Document:

Exhibit 10.1

 

The security represented by this instrument was originally issued on February 22,
2008, and has not been registered under the Securities Act of 1933, as
amended.  The transfer of such security
is subject only to the conditions specified in Section 7 of this
Note.

 

PROMISSORY NOTE

 

	
  February 22, 2008

  	
   

  	
  $41,000,000

  

 

For value received, Aldabra 2 Acquisition Corp., a
Delaware corporation (to be renamed Boise Inc.) (“Parent”), and each
other Person (other than any Credit Party) that is, or that may hereafter
become, a domestic Subsidiary of Parent (collectively, such Subsidiaries, the “Subsidiary
Obligors”), hereby jointly and severally promise to pay to the order of
Boise Cascade, L.L.C., a Delaware limited liability company (“BC LLC”),
or its registered assigns or transferees (as applicable), the principal amount
of $41,000,000, together with interest thereon calculated from the Effective
Date in accordance with the provisions of this Note.  Parent and the Subsidiary Obligors are
collectively referred to herein as the “Payors” and, each individually
as a “Payor”.

 

This Note was issued pursuant to Section 1F
of that certain Purchase and Sale Agreement, dated as of September 7, 2007 (and as
may be further amended, modified and/or supplemented from time to time, the “Purchase
Agreement”), by and among BC LLC, Boise Paper Holdings, L.L.C., a
Delaware limited liability company,
Parent and the other entities party thereto, and this Note is one of the “Acceptable
Notes” referred to in the Purchase Agreement.  The term “Notes”, as used in this
Note, includes (x) each Acceptable Note issued from time to time pursuant
to Section 1F of the Purchase Agreement and (y) each Note
issued in replacement of and/or to any transferee of any Note (or any portion
thereof), if any; provided that, if any time, this Note is the only “Note”
issued and outstanding, then all reference herein to “Notes” shall be deemed to
refer to this Note.  Except as
defined in Section 9 hereof or unless otherwise indicated herein,
capitalized terms used in this Note have the same meanings set forth in the
Purchase Agreement.

 

1.             Payment of
Interest.

 

(a)           Generally.  Subject to the application of a higher
interest rate pursuant to  Section 5(b)(i) hereof,
with respect to each Interest Payment Period, interest shall accrue on a daily
basis  on the unpaid principal amount of
this Note outstanding from time to time at 15.75% per annum (computed on the
basis of a 360-day year).

 

(b)           Interest
Payment Dates.  On the last day of
each Interest Payment Period, the Payors shall pay to the holder of this Note
all accrued and unpaid interest on this Note, and in connection therewith,
deliver to the holder of this Note a written notice specifying the applicable
interest rate on this Note for such period. 
“Interest Payment Period” means (i) initially, the period
commencing on the Effective Date and ending on March 31, 2008 and (ii) thereafter,
each quarterly period ending on June 30, September 30, December 31
or March 31, as applicable (each such date, an “Interest Payment Date”).

 

(c)           Accumulated
Interest and Related Matters. 
Without limiting any rights under Section 5 hereof, (i) during
the period beginning on the Effective Date and ending on the earliest of (x) the
Maturity Date and (y) the first date on which the entire unpaid principal
amount of this Note (together with all accrued and unpaid interest thereon) is
paid in full in cash to the holder of this Note (such period

 

 

beginning on the Effective Date and ending on the first to occur of the
events described in clauses (x) and (y), the “Cash Interest Deferral
Period”), all accrued interest which is not paid in cash on any Interest
Payment Date shall be accumulated and added to the principal amount outstanding
on this Note as of any such Interest Payment Date, and shall thereafter accrue
interest in accordance with Section 1(a) hereof, (ii) without
duplication of amounts under clause (i) of this Section 1(c),
any and all accrued interest which is not paid in cash on the date on which it
is due and payable shall bear interest at the same rate at which interest is
then accruing on the principal amount of this Note until such interest is paid
in cash, (iii) any accrued interest which for any reason has not
theretofore been paid shall be paid in full in cash on the date on which the
final principal payment on this Note is made, and (iv) interest shall
accrue on any principal payment due under this Note and, without duplication of
amounts under clause (i) of this Section 1(c), on any interest
which has not been paid on the date on which it is due and payable until such
time as cash payment therefor is actually delivered to the holder of this
Note.  All references to accrued but
unpaid interest in this Note shall include interest that has accumulated in
accordance with this Section 1(c) but has not been paid in
cash in accordance with this Note.

 

2.             Payments
on this Note; Related Matters.

 

(a)           Maturity.  The aggregate unpaid principal amount of this
Note plus all accrued and unpaid interest thereon and all other amounts owed
hereunder shall be paid by the Payors in full in cash on the Maturity Date.

 

(b)           Prepayments.

 

(i)            Optional.  Subject to Section 2(b)(ii) hereof,
the Payors may, at any time and from time to time without premium or penalty,
prepay all or any portion (in the case of less than 100% of the outstanding
amounts of the Notes, in whole number multiples of $100,000 only) of the
outstanding principal amount of the Notes; provided that, with respect
to any cash proceeds received by any Payor from any Credit Party pursuant to
any dividend or other distribution by such Credit Party, such cash proceeds may
not be used to prepay the Notes unless (i) such prepayment is otherwise
permitted under the 1st Lien Loan Agreement and 2nd Lien Loan Agreement, (ii) the
Loans are no longer outstanding or (iii) the applicable Payor has received
the required consents under the 1st Lien Loan Agreement and 2nd Lien Loan
Agreement to use such proceeds to prepay the Notes.  In connection with each prepayment of
principal hereunder, the Payors shall also pay all accrued and unpaid interest
on the principal amount of the Notes being repaid.  For the avoidance of doubt, a prepayment of
less than all of the outstanding principal amount of each of the Notes under
this Section 2(b)(i) shall not relieve the Payors of their
other obligations (including under Section 2(a) above and Section 2(b)(ii) below).

 

(ii)           Mandatory.

 

(A)          In
Whole.  The Payors shall prepay the
entire outstanding principal amount of this Note (plus all accrued and unpaid
interest thereon and all other amounts owed hereunder with respect thereto)
upon the consummation or occurrence of a Prepayment Event.  For purposes of the Notes, the term “Prepayment
Event” means any of the following: (i) any Change of Control (as such
term is defined in the 1st Lien Loan Agreement as in effect on the date hereof
and determined without giving effect to any waiver of compliance with and/or
other modification and/or amendment thereof); (ii) any sale or transfer of
more than 50% of the assets of Parent and its Subsidiaries on a consolidated
basis (measured by either book value in accordance with generally accepted
accounting principles consistently applied or fair market value determined in
the reasonable good faith judgment of Parent’s Board) in any transaction or
series of transactions (including any sale or other disposition of capital
stock of any of Parent’s

 

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Subsidiaries (whether by merger, consolidation or
otherwise), but excluding sales of inventory in the ordinary course of
business); (iii) upon the occurrence of any Event of Default described in Section 5(a)(iii) and
(iv) with respect to any other Event of Default, upon declaration by the
Majority Holders in accordance with Section 5(b)(iii).

 

(B)           Other.  Within ten (10) Business Days after the
receipt thereof, the Payors shall use 100% of the cash proceeds received by any
Payor and/or any Subsidiary Obligor (directly or indirectly) from (x) the
sale, issuance, exercise or transfer of any Equity Securities or Equity
Equivalents or debt securities of, and/or from the incurrence of any
Indebtedness by, any Payor and/or any of its Subsidiary Obligors and/or (y) any
cash dividends, distributions or other payments received by any Payor from any
Subsidiary Obligor or Credit Party (other than, in respect of this clause (y),
amounts to pay expenses incidental to such Payor’s or Subsidiary Obligor’s
expenses and any such amounts as are distributed from time to time to Parent to
fund Parent’s repurchases of Equity Securities or Equity Equivalents to the
extent such repurchases are permitted to be made by Parent under Section 6(c)(ii) hereof
without the consent of the Majority Holders), in each case, to repay the Notes;
provided that, with respect to any cash proceeds received by any Payor
from any Credit Party pursuant to any dividend or other distribution  by such Credit Party described in clause (y) hereof,
such cash proceeds may not be used to prepay the Notes unless (i) such
prepayment is otherwise permitted under the 1st Lien Loan Agreement and 2nd
Lien Loan Agreement, (ii) the Loans are no longer outstanding or (iii) the
applicable Payor has received the required consents under the 1st Lien Loan
Agreement and 2nd Lien Loan Agreement to use such proceeds to prepay the
Notes.  To the extent such payment is not
sufficient to pay all amounts then due and owing in respect of the Notes, any
such payment shall be made in accordance with Section 3 of the
Notes.

 

(c)           Other
Adjustments to the Notes.  In the
event that it is determined (in accordance with the terms and provisions of the
Purchase Agreement) that the Excess Amount is owed by BC LLC to Parent under Section 1E(iv) of
the Purchase Agreement, then, so long as any Notes are then outstanding and
notwithstanding any provision in the Notes or the Purchase Agreement to the
contrary, such payment to Parent of the Excess Amount shall be effected (in
full and complete satisfaction of all obligations owned by BC under the
Purchase Agreement or otherwise in respect of the Excess Amount and without
duplication) by reducing the aggregate principal amount of the Notes by an
aggregate amount equal to the Excess Amount (and the payment of all accrued and
unpaid interest since the Effective Date on such principal amount of the Notes
so reduced shall be waived), with such reduction to be applied to the Notes pro
rata based upon the aggregate unpaid principal amount of the Notes then
outstanding as of immediately prior to any such reduction.  In addition, in the event that (i) it is
determined that any portion of the Adjustment Amount is due and owing to BC LLC
under the Purchase Agreement and such portion is to be paid by Parent by
delivery to BC LLC of an Acceptable Note pursuant to Section 1F(i) of
the Purchase Agreement and (ii) BC LLC and/or Boise Cascade Holdings,
L.L.C. is the holder of this Note, then, in lieu of delivering another
Acceptable Note to such holder in respect of such payment, the aggregate unpaid
principal amount of this Note shall be increased, effective as of the Effective
Date, by an aggregate amount equal to such portion of the Adjustment Amount and
interest shall be deemed to have accrued and compounded on such additional
principal amount from and after the Effective Date, and Parent’s obligations
under the Purchase Agreement to deliver to BC LLC another Acceptable Note in
respect of such portion of the Adjustment Amount shall be deemed
satisfied.  Such reduction or increase,
as the case may be, shall occur automatically and without any further action on
the part of BC LLC, Parent and/or the holder of this Note and such reduction or
increase shall be deemed effective as of the fifth (5th) Business Day after the
Closing Purchase Price becomes final and binding on the parties to the Purchase
Agreement under Section 1E of the Purchase Agreement.  BC LLC, Parent and the holder of this Note
agree to take such action as may be reasonably requested by any of the
foregoing Persons to

 

3

 

make reasonably
apparent to a third party that any such reduction or increase of any such
portion of this Note has been effected.

 

(d)           Schedule
of Adjustment.  The date and amount
of any reduction or increase of principal and interest on this Note pursuant to
Section 2(c) hereof shall be noted by the holder hereof on Schedule
I annexed hereto and made a part hereof; provided, however,
that the failure of the holder to make, or any error in making, any such
notation shall not limit, expand or otherwise affect the obligations of the
Payors under the Notes.

 

3.             Manner
of Payment.

 

(a)           Allocation.  Except as otherwise expressly provided
herein, each payment with respect to this Note shall first be applied to
payment of accrued and unpaid interest and, after payment of all such interest,
then to payment of outstanding principal.

 

(b)           Pro Rata Payment.  Except as otherwise expressly provided for in
the Notes, all payments to the holders of the Notes (whether for principal,
interest or other amounts thereon) shall be made pro rata among such holders based upon the aggregate unpaid
principal amount of the Notes held by each such holder.  If any holder of a Note obtains any payment
(whether voluntary, involuntary, by application of offset or otherwise) of
principal, interest or other amount with respect to any Note in excess of such
holder’s pro rata share of such
payments obtained by all holders of the Notes (other than as expressly provided
in the Notes), by acceptance of a Note, each such holder agrees to purchase
from the other holders of the Notes such participation in the Notes held by
them as is necessary to cause such holders to share the excess payment ratably
among each of them as provided in this Section 3(b).

 

4.             Guarantors.  In order to guarantee the prompt payment of
all obligations, liabilities or sums due or to become due under the Notes,
Parent and the Subsidiary Obligors shall cause each Credit Party to execute
that certain Guaranty, dated as of the Effective Date (the “Guaranty”).  In addition, in the event that any Person
hereafter becomes a Credit Party, the Payors shall cause such Person to
promptly (but in any event within five (5) days after becoming a Credit
Party) execute and deliver to the holders of the Notes a written undertaking
(in form and substance reasonably satisfactory to the Majority Holders) in
favor of the holders of the Notes pursuant to which such Person acknowledges
and agrees to be bound by the terms of the Guaranty as a guarantor thereunder.

 

5.             Events
of Default.

 

(a)           Definition.  For purposes of this Note, an “Event of
Default” shall be deemed to have occurred if any one or more of the following
conditions or events shall occur:

 

(i)            the Payors fail to
pay  in cash when due and payable
(whether at maturity or otherwise) the full amount of interest then accrued on
any Note and/or the full amount of any principal payment on any Note; provided, that any interest which is paid in kind in accordance with Section 1(c) of
any Note shall no longer be deemed to be due and payable and no Event of
Default under any such Note shall exist due to the fact that such interest is
not paid in cash at such time;

 

(ii)           any
of the Payors breach or otherwise fail to perform or observe any other
provision or agreement contained in any of the Notes or any Credit Party breaches
or otherwise fails to perform or observe any provision or agreement contained
in the Guaranty;

 

4

 

(iii)          any of the Payors or any of their respective
Material Subsidiaries makes an assignment for the benefit of creditors or
admits in writing its inability to pay its debts generally as they become due;
or an order, judgment or decree is entered adjudicating any Payor or any
Material Subsidiary of any Payor bankrupt or insolvent; or any order for relief
with respect to any Payor or any Material Subsidiary of any Payor is entered
under the Federal Bankruptcy Code; or any Payor or any Material Subsidiary of
any Payor petitions or applies to any tribunal for the appointment of a
custodian, trustee, receiver or liquidator of any Payor or any Material
Subsidiary of any Payor, or of any substantial part of the assets of any Payor
or any Material Subsidiary of any Payor, or commences any proceeding (other
than a proceeding for the voluntary liquidation and dissolution of any
Subsidiary) relating to any Payor or any Material Subsidiary of any Payor under
any bankruptcy reorganization, arrangement, insolvency, readjustment of debt,
dissolution or liquidation law of any jurisdiction; or any such petition or
application is filed, or any such proceeding is commenced, against any Payor or
any Material Subsidiary of any Payor and either (A) any Payor or any
Material Subsidiary of any Payor by any act indicates its approval thereof,
consent thereto or acquiescence therein or (B) such petition, application
or proceeding is not dismissed within 60 days;

 

(iv)          a judgment in excess of
$20,000,000 is rendered or entered against any Payor or any Subsidiary of any
Payor and, within 60 days after entry thereof, such judgment is not discharged
in full or execution thereof stayed pending appeal, or within 60 days after the
expiration of any such stay, such judgment is not discharged in full; or

 

(v)           (A) failure
of any Payor and/or any of their respective Subsidiaries (including any Credit
Party) to pay when due any principal of or premium on or interest on or any
other amount in the nature of interest payable in respect of one or more items
of Indebtedness (other than Indebtedness under the Notes) with an aggregate
principal amount of $19,837,500 or
more, in each case beyond the grace period, if any, provided therefor; or (B) breach
or default by any Payor and/or any of their respective Subsidiaries (including
any Credit Party) with respect to any other material term of any loan agreement,
mortgage, indenture or other agreement relating to one or more items of
Indebtedness in the individual or aggregate principal amounts referred to in
clause (A) above, in each case beyond the grace period, if any, provided
therefor, if the effect of such breach or default is to cause, or to permit the
holder or holders of that Indebtedness (or a trustee on behalf of such holder
or holders) to cause, that Indebtedness to become or be declared due and
payable (or redeemable) prior to its stated maturity or the stated maturity of
any underlying obligation, as the case may be; provided, that with
respect to any such failure to pay or breach or default under the 1st Lien Loan
Agreement or the 2nd Lien Loan Agreement, such event shall only constitute an
Event of Default hereunder if (1) there is an 1st Lien Event of Default
under subsection 8.1(a) of the 1st Lien Loan Agreement, (2) there is
an 2nd Lien Event of Default under subsection 8.1(a) of the 2nd Lien Loan
Agreement, (3) if the obligations under the 1st Lien Loan Agreement and/or
the 2nd Lien Loan Agreement shall have been accelerated, (4) if 180 days
have passed since the date of any 1st Lien Event of Default (other than a 1st
Lien Event of Default under subsection 8.1(a) of the 1st Lien Loan
Agreement) and such 1st Lien Event of Default has not been cured or waived
during such period or (5) if 180 days have passed since the date of any
2nd Lien Event of Default (other than a 2nd Lien Event of Default under
subsection 8.1(a) of the 2nd Lien Loan Agreement) and such 2nd Lien Event
of Default has not been cured or waived during such period.

 

The foregoing shall constitute “Events of Default”
whatever the reason or cause for any such Event of Default and whether it is
voluntary or involuntary or is effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body and regardless of the effects of any
subordination provisions.

 

5

 

(b)           Consequences
of Events of Default.

 

(i)            If
any Event of Default has occurred, the interest rate otherwise applicable to
the Notes under Section 1 hereof shall automatically increase
immediately by an increment of 200 basis points above the rate determined
pursuant to Section 1(a) of this Note to the extent permitted
by applicable law.  Any increase of the
interest rate resulting from the operation of this Section 5(b)(i) shall
terminate as of the close of business on the date on which no Events of Default
exist.

 

(ii)           If
an Event of Default of the type described in Section 5(a)(iii) has
occurred, the aggregate principal amount of the Notes (together with all
accrued interest thereon and all other amounts due and payable with respect
thereto) shall become immediately due and payable without any action on the
part of the holders of the Notes, and the Payors shall immediately pay to the
holders of the Notes all amounts due and payable with respect to the Notes.

 

(iii)          If any other Event of Default of the type
described in Section 5(a)(v) has occurred, the Majority
Holders may declare all or any portion of the outstanding principal amount of
the Notes (together with all accrued interest thereon and all other amounts due
and payable with respect thereto) to be immediately due and payable and may
demand immediate payment of all or any portion of the outstanding principal
amount of the Notes (together with all such other amounts then due and
payable), which declaration of payment shall be binding on all of the holders
of Notes, with any payments in connection with the declaration of a partial
repayment of the Notes to be applied in accordance with Section 3(b) of
the Notes. The Payors shall give prompt written notice of any such demand to
the other holders of Notes.

 

(iv)          If
any other Event of Default of the type described in Section 5(a)(i) has
occurred and continued for 10 days without cure or any other Event of Default
(other than an Event of Default under Section 5(a)(i), Section 5(a)(iii) or
Section 5(a)(v)) has occurred and continued for 30 days without
cure, the Majority Holders may declare all or any portion of the outstanding
principal amount of the Notes (together with all accrued interest thereon and
all other amounts due and payable with respect thereto) to be immediately due
and payable and may demand immediate payment of all or any portion of the
outstanding principal amount of the Notes (together with all such other amounts
then due and payable), which declaration of payment shall be binding on all of
the holders of Notes, with any payments in connection with the declaration of a
partial repayment of the Notes to be applied in accordance with Section 3(b) of
the Notes. The Payors shall give prompt written notice of any such demand to
the other holders of Notes.

 

(v)           Each
holder of the Notes shall also have any other rights which such holder may have
been afforded under any contract or agreement at any time and any other rights
which such holder may have pursuant to applicable law.

 

6.             Covenants.

 

(a)           Notice
of Events of Default.  Promptly (but
in any event within five days) after the discovery or receipt of notice of (x) any
Event of Default, Potential Event of Default, 1st Lien Event of Default or 2nd
Lien Event of Default or (y) the occurrence of any event or change that
has caused or results in, either in any case or in the aggregate, a Material
Adverse Effect, an Officer’s Certificate specifying the nature and period of
existence thereof and what actions Parent and its Subsidiaries have taken and
propose to take with respect thereto.

 

(b)           No
Restrictions on Transferability.  As
long as any Note is issued and outstanding, none of the Payors will take, or
cause or permit to be taken, directly or indirectly, any action, including
making or failing to make any election under the law of any state, which has
the effect,

 

6

 

directly or
indirectly, of restricting or limiting the ability of any holder of a Note
freely to sell, transfer, assign, pledge or otherwise dispose of any such Note
(and/or any portion thereof) or would restrict or limit the rights of any
transferee of any such Note (and/or any portion thereof)  as a holder of a Note.

 

(c)   Approval of Certain
Activities.  So long as any Notes
remain outstanding, none of the Payors shall, and shall not permit any their
respective Subsidiaries to, take any of the following actions without the
affirmative written consent of the Majority Holders:

 

(i)            directly or indirectly
declare or pay, or permit any Subsidiary to declare or pay, any dividends or
make any distributions upon any of its capital stock or other Equity Securities
(including any Equity Equivalents), except that (a) Parent may declare and
pay or make dividends or distributions payable in shares of Common Stock issued
ratably upon the outstanding shares of Common Stock and (b) any Subsidiary
may declare and pay dividends or make distributions to Parent or any
wholly-owned direct or indirect Subsidiary of Parent;

 

(ii)           directly or indirectly
redeem, purchase or otherwise acquire, or permit any Subsidiary to redeem,
purchase or otherwise acquire, any of Parent’s Equity Securities or Equity
Equivalents or directly or indirectly redeem, purchase or make any payments
with respect to any stock appreciation rights, phantom stock plans or similar
rights or plans, except for acquisitions of capital stock pursuant to
agreements or plans, including equity incentive agreements with service
providers, which allow Parent to repurchase shares of Common Stock upon the
termination of services or an exercise of Parent’s right of first refusal upon
a proposed transfer, in each case only so long as no Event of Default or
Potential Event of Default is in existence immediately prior to or is otherwise
caused by any such repurchase or other action;

 

(iii)          with respect
to the Payors, take any action, or permit any action to be taken, which would
be prohibited under Section 6.3 (Negative Pledges), Section 6.6
(Investments), Section 6.8 (Fundamental Changes; Disposition of Assets;
Acquisitions), Section 6.11 (Transactions with Stockholders and
Affiliates) and/or Section 6.12 (Conduct of Business) of the 1st Lien Loan
Agreement (assuming, for such purpose, that Parent and the other Subsidiary
Obligors are each a “Credit Party” thereunder and determined without giving
effect to any waiver of compliance with and/or other modification of such
terms);

 

(iv)          with respect to the
Credit Parties, create, incur, assume or suffer to exist, or permit any
Subsidiary to create, incur, assume or suffer to exist, Indebtedness, other
than such Indebtedness that is otherwise expressly permitted under the terms of
Section 6.1 of the 1st Lien Loan Agreement;

 

(v)           with respect to the
Payors, create, incur, assume or suffer to exist, or permit any Subsidiary
Obligor to create, incur, assume or suffer to exist, Indebtedness, other than (i) such
Indebtedness, the proceeds of which are used to prepay the Notes in full in
accordance with Section 2(b)(ii)(B) or (ii) to the extent
the proceeds of such Indebtedness are not used to prepay the Notes in full,
such Indebtedness is expressly subordinated to the Notes on terms reasonably
satisfactory to the Majority Holders;

 

(vi)          with
respect to the Credit Parties, create, incur, assume or suffer to exist, or permit
any Subsidiary to create, incur, assume or suffer to exist, any Liens other
than Liens that are expressly permitted under the terms of Section 6.2
of the 1st Lien Loan Agreement;

 

7

 

(vii)         with respect to the Payors, create, incur,
assume or suffer to exist, or permit any Subsidiary to create, incur, assume or
suffer to exist, any Liens other than any Liens that are expressly permitted
under the terms of Section 6.2 of the 1st Lien Loan Agreement (and
determined without giving effect to any waiver of compliance with and/or other
modification of such terms) or Liens to secure Indebtedness permitted under Section 6(c)(v) hereof;

 

(viii)        in the case of any
Subsidiary Obligor and Aldabra Holding Sub LLC, issue or sell (and Parent shall
not permit any such Person to issue and sell), any shares of the capital stock
or other Equity Securities (including any Equity Equivalents), or rights to
acquire shares of the capital stock or other Equity Securities (including any
Equity Equivalents), of any such Person to any Person other than Parent or a
wholly-owned Subsidiary Obligor of Parent;

 

(ix)           permit any Payor to
become a Credit Party and/or guarantor under the 1st Lien Loan Agreement and/or
2nd Lien Loan Agreement and/or otherwise become liable and/or responsible
(whether by contract or otherwise) thereunder for any liability or obligation
of any Credit Party thereunder; and/or

 

(x)            agree to any of the
foregoing.

 

Notwithstanding the
foregoing, no consent of the Majority Holders shall be required with respect to
any of the actions or activities set forth in clauses (iii) through (vii) and
clause (viii) (to the extent related to clauses (iii) through (vii))
at such time as BC LLC and/or its Affiliates cease to be the Majority Holders.

 

(d)           Current
Public Information.  From and after
the date hereof, Parent shall file all reports required to be filed by it under
the Securities Act and the Securities Exchange Act and the rules and
regulations adopted by the Securities and Exchange Commission thereunder and
shall provide such information (including a copy of the most recent annual or
quarterly report of Parent, and such other reports and documents so filed as a
holder may reasonably request (to the extent available) in availing itself of
any rule or regulation of the Securities and Exchange Commission allowing
a holder to sell any such securities without registration) and shall take such
further action as any holder or holders of Restricted Securities may reasonably
request, all to the extent required to enable such holders to sell Restricted
Securities pursuant to Rule 144 and Rule 144A adopted by the
Securities and Exchange Commission under the Securities Act (as such rule may
be amended from time to time) or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission.  Without limiting the generality of the
foregoing, with a view to making available the benefits of certain rules and
regulations of the Securities and Exchange Commission that may permit the
transfer or sale of the Restricted Securities (in whole or in part) to the
public without registration, Parent agrees at all times to use its reasonable
best efforts to:  (a) make and keep
public information regarding Parent available as those terms are understood and
defined in Rule 144 and Rule 144A under the Securities Act; (b) file
with the Securities and Exchange Commission in a timely manner all reports and
other documents required of Parent under the Securities Act and the Exchange
Act at any time after it has become subject to such reporting requirements; and
(c) so long as a holder holds any Restricted Securities, furnish to the
holder forthwith upon written request a written statement by Parent as to its
compliance with the reporting requirements of Rule 144 and Rule 144A.

 

7.             Transfer
of Restricted Securities.

 

(a)           General
Provisions. Restricted Securities are transferable only pursuant to (i) public
offerings registered under the Securities Act, (ii) Rule 144 or Rule 144A
of the Securities and

 

8

 

Exchange
Commission (or any similar rule or rules then in force) if such rule is
available and (iii) subject to the conditions specified in Section 7(b) below,
any other legally available means of transfer.

 

(b)           Opinion.  In connection with the transfer of any
Restricted Securities (other than a transfer described in Section 7(a)(i) or
(ii) above), the holder thereof shall deliver written notice to
Parent describing in reasonable detail the transfer or proposed transfer,
together with an opinion of counsel which (to Parent’s reasonable satisfaction)
is knowledgeable in securities law matters to the effect that such transfer of
Restricted Securities may be effected without registration of such Restricted
Securities under the Securities Act.  In
addition, if the holder of the Restricted Securities delivers to Parent an
opinion of counsel that no subsequent transfer of such Restricted Securities
shall require registration under the Securities Act, Parent shall promptly upon
such contemplated transfer deliver new certificates for such Restricted
Securities which do not bear the Securities Act legend set forth in Section 7(d).  If Parent is not required to deliver new
certificates for such Restricted Securities not bearing such legend, the holder
thereof shall not transfer the same until the prospective transferee has
confirmed to Parent in writing its agreement to be bound by the conditions
contained in this Section 7.

 

(c)           Legend
Removal.  If any Restricted
Securities cease, in accordance with the definition therewith, to be “Restricted
Securities”, Parent shall, upon the request of the holder of such Restricted
Securities, remove the legend set forth in Section 7(d) from
the certificates for such Restricted Securities.

 

(d)           Legend.  Each certificate or instrument representing
Restricted Securities shall be imprinted with a legend in substantially the
following form:

 

“The security represented by this instrument was
originally issued on February 22, 2008, and has not been registered under
the Securities Act of 1933, as amended. 
The transfer of such security is subject only to the conditions
specified in Section 7 of this Note.”

 

8.             Amendment and
Waiver.  Except as otherwise
expressly provided herein, the provisions of the Notes may be amended and the
Payors may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if Parent has obtained the written consent
of the Majority Holders; provided that no such action shall change (i) the
rate at which or the manner in which interest accrues on the Notes or the times
at which such interest becomes payable, (ii) any provision relating to the
scheduled payments or prepayments of principal on the Notes or (iii) any
provision of this Section 8, without the written consent of the
holders at least 75% of the outstanding principal amount of the Notes.

 

9.             Definitions.  For purposes of the Notes, the following
capitalized terms have the following meaning:

 

“Affiliate” means
any Person that directly, or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with the party
specified (it being understood and agree that from and after the Closing (as
such term is defined in the Purchase Agreement), for purposes of the Notes,
none of Parent or any of its Subsidiaries shall be deemed to be an Affiliate of
BC LLC or any of its Subsidiaries or Boise Cascade Holdings, L.L.C.).

 

“Board” means (i) in
the case of a Person that is a limited liability company, the managers
authorized to act therefor (or, if the limited liability company has no
managers, the members), (ii) in the case of a Person that is a
corporation, the board of directors of such Person or any committee authorized
to act therefor, (iii) in the case of a Person that is a limited
partnership, the board of directors

9

 

of its corporate general partner (or, if the general
partner is itself a limited partnership, the board of directors of such general
partner’s corporate general partner) and (iv) in the case of any other
Person, the board of directors, management committee or similar governing body
or any authorized committee thereof responsible for the management of the
business and affairs of such Person; provided that, in each case, the “Board”
shall be deemed to include any duly authorized committee thereof that is authorized
to take the action in question.

 

“Business Day”
means any day, other than a Saturday, Sunday, or any other date in which banks
located in New York, New York or Boise, Idaho are closed for business as a
result of federal, state or local holiday.

 

“Closing” has the
meaning ascribed to such term in the Purchase Agreement.

 

“Common Stock” means (i) Parent’s Common
Stock, par value $0.0001 per share, and (ii) any common stock of Parent
(or any successor-in-interest to Parent) issued or issuable with respect to the
securities referred to in clause (i) by way of stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization

 

“Credit Party” has the meaning ascribed to such
term in the 1st Lien Loan Agreement; provided that any such Person shall
cease to be a “Credit Party” hereunder as such time as such Person ceases to be
a Credit Party under the 1st Lien Loan Agreement.

 

“Effective Date” means February 22, 2008.

 

“Equity Equivalents” means, with respect to any
Person, any securities convertible into or exchangeable for any Equity
Securities of such Person, including warrants, options and other rights to
acquire Equity Securities of such Person.

 

“Equity Securities” means, with respect to any
Person, any shares, share derivatives, share appreciation rights, or other
rights or instruments containing equity-like features or otherwise based on
changes in the enterprise value of such Person or its Affiliates and any rights
to acquire any such right or instrument.

 

“Event of Default” means each (and any) of the
conditions or events set forth in Section 5(a).

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

“1st Lien Event of
Default” means an Event of Default as defined in the 1st Lien Loan
Agreement.

 

“1st Lien Loan” means any Loan (as such term or
any similar term is defined in the 1st Lien Loan Agreement).

 

“1st Lien Loan Agreement” means that certain
Credit and Guaranty Agreement dated as of the date hereof, by and among Boise
Paper Holdings, L.L.C., a Delaware limited liability company, Parent Sub, the
other Subsidiaries of Parent party thereto, the lenders and agents party
thereto, Goldman Sachs Credit Partners L.P., as Joint Lead Arranger,
Administrative Agent and Collateral Agent, and Lehman Brothers Inc., as Joint
Lead Arranger, as amended, restated, supplemented, modified, replaced or
Refinanced from time to time.

 

10

 

“GAAP” means U.S. generally accepted accounting
principles, consistently applied.

 

“Indebtedness”, as applied to any Person,
means, without duplication, (i) all indebtedness for borrowed money; (ii) that
portion of obligations with respect to capital leases that is properly
classified as a capitalized liability on a balance sheet in conformity with
GAAP; (iii) notes payable and drafts accepted representing extensions of
credit whether or not representing obligations for borrowed money; (iv) any
obligation owed for all or any part of the deferred purchase price of property
or services (excluding any such obligations incurred under ERISA), including
any earn-out obligations incurred in connection with any acquisition; (v) all
indebtedness secured by any Lien on any property or asset owned or held by that
Person regardless of whether the indebtedness secured thereby shall have been
assumed by that Person or is nonrecourse to the credit of that Person; provided
that if recourse for such Indebtedness is limited to such property, the amount
of Indebtedness arising under this clause (v) shall be limited to the
lesser of (a) the outstanding principal amount thereof and (b) the
fair market value of the property subject to such Lien; (vi) the face
amount of any letter of credit issued for the account of that Person or as to
which that Person is otherwise liable for reimbursement of drawings, (viii) the
direct or indirect guaranty, endorsement (otherwise than for collection or
deposit in the ordinary course of business), co-making, discounting with
recourse or sale with recourse by such Person of Indebtedness of another; (ix) any
obligation of such Person the primary purpose or intent of which is to provide
assurance to an obligee that Indebtedness of the obligor thereof will be paid
or discharged, or any agreement relating thereto will be complied with, or the
holders thereof will be protected (in whole or in part) against loss in respect
thereof; (x) any liability of such Person for Indebtedness of another
through any agreement (contingent or otherwise) (a) to purchase,
repurchase or otherwise acquire such Indebtedness or any security therefor, or
to provide funds for the payment or discharge of such Indebtedness (whether in
the form of loans, advances, stock purchases, capital contributions or
otherwise) or (b) to maintain the solvency or any balance sheet item,
level of income or financial condition of another if, in the case of any
agreement described under subclauses (a) or (b) of this clause (x),
the primary purpose or intent thereof is as described in clause (ix) above;
and (xi) all obligations of such Person in respect of any exchange traded or
over the counter derivative transaction, whether entered into for hedging or
speculative purposes.

 

“Lien” has the meaning ascribed to such term in
the 1st Lien Loan Agreement.

 

“Loans” means, collectively, the 1st Lien Loans
and 2nd Lien Loans.

 

“Majority Holders” means, at any time, the
holders of at least a majority of the aggregate unpaid principal amounts of the
Notes then outstanding.

 

“Material Adverse Effect” means a material
adverse effect on and/or material adverse developments with respect to (i) the
business, results of operations, assets or financial condition of Parent and
its Subsidiaries taken as a whole; (ii) the ability of any Obligor to
perform any of its material obligations under the Notes; (iii) the
legality, validity, binding effect or enforceability against an Obligor of any
Note; or (iv) the rights, remedies and benefits available to, or conferred
upon, any holder of a Note under any such Note.

 

“Material Subsidiary” has the meaning ascribed
to such term in the 1st Lien Loan Agreement.

 

“Maturity Date” means August 21, 2015; provided
that, if such date is later than 181 days after the scheduled maturity of the
latest maturity date of any Indebtedness evidenced by either the 1st Lien Loan
Agreement and/or the 2nd Lien Loan Agreement (after giving effect to any
amendments,

 

11

 

supplements and/or modifications to any such agreements), then the “Maturity
Date” shall automatically be deemed to be 181 days after the scheduled maturity
of the latest maturity date of any Indebtedness evidenced by either the 1st
Lien Loan Agreement and/or the 2nd Lien Loan Agreement.

 

“Officer’s Certificate” means a certificate
signed by Parent’s chief executive officer, president or its chief financial
officer, stating that (i) the officer signing such certificate has made or
has caused to be made such investigations as are reasonably necessary in order
to permit him to verify the accuracy of the information set forth in such
certificate and (ii) to the best of such officer’s knowledge, such
certificate does not misstate any material fact and does not omit to state any
fact necessary to make the certificate not misleading.

 

“Parent Sub” means Aldabra Holding Sub LLC, a
Delaware limited liability company.

 

“Person” means an individual, a partnership, a
corporation, a limited liability company, an association, a joint stock
company, a trust, a joint venture, an unincorporated organization and a
governmental entity or any department, agency or political subdivision thereof.

 

“Potential Event of Default” means any event or
occurrence which with the passage of time or the giving of notice or both would
constitute an Event of Default.

 

“Refinance” means, in respect of any
Indebtedness, to refinance, extend, renew, defease, amend, modify, supplement,
restructure, replace, refund or repay, or to issue other indebtedness, in
exchange or replacement for, such Indebtedness in whole or in part.  “Refinanced” and “Refinancing”
shall have correlative meanings.  All
such terms shall include any subsequent Refinancing of any Indebtedness issued
in connection with any Refinancing.  As
used in this Note or the Guaranty, section references to the 1st Lien Loan
Agreement and the 2nd Lien Loan Agreement, solely as such sections of the 1st
Lien Loan Agreement and the 2nd Lien Loan Agreement are applicable to the
Credit Parties, shall be deemed to be references to comparable sections in
agreements, documents or instruments evidencing any Refinancing thereof.

 

“Representative” means, with respect to any
Person, any of such Person’s directors, officers, employees, agents,
consultants, advisors, accountants or attorneys.

 

“Restricted Securities” means (i) this
Note and (ii) any securities issued with respect to the securities
referred to in clauses (i) in connection with a recapitalization, merger,
consolidation or other reorganization. 
As to any particular Restricted Securities, such securities shall cease to
be Restricted Securities when they have (a) been effectively registered
under the Securities Act and disposed of in accordance with the registration
statement covering them, (b) been distributed to the public through a
broker, dealer or market maker on a securities exchange or in the
over-the-counter market pursuant to Rule 144 (or any similar provision
then in force) under the Securities Act or (c) been otherwise transferred
and new certificates for them not bearing the Securities Act legend set forth in
Section 7(d) hereof have been delivered by Parent in
accordance with Section 7. 
Whenever any particular securities cease to be Restricted Securities,
the holder thereof shall be entitled to receive from Parent, without expense,
new securities of like tenor not bearing a Securities Act legend of the
character set forth in Section 7(d).

 

“2nd Lien Event of
Default” means an Event of Default as defined in the 2nd Lien Loan
Agreement.

 

12

 

“2nd Lien Loan” means any Loan (as such term or
any similar term is defined in the 2nd Lien Loan Agreement).

 

“2nd Lien Loan Agreement” means that certain
Second Lien Credit Agreement dated as of the date hereof, by and among Boise
Paper Holdings, L.L.C., a Delaware limited liability company, Parent Sub, the
other Subsidiaries of Parent party thereto, the lenders and agents party
thereto, Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc. as Joint
Lead Arrangers and Lehman Commercial Paper Inc. as Administrative Agent and
Collateral Agent, as amended, restated, supplemented, modified, replaced or
Refinanced from time to time.

 

“Securities Act” means the Securities Act of
1933, as amended.

 

“Subsidiary” means, with respect to any Person,
any corporation, limited liability company, partnership, association or other
business entity of which (i) if a corporation, a majority of the total
voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or a combination
thereof, or (ii) if a limited liability company, partnership, association
or other business entity, a majority of the partnership or other similar
ownership interest thereof is at the time owned or controlled, directly or
indirectly, by any Person or one or more Subsidiaries of that Person or a
combination thereof.  For purposes
hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association or other
business entity if such Person or Persons shall be allocated a majority of
limited liability company, partnership, association or other business entity
gains or losses or shall be or control any managing director or general partner
of such limited liability company, partnership, association or other business
entity.

 

10.           Transfers.  Parent shall maintain a register for recording
the ownership and the transfer of the Notes. 
Upon surrender of this Note for registration of transfer or for exchange
to Parent at its principal office, the Payors at their sole expense shall
execute and deliver in exchange therefor a new Note or Notes, as the case may
be, as requested by the holder or transferee, which aggregate the unpaid
principal amount of the Note(s) so transferred or exchanged, registered as
such holder or transferee(s) may request, as applicable, dated so that
there will be no loss of interest on such surrendered Note(s) and
otherwise of like tenor.  The issuance of
new Note(s) shall be made without charge to the holder(s) of the
surrendered Note for any issuance tax in respect thereof or other cost incurred
by the Payors in connection with such issuance; provided that the holder
of this Note shall pay any transfer taxes associated therewith.  The Payors shall be entitled to regard the
registered holder of this Note as the owner and holder of the Notes so
registered for all purposes until Parent is required to record a transfer of
this Note on its register.

 

11.           Replacement.  Upon receipt of evidence reasonably
satisfactory to Parent of the loss, theft, destruction or mutilation of this
Note and, in the case of any such loss, theft or destruction of this Note, upon
receipt of an indemnity reasonably satisfactory to Parent (provided that, if
the holder of this Note is a financial institution, its own unsecured agreement
shall be satisfactory) or, in the case of any such mutilation, upon the
surrender and cancellation of this Note, the Payors, at their expense, shall
execute and deliver, in lieu thereof, a new Note of like tenor and dated the
date of such lost, stolen, destroyed or mutilated Note.  Any Note in lieu of which any such new Note
has been so executed and delivered by the Payors shall not be deemed to be an
outstanding Note.

 

12.           Waivers.  The Payors hereby waives presentation for
payment, demand, notice of nonpayment and notice of protest with respect to
this Note.

 

13

 

13.           Cancellation.  After all principal and accrued interest owed
on this Note has been paid in full, this Note shall be surrendered to Parent
for cancellation and shall not be reissued.

 

14.           Form of Payments.  All
payments to be made to the holders of the Notes shall be made in the lawful
money of the United States of America in immediately available funds to an
account designated in writing by the holder to Parent, with no offsets against
or withholding from any payments due hereunder. 
Payments of principal and interest and other amounts on this Note shall
be delivered as directed by prior written notice by the holder of this Note to
Parent or, if not specified by such holder, then to such holder, at the address
of such holder as set forth on Parent’s records or at such other address as is
specified by prior written notice by such holder to Parent.

 

15.           Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Note
shall be in writing and shall be deemed to have been given (i) if
personally delivered, on the date of delivery, (ii) if delivered by
express courier service of national standing (with charges prepaid), on the
Business Day following the date of delivery to such courier service, (iii) if
deposited in the United States mail, first-class postage prepaid, on the fifth
Business Day following the date of such deposit, (iv) if delivered by
telecopy, upon confirmation of successful transmission, (x) on the date of
such transmission, if such transmission is completed at or prior to 5:00 p.m.,
local time of the recipient party on a Business Day, on the date of such
transmission, and (y) on the next day following the date of transmission,
if such transmission is completed after 5:00 p.m., local time of the
recipient party, on the date of such transmission or is transmitted on a day
that is not a Business Day, or (v) if delivered by Internet mail (with a
delivery report), provided the relevant computer record indicates a full and
successful transmission or no failure message is generated (x) on the date
of such transmission, if such transmission is completed at or prior to 5:00 p.m.,
local time of the recipient party on a Business Day, on the date of such
transmission, and (y) on the next Business Day following the date of
transmission, if such transmission is completed after 5:00 p.m., local
time of the recipient party or is transmitted on a day that is not a Business
Day.  Such notices, demands and other
communications shall be sent to the holder of this Note at the address for such
holder on Parent’s register and to the Payors at the respective addresses
indicated below, or pursuant to such other instructions as may be designated in
writing by the party to receive such notice:

 

Payors:

 

	
  Aldabra 2 Acquisition Corp. (to be renamed Boise
  Inc.)

  
	
  c/o Boise Paper Holdings, L.L.C.

  
	
  1111 West Jefferson
  Street, Suite 200

  
	
  Boise, Idaho 83702-5388

  
	
  Attention: Chief Financial
  Officer

  
	
  Telecopier: (208)
  384-4913

  
	
  Email: RobMcNutt@BoiseInc.com

  

 

with a copy to:

 

	
  Boise Paper Holdings,
  L.L.C.

  
	
  1111 West Jefferson
  Street, Suite 200

  
	
  Boise, Idaho 83702-5388

  
	
  Attention: General Counsel

  
	
  Telecopier: (208) 384-7945

  
	
  Email: Legal@BoiseInc.com

  

 

14

 

or to such other address or to the attention of such
other Person as the recipient party has specified by prior written notice to
the sending party.

 

16.           Business Days.  If any payment is due, or any time period for
giving notice or taking action expires, on a Business Day, the payment shall be
due and payable on, and the time period shall automatically be extended to, the
next Business Day, and interest shall continue to accrue in accordance with
this Note until any such payment is made.

 

17.           Survival.  All representations, warranties, covenants
and agreements of each Payor contained herein or made in writing in connection
herewith shall survive the issuance of this Note.

 

18.           Obligations.  Each of the Payors acknowledge and agree that
each of them shall be jointly and severally liable for all obligations of any
Payor hereunder.  In addition, in the
event that any Person hereafter becomes a Subsidiary of any Payor hereunder
that is organized under the laws of the State of Delaware, the Payors shall
cause such Person to promptly (but in any event within five (5) days after
becoming a Subsidiary of any such Payor) execute and deliver to the holder of
this Note a written undertaking (in form and substance reasonably satisfactory
to such holder) in favor of such holder pursuant to which such Person
acknowledges and agrees to be bound by the terms of this Note as a Payor and/or
Subsidiary Obligor (as applicable).  Each
of the Payors acknowledges and agrees that the holder of this Note shall have
the right, in addition to any other rights and
remedies existing in its favor, to enforce its rights hereunder not only by an
action or actions for damages but also by an action or actions for specific
performance, injunctive and/or other equitable relief.

 

19.           Governing
Law.  All issues and questions
concerning the construction,
validity, enforcement and
interpretation of the Notes shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the
State of Delaware.  In furtherance of the
foregoing, the internal law of
the State of Delaware shall control the interpretation and construction of this
Note, even though under that
jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily
apply.

 

20.           Usury Laws.  It is the intention of the Payors and the
holder of this Note to conform strictly to all applicable usury laws now or
hereafter in force, and any interest payable under this Note shall be subject
to reduction to the amount not in excess of the maximum legal amount allowed
under the applicable usury laws as now or hereafter construed by the courts
having jurisdiction over such matters. 
If the maturity of this Note is accelerated by reason of an election by
the holder hereof resulting from an Event of Default, voluntary prepayment by
the Payors or otherwise, then earned interest may never include more than the
maximum amount permitted by law, computed from the date hereof until payment,
and any interest in excess of the maximum amount permitted by law shall be
canceled automatically and, if theretofore paid, shall at the option of the
holder hereof either be rebated to the Payors or credited on the principal
amount of this Note, or if this Note has been paid, then the excess shall be
rebated to the Payors.  The aggregate of
all interest (whether designated as interest, service charges, points or
otherwise) contracted for, chargeable, or receivable under this Note shall
under no circumstances exceed the maximum legal rate upon the unpaid principal
balance of this Note remaining unpaid from time to time.  If such interest does exceed the maximum
legal rate, it shall be deemed a mistake and such excess shall be canceled
automatically and, if theretofore paid, rebated to the Payors or credited on
the principal amount of this Note, or if this Note has been repaid, then such
excess shall be rebated to the Payors.

 

15

 

21.           Waiver of Jury Trial. Each of
the Payors and the holder of this Note, by accepting this Note, agrees that it
hereby waives, to the fullest extent permitted by law, any right to jury trial
of any claim, demand, action, or cause of action (i) arising under this
Note or (ii) in any way connected with or related or incidental to the
dealings in respect of this Note, in each case whether now existing or
hereafter arising, and whether in contract, tort, equity, or otherwise. Each of
the Payors and the holder of this Note, by accepting this Note, 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 each holder of this Note and the
Payors may file an original counterpart of a copy of this Note with any court
as written evidence of the consent of the holder of this Note or the Payors to
the waiver of the holder of this Note’s right to trial by jury.

 

22.           No Waiver.  The rights and remedies of the holder of this
Note expressly set forth in this Note are cumulative and in addition to, and
not exclusive of, all other rights and remedies available at law, in equity or
otherwise.  No failure or delay on the
part of the holder of this Note in exercising any right, power or privilege
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or privilege preclude any other or further exercise
thereof or the exercise of any other right, power or privilege or be construed
to be a waiver of any Event of Default. 
No course of dealing between any of the Payors and the holder of this
Note or their Affiliates, agents or employees shall be effective to amend,
modify or discharge any provision of this Note or to constitute a waiver of any
Event of Default.  No notice to or demand
upon any Payor in any case shall entitle any Payor to any other or further
notice or demand in similar or other circumstances or constitute a waiver of
the right of the holder of this Note to exercise any right or remedy or take
any other or further action in any circumstances without notice or demand.

 

23.   Costs. 
The Payors agree to pay all costs and expenses, including reasonable
attorneys’ fees and disbursements, costs of collection and court costs,
incurred or paid by any holder of this Note and/or any of its Affiliates in
connection with this Note.

 

24.   Assignment.  The rights and obligations of each Payor and
the holder of this Note shall be binding upon and benefit the successors and
permitted assigns and transferees of each such Payor and the holder of this
Note, except that none of the Payors may assign or transfer its rights
hereunder or any interest herein or delegate its liabilities, obligations or
duties hereunder without the prior written consent of the Majority Holders.

 

25.   Waiver of Presentment, Demand and Dishonor.  Each of the Payors hereby waives presentment
for payment, protest, demand, notice of protest, notice of nonpayment and
diligence with respect to this Note, and waives and renounces all rights to the
benefits of any statute of limitations or any moratorium, appraisement,
exemption, or homestead now provided or that hereafter may be provided by any
federal or applicable state statute, including but not limited to exemptions
provided by or allowed under the Federal Bankruptcy Code, both as to itself and
as to all of its property, whether real or personal, against the enforcement
and collection of this Note (and any and all obligations hereunder) and any and
all extensions, renewals, and modifications hereof.  In any action on this Note, the holder of
this Note need not produce or file the original of this Note, but need only
file a photocopy of this Note certified by the holder hereof to be a true and
correct copy of this Note.

 

26.   Usage. 
Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without
limitation.”  All references to “$” and
dollars shall be deemed to refer to United States currency unless otherwise
specifically provided.

 

*  *  * 
*  *

 

16

 

IN WITNESS WHEREOF, each of the Payors has executed
and delivered this Note on February 22, 2008.

 

	
   

  	
   

  	
  Aldabra 2 Acquisition
  Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/ Jason G. Weiss

  
	
   

  	
   

  	
  Its

  	
  Chief Executive Officer

  
					

 

 

SCHEDULE
I TO THE NOTE

 

	
  Date

  	
   

  	
  Aggregate

  Principal Amount

  Outstanding Pre-

  Adjustment

  	
   

  	
  Accrued
  and Unpaid

  Interest Pre-Adjustment

  (including Accumulated

  Interest per Section

  1(c))

  	
   

  	
  Aggregate
  Principal

  Amount Outstanding Post-

  Adjustment

  	
   

  	
  Accrued
  and Unpaid

  Interest Post-Adjustment

  (including Accumulated

  Interest per Section 1(c))

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-2Exhibit 10.2

 

INVESTOR RIGHTS AGREEMENT

 

THIS INVESTOR
RIGHTS AGREEMENT (this “Agreement”) is made as of February 22,
2008, by and between Aldabra 2 Acquisition Corp., a Delaware corporation and
which shall be renamed as “Boise Inc.” promptly following the Closing (the “Company”)
and each of the following Persons: Boise Cascade, L.L.C., a Delaware limited
liability company (“Boise”), Boise Cascade Holdings, L.L.C., a Delaware
limited liability company (“BCH”), certain directors and officers of the
Company and other Persons who are shareholders of the Company on the date
hereof and who are signatories to this Agreement under the heading “Aldabra
Shareholders” on the signature pages hereto (the “Aldabra Shareholders”),
and each other Person who becomes a party to this Agreement after the date
hereof pursuant to Section 14(e). 
Certain capitalized terms used herein are defined in Section 12.

 

The Company,
Boise and certain other Persons are parties to that certain Purchase and Sale
Agreement, dated as of September 7, 2007 (as amended, modified,
supplemented or waived from time to time, the “Purchase Agreement”)
pursuant to which the Company is acquiring the Business (as such term is
defined in the Purchase Agreement) and, in partial consideration therefor,
Boise is receiving shares of Common Stock of the Company.

 

                The Aldabra Shareholders own shares of Common Stock
of the Company and warrants exercisable for shares of Common Stock and are
agreeing to the covenants herein as a condition to the obligation of Boise to
consummate the transactions contemplated by the Purchase Agreement.

 

                The execution and delivery of this Agreement by the
Company is a condition to Boise’s obligations under the Purchase Agreement, and
the execution and delivery of this Agreement by Boise is a condition to the
Company’s obligations under the Purchase Agreement.

 

The parties
hereto, intending to be legally bound, hereby agree as follows:

 

1.     Demand Registrations.

 

(a)   Requests for Registration.  At any time and from time to time after the
date hereof, holders of Registrable Securities may, to the extent permitted in
accordance with Section 1(b) and Section 1(c) hereof,
request registration under the Securities Act of all or any portion of their
Registrable Securities (i) on Form S-1 or any similar long-form
registration (“Long-Form Registrations”) and/or (ii) on Form S-2
or S-3 (including pursuant to Rule 415 under the Securities Act) or any
similar short-form registration (“Short-Form Registrations”).  All registrations requested pursuant to this Section 1(a) are
referred to herein as “Demand Registrations”.  Each request for a Demand Registration shall
specify the approximate number of Registrable Securities requested to be
registered.  The Company shall give
prompt written notice of such requested registration to all other holders of
Registrable Securities (which notice shall be given at least 20 days prior to
the date the applicable registration statement is to be filed) and, subject to
the remainder of this Section 1, shall include in such registration
(and in all related registrations and qualifications under state blue sky laws
or in compliance with other registration requirements and in any related
underwriting) all Registrable Securities with respect to which the Company has
received written requests for inclusion therein within 15 days after the
receipt of the Company’s notice. 
Notwithstanding the provisions of this Section 1(a) to
the contrary, as long as the Company determines that such delay would not
impair the ability of holders of Registrable Securities to participate in such
registration (e.g., because the registration statement therefor is likely to be
reviewed by the Securities and Exchange Commission and/or such offering will
not be completed until at least 20 days after the registration statement
therefor is filed), at the request of the holders requesting such registration,
the Company shall delay the notice of a Demand Registration requested in
accordance with this Section 1 until the day after the registration
statement with respect to such Demand Registration is filed, in which 

 

 

case, subject
to the remainder of this Section 1, the Company shall include in
such registration (and in all related registrations and qualifications under
state blue sky laws or in compliance with other registration requirements and
in any related underwriting) all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within 15 days
after the receipt of the Company’s notice; provided that in no event
shall such Demand Registration be closed unless such notice has been provided
at least 20 days prior to the closing thereof.  
Notwithstanding anything herein to the contrary, unless otherwise
consented to by the holders of Registrable Securities initially requesting such
registration, no other holder to whom such 
notice is provided may include in such Demand Registration a greater
percentage of such holder’s Registrable Securities than the percentage of
Registrable Securities included by the holders requesting such registration.

 

(b)   Long-Form Registrations.  The Boise Majority Holders shall be entitled
to request five (5) Long-Form Registrations and the Aldabra Majority
Holders shall be entitled to request two (2) Long-Form Registrations;
provided that the aggregate offering value of the Registrable Securities
requested to be registered in any Long-Form Registration must equal at
least $25,000,000.  All Long-Form Registrations
shall be underwritten registrations if requested by the holders of a majority
of the Registrable Securities initially requesting such registration.  The Company shall pay all Registration
Expenses in connection with any registration initiated as a Long-Form Registration,
whether or not it becomes effective.  A
registration shall not count as one of the permitted Long-Form Registrations
until it has become effective and no registration shall count as one of the
permitted Long-Form Registrations unless the holders of Registrable
Securities are able to register and sell at least 90% of the Registrable
Securities requested to be included in such registration within the price range
acceptable to the holders of a majority of the Registrable Securities initially
requesting registration (with it being understood and agreed that a holder of
Registrable Securities instituting a Demand Registration shall be entitled to
withdraw his, her or its request to effect a Long-Form Registration at any
time prior to the effectiveness thereof, in which case such registration shall
not proceed with respect to any holder and such registration shall not
thereafter count as one of the permitted Long-Form Registrations).  In no event shall any holder of Registrable
Securities have liability to another for determining to withdraw its request
for registration.

 

(c)   Short-Form Registrations.  In addition to the Long-Form Registrations
provided pursuant to Section 1(b), the Boise Majority Holders shall
be entitled to request an unlimited number of Short-Form Registrations,
and the Aldabra Majority Holders shall be entitled to request an unlimited
number of Short-Form Registrations, and, in each case, the Company shall
pay all Registration Expenses provided that the aggregate offering value
of the Registrable Securities requested to be registered in any Short-Form Registration
must equal at least $5,000,000.  The
Company shall use its reasonable best efforts to make Short-Form Registrations
on Form S-3 available for the sale of Registrable Securities as promptly
as practicable under applicable law. 
Each of the Boise Majority Holders and the Aldabra Majority Holders may,
in connection with any Demand Registration requested by such holders that is a
Short-Form Registration, require the Company to file such Short-Form Registration
with the Securities and Exchange Commission in accordance with and pursuant to Rule 415
under the Securities Act (or any successor rule then in effect) (a “Shelf
Registration”).

 

(d)   Priority on Demand
Registrations.  The Company shall not
include in any Demand Registration any securities which are not Registrable
Securities without the prior written consent of the holders of at least 50% of
the Registrable Securities included in such registration.  If a Demand Registration is an underwritten
offering and the managing underwriters advise the Company that in their opinion
the number of Registrable Securities and, if permitted hereunder, other
securities requested to be included in such offering exceeds the number of
Registrable Securities and other securities, if any, which can be sold in an
orderly manner in such offering within the price range acceptable to the
holders of a majority of the Registrable Securities initially requesting
registration, the Company will include in such registration (i) first, the
number of Registrable Securities requested to be included in such registration 

 

2

 

which in the
opinion of such underwriters can be sold in such manner in the acceptable price
range, pro rata among the respective holders thereof on the basis of the number
of Registrable Securities owned by each such holder and (ii) second, other
securities requested to be included in such Demand Registration, pro rata among
the holders of such securities on the basis of the number of such securities
owned by each such holder; provided, however, that in the event that any
holder of Aldabra Registrable Securities was prevented from participating in a
Demand Registration or Piggyback Registration on or prior to the date the
Aldabra Registrable Securities are released from escrow (a “Prior
Registration”) as a result of his, her or its shares being held in a share
escrow account, the pro rata share referenced in clause (i) shall be, for
each holder of Registrable Securities requesting inclusion of Registrable Securities
in the first Demand Registration after the date the Aldabra Registrable
Securities are released from escrow (the “Escrow Release Date”),
determined as such holder’s Revised Pro Rata Share; provided further,
however that the foregoing proviso shall be disregarded if the Revised Pro Rata
Share was applied in a Piggyback Registration prior to such Demand
Registration.  Notwithstanding anything
herein to the contrary, if the managing underwriters determine that the
inclusion of the number of  Aldabra Registrable
Securities or Registrable Securities held by management of the Company proposed
to be included in any such offering would adversely affect the marketability of
such offering, the Company may exclude such number of Aldabra Registrable
Securities or Registrable Securities held by management as necessary or
desirable to negate such adverse impact; provided that the provisions of
this sentence shall not, to the extent applicable to holders of Aldabra
Registrable Securities, apply in a Demand Registration effected by holders of
Aldabra Registrable Securities in accordance with the first sentence of Section 1(b) or
the first sentence of Section 1(c). 
Any Persons other than holders of Registrable Securities who participate
in Demand Registrations which are not at the Company’s expense must pay their
share of the Registration Expenses as provided in Section 5 hereof.

 

(e)   Restrictions on Demand
Registrations.  The Company shall not
be obligated to effect any Demand Registration within 90 days after the effective
date of a previous Demand Registration. 
The Company may postpone for up to 60 days the filing or the
effectiveness of a registration statement for a Demand Registration if the
Company’s Board determines in its reasonable good faith judgment that such
Demand Registration would reasonably be expected to have a material adverse
effect on any proposal or plan by the Company or any of its Subsidiaries to
engage in any acquisition of assets or stock from a third party (other than in
the ordinary course of business) or any merger, consolidation, tender offer,
recapitalization, reorganization or similar transaction or require the Company
to disclose any material nonpublic information which would reasonably be likely
to be detrimental to the Company and its Subsidiaries; provided that in
such event, the holders of Registrable Securities initially requesting such
Demand Registration shall be entitled to withdraw such request and, if such
request is withdrawn, such Demand Registration shall not count as one of the
permitted Demand Registrations hereunder and the Company shall pay all
Registration Expenses in connection with such registration; provided
further that in no event shall the restrictions set forth in this sentence be
deemed to apply to a redemption or repurchase of, or plan to redeem or
repurchase, capital stock, options or warrants of the Company.  The Company may delay a Demand Registration
hereunder only once in any twelve-month period. 
In addition, notwithstanding any provision herein to the contrary,
neither the Boise Majority Holders, on the one hand, or the Aldabra Majority
Holders, on the other hand, shall be entitled to request any Demand
Registration otherwise permitted to be requested hereunder by such group within
the twelve (12) month period following any request by such group for a Demand
Registration in which (i) the aggregate offering value of the Registrable
Securities of such group requested to be registered by such group in such prior
Demand Registration was less than $25,000,000 and/or (ii) such group
requested that any of its Registrable Securities consisting of warrants
exercisable for shares of Common Stock be included in such prior Demand
Registration.

 

3

 

(f)    Selection of Underwriters.  The holders of a majority of the Registrable
Securities requesting a Demand Registration shall be entitled to select the
underwriters to manage such Demand Registration.

 

2.     Piggyback Registrations.

 

(a)   Right to
Piggyback.  Whenever the Company proposes
to register any of its equity securities (including any proposed registration
of the Company’s securities by any third party) under the Securities Act (other
than (i) pursuant to a Demand Registration, which is governed by Section 1,
or (ii) pursuant to a registration on Form S-4 or S-8 or any
successor or similar forms), whether or not for sale for its own account, and
the registration form to be used may be used for the registration of
Registrable Securities (a “Piggyback Registration”), the Company shall
give prompt written notice to all holders of Registrable Securities of its
intention to effect such a registration (which notice shall be given at least
20 days prior to the date the applicable registration statement is to be filed)
and, subject to Sections 2(c) and 2(d), shall include
in such registration (and in all related registrations and qualifications under
state blue sky laws or in compliance with other registration requirements and
in any related underwriting) all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within 15 days
after the receipt of the Company’s notice. 
Notwithstanding the provisions of this Section 2(a) to
the contrary, as long as the Company determines that such delay would not
impair the ability of holders of Registrable Securities to participate in such
registration (e.g., because the registration statement therefor is likely to be
reviewed by the Securities and Exchange Commission and/or such offering will not
be completed until at least 20 days after the registration statement therefor
is filed), the Company may delay the notice of a Piggyback Registration until
the day after the registration statement with respect to such Piggyback
Registration is filed, in which case, subject to the remainder of this Section 2,
the Company shall include in such registration (and in all related
registrations and qualifications under state blue sky laws or in compliance
with other registration requirements and in any related underwriting) all
Registrable Securities with respect to which the Company has received written
requests for inclusion therein within 15 days after the receipt of the Company’s
notice; provided that in no event shall such Demand Registration be
closed unless such notice has been provided at least 20 days prior to the
closing thereof.

 

(b)   Piggyback Expenses.  Subject to the qualifications set forth in Section 5(b),
the Registration Expenses of the holders of Registrable Securities shall be
paid by the Company in all Piggyback Registrations.

 

(c)   Priority on Primary
Registrations.  If a Piggyback
Registration is an underwritten primary registration on behalf of the Company,
and the managing underwriters advise the Company that in their opinion the
number of securities requested to be included in such registration exceeds the
number which can be sold in an orderly manner in such offering within a price
range acceptable to the Company, the Company shall include in such registration
(i) first, the securities the Company proposes to sell, (ii) second,
the Registrable Securities requested to be included in such registration, pro
rata among the holders of such Registrable Securities on the basis of the
amount of such securities owned by each such holder, and (iii) third, the
other securities requested to be included in such registration pro rata among
the holders of such securities on the basis of the amount of such securities
shares owned by each such holder; provided, however, that in the event
that any holder of Aldabra Registrable Securities was prevented from
participating in a Prior Registration as a result of his, her or its shares
being held in a share escrow account, the pro rata share referenced in clause (ii) shall
be, for each holder of Registrable Securities requesting inclusion of
Registrable Securities in the first Piggyback Registration after the Escrow
Release Date, determined as such holder’s Revised Pro Rata Share; provided
further, however that the foregoing proviso shall be disregarded if the Revised
Pro Rata Share was applied in a Demand Registration or another Piggyback
Registration prior to such Piggyback Registration.  Notwithstanding anything herein to 

 

4

 

the contrary,
if the managing underwriters determine that the inclusion of the Aldabra
Registrable Securities or Registrable Securities held by management of the
Company proposed to be included in any such offering would adversely affect the
marketability of such offering, the Company may exclude such number of Aldabra
Registrable Securities or Registrable Securities held by management of the
Company pro rata as necessary or desirable to negate such adverse impact.

 

(d)   Priority on Secondary
Registrations.  If a Piggyback
Registration is an underwritten secondary registration on behalf of holders of
the Company’s securities other than a Demand Registration (a “Secondary
Registration”), and the managing underwriters advise the Company that in
their opinion the number of securities requested to be included in such
registration exceeds the number which can be sold without adversely affecting
the marketability of the offering, the Company shall include in such
registration (i) first, except to the extent otherwise previously agreed
to by holders of a  majority of the
Registrable Securities, the securities requested to be included therein by the
holders requesting such registration, together with the Registrable Securities
requested to be included in such registration, pro rata among the holders of
such securities and Registrable Securities on the basis of the amount of such
securities owned by each such holder, and (ii) second, other securities
requested to be included in such registration pro rata among the holders of
such securities on the basis of the amount of such securities owned by each
such holder; provided, however, that in the event that any holder of
Aldabra Registrable Securities was prevented from participating in a Prior
Registration as a result of his, her or its shares being held in a share escrow
account, the pro rata share referenced in clause (i) shall be, for each
holder of Registrable Securities requesting inclusion of Registrable Securities
in the first Piggyback Registration after the Escrow Release Date, determined
as such holder’s Revised Pro Rata Share; provided further, however that
the foregoing proviso shall be disregarded if the Revised Pro Rata Share was
applied in a Demand Registration or another Piggyback Registration prior to
such Piggyback Registration.  Notwithstanding
anything herein to the contrary, if the managing underwriters determine that
the inclusion of the Aldabra Registrable Securities or Registrable Securities
held by management of the Company proposed to be included in any such offering
would adversely affect the marketability of such offering, the Company may
exclude such number of Aldabra Registrable Securities or Registrable Securities
held by management of the Company pro rata as necessary or desirable to negate
such adverse impact.

 

(e)   Selection of Underwriters.  If any Piggyback Registration is an
underwritten offering, the Company will have the right to select the investment
banker(s) and manager(s) for the offering.

 

(f)    Obligations of Seller.
During such time as any holder of Registrable Securities may be engaged in a
distribution of securities pursuant to an underwritten Piggyback Registration,
such holder shall distribute such securities only under the registration
statement and solely in the manner described in the registration statement.

 

(g)   Right to Terminate
Registration.  The Company shall have
the right to terminate or withdraw any registration initiated by it under this Section 2
whether or not any holder of Registrable Securities has elected to include
securities in such registration.  The
Registration Expenses of such withdrawn registration shall be borne by the
Company in accordance with Section 5 hereof.

 

3.     Holdback Agreements.

 

(a)   To the extent not
inconsistent with applicable law, each holder of Registrable Securities shall
not sell, transfer, make any short sale, grant any option for the purchase, or
enter into any hedging or similar transaction with the same economic effect as
a sale (including sales pursuant to Rule 144) (a “Sale Transaction”)
of equity securities of the Company, or any securities, warrants, options or
rights convertible into or exchangeable or exercisable for such securities,
during the seven days prior to 

 

5

 

and the 90-day
period beginning on the effective date of all underwritten Demand Registrations
and all underwritten Piggyback Registrations, except as part of such
underwritten registration or unless the underwriters managing such public
offering agree in writing; provided that, in each case, such
restrictions with respect to a particular Demand Registration or Piggyback
Registration (as applicable) shall automatically lapse ten (10) days after
such registration is withdrawn; provided further that, in connection
with a Demand Registration or any Piggyback Registration, the holders of
Registrable Securities requesting such registration shall be entitled, by
notice to the holders of Registrable Securities, to begin the lock-up period
for each holder of Registrable Securities on the date that the registration
statement with respect to such Demand Registration is filed with the Securities
and Exchange Commission or such later date after the filing of, but prior to
the effectiveness of, such registration statement as may be determined by the
holders of Registrable Securities requesting such Demand Registration.  Furthermore, upon notice from any holder(s) of
Registrable Securities subject to a Shelf Registration and who are otherwise
entitled to initiate a Shelf Registration hereunder that such holder(s) intend
to effect an underwritten distribution of Registrable Securities pursuant to
such Shelf Registration (upon receipt of which, the Company will promptly
notify all other holders of Registrable Securities of the date of the
commencement of such distribution), to the extent not inconsistent with
applicable law, each holder of Registrable Securities shall not engage in a
Sale Transaction of equity securities of the Company, or any securities,
warrants, options or rights convertible into or exchangeable or exercisable for
such securities, during the seven days prior to and the 90-day period beginning
on the date of the commencement of such distribution.   If (1) the Company issues an earnings
release or other material news or a material event relating to the Company and
its Subsidiaries occurs during the last 17 days of any holdback period
described in clause (ii) above, or (2) prior to the expiration of any
holdback period described in clause (ii) above, the Company announces that
it will release earnings results during the 16-day period beginning upon the
expiration of such period, then to the extent necessary for a managing or
co-managing underwriter of a registered offering required hereunder to comply
with NASD Rule 2711(f)(4), the holdback periods described in clauses (i) and
(ii) above shall be extended until 18 days after the earnings release or
the occurrence of the material news or event, as the case may be (such period
referred to herein as the “Holdback Extension”).  The Company may impose stop-transfer
instructions with respect to the securities subject to the foregoing
restriction until the end of such period, including any period of Holdback
Extension.

 

(b)   Notwithstanding anything
herein to the contrary, the restrictions in Section 3(a) shall
not apply in the case of any holder of Registrable Securities, to the extent
that such holder provides to the Company an opinion of nationally recognized
outside counsel to the effect that such holder is prohibited by applicable law
or exercise of fiduciary duties from agreeing to withhold Registrable
Securities from sale or is acting in its capacity as a fiduciary or investment
advisor.  Without limiting the scope of
the term “fiduciary,” a holder shall be deemed to be acting as a fiduciary or
an investment advisor if its actions or the Registrable Securities proposed to
be sold are subject to the Employee Retirement Income Security Act of 1974, as
amended, or the Investment Company Act of 1940, as amended, or if such
Registrable Securities are held in a separate account under applicable
insurance law or regulation.

 

(c)   The Company (i) shall
not effect any public sale or distribution of its equity securities, or any
securities convertible into or exchangeable or exercisable for such securities,
during (x) the seven days prior to and the 90-day period beginning on the
effective date of all underwritten Demand Registrations, underwritten Piggyback
Registrations, except as part of such underwritten registration or unless the
underwriters managing such public offering agree in writing and (y) upon
notice from any holder(s) of Registrable Securities subject to a Shelf
Registration and who are otherwise entitled to initiate a Shelf Registration
hereunder that such holder(s) intend to effect an underwritten
distribution of Registrable Securities pursuant to such Shelf Registration
(upon receipt of which, the Company will promptly notify all other holders of
Registrable Securities of the date of the commencement of such distribution),
the seven days prior to and the 90-day period beginning on the date of the
commencement of such distribution, unless, in each case, the underwriters
managing the registered public offering 

 

6

 

otherwise
agree in writing (and, in each case, except as part of such underwritten
registration or pursuant to registrations on Form S-8 or any successor
form), and (ii) shall use reasonable best efforts to cause each holder of
at least 1% (on a fully-diluted basis) of its Common Stock, or any securities
convertible into or exchangeable or exercisable for Common Stock, purchased
from the Company at any time after the date of this Agreement (other than in a
registered public offering) to agree not to effect any public sale or
distribution (including sales pursuant to Rule 144) of any such securities
during such period (as extended by any Holdback Extension), except as part of
such underwritten registration, if otherwise permitted, unless the underwriters
managing the registered public offering otherwise agree in writing.  Notwithstanding clause (i)(x) foregoing,
in connection with a Demand Registration, the holders of Registrable Securities
requesting such registration shall be entitled, by notice to the Company, to
begin the lock-up period for the Company on the date that the registration
statement with respect to such Demand Registration is filed with the Securities
and Exchange Commission or such later date after the filing of, but prior to
the effectiveness of, such registration statement as may be determined by the
holders of Registrable Securities requesting such Demand Registration.

 

(d)   Each of the Aldabra
Shareholders and each holder of Registrable Securities that is a member of the
Company’s management agrees that the restrictions on transfer in this Section 3
are in addition to, and not in lieu of, any other restrictions on transfer that
such Aldabra Shareholder or such management holder may have agreed to with
respect to its shares of Common Stock and warrants exercisable for Common
Stock.

 

4.     Registration Procedures.  Whenever the holders of Registrable
Securities have requested that any Registrable Securities be registered
pursuant to this Agreement, the Company shall use its reasonable best efforts
to effect the registration and the sale of such Registrable Securities in accordance
with the intended method of disposition thereof, and pursuant thereto the
Company shall as expeditiously as practicable:

 

(a)   in accordance with the
Securities Act and all applicable rules and regulations promulgated
thereunder, prepare and file with the Securities and Exchange Commission a
registration statement, and all amendments and supplements thereto and related
prospectuses, with respect to such Registrable Securities and use its
reasonable best efforts to cause such registration statement to become
effective (provided that before filing a registration statement or
prospectus or any amendments or supplements thereto, the Company shall furnish
to the counsel selected by the holders of a majority of the Registrable
Securities covered by such registration statement copies of all such documents
proposed to be filed), and include in any Short-Form Registration such
additional information reasonably requested by a majority of the Registrable
Securities registered under the applicable registration statement, or the
underwriters, if any, for marketing purposes, whether or not required by
applicable securities laws, but only to the extent such information does not
contravene applicable securities laws or include information not readily in the
possession of the Company;

 

(b)   notify each holder of
Registrable Securities of the effectiveness of each registration statement
filed hereunder and prepare and file with the Securities and Exchange
Commission such amendments and supplements to such registration statement and
the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period of not less than 180 days (or in
the case of a Shelf Registration, ending on the earliest of (1) the date
on which all Registrable Securities have been sold pursuant to the Shelf
Registration or have otherwise ceased to be Registrable Securities, (2) the
second anniversary of the effective date of such Shelf Registration, (3) such
other date determined by the holders of a majority of the Registrable
Securities requesting such Shelf Registration and (4) when all such
Registrable Securities are freely saleable under Rules 144 and 145 under
the Securities Act) and comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by such registration
statement during such period in accordance with 

 

7

 

the intended methods of
disposition by the sellers thereof set forth in such registration statement; provided,
however, that at any time, upon written notice to the participating
holders of Registrable Securities and for a period not to exceed sixty (60)
days thereafter (the “Suspension Period”), the Company may delay the
filing or effectiveness of any registration statement or suspend the use or
effectiveness of any registration statement (and the holders of Registrable
Securities hereby agree not to offer or sell any Registrable Securities
pursuant to such registration statement during the Suspension Period) if the
Company reasonably believes that there is or may be in existence material
nonpublic information or events involving the Company or any of its
Subsidiaries, the failure of which to be disclosed in the prospectus included
in the registration statement could result in a Violation (as defined in Section 6(a)).  During any such Suspension Period, and as may
be extended hereunder, the Company shall use its reasonable best efforts to
correct or update any disclosure causing the Company to provide notice of the
Suspension Period and to file and cause to become effective or terminate the
suspension of use or effectiveness, as the case may be, of the subject
registration statement.  In the event
that the Company shall exercise its right to delay or suspend the filing or
effectiveness of a registration hereunder, the applicable time period during
which the registration statement is to remain effective shall be extended by a
period of time equal to the duration of the Suspension Period.  The Company may extend the Suspension Period
for an additional consecutive sixty (60) days with the consent of the holders
of a majority of the Registrable Securities registered under the applicable
registration statement, which consent shall not be unreasonably withheld.  If so directed by the Company, all holders of
Registrable Securities registering shares under such registration statement
shall (i) not offer to sell any Registrable Securities pursuant to the
registration statement during the period in which the delay or suspension is in
effect after receiving notice of such delay or suspension; and (ii) use
their reasonable best efforts to deliver to the Company (at the Company’s
expense) all copies, other than permanent file copies then in such holders’
possession, of the prospectus relating to such Registrable Securities current
at the time of receipt of such notice;

 

(c)   furnish to each seller of
Registrable Securities thereunder such number of copies of such registration
statement, each amendment and supplement thereto, the prospectus included in
such registration statement (including each preliminary prospectus), each Free
Writing Prospectus and such other documents as such seller may reasonably
request in order to facilitate the disposition of the Registrable Securities
owned by such seller;

 

(d)   use its reasonable best
efforts to register or qualify such Registrable Securities under such other
securities or blue sky laws of such jurisdictions as any seller reasonably
requests and do any and all other acts and things which may be reasonably
necessary or advisable to enable such seller to consummate the disposition in
such jurisdictions of the Registrable Securities owned by such seller (provided
that the Company shall not be required to (i) qualify generally to do
business in any jurisdiction where it would not otherwise be required to
qualify but for this subsection or (ii) consent to general service of
process in any such jurisdiction or (iii) subject itself to taxation in
any such jurisdiction);

 

(e)   notify each seller of such
Registrable Securities, (i) promptly after it receives notice thereof, of
the date and time when such registration statement and each post-effective
amendment thereto has become effective or a prospectus or supplement to any
prospectus relating to a registration statement has been filed and when any
registration or qualification has become effective under a state securities or
blue sky law or any exemption thereunder has been obtained, (ii) promptly
after receipt thereof, of any request by the Securities and Exchange Commission
for the amendment or supplementing of such registration statement or prospectus
or for additional information, and (iii) at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of the
happening of any event as a result of which the prospectus included in such
registration statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading, and, at the
request of any such seller, the Company shall prepare a supplement or amendment
to such prospectus so that, as 

 

8

 

thereafter delivered to the
purchasers of such Registrable Securities, such prospectus shall not contain an
untrue statement of a material fact or omit to state any fact necessary to make
the statements therein not misleading;

 

(f)    prepare and file promptly
with the Securities and Exchange Commission, and notify such holders of
Registrable Securities prior to the filing of, such amendments or supplements
to such registration statement or prospectus as may be necessary to correct any
statements or omissions if, at the time when a prospectus relating to such
securities is required to be delivered under the Securities Act, when any event
has occurred as the result of which any such prospectus or any other prospectus
as then in effect would include an untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make
the statements therein not misleading, and, in case an of such holders of
Registrable Securities or any underwriter for any such holders is required to
deliver a prospectus at a time when the prospectus then in circulation is not
in compliance with the Securities Act or the rules and regulations
promulgated thereunder, the Company shall use its reasonable best efforts to
prepare promptly upon request of any such holder or underwriter such amendments
or supplements to such registration statement and prospectus as may be
necessary in order for such prospectus to comply with the requirements of the
Securities Act and such rules and regulations;

 

(g)   cause all such Registrable
Securities to be listed on each securities exchange on which similar securities
issued by the Company are then listed;

 

(h)   provide a transfer agent and
registrar for all such Registrable Securities not later than the effective date
of such registration statement;

 

(i)    enter into and perform such
customary agreements (including underwriting agreements in customary form) and
take all such other actions as the holders of a majority of the Registrable
Securities being sold or the underwriters, if any, reasonably request in order
to expedite or facilitate the disposition of such Registrable Securities
(including, without limitation, participation in “road shows,” investor
presentations and marketing events and effecting a stock split or a combination
of shares);

 

(j)    make available for
inspection by any seller of Registrable Securities, any underwriter
participating in any disposition pursuant to such registration statement and
any attorney, accountant or other agent retained by any such seller or
underwriter, all financial and other records, pertinent corporate documents and
properties of the Company, and cause the Company’s officers, directors,
employees and independent accountants to supply all information reasonably
requested by any such seller, underwriter, attorney, accountant or agent in
connection with such registration statement;

 

(k)   take all reasonable actions
to ensure that any Free-Writing Prospectus utilized in connection with any
Demand Registration or Piggyback Registration hereunder complies in all
material respects with the Securities Act, is filed in accordance with the Securities
Act to the extent required thereby, is retained in accordance with the
Securities Act to the extent required thereby and, when taken together with the
related prospectus, will not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading;

 

(l)    otherwise use its
reasonable best efforts to comply with all applicable rules and
regulations of the Securities and Exchange Commission, and make available to
its security holders, as soon as reasonably practicable, an earnings statement
covering the period of at least twelve months beginning with the first day of
the Company’s first full calendar quarter after the effective date of the 

 

9

 

registration statement, which
earnings statement shall satisfy the provisions of Section 11(a) of
the Securities Act and Rule 158 thereunder;

 

(m)  permit any holder of
Registrable Securities which holder, in its sole and exclusive judgment, might
be deemed to be an underwriter or a controlling person of the Company, to
participate in the preparation of such registration or comparable statement and
to require the insertion therein of material, furnished to the Company in
writing, which in the reasonable judgment of such holder and its counsel should
be included;

 

(n)   the Company agrees to file
all reports and supplements which are required to be filed by the Company under
the Securities Act so that it may be eligible to effect any registration of
Registrable Securities on Form S-3 or any comparable form, successor form
or other form if such form is available for use by the Company;

 

(o)   obtain one or more comfort
letters, dated the effective date of such registration statement (and, if such
registration includes an underwritten public offering, dated the date of the
closing under the underwriting agreement), signed by the Company’s independent
public accountants (and, unless waived in writing by holders of a majority of
the Registrable Securities participating in such registration, on which the
holders of Registrable Securities participating in such registration are
expressly entitled to rely) in the then-current customary form and covering such
matters of the type customarily covered from time to time by comfort letters as
the holders of a majority of the Registrable Securities being sold reasonably
request;

 

(p)   provide a legal opinion of
the Company’s outside counsel (and, unless waived in writing by holders of a
majority of the Registrable Securities participating in such registration, on
which the holders of Registrable Securities participating in such registration
are expressly entitled to rely), dated the effective date of such registration statement
(and, if such registration includes an underwritten public offering, dated the
date of the closing under the underwriting agreement), with respect to the
registration statement, each amendment and supplement thereto, the prospectus
included therein (including the preliminary prospectus) and such other
documents relating thereto in the then-current customary form and covering such
matters of the type customarily covered from time to time by legal opinions of
such nature; and

 

(q)   use its reasonable best
efforts to prevent the issuance of any stop order suspending the effectiveness
of a registration statement, or of any order suspending or preventing the use
of any related prospectus or suspending the qualification of any common stock
included in such registration statement for sale in any jurisdiction, and in
the event of the issuance of any such stop order or other such order the
Company shall advise such holders of Registrable Securities of such stop order
or other such order promptly after it shall receive notice or obtain knowledge
thereof and shall use its reasonable best efforts promptly to obtain the
withdrawal of such order.

 

If any such
registration or comparable statement refers to any holder by name or otherwise
as the holder of any securities of the Company and if, in its sole and
exclusive judgment, such holder is or might be deemed to be an underwriter or a
controlling person of the Company, such holder shall have the right to require (i) the
insertion therein of language, in form and substance satisfactory to such
holder and presented to the Company in writing, to the effect that the holding
by such holder of such securities is not to be construed as a recommendation by
such holder of the investment quality of the Company’s securities covered
thereby and that such holding does not imply that such holder shall assist in
meeting any future financial requirements of the Company, or (ii) in the
event that such reference to such holder by name or otherwise is not required
by the Securities Act or any similar Federal statute then in force, the
deletion of the reference to such holder; provided that with respect to
this clause (ii) such holder shall furnish to the

 

10

 

Company an
opinion of counsel to such effect, which opinion and counsel shall be
reasonably satisfactory to the Company.

 

5.     Registration Expenses.

 

(a)   Subject to Section 5(b),
all expenses incident to the Company’s performance of or compliance with this
Agreement, including without limitation all registration and filing fees, fees
and expenses of compliance with securities or blue sky laws, printing expenses,
travel expenses, filing expenses, messenger and delivery expenses, fees and
disbursements of custodians, fees and disbursements of counsel for the Company
and fees and disbursements of all independent certified public accountants,
underwriters (including, if necessary, a “qualified independent underwriter”
within the meaning of the rules of the National Association of Securities
Dealers, Inc.) (excluding underwriting discounts and commissions) and
other Persons retained by the Company (all such expenses being herein called “Registration
Expenses”), shall be borne by the Company, except as otherwise expressly
provided in this Agreement, except that the Company shall, in any event, pay
its internal expenses (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties), the
expense of any annual audit or quarterly review, the expense of any liability
insurance and the expenses and fees for listing the securities to be registered
on each securities exchange on which similar securities issued by the Company
are then listed or on the NASD automated quotation system (or any successor or
similar system).

 

(b)   In connection with each
Demand Registration, each Piggyback Registration and each Shelf Registration
(and each underwritten distribution of Registrable Securities pursuant to a
Shelf Registration), the Company shall reimburse the holders of Registrable
Securities included in such registration for the reasonable fees and
disbursements of (i) one counsel (in addition to local counsel) chosen by
the holders of a majority of the Registrable Securities included in such
registration and (ii) each additional counsel retained by any holder of
Registrable Securities, but in the case of this clause (ii) only to
the extent such fees and disbursements were incurred for the purpose of
rendering a legal opinion on behalf of such holder in connection with any
underwritten Demand Registration, underwritten Piggyback Registration or
underwritten distribution of Registrable Securities pursuant to a Shelf
Registration).  Otherwise, all fees and
expenses of such counsel shall be borne by the holder or holders of Registrable
Securities for whom such services were rendered.

 

(c)   To the extent Registration
Expenses are not required to be paid by the Company or, in accordance with the
last sentence of Section 5(b), borne by a particular holder of
Registrable Securities, each holder of securities included in any registration
hereunder shall pay those Registration Expenses allocable to the registration
of such holder’s securities so included, including any underwriting discounts
or commissions, and any Registration Expenses not so allocable shall be borne
by all sellers of securities included in such registration in proportion to the
aggregate selling price of the securities to be so registered.

 

6.     Indemnification.

 

(a)   The Company agrees to
indemnify, to the extent permitted by law, each holder of Registrable
Securities, its officers and directors and each Person who controls such holder
(within the meaning of the Securities Act) against all losses, claims, actions,
damages, liabilities and expenses caused by any of the following statements,
omissions or violations (each a “Violation”) by the Company:  (i) any untrue or alleged untrue
statement of material fact contained in any registration statement, prospectus,
preliminary prospectus or Free-Writing Prospectus or any amendment thereof or
supplement thereto or any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not
misleading, or (ii) any violation or alleged violation by the Company of
the 

 

11

 

Securities Act or any other
similar federal or state securities laws or any rule or regulation
promulgated thereunder applicable to the Company and relating to action or
inaction required of the Company in connection with any such registration,
qualification or compliance; provided that the Company shall have no
obligation to provide the indemnification set forth in this Section 6(a) to
any holder to the extent such Violation arose from a statement provided in
writing to the Company by such holder for inclusion in such registration
statement, prospectus, preliminary prospectus or Free-Writing Prospectus or any
amendment thereof or supplement thereto. 
The Company shall pay to each holder of Registrable Securities, its
officers and directors and each Person who controls such holder (within the
meaning of the Securities Act) entitled to such indemnification, as incurred,
any legal and any other expenses reasonably incurred in connection with
investigating, preparing or defending any such claim, loss, damage, liability
or action, except insofar as the same are caused by or contained in any
information furnished in writing to the Company by such holder expressly for use
therein.  In connection with an
underwritten offering, the Company shall indemnify such underwriters, their
officers and directors and each Person who controls such underwriters (within
the meaning of the Securities Act) to the same extent as provided above with
respect to the indemnification of the holders of Registrable Securities.

 

(b)   In connection with any
registration statement in which a holder of Registrable Securities is
participating, each such holder shall furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in
connection with any such registration statement or prospectus and, to the
extent permitted by law, shall indemnify the Company, its directors and
officers and each Person who controls the Company (within the meaning of the
Securities Act) against any losses, claims, damages, liabilities and expenses
resulting from any untrue or alleged untrue statement of material fact
contained in the registration statement, prospectus or preliminary prospectus
or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading, but only to the extent that such untrue
statement or omission is contained in any information or affidavit so furnished
in writing by such holder; provided that the obligation to indemnify
shall be individual, not joint and several, for each holder and shall be
limited to the net amount of proceeds received by such holder from the sale of
Registrable Securities pursuant to such registration statement.

 

(c)   Any Person entitled to
indemnification hereunder shall (i) give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification
(provided that the failure to give prompt notice shall not impair any
Person’s right to indemnification hereunder to the extent such failure has not
prejudiced the indemnifying party) and (ii) unless in such indemnified
party’s reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party. 
If such defense is assumed, the indemnifying party shall not be subject
to any liability for any settlement made by the indemnified party without its
consent (but such consent shall not be unreasonably withheld, conditioned or
delayed).  An indemnifying party who is
not entitled to, or elects not to, assume the defense of a claim shall not be
obligated to pay the fees and expenses of more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in
the reasonable judgment of any indemnified party a conflict of interest may
exist between such indemnified party and any other of such indemnified parties
with respect to such claim. In such instance, the conflicting indemnified
parties shall have a right to retain one separate counsel, chosen by the
holders of a majority of the Registrable Securities included in the
registration, at the expense of the indemnifying party.  No indemnifying party, in the defense of such
claim or litigation, shall, except with the consent of each indemnified party,
consent to the entry of any judgment or enter into any settlement which does
not include as an unconditional term thereof the giving by the claimant or
plaintiff to such indemnified party of a release from all liability in respect
to such claim or litigation.

 

12

 

(d)   If the indemnification
provided for in this Section 6 is held by a court of competent
jurisdiction to be unavailable to an indemnified party or is otherwise
unenforceable with respect to any loss, claim, damage, liability or action
referred to herein, then the indemnifying party, in lieu of indemnifying such
indemnified party hereunder, shall contribute to the amounts paid or payable by
such indemnified party as a result of such loss, claim, damage, liability or
action in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the
other hand in connection with the statements or omissions which resulted in
such loss, claim, damage, liability or action as well as any other relevant
equitable considerations; provided that the maximum amount of liability
in respect of such contribution shall be limited, in the case of each seller of
Registrable Securities, to an amount equal to the net proceeds actually
received by such seller from the sale of Registrable Securities effected
pursuant to such registration.  The
relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified
party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.  The parties hereto agree that it would not be
just or equitable if the contribution pursuant to this Section 6(d) were
to be determined by pro rata allocation or by any other method of allocation
that does not take into account such equitable considerations.  The amount paid or payable by an indemnified
party as a result of the losses, claims, damages, liabilities or expenses
referred to herein shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending against any action or claim which is the subject hereof.  No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who is not
guilty of such fraudulent misrepresentation.

 

(e)   The indemnification and
contribution provided for under this Agreement shall remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified
party or any officer, director or controlling Person of such indemnified party
and shall survive the transfer of securities.

 

(f)    No indemnifying party shall, except with
the consent of the indemnified party, consent to the entry of any judgment or
enter into any settlement that does not include as an unconditional term
thereof giving by the claimant or plaintiff to such indemnified party of a
release from all liability in respect to such claim or litigation.

 

7.     Participation in
Underwritten Registrations; Shelf Registrations.

 

(a)   Participation in
Underwritten Registrations.

 

(i)            No
Person may participate in any registration hereunder which is underwritten
unless such Person (i) agrees to sell such Person’s securities on the
basis provided in any underwriting arrangements approved by the Person or
Persons entitled hereunder to approve such arrangements (including pursuant to
any over-allotment or “green shoe” option requested by the underwriters); provided
that no holder of Registrable Securities shall be required to sell more than
the number of Registrable Securities such holder has requested to include and (ii) completes
and executes all questionnaires, powers of attorney, custody agreements,
indemnities, underwriting agreements and other documents required under the
terms of such underwriting arrangements; provided that in no event shall
any holder of Registrable Securities be required to indemnify any underwriter
or other Person in any manner other than that which is specifically set forth
in Section 6(b) with respect to its indemnification
obligations to the Company and other holders of Registrable Securities.  Each holder of Registrable Securities agrees
to execute and deliver such other agreements as may be reasonably requested by
the Company and the lead 

 

13

 

managing underwriter(s) that are consistent with such holder’s
obligations under Section 3 or that are necessary to give further
effect thereto.  Without limiting any
other right or remedy to which a party hereto may be entitled, any holder of
Registrable Securities that does not comply with his, her or its obligations
under this Section 7(a)(i) shall not be entitled to
participate in the registration in question without violation of such holder’s
rights hereunder.

 

(ii)           Each
Person that is participating in any registration hereunder agrees that, upon
receipt of any notice from the Company of the happening of any event of the
kind described in Section 4(e) above, such Person will
forthwith discontinue the disposition of its Registrable Securities pursuant to
the registration statement until such Person’s receipt of the copies of a
supplemented or amended prospectus as contemplated by such Section 4(e).  In the event the Company shall give any such
notice, the applicable time period mentioned in Section 4(b) during
which a Registration Statement is to remain effective shall be extended by the
number of days during the period from and including the date of the giving of
such notice pursuant to this Section 7(b) to and including the
date when each seller of a Registrable Security covered by such registration
statement shall have received the copies of the supplemented or amended
prospectus contemplated by Section 4(e).

 

(b)   Shelf Take-Downs.  At any time that a Shelf Registration is
effective, if any holder or group of holders of Registrable Securities delivers
a notice to the Company (a “Take-Down Notice”) stating that it intends
to effect an offering or distribution of all or part of its Registrable
Securities included by it on the Shelf Registration, whether such offering or
distribution is underwritten or non-underwritten (a “Shelf Offering”)
and stating the number of the Registrable Securities to be included in the
Shelf Offering, then the Company shall amend or supplement the Shelf
Registration as may be necessary in order to enable such Registrable Securities
to be distributed pursuant to the Shelf Offering (taking into account the
inclusion of Registrable Securities by any other holders thereof pursuant to
this Section 7(b)).  In
connection with any Shelf Offering:

 

(i)            the
Company shall, promptly after receipt of a Take-Down Notice, deliver such
notice to all other holders of Registrable Securities included on such Shelf
Registration and permit each holder to include its Registrable Securities
included on the Shelf Registration in the Shelf Offering if such holder
notifies the proposing holders and the Company within three (3) days after
delivery of the Take-Down Notice to such holder, and

 

(ii)           in the event that the managing
underwriter(s), if any, advises the Company in writing that in its opinion the
number of Registrable Securities to be included in such Shelf Offering exceeds
the number of Registrable Securities which can be sold therein without
adversely affecting the marketability of the offering, such underwriter(s), if
any, may limit the number of shares which would otherwise be included in such
take-down offering in the same manner as is described in Section 1(d).

 

(c)   Notwithstanding anything in
this Section 7(b) to the contrary, in no event shall any
holder or group of holders be entitled to effect a Shelf Offering unless the
aggregate offering price for any such offering or distribution is not less than
$20,000,000.  No holder of Registrable
Securities that has included Registrable Securities pursuant to a Shelf
Registration shall be entitled to sell shares included as part of a Shelf
Registration unless included as part of a Shelf Offering.  Notwithstanding anything herein to the
contrary, unless otherwise consented to by the holders of Registrable
Securities initially requesting such Shelf Offering, no other holder to whom
such notice is provided may include in such Shelf Offering a greater percentage
of such holder’s Registrable Securities than the percentage of Registrable
Securities included by the holders requesting such Shelf Offering.

 

14

 

8.     Rule 144 and Rule 144A
Reporting.  With a view to making
available the benefits of certain rules and regulations of the Securities
and Exchange Commission that may permit the sale of Registrable Securities to
the public without registration, the Company agrees at all times after the
Company has filed a registration statement with the Securities and Exchange
Commission pursuant to the requirements of either the Securities Act or the
Exchange Act to use its reasonable best efforts to:  (a) make and keep public information
regarding the Company available as those terms are understood and defined in Rule 144
and Rule 144A under the Securities Act; (b) file with the Securities
and Exchange Commission in a timely manner all reports and other documents
required of the Company under the Securities Act and the Exchange Act; and (c) so
long as a holder owns any Registrable Securities, furnish to the holder
forthwith upon written request a written statement by the Company as to its
compliance with the reporting requirements of Rule 144 and Rule 144A,
and of the Securities Act and the Exchange Act, a copy of the most recent
annual or quarterly report of the Company, and such other reports and documents
so filed as a holder may reasonably request in availing itself of any rule or
regulation of the Securities and Exchange Commission allowing a holder to sell
any such securities without registration.

 

9.     Other Rights and
Restrictions.

 

(a)   Approval of Certain
Activities. For as long as the holders of Boise Registrable Securities own
at least 33% of the shares of Common Stock of the Company issued to holders of
Boise Registrable Securities as of the date hereof (determined after giving
effect to the issuance of Common Stock to Boise under the Purchase Agreement
and as equitably adjusted for any stock splits, stock combinations,
reorganizations, exchanges, merger, recapitalizations or similar transaction
after the date hereof), the Company shall not, and shall not permit any
Subsidiary to, and no officer, employee or agent of the Company or any
Subsidiary of the Company shall take, any of the following actions without the
affirmative written consent of the Boise Majority Holders:

 

(i)            directly
or indirectly declare or pay any dividends or make any distributions upon any
of its capital stock (or any series or class thereof) or other equity
securities, except that (a) the Company may declare and pay or make (x) dividends
or distributions payable in shares of Common Stock issued ratably upon the
outstanding shares of Common Stock and (y) dividends or distributions
payable in cash ratably upon the outstanding shares of Common Stock and (b) any
Subsidiary may declare and pay dividends or make distributions to the Company
or any wholly-owned direct or indirect Subsidiary of the Company;

 

(ii)           directly
or indirectly redeem, purchase or otherwise acquire, or permit any Subsidiary
to redeem, purchase or otherwise acquire, any of the Company’s or any
Subsidiary’s capital stock or other equity securities (including, without
limitation, warrants, options and other rights to acquire such capital stock or
other equity securities) or directly or indirectly redeem, purchase or make any
payments with respect to any stock appreciation rights, phantom stock plans or
similar rights or plans, except for (a) acquisitions of capital stock
pursuant to agreements or plans, including equity incentive agreements with
service providers, which allow the Company to repurchase shares of Common Stock
upon the termination of services or an exercise of the Company’s right of first
refusal upon a proposed transfer and (b) redemption, purchases or
acquisitions of Common Stock offered ratably to holders of the outstanding
shares of Common Stock.

 

(iii)          except
as expressly contemplated by this Agreement and the Purchase Agreement, authorize,
issue or enter into any agreement providing for the issuance (contingent or
otherwise) of, (a) any notes or debt securities containing equity or
voting features (including, without limitation, any notes or debt securities
convertible into or exchangeable for capital stock or other equity securities,
issued in connection with the issuance of capital stock or other equity 

 

15

 

securities or containing profit participation features) or (b) any
capital stock or other equity securities (or any securities convertible into or
exchangeable for any capital stock or other equity securities);

 

(iv)          make,
or permit any Subsidiary to make, any loans or advances to, guarantees for the
benefit of, or investments in, any Person (other than the Company or a
wholly-owned direct or indirect Subsidiary of the Company) outside of the
ordinary course of business, except for (i) reasonable advances to
employees in the ordinary course of business, (ii) acquisitions permitted
pursuant to subparagraph (viii) below, (iii) investments having a
stated maturity no greater than one year from the date the Company or any
Subsidiary makes such investment in (1) obligations of the United States
government or any agency thereof or obligations guaranteed by the United States
government, (2) certificates of deposit of commercial banks having
combined capital and surplus of at least $50 million, (3) commercial paper
with a rating of at least “Prime-1” by Moody’s Investors Service, Inc., or
(iv) loans for acquisitions of capital stock pursuant to agreements or
plans, including equity incentive agreements with service providers, which
allow the Company to repurchase shares of Common Stock upon the termination of
services or an exercise of the Company’s right of first refusal upon a proposed
transfer;

 

(v)           merge
or consolidate with any Person;

 

(vi)          sell,
lease or otherwise dispose of, or permit any Subsidiary to sell, lease or
otherwise dispose of, more than 25% of the consolidated assets of the Company
and its Subsidiaries (computed on the basis of book value, determined in
accordance with generally accepted accounting principles consistently applied,
or fair market value, determined by the Company’s board of directors in its
reasonable good faith judgment) in any transaction or series of related
transactions or sell or permanently dispose of any of its or any Subsidiary’s
Intellectual Property Rights (as defined in the Purchase Agreement);

 

(vii)         liquidate,
dissolve or effect a recapitalization or reorganization in any form of
transaction (including, without limitation, any reorganization into a limited
liability company, a partnership or any other non-corporate entity which is
treated as a partnership for federal income tax purposes);

 

(viii)        acquire
or enter into, or permit any Subsidiary to acquire or enter into, any interest
in any company or business (whether by a purchase of assets, purchase of stock,
merger or otherwise), except acquisitions for purchase consideration of not
more than $50,000,000 in the aggregate, or any joint venture;

 

(ix)           reclassify
or recapitalize any securities of the Company or any of its Subsidiaries;

 

(x)            enter
into, or permit any Subsidiary to enter into, the ownership, active management
or operation of any line of business other than the lines of business in which
those entities are currently engaged and other activities reasonably related
thereto;

 

(xi)           make
any amendment to or rescind (including, without limitation, in each case by
merger or consolidation) any provision of the certificate of incorporation,
articles of incorporation, bylaws or similar organizational documents of the
Company or any of its Subsidiaries, or file any resolution of the board of
directors, board of managers or similar 

 

16

 

governing body with the applicable secretary of state of the state of
formation of the Company or any of its Subsidiaries;

 

(xii)          enter
into, amend, modify or supplement, or permit any Subsidiary to enter into,
amend, modify or supplement, any agreement, transaction, commitment or
arrangement with any of its or any Subsidiary’s officers, directors, employees,
stockholders or Affiliates or with any individual related by blood, marriage or
adoption to any such individual or with any entity in which any such Person or
individual owns a beneficial interest, except for customary employment
arrangements and benefit programs on reasonable terms and except as otherwise
expressly contemplated by this Agreement or the Purchase Agreement;

 

(xiii)         create,
incur, guarantee, assume or suffer to exist, or permit any Subsidiary to
create, incur, guarantee, assume or suffer to exist, indebtedness for borrowed
money and/or capitalized lease obligations exceeding an aggregate principal
amount of  $50,000,000 outstanding
at any time on a consolidated basis, other than pursuant to credit facilities
in effect on the date of this Agreement (and refinancings thereof in an
aggregate principal amount not in excess thereof) and other than for the making
of capital expenditures approved by the Company’s Board;

 

(xiv)        issue
or sell, or permit any Subsidiary to issue or sell, any shares of the capital
stock, or rights to acquire shares of the capital stock, of any Subsidiary to
any Person other than the Company or a wholly-owned direct or indirect
Subsidiary of the Company;

 

(xv)         a
Sale of the Company; and/or

 

(xvi)        agree
to any of the foregoing.

 

(b)   Affirmative Covenants.  For as long as holders of Boise Registrable
Securities own at least 33% of the shares of Common Stock of the Company issued
to holders of Boise Registrable Securities as of the date hereof (determined
after giving effect to the issuance of Common Stock to Boise under the Purchase
Agreement and as equitably adjusted for any stock splits, stock combinations,
reorganizations, exchanges, merger, recapitalizations or similar transaction
after the date hereof), from and after the date hereof, the Company shall
unless it has received the prior written consent of Boise Majority Holders:

 

(i)            at
all times cause to be done all things necessary to maintain, preserve and renew
its corporate existence and all material licenses, authorizations and permits
necessary to the conduct of its businesses;

 

(ii)           maintain
and keep its material properties in good repair, working order and condition,
and from time to time make all necessary or desirable repairs, renewals and
replacements, so that its businesses may be properly and advantageously
conducted in all material respects at all times; provided that in no
event shall this Section 9(b) be deemed to require the making
of capital expenditures in excess of the amount approved by the Company’s
Board;

 

(iii)          pay
and discharge when payable all taxes, assessments and governmental charges
imposed upon its properties or upon the income or profits therefrom (in each
case before the same becomes delinquent and before penalties accrue thereon)
and all claims for labor, materials or supplies which if unpaid would by law
become a lien, encumbrance or  other
restriction upon any of its property, unless and to the extent that the same
are being contested in good faith and by appropriate proceedings and adequate
reserves (as determined in accordance 

 

17

 

with generally accepted accounting principles, consistently applied)
have been established on its books and financial statements with respect
thereto;

 

(iv)          comply
with all other material obligations which it incurs pursuant to any contract or
agreement, whether oral or written, express or implied, as such obligations
become due, unless and to the extent that the same are being contested in good
faith and by appropriate proceedings and adequate reserves (as determined in
accordance with generally accepted accounting principles, consistently applied)
have been established on its books and financial statements with respect
thereto;

 

(v)           comply
with all applicable laws, rules and regulations of all governmental
authorities, the violation of which would reasonably be expected to have a material
adverse effect upon the business, condition (financial or otherwise), operating
results, assets, liabilities, operations, business prospects or customer,
supplier or employee relations of the Company and its Subsidiaries taken as a
whole;

 

(vi)          apply
for and continue in force with good and responsible insurance companies
adequate insurance covering risks of such types and in such amounts as are
customary for well-insured companies of similar size engaged in similar lines
of business; and

 

(vii)         maintain
proper books of record and account which present fairly in all material
respects its financial condition and results of operations and make provisions
on its financial statements for all such proper reserves as in each case are
required in accordance with GAAP.

 

(c)   Financial Statements and
Other Information.  The Company shall
deliver to each holder of Registrable Securities holding more than 5% of the
Company’s Common Stock:

 

(i)            within
45 days after the end of each quarterly accounting period in each fiscal year,
unaudited consolidated statements of income and cash flows of the Company and
its Subsidiaries for such quarterly period and for the period from the
beginning of the fiscal year to the end of such quarter, and unaudited
consolidated balance sheets of the Company and its Subsidiaries as of the end
of such quarterly period, setting forth in each case comparisons to the
preceding fiscal year, and all such items shall be prepared in accordance with
GAAP and shall be certified by a senior executive officer of the Company; provided
that, for as long as the Company is filing quarterly reports on From 10-Q
pursuant to the Exchange Act, the Company’s obligations under this clause (i) shall
be deemed satisfied by timely filing of such report;

 

(ii)           within
90 days after the end of each fiscal year, consolidated statements of income,
cash flows and shareholders’ equity of the Company and its Subsidiaries for
such fiscal year, and consolidated balance sheets of the Company and its
Subsidiaries as of the end of such fiscal year, setting forth in each case
comparisons to the preceding fiscal year, all prepared in accordance with GAAP,
and accompanied by (a) with respect to the consolidated portions of such
statements, an opinion containing no material exceptions or qualifications
(except for qualifications regarding specified contingent liabilities) of an
independent accounting firm of recognized national standing, and (b) when
applicable, a copy of such firm’s annual management letter to the Company’s
Board; provided that, for as long as the Company is filing annual
reports on From 10-K pursuant to the Exchange Act, the Company’s obligations
under this clause (ii) shall be deemed satisfied by timely filing of such
report;

 

18

 

(iii)          promptly
upon receipt thereof, any additional reports, management letters or other
detailed information concerning significant aspects of the Company’s and/or any
of its Subsidiaries’ operations or financial affairs given to the Company’s Audit
Committee by its independent accountants (and not otherwise contained in other
materials provided hereunder);

 

(iv)          not
later than 45 days after the beginning of each fiscal year of the Company, an
annual budget prepared on a monthly basis for the Company and its Subsidiaries
for such fiscal year (displaying anticipated statements of income and cash
flows and balance sheets), and promptly upon preparation thereof any other
significant budgets prepared by the Company and any revisions of such annual or
other budgets; and

 

(v)           with
reasonable promptness, such other information and financial data concerning the
Company and its Subsidiaries as any Person entitled to receive information
under this Section 9(c) may reasonably request.

 

Each of the
financial statements referred to in subparagraphs (i) and (ii) above
shall fairly present in all material respects in accordance with GAAP, the
financial condition at such date and the results of operations and cash flows
for such period, subject in the case of the unaudited financial statements to
absence of footnote disclosure and changes resulting from normal year-end
adjustments for recurring accruals (none of which would, alone or in the
aggregate, be materially adverse to the business, condition (financial or otherwise),
operating results, assets, liabilities, operations, business prospects or
customer, supplier or employee relations of the Company and its Subsidiaries
taken as a whole).

 

(d)   Inspection Rights.  The Company shall permit, upon reasonable
notice and during normal business hours, any Representatives designated by
Boise and each holder of Registrable Securities holding more than 5% of the
Common Stock as of such date, at such holder’s own expense, to (i) visit
and inspect any of the properties of the Company and its Subsidiaries, (ii) examine
the corporate and financial records of the Company and its Subsidiaries and
make copies thereof or extracts therefrom and (iii) discuss the affairs,
finances and accounts of any such corporations with the directors, officers,
key employees and independent accountants of the Company and its
Subsidiaries.  The presentation of an
executed copy of this Agreement by any such Person to the Company’s independent
accountants shall constitute the Company’s permission to its independent
accountants to participate in discussions with such Person.

 

(e)   Confidentiality.  To the extent that any such information made
available to any holder of Boise Registrable Securities pursuant to this Section 9
(including Section 9(c)) would require disclosure under Regulation
FD, such holder shall, as a condition to receiving any such information that is
not otherwise publicly available, agree in writing to keep such information
confidential and not disclose such information to any Person (i) unless
such Person agrees to keep such information confidential or (ii) except as
may be required by applicable law (including securities law).  Each holder of Boise Registrable Securities
party to this Agreement shall be deemed by its execution hereof to have
satisfied the condition referred to in this Section 9(e).  Any holder of Boise Registrable Securities
may, at any time and from time to time, deliver written notice to the Company
that it does not desire to receive all or any portion of any material non-public
information to which it is otherwise entitled pursuant to Section 9
(without prejudice to such holder’s right to receive such information in the
future).

 

(f)    Corporate Governance.  As long as any Boise Registrable Securities
are issued and outstanding, the Company will not, without the prior written
consent of the Boise Majority Holders (which may be withhold in their sole and
absolute discretion), take, or cause to be taken, directly or indirectly, any
action, including making or failing to make any election under the law of any
state, which has the effect, directly or indirectly, of restricting or limiting
the ability of any holder of Boise Registrable 

 

19

 

Securities freely to sell,
transfer, assign, pledge or otherwise dispose of shares of the Company’s
capital stock or would restrict or limit the rights of any transferee of any
holder of Boise Registrable Securities as a holder of the Company’s capital
stock, other than the restrictions expressly agreed to herein by Boise which
are applicable to the holders of Boise Registrable Securities.  Without limiting the generality of the
foregoing, the Company will not, as long as any Boise Registrable Securities are
issued and outstanding, without the prior written consent of the Boise Majority
Holders (which may be withhold in their sole and absolute discretion), take any
action, or take any action to recommend to its stockholders any action, which
would, among other things, limit the legal rights of, or deny any benefit to,
any holder of Boise Registrable Securities as a stockholder of the Company
either (i) solely as a result of the amount of Common Stock owned by Boise
or (ii) in a manner not applicable to the Company’s stockholders
generally.

 

(g)   Information to Competitor.  The Company may, without violation of this Section 9,
refuse to provide any information or grant access to any Person that is a
competitor or its Representatives to the extent it determines that provision of
such information or access to such Person or its Representatives would be
reasonably likely to cause economic or competitive harm to the Company or its
Subsidiaries or would be reasonably likely to result in a violation of
applicable law; provided that, no Person or its Representatives may be
prevented from receiving such information or access as a result of the Company’s
determination that provision of such information or access would cause a
violation of applicable securities law if such Person or its Representatives
acknowledge in writing the restrictions under applicable securities law about
trading on material nonpublic information.

 

10.   Board Representatives.  Subject to the limitations set forth in this Section 10,
the Boise Majority Holders shall have the right to designate not less than the
Boise Applicable Number of representatives for election to the Board of the
Company (individually a “Boise Board Representative” and collectively
the “Boise Board Representatives”) and the Aldabra Majority Holders
shall have the right to designate not less than the Aldabra Applicable Number
of representatives for election to the Board of the Company (individually an “Aldabra
Board Representative” and collectively the “Aldabra Board
Representatives”); provided that (x) from time to time, the
Boise Majority Holders may elect to designate any lesser number of
representatives for election to the Board of the Company (e.g., a number of
representatives less than the Boise Applicable Number including, if the Boise
Majority Holders so elect, zero representatives), and any such election by the
Boise Majority Holders to designate any lesser number of representatives shall
in no event operate as a waiver of their right hereunder to thereafter
designate not less than the Boise Applicable Number of representatives for
election to the Board of the Company or otherwise operate to preclude the Boise
Majority Holders from fully exercising their rights under this Section 10
and (y) from time to time, the Aldabra Majority Holders may elect to
designate any lesser number of representatives for election to the Board of the
Company (e.g., a number of representatives less than the Aldabra Applicable
Number including, if the Aldabra Majority Holders so elect, zero
representatives), and any such election by the Aldabra Majority Holders to
designate any lesser number of representatives shall in no event operate as a
waiver of their right hereunder to thereafter designate not less than the
Aldabra Applicable Number of representatives for election to the Board of the Company
or otherwise operate to preclude the Aldabra Majority Holders from fully
exercising their rights under this Section 10.  The terms and conditions governing the
election, term of office, filling of vacancies and other features of such
directorships shall be as follows:

 

(a)   Interim Appointment of
Directors.  From and after the date
hereof (the “Beginning Date”) until the Boise Expiration Date, the Boise
Majority Holders may nominate not less than the Boise Applicable Number of
Boise Board Representatives to be elected to the Board.  From and after the Beginning Date until the
Aldabra Expiration Date, the Aldabra Majority Holders may nominate not less
than the Aldabra Applicable Number of Aldabra Board Representatives to be
elected to the Board.  Subject only to
such actions not being in violation of the fiduciary duties of members of the
Company’s

 

20

 

Board to the Company, the Company shall take
all action necessary such that the number of directors on the Board of the
Company shall (if necessary) be increased such that the Boise Applicable Number
of Boise Board Representatives and the Aldabra Applicable Number of Aldabra
Board Representatives may then serve on the Board and such vacancies shall be
filled by the designees of the Boise Majority Holders or the Aldabra Majority
Holders, as applicable, effective as of the day following the Beginning Date (or,
if later, the date that the Boise Majority Holders determine to appoint such
Boise Board Representative or the date that the Aldabra Majority Holders
determine to appoint such Aldabra Board Representative); provided that
if the Company avoids its obligations under this sentence or this Section 10(a) because
it deems such nomination to be in violation of fiduciary duties of members of
the Board of the Company, the Boise Majority Holders or the Aldabra Majority
Holders, as applicable, shall be entitled to appoint an alternative nominee to
be a Boise Board Representative or Aldabra Board Representative, as
applicable.  Each Boise Board
Representative and each Aldabra Board Representative appointed pursuant to this
Section 10(a) shall continue to hold office until such Boise
Board Representative’s term or such Aldabra Board Representative’s term, as
applicable, expires, subject, however, to prior death, resignation, retirement,
disqualification or termination of term of office as provided in this Section 10.

 

(b)   Continuing Designation of Boise Board
Representatives.  On and prior to the
Boise Expiration Date and the Aldabra Expiration Date, as applicable, in
connection with the expiration of the term of any Boise Board Representative or
Aldabra Board Representative, as applicable, the Company shall, subject to the
provisions of Section 10(c) and subject only to such
nomination not being in violation of the fiduciary duties of members of the
Board of the Company, nominate the Boise Board Representative(s) designated
by the Boise Majority Holders and the Aldabra Board Representative(s) designated
by the Aldabra Majority Holders for election to the Board of the Company by the
holders of voting capital stock and solicit proxies from the Company’s
stockholders in favor of the election of such Boise Board Representative(s) and
Aldabra Board Representative(s); provided that if the Company avoids its
obligations under this sentence or this Section 10(b) because
it deems such nomination to be in violation of fiduciary duties of members of
the Board of the Company, the Boise Majority Holders shall be entitled to
appoint an alternative nominee to be a Boise Board Representative and the
Aldabra Majority Holders shall be entitled to appoint an alternative nominee to
be an Aldabra Board Representative. 
Subject to the provisions of Section 10(c), the Company
shall use reasonable best efforts to cause such Boise Board Representative(s) to
be elected to the Board of the Company (including voting all unrestricted
proxies in favor of the election of such Boise Board Representative(s) and
Aldabra Board Representative(s) and including recommending approval of
such Boise Board Representative(s)’ appointment to the Board of the Company and
such Aldabra Board Representative(s)’ appointment to the Board of the Company
as provided for in the Company’s proxy statement) and shall not take any action
which would diminish the prospects of such Boise Board Representative(s) or
such Aldabra Board Representative(s) of being elected to the Board of the
Company.

 

(c)   Termination of Boise Board Representative
Designation Rights.  The right of the
Boise Majority Holders to designate a Boise Board Representative pursuant to
this Section 10 shall terminate on the Boise Expiration Date.  The right of the Aldabra Majority Holders to
designate an Aldabra Board Representative pursuant to this Section 10
shall terminate on the Aldabra Expiration Date. 
If the rights of the Boise Majority Holders or the Aldabra Majority
Holders, as applicable, to designate a Boise Board Representative or Aldabra
Board Representative, as applicable, cease under the immediately preceding
sentence, then the Company may use reasonable best efforts to effect the
removal of such director.

 

(d)   Resignation; Removal; and Vacancies.

 

(i)            Resignation.  An elected Boise Board Representative may
resign from the Company’s Board at any time by giving written notice to the
Company at its principal 

 

21

 

executive
office.  An elected Aldabra Board
Representative may resign from the Company’s Board at any time by giving
written notice to the Company at its principal executive office.  The resignation is effective without
acceptance when the notice is given to the Company, unless a later effective time
is specified in the notice.

 

(ii)           Removal.  So long as the Boise Majority Holders or the
Aldabra Majority Holders, as applicable, retain the right to designate a
director pursuant to Section 10(b), the Company shall use
reasonable best efforts to remove any Boise Board Representative or Aldabra
Board Representative, as applicable, only if so directed in writing by the
Boise Majority Holders or the Aldabra Majority Holders, as applicable.

 

(iii)          Vacancies.  In the event of a vacancy on the Company’s
Board resulting from the death, disqualification, resignation, retirement or
termination of term of office of a Boise Board Representative designated by the
Boise Majority Holders or an Aldabra Board Representative designated by the
Aldabra Majority Holders, then the Company shall use reasonable best efforts to
fill such vacancy with a representative designated by Boise Majority Holders or
the Aldabra Majority Holders, as applicable, as provided hereunder, in either
case to serve until the next annual or special meeting of the stockholders (and
at such meeting, such representative, or another representative designated by
such holders, will be elected to the Company’s Board in the manner set forth in
the Company’s Bylaws).  If the Boise
Majority Holders or the Aldabra Majority Holders, as applicable, fail or
decline to fill the vacancy, then the directorship shall remain open until such
time as the Boise Majority Holders or the Aldabra Majority Holders, as
applicable, elect to fill it with a representative designated hereunder.  During any such period that the Boise
Majority Holders or the Aldabra Majority Holders, as applicable, are entitled
to, but have failed or declined to, designate a Boise Board Representative or
an Aldabra Board Representative, as applicable, the Boise Majority Holders or
the Aldabra Majority Holders, as applicable, shall have the right to designate
one representative to attend all Company Board meetings as a non-voting
observer.  The observer shall be entitled
to notice of all Company Board meetings in the manner that notice is provided
to members of the Board of the Company, shall be entitled to receive all
materials provided to members of the Board of the Company, shall be entitled to
attend (whether in person, by telephone, or otherwise) all meetings of the
Board of the Company as a non-voting observer, and shall be entitled to fees
and expenses paid to Boise Board Representatives pursuant to Section 1(e).

 

(e)   Fees & Expenses.  Boise Board Representatives and Aldabra Board
Representatives shall be entitled to fees, other compensation and reimbursement
of expenses paid to members of the Company’s Board who are not employees of the
Company or its Subsidiaries.

 

(f)    Subsidiary Boards; Committees.  Subject to applicable law and the rules of
any exchange on which the Company’s securities are listed, at the request of
the Boise Majority Holders or the Aldabra Majority Holders, as applicable, the
Company shall use reasonable best efforts to cause the Boise Board
Representative(s) or the Aldabra Majority Holders, as applicable, to have
proportional representation (relative to their percentage on the whole Board of
the Company) on the Boards of each Subsidiary of the Company (each, a “Sub
Board”) and each committee of the Board and each Sub Board.

 

(g)   Reporting Information.  With respect to each Boise Board
Representative designated pursuant to the provisions of this Section 10,
the Boise Majority Holders shall cause the Boise Board Representative to
provide to the Company with all necessary assistance and information related to
such Boise Board Representative that is required under Regulation 14A under the
Exchange Act to be disclosed in solicitations of proxies or otherwise,
including such Person’s written consent to being named in the proxy statement
(if applicable) and to serving as a director if elected.  With respect to each Aldabra 

 

22

 

Board Representative designated pursuant to
the provisions of this Section 10, the Aldabra Majority Holders
shall cause the Aldabra Board Representative to provide to the Company with all
necessary assistance and information related to such Aldabra Board
Representative that is required under Regulation 14A under the Exchange Act to
be disclosed in solicitations of proxies or otherwise, including such Person’s
written consent to being named in the proxy statement (if applicable) and to
serving as a director if elected.

 

11.   Special
Financial Procedures, Controls, Reports and Related Matters.

 

(a)   Financial Information.

 

(i)            In addition to the
reports and financial statements required to be delivered by the Company
pursuant to this Agreement, the Company will, and will cause each of its
Subsidiaries to, maintain disclosure controls and procedures and internal
control over financial reporting as defined in Exchange Act Rule 13a-15,
and the Company will, and will cause each of its officers to, make such
disclosures and certifications as are required by the Exchange Act with respect
thereto.

 

(ii)           The Company will,
and will cause each of its Subsidiaries to, maintain a fiscal year that
commences and ends on the same calendar days as Boise’s fiscal year commences
and ends, and to maintain monthly and quarterly accounting periods that
commence and end on the same calendar days as Boise’s monthly and quarterly
accounting periods commence and end;

 

(iii)          While the
provisions of this Section 11 are applicable, no later than ten (10) calendar
days after the end of each of the Company’s monthly accounting periods
following the date hereof, the Company will deliver to Boise such financial
information for such period as is reasonably necessary such that Boise may
report its equity in earnings from the Company and its Subsidiaries for such
period and such other financial information that Boise may reasonably request
in connection with its preparation of financial statements and notes to
financial statements for such period;

 

(iv)          Notwithstanding any
time periods to the contrary in Section 9(c), while the provisions
of this Section 11 are applicable, as soon as practicable after the
end of each of the Company’s fiscal quarters following the date hereof, the
Company will deliver to Boise the financial statements specified in Section 9(c)(i) for
such period, in each case in such format and detail as Boise may request.  In any event no later than the earlier of (x) ten
(10) Business Days prior to the date on which the Company is required to
file a Form 10-Q or other document containing Quarterly Financial
Statements with the Securities and Exchange Commission for each of the Company’s
first three fiscal quarters in each fiscal year and (y) ten (10) Business
Days prior to the date on which Boise has notified the Company that Boise
intends to file its Form 10-Q or other document containing Quarterly
Financial Statements with the Securities and Exchange Commission, the Company
will deliver to Boise drafts of the following:

 

(A)          the consolidated financial
statements of the Company and its Subsidiaries (and notes thereto) for such
periods and for the period from the beginning of the current fiscal year to the
end of such quarter, setting forth in each case in comparative form for each
such fiscal quarter of the Company the consolidated figures (and notes thereto)
for the corresponding quarter and periods of the previous fiscal year and all
in reasonable detail and prepared in accordance with Article 10 of
Regulation S-X and GAAP, and

 

23

 

(B)           a discussion and analysis by
the Company’s management of the Company’s and its Subsidiaries’ financial
condition and results of operations for such fiscal period, including, without
limitation, an explanation of any material period-to-period change and any
off-balance sheet transactions, all in reasonable detail and prepared in
accordance with Item 303(b) and 305 of Regulation S-K.

 

The information set forth in
(A) and (B) above is referred to in this Agreement as the “Quarterly
Financial Statements” and a draft of the Company’s report on Form 10-Q
containing the above-referenced information for such quarter delivered when
required by this clause (iv) shall be deemed to satisfy the requirements
of this clause (iv).  No later than the
earlier of (x) three (3) Business Days prior to the date the Company
publicly files the Quarterly Financial Statements with the Securities and
Exchange Commission or otherwise makes such Quarterly Financial Statements
publicly available or (y) three (3) Business Days prior to the date
on which Boise has notified the Company that Boise intends to file Boise’s
quarterly financial statements with the Securities and Exchange Commission, the
Company will deliver to Boise the final form of its quarterly report on Form 10-Q
and certifications thereof by the Company’s principal executive and financial
officers in substantially the forms required under Securities and Exchange
Commission rules for periodic reports and in form and substance reasonably
satisfactory to Boise;  provided,  however, that the Company may
continue to revise such quarterly report on Form 10-Q prior to the filing
thereof in order to make corrections and changes which corrections and changes
will be delivered by the Company to Boise as soon as practicable.  Notwithstanding anything to the contrary in this
Section 11(a)(iv), the Company will use its reasonable best efforts
to file its quarterly report on Form 10-Q with the Securities and Exchange
Commission on the same date that Boise files Boise’s quarterly financial
statements with the Securities and Exchange Commission unless otherwise
required by applicable law or as otherwise reasonably agreed between the
parties after due consideration to, among other things, the securities law
implications of filing on different dates.

 

(v)           As soon as practicable, and
in any event no later than:

 

(A)          the earlier of (x) ten (10) Business
Days prior to the date on which the Company is required to file a Form 10-K
or other document containing its Annual Financial Statements with the
Securities and Exchange Commission and (y) ten (10) Business Days prior
to the date on which Boise has notified the Company that Boise intends to file
its Form 10-K or other document containing annual financial statements
with the Securities and Exchange Commission, the Company will deliver to Boise (A) any
financial and other information and data with respect to the Company and its
Subsidiaries and their business, properties, financial position, results of
operations and prospects as is reasonably requested by Boise in connection with
the preparation of Boise’s financial statements and annual report on Form 10-K
and (B) a discussion and analysis by the Company’s management of the
Company and its Subsidiaries’ financial condition and results of operations for
such year, including, without limitation, an explanation of any material
period-to-period change and any off-balance sheet transactions, all in
reasonable detail and prepared in accordance with Items 303(a) and 305 of
Regulation S-K; and

 

24

 

(B)           the earlier of (x) ten (10) Business
Days prior to the date on which the Company is required to file a Form 10-K
or other document containing its Annual Financial Statements with the
Securities and Exchange Commission and (y) ten (10) Business Days
prior to the date on which Boise has notified the Company that Boise intends to
file its Form 10-K or other document containing annual financial
statements with the Securities and Exchange Commission, the Company will
deliver to Boise, drafts of the consolidated financial statements of the
Company and its Subsidiaries (and notes thereto) for such year, setting forth
in each case in comparative form the consolidated figures (and notes thereto)
for the previous fiscal years and all in reasonable detail and prepared in
accordance with Regulation S-X and GAAP.

 

The information set forth in
(A) and (B) above is referred to in this Agreement as the “Annual
Financial Statements” and a draft of the Company’s report on Form 10-K
containing the above-referenced information for such annual period delivered
when required by this clause (v) shall be deemed to satisfy the
requirements of this clause (v).  The
Company will deliver to Boise all revisions to such drafts as soon as any such
revisions are prepared or made.  No later
than the earlier of (A) five Business Days prior to the date the Company
publicly files the annual report on Form 10-K with the Securities and
Exchange Commission or otherwise makes such annual report on Form 10-K
publicly available or (B) five Business Days prior to the date on which
Boise has notified the Company that Boise (and/or any Person affiliated with
Boise) intends to file the Boise Annual Financial Statements (as defined below)
with the Securities and Exchange Commission, the Company will deliver to Boise
the final form of its annual report on Form 10-K and certifications
thereof by the Company’s principal executive and financial officers in
substantially the forms required under Securities and Exchange Commission rules for
periodic reports and in form and substance reasonably satisfactory to Boise;  provided,  however, that the Company may
continue to revise such annual report on Form 10-K prior to the filing
thereof in order to make corrections and changes which corrections and changes
will be delivered by the Company to Boise as soon as practicable.  In any event, the Company will deliver to
Boise, no later than three days prior to the date on which Boise has notified
the Company that Boise intends to file the Boise Annual Financial Statements
with the Securities and Exchange Commission, the final form of the annual
report on Form 10-K accompanied by an opinion on the annual financial
statements included therein by the Company’s independent certified public
accountants.  Notwithstanding anything to
the contrary in this Section 11(a)(v), the Company will use its
reasonable best efforts to file its Annual Financial Statements with the
Securities and Exchange Commission on the same date that Boise files the Boise
Annual Financial Statements with the Securities and Exchange Commission unless
otherwise required by applicable law or as otherwise reasonably agreed between
the parties after due consideration to, among other things, the securities law
implications of filing on different dates.

 

(v)           With reasonable promptness, the
Company and its Subsidiaries will deliver to Boise such additional audited and
unaudited financial statements, financial and other information and data with
respect to the Company and its Subsidiaries and their business, properties,
financial positions, results of operations and prospects as from time to time
may be reasonably requested by Boise, including such financial information and
comfort letters as may be requested or required in connection with the sale or
registration of securities by Boise. 
Without limiting the generality of the foregoing, the Company and its
Subsidiaries shall make available to Boise and its Representatives reasonable
access to the books and records of the Company and its Subsidiaries with
respect to, or as may be necessary to prepare audited financial statements
and/or financial statements compliant with Regulations S-X and S-K for, the
Company 

 

25

 

and its Subsidiaries.  Seller understands that, from time to time,
Boise and its Affiliates may do one or more financings and/or securities law
filings for which financial information with respect to the Company and its
Subsidiaries will be reported.  The
Company and its Subsidiaries shall provide Boise and its representatives with
such financial information as may be reasonably requested by Boise and its
representatives as promptly as practicable after the request therefor and enter
into and deliver such management representation letters and cold comfort
letters with respect to such financial information as may be reasonably
requested by Boise and its Affiliates in order to complete their financings
and/or filings and/or as otherwise may be necessary for Boise and its
Affiliates to prepare audited financial statements and/or financial statements
prepared in accordance with Regulations S-X and S-K.

 

(b)   Cooperation on Boise Filings.

 

(i)            The Company will
cooperate fully, and cause its auditors and other Representatives to cooperate
fully, with Boise to the extent requested by Boise in the preparation of Boise’s
public earnings or other press releases, Quarterly Reports on Form 10-Q,
Annual Reports to Stockholders, Annual Reports on Form 10-K, any Current
Reports on Form 8-K and any other proxy, information and registration
statements, reports, notices, prospectuses and any other filings made by Boise
with the Securities and Exchange Commission, any national securities exchange
or otherwise made publicly available (collectively, the “Boise Public
Filings”).

 

(ii)           The Company agrees
to provide to Boise all information that Boise reasonably requests in
connection with any Boise Public Filings or that, in the judgment of Boise’s
legal advisors, is required to be disclosed or incorporated by reference
therein under any law, rule or regulation. 
The Company will provide such information in a timely manner on the
dates requested by Boise (which may be earlier than the dates on which the
Company otherwise would be required hereunder to have such information
available) to enable Boise to prepare, print and release all Boise Public
Filings on such dates as Boise will determine but in no event later than as
required by applicable law. The Company will use its reasonable best efforts to
cause the Company’s auditors and other Representatives to consent to any reference
to them as experts in any Boise Public Filings required under any law, rule or
regulation and to provide their consent to the incorporation of their reports
in Boise Public Filings.

 

(iii)          If and to the
extent requested by Boise, the Company diligently and promptly will review all
drafts of such Boise Public Filings and prepare in a diligent and timely
fashion any portion of such Boise Public Filing pertaining to the Company.

 

(iv)          Prior to any
printing or public release of any Boise Public Filing, an appropriate executive
officer of the Company will, if requested by Boise, certify that the
information relating to any the Company and/or any of its Subsidiaries  and/or any of their respective businesses
in such Boise Public Filing is accurate, true, complete and correct in all
material respects.

 

(c)   Auditors and Audits; Annual Financial
Statements and Accounting.

 

(i)            Unless required by
law, the Company will not select a different accounting firm than KPMG LLC (or
its affiliate accounting firms) to serve as its (and the Company’s Affiliates’)
independent certified public accountants (the “Company’s Auditors”)
without Boise’s prior written consent (which will not be unreasonably
withheld); provided that nothing herein shall prevent a change in the
Company’ Auditors to the extent that the Company’s 

 

26

 

Board
or its audit committee determines that a change is reasonably necessary in
order for the members thereof to comply with their fiduciary duties..

 

(ii)           The Company will
provide to Boise on a timely basis all information that Boise reasonably
requires to meet its schedule for the preparation, printing, filing, and public
dissemination of the Boise Annual Financial Statements in accordance with Sections
11(a) through (f) hereof and as required by applicable
law.  Without limiting the generality of
the foregoing, the Company will provide all required financial information with
respect to the Company and its Subsidiaries to the Company’s Auditors in a
sufficient and reasonable time and in sufficient detail to permit the Company’s
Auditors to take all steps and perform all reviews necessary to provide
sufficient assistance to Boise’s Auditors with respect to information to be
included or contained in the Boise Annual Financial Statements.

 

(iii)          The Company will
authorize the Company’s Auditors to make available to Boise’s Auditors both the
personnel who performed, or are performing, the annual audit of the Company and
work papers related to the annual audit of the Company, in all cases within a
reasonable time prior to the Company’s Auditors’ opinion date, so that Boise’s
Auditors are able to perform the procedures they consider necessary to take
responsibility for the work of the Company’s Auditors as it relates to Boise’s
Auditors’ report on Boise’s statements, all within sufficient time to enable
Boise to meet its timetable for the printing, filing and public dissemination
of the Boise Annual Financial Statements.

 

(iv)          If Boise determines
in good faith that there may be some inaccuracy in the financial statements of
the Company or any its Subsidiaries or deficiency in such Person’s internal
accounting controls or operations that could materially impact Boise’s
financial statements, at Boise’s request, the Company will provide Boise’s
internal auditors with access to the books and records of the Company and its
Subsidiaries so that Boise may conduct reasonable audits relating to the
financial statements provided by the Company under this Agreement as well as to
the internal accounting controls and operations of the Company and its
Subsidiaries.

 

(d)   Notice of Changes.  Subject to Section 9(a) and Section 11(c),
the Company will give Boise as much prior notice as reasonably practicable of
any proposed determination of, or any significant changes in, the Company’s
accounting estimates or accounting principles with respect to the Business from
those in effect with respect to the Business as of immediately prior to the
Closing.  The Company will consult with
Boise and, if requested by Boise, the Company will consult with Boise’s
Auditors with respect thereto.  The
Company will not make any such determination or changes without Boise’s prior
written consent (not to be unreasonably withheld) if such a determination or a
change would be sufficiently material to be required to be disclosed in the
Company’s or Boise’s financial statements as filed with the Securities and
Exchange Commission or otherwise publicly disclosed therein; provided
that nothing herein shall limit the right of the Company’s Board or its audit
committee to make such a determination or change to the extent it determines is
reasonably necessary in order for its members to comply with their fiduciary
duties.

 

(e)   Special Reports of Deficiencies or
Violations.  The Company will report
in reasonable detail to Boise the following events or circumstances promptly
after any executive officer of the Company or any member of the Company’s Board
becomes aware of such matter:

 

(i)            all material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the Company’s ability
to record, process, summarize and report financial information;

 

27

 

(ii)           any fraud, whether
or not material, that involves management or other employees who have a
significant role in the Company’s internal control over financial reporting;

 

(iii)          any illegal act
within the meaning of Section 10A(b) and (f) of the Exchange
Act; and

 

(iv)          any report of a
material violation of law that an attorney representing the Company and/or any
of its Subsidiaries / Affiliates has formally made to any officers or directors
of the Company pursuant to the Securities and Exchange Commission’s attorney conduct
rules (17 C.F.R. Part 205).

 

(f)    Applicability of Section 11.  The provisions of this Section 11
shall apply during any and each period(s) in which Boise and/or any Person
(including any member of the Boise Group) affiliated with Boise (in Boise’s good
faith determination) is required to consolidate the results of operations and
financial position of the Company and/or any of its Subsidiaries or to account
for its investment in the Company under the equity method of accounting
(determined in accordance with GAAP and consistent with the Securities and
Exchange Commission reporting requirements). 
Without limiting the generality of the foregoing, but for the avoidance
of doubt, in the event that Boise is not filing periodic reports with the
Securities and Exchange Commission, Boise may waive any of the requirements of
this Section 11 without prejudice to its rights to receive such
information (including with respect to periods previously waived) at a time in
the future in the event that Boise subsequently is required to file periodic
reports with the Securities and Exchange Commission.  In no event shall the provisions of this Section 11
be deemed to apply to accounting judgments made by the Company in connection
with the working capital adjustment contemplated by the Purchase Agreement.

 

12.   Definitions.

 

“Affiliate”
means any Person that directly, or indirectly through one or more
intermediaries, controls or is controlled by or is under common control with
the party specified (it being understood and agree that from and after the
Closing, for purposes of this Agreement, none of the Company or any of its
Subsidiaries shall be deemed to be an Affiliate of Boise or any of its
Affiliates).

 

“Aldabra
Applicable Number” means such number of directors of the Company which, as
a percentage of all directors of the Company, when rounded up most closely
approximates (but is not less than) the percentage of voting power represented
by the shares of capital stock of the Company held by holders of Aldabra
Registrable Securities.

 

“Aldabra
Expiration Date” means the first date that the aggregate voting power of
capital stock of the Company owned by holders of Aldabra Registrable Securities
represents less than 5% of the voting power of all capital stock of the
Company.

 

“Aldabra
Majority Holders” means, at any time, the holders of a majority of the
Aldabra Registrable Securities then outstanding.

 

“Aldabra Registrable
Securities” means, without duplication, (i) any shares of Common Stock
held by any Aldabra Shareholder on the date hereof, (ii) if such Aldabra
Shareholder otherwise holds Aldabra Registrable Securities as of the date of
such acquisition, any other shares of Common Stock of the Company acquired by
any Aldabra Shareholder after the date hereof, (iii) any shares of Common
Stock issued upon exercise of any warrants outstanding on the date hereof held
by any Aldabra Shareholder exercisable for shares of Common Stock, (iv) any
Common Stock issued or issuable with respect to the securities referred to in
clauses (i), (ii) and (iii) by way of a stock dividend or stock split
or 

 

28

 

stock conversion or in
connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization and (v) any warrants outstanding on
the date hereof held by any Aldabra Shareholder exercisable for shares of
Common Stock (except that, in the case of (1) any Demand Registration made
by the Aldabra Majority Holders other than a Demand Registration made by the
Aldabra Majority Holders in which such holders request registration of the
warrants outstanding on the date hereof which are held by the Aldabra
Shareholders, (2) any Demand Registration made by the Boise Majority
Holders, (3) any Piggyback Registration and/or (4) any Secondary
Registration, any and all such warrants shall not be entitled to be included in
any such registration (and shall be disregarded for purposes of determining the
number of Registrable Securities any Aldabra Shareholder may otherwise be entitled
to include in such registration, except to the extent provided in the last
sentence of this definition)).  For the
avoidance of doubt, as to any particular Aldabra Registrable Securities, such
securities shall cease to be Aldabra Registrable Securities when they have been
(x) distributed to the public pursuant to a offering registered under the
Securities Act or sold to the public through a broker, dealer or market maker
in compliance with Rule 144 under the Securities Act (or any similar rule then
in force), (y) distributed or otherwise transferred to any Holder (as such
term is defined in any CVR Agreement) and/or any of such Holder’s permitted
transferee(s) under any CVR Agreement upon exercise of any CVR pursuant to
the CVR Agreement or (y) repurchased by the Company or any
Subsidiary.  For purposes of this
Agreement, a Person shall be deemed to be a holder of Aldabra Registrable
Securities whenever such Person has the right to acquire such Aldabra
Registrable Securities (upon conversion or exercise in connection with a
transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition
has actually been effected; provided that such right must be converted
or exercised and the Aldabra Registrable Securities acquired not later than
immediately prior to the initial closing of an offering in which the Aldabra
Registrable Securities issuable upon exchange or conversion of such rights are
to be included (although such conversion or exercise may be conditioned upon
the occurrence of such closing).

 

“Board” means (i) in
the case of a Person that is a limited liability company, the managers
authorized to act therefor (or, if the limited liability company has no
managers, the members), (ii) in the case of a Person that is a
corporation, the board of directors of such Person or any committee authorized
to act therefor, (iii) in the case of a Person that is a limited
partnership, the board of directors of its corporate general partner (or, if
the general partner is itself a limited partnership, the board of directors of
such general partner’s corporate general partner) and (iv) in the case of
any other Person, the board of directors, management committee or similar
governing body or any authorized committee thereof responsible for the
management of the business and affairs of such Person; provided that, in
each case, the “Board” shall be deemed to include any duly authorized committee
thereof that is authorized to take the action in question.

 

“Boise Applicable Number”
means such number of directors of the Company which, as a percentage of all
directors of the Company, when rounded up most closely approximates (but is not
less than) the percentage of voting power represented by the shares of capital
stock of the Company held by holders of Boise Registrable Securities.

 

“Boise Expiration Date”
means the first date that the aggregate voting power of capital stock of the
Company owned by holders of Boise Registrable Securities represents less than
5% of the voting power of all capital stock of the Company.

 

“Boise Group” means
Boise and each Person (other than any member of the Company Group) that is an
Affiliate of Boise immediately after the Closing Date.

 

“Boise Majority Holders”
means, at any time, the holders of at least a majority of the Boise Registrable
Securities then outstanding.

 

29

 

“Boise Registrable
Securities” means (i) any shares of Common Stock originally issued to
Boise pursuant to the Purchase Agreement, (ii) any shares of Common Stock
transferred or otherwise distributed from Boise to BCH, (iii) if any such
holder of Boise Registrable Securities otherwise holds Boise Registrable
Securities as of the date of such acquisition, any other shares of Common Stock
of the Company acquired by such holder of Boise Registrable Securities after
the date hereof and (iv) any securities of the Company issued or issuable
directly or indirectly with respect to the securities referred to in clauses
(i), (ii) and (iii) foregoing by way of stock dividend or stock split
or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization. 
As to any particular Boise Registrable Securities, such securities shall
cease to be Boise Registrable Securities when they have been (x) distributed
to the public pursuant to a offering registered under the Securities Act or
sold to the public through a broker, dealer or market maker in compliance with Rule 144
under the Securities Act (or any similar rule then in force), (y) distributed
or otherwise transferred to any Holder (as such term is defined in any CVR
Agreement) and/or any of such Holder’s permitted transferee(s) under any
CVR Agreement upon exercise of any CVR pursuant to the CVR Agreement or (y) repurchased
by the Company or any Subsidiary.  For
purposes of this Agreement, a Person shall be deemed to be a holder of Boise
Registrable Securities whenever such Person has the right to acquire such Boise
Registrable Securities (upon conversion or exercise in connection with a
transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition
has actually been effected; provided that such right must be converted
or exercised and the Boise Registrable Securities acquired not later than
immediately prior to the initial closing of an offering in which the Boise
Registrable Securities issuable upon exchange or conversion of such rights are
to be included (although such conversion or exercise may be conditioned upon
the occurrence of such closing).

 

“Business Day” has
the meaning given to such term in the Purchase Agreement.

 

“Certificate of
Incorporation” means the Company’s Certificate of Incorporation, including
any certificate of designations relating to any series of Preferred Stock (as
amended or amended and restated from time to time).

 

“Closing” has the
meaning given to such term in the Purchase Agreement.

 

“Closing Date” has
the meaning given to such term in the Purchase Agreement.

 

“Common Stock” means
the Company’s Common Stock, par value $0.0001 per share.

 

“Company Group” means
the Company, each Subsidiary of the Company Group immediately after the Closing
Date, and each other Person that is controlled directly or indirectly by the
Company immediately after the Closing Date.

 

“CVR Agreements”
means those certain contingent value rights agreements, dated on or about February 1,
2008, by and among, Boise, Terrapin, the Company and the Holders (as such term
is used in the CVR Agreements) party thereto, pursuant to which such Holders
received certain contingent value rights to receive certain payments in cash or
in shares of Common Stock (collectively, the “CVRs”) from Boise and
Terrapin on the terms and subject to the conditions set forth therein

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended.

 

“Family Group” means
a Person’s spouse and descendants (whether natural or adopted) and any trust
solely for the benefit of the Person and/or the Person’s spouse and/or
descendants.

 

30

 

“Free Writing Prospectus”
means a free-writing prospectus, as defined in Rule 405 of the Securities
Act.

 

“GAAP” means U.S.
generally accepted accounting principles, consistently applied.

 

“Group” means either
the Company Group or the Boise Group, as the context requires.

 

“Independent Third Party”
means any Person who, immediately prior to the contemplated transaction does
not own directly or indirectly in excess of 5% of the Company’s voting capital
stock on a fully-diluted basis (a “Non-Independent Owner”), who does not
control, is not controlled by or under common control with any such
Non-Independent Owner and who is not the spouse or descendent (by birth or
adoption) of any such Non-Independent Owner or a trust for the benefit of such
Non-Independent Owner and/or such other Persons.

 

“MDCP IV” means
Madison Dearborn Capital Partners IV, L.P.

 

“Other Registrable
Securities” means (i) any shares of Common Stock issued to a Person
that becomes party to this Agreement after the date hereof in accordance with Section 14(e),
and (ii) any Common Stock issued or issuable with respect to the
securities referred to in clause (i) by way of a stock dividend or stock
split or stock conversion or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization; provided
that “Other Registrable Securities” shall not include any shares of Common
Stock issued, distributed or otherwise transferred to any Holder (as such term
is defined in any CVR Agreement) and/or any of such Holder’s permitted
transferee(s) under any CVR Agreement upon exercise of any CVR pursuant to
the CVR Agreement.  As to any particular
Other Registrable Securities, such securities shall cease to be Other
Registrable Securities when they have been distributed to the public pursuant
to a offering registered under the Securities Act or sold to the public through
a broker, dealer or market maker in compliance with Rule 144 under the
Securities Act (or any similar rule then in force) or repurchased by the
Company or any Subsidiary.  For purposes
of this Agreement, a Person shall be deemed to be a holder of Other Registrable
Securities whenever such Person has the right to acquire such Other Registrable
Securities (upon conversion or exercise in connection with a transfer of
securities or otherwise, but disregarding any restrictions or limitations upon
the exercise of such right), whether or not such acquisition has actually been
effected; provided that such right must be converted or exercised and
the Other Registrable Securities acquired not later than immediately prior to
the initial closing of an offering in which the Other Registrable Securities
issuable upon exchange or conversion of such rights are to be included
(although such conversion or exercise may be conditioned upon the occurrence of
such closing).

 

“Person” means an
individual, a partnership, a corporation, a limited liability company, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political
subdivision thereof.

 

“Registrable Securities”
means Aldabra Registrable Securities, Boise Registrable Securities and Other
Registrable Securities.

 

“Representative”
means, with respect to any Person, any of such Person’s directors, officers,
employees, agents, consultants, advisors, accountants or attorneys.

 

“Restricted Securities”
means (i) the Common Stock, and (ii) any securities issued with
respect to the securities referred to in clause (i) above by way of a stock
dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation or other reorganization and any
warrants exercisable for Common Stock outstanding on the date hereof that are
not freely 

 

31

 

tradable under applicable
law and regulation.  As to any particular
Restricted Securities, such securities shall cease to be Restricted Securities
when they have (a) been effectively registered under the Securities Act
and disposed of in accordance with the registration statement covering them, or
(b) been distributed to the public through a broker, dealer or market
maker pursuant to Rule 144 (or any similar provision then in force) under
the Securities Act or become eligible for sale pursuant to Rule 144(k) (or
any similar provision then in force) under the Securities Act.  Whenever any particular securities cease to
be Restricted Securities, the holder thereof shall be entitled to receive from
the Company, without expense, new securities of like tenor not bearing a
Securities Act legend of the character set forth in this Agreement.

 

“Revised Pro Rata Share”
means, for each holder, a fraction, (x) the numerator of which equals the
difference between (i) the product of (a) the percentage of
Registrable Securities owned by such holder (as a percentage of all Registrable
Securities and, in the event that the Prior Registration was a Secondary
Registration, other securities then outstanding) immediately prior to the Prior
Registration multiplied by (b) the sum of (A) the aggregate number of
Registrable Securities (and, in the event that the Prior Registration was a
Secondary Registration, other securities) included in the Prior Registration
plus (B) the aggregate number of Registrable Securities (and, in the event
such registration is to be a Secondary Registration, other securities) to be
included in the Demand Registration or Piggyback Registration in question minus
(ii) the aggregate number of Registrable Securities sold by such holder in
the Prior Registration and (y) the denominator of which is the number of
Registrable Securities (and, in the event that the Prior Registration was a
Secondary Registration, other securities) to be included in such Demand
Registration or Piggyback Registration.

 

“Sale of the Company”
means the sale of the Company (however structured) to an Independent Third
Party or group of Independent Third Parties acting in concert pursuant to which
such party or parties acquire (i) equity securities of the Company that,
directly or indirectly through one or more intermediaries, have more than 50%
of the ordinary voting power then outstanding to elect a majority of the
Company’s board of directors or (ii) all or substantially all of the
Company’s assets determined on a consolidated basis (in either case, whether by
merger, consolidation, sale or transfer of the Company’s or any Subsidiary’s
equity securities, sale or transfer of the Company’s consolidated assets, or
other reorganization).

 

“Securities Act” means
the Securities Act of 1933, as amended.

 

“Securities and Exchange
Commission” includes any governmental body or agency succeeding to the
functions thereof.

 

“Subsidiary” means,
with respect to any Person, any corporation, limited liability company, partnership,
association or other business entity of which (i) if a corporation, a
majority of the total voting power of shares of stock entitled (without regard
to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof, or (ii) if a limited liability company,
partnership, association or other business entity, a majority of the
partnership or other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by any Person or one or more Subsidiaries
of that Person or a combination thereof. 
For purposes hereof, a Person or Persons shall be deemed to have a
majority ownership interest in a limited liability company, partnership,
association or other business entity if such Person or Persons shall be
allocated a majority of limited liability company, partnership, association or
other business entity gains or losses or shall be or control any managing
director or general partner of such limited liability company, partnership,
association or other business entity.

 

32

 

“Terrapin” means
Terrapin Partners Venture Partnership, a California general partnership.

 

13.   Transfer of
Restricted Securities.

 

(a)   General Provisions.  In addition to any other restrictions on
transfer to which such shares may be subject, Restricted Securities are transferable
only pursuant to (i) public offerings registered under the Securities Act,
(ii) Rule 144 or Rule 144A of the Securities and Exchange
Commission (or any similar rule or rules then in force) if such rule is
available and (iii) subject to the conditions specified in Section 13(b) below,
any other legally available means of transfer.

 

(b)   Opinion Delivery.  In connection with the transfer of any
Restricted Securities (other than a transfer described in Section 13(a)(i) or
(ii) above), upon the request of the Company, the holder thereof
shall deliver written notice to the Company describing in reasonable detail the
transfer or proposed transfer, together with an opinion of Kirkland &
Ellis LLP or other counsel which (to the Company’s reasonable satisfaction) is
knowledgeable in securities law matters to the effect that such transfer of
Restricted Securities may be effected without registration of such Restricted
Securities under the Securities Act.  In
addition, if the holder of the Restricted Securities delivers to the Company an
opinion of Kirkland & Ellis LLP or such other counsel that no
subsequent transfer of such Restricted Securities shall require registration
under the Securities Act, the Company shall promptly upon such contemplated
transfer deliver new certificates for such Restricted Securities which do not
bear the Securities Act legend set forth in Section 13(c).  If the Company is not required to deliver new
certificates for such Restricted Securities not bearing such legend, the holder
thereof shall not transfer the same until the prospective transferee has
confirmed to the Company in writing its agreement to be bound by the conditions
contained in this Section 13.

 

(c)   Legend.  Each certificate or instrument representing
Restricted Securities shall be imprinted with a legend in substantially the
following form:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD
OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
ACT OR AN EXEMPTION FROM REGISTRATION THEREUNDER. THE SECURITIES REPRESENTED BY
THIS CERTIFICATE ARE ALSO SUBJECT TO ADDITIONAL RESTRICTIONS ON TRANSFER AND
CERTAIN OTHER AGREEMENTS SET FORTH IN AN INVESTOR RIGHTS AGREEMENT BETWEEN THE
COMPANY AND CERTAIN OF ITS STOCKHOLDERS DATED AS OF FEBRUARY 22, 2008, AS
AMENDED AND MODIFIED FROM TIME TO TIME. 
A COPY OF SUCH AGREEMENT MAY BE OBTAINED BY THE HOLDER HEREOF AT
THE COMPANY’S PRINCIPAL PLACE OF BUSINESS WITHOUT CHARGE.”

 

(d)   Legend Removal.  If any Restricted Securities become eligible
for sale without restriction pursuant to Rule 144, the Company shall, upon
the request of the holder of such Restricted Securities, remove the legend set
forth in Section 13(c) from the certificates for such
Restricted Securities.

 

14.   Miscellaneous.

 

(a)   Counterparts.  This Agreement may be executed simultaneously
in two or more counterparts (including by facsimile or electronic
transmission), any one of which need not contain the 

 

33

 

signatures of more than one party, but all
such counterparts taken together shall constitute one and the same Agreement.

 

(b)   Descriptive Headings.  The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this
Agreement.

 

(c)   Remedies.  Any Person having rights under any provision
of this Agreement shall be entitled to recover damages caused by reason of any
breach of any provision of this Agreement and to exercise all other rights
granted by law (including in the case of injunctive relief, without a
requirement of posting a bond).

 

(d)   Amendments and Waivers.  Except as otherwise provided herein, the
provisions of this Agreement may be amended or waived only upon the prior
written consent of the Company and Boise Majority Holders; provided that
if any such amendment or waiver would adversely affect in any material manner
the rights of any holders of Registrable Securities relative to other holders
of Registrable Securities similarly situated with respect to such rights under
this Agreement, such amendment or waiver must be approved in writing by the
holders of a majority of such Registrable Securities so adversely affected.

 

(e)   Additional Parties.  Except as otherwise described below, the
Board of the Company shall be entitled, but not obligated, to allow any
purchaser of Common Stock from the Company (or securities or rights convertible
or exercisable into Common Stock) other than a transferee of Boise Registrable
Securities or Aldabra Registrable Securities (which Transferees shall become
holders of New Boise Registrable Securities or Aldabra Registrable Securities,
as applicable, and such transferees shall be required to execute a counterpart
to this Agreement and become a party hereto as a condition to such transferee’s
receipt of such securities), to execute a counterpart to this Agreement and
become a party hereto (each, an “Other Investor”), in which case the
Common Stock issued or issuable to any such Other Investor shall, except if
such Other Investor holds securities that meet the definition of “Boise
Registrable Securities” or “Aldabra Registrable Securities” be deemed “Other
Registrable Securities” for purposes of this Agreement.   Except as set forth in this Section 14(e),
the Company will not grant to any other Persons any registration rights (other
than Piggyback Registration Rights in accordance with this Agreement) without
the prior written consent of holders of a majority of the Registrable
Securities then outstanding.

 

(f)    Successors and Assigns.  All covenants and agreements in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of the respective successors and assigns of the parties hereto whether
so expressed or not.  In addition,
whether or not any express assignment has been made, the provisions of this
Agreement which are for the benefit of the purchasers or holders of any type of
Registrable Securities are, except as otherwise described herein, also for the
benefit of, and enforceable by, any subsequent holder of such type of
Registrable Securities (e.g., any subsequent purchaser of Boise Registrable
Securities or Aldabra Registrable Securities, as the case may be, shall, except
as otherwise described herein, have the rights of a holder of Boise Registrable
Securities or Aldabra Registrable Securities, respectively).  Furthermore, Boise may assign in writing,
without the consent of any other party hereto, any rights specific to Boise
hereunder in whole or in part to any transferee of Boise Registrable
Securities.  Nothing herein shall limit
the right of Boise or its shareholders to distribute or otherwise transfer any
Boise Registrable Securities hereunder to its direct and indirect members, subject
to such conditions as may be imposed by Boise with respect thereto; provided  that, upon any  distribution by OfficeMax, Inc. to its shareholders,
Forest Products Holdings, L.L.C. to its members or  MDCP IV to its partners of  any Boise Registrable Securities, such
distributing party may, with effect immediately prior to such distribution, by
written notice to the Company terminate the rights and obligations of each
distributee of such Registrable Securities that will (together with its
Affiliates), 

 

34

 

after giving effect to such distribution,
hold less than 10% of the Company’s Common Stock on a fully-diluted basis and
is not otherwise an officer, director or employee of the Company.
Notwithstanding anything herein to the contrary, in order to obtain any
benefits of this Agreement, any subsequent holder of Registrable Securities or
any assignee of Boise must execute a counterpart to this Agreement in form and
substance satisfactory to the Company, thereby agreeing to be bound the terms
hereof.

 

(g)   Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

 

(h)   Governing Law.  The corporate law of the State of Delaware
shall govern all issues and questions concerning the relative rights of the
Company and its stockholders.  All other
issues and questions concerning the construction, validity, interpretation and
enforcement of this Agreement and the exhibits and schedules hereto shall be
governed by, and construed in accordance with, the laws of the State of  Delaware, without giving effect to any choice
of law or conflict of law rules or provisions (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of Delaware.  In furtherance of the foregoing, the internal
law of the State of Delaware shall control the interpretation and construction
of this Agreement (and all schedules and exhibits hereto), even though under
that jurisdiction’s choice of law or conflict of law analysis, the substantive
law of some other jurisdiction would ordinarily apply.  Whenever used herein, “including” means “including,
without limitation.”

 

(i)    Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
shall be in writing and shall be deemed to have been given when delivered
personally to the recipient, sent to the recipient by reputable overnight
courier service (charges prepaid) or mailed to the recipient by certified or
registered mail, return receipt requested and postage prepaid.  Such notices, demands and other
communications shall be sent to a particular holder of Registrable Securities
at the address indicated on the books and records of the Company and to the
Company at its principal executive office (to the attention of the Company’s
president) or to such other address or to the attention of such other person as
the recipient party has specified by prior written notice to the sending party.

 

(j)    Entire Agreement. Except as otherwise
expressly set forth herein, this Agreement embodies the complete agreement and
understanding among the parties and supersedes and preempts any prior
understandings, agreements, or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way
(including that certain Registration Rights Agreement, dated as of June 19,
2007, by and among the Company and certain of its stockholders, which is hereby
terminated in its entirety).

 

(k)   References to Equity Securities.  Whenever there is a reference to any series,
class or type of equity securities (e.g., Common Stock), such reference
shall include a reference to any equity securities issued to the holder thereof
in respect of such securities in any merger, consolidation, recapitalization,
restructuring, exchange, conversion, stock spilt, stock combination or other
transaction.

 

(l)    Other Matters.  Promptly following the Closing, Boise intends
distribute to its parent company, BCH, all of the Boise Registrable Securities
issued to Boise on the date hereof pursuant to the Purchase Agreement.  By BCH’s execution of a counterpart signature
page hereto and upon its receipt of any Boise Registrable Securities, it
is acknowledged and agreed that (x) BCH shall automatically be deemed to
be a party to this Agreement as a holder of Boise Registrable Securities and (y) BCH
shall succeed to all of the rights and obligations of a holder of Boise
Registrable Securities hereunder.

 

35

 

*   *  
*   *   *

 

36

 

IN
WITNESS WHEREOF, the parties have executed this Investor Rights Agreement as of
the date first written above.

 

ALDABRA 2 ACQUISITION CORPORATION

 

	
   

  	
  By:

  	
  /s/
  Jason G. Weiss

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BOISE CASCADE, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David G. Gadda

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BOISE
  CASCADE HOLDINGS, L.L.C.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David G. Gadda

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Vice
  President

  	
   

  
					

 

 

	
   

  	
  ALDABRA SHAREHOLDERS:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Nathan D. Leight

  	
   

  
	
   

  	
  Nathan D. Leight

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Jason G. Weiss

  	
   

  
	
   

  	
  Jason G. Weiss

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Jonathan W. Berger

  	
   

  
	
   

  	
  Jonathan W. Berger

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Richard H. Rogel

  	
   

  
	
   

  	
  Richard
  H. Rogel

  	
   

  

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Carl A. Albert

  	
   

  
	
   

  	
  Carl A. Albert

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Jack Goldman

  	
   

  
	
   

  	
  Jack Goldman

  	
   

  
	
   

  	
   

  

 

TERRAPIN
PARTNERS VENTURE PARTNERSHIP

 

	
   

  	
  By:

  	
  /s/ Jason G. Weiss

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Jason G. Weiss

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TERRAPIN PARTNERS EMPLOYEE PARTNERSHIP

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  Terrapin Partners, LLC,

  
	
   

  	
   

  	
  its General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
						

 

	
   

  	
  By:

  	
  /s/ Jason G. Weiss

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Jason G. Weiss

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Managing Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

CONTINUATION OF SIGNATURE
PAGE TO INVESTOR RIGHTS AGREEMENT

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