Document:

Lease Agreement

  
 Exhibit 10.2

 SECOND SEQ CHAPTER \h \r 1COMMERCIAL LEASE AGREEMENT 
 THIS LEASE AGREEMENT is made and entered into November 1, 2010, by and between The Levine Family Trust, whose address is 8929 University Center Lane, Suite 100, San Diego, California 92122,
(hereinafter referred to as “Landlord”), and Orange 21 North America Inc., a California corporation (formerly known as “Spy Optic, Inc.”), whose address is 2070 Las Palmas Drive, Carlsbad, California 92011, (hereinafter referred
to as “Tenant”). 
 ARTICLE I - GRANT OF LEASE 
 Section 1. Leased Premises. Landlord, in consideration of the rents to be paid and the covenants, conditions and agreements to be performed and observed by the Tenant, does hereby lease to the Tenant and
the Tenant does hereby lease and take from the Landlord the property commonly known as 2070 Las Palmas Drive, which consists of approximately 32,551 square feet, located in the County of San Diego, City of Carlsbad and the State of California,
together with, as part of the parcel, all improvements located thereon (the “Leased Premises”). 
 Section 2. Condition – As Is.
Tenant currently occupies the Premises pursuant to a Commercial Lease Agreement dated May 2005 and extensions thereof and prior to that occupied the Premises pursuant to a Sublease Agreement dated September 6, 2002, by and between Landlord and
Harris Corporation (“Harris”), subject to a Master Lease dated May 9, 1995 (“Master Lease”) covering, inter alia, the Leased Premises, by and between Harris and Landlord. Tenant hereby expressly acknowledges that it is
familiar with the Premises, having occupied the Premises pursuant to the Master Lease and the Sublease for a period of more than eight years, and accepts the Leased Premises “AS IS”. 

ARTICLE II - LEASE TERM 
 Section 1. Total Term
of Lease. The Term of this Lease shall begin on the commencement date, as defined in Section 2 of this Article II, and shall terminate on December 31, 2013. 
 Section 2. Commencement Date. The “Commencement Date” shall mean November 1, 2010. 
 Section 3. Expiration Date. The “Expiration Date” shall mean December 31, 2013. 

Section 4. Extensions. The parties hereto may elect to extend this Agreement upon such terms and conditions as may be agreed upon in writing and signed
by the parties at the time of any such extension. 
 Section 5. Holding Over. Tenant shall not have the right to hold over and continue
occupancy of the Leased Premises after the Expiration Date. In the event that Tenant or anyone claiming under Tenant shall continue occupancy of the Leased Premises after the expiration of the term of

 
this Lease or any renewal or extension thereof without any agreement in writing between Landlord and Tenant with respect hereto, such occupancy shall not be deemed to extend or renew the term of
the Lease, but such occupancy shall continue as a tenancy at will, from month to month, upon the covenants, provisions and conditions herein contained. During any such hold over period, the rental shall be one-hundred and twenty five percent
(125%) the rental in effect during the term of this Lease as extended or renewed, prorated and payable for the period of such occupancy. 

ARTICLE III - RENT 
 The Tenant agrees to pay
the Landlord and the Landlord agrees to accept, during the term hereof, at such place as the Landlord shall from time to time direct by notice to the Tenant, rent at the following rates and times: 

Section 1. Base Rent. Base Rent during the Term of this Lease shall be Twenty-eight Thousand, Three Hundred and Nineteen dollars ($28,319) per month as
adjusted on an annual basis on the anniversary of the Lease Commencement Date as set forth in the Schedule of Rent attached hereto as Exhibit A. 
 Reference to Base Rent hereunder shall not be implied or construed to the effect that the obligation to pay rent hereunder is for any term shorter than the Lease Term set forth hereunder, plus any
extensions as may be agreed upon. 
 Section 2. Payment of Rent. Tenant shall cause payment of the Base Rent, Additional Rent, other rent
and charges, as the same may be adjusted from time to time, to be received by Landlord in lawful money of the United States, without offset or deduction, on or before the first day of each and every calendar month during the Term hereof. Base Rent,
Additional Rent, other rent and charges for any period during the Term which is for less than one (1) full calendar month shall be prorated based upon the actual number of days of the calendar month involved. 

Section 3. Late Charge. A late fee in the amount of six percent (6%) shall be assessed if payment of Base Rent, Additional Rent and other charges
due under this Lease is not received by Landlord on or before the fifth day of each month. This late fee shall constitute Additional Rent, and shall be payable in addition to all other sums due under this Lease. 

Section 4. Additional Rent. As used in this Lease, the term Additional Rent refers to all sums Tenant is obligated to pay to Landlord in addition to the
Base Rent, including, but not limited to, late fees, if any, Real Property Taxes, costs and expense of insurance, costs and expenses of utilities, costs and expenses of maintenance and repair, and such other costs and expenses set forth in the Lease
to the extent the same are not paid directly by Tenant. 
 ARTICLE IV - SECURITY DEPOSIT 

Section 1. The Tenant currently occupies the Premises pursuant to a Commercial Lease Agreement dated May 2005 and extensions thereof, under which Tenant
made, and Landlord is 

 
currently holding a security deposit of $25,000. 
 Section 2. All or any portion of
the security deposit may be used, as reasonably necessary, to: (i) cure Tenant’s default in payment of Rent, late charges, non-sufficient funds (“NSF”) fees, or other sums due; (ii) repair damage, excluding ordinary wear and
tear, caused by Tenant or by a guest or licensee of Tenant; (iii) broom clean the Premises, if necessary, upon termination of tenancy; and (iv) cover any other unfulfilled obligation of Tenant. SECURITY DEPOSIT SHALL NOT BE USED BY TENANT
IN LIEU OF PAYMENT OF LAST MONTH’S RENT. If all or any portion of the security deposit is used during tenancy, Tenant agrees to reinstate the total security deposit within 5 days after written notice is delivered to Tenant. Within 30 days after
Landlord receives possession of the Premises, Landlord shall: (i) furnish Tenant an itemized statement indicating the amount of any security deposit received and the basis for its disposition, and (ii) return any remaining portion of
security deposit to Tenant. 
 Section 3. No interest will be paid on security deposit, unless required by local ordinance. 

ARTICLE V - CONDITION OF THE LEASED PREMISES 

Section 1. Condition – AS IS. Tenant hereby expressly acknowledges that it is familiar with the Premises, having occupied the Premises pursuant to
the Commercial Lease Agreement, Master Lease and the Sublease for a period of more than eight years, and accepts the Premises “AS IS”. Tenant hereby acknowledges: (i) that it has occupied the Premises for more than eight years prior
to the execution of this lease and has had the opportunity to satisfy itself with respect to the condition of the Premises, including, but not limited to, the utilities, the electrical, mechanical, and fire sprinkler systems, security, environmental
aspects, compliance with applicable laws, codes and ordinances, and the current and future suitability of the Premises for Tenant’s intended use; (ii) that Tenant has made such investigation as it deems necessary with reference to such
matters and assumes all responsibility therefor as the same relate to Tenant’s occupancy of the Premises and/or the Term of the Lease; (iii) that neither Landlord nor any of Landlord’s agents have made any oral or written
representations or warranties with respect to such matters other than as expressly set forth in this Lease; and (iv) that nothing herein, including the acceptance of the Premises in AS IS condition, shall be deemed or construed to constitute a
waiver of Tenant’s obligations to maintain, repair and restore the Premises under the terms of the Sublease, the original Commercial Lease Agreement dated May 2005 and this Second Commercial Lease Agreement. 

ARTICLE VI - TAXES 
 Section 1. Personal
Property Taxes. The Tenant shall pay prior to delinquency all taxes levied against any leasehold interest of the Tenant, Tenant owned improvements, Trade Fixtures, furnishings, equipment and all personal property of Tenant owned or placed by the
Tenant in the Leased Premises. When possible, Tenant shall cause its Trade Fixtures, furnishings, equipment and all personal property of Tenant to be assessed separately from the real property of Landlord. If any of Tenant’s said persona
property shall be assessed with landlord’s real property, Tenant shall pay Landlord the Taxes attributable to Tenant within ten (10) days after the written statement setting forth the taxes applicable to Tenant’s property, unless
previously paid by 

 
Tenant pursuant to the terms of this Article. 
 Section 2. Real Estate Taxes. During
the continuance of this Lease Landlord shall deliver to Tenant a copy of any real estate taxes and assessments against the Leased Property. From and after the Commencement Date, the Tenant shall pay all Real Property Taxes applicable to the Lease
premises during the Term of this Lease. All such payments shall be made not less than ten (10) days prior to the delinquency date of the applicable installment. Tenant shall furnish Landlord with satisfactory evidence that such taxes have been
paid. If any such taxes paid by Tenant shall cover any period of time prior to the Commencement date or after the Expiration Date or earlier termination hereof, Tenant’s share of such taxes shall be equitably prorated to cover only the period
of time within the tax fiscal year that this Lease is in effect, and Landlord shall reimburse Tenant for any overpayment after such proration. If Tenant fails to pay and Real Property Taxes required by this Lease to be paid by Tenant, Landlord shall
have the right to pay the same, and Tenant shall reimburse Landlord therefor on demand, together with any interest and penalties lawfully imposed thereon as a result of Tenant’s failure to make the timely payment thereof, which shall be levied
upon the Leased Premises during the term of this Lease. 
 Section 3. Advance Payment of Real Property Taxes. In order to insure payment
when due and before delinquency of any Real Property Taxes, Landlord reserves the right, at Landlord’s option, to estimate current Real Property Taxes applicable to the Leased Premises, and to require such current year’s Real Property
Taxes to be paid in advance to Landlord by Tenant, either (I) in a lump sum payment equal to the installment due at least twenty (20) days prior to the applicable delinquency date; or (ii) monthly in advance with the payment of the
Base Rent. If Landlord elects to require payment monthly in advance, the monthly payment shall be that equal monthly amount which, over the number of months remaining before the month in which the applicable tax installment would become delinquent
(and without interest thereon), would provide a fund large enough to fully discharge before delinquency the estimated installment of taxes to be paid. When the actual amount of the applicable tax bill is known, the amount of such equal monthly
payment shall be adjusted as required to provide the fund needed to pay the applicable taxes before delinquency. If the amounts paid to Landlord by Tenant under the provisions of this paragraph are insufficient to discharge the obligations of Tenant
to pay such Real Property Taxes as such become due, Tenant shall pay Landlord, upon Landlord’s demand, such additional sums as are necessary to pay such obligations. All money paid to Landlord under this paragraph may be mingled with other
money of Landlord and shall not bear interest. In the event of a breach by Tenant in the performance of any obligations of Tenant under this Lease, then any balance of funds paid to Landlord under the provisions of this paragraph may at the option
of Landlord, be treated as an additional Security Deposit. 
 Section 4. Definition of Real Property Taxes. As used herein, the term “Real
Property Taxes” shall include any form of real estate tax or assessment, general, special, ordinary or extraordinary, and any license fee, commercial rental tax, improvement bond or bonds, levy or tax (other than inheritance, personal income or
estate taxes) imposed upon the Leased Premises by any authority having the direct or indirect to tax, including any city, state or federal government, or any school, agricultural, sanitary, fire, street, drainage or other improvement district
thereof, levied against any legal or equitable of Landlord in the Leased Premises or in the real property of which the Leased Premises are a part, Landlord’s right to rent or other income

 
therefrom and/or Landlord’s business of leasing the Leased Premises. The term “Real Property Taxes shall also include any tax, fee, levy, assessment or charge, or any increase therein,
imposed by reason of events occurring, or changes in applicable law taking effect, during the Term of this Lease, including, but not limited to, a change in the ownership of the Leased Premises or in the improvements thereon, the execution of this
Lease, or any modification, amendment or transfer thereof, and whether or not contemplated by the parties. 
 Section 5. Contest of Taxes. The
Tenant, at its own cost and expense, may, if it shall in good faith so desire, contest by appropriate proceedings the amount of any personal or real property tax. The Tenant may, if it shall so desire, endeavor at any time or times, by appropriate
proceedings, to obtain a reduction in the assessed valuation of the Leased Premises for tax purposes. In any such event, if the Landlord agrees, at the request of the Tenant, to join with the Tenant at Tenant’s expense in said proceedings and
the Landlord agrees to sign and deliver such papers and instruments as may be necessary to prosecute such proceedings. Notwithstanding the foregoing, Tenant shall be required to pay all Real Property Taxes and personal property taxes, as set forth
herein, no less than twenty (20) days prior to the applicable delinquency date. 
 ARTICLE VII - UTILITIES 

Section 1. Utilities. Tenant shall pay for all water, sanitation, sewer, electricity, light, heat, gas, power, fuel, janitorial, and other services
incident to Tenant’s use of the Leased Premises together with any taxes thereon, whether or not the cost thereof be a charge or imposition against the Leased Premises. If any such services are not separately metered to Tenant, Tenant shall pay
a reasonable proportion, to be determined by Landlord, of all charges jointly metered with other premises. 
 ARTICLE IX - INSURANCE; INDEMINTY

 Section 1. Payment for Insurance. Tenant shall secure Liability Insurance, Property Insurance and Tenant’s Property Insurance as section
in Sections 2 through 4, following. In the event that Tenant either fails to secure such insurance or fails to provide Landlord with satisfactory written evidence that all such insurance is in force, Landlord shall become the insuring party and
shall be entitled to secure such Liability Insurance, Property Insurance and Tenant’s Property Insurance. Regardless of whether the Landlord or the Tenant is the insuring party, Tenant shall pay for all insurance required under the terms of
this Lease except to the extent of the cost attributable to liability insurance carried by Landlord in excess of $1,000,000 per occurrence. In the event that Landlord is the insuring party, premiums for policy periods commencing prior to or
extending beyond the Lease Term shall be prorated to correspond to the Lease Term. Also in the event that Landlord is the insuring party, Payment shall be made by Tenant to Landlord within ten (10) days following receipt of an invoice for any
amount due and shall constitute Additional Rent. 
 Section 2. Liability Insurance. 

(A) Carried by Tenant. Tenant shall obtain and keep in full force and effect during the Term of this Lease and any renewals or extensions
thereof a Comprehensive General Liability 

 
Policy of Insurance protecting Tenant and Landlord (as an additional named insured) against claims for bodily injury, personal injury, and property damage based upon, involving, or arising out of
the ownership, use, occupancy or maintenance of the Leased Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing for single limit coverage in an amount not less than $1,000,000 per occurrence with an
Additional Insured - Managers or Lessors of Premises Endorsement. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an insured
contract for the performance of Tenant’s indemnity obligations under this Lease. The terms of said insurance required by this Lease or as carried by Tenant shall not, however, limit the liability of Tenant nor relieve Tenant of any obligation
hereunder. All insurance carried by Tenant shall be primary to and not contributory with any similar insurance carried by Landlord, whose insurance shall be considered excess insurance only. Tenant shall provide Landlord with written evidence that
such insurance is in force. 
 (B) Carried by Landlord. In the event Tenant fails to secure such Liability Insurance, or fails
to provide Landlord with satisfactory written evidence that such insurance is in force, Landlord shall become the insuring party and shall also maintain liability insurance, described in Section 2.(A) preceding, in addition to, and not in lieu
of, the insurance required to be maintained by Tenant. Tenant shall not be named as an additional named insured therein. 
 Section 3. Property
Insurance – Building, Improvements and Rental Value 
 (A) Building and Improvements. Tenant shall obtain and keep in full
force and effect during the Term of this Lease a policy or policies in the name of Landlord, with the loss payable to Landlord and to the holders of any mortgage, deeds of trusts or ground leases on the Leased Premises (“Lenders”),
insuring loss or damage to the Leased Premises. The amount of such insurance shall be equal to the full replacement cost of the Leased Premises, as the same shall exist from time to time, or the amount required by the Lenders, but in no event more
than the commercially reasonable and available insurable value thereof if, by reason of the unique nature or age of the improvements involved, such later amount is less than full replacement cost. If Landlord is the Insuring Party, however, Tenant
owned improvements shall be insured by Tenant under Section 4 following rather than by Landlord. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage
(except the perils of flood and/or earthquake unless required by Lenders), including any additional costs resulting from debris removal and reasonable amounts of coverage for the enforcement of any ordinance or law regulating the reconstruction or
replacement of any undamaged sections of the Leased Premises required to be demolished or removed by enforcement of any building, zoning, safety or land use laws as a result of the covered loss. Said policy or policies shall include an agreed
valuation clause in lieu of any coinsurance, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price
Index for San Diego, California. If such insurance coverage has a deductible clause, the deductible shall not exceed $5,000 per occurrence, and Tenant shall be liable for any deductible amount in the event of an insured loss. Tenant shall provide
Landlord with written evidence that such insurance is in force. 

  
 (B) Rental Value.
Tenant shall, in addition, obtain and keep in full force and effect during the Term of this Lease a policy or policies in the name of the Landlord, with loss payable to Landlord and Lenders, insuring the loss of the full rental and other charges
payable by Tenant to Landlord under this Lease for one (1) year (including all real estate taxes, insurance costs, and any scheduled rent increases). Said insurance shall provide that in the event the Lease is terminated by reason of an insured
loss, the period of indemnity for such coverage shall be extended beyond the date of the completion of repairs or replacement of the Leased Premises, to provide for one (1) full year’s loss of rental revenues from the date of any such
loss. Said insurance shall contain an agreed valuation clause in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected rental income, property taxes, insurance premium costs and other
expenses, if any, otherwise payable to Landlord, for the next twelve (12) month period. Tenant shall be liable for any deductible amount in the event of an insured loss. Tenant shall provide Landlord with written evidence that such insurance is
in force. 
 (C) Tenant’s Improvements. If the Landlord is the Insuring Party, the Landlord shall not be required to insure
Tenant owned improvements, property or fixtures, unless the item in question has become the property of and owned by the Landlord under the terms of this Lease. If the Tenant is the Insuring Party, the policy carried by Tenant shall insure all such
property. 
 Section 4. Tenant’s Property Insurance. Tenant at its cost shall either by separate policy or, at Landlord’s option, by
endorsement to a policy already carried, maintain insurance coverage on all of Tenant personal property and Tenant owned improvements in, on or about the Leased Premises similar in coverage to that carried by the Insuring Party under Section 3,
preceding. The proceeds from any such insurance shall be used by Tenant for the replacement of its personal property or the restoration of Tenant owned improvements. Tenant shall provide Landlord with written evidence that such insurance is in
force. 
 Section 5. Insurance Policies. Insurance required hereunder shall be in companies duly licensed to transact business in California and
such companies shall be acceptable to the Landlord and Lenders. Tenant shall not do or permit to be done anything which shall invalidate the insurance policies referred to in this Article. If Tenant is the Insuring Party, Tenant shall cause to be
delivered to Landlord certified copies of policies of such insurance or certificates evidencing the existence and amounts of such insurance with the insureds and loss payable clauses as required by this Lease. No such policy shall be cancelable or
subject to modification except after thirty (30) days prior written notice to Landlord. Tenant shall, at least thirty (30) days prior to the expiration of such policies, furnish Landlord with evidence of renewals or insurance binders
evidencing renewals thereof, or Landlord may order such insurance and charge the cost thereof to Tenant, which amount shall be payable by Tenant to Landlord upon demand. If the Insuring Party shall fail to procure and maintain the insurance required
to be carried under the terms of this Lease, the other party may, but shall not be required to, procure and maintain the same, but at Tenant’s expense. 
 Section 6. Waiver of Subrogation. Without affecting any other rights, Landlord and Tenant (“Waiving Party”) each hereby release and relieve the other, and waive the entire right to recover
damages (whether in contract or in tort) against the other, for loss or damage to the Waiving 

 
Party’s property arising out of or incident to the perils required to be insured against under this Article. The effect of such releases and waivers of the right to recover damages shall not
be limited by the amount of insurance carried or required or by any deductible applicable thereto. 
 Section 7. Indemnification. Except for
Landlord’s negligence and/or breach of express warranties, Tenant shall indemnify, protect, defend and hold harmless the Leased Premises, Landlord and its agents, ground lessors, partners and Lenders from and against any and all claims, loss of
rents and/or damages. Costs, liens, judgments, penalties, permits, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in dealing with the occupancy of the Leased Premises by Tenant, the conduct of
Tenant’s business, any act, omission, or neglect of Tenant, its agents, contractors, employees or invitees, and out of any Default or Breach by Tenant by Tenant in the performance in a timely manner of any obligation on Tenant’s part to be
performed under this Lease. The foregoing shall include, but not be limited to, the defense or pursuit of any claim or any action or proceeding involved therein, and whether or not litigated and/or reduced to judgment, and whether well founded or
not. In case any action or proceeding be brought against Landlord, its agents, or employees by reason of any of the foregoing matters, Tenant upon notice from Landlord shall defend the same at Tenant’s expense by counsel reasonable satisfactory
to, and chosen by, Landlord, and Landlord shall cooperate with Tenant in such defense. Landlord need not have first paid any such claim or cost in order to be so indemnified. 
 ARTICLE X - OBLIGATIONS FOR REPAIRS 
 Section 1. Tenant’s Repairs. 

(A) Subject to the provisions of Article XII (relating to destruction of the Leased Premises) and Article XIII (relating to
condemnation), Tenant at Tenant’s sole cost and expense and at all times shall keep the Leased Premises and every part thereof in good order, condition and repair, structural and non-structural (whether or not such portion of the Leased
Premises requiring repairs, or the means of repairing the same, are reasonably and readily accessible to Tenant, and whether or not the need for such repairs occurs as a result of Tenant’s use, any prior use, the elements or the age of such
portion of the Leased Premises), including without limiting the generality of the foregoing, all equipment or facilities servicing the Leased Premises, such as plumbing, heating, air conditioning, ventilating, electrical, lighting systems, boilers,
fired or unfired pressure vessels, fire sprinkler and/or standpipe and hose or other automatic fire extinguishing systems, including fire alarm and/or smoke detection systems and equipment, fire hydrants, fixtures, walls (interior and exterior),
foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs sidewalks, and parkways located in, on, under or about the Leased Premises. Tenant shall not cause or
permit any Hazardous Substance to be spilled or released in, on, under or about the Leased Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Tenant’s expense, take all investigatory and/or remedial action
reasonably recommended, whether or not formally ordered or required, for the cleanup of contamination of, and for the maintenance, security and/or monitoring of the Leased Premises, the elements surrounding the same, or neighboring properties, that
was caused, permitted or materially contributed to by Tenant, or pertaining to or involving any Hazardous Substance and/or storage tank brought onto 

 
the Leased Premises by or for Tenant or under its control. Tenant in keeping the Premises in good order, condition and repair shall exercise and perform good maintenance practices. Tenant’s
obligations shall include restorations, replacements or renewals when necessary to keep the Leased Premises and all improvements thereon or a part thereof in good order, condition and state of repair. 

(B) Tenant shall, at Tenant’s sole cost and expense, procure and maintain contracts, with copies to Landlord, in customary form
and substance for, and with contractors specializing and experienced in, the inspection, maintenance and service of the following equipment and improvements, if any, located on the Leased Premises: (i) heating, air conditioning and ventilation
systems; (ii) boiler, fired or unfired pressure systems; (iii) fire sprinkler and/or standpipe and hose or other automatic fire extinguishing systems, including fire alarm and/or smoke detection systems and equipment; (iv) landscaping
and irrigation systems; (v) roof covering and drain maintenance; and (vi) asphalt and parking lot maintenance. 
 Section 2.
Landlord’s Repairs. Except for the warranties and representations of the Landlord contained in Article XII (relating to destruction of the Leased Premises) and Article XIII (relating to condemnation), it is intended by the Parties hereto that
Landlord shall have no obligation, in any manner whatsoever, to repair or maintain the Leased Premises, the improvements located thereon, or the equipment therein, whether structural or non-structural, all of which are intended to be the obligation
of Tenant pursuant to Section 1 preceding. It is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Leased Premises. Landlord and Tenant expressly waive
the benefit of any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease with respect to, or which affords Tenant to make repairs at the cost of Landlord or to terminate the Lease by reason of any needed
repairs. 
 Section 3. Requirements of the Law. Tenant has occupied the Leased Premises for more than eight years prior to the execution of this
lease and has had the opportunity to satisfy itself with respect to the condition of the Premises, including, but not limited to, the utilities, the electrical, mechanical, and fire sprinkler systems, security, environmental aspects, compliance with
applicable laws, codes and ordinances, and the current and future suitability of the Leased Premises for Tenant’s intended use and that Tenant has made such investigation as it deems necessary with reference to such matters and assumes all
responsibility therefor as the same relate to Tenant’s occupancy of the Leased Premises and/or the Term of the Lease. 
 Section 4.
Tenant’s Alterations. 
 (A) Definitions. The term “Utility Installations” is used in this Lease to refer to
all carpeting, window coverings, air lines, power panels, electrical distribution, security, fire protection systems, communication systems, lighting fixtures, heating ventilating and air conditioning equipment, plumbing and fencing in, on or about
the Leased Premises. The term “Trade Fixture” shall mean Tenant’s machinery and equipment that can be removed without doing material damage to the Leased Premises. The term “Alteration” shall mean any modification of the
improvements of the Leased Premises from that which is provided by Landlord under the terms of this Lease, other than Utility Installations or Trade Fixtures, whether 

 
by addition or deletion. 
 (B) Consent Required. Tenant shall not
make any Alterations or Utility Installments in, on, under or about the Leased Premises without Landlord’s prior written consent. The Tenant, however, shall have the right, at its sole expense, from time to time, and to make such non-structural
Utility Installations in such parts thereof as the Tenant shall deem expedient or necessary for its purposes; provided, however, that no such Utility Installations shall be made to the roof and all other such Utility Installations shall not be
visible from the outside, shall not involve puncturing, relocating, or removing the roof or any of the existing walls, and shall neither impair the structural soundness nor diminish the value of the Leased Premises and the cumulative cost thereof
during the term of the Lease as extended does not exceed $25,000. 
 Section 5. Permits and Expenses. To the extent that Tenant makes Utility
Installations, Alterations, installs Trade Fixtures and/or makes repairs, as required or permitted pursuant to this Lease, Tenant agrees that it will procure all necessary permits for making any repairs, alterations, or other improvements for
installations, when applicable. Tenant shall give written notice to Landlord of any repairs required pursuant to the provisions of this Article and Tenant agrees promptly to commence such repairs or alterations and to prosecute the same to
completion diligently, subject, however, to the delays occasioned by events beyond the control of Tenant. 
 Section 6. Payment for Repairs
and Alterations. Tenant agrees to pay promptly when due the entire cost of any work done by it upon the Leased Premises so that the Leased Premises at all times shall be free of liens for labor and materials. Tenant further agrees to hold harmless
and indemnify the other party from and against any and all injury, loss, claims or damage to any person or property occasioned by or arising out of the doing of any such work by such party or its employees, agents or contractors. Tenant further
agrees that in doing such work that it will employ materials of good quality and comply with all governmental requirements, and perform such work in a good and workmanlike manner. 
 Section 7. Ownership; Removal; Surrender; and Restoration. 
 (A) Ownership.
Subject to Landlord’s right to require their removal, all Alterations and Utility Installations made to the Leased Premises shall become the property of and owned by the Landlord, but considered a part of the Leased Premises. Unless otherwise
instructed per Section 7.(B) hereof, all Alterations and Utility Installations shall, at the Expiration Date or earlier termination of this Lease, be the property of the Landlord and remain upon and be surrendered to Landlord with the Leased
Premises. 
 (B) Removal. Unless otherwise agreed in writing, Landlord may require that any or all Alterations or Utility
Installations made by Tenant, whether during the term of the Sublease, the original Commercial Lease Agreement and extensions thereof or this Second Commercial Lease Agreement, be removed by the Expiration Date or earlier termination of this Lease,
notwithstanding their installation may have been consented to by Landlord. Landlord may require the removal at any time of all or part of any Alterations or Utility Installations made without the required consent of the Landlord. 

  
 (C) Existing
Non-Permitted Alterations. Tenant expressly acknowledges that during the term of the Master Lease, Sublease, and/or the original Commercial Lease Agreement and extensions thereof certain Utility Installations, Alterations, Trade Fixture
installations and/or repairs have been performed for which permits were required, but no such permits were obtained and no prior consent was obtained from Landlord. Tenant previously expressly and separately agreed with respect to such modifications
performed without first obtaining the necessary permits and consent, to take all steps necessary to obtain the permits for such Utility Installations, Alterations, Trade Fixture installations and/or repairs, or to restore the Leased Premises to its
original condition prior to the inception of the Master Lease. Tenant agrees that this is a continuing covenant under this Second Commercial Lease Agreement. 
 (D) Surrender; Restoration. Tenant shall surrender the Leased Premises by the last day of the Term of the Lease or any earlier termination date, with all of the improvements, parts, and surfaces thereof
clean and free of debris and in good operating order, condition and state of repair, Ordinary Wear and Tear excepted. “Ordinary Wear and Tear” shall not include any damage or deterioration which would have been prevented by good
maintenance practice or by Tenant performing all of its obligations under this Lease. Except as otherwise agreed or specified in writing by Landlord, the Leased Premises, when surrendered shall include all Utility Installations. The obligations of
Tenant shall include the repair of any damage occasioned by the installation, maintenance or removal of Tenant’s Trade Fixtures, furnishings, equipment and Alterations and/or Utility Installations, as well as the removal of any storage tank
installed by of for Tenant, and the removal, replacement or remediation of any soil, material or ground water contaminated by Tenant, all as may be then required by Applicable Law and/or good service and practice. Tenant’s Trade Fixtures shall
remain the property of Tenant and shall be removed by Tenant subject to Tenant’s obligation to repair and restore the Leased Premises pursuant to this Lease. 
 Section 8. Exemption of Landlord from Liability. Landlord shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Tenant, Tenant’s employees,
contractors, invitees, customers or any other person in or about the Leased Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other
defects of pipes, fire sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Leased Premises or upon portions of the
building of which the Leased Premises are a part, or from other sources or places, and regardless of whether the cause of such injury or damage or the means of repairing same is accessible or not. Notwithstanding Landlord’s negligence or breach
of this Lease, Landlord shall under no circumstances be liable for injury to Tenant’s business or for any loss of income or profit therefrom. 
 Section 9. Tenant specifically acknowledges that Tenant has a continuing duty of repair under the terms of the Sublease, the original Commercial Lease Agreement and extensions thereof, and this Second
Commercial Lease Agreement. Nothing in this Lease or the execution thereof shall be deemed or construed to constitute a waiver by Landlord of this continuing duty of repair, any prior breaches thereof, or the duty to restore the Premises by the last
day of the Term of the Lease or any earlier termination date. 

  
 ARTICLE XI - USE OF PROPERTY BY TENANT

 Section 1. Use. The Leased Premises may be occupied and used by Tenant exclusively for manufacturing, warehousing, general office and sales
activities of the business known as Orange 21 North America Inc., or Orange 21 Inc. Nothing herein shall give Tenant the right to use the property for any other purpose or to sublease, assign, or license the use of the property to any sublessee,
assignee, or licensee, which or who shall use the property for any other use. 
 Section 2. Hazardous Substances. 

(A) Reportable Uses Require Consent. The term “Hazardous Substances” as used in the Lease shall mean any product, substance,
chemical, material or waste whose presence, nature, quantity and/or intensity of existence, use, manufacture, disposal, transportation, spill release, or effect, either by itself or in combination with other materials expected to be on the Leased
Premises, is either (I) potentially injurious to the public health, safety or welfare, the environment or the Leased Premises, (ii) regulated or monitored by any governmental authority or third party under any applicable statute or common
law theory. Tenant shall not engage in any activity in, on or about the Leased Premises which constitutes a Reportable Use (as hereinafter defined) of Hazardous Substances without the prior express written consent of the Landlord and compliance in a
timely manner with all applicable laws. “Reportable Use” shall mean (I) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous
Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority. Reportable Use shall also include Tenant’s being responsible for the
presence in, on or about the Leased Premises of any Hazardous Substance. Landlord may (but without any obligation to do so) condition its consent to the use or presence of any Hazardous Substance, activity or storage tank by Tenant upon
Tenant’s giving Landlord such additional assurances as Landlord, in its sole discretion, deems necessary to protect itself, the public, the Leased Premises and the environment against damage, contamination, or injury and/or liability therefore
and therefrom, including, but not limited to, the installation (and removal on or before the Expiration Date or earlier termination) of reasonably necessary protective modifications to the Leased Premises and/or the deposit of additional security in
whatever form deemed necessary by Landlord. 
 (B) Duty to Inform Landlord. If Tenant knows, or has reasonable cause to believe,
that a Hazardous Substance, or a condition involving or resulting from same, has come to be located in, on or under the Leased Premises, Tenant shall immediately give written notice of such fact to Landlord. Tenant shall immediately give Landlord a
copy of any statement, report, notice, registration, application, permit, business plan, license, claim, action or proceeding given to, or received from, and governmental authority or private party, or persons entering or occupying the Leased
Premises, concerning the presence, spill, release, discharge of, or exposure to, any Hazardous Substance or contamination in, on or about the Leased Premises, including but not limited to all such documents as may be involved in any Reportable Uses
involving the Leased Premises. 

  
 (C) Indemnification.
Tenant shall indemnify, protect, defend and hold Landlord, its agents, employees, lenders, and assignees, if any, and the Leased Premises, harmless from and against any and all loss of rents and/or other damages, liabilities, judgments, costs,
claims, liens, expenses, penalties, permits and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance or storage tank brought onto the Leased Premises by or for Tenant or under Tenant’s control.
Tenant’s obligations under this paragraph shall include, but not be limited to, the effects of contamination or injury to person or property or the environment created or suffered by Tenant, and the cost of investigation, removal, remediation,
restoration and/or abatement thereof, or of any contamination therein involved, and shall survive the expiration or early termination of this Lease. No termination, cancellation or release agreement entered into by Landlord and Tenant shall release
Tenant from its obligations under this Lease with respect to Hazardous Substances or storage tanks, unless specifically and expressly so agreed by Landlord in writing at the time of such agreement. 

Section 3. Tenant’s Compliance with Law. Tenant shall, at Tenant’s sole cost and expense, fully, diligently, and in a timely manner, comply
with all Applicable Law, which in this Lease shall mean all laws, regulations, ordinances, directives, covenants, easements, and restrictions of record, permits, the requirements of any fire insurance underwriter or rating bureau and the
recommendations of Landlord’s engineers and/or consultants, relating in any manner to the Leased Premises, now in effect or which may hereafter come into effect, and whether or not reflecting a change in policy from any previously existing
policy. Tenant shall, within five (5) days of Landlord’s written request, provide Landlord with copies of all documents and information evidencing Tenant’s compliance with Applicable Law specified by Landlord, and shall immediately
upon receipt, notify Landlord in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving and failure by Tenant or the Leased Premises to comply with
any Applicable Law. 
 ARTICLE XII - DAMAGE OR DESTRUCTION 
 Section 1. Definitions. 
 (A) “Premises Partial Damage” shall mean
damage or destruction to the improvements on the Leased Premises, other than Tenant owned improvements, the repair cost of which is less than 50% or more of the then Replacement Cost of the Leased Premises immediately prior to such damage or
destruction, excluding from such calculation the value of the land and Tenant owned improvements. 
 (B) “Premises Total
Destruction” shall mean damage or destruction to the improvements on the Leased Premises, other than Tenant owned improvements, the repair cost of which is 50% or more of the then Replacement Cost of the Leased Premises immediately prior to
such damage or destruction, excluding from such calculation the value of the land and Tenant owned improvements. 

  
 (C) “Insured
Loss” shall mean damage or destruction to improvements on the Leased Premises other than Tenant owned improvements, which was caused by an event required to be covered by the insurance policies described herein, irrespective of any deductible
amounts or coverage limits involved. 
 (D) “Replacement Cost” shall mean the cost to repair or rebuild the
improvements owned by Landlord as the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of applicable building codes, ordinances or laws, and
without deduction for depreciation. 
 Section 2. Partial Damage – Insured Loss. If a Premises Partial Damage that is an Insured Loss
occurs, then Landlord shall, at Tenant’s expense, repair such damage (but not Tenant’s Trade Fixtures or Tenant owned improvements) as soon as reasonably possible and this Lease shall continue in full force and effect, provided, however,
that Tenant shall, at Landlord’s election, make the repair of any damage or destruction the total cost of repair of which is $10,000 or less, and, in such event, Landlord shall make the insurance proceeds, if any, available to Tenant on a
reasonable basis for that purpose. Notwithstanding the foregoing, if the required if the insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the party responsible to maintaining the insurance shall promptly
contribute the shortage in proceeds (except as to the deductible which is the Tenant’s responsibility) as and when required to complete said repairs. Premises partial damage due to flood or earthquake shall be subject to Section 3,
following, rather than this Section, notwithstanding that there may be some insurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either party. 

Section 3. Partial Damage – Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by the negligent or
willful act of Tenant (in which case Tenant shall make the repairs at Tenant’s expense and this Lease shall continue in force, but subject to Landlord’s rights under Article XV pertaining to Remedies), Landlord may at Landlord’s
option either: (i) repair such damage as soon as reasonable possible at Landlord’s expense, in which case this Lease shall remain in full force and effect; or (ii) give written notice to Tenant within thirty (30) days after
receipt of knowledge of the occurrence of such damage of Landlord’s desire to terminate this Lease as of the date sixty (60) days following the giving of such notice. 
 Section 4. Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate sixty (60) days following the date of such Premises Total
Destruction, whether or not the damage or destruction is an Insured Loss. In the event that the damage or destruction was caused by Tenant, Landlord shall have the right to recover Landlord’s damages from Tenant except as expressly waived or
released by Article IX, Section 6, hereof. 
 Section 5. Abatement or Adjustment of Rent – Tenant’s Remedies. 

(A) In the event of a Premises Partial Destruction caused by an Insured Loss, whether or not repaired by Landlord or Tenant, the
Base Rent, Additional Rent, Real Property Taxes, 

 
insurance premiums and other charges, if any, payable to Landlord hereunder for the period of such damage, its repair or restoration continues, but not to exceed the period for which rental value
insurance is required pursuant to the terms of this Lease, shall be abated in proportion to the degree to which Tenant’s use of the leased Premises is impaired. Except for abatement of the Base Rent, Additional Rent, Real Property Taxes,
insurance premiums and other charges, if any, all other obligations of Tenant hereunder shall be performed by Tenant, and Tenant shall have no claim against Landlord for any damage suffered by reason of such repair or restoration. 

(B) Notwithstanding the foregoing, if Landlord does not commence repair or restoration of the Premises within ninety (90) days of
the date of the occurrence of a Partial Premises Damage, then Tenant may at any time thereafter cancel and terminate this Lease by sending ninety (90) days written notice thereof to Landlord and Lenders, and if Landlord and/or Lenders fail to
commence repairs within thirty (30) days of the receipt of such notice, Tenant may give written notice to Landlord and any Lenders of which Tenant has actual knowledge of Tenant’s election to terminate this lease on a date not less than
thirty (30) days following the delivery of such notice to Landlord and Lenders and this Lease shall terminate as of the date specified in such notice. “Commence” as used in this Section shall mean either the unconditional
authorization of the preparation of the required plans, or the beginning of the actual work on the Leased Premises, whichever occurs first. 

Section 6. Termination – Advance Payments. Upon termination of this lease pursuant to the terms of this Article, an equitable adjustment shall be
made concerning advance payments of the Base Rent, Additional Rent, Real Property Taxes, insurance premiums and other charges, if any. 

Section 7. Waive Statutes. Landlord and Tenant agree the terms of this Lease shall govern the effect of any damage to or destruction of the Leased
Premises with respect to the termination of this lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith. 
 ARTICLE XIII - CONDEMNATION 
 Section 1. Total Taking. If, after the execution of this Lease
and prior to the expiration of the term hereof, the whole of the Leased Premises shall be taken under power of eminent domain by any public or private authority, or conveyed by Landlord to said authority in lieu of such taking, then this Lease and
the Term hereof shall cease and terminate as of the date when possession of the Leased Premises shall be taken by the taking authority and any unearned rent or other charges, if any, paid in advance, shall be refunded to Tenant. 

Section 2. Partial Taking. If, after the execution of this Lease and prior to the expiration of the Term hereof, any public or private authority shall,
under the power of eminent domain, take, or Landlord shall convey to said authority in lieu of such taking, property which results in a reduction by fifteen (15%) percent or more of the area in the Leased Premises, or of a portion of the Leased
Premises that substantially interrupts or substantially obstructs the conducting of business on the Leased Premises; then Tenant may, at its election, terminate this Lease by giving Landlord notice of the exercise of Tenant’s election within
thirty (30) days after Tenant shall receive notice of such taking. In the event of termination by Tenant under the provisions of 

 
Section 1 of this Article, this Lease and the term hereof shall cease and terminate as of the date when possession shall be taken by the appropriate authority of that portion of the Entire
Property that results in one of the above takings, and any unearned rent or other charges, if any, paid in advance by Tenant shall be refunded to Tenant. 
 Section 3. Restoration. In the event of a taking in respect of which Tenant shall not have the right to elect to terminate this Lease or, having such right, shall not elect to terminate this Lease, this
Lease and the term thereof shall continue in full force and effect and Landlord , at Landlord’s sole cost and expense, forthwith shall restore the remaining portions of the Leased Premises, including any and all improvements made theretofore to
an architectural whole in substantially the same condition that the same were in prior to such taking. A just proportion of the rent reserved herein and any other charges payable by Tenant hereunder, according to the nature and extent of the injury
to the Leased Premises and to Tenant’s business, shall be suspended or abated until the completion of such restoration and thereafter the rent and any other charges shall be reduced in proportion to the square footage of the Leased Premises
remaining after such taking. 
 Section 4. The Award. All compensation awarded for any taking, whether for the whole or a portion of the Leased
Premises, shall be the sole property of the Landlord whether such compensation shall be awarded for diminution in the value of, or loss of, the leasehold or for diminution in the value of, or loss of, the fee in the Leased Premises, or otherwise.
The Tenant hereby assigns to Landlord all of Tenant’s right and title to and interest in any and all such compensation. However, the Landlord shall not be entitled to and Tenant shall have the sole right to make its independent claim for and
retain any portion of any award made by the appropriating authority directly to Tenant for loss of business, or damage to or depreciation of, and cost of removal of fixtures, personality and improvements installed in the Leased Premises by, or at
the expense of Tenant, and to any other award made by the appropriating authority directly to Tenant. 
 Section 5. Release. In the event
of any termination of this Lease as the result of the provisions of this Article, the parties, effective as of such termination, shall be released, each to the other, from all liability and obligations thereafter arising under this lease.

 ARTICLE XIV - ASSIGNMENTS AND SUBLETTING 
 Section 1. Landlord’s Consent Required. Tenant shall not voluntarily or by operation of law assign, transfer mortgage or encumber (collectively “assignment”) or sublet all or any part of
Tenant’s interest in this Lease, or any renewals or extensions thereof, or the Leased Premises sublet without the prior written consent of Landlord subject to the terms of Article XVIII, Section 11 hereof. 

Section 2. Terms and Conditions to Assignment or Subletting. 
 (A) Regardless of Landlord’s consent, any assignment or subletting shall not: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Tenant
under this Lease; (ii) release Tenant from any obligations hereunder; or (iii) alter the primary liability of Tenant for the payment of all sums due hereunder or for the performance of

 
any other obligations to be performed by Tenant under this lease. 
 (B)
Landlord may accept rent or performance of Tenant’s obligations from any person other than Tenant pending approval or disapproval of an assignment. Neither a delay in approval or disapproval of such an assignment nor the acceptance of rent or
performance shall constitute a waiver or estoppel of Landlord’s right to exercise its remedies for Default of Breach by Tenant of any terms, covenants or conditions of this Lease. 

(C) The consent of Landlord to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting.
Landlord may, however, consent to subsequent subletting or any amendments or modifications thereto without notifying Tenant or anyone else liable on the Lease, and without obtaining their consent, and such action shall not relieve such persons of
their liability under this lease or any sublease. 
 (D) In the event of a Default of Breach of Tenant’s obligations under
this Lease, Landlord may proceed directly against Tenant or anyone else responsible for the performance of Tenant’s obligations under this Lease, including sublessee, without first exhausting Landlord’s remedies against any other person or
entity responsible therefor to Landlord, or any security held by Landlord or Tenant. 
 (E) Each request for consent to an
assignment or subletting should be accompanied by information relevant to Landlord’s determination of financial and operational responsibility of the proposed assignee or sublessee, together with a non-refundable deposit equal to 10% of the
Base Rent then due under the Lease as reasonable consideration for Landlord’s considering and processing the request. Tenant agrees to provide Landlord with such other or additional information and/or documentation as may be reasonably
requested by Landlord. 
 (F) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment or
sublease, be deemed for the benefit of Landlord, to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be performed by Tenant. 

(G) Landlord, as a condition to giving consent to any assignment or subletting, may require (i) an increase in the security deposit;
and/or (ii) an adjustment to the Base Rent to what is the then market value of rent for property similar to the Leased Premises. 
 Section
3. Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by Tenant of all or any portion of the leased Premises and shall be deemed included in any sublease, whether or not
expressly incorporated therein: 
 (A) Tenant hereby assigns and transfers to Landlord all of Tenant’s interest in any
rentals and income arising from any sublease of all or a portion of the Leased Premises heretofore or hereafter made by Tenant and Landlord may collect such rent and income and apply same to Tenant’s obligations under this Lease. 

  
 (B) In the event of
Default or Breach by Tenant in the performance of its obligations under this Lease, Landlord, at its option and without any obligation to do so, may require any sublessee to attorn to Landlord, in which event Landlord shall undertake the obligations
of sublessor under such sublease from the time of the exercise of said option to the expiration of the sublease, provided, however, Landlord shall not be liable for any prepaid rents or security deposit paid by such sublessee to such sublessor or
for any other prior Defaults or Breaches of such sublessor under such sublease. 
 (C) Any matter or thing requiring the consent
of the sublessor shall also require the consent of The Landlord. 
 (D) No sublessee shall further assign or sublet all or any
part of the Leased Premises without the prior written consent of Landlord. 
 (E) Landlord shall deliver a copy of any notice of
Default or Breach by Tenant to the sublessee, who shall have the right to cure the Default of Tenant within the grace period, if any, specified in such notice. The sublessee shall have the right of reimbursement and offset from and against Tenant
for any such Defaults cured by sublessee. 
 ARTICLE XV - DEFAULT; BREACH; REMEDIES 
 Section 1. Default; Breach. Landlord and Tenant agree that if an attorney is consulted by Landlord in connection with a Tenant Default or Breach (as hereinafter defined), $500 is a reasonable minimum sum
per such occurrence for legal services and costs in the preparation of a notice of Default and that Landlord may include the cost of such services and costs in said notice as rent due and payable to cure said Default. A “Default” is
defined as a failure by Tenant to observe, comply, or perform any of the terms, covenants, conditions or rules applicable to Tenant under this Lease. A “Breach” is defined as the occurrence of any one or more of the following Defaults,
and, where a grace period exits for cure after notice is specified herein, the failure of Tenant to cure such Default prior to the expiration of the applicable grace period, and shall entitled Landlord to pursue the remedies set forth herein:

 (A) The vacating of the Leased Premises without the intention to reoccupy same, or the abandonment of the Leased Premises.

 (B) Except as otherwise expressly provided in this Lease, the failure by Tenant to pay Base Rent or any other monetary
payment required to be made by Tenant hereunder, the failure to provide Landlord with Reasonable evidence of insurance, or the failure of Tenant to fulfill any obligation under this Lease which endangers or threatens life or property, where such
failure continues for a period of three (3) days following written notice thereof by or on behalf of Landlord to Tenant. 

(C) Except as otherwise expressly provided in this Lease, the failure by Tenant to provide Landlord with reasonable written evidence, in
duly executed original form, if applicable, of any documentation or information which Landlord may reasonably require of Tenant under the terms of this Lease, including, but not limited to inspection, maintenance and service

 
contracts, Tenant Statement, subornation or non-subornation of this Lease, certification of compliance with applicable laws, and the rescission of an unauthorized assignment or sublease, where
such failure continues for a period of ten (10) days following written notice by or on behalf of Landlord. 
 (D) A Default
by Tenant as to the terms, covenants, conditions or provisions of this Lease, that are to be observed, complied with or performed by Tenant, other than those described in paragraphs A, B and C, preceding, where such Default continues for a period of
thirty (30) days after written notice thereof by or on behalf of Landlord. 
 (E) The occurrence of any of the following
events: (I) the making by Tenant of any general arrangement or assignment for the benefit of creditors; (ii) Tenants becoming a “debtor” in any bankruptcy proceeding (unless, in the case of a proceeding filed against Tenant, the
same is dismissed within sixty (60) days); (iii) The appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the Leased Premises or of Tenant’s interest in the Lease, where
possession is not restored in thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Leased Premises or of Tenant’s interest in the Lease, where such
seizure is not discharged in thirty (30) days, provided, however, in the event that any provision of this paragraph E is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining
provisions of this Lease. 
 (F) The discovery by Landlord that any financial statement given to Landlord by Tenant was
materially false. 
 (G) Tenant has caused a lien to be filed against the Leased Premises or other of Landlord’s property
and said lien is not removed within thirty (30) days of recordation thereof. 
 Section 2. Remedies. If Tenant fails to perform any
affirmative duty or obligation of Tenant under this Lease, within ten (10) days after written notice to Tenant (or in the case of emergency, without any written notice), Landlord may at its option (but without obligation to do so), perform such
duty of obligation on Tenant’s behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses of any such performance by Landlord shall
be due and payable by Tenant to Landlord upon invoice therefor. If any check given to Landlord by Tenant shall not be honored by the bank upon which it is drawn, Landlord, at its option, may require all future payments to be made under this Lease by
Tenant to be made by cashier’s check. In the event of a Breach of this Lease by Tenant, as defined in Section 1., preceding, with or without further notice or demand, and without limiting Landlord in the exercise of any right or remedy
which Landlord may have by reason of such breach, Landlord may: 
 Then Landlord shall be entitled to its election (unless Tenant shall cure
such default prior to such election, to the satisfaction of Landlord), to exercise concurrently or successively, any one or more of the following rights: 
 (A) Terminate this Lease by giving Tenant notice of termination, in which event this 

 
Lease shall expire and terminate on the date specified in such notice of termination, with the same force and effect as though the date so specified were the date herein originally fixed as the
termination date of the term of this Lease, and all rights of Tenant under this Lease and in and to the Leased Premises shall expire and terminate, and Tenant shall remain liable for all obligations under this Lease arising up to the date of such
termination, and Tenant shall surrender the Leased Premises to Landlord on the date specified in such notice. 
 (B) Terminate
this Lease as provided herein and recover from Tenant all damages Landlord may incur by reason of Tenant’s default, including, without limitation, a sum which, at the date of such termination, represents the then value of the excess, if any, of
(a) the Base Rent, Real Property Taxes, insurance premiums and all other sums which would have been payable hereunder by Tenant for the period commencing with the day following the date of such termination and ending with the date herein before
set for the expiration of the full term hereby granted, over (b) the aggregate reasonable rental value of the Leased Premises for the same period, all of which excess sum shall be deemed immediately due and payable. 

(C) Without terminating this Lease, declare immediately due and payable all Base Rent, Real Property Taxes, insurance premiums and other
rents and amounts due and coming due under this Lease for the entire remaining Term hereof, together with all other amounts previously due, at once; provided, however, that such payment shall not be deemed a penalty or liquidated damages but shall
merely constitute payment in advance of rent for the remainder of said term. Upon making such payment, Tenant shall be entitled to receive from Landlord all rents received by Landlord from other assignees, Tenants, and subtenants on account of said
Premises during the term of this Lease, provided that the monies to which Tenant shall so become entitled shall in no event exceed the entire amount actually paid by Tenant to Landlord pursuant to the preceding sentence less all costs, expenses and
attorney’s fees of Landlord incurred in connection with the reletting of the Premises. 
 (D) Without terminating this
Lease, and with or without notice to Tenant, Landlord may in its own name but as agent for Tenant enter into and upon and take possession of the Leased Premises or any part thereof, and, at Landlord’s option, remove persons and property
therefrom, and such property, if any, may be removed and stored in a warehouse or elsewhere at the cost of, and for the account of Tenant, all without being deemed guilty of trespass or becoming liable for any loss or damage which may be occasioned
thereby, and Landlord may rent the Leased Premises or any portion thereof as the agent of Tenant with or without advertisement, and by private negotiations and for any term upon such terms and conditions as Landlord may deem necessary or desirable
in order to relet the Premises. Landlord shall in no way be responsible or liable for any rental concessions or any failure to rent the Premises or any part thereof, or for any failure to collect any rent due upon such reletting. Upon such
reletting, all rentals received by Landlord from such reletting shall be applied: first, to the payment of any indebtedness (other than any rent due hereunder) from Tenant to Landlord; second, to the payment of any costs and expenses of such
reletting, including, without limitation, brokerage fees and attorney’s fees and costs of alterations and repairs; third, to the payment of rent and other charges then due and unpaid hereunder; and the residue, if any shall be held by Landlord
to the extent of and for application in payment of future rent as the same may become due and payable hereunder. In reletting the Leased Premises as aforesaid, Landlord may grant rent concessions and Tenant shall

 
not be credited therefor. If such rentals received from such reletting shall at any time or from time to time be less than sufficient to pay to Landlord the entire sums then due from Tenant
hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall, at Landlord’s option, be calculated and paid monthly. No such reletting shall be construed as an election by Landlord to terminate this Lease unless a written
notice of such election has been given to Tenant by Landlord. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for any such previous default provided same has not been cured.

 (E) Continue the Lease and Tenant’s right to possession in effect as provided by law after Tenant’s Breach and
abandonment and recover rent from Tenant as it comes due, provided however that Tenant shall retain the right to assign or sublet the Leased Premises, subject to the requirements set forth in Article XIV, hereof. Acts of maintenance or preservation,
efforts to relet the Leased Premises, or the appointment of a receiver to protect Landlord’s interest under the Lease, shall not constitute a termination of Tenant’s right to possession. 

(F) Pursue such other remedies as are available at law or equity. 
 Section 2. Landlord’s pursuit of any remedy of remedies, including without limitation, any one or more of the remedies stated herein shall not (1) constitute an election of remedies or
preclude pursuit of any other remedy or remedies provided in this Lease or any other remedy or remedies provided by law or in equity, separately or concurrently or in any combination, or (2) sever as the basis for any claim of constructive
eviction, or allow Tenant to withhold any payments under this Lease. 
 Section 3. The expiration or termination of the Lease and/or the
Tenant’s right to possession shall not relieve Tenant from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the Term hereof or by reason of Tenant’s occupancy of the Leased Premises.

 Section 4. Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of rent and any other sums due hereunder will
cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed
upon Landlord by the terms of the mortgage or deed of trust covering the Leased Premises. Accordingly, if any installment of rent or any other sum due from Tenant shall not be received by Landlord or Landlord’s designee within five
(5) days after such amount shall be due, then, without any requirement for notice to Tenant, Tenant shall pay to Landlord a late charge equal to 6% of such overdue amount. The parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by Landlord shall in no event constitute a waiver of Tenant’s Default or Breach with respect to such overdue amount, nor
prevent Landlord from exercising any of the other rights and remedies granted hereunder, in the event that a late charge is payable hereunder, whether or not collected, for three (3) consecutive installments of Base Rent, then notwithstanding
any other provision of this Lease, Base Rent shall, at Landlord’s option, become due and payable quarterly in advance. 

  
 Section 5. Landlord’s
Breach. Landlord shall not be deemed in breach of this Lease unless Landlord fails in a reasonable time to perform an obligation required to be performed by Landlord. For purposes of this Section, a reasonable time shall in no event be less than
thirty (30) days after receipt by Landlord, and by the holders of any mortgage or deed of trust covering the Leased Premises whose name and address shall have been furnished Tenant in writing for such purpose, of written notice specifying
wherein such obligation of Landlord has not been performed, provided, however, that if the nature of Landlord’s obligation is such that more than thirty (30) days after such notice are reasonably required for its performance, then Landlord
shall not be in breach of this Lease if performance is commenced within the thirty (30) day period and thereafter diligently pursued to completion. 
 ARTICLE XVI - SUBORDINATION; TENANCY STATEMENT; TITLE 
 Section 1. Subordination. Tenant shall,
upon the request of Landlord in writing, subordinate this Lease to the lien of any present or future mortgage or deed of trust upon the Leased Premises irrespective of the time of execution or the time of recording of any such mortgage. 

Section 2. Attornment. Subject to the non-disturbance provisions of Section 4 following, Tenant agrees to attorn to Lender or any other party who
acquires ownership of the Leased Premises by reason of foreclosure of a security device, and that in the event of such foreclosure, such new owner shall not: (i) be liable for and act or omission of any prior landlord or with respect to events
occurring prior to acquisition of ownership; (ii) be subject to any offsets or defenses which Tenant may have against a prior landlord; or (iii) be bound by pre-payment of more than one (1) month’s rent. 

Section 3. Tenancy Statement. Each party shall within ten (10) days after written notice from the other party execute, acknowledge and deliver a
statement in writing in form similar to the then most current “Tenancy Statement” form published by the American Industrial real Estate Association, plus such additional information, confirmation and/or statements as may be reasonably
requested by the other party. 
 Section 4. Non-Disturbance. With respect to security devices entered into by Landlord after the execution of
this Lease, Tenant’s subordination of this Lease shall be subject to receiving assurance (a “non-disturbance agreement”) from the Lender that Tenant’s possession and this Lease, including any options to extend the Term hereof,
will not be disturbed so long as Tenant is not in Breach hereof and attorns to the record owner of the Leased Premises. 
 Section 5. Financial
Statements. If Landlord desires to finance, refinance or sell the Leased Premises or any part thereof, Tenant shall deliver to any potential lender or purchaser designated by Landlord such financial statements of Tenant. The financial statements
will be limited to existing SEC filings including annual 10K and quarterly 10Q reports. 
 Section 6. Recording. Either Landlord or Tenant
shall, upon request of the other, execute, acknowledge and deliver to the other a short form memorandum of lease for recording purposes. 

  
 The party requesting recordation shall
be responsible for payment of any fees, expense, charges or taxes applicable thereto. 
 Section 7. Estoppel Certificates. At any time and from
time to time, Landlord and Tenant each agree, upon request in writing from the other, to execute, acknowledge and deliver to the other or to any person designated by the other a statement in writing certifying that the Lease is unmodified and is in
full force and effect, or if there have been modifications, that the same is in full force and effect as modified (stating the modifications), that the other party is not in default in the performance of its covenants hereunder, or if there have
been such defaults, specifying the same, and the dates to which the rent and other charges have been paid. 
 ARTICLE XVII - WAIVERS/DISPUTES

 Section 1. Waivers. Failure of Landlord to complain of any act or omission on the part of Tenant, no matter how long the same may continue,
shall not be deemed to be a waiver by Landlord of any of its rights hereunder. No waiver by Landlord at any time, express or implied, of any breach of any provision of this Lease shall be deemed a waiver of a breach of any other provision of this
Lease or a consent to any subsequent breach of the same or any other provision. If any action shall require the consent or approval of Landlord, Landlord’s consent to or approval of such action on any one occasion shall not be deemed a consent
to or approval of said action on any subsequent occasion or a consent to or approval of any other action on the same or any subsequent occasion. Any and all rights and remedies which Landlord may have under this Lease or by operation of law, either
at law or in equity, upon any breach, shall be distinct, separate and cumulative and shall not be deemed inconsistent with each other, and no one of them, whether exercised by Landlord or not, shall be deemed to be an exclusion of any other; and any
two or more or all of such rights and remedies may be exercised at the same time. 
 Section 2. Disputes. It is agreed that, if at any time
a dispute shall arise as to any amount or sum of money to be paid by one party to the other under the provisions hereof, the party against whom the obligation to pay the money is asserted shall have the obligation to make such payment in a timely
fashion and said party shall have the right to institute suit for the recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said party to pay such sum or any part thereof, said party shall be entitled to
recover such sum or so much thereof as it was not legally required to pay under the provisions of this Lease. If at any time a dispute shall arise between the parties hereto as to any work to be performed by either of them under the provisions
hereof, the party obligated to perform the work shall have the obligation to perform such work and pay the costs thereof and said party may institute suit for the recovery of the costs of such work. If it shall be adjudged that there was no legal
obligation on the part of the said party to perform the same or any part thereof, said party shall be entitled to recover the costs of such work or the cost of so much thereof as said party was not legally required to perform under the provisions of
this Lease. 
 Section 3. Attorneys Fees. If any party brings an action to enforce the terms hereof or declare rights hereunder, the prevailing
party shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or 

 
proceedings is pursued to decision or judgment. The attorneys’ fees shall not be computed according to any court fee schedule, but shall be such as to fully reimburse all attorneys’
fees reasonably incurred. Landlord shall be entitled to attorneys’ fees, costs and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or not legal action is subsequently
commenced in connection with such Default of Breach. 
 ARTICLE XVIII - MISCELLANEOUS 
 Section 1. Notices. All notices and other communications authorized or required hereunder shall be in writing and shall be given by mailing the same by certified mail, return receipt requested,
postage prepaid, and any such notice or other communication shall be deemed to have been given when received by the party to whom such notice or other communication shall be addressed. If intended for Landlord the same will be mailed to the address
herein above set forth or such other address as Landlord may hereafter designate by notice to Tenant, and if intended for Tenant, the same shall be mailed to Tenant at the address herein above set forth, or such other address or addresses as Tenant
may hereafter designate by notice to Landlord. 
 Section 2. Invalidity of Particular Provision. If any term or provision of this Lease or
the application hereof to any person or circumstance shall, to any extent, be held invalid or unenforceable, the remainder of this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is
held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the fullest extent permitted by law. 
 Section 3. Captions and Definitions of Parties. The captions of the Sections of this Lease are for convenience only and are not a part of this Lease and do not in any way limit or amplify the terms
and provisions of this Lease. The word “Landlord” and the pronouns referring thereto, shall mean, where the context so admits or requires, the persons, firm or corporation named herein as Landlord or the mortgagee in possession at any
time, of the land and building comprising the Leased Premises. If there is more than one Landlord, the covenants of Landlord shall be the joint and several obligations of each of them, and if Landlord is a partnership, the covenants of Landlord
shall be the joint and several obligations of each of the partners and the obligations of the firm. Any pronoun shall be read in the singular or plural and in such gender as the context may require. Except as in this Lease otherwise provided, the
terms and provisions of this Lease shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
 Section 4. No Partnership. Nothing contained herein shall be deemed or construed by the parties hereto nor by any third party as creating the relationship of principal and agent or of partnership or
of a joint venture between the parties hereto, it being understood and agreed that neither any provision contained herein, nor any acts of the parties hereto, shall be deemed to create any relationship between the parties hereto other than the
relationship of Landlord and Tenant. 
 Section 5. Brokerage. Landlord and Tenant each represent and warrant to the other that it has

 
not had any dealings with any person, firm, broker or finder in connection with this Lease and that no real estate broker is entitled to any commissions upon the execution or of this Lease.

 Section 6. Entire Agreement. This instrument contains the entire and only agreement between the parties, and no oral statements or
representations or prior written matter not contained in this instrument shall have any force and effect. This Lease shall not be modified in any way except by a writing executed by both parties. 

Section 7. Governing Law. All matters pertaining to this agreement (including its interpretation, application, validity, performance and breach) in
whatever jurisdiction action may be brought, shall be governed by, construed and enforced in accordance with the laws of the State of California. The parties herein agree to submit to the personal jurisdiction and venue of a court of subject matter
jurisdiction located in San Diego County, State of California. In the event that litigation results from or arises out of this Agreement or the performance thereof, the parties agree to reimburse the prevailing party’s reasonable
attorney’s fees, court costs, and all other expenses, whether or not taxable by the court as costs, in addition to any other relief to which the prevailing party may be entitled. In such event, no action shall be entertained by said court or
any court of competent jurisdiction if filed more than one year subsequent to the date the cause(s) of action actually accrued regardless of whether damages were otherwise as of said time calculable. 

Section 8. Extraordinary remedies. To the extent cognizable at law, the parties hereto, in the event of breach and in addition to any and all other
remedies available thereto, may obtain injunctive relief, regardless of whether the injured party can demonstrate that no adequate remedy exists at law. 
 Section 9. Landlord’s Access; Showing; Repairs. Tenant agrees: (i) to permit Landlord and its agents to examine the Leased Premises at reasonable times and to show the Leased Premises to
prospective purchasers of the Building and to provide Landlord, if not already available, with a set of keys for the purpose of said examination, provided that Landlord shall not thereby unreasonably interfere with the conduct of Tenant’s
business; and/or (ii) to permit Landlord to enter the Leased Premises to inspect such repairs, improvements, alterations or additions thereto as may be required under the provisions of this Lease. But nothing contained herein shall be construed
as a creating a duty for the Landlord to inspect the Leased Premises. 
 Section 10. Signs. Tenant shall not place any sign on the Leased
Premises, except that Tenant may, with Landlord’s prior written consent, install (except on the roof) such signs as are permitted by law, ordinance, and/or regulation and reasonably necessary to advertise Tenant’s business. The
installation of such signs shall be subject to all other terms of this Lease, including those with respect to Utility Installations, Alterations and maintenance and repair of the Leased Premises. 

Section 11. Consents. 

(A) Wherever in the Lease the consent of a party is required to an act by the other party, such consent shall not be unreasonably
withheld or delayed. Landlord’s actual; reasonable costs 

 
and expenses (including, but not limited to architects’, attorneys’, engineers’ or other consultants’ fees) incurred in the consideration of, or response to, a request by
Tenant for any Landlord consent pertaining to this Lease or the Leased Premises shall be paid by Tenant to Landlord upon receipt of an invoice and supporting documentation therefor. Landlord may, as a condition to considering any such request by
Tenant, require the Tenant deposit with Landlord an amount of money reasonably calculated by Landlord to represent the cost Landlord will incur in considering and responding to Tenant’s request. 

(B) All conditions to Landlord’s consent authorized by this Lease are acknowledged by Tenant as being reasonable. The failure to
specify herein any particular condition to Landlord’s consent shall not preclude the imposition by Landlord at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which
consent is being given. 
 Section 12. Quiet Possession. Upon payment by Tenant of the rent and other sums due under this Lease and the
observance and performance of the covenants, conditions and provisions to be performed by Tenant under the terms of this Lease, Tenant shall have quiet possession of the Leased Premises for the Term of this Lease, subject to all the provisions of
this lease. 
 Section 13. No Holdover. Tenant has no right to retain possession of the Leased Premises or any part thereof beyond the
expiration or earlier termination of this Lease. 
 Section 14. Covenants and Conditions. All provisions of this Lease to be observed or
performed by Tenant are both covenants and conditions. 
 Section 15. Interest on Past Due Obligations. Amy monetary payment due Landlord
hereunder, other than late charges, not received by Landlord within thirty (30) days following the date on which it was due, shall bear interest from the thirty-first (31) day at the maximum rate allowed by law in addition to any late
charges due thereon. 
 Section 16. Time of the Essence. Time is of the essence with respect to the performance of all obligations to be
performed or observed by the parties under this Lease. 
 Section 17. Rent Defined. All monetary obligations of Tenant to Landlord under this
Lease are deemed to be rent. 
 Section 18. Auctions. Tenant shall not conduct, nor permit to be conducted, either voluntarily or
non-voluntarily, any auction upon the Leased Premises without first having obtained Landlord’s prior written consent. Notwithstanding any other provision to the contrary, Landlord shall not be obligated to exercise any standard of
reasonableness in determining whether to grant such request. 
 Section 19. Security Measures. Tenant acknowledges that the rental payable to
Landlord under this Lease does not include the cost of guard services or security measures, and that Landlord shall have no obligation whatsoever to provide same. Tenant assumes all responsibility for the protection of the Leased Premises, Tenant,
its agents, employees and invitees. 

  
 Section 20. Authority. Each party
hereto represents that it has the full authority to enter into this Lease. 
 Section. 21. Amendments. This Lease may only be amended by an
instrument in writing signed by the parties in interest at the time of the modification. 
 Section 22. Construction. This Lease and all the
terms thereof have been negotiated at arms’ length and neither party shall be deemed to be the drafter thereof for the purposes of construction of the terms hereof. 
 IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written or have caused this Lease to be executed by their respective officers thereunto duly authorized.

  

	
	Signed, sealed and delivered in the presence of:
	
	

	For The Levine Family Trust (“Landlord”)
	
	  
	Name and Title:
	  
 Date:

	
	For Orange 21 North America Inc. (“Tenant”)
	
	

	Name and Title:  

	  
 Date: 10/21/10

  
 EXHIBIT A

 SCHEDULE OF BASE RENT 
  

			
	 11/01/10 through 10/31/11
	  	$28,319.00 per month
	 11/01/11 through 10/31/12
	  	$29,168.57 per month
	 11/01/12 through 10/31/13
	  	$30,043.63 per month
	 11/01/13 through 12/31/13
	  	$30,944.94 per monthOfficer's Certificate, dated November 15, 2010

  
 Exhibit 4.2

 OFFICER’S CERTIFICATE 
 The undersigned, David Lambert, Senior Vice President and Chief Financial Officer of Plum Creek Timber Company, Inc. (the “Company”), a Delaware corporation, hereby certifies, on behalf of the
Company in its capacity as sole member of Plum Creek Timber I, L.L.C., a Delaware limited liability company, in its capacity as general partner of Plum Creek Timberlands, L.P. (the “Partnership”), a Delaware limited partnership, pursuant
to Sections 2.1, 2.3 and 11.5 of the Indenture, dated as of November 14, 2005 (the “Indenture”), by and among the Partnership, as issuer, the Company, as guarantor, and U.S. Bank National Association, a national banking association,
as trustee, as follows: 
  

	1.	The undersigned has read Sections 2.1 and 2.3 of the Indenture and such other sections of the Indenture and other documents and has made such other inquiries as he has
deemed necessary to make the certifications set forth herein. 

  

	2.	In the opinion of the undersigned, the covenants and conditions precedent provided for in the Indenture and as set forth in Annex A attached hereto relating
to the issuance of the Partnership’s 4.70% Notes due 2021 (the “Notes”) have been complied with. 

  

	3.	The forms of the Notes and the guarantees of the Notes by the Company, and the terms of the Notes, as set forth on Annex A attached hereto, have been duly
established pursuant to Sections 2.1 and 2.3 of the Indenture and comply with the Indenture. 

 [SIGNATURE ON
FOLLOWING PAGE] 
 
 IN WITNESS
WHEREOF, the undersigned has caused this certificate to be duly executed as of this 15th day of November, 2010. 
  

									
	PLUM CREEK TIMBERLANDS, L.P.
		
	By:	  	PLUM CREEK TIMBER I, L.L.C.
		  	its General Partner
			
		  	By:	  	PLUM CREEK TIMBER COMPANY, INC.
		  		  	its Sole Member
				
		  		  	By:	  	 /s/ David Lambert

		  		  		  	Name:	  	David Lambert
		  		  		  	Title:	  	Senior Vice President and
		  		  		  		  	Chief Financial Officer

 

ANNEX A 

Pursuant to Sections 2.1 and 2.3 of the Indenture, dated as of November 14, 2005 (the “Indenture”), among Plum Creek
Timberlands, L.P. (the “Issuer”), Plum Creek Timber Company, Inc. (the “Guarantor”) and U.S. Bank National Association, as trustee (the “Trustee”), the terms of a series of Securities to be issued pursuant to the
Indenture are as follows: 
  

	 	1.	Designation. The designation of the Securities is the “4.70% Notes due 2021” (herein referred to as the “Notes”). 

 

	 	2.	Initial Aggregate Principal Amount. The Notes shall be limited in initial aggregate principal amount to $575,000,000 (except for Notes authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section 2.8, 2.9, 2.11, 8.5 or 12.3 of the Indenture and Section 7(f) hereof). 

 

	 	3.	Maturity. The date on which the principal of the Notes is payable is March 15, 2021 (the “Stated Maturity Date”). 

 

	 	4.	Rate of Interest; Interest Payment Date; Regular Record Dates. Each Note shall bear interest at the rate of 4.70% per year, until the principal thereof is
paid. Such interest shall be payable semi-annually in arrears on March 15 and September 15 of each year (each, an “Interest Payment Date”), commencing on March 15, 2011, to the Persons in whose names the Notes are registered
at the close of business on the immediately preceding March 1 or September 1 (each, a “record date”), as the case may be. Interest on the Notes shall accrue from and including the immediately preceding Interest Payment Date in
respect of which interest has been paid or duly made available for payment (or from and including the date of issue, if no interest has been paid or duly made available for payment with respect to the Notes) to, but excluding the applicable Interest
Payment Date, the Stated Maturity Date or date of earlier redemption or repurchase (the Stated Maturity Date or date of earlier redemption or repurchase referred to collectively herein as the “Maturity Date”), as the case may be. Interest
on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months. If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the required payment of principal, premium, if any, and/or
interest payable on such date will be made on the next succeeding Business Day as if made on the date such payment was due, and no interest will accrue on such payment for the period from and after such Interest Payment Date or the Maturity Date, as
the case may be, to the date of such payment on the next succeeding Business Day. 

  

	 	5.	 Place of Payment. Payments of principal, premium, if any, and interest on the Notes shall be payable, at the office of the Issuer’s paying
agent maintained in the Borough of Manhattan, The City of New York. Payment of principal of, or premium, if any, on a definitive Note may be made only against surrender of the Note to the Issuer’s paying agent. The Issuer may, however, make
payments of interest by mailing checks to the address of the holder of the Notes appearing in the security register maintained by the registrar. However, while any Notes are represented by a Registered Global Security, payment of principal of,
premium, 

  
 1 

	 	 
if any, or interest on the Notes may be made by wire transfer to the account of the Depositary or its nominee. 

 

	 	6.	Optional Redemption. 

  

	 	(a)	The Issuer may redeem the Notes at any time in whole or from time to time in part at a redemption price equal to the sum of 100% of the aggregate principal amount of
the Notes being redeemed, accrued but unpaid interest on those Notes to, but not including, the redemption date, and, unless the Notes are redeemed on or after December 15, 2020, the Make-Whole Amount (as defined below), if any. The Issuer
will, however, pay the interest installment due on any Interest Payment Date that occurs on or before a redemption date to the registered holders of the Notes as of the close of business on the record date immediately preceding that Interest Payment
Date. If the Issuer has given notice as provided in the Indenture and made funds available for the redemption of any Notes called for redemption on the redemption date referred to in that notice, those Notes will cease to bear interest on that
redemption date and the only right of the holders of those Notes will be to receive payment of the redemption price. Notice of redemption and partial redemption shall be as provided in the Indenture; provided, however, that if the Issuer chooses to
redeem less than all of the Notes, the Issuer will notify the Trustee at least ten (10) days before giving notice of redemption, or such shorter period as is satisfactory to the Trustee, of the aggregate principal amount of Notes to be redeemed and
the applicable Redemption Date. 

  

	 	(b)	As used herein, the following terms shall have the respective meanings specified: 

 

	 	(i)	“Make-Whole Amount” means, in connection with any optional redemption, the excess, if any, of (a) the aggregate present value as of the date of such
redemption of each dollar of principal being redeemed and the amount of interest, exclusive of interest accrued to the date of redemption, that would have been payable in respect of each such dollar if such redemption had not been made, determined
by discounting, on a semi-annual basis (assuming a 360-day year of twelve 30-day months), such principal and interest at the Reinvestment Rate, determined on the third Business Day preceding the date notice of such redemption is given, from the
respective dates on which such principal and interest would have been payable if such redemption had not been made, to the date of redemption, over (b) the aggregate principal amount of the Notes being redeemed. 

 

	 	(ii)	 “Reinvestment Rate” means 0.35% plus the arithmetic mean of the yields under the heading “Week Ending” published in the most recent
Statistical Release under the caption “Treasury Constant Maturities” for the maturity, rounded to the nearest month, corresponding to the remaining life to maturity, as of the redemption date of the Notes being redeemed. If no maturity
exactly corresponds to such maturity, yields for the two published maturities most closely corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence and the Reinvestment Rate shall be interpolated or
extrapolated from such yields on a straight-line basis, rounding 

  
 2 

	 	 
each of such relevant periods to the nearest month. For the purposes of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the date of determination of the
Make-Whole Amount shall be used. If the format or content of the Statistical Release changes in a manner that precludes determination of the Treasury yield in the above manner, then the Treasury yield shall be determined in the manner that most
closely approximates the above manner, as reasonably determined by the Issuer. 

  

	 	(iii)	“Statistical Release” means the statistical release designated “H.15(519)” or any successor publication which is published weekly by the Federal
Reserve System and which reports yields on actively traded United States government securities adjusted to constant maturities, or, if such statistical release is not published at the time of any required determination under the indenture, then such
other reasonably comparable index which shall be designated by the Issuer. 

  

	 	7.	Change of Control. 

  

	 	(a)	Upon the occurrence of a Change of Control Repurchase Event (as defined below) unless the Issuer has exercised its right to redeem all the Notes in accordance with the
redemption terms set forth herein, the Issuer shall be required to make an irrevocable offer to each holder of Notes to repurchase all or any part (in integral multiples of $1,000, provided any remaining principal amount resulting from a partial
redemption is at least $2,000) of such holder’s Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid interest, if any, on the Notes repurchased to, but not
including, the date of repurchase, subject to the rights of holders of notes on a record date to receive interest due on the related Interest Payment Date. 

 

	 	(b)	Within 30 days following any Change of Control Repurchase Event or, at the Issuer’s option, prior to any Change of Control (as defined below), but after the public
announcement of such Change of Control, the Issuer shall mail to each holder of Notes, with a copy to the Trustee, a notice: 

  

	 	(i)	describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event; 

 

	 	(ii)	offering to repurchase all Notes tendered; 

  

	 	(iii)	setting forth the payment date for the repurchase of the Notes, which date will be no earlier than 30 days and no later than 60 days from the date such notice is
mailed; 

  

	 	(iv)	if mailed prior to the date of consummation of the Change of Control, stating that the offer to repurchase is conditioned on a Change of Control Repurchase Event
occurring on or prior to the payment date specified in such notice; 

  
 3 

  

	 	(v)	disclosing that any Note not tendered for repurchase will continue to accrue interest; and 

 

	 	(vi)	specifying the procedures for tendering Notes. 

  

	 	(c)	The Issuer shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other
securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any
securities laws or regulations conflict with the Change of Control Repurchase Event provisions of the Notes, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the
Change of Control Repurchase Event provisions of the Notes by virtue of such conflict. 

  

	 	(d)	On the repurchase date in respect of a Change of Control Repurchase Event, the Issuer shall, to the extent lawful: 

 

	 	(i)	accept for payment all Notes or portions thereof properly tendered pursuant to such offer; 

 

	 	(ii)	deposit with the Issuer’s paying agent an amount equal to the aggregate purchase price in respect of all Notes or portions thereof properly tendered; and

  

	 	(iii)	deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an Officer’s Certificate stating the aggregate principal amount of Notes
being repurchased by the Issuer and that all conditions precedent to the repurchase offer and repurchase by the Issuer of the notes have been complied with. 

 

	 	(e)	The Issuer shall not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if a third party makes such an offer in the manner,
at the times and otherwise in compliance with the requirements for an offer made by the Issuer and such third party purchases all Notes properly tendered and not withdrawn under its offer. 

 

	 	(f)	The Issuer’s paying agent will promptly mail to each holder of Notes properly tendered the purchase price for such Notes, and the Trustee, upon the execution and
delivery by the Issuer of such Notes, will promptly authenticate and mail (or cause to be transferred by book-entry) to each holder of a Note tendered in part for repurchase a new Note equal in principal amount to any unpurchased portion of such
tendered Notes; provided that each new Note will be in a denomination of $2,000 and whole multiples of $1,000 in excess thereof. 

  
 4 

  

	 	(g)	Solely for purposes of this Section 7, the following terms shall have the following meanings: 

“Below Investment Grade Ratings Event” means that on any day within the 60-day period (which period shall be extended so long
as the rating of the Notes is under publicly announced consideration for a possible downgrade by each of the Rating Agencies) after the earlier of (i) the occurrence of a Change of Control; and (ii) public notice of the occurrence of a
Change of Control or the intention by the Issuer or the Guarantor to effect a Change of Control, the Notes are rated below Investment Grade by each of the Rating Agencies. Notwithstanding the foregoing, a Below Investment Grade Ratings Event
otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Ratings Event for purposes of the definition of
Change of Control Repurchase Event hereunder) if any of the Rating Agencies making the reduction in rating to which this definition would otherwise apply does not announce or publicly confirm or inform the Trustee in writing that the reduction was
the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of such ratings
event). 
 “Capital Stock” means, with respect to any specified Person, any and all shares, interests,
participations, or other equivalents (however designated, whether voting or non-voting), including partnership interests, whether general or limited, in the equity of such Person, whether outstanding on the date hereof or issued hereafter,
including, without limitation, all common stock, preferred stock and units. 
 “Change of Control” means: 

(i) any sale, lease, transfer or other conveyance (other than by way of merger or consolidation), whether direct or
indirect, of all or substantially all of the assets of the Guarantor or the Issuer, on a consolidated basis, in one transaction or a series of related transactions, to any “person” or “group” (as such terms are used for purposes
of Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable) other than the Guarantor or one of its Subsidiaries; 
 (ii) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any “person” or “group” (as such terms are used for
purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable) other than the Guarantor or one of its Subsidiaries becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly
or indirectly, of more than 50% of the outstanding Voting Stock of the Guarantor or the Issuer measured by voting power rather than number of shares or units; provided, however, that a transaction will not

  
 5 

 
be deemed to involve a Change of Control if the Guarantor or the Issuer becomes a wholly owned Subsidiary of a holding company and the holders of the Voting Stock of such holding company
immediately following that transaction are substantially the same as the holders of the Voting Stock of the Guarantor or the Issuer, as applicable, immediately prior to the transaction; 

(iii) the Issuer or the Guarantor consolidates with, or merges with or into, any “person” (as such term is
used for purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable), or any “person” consolidates with, or merges with or into, the Issuer or the Guarantor, in any such event pursuant to a transaction in which any
of the outstanding Voting Stock of the Issuer or the Guarantor, as the case may be, or such other “person” is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares or units of
the Voting Stock of the Issuer or the Guarantor outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving “person” immediately after giving effect
to such transaction; 
 (iv) the first day on which a majority of the members of the Board of Directors of the
Guarantor are not Continuing Directors; or 
 (v) Plum Creek Timber I, L.L.C. (or a successor general partner
that is a Subsidiary of the Guarantor) ceases to be a general partner of the Issuer or ceases to control the Issuer. 

provided, however, that neither: 
 (x) the pro rata distribution by the Guarantor to its shareholders of Capital Stock of the Issuer or of any of the Guarantor’s other Subsidiaries; nor 

(y) the replacement of Plum Creek Timber I, L.L.C. (or of a successor general partner) with a Subsidiary of the
Guarantor as the general partner of the Issuer; 
 shall, in and of itself, constitute a Change of Control for purposes of this
definition. 
 “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below
Investment Grade Ratings Event. 
 “Continuing Directors” means, as of any date of determination, any member of the
Guarantor’s Board of Directors who (1) was a member of such Board of Directors on the date the Notes were initially issued or (2) was nominated for election, elected or appointed to such Board of Directors with the approval of a
majority of the Continuing Directors who were members of such Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of the proxy statement of the Guarantor in which such member was named
as a nominee for election as a director, without objection to such nomination). 

  
 6 

  
 “Investment
Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating category of Moody’s) and a rating of BBB- or better by S&P (or its equivalent under any successor rating category of S&P), and
the equivalent investment grade rating from any replacement rating agency or rating agencies selected by the Issuer under the circumstances permitting the Issuer to select a replacement rating agency and in the manner for selecting a replacement
rating agency, in each case as set forth in the definition of “Rating Agencies.” 
 “Moody’s” means
Moody’s Investors Service, Inc. (or any successor). 
 “Rating Agencies” means each of Moody’s and S&P;
provided, if either of Moody’s or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Issuer’s or the Guarantor’s control, the Issuer may appoint another
“nationally recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act as a replacement agency for Moody’s or S&P, or both of them, as the case may be, provided that the
Issuer delivers written notice of such appointment to the Trustee. 
 “S&P” means Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc. (or any successor). 
 “Voting Stock” of any
specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the capital stock of such “person” that is at the time entitled to vote generally in the election of the board of
directors, managers or trustees of such “person,” as applicable. 
  

	 	8.	Mandatory Redemption. The Notes are not mandatorily redeemable and are not entitled to the benefit of a sinking fund or any analogous provisions.

  

	 	9.	Ranking Security. The Notes are unsecured obligations of the Issuer and rank equally with other unsecured indebtedness of the Issuer that is not subordinated to
the Notes. 

  

	 	10.	Amount Payable Upon Acceleration. 100% of the principal of and accrued interest, if any, on the Notes shall be payable upon declaration of acceleration pursuant
to Section 5.1 of the Indenture. 

  

	 	11.	Payment Currency—Election. The principal of, premium, if any, and interest on the Notes shall not be payable in a currency other than Dollars.

  

	 	12.	Payment Currency—Index. The principal of, premium, if any, and interest on the Notes shall not be determined with reference to an index based on a coin or
currency. 

  
 7 

  

	 	13.	Registered Securities. The Notes shall be issued only as Registered Securities. The Notes shall be issuable as Registered Global Securities.

  

	 	14.	Additional Amounts. The Issuer shall not pay additional amounts on the Notes held by a Person that is not a U.S. Person in respect of taxes or similar charges
withheld or deducted. 

  

	 	15.	Notes in Definitive Form. Section 2.8 of the Indenture will govern the transferability of the Notes in definitive form. 

 

	 	16.	Registrar; Paying Agent; Depositary. The Trustee shall initially serve as the registrar and the paying agent for the Notes. The Depository Trust Company shall
initially serve as the Depositary for the Registered Global Security representing the Notes. 

  

	 	17.	Events of Default. There shall be no deletions from, modifications or additions to the Events of Default set forth in Section 5.1 of the Indenture with
respect to the Notes. 

  

	 	18.	Covenants. There shall be the following additions to the covenants of the Issuer set forth in Article III of the Indenture with respect to the Notes:

  

	 	(a)	Limitations On Creation of Secured Debt. Neither the Issuer nor any Restricted Subsidiary of the Issuer will issue, incur, create, assume or guarantee any Secured Debt
without securing the Notes equally and ratably with or prior to that Secured Debt unless after giving effect to such transaction, including any concurrent repayment of any Secured Debt, the sum of (A) the total amount of all Secured Debt with
which the Notes are not at least equally and ratably secured and (B) the greater of the total net proceeds and all Attributable Debt with respect to all sale and lease-back transactions involving Principal Properties entered into after the date
of the Indenture, other than those permitted under the “Limitations On Sale and Lease-Back Transactions” covenant below, would not exceed 10% of Consolidated Net Tangible Assets at the end of the Issuer’s most recent fiscal quarter.

  

	 	(b)	 Limitations On Sale and Lease-Back Transactions. Subject to the immediately succeeding paragraph, neither the Issuer nor any Restricted Subsidiary of
the Issuer will enter into any lease with a term longer than three years covering any Principal Property of the Issuer or its Restricted Subsidiaries that is sold to any other Person (other than the Guarantor, the Issuer or any Restricted
Subsidiary) in connection with that lease unless: (i) the Issuer or any of its Restricted Subsidiaries would be entitled to incur Secured Debt on the Principal Property without equally and ratably securing the Notes pursuant to the covenant
described in clause (a) above; or (ii) an amount equal to the greater of (x) the net proceeds from the sale of such Principal Property or (y) the Attributable Debt with respect to the sale and lease-back transaction is applied
within 180 days of such sale to the voluntary retirement or prepayment of the Issuer’s or any Restricted Subsidiary’s long-term Debt which is senior to or equal with the Notes in right of payment or to the purchase or

  
 8 

	 	 
development of other property that will constitute Principal Property; or (iii) such sale and lease-back transaction is financed through an industrial revenue bond, industrial development
bond, pollution control bond or similar financing arrangement between the Issuer or a Restricted Subsidiary and any federal, state or municipal government or other governmental body or quasi-governmental agency. 

However, the Issuer and any of its Restricted Subsidiaries shall be able to enter into a sale and lease-back transaction without being
required to apply the net proceeds or Attributable Debt as required above if, after giving effect to such transaction, including any concurrent repayment of Secured Debt, the sum of (A) the total amount of all Secured Debt with which the Notes
are not at least equally and ratably secured and (B) the greater of the total net proceeds or Attributable Debt of all sale and lease-back transactions entered into after the date of the Indenture (other than as permitted by clause (b) of
this Section 18), would not exceed 10% of Consolidated Net Tangible Assets at the end of the Issuer’s most recent fiscal quarter. 
  

	 	(c)	Definitions. As used herein, the following terms shall have the respective meanings specified: 

 

	 	(i)	“Attributable Debt” means, with regard to a sale and lease-back transaction, the lesser of (A) the fair market value of the property subject thereto as
determined in good faith by the Board of Directors or (B) the discounted present value of all net rentals under the lease. The discount rate used to determine the discounted present value will equal the weighted average rates of all securities
then issued and outstanding under the Indenture. 

  

	 	(ii)	“Consolidated Net Tangible Assets” means total assets less the sum of total current liabilities and intangible assets, in each case as set forth on the most
recent consolidated balance sheet of the Issuer and its consolidated Subsidiaries and computed in accordance with generally accepted accounting principles (“GAAP”) in the United States. 

 

	 	(iii)	“Debt” means, at any time, all obligations of the Issuer and each Restricted Subsidiary, to the extent such obligations would appear as a liability upon the
consolidated balance sheet of the Issuer, in accordance with generally accepted accounting principles, (1) for borrowed money, (2) evidenced by bonds, debentures, notes or other similar instruments, and (3) in respect of any letters
of credit supporting any Debt of others, and all guarantees by the Issuer or any Restricted Subsidiary of Debt of others. 

  

	 	(iv)	“Lien” means a mortgage, security interest, security agreement, pledge, lien, charge or any other encumbrance of any kind. 

  
 9 

  

	 	(v)	“Principal Property” means (1) Timberlands, and (2) any mill, converting plant, manufacturing plant or other facility owned on the date of the
indenture or thereafter acquired by the Issuer or any Restricted Subsidiary that is located within the continental United States. 

  

	 	(vi)	“Restricted Subsidiary” means any direct or indirect domestic Subsidiary of the Issuer that owns any Principal Property. 

 

	 	(vii)	 “Secured Debt” means any Debt of the Issuer or any of its Restricted Subsidiaries that is secured by a Lien on any Principal Property or on
any stock of, or on any Debt of, a Restricted Subsidiary. Secured Debt does not include Debt secured by: (a) Liens existing at the time of acquisition by the Issuer or any of its Restricted Subsidiaries on Principal Property or any stock of, or
on any Debt of, a Restricted Subsidiary, whether or not assumed; (b) Liens to secure Debt among the Issuer and/or one of its Restricted Subsidiaries or among Restricted Subsidiaries; (c) Liens of an entity existing at the time such entity
is merged or consolidated with the Issuer or a Restricted Subsidiary; (d) Liens on shares of stock or on Debt or other assets of an entity existing at the time such entity becomes a Restricted Subsidiary; (e) Liens of an entity at the time
of a sale or lease of the properties of such entity as an entirety or substantially as an entirety to the Issuer or a Restricted Subsidiary; (f) Liens on timberlands in connection with an arrangement under which the Issuer and/or one or more of
its Restricted Subsidiaries are obligated to cut and pay for timber in order to provide the Lien holder with a specified amount of money, however determined; (g) Liens on property to secure all or part of the cost of acquiring, substantially
repairing or altering, constructing, developing or substantially improving the property, or to secure all or part of such property; provided that the principal amount of Debt secured by each such Lien (i) was incurred concurrently with,
or within 18 months of, such acquisition, repair, alteration, construction, development or improvement and (ii) does not exceed the cost to the Issuer or such Restricted Subsidiary of the property subject to the Lien, as determined in
accordance with GAAP; and (h) Liens created or incurred in connection with an industrial revenue bond, industrial development bond, pollution control bond or similar financing arrangement between the Issuer or a Restricted Subsidiary and any
federal, state or municipal government or other governmental body or quasi-governmental agency; (i) Liens for taxes, assessments or other governmental charges which are not yet due or payable without penalty that are being contested by the
Issuer or a Restricted Subsidiary, and for which adequate reserves have been created; (j) Liens arising out of litigation or judgments being contested in good faith and by appropriate proceedings; (k) materialmen’s, mechanics’,
workmen’s, repairmen’s, landlord’s Liens for rent or other similar Liens arising in the ordinary course of business in respect 

  
 10 

	 	 
of obligations which are not overdue or which are being contested by the Issuer or any of its Restricted Subsidiaries in good faith and by appropriate proceedings; (l) Liens consisting of
zoning restrictions, licenses, easements and restrictions on the use of real property and minor irregularities that do not materially impair the use of the real property; (m) Liens existing at the date of the Indenture; or (n) Liens
constituting any extension, renewal or replacement of any Lien listed above to the extent the amount of the Lien is not increased. 

  

	 	(viii)	“Timberlands” means any real property of the Issuer or any Restricted Subsidiary located within the continental United States which contains (or upon
completion of a growth cycle then in process is expected to contain) standing timber of a commercial quantity and of merchantable quality, excluding, however, any such real property which at the time of determination is held primarily for
development and not primarily for the production of timber. 

  

	 	19.	Guarantee. The Notes are guaranteed by the Guarantor as provided in Article XIII of the Indenture. The Guarantor’s guarantee of the Notes (the
“Guarantee”) is an unsecured obligation of the Guarantor and ranks equally with other unsecured indebtedness of the Guarantor that is not subordinated to the Guarantee. 

 

	 	20.	Conversion and Exchange. The Notes shall not be convertible into or exchangeable into any other security. 

 

	 	21.	Further Issues. The Issuer may, without notice to or the consent of the holders of the Notes, create and issue additional debt securities ranking equally and
ratably with the Notes in all respects and having the same terms as the Notes (other than issue date, and to the extent applicable, issue price, first date of interest accrual and first interest payment date of such debt securities), so that such
additional debt securities shall be consolidated and form a single series with the Notes for all purposes, including voting. 

  

	 	22.	Other Terms. The Notes shall have the other terms and the Notes and the Guarantee shall be substantially in the forms set forth in Exhibit A hereto.
In case of any conflict between this Annex A and the Notes, the forms of the Notes shall control. 

Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Indenture.

  
 11 

  
 Exhibit A

 [–Exclude from Notes in definitive form–] 
 [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO PLUM CREEK TIMBERLANDS, L.P. (THE “ISSUER”) OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE REGISTERED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.] 

PLUM CREEK TIMBERLANDS, L.P. 
 4.70% Notes due 2021 
 CUSIP No. 72925PAC9 

ISIN No. US72925PAC95 

	 No. R-[__] 
	 $[________] 

 PLUM CREEK TIMBERLANDS, L.P., a limited partnership duly organized and existing under the laws of the State of Delaware (herein referred to as the “Issuer,” which term includes any successor
thereof under the Indenture hereinafter referred to) for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the principal sum of [________] DOLLARS ($[____]) on March 15, 2021 (the
“Stated Maturity Date” with respect to the principal of this Note), unless previously redeemed or repurchased on any Redemption Date (as defined below) or Repurchase Date (as defined below), as the case may be, in accordance with the
provisions set forth on the reverse hereof (the Stated Maturity Date or any Redemption Date or Repurchase Date is referred herein as the “Maturity Date” with respect to principal repayable on such date) and to pay interest thereon
semiannually in arrears on March 15 and September 15 of each year, commencing on March 15, 2011 (each, an “Interest Payment Date”), at the rate of 4.70% per annum, until payment of said principal has been made or duly
provided for. Interest on this Note payable on an Interest Payment Date will accrue from and including the immediately preceding Interest Payment Date to which interest has been paid or duly made available for payment, or from and including
November 15, 2010 if no interest has been paid or duly made available for payment, to but excluding the applicable Interest Payment Date or the Maturity Date, as the case may be. Interest on this Note will be computed on the basis of a 360-day
year consisting of twelve 30-day months. 
 Capitalized terms used but not otherwise defined herein shall have the respective
meanings assigned to them in the Indenture (as defined on the reverse hereof). 

  
 The interest so
payable and punctually paid or duly made available for payment on any Interest Payment Date will be paid to the Holder in which name this Note (or one or more predecessor Notes) is registered in the Security register at the close of business on the
“Regular Record Date” for such payment, which shall be March 1 or September 1, as the case may be, immediately preceding such Interest Payment Date (regardless of whether such day is a Business Day (as defined below)). Any such
interest not so punctually paid or duly made available for payment shall forthwith cease to be payable to the Holder on such Regular Record Date, and shall be paid to the Person in whose name this Note (or one or more predecessor Notes) is
registered at the close of business on a subsequent “Special Record Date” for the payment of such defaulted interest (which shall be not more than 5 Business Days prior to the date of the payment of such defaulted interest) established by
notice given by mail by or on behalf of the Issuer to the Holders of the Notes not less than 15 calendar days preceding such subsequent Special Record Date, or may be paid at any time in any other lawful manner, all as more fully provided in the
Indenture. 
 The principal of, and premium, if any, with respect to, this Note payable on the Maturity Date
will be paid against presentation and surrender of this Note at the office or agency of the Issuer maintained for that purpose in the Borough of Manhattan, The City of New York. The Issuer hereby initially designates the Corporate Trust Office of
the Trustee (as defined on the reverse hereof) at 100 Wall Street, 16th Floor, New York, New York 10004 as the office to be maintained by it where Notes may be presented for payment, registration of transfer or exchange and where notices or demands to or upon the Issuer in
respect of the Notes or the Indenture may be served. 
 If any Interest Payment Date or the Maturity Date falls on a day that is
not a Business Day, the payment required to be made on such date will, instead, be made on the next Business Day with the same force and effect as if it were made on the date such payment was due, and no interest shall accrue on the amount so
payable for the period from and after such Interest Payment Date or the Maturity Date, as the case may be. “Business Day” means any day, other than a Saturday, a Sunday or other day on which banking institutions in The City of New York are
authorized or obligated by law, regulation or executive order to be closed. 
 Payments of principal, premium, if any, and
interest in respect of this Note will be made in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts (i) in the case of payments on the Maturity Date, in
immediately available funds and (ii) in the case of payments of interest on an Interest Payment Date other than the Maturity Date, at the option of the Issuer, by check mailed to the Holder entitled thereto at the applicable address appearing
in the Security register or by transfer of immediately available funds to an account maintained by the payee with a bank located in the United States of America; provided, however, that so long as Cede & Co. is the Holder of this Note,
payments of interest on an Interest Payment Date may be made in immediately available funds. 
 Reference is made to the further
provisions of this Note set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Note shall not be entitled to the benefits of the Indenture or the Guarantee (as defined on the reverse of this Note) or be valid or become obligatory for any purpose until the certificate of
authentication hereon shall have been executed by manual signature by the Trustee. 

  
 IN WITNESS WHEREOF,
the Issuer has caused this instrument to be duly executed, manually or by facsimile by an authorized signatory. 
 Date:
November 15, 2010 
  

									
	PLUM CREEK TIMBERLANDS, L.P., as Issuer
		
	By:	  	PLUM CREEK TIMBER I, L.L.C.
		  	its General Partner
			
		  	By:	  	PLUM CREEK TIMBER COMPANY, INC.
		  		  	its Sole Member
				
		  		  	By:	  	  

		  		  		  	Name:	  	
		  		  		  	Title:	  	

 ATTEST: 
  

			
	By:	 	  

		 	Assistant Secretary

 TRUSTEE’S
CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated herein, referred to in the
within-mentioned Indenture. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION, as Trustee

		
	 By:
	 	  

		 	Authorized Signatory

  
 [FORM OF REVERSE OF
NOTE] 
 PLUM CREEK TIMBERLANDS, L.P. 
 4.70% Note due 2021 
 This Note is one of a duly authorized issue of senior debt
securities of the Issuer (hereinafter called the “Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to an Indenture, dated as of November 14, 2005 (the “Indenture”), duly
executed and delivered by the Issuer and Plum Creek Timber Company, Inc., as guarantor (the “Guarantor”), to U.S. Bank National Association, as trustee (the “Trustee,” which term includes any successor trustee under the Indenture
with respect to the series of Securities of which this Note is a part), and reference is hereby made to the Indenture, and all modifications and amendments and indentures supplemental thereto relating to the Notes, made for a description of the
rights, limitations of rights, obligations, duties, and immunities thereunder of the Trustee, the Issuer, the Guarantor and the Holders of the Notes and the terms upon which the Notes are authenticated and delivered. The Securities may be issued in
one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may accrue interest (if any) at different rates or formulas and may otherwise vary as provided in the Indenture. This
Note is one of a series of Securities designated as the “4.70% Notes due 2021” (collectively, the “Notes”) of the Issuer, limited (except as permitted under the Indenture) in aggregate principal amount to $575,000,000.

 Payments of principal, premium, if any, and interest in respect of the Notes will be fully and unconditionally guaranteed by
the Guarantor. 
 The Issuer may redeem this Note, at any time in whole or from time to time in part, at the option of the
Issuer, at a price equal to the sum of 100% of the aggregate principal amount of the Notes being redeemed, accrued but unpaid interest on those Notes to but excluding the date fixed for redemption (the “Redemption Date”), and, unless the
Notes are redeemed on or after December 15, 2020, the Make-Whole Amount, if any, as defined below (the “Redemption Price”); provided, however, that interest installments due on an Interest Payment Date which is on or
prior to the Redemption Date will be payable to the Holder hereof (or one or more predecessor Notes) as of the close of business on the Regular Record Date preceding such Interest Payment Date. 

If notice has been given as provided in the Indenture and funds for the redemption of this Note or any part thereof called for redemption
shall have been made available on the Redemption Date, this Note or such part thereof will cease to bear interest on the Redemption Date referred to in such notice and the only right of the Holder will be to receive payment of the Redemption Price.
Notice of any optional redemption of any Notes will be given to the Holder hereof (in accordance with the provisions of the Indenture), not more than 60 nor less than 30 days prior to the Redemption Date. The notice of redemption will specify, among
other things, the Redemption Date, the Redemption Price and the principal amount of Notes to be redeemed. In the event of redemption of this Note in part only, a new Note of like tenor for the unredeemed portion hereof and otherwise having the same
terms and provisions as this Note shall be issued by the Issuer in the name of the Holder hereof upon the presentation and surrender hereof. 
 “Make-Whole Amount” means, in connection with any optional redemption, the excess, if any, of (a) the aggregate present value as of the date of such redemption of each dollar
of principal being 

 
redeemed and the amount of interest, exclusive of interest accrued to the Redemption Date, that would have been payable in respect of each such dollar if such redemption had not been made,
determined by discounting, on a semi-annual basis (assuming a 360-day year of twelve 30-day months), such principal and interest at the Reinvestment Rate, determined on the third Business Day preceding the date notice of such redemption is given,
from the respective dates on which such principal and interest would have been payable if such redemption had not been made, to the date of redemption, over (b) the aggregate principal amount of the Notes being redeemed. 

“Reinvestment Rate” means 0.35% plus the arithmetic mean of the yields under the heading “Week Ending”
published in the most recent Statistical Release under the caption “Treasury Constant Maturities” for the maturity, rounded to the nearest month, corresponding to the remaining life to maturity, as of the redemption date of the Notes being
redeemed. If no maturity exactly corresponds to such maturity, yields for the two published maturities most closely corresponding to such maturity shall be calculated pursuant to the immediately preceding sentence and the Reinvestment Rate shall be
interpolated or extrapolated from such yields on a straight-line basis, rounding each of such relevant periods to the nearest month. For the purposes of calculating the Reinvestment Rate, the most recent Statistical Release published prior to the
date of determination of the Make-Whole Amount shall be used. If the format or content of the Statistical Release changes in a manner that precludes determination of the Treasury yield in the above manner, then the Treasury yield shall be determined
in the manner that most closely approximates the above manner, as reasonably determined by the Issuer. 

“Statistical Release” means the statistical release designated “H.15(519)” or any successor publication
which is published weekly by the Federal Reserve System and which reports yields on actively traded United States government securities adjusted to constant maturities, or, if such statistical release is not published at the time of any required
determination under the indenture, then such other reasonably comparable index which shall be designated by the Issuer. 
 Upon
the occurrence of a Change of Control Repurchase Event (as defined below), unless the Issuer has exercised its right to redeem all the Notes in accordance with the redemption terms as set forth herein, the Issuer shall be required to make an
irrevocable offer to each Holder of Notes to repurchase all or any part (in integral multiples of $1,000, provided any remaining principal amount resulting from a partial redemption is at least $2,000) of such Holder’s Notes at a repurchase
price in cash equal to 101% of the aggregate principal amount of Notes repurchased plus any accrued and unpaid interest, if any, on the Notes repurchased to, but not including, the date of repurchase, subject to the rights of Holders of Notes on a
Regular Record Date or Special Record Date, as applicable to receive interest due on the related Interest Payment Date. 

Within 30 days following any Change of Control Repurchase Event or, at the Issuer’s option, prior to any Change of Control (as
defined below), but after the public announcement of such Change of Control, the Issuer shall mail to each Holder of Notes, with a copy to the Trustee, a notice: 
  

	 	(i)	describing the transaction or transactions that constitute or may constitute the Change of Control Repurchase Event; 

 

	 	(ii)	offering to repurchase all Notes tendered; 

  

	 	(iii)	setting forth the payment date for the repurchase of the Notes (the “Repurchase Date”), which date will be no earlier than 30 days and no later than 60 days
from the date such notice is mailed; 

  

	 	(iv)	if mailed prior to the date of consummation of the Change of Control, stating that the offer to repurchase is conditioned on a Change of Control Repurchase Event
occurring on or prior to the Repurchase Date; 

  

	 	(v)	disclosing that any Note not tendered for repurchase will continue to accrue interest; and 

 

	 	(vi)	specifying the procedures for tendering Notes. 

 The Issuer shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and any other securities laws and regulations thereunder
to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Repurchase Event. To the extent that the provisions of any securities laws or regulations conflict with the
Change of Control Repurchase Event provisions of the Notes, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Repurchase Event provisions of
the Notes by virtue of such conflict. 
 On the Repurchase Date in respect of a Change of Control Repurchase Event, the Issuer
shall, to the extent lawful: 
  

	 	(i)	accept for payment all Notes or portions thereof properly tendered pursuant to such offer; 

 

	 	(ii)	deposit with the paying agent for the Notes (the “Paying Agent”), which shall initially be the Trustee, an amount equal to the aggregate repurchase price in
respect of all Notes or portions thereof properly tendered; and 

  

	 	(iii)	deliver or cause to be delivered to the Trustee the Notes properly accepted, together with an Officer’s Certificate stating the aggregate principal amount of Notes
being repurchased by the Issuer and that all conditions precedent to the repurchase offer and repurchase by the Issuer have been complied with. 

 The Issuer shall not be required to make an offer to repurchase the Notes upon a Change of Control Repurchase Event if a third party makes such an offer in the manner, at the times and otherwise in
compliance with the requirements for an offer made by the Issuer and such third party purchases all Notes properly tendered and not withdrawn under its offer. 
 The Paying Agent will promptly mail to each Holder of Notes properly tendered the purchase price for such Notes, and the Trustee, upon the execution and delivery by the Issuer of such Notes, will promptly
authenticate and mail (or cause to be transferred by book-entry) to each Holder of a Note tendered in part for repurchase a new Note equal in principal amount to any unrepurchased portion of such tendered Notes; provided that each new Note will be
in a denomination of $2,000 and whole multiples of $1,000 in excess thereof. 

  
 “Below
Investment Grade Ratings Event” means that on any day within the 60-day period (which period shall be extended so long as the rating of the Notes is under publicly announced consideration for a possible downgrade by each of the Rating
Agencies) after the earlier of (i) the occurrence of a Change of Control; and (ii) public notice of the occurrence of a Change of Control or the intention by the Issuer or the Guarantor to effect a Change of Control, the Notes are rated
below Investment Grade by each of the Rating Agencies. Notwithstanding the foregoing, a Below Investment Grade Ratings Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a
particular Change of Control (and thus shall not be deemed a Below Investment Grade Ratings Event for purposes of the definition of Change of Control Repurchase Event hereunder) if any of the Rating Agencies making the reduction in rating to which
this definition would otherwise apply does not announce or publicly confirm or inform the Trustee in writing that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect
of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of such ratings event). 
 “Capital Stock” means ,with respect to any specified Person, any and all shares, interests, participations, or other equivalents (however designated, whether voting or non-voting),
including partnership interests, whether general or limited, in the equity of such Person, whether outstanding on the date hereof or issued hereafter, including, without limitation, all common stock, preferred stock and units. 

“Change of Control” means: 
 (i) any sale, lease, transfer or other conveyance (other than by way of merger or consolidation), whether direct or indirect, of all or substantially all of the assets of the Guarantor or the Issuer, on a
consolidated basis, in one transaction or a series of related transactions, to any “person” or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable) other than
the Guarantor or one of its Subsidiaries; 
 (ii) the consummation of any transaction (including, without limitation, any merger
or consolidation) the result of which is that any “person” or “group” (as such terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable) other than the Guarantor or one of its
Subsidiaries becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding Voting Stock of the Guarantor or the Issuer measured by voting power
rather than number of shares or units; provided, however, that a transaction will not be deemed to involve a Change of Control if the Guarantor or the the Issuer becomes a wholly owned Subsidiary of a holding company and the holders of the
Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the Voting Stock of the Guarantor or the Issuer, as applicable, immediately prior to the transaction; 

(iii) the Issuer or the Guarantor consolidates with, or merges with or into, any “person” (as such term is used for purposes of
Sections 13(d) and 14(d) of the Exchange Act, whether or not applicable), or any “person” consolidates with, or merges with or into, the Issuer or the Guarantor, in any such event pursuant to a transaction in which any of the outstanding
Voting Stock of the Issuer or the Guarantor, as the case may be, or such other “person” is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares or units of the Voting Stock of
the Issuer or the Guarantor outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving “person” immediately after giving effect to such transaction;

  
 (iv) the first day on
which a majority of the members of the Board of Directors of the Guarantor are not Continuing Directors; or 
 (v) Plum Creek
Timber I, L.L.C. (or a successor general partner that is a Subsidiary of the Guarantor) ceases to be a general partner of the Issuer or ceases to control the Issuer. 
 provided, however, that neither: 
 (x) the pro rata distribution by the
Guarantor to its shareholders of Capital Stock of the Issuer or of any of the Guarantor’s other Subsidiaries; nor 
 (y)
the replacement of Plum Creek Timber I, L.L.C. (or of a successor general partner) with a Subsidiary of the Guarantor as the general partner of the Issuer; 
 shall, in and of itself, constitute a Change of Control for purposes of this definition. 
 “Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Below Investment Grade Ratings Event. 

“Continuing Directors” means, as of any date of determination, any member of the Guarantor’s Board of
Directors who (1) was a member of such Board of Directors on the date the Notes were initially issued or (2) was nominated for election, elected or appointed to such Board of Directors with the approval of a majority of the Continuing
Directors who were members of such Board of Directors at the time of such nomination, election or appointment (either by a specific vote or by approval of the proxy statement of the Guarantor in which such member was named as a nominee for election
as a director, without objection to such nomination). 
 “Investment Grade” means a rating of Baa3 or
better by Moody’s (or its equivalent under any successor rating category of Moody’s) and a rating of BBB- or better by S&P (or its equivalent under any successor rating category of S&P), and the equivalent investment grade rating
from any replacement rating agency or rating agencies selected by the Issuer under the circumstances permitting the Issuer to select a replacement rating agency and in the manner for selecting a replacement rating agency, in each case as set forth
in the definition of “Rating Agencies.”. 
 “Moody’s” means Moody’s Investors
Service, Inc. (or any successor). 
 “Rating Agencies” means each of Moody’s and S&P; provided,
if either of Moody’s or S&P ceases to rate the notes or fails to make a rating of the Notes publicly available for reasons outside of the Issuer’s or the Guarantor’s control, the Issuer may appoint another “nationally
recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act as a replacement agency for Moody’s or S&P, or both of them, as the case may be, provided that the Issuer delivers
written notice of such appointment to the Trustee. 
 “S&P” means Standard & Poor’s
Ratings Services, a division of The McGraw-Hill Companies, Inc. (or any successor). 

  
 “Voting
Stock” of any specified “person” (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date means the capital stock of such “person” that is at the time entitled to vote generally in the
election of the board of directors, managers or trustees of such “person,” as applicable. 
 This Note is not
mandatorily redeemable and is not entitled to the benefit of a sinking fund or any analogous provisions. 
 In case an Event of
Default with respect to this Note shall have occurred and be continuing, the principal hereof may be (and, in certain cases, shall be) declared, and upon such declaration shall become, due and payable, in the manner, with the effect, and subject to
the conditions, provided in the Indenture. 
 The Indenture permits, with certain exceptions as therein provided, the amendment
thereof and the modification of the rights and obligations of the Issuer and, if applicable, the Guarantor, and the rights of the Holders of the Securities under the Indenture at any time by the Issuer and, if applicable, the Guarantor, and the
Trustee with the consent of the Holders of a majority in the aggregate principal amount of Securities of all series issued under the Indenture at the time Outstanding and affected thereby. Furthermore, provisions in the Indenture permit the Holders
of a majority in the aggregate principal amount of the Outstanding Securities of any series, in certain instances, to waive, on behalf of all of the Holders of Securities of such series, certain past defaults under the Indenture and their
consequences. Any such waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and other Notes issued upon the registration of transfer hereof or in exchange hereof, or in lieu
hereof, whether or not notation of such consent or waiver is made upon this Note. 
 No reference herein to the Indenture and no
provision of this Note or the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of, and premium, if any, with respect to, and interest on, this Note in the manner, at the
respective times, at the rate and in the coin or currency herein prescribed. 
 This Note is issuable only in definitive
registered form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. This Note may be exchanged for a like aggregate principal amount of Notes of other authorized denominations at the office or agency of
the Issuer in The City of New York, in the manner and subject to the limitations provided herein and in the Indenture, but without the payment of any charge except for any tax or other governmental charge imposed in connection therewith. 

The Issuer shall not pay additional amounts on this Note held by a Person that is not a U.S. Person in respect of taxes or similar
charges withheld or deducted. 
 The Issuer, the Guarantor or the Trustee and any authorized agent of the Issuer, the Guarantor
or the Trustee may deem and treat the Person in whose name this Note is registered as the Holder and absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for
the purpose of receiving payment of, or on account of, the principal of, or premium, if any, with respect to, or subject to the provisions on the face hereof, interest on, this Note and for all other purposes, and none of the Issuer, the Guarantor
or the Trustee or any authorized agent of the Issuer, the Guarantor or the Trustee shall be affected by any notice to the contrary. 

  
 THE INDENTURE AND THIS
NOTE SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW. 

  
 GUARANTEE 

OF 
 PLUM CREEK
TIMBER COMPANY, INC. 
 For value received, Plum Creek Timber Company, Inc., a corporation duly organized and existing under the
laws of the State of Delaware (the “Guarantor”), hereby unconditionally guarantees to the Holder of the Note upon which this Guarantee is endorsed the due and punctual payment of the principal of, interest on, and premium, if any, required
with respect to said Note, when and as the same shall become due and payable, whether on the Stated Maturity Date, by acceleration, redemption, repurchase or repayment or otherwise, according to the terms thereof and of the Indenture referred to
therein. In case of the failure of Plum Creek Timberlands, L.P. (the “Issuer,” which term includes any successor thereof under the Indenture) punctually to pay any such principal, interest, or premium, the Guarantor hereby agrees to cause
any such payment to be made punctually when and as the same shall become due and payable, whether on the Stated Maturity Date, by acceleration, redemption, repurchase or repayment or otherwise, and as if such payment were made by the Issuer.

 The obligations of the Guarantor to the Holders and to the Trustee pursuant to this Guarantee and the Indenture are expressly
set forth in Article XIII of the Indenture and reference is hereby made to such Indenture for the precise terms of this Guarantee. 
 The Guarantor hereby agrees that its obligations hereunder shall be as principal and not merely as surety, and shall be absolute, irrevocable and unconditional, irrespective of, and shall be unaffected
by, any invalidity, irregularity or unenforceability of said Note or said Indenture, any failure to enforce the provisions of said Note or said Indenture, or any waiver, modification, consent or indulgence granted to the Issuer with respect thereto,
by the Holder of said Note or the Trustee under said Indenture, the recovery of any judgment against the Issuer or any action to enforce the same, or any other circumstances which may otherwise constitute a legal or equitable discharge of a surety
or guarantor. The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of merger, insolvency or bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, protest or
notice with respect to said Note or the indebtedness evidenced thereby and all demands whatsoever, and covenants that this Guarantee will not be discharged except by payment in full of the principal of, and interest on, and premium, if any, required
with respect to, said Note and the complete performance of all other obligations contained in said Note. 
 The Guarantor shall
be subrogated to all rights of the Holder of said Note against the Issuer in respect of any amounts paid to such Holder by the Guarantor pursuant to the provisions of this Guarantee; provided, however, that the Guarantor shall not be
entitled to enforce, or to receive any payments arising out of or based upon, such right of subrogation until the principal of, interest on, and premium, if any, required with respect to, all Notes of this series issued under said Indenture shall
have been paid in full and its other obligations under said Indenture completed. 
 The Guarantor hereby certifies and warrants
that all acts, conditions and things required to be done and performed and to have happened precedent to the creation and issuance of this Guarantee and to constitute the same the valid obligation of the Guarantor have been done and performed and
have happened in due compliance with all applicable laws. 
 This Guarantee as endorsed on said Note shall not be entitled to
any benefit under said Indenture or become valid or obligatory for any purpose until the certificate of authentication on said Note shall have been signed manually by or on behalf of the Trustee under said Indenture. 

  
 THE GUARANTEE AND THIS
NOTE SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW. 

  
 IN WITNESS WHEREOF,
the Guarantor has caused this instrument to be duly executed, manually or by facsimile by an authorized signatory. 
 Date:
November 15, 2010 
  

			
	 PLUM CREEK TIMBER COMPANY, INC.,
 as Guarantor

		
	By:	 	  

		 	Name:
		 	Title:

  

			
	ATTEST:
		
	By:	 	  

		 	Assistant Secretary

  
 ASSIGNMENT FORM

 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

 
  
 Please insert social security number or other identifying number of assignee: 
  

 
 Please print or type name and address
(including zip code) of assignee: 
  
  

 
  

 
  

 
  
 the within Note and all rights thereunder, hereby irrevocably constituting and appointing ________________________________ attorney to transfer said Note of PLUM CREEK TIMBERLANDS, L.P. on the books of
PLUM CREEK TIMBERLANDS, L.P., with full power of substitution in the premises. 
  

 
  

			
		
	Dated:	 	 

 Signature Guaranteed 

 
  

			
	  
 NOTICE: Signature must be
guaranteed by an eligible Guarantor Institution (banks, stockbrokers, savings and loan associations and credit unions) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule
17Ad-15.
	  	  
 NOTICE: The signature to this
Assignment must correspond with the name as written upon the face of the within Note in every particular, without alteration or enlargement or any change whatever.

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