Document:

Exhibit 10.4(a)

 

EXECUTION COPY

 

SECOND AMENDMENT

TO CREDIT AND SECURITY AGREEMENT

 

THIS SECOND AMENDMENT TO CREDIT &
SECURITY AGREEMENT, dated as of April 25, 2003 (this “Amendment”),
is entered into by and between LP RECEIVABLES CORPORATION, as borrower (the “Borrower”), LOUISIANA-PACIFIC
CORPORATION, as master servicer (the “Master
Servicer”), BLUE RIDGE ASSET FUNDING CORPORATION, as lender (the
“Lender”), the committed
banks named therein and WACHOVIA BANK, NATIONAL ASSOCIATION (successor in
interest to Wachovia Bank, N.A.), as administrative agent (the “Administrative Agent”).  Capitalized terms used and not otherwise
defined herein are used as defined in the Agreement (as defined below and
amended hereby).

 

WHEREAS, the parties
hereto have entered into that certain Credit and Security Agreement (as amended
by the Fourth Amendment to Limited Waiver and Amendment to Credit Agreement
dated as of November 13, 2002 or as otherwise amended, supplemented or
otherwise modified, the “Agreement”);

 

WHEREAS, the parties
hereto wish to amend the Agreement as hereinafter set forth;

 

NOW THEREFORE, in
consideration of the premises and the other mutual covenants contained herein,
the parties hereto agree as follows:

 

SECTION 1.  Amendments.
The Agreement is, as of the Effective Date defined below, hereby amended as
follows:

 

(a)           The
second sentence of Section 4.7(e) of the Agreement is hereby amended and
restated in its entirety to read as follows:

 

In addition to
the foregoing, if the Commitment of such Person is reduced in whole or in part
pursuant to Section 1.1(b) or Section 1.3 or by reason of a
partial assignment pursuant to Section 12.1 (with the consent of
Borrower (not to be unreasonably withheld or delayed)), then, in any such
event, such Person shall pay to its own account an amount of funds then held in
the Advance Account equal to the amount of such partial or whole reduction, as
applicable.

 

(b)           Section
4.7 of the Agreement is hereby amended by adding the following paragraph to the
end thereto:

 

(h)           For the avoidance of doubt, Borrower
may reduce the Aggregate Commitment and/or the Aggregate Principal at any time
during the Revolving Period, including, without limitation, after any request
for an Advance Account Deposit; provided, that Borrower shall comply with
the notice provisions provided in Section 1.1(b) and Section 1.3,
as applicable.; provided, further that the Aggregate Commitment may not be
reduced below the Aggregate Principal.

 

 

(c)           Section 7.1(a) of
the Agreement is hereby amended by adding the following clause (viii) and
renumbering the existing clause (viii) as clause (ix):

 

(viii)        Fiscal Reporting.  On each Monthly Reporting Date, a balance
sheet, statement of profit and loss and statement of stockholder’s equity of
Borrower for the Fiscal Month most recently ended; prepared in accordance with
GAAP consistently applied.

 

(d)           Section 7.1(i)(xvi)
of the Agreement is hereby amended and restated in its entirety to read as
follows:

 

(xvi)        maintain at all times sufficient capital
in light of its contemplated business operations, ensure that, for any
Calculation Period, the Borrower’s Net Worth shall be greater than or equal to
the Required Capital Amount and refrain from making any dividend, distribution,
redemption of capital stock or payment of any subordinated indebtedness which
would cause the Borrower’s Net Worth to be less than the Required Capital
Amount for such Calculation Period;

 

(e)           The following clause
(xix) is hereby added to Section 7.1(i) of the Agreement:

 

(xix)         take such other actions as are
necessary on its part to ensure that the facts and assumptions set forth in the
opinions of Mayer, Brown, Rowe & Maw in connection with the closing of the
Second Amendment to the Credit & Security Agreement, dated as of April 25,
2003 and relating to true sale and substantive consolidation issues, and in the
certificates accompanying such opinions, remain true and correct, and are
complied with, in all material respects at all times.

 

(f)            Section 9.1 of the
Agreement is hereby amended by adding the following paragraph (t):

 

(t)            For any Calculation Period, as of
the Purchase Settlement Date following such Calculation Period, the Borrower’s
Net Worth shall be less than the Required Capital Amount.

 

(g)           Section 10.3 of the
Agreement is hereby amended by adding the following statement to the end
thereto:

 

For avoidance
of doubt, any interpretation of Accounting Research Bulletin No. 51 by the
Financial Accounting Standards Board shall constitute an adoption, change,
request or directive subject to this Section 10.3; provided,
however that the Borrower shall not incur any obligation to pay any amounts
with respect to such increased cost or such reduction for five (5) Business
Days after notice thereof is given by the Administrative Agent to the Borrower.

 

(h)           The following
paragraph (c) is added to the end of Section 14.5:

 

(c)           Notwithstanding anything to the
contrary in this Agreement or any other Transaction Document, each party hereto
(and each employee, representative, or 

 

2

 

other agent of
such party) may disclose to any and all persons, without limitation of any
kind, the tax treatment and tax structure of the transaction and all materials
of any kind (including opinions or other tax analyses) that are provided to
such party relating to such tax treatment and tax structure.

 

(i)            The definition of
“Blue Ridge Termination Date” in Exhibit I to the Agreement is hereby amended
and restated to read as follows:

 

Blue Ridge Termination Date:  November 13, 2003 or such later date as may
be agreed in writing from time to time by Borrower, Master Servicer, the Lender
and the Administrative Agent.

 

(j)            The definition of
“Commitment Termination Date” in Exhibit I to the Agreement is hereby amended
and restated to read as follows:

 

Commitment Termination Date:  With respect to each Committed Bank,
November 13, 2003 or such later date as may be agreed in writing from time to
time by Borrower, Master Servicer, the Lender, the Administrative Agent and
such Committed Bank.

 

(k)           The definition of
“Days Sales Outstanding” in Exhibit I to the Agreement is hereby amended and
restated in its entirety to read as follows:

 

Days Sales Outstanding:  For any Calculation Period, an amount equal
to the product of (i) the sum of the actual number of days in the three (3)
Calculation Periods including and immediately preceding the Cut-Off Date for
such Calculation Period, multiplied by (ii) the amount obtained by dividing (A)
the aggregate outstanding balance of Receivables as of the Cut-Off Date for
such Calculation Period, by (B) the aggregate sales generated by the Originator
of Receivables during the three (3) Calculation Periods including and
immediately preceding such Cut-Off Date.

 

(l)            The definition of
“Facility Account” in Exhibit I to the Agreement is hereby amended and restated
in its entirety to read as follows:

 

Facility
Account: 
Borrower’s account no. 1233053134 maintained with Bank of America, aba
no. 121000358.

 

(m)          The definition of
“Facility Termination Date” in Exhibit I to the Agreement is hereby amended and
restated in its entirety to read as follows:

 

Facility Termination Date:  The earlier of (i) the Committed Bank
Maturity Date and (ii) the Amortization Date.

 

(n)           The definition of
“Interest Reserve” in Exhibit I to the Agreement is hereby amended and restated
in its entirety to read as follows:

 

Interest Reserve:  For any Calculation Period, the product
(expressed as a percentage) of (i) 1.5 times (ii) the Alternate Base
Rate as of the Cut-Off Date for 

 

3

 

such Calculation Period times (iii) a
fraction the numerator of which is the highest Days Sales Outstanding for the
most recent 12 Calculation Periods (including such Calculation Period) and the
denominator of which is 360.

 

(o)           The definition of
“Servicing Reserve” in Exhibit I to the Agreement is hereby amended and
restated in its entirety to read as follows:

 

Servicing Reserve:  For any Calculation Period, the product
(expressed as a percentage) of (i) the Servicing Fee Rate, times (ii) a
fraction, the numerator of which is the highest Days Sales Outstanding for the
most recent 12 Calculation Periods (including such Calculation Period) and the
denominator of which is 360.

 

(p)           The following
definitions are hereby added to Exhibit I to the Agreement in alphabetical
order thereto:

 

Net Worth: 
As defined in the Receivables Sale Agreement.

 

Purchase Settlement Date:  As defined in the Receivables Sale
Agreement.

 

Required Capital Amount:  As defined in the Receivables Sale
Agreement.

 

Subordinated Note:  As defined in the Receivables Sale Agreement.

 

(q)           Notwithstanding the following defined
terms appearing in the Agreement and references to “immediately preceding
Cut-Off Date” appearing in such definitions, for the sole purpose of
calculating the Borrowing Base, the Required Reserve Factor Floor, the Loss
Reserve and the Dilution Reserve shall be calculated with respect to the
Cut-Off Date for the Calculation Period covered by the most recent Monthly
Report.

 

SECTION 2. 
Effective Date.  This
Amendment shall become effective as of the date first above written (the “Effective
Date”) on the date on which the Administrative Agent shall have received a
duly executed copy of the Third Amendment to the Receivables Sale Agreement by
and between the Borrower and the Originator, dated as of the date hereof.

 

SECTION
3.  Reference to and Effect on the
Agreement and the Related Documents.  (a) 
Upon the effectiveness of this Amendment, (i) each of the Borrower and
the Master Servicer hereby reaffirms all representations and warranties made by
it in Article V of the Agreement (as amended hereby) and agrees
that all such representations and warranties shall be deemed to have been
remade as of the Effective Date of this Amendment, (ii) each of the Borrower
and the Master Servicer hereby represents and warrants that no Amortization
Event, Unmatured Amortization Event, Termination Event or Unmatured Termination
Event, shall have occurred and be continuing and (iii) each reference in the Agreement
to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import
shall mean and be, and any references to the Agreement in any other document,
instrument or agreement executed and/or delivered in connection with the
Agreement shall mean and be, a reference to the Agreement as amended hereby.

 

4

 

(b)           Wachovia represents and warrants to LP and LP Receivables
that Wachovia is the sole Committed Bank and the sole Liquidity Bank.  Each of the Lender, the Administrative
Agent, the Committed Bank and the Liquidity Bank represents and warrants to LP
and LP Receivables that satisfaction of the Rating Agency Condition with
respect to this Amendment is not required for the effectiveness of this Amendment.

 

SECTION
4.  Effect.  Except as otherwise amended by this
Amendment, the Agreement shall continue in full force and effect and is hereby
ratified and confirmed.

 

SECTION
5.  Governing Law.  This Amendment will be governed by and
construed in accordance with the laws of the State of New York (without regard
to principles of conflicts of law other than Section 5-1401 of the New York
General Obligations Law).

 

SECTION
6. Severability.  Each provision of this Amendment shall be severable from every
other provision of this Amendment for the purpose of determining the legal
enforceability of any provision hereof, and the unenforceability of one or more
provisions of this Amendment in one jurisdiction shall not have the effect of
rendering such provision or provisions unenforceable in any other jurisdiction.

 

SECTION
7. Counterparts.  This Amendment may be executed in one or more counterparts, each
of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument. 
Delivery of an executed counterpart of a signature page by facsimile
shall be effective as delivery of a manually executed counterpart of this
Amendment.

 

[remainder of page intentionally left blank]

 

5

 

IN WITNESS
WHEREOF, the parties have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above
written.

 

	
   

  	
   

  	
   

  	
  LP
  RECEIVABLES CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  LOUISIANA-PACIFIC
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
							

 

 

[additional signatures to follow]

 

 

	
   

  	
   

  	
  BLUE RIDGE
  ASSET FUNDING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by:  Wachovia Securities, Inc.

  its Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WACHOVIA
  BANK, NATIONAL 

  ASSOCIATION,

  
	
   

  	
   

  	
  as
  Administrative Agent and Committed Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
							

 

 

[end of signatures]Exhibit
10.14(b)

 

LOUISIANA-PACIFIC
CORPORATION

EXECUTIVE LOAN PROGRAM

 

As Amended and Restated
July 27, 2003

 

1.               Purpose.  To provide loans to company executives for
the purchase by them of shares of company stock.  Such purchases shall be of shares of treasury stock held by the
company.

 

2.               Covered
Executives.  (a) The CEO,
all Vice Presidents and all other employees who are “executive officers” of the
company under Section 16 of the Securities Exchange Act of 1934,  (b) Business Team Leaders and (c) other
executives as designated by the CEO.

 

3.               Loan
Amount.  Equal to the
total cost of the shares of company stock purchased in one transaction by the
executive from the company during the 60-day period following the effective
date of this Executive Loan Program (the “Loan Program”) for such executive.
The loan shall be made upon written notification to the company by the
executive of the number of shares he or she desires to purchase.  Such shares shall be sold to the executive
on the date such notification is received by the company at a price equal to
the closing price of company stock on the New York Stock Exchange (NYSE) on
such date or, if there is no trading on the NYSE on such date, the next
preceding day on which there was such trading, and the necessary loan documents
for the loan in an amount equal to the cost of such shares shall be executed by
the parties as of such date.

 

4.               Maximum
Loan Amount.  Three (3)
times an executive’s  annual base pay as
of the effective date of the Loan Program for such executive.

 

5.               Minimum
Purchase and Loan.  To
qualify for the loan, the executive must purchase a minimum of 10,000 shares of
company stock.

 

6.               Maximum
Total Loans.  The lesser
of $20 million or 1.7 million shares of company stock.

 

7.               Interest
on Loan.  The interest
rate shall be the lowest prevailing rate that will avoid imputed interest under
Section 7872 of the Internal Revenue Code.

 

1

 

8.               Accrued
Interest.  Annual accrued
interest shall be added to the principal amount each year and shall be paid
when the principal amount becomes due.

 

9.               Term of
Loan.  Six years
following the expiration of the 60-day period referred to in paragraph 3 above,
except five years following the expiration of such 60-day period for those
executives who become covered executives on or after November 24, 2000, unless
earlier terminated as provided below.

 

10.         Security.  Loans shall be unsecured.

 

11.         Termination of Employment.  The outstanding amount of principal and
accrued interest under the loan shall be paid within 30 days following an
executive’s resignation or involuntary termination of employment.

 

12.         Loan
Forgiveness.  The provisions of
this Paragraph 12 apply to those executives with outstanding loans under the
Loan Program on or after November 24, 2000.

 

(a)                                  Length
of Service Forgiveness.  If the
executive remains continuously employed by the company until January 23, 2004,
January 23, 2005 or January 23, 2006 (“Applicable Forgiveness Dates”), the
following percentages of the original loan principal amount and the amount of
accrued interest as of such date shall be forgiven:

 

	
  Applicable  

  Forgiveness Date

  	
   

  	
  Original
  Loan  

  Principal Forgiveness

  	
   

  	
  Accrued
  Loan  

  Interest Forgiveness

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  January 23, 2004

  	
   

  	
  50 percent

  	
   

  	
  -0-

  	
   

  
	
  January 23, 2005

  	
   

  	
  25 percent

  	
   

  	
  50 percent

  	
   

  
	
  January 23, 2006

  	
   

  	
  25 percent

  	
   

  	
  100 percent

  	
   

  

 

In the event that, after January 23, 2001 and before
January 23, 2006, the executive terminates employment with the company by
reason of death, disability or involuntary termination by the company without
cause, the executive shall be forgiven a prorated amount of the loan principal
and accrued interest forgiveness percentages set forth above based upon his
actual period of employment by the company during the period January 23, 2001
(or his last Applicable Forgiveness Date, if later) to the next Applicable
Forgiveness Date following such termination. 
The provisions of paragraph 11 of the Loan Program shall 

 

2

 

apply to the remaining unforgiven loan principal and
accrued interest amounts.

 

(b)                                 Stock
Price Forgiveness.  In addition to
any loan principal and interest forgiveness provided under paragraph 12(a)
above based upon length of service, if the company stock has traded on the NYSE
at or above the price per share (“Price”) set forth below (to be appropriately
adjusted for any stock dividends or splits or recapitalizations that hereafter
occur) for at least five consecutive trading days during the 12-month period
immediately preceding an Applicable Forgiveness Date on which the executive
remains employed by the company, the following additional percentages of the
original loan principal amount and the amount of accrued interest as of such
date shall be forgiven:

 

	
  Applicable Forgiveness Date

  	
   

  	
  Price

  	
   

  	
  Additional

  Original Loan

  Principal Forgiveness

  	
   

  	
  Additional

  Accrued Interest 

  Forgiveness

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  January 23, 2004

  	
   

  	
  $

  	
  16.00

  	
   

  	
  25 percent

  	
   

  	
  50 percent

  	
   

  
	
   

  	
   

  	
  20.00

  	
   

  	
  50 percent

  	
   

  	
  100 percent

  	
   

  
	
  January 23, 2005

  	
   

  	
  18.00

  	
   

  	
  25 percent

  	
   

  	
  50 percent

  	
   

  
									

 

(c)                                  Certain
Terminations after November 2, 2001. 
In the event the executive terminates employment with the company after
November 2, 2001 by reason of death, disability, involuntary termination by the
company without cause or termination by the executive for good reason following
a Change in Control, the executive shall be forgiven (i) an amount of original
loan principal equal to the excess of the executive’s cost basis in the shares
of company stock purchased under the Loan Program over the fair market value of
such shares on such employment termination date, to the extent such amount
exceeds the amount of original loan principal forgiveness made under paragraphs
12(a) and 12(b) above on or before such date plus any amounts paid outside of
the Loan Program as severance that are determined by the amount of  loss on company stock purchased under the
Loan Program and (ii) 100 percent of the executive’s accrued loan interest
under the Loan Program as of such employment termination date.  For purposes of this paragraph 12(c), the
following definitions shall apply:

 

(1)                                  “cause”
shall mean (i) knowing and significant misconduct including, without
limitation, knowing violation of laws or 

 

3

 

regulations, that
demonstratively injures or damages the company or (ii) knowing and continued
failure to perform, after notice and opportunity to correct, the key duties of
his or her position with the company.

 

(2)                                  “good
reason” shall mean (i) a diminution in the executive’s position, authority,
duties or responsibilities, (ii) a reduction in the executive’s base salary or
annual incentive opportunity, (iii) a reduction in other employee benefits of
the executive not generally applicable to all employees in a similar position
or (iv) a requirement that the executive’s employment be  based at a location more than 25 miles from
its current location.

 

(3)                                  “Change
in Control” shall have the same meaning as set forth in Section 2.5 of the
Louisiana-Pacific Corporation Deferred Compensation Plan as in effect November
3, 2001.

 

(4)                                  “fair
market value” shall mean the mean between the high and low trading prices per
share of company stock on the New York Stock Exchange on the applicable
termination of employment date or, if the company stock was not traded on that
date, on the next preceding day on which such stock is traded.

 

(d)                                 Stock
Ownership.  Notwithstanding
paragraphs (a), (b) and (c) above, no amount of loan principal or interest
shall be forgiven on a forgiveness date if the executive no longer owns on such
date, directly or beneficially, all of the shares of company stock originally
purchased under the Loan Program; provided, however, that the foregoing shall
not apply to an executive who is not an “executive officer” of the company
under Section 16 of the Securities Exchange Act of 1934 on July 27, 2003, if,
on any such forgiveness date occurring on or after July 27, 2003, the executive
owns, directly or beneficially, at least that percentage of such stock that
equals the percentage of the executive’s original loan principal amount
hereunder that remains unforgiven under this Section 12 (1) immediately
preceding such forgiveness date or (2) immediately following such forgiveness
date if the executive sells any portion of such stock prior to such forgiveness
date and the executive has (i) deposited with the company, under arrangements
satisfactory to the company, the entire net proceeds of all such sales up to
the amount determined by the company as necessary to pay all of the executive’s

 

4

 

estimated withholding and
payroll taxes that will be due as a result of such forgiveness and (ii) sold no
more than the number of shares necessary to realize net proceeds equal to the
amount of such taxes.

 

13.         Loan Forgiveness - Income
Taxes.   In the event of loan forgiveness under Paragraph 12 above, the
executive shall be required to make arrangements satisfactory to the company
for payment of all withholding and payroll taxes due in connection with such
forgiveness.  At the option of the
executive, or at the option of the company if no other arrangement  for tax payment by the executive is made,
income and other taxes that become payable by the executive with respect to
such loan forgiveness and which are required to be withheld and paid over by
the company may be satisfied by the transfer by the executive to the company of
shares of company stock purchased under the Loan Program equal in fair market
value to the amount of the tax obligation.

 

14.         Dividends.  Dividends paid on company stock that is
subject to a loan under the Loan Program shall be paid to the executive.  Shares issued as a result of a stock
dividend or split or recapitalization shall be issued in the name of the
executive and held pursuant to the custody agreement referred to in Paragraph
15 below.

 

15.         Loan Documents.  As a condition of receiving the loan or any
extension thereof, the executive shall execute a promissory note and such other
agreements as may be required by the company including, subject to applicable
law, a custody agreement with respect to the stock purchased under the Loan
Program and agreement authorizing the company to deduct any loan amount due and
payable from any amounts owed by the company to the executive as compensation
or otherwise.

 

16.         Securities Laws.  Purchases and sales of company stock
pursuant to the Loan Program shall comply in all respects to federal and state
securities laws and the company’s policies on insider trading.

 

17.         Effective Date.  The Loan Program is effective November 24,
1999 as to executives who are covered executives under Paragraph 2 above during
the period November 24, 1999 to January 23, 2000.  The Loan Program is effective November 24, 2000 for all other
executives who are covered executives under Paragraph 2 above during the period
November 24, 2000 to January 23, 2001.

 

5

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