

 

(f)  Liens to secure (i) the non-delinquent
(giving effect to any applicable grace or cure period) performance of bids,
trade contracts (other than for borrowed money), leases, or statutory
obligations, (ii) contingent obligations on surety, appeal, or performance
bonds or letters of credit posted in lieu thereof and (iii) other
non-delinquent (giving effect to any applicable grace or cure period)
obligations of a like nature; in each case, incurred in the ordinary course of
business;

 

(g)  easements, rights-of-way, restrictions and
other similar encumbrances affecting real property which, in the aggregate, are
not substantial in amount, and which do not in any case materially detract from
the value of the property subject thereto or materially interfere with the
ordinary conduct of the business of the applicable Person;

 

(h)  Liens described in Schedule B of the title
insurance policies delivered to and approved by the Administrative Agent under Section
4.01(a)(ii)(E) or Section 6.13(c) in respect of the Mortgaged
Property;

 

(i)  Liens securing judgments for the payment of
money (except to the extent fully bonded or covered by independent third-party
insurance as to which the insurer has acknowledged in writing its obligation to
cover) in an aggregate amount not in excess of the Threshold Amount, unless any
such judgment remains undischarged for a period of more than 30 consecutive
days during which execution is not effectively stayed;

 

61

 

(j)  Liens securing Indebtedness permitted under Section
7.03(e) and Liens arising under operating leases; provided that (i)
such Liens do not at any time encumber any property other than the property
financed by such Indebtedness or proceeds thereof or in which an interest is
acquired pursuant to such operating lease, as applicable, and (ii) any
Indebtedness secured thereby does not exceed the cost of acquiring, improving
or constructing the property so being financed;

 

(k) Liens arising
pursuant to the Permitted Securitization;

 

(l)  Liens on assets of a Person existing at the
time such Person is merged into, consolidated with, or acquired by the Borrower
or any Subsidiary pursuant to a transaction permitted hereunder; provided,
that such Liens were not incurred in contemplation of such transaction and do
not extend to any assets other than those of the Person merged into,
consolidated with, or acquired by the Borrower or Subsidiary;

 

(m)  Liens on assets existing at the time of
acquisition of the assets by the Borrower or any Subsidiary pursuant to an
acquisition permitted hereunder; provided, that such Liens were not
incurred in contemplation of such acquisition and do not extend to any other
assets owned by the Borrower or its Subsidiaries;

 

(n)  Liens upon the accounts receivable,
inventory, books and records related thereto, and proceeds thereof of
Louisiana-Pacific Canada Ltd. and its Subsidiaries securing their obligations
under the Canadian Credit Facility;

 

(o)  Liens upon the Borrower’s accounts
receivable, inventory, books and records related thereto, and proceeds thereof,
and Liens upon the Mortgaged Property subordinate to those of the
Administrative Agent for the benefit of the Lenders, each securing the Forex Obligation;
and

 

(p)  Liens in favor of Louisiana Agricultural
Finance Authority (“LAFA”) and its assignees on up to 1,000 acres of
timberlands and standing timber thereon in Louisiana, and proceeds thereof, in
connection with a release by LAFA and its assignees of certain liens against
the Borrower.

 

7.02   Investments.

 

Make any
Investments, except:

 

(a)  Investments other than those permitted by
subsections (b) through (m) of this Section 7.02 that exist on the
Closing Date and are listed on Schedule 7.02;

 

(b)  Investments held by the Borrower or such
Subsidiary in the form of Cash Equivalents or short-term marketable securities;

 

(c)  advances for travel, entertainment,
relocation and analogous ordinary business purposes to officers, directors and
employees of the Borrower and Subsidiaries outstanding on 

 

62

 

the Closing Date,
or additional such advances made after the Closing Date in an aggregate amount
not to exceed $7,500,000 at any time outstanding;

 

(d)  Investments in prepaid expenses, negotiable
instruments held for collection and lease, utility and worker’s compensation,
performance and other similar deposits provided to third parties in the
ordinary course of business;

 

(e)  Investments of any Subsidiary in the
Borrower or by the Borrower or any Subsidiary in a wholly owned Domestic
Subsidiary other than a Subsidiary identified on Schedule 6.13(a);

 

(f)  Guaranty Obligations permitted by Section
7.03;

 

(g)  Investments consisting of extensions of
credit in the nature of accounts receivable or notes receivable arising from
the sale or lease of goods or services in the ordinary course of business, and
Investments received in satisfaction or partial satisfaction of claims against
any Person, including pursuant to any plan of reorganization or similar
arrangement pursuant to Debtor Relief Laws;

 

(h)  Investments made as a result of the receipt
of non-Cash consideration from a sale of assets permitted under Section
7.05(j);

 

(i)  Investments made in transactions permitted
by Section 7.04;

 

(j)  Investments in any wholly owned Foreign
Subsidiary; provided, that (i) immediately after any such Investment,
the aggregate book value of assets (excluding intercompany assets) held by the
Borrower and its Domestic Subsidiaries other than Subsidiaries identified on Schedule
6.13(a) consists of 35% or more of the aggregate consolidated book value of
assets (excluding intercompany assets) of the Borrower and its Subsidiaries and
(ii) the aggregate amount of such Investments during the term of this Agreement
does not exceed $50,000,000;

 

(k)  Investments consisting of acquisitions, by
Borrower or any of its wholly owned Domestic Subsidiaries, of Stock of another
Person engaged solely in a Permitted Business pursuant to which such Person
becomes a wholly owned Subsidiary of Borrower, or of assets constituting a
business unit of a Permitted Business; provided, that: (i) such Person holds no
liabilities, in the case of a Stock acquisition, and no liabilities are
assumed, in the case of an asset acquisition, in each case excluding working
capital liabilities; (ii) no Default or Event of Default shall have occurred
and be continuing at the time of the consummation of such proposed Investment
or immediately after giving effect thereto; (iii) the consideration paid by the
Borrower or such Subsidiary consists solely of its capital Stock; (iv) such
Investments shall not exceed $400,000,000 in the aggregate during the term of
this Agreement, valued at fair market value of the Stock used as consideration;
(v) the entity to be acquired had a positive EBIT for the preceding fiscal year
and for the 12 month period ending on the fiscal quarter immediately prior to
the date of such proposed Investment, as demonstrated by such entity’s audited
financial statements or other financial statements satisfactory to the
Administrative Agent that are true and 

 

63

 

correct in all
material respects based on the Borrower’s knowledge and due diligence, and for
the portion of the current fiscal year ended with the most recent fiscal
quarter, and (vi) the Borrower delivers to the Administrative Agent (1)
financial statements, in form and substance satisfactory to the Administrative
Agent, demonstrating compliance with clause (v) above, and (2) a pro forma
Compliance Certificate giving effect to and including the financial information
of the entity to be acquired for the most recent four (4) fiscal quarters,
demonstrating that no Default or Event of Default exists;

 

(l)  Investments constituting obligations under
Swap Contracts permitted under Section 7.03(d) or payments or advances
thereunder; and

 

(m)  additional Investments not otherwise
permitted hereunder that are made at any time during the term of this Agreement;
provided, that (i) immediately after any such Investment, the aggregate
book value of assets (excluding intercompany assets) held by the Borrower and
its Domestic Subsidiaries other than Subsidiaries identified on Schedule
6.13(a) consists of 35% or more of the aggregate consolidated book value of
assets (excluding intercompany assets) of the Borrower and its Subsidiaries and
(ii) the aggregate amount of such Investments during the term of this Agreement
does not exceed $17,600,000.

 

7.03   Indebtedness.

 

Create, incur,
assume or suffer to exist any Indebtedness, except:

 

(a)  Indebtedness under the Loan Documents;

 

(b)  Indebtedness outstanding on the Closing Date
and listed on Schedule 7.03 and any refinancings, refundings, renewals
or extensions thereof; provided that the amount of such Indebtedness is
not increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to a reasonable premium or other reasonable amount
paid, and fees and expenses reasonably incurred, in connection with such
refinancing and by an amount equal to any existing commitments unutilized
thereunder;

 

(c)  the Forex Obligation and Guaranty
Obligations of the Borrower or any Subsidiary in respect of Indebtedness
otherwise permitted hereunder of the Borrower or any Subsidiary;

 

(d)  obligations (contingent or otherwise) of the
Borrower or any Subsidiary existing or arising under any Swap Contract, provided
that (i) 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 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;” and (ii) such Swap Contract does not contain any provision exonerating
the non-defaulting party from its obligation to make payments on outstanding
transactions to the defaulting party;

 

64

 

(e)  Indebtedness in respect of Capital Lease
Obligations and Synthetic Lease Obligations and purchase money obligations for
fixed or capital assets provided that any Lien securing such Indebtedness is
permitted under Section 7.01;

 

(f)  Indebtedness of the Borrower or any
Subsidiary as a result of an Investment by the Borrower or any Subsidiary
permitted under Section 7.02;

 

(g)  Indebtedness of a Subsidiary incurred and
outstanding on or prior to the date on which such Subsidiary was acquired by
the Borrower or another Subsidiary pursuant to an acquisition permitted
hereunder; provided, however, that on the date of such acquisition,
after giving pro forma effect thereto and any related transactions as if
the same had occurred at the beginning of the most recent four fiscal quarters
for which financial statements were delivered pursuant to Section 6.01,
the Borrower would be permitted to incur at least $1.00 of additional
Indebtedness without violating the Debt to Capitalization Ratio test in Section
7.16(b);

 

(h)  Indebtedness of the Borrower or any
Subsidiary arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument inadvertently drawn against
insufficient funds in the ordinary course of business; provided,
however, that such Indebtedness is extinguished within five Business Days of
incurrence;

 

(i)  Indebtedness consisting of contingent
obligations under letters of credit, surety bonds or similar instruments
provided that any Lien securing such Indebtedness is permitted under Section
7.01(f);

 

(j)  Indebtedness arising under the Permitted
Securitization; and

 

(k)  Indebtedness of Louisiana-Pacific Canada
Ltd. and its Subsidiaries under the Canadian Credit Facility.

 

7.04   Fundamental
Changes.

 

Merge, consolidate
with or into, or convey, transfer, lease or otherwise Dispose of (whether in
one transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to or in favor of any Person,
except that, so long as no Default or Event of Default exists or would result
therefrom:

 

(a)  any Subsidiary may merge with (i) the
Borrower, provided that the Borrower shall be the continuing or
surviving Person, or (ii) any one or more Subsidiaries, provided, that
when any wholly owned Subsidiary is merging with another Subsidiary, the wholly
owned Subsidiary shall be the continuing or surviving Person, and provided
further, that immediately after such merger, consolidation, conveyance,
transfer, lease or Disposition, the aggregate book value of assets (excluding
intercompany assets) held by the Borrower and its Domestic Subsidiaries other
than Subsidiaries identified on Schedule 6.13(a) consists of 35% or more
of the aggregate consolidated book value of assets (excluding intercompany
assets) of the Borrower and its Subsidiaries; and

 

65

 

(b)  any Subsidiary may sell all or substantially
all of its assets (upon voluntary liquidation or otherwise), to the Borrower or
to a Domestic Subsidiary; provided that if the seller in such a
transaction is a wholly owned Subsidiary, then the purchaser must also be a
wholly owned Subsidiary.

 

7.05   Dispositions.

 

Make any
Disposition or enter into any agreement to make any Disposition, except the
following Dispositions, which other than those described in Sections 7.05(a)
and (b) shall be for fair market value:

 

(a)  Dispositions of obsolete or worn out
property, whether now owned or hereafter acquired, in the ordinary course of
business, along with related real property other than Mortgaged Property, if
any, up to a maximum amount during the term of this Agreement of $10,000,000;

 

(b)  Dispositions of inventory in the ordinary
course of business;

 

(c)  Dispositions of Cash Equivalents in the
ordinary course of business;

 

(d)  exchanges by the Borrower of timberlands for
other timberlands in the ordinary course of business if:

 

(i)       at the time of such exchange, no Event of
Default exists or shall result from such exchange; and

 

(ii)      if the exchange includes Mortgaged
Property:

 

(A)  the aggregate fair market value of all
Mortgaged Property so exchanged by the Borrower does not exceed on a cumulative
basis $50,000,000 during the term of this Agreement;

 

(B)  the timberlands to be received in exchange
are of at least an equivalent fair market value to the timberlands that
constitute Mortgaged Property to be exchanged;

 

(C)  the Administrative Agent has received, in
form and substance satisfactory to it, copies of appraisals or valuations for
the Mortgaged Property to be exchanged and the other timberlands to be received
in the exchange, which appraisals or valuation shall, in the case of any
exchange where the Borrower is transferring properties (in one or a series of
related transactions) having a fair market value in excess of $10,000,000 to be
prepared by an independent appraiser reasonably acceptable to the
Administrative Agent, and in all other cases the appraisal or other valuation
may be prepared by the Borrower in such form and content as is usual and
customary in accordance with past practices of the Borrower; and

 

(D)  all steps required under Section 6.13(c)
have been completed in order to cause any replacement timberlands required
thereunder to become Mortgaged Property;

 

66

 

(e)  Any Disposition to the extent it constitutes
the granting of a Lien permitted under Section 7.01, an Investment
permitted by Section 7.02, a trsansaction permitted by Section 7.04,
a Restricted Payment permitted by Section 7.07, or a sale and leaseback
transaction permitted by Section 7.11;

 

(f)  Dispositions by the Borrower and its
Subsidiaries pursuant to the Permitted Securitization;

 

(g)  Dispositions of assets other than the Collateral
between or among the Borrower and one or more Subsidiaries (including any
Person that becomes a Subsidiary in connection with such transaction) or
between or among two or more Subsidiaries (including any Person that becomes a
Subsidiary in connection with such transaction);

 

(h)  Dispositions constituting leases or
subleases of property of the Borrower or any Subsidiary in the ordinary course
of business and not materially interfering with the business of the Borrower
and the Subsidiaries;

 

(i)  Dispositions constituting licenses of
intellectual property of the Borrower or any Subsidiary; and

 

(j)  Dispositions not otherwise permitted
hereunder of assets that are not Collateral if:

 

(i)       at the time of such Disposition no
Default or Event of Default exists or shall result from such Disposition;

 

(ii)      if such Disposition includes timberlands
in the State of Texas, then after such Disposition the Collateral Coverage
Ratio will be at least 2:00 to 1:00;

 

(iii)     at least 75% of the consideration received
in such Disposition is in the form of (A) Cash or Cash Equivalents or (B)
Replacement Assets, or a combination of both; provided, that non-Cash
consideration (other than Cash Equivalents or Replacement Assets) in excess of
the 25% limit may be received by the Borrower and its Subsidiaries in such a
Disposition in an aggregate amount, when taken together with all such other
non-Cash consideration in excess of the 25% limit received by the Borrower and
its Subsidiaries in Dispositions under this Section 7.05(j) during the
term of this Agreement, does not exceed either (x) $25,000,000 for Dispositions
of any interest in the pulp mill located in Chetwynd, British Columbia or the
65% interest in a joint venture in Ireland that has an oriented strand board
(OSB) mill or (y) $25,000,000 for all other Dispositions (with such non-Cash
consideration being valued at its fair market value on the date of its receipt
by the Borrower and its Subsidiaries, without giving effect to subsequent
changes in value); and

 

(iv)     (A) the portion of Net Disposition Proceeds
of such Disposition required to be prepaid or Cash Collateralized under Section
2.05(b)(ii) is held for application in accordance therewith, and (B) the
remaining Net Disposition Proceeds of such Disposition are either (1) applied
within 360 days after receipt to the purchase of Replacement 

 

67

 

Assets; provided,
that immediately after such purchase, the aggregate book value of assets
(excluding intercompany assets) held by the Borrower and its Domestic
Subsidiaries other than Subsidiaries identified on Schedule 6.13(a)
consists of 35% or more of the aggregate consolidated book value of assets
(excluding intercompany assets) of the Borrower and its Subsidiaries, (2) applied
to reduce Indebtedness under any Indenture or Indebtedness falling under
section (a)(iii) of the definition of “Consolidated Funded Indebtedness”
hereunder, or (3) to the extent Net Disposition Proceeds of such Disposition
are not applied in accordance with Section 7.05(j)(iv)(B)(1) or 7.05(j)(iv)(B)(2)
(the amount of such unapplied Net Disposition Proceeds, “Excess Proceeds”),
the Borrower holds such Excess Proceeds for application in accordance with Section
2.05(b); provided, that the aggregate amount that the Borrower and
its Subsidiaries may receive in the form of Replacement Assets (valued at fair
market value on the date of receipt by the Borrower and its Subsidiaries,
without giving effect to subsequent changes in value) under Section 7.05(j)(iii),
plus the amount of Net Disposition Proceeds reinvested under Section
7.05(j)(iv)(B)(1), shall not exceed $300,000,000 during the term of this
Agreement (all Net Disposition Proceeds received in violation of such
restriction and all amounts exceeding such restriction as a result of the
receipt of Replacement Assets shall be treated as Excess Proceeds to be applied
pursuant to the mandatory prepayment provisions of Section 2.05(b)).

 

7.06   Lease
Obligations.

 

Create, suffer to
exist, or commit to incur any obligations for the payment of rent for any
property under any operating lease if such creation, sufferance or commitment
would cause the aggregate annual rents for the Borrower and its Subsidiaries to
exceed $50,000,000 in any fiscal year.

 

7.07   Restricted
Payments.

 

Declare or make,
directly or indirectly, any Restricted Payment, or incur any obligation
(contingent or otherwise) to do so, except that:

 

(a)  each Subsidiary may make Restricted Payments
to the Borrower and to wholly owned Subsidiaries (and, in the case of a
Restricted Payment by a non-wholly owned Subsidiary, to the Borrower and any
Subsidiary and to each other owner of capital stock of such Subsidiary on a pro rata
basis based on their relative ownership interests);

 

(b)  the Borrower and each Subsidiary may declare
and make dividend payments or other distributions payable solely in the common
stock of such Person;

 

(c)  the Borrower and each Subsidiary may
purchase, redeem or otherwise acquire shares of its common stock or warrants or
options to acquire any such shares with the proceeds received from the
substantially concurrent issue of new shares of its common stock;

 

(d)  the Borrower or any Subsidiary may purchase,
redeem, or otherwise acquire or retire any of its Stock pursuant to a Stock
Option Plan; provided that the aggregate price so paid may not exceed
$3,000,000 in any calendar year; and

 

68

 

(e)  the Borrower may redeem any share purchase
rights issued pursuant to its share purchase rights plan existing as of the
Closing Date (as the same may be amended from time to time) or any similar
successor or replacement share purchase rights plan, for a redemption price not
to exceed $0.01 per share purchase right, provided that the aggregate
price so paid may not exceed $2,000,000 in any calendar year.

 

7.08   ERISA.

 

At any time engage
in a transaction which could be subject to Section 4069 or 4212(c) of ERISA, or
permit any Plan to (a) engage in any non-exempt “prohibited transaction” (as defined
in Section 4975 of the Code); (b) fail to comply with ERISA or any other
applicable Laws; or (c) incur any material “accumulated funding deficiency” (as
defined in Section 302 of ERISA), which, with respect to each event listed
above, could be reasonably expected to have a Material Adverse Effect.

 

7.09   Change in
Nature of Business.

 

Engage in any
material line of business other than any business conducted by the Borrower and
its Subsidiaries on the Closing Date and any reasonable extension thereof.

 

7.10   Transactions
with Affiliates.

 

Enter into any
transaction of any kind with any Affiliate of the Borrower (other than a
Domestic Subsidiary besides a Subsidiary listed on Schedule 6.13(a)),
except

 

(a)  any employment, compensation, benefit or
indemnification arrangement entered into by the Borrower or any Subsidiary in
the ordinary course of business with directors or employees;

 

(b)  loans or advances to directors, employees
and consultants in the ordinary course of business or guarantees in respect
thereof or otherwise made on their behalf (including any payments on such
guarantees);

 

(c)  sales of Stock to Affiliates of the
Borrower;

 

(d)  arm’s-length transactions for fair value
with Affiliates that are otherwise permitted hereunder.

 

7.11   Sale
and Leaseback Transactions.

 

Enter into any
sale and leaseback transaction unless (a) the Borrower or such Subsidiary, as
applicable, can incur any Indebtedness arising from such transaction without
violating Section 7.03, (b) the Borrower or such Subsidiary, as
applicable, can incur any Lien to secure Indebtedness arising from such
transaction without violating Section 7.01, and (c) the gross cash
proceeds of such sale and leaseback transaction are at least equal to the fair
market value of the property that is the subject of the transaction, and (d)
the transfer of assets in that sale and 

 

69

 

leaseback
transaction is permitted by, and the proceeds of the transaction are applied in
compliance with, Section 7.05.

 

7.12   Burdensome
Agreements.

 

Enter into any
Contractual Obligation after the Closing Date that limits the ability (a) of
any Subsidiary to make Restricted Payments to the Borrower, except for (i)
limitations on dividends by any Subsidiary that is a special purpose vehicle
created for the consummation of a financing transaction that is on terms and
conditions satisfactory to the Administrative Agent and the Required Lenders
(it being acknowledged that the Permitted Securitization is satisfactory) and (ii)
limitations on Restricted Payments by documents governing acquisition
transactions permitted hereunder, or (b) of the Borrower or any Subsidiary to
create, incur, assume or suffer to exist Liens on property of such Person
pursuant to (i) the pledge of any Stock by the Borrower under Section
6.13(b) or (ii) the grant of a Lien on additional timberlands of the
Borrower under Section 6.13(c), or (c) of any Domestic Subsidiary other
than the Securitization Subsidiary or a Subsidiary identified on Schedule 6.13(a)
to execute a Guaranty; in each case, whether or not circumstances giving rise
to the requirement to pledge Stock, grant Liens on additional timberlands, or
execute a Guaranty has occurred or is likely to occur.

 

7.13   Use of Proceeds.

 

Use the proceeds
of any Credit Extension, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the Board) or to extend credit to others
for the purpose of purchasing or carrying margin stock or to refund
indebtedness originally incurred for such purpose.

 

7.14   Indentures;
Payments on Indebtedness.

 

Make any
prepayment on account of, or redemption or acquisition for value of any portion
of, in each case on a voluntary basis, any Indebtedness where the total
principal amount of such Indebtedness exceeds $10,000,000 (except pursuant to
the Permitted Securitization), or otherwise agree to amend or modify the
payment terms or other terms thereof or of any term of the Forex Agreement or
any Indenture, without the prior written consent of the Administrative Agent
and the Required Lenders, except that only the consent of the Administrative
Agent shall be required for amendments to any Indenture for the purpose of (a)
complying with the requirements of the Securities and Exchange Commission in
order to effect or maintain the qualification of such Indenture under the Trust
Indenture Act of 1939, (b) adding or changing any of the provisions of such
Indenture to the extent necessary to permit or facilitate the issuances of
unsecured debentures, notes, and other evidences of indebtedness thereunder in
bearer form, registrable or not registrable as to principal, and with or
without interest coupons, or to permit or facilitate the issuance of any such
unsecured debentures, notes, and other evidences of indebtedness in
uncertificated form, or (c) evidencing or providing for the acceptance of
appointment thereunder by a successor trustee with respect to the unsecured
debentures, notes, and other evidences of indebtedness thereunder of one or
more series and to add to or change any of the provisions of such Indenture as
may be necessary to provide for or facilitate the 

 

70

 

administration of
the trust thereunder by more than one trustee, pursuant to the requirements
thereof.

 

7.15   Mineral Rights.

 

Grant an interest
in any mineral estate or any similar interest in or related to any Mortgaged
Property without simultaneously Disposing of such Mortgaged Property pursuant
to a Disposition otherwise permitted hereunder, unless such grant in the
context of such transaction could not reasonably be expected to cause the
representation in Section 5.09(c) to no longer be true in all material
respects after giving effect to such transaction or otherwise result in a
Material Adverse Effect.

 

7.16   Financial
Covenants.

 

(a)  Shareholders’ Equity.  Permit Shareholders’ Equity as of the end of
any fiscal quarter of the Borrower to be less than the sum of (a) $1,003,850,000,
and (b) an amount, not less than 0, equal to 50% of the cumulative Consolidated
Net Income earned in all fiscal quarters after the fiscal quarter ended June
30, 2001 and (c) an amount equal to 100% of the aggregate increases in
Shareholders’ Equity after the Closing Date by reason of the issuance and sale
of capital stock of the Borrower (including upon any conversion of debt
securities of the Borrower into such capital stock).

 

(b)  Maximum Debt to Capitalization Ratio.  Permit the Debt to Capitalization Ratio,
measured as of the end of each fiscal quarter ending on the dates listed below,
to exceed the percentage set forth opposite such dates:

 

	
   

  	
   

  	
  Maximum
  Debt to Capitalization Ratio

  	
   

  
	
  Fiscal
  Quarter Ending

  	
   

  	
   

  
	
  September 30,
  2001

  	
   

  	
  52.5

  	
  %

  
	
  December 31,
  2001

  	
   

  	
  52.5

  	
  %

  
	
  March 31, 2002

  	
   

  	
  52.5

  	
  %

  
	
  June 30, 2002

  	
   

  	
  52.5

  	
  %

  
	
  September 30,
  2002

  	
   

  	
  52.5

  	
  %

  
	
  December 31,
  2002

  	
   

  	
  50.0

  	
  %

  
	
  March 31, 2003

  	
   

  	
  50.0

  	
  %

  
	
  June 30, 2003

  	
   

  	
  50.0

  	
  %

  
	
  September 30,
  2003

  	
   

  	
  50.0

  	
  %

  
	
  December 31,
  2003 and thereafter

  	
   

  	
  47.5

  	
  %

  

 

(c)  Minimum EBITDDA.  Permit Consolidated EBITDDA, for any period
of four consecutive quarters ending on a date listed below, to be less than the
amount set forth opposite such date:

 

71

 

	
  Fiscal Quarters Ending

  	
   

  	
  Minimum
  EBITDDA

  	
   

  
	
  December 31,
  2001

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  March 31, 2002

  	
   

  	
  $

  	
  60,000,000

  	
   

  
	
  June 30, 2002

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  September 30,
  2002

  	
   

  	
  $

  	
  70,000,000

  	
   

  
	
  December 31,
  2002

  	
   

  	
  $

  	
  120,000,000

  	
   

  
	
  March 31, 2003

  	
   

  	
  $

  	
  198,200,000

  	
   

  
	
  June 30, 2003

  	
   

  	
  $

  	
  269,300,000

  	
   

  
	
  September 30,
  2003

  	
   

  	
  $

  	
  302,500,000

  	
   

  
	
  December 31,
  2003 and thereafter

  	
   

  	
  $

  	
  330,000,000

  	
   

  

 

(d)  Minimum Collateral Coverage Ratio.  Permit the Collateral Coverage Ratio at any
time to be less than 2.0 to 1.0.

 

(e)  Permitted Securitization.  Permit the Borrowing Base (as defined in the
Permitted Securitization Credit and Security Agreement) to be less than
$50,000,000 or the Aggregate Commitment (as defined in the Permitted
Securitization Credit and Security Agreement) to be less than $100,000,000.

 

ARTICLE
VIII.

EVENTS OF DEFAULT AND REMEDIES

 

8.01   Events of Default.

 

Any of the
following shall constitute an Event of Default:

 

(a)  Non-Payment.  The Borrower fails to pay (i) when and as
required to be paid herein, any amount of principal of any Loan or any L/C
Obligation, or (ii) within three days after the same becomes due, any interest
on any Loan or on any L/C Obligation, or any commitment or other fee due
hereunder, or (iii) within five days after the same becomes due, any other
amount payable hereunder or under any other Loan Document, other than Hedging
Obligations that constitute termination obligations under Swap Contracts; or
(iv) within fifteen days after the same becomes due, any Hedging Obligations
that constitute termination obligations under Swap Contracts; or

 

(b)  Specific Covenants.  The Borrower fails to perform or observe any
term, covenant or agreement contained in any of Section 6.01, 6.02(a),
6.02(b), 6.02(c), 6.05, 6.10 or 6.12 or Article
VII; or

 

(c)  Other Defaults.  Any Loan Party fails to perform or observe
any other covenant or agreement (not specified in subsection (a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such
failure continues for 30 days; or

 

(d)  Representations and Warranties.  Any representation or warranty made or
deemed made by the Borrower or any other Loan Party herein, in any other Loan
Document, or in any document, agreement, instrument or certificate executed and
delivered in connection 

 

72

 

herewith or
therewith proves to have been incorrect in a material respect when made or
deemed made; or

 

(e)  Cross-Default.  (i) The Borrower or any Subsidiary (A) fails
to make any payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any of its Indebtedness or
Guaranty Obligations (other than Indebtedness hereunder and Indebtedness under
Swap Contracts) having an aggregate principal amount (including undrawn
committed or available amounts and including amounts owing to all creditors
under any combined or syndicated credit arrangement) of more than the Threshold
Amount, but in any event including the Forex Obligation and the Permitted
Securitization, and such failure continues after the applicable grace or notice
period, if any, specified in the relevant document on the date of such failure,
or (B) fails to observe or perform any other agreement or condition relating to
any such Indebtedness or Guaranty Obligation or contained in any instrument or
agreement evidencing, securing or relating thereto after the expiration of any
cure or grace period applicable to such failure, or any other event occurs, and
continues beyond any cure or grace period applicable thereto, which failure, default
or other event has not been waived and the effect of which is to cause, or to
permit the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of such Guaranty Obligation (or a trustee or agent on behalf of
such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness to be demanded or to become due
or to be repurchased or redeemed (automatically or otherwise) prior to its
stated maturity (other than a mandatory prepayment under Section 8.1 of the
Note Purchase Agreements, dated October 3, 1997 (Sierra) and June 30, 1998
(Simpson) with respect to notes issued by special purpose subsidiaries of the
Borrower and secured by the Timber Notes Receivable), or such Guaranty Obligation
to become payable or cash collateral in respect thereof to be demanded; or (ii)
there occurs under any Swap Contract an Early Termination Date (as defined in
such Swap Contract) resulting from (A) any event of default under such Swap
Contract as to which the Borrower or any Subsidiary is the Defaulting Party (as
defined in such Swap Contract) or (B) any Termination Event (as so defined)
under such Swap Contract as to which the Borrower or any Subsidiary is an
Affected Party (as so defined) and, in either event, the Swap Termination Value
owed by the Borrower or such Subsidiary as a result thereof is greater than the
Threshold Amount; or (iii) an “Amortization Event” occurs under the Permitted
Securitization Credit and Security Agreement; or

 

(f)  Insolvency Proceedings, Etc.  Any Loan Party or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors; or applies for
or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person and the appointment continues
undischarged or unstayed for 60 calendar days; or any proceeding under any
Debtor Relief Law relating to any such Person or to all or any material part of
its property is instituted without the consent of such Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered
in any such proceeding; or

 

73

 

(g)  Inability to Pay Debts; Attachment.  (i) The Borrower or any Subsidiary becomes
unable or admits in writing its inability or fails generally to pay its debts
as they become due, or (ii) any writ or warrant of attachment or execution or
similar process is issued or levied against all or any material part of the
property of any such Person and is not released, discharged, stayed, vacated or
fully bonded within 60 days after its issue or levy; or

 

(h)  Judgments.  There is entered against the Borrower or any Subsidiary (i) a
final judgment or order for the payment of money (to the extent such judgment
or order is not fully bonded or covered by independent third-party insurance as
to which the insurer does not dispute coverage) in an aggregate amount
exceeding the Threshold Amount, or (ii) any non-monetary final judgment that
has, or could reasonably be expected to have, a Material Adverse Effect and, in
either case, (A) enforcement proceedings are commenced by any creditor upon
such judgment or order, or (B) there is a period of 30 consecutive days during
which a stay of enforcement of such judgment, by reason of a pending appeal or
otherwise, is not in effect; or

 

(i)  ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result
in liability of the Borrower under Title IV of ERISA to the Pension Plan,
Multiemployer Plan or the PBGC in an aggregate amount in excess of the
Threshold Amount, or (ii) the Borrower or any ERISA Affiliate fails to pay when
due, after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal liability under Section 4201 of ERISA
under a Multiemployer Plan in an aggregate amount in excess of the Threshold
Amount; or

 

(j)  Invalidity of Loan Documents.  Any Loan Document, at any time after its
execution and delivery and for any reason, ceases to be in force and effect in
any material respect, or is declared by a court of competent jurisdiction to be
null and void, invalid or unenforceable in any material respect, other than, in
each case, (i) pursuant to the terms of such Loan Document or the Agreement,
(ii) with the agreement of all the Lenders, or (iii) upon the satisfaction in
full of all the Obligations; or any Loan Party denies that it has any or
further liability or obligation under any Loan Document, prior to the
satisfaction in full of all the Obligations and the obligations under such Loan
Document; or any Loan Party purports unilaterally to revoke, terminate or
rescind any Loan Document; or

 

(k)  Change of Control.  There occurs any Change of Control.

 

8.02   Remedies
Upon Event of Default.

 

If any Event of
Default occurs and is continuing, the Administrative Agent shall, at the
request of, or may, with the consent of, the Required Lenders,

 

(a)  declare the commitment of each Lender to
make Loans and any obligation of any L/C Issuer to make L/C Credit Extensions
to be terminated, whereupon such commitments and obligation shall be
terminated;

 

(b)  declare the unpaid principal amount of all outstanding
Loans, all interest accrued and unpaid thereon, and all other amounts owing or
payable hereunder or under any 

 

74

 

other Loan
Document to be immediately due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived
by the Borrower;

 

(c)  require that the Borrower Cash Collateralize
the L/C Obligations (in an amount equal to the then Outstanding Amount
thereof); and

 

(d)  exercise on behalf of itself and the Lenders
all rights and remedies available to it and the Lenders under the Loan
Documents or applicable law;

 

provided,
however, that upon the occurrence of any event specified in subsection
(f) of Section 8.01, the obligation of each Lender to make Loans
and any obligation of any L/C Issuer to make L/C Credit Extensions shall
automatically terminate, the unpaid principal amount of all outstanding Loans
and all interest and other amounts as aforesaid shall automatically become due
and payable, and the obligation of the Borrower to Cash Collateralize the L/C
Obligations as aforesaid shall automatically become effective, in each case
without further act of the Administrative Agent or any Lender.

 

ARTICLE IX.

ADMINISTRATIVE AGENT

 

9.01   Appointment
and Authorization of Administrative Agent.

 

(a)  Each Lender hereby irrevocably appoints,
designates and authorizes the Administrative Agent to take such action on its
behalf under the provisions of this Agreement and each other Loan Document and to
exercise such powers and perform such duties as are expressly delegated to it
by the terms of this Agreement or any other Loan Document, together with such
powers as are reasonably incidental thereto. 
Notwithstanding any provision to the contrary contained elsewhere herein
or in any other Loan Document, the Administrative Agent shall not have any
duties or responsibilities, except those expressly set forth herein, nor shall
the Administrative Agent have or be deemed to have any fiduciary relationship with
any Lender or participant, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent.  Without limiting
the generality of the foregoing sentence, the use of the term “agent” herein
and in the other Loan Documents with reference to the Administrative Agent is
not intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter of market custom,
and is intended to create or reflect only an administrative relationship
between independent contracting parties.

 

(b)  Each L/C Issuer shall act on behalf of the Lenders
with respect to any Letters of Credit issued by it and the documents associated
therewith until such time (and except for so long) as the Administrative Agent
may agree at the request of the Required Lenders to act for such L/C Issuer
with respect thereto; provided, however, that each L/C Issuer
shall have all of the benefits and immunities (i) provided to the
Administrative Agent in this Article IX with respect to any acts taken
or omissions suffered by such L/C Issuer in connection with Letters of Credit
issued by it or proposed to be issued by it and the application and agreements
for letters of credit 

 

75

 

pertaining to the
Letters of Credit as fully as if the term “Administrative Agent” as used in
this Article IX included the L/C Issuers with respect to such acts or
omissions, and (ii) as additionally provided herein with respect to the
L/C Issuers.

 

9.02   Delegation of
Duties.

 

The Administrative
Agent may execute any of its duties under this Agreement or any other Loan
Document by or through agents, employees or attorneys-in-fact and shall be
entitled to advice of counsel and other consultants or experts concerning all
matters pertaining to such duties.  The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.

 

9.03   Liability
of Administrative Agent.

 

No Agent-Related
Person shall (a) be liable for any action taken or omitted to be taken by any
of them under or in connection with this Agreement or any other Loan Document
or the transactions contemplated hereby (except for its own gross negligence or
willful misconduct in connection with its duties expressly set forth herein),
or (b) be responsible in any manner to any Lender or participant for any
recital, statement, representation or warranty made by any Person that has ever
been a Loan Party or any officer thereof, contained herein or in any other Loan
Document, or in any certificate, report, statement or other document referred
to or provided for in, or received by the Administrative Agent under or in
connection with, this Agreement or any other Loan Document, or the validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
any other Loan Document, or for any failure of any Loan Party or any other
party to any Loan Document to perform its obligations hereunder or
thereunder.  No Agent-Related Person
shall be under any obligation to any Lender or participant to ascertain or to
inquire as to the observance or performance of any of the agreements contained
in, or conditions of, this Agreement or any other Loan Document, or to inspect
the properties, books or records of any Person that has ever been a Loan Party,
or any Affiliate thereof.

 

9.04   Reliance
by Administrative Agent.

 

(a)  The Administrative Agent shall be entitled
to rely, and shall be fully protected in relying, upon any writing,
communication, signature, resolution, representation, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone
message, statement or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons, and upon advice and statements of legal counsel (including counsel
to any Person that has ever been a Loan Party), independent accountants and
other experts selected by the Administrative Agent.  The Administrative Agent shall be fully justified in failing or
refusing to take any action under any Loan Document unless it shall first
receive such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such
action.  The Administrative Agent shall
in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or 

 

76

 

consent of the
Required Lenders or all the Lenders, if required hereunder, and such request
and any action taken or failure to act pursuant thereto shall be binding upon
all the Lenders and participants.  Where
this Agreement expressly permits or prohibits an action unless the Required
Lenders otherwise determine, the Administrative Agent shall, and in all other
instances, the Administrative Agent may, but shall not be required to, initiate
any solicitation for the consent or a vote of the Lenders.

 

(b)  For purposes of determining compliance with
the conditions specified in Section 4.01, each Lender that has
signed this Agreement shall be deemed to have consented to, approved or
accepted or to be satisfied with, each document or other matter either sent by
the Administrative Agent to such Lender for consent, approval, acceptance or
satisfaction, or required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender.

 

9.05   Notice of Default.

 

The Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default, except with respect to defaults in the payment of
principal, interest and fees required to be paid to the Administrative Agent
for the account of the Lenders, unless the Administrative Agent shall have
received written notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default.”  The
Administrative Agent will notify the Lenders of its receipt of any such
notice.  The Administrative Agent shall
take such action with respect to such Default or Event of Default as may be
directed by the Required Lenders in accordance with Article VIII; provided,
however, that unless and until the Administrative Agent has received any
such direction, the Administrative Agent may (but shall not be obligated to)
take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable or in the best interest
of the Lenders.

 

9.06   Credit
Decision; Disclosure of Information by Administrative Agent.

 

Each Lender
acknowledges that no Agent-Related Person has made any representation or
warranty to it, and that no act by the Administrative Agent hereafter taken,
including any consent to and acceptance of any assignment or review of the
affairs of any Person that has ever been a Loan Party, or any Affiliate
thereof, shall be deemed to constitute any representation or warranty by any
Agent-Related Person to any Lender as to any matter, including whether
Agent-Related Persons have disclosed material information in their possession.  Each Lender represents to the Administrative
Agent that it has, independently and without reliance upon any Agent-Related
Person and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, prospects,
operations, property, financial and other condition and creditworthiness of all
Persons that have ever been Loan Parties hereunder and their respective
Subsidiaries, and all applicable bank or other regulatory Laws relating to the
transactions contemplated hereby, and made its own decision to enter into this
Agreement and to extend credit to the Borrower hereunder.  Each Lender also represents that it will,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, 

 

77

 

appraisals and
decisions in taking or not taking action under this Agreement and the other
Loan Documents, and to make such investigations as it deems necessary to inform
itself as to the business, prospects, operations, property, financial and other
condition and creditworthiness of the Borrower and each other Person that are
or may become Loan Parties hereunder. 
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent herein, the Administrative
Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of any Person that
has ever been a Loan Party or any of their respective Affiliates that may come
into the possession of any Agent-Related Person.

 

9.07   Indemnification of Administrative
Agent.

 

Whether or not the
transactions contemplated hereby are consummated, the Lenders shall indemnify
upon demand each Agent-Related Person (to the extent not reimbursed by or on
behalf of any Loan Party and without limiting the obligation of any Loan Party
to do so), pro rata, and hold harmless each Agent-Related Person from and
against any and all Indemnified Liabilities incurred by it, INCLUDING SUCH INDEMNIFIED LIABILITIES CONSTITUTING IN
WHOLE OR PART AGENT-RELATED PERSON’S STRICT LIABILITY, OR COMPARATIVE,
CONTRIBUTORY OR SOLE NEGLIGENCE; provided, however,
that no Lender shall be liable for the payment to any Agent-Related Person of
any portion of such Indemnified Liabilities to the extent determined in a
final, nonappealable judgment by a court of competent jurisdiction to have
resulted from such Person’s own gross negligence or willful misconduct; provided,
however, that no action taken in accordance with the directions of the
Required Lenders shall be deemed to constitute gross negligence or willful
misconduct for purposes of this Section. 
Without limitation of the foregoing, each Lender shall reimburse the
Administrative Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including Attorney Costs) incurred by the
Administrative Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement, any other Loan Document, or
any document contemplated by or referred to herein, to the extent that the
Administrative Agent is not reimbursed for such expenses by or on behalf of the
Borrower.  The undertaking in this
Section shall survive termination of the Aggregate Commitments, the payment of
all Obligations hereunder and the resignation of the Administrative Agent.

 

9.08   Administrative
Agent in its Individual Capacity.

 

Bank of America
and its Affiliates may make loans to, issue letters of credit for the account
of, accept deposits from, acquire Stock in and generally engage in any kind of
banking, trust, financial advisory, underwriting or other business with each
Person that has been or may be a Loan Party and their respective Affiliates as
though Bank of America were not the Administrative Agent or an L/C Issuer
hereunder and without notice to or consent of the Lenders.  The Lenders acknowledge that, pursuant to
such activities, Bank of America or its Affiliates may receive information
regarding any such Person (including information that may be subject to 

 

78

 

confidentiality
obligations in favor of such Person) and acknowledge that the Administrative
Agent shall be under no obligation to provide such information to them.  With respect to its Loans, Bank of America
shall have the same rights and powers under this Agreement as any other Lender
and may exercise such rights and powers as though it were not the
Administrative Agent or an L/C Issuer, and the terms “Lender” and “Lenders”
include Bank of America in its individual capacity.  Without limiting the generality of the foregoing, each Lender
acknowledges that (i) it is aware of the nature of Bank of America’s capacity
as a “Standby Lender” (as defined in the Intercreditor Agreement) and as the
“Collateral Agent” under and as defined in the “Standby Security Agreement” (as
defined in the Intercreditor Agreement), in which capacities it holds a Lien
upon the “Security Agreement Collateral” (as defined in the Intercreditor
Agreement) that is senior to the Lien held by the Administrative Agent, on
behalf of the Lenders, in the same collateral, (ii) it has had an opportunity
to request any information or documentation about such capacities and such
Lien, and about the Forex Obligation and the transactions related thereto, and
has received all requested information and documentation, and (iii) Bank of
America may act in such capacities and may take any actions it deems
appropriate to perfect, protect, enforce, or otherwise exercise its rights with
respect to such Lien, each without regard to its role as the administrative
agent hereunder.

 

9.09   Successor
Administrative Agent.

 

The Administrative
Agent may resign as Administrative Agent upon 30 days’ notice to the Lenders;
provided that any such resignation by Bank of America shall also constitute its
resignation as the L/C Issuer issuing Letters of Credit hereunder.  If the Administrative Agent resigns under
this Agreement, the Required Lenders shall appoint from among the Lenders a
successor administrative agent for the Lenders which successor administrative
agent shall be consented to by the Borrower at all times other than during the
existence of an Event of Default (which consent of the Borrower shall not be
unreasonably withheld or delayed).  If
no successor administrative agent is appointed prior to the effective date of
the resignation of the Administrative Agent, the Administrative Agent may
appoint, after consulting with the Lenders and the Borrower, a successor
administrative agent from among the Lenders. 
Upon the acceptance of its appointment as successor administrative agent
hereunder, (a) the Person acting as such successor administrative agent shall
succeed to all the rights, powers and duties of the retiring Administrative
Agent and L/C Issuer, (b) the term “Administrative Agent” shall mean such
successor administrative agent, (c) the term “L/C Issuer” shall mean such
successor Letter of Credit issuer (and, under the conditions and to the limited
extent set forth herein, Wachovia), (d) the retiring Administrative Agent’s
appointment, powers and duties as Administrative Agent shall be terminated, and
(e) the retiring L/C Issuer’s rights, powers and duties as such shall be
terminated, without any other or further act or deed on the part of such
retiring L/C Issuer or any other Lender, other than the obligation of the
successor L/C Issuer to issue letters of credit in substitution for the Letters
of Credit, if any, outstanding at the time of such succession.  After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this Article
IX and Sections 10.04 and 10.05 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. 
If no successor administrative agent has accepted appointment as
Administrative Agent by the date which is 30 days following a retiring Administrative
Agent’s notice of 

 

79

 

resignation, the
retiring Administrative Agent’s resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders appoint a
successor agent as provided for above.

 

9.10   Other
Agents; Lead Managers.

 

None of the
Lenders identified on the facing page or signature pages of this Agreement as a
“syndication agent,” “documentation agent,” “co-agent” or “lead manager” shall
have any right, power, obligation, liability, responsibility or duty under this
Agreement other than those applicable to all Lenders as such.  Without limiting the foregoing, none of the
Lenders so identified shall have or be deemed to have any fiduciary
relationship with any Lender.  Each
Lender acknowledges that it has not relied, and will not rely, on any of the
Lenders so identified in deciding to enter into this Agreement or in taking or
not taking action hereunder.

 

9.11   Collateral
Matters.

 

(a)  The Administrative Agent is authorized on
behalf of all the Lenders, without the necessity of any notice to or further
consent from the Lenders, from time to time to take any action with respect to
any Collateral or the Collateral Documents which may be necessary to perfect
and maintain the perfection of the security interest in and Liens upon the
Collateral granted pursuant to the Collateral Documents.  Without excluding the Hedging Lenders from
other references to the Lenders as applicable in this Agreement, the receipt by
the Hedging Lenders of the Liens and other benefits of this Agreement with
respect to the Hedging Obligations shall be deemed to constitute the
authorization by and agreement of each of the Hedging Lenders with respect to
all the matters governed by this Section 9.11 and by Section 10.01.

 

(b)  The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion, to release any Lien
granted to or held by the Administrative Agent upon any Collateral (i) upon
termination of the Commitments and the payment in full of all Loans and all
other Obligations (other than indemnities not then owed) payable under this
Agreement and under any other Loan Document (other than any Hedging Obligation,
the term of which extends beyond the time of such termination of Commitments
and payment in full of all other Obligations), (ii) constituting property sold
or to be sold or Disposed of as part of or in connection with any Disposition
permitted hereunder, (iii) constituting property leased to the Borrower or any
Subsidiary under a lease that has expired or that has been terminated in a
transaction permitted under this Agreement, or that is about to expire and that
has not been, and that is not intended by the Borrower or such Subsidiary to
be, renewed or extended, (iv) consisting of an instrument evidencing
Indebtedness or other debt instrument, if the indebtedness evidenced thereby
has been paid in full, (v) constituting Mortgaged Property to be Disposed of
pursuant to a Disposition permitted under Section 7.05(d), (vi)
constituting Cash Collateral that arose under Section 2.05(g) that
Borrower elects to apply as a voluntary prepayment under Section 2.06 or
(vii) if approved, authorized or ratified in writing by the Required Lenders or
all the Lenders, as the case may be, as provided in Section 10.01(h).  The Lenders irrevocably authorize the
Administrative Agent, at its option and in its discretion, to release any
Guarantor 

 

80

 

from any Guaranty
(x) in connection with any Disposition permitted hereunder of Stock of a
Subsidiary in a transaction permitted hereunder or (y) if approved, authorized
or ratified in writing by all the Lenders as provided in Section 10.01(g).  Upon request by the Administrative Agent at
any time, the Lenders will confirm in writing the Administrative Agent’s
authority to release any Guarantor or particular types or items of Collateral
pursuant to this Section 9.11(b).

 

(c)  All cash proceeds and other amounts realized
by the Administrative Agent from the Collateral after an Event of Default, and
all payments received by the Administrative Agent after an acceleration of the
Obligations, shall be applied in the following priority, on a pro rata basis
within each level of priority: first, to the payment of all costs and
expenses owed under Section 10.04; second, to accrued but unpaid
interest on the Loans and L/C Borrowings, accrued but unpaid letter of credit
and commitment fees hereunder, and amounts owing under Hedging Obligations
(other than any Swap Termination Value owing with respect thereto); third,
to payment of outstanding principal of the Loans and L/C Borrowings, any Swap
Termination Values payable with respect to Hedging Obligations, and to fund
Cash Collateralization of any L/C Obligations; fourth, to payment of all
other Obligations then due and payable; and fifth, the remainder, if
any, to Borrower or to whomever may be lawfully entitled to receive such
remainder.  Notwithstanding the
foregoing sentence, Cash Collateral for L/C Obligations shall be applied to
reimburse the L/C Issuer for drawings under Letters of Credit issued by it as
and when they arise in the same proportion as the aggregate amount of such Cash
Collateral bears to all L/C Obligations; upon expiration of all outstanding
Letters of Credit, any remaining Cash Collateral for L/C Obligations shall be
(i) if an Event of Default exists and is continuing at such time, applied as provided
in the preceding sentence, (ii) if no Default or Event of Default exists and is
continuing at such time, paid over to the Borrower, or (iii) if a Default
exists and is continuing at such time, held until such time as such Default
either matures into an Event of Default or is cured, at which time it shall be
applied as set forth in clause (i) or (ii) of this sentence, respectively.

 

ARTICLE X.

MISCELLANEOUS

 

10.01 Amendments;
Consents; Releases.

 

No amendment or
waiver of any provision of this Agreement or any other Loan Document, and no
consent to any departure by the Borrower or any other Loan Party therefrom,
shall be effective unless in writing signed by the Required Lenders and the
Borrower or the applicable Loan Party, as the case may be, and acknowledged by
the Administrative Agent, and each such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided,
however, that no such amendment, waiver or consent shall, unless in
writing and signed by each of the Lenders directly affected thereby (other than
the Hedging Lenders) and by the Borrower, and acknowledged by the
Administrative Agent, do any of the following:

 

(a)  extend or increase the Commitment of any
Lender (or reinstate any Commitment terminated pursuant to Section 8.02);

 

81

 

(b)  postpone any date fixed by this Agreement or
any other Loan Document for any payment or mandatory prepayment of principal,
interest, fees or other amounts due to the Lenders (or any of them) hereunder
or under any other Loan Document;

 

(c)  reduce the principal of, or the rate of
interest specified herein on, any Loan or L/C Borrowing, or (subject to clauses
(iii) and (iv) of the proviso below) any fees or other amounts payable to the
Lenders hereunder or under any other Loan Document; provided, however,
that only the consent of the Required Lenders shall be necessary to amend the
definition of “Default Rate” or to waive any obligation of the Borrower to pay
interest at the Default Rate;

 

(d)  change the percentage of the Aggregate
Commitments or of the aggregate unpaid principal amount of the Loans and L/C
Obligations which is required for the Lenders or any of them to take any action
hereunder;

 

(e)  change the definition of “Pro Rata Share” or
“Voting Percentage” with respect to any Lender;

 

(f)  amend this Section or any provision herein
providing for consent or other action by all the Lenders;

 

(g)  release any Guarantor from any Guaranty
(other than releases authorized under Section 9.11(b)(x)); or

 

(h)  release the Liens upon any material portion
of the Mortgaged Property (other than releases authorized under Section
9.11(b)(i) through (b)(vi)).

 

and, provided
further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the applicable L/C Issuer in addition to the Required
Lenders or each directly affected Lender, as the case may be, affect the rights
or duties of such L/C Issuer under this Agreement or any Letter of Credit Application
relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by the
Administrative Agent in addition to the Required Lenders or each directly
affected Lender, as the case may be, affect the rights or duties of the
Administrative Agent under this Agreement or any other Loan Document; (iii) the
Swap Contracts that evidence Hedging Obligations may be entered into, amended,
or terminated from time to time by the Borrower and the relevant Lender or the
relevant Affiliate of a Lender with notice thereof to the Administrative Agent,
and (iv) the Agent/Arranger Fee Letter may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties thereto.  Notwithstanding anything to the contrary
herein, any Lender that has a Voting Percentage of zero shall not have any
right to approve or disapprove any amendment, waiver or consent hereunder,
except that the Pro Rata Share of such Lender may not be increased without the
consent of such Lender.  Each Lender
hereby acknowledges that it is aware of the requirements imposed on the
Borrower by virtue of the last sentence of Section 2(a)(i) of the Forex
Agreement and the possibility that such requirements may affect the Borrower’s
ability to enter into an amendment to this Agreement.

 

82

 

10.02 Notices
and Other Communications; Facsimile Copies.

 

(a)  General.  Unless otherwise expressly provided herein, all notices and other
communications provided for hereunder shall be in writing (including by
facsimile transmission) and mailed, faxed or delivered, to the address,
facsimile number or (subject to subsection (c) below) electronic mail address
specified for notices on Schedule 10.02; or, in the case of the
Borrower, the Administrative Agent or any L/C Issuer, to such other address as
shall be designated by such party in a notice to the other parties, and in the
case of any other party, to such other address as shall be designated by such
party in a notice to the Borrower, the Administrative Agent and the L/C
Issuers.  All such notices and other
communications shall be deemed to be given or made upon the earlier to occur of
(i) actual receipt by the intended recipient and (ii) (A) if delivered by hand
or by courier, when signed for by the intended recipient; (B) if delivered by
mail, four Business Days after deposit in the mails, postage prepaid; (C) if
delivered by facsimile (x) to the Administrative Agent, when sent and receipt
has been confirmed by telephone and (y) to any Party other than the
Administrative Agent, when sent and received at the appropriate facsimile
number; and (D) if delivered by electronic mail (which form of delivery is
subject to the provisions of subsection (c) below), when delivered; provided,
however, that notices and other communications to the Administrative Agent or
any L/C Issuer pursuant to Article II shall not be effective until
actually received by such Person.  Any
notice or other communication permitted to be given, made or confirmed by
telephone hereunder shall be given, made or confirmed by means of a telephone
call to the intended recipient at the number specified on Schedule 10.02,
it being understood and agreed that a voicemail message shall in no event be
effective as a notice, communication or confirmation hereunder.

 

(b)  Effectiveness of Facsimile Documents and
Signatures.  Loan Documents may be
transmitted and/or signed by facsimile. 
The effectiveness of any such documents and signatures shall, subject to
applicable Law, have the same force and effect as manually-signed originals and
shall be binding on all Loan Parties, the Administrative Agent and the
Lenders.  The Administrative Agent may
also require that any such documents and signatures be confirmed by a
manually-signed original thereof; provided, however, that the failure to
request or deliver the same shall not limit the effectiveness of any facsimile
document or signature.

 

(c)  Limited Use of Electronic Mail and the
Internet.  Reports required to be
delivered pursuant to Sections 6.01 or 6.02 shall be deemed to
have been delivered on the date on which the Borrower posts such reports either
(i) on the Borrower’s website on the Internet at the website address listed on Schedule
10.02 or (ii) when such report is posted electronically on
IntraLinks/IntraAgency or other relevant third-party commercial website (if
any) on the Borrower’s behalf; provided that (x) Borrower shall deliver
paper copies of such reports to the Administrative Agent or any Lender who
requests that the Borrower deliver such paper copies until written request to
cease delivering paper copies is given by the Administrative Agent or such
Lender, (y) the Borrower shall notify by facsimile or by electronic mail the
Administrative Agent and each Lender of the posting of any such reports, and
(z) in every instance the Borrower shall provide paper copies of the Compliance
Certificates required by Section 6.02(b) to the Administrative Agent and
each of the Lenders.  Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to
request the delivery or to maintain copies of the 

 

83

 

reports referred
to above, and in any event shall have no responsibility to monitor compliance
by the Borrower with any such request for delivery, and each Lender shall be
solely responsible for requesting delivery to it or maintaining its copies of
such reports.  Except as provided in
this Section 10.02(c), the use of electronic mail and internet and
intranet websites shall not be effective for any notices or other
communications hereunder.

 

(d)  Reliance by Administrative Agent and
Lenders.  The Administrative Agent
and the Lenders shall be entitled to rely and act upon any notices (including
telephonic Loan Notices) purportedly given by a Responsible Officer of the
Borrower even if (i) such notices were not made in a manner specified herein,
were incomplete or were not preceded or followed by any other form of notice
specified herein, or (ii) the terms thereof, as understood by the recipient,
varied from any confirmation thereof. 
The Borrower shall indemnify each Agent-Related Person and each Lender
from all losses, costs, expenses and liabilities resulting from the reliance by
such Person on each notice purportedly given by a Responsible Officer of the
Borrower, INCLUDING SUCH LOSSES, COSTS,
EXPENSES AND LIABILITIES CONSTITUTING IN WHOLE OR PART SUCH AGENT-RELATED
PERSON’S OR SUCH LENDER’S STRICT LIABILITY, OR COMPARATIVE, CONTRIBUTORY OR
SOLE NEGLIGENCE, except to the extent that such losses, costs,
expenses or liabilities are determined by a court of competent jurisdiction by
final and nonappealable judgment to have resulted from the gross negligence or
willful misconduct of such Person.  All
telephonic notices to and other communications with the Administrative Agent
may be recorded by the Administrative Agent, and each of the parties hereto
hereby consents to such recording.

 

10.03 No
Waiver; Cumulative Remedies.

 

No failure by any
Lender or the Administrative Agent to exercise, and no delay by any such Person
in exercising, any right, remedy, power or privilege hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein or therein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

 

10.04 Attorney Costs,
Expenses and Taxes.

 

The Borrower
agrees (a) to pay or reimburse each of the Administrative Agent and BAS (in its
capacity as Arranger) for all its reasonable costs and expenses incurred in
connection with the development, preparation, negotiation and execution of this
Agreement and the other Loan Documents and any amendment, waiver, consent or
other modification of the provisions hereof and thereof (whether or not the transactions
contemplated hereby or thereby are consummated), and the consummation and
administration of the transactions contemplated hereby and thereby, including
all reasonable Attorney Costs, and (b) to pay or reimburse the Administrative
Agent and each Lender for all costs and expenses incurred in connection with
the enforcement, attempted enforcement, or preservation of any rights or
remedies under this Agreement or the other Loan Documents (including all such
costs and expenses incurred during any “workout” or 

 

84

 

restructuring in
respect of the Obligations and during any legal proceeding, including any
proceeding under any Debtor Relief Law), including all Attorney Costs.  The foregoing costs and expenses shall
include all search, filing, recording, title insurance and appraisal charges
and fees and taxes related thereto, and other out-of-pocket expenses incurred
by the Administrative Agent and the cost of independent public accountants and
other outside experts retained by the Administrative Agent or any Lender.  The agreements in this Section shall survive
the termination of the Aggregate Commitments and repayment of all other
Obligations.

 

10.05 Indemnification
by the Borrower.

 

Whether or not the
transactions contemplated hereby are consummated, the Borrower shall indemnify
and hold harmless each Agent-Related Person, each Lender and their respective
Affiliates, directors, officers, employees, counsel, agents and
attorneys-in-fact (collectively the “Indemnitees”) from and against any
and all liabilities, obligations, losses, damages, penalties, claims, demands,
actions, judgments, suits, costs, expenses and disbursements (including
reasonable Attorney Costs) of any kind or nature whatsoever that may at any
time be imposed on, incurred by or asserted against any such Indemnitee in any
way relating to or arising out of or in connection with (a) the execution,
delivery, enforcement, performance, or administration of any Loan Document or
any other agreement, letter or instrument delivered in connection with the
transactions contemplated thereby or the consummation of the transactions
contemplated thereby, (b) any Commitment, Loan or Letter of Credit or the use
or proposed use of the proceeds therefrom (including any refusal by an L/C
Issuer to honor a demand for payment under a Letter of Credit if the documents
presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), (c) any actual or alleged presence or release of
Hazardous Materials on or from any property currently or formerly owned or
operated by the Borrower or any Person that has ever been a Loan Party, or any
Environmental Liability related in any way to the Borrower or any such Person,
or (d) any actual or prospective claim, litigation, investigation, or
proceeding relating to any of the foregoing, whether based on contract, tort or
any other theory (including any investigation of, preparation for, or defense
of any pending or threatened claim, investigation, litigation or proceeding)
and regardless of whether any Indemnitee is a party thereto INCLUDING ANY OF THE FOREGOING CONSTITUTING IN WHOLE
OR PART INDEMNITEES’ STRICT LIABILITY, OR COMPARATIVE, CONTRIBUTORY OR SOLE
NEGLIGENCE (all the foregoing, collectively, the “Indemnified
Liabilities”); provided that the Borrower shall have no obligation
hereunder to any Indemnitee with respect to (i) Indemnified Liabilities that
are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee, (ii) any material violation of any banking law or regulation
by such Indemnitee, (iii) any liability as between or among any Indemnitee or
their respective shareholders and controlling persons, (iv) any default
hereunder by any Person other than the Borrower, or (v) any Taxes or Other
Taxes, except to the extent such Taxes or Other Taxes are indemnified against
by other provisions of this Agreement. 
The agreements in this Section shall survive the resignation of the
Administrative Agent, the replacement of any Lender, the termination of the
Commitments and the repayment, satisfaction or discharge of all the other
Obligations.

 

85

 

10.06 Payments Set Aside.

 

To the extent that
the Borrower makes a payment to the Administrative Agent or any Lender, or the
Administrative Agent or any Lender exercises its right of set-off, and such
payment or the proceeds of such set-off or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent
or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in
full force and effect as if such payment had not been made or such set-off had
not occurred, and (b) each Lender severally agrees to pay to the Administrative
Agent upon demand its applicable share of any amount so recovered from or
repaid by the Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the
Federal Funds Rate from time to time in effect.

 

10.07 Successors and
Assigns.

 

(a)  The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that the Borrower
may not assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of each Lender (and any attempted assignment
or transfer by the Borrower without such consent shall be null and void).  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby and, to the
extent expressly contemplated hereby, the Indemnitees) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

 

(b)  Any Lender may assign to one or more
Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans
(including for purposes of this subsection (b), participations in L/C
Obligations) at the time owing to it); provided that (i) except in the
case of an assignment of the entire remaining amount of the assigning Lender’s
Commitment and the Loans at the time owing to it or in the case of an
assignment to a Lender or an Affiliate of a Lender or an Approved Fund with
respect to a Lender, the aggregate amount of the Commitment (which for this
purpose includes Loans outstanding thereunder) subject to each such assignment,
determined as of the date the Assignment and Assumption Agreement with respect
to such assignment is delivered to the Administrative Agent, shall not be less
than $5,000,000 unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed), (ii) each
partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loans (including participations in L/C Obligations) or the
Commitment assigned, and (iii) the parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption Agreement and
pay to the Administrative Agent a processing and recordation fee of
$3,500.  Subject to 

 

86

 

acceptance and
recording thereof by the Administrative Agent pursuant to subsection (c) of
this Section, from and after the effective date specified in each Assignment
and Assumption Agreement, the Eligible Assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Assumption Agreement, have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption Agreement, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption Agreement covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 3.07,
10.04 and 10.05).  Any
assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with subsection (d) of this Section.

 

(c)  The Administrative Agent, acting solely for
this purpose as an agent of the Borrower, shall maintain at the Administrative
Agent’s Office a copy of each Assignment and Assumption Agreement delivered to
it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amount of the Loans and L/C
Obligations owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”).  The
entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

 

(d)  Any Lender may, without the consent of, or
notice to, the Borrower or the Administrative Agent, sell participations to one
or more banks or other entities (a “Participant”) in all or a portion of
such Lender’s rights and/or obligations under this Agreement (including all or
a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations) owing to it); provided that
(i) such Lender’s obligations under this Agreement shall remain unchanged,
(ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations and (iii) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and
obligations under this Agreement.  Any
agreement or instrument pursuant to which a Lender sells such a participation
shall provide that such Lender shall retain the sole right to enforce this
Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other
modification that would (i) postpone any date upon which any payment of money
is scheduled to be paid to such Participant, (ii) reduce the principal,
interest, fees or other amounts payable to such Participant, (iii) release any
Guarantor from any Guaranty, or (iv) release all or substantially all of the
Collateral, other than, with respect to clauses (iii) and (iv), releases
authorized by Section 9.11(b). 
Subject to subsection (e) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 3.01, 3.04
and 3.05 to the same extent as 
if 

 

87

 

it were a Lender
and had acquired its interest by assignment pursuant to subsection (b) of this
Section.  To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 10.09 as
though it were a Lender, provided such Participant agrees to be subject
to Section 2.13 as though it were a Lender.

 

(e)  A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the Borrower is notified of the participation sold to such Participant
and such Participant agrees, for the benefit of the Borrower, to comply with Section
10.15 as though it were a Lender.

 

(f)  Any Lender may at any time pledge or assign
a security interest in all or any portion of its rights under this Agreement to
secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

 

(g)  If the consent of the Borrower to an
assignment or to an Eligible Assignee is required hereunder (including a
consent to an assignment which does not meet the minimum assignment threshold
specified in clause (i) of the proviso to the first sentence of Section
10.07(b)), the Borrower shall be deemed to have given its consent five
Business Days after the date notice thereof has been delivered by the assigning
Lender (through the Administrative Agent) unless such consent is expressly
refused by the Borrower prior to such fifth Business Day or if the Borrower has
made a reasonable written request to such Lender, with a copy to the
Administrative Agent, for information with respect to such proposed assignment
or Eligible Assignee, in which case the Borrower shall be deemed to have given
its consent five Business Days after such information is delivered to the
Borrower, unless the Borrower expressly refuses its consent prior to such fifth
Business Day.

 

(h)  As used herein, the following terms have the
following meanings:

 

Eligible Assignee”
means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d)
any other Person (other than a natural Person) approved by (i) the
Administrative Agent, in the case of any assignment of a Loan, (ii) Bank of
America in its capacity as L/C Issuer, and, if Existing Letters of Credit are
outstanding, Wachovia in its capacity as L/C Issuer, and (iii) unless (A) such
Person is taking delivery of an assignment in connection with physical
settlement of a credit derivatives transaction or (B) an Event of Default has
occurred and is continuing, the Borrower (each such approval referred to in
clauses (i) through (iii) not to be unreasonably withheld or delayed).

 

“Fund”
means any Person (other than a natural Person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.

 

88

 

“Approved Fund”
means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

 

(i)   Notwithstanding anything to the contrary
contained herein, if at any time Bank of America assigns all of its Commitment
and Loans pursuant to subsection (b) above, Bank of America may, upon 30 days’
notice to the Borrower and the Lenders, resign as an L/C Issuer.  In the event of any such resignation by Bank
of America as L/C Issuer, the Borrower shall be entitled to appoint from among
the Lenders a successor L/C Issuer hereunder; provided, however,
that no failure by the Borrower to appoint any such successor shall affect the
resignation of Bank of America as an L/C Issuer.  Bank of America shall retain all its respective rights and
obligations of an L/C Issuer hereunder with respect to all outstanding Letters
of Credit issued by it as of the effective date of its resignation as an L/C
Issuer and all L/C Obligations with respect thereto (including the right to
require the Lenders to make Base Rate Loans or fund participations in
Unreimbursed Amounts pursuant to Section 2.03(c)).

 

10.08 Confidentiality.

 

The Administrative
Agent, each L/C Issuer, each Affiliate of a Lender owed Hedging Obligations,
and each Lender agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its and
its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the
Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information
confidential); (b) to the extent requested by any regulatory authority;
(c) to the extent  required by
applicable laws or regulations or by any subpoena or similar legal process; (d)
to any other party to this Agreement; (e) in connection with the exercise of
any remedies hereunder or any suit, action or proceeding relating to this
Agreement or the enforcement of rights hereunder; (f) subject to an agreement
containing provisions substantially the same as those of this Section, to (i)
any Eligible Assignee of or Participant in, or any prospective Eligible
Assignee of or Participant in, any of its rights or obligations under this
Agreement or (ii) any direct or indirect contractual counterparty or
prospective counterparty (or such contractual counterparty’s or prospective
counterparty’s professional advisor) to any credit derivative transaction
relating to obligations of the Borrower; (g) with the prior written consent of
the Borrower; (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes
available to it on a nonconfidential basis from a source other than the
Borrower or any of its Subsidiaries, provided that such source is not bound by
a confidentiality agreement with the Borrower or any of its Subsidiaries known
to such Administrative Agent, L/C Issuer, Affiliate of a Lender owed Hedging
Obligations, or Lender; (i) to the National Association of Insurance
Commissioners or any other similar organization or any nationally recognized
rating agency that requires access to information about a Lender’s or its
Affiliates’ investment portfolio in connection with ratings issued with respect
to such Lender or its Affiliates, or (j) to the extent such Person is an export
credit agency and is required to disclose such Information by its disclosure
policy.  In addition, the Administrative
Agent and the Lenders may disclose the existence of this Agreement and
information about this Agreement to market data collectors, similar service
providers to the 

 

89

 

lending industry,
and service providers to the Administrative Agent and the Lenders in connection
with the administration and management of this Agreement, the other Loan
Documents, the Commitments, and the Credit Extensions.  For the purposes of this Section, “Information”
means all information received from the Borrower or any of its Subsidiaries
relating to the Borrower or any of its Subsidiaries or their respective
businesses, other than any such information that is available to the
Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrower; provided that, in the case of information
received from the Borrower after the Closing Date, such information is clearly
identified in writing at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has taken normal
and reasonable precautions and exercised reasonably due care to maintain the
confidentiality of such Information.

 

10.09 Set-off.

 

In addition to any
rights and remedies of the Lenders provided by law, upon the occurrence and
during the continuance of any Event of Default, each Lender is authorized at
any time and from time to time, without prior notice to the Borrower or any
other Person that has ever been a Loan Party, any such notice being waived by
the Borrower (on its own behalf and on behalf of each such other Person) to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held by,
and other indebtedness at any time owing by, such Lender to or for the credit
or the account of the respective Loan Parties against any and all Obligations
owing to such Lender, now or hereafter existing, irrespective of whether or not
the Administrative Agent or such Lender shall have made demand under this
Agreement or any other Loan Document and although such Obligations may be
contingent or unmatured.  Each Lender
agrees promptly to notify the Borrower and the Administrative Agent after any
such set-off and application made by such Lender; provided, however,
that the failure to give such notice shall not affect the validity of such
set-off and application.

 

10.10 Interest Rate Limitation.

 

(a)  Notwithstanding anything to the contrary
contained in any Loan Document, the interest paid or agreed to be paid under
the Loan Documents shall not exceed the maximum rate of non-usurious interest
permitted by applicable Law (the “Maximum Rate”).  If the Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. 
In determining whether the interest contracted for, charged, or received
by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (i) characterize any payment
that is not principal as an expense, fee, or premium rather than interest, (ii)
exclude voluntary prepayments and the effects thereof, and (iii) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of
interest throughout the contemplated term of the Obligations.

 

90

 

(b)  This Section 10.10(b) shall be null
and void and have no force and effect unless, contrary to the intention of the
parties hereto, a court of competent jurisdiction applies the laws of the State
of Texas to the Loan Documents (other than the Deed of Trust, as provided
therein), in which case this Section 10.10(b) shall apply and shall
supersede Section 10.10(a) of this Agreement, which shall then have no
force and effect.

 

(i)       It is the intention of the parties hereto
to conform strictly to applicable usury laws, and anything herein or in any
other Loan Document to the contrary notwithstanding, the obligation of the Loan
Parties shall be subject to the limitation that payment of interest (for
purposes of this Section 10.10(b), including all amounts constituting
interest under applicable usury laws, regardless of whether denominated as
interest) shall not be required to the extent that receipt or charging thereof
would be contrary to provisions of applicable law limiting rates or amounts of
interest which may be contracted for, charged, received, taken or reserved by
any Lender or other recipient thereof. 
Accordingly, if the transactions contemplated hereby or by the other
Loan Documents would be usurious under applicable law (including the federal
and state laws of the United States of America, or of any other jurisdiction
whose laws may be mandatorily applicable) with respect to a Lender or other
recipient of such amount, whether due to acceleration of maturity, optional or
mandatory prepayment, or otherwise, then, in that event, notwithstanding
anything to the contrary herein or in any other Loan Document, it is agreed as
follows as to such Lender or other recipient of any such amount:

 

(ii)      The provisions of this Section 10.10(b)
shall govern and control over any other provision herein or in any other Loan
Document;

 

(iii)     The aggregate of all consideration which
constitutes interest under applicable law that is contracted for, charged,
received, taken or reserved under this Agreement or any other Loan Document, or
otherwise in connection with the transactions contemplated hereby or thereby,
as to each Lender or other recipient shall under no circumstances exceed the
maximum amount of non-usurious contract interest permitted by applicable law
with respect to such Lender or other recipient (herein called the “Maximum
Rate”), and all amounts owed hereunder or under any other Loan Document
shall be held subject to reduction and (i) the amount of interest which would
otherwise be payable to such Lender or other recipient hereunder or under any
of the other Loan Documents shall be automatically reduced to the amount
allowed under law applicable to such Lender or other recipient, and (ii) any
interest paid in excess of the Maximum Rate shall be credited on the
Obligations owing to such Lender or other recipient (or if such Obligations
have been, or would thereby be, paid in full, refunded to the applicable Loan
Party);

 

(iv)     All sums paid, or agreed to be paid, for
the use, forbearance and detention of the amounts owed under the Loan Documents
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term in respect of such amounts owed
under the Loan Documents until payment in full of all such amounts so that the
rate or computation of interest on such Obligations does not exceed the
applicable usury ceiling;

 

91

 

(v)      If at any time the interest payable
pursuant to or in connection with this Agreement or any of the other Loan
Documents exceeds, for any Lender or other recipient of such amounts, the
Maximum Rate, the amount of interest to accrue to such Lender or other
recipient pursuant hereto or pursuant to any of the other Loan Documents shall
be limited to that amount which would have accrued at the Maximum Rate for such
Lender or other recipient, but any subsequent reductions in the otherwise
applicable rate of interest shall not reduce the interest to accrue pursuant to
this Agreement or any other Loan Document below any Lender’s or other
recipient’s Maximum Rate until the total amount of interest payable to such
Lender or other recipient equals the amount of interest which would have been
payable to such Lender or other recipient but for the effect of this Section
10.10(b);

 

(vi)     The right to accelerate maturity of the
Obligations or any other amounts hereunder or under the other Loan Documents
does not include the right to accelerate any interest which has not otherwise
accrued on the date of acceleration;

 

(vii)    All computations to determine compliance
with the Maximum Rate shall be made on the basis of the actual number of days
elapsed over a year of 365 or 366 days, whichever is applicable; and

 

(viii)   The Maximum Rate shall be determined by
utilizing the weekly ceiling from time to time in effect pursuant to Chapter
303 of the Texas Finance Code, as amended, and in no event shall Chapter 346 of
the Texas Finance Code, as amended, be applicable to this Agreement or any
other Loan Document.

 

10.11 Counterparts.

 

This Agreement may
be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

10.12 Integration.

 

This Agreement,
together with the other Loan Documents, comprises the complete and integrated
agreement of the parties on the subject matter hereof and thereof and
supersedes all prior agreements, written or oral, on such subject matter.  In the event of any conflict between the
provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control; provided that the inclusion
of supplemental rights or remedies in favor of the Administrative Agent or the
Lenders in any other Loan Document shall not be deemed a conflict with this
Agreement.  Each Loan Document was
drafted with the joint participation of the respective parties thereto and
shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof. 
THE WRITTEN 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 UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

 

92

 

10.13 Survival of Representations and Warranties.

 

All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof.  Such representations and warranties have
been or will be relied upon by the Administrative Agent and each Lender,
regardless of any investigation made by the Administrative Agent or any Lender
or on their behalf and notwithstanding that the Administrative Agent or any
Lender may have had notice or knowledge of any Default or Event of Default at
the time of any Credit Extension, and shall continue in full force and effect
as long as any Loan or any other Obligation shall remain unpaid or unsatisfied
or any Letter of Credit shall remain outstanding.

 

10.14 Severability.

 

Any provision of
this Agreement and the other Loan Documents to which the Borrower is a party
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions thereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

 

10.15 Foreign Lenders.

 

(a)  Each Lender that is not a “United States
Person” within the meaning of Section 7701(a)(30) of the Code (a “Foreign
Lender”) shall deliver to the Administrative Agent, prior to receipt of any
payment subject to withholding under the Code (or upon accepting an assignment
of an interest herein), two duly signed completed copies of either IRS Form
W-8BEN or any successor thereto (relating to such Person and entitling it to an
exemption from, or reduction of, withholding tax on all payments to be made to
such Person by the Borrower pursuant to this Agreement) or IRS Form W-8ECI or
any successor thereto (relating to all payments to be made to such Person by
the Borrower pursuant to this Agreement) or such other evidence satisfactory to
the Borrower and the Administrative Agent that such Person is entitled to an
exemption from, or reduction of, U.S. withholding tax.  Thereafter and from time to time, each such
Person shall (i) promptly submit to the Administrative Agent such additional
duly completed and signed copies of one of such forms (or such successor forms
as shall be adopted from time to time by the relevant United States taxing
authorities) as may then be available under then current United States laws and
regulations to avoid, or such evidence as is satisfactory to the Borrower and
the Administrative Agent of any available exemption from or reduction of,
United States withholding taxes in respect of all payments to be made to such
Person by the Borrower pursuant to this Agreement, (ii) promptly notify the
Administrative Agent of any change in circumstances which would modify or
render invalid any claimed exemption or reduction, and (iii) take such steps as
shall not be materially disadvantageous to it, in the reasonable judgment of
such Lender, and as may be reasonably necessary (including the re-designation
of its Lending Office) to avoid any requirement of applicable Laws that the
Borrower make any deduction or withholding for taxes from amounts payable to
such Person.  If such Person fails to
deliver the above forms or other documentation, then (x) the Administrative
Agent may withhold from any 

 

93

 

interest payment
to such Person an amount equivalent to the applicable withholding tax imposed
by Sections 1441 and 1442 of the Code, without reduction, and (y) the Borrower
shall not be required to make any deductions or payments to any Lender under Section
3.01(a)(i) or Section 3.01(c) that would otherwise be required
thereunder solely as a result of such Lender’s failure to deliver such forms or
other documentation.

 

(b)  Upon the request of the Administrative
Agent, each Lender that is a “United States person” within the meaning of
Section 7701(a)(30) of the Code shall deliver to the Administrative Agent two
duly signed completed copies of IRS Form W-9. 
If such Lender fails to deliver such forms, then the Administrative
Agent may withhold from any interest payment to such Lender an amount
equivalent to the applicable back-up withholding tax imposed by the Code,
without reduction.

 

(c)  If any Governmental Authority asserts that
the Administrative Agent did not properly withhold or backup withhold, as the
case may be, any tax or other amount from payments made to or for the account
of any Lender, such Lender shall indemnify the Administrative Agent therefor, including
all penalties and interest, any taxes imposed by any jurisdiction on the
amounts payable to the Administrative Agent under this Section, and costs and
expenses (including Attorney Costs) of the Administrative Agent.  The obligation of the Lenders under this
Section shall survive the termination of the Aggregate Commitments, repayment
of all Obligations and the resignation or replacement of the Administrative
Agent.

 

10.16 Removal
and Replacement of Lenders.

 

(a)  Under any circumstances set forth herein
providing that the Borrower shall have the right to remove or replace a Lender
as a party to this Agreement, the Borrower may, upon notice to such Lender and
the Administrative Agent, (i) remove such Lender by  terminating such Lender’s Commitment or (ii) replace such Lender
by causing such Lender to assign its Commitment (without payment of any
assignment fee) pursuant to Section 10.07(b) to one or more other
Lenders or Eligible Assignees procured by the Borrower; provided,
however, that if the Borrower elects to exercise such right with respect to any
Lender pursuant to Section 3.06(b), it shall be obligated to remove or
replace, as the case may be, all Lenders that have similar requests for
compensation pursuant to Section 3.01 or 3.04, similar requirements
for increased payment under Section 3.01(a), or similar suspensions of
obligations under Eurodollar Rate Loans under Section 3.02, outstanding
at such time.  The Borrower shall (x)
pay in full all principal, interest, fees and other amounts owing to such
Lender through the date of termination or assignment (including any amounts
payable pursuant to Section 3.05), (y) in the case of the removal of a
Lender under clause (i) of this Section 10.16(a), provide appropriate
assurances and indemnities (which may include letters of credit) to the L/C
Issuers as each may reasonably require with respect to any continuing
obligation of such Lender to purchase participation interests in any L/C
Obligations then outstanding, and (z) release such Lender from its obligations
under the Loan Documents.  Any Lender
being replaced shall execute and deliver an Assignment and Assumption Agreement
with respect to such Lender’s Commitment and outstanding Credit Extensions.  The Administrative Agent shall distribute an
amended Schedule 2.01, which shall be deemed incorporated into this
Agreement, to reflect changes in the identities 

 

94

 

of the Lenders and
adjustments of their respective Commitments and/or Pro Rata Shares resulting
from any such removal or replacement.

 

(b)  In order to make all the Lenders’ interests
in any outstanding Credit Extensions ratable in accordance with any revised Pro
Rata Shares after giving effect to the removal or replacement of a Lender, the
Borrower shall pay or prepay, if necessary, on the effective date thereof, all
outstanding Loans of all Lenders, together with any amounts due under Section
3.05.  The Borrower may then request
Loans from the Lenders in accordance with their revised Pro Rata Shares.  The Borrower may net any payments required
hereunder against any funds being provided by any Lender or Eligible Assignee
replacing a terminating Lender.  The
effect for purposes of this Agreement shall be the same as if separate
transfers of funds had been made with respect thereto.

 

(c)  This Section shall supersede any provision
in Section 10.01 to the contrary.

 

10.17 Governing Law.

 

(a)  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO
AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE; PROVIDED
THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING
UNDER FEDERAL LAW.

 

(b)  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF
THE STATE OF NEW YORK IN NEW YORK COUNTY OR OF THE UNITED STATES FOR THE
SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS
AGREEMENT, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF
THOSE COURTS.  THE BORROWER, THE
ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION,
INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF
ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT
OR OTHER DOCUMENT RELATED THERETO.  THE
BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF
ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS
PERMITTED BY THE LAW OF SUCH STATE.

 

10.18 Waiver of
Right to Trial by Jury.

 

EACH PARTY TO THIS
AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY
CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO 

 

95

 

OR ANY OF THEM
WITH RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH
CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT
OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY.

 

10.19 Time of the
Essence.

 

Time is of the
essence of the Loan Documents.

 

96

 

IN
WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the date first above written.

 

	
   

  	
  LOUISIANA-PACIFIC CORPORATION,
  as the

  
	
   

  	
  Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Curtis M. Stevens

  	
   

  
	
   

  	
   

  	
   

  	
  Vice President, Treasurer and Chief Financial
  Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.,
  as Administrative

  
	
   

  	
  Agent, an L/C Issuer and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Stephen H. Kilbuck

  	
   

  
	
   

  	
   

  	
   

  	
  Managing Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, N.A.,
  as Syndication Agent

  
	
   

  	
  and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ROYAL BANK OF CANADA,
  as Documentation

  
	
   

  	
  Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NOVA SCOTIA,
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

97

 

	
   

  	
  EXPORT DEVELOPMENT CORPORATION,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

98

 

SCHEDULE 2.01

 

COMMITMENTS

AND PRO RATA SHARES

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Pro Rata Share

  	
   

  
	
  Bank of America,
  N.A.

  	
   

  	
  50,000,000

  	
   

  	
  26.315789474

  	
  %

  
	
  Wachovia Bank,
  N.A.

  	
   

  	
  50,000,000

  	
   

  	
  26.315789474

  	
  %

  
	
  Royal Bank of
  Canada

  	
   

  	
  50,000,000

  	
   

  	
  26.315789474

  	
  %

  
	
  The Bank of Nova
  Scotia

  	
   

  	
  30,000,000

  	
   

  	
  15.789473684

  	
  %

  
	
  Export
  Development Corporation

  	
   

  	
  10,000,000

  	
   

  	
  5.263157894

  	
  %

  
	
  Total

  	
   

  	
  $

  	
   190,000,000

  	
   

  	
  100.000000000

  	
  %

  
							

 

 

SCHEDULE 5.09(a)

 

UCC
FILING JURISDICTIONS

 

 

SCHEDULE 5.09(b)

 

DEED OF TRUST RECORDING COUNTIES IN
TEXAS

 

 

SCHEDULE 5.13

 

ERISA
COMPLIANCE

 

 

SCHEDULE 5.14

 

SUBSIDIARIES

 

AND
OTHER EQUITY INVESTMENTS

 

Part (a).       Subsidiaries.

 

Part (b).       Other Equity Investments.

 

 

SCHEDULE 6.13(a)

 

SUBSIDIARIES NOT REQUIRED TO EXECUTE
GUARANTEES

 

 

SCHEDULE 7.01

 

EXISTING
LIENS

 

 

SCHEDULE 7.02

 

EXISTING
INVESTMENTS

 

 

SCHEDULE 7.03

 

EXISTING
INDEBTEDNESS

 

 

SCHEDULE 10.02

 

EURODOLLAR
AND DOMESTIC LENDING OFFICES,

ADDRESSES FOR NOTICES

 

LOUISIANA-PACIFIC
CORPORATION

 

Louisiana-Pacific
Corporation

805 S.W. Broadway,
Suite 700

Portland, Oregon
97205

 

Attn:   Vice
President and Chief Financial Officer

 

                                        Telephone:  (503) 821-5100

Facsimile:  (503) 821-5322

 

BANK
OF AMERICA

 

Administrative Agent’s Office and
Bank of America’s  Lending Office

(for payments and Requests for Credit Extensions):

 

Bank of America,
N.A.

Agency
Administrative Services #5596

1850 Gateway Blvd.
- 5th Floor

Mail Code: CA
4-706-05-09

Concord, CA 94520

Attention:                   Mark Garcia

Credit Service Representative

Telephone: 925. 675.8416

Facsimile:  925.888.969.2297

Electronic Mail: mark.a.garcia@bankofamerica.com\

 

Account No.:
3750836479

Ref:  Louisiana Paci

ABA# 111000012

 

 

L/C
Issuer:

 

Bank of America,
N.A.

Trade Operations-Los Angeles #22621

333 S. Beaudry Avenue, 19th Floor

Mail Code:  CA9-703-19-23

Los Angeles, CA 90017-1466

Attention:                   Sandra Leon

Vice President

Telephone:   213.345.5231

Facsimile:     213.345.6694

Electronic Mail:     Sandra.Leon@bankofamerica.com

 

Other Notices as Administrative
Agent:

 

Bank of America,
N.A.

Agency Management #10831

1455 Market Street, 5th Floor

Mail Code:  CA5-701-05-19

San Francisco, CA 94103-1399

 

Attention:                   Carl Fye

Vice President

Telephone: 415.436.2616

Facsimile:  415.503.5059

Electronic Mail: carl.fye@bankofamerica.com, with copy to
mike.balok@bankamerica.com

 

Other Notices as a Lender:

 

Bank of America,
N.A.

San Francisco Credit Products/Forest Products #9973

555 California
Street —12th Floor

Mail Code:
CA5-705-12-12

San Francisco, CA
94104

 

Attention:                   Stephen H.
(Steve) Kilbuck

Managing Director/ Sr Portfolio Manager

Telephone:  415.622.1617

Facsimile:    415.622.4585

Electronic Mail: stephen.h.kilbuck@bankofamerica.com

 

2

 

with a copy to:

 

Morrison &
Foerster LLP

425 Market Street

San Francisco, CA
94105

 

Attn:  Keith C. Wetmore

 

Telephone:   415-268-7000

Facsimile:     415-268-7522

Electronic
Mail:  Kwetmore@mofo.com

 

Bank of America, N.A.

335 Madison Avenue

Mail Code: NY1-503-04-03

New York, NY 10017

 

Attn:         Jean Brenner

Asst General Counsel

 

Telephone:  212-503-7238

Facsimile:   212-503-7350

 

WACHOVIA
BANK, N.A.

 

Wachovia Bank,
N.A.

191 Peachtree  St., NE

Atlanta, GA 30303

 

Attn:         Shawn Janko

Vice President

 

Telephone:  (404) 332-5884 

Facsimile:  (404) 332-4136

Electronic Mail: shawn.janko@wachovia.com

 

3

 

with a copy to:

 

Wachovia Bank,
N.A.

P.O. Box 2704

Winston-Salem,
N.C. 27150-2704

 

Attn:   Dana Corbo

 

Telephone:  (336) 777-5086

Facsimile:  (336) 777-5111

Electronic Mail: dana.corbo@wachovia.com

 

ROYAL
BANK OF CANADA

 

Address for
notices:

 

Royal Bank of
Canada

One Liberty Plaza

New York, NY
10006-1404

 

Attention:                   Nigel Delph

Telephone:   212-428-6363

Facsimile:     212-428-4376

Electronic Mail:  
Nigel.delph@royalusa.com

 

with a copy to:

 

Royal Bank of
Canada

One Liberty Plaza

New York, NY
10006-1404

 

Attn:  Manager, Loans Administration

Telephone:   212-428-6322

Facsimile:     212-428-2372

 

4

 

with  a copy
to:

 

Royal Bank of
Canada

666 Burrard Street

Vancouver, B.C.
V6C-3B1

 

Attn:         Gerry Derbshire

Senior Manager

 

Telephone:   604-257-7100

Facsimile:     604-665-6465

 

Domestic and Offshore Lending
Office:

 

Grand Cayman
(North American No. 1) Branch

c/o New York
Branch

Financial Square,
23rd Floor

New York, NY  10005-3531

 

THE
BANK OF NOVA SCOTIA

 

Requests for Credit Extensions:

 

Domestic Lending
Office:

 

The Bank of Nova
Scotia

600 Peachtree
Street, N.E, Suite 2700

Atlanta, Georgia
30308

 

Facsimile:  (404) 888-8998

 

Eurodollar Lending
Office:

 

The Bank of Nova
Scotia

600 Peachtree
Street, N.E, Suite 2700

Atlanta, Georgia
30308

 

Facsimile:  (404) 888-8998

 

5

 

Notices
(other than Requests for Credit Extensions):

 

The Bank of Nova
Scotia

600 Peachtree
Street, N.E, Suite 2700

Atlanta, Georgia 30308

 

Attn:  Arnetta Poindexter

         Loan Operations Officer

 

Telephone:  (404) 877-1674

Facsimile: (404) 888-8998

Electronic Mail: Arnetta.Poindexter@Scotiacapital.com

 

EXPORT
DEVELOPMENT CORPORATION

 

Requests for Credit Extensions:

 

Export Development
Corporation

151 O’Connor St.

Ottawa, Canada,
K1A 1K3

 

Attn:         Geoff Bleich

Financial Services Manager

 

Telephone:   613-598-2544

Facsimile:     613-597-8503

Electronic
Mail:  gbleich@edc.see.com

 

Notices (other than Requests for
Credit Extensions):

 

Export Development
Corporation

151 O’Connor St.

Ottawa, Canada,
K1A 1K3

 

Attn:         Erik Kaunisviita

Loans Services Manager

 

Telephone:   613-598-2979

Facsimile:     613-597-2514

Electronic
Mail:  ekaunisviita@edc.see.com

 

6

 

EXHIBIT A

 

FORM OF LOAN NOTICE

 

Date:  ___________, _____

 

To:     Bank of America, N.A., as Administrative
Agent

 

Ladies and
Gentlemen:

 

Reference is made
to that certain Credit Agreement, dated as of November 15, 2001 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among Louisiana-Pacific Corporation, a Delaware corporation
(the “Borrower”), the Lenders from time to time party thereto, and Bank
of America, N.A., as Administrative Agent and as L/C Issuer.

 

The undersigned
hereby requests (select one):

 

o  A
Borrowing of Loans                                           o  A conversion or continuation of Loans

 

1.       On ____________________________________
(a Business Day).

 

2.       In the amount of $
______________________.

 

3.       Comprised of .__________________________.
                             [Type of Loan
requested]

 

4.       For Eurodollar Rate Loans:  with an Interest Period of __________
months.

 

[The Borrowing
requested herein complies with the proviso to the first sentence of Section
2.01 of the Agreement.]

 

	
   

  	
  LOUISIANA-PACIFIC CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

 

EXHIBIT B

 

FORM OF GUARANTY

 

[See attached.]

 

 

EXHIBIT C

 

FORM OF
COMPLIANCE CERTIFICATE

 

Financial
Statement Date: ________.

To:     Bank of America, N.A., as Administrative
Agent

 

Ladies and
Gentlemen:

 

Reference is made
to that certain Credit Agreement, dated as of November 15, 2001 (as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as
therein defined), among Louisiana-Pacific Corporation, a Delaware corporation
(the “Borrower”), the Lenders from time to time party thereto, and Bank
of America, N.A., as Administrative Agent and as L/C Issuer.

 

The undersigned
Responsible Officer hereby certifies as of the date hereof that he/she is the
_________________________ of the Borrower, and that, as such, he/she is
authorized to execute and deliver this Certificate to the Administrative Agent
on the behalf of the Borrower, and that:

 

[Use following for fisca year-end financial statements]

 

1.       Attached hereto as Schedule 1 are
the year-end audited financial statements required by Section 6.01(a) of
the Agreement for the fiscal year of the Borrower ended as of the above date,
together with the report and opinion of an independent certified public
accountant required by such section.

 

[Use following for fiscal quarter-end financial statements]

 

1.       Attached hereto as Schedule 1 are
the unaudited financial statements required by Section 6.01(b) of the
Agreement for the fiscal quarter of the Borrower ended as of the above
date.  Such financial statements fairly
present in all material respects the financial condition, results of operations
and cash flows of the Borrower and its Subsidiaries in accordance with GAAP as
at such date and for such period, subject only to normal year-end audit
adjustments and the absence of footnotes.

 

2.       The undersigned has reviewed and is
familiar with the terms of the Agreement and has made, or has caused to be made
under his/her supervision, a detailed review of the transactions and condition
(financial or otherwise) of the Borrower during the accounting period covered
by the attached financial statements.

 

1

 

3.       A review of the activities of the
Borrower during such fiscal period has been made under the supervision of the
undersigned with a view to determining whether during such fiscal period the
Borrower performed and observed all its Obligations under the Loan Documents,
and

 

[select one:]

 

[to
the best knowledge of the undersigned during such fiscal period, the Borrower
performed and observed each covenant and condition of the Loan Documents
applicable to it.]

 

—or—

 

[the
following covenants or conditions have not been performed or observed and the
following is a list of each such Default or Event of Default and its nature and
status:]

 

4.       The financial covenant analyses and
information set forth on Schedule 2 attached hereto are true and
accurate on and as of the date of this Certificate.

 

IN WITNESS WHEREOF,
the undersigned has executed this Certificate as  

of ________________, ____________.

 

 

	
   

  	
  LOUISIANA-PACIFIC CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

2

 

            For the Quarter/Year ended _____________________ (“Statement
Date”)

 

SCHEDULE
2

to the Compliance Certificate

($ in 000’s)

 

[See
attached.]

 

3

 

EXHIBIT D

 

FORM OF
ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This Assignment
and Assumption Agreement (this “Assignment”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name
of Assignor] (the “Assignor”) and [Insert name of Assignee]
(the “Assignee”).  Capitalized
terms used but not defined herein shall have the meanings given to them in the
Credit Agreement identified below (the “Credit Agreement”), receipt of a
copy of which is hereby acknowledged by the Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a
part of this Assignment as if set forth herein in full.

 

For an agreed
consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the
Assignor, subject to and in accordance with the Standard Terms and Conditions
and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below, the interest in and to all of the
Assignor’s rights and obligations under the Credit Agreement and any other
documents or instruments delivered pursuant thereto that represents the amount
and percentage interest identified below of all of the Assignor’s outstanding
rights and obligations under the respective facilities identified below
(including, to the extent included in any such facilities, Letters of Credit)
(the “Assigned Interest”).  Such
sale and assignment is without recourse to the Assignor and, except as
expressly provided in this Assignment, without representation or warranty by
the Assignor.

 

1.       Assignor:     _________________________________

 

2.       Assignee:     ______________________________
[and is an Affiliate/Approved Fund (1)]

 

3.       Borrower:    Louisiana-Pacific
Corporation, a Delaware corporation

 

4.       Administrative Agent: Bank of America,
N.A., as the administrative agent under the Credit Agreement

 

5.       Credit Agreement: The Credit Agreement, dated as of November 15, 2001, among Borrower,
the Lenders parties thereto, and Bank of America, N.A., as the Administrative
Agent and an L/C Issuer.

 

6.       Assigned Interest:

 

(1) Select as
applicable.

 

1

 

	
  Facility Assigned

  	
   

  	
   

  	
  Aggregate
  Amount of Commitment/Loans for all Lenders

  	
   

  	
  Amount of
  Commitment/Loans Assigned

  	
   

  	
  Percentage
  Assigned of Commitment/Loans (2)

  	
   

  
	
   

  	
  (3)

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
  %

  

 

Effective Date:
__________________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL
BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

The terms set
forth in this Assignment are hereby agreed to:

 

	
   

  	
  ASSIGNOR

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  ASSIGNEE

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [NAME OF ASSIGNEE]

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
							

 

(2)  Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.

 

(3)  Fill in the appropriate terminology for the
types of facilities under the Credit Agreement that are being assigned under
this Assignment (e.g. "Revolving Credit Commitment, "Loan",
etc.).

 

2

 

	
   

  	
  [Consented to and] (4) Accepted:

  	
   

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  BANK OF AMERICA, N.A., as

  	
   

  	 

	
   

  	
  Administrative Agent

  	
   

  	 

	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Title:

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  [Consented to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LOUISIANA-PACIFIC CORPORATION] (5)

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	 

	
   

  	
   

  	
  Title:

  	 

										

 

(4)  To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.

 

(5)  To be added only if the consent of the
Borrower is requried by the terms of the Credit Agreement.

 

3

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION AGREEMENT

 

RELATING TO THAT CERTAIN CREDIT AGREEMENT,

DATED AS OF NOVEMBER 15, 2001,

AMONG LOUISIANA-PACIFIC CORPORATION,

THE LENDERS PARTIES THERETO, AND BANK OF AMERICA, N.A., AS THE 

ADMINISTRATIVE AGENT AND AN L/C ISSUER.

 

STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT

AND ASSUMPTION AGREEMENT

 

1.       Representations and Warranties.

 

1.1.    Assignor.  The Assignor (a) represents and warrants that (i) it is the legal
and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is
free and clear of any lien, encumbrance or other adverse claim and (iii) it has
full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and to consummate the transactions contemplated hereby;
and (b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with any Credit
Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement or any other instrument or
document delivered pursuant thereto, other than this Assignment (herein
collectively the “Credit Documents”), or any collateral thereunder,
(iii) the financial condition of the Borrower, any of its Subsidiaries or
Affiliates or any other Person obligated in respect of any Credit Document or
(iv) the performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under any
Credit Document.

 

1.2.    Assignee.  The Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver
this Assignment and to consummate the transactions contemplated hereby and to
become a Lender under the Credit Agreement, (ii) it meets all requirements of
an Eligible Assignee under the Credit Agreement, (iii) from and after the
Effective Date, it shall be bound by the provisions of the Credit Agreement
and, to the extent of the Assigned Interest, shall have the obligations of a
Lender thereunder, (iv) it has received a copy of the Credit Agreement,
together with copies of the most recent financial statements delivered pursuant
to Section 6.01 thereof, as applicable, and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and to purchase the Assigned Interest on
the basis of which it has made such analysis and decision, and (v) if it is a
Foreign Lender, attached hereto is any documentation required to be delivered
by it pursuant to the terms of the Credit Agreement, duly completed and
executed by the Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, the Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Documents are
required to be performed by it as a Lender.

 

1

 

1.3     Assignee’s Address for Notices, etc.  Attached hereto as Schedule 1 is all contact
information, address, account and other administrative information relating to
the Assignee.

 

2.       Payments.  From and after the Effective Date, the
Administrative Agent shall make all payments in respect of the Assigned
interest (including payments of principal, interest, fees and other amounts) to
the Assignee whether such amounts have accrued prior to or on or after the
Effective Date. The Assignor and the Assignee shall make all appropriate
adjustments in payments by the Administrative Agent for periods prior to the
Effective Date or with respect to the making of this assignment directly
between themselves.

 

3.       General Provisions.  This Assignment shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and
assigns.  This Assignment may be
executed in any number of counterparts, which together shall constitute one
instrument.  Delivery of an executed
counterpart of a signature page of this Assignment by facsimile shall be
effective as delivery of a manually executed counterpart of this
Assignment.  This Assignment shall be
governed by, and construed in accordance with, the law of the State of New
York.

 

2

 

SCHEDULE 1 TO ASSIGNMENT AND ASSUMPTION AGREEMENT

ADMINISTRATIVE DETAILS

 

(Assignee to list names of credit
contacts, addresses, phone and facsimile numbers, electronic mail addresses and
account and payment information)

 

 

1

 

EXHIBIT E-1

 

FORM OF OPINION OF COUNSEL

 

[See
attached.]

 

 

EXHIBIT E-2

 

FORM OF
OPINION OF NOVA SCOTIA COUNSEL

 

[See
attached.]

 

 

EXHIBIT E-3

 

FORM OF
OPINION OF TEXAS COUNSEL

 

[See
attached.]

 

 

EXHIBIT F

 

DEED
OF TRUST

 

[See
attached.]

 

 

EXHIBIT G

 

INTERCREDITOR
AGREEMENT

 

[See
attached.]

 

 

EXHIBIT H

 

PLEDGE
AGREEMENT

 

[See
attached.]

 

 

EXHIBIT I

 

SECURITY
AGREEMENT

 

[See
attached.]

 

 

CREDIT
AGREEMENT

 

Dated as of
November 15, 2001

 

among

 

LOUISIANA-PACIFIC
CORPORATION

as the Borrower,

 

BANK
OF AMERICA, N.A.,

as the Administrative Agent and an L/C Issuer,

 

WACHOVIA
BANK, N.A.,

as Syndication Agent,

 

ROYAL
BANK OF CANADA,

as Documentation Agent,

 

and

 

The Other Lenders
Party Hereto

 

BANC
OF AMERICA SECURITIES LLC,

as Joint Lead Arranger and Sole Book Manager, and

 

WACHOVIA
SECURITIES,

as Joint Lead Arranger

 

 

TABLE
OF CONTENTS

 

	
   

  	
  Section

  
	
   

  
	
  ARTICLE I.
  DEFINITIONS AND ACCOUNTING TERMS

  
	
   

  	
  1.01

  	
  Defined Terms.

  
	
   

  	
  1.02

  	
  Other Interpretive
  Provisions.

  
	
   

  	
  1.03

  	
  Accounting Terms.

  
	
   

  	
  1.04

  	
  Rounding.

  
	
   

  	
  1.05

  	
  References to
  Agreements and Laws.

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II. THE COMMITMENTS AND CREDIT EXTENSIONS

  
	
   

  	
  2.01

  	
  Loans.

  
	
   

  	
  2.02

  	
  Borrowings, Conversions and Continuations of
  Loans.

  
	
   

  	
  2.03

  	
  Letters of Credit.

  
	
   

  	
  2.04

  	
  Optional Prepayments.

  
	
   

  	
  2.05

  	
  Mandatory Prepayments.

  
	
   

  	
  2.06

  	
  Voluntary
  Reduction or Termination of Commitments.

  
	
   

  	
  2.07

  	
  Repayment of Loans.

  
	
   

  	
  2.08

  	
  Interest.

  
	
   

  	
  2.09

  	
  Fees.

  
	
   

  	
  2.10

  	
  Computation of
  Interest and Fees.

  
	
   

  	
  2.11

  	
  Evidence of Debt.

  
	
   

  	
  2.12

  	
  Payments Generally.

  
	
   

  	
  2.13

  	
  Sharing of Payments.

  
	
   

  	
  2.14

  	
  Security.

  
	
   

  	
   

  	
   

  
	
  ARTICLE III. TAXES, YIELD PROTECTION AND
  ILLEGALITY

  
	
   

  	
  3.01

  	
  Taxes.

  
	
   

  	
  3.02

  	
  Illegality.

  
	
   

  	
  3.03

  	
  Inability to Determine
  Rates.

  
	
   

  	
  3.04

  	
  Increased Cost and Reduced
  Return; Capital Adequacy; Reserves on Eurodollar Rate Loans.

  
	
   

  	
  3.05

  	
  Funding Losses.

  
	
   

  	
  3.06

  	
  Matters
  Applicable to all Requests for Compensation.

  
	
   

  	
  3.07

  	
  Survival.

  
	
   

  	
  3.08

  	
  Dissolving Subsidiaries.

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

  
	
   

  	
  4.01

  	
  Conditions of
  Initial Credit Extension.

  
	
   

  	
  4.02

  	
  Conditions
  to all Credit Extensions and Conversions and Continuations.

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.
  REPRESENTATIONS AND WARRANTIES

  
	
   

  	
  5.01

  	
  Existence,
  Qualification and Power; Compliance with Laws.

  
	
   

  	
  5.02

  	
  Authorization; No Contravention.

  
	
   

  	
  5.03

  	
  Governmental Authorization.

  

 

i

 

	
   

  	
  5.04

  	
  Binding Effect.

  
	
   

  	
  5.05

  	
  Financial Statements; No Material
  Adverse Effect.

  
	
   

  	
  5.06

  	
  Litigation.

  
	
   

  	
  5.07

  	
  No Default.

  
	
   

  	
  5.08

  	
  Ownership of Property;
  Liens.

  
	
   

  	
  5.09

  	
  Collateral Documents.

  
	
   

  	
  5.10

  	
  Environmental and
  Zoning Compliance.

  
	
   

  	
  5.11

  	
  Insurance.

  
	
   

  	
  5.12

  	
  Taxes.

  
	
   

  	
  5.13

  	
  ERISA Compliance.

  
	
   

  	
  5.14

  	
  Subsidiaries.

  
	
   

  	
  5.15

  	
  Margin Regulations; Investment
  Company Act; Public Utility Holding Company Act.

  
	
   

  	
  5.16

  	
  Solvency.

  
	
   

  	
  5.17

  	
  Disclosure.

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.
  AFFIRMATIVE COVENANTS

  
	
   

  	
  6.01

  	
  Financial
  Statements and Timber Reports.

  
	
   

  	
  6.02

  	
  Certificates; Other
  Information.

  
	
   

  	
  6.03

  	
  Notices.

  
	
   

  	
  6.04

  	
  Payment of Obligations.

  
	
   

  	
  6.05

  	
  Preservation of
  Existence and Rights.

  
	
   

  	
  6.06

  	
  Maintenance of Properties.

  
	
   

  	
  6.07

  	
  Maintenance of Insurance.

  
	
   

  	
  6.08

  	
  Compliance with Laws.

  
	
   

  	
  6.09

  	
  Books and Records.

  
	
   

  	
  6.10

  	
  Inspection Rights.

  
	
   

  	
  6.11

  	
  Compliance with ERISA.

  
	
   

  	
  6.12

  	
  Use of Proceeds.

  
	
   

  	
  6.13

  	
  Guaranties;
  Stock Pledges; Collateral Documents.

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII. NEGATIVE
  COVENANTS

  
	
   

  	
  7.01

  	
  Liens.

  
	
   

  	
  7.02

  	
  Investments.

  
	
   

  	
  7.03

  	
  Indebtedness.

  
	
   

  	
  7.04

  	
  Fundamental Changes.

  
	
   

  	
  7.05

  	
  Dispositions.

  
	
   

  	
  7.06

  	
  Lease Obligations.

  
	
   

  	
  7.07

  	
  Restricted Payments.

  
	
   

  	
  7.08

  	
  ERISA.

  
	
   

  	
  7.09

  	
  Change in Nature of
  Business.

  
	
   

  	
  7.10

  	
  Transactions with
  Affiliates.

  
	
   

  	
  7.11

  	
  Sale and Leaseback
  Transactions.

  
	
   

  	
  7.12

  	
  Burdensome Agreements.

  
	
   

  	
  7.13

  	
  Use
  of Proceeds.

  
	
   

  	
  7.14

  	
  Indentures;
  Payments on Indebtedness.

  
	
   

  	
  7.15

  	
  Mineral Rights.

  
	
   

  	
  7.16

  	
  Financial Covenants.

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII. EVENTS OF DEFAULT AND REMEDIES

  

 

ii

 

	
   

  	
  8.01

  	
  Events of Default.

  
	
   

  	
  8.02

  	
  Remedies Upon Event of
  Default.

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX.
  ADMINISTRATIVE AGENT

  
	
   

  	
  9.01

  	
  Appointment
  and Authorization of Administrative Agent.

  
	
   

  	
  9.02

  	
  Delegation of Duties.

  
	
   

  	
  9.03

  	
  Liability of
  Administrative Agent.

  
	
   

  	
  9.04

  	
  Reliance by
  Administrative Agent.

  
	
   

  	
  9.05

  	
  Notice of Default.

  
	
   

  	
  9.06

  	
  Credit
  Decision; Disclosure of Information by Administrative Agent.

  
	
   

  	
  9.07

  	
  Indemnification
  of Administrative Agent.

  
	
   

  	
  9.08

  	
  Administrative
  Agent in its Individual Capacity.

  
	
   

  	
  9.09

  	
  Successor
  Administrative Agent.

  
	
   

  	
  9.10

  	
  Other Agents; Lead
  Managers.

  
	
   

  	
  9.11

  	
  Collateral Matters.

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X. MISCELLANEOUS

  
	
   

  	
  10.01

  	
  Amendments; Consents;
  Releases.

  
	
   

  	
  10.02

  	
  Notices
  and Other Communications; Facsimile Copies.

  
	
   

  	
  10.03

  	
  No Waiver; Cumulative
  Remedies.

  
	
   

  	
  10.04

  	
  Attorney Costs, Expenses and Taxes.

  
	
   

  	
  10.05

  	
  Indemnification by the
  Borrower.

  
	
   

  	
  10.06

  	
  Payments Set Aside.

  
	
   

  	
  10.07

  	
  Successors and Assigns.

  
	
   

  	
  10.08

  	
  Confidentiality.

  
	
   

  	
  10.09

  	
  Set-off.

  
	
   

  	
  10.10

  	
  Interest Rate Limitation.

  
	
   

  	
  10.11

  	
  Counterparts.

  
	
   

  	
  10.12

  	
  Integration.

  
	
   

  	
  10.13

  	
  Survival of
  Representations and Warranties.

  
	
   

  	
  10.14

  	
  Severability.

  
	
   

  	
  10.15

  	
  Foreign Lenders.

  
	
   

  	
  10.16

  	
  Removal and
  Replacement of Lenders.

  
	
   

  	
  10.17

  	
  Governing Law.

  
	
   

  	
  10.18

  	
  Waiver of Right to
  Trial by Jury.

  
	
   

  	
  10.19

  	
  Time of the Essence.

  

 

iii

 

	
  SCHEDULES

  
	
   

  	
  1.01

  	
  Existing Hedging Obligations

  
	
   

  	
  2.01

  	
  Commitments
  and Pro Rata Shares

  
	
   

  	
  2.03(l)

  	
  Existing Letters of Credit

  
	
   

  	
  5.06

  	
  Litigation

  
	
   

  	
  5.09(a)

  	
  UCC Filing Jurisdictions

  
	
   

  	
  5.09(b)

  	
  Deed of Trust
  Recording Counties in Texas

  
	
   

  	
  5.13

  	
  ERISA Compliance

  
	
   

  	
  5.14

  	
  Subsidiaries
  and Other Equity Investments

  
	
   

  	
  6.13(a)

  	
  Subsidiaries
  Not Required to Execute Guarantees

  
	
   

  	
  7.01

  	
  Existing Liens

  
	
   

  	
  7.02

  	
  Existing Investments

  
	
   

  	
  7.03

  	
  Existing Indebtedness

  
	
   

  	
  10.02

  	
  Eurodollar and
  Domestic Lending Offices, Addresses for Notices

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
   

  	
   

  	
  Form of

  
	
   

  	
   

  	
   

  
	
   

  	
  A

  	
  Loan Notice

  
	
   

  	
   

  	
   

  
	
   

  	
  B

  	
  Guaranty

  
	
   

  	
   

  	
   

  
	
   

  	
  C

  	
  Compliance Certificate

  
	
   

  	
   

  	
   

  
	
   

  	
  D

  	
  Assignment
  and Assumption Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  E-1

  	
  Opinion of Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  E-2

  	
  Opinion of Nova
  Scotia Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  E-3

  	
  Opinion of Texas
  Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  F

  	
  Deed of Trust

  
	
   

  	
   

  	
   

  
	
   

  	
  G

  	
  Intercreditor Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  H

  	
  Pledge Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
  I

  	
  Security Agreement

  

 

iv

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00034-of-00352.parquet"}]]