Document:

Exhibit 10.16

 

REVOLVING
LOAN NOTE

 

	
  $2,500,000

  	
   

  
	
  February 22,
  2008

  	
  New York, New York

  

 

FOR VALUE RECEIVED, BOISE PAPER HOLDINGS,
L.L.C., a Delaware limited
liability company, as successor by merger to ALDABRA SUB
LLC, a Delaware limited liability company (“Borrower”), promises to pay RZB FINANCE LLC (“Payee”)
or its registered permitted assigns, on or before the Revolving Commitment
Termination Date, the lesser of (a) TWO MILLION FIVE HUNDRED
THOUSAND  DOLLARS ($2,500,000))
and (b) the unpaid principal amount of all advances made by Payee to
Borrower as Revolving Loans under the Credit Agreement referred to below.

 

Borrower also promises to pay interest on the unpaid
principal amount hereof, from the date hereof until paid in full (except for
contingent obligations for which no claim has been made), at the rates and at
the times which shall be determined in accordance with the provisions of that
certain Credit and Guaranty Agreement, dated as of February 22, 2008 (as
it may be amended, supplemented or otherwise modified, the “Credit Agreement”; the terms defined
therein and not otherwise defined herein being used herein as therein defined),
by and among BORROWER, ALDABRA
HOLDING SUB LLC, a Delaware limited liability company, certain
Subsidiaries of Borrower, as Guarantors, the Lenders party thereto from time to
time, GOLDMAN SACHS CREDIT PARTNERS L.P.,
as Administrative Agent and certain other agents party thereto.

 

This Note is one of the “Revolving Loan Notes” in the
aggregate principal amount of $250,000,000 and is issued pursuant to and
entitled to the benefits of the Credit Agreement, to which reference is hereby
made for a more complete statement of the terms and conditions under which the
Loans evidenced hereby were made and are to be repaid.

 

All payments of principal and interest in respect of
this Note shall be made in lawful money of the United States of America in same
day funds at the Principal Office of Administrative Agent or at such other
place as shall be designated in writing for such purpose in accordance with the
terms of the Credit Agreement.  Unless
and until an Assignment Agreement effecting the assignment or transfer of the
obligations evidenced hereby shall have been accepted by Administrative Agent and,
if required by the Credit Agreement, consented to by Borrower and recorded in
the Register, Borrower, each Agent and Lenders shall be entitled to deem and
treat Payee as the owner and holder of this Note and the obligations evidenced
hereby.  Payee hereby agrees, by its
acceptance hereof, that before disposing of this Note or any part hereof, it
will make a notation hereon of all principal payments previously made hereunder
and of the date to which interest hereon has been paid; provided, the failure
to make a notation of any payment made on this Note shall not limit or
otherwise affect the obligations of Borrower hereunder with respect to payments
of principal of or interest on this Note.

 

This Note is subject to mandatory prepayment and to
prepayment at the option of Borrower, each as provided in the Credit Agreement.

 

THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF BORROWER
AND PAYEE HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

The unpaid balance of the principal amount of this
Note, together with all accrued and unpaid interest thereon, (i) will
automatically upon the occurrence of any Event of Default described in Section 8.1(f) or
8.1(g) of the Credit Agreement or (ii) may if any other Event of
Default has occurred and is continuing, become or be declared to be due and
payable in the manner, upon the conditions and with the effect provided in the
Credit Agreement.

 

The terms of this Note are subject to amendment only
in the manner provided in the Credit Agreement.

 

 

No reference herein to the Credit Agreement and no
provision of this Note or the Credit Agreement shall alter or impair the
obligations of Borrower, which are absolute and unconditional, to pay the
principal of and interest on this Note at the place, at the respective times,
and in the currency herein prescribed.

 

Borrower promises to pay all reasonable, out-of-pocket
costs and expenses, including reasonable attorneys’ fees, all as provided in
the Credit Agreement, incurred in the collection and enforcement of this
Note.  Borrower and any endorsers of this
Note hereby consent to renewals and extensions of time at or after the maturity
hereof, without notice, and hereby waive diligence, presentment, protest,
demand notice of every kind and the right to plead any statute of limitations
as a defense to any demand hereunder, in each case to the full extent permitted
by applicable law.

 

 [Remainder of page intentionally
left blank]

 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be
duly executed and delivered by its officer thereunto duly authorized as of the
date and at the place first written above.

 

	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
  Name:
  Samuel K. Cotterell

  
	
   

  	
  Title:
  Vice President

  

 

[Signature
Page to Revolving Loan Note]

 

 

TRANSACTIONS ON

REVOLVING LOAN NOTE

 

	
  Date

  	
   

  	
  Amount of Loan

  Made This Date

  	
   

  	
  Amount of Principal

  Paid This Date

  	
   

  	
  Outstanding Principal

  Balance This Date

  	
   

  	
  Notation

  Made ByExhibit 10.17

 

OUTSOURCING SERVICES AGREEMENT

 

by and between

 

BOISE CASCADE, L.L.C.,

 

and

 

BOISE
PAPER HOLDINGS, L.L.C.

 

February 22, 2008

 

 

Outsourcing Services Agreement

 

This Outsourcing
Services Agreement is made and entered into, as of February 22,
2008 (the “Execution Date”), by
and between Boise Cascade, LLC, a Delaware limited liability company (“Boise  Cascade”),
and Boise Paper Holdings, L.L.C., a Delaware limited liability company (“Boise Paper”), (each, a “Party,” and collectively, the “Parties”).

 

WHEREAS,
pursuant to
that certain Purchase and Sale Agreement, by and among Boise Cascade and
certain of its Affiliates and Aldabra 2 Acquisition Corp. (“Aldabra”) and certain of its Affiliates,
dated September 7, 2007 (as the same has been and may be amended,
modified, supplemented or waived from time to time, the “Purchase Agreement”), Boise Cascade is
selling its paper, packaging and newsprint and transportation businesses and
most of its corporate staff operations to Boise Paper by means of (i) a
contribution and transfer of (x) the stock of its paper, newsprint and
packaging and transportation subsidiaries and (y) certain additional
assets and personnel involved in its paper, newsprint and packaging, and
transportation businesses and its staff operations to Boise Paper and (ii) a
sale of the entire equity interest in Boise Paper to a wholly owned subsidiary
of Aldabra; and

 

WHEREAS, Boise
Cascade and Boise Paper have agreed in the Purchase Agreement to cause the
parties and their Affiliates to provide corporate staff services to each other
on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, the Parties agree as follows.

 

1.             Defined Terms.

 

All definitions contained
in Appendix 1 shall apply throughout this Agreement and each appendix,
schedule, exhibit, and other attachment made a part hereof and any Statement of
Work entered into pursuant hereto unless, in respect of a Statement of Work,
its terms provide a different definition of a term to be used solely in respect
of that Statement of Work.

 

2.             Services; Statements
of Work.

 

The Services to be
provided by the parties to each other shall be as set forth in the Statements
of Work provided for below

 

2.1.         Statements of Work.

 

2.1.1.      Initial Statements of Work.  Concurrently with
the execution of this Agreement, the Parties are entering into Statements of
Work which describe certain corporate staff Services to be provided during the
term of this Agreement, copies of which are attached as Appendix 2.  Each Statement of Work identifies one Party
as a Service Provider and the other Party as a Services Recipient in respect of
the Services to be provided pursuant to such Statement of Work, describes the
Services to be provided thereunder, and the compensation to be paid therefor,
and certain additional information called for in this Agreement.

 

2.1.2.      Subsequent Statements of Work. 
The Parties may, but shall not be required to, from time to time during
the term hereof, enter into one or more additional Statements of Work that
provide for the provision by one Party to the other of additional Services not
provided for in any other Statement of Work then in effect.  Any subsequent Statement of Work shall be
substantially in the form of the Statements of Work attached as Appendix 2 and
shall be signed by an authorized representative of each Party.  Each Statement of Work shall become effective
on the date specified in the Statement of 

 

 

Work and continue in effect until the expiration date
specified in the Statement of Work, but not longer than the then remaining term
of this Agreement.

 

2.2.         Services to and by
Affiliates.  Services to be
provided hereunder shall be provided to the Party designated in the Statement
of Work as the Services Recipient and to all of its Affiliates unless the Statement
of Work provides a narrower definition of Services Recipient.  A Service Provider may provide Services
hereunder directly or through one or more of its Affiliates and provision of
Services by an Affiliate of a Service Provider shall satisfy the obligations of
the Service Provider hereunder; provided that, if a Service Provider
elects to have Services provided hereunder through one or more of its
Affiliates, the Service Provider shall remain as fully liable for the provision
of such Services as though it had provided them directly.

 

2.3.         Order of Precedence.  In the event of any
conflict between the terms of this Agreement and a Statement of Work, the terms
of this Agreement shall control unless the Statement of Work contains a
provision expressly identifying any provision of this Agreement which the
parties intend to be superseded by the terms of such Statement of Work,
expressing their intent to so modify such provision for purposes of such
Statement of Work, setting out the scope of the modification, and acknowledging
that such modification is limited in its effect solely to the Statement of Work
in which it is contained.  In such event
the Statement of Work shall be signed by the Relationship Manager of each Party.

 

2.4.         Services Inclusive.  The
descriptions of Services contained in the Statements of Work are intended by
the parties to be descriptive and not exhaustive.  To this end, the Services provided pursuant
to this Agreement shall include performance of: (i) the functions and
activities specifically described in the relevant Statement of Work; (ii) all
ancillary functions and activities related thereto that, even though not
specifically identified in the relevant statement of Work, were being performed
by Boise Cascade’s relevant staff function in connection with the Services more
particularly described in the Statement of Work prior to the Execution Date;
and (iii) additional Services relating to the Services described in such
Statement of Work that become necessary for the Service Provider to ensure that
it delivers the relevant service in compliance with Law or that become
necessary to the Services Recipient to ensure that it carries out the business
functions affected by such Service in compliance with Law, including in each
case any new or changed Laws applicable to the activities involved.

 

2.5.         Absolute Obligation.  Subject
to Sections 22.5, and 25.2 hereof, a Service Provider’s
obligation to provide the Services required by this Agreement shall be absolute
and unconditional and Service Provider may not suspend provision of the
Services in the event of a Dispute (including a dispute over payment).

 

3.             Term of the Agreement. 
Subject to the provisions of any Section hereof permitting early
termination of this Agreement, the “Initial
Term” of this Agreement shall commence as of the Execution Date and
end on the third anniversary of the Execution Date.  Thereafter. this Agreement shall continue for
successive renewal terms of one year each (each such one-year term, a “Renewal Term”) beginning on the date of the
expiration of the Initial Term or the immediately preceding Renewal Term and
concluding on the first anniversary of the expiration of such Initial Term or
Renewal Term, unless either party shall have given written notice of
non-renewal to the other Party not less than 364 days prior to the end of the
Initial Term or the Renewal Term then in effect.  When used herein, the “Term” of this Agreement shall be the
Initial Term and each Renewal Term; provided that the “Term” of this Agreement shall terminate on
any earlier termination of this Agreement in accordance with its terms.  No expiration or termination of the Term
shall release any party from liability for breach of this Agreement arising
prior to such expiration or termination. 
Absent a provision to the contrary in any Statement of Work, and subject
to the provisions of any Section hereof permitting early termination of
this Agreement or any 

 

2

 

Statement of Work, the term of each Statement of Work shall commence on
the date of its execution by the parties and end on the termination of this
Agreement.

 

4.             Service Provider’s
Commitments

 

4.1.         Personnel and Facilities. 
Except as otherwise expressly provided in this Agreement or a Statement
of Work, Service Provider shall be responsible during the Term for providing
all facilities, personnel, and other resources necessary for Service Provider’s
provision of the Services, and all costs and expenses associated
therewith.  If provision of any Services
to Services Recipient at the level and quality required hereby while
simultaneously providing the same or similar Services to the Service Provider’s
own operations requires an expansion of Service Provider’s staff providing such
Service, Service Provider shall promptly engage such additional Personnel as
may be necessary to satisfy its and Services Recipient’s combined
requirements.  Each Party shall make all
capital investments in equipment or other assets necessary to deliver or
utilize Services provided for hereby or as may be necessary to maintain the
quality of the Services in accordance with the Performance Requirements.  All such capital expenditures shall be made
at Service Provider’s sole expense and all equipment and other assets with
respect to which such capital expenditures are made shall be owned exclusively
by the Service Provider notwithstanding any provision herein for recovery of
all or any portion of the Service Provider’s depreciation expense in respect of
such equipment from Services Recipient; provided that if a capital
expenditure is required solely to respond to a request for specific incremental
services by a Services Recipient, such expenditure shall be made by the
Services Recipient and the equipment or other asset with respect to which such
capital expenditures are made shall be exclusively owned by Services Recipient,
but Service Provider shall operate such capital item as necessary to provide
services hereunder.

 

4.2.         Improvements and New
Technology.   If requested by Services Recipient, or where
it is essential to continuation of provision of a Service on a cost effective
and efficient basis, Service Provider shall make available to Services
Recipient all of the updates, modifications and improvements to the Services
that Service Provider provides to its own business units and operations for
Services that are the same as or substantially similar to the Services.  Where necessary for continued use and
enjoyment of a service by the Services Recipient, Service Provider shall also
provide and deliver to Services Recipient all updates, modifications and
improvements to Documentation, Software, processes, materials, and technology
on a basis that is no less favorable than the updates, modifications and
improvements to the foregoing that Service Provider provides to its own
business units and operations.

 

5.             Volume of Services
and Changes

 

5.1          Volume of Services. 
Unless any Statement of Work provides otherwise, the volume of Service
to be provided for any particular Service, shall be Services Recipient’s full
requirements for such Service and the Service Provider shall make, on a timely
basis, such additions to its staff and equipment necessary to meet such
requirements, in combination with its own requirements for Services provided by
the same staff and equipment.  In the
event that a Services Recipient foresees a need for a material increase or
decrease in any Service provided hereunder, it shall give the Service Provider
reasonable notice of the scope and timing of such prospective change in Service
level, and the Service Provider shall take reasonable steps to appropriately
adjust its capacity to deliver such Service, including addition or reduction of
staff, addition of equipment, etc.  Additional
costs incurred for any expansion of Service shall be allocated between the
parties pursuant to Section 10 hereof and any relevant provision of the
specific Statement of Work covering such Service.

 

5.2          Changes in Scope.  Changes in scope of any particular Service to
be provided hereunder (other than changes in the volume of any particular
service) shall be effected as follows:

 

3

 

5.2.1  Changes in Legal Requirements.  Where a change in the scope of any Service is
necessitated by a change in any statute, regulation, or other legally
enforceable requirement or any change in accounting rules applicable to
the Services Recipient, the Service Provider shall provide the additional
Services necessitated by such change on the same basis as a change in volume
pursuant to Section 5.1 hereof.

 

5.2.2  Changes in Business Requirements.  Where a change in the scope of any Service is
necessitated by a change in the business requirements of the Services
Recipient, including a decision to enter a new line of business, or to change
its administrative procedures, and the additional Services required thereby are
ones that can be accommodated by the Service Provider’s existing staff function
(with or without the addition of personnel thereto) without addition of a wholly
new staff function, such additional Service requirement shall be treated the
same as a change in Service level under Section 5.1.  However, where the required additional
Services cannot be so accommodated, they may be added to this Agreement only by
execution of a new Statement of Work on terms and conditions reasonably
satisfactory to each Party; provided that neither Party shall be
obligated to enter into any such new Statement of Work.  By way of example and without limiting the
foregoing, an expansion of scope which would be governed by the same rules as
Section 5.1 would be a change in a Services Recipient’s financial
reporting requirements necessitated by a new credit agreement and an example of
a change in scope of Services which would not be governed by the same rules as
Section 5.1 would be the acquisition by the Services Recipient of a
foreign subsidiary that requires preparation of financial reports in accordance
with generally accepted accounting principles of a jurisdiction other than the
United States.

 

6.             Record Keeping

 

6.1          General.  Service
Provider shall maintain records which shall include complete and accurate
records of any invoices and supporting documentation for all amounts billable
to, and payments made by, Services Recipient under this Agreement.  Service Provider shall provide to Services
Recipient or its designee documentation and other information relating to each
invoice as may be reasonably requested by Services Recipient to verify that the
Charges on such invoice are accurate, complete, and valid in accordance with
this Agreement.

 

6.2          Compliance with Purchase Agreement.  Section 8S of the Purchase Agreement
shall apply to all records relating to Services Recipient created after the
Closing Date pursuant to the Services supplied under this Agreement.  The termination or earlier expiration of this
Agreement shall not affect the obligations of a Party pursuant to Section 8S
of the Purchase Agreement in respect of records created before the Execution
Date or records created pursuant to this Agreement after the Execution Date.

 

7.             Information
Security Requirements.  Each Party shall, with respect to the other
Party’s Confidential Information, comply with the most stringent of the
information security and privacy policies (i) in effect at Boise Cascade
immediately prior to the Execution Date; (ii) required by Law; or (iii) utilized
by the Party in possession of such Confidential Information from time to
time.  In addition, in the event of any
breach of the foregoing which results in the release of material Confidential
Information of a Party to third parties not controlled by the releasing Party
or to the general public, the Party responsible for such breach shall promptly
notify the other Party as soon as it becomes aware of any such breach,
violation or incident.

 

8.             Service Performance

 

8.1.         Performance of
Services—General Standard.  Absent
a provision to the contrary in any Statement of Work, Service Provider
shall provide each Service (i) in a professional, workmanlike manner, (ii) in
accordance with generally accepted industry standards and (iii) with a
standard of care that 

 

4

 

is no less than the greater of a standard of care (a) that was
observed prior to the Execution Date in providing such Service to Services
Recipient, and (b) that Service Provider observes in providing such
Service (or a substantially similar Service) to its own business units and
operations, and (iv) in accordance with any specific performance
requirements set forth in the applicable Statement of Work.

 

8.2          Reperformance. 
Services Recipient may require Service Provider to correct or re-perform
any defective or nonconforming Services at Service Provider’s sole expense when
such re-performance is reasonably necessary and practical under the
circumstances, as reasonably determined by Services Recipient.  Services Recipient may also require Service
Provider to take appropriate and reasonable steps to ensure that future performance
of the Services will be in accordance with the requirements of this Agreement
and the applicable Statements of Work. 
Service Provider shall undertake any remedial action required by this Section 8.2
at no additional charge to Services Recipient.

 

8.3          No Preferential
Treatment.  Service Provider shall
not favor its own business units and operations over those of Services
Recipient (including in the level of service, staffing priorities, allocation
of Personnel, training and expertise of Personnel, capital expenditures,
allocation of work between internal staff and third party service providers and
allocation of available resources upon the occurrence of a Force Majeure Event)
when providing to its own business units and operations Services that are the
same as, or substantially similar to, any Services provided hereunder or which
are provided to both Parties by the same Personnel.

 

9.             Business
Continuity and Disaster Recovery Plan. 
Any Service Provider providing data processing Services shall maintain a
disaster and business continuity plan in respect of its data processing
operations that provides a level of protection and service restoration
capability in respect of Services provided to Services Recipient that is not
less than that provided by Boise Cascade’s similar plans in effect  as
of immediately  prior to the
Effective Date.

 

10.          Charges.

 

10.1.       Direct Fully Allocated
Costs.  Unless provided to the contrary in a
Statement of Work, the Services Recipient shall pay the Service Provider for
the Services provided it under each Statement of Work an amount equal to the
Service Provider’s Direct Fully Allocated Cost of providing such Services.   When used herein, “Direct Fully Allocated Cost” shall mean an
allocable share of all direct costs incurred by Service Provider in the
delivery of such Services including (i) fully loaded wage costs of
personnel providing the Services including salary, payroll taxes, benefit
costs, incentive compensation costs and other like costs customarily included
in fully loaded employment costs; (ii) depreciation expense on equipment
or other assets used in the provision of such Services; (iii) building
rent for portions of the building in use for the delivery of such Services; (iv) out-of-pocket
expenses reimbursed to or incurred on account of staff employees providing such
Services including travel and entertainment and professional training; (v) payments
to third parties for Services utilized in the operation of any staff function
providing Services hereunder, excluding third party expense covered by Section 10.5
or for the provision by Service Provider of Services solely to itself; and (vi) portions
of the cost of other staff functions of Service Provider customarily allocated
to the staff function providing a Service, but without duplication of costs
already allocated to Services Recipient by such other staff functions.

 

Notwithstanding the foregoing, the “Direct Fully Allocated Cost” of any Service
shall not include any of Service Provider’s general overhead not specifically
attributable to a staff function providing Services hereunder, including (a) wage
and salary costs for senior executives not providing direct and immediate
management of a Service providing staff function; (b) any portion of
Service Provider’s cost of debt or equity financing; (c) any amount accrued,
paid, or received as state federal or

 

5

 

local income tax or franchise tax expense or benefit; and (d) indirect
costs of any staff function not customarily allocated by Service Provider to
its other staff functions.

 

Direct Fully Allocated Costs of each staff function
providing Services shall be estimated during the first six months and the last
six months of each calendar year on the basis of such staff function’s annual
budgeted costs of operations for the first six months and its budget update for
the last six months, in each case, as prepared in connection with such staff
functions normal business operations.  At
the end of each six month period, amounts billed and paid on the basis of such
budgeted costs shall be trued up to actual costs incurred during such period.

 

10.2        Allocations. 
Allocations of the costs to be included in Direct Fully Allocated Costs
shall, be made (i) on the basis of the percentage of staff time allocated
to the provision of Services to a Services Recipient in each staff function
providing Services, with such percentage to be reasonably determined and
reported monthly by the Service Provider; (ii) on the basis of units of
performance specified in the Statement of Work measured and reported monthly by
the Service Provider; or (iii) on such other basis as may be specified in
the relevant Statement of Work.  For the
avoidance of doubt, unless the options referred to in clause (ii) or (iii) of
this Section 10.2 are specifically selected for particular Service in a
Statement of Work, costs shall be allocated as provided in clause (i) of
this Section 10.2.

 

10.3        Third Party Expenses.  To the extent that a
Service Provider retains third parties to assist it in the provision of Services
to a Services Recipient and such Services are retained to augment the level of
Services which can be provided by its own staff, such third party costs shall
be included in its allocation of its direct costs of providing such Services
and allocated between the parties in accordance with clause (v) of Section 10.1
and included in charges in accordance with Section 10.2.  Where such third party Services are
specifically requested by the Services Recipient or obtained by the Service
Provider because it lacks the relevant expertise on its own staff to provide
such Service and does not have a need for such Services itself, such Services
shall not be included in the costs and cost allocation provided for above and
Services Recipient shall be required to reimburse expenses incurred by Service
Provider for such third party Services. 
The cost of any such Services shall be billed and paid along with each
monthly billing for estimated Direct Fully Allocated Cost of other Services.

 

10.4        Tax Obligations.  Service Provider shall bill to Services
Recipient and Services Recipient shall pay to Service Provider all sales and
use taxes applicable to Services provided hereunder.  Service Provider shall remit such sales and
use taxes to applicable taxing authorities and make all tax filings required
thereby.  All other Taxes shall be borne
by the Party incurring same and not included in any allocation of costs
hereunder.

 

11.                               Invoicing
and Payment

 

11.1.       Invoicing and Payment

 

11.1.1.    Payment Period.  Service
Provider shall invoice Services Recipient in arrears on or before the 15th day
of each month for the Estimated Fully Allocated Direct Costs and any third
party services incurred and paid by Service Provider which are required by Section 10.3
to be reimbursed separately from the cost allocation for such month.  Payment of each such invoice shall be due by
the 25th of such month.

 

11.1.2.    Late Payment.  If Services Recipient does not
pay undisputed amounts due to Service Provider within ten (10) days after
such payment became due and payable, Service Provider may give Services
Recipient notice in writing of late payment. 
In the event that such notice is given, Services

 

6

 

Recipient shall pay Service Provider a late fee calculated at a rate
per annum that is three percentage points above the Prime Rate from date the
relevant payment was due to the date of payment.

 

11.2        Record Keeping; Invoice
Audits.  Each Service Provider shall maintain accurate
records of the amounts billed to Services Recipient and the basis for such
billings, including records of the costs incurred and included in such bills
and the allocation of such costs in accordance with this Agreement.  At any time during the Term hereof (but not
more frequently than once every six months) and for a period of one year after
the termination hereof, Services Recipient or its designee may review and audit
such records in respect of any Statement of Work.  Service Provider shall cooperate in any audit
of such records that Services Recipient may undertake.  In
the event any such audit uncovers an overcharge of Services Recipient, then
Service Provider shall reimburse Services Recipient for the amount of the
overcharge and, if the overcharge is more than 10% of the aggregate Charges for
the period audited, interest on the amount of the overcharge calculated at a
rate per annum that is three percentage points above the Prime Rate from the
date paid until the date repaid.  If such
audit reveals an undercharge, Services Recipient shall pay the amount of such
undercharge at the time of payment of the next monthly payment of charges.  The cost of any such audit shall be borne by
the Services Recipient unless such audit reveals an overcharge of more than 15%
of the aggregate Charges for the period audited, in which case such audit costs
shall be reimbursed by the Service Provider.

 

11.3.       Disputed Charges.  Services Recipient shall pay all undisputed
Charges when they become due in accordance with this Agreement.  If Services Recipient, in good faith,
disputes any Charges regarding the Services, it shall promptly notify Service
Provider and the Parties shall address such Dispute through the Dispute
Resolution Process.  With respect to
those portions not in Dispute, Services Recipient shall pay such invoice in
accordance with the time period associated with the invoice.

 

11.4.       Invoice and Remittance Addresses.  Service
Provider shall send a unified invoice covering all Statements of Work to the
attention of the Controller of the Services Recipient at the principal offices
of the Services Recipient together with such supporting information as may be
reasonably requested by the Services Recipient. 
Services Recipient shall remit all payments due Service Provider under
this Agreement in United States Dollars by wire transfer or other electronic
method of immediately available funds to a domestic bank account designated by
Service Provider by the 25th of each month, or if such day is a day on which
banks are not regularly scheduled to be open for business in the united States,
the last working day prior to such date. 
Service Provider may change such payment account from time to time by
written notice to Services Recipient.

 

12.          Service Provider’s
Personnel

 

12.1.       Personnel

 

12.1.1.    Qualified Personnel.  Service
Provider shall provide its Personnel with suitable training, education, skill
and other qualifications to perform the Services under each specific Statement
of Work, and Service Provider shall be responsible for any and all acts or
omissions of the Personnel..

 

12.1.2.    Termination.  Except as otherwise set forth
in this Agreement, neither Party shall be liable to the other Party (or to any
third party, including any Personnel) for any termination of the employment or
engagement of any of the other Party’s Personnel, or costs arising therefrom,
in connection with this Agreement or the provision of the Services.

 

12.1.3.    Replacement at the Request of
Services Recipient.  Service Provider shall, in good faith,
consider reasonable requests from Services Recipient with respect to the
hiring, transfer, or removal for cause of any of Service Providers Personnel
providing the Services, solely with respect to the 

 

7

 

provision of such Services to Services Recipient;
provided that any hiring or termination decision (whether for cause or without
cause) shall be at the sole discretion of the Service Provider.

 

12.1.4.    Compliance with On-Site Policies.  When the
Personnel of a Party are on the other Party’s premises, they shall comply with
all applicable rules, regulations and policies applicable to other contractors
at such premises, including such matters as on-site working hours, holidays and
such Party’s  physical security and
safety policies.  If requested, each
Party shall use reasonable efforts to provide the other Party with written
copies of such rules, regulations and policies to the extent that such rules,
regulations, and policies are provided to third party contractors on such
premises.  Each Party may, in its sole
discretion, approve all Personnel requiring access to any of its facilities or
sites.

 

12.1.5.    Compliance with Agreement.   The
Parties will ensure that its Personnel providing or receiving the Services
comply with the applicable terms of this Agreement and the Statements of Work
(including the terms in Articles 7 and 14).

 

12.1.6.    Background Checks. 
Service Provider shall conduct background checks for Personnel hired or
engaged after the  Execution Date that
have access to or responsibility for Services Recipient’s cash, money, bank
accounts, investment accounts or other financial assets.

 

12.1.7.    Statements of Work. 
Statements of Work may specify additional Personnel requirements,
including requirements to use Personnel with specified training, skills or
education for specified tasks.

 

12.2.    Solicitation.  Notwithstanding Section 8R of
the Purchase Agreement, Services Recipient shall have the right to solicit or
hire any Personnel of Service Provider engaged in the provision of Services who
has been terminated by Service Provider, and to solicit any such personnel of
Service Provider to whom Service Provider has given notice of termination, provided
that any rehiring of any such Personnel by Services Recipient shall occur no
earlier than the termination date specified in such notice of termination.

 

12.3.    Non-Employment.  Service Provider’s Personnel are
not Services Recipient’s employees or agents, and Service Provider shall be
fully responsible for their acts, regardless of whether such Personnel are
acting within the scope of their employment or agency.  Service Provider shall be solely responsible
for the payment of compensation of the Personnel, and Service Provider shall
inform Personnel that they are not entitled to any of Services Recipient’s
employee benefits or to participate in any of its compensation plans.  Service Provider, and not Services Recipient,
shall be solely responsible for payment of worker’s compensation, disability
benefits and benefits similar thereto and unemployment insurance or for
withholding and paying employment taxes for the Personnel.  Service Provider shall, upon request of the
services Recipient cause its Personnel providing services hereunder to affirm
they are not employees of Services Recipient for any purpose and that they
shall not exercise any right or seek any benefit accruing to the regular
employees of Services Recipient.

 

13.          Relationship and
Statement of Work Management

 

13.1.       Relationship Managers
Each Party hereby appoints the individuals designated below to act as its
initial Relationship Manager:

 

	
  Boise Paper

  	
   

  	
  Rob McNutt

  
	
   

  	
   

  	
   

  
	
  Boise Cascade:

  	
   

  	
  Tom Carlile

  

 

8

 

Each Party represents and warrants that its
Relationship Manager shall have overall control of his or her Party’s
performance under this Agreement and shall have approval authority for all
operational matters relating to this Agreement. 
The Relationship Managers shall meet as requested by either Party (i) to
review performance, (ii) to coordinate provision of the Services, (iii) to
discuss the Party’s future Service requirements and service delivery capacity,
and (iv) to participate in the Dispute Resolution Process.  Either Party may change its Relationship
Manager at any time and from time to time upon written notice to the other.

 

13.2.       Responsible Managers.  Each Party shall designate, for each of the
applicable Statements of Work, a Responsible
Manager to act as its initial point of contact for each such Statement
of Work.  The Responsible Managers shall
have responsibilities for the implementation of the applicable Statement of
Work comparable to the responsibilities of the Relationship Managers for this
Agreement generally.  Either Party may
change its Responsible Manager for an applicable Statement of Work upon written
notice to the other Party’s Responsible Manager for such Statement of Work and
such other Party’s Relationship Manager. 
In the event that a Party does not designate a Responsible Manager in
any Statement of Work, then the Responsible Manager for such Party for such
Statement of Work shall be such Party’s Relationship Manager.

 

13.3.       Responsibility for Subcontractors and Third Party Suppliers.  With respect to any obligations of
Service Provider under this Agreement that is being performed by
subcontractors, Service Provider shall remain responsible for the discharge of
such obligations in accordance with this Agreement and shall also be
responsible for the subcontractor’s compliance with the terms and conditions of
this Agreement to the same extent Service Provider would be responsible for its
own compliance with the terms and conditions of this Agreement.  Service Provider shall not disclose to any
subcontractor or any third party supplier under a third party supplier
agreement with Service Provider any of Services Recipient’s Confidential
Information unless and until such subcontractor, vendor or supplier has a need
to know such Confidential Information for purposes of performance of Services
to Services Recipient and has agreed in writing (with Services Recipient as an
intended third party beneficiary of any such agreement executed after the
Execution Date) to protect the confidentiality of such information in a manner
that is equivalent to that required of Service Provider by Article 14.

 

13.4.       Failure to Act.  Services
Recipient’s failure to act or fulfill an obligation set forth in this Agreement
or an applicable Statement of Work, including failure to give any consents,
notices or approvals, shall not constitute breach of this Agreement or such
Statement of Work (other than Services Recipient’s failure to comply with its
payment obligations and disputed amounts requirements set forth in this
Agreement), but shall excuse Service Provider’s non-performance with respect to
the particular Service for which consent, notice or approval was sought, but
solely to the extent such failure to act or non-performance prevents Service
Provider from fulfilling its obligations hereunder with respect to such Service
for which consent, notice or approval was sought.

 

14.          Confidentiality

 

14.1.       Confidential
Information.  Each Party acknowledges that it may
possess or, in the course of providing or receiving the Services under this
Agreement, be exposed to, or acquire, Confidential Information of the other
Party or its Affiliates or their clients or third parties to whom such other
Party or its Affiliates owe a duty of confidentiality (all of which, for
purposes of this Agreement, shall be deemed Confidential Information of the
other Party).  Each Party shall hold the
other Party’s Confidential Information in strictest confidence using the same
or greater degree of care it uses with its own comparable Confidential
Information (but in no event less than a reasonable degree of care) and shall
not copy, reproduce, sell, assign, license, market, transfer or otherwise
dispose of, give or disclose such 

 

9

 

Confidential Information to third parties or to use such information
for any purposes whatsoever other than as may be necessary for the performance
of this Agreement.

 

14.2.       Confidentiality Agreements.
Each Party shall advise all of its Personnel who have access, or may be
exposed, to the other Party’s Confidential Information of their obligations to
keep such information confidential in accordance with this Article 14.  A Party shall only provide access to the
other Party’s Confidential Information to those Personnel who have a need to
know or to have access to such information in order to provide or receive the
Services.

 

14.3.       Permitted
Disclosures.  If either Party
is requested to disclose all or any part of any Confidential Information under
a discovery request, a subpoena, or inquiry issued by a court of competent
jurisdiction or by a judicial, administrative, regulatory or governmental
agency or legislative body or committee, the Party subject to such request
shall, to the extent practicable and subject to applicable Laws, give prompt
written notice of such request to the other Party and shall give such other
Party the opportunity to seek an appropriate confidentiality agreement,
protective order or modification of any disclosure or otherwise intervene,
prevent, delay or otherwise affect the response to such request, and the Party
subject to such request to disclose shall cooperate with the other Party in
such efforts.  The Party seeking such
confidentiality agreement, protective order or modification of disclosure shall
reimburse the other Party for reasonable legal fees and expenses incurred in
its effort to comply with this provision.

 

14.4.       Exclusions. 
Except as otherwise inherent in the definition of Personal Data, “Confidential
Information” shall not include information if and to the extent Service
Provider can demonstrate such information: 
(i) is or becomes known to the public other than by disclosure by
Service Provider in violation of this Agreement; (ii) was known to Service
Provider previously, without a duty of confidentiality (but, for greater
certainty, specifically excluding from this clause (ii) any Confidential
Information known to Personnel of Boise Paper due to their prior employment by
Boise Cascade); (iii) was independently developed by Service Provider
outside of this Agreement and without reference to or use of any Confidential
Information of Services Recipient; or (iv) was rightfully obtained by
Service Provider from third parties without a duty of confidentiality.

 

14.5.       Data Protection.  In the event Service Provider shall have
access to any Personal Data of Services Recipient, the Service Provider shall
observe, in addition to the confidentiality obligations set forth above, any
further or more restrictive obligations imposed by law on Service Provider or
Services Recipient with respect to safekeeping and limitations on use and disclosure
of such data.

 

14.6.       Remedy.  It is understood and agreed that in the event of a breach of this Article 14, damages may not be an adequate remedy and, notwithstanding the
dispute resolution provisions of Article 23, the non-breaching Party shall be entitled to seek injunctive relief
to restrain any such breach, threatened or actual without posting of bond or
other security or proof of irreparable harm.

 

14.7.       Attorney-Client
Privilege/Work Product.  Service Provider acknowledges that
certain Data, documents, and databases to which Service Provider may have
access or that are prepared by Service Provider for Services Recipient, and all
associated communications relating thereto, may be subject to the
attorney-client privilege and/or work product privilege and that such
information may have been or may be prepared in anticipation of litigation and
that Service Provider is performing the Services in respect of such information
as an agent of Services Recipient.  To
the extent that any of the materials or information provided to and from
Service Provider as part of the Services for, and related communications with,
legal counsel of Services Recipient may be subject to attorney-client privilege
and/or work product privilege, Service Provider shall reasonably cooperate with
Services Recipient to take steps to prevent waiver of any privilege with
respect thereto.

 

10

 

14.8.       No Right or License.  Nothing in this Article 14 shall
be construed as obligating Services Recipient to disclose its Confidential
Information to Service Provider, or as granting to, or conferring on, Service
Provider, expressly or impliedly, any rights or license to the Confidential
Information.

 

15.          Services Recipient’s
Data

 

15.1.       General. 
Notwithstanding any other provision of this Agreement, Service Provider
shall make all of Services Recipient’s Data (complete and unaltered) available
to Services Recipient and its authorized agents (including auditors, counsel,
appraisers, financiers, and other professionals providing services to Services
Recipient) in the form in which Service Provider maintains such Data.  Service Provider shall also provide such Data
to Services Recipient in the form requested by Services Recipient, and Service
Provider may charge Services Recipient for the actual cost (including labor
costs) to provide such media on which Service Provider provides such Data to
Services Recipient, but without duplication of Charges payable pursuant to Section 10
hereof for provision of such Data.

 

15.2.       Safeguarding Services
Recipient’s Data.  Service Provider shall establish and maintain
safeguards against the destruction, loss, misuse or alteration of Services
Recipient’s Data in the possession of Service Provider that are no less
rigorous than those set forth in Article 7 and Article 14
and as otherwise required by applicable Data Protection Laws.  Nothing herein shall limit the right of Services
Recipient to establish separate backup security for such Data and to keep
backup data and data files.

 

15.3.       Ownership and Use of
Services Recipient’s Data.  As between the Parties, Services Recipient’s
Data shall be and remain the property of Services Recipient.  Service Provider shall use such Data solely
to perform Service Provider’s obligations under this Agreement.  Except as expressly permitted in this
Agreement, Service Provider shall not sell, assign, lease, disseminate, or
otherwise dispose of such Data or any part thereof to any other person, and
Service Provider shall not commercially exploit any part of such Data.  Service Provider shall not possess or assert
any property interest in, or any lien or other right against or to, any of
Services Recipient’s Data nor shall Service Provider permit the lien of any of
its secured lenders to attach to any of Services Recipient’s Data.

 

15.4.       Data Retention.

 

15.4.1.    Term.  During the term
of an applicable Statement of Work, Service Provider shall retain Services
Recipient’s Data in its possession for as long as Services Recipient is
required by law, or by Services Recipient’s document retention policies and
practices (including any litigation data destruction holds), to retain such
Data associated with such Statement of Work. 
Services Recipient shall inform Service Provider of any change in
requirements of law and policies and practices, which shall be incorporated by
reference into the applicable Statements of Work.  Nothing in this Article 15 shall
relieve Service Provider of (i) other document retention requirements
expressly provided in this Agreement or the Purchase Agreement or (ii) its
obligation to modify the Services to conform to any requirement of Law.

 

15.4.2.    Post-Term.  Upon expiration or termination of a Statement
of Work, a particular Service, or upon request by Services Recipient at any
time with respect to particular Data not required by Service Provider to
perform Service Provider’s obligations under this Agreement, or at the end of
any specified retention period set forth in such Statement of Work, Service
Provider shall return to Services Recipient the Data associated with such
Statement of Work in the form and manner reasonably requested by Services
Recipient, including all copies of documents, papers or other material that may
contain Services Recipient’s Confidential Information and delete from its
servers any electronic copies of all such information (excluding, for purposes
of this Section 15.4.2, copies of this Agreement) that are in Service Provider’s
possession or control. Service Provider shall thereafter remove such Data from
its applications 

 

11

 

and databases and shall use mutually approved data destruction methods
to remove such Data from its back-up systems. 
Notwithstanding the foregoing, for so long as Services Recipient does
not request the return of its Data, Service Provider shall maintain it in
accordance with Section 8S of the Purchase Agreement, regardless of whether
such Data was created before or after the Execution Date.

 

15.4.3.    Destruction of Data.  Service Provider shall destroy Services
Recipient’s Data held by it when and as required by Services Recipient’s
Document Retention policies from time to time in effect and by the terms of any
Statement of Work providing for records management services.

 

15.4.4.    Record of Destruction of Data. 
Whenever Data of a Services Recipient is required to be destroyed in
accordance with this Agreement, such Services Recipient may require a
certification of such destruction from the Relationship Manager for the other
Party.

 

15.5.          Preservation
of Section 8S.  Notwithstanding anything to the
contrary in this Article 15, each party shall continue to have access to
and rights to utilize the other party’s records created prior to the Execution
Date to the extent provided for in Section 8S of the Purchase Agreement.

 

16.          Audits.

 

Services Recipient shall have the right, at its cost,
no more than two (2) times per year, upon reasonable request and during
Service Provider’s business hours, to conduct financial, internal, operation,
security (physical and electronic) and other technical audits with respect to
the Services, at Services Recipient’s expense. 
Such audits are in addition to the invoice audit rights provided for in Article 10
hereof.  Service Provider shall
reasonably cooperate with such audits by making Personnel, documentation and
other information reasonably available to Services Recipient.  Services Recipient may conduct such audits
with its own employees or with the employees of consultants, including those of
its financial auditor.

 

17.          Reserved.

 

18.          Intellectual Property

 

18.1.          Services
Recipient Licenses to Service Provider

 

18.1.1.    Services Recipient Proprietary
Software and Services Recipient Work Product.  Subject to the other
terms and conditions of this Agreement, Services Recipient hereby grants to
Service Provider a non-exclusive, worldwide, royalty-free, non-transferable
license to use, copy, maintain, modify, enhance and create derivative works of (i) Services
Recipient’s Proprietary Software (and any design, architecture and techniques
of software development or enhancements related thereto) set forth in any
applicable Statement of Work, (ii) the Work Product and Deliverables
created for Services Recipient, and (iii) the methodology and tools
related to any of the foregoing, all solely for the purpose of providing the
Services to Services Recipient pursuant to this Agreement.  Except as otherwise requested or approved by
Services Recipient, Service Provider shall cease all use of Services Recipient’s
Proprietary Software and the Services Recipient Work Product at the end of the
Term, or as otherwise provided for in this Agreement or any Statement of Work.

 

18.1.2.    Services Recipient Work Product.  All Services Recipient Work Product,
Deliverables and other materials created for Services Recipient shall be
considered “works made for hire” and shall be owned by Services Recipient, and
Services Recipient shall be, pursuant to the Copyright Act, the author of such work.  If any such Work Product, Deliverables or
other materials may not be considered a “work made for hire” under applicable
Law, Service Provider hereby irrevocably assigns,

 

12

 

and shall assign, to Services Recipient, without further consideration,
all of Service Provider’s right, title, and interest in and to the copyrights
in such Work Product, Deliverables and other materials and waives any moral
rights therein to the fullest extent permitted under applicable Law.

 

18.1.3.    Further Assurances. 
Service Provider shall assist Services Recipient and its nominee or
assignees, at any time, in the protection of the worldwide right, title, and
interest in and to any Services Recipient Work Product, Deliverables or other
materials created for Services Recipient, including the execution of all formal
assignment documents requested and prepared by Services Recipient or its
nominee or assignee and the execution of all lawful oaths and applications for
registration of copyright in the United States and foreign countries; provided
that Services Recipient shall, without duplication of charges paid pursuant to Section 10,
reimburse Service Provider for its time so spent (excluding nominal efforts)
and any out-of-pocket expenses reasonably incurred by Service Provider in
connection therewith.

 

18.1.4.    Service Provider’s Independent
Contractors.  If required by Services
Recipient, Service Provider shall use reasonable efforts to require each of
Service Provider’s independent contractors that creates any Services Recipient
Work Product, Deliverables or other materials for Services Recipient to execute
written agreements (i) assigning to Services Recipient (or to Service
Provider who shall then in turn assign to Services Recipient), without further
consideration, all of its right, title, and interest in and to such Services
Recipient Work Product, Deliverables and other materials, including all
Intellectual Property Rights assigned in accordance with Section 18.1.2,
and (ii) agreeing to execute any documents and take any other actions
reasonably requested by Services Recipient (or Service Provider, on Services
Recipient’s behalf) to effectuate the purposes of this Section 18.1.4.

 

18.2.       Service Provider Licenses
to Services Recipient.

 

18.2.1.    Service Provider Intellectual
Property Rights.  Except as otherwise
specified in an individual Statement of Work or schedule thereto, by language
expressly modifying the terms of this Section 18.2.1, Service
Provider hereby grants Services Recipient (i) a non-exclusive, perpetual,
worldwide, royalty-free, transferable, irrevocable license, with the right to
sublicense, to make, have made, use, copy, maintain, modify, enhance and create
derivative works of Service Provider’s Software (and any design, architecture
and techniques of software developments or enhancements related thereto),
Service Provider’s Web Site, Documentation, Intellectual Property Rights and
methodology and tools related to any of the foregoing or the Services to the
extent incorporated into or embodied in the Services, Services Recipient’s Work
Product, or Deliverables, or to the extent necessary for Services Recipient to
receive the benefit of the Services, and (ii) any additional rights as set
forth in the applicable Statement of Work. 
Services Recipient shall have the right to grant, at no additional
charge, non-exclusive sublicenses to the rights licensed to Services Recipient
under this Section 18.2.1 to any third party.  Nothing in the foregoing shall
constitute a sublicense of any such rights to Services Recipient where such a
sublicense would breach the terms of any license of any such rights held by
Service Provider.

 

18.2.2.    Scope of License.  The rights licensed under this Section 18.2
(including any sub-license permitted pursuant to Section 18.2.1) may be
exercised by Services Recipient solely to provide to itself, or have provided
to it, Services that are substantially similar to, or derivative of, the
Services.

 

18.2.3.    Software Documentation and
Related Data.  The license granted to
Services Recipient pursuant to this Section 18.2 extends to all
Software, Documentation, tools, related data and other tangible and intangible
items necessary for Services Recipient’s exercise of such rights, subject to
the limitations set forth in Article 14 and Section 18.2.

 

13

 

18.2.4.    Modifications.  Modifications and enhancements to Service
Provider’s Software made by Services Recipient, or by a third party under
Services Recipient’s direction, shall be considered to be owned by Service
Provider  unless such modifications are unique
to Services Recipient’s use of the software so modified, in which case
ownership thereof shall be retained by Services Recipient.  Services Recipient acknowledges
that Service Provider and the successors and assigns of Service Provider shall
have the right to obtain and hold in their own name any Intellectual Property
Rights in and to all such modifications and enhancements.

 

18.3.       Inventions

 

18.3.1.    Ownership of Inventions.  Except as agreed by the Parties in a
Statement of Work, Service Provider and Services Recipient shall own an
undivided equal interest in all right, title and interest in and to all Inventions
created, conceived or developed by Service Provider or its Personnel in the
course of providing the Services, without a duty to account.

 

18.3.2.    Further Assurances.  Where Service Provider assigns patent
ownership to the Services Recipient in a Statement of Work, Service Provider
shall assist Services Recipient and its nominee or assignees, at any time, in
the protection of the worldwide right, title, and interest in and to any
Invention and patent applications and patents issued thereon, including the
execution of all formal assignment documents requested and prepared by Services
Recipient or its nominee or assignee and the execution of all lawful oaths and
applications for letters patent in the United States and foreign countries; provided
that, Services Recipient shall, without duplication of charges paid pursuant to
Section 10, reimburse Service Provider for its time so spent (excluding
nominal efforts) and any out-of-pocket expenses reasonably incurred by Service
Provider in connection therewith.

 

18.4.       Disclosure and Delivery of
All Work Product  Upon completion of
the Services or the termination of a project and subject to the transfer
provisions of Section 18.2.1, Service Provider shall, upon request
of Services Recipient, use commercially reasonable efforts to disclose fully
and to deliver promptly to Services Recipient all of the Work Product,
including related object and source code, as well as any and all copies,
summaries or extracts of such Work Product.

 

18.5.       No Other Licenses This
Agreement does not grant or otherwise give either Party ownership in, or other
proprietary rights or license to use, the other Party’s Intellectual Property
Rights except as expressly provided for herein or in an applicable Statement of
Work.

 

18.6.       Third Party Software To
the extent Service Provider desires to include any third party Software or
materials in any Work Product, Service Provider shall (i) notify Services
Recipient prior to such inclusion, (ii) identify all such third party
Software or other materials in the applicable Statement of Work, and (iii) not
proceed with such inclusion without first obtaining Services Recipient’s
written consent.  In the event Services
Recipient provides written consent approving the inclusion of any such third
party Software in such materials, Service Provider shall obtain any required
consent of third parties necessary for such inclusion.

 

14

 

19.          Disclaimer

 

EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT OR AN APPLICABLE STATEMENT
OF WORK, THERE ARE NO WARRANTIES  OR
REPRESENTATIONS (EXPRESS OR IMPLIED STATUTORY OR OTHERWISE), INCLUDING THE
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,
APPLICABLE TO THE SERVICES TO BE PROVIDED PURSUANT TO THIS AGREEMENT, AND THE
PARTIES HEREBY DISCLAIM ALL SUCH WARRANTIES

 

20.          Insurance  Each Service Provider providing Services
which require its personnel to be on the premises of any of the Services
Recipient’s manufacturing facilities shall obtain and maintain for the term of
this Agreement a policy of commercial general liability insurance with a single
combined liability limit of not less than $5,000,000.  Prior to sending its personnel to any of such
facilities, it shall deliver to Services Recipient a certificate evidencing
such insurance which (i) names Services Recipient and its Affiliates and
their respective employees, officers, directors, managers, members and
shareholders as additional named insureds under the policies evidenced thereby
in respect of any claim covered thereby which arises from the performance by
Service Provider of Services at such location; and (ii) provides that the
coverage it evidences will not be terminated or materially and adversely
modified without at least thirty days’ prior written notice to the Services
Recipient.

 

21.          Indemnities

 

21.1.       Mutual Indemnities.  Each Party, as the Indemnifying Party, shall
indemnify, defend, and hold harmless the other Party, as the Indemnified Party,
in accordance with the procedures described in Section 21.4, from
and against any and all Losses claimed against such other Party by any third
party to the extent arising out of, or relating to, any of the following with
respect to this Agreement (each a “Claim”):

 

(i)            the Indemnifying Party’s (or its Personnel’s) (x) intentional
violation of any applicable Law or (y) breach of any of the
representations, warranties, covenants or agreements of the Indemnifying Party
in this Agreement or any Statement of Work;

 

(ii)           any actual or alleged infringement or misappropriation
of any Intellectual Property Rights owned by a third party by (a) any
Deliverables or Work Product created for any Indemnified Party by the
Indemnifying Party pursuant to this Agreement after the Effective Date; (b) any
Software or other goods owned by the Indemnifying Party and provided to any
Indemnified Party (other than Software or other goods acquired by Boise Paper
from Boise Cascade pursuant to the Purchase Agreement); or (c) any Service
provided by the Indemnifying Party to any Indemnified Party

 

21.2.       Service Provider
Indemnities  Service Provider, as the
Indemnifying Party, shall indemnify, defend, and hold harmless Services
Recipient, as the Indemnified Party, in accordance with the procedures
described in Section 21.4, from and against any and all Losses
claimed against it by any third party arising out of, or relating to, any of
the following with respect to this Agreement (each a “Claim”):

 

(i)            the unauthorized use or disclosure by Service Provider
(or its Personnel) of Services Recipient’s Confidential Information;

 

15

 

(ii)           any bodily injury or damage to tangible property to
the extent such accident, injury or damage results from the gross negligence or
willful misconduct of Service Provider or its contractors, licensees, agents,
employees, subcontractors, or third party suppliers; and

 

(iii)          except as otherwise provided in the Purchase
Agreement, the employment, engagement, or termination of engagement of any
Personnel by Service Provider, or claim by or on behalf of any such Personnel
occurring after the Execution Date.

 

21.3  Limitations.  A Party’s indemnification obligations under
this Agreement shall not extend to any Claims to the extent resulting from, or
relating to:  (i) the combination,
operation or use of materials provided by the Indemnifying Party with materials
or resources not provided by the Indemnifying Party unless authorized by the
Indemnifying Party in the applicable Statement of Work or intended or
anticipated in the applicable specifications; (ii) any Services,
Deliverables, or Work Product provided by the Indemnifying Party to any
Indemnified Party to the extent that such Services, Deliverables or Work
Product conform to specifications provided by any Indemnified Party; (iii) unauthorized
changes made by the Indemnified Party to the Indemnifying Party’s Software,
Work Product, or other materials provided to any Indemnified Party by the
Indemnifying Party pursuant to this Agreement; or (iv) any third party
products, except to the extent that such infringement or misappropriation
arises from the Indemnifying Party’s failure to obtain the necessary licenses
or consents with respect to a third party product or to abide by the
limitations of the applicable third party licenses for a third party product.

 

21.3.1     Third Party Indemnities.  Each Party shall use commercially reasonable
efforts to extend the benefit to the other Party of any and all indemnities
that are provided to such Party through any Software or other Intellectual
Property Rights licensed by such Party from any third party.

 

21.3.2     Remedies for Infringement.  Except in connection with any Intellectual
Property Rights (or embodiments thereof) acquired by Boise Paper or any of its
Affiliates from Boise Cascade under the Purchase Agreement (whether directly,
by contribution under the Contribution Agreement provided for under the
Purchase Agreement or by acquisition of any equity interest under the Purchase
Agreement or the Contribution Agreement), if a Service, Deliverable, Software,
hardware, Work Product or other document or material provided by Service
Provider to Services Recipient infringes or otherwise conflicts with the
Intellectual Property Rights of a third party, Services Recipient shall have
the right to require the providing Party to: 
(i) replace or modify such infringing items to make their use
non-infringing while providing substantially the same functionality; or (ii) procure
the right for Services Recipient to continue to use or receive such infringing
items.  If Service Provider is unable to
do the foregoing within a reasonable
period of becoming aware of such infringement, Services Recipient may
terminate the applicable Services upon 30 days written notice.

 

21.4        General Provisions and
Procedures.  The
indemnification provisions set forth in this Agreement are subject to the
following general provisions and procedures:

 

21.4.1     Notice.  The Party
entitled to indemnification under this Agreement shall provide the other Party
with an Indemnification Notice regarding the applicable Claim promptly but in
any event within ten (10) business days after the Party requesting
indemnification receives a summons, or within twenty (20) business days after
the Party requesting indemnification receives any other written communication; provided
that the failure of the requesting Party to undertake such actions shall not
relieve Service Provider of any obligation it may have to indemnify, except and
only to the extent that the requesting Party’s ability to fulfill such
obligation has been actually and materially prejudiced thereby.

 

16

 

21.4.2     Participation.  The
Party requesting indemnification may participate and take the lead in the
defense of a Claim with its own counsel paid for by such Party; provided,
however, that if both Parties are named parties in any action relating
to such Claim and counsel cannot represent both Parties due to any present or
potential conflict in representing the interests of both Parties, the Party to
be indemnified shall retain other counsel at the expense of Service Provider.

 

21.4.3     Cooperation and Control. 
The Parties shall
cooperate fully (at Service Provider’s expense) with counsel selected by
Service Provider in the defense of such Claim. Service Provider shall have the
right in its discretion to control the defense and settlement of such Claim and
the Indemnified Party shall not settle or compromise such Claim without the
prior written consent of Service Provider.

 

21.4.4     Limitations. 
Without limiting the foregoing, Service Provider may not, without the
Indemnified Party’s prior written consent, settle, compromise or consent to the
entry of any judgment in any such commenced or threatened claim or action,
unless such settlement, compromise or consent: (i) includes an
unconditional release of the applicable Indemnified Parties from all liability
arising out of such commenced or threatened claim or action; and (ii) is
solely monetary in nature and does not include remedial measures, a statement
as to, or an admission of fault, culpability or failure to act by or on behalf
of any  Indemnified Party, or otherwise
adversely affect any Indemnified Party.

 

21.4.5     Third Party Losses. 
Service Provider and Services Recipient shall each use reasonable
efforts to mitigate liability, damages, and other losses suffered in connection
with this Agreement.

 

21.5        Subrogation An
Indemnifying Party will be subrogated to the rights and defenses of the
Indemnified Party to the extent of, and with respect to, the Indemnifying Party’s
obligation to indemnify the Indemnified Party under this Article 21.

 

21.6        No
Limitation of Other Remedies

 

The
provisions of this Article 21 are not intended to limit a Party’s rights
to seek recovery of damages or pursue other remedies against the other party
for breach of its obligations hereunder. 
Any such claim shall be determined on the basis of the balance of this
Agreement and applicable law.

 

22.          Limitations of Liability

 

22.1.       Limitation
on Direct Damages.  The liability of each Party, its Affiliates,
and its and their respective shareholders, directors, officers, employees,
agents, members, contractors and licensors, for actual damages (whether a claim
therefor is based on warranty, contract, tort (including negligence or strict
liability), statute, or otherwise) connected with or arising or resulting from
any performance or nonperformance of Services hereunder shall be limited in the
aggregate for all such claims to the Cap. 
The term “Cap” shall mean a
sum equal to 125% of the total amount paid hereunder by a Services Recipient to
the Service Provider pursuant to this Agreement during the 12 months preceding
the application of the Cap, or if 12 months has not yet expired, the amount
expected to be paid during the first 12 months of this Agreement.  The Cap shall be applied on an aggregate
basis to all claims asserted during any 12 month period.  Each Party agrees that the damage limitations
in this Section 22 shall not be deemed or alleged to have caused
this Agreement to fail its essential purpose or constitute a fundamental
breach.

 

17

 

22.2.       Exclusion of Consequential
Damages and Certain Other Damages. 
NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT THAT MAY BE TO THE
CONTRARY (EXCEPT FOR SECTION 22.3), OR AS OTHERWISE REQUIRED BY
LAW, NEITHER PARTY, NOR ITS AFFILIATES OR ITS OR THEIR RESPECTIVE EQUITY
HOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, MEMBERS, CONTRACTORS, OR
LICENSORS, SHALL BE LIABLE TO THE OTHER PARTY, ITS AFFILIATES, OR ITS OR THEIR
EQUITY HOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, MEMBERS, CONTRACTORS,
OR LICENSORS, FOR CLAIMS FOR INCIDENTAL, INDIRECT, PUNITIVE, EXEMPLARY,
CONSEQUENTIAL, OR SPECIAL DAMAGES, INCLUDING DAMAGES FOR LOSS OF PROFITS, LOSS
OF USE OR REVENUE, LOSS OF SAVINGS, OR LOSSES BY REASON OF COST OF CAPITAL,
CONNECTED WITH, OR ARISING OR RESULTING FROM, ANY PERFORMANCE OR LACK OF
PERFORMANCE UNDER THIS AGREEMENT, EVEN IF SUCH DAMAGES WERE FORESEEABLE OR A
PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND REGARDLESS OF WHETHER
A CLAIM IS BASED ON CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE OR STRICT
LIABILITY), VIOLATION OF ANY APPLICABLE DECEPTIVE TRADE PRACTICES ACT, OR ANY
OTHER LEGAL OR EQUITABLE PRINCIPLE.

 

22.3.       Exclusions.  The limitation of liability set forth in Article 22
and the exclusion of certain damages set forth in Section 22.2 are
not applicable to:  (i) amounts expended
by Services Recipient to find a replacement from a third party for the
applicable Services or Deliverables in the event of a failure by Service
Provider to provide the same, where such amounts are recoverable in accordance
with the terms of this Agreement; (ii) the failure of
Services Recipient to make payments due under this Agreement (including late
fees but subject to the exclusion of certain damages set forth in Section 22.2);
(iii) damages resulting from Service Provider’s refusal to provide
Termination Assistance Services; (iv) any liability (including any related
indemnifications obligations) caused by or arising from (a) criminal or
tortious willful misconduct or criminal or tortious fraud of a Party or such
Party’s Personnel (but without limiting either Party’s right to recover damages
that may not be excluded by contract as a matter of law), (b) any bodily
injury or damage to tangible property to the extent such injury or damage
results from the negligence or willful misconduct of a Party or its
contractors, licensees, agents, employees, subcontractors, or third party
suppliers, unless due to the negligence or willful misconduct of the other
Party, its contractors, licensees, agents, employees, subcontractors, or third
party suppliers, (c) either Party’s unauthorized use or disclosure of the
other Party’s Confidential Information (but which liability shall be capped in
the aggregate, with all other claims subject to a cap under this Article 22,
to an amount equal to one and one-half (1.5) times the Cap), or (d) breach
of either Party’s Intellectual Property Rights; or (v) indemnification
obligations set forth in Article 22.

 

22.4.       Affiliate
Damages  Service Provider
hereby acknowledges and agrees that direct damages sustained hereunder by any
Affiliate of Services Recipient shall not be deemed consequential damages
vis-à-vis Services Recipient strictly because the Services Recipient’s
Affiliate’s damages are claimed through Services Recipient.

 

22.5.       Force
Majeure.  Neither Party shall be liable for
any failure or delay in the performance of its obligations under this Agreement
to the extent such failure or delay is caused by a Force Majeure Event.  Upon the occurrence of a Force Majeure Event,
the non-performing Party shall be excused from any further performance or
observance of the affected obligation(s) for as long as such circumstances
prevail, and such Party continues to attempt to recommence performance or
observance to the greatest extent possible without delay. Service Provider
shall allocate its remaining resources to Services Recipient and to its own
internal business units and operations in an equitable manner consistent with
the Parties’ allocation of costs and the needs of the Parties at the given
time.

 

18

 

23.          Dispute Resolution

 

23.1.       Dispute
Resolution Process.  Any Dispute between the Parties relating to this Agreement
shall be resolved as provided in this Article 23.

 

23.2.       Responsible
Managers.  All Disputes under a Statement of Work shall first be
referred to the Responsible Managers prior to escalation to the Relationship
Managers.  Disputes that are not resolved
by the Responsible Managers after good faith attempts to resolve such Disputes
shall be referred to the Relationship Managers.

 

23.3.       Relationship
Managers.  In the event that a Dispute is not resolved by the Relationship
Managers, the Dispute shall be escalated to the respective Chief Executive
Officers of the Parties.

 

23.4.       Dispute
Resolution and Arbitration.  In the event that a Dispute arises between the Parties (or
any of their respective Affiliates) concerning or arising out of the
performance or interpretation of this Agreement that is not resolved by the
foregoing escalation process, either Party may invoke the Dispute Resolution
Process set forth in Appendix 23.4 by giving written notice to the other
Party specifying the issue in dispute and invoking the Dispute Resolution
Process.  The final order of the
arbitrator issued in any Dispute Resolution Process may be enforced against the
Parties in any court of competent jurisdiction.

 

23.5.       Choice of Law.  THE INTERNAL LAWS OF THE STATE OF IDAHO
EXCLUDING ITS CONFLICTS OF LAW PRINCIPLES SHALL GOVERN THIS AGREEMENT.

 

23.6.       Continued
Performance.  Each Party shall continue to perform its obligations under
this Agreement during any Dispute Resolution Process unless and until such
obligations are terminated by the expiration or termination of the applicable
Statement of Work or this Agreement, provided Services Recipient is in
compliance with Section 11.3. 
The covenant of Service Provider to provide the Services is independent
of Services Recipient’s covenants under this Agreement, and Service Provider
agrees that it shall not discontinue or threaten to discontinue provision of
the Services as a means to force resolution of any Dispute with respect to this
Agreement.

 

23.7.       Resolution
of Disputes Relating to Charges.  For greater
certainty it is expressly acknowledged and agreed by the parties that disputes
concerning Charges shall be resolved in accordance with the provisions of this Article 23.  If any such dispute is referred to
arbitration, the arbitrator in such proceeding shall, notwithstanding anything
to the contrary in Appendix 23.4, be a representative of a firm of certified
public accounts of national reputation agreed upon by the parties and if the
Parties are unable to agree upon such arbitrator, agreed upon by the financial
auditors of the Parties.

 

24.          Material Breach; Right of Cover  In the event that Service Provider materially
breaches any of its obligations under this Agreement, Services Recipient shall
have the right to obtain substitute goods or Services from one or more third
parties, or to obtain substitute goods or Services through internal Services
Recipient resources, and Service Provider shall reimburse Services Recipient
for all reasonable costs and expenses beyond what Services Recipient would have
paid Service Provider to provide the applicable goods and Services; provided
that, in order to obtain such reimbursement, Services Recipient shall have
notified Service Provider of any such breaches and Service Provider shall not
have cured such breach within thirty
(30) days or as otherwise set forth in the applicable Statement of Work.

 

19

 

25.          Termination

 

25.1.       Services
Recipient’s Termination for Cause

 

25.1.1.    Statement of Work.  If
Service Provider materially breaches any Statement of Work, and (i) such
breach is incapable of cure, or (ii) with respect to such breaches capable
of cure, Service Provider does not cure such breach within thirty (30) days
after written notice of material breach, Services Recipient may terminate such
Statement of Work under which it receives Services upon written notice to
Service Provider.

 

25.1.2.    Agreement.  If Service
Provider materially breaches this Agreement and (i) such breach is
incapable of cure, or (ii) with respect to such breaches capable of cure,
Service Provider does not cure such breach within thirty (30) days after
written notice of material breach, Services Recipient may terminate this
Agreement upon written notice to the Service Provider.  Termination of this Agreement under this Section 25.1.2
shall result in the termination of all Statements of Work then in effect under
which Services Recipient receives Services.

 

25.1.3.    Partial Termination.  If
the Services are terminated in part, Service Provider shall continue to provide
the remaining Services pursuant to the terms of this Agreement.

 

25.2.       Service
Provider’s Termination Rights.

 

25.2.1.    Termination for Default on Undisputed Charges.  If Services Recipient has not paid undisputed
invoiced amounts due on three (3) consecutive monthly invoices, or has
been past due on undisputed invoiced amounts for a total of one hundred (100)
days in any rolling twelve (12) month period, then Service Provider may notify
Services recipient of its intent to terminate this Agreement and any Statement
of Work pursuant to this provision.  If
the Services Recipient is disputing in good faith a portion of the charges on
any invoice and has paid the undisputed amount, such remaining unpaid balance
shall not be treated as delinquent for purposes of the foregoing sentence.
Following such notice, Services Recipient shall have the opportunity to cure
its default by paying all undisputed amounts due when fifteen (15) days of such
notice, and by pre-paying the estimated amount of the following month’s Charges
for six (6) consecutive months. 
Service Provider may terminate this Agreement and any Statement of Work
for cause upon notice if, and only if, Services Recipient fails to cure such
default.

 

25.2.2.    No Other Termination. 
Except as expressly set forth in this Section 25.2, Services
Recipient’s failure to perform any of its obligations under this Agreement with
respect to the Services that it receives (but not with respect to the Services
that it provides) shall not be grounds for termination of this Agreement or any
Statement of Work thereunder by Service Provider.

 

25.3.       Termination
for Convenience.

 

25.3.1.    Termination Rights.  Services
Recipient may terminate this Agreement or any Statement of Work, in whole or in
part, with respect to the Services that it receives (but not with respect to
the Services it provides), for convenience and without cause, upon thirty (30)
days’ written notice to Service Provider.

 

25.3.2.    Absorption Fee.  In the
event that Boise Cascade terminates this Agreement and all Statements of Work
with respect to the Services that it receives pursuant to this Section 25.3
during the Initial Term, Boise Cascade shall be required to pay to Boise Paper
the Absorption Fee.  In the event that
Boise Cascade terminates any Statement of Work pursuant to this Section 25.3
during the Initial Term, Boise Cascade shall pay the percentage (as set forth
in such Statement of Work) of the applicable Absorption Fee, and any further
Absorption Fee amounts owed by Boise Cascade upon subsequent termination of
this Agreement as a whole shall be reduced by such partial Absorption Fee
amounts already paid; provided that if such full termination occurs
after a reduction in the Absorption Fee occurring due to the passage of time,
as set out in the definition of such term, the offset provided by this 

 

20

 

sentence shall be proportionately adjusted to reflect such overall
reduction in the size of the Absorption Fee. 
Boise Cascade shall not be required to pay an Absorption Fee in the
event that it terminates this Agreement or any Statement of Work for cause
pursuant to Section 25.1.1 or Section 25.1.2 or in the event that it
terminates this Agreement or any Statement of Work pursuant to this Section 25.3
after the Initial Term.  Boise Paper may
terminate any of the Services that it receives (but not any of the Services
that it provides) under this Agreement, including any Statement of Work, for
convenience during the Initial Term or thereafter without penalty or payment of
an Absorption Fee.

 

25.3.3.    Severance Costs.  In the
event that Services Recipient terminates this Agreement or any Statement of
Work, or any part of the foregoing, for convenience pursuant to this Section 25.3,
Services Recipient shall pay to Service Provider the severance costs incurred
by Service Provider for terminating any employees of Service Provider who were
employed for the purpose of fulfilling Service Provider’s obligation to provide
Services under this Agreement as a result of such termination of this
Agreement, any Statement of Work, or any part of the foregoing by Services
Recipient.  Such payment of severance
costs shall not be required in the event that Service Provider elects to reduce
its staff due to a reduction, but not termination of, Services Recipient’s
requirements for the level of any particular Service required by Services
Recipient.

 

25.4.       Termination for Force
Majeure Event  Notwithstanding Section 22.5,
Services Recipient may terminate any affected Statement of Work if Service
Provider is unable to perform the Services with respect to such Statement of
Work in any material respect (i) for more than ten (10) consecutive
days, or (ii) for more than thirty (30) days in any calendar quarter, as a
result of a Force Majeure Event.  In the event Services Recipient so elects to
terminate the affected Services as allowed under this Section 25.4
(which such election will be made within thirty (30) days of the occurrence of
the event described in (i) or (ii) above), then upon at least thirty
(30) days’ prior written notice, such affected Services shall be terminated,
and Services Recipient shall not be required to pay any termination
charges (including the Absorption Fee or severance costs) in connection with a
termination under this Section 25.4.

 

25.5.       Obligations
upon Termination or Expiration.  Upon the expiration or termination of this Agreement or any
Statement of Work, in whole or in part, in addition to any other obligations
set forth in this Agreement or any Statement of Work:

 

(i)            The Parties shall pay each other for all
Services performed prior to the effective date of such expiration or
termination, in accordance with Articles 10 and 11 (including any
true up provisions contained therein), and, if applicable, pay each other all
undisputed amounts due as set forth in the termination provisions of any
applicable Statement of Work;

 

(ii)           Upon request of Services Recipient,
Service Provider shall return, or at Services Recipient’s option destroy, all
copies of Services Recipient’s Confidential Information that are in Service
Provider’s possession or control, in whatever medium maintained;

 

(iii)          Services
Recipient may require the assignment, at Services Recipient’s expense (or at
Service Provider’s expense if Services Recipient has terminated for cause
pursuant to Sections 25.1 or 25.2  hereof)
of any licenses or agreements used by Service Provider exclusively for the
purpose of providing the Services to Services Recipient, to the extent that
Service Provider is able to obtain the third-party consents, if any, required
for such assignment without payment of any fee or charge, except for fees or
charges which are borne by Services Recipient;

 

(iv)          Services Recipient may require the split,
at Services Recipient’s expense (or at Service Provider’s expense if Services
Recipient has terminated for cause pursuant to Sections 25.1 or 25.2

 

21

 

hereof) of
licenses or agreements used, in part, to provide the Services to Services
Recipient, to the extent that Service Provider is able to obtain the
third-party consents, if any, required for such assignment;

 

(v)           Services Recipient shall have the right
to purchase Service Provider’s tangible assets that are used exclusively to
provide the Services to Services Recipient, at Service Provider’s then-current
net book value for such assets;

 

(vi)          Service Provider shall assign
Intellectual Property Rights in Work Product or Deliverables that have been
developed for Services Recipient as part of the Services, but that have not yet
been delivered to Services Recipient; and

 

(vii)         Service
Provider shall deliver to Services Recipient copies of Documentation, notes,
drawings, Software (including source code), and other material used to provide
the Services and which Service Provider has the right to copy and deliver to
others.

 

25.6.       Termination
Provisions/Expiration Assistance.  The Parties may set forth additional termination provisions
in each applicable Statement of Work as appropriate (e.g., obligations
of the Parties with respect to different termination events, data requirements,
scope and duration of post-termination licenses, applicable notice periods,
payments and refunds).  Service Provider
shall have an absolute and unconditional obligation to provide Services
Recipient, or Services Recipient’s designees at Services Recipient’s request
(including one or more third parties), Termination Assistance Services and such
other cooperation as reasonably requested by Services Recipient in connection
with such expiration or termination, for a minimum period as set forth in the
applicable Statement of Work (unless Services Recipient determines in its sole
discretion that less time is necessary) and at such rates that are agreed upon
by the Parties (not to exceed Service Provider’s Fully Allocated Direct Costs
for such Services) and such Termination Assistance services shall extend beyond
the expiration or termination of this Agreement or the relevant Statement of
Work for the term of Termination Assistance Services provided for in the
relevant Statement of Work.  However, in
the event Service Provider terminates this Agreement in accordance with Section 25.2
of this Agreement, Services Recipient shall pay Service Provider in advance for
all such Termination Assistance Services. 
The Termination Assistance Services may be detailed in each applicable
Statement of Work and shall include, at a minimum, any knowledge transfer,
training of Services Recipient’s or its designee’s personnel, transfer of Data
and other materials related to the Services and any other information and
assistance reasonably necessary or desirable or reasonably requested by
Services Recipient to ensure an orderly and smooth transition of the Services
to Services Recipient’s internal Services environment or provider or a
successor Service Provider and continued provision of the relevant Services
during such transition.  If the Statement
of Work is silent with respect to Termination Assistance Services, it shall be
deemed to include the foregoing Minimum Services.

 

In the event that any Affiliate of a Services
Recipient, or any portion of the business or operations thereof, becomes a
Former Affiliate, Service Provider shall, at Services Recipient’s option,
provide such Former Affiliate (i) the Termination Assistance Services set
forth in each applicable Statement of Work with respect to the Services such
Former Affiliate was receiving from Service Provider prior to the Change in Control
resulting in such Affiliate becoming a Former Affiliate, and (ii) continued
Services until such Former Affiliate, in the reasonable opinion of Services
Recipient, is able to procure Services similar to the Services from a third
party or provide such Services itself, but not in excess of the lesser of 12
months or the then remaining term of this Agreement.

 

25.7        Equitable Remedies.  Service Provider acknowledges that, in the
event Service Provider breaches, or attempts or threatens to breach, its obligation
to provide Services Recipient assistance in accordance with Section 25.6,
then notwithstanding the Dispute resolution procedures set forth in Article 23,

 

22

 

Services Recipient shall be entitled to seek an injunction, order of
specific performance, or other equitable relief in any court of competent
jurisdiction.

 

26.          General

 

26.1.       Entire Agreement  This Agreement, the Statements of Work, the
Purchase Agreement, and any other agreements, the forms of which are attached
hereto or to the Purchase Agreement as and when executed by the Parties
constitute the entire agreement between the Parties with respect to this
subject matter and shall not be modified or rescinded except by a writing
signed by the Parties.  The Appendices
and all Statements of Work are incorporated herein by this reference.  The provisions of this Agreement, the
Purchase Agreement, and any other agreements the forms of which are attached
hereto or to the Purchase Agreement and when executed by the Parties supersede
all contemporaneous oral agreements and all prior oral and written quotations,
communications, agreements, understandings of the Parties, and written or oral
representations of either Party with respect to the subject matter of this
Agreement, including any letter of intent or memorandum of understanding
executed by the Parties with respect to the Services and Schedule C to the
Purchase Agreement.  Notwithstanding the
foregoing where any provision in this agreement refers to or sets a standard by
reference to any previous course of performance in effect within Boise Cascade
internally prior to the Execution Date, either Party may introduce evidence of
such course of performance in connection with the resolution of any dispute arising
hereunder.

 

26.2.       Assignment.  This Agreement shall be binding on the
Parties and their respective successors and permitted assigns.  Neither Party may assign or transfer this
Agreement or any Statement of Work (whether by merger, operation of law, change
of control or otherwise) without the prior written consent of the other Party,
such consent not to be unreasonably withheld or delayed.  Notwithstanding the foregoing, either Party
may assign or transfer (whether by merger, operation of law, change of control
or otherwise) this Agreement, or any Statement of Work, in whole or in part:

 

(i) in the case of Boise Cascade, the sale or
transfer of all or substantially all of the business to which this Agreement,
such Statement of Work or portion thereof relates, and no Absorption Fee shall
be payable in respect of any such Transaction;

 

(ii)  in the case of Boise Cascade, upon the sale
of either of its two major operating divisions it may make a partial assignment
of this Agreement to the purchaser of such division which shall be implemented
by the execution by such purchaser and Boise Paper of a new agreement providing
for the provision of Services hereunder on substantially the same terms and
conditions as they are provided to Boise Cascade hereunder for the then
remaining term of this Agreement and, in such case this agreement shall remain
in effect between Boise Cascade and Boise Paper with respect to Boise Cascade’s
remaining operations and no Absorption Fee shall be payable in respect of such
transaction;

 

(iii) in the case of Boise Paper, upon the sale
or transfer of all or substantially all of the Headquarters Operations, as
defined in the Purchase Agreement, and provided further that in the event of a
transfer by Boise Paper of the Headquarters Operation it shall transfer this
Agreement to the purchaser thereof and require such Purchaser to assume this
Agreement and complete the performance hereof; and

 

(iv) in the case of any Party, such Party may,
without the consent of any other Party hereto, assign in whole or in part its
rights under this Agreement for collateral security purposes to such assigning
Party’s financing sources.

 

23

 

Any assignment consented to by a party hereto shall be
effective only upon the written assumption by the assignee of all of the
assigning party’s obligations and duties hereunder.  Any attempted assignment in contravention of
the above provision shall be void and ineffective.

 

26.3.       Notices.  Any notice required or permitted to be given
under this Agreement shall be given in writing and shall be effective from the
date sent by registered or certified mail, by hand, facsimile or overnight
courier to the addresses set forth below.

 

	
  To
  Boise Paper:

  	
   

  	
  Boise
  Paper Holdings, L.L.C.

  
	
   

  	
   

  	
  1111 West Jefferson
  Street, Suite 200

  
	
   

  	
   

  	
  Boise, Idaho 83702-5388

  
	
   

  	
   

  	
  Attn: Chief Financial
  Officer

  
	
   

  	
   

  	
  Phone: (208) 384-7023

  
	
   

  	
   

  	
  FAX:: (208) 384-7945

  
	
   

  	
   

  	
  e-mail: legal@boiseinc.com

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
  Boise
  Paper Holdings, L.L.C.

  
	
   

  	
   

  	
  1111 West Jefferson Street,
  Suite 200

  
	
   

  	
   

  	
  Boise, Idaho 83702-5388

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Phone: (208) 384-7732

  
	
   

  	
   

  	
  FAX:: (208) 384-7945

  
	
   

  	
   

  	
  e-mail: legal@boiseinc.com

  
	
   

  	
   

  	
   

  
	
  To
  Boise Cascade:

  	
   

  	
  Boise
  Cascade, L.L.C.

  
	
   

  	
   

  	
  1111 West Jefferson
  Street, Suite 300

  
	
   

  	
   

  	
  Boise, Idaho 83702-5388

  
	
   

  	
   

  	
  Attn: Chief Financial
  Officer

  
	
   

  	
   

  	
  Phone: (208) 384-4998

  
	
   

  	
   

  	
  FAX:: (208) 384-6566

  
	
   

  	
   

  	
  e-mail: legal@bc.com

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
  Boise
  Cascade, L.L.C.

  
	
   

  	
   

  	
  1111 West Jefferson
  Street, Suite 300

  
	
   

  	
   

  	
  Boise, Idaho 83702-5388

  
	
   

  	
   

  	
  Attn: General Counsel

  
	
   

  	
   

  	
  Phone: (208) 384-4918

  
	
   

  	
   

  	
  FAX:: (208) 384-6566

  
	
   

  	
   

  	
  e-mail:
  legal@bc.com

  

 

Either Party may change the address set forth in this Section 26.3
at any time by giving prior written notice to the other Party as provided
above.

 

26.4.       Relationship of the Parties  Service Provider shall perform the Services
as an independent contractor.  Nothing in
this Agreement or in the performance of the Services by Service Provider shall
be construed to create: (i) a partnership, joint venture or other joint
business arrangement between the Parties; (ii) any fiduciary duty owed by
one Party to the other Party or any of its Affiliates; (iii) a
relationship of employer and employee between the Parties; or (iv) any
basis for any employee of a Party to claim that he or she is an employee of the
other Party.  The Parties are not joint
employers, a single employer, associated employers or related employers for any
purpose under this Agreement.

 

24

 

Neither Party shall have the authority to commit the other Party
contractually or otherwise to any obligations to third parties.

 

26.5.       Severability  If any provision of this Agreement is
determined to be invalid or unenforceable, the remaining provisions of this
Agreement shall not be affected thereby and shall be binding upon the Parties
and shall be enforceable and such provision shall be reformed to the extent
necessary to render such provision valid and enforceable and to reflect the
intent of the Parties to the maximum extent possible under applicable Law.

 

26.6.       Waiver of Default  The failure by either Party to insist upon
strict performance of any of the provisions contained in this Agreement shall
not constitute a waiver of its rights, at law or in equity, or a waiver of any
other provisions or subsequent default by the other Party in the performance or
compliance with any of the terms and conditions set forth in this Agreement.

 

26.7.       Remedies Cumulative  Unless expressly stated otherwise in this
Agreement, all remedies provided for in this Agreement will be cumulative and
in addition to, and not in lieu of, any other remedies available to either
Party at law, in equity or otherwise.

 

26.8.       Survival of License in
Bankruptcy  All licenses granted to
Services Recipient under or pursuant to this Agreement are, and shall otherwise
be deemed to be, for purposes of Paragraph 365(n) of the U.S.
Bankruptcy Code, licenses of rights to “intellectual property” as defined under
Paragraph 101(35A) of the U.S. Bankruptcy Code. 
The Parties agree that the other Party, as a licensee of such rights
under this Agreement, shall retain and may fully exercise all of its rights and
elections under the U.S. Bankruptcy Code, or similar laws of other
jurisdictions.

 

26.9.       Survival of Obligations  The obligations of the Parties under this
Agreement that the Parties have expressly agreed shall survive expiration or
termination of this Agreement or that, by their nature, would continue beyond
the expiration or termination of this Agreement, shall survive the expiration
or termination of this Agreement for any reason.  Without limiting the generality of the
foregoing, the Parties intend that the following Articles and Sections survive
expiration or termination of this Agreement: Section 13.3; Article 14,
Article 15; Section 18.1.2, Section 18.1.3,
Section 18.2.1, Section 18.2.4, Section 18.3,
and Section 18.4; Article 21 and Article 22;
Section 23.5, and Article 25 and this Article 26  Upon the expiration or termination of this
Agreement, any monies, penalties or other charges due and owing either Party
shall be paid by the other Party within thirty (30) days of the effective date
of such expiration or termination.

 

26.10.     Third Party Beneficiaries  Except as set forth in this Section 26.10,
and except with respect to the Indemnified Parties to the extent provided in Article 21
and Article 22, this Agreement shall not be deemed to create any
obligations of a Party to any such third party or create any rights in third
parties, including employees, suppliers, or customers of a Party.  No provision of this Agreement shall create
any third party beneficiary rights in any employee or former employee
(including any beneficiary or dependent thereof) of a Party in respect of
rights to continued employment of benefits of any kind.  The Parties hereby specifically acknowledge
and agree that it is their intention, (i) that all of the terms and
conditions of this Agreement or any applicable Statement of Work be made
available to Affiliates of Services Recipient, and (ii) that Affiliates of
Services Recipient be entitled to enforce this Agreement as incorporated in any
applicable Statement of Work executed by such Affiliates.  Services Recipient shall be responsible for
the obligations of any Affiliate of Services Recipient receiving Services under
this Agreement.  Service Provider shall
be responsible for the obligations of any Affiliate of Service Provider
providing Services under this Agreement.

 

25

 

26.11.     Further Assurances  Each of the Parties agrees that from time to
time, at the request of the other Party and without further consideration, it
shall execute and deliver such other documents and take such other actions as
the other Party may reasonably request to consummate more effectively the transactions
contemplated by this Agreement.

 

26.12.     Counterparts  This Agreement may be executed in several
counterparts (including by facsimile, “.pdf” or other electronic transmission),
all of which taken together shall constitute one single agreement between the
Parties.

 

26.13.     Execution of Agreement   The Parties acknowledge and agree that this
Agreement has been accepted, made and entered into by the Parties in the State
of Idaho and shall be construed in accordance with the laws of the State of
Idaho applicable to contracts executed, delivered and performed in the State of
Idaho.  Whenever used in this Agreement, “including”
means “including, without limitation.”

 

26.14.     Certifications  Services Recipient may require that Service
Provider provide to it and to any relevant third party such certifications and
other evidence as third parties may require that any particular Service was
provided in accordance with standards applicable under relevant requirements of
GAAP, the Financial Accounting Standards Board, the Securities and Exchange
Commission, or other governmental or non-governmental regulatory body.

 

26.15.     Savings Clause  If Service Provider’s failure to perform an
obligation under this Agreement is due to Services Recipient’s wrongful action
or failure to fulfill any obligation under this Agreement when required,
Service Provider will be excused from responsibility only to the extent that
such failure prevented Service Provider’s timely performance of its obligation;
provided that, Service Provider shall: 
(i) notify Services Recipient of such failure and Service Provider’s
inability to perform its obligation as a result of such wrongful action or
failure promptly after becoming aware thereof; and (ii) use commercially
reasonable efforts to perform notwithstanding Services Recipient’s wrongful
action or its failure to perform.

 

*  * 
*  *  *

 

26

 

IN WITNESS WHEREOF, each of the Parties hereto, by its
duly authorized representative, has caused this Agreement to be executed as of
the Execution Date.

 

	
  Boise
  Cascade, L.L.C.

  	
   

  	
  Boise
  Paper Holdings, L.L.C.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ David G. Gadda

  	
   

  	
  By:

  	
  /s/ Karen E. Gowland

  	
   

  
	
   

  	
   

  	
   

  
	
  Printed Name:

  	
  David G. Gadda

  	
   

  	
  Printed Name:

  	
  Karen E. Gowland

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
											

 

27

 

Appendix 1

 

Defined Terms

 

The term “Absorption
Fee” shall mean a fee payable by Boise Cascade to Boise
Paper in accordance with Section 25.3 of the Agreement in
the amount as follows: (i) five million dollars ($5,000,000) if
termination is effective during the first Contract Year of the Initial Term, (ii) three
million dollars ($3,000,000) if termination is effective during the second
Contract Year of the Initial Term, and (iii) one million dollars
($1,000,000) if termination is effective during the third Contract Year of the
Initial Term.

 

The term “Affiliate”
shall mean, with respect to an entity, any entity that Controls, is Controlled
by, or is under common Control with, that entity. For greater certainty from
and after the Execution Date Boise Paper shall not be Affiliate of Boise
Cascade.

 

The term “Agreement”
shall mean this Outsourcing Services Agreement, together with all Appendices,
Statements of Work and any other attachments to this Agreement, and any
modification or amendment to this Agreement or any Statement of Work made in
accordance with the terms of this Agreement.

 

The term “Attachment”
shall mean the Appendices, Statements of Work and all attachments thereto.

 

The term “Business
Continuity Plan” shall mean Service Provider’s business continuity
and disaster recovery plan for its information technology operations as
described in Section 9.

 

The term “Cap”
shall have the meaning given it in Section 22.1.

 

The term “Change in
Control” shall mean (i) the acquisition by any person or
related group of persons of direct or indirect ownership of more than fifty
percent (50%) of the voting securities of an Affiliate of any Party, in a
single transaction or series of related transactions, (ii) the sale or
divestiture of all or substantially all of the assets of an Affiliate of any
Party to any entity, or (iii) the merger of an Affiliate of any Party with
or into another entity to form a new entity.

 

The term “Charges” shall mean the
amounts payable by Services Recipient for the provision of the Services as
provided in Article 10 hereof and set out in applicable Statements of
Work.

 

The term “Claim” shall have the meaning given
it in sections 2.1.1 and 2.1.2 hereof.

 

The term “Confidential Information” shall
mean:  (i) any trade secrets or
other proprietary, confidential or non-public information of a Party, their
shareholders, directors, officers, employees, agents, clients, policyholders,
claimants, prospects, applicants or customers or third parties to whom it owes
a duty of confidentiality (including the terms of any transaction relating to
or involving such shareholders, directors, officers, employees, agents,
clients, policyholders, claimants, prospects, applicants, customers or third
parties) that are marked as confidential or otherwise identified as
confidential by the disclosing Party or that the receiving Party knows or
reasonably ought to know to be proprietary or confidential; (ii) Personal
Data; (iii) Proprietary Software; (iv) all employment information,
such as compensation (including proposed compensation), benefits, disciplinary
records, performance records and other data; and(vi) any other information
of a Party that the other Party knows or reasonably ought to know to be
proprietary or confidential.

 

1

 

The term “Contract Year” shall mean (a) for
this Agreement, each one-year period commencing on the Execution Date and each
anniversary thereof, and (b) for each Statement of Work, each one-year
period commencing on the Effective Date of such Statement of Work and each
anniversary thereof.

 

The term “Control” (including with correlative
meanings, the terms “Controlling,”
“Controlled by” and “under common Control with”) shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of an entity, whether through the
ownership of voting securities, by trust, management agreement, contract or
otherwise; provided, however, that beneficial ownership of fifty percent (50%) or more of the voting
stock of an entity shall be deemed to be Control.

 

The term “Copyright Act”
shall mean the United States Copyright Act, 17 U.S.C. §101 et seq, as amended
from time to time.

 

The term “Data”
shall mean, with respect to a Party, all information concerning such party
which has been created by such Party (or its Affiliates) in the conduct of its
business operations (whether directly or pursuant to the delivery of Services
hereunder) including without limitation information relating to the
shareholders, directors, officers, employees, agents, brokers, distributors,
suppliers,  clients,  prospects, applicants or customers of such
Party (or its Affiliates) or relating to the businesses of such Party (or its
Affiliates), including third party information, operations, facilities,
products, Services and markets, all as to the extent provided to or obtained by
the other Party from such Party (or its Affiliates or their shareholders,
directors, officers, employees, agents, brokers, distributors, suppliers,  clients, policyholders, claimants,
prospects, applicants or customers), such Party’s employees or agents pursuant
to this Agreement, or derived from any of the foregoing. “Data” includes, without limitation, (i) any
such information in a tangible form, regardless of the form or method by which
such information is created, stored, maintained or communicated, (ii) all
data maintained by Service Provider for Services Recipient, and (iii) Personal
Data. “Data” also includes information which is, and is not, Confidential
Information of a Party (or its Affiliates). For avoidance of doubt, Data does
not include internal information of Service Provider generated in connection
with the performance of Services and not reasonably related to its obligations
under this Agreement (e.g., Service Provider’s personnel or cost data,
internal reviews, or similar information or data).

 

The term “Data Protection Laws”
shall mean any data protection or privacy Laws.

 

The
term “Deliverables” shall mean goods and services to be
created by Service Provider and delivered to Services Recipient as part of the
Services and as specified under an applicable Statement of Work or.

 

The term “Direct Fully Allocated
Costs”  shall have the meaning given it in Section 10.1
hereof.

 

The term “Dispute Resolution Process” shall mean the escalation procedures for resolving Disputes set
forth in Article 23 and Appendix 23.4.

 

The term “Dispute”
shall mean any dispute, controversy or claim arising out of, or relating to,
this Agreement, including any of the foregoing with respect to the
interpretation of any provision of this Agreement, the performance of any Party
of its obligations under this Agreement and situations or circumstances in
which the Parties are supposed to, but cannot, mutually agree.

 

The term “Documentation” shall mean, with
respect to any information technology Services, all program descriptions, desk
procedures, materials, documentation, specifications, training manuals, 

 

2

 

technical manuals, user manuals, flow diagrams, file descriptions and
other written information that describes the function and use of such Services,
as applicable.

 

The term “Effective Date” shall mean, with
respect to a Statement of Work, the date on which the Parties, or their
Affiliates, execute such Statement of Work, as set forth in such Statement of
Work, or as agreed by the Parties. The Effective Date of the initial Statements
of Work shall be the Execution Date.

 

The term “Execution Date” shall
have the meaning given it in the preamble to this Agreement.

 

The term “Force Majeure Event”
shall mean an event that both:  (i) is
caused by any of the following: acts of war, terrorism, civil riots or
rebellions; quarantines, embargoes and other governmental action; labor disputes;
extraordinary elements of nature or acts of God or other event or condition
outside the reasonable control of the Party subject to such failure or delay;
and (ii) could not have been prevented by the non-performing Party’s
commercially reasonable precautions, or could not reasonably be circumvented by
the non-performing Party through the use of substitute Services, alternate
sources, work-around plans or other means; provided that neither party shall be
obligated by this Agreement to settle any labor dispute except on terms which
may be satisfactory to it in its sole discretion.

 

The term “Former Affiliate” shall
mean, with respect to any Affiliate of a Party receiving Services, any such
entity or any portion of the business or operations thereof, that has undergone
a Change in Control.

 

The term “Indemnification
Notice” shall mean a notice to be provided by any Indemnified Party
under this Agreement advising the Indemnifying Party of the applicable Claim
and providing a description of the nature of the Claim.

 

The term “Indemnified
Party” shall mean an entity entitled to indemnification hereunder,
including a Party and its Affiliates any Party, and its and their respective
shareholders, members, directors, managers, officers, and employees.

 

The term “Indemnifying
Party” shall mean a Party required to indemnify an Indemnified Party
under this Agreement.

 

The term “Initial
Term” shall mean the first three Contract Years of the Term.

 

The term “Intellectual
Property Rights” shall mean any and all intangible rights existing
from time-to-time under the Law of any jurisdiction, including patent law,
copyright law, trade secret law, database rights law, unfair competition law,
trademark law, or other similar laws or principles.

 

The term “Invention”
shall mean any invention, idea, concept, know-how, or technique that either
Party first conceives or reduces to practice in connection with performance of
the Services during this Agreement including any invention, idea, concept,
know-how, or technique for which a patent application is or could be filed.

 

The term “Law”
shall mean all statutes, regulations, directives, ordinances, orders, rulings,
agency or court interpretations, or other action of any governmental authority
in any jurisdiction in the world, whether currently in force or enacted during
the Term.

 

The term “Losses” shall  mean all liabilities, awards, judgments, fines, payments in
settlement of Claims, and damages (including Taxes), and all related costs and
expenses, including reasonable legal 

 

3

 

fees and disbursements, and costs of investigation, litigation,
settlement, judgment, appeal, interest, fines and penalties, paid by a Party in
connection with a Claim.

 

The term “Noticed Dispute”
shall mean a Dispute noticed by a Party to the other Party in accordance with Section 23.4.

 

The term “Party” shall
mean each of Boise Paper and Boise
Cascade.

 

The term “Performance Requirements” shall mean the performance requirements, service levels, and
other obligations set forth in the Agreement and the applicable Statement of
Work that describe the timeframes and other expectations and obligations for
performance of the individual tasks comprising the Services.

 

The term “Personal
Data” shall mean personally identifiable data about individuals,
including sensitive personal data, that are used, received or accessed by
Service Provider under this Agreement and that (i) relate to, or are
provided by, a Services Recipient shareholder, director, officer, employee,
agent, client, claimant, prospect, applicant or customer, or (ii) directly
or indirectly relate to Services Recipient’s past, present or future employees,
contractors, consultants, temporary workers, contingent workers, secondees,
clients, claimants, prospects, applicants, customer or dependents of the
foregoing or individuals designated by the foregoing as beneficiaries or in
other capacities (e.g., under a pension plan, life insurance, as an
emergency contact, and the like) or individuals who become or may become
entitled to benefits as a result of the operation of law or the rules of
any benefit plan.

 

The term “Personnel” shall
mean, with respect to a Party, all of such Party’s and its contractors’ employees, contractors and agents.

 

The term “Prime Rate”
means the rate of interest reported under that title from time to time in the
Wall Street Journal.

 

The term “Proprietary Software” shall mean,
with respect to a Party, any Software owned by such Party.

 

The term “Relationship Manager” shall mean,
with respect to a Party, the officer or employee of such Party designated as
such from time to time pursuant to section 13.1 hereof.

 

The term “Responsible Manager”
shall mean for each Party in respect of each Statement of Work the person so
designated in such Statement of Work.

 

The term “Service Provider Indemnified Parties”
shall mean Service Provider and its Affiliates and its and their respective
shareholders, members, directors, managers, officers, and employees.

 

The term “Service Provider Software” shall
mean the Software owned by Service Provider or licensed by Service Provider
from third parties (other than from Services Recipient) and used for the
benefit of Services Recipient under this Agreement and shall include the
Software listed in the applicable Statement of Work.

 

The term “Service Provider Third Party Supplier Agreement” shall mean a third party agreement
relating to the Services and to which Service Provider is a party.

 

The term “Service Provider”
shall mean, with respect to a particular Statement of Work, the Party, or its
Affiliate, that is providing the applicable Services, as set forth in such
Statement of Work.

 

4

 

The term “Services
Recipient Indemnified Parties” shall mean Services Recipient its Affiliates,
and its and their respective shareholders, members, directors, managers,
officers, and employees.

 

The term “Services
Recipient” shall mean, with respect to a particular Statement of
Work, the Party that is receiving the applicable Services, as set forth in such
Statement of Work.

 

The term “Services”
shall mean the professional, business functions, data processing, and other
services to be provided hereunder.

 

The term “Software
Documentation” shall
mean, with respect to any particular Software, its manuals and other
documentation regarding the capabilities, operation, installation and use of
such Software, including as applicable and available, user manuals, systems
operations manuals, console operations manuals, linking instructions, error logs
and reports, and other manuals and reports.

 

The term “Software”
shall mean any computer programs (including applications, utilities and
operating systems software) or databases and related object and source codes,
including all related Software Documentation and supporting materials relating
thereto and the tangible media upon which such programs, databases, code and
Software Documentation and supporting materials relating thereto are recorded
or printed, that (i) perform specific data processing tasks or (ii) perform
tasks basic to the functioning of any equipment, and any modifications,
enhancements, revisions, corrections, improvements, updates, releases
supplements, maintenance work-arounds and know-how related thereto, whether in
existence as of the Execution Date or created during the Term.

 

The term “Statement
of Work” shall have the meaning given it in Section 2.1 hereof.

 

The term “Tax” or “Taxes”
shall mean any federal, state or local income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall
profits, environmental, customs, capital stock, franchise, profits,
withholding, social security (or similar), unemployment, disability, real
property, personal property, sales, use, Services, transfer, registration,
value added, alternative or add-on minimum, estimated or other tax, assessment,
duty or governmental charge of any kind whatever imposed by any governmental or
taxing authority in any jurisdiction worldwide, whether disputed or not,
including any interest, penalty or addition thereto.

 

The term “Termination
Assistance Services” shall mean the termination, expiration,
transition and wind-down assistance Services to be provided by Service Provider
to Services Recipient upon expiration or termination of the Agreement, any
Statement of Work, or part thereof.

 

The term “Work
Product” shall mean all Deliverables, all work product created by
Service Provider for Services Recipient in connection with performance of the
Services, all derivative works created by Service Provider from Services
Recipient’s Proprietary Software, its Software Documentation, and Documentation
owned by, or licensed from a third party to, Services Recipient; provided,
however, that Work Product shall not include any derivative works of
Software or other materials owned by Service Provider.

 

5

 

Appendix 23.4

 

Dispute Resolution Process

 

Any Noticed Dispute shall
be resolved in accordance with the following procedures:

 

1. Negotiation.
Within five (5) days after the effective date of the notice (the “Notice Date”), each Party shall designate,
in writing to the other Party, the name of one of its senior executive officers
who shall be its “Designated Representative”
in the dispute resolution process. Designation by either party of its
Designated Representative shall constitute a representation by such party that
its Designated Representative has full power and authority to resolve the
Noticed Dispute. Within fifteen (15) days after the Notice Date, each party
shall have delivered to the Designated Representative of the other party a
written statement of its position. No later than the thirty-fifth (35th) day
after the Notice Date, the Designated Representatives shall meet, discuss, and
negotiate with respect to the Noticed Dispute for a period not to exceed ten (10) days.

 

If the Parties are unable to settle the Noticed
Dispute through negotiations during the ten (10) day negotiation and
discussion period provided for the last sentence of the preceding paragraph by
the forty-fifth (45th) day following the Notice Date, the Parties shall
mutually appoint a neutral third-party arbitrator. If the Parties are unable to
agree upon the neutral third-party arbitrator by the fiftieth (50th) day
following the Notice Date, either party may obtain the appointment of a neutral
third-party arbitrator by the Chief Judge of the United States District Court
for the District of Idaho.

 

2. Arbitration.
Within ten (10) days after appointment of the neutral arbitrator, each
Party shall submit a written statement to the neutral arbitrator and to the
other Party advocating its position, and each party may, within ten (10) 
days after receipt of the other Party’s statement, submit to the neutral
arbitrator and the opposing Party one rebuttal statement. Opening statements
shall be no longer than thirty (30) pages of 8 1/2” by 11” paper, and
rebuttal statements shall be limited to fifteen (15) pages of 8 1/2” by 11”
paper unless otherwise mutually agreed. Within twenty (20) days after
submission of the rebuttal statement, on a date and at a place set by the
neutral arbitrator, the Designated Representatives shall meet with the neutral
arbitrator to negotiate and resolve the Noticed Dispute. Each Designated
Representative may make an oral presentation to the neutral arbitrator. The
Designated Representatives of both Parties shall be present for such
presentations and shall be available at the same location on the following day
for arbitrator-sponsored negotiations. If the Parties are unable to reach a
settlement of the Noticed Dispute, the neutral arbitrator shall, within twenty
(20) days thereafter, deliver in writing to each Party his or her recommended
settlement of the Noticed Dispute. Within ten (10) days after receipt of
the neutral arbitrator’s recommended settlement, the Parties’ Designated
Representatives shall meet at a time and place set by the neutral arbitrator
and make a final attempt to resolve the Noticed Dispute. If they are unable to
do so, the arbitrator shall make a final decision which shall be final and
binding upon the Parties.

 

3. Confidentiality.

 

3.1. Each
Party shall treat all statements, written submissions, and other disclosures
made by the other in the course of efforts to resolve the Noticed Dispute (collectively,
“Settlement Information”) as
Confidential Information and shall make no disclosure of the Settlement
Information to any third party (other than its employees and officers involved
in the Noticed Dispute and its counsel and other consultants providing advice
in respect of the Noticed Dispute), and it shall require all persons to whom it
is permitted to disclose such information to make a similar nondisclosure
commitment for the benefit of and enforceable by the Party providing such
information. Such nondisclosure obligation shall 

 

6

 

remain in effect for a period of five (5) years from the date of
disclosure. Notwithstanding the foregoing neither Party shall be in breach of
the foregoing non-disclosure provisions if (i) the information disclosed
by it is or has become, without fault on its part, public information; or (ii) it
is required to disclose such information by law (including applicable
securities laws) or by the order of any court, administrative tribunal, or
regulator issued to it; provided that the disclosing Party shall give notice to
the other Party as soon as feasible of the pendency of any request or threat of
such required disclosure and cooperate with all efforts the other Party wishes
to make to avoid or limit such disclosure or obtain confidential treatment
thereof by the persons seeking and ordering such disclosure.

 

3.2.
Prior to commencing the arbitration process, the Parties shall require the
neutral arbitrator to sign a confidentiality agreement in which he or she
commits, for the benefit of and on a basis which is enforceable by each Party
and its respective Affiliates, that he or she will hold the Settlement
Information confidential and not disclose it to any Party other than the
Parties, their respective Affiliates, counsel, and advisors and agents involved
in the Noticed Dispute, except under order of disclosure by a court of
competent jurisdiction or pursuant to a written authorization signed by the
Party or Parties providing the Settlement Information which is to be disclosed.

 

4. Fees
and Expenses. The Parties shall each pay their own costs and
fees associated with the Dispute Resolution Process provided for in this
Agreement. The fees and expenses of the neutral arbitrator shall be divided
equally by the Parties.

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]