Document:

EX-10.2

 Exhibit 10.2 

$783,000,000 
 CREDIT
AGREEMENT
 AND GUARANTEE 

by and among 
 PLUM
CREEK VENTURES I, LLC,
 as Borrower 

PLUM CREEK TIMBER COMPANY, INC.

as Guarantor 
 and

 SOUTHERN DIVERSIFIED TIMBER, LLC

as Lender 
 Dated as of
October 1, 2008 
  

			
	 	  	 

  

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS	  	 	1	  
	 1.01
	 	Defined Terms	  	 	1	  
	 1.02
	 	Other Interpretive Provisions	  	 	4	  
		
	 ARTICLE II. TERMS OF THE LOANS
	  	 	5	  
	 2.01
	 	Loans	  	 	5	  
	 2.02
	 	Repayment of the Loan	  	 	5	  
	 2.03
	 	Interest.	  	 	5	  
	 2.04
	 	Computation of Interest	  	 	5	  
	 2.05
	 	Payments Generally	  	 	5	  
		
	 ARTICLE III. CONDITIONS PRECEDENT
	  	 	6	  
		
	 ARTICLE IV. REPRESENTATIONS AND WARRANTIES
	  	 	7	  
	 4.01
	 	Existence, Qualification and Power; Compliance with Laws.	  	 	7	  
	 4.02
	 	Authorization; No Contravention	  	 	8	  
	 4.03
	 	Governmental Authorization; Other Consents	  	 	8	  
	 4.04
	 	Binding Effect	  	 	8	  
	 4.05
	 	Litigation	  	 	8	  
	 4.06
	 	No Default	  	 	8	  
	 4.07
	 	ERISA	  	 	8	  
	 4.08
	 	Use of Proceeds	  	 	8	  
	 4.09
	 	Indebtedness	  	 	8	  
	 4.10
	 	Ownership of Property; Liens	  	 	8	  
	 4.11
	 	Taxes	  	 	9	  
	 4.12
	 	No Business Conducted	  	 	9	  
	 4.13
	 	Subsidiaries; Equity Interests	  	 	9	  
	 4.14
	 	Guarantorship Interest	  	 	9	  
		
	 ARTICLE V. AFFIRMATIVE COVENANTS
	  	 	9	  
	 5.01
	 	Notices	  	 	9	  
	 5.02
	 	Preservation of Existence	  	 	9	  
	 5.03
	 	Payment of the Loan and other Obligations	  	 	9	  
	 5.04
	 	Compliance with Laws	  	 	10	  
	 5.05
	 	Books and Records	  	 	10	  
	 5.06
	 	Inspection Rights	  	 	10	  
	 5.07
	 	Use of Proceeds	  	 	10	  
	 5.08
	 	Reserve Account	  	 	10	  
	 5.09
	 	Financial Statements	  	 	10	  
		
	 ARTICLE VI. NEGATIVE COVENANTS
	  	 	11	  
	 6.01
	 	Incurrence of Indebtedness	  	 	11	  
	 6.02
	 	Liens	  	 	11	  
	 6.03
	 	Fundamental Changes	  	 	11	  
	 6.04
	 	Dispositions of Preferred Partnership Interests	  	 	12	  

  

			
	 	  	 

  

							
	 6.05
	  	Acquisitions	  	 	12	  
	 6.06
	  	Contracts	  	 	12	  
	 6.07
	  	Use of Proceeds	  	 	12	  
	 6.08
	  	ERISA	  	 	12	  
	 6.09
	  	Dividends	  	 	12	  
		
	 ARTICLE VII. EVENTS OF DEFAULT AND REMEDIES
	  	 	12	  
	 7.01
	  	Events of Default	  	 	12	  
	 7.02
	  	Remedies Upon Event of Default	  	 	14	  
	 7.03
	  	Application of Funds	  	 	14	  
	 7.04
	  	Nonrecourse Obligation of the Borrower	  	 	14	  
		
	 ARTICLE VIII. GUARANTEE
	  	 	15	  
	 8.01
	  	The Guarantee	  	 	15	  
	 8.02
	  	Obligations Unconditional	  	 	15	  
	 8.03
	  	Reinstatement	  	 	16	  
	 8.04
	  	Subrogation; Subordination	  	 	16	  
	 8.05
	  	Representations and Warranties	  	 	16	  
	 8.06
	  	Remedies	  	 	17	  
	 8.07
	  	Instrument for the Payment of Money	  	 	17	  
	 8.08
	  	Continuing Guarantee	  	 	18	  
	 8.09
	  	General Limitation on Guarantee Obligations	  	 	18	  
		
	 ARTICLE IX. MISCELLANEOUS
	  	 	18	  
	 9.01
	  	Amendments, Etc.	  	 	18	  
	 9.02
	  	Notices; Effectiveness; Electronic Communication.	  	 	18	  
	 9.03
	  	No Waiver; Cumulative Remedies	  	 	18	  
	 9.04
	  	Successors and Assigns	  	 	19	  
	 9.05
	  	Treatment of Certain Information; Confidentiality	  	 	19	  
	 9.06
	  	Counterparts; Integration; Effectiveness	  	 	20	  
	 9.07
	  	Severability	  	 	20	  
	 9.08
	  	Governing Law; Jurisdiction; Etc.	  	 	20	  
	 9.09
	  	Waiver of Jury Trial	  	 	21	  
		
	EXHIBITS	  			
		
	Exhibit A             Form of Note	  			

  

  

			
	 	  	 

  

 CREDIT AGREEMENT AND GUARANTEE 

This CREDIT AGREEMENT AND GUARANTEE (this “Agreement”) is entered into as of October 1, 2008, by and among PLUM CREEK
VENTURES I, LLC, a Delaware limited liability company (the “Borrower”), PLUM CREEK TIMBER COMPANY, INC., a Delaware corporation (the “Guarantor”) and Southern Diversified Timber, LLC (the “Lender”). 

The Borrower has requested that the Lender provide a loan, provided that the Borrower’s liability in respect thereof is limited to its
interests in certain collateral pledged to the Lender pursuant to the Pledge Agreement (as defined below), and the Lender is willing to do so on the terms and conditions set forth herein. 

The Lender has requested that the Guarantor provide a guarantee of Borrower’s obligations under this Agreement and Guarantor is 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: 

“Affiliate Credit Agreement” shall mean the Credit Agreement dated as of June 29, 2006, among Plum Creek Timberlands,
L.P., each lender from time to time party thereto and Bank of America, N.A., as administrative agent, as amended, amended and restated, extended, supplemented or otherwise modified in writing from time to time, and any revolving credit facility that
replaces or refunds such Credit Agreement. 
 “Agreement” means this Credit Agreement and Guarantee. 

“Bankruptcy Code” means the
Federal Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et seq.). 

“Borrower” has the meaning specified in the introductory paragraph hereto. 

“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 of New York. 
 “Closing Date” means the first date all
the conditions precedent in Article III are satisfied or waived. 
 “Debtor Relief Laws” means the Bankruptcy
Code, 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 or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors generally. 

  

			
	 	  	 

  

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

“Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition
(including any sale and leaseback transaction) of any property by any 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.

 “ERISA” means the Employee Retirement Income Security Act of 1974. 

“Event of Default” has the meaning specified in Section 7.01. 

“GAAP” means generally accepted accounting principles in the United States 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 in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 

“Governmental Authority” means the government of the United States or any other nation, or of any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining
to government. 
 “Guaranteed Obligations” has the meaning specified in Section 8.01. 

“Guarantee” means the guarantee issued pursuant to Article VIII by the Guarantor. 

“Guarantor” means Plum Creek Timber Company, Inc., a Delaware corporation, in its capacity as guarantor of the Loan,
and/or its capacity as the sole member of the Borrower, as the context requires. 
 “Indebtedness” means, as to any
Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP: 

(a) all obligations for borrowed money and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar
instruments; 
 (b) all direct or contingent obligations arising under letters of credit (including standby and commercial),
bankers’ acceptances, bank guaranties, surety bonds and similar instruments; 
 (c) all obligations to pay the deferred purchase
price of property or services (other than trade accounts payable in the ordinary course of business); 

  
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 (d) all capital leases; and 

(e) all guarantees in respect of any of the foregoing. 

“Information” has the meaning specified in Section 9.05. 

“Interest Payment Date” means each November 15, February 15, May 15 or August 15, as applicable, following the last
date interest was paid, or, in the case of the first Interest Payment Date, following the Closing Date; provided that if any Interest Payment Date shall occur on a day other than a Business Day then such Interest Payment Date shall be deemed
to occur on the next following Business Day; and provided further that the Interest Payment Date scheduled for February 17, 2009 shall instead occur on March 10, 2009. 

“Interest Rate” means a rate of interest equal to 7.375% per annum. 

“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. 

“Lender” has the meaning specified in the introductory paragraph hereto. 

“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 in the nature of a security interest of any kind or nature whatsoever but not including the interest of a lessor under an operating lease. 

“Loan” has the meaning specified in Section 2.01. 

“Loan Documents” means this Agreement, the Note, the Pledge Agreement and all other documents delivered to the Lender
in connection herewith or therewith. 
 “Maturity Date” means October 1, 2018, or such later date as may be extended
by the Borrower pursuant to Section 2.02; provided, however, that if such date is not a Business Day, the Maturity Date shall be the preceding Business Day. 

“Note” means the promissory note made by the Borrower in favor of the Lender evidencing the Loan, substantially in the
form of Exhibit A. 
 “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity. 
 “Plan” means any
“employee benefit plan” (as such term is defined in Section 3(3) of ERISA). 

  
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 “Pledge Agreement” means the Pledge Agreement entered into by Borrower
and Lender as of the date hereof. 
 “Pledged Interest” has the meaning specified in the Pledge Agreement. 

“Preferred Partnership Interests” means the preferred partnership interests in Plum Creek Timberlands, L.P., a Delaware
limited partnership, held by Borrower and included in the collateral subject to the Pledge Agreement. 
 “Reserve
Account” has the meaning specified in Section 5.08. 
 “Responsible Officer” means, with respect
to the Borrower or the Guarantor, the chief executive officer, the president or any vice president, or any other officer thereof having substantially the same authority and responsibility. 

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: 
 (a) The definitions of terms herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be
deemed to be followed by the phrase “without limitation.” Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document (including any organization document) shall be
construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified, (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns,
(iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and
not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such
references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to
such law or regulation as amended, modified or supplemented from time to time. 
 (b) Section headings herein and in 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. 

  
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 ARTICLE II.

TERMS OF THE LOANS 

2.01 Loans. Subject to the terms and conditions set forth herein, on the Closing Date, the Lender agrees to make a loan (the
“Loan”) to the Borrower in a single drawdown in an amount equal to $783,000,000. The Loan shall be evidenced by the Note. 

2.02 Repayment of the Loan. The Borrower shall repay to the Lender on the Maturity Date the aggregate principal amount of the Loan
outstanding on such date, together with accrued interest; provided that, so long as no Default or Event of Default has occurred and is continuing, the Borrower shall be permitted to extend the initial Maturity Date for a period of two (2)
years by providing written notice of such election to extend the Maturity Date to the Lender at any time within one year prior to the initial Maturity Date. The Borrower shall not be entitled to repay, and Lender shall not be required to accept any
repayment of, the principal amount of the Loan prior to the Maturity Date. 
 2.03 Interest. 

(a) Subject to clause (b) below, the Loan shall bear interest on the outstanding principal amount thereof at a rate per annum equal to the
Interest Rate. Interest on the Loan shall be due and payable in arrears on each Interest Payment Date 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. 
 (b) If any amount payable by the
Borrower under any Loan Document is not paid when due (without regard to any applicable grace periods) (a “Defaulted Payment”), whether at stated maturity, by acceleration or otherwise, then the outstanding principal amount of the Loan
shall thereafter, until such Defaulted Payment is paid in full, bear interest at an interest rate equal to the Interest Rate plus two percent (2%) to the fullest extent permitted by applicable Laws. 

2.04 Computation of Interest All computations of interest for the Loan shall be made on the basis of a year of 360 days consisting of
twelve 30 day months. Interest shall accrue on the Loan for the day on which it is made, and shall not accrue on the Loan, or any portion thereof, for the day on which the Loan or such portion is paid. 

2.05 Payments Generally. 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 Lender, by wire transfer to the bank account specified by Lender, in immediately available funds not later than
2:00 p.m. Seattle time on the date specified herein. All payments received by the Lender after 2:00 p.m. Seattle time shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. 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 not be reflected in computing interest or fees, as the case may be. 

  
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 ARTICLE III. 

CONDITIONS PRECEDENT 

(a) The obligation of the Lender to make the Loan hereunder on the Closing Date is subject to the Lender’s receipt of the following,
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 Lender: 

(i) Loan Documents

(A) Agreement. Executed counterparts of this Agreement;

(B) Note. The Note executed by the Borrower in favor of the Lender;

(ii) Resolutions; Incumbency. 

(A) Resolutions. Copies of the written consent of the Guarantor, approving and authorizing the execution, delivery and
performance by the Borrower of this Agreement and the other Loan Documents to which the Borrower is a party to be delivered hereunder, and evidence of the authority of the Guarantor to enter into, deliver and perform the Guarantee;

(B) Incumbency. A certificate of the Secretary or Assistant Secretary of the Guarantor certifying the names and true
signatures of the duly authorized officers of the Guarantor, in its individual capacity and as the sole member of the Borrower, authorized to execute, deliver and perform, as applicable, this Agreement and the other Loan Documents;

(iii) Organizational Documents and Good Standing. Each of the following documents:

(A) The certificate of formation of the Borrower and the certificate of incorporation of the Guarantor, certified by the
Secretary of State or similar, applicable Governmental Authority of the state of formation or incorporation, as the case may be, of such Persons, and by the Secretary or Assistant Secretary of the Guarantor, and a certificate of the Secretary or
Assistant Secretary of the Guarantor attaching copies of the organization documents of each of the Borrower and the Guarantor and certifying that such organization documents are true, correct, and complete as of the Closing Date; and

(B) A good standing certificate for the Borrower and the Guarantor from the Secretary of State (or similar, applicable
Governmental Authority) of its state of incorporation or formation, as the case may be; 
 (iv) Legal Opinions. A
favorable opinion of José Quintana, Assistant General Counsel of the Guarantor, acting as counsel to the 

Borrower, regarding the matters set forth in Sections 4.01(a)(i), 4.01(a)(ii), 4.01(b), 4.02, 4.03,
4.05 and 4.14; 

  
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 (v) Certificates. A certificate of a Responsible Officer of the
Borrower and the Guarantor certifying that: 
 (A) The representations and warranties of the Borrower and the Guarantor
contained in Article IV and Article VIII, respectively, or any other Loan Document, are true and correct on and as of the Closing Date, except to the extent that such representations and warranties specifically refer to an earlier
date, in which case they shall be true and correct as of such earlier date;
 (B) No Default exists, or would result from
the borrowing of the Loan or from the application of the proceeds thereof;
 (vi) Pledge Agreement. An executed
counterpart of the Pledge Agreement and evidence that all financing statements contemplated thereunder shall have been delivered for filing in the applicable jurisdiction(s). 

(vii) Partnership Agreement. A true and correct copy of the partnership agreement of Plum Creek Timberlands, L.P.,
which shall include terms reasonably satisfactory to the Lender regarding Lender’s eligibility to be a limited partner of Plum Creek Timberlands, L.P. 

(viii) Other Documents and Materials. Such other assurances, certificates, documents, approvals, consents, materials or
opinions as the Lender reasonably may require. 
 ARTICLE IV. 

REPRESENTATIONS AND WARRANTIES 

The Borrower represents and warrants to the Lender that: 

4.01 Existence, Qualification and Power; Compliance with Laws. 

(a) The Borrower: 

(i) is a limited liability company duly formed, validly existing and in good standing under the Laws of Delaware; 

(ii) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership of
properties or the conduct of its business requires such qualification or license; and
 (iii) is and will engage solely in
the business of owning the Preferred Partnership Interests. 
 (b) The Borrower has full power and authority and the legal right to own the
Preferred Partnership Interests, to perform this Agreement and any other Loan Document and to take all actions necessary to complete the transactions contemplated by this Agreement and any such other Loan Document. The Borrower has taken all
necessary action to authorize the transactions contemplated hereby on the terms and conditions of this Agreement and any other Loan Document, and to authorize the execution, delivery and performance of this Agreement and any other Loan Document.

  
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 4.02 Authorization; No Contravention. The execution, delivery, and performance of
this Agreement and the other Loan Documents will not violate any Law applicable to, or any contractual obligation of, the Borrower. The execution, delivery, and performance of this Agreement and the other Loan Documents will not result in, or
require the creation or imposition of any Lien on any of the properties or revenues of the Borrower pursuant to any Law or contractual obligation, except for the Liens created or permitted by the Pledge Agreement. 

4.03 Governmental Authorization; Other Consents. No consents or approvals are required to be obtained by the Borrower from any
Governmental Authority or other Person in connection with the execution, delivery and performance of this Agreement and the other Loan Documents or the taking of any action by the Borrower contemplated hereby or thereby. 

4.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed
and delivered by the Borrower. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with their respective
terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditor’s rights generally or by equitable principles relating to enforceability. 

4.05 Litigation. No litigation or proceeding of or before any arbitrator or Governmental Authority is pending, and no such litigation
or proceeding is, to the knowledge of the Borrower, threatened and no investigation by any Governmental Authority is, to the knowledge of the Borrower, pending or threatened, against or in a manner affecting the Borrower, or against or in a manner
affecting any of its properties, rights, revenues or assets. 
 4.06 No Default. No Default has occurred and is continuing or would
result from the consummation of the transactions contemplated by this Agreement or any other Loan Document or would result from the incurring of the Loan by the Borrower. 

4.07 ERISA. The Borrower does not maintain and is not a party to or obligated under any Plan. 

4.08 Use of Proceeds. The proceeds of the Loan are intended to be and shall be used solely for the purposes set forth in and permitted
by Section 5.07. 
 4.09 Indebtedness. The Borrower has no Indebtedness and is not subject to any contractual obligations
except with respect to its organizational documents, the Preferred Partnership Interests, this Agreement, the Pledge Agreement and the other Loan Documents. 

4.10 Ownership of Property; Liens. The Borrower owns no real or personal property except the Preferred Partnership Interests. The
Preferred Partnership Interests are not subject to any Liens other than the Lien created pursuant to the Pledge Agreement. 

  
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 4.11 Taxes. The Borrower has filed all Federal, state and other material tax returns
and reports required to be filed, and has paid all Federal, material state and other material taxes, assessments, fees and other governmental charges levied or imposed upon it or its Properties, income or assets otherwise due and payable. 

4.12 No Business Conducted. The Borrower has not conducted any business or acquired any property other than the acquisition and
ownership of the Preferred Partnership Interests and the rights related thereto. 
 4.13 Subsidiaries; Equity Interests. The
Borrower has no Subsidiaries and has no equity investments in any other corporation or entity other than Plum Creek Timberlands, L.P., which is a disregarded entity for federal income tax purposes. 

4.14 Guarantorship Interest. The sole member of the Borrower is the Guarantor, which as of the Closing Date will own 100% of the
limited liability company membership interests in the Borrower. 
 ARTICLE V. 

AFFIRMATIVE COVENANTS 

So long as the Loan shall remain unpaid or unsatisfied, the Borrower and the Guarantor shall: 

5.01 Notices. Promptly notify the Lender: 

(a) of the occurrence of any Default, or (ii) of the occurrence or existence of any event or circumstance that foreseeably will become a
Default; and 
 (b) of the commencement of, or any material development in, any material litigation or proceeding affecting the Borrower or
Guarantor; provided that the requirements of this subsection (b) shall be satisfied by the filing of any such information with the Securities and Exchange Commission in the Guarantor’s Form 10-Q or 10-K, as the case may be. 

5.02 Preservation of Existence Except as permitted by Section 6.03: 

(a) preserve and maintain in full force and effect its corporate or limited liability company existence (as the case may be) and good standing
under the Laws of its state or jurisdiction of formation, organization or incorporation; and 
 (b) preserve and maintain in full force and
effect all rights, privileges, qualifications, permits, licenses and franchises necessary in the normal conduct of its business. 
 5.03
Payment of the Loan and other Obligations. Pay and discharge as the same shall become due and payable, all obligations and liabilities in the case of the Borrower or all material obligations and liabilities in the case of the Guarantor,
including:
 (a) all tax liabilities, assessments and governmental charges or levies upon it or its assets, unless the same are being
contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by the Borrower; and 

  
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 (b) all Indebtedness (or, in the case of Guarantor, material Indebtedness), as and when due and
payable. 
 5.04 Compliance with Laws. Comply in all material respects with all Laws and all orders, writs, injunctions and decrees
applicable to it or to its business or property, except in such instances in which (a) any such Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted; or (b) the failure to comply
therewith could not reasonably be expected to have a material adverse effect on the ability of the Borrower or Guarantor to perform its obligations under the Loan Documents or on the value of the Lender’s interest in the Preferred Partnership
Interests under the Pledge Agreement. 
 5.05 Books and Records. Maintain proper books of record and account, in which full, true
and correct entries shall be made of all material financial transactions and matters involving the assets and business of the Borrower or the Guarantor (as the case may be). 

5.06 Inspection Rights. Permit representatives and independent contractors of the Lender to examine its corporate, financial and
operating records, and, subject to Section 9.05, make copies thereof or abstracts therefrom, 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 Lender (or any of its 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. 
 5.07 Use of Proceeds. In the case of Borrower, use the proceeds of the Loan to
make a capital contribution to Plum Creek Timberlands, L.P. in exchange for Preferred Partnership Interests. 
 5.08 Reserve
Account. In the case of Borrower, deposit all cash received by the Borrower and not applied towards payments on the Loan into an account (the “Reserve Account”) until such time as the amounts on deposit in the Reserve Account shall
equal the interest payments due on the Loan for the next two Interest Payment Dates; provided that if at any time amounts on deposit in the Reserve Account shall subsequently be less than the interest payments due on the next two Interest
Payment Dates, the obligation to deposit amounts to the Reserve Account shall resume until such required amounts in the Reserve Account are again established. Notwithstanding the foregoing in this Section 5.08, the Borrower shall not be
required to fund the Reserve Account other than out of and to the extent of excess cash flow received on the Preferred Partnership Interests. 

5.09 Financial Statements. Deliver to Lender: 

(a) In the case of the Borrower, as soon as available, but not later than 90 days after the end of each fiscal year, a copy of the unaudited
consolidated balance sheet of the Borrower as at the end of such year and the related consolidated statements of income or operations 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 and prepared in accordance with GAAP; 
  

  
 10 

 (b) In the case of the Guarantor: 

(i) as soon as available, but not later than 90 days after the end of each fiscal year, a copy of the audited consolidated
balance sheet of the Guarantor as at the end of such year and the related consolidated statements of income or operations 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 and prepared in accordance with GAAP, and accompanied by the opinion of a nationally-recognized independent public accounting firm, which report and opinion shall be prepared in accordance with generally accepted auditing
standards and applicable securities laws;
 (ii) as soon as available, but not later than 45 days after the end of each of
the first three fiscal quarters of each year, a copy of the unaudited consolidated balance sheet of the Guarantor and its consolidated subsidiaries as of the end of such quarter and the related consolidated statements of income and statement of cash
flows for the period commencing on the first day and ending on the last day of such quarter, and certified by the chief executive officer, chief financial officer, treasurer or controller of the Guarantor as being complete and correct and fairly
presenting, in accordance with GAAP (subject only to normal year-end audit adjustments and the absence of footnotes), the financial position and the results of operations of the Guarantor and its subsidiaries; 

provided that the requirements of this subsection (b) shall be satisfied by the filing of such information with the Securities and Exchange Commission in the
Guarantor’s Form 10-Q or 10-K, as the case may be. 
 ARTICLE VI. 

NEGATIVE COVENANTS 
 So
long as the Loan shall remain unpaid or unsatisfied, the Borrower shall not directly or indirectly: 
 6.01 Incurrence of
Indebtedness. Incur any Indebtedness other than the Loan. 
 6.02 Liens. Make, create, incur, assume or suffer to exist any Lien
upon or with respect to any part of its property, whether now owned or hereafter acquired, other than the following:
 (a) Liens for taxes,
fees, assessments or other governmental charges which are not delinquent or remain payable without penalty; and 
 (b) the Lien created
pursuant to the Pledge Agreement. 
 6.03 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another Person,
except that, so long as no Default exists or would result therefrom, the Borrower may merge or consolidate with the Guarantor; provided that the Guarantor assumes the obligations of Borrower under this Agreement and confirms that it holds the
Preferred Partnership Interests subject to the security interest granted pursuant to the Pledge Agreement. 

  
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 6.04 Dispositions of Preferred Partnership Interests. Make any Disposition of the
Preferred Partnership Interests or enter into any agreement to make any Disposition of the Preferred Partnership Interests, except in connection with a transaction permitted under Section 6.03. 

6.05 Acquisitions. Acquire any assets or property, other than additional Preferred Partnership Interests or any property or assets
received by the Borrower as a distribution on the Preferred Partnership Interests. 
 6.06 Contracts. Directly or indirectly enter
into any contracts or other agreements, with any Person, other than this Agreement, the acquisition of the Preferred Partnership Interests and as reasonably related to the ownership of the Preferred Partnership Interests, including the exercise of
any rights thereunder. 
 6.07 Use of Proceeds. Use the proceeds of the Loan, 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 of Governors of the Federal Reserve System of the United States) or to extend credit to others for the purpose of purchasing
or carrying margin stock or to refund indebtedness originally incurred for such purpose. 
 6.08 ERISA. Enter into or become a party
to any Plan. 
 6.09 Dividends. Declare or make, directly or indirectly, any dividend or distribution (whether in cash or other
property) with respect to any membership interest, purchase, redeem, retire, acquire, cancel or terminate any such membership interest (for cash or other property), or incur any obligation (contingent or otherwise) to do so; provided that the
Borrower may make cash distributions with respect to any membership interest so long as at the time of such distribution: (i) no Default or Event of Default shall have occurred and be continuing or would result therefrom and (ii) all amounts
required to be deposited in the Reserve Account pursuant to Section 5.08 shall have been funded in full. 
 ARTICLE VII. 

EVENTS OF DEFAULT AND REMEDIES 

7.01 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 principal of the Loan, or (ii) interest on
the Loan on two consecutive Interest Payment Dates. 
 (b) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of the Borrower or the Guarantor herein or in any other Loan Document or therewith shall be incorrect or misleading in any material respect when made or deemed made; or 

  
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 (c) Specific Covenants. The Borrower fails to perform or observe any term, covenant
or agreement contained in any of Section 5.02 or Article VI; or 
 (d) Other Defaults. The Borrower or the Guarantor
fails to perform or observe any other covenant or agreement (not specified in subsection (a) or (c)) contained in any Loan Document on its part to be performed or observed and such failure continues for 20 days after the earlier of (i) the date upon
which a Responsible Officer knew or should have known of such failure or (ii) the date upon which written notice thereof is given to the Borrower by the Lender; or 

(e) Insolvency Proceedings, Etc. The Borrower or the Guarantor institutes or consents to the institution of any proceeding under any
Debtor Relief Law, or makes an assignment for the benefit of creditors; or in connection with any insolvency proceeding 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 
 (f) Inability to Pay
Debts; Attachment. (i) The Borrower or the Guarantor 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, vacated or fully bonded within 30 days after its issue or levy; or 

(g) Impairment of Certain Documents. Any of the Loan Documents shall terminate, cease to be in full force and effect, or cease in
whole or in part to be the legally valid, binding, and enforceable obligation of the Borrower, or any Person acting for or on behalf of the Borrower contests in any manner the validity, binding effect or enforceability of any of the Loan Documents,
or the Borrower denies that it has any or further liability or obligation under any Loan Document, or the Borrower purports to revoke, terminate or rescind any Loan Document; or 

(h) Cross Acceleration. An “Event of Default” under and as defined in the Affiliate Credit Agreement shall have
occurred and be continuing and the holders of the Indebtedness thereunder shall have declared such Indebtedness to be immediately due and payable. 

(i) Cross Default and Foreclosure. An “Event of Default” under and as defined in any document governing indebtedness
secured by preferred partnership interests in Plum Creek Timberlands, L.P., a Delaware limited partnership (the “Partnership”), of a series other than that of the Preferred Partnership Interests, shall have occurred and be
continuing and the holder of such indebtedness shall have commenced foreclosure proceedings with respect to such other preferred partnership interests in Plum Creek Timberlands, L.P. in accordance with the terms of the documents governing such other
indebtedness. 

  
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 (j) Material Breach of Other Preferred Interests. In the case of any preferred
limited partnership interests not described in and subject to the terms of Section 7.01(i), a material breach by the Partnership of its obligations with respect to such preferred limited partnership interest as specified in the documents governing
the terms thereof. 
 (k) Amendment of Partnership Agreement. The partnership agreement of Plum Creek Timberlands, L.P. shall have
been amended in violation of Section 3.10 of the Pledge Agreement or shall have been amended such that the representation set forth in Section 3.10 of the Pledge Agreement is no longer true in all material respects. 

7.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the Lender may take any or all of the
following actions:
 (a) declare the unpaid principal amount of the Loan, all interest accrued and unpaid thereon, and all other amounts
owing or payable hereunder or under any 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; and 

(b) exercise all rights and remedies available to it under the Loan Documents; 

provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the
Bankruptcy Code, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, without further act of the Lender; and provided; further; that
notwithstanding the foregoing, other than in the case of an Event of Default under Section 7.01(a)(ii), the Lender shall not complete the foreclosure of any property pledged under the Pledge Agreement prior to the date that is six months from the
date the Lender first gave notice of such Event of Default to Borrower. 
 7.03 Application of Funds. After the exercise of remedies
provided for in Section 7.02 (or after the Loan has automatically become immediately due and payable as set forth in the proviso to Section 7.02), any amounts received on account of the Loan shall be applied by the Lender in the
following order:
 First, to payment of that portion of the Loan constituting unpaid principal of the Loan; 

Second, to payment of that portion of the Loan constituting accrued and unpaid interest on the Loan; and 

Last, the balance, if any, after all of the amounts under First and Second have been indefeasibly paid in full, to the
Borrower or as otherwise required by Law. 
 7.04 Nonrecourse Obligation of the Borrower. Notwithstanding anything in this Agreement
or any other Loan Document to the contrary and except as otherwise provided in this Section 7.04, the liability of the Borrower under the Loan Documents is limited to the Pledged Interest (as defined in the Pledge Agreement), provided that
the Lender shall have full recourse against the Borrower and the Borrower shall be liable for the full payment of (a) the amount of any income, proceeds or profits of the Pledged Interest and any funds constituting a part of the

  
 -14- 

			
	 	  	 

  

 
Pledged Interest that are, at the time of receipt, required for the payment of amounts that are then due and payable under the Loan Documents and that are not so used, (b) the amount of any loss
suffered by the Lender as a result of misrepresentations or fraud by or on behalf of the Borrower in connection with this Agreement or the other Loan Documents, (c) the amount of any loss suffered by the Lender as a result of any transfer of the
Pledged Interest or as a result of any attempt by or on behalf of the Borrower to hinder, delay or defeat the Lender’s realization on the Pledge Agreement following an event of default thereunder (including without limitation the filing of any
bankruptcy or insolvency proceeding or action to enjoin foreclosure), (d) interest on the amounts described in the foregoing clauses (a) through (c) at the Interest Rate and (e) attorneys’ fees and other costs incurred by the Lender in
collecting any of the amounts described in the foregoing clauses (a) through (d). 
 ARTICLE VIII.

GUARANTEE 
 8.01 The
Guarantee. The Guarantor hereby guarantees, as a primary obligor and not as a surety to the Lender and its respective successors and assigns, the prompt payment in full when due (whether at stated maturity, by required prepayment, declaration,
demand, by acceleration or otherwise) of the principal of and interest (including any interest, fees, costs or charges that would accrue but for the provisions of the Bankruptcy Code after any bankruptcy or insolvency petition under the Bankruptcy
Code) on the Loan, in each case remaining unpaid and owing following the exercise of all rights and remedies of the Lender against the Borrower under this Agreement and the Pledge Agreement, including completion of realization or foreclosure
proceedings against the Pledged Interest (such obligations being herein collectively called the “Guaranteed Obligations”). The Guarantor hereby agrees that if the Borrower shall fail to pay in full when due any of the Guaranteed
Obligations, the Guarantor will promptly pay the same in cash, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full
when due in accordance with the terms of such extension or renewal. 
 8.02 Obligations Unconditional. The obligations of the
Guarantor under Section 8.01, to the fullest extent permitted by applicable Law, are absolute, irrevocable and unconditional, irrespective of the value, genuineness, validity, regularity or enforceability of the Guaranteed Obligations of the
Borrower under this Agreement, the Note or any other agreement or instrument referred to herein or therein, or any substitution, release or exchange of any other guarantee of or security for any of the Guaranteed Obligations, and, irrespective of
any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor (except for payment in full). Without limiting the generality of the foregoing, it is agreed that the occurrence of
any one or more of the following shall not alter or impair the liability of the Guarantor hereunder which shall remain absolute, irrevocable and unconditional under any and all circumstances as described above: 

 

	 	i.	at any time or from time to time, without notice to the Guarantor, the time for any performance of or compliance with any of the Guaranteed Obligations shall be extended, or such performance or compliance shall be
waived; 

  
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	 	ii.	except as provided in Section 8.01 or Section 8.06, any of the acts mentioned in any of the provisions of this Agreement, the Note or the Pledge Agreement, or any other agreement or instrument referred to
herein or therein shall be done or omitted; 

  

	 	iii.	the maturity of any of the Guaranteed Obligations shall be accelerated, or any of the Guaranteed Obligations shall be amended in any respect, or any right under the Loan Documents or any other agreement or instrument
referred to herein or therein shall be amended or waived in any respect or any other guarantee of any of the Guaranteed Obligations or any security therefor shall be released or exchanged in whole or in part or otherwise dealt with; or

  

	 	iv.	any Lien or security interest granted to, or in favor of, the Lender as security for any of the Guaranteed Obligations shall fail to be perfected. 

The Guarantor hereby expressly waives diligence, presentment, demand of payment, protest and all notices whatsoever. The Guarantor waives any
and all notice of the creation, renewal, extension, waiver, termination or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by the Lender upon this Guarantee or acceptance of this Guarantee, and the Guaranteed
Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred in reliance upon this Guarantee, and all dealings between the Borrower and the Lender shall likewise be conclusively presumed to have been had or
consummated in reliance upon this Guarantee. This Guarantee shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Guarantor and the successors and assigns thereof, and shall inure to the
benefit of the Lender, and its successors and assigns. 
 8.03 Reinstatement. The obligations of the Guarantor under this Article
VIII shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of the Borrower in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by any holder of any of the
Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise. 
 8.04 Subrogation;
Subordination. The Guarantor hereby agrees that until the indefeasible payment and satisfaction in full in cash of all Guaranteed Obligations it shall waive any claim and shall not exercise any right or remedy, direct or indirect, arising by
reason of any performance by it of its guarantee in Section 8.01, whether by subrogation or otherwise, against the Borrower or any security for any of the Guaranteed Obligations 

8.05 Representations and Warranties. The Guarantor represents and warrants to the Lender that: 

(a) The Guarantor: 
 (i) is a
corporation duly incorporated, validly existing and in good standing under the Laws of Delaware; and 

  
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 (ii) 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. 
 (b) The Guarantor has full power and authority, to conduct its business as now conducted and as proposed to be conducted by it,
to perform its obligations under this Article VIII and to take all actions necessary to complete the transactions contemplated by this Article VIII. The Guarantor has taken all necessary action to authorize the transactions contemplated
hereby on the terms and conditions of this Agreement, and to authorize the execution, delivery and performance of this Agreement. 
 (c)
This Agreement has been duly executed and delivered by the Guarantor and constitutes the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor in accordance with its terms, except as enforcement thereof may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by limitation upon the availability of equitable remedies. 

(d) The execution, delivery, and performance of this Agreement will not violate any Law applicable to, or any contractual obligation of, the
Guarantor. The execution, delivery, and performance of this Agreement by the Guarantor will not result in, or require the creation or imposition of any Lien on any of the properties or revenues of the Guarantor pursuant to any applicable Laws or
contractual obligation. No approvals or consents of any trustee or any holder of any Indebtedness of the Guarantor are required in connection with the Guarantor’s execution, delivery, and performance of this Agreement, except such approvals or
consents as have been duly obtained and are in full force and effect. 
 (e) No consents or approvals are required to be obtained by the
Guarantor from any Governmental Authority or other Person in connection with the performance of the execution, delivery and performance of this Article VIII or the taking of any action by the Guarantor contemplated hereby or thereby. 

8.06 Remedies. Notwithstanding anything in this Article VIII or any other provision of the Loan Documents to the contrary, (i)
the Lender shall not be entitled to exercise any remedies hereunder unless and until the Lender has fully exhausted all remedies available against the Borrower and the Pledged Interest, including foreclosing its interest in or otherwise realizing
upon the Pledged Interest and (ii) in the event the Lender obtains a judgment against the Guarantor to enforce the payment obligations of the Guarantor hereunder, the Lender agrees that it shall only be entitled to satisfy such judgment against the
partnership interests in Plum Creek Timberlands, L.P. owned by the Guarantor at such time and the Lender shall not be entitled to enforce such judgment against any other assets of the Guarantor now owned or hereafter acquired. 

8.07 Instrument for the Payment of Money. The Guarantor hereby acknowledges that the guarantee in this Article VIII constitutes
an instrument for the payment of money, and consents and agrees that the Lender, at its sole option, in the event of a dispute by such Guarantor in the payment of any moneys due hereunder, shall have the right to bring a motion-action under New York
CPLR Section 3213. 

  
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 8.08 Continuing Guarantee. The guarantee in this Article VIII is a continuing
guarantee, and shall apply to all Guaranteed Obligations whenever arising. 
 8.09 General Limitation on Guarantee Obligations. In
any action or proceeding involving any Law, including applicable state, federal or foreign bankruptcy, insolvency, reorganization or other Law affecting the rights of creditors generally, if the obligations of the Guarantor under Section 8.01
would otherwise be held or determined to be void, voidable, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of the amount of its liability under Section 8.01, then, notwithstanding any other
provision to the contrary, the amount of such liability shall, without any further action by the Guarantor, the Lender or any other person, be automatically limited and reduced to the highest amount that is valid and enforceable and not subordinated
to the claims of other creditors as determined in such action or proceeding. 
 ARTICLE IX. 

MISCELLANEOUS 
 9.01
Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, and no consent to any departure by the Borrower therefrom, shall be effective unless in writing signed by the Lender, the Borrower and the
Guarantor and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

9.02 Notices; Effectiveness; Electronic Communication. 

(a) Notices Generally. All notices and other communications provided for herein shall be in writing and shall be delivered by hand or
overnight courier service, mailed by certified or registered mail or sent by telecopier at the address set forth on Schedule 9.02. 

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for
the recipient). 
 (b) Change of Address, Etc. Each of the Borrower, the Guarantor and the Lender may change its address or
telecopier number for notices and other communications hereunder by notice to the other parties hereto. 
 9.03 No Waiver; Cumulative
Remedies. No failure by the Lender 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 provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law. 

  
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 9.04 Successors and Assigns. 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. Notwithstanding the foregoing, neither party may assign its rights and obligations under this Agreement other than with the written consent
of the other party, except following an Event of Default (as defined herein) as provided in Section 9.7(b)(i) of the limited liability company agreement of the Lender. 

9.05 Treatment of Certain Information; Confidentiality. The Lender agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its affiliates and to its and its affiliates’ respective partners, directors, officers, employees, agents, advisors and representatives (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 purporting to have jurisdiction over it,
(c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or
proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) with the consent of the Borrower and the Guarantor or (g) to the extent such Information (x) becomes publicly available other
than as a result of a breach of this Section or (y) becomes available to the Lender or any of its respective affiliates on a nonconfidential basis from a source other than the Borrower or the Guarantor. 

Notwithstanding any other provision of this Agreement, to comply with Treasury Regulations Section 1.6011-4(b)(3)(i), each party (and
any employee, representative, or other agent of such party) may disclose to any and all persons, without limitation of any kind, the U.S. federal income tax treatment and tax structure of the transactions contemplated by this Agreement and the
Pledge Agreement. For purposes of the preceding sentence, tax treatment and tax structure shall not include (i) the name of, or any other identifying information regarding, the Borrower, the Lender, the Guarantor, the Preferred Partnership
Interests, or any investment or transaction entered into by the Borrower, and any information regarding the specific economic terms of the transactions contemplated by this Agreement and the Pledge Agreement, (ii) any performance information
relating to the Preferred Partnership Interests or the Borrower, or (iii) any performance or other information relating to the Lender or the Guarantor. In addition, either party may make such filings or disclosures as are required by state or
federal securities laws. 
 For purposes of this Section, “Information” means all information received from the
Borrower or the Guarantor relating to the Borrower or the Guarantor, other than any such information that is available to the Lender on a nonconfidential basis prior to such disclosure. 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 exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own
confidential information. 
 The Lender acknowledges that (a) the Information may include material non-public information concerning the
Borrower, as the case may be, (b) it has developed compliance procedures regarding the use of material non-public information and (c) it will handle such material non-public information in accordance with applicable Law, including Federal and state
securities Laws. 

  
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 9.06 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents constitute the
entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. 

9.07 Severability. If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or unenforceable, (a)
the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal,
invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 9.08 Governing Law; Jurisdiction; Etc.

(a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

(b) SUBMISSION TO JURISDICTION. THE BORROWER AND GUARANTOR EACH IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY,
TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY
THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN
RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE LENDER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR THE GUARANTOR OR THEIR PROPERTIES IN THE COURTS OF ANY JURISDICTION. 

(c) WAIVER OF VENUE. EACH OF THE BORROWER AND GUARANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR 

  
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HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS
SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT. 

(d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION
9.02. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW. 

9.09 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN 
 DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
 [Remainder of Page Intentionally Left Blank] 

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

			
	BORROWER:
	
	PLUM CREEK VENTURES I, LLC,
	a Delaware limited liability company
	
	By: PLUM CREEK TIMBER COMPANY, INC., 
	Its sole member
		
	By:	 	 /s/ Joan K. Fitzmaurice

	Name:	 	Joan K. Fitzmaurice
	Title:	 	Vice President, Corporate Communications,
	Audit and Information Technology
	
	LENDER:
	
	Southern Diversified Timber, LLC,
	a Delaware limited liability company
	
	By: TCG / Southern Diversified Manager, LLC 
	a Delaware limited liability company, its Manager
	
	By: The Campbell Group, LLC 
	a Delaware limited liability company,
	its Managing Member
		
	By:	 	 /s/ John Gilleland

	Name:	 	John Gilleland
	Title:	 	President
	
	GUARANTOR
	(as to Article VIII only):
	
	PLUM CREEK TIMBER COMPANY, INC.,
	a Delaware corporation
		
	By:	 	 /s/ Joan K. Fitzmaurice

	Name:	 	Joan K. Fitzmaurice
	Title:	 	Vice President, Corporate Communications,
	Audit and Information Technology

  
 -22- 

			
	 	  	 

  

 SCHEDULE 9.02 

LENDER’S OFFICE; 

CERTAIN ADDRESSES FOR NOTICES 

BORROWER AND GUARANTOR: 
 Plum Creek Timber Company,
Inc.
 999 Third Avenue, Suite 4300
 Seattle, WA 98104 

Attention: Laura Smith, Vice President and Treasurer
 Telephone:
(206) 467-3636
 Facsimile: (206) 467-3795 
 Electronic Mail:
laura.smith@plumcreek.com 
 Website Address: www.plumcreek.com 

Taxpayer Identification Number: 91-1920356 
 LENDER 

Southern Diversified Timber, LLC
 c/o TCG / Southern Diversified
Manager, LLC
 One S.W. Columbia, Suite 1700
 Portland, OR
97258
 Attn: John Gilleland and Stan Renecker 
 Tel.:
503-275-9675
 Fax: 503-275-9667 

  

			
	 	  	 

  

 EXHIBIT A 

FORM OF NOTE 

Borrower: Plum Creek Ventures I, LLC 

Date: [  ], 2008 

$783,000,000 
  

 
 FOR VALUE RECEIVED, the
undersigned (the “Borrower”) hereby promises to pay to Southern Diversified Timber, LLC or registered assigns (the “Lender “), the principal amount of $783,000,000 (the “Loan”) in accordance with
the terms of that certain Credit Agreement, among the Borrower, the Lender and Plum Creek Timber Company, Inc. dated as of [ ], 2008 (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). 
 The Borrower promises to pay
interest on the unpaid principal amount of the Loan from the date hereof until such principal amount is paid in full, at such interest rates and at such times as provided in the Agreement. All payments of principal and interest shall be made to the
Lender in immediately available funds by wire transfer to the account directed by the Lender. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the due date thereof until the
date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement. 
 This Note is
the Note referred to in the Agreement and is entitled to the benefits thereof. Upon the occurrence and continuation of one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Note shall become, or
may be declared to be, immediately due and payable as provided in the Agreement. 
 The Borrower, for itself, its successors and assigns,
hereby waives diligence, presentment, protest and demand and notice of protest, demand, dishonor and non-payment of this Note. 
 THE
LIABILITY OF THE BORROWER UNDER THIS NOTE AND THE OTHER LOAN DOCUMENTS IS NONRECOURSE TO THE BORROWER AND IS LIMITED TO THE BORROWER’S INTEREST IN THE PLEDGED INTEREST (AS DEFINED IN THE PLEDGE AGREEMENT), EXCEPT AS OTHERWISE PROVIDED IN
SECTION 7.04 OF THE AGREEMENT. 

  

			
	 	  	 

  

 THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK. 
  

			
	PLUM CREEK VENTURES I, LLC,
	a Delaware limited liability company
	
	By: PLUM CREEK TIMBER COMPANY, INC.,
	Its sole member
		
	By:	 	  

	Name:	 	
	Title:Exhibit 10.1

 

AMENDMENT NO. 1 TO

AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

 

THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT (this “Amendment”), dated as of February 18, 2016, is by and among MASTERCRAFT BOAT COMPANY, LLC, a Delaware limited liability company (the “MasterCraft”), MASTERCRAFT SERVICES, INC., a Tennessee corporation (“Services”), MCBC HYDRA BOATS, LLC, a Tennessee limited liability company (“Hydra”), MASTERCRAFT INTERNATIONAL SALES ADMINISTRATION, INC., a Delaware corporation (“Sales Administration”; and together with MasterCraft, Services and Hydra, each a “Borrower” and collectively the “Borrowers”), MCBC HOLDINGS, INC., a Delaware corporation and a Guarantor (“Holdings”), the Lenders (as defined in the Credit Agreement described below) party hereto and FIFTH THIRD BANK, an Ohio banking corporation, as Agent.  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement described below.

 

W I T N E S S E T H

 

WHEREAS, the Borrowers, Holdings, certain banks and financial institutions from time to time party thereto (the “Lenders”) and the Agent are parties to that certain Amended and Restated Credit and Guaranty Agreement, dated as of March 13, 2015 (the “Original Credit Agreement”, and as the same is amended by this Amendment and as the same may be further amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”);

 

WHEREAS, the Credit Parties desire to implement a share repurchase program and in connection therewith, have requested that the Required Lenders amend certain provisions of the Credit Agreement to permit the implementation of such program; and

 

WHEREAS, the Required Lenders are willing to make such amendments to the Credit Agreement, in accordance with and subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I
 AMENDMENT TO CREDIT AGREEMENT

 

1.1          Amendment to Section 6.15.  Section 6.15 of the Credit Agreement is hereby amended as follows:

 

(a)           By deleting the word “and” at the end of clause (e) of such Section;

 

 

(b)           By deleting the period at the end of clause (f) of such Section and replacing it with the phrase “; and”; and

 

(c)          By adding the following clause (g) to such Section:

 

“(g) any Credit Party may make Restricted Payments in an aggregate amount not to exceed $20,000,000 during the period commencing on February 17, 2016 and ending on the last day of the term of this Agreement in order to repurchase any class of Equity Interest of any Credit Party or any of its Subsidiaries pursuant to a share repurchase program or other share repurchase authorized by the Board of Directors of any of the Credit Parties, including the repurchase of Equity Interests from certain members of senior management of the Credit Party; provided that (i) no Default as a result of non-payment or Event of Default exists as of the date of such share repurchase, and (ii) the Credit Party delivers to Agent written notice of such repurchase, including the number of shares and aggregate purchase price for such shares, not later than within one week of such share repurchase.

 

ARTICLE II
 CONDITIONS TO EFFECTIVENESS

 

2.1          Closing Conditions.  This Amendment shall become effective as of February 18, 2016 (the “Amendment Effective Date”) upon the Agent receiving a copy of this Amendment, duly executed by each of the Credit Parties, the Agent, and the Required Lenders.

 

2.2          Amendment Fee. In consideration of the accommodations set forth in this Amendment, the Borrowers shall pay to Agent, for the ratable benefit of the Lenders, an amendment fee in the amount of $25,000, which fee shall be fully earned on the date of this Amendment and shall be non-refundable. The Borrowers hereby authorize Agent to charge such amendment fee to the account of the Borrowers as of the date of this Amendment.

 

ARTICLE III
 MISCELLANEOUS

 

3.1          Amended Terms.  On and after the Amendment Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

 

3.2          Representations and Warranties of Credit Parties.  Each of the Credit Parties represents and warrants as follows:

 

(a)           It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

 

2

 

(b)           This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(c)           No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment.

 

(d)           The representations and warranties set forth in Section 5 of the Credit Agreement are true and correct in all material respects (except those that are qualified by materiality or a Material Adverse Effect, which representations and warranties are true and correct in all respects) as of the date hereof (except for those which expressly relate to an earlier date).

 

(e)           After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default.

 

(f)            The Collateral Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Agent, for the benefit of the Agent and the Lenders, which security interests and Liens are perfected in accordance with the terms of the Collateral Documents and prior to all Liens other than Permitted Liens.

 

3.3          Reaffirmation of Obligations.  Each Credit Party hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective Obligations.

 

3.4          Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

 

3.5          Expenses.  The Borrower agrees to pay all reasonable costs and expenses of the Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of the Agent’s legal counsel.

 

3.6          Further Assurances.  The Credit Parties agree to promptly take such action, upon the request of the Agent, as is necessary to carry out the intent of this Amendment.

 

3.7          Entirety.  This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

 

3

 

3.8          Counterparts; Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an original will be delivered.

 

3.9          GOVERNING LAW.  THIS AMENDMENT, AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF ILLINOIS (INCLUDING, WITHOUT LIMITATION, 735 ILCS SECTION 105/5-1 ET SEQ., BUT OTHERWISE WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS) OF THE STATE OF ILLINOIS.

 

3.10        Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

3.11        Submission to Jurisdction; Waiver of Jury Trial.  The submission to jurisdiction and waiver of jury trial provisions set forth in Section 10.20 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

4

 

IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.

 

 

	
BORROWERS:
    	
MASTERCRAFT   BOAT COMPANY, LLC,   a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Timothy M. Oxley
    
	
 
    	
 
    	
Timothy   M. Oxley
    
	
 
    	
 
    	
Chief   Financial Officer, Treasurer & Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
MCBC   HYDRA BOATS, LLC, a   Tennessee limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Timothy M. Oxley
    
	
 
    	
 
    	
Timothy   M. Oxley
    
	
 
    	
 
    	
Chief   Financial Officer, Treasurer & Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
MASTERCRAFT   SERVICES, INC.,   a Tennessee corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Timothy M. Oxley
    
	
 
    	
 
    	
Timothy   M. Oxley
    
	
 
    	
 
    	
Chief   Financial Officer, Treasurer & Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
MASTERCRAFT   INTERNATIONAL SALES ADMINISTRATION, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Timothy M. Oxley
    
	
 
    	
 
    	
Timothy   M. Oxley
    
	
 
    	
 
    	
Chief   Financial Officer, Treasurer & Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
OTHER   CREDIT PARTIES:
    	
MCBC   HOLDINGS, INC.,   a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Timothy M. Oxley
    
	
 
    	
 
    	
Timothy   M. Oxley
    
	
 
    	
 
    	
Chief   Financial Officer, Treasurer & Secretary
    

 

 

	
AGENT   AND LENDER:
    	
FIFTH   THIRD BANK, an Ohio   banking corporation, as a Lender, as L/C Issuer, and as Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Carrie Weisman
    
	
 
    	
 
    	
Carrie   Weisman
    
	
 
    	
 
    	
Assistant   Vice President
    

 

 

	
LENDER:
    	
BANK   OF AMERICA, N.A.,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Marcus Smith
    
	
 
    	
 
    	
Marcus   Smith
    
	
 
    	
 
    	
Senior   Vice President

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