Document:

Exhibit 10.6

 

EXECUTION VERSION

 

SECOND LIEN CREDIT AND GUARANTY AGREEMENT

 

dated as of February 22, 2008

 

among

 

ALDABRA SUB LLC

(to be merged with and into BOISE PAPER HOLDINGS,
L.L.C.),

 

ALDABRA HOLDING SUB LLC,

 

CERTAIN SUBSIDIARIES OF ALDABRA SUB LLC,

as Guarantors,

 

VARIOUS LENDERS,

 

LEHMAN COMMERCIAL PAPER INC.,

as Administrative Agent and Collateral Agent,

 

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Joint Lead Arranger,
Joint Bookrunner and Syndication Agent

 

and

 

LEHMAN BROTHERS INC.,

as Joint Lead Arranger, Joint Bookrunner and
Documentation Agent

 

 

$260,700,000 Senior Secured Second Priority Credit
Facility

 

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION 1. DEFINITIONS AND INTERPRETATION

  	
  2

  
	
  1.1. Definitions

  	
  2

  
	
  1.2. Accounting Terms

  	
  31

  
	
  1.3. Interpretation,
  etc.

  	
  32

  
	
  1.4. Intercreditor
  Agreement

  	
  32

  
	
   

  	
   

  
	
  SECTION 2. LOANS

  	
  32

  
	
  2.1. Loans

  	
  32

  
	
  2.2. Intentionally
  Omitted

  	
  33

  
	
  2.3. Intentionally
  Omitted.

  	
  33

  
	
  2.4. Intentionally
  Omitted

  	
  33

  
	
  2.5. Pro Rata Shares;
  Availability of Funds

  	
  33

  
	
  2.6. Use of Proceeds

  	
  33

  
	
  2.7. Evidence of Debt;
  Register; Lenders’ Books and Records; Notes.

  	
  34

  
	
  2.8. Interest on Loans

  	
  34

  
	
  2.9.
  Conversion/Continuation

  	
  36

  
	
  2.10. Default Interest

  	
  36

  
	
  2.11. Fees

  	
  37

  
	
  2.12. Payment at
  Maturity.

  	
  37

  
	
  2.13. Voluntary
  Prepayments; Make-Whole Premium; Call Premium

  	
  37

  
	
  2.14. Mandatory
  Prepayments

  	
  38

  
	
  2.15. Application of
  Prepayments

  	
  40

  
	
  2.16. General Provisions
  Regarding Payments

  	
  41

  
	
  2.17. Ratable Sharing

  	
  42

  
	
  2.18. Making or
  Maintaining Eurodollar Rate Loans

  	
  42

  
	
  2.19. Increased Costs;
  Capital Adequacy

  	
  44

  
	
  2.20. Taxes;
  Withholding, etc.

  	
  45

  
	
  2.21. Obligation to
  Mitigate

  	
  48

  
	
  2.22. Intentionally
  Omitted

  	
  49

  
	
  2.23. Removal or
  Replacement of a Lender

  	
  49

  
	
   

  	
   

  
	
  SECTION 3. CONDITIONS PRECEDENT

  	
  50

  
	
  3.1. Closing Date

  	
  50

  
	
  3.2. Notices

  	
  55

  
	
   

  	
   

  
	
  SECTION 4. REPRESENTATIONS AND WARRANTIES

  	
  56

  
	
  4.1. Organization;
  Requisite Power and Authority; Qualification.

  	
  56

  
	
  4.2. Equity Interests
  and Ownership

  	
  56

  
	
  4.3. Due Authorization

  	
  56

  
	
  4.4. No Conflict

  	
  56

  
	
  4.5. Governmental
  Consents

  	
  57

  
	
  4.6. Binding Obligation

  	
  57

  
	
  4.7. Historical
  Financial Statements

  	
  57

  
	
  4.8. Projections

  	
  57

  

 

ii

 

	
  4.9. No Material Adverse
  Change

  	
  58

  
	
  4.10. Reserved

  	
  58

  
	
  4.11. Adverse
  Proceedings, etc.

  	
  58

  
	
  4.12. Payment of Taxes.

  	
  58

  
	
  4.13. Properties

  	
  58

  
	
  4.14. Environmental
  Matters

  	
  59

  
	
  4.15. No Defaults

  	
  59

  
	
  4.16. Material Contracts

  	
  59

  
	
  4.17. Governmental
  Regulation

  	
  60

  
	
  4.18. Margin Stock

  	
  60

  
	
  4.19. Employee Matters

  	
  60

  
	
  4.20. Employee Benefit
  Plans

  	
  60

  
	
  4.21. Certain Fees

  	
  61

  
	
  4.22. Solvency

  	
  61

  
	
  4.23. Related Agreements

  	
  61

  
	
  4.24. Compliance with
  Statutes, etc.

  	
  61

  
	
  4.25. Disclosure

  	
  61

  
	
  4.26. Patriot Act

  	
  62

  
	
   

  	
   

  
	
  SECTION 5. AFFIRMATIVE COVENANTS

  	
  62

  
	
  5.1. Financial
  Statements and Other Reports

  	
  62

  
	
  5.2. Existence

  	
  66

  
	
  5.3. Payment of Taxes
  and Claims

  	
  66

  
	
  5.4. Maintenance of
  Properties

  	
  66

  
	
  5.5. Insurance

  	
  66

  
	
  5.6. Books and Records;
  Inspections

  	
  67

  
	
  5.7. Lenders Meetings

  	
  67

  
	
  5.8. Compliance with
  Laws

  	
  68

  
	
  5.9. Environmental

  	
  68

  
	
  5.10. Subsidiaries

  	
  69

  
	
  5.11. Additional
  Material Real Estate Assets

  	
  70

  
	
  5.12. Reserved

  	
  70

  
	
  5.13. Further Assurances

  	
  70

  
	
  5.14. Miscellaneous
  Covenants

  	
  71

  
	
   

  	
   

  
	
  SECTION 6. NEGATIVE COVENANTS

  	
  71

  
	
  6.1. Indebtedness

  	
  71

  
	
  6.2. Liens

  	
  74

  
	
  6.3. No Further Negative
  Pledges

  	
  76

  
	
  6.4. Restricted Junior
  Payments

  	
  76

  
	
  6.5. Restrictions on
  Subsidiary Distributions

  	
  78

  
	
  6.6. Investments

  	
  79

  
	
  6.7. Financial Covenants

  	
  80

  
	
  6.8. Fundamental
  Changes; Disposition of Assets; Acquisitions

  	
  81

  
	
  6.9. Disposal of
  Subsidiary Interests

  	
  83

  
	
  6.10. Sales and
  Lease-Backs

  	
  83

  
	
  6.11. Transactions with
  Shareholders and Affiliates.

  	
  83

  

 

iii

 

	
  6.12. Conduct of
  Business

  	
  84

  
	
  6.13. Permitted
  Activities of Holdings

  	
  84

  
	
  6.14. Amendments or Waivers of Organizational Documents,
  Certain Related Agreements and Certain Other Agreements

  	
  85

  
	
  6.15. Amendments or
  Waivers with respect to First Lien Credit Agreement

  	
  85

  
	
  6.16. Fiscal Year

  	
  85

  
	
   

  	
   

  
	
  SECTION 7. GUARANTY

  	
  85

  
	
  7.1. Guaranty of the
  Obligations

  	
  85

  
	
  7.2. Contribution by
  Guarantors

  	
  85

  
	
  7.3. Payment by
  Guarantors

  	
  86

  
	
  7.4. Liability of
  Guarantors Absolute

  	
  86

  
	
  7.5. Waivers by
  Guarantors

  	
  88

  
	
  7.6. Guarantors’ Rights
  of Subrogation, Contribution, etc.

  	
  89

  
	
  7.7. Subordination of
  Other Obligations

  	
  90

  
	
  7.8. Continuing Guaranty

  	
  90

  
	
  7.9. Authority of
  Guarantors or Borrower

  	
  90

  
	
  7.10. Financial
  Condition of Borrower

  	
  90

  
	
  7.11. Bankruptcy, etc.

  	
  90

  
	
  7.12. Discharge of
  Guaranty Upon Sale of Guarantor

  	
  91

  
	
   

  	
   

  
	
  SECTION 8. EVENTS OF DEFAULT

  	
  91

  
	
  8.1. Events of Default

  	
  91

  
	
   

  	
   

  
	
  SECTION 9. AGENTS

  	
  94

  
	
  9.1. Appointment of
  Agents.

  	
  94

  
	
  9.2. Powers and Duties

  	
  94

  
	
  9.3. General Immunity

  	
  95

  
	
  9.4. Agents Entitled to
  Act as Lender

  	
  96

  
	
  9.5. Lenders’
  Representations, Warranties and Acknowledgment

  	
  96

  
	
  9.6. Right to Indemnity

  	
  97

  
	
  9.7. Successor
  Administrative Agent and Collateral Agent.

  	
  97

  
	
  9.8. Collateral
  Documents and Guaranty

  	
  98

  
	
  9.9. Withholding Taxes

  	
  99

  
	
   

  	
   

  
	
  SECTION 10. MISCELLANEOUS

  	
  99

  
	
  10.1. Notices

  	
  99

  
	
  10.2. Expenses

  	
  100

  
	
  10.3. Indemnity

  	
  101

  
	
  10.4. Set-Off

  	
  102

  
	
  10.5. Amendments and
  Waivers

  	
  103

  
	
  10.6. Successors and
  Assigns; Participations

  	
  104

  
	
  10.7. Independence of
  Covenants

  	
  107

  
	
  10.8. Survival of
  Representations, Warranties and Agreements

  	
  108

  
	
  10.9. No Waiver;
  Remedies Cumulative

  	
  108

  
	
  10.10. Marshalling;
  Payments Set Aside

  	
  108

  

 

iv

 

	
  10.11. Severability

  	
  108

  
	
  10.12. Obligations
  Several; Independent Nature of Lenders’ Rights

  	
  108

  
	
  10.13. Headings

  	
  109

  
	
  10.14. APPLICABLE LAW

  	
  109

  
	
  10.15. CONSENT TO
  JURISDICTION

  	
  109

  
	
  10.16. WAIVER OF JURY
  TRIAL

  	
  109

  
	
  10.17. Confidentiality

  	
  110

  
	
  10.18. Usury Savings
  Clause

  	
  111

  
	
  10.19. Counterparts

  	
  111

  
	
  10.20. Effectiveness;
  Entire Agreement

  	
  111

  
	
  10.21. Patriot Act

  	
  111

  
	
  10.22. Electronic
  Execution of Assignments

  	
  112

  
	
  10.23. No Fiduciary Duty

  	
  112

  

 

v

 

	
  APPENDICES:

  	
   

  	
  A             Commitments

  
	
   

  	
   

  	
  B             Notice
  Addresses

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
   

  	
  3.1(h)

  	
   

  	
  Closing Date
  Mortgaged Properties

  
	
   

  	
   

  	
  3.1(h)(vi)

  	
   

  	
  Surveys

  
	
   

  	
   

  	
  4.1

  	
   

  	
  Jurisdictions of Organization and Qualification

  
	
   

  	
   

  	
  4.2

  	
   

  	
  Equity Interests and Ownership

  
	
   

  	
   

  	
  4.13(a)

  	
   

  	
  Real Estate Assets Under Sale Contracts

  
	
   

  	
   

  	
  4.13(b)

  	
   

  	
  Real Estate Assets

  
	
   

  	
   

  	
  4.16

  	
   

  	
  Material Contracts

  
	
   

  	
   

  	
  4.21

  	
   

  	
  Certain Fees

  
	
   

  	
   

  	
  6.1

  	
   

  	
  Certain Indebtedness

  
	
   

  	
   

  	
  6.2

  	
   

  	
  Certain Liens

  
	
   

  	
   

  	
  6.3

  	
   

  	
  Negative Pledges

  
	
   

  	
   

  	
  6.5

  	
   

  	
  Certain Restrictions on
  Subsidiary Distributions

  
	
   

  	
   

  	
  6.6

  	
   

  	
  Certain Investments

  
	
   

  	
   

  	
  6.11

  	
   

  	
  Certain Affiliate Transactions

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
   

  	
  A-1

  	
   

  	
  Funding Notice

  
	
   

  	
   

  	
  A-2

  	
   

  	
  Conversion/Continuation Notice

  
	
   

  	
   

  	
  B

  	
   

  	
  Note

  
	
   

  	
   

  	
  C

  	
   

  	
  Compliance Certificate

  
	
   

  	
   

  	
  D

  	
   

  	
  Reserved

  
	
   

  	
   

  	
  E

  	
   

  	
  Assignment Agreement

  
	
   

  	
   

  	
  F

  	
   

  	
  Certificate re Non-Bank Status

  
	
   

  	
   

  	
  G-1

  	
   

  	
  Closing Date Certificate

  
	
   

  	
   

  	
  G-2

  	
   

  	
  Solvency Certificate

  
	
   

  	
   

  	
  H

  	
   

  	
  Counterpart Agreement

  
	
   

  	
   

  	
  I

  	
   

  	
  Pledge and Security Agreement

  
	
   

  	
   

  	
  J

  	
   

  	
  Mortgage

  
	
   

  	
   

  	
  K

  	
   

  	
  Landlord Waiver and Consent Agreement

  
	
   

  	
   

  	
  L

  	
   

  	
  Intercompany Note

  
	
   

  	
   

  	
  M

  	
   

  	
  Intercreditor Agreement

  

 

vi

 

SECOND LIEN CREDIT AND GUARANTY AGREEMENT

 

This SECOND LIEN CREDIT AND GUARANTY AGREEMENT,
dated as of February 22, 2008, is entered into by and among ALDABRA SUB LLC, a Delaware limited liability company (“Aldabra” and, prior to the BPH Merger (as defined below), the “Borrower”), to be merged with and
into BOISE PAPER HOLDINGS, L.L.C., a
Delaware limited liability company (“BPH” and,
after the BPH Merger, the “Borrower”), ALDABRA HOLDING SUB LLC, a Delaware limited liability
company (“Holdings”), CERTAIN SUBSIDIARIES OF ALDABRA, as
Guarantors, the Lenders party hereto from time to time, LEHMAN COMMERCIAL PAPER INC. (“LCPI”),
as Administrative Agent (together with its permitted successors in such
capacity, “Administrative Agent”)
and Collateral Agent (together with its permitted successors in such capacity, “Collateral Agent”), GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”), as Syndication Agent (together
with its permitted successors in such capacity, “Syndication Agent”), and LEHMAN BROTHERS INC. (“Lehman Brothers”), as Documentation Agent (together with its
permitted successors in such capacity, “Documentation Agent”).

 

RECITALS:

 

WHEREAS, capitalized terms used in these Recitals
shall have the respective meanings set forth for such terms in Section 1.1
hereof;

 

WHEREAS, Lenders have agreed to extend a term
loan credit facility to Borrower, in an aggregate amount not to exceed
$260,700,000, with the proceeds of
the Loans being used to fund (a) in part, the acquisition (the “Acquisition”) of BPH (together with its Subsidiaries, the “Acquired Business”) pursuant to the Acquisition Agreement,
including the refinancing or retiring of certain existing Indebtedness for
borrowed money of the Acquired Business, and (b) the payment of fees,
commissions and expenses in connection therewith and in connection with the
financing of the foregoing, including fees under Section 2.11(a);

 

WHEREAS, promptly
following the Acquisition, Aldabra will merge with and into BPH with BPH as the
survivor in such merger (the “BPH Merger”),
and BPH will be the Borrower hereunder;

 

WHEREAS, Borrower has agreed to secure all of its
Obligations by granting to Collateral Agent, for the benefit of Secured
Parties, a Second Priority Lien on substantially all of its assets, including a
pledge of all of the Equity Interests of each of its Domestic Subsidiaries and
65% of all the Equity Interests of each of its first-tier Foreign Subsidiaries;
and

 

WHEREAS, Guarantors have agreed to guarantee the
obligations of Borrower hereunder and to secure their respective Obligations by
granting to Collateral Agent, for the benefit of Secured Parties, a Second Priority
Lien on substantially all of their respective assets, including a pledge of all
of the Equity Interests of each of their respective Domestic Subsidiaries
(including Borrower) and 65% of all the Equity Interests of each of their
respective first-tier Foreign Subsidiaries.

 

 

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

 

SECTION 1.   DEFINITIONS AND INTERPRETATION

 

1.1.   Definitions.  The following terms used herein, including in
the preamble, recitals, exhibits and schedules hereto, shall have the following
meanings:

 

“Acquired Business” as defined in
the recitals hereof.

 

“Acquisition” as defined in
the recitals hereof.

 

“Acquisition Agreement” shall mean the Purchase and Sale Agreement dated as of September 7,
2007 among Boise Cascade, L.L.C., BPH, Boise White Paper, L.L.C., Boise
Packaging & Newsprint, L.L.C., Boise Cascade Transportation Holdings
Corp., Parent and Aldabra, as amended pursuant to Amendment No. 1 to
Purchase and Sale Agreement dated as of October 18, 2007, as further
amended pursuant to Amendment No. 2 to Purchase and Sale Agreement dated
as of February 22, 2008, and as further amended, restated, supplemented or
otherwise modified from time to time in accordance with Section 6.14
hereof.

 

“Acquisition Consideration” shall mean the
purchase consideration for any Permitted Acquisition and all other payments by
Holdings or any of its Subsidiaries in exchange for, or as part of, or in
connection with, any Permitted Acquisition, whether paid in cash or by exchange
of Equity Interests or of properties or otherwise and whether payable at or
prior to the consummation of such Permitted Acquisition or deferred for payment
at any future time, whether or not any such future payment is subject to the
occurrence of any contingency, and includes any and all payments representing
the purchase price and any assumptions of Indebtedness, “earn-outs” and other
agreements to make any payment the amount of which is, or the terms of payment
of which are, in any respect subject to or contingent upon the revenues,
income, cash flow or profits (or the like) of any person or business; provided
that any such future payment that is subject to a contingency shall be
considered Acquisition Consideration only to the extent of the reserve, if any,
required under GAAP at the time of such sale to be established in respect
thereof by Holdings or any of its Subsidiaries.

 

“Adjusted Eurodollar Rate” means, for any Interest Rate
Determination Date with respect to an Interest Period for a Eurodollar Rate
Loan, the rate per annum obtained by dividing (and rounding upward to the next
whole multiple of 1/16 of 1%) (i) (a) the rate per annum (rounded to
the nearest 1/100 of 1%) equal to the rate determined by Administrative Agent
to be the offered rate which appears on the page of the Reuters Screen
which displays an average British Bankers Association Interest Settlement Rate
(such page currently being LIBOR01 page) for deposits (for delivery on the
first day of such period) with a term equivalent to such period in Dollars,
determined as of approximately 11:00 a.m. (London, England time) on such
Interest Rate Determination Date, or (b) in the event the rate referenced
in the preceding clause (a) does not appear on such page or service
or if such page or service shall cease to be available, the rate per annum
(rounded to the nearest 1/100 of 1%) equal to the rate determined by
Administrative Agent to be the offered rate on such other page or other
service which displays

 

2

 

an average British
Bankers Association Interest Settlement Rate for deposits (for delivery on the
first day of such period) with a term equivalent to such period in Dollars,
determined as of approximately 11:00 a.m. (London, England time) on such
Interest Rate Determination Date, or (c) in the event the rates referenced
in the preceding clauses (a) and (b) are not available, the rate per
annum (rounded to the nearest 1/100 of 1%) equal to the offered quotation rate
to first class banks in the London interbank market by JPMorgan Chase Bank,
N.A. for deposits (for delivery on the first day of the relevant period) in
Dollars of amounts in same day funds comparable to the principal amount of the
applicable Loan of Administrative Agent, in its capacity as a Lender, for which
the Adjusted Eurodollar Rate is then being determined with maturities
comparable to such period as of approximately 11:00 a.m. (London, England
time) on such Interest Rate Determination Date, by (ii) an amount equal to
(a) one minus (b) the Applicable Reserve Requirement.  In no event shall the rate per annum
determined pursuant to clause (i)(a), (b) or (c) above be less than
5.50%.

 

“Administrative Agent” as defined in the preamble hereto.

 

“Adverse Proceeding” means any action, suit, proceeding or
governmental investigation (whether or not purportedly on behalf of Holdings or
any of its Subsidiaries) at law or in equity, or before or by any arbitrator or
Governmental Authority, domestic or foreign (including any Environmental
Claims), whether pending or, to the knowledge of Holdings or any of its
Subsidiaries, threatened against or affecting Holdings or any of its
Subsidiaries or any property of Holdings or any of its Subsidiaries.

 

“Affected Lender” as defined in Section 2.18(b).

 

“Affected Loans” as defined in Section 2.18(b).

 

“Affiliate” means, as applied to any Person, any
other Person directly or indirectly controlling, controlled by, or under common
control with, that Person. For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlling”, “controlled by”
and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of that Person, whether through the
ownership of voting securities or by contract or otherwise.

 

“Agent” means each of Administrative Agent,
Syndication Agent, Collateral Agent and Documentation Agent.

 

“Agent Affiliates” as defined in Section 10.1(b).

 

“Aggregate Amounts Due” as defined in Section 2.17.

 

“Aggregate Payments” as defined in Section 7.2.

 

“Agreement” means this Second Lien Credit and
Guaranty Agreement, dated as of February 22, 2008, as it may be amended,
restated, supplemented or otherwise modified from time to time.

 

3

 

“Aldabra” as defined in the preamble hereto.

 

“Applicable Reserve Requirement” means, at any time, for any Eurodollar
Rate Loan, the maximum rate, expressed as a decimal, at which reserves
(including any basic marginal, special, supplemental, emergency or other
reserves) are required to be maintained with respect thereto against “Eurocurrency
liabilities” (as such term is defined in Regulation D) under regulations issued
from time to time by the Board of Governors or other applicable banking
regulator.  Without limiting the effect
of the foregoing, the Applicable Reserve Requirement shall reflect any other
reserves required to be maintained by such member banks with respect to (i) any
category of liabilities which includes deposits by reference to which the
applicable Adjusted Eurodollar Rate or any other interest rate of a Loan is to
be determined, or (ii) any category of extensions of credit or other
assets which include Eurodollar Rate Loans. 
A Eurodollar Rate Loan shall be deemed to constitute Eurocurrency
liabilities and as such shall be deemed subject to reserve requirements without
benefits of credit for proration, exceptions or offsets that may be available
from time to time to the applicable Lender. 
The rate of interest on Eurodollar Rate Loans shall be adjusted
automatically on and as of the effective date of any change in the Applicable
Reserve Requirement.

 

“Approved Electronic
Communications” means any notice, demand, communication,
information, document or other material that any Credit Party provides to
Administrative Agent pursuant to any Credit Document or the transactions
contemplated therein which is distributed to the Agents or to the lenders by
means of electronic communications pursuant to Section 10.1(b).

 

“Arrangers” means GSCP and Lehman Brothers.

 

“Asset Sale” means a sale, lease or sub-lease (as
lessor or sublessor), sale and leaseback, assignment, conveyance, Exclusive IP
License (as licensor or sublicensor), transfer or other disposition to, or any
exchange of property with, any Person (other than Borrower or any Guarantor
Subsidiary), in one transaction or a series of transactions, of all or any part
of Holdings’ or any of its Subsidiaries’ businesses, assets or properties of
any kind, whether real, personal, or mixed and whether tangible or intangible,
whether now owned or hereafter acquired, leased or licensed, including the
Equity Interests of any of Holdings’ Subsidiaries, other than (i) inventory
(or other assets) sold, leased or licensed out in the ordinary course of
business (excluding any such sales, leases or licenses out by operations or
divisions discontinued or to be discontinued), (ii) Cash or Cash
Equivalents used in the ordinary course of business, (iii) transactions
permitted by Section 6.4 (to the extent such Restricted Junior Payment
involves a sale, transfer or disposition of assets) or Section 6.6 (to the
extent such Investment involves a sale, transfer or disposition of assets), (iv) Permitted
Operating Asset Swaps, (v) the disposal or abandonment of property no
longer used or useful in the business of any Credit Party in an amount for any
transaction or related series of transactions less than $100,000, (vi) sales,
discounting or forgiveness of accounts receivables in connection with the
collection or compromise thereof, (vii) the granting of Liens permitted by
Section 6.2, (viii) transfers of property subject to casualty or
condemnation proceedings (including in lieu thereof) upon the receipt of the
Net Insurance/Condemnation Proceeds therefor, provided, that the Credit
Parties shall comply with this Agreement with respect to the application of
such Net Insurance/Condemnation Proceeds, (ix) voluntary terminations of
Hedge Agreements, (x)

 

4

 

licensing of Intellectual
Property granted by Holdings or any of its Subsidiaries in the ordinary course
of business, or not interfering in any respect with the ordinary conduct of, or
not materially detracting from the value of, the business of the Borrower or
such Subsidiary, and (xi) sales, leases or licenses out of other assets for
aggregate consideration of less than $1,000,000 with respect to any transaction
or series of related transactions and less than $5,000,000 in the aggregate
during any Fiscal Year.

 

“Assignment Agreement” means an Assignment and Assumption
Agreement substantially in the form of Exhibit E, with such amendments or
modifications as may be reasonably approved by Administrative Agent.

 

“Assignment Effective Date” as defined in Section 10.6(b).

 

“Authorized Officer” means, as applied to any Person, any
individual holding the position of chairman of the board (if an officer), chief
executive officer, president or one of its vice presidents (or the equivalent
thereof), such Person’s chief financial officer, treasurer, assistant
treasurer, principal accounting officer or controller and such Person’s
secretary or assistant secretary.

 

“Bankruptcy Code” means Title 11 of the United States
Code entitled “Bankruptcy,” as now and hereafter in effect, or any successor
statute.

 

“Base Rate” means, for any day, a rate per annum
equal to the greater of (i) the Prime Rate in effect on such day and (ii) the
Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1%.  Any change in the Base Rate due to a change
in the Prime Rate or the Federal Funds Effective Rate shall be effective on the
effective day of such change in the Prime Rate or the Federal Funds Effective
Rate, respectively.

 

“Base Rate Loan” means a Loan bearing interest at a rate
determined by reference to the Base Rate.

 

“Beneficiary” means each Agent and each Lender.

 

“Board of Governors” means the Board of Governors of the
United States Federal Reserve System, or any successor thereto.

 

“Borrower” as defined in the preamble hereto.

 

“BPH” as defined in the preamble hereto.

 

“BPH Merger” as defined in the recitals hereof.

 

“Business Day” means (i) any day excluding
Saturday, Sunday and any day which is a legal holiday under the laws of the
State of New York or is a day on which banking institutions located in such
state are authorized or required by law or other governmental action to close
and (ii) with respect to all notices, determinations, fundings and
payments in connection with the Adjusted Eurodollar Rate or any Eurodollar Rate
Loans, the term “Business Day”
shall

 

5

 

mean any day which is a
Business Day described in clause (i) and which is also a day for trading
by and between banks in Dollar deposits in the London interbank market.

 

“Capital Lease” means, as applied to any Person, any
lease of any property (whether real, personal or mixed) by that Person as
lessee that, in conformity with GAAP, is or should be accounted for as a
capital lease on the balance sheet of that Person.

 

“Cash” means money, currency or a credit balance in any
demand or Deposit Account.

 

“Cash Equivalents” means, as at any date of determination, (i) marketable
securities (a) issued or directly and unconditionally guaranteed as to
interest and principal by the United States Government or (b) issued by
any department, instrumentality or agency of the United States the obligations
of which are backed by the full faith and credit of the United States, in each
case maturing within one year after such date; (ii) marketable direct
obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof,
in each case maturing within one year after such date and having, at the time
of the acquisition thereof, a rating of at least A-2 from S&P or at least
P-2 from Moody’s; (iii) commercial paper maturing no more than one year
from the date of acquisition thereof and having, at the time of the acquisition
thereof, a rating of at least A-2 from S&P or at least P-2 from Moody’s; (iv) certificates
of deposit, bankers’ acceptances or time deposits maturing within one year from
the date of acquisition thereof and issued or accepted by any Lender or by any
commercial bank organized under the laws of the United States of America or any
state thereof or the District of Columbia that (a) is at least “adequately
capitalized” (as defined in the regulations of its primary Federal banking
regulator) and (b) has Tier 1 capital (as defined in such regulations) of
not less than $100,000,000; (v) shares of any money market mutual fund
that has substantially all of its assets invested continuously in the types of
investments referred to in clauses (i) through (iv) above; (vi) fully
collateralized repurchase agreements with a term of not more than 30 days for
securities described in clauses (i) and (ii) above and entered
into with a financial institution satisfying the criteria described in
clause (iv) above; and (vii) demand deposit accounts with
commercial banks.

 

“Certificate re Non-Bank Status” means a certificate substantially in the
form of Exhibit F.

 

“Change of Control”
means (i) any Person or “group” (within the meaning of Rules 13d-3
and 13d-5 under the Exchange Act) other than the Permitted Investors (x) shall have obtained the power (whether or not
exercised) to vote a majority of the shares eligible to vote for the election
of the members of the board of directors (or similar governing body) of Parent
or (y) (a) shall have acquired beneficial ownership of 35% or
more on a fully diluted basis of the voting and/or economic interest in the
Equity Interests of Parent and (b) shall
have acquired beneficial ownership of the voting and/or economic interests in
the Equity Interests of Parent on a fully-diluted basis that is greater than
the percentage of the voting and/or economic interests in the Equity Interests
of Parent on a fully-diluted basis then held by the Permitted Investors;
(ii) at any time, Parent shall cease to beneficially own and control,
directly or indirectly, 100% on a fully diluted basis of the economic and
voting interest in the Equity Interests of Borrower; (iii) the majority of
the seats (other than vacant seats) on the board of directors (or similar
governing

 

6

 

body) of Parent cease to
be occupied by Persons who either (a) were members of the board of
directors of Parent on the Closing Date or (b) were nominated for election
or appointed by the board of directors of Parent, a majority of whom were
directors on the Closing Date or whose election, nomination for election or
appointment was previously approved by a majority of such directors; or (iv) any
“change of control” or similar event under the First Lien Credit Agreement
shall occur.

 

“Closing Date” means February 22, 2008.

 

“Closing Date Certificate” means a Closing Date Certificate
substantially in the form of Exhibit G-1.

 

“Closing Date Mortgaged Property” as defined in Section 3.1(h).

 

“Collateral” means, collectively, all of the real, personal
and mixed property (including Equity Interests) in which Liens are purported to
be granted pursuant to the Collateral Documents as security for the
Obligations.

 

“Collateral Agent” as defined in the preamble hereto.

 

“Collateral Documents” means the Pledge and Security Agreement,
the Mortgages, the Intellectual Property Security Agreements, the Landlord
Personal Property Collateral Access Agreements, if any, and all other
instruments, documents and agreements delivered by any Credit Party pursuant to
this Agreement or any of the other Credit Documents in order to grant to
Collateral Agent, for the benefit of Secured Parties, a Lien on any real,
personal or mixed property of that Credit Party as security for the
Obligations.

 

“Collateral Questionnaire” means a certificate in form reasonably
satisfactory to Collateral Agent that provides information with respect to the
Collateral of each Credit Party.

 

“Commitment” means the commitment of a Lender to make
or otherwise fund a Loan and “Commitments”
means such commitments of all Lenders in the aggregate.  The amount of each Lender’s Commitment, if
any, is set forth on Appendix A or in the applicable Assignment Agreement,
subject to any adjustment or reduction pursuant to the terms and conditions
hereof.  The aggregate amount of the
Commitments as of the Closing Date is $260,700,000.

 

“Commitment Letter” means the Amended and Restated Commitment Letter
dated November 2, 2007 among Aldabra, GSCP, Lehman Brothers and LCPI.

 

“Commodity Agreement” means any commodity futures contract,
forward contract, option to purchase or sell a commodity, or option, warrant or
other right with respect to a commodity futures contract or other similar
agreement or arrangement, each of which is for the purpose of hedging the risk of
fluctuations in commodities prices associated with the businesses of Holdings
and its Subsidiaries and not for speculative purposes.

 

“Compliance Certificate” means a Compliance Certificate
substantially in the form of Exhibit C.

 

7

 

“Consolidated Adjusted EBITDA” means, for any period, an amount
determined for Holdings and its Subsidiaries on a consolidated basis equal to (i) Consolidated
Net Income, plus, except in the case of clauses (s) and (t) below,
to the extent reducing Consolidated Net Income, the sum, without duplication,
of amounts for (a) consolidated interest expense (net of total interest
income), (b) provisions for taxes based on income, (c) total
depreciation and depletion expense, (d) total amortization expense, (e) lost
contribution and incremental costs associated with Wallula 30 day downtime due
to the W-3 conversion in excess of costs normally incurred during prior periods
that include cold outages in an amount not to exceed $4,000,000, (f) costs
associated with the closure and sale of Jackson Sawmill and the Vancouver and
Salem converting facilities in an amount not to exceed $6,100,000, (g) cost
savings resulting from the CTC acquisition relating to the elimination of the
negative impact associated with a contractual commitment to buy liner and
medium from a third party supplier that was previously in place in an amount
not to exceed $300,000, (h) costs relating to out of the money gas hedges
based upon a historical policy of entering into fixed rate gas hedges in an
amount not to exceed $16,800,000, (i) cost savings relating to the Wallula
Hog Fuel Boiler capital project in the event it is operational as of the
Closing Date in an amount not to exceed $2,600,000, (j) costs and lost
revenue associated with the cold outage of the recovery boiler at the DeRidder
Mill,  (k) Transaction Costs, (l) severance
costs, facility closure and related restructuring costs incurred within 18
months of the Closing Date, in an aggregate amount for all periods not to
exceed $10,000,000, (m) any non-recurring costs and expenses related to (1) any
public or private offering of Equity Interests of Holdings or Borrower, (2) any
investment or acquisition permitted by Section 6.6 or (3) recapitalizations
or Indebtedness permitted by Section 6.1, (n) any unrealized
Statement of Financial Accounting Standards No. 133 loss in respect of any
Hedge Agreement, (o) any non-cash losses attributable to the early
extinguishment of Indebtedness, (p) unusual or non-recurring non-cash
losses, (q) other non-cash charges reducing Consolidated Net Income
(excluding any such non-cash charge to the extent that it represents an accrual
or reserve for potential cash charge in any future period or amortization of a
prepaid cash charge that was paid in a prior period), (r) to the extent
covered by insurance and actually reimbursed or otherwise paid, or so long as
the Borrower has made a determination that there exists reasonable evidence
that such amount will in fact be reimbursed or otherwise paid by the insurer
within 12 months of the applicable liability or casualty event or incurrence of
expenses or losses relating to business interruption, expenses with respect to
liability or casualty events and expenses or losses relating to business interruption,
(s) expenses to the extent covered by contractual indemnification or
refunding provisions in favor of Holdings or one of its Subsidiaries and
actually paid or refunded, or, such expenses so long as Holdings or the
Borrower has made a determination that there exists reasonable evidence that
such amount will in fact be paid or refunded by the indemnifying party or other
obligor within 12 months of the event resulting in such indemnification or
refund; (t) all costs, fees, expenses and any one time payments made
related to any Permitted Acquisitions and (u) all non-cash
losses resulting from any purchase accounting adjustments, amortization,
write-up, write-down or write-off of assets (including intangible assets,
goodwill and deferred financing costs) in connection with the Acquisition and
related transactions thereto, any Permitted Acquisition or any merger,
consolidation or similar transaction not prohibited by this Agreement, minus (ii) (a) any
unrealized Statement of Financial Accounting Standards No. 133 gain in
respect of any Hedge Agreement, (b) any non-cash gains attributable to the
early extinguishment of Indebtedness, (c) unusual or non-recurring
non-cash gains, (d) all non-cash gains resulting from any purchase

 

8

 

accounting
adjustments, amortization, write-up, write-down or write-off of assets
(including intangible assets, goodwill and deferred financing costs) in
connection with the Acquisition and related transactions thereto, any Permitted
Acquisition or any merger, consolidation or similar transaction not prohibited
by this Agreement, (e) any amount added pursuant to clause (r) above,
but not actually reimbursed to or otherwise received by the Borrower within 12
months of the applicable liability or casualty event or incurrence of expenses
or losses relating to business interruption, (f) any amount added pursuant
to clause (s) above, but not actually refunded to or received by the
Borrower within 12 months of the event resulting in such indemnification or
refund; and (g) other
non-cash gains increasing Consolidated Net Income for such period (excluding
any such non-cash gain to the extent it represents the reversal of an accrual
or reserve for potential cash gain in any prior period). For purposes of
calculating the financial covenant in Section 6.7(b), Consolidated
Adjusted EBITDA (i) shall be adjusted in accordance with Section 6.7(d) and
(ii) shall be deemed to be $73,177,000 for the Fiscal Quarter ended September 30,
2007 and $68,949,000 for the Fiscal Quarter ended December 31, 2007.

 

“Consolidated Capital Expenditures” means, for any period, the aggregate of
all expenditures of Holdings and its Subsidiaries made during such period
determined on a consolidated basis that, in accordance with GAAP, are or should
be included in “purchase of property and equipment” or similar items reflected
in the consolidated statement of cash flows of Holdings and its Subsidiaries; provided
that Consolidated Capital Expenditures shall not include (i) the purchase
price paid in connection with a Permitted Acquisition, (ii) expenditures
made pursuant to any election to apply Net Asset Sale Proceeds or Net
Insurance/Condemnation Proceeds to acquire assets as contemplated by the
provisos to Section 2.14(a) and 2.14(b), (iii) the non-cash
consideration transferred or disposed of in connection with a Permitted
Operating Asset Swap, (iv) any Specified Investment, (v) expenditures
made in leasehold improvements, to the extent reimbursed by the landlord, (vi) expenditures
to the extent that they are actually paid for by a third party (excluding any
Credit Party) and for which no Credit Party has provided or is required to
provide or incur, directly or indirectly, any consideration or monetary
obligation to such third party or any other Person (whether before, during or
after such period) and (vii) property, plant and equipment taken in
settlement of accounts.

 

“Consolidated Current Assets” means, as at any date of determination,
the total assets of Holdings and its Subsidiaries on a consolidated basis that
may properly be classified as current assets in conformity with GAAP, excluding
Cash and Cash Equivalents.

 

“Consolidated Current Liabilities” means, as at any date of determination,
the total liabilities of Holdings and its Subsidiaries on a consolidated basis
that may properly be classified as current liabilities in conformity with GAAP,
excluding the current portion of long term debt.

 

“Consolidated Excess Cash Flow” means, for any period, an amount (if
positive) equal to: (i) the sum, without duplication, of the amounts for
such period of (a) Consolidated Adjusted EBITDA, plus (b) the
Consolidated Working Capital Adjustment, minus (ii) the sum,
without duplication, of the amounts for such period paid in cash from operating
cash flow of (a) scheduled repayments of Indebtedness for borrowed money
and scheduled repayments of obligations under Capital Leases (excluding any
interest expense portion thereof), (b) Consolidated Capital Expenditures
(net of any proceeds of (y) any related financings with

 

9

 

respect to such
expenditures and (z) any sales of assets used to finance such
expenditures), (c) Consolidated Interest Expense, (d) provisions for
current taxes based on income of Holdings and its Subsidiaries and payable in
cash with respect to such period, (e) the aggregate amount of
consideration to be paid in cash during such period for Permitted Acquisitions
to the extent not financed (x) by incurring Indebtedness that, in
accordance with GAAP, constitutes a long-term liability, (y) with the Net
Asset Sale Proceeds or Net Insurance/Condemnation Proceeds of prepayment events
described in Section 2.14 hereof or (z) with the proceeds from the
issuance of Equity Interests, (f) the amount of any expenses related to
severance costs, facility closure and related restructuring costs incurred in
connection with the Acquisition and paid within 18 months of the Closing
Date by any of Holdings, Borrower or its Subsidiaries which expenses are not
otherwise deducted in calculating the Consolidated Net Income of Holdings,
Borrower and its consolidated Subsidiaries as a result of the application of
purchase accounting principles and (g) the amount of any costs, fees,
expenses and one time payments made related to any Permitted Acquisition and
paid within 18 months of the date of consummation of such Permitted Acquisition
by any of Holdings, Borrower or its Subsidiaries which expenses are not
otherwise deducted in calculating the Consolidated Net Income of Holdings,
Borrower and its consolidated Subsidiaries.

 

“Consolidated Interest Expense” means, for any period, total interest
expense (including that portion attributable to Capital Leases in accordance
with GAAP and capitalized interest), net of total interest income, of Holdings
and its Subsidiaries on a consolidated basis with respect to all outstanding
Indebtedness of Holdings and its Subsidiaries, including all commissions,
discounts and other fees and charges owed with respect to letters of credit and
net costs and benefits under Interest Rate Agreements, but excluding, however,
any amount not payable in cash and any amounts referred to in Sections 2.11(a) and
2.11(b) payable on or before the Closing Date; provided that for
calculations for any four Fiscal Quarter period ending on or prior to December 31,
2008, the Consolidated Interest Expense of Holdings and its Subsidiaries shall
be deemed to be the product of (i) such amounts from and including the
Closing Date through and including the last day of the applicable period,
respectively, multiplied by (ii) a fraction of which the numerator is 365
and the denominator of which is the number of days elapsed in the period from
and including the Closing Date through and including the last day of the
applicable period.

 

“Consolidated Net Income” means, for any period, (i) the net
income (or loss) of Holdings and its Subsidiaries on a consolidated basis for
such period taken as a single accounting period determined in conformity with
GAAP, minus (ii) (a) the income (or loss) of any Person (other
than a Subsidiary of Holdings) in which any other Person (other than Holdings
or any of its Subsidiaries) has a joint interest, except to the extent of the
amount of dividends or other distributions actually paid to Holdings or any of
its Subsidiaries by such Person during such period, (b) the income (or
loss) of any Person accrued prior to the date it becomes a Subsidiary of
Holdings or is merged into or consolidated with Holdings or any of its
Subsidiaries or that Person’s assets are acquired by Holdings or any of its
Subsidiaries, (c) the income of any Subsidiary of Holdings to the extent
that the declaration or payment of dividends or similar distributions by that
Subsidiary of that income is not at the time permitted by operation of the
terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to that Subsidiary, (d) any
after-tax gains or losses attributable to Asset Sales or returned surplus
assets of any Pension Plan, and (e) (to the extent

 

10

 

not included in clauses (a) through
(d) above) any net extraordinary gains or net extraordinary losses.

 

“Consolidated Total Debt” means, as of any date of determination, (a) the
aggregate stated balance sheet amount of all Indebtedness of Holdings and its
Subsidiaries, determined on a consolidated basis in accordance with GAAP minus (b) the
lesser of (i) the aggregate amount of cash and Cash Equivalents (in each
case, free and clear of all Liens, other than nonconsensual Liens permitted by Section 6.2),
included in the consolidated balance sheet of Holdings and its Subsidiaries as
of such date and (ii) $35,000,000.

 

“Consolidated Working Capital” means, as at any date of determination,
the excess of Consolidated Current Assets over Consolidated Current
Liabilities.

 

“Consolidated Working Capital
Adjustment”
means, for any period on a consolidated basis, the amount (which may be a
negative number) by which Consolidated Working Capital as of the beginning of
such period exceeds (or is less than) Consolidated Working Capital as of the
end of such period.

 

“Contractual Obligation” means, as applied to any Person, any
provision of any Security issued by that Person or of any indenture, mortgage,
deed of trust, contract, undertaking, agreement or other instrument to which
that Person is a party or by which it or any of its properties is bound or to
which it or any of its properties is subject.

 

“Contributing Guarantors” as defined in Section 7.2.

 

“Conversion/Continuation Date” means the effective date of a
continuation or conversion, as the case may be, as set forth in the applicable
Conversion/Continuation Notice.

 

“Conversion/Continuation Notice” means a Conversion/Continuation Notice
substantially in the form of Exhibit A-2.

 

“Counterpart Agreement” means a Counterpart Agreement
substantially in the form of Exhibit H delivered by a Credit Party
pursuant to Section 5.10.

 

“Credit Document” means any of this Agreement, the Notes,
if any, the Collateral Documents, the Intercreditor Agreement, the Post-Closing
Agreement, and all other documents, instruments or agreements executed and
delivered by a Credit Party for the benefit of any Agent or any Lender in connection
herewith on or after the date hereof.

 

“Credit Extension” means the making of a Loan (it being
understood that the continuation or conversion of a borrowing does not
constitute the making of a Loan).

 

“Credit Party” means each of Borrower and the
Guarantors.

 

“Currency Agreement” means any foreign exchange contract,
currency swap agreement, futures contract, option contract, synthetic cap or
other similar agreement or arrangement, each of which is for the purpose of
hedging the foreign currency risk associated with Holdings’ and its
Subsidiaries’ operations and not for speculative purposes.

 

11

 

“Default” means a condition or event that, after
notice or lapse of time or both, would constitute an Event of Default.

 

“Deposit Account” means a demand, time, savings, passbook
or like account with a bank, savings and loan association, credit union or like
organization, other than an account evidenced by a negotiable certificate of
deposit.

 

“Discharge of First Lien Obligations” has the meaning assigned to that term in
the Intercreditor Agreement.

 

“Disqualified Equity Interests” means any
Equity Interest which, by its terms (or by the terms of any security or other
Equity Interests into which it is convertible or for which it is exchangeable),
or upon the happening of any event or condition (i) matures or is
mandatorily redeemable (other than solely for Equity Interests which are not
otherwise Disqualified Equity Interests), pursuant to a sinking fund obligation
or otherwise, (ii) is redeemable at the option of the holder thereof
(other than solely for Equity Interests which are not otherwise Disqualified
Equity Interests), in whole or in part, (iii) provides for scheduled
payments or dividends in Cash, or (iv) is convertible into or exchangeable
at the option of the holder for Indebtedness (other than Subordinated
Indebtedness) or any other Equity Interests that would constitute Disqualified
Equity Interests, in each case, prior to the date that is 91 days after the
Maturity Date, except if as a result of a change of control or asset sale, so
long as any rights of the holders thereof upon the occurrence of such a change
of control or asset sale event are subject to the prior payment in full of all
Obligations (other than contingent obligations for which no claim has been
made), unless the Requisite Lenders shall have otherwise agreed; provided,
that if such Equity Interests are issued to any plan for the benefit of
employees of Holdings or its Subsidiaries or by any such plan to such
employees, such Equity Interests shall not constitute Disqualified Equity
Interests solely because they may be required to be repurchased in order to
satisfy applicable statutory or regulatory obligations.

 

“Documentation Agent” as defined in the preamble hereto.

 

“Dollars” and the sign “$” mean the lawful money of the United States of America.

 

“Domestic Subsidiary” means any Subsidiary organized under the
laws of the United States of America, any State thereof or the District of Columbia.

 

“Eligible Assignee” means (i) any Lender, any Affiliate
of any Lender and any Related Fund (any two or more Related Funds being treated
as a single Eligible Assignee for all purposes hereof), and (ii) any
commercial bank, insurance company, investment or mutual fund or other entity
that is an “accredited investor” (as defined in Regulation D under the
Securities Act) and which extends credit or buys loans; provided, no
Affiliate of Holdings shall be an Eligible Assignee.

 

“Eligible Swap Assets” means, in the case of a Permitted
Operating Asset Swap, assets constituting warehousing or distribution
facilities (including any related equipment and interests in real property
associated therewith).

 

12

 

“Employee Benefit Plan” means any “employee benefit plan” as
defined in Section 3(3) of ERISA which is or was sponsored,
maintained or contributed to by, or required to be contributed by, Holdings,
any of its Subsidiaries or any of their respective ERISA Affiliates.

 

“Environmental Claim” means any investigation, notice, notice
of violation, claim, action, suit, proceeding, demand, abatement order or other
order or directive (conditional or otherwise), by any Governmental Authority or
any other Person, arising (i) pursuant to or in connection with any actual
or alleged violation of any Environmental Law; (ii) in connection with any
Hazardous Materials or any actual or alleged Hazardous Materials Activity; or (iii) in
connection with any actual or alleged damage, injury, threat or harm to health,
safety, natural resources or the environment.

 

“Environmental Laws” means any and all current or future
foreign or domestic, federal or state (or any subdivision of either of them),
statutes, ordinances, orders, rules, regulations, judgments, Governmental
Authorizations, or any other requirements of Governmental Authorities relating
to (i) environmental matters, including those relating to any Hazardous
Materials Activity; (ii) the generation, use, storage, transportation or
disposal of Hazardous Materials; or (iii) occupational safety and health,
industrial hygiene, land use or the protection of human health or welfare, in
any manner applicable to Holdings or any of its Subsidiaries or any Facility.

 

“Equity Contribution” means (i) cash common equity
investments in Holdings by Parent, which cash is then contributed by Holdings
to Borrower and (ii) the receipt of Equity Interests in Parent by Seller
(valuing such Equity Interests in Parent at the Average Trading Price (as defined
in the Acquisition Agreement) and treating, for this purpose, the value of such
Equity Interests in Parent as being part of the pro forma capitalization of
Borrower), in each case on terms and conditions reasonably satisfactory to
Administrative Agent, in an aggregate amount equal to not less than 42.8% (or
such lesser percentage as may result from the exercise of conversion rights
and/or additional borrowings to fund conversion rights) of the pro forma
capitalization of Borrower after consummation of the Acquisition.

 

“Equity Interests” means any and all shares, interests,
participations or other equivalents (however designated) of capital stock of a
corporation, any and all equivalent ownership interests in a Person (other than
a corporation), including partnership interests and membership interests, and
any and all warrants, rights or options to purchase or other arrangements or
rights to acquire any of the foregoing.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, as amended from time to time, and any successor thereto.

 

“ERISA Affiliate” means, as applied to any Person, (i) any
corporation which is a member of a controlled group of corporations within the
meaning of Section 414(b) of the Internal Revenue Code of which that
Person is a member; (ii) any trade or business (whether or not
incorporated) which is a member of a group of trades or businesses under common
control within the meaning of Section 414(c) of the Internal Revenue
Code of which that Person is a member; and (iii) any member of an
affiliated service group within the meaning of Section 414(m) or (o) of
the Internal Revenue Code of which that Person, any corporation described in

 

13

 

clause (i) above or
any trade or business described in clause (ii) above is a member.  Any former ERISA Affiliate of Holdings or any
of its Subsidiaries shall continue to be considered an ERISA Affiliate of
Holdings or any such Subsidiary within the meaning of this definition with respect
to the period such entity was an ERISA Affiliate of Holdings or such Subsidiary
and with respect to liabilities arising after such period for which Holdings or
such Subsidiary could be liable under the Internal Revenue Code or ERISA.

 

“ERISA Event” means (i) a “reportable event”
within the meaning of Section 4043 of ERISA and the regulations issued
thereunder with respect to any Pension Plan (excluding those for which the
provision for 30-day notice to the PBGC has been waived by regulation); (ii) the
failure to meet the minimum funding standard of Section 412 of the
Internal Revenue Code with respect to any Pension Plan (whether or not waived
in accordance with Section 412(c) of the Internal Revenue Code) or
the failure to make by its due date a required installment under Section 430(j) of
the Internal Revenue Code with respect to any Pension Plan or the failure to
make any required contribution to a Multiemployer Plan; (iii) the
provision by the administrator of any Pension Plan pursuant to Section 4041(a)(2) of
ERISA of a notice of intent to terminate such plan in a distress termination
described in Section 4041(c) of ERISA; (iv) the withdrawal by
Holdings, any of its Subsidiaries or any of their respective ERISA Affiliates
from any Pension Plan with two or more contributing sponsors or the termination
of any such Pension Plan resulting in liability to Holdings, any of its
Subsidiaries or any of their respective Affiliates pursuant to Section 4063
or 4064 of ERISA; (v) the institution by the PBGC of proceedings to
terminate any Pension Plan, or the occurrence of any event or condition which
might constitute grounds under ERISA for the termination of, or the appointment
of a trustee to administer, any Pension Plan; (vi) the imposition of
liability on Holdings, any of its Subsidiaries or any of their respective ERISA
Affiliates pursuant to Section 4062(e) or 4069 of ERISA or by reason
of the application of Section 4212(c) of ERISA; (vii) the
withdrawal of Holdings, any of its Subsidiaries or any of their respective ERISA
Affiliates in a complete or partial withdrawal (within the meaning of Sections
4203 and 4205 of ERISA) from any Multiemployer Plan if there is any potential
liability therefore, or the receipt by Holdings, any of its Subsidiaries or any
of their respective ERISA Affiliates of notice from any Multiemployer Plan that
it is in reorganization or insolvency pursuant to Section 4241 or 4245 of
ERISA, or that it intends to terminate or has terminated under Section 4041A
or 4042 of ERISA; (viii) the occurrence of an act or omission which could
give rise to the imposition on Holdings, any of its Subsidiaries or any of
their respective ERISA Affiliates of fines, penalties, taxes or related charges
under Chapter 43 of the Internal Revenue Code or under Section 409, Section 502(c),
(i) or (l), or Section 4071 of ERISA in respect of any Employee
Benefit Plan; (ix) the assertion of a material claim (other than routine
claims for benefits) against any Employee Benefit Plan other than a
Multiemployer Plan or the assets thereof, or against Holdings, any of its
Subsidiaries or any of their respective ERISA Affiliates in connection with any
Employee Benefit Plan; (x) receipt from the Internal Revenue Service of
notice of the failure of any Pension Plan (or any other Employee Benefit Plan
intended to be qualified under Section 401(a) of the Internal Revenue
Code) to qualify under Section 401(a) of the Internal Revenue Code,
or the failure of any trust forming part of any Pension Plan to qualify for
exemption from taxation under Section 501(a) of the Internal Revenue
Code; or (xi) the imposition of a Lien
pursuant to Section 430(k) of the Internal Revenue Code or ERISA or a
violation of Section 436 of the Internal Revenue Code with respect to any Pension Plan.

 

14

 

“Eurodollar Rate Loan” means a Loan bearing interest at a rate
determined by reference to the Adjusted Eurodollar Rate.

 

“Event of Default” means each of the conditions or events
set forth in Section 8.1.

 

“Exchange Act” means the Securities Exchange Act of
1934, as amended from time to time, and any successor statute.

 

“Exclusive IP License”
means any license or sublicense pursuant to which a Credit Party grants to any
Person (other than Borrower or any Guarantor Subsidiary) an exclusive right and
license to all or any part of Holdings’ or any of its Subsidiaries’
Intellectual Property (whether now owned or hereafter acquired or licensed) (i) that
has an initial term (including any renewal terms pursuant to a unilateral right
of the licensee or sublicensee to renew) longer than ten (10) years, (ii) that
is fully paid, is royalty free or bears a nominal or substantially below market
royalty rate and (iii) that is not
subject to any territorial limitations.

 

“Existing
Indebtedness” means Indebtedness and other obligations outstanding
under that certain Third Amended and Restated Credit Agreement dated as of May 3,
2007 among Boise Cascade Holdings, L.L.C., Boise Cascade, L.L.C., the lenders
and agents party thereto and JPMorgan Chase Bank, N.A., as administrative
agent, as amended prior to the Closing Date.

 

“Facility” means any real property (including all
buildings, fixtures or other improvements located thereon) now, hereafter or
heretofore owned, leased, operated or used by Holdings or any of its Subsidiaries
or any of their respective predecessors or Affiliates.

 

“Fair Share Contribution Amount” as defined in Section 7.2.

 

“Fair Share” as defined in Section 7.2.

 

“Federal Funds Effective Rate” means for any day, the rate per annum
(expressed as a decimal, rounded upwards, if necessary, to the next higher
1/100 of 1%) equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided, (i) if
such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (ii) if no such rate is
so published on such next succeeding Business Day, the Federal Funds Rate for
such day shall be the average rate charged to Administrative Agent, in its  capacity as a Lender, on such day on such
transactions as determined by Administrative Agent.

 

“Fee Letter” means the Amended and Restated Fee Letter dated November 2,
2007 among Aldabra, GSCP, Lehman Brothers and LCPI.

 

“Financial Officer Certification” means, with respect to the financial statements
for which such certification is required, the certification of the chief
financial officer, treasurer, assistant treasurer, principal accounting officer
or controller of Holdings that such financial

 

15

 

statements fairly
present, in all material respects, the financial condition of Holdings and its
Subsidiaries as at the dates indicated and the results of their operations and
their cash flows for the periods indicated, subject to the absence of footnotes
(in the case of quarterly financial statements) and changes resulting from
audit and normal year-end adjustments.

 

“Financial Plan” as defined in Section 5.1(i).

 

“First Lien Collateral Agent” means the collateral agent under the
First Lien Credit Agreement.

 

“First Lien Credit Agreement” means the Credit and Guaranty Agreement
dated as of the date hereof among Borrower, Holdings, the
other Guarantors party thereto, the lenders party thereto, GSCP, as
administrative agent, collateral agent and syndication agent, and the other
agents party thereto, as it may be amended, restated, supplemented, modified, replaced or Refinanced from time to
time.

 

“Fiscal Quarter” means a fiscal quarter of any Fiscal
Year.

 

“Fiscal Year” means the fiscal year of Holdings and
its Subsidiaries ending on December 31 of each calendar year.

 

“Flood Hazard Property” means any Real Estate Asset subject to a
mortgage in favor of Collateral Agent, for the benefit of the Secured Parties,
and located in an area designated by the Federal Emergency Management Agency as
having special flood or mud slide hazards.

 

“Foreign Subsidiary” means any Subsidiary that is not a
Domestic Subsidiary.

 

“Funding Guarantors” as defined in Section 7.2.

 

“Funding Notice” means a notice substantially in the form
of Exhibit A-1.

 

“GAAP” means, subject to the limitations on the application
thereof set forth in Section 1.2, United States generally accepted
accounting principles in effect as of the date of determination thereof.

 

“Governmental Acts” means any act or omission, whether
rightful or wrongful, of any present or future de jure or de facto government
or Governmental Authority.

 

“Governmental Authority” means any federal, state, municipal,
national or other government, governmental department, commission, board,
bureau, court, agency or instrumentality or political subdivision thereof or
any entity, officer or examiner exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to any government or
any court, in each case whether associated with a state of the United States,
the United States, or a foreign entity or government.

 

“Governmental Authorization” means any permit, license,
authorization, plan, directive, consent order or consent decree of or from any Governmental
Authority.

 

16

 

“Grantor” as defined in the Pledge and Security
Agreement.

 

“GSCP” as defined in the preamble hereto.

 

“Guaranteed Obligations” as defined in Section 7.1.

 

“Guarantor” means each of Holdings, each Domestic
Subsidiary of Borrower and, to the extent (x) no material adverse tax
consequences to Holdings or Borrower would result therefrom and (y) reasonably
requested by the Administrative Agent (with a corresponding request by the
administrative agent under the First Lien Credit Agreement), each Foreign
Subsidiary of Borrower.

 

“Guarantor Subsidiary” means each Guarantor other than
Holdings.

 

“Guaranty” means the guaranty of each Guarantor set
forth in Section 7.

 

“Hazardous Materials” means any chemical, material or
substance, exposure to which is prohibited, limited or regulated by any
Governmental Authority or which may or could pose a hazard to the health and
safety of the owners, occupants or any Persons in the vicinity of any Facility
or to the environment.

 

“Hazardous Materials Activity” means any past, current, proposed or
threatened activity, event or occurrence involving any Hazardous Materials,
including the use, manufacture, possession, storage, holding, presence,
existence, location, Release, threatened Release, discharge, placement,
generation, transportation, processing, construction, treatment, abatement,
removal, remediation, disposal, disposition or handling of any Hazardous
Materials, and any corrective action or response action with respect to any of
the foregoing.

 

“Hedge Agreement” has the meaning assigned to that term in
the First Lien Credit Agreement.

 

“Highest Lawful Rate” means the maximum lawful interest rate,
if any, that at any time or from time to time may be contracted for, charged,
or received under the laws applicable to any Lender which are presently in
effect or, to the extent allowed by law, under such applicable laws which may
hereafter be in effect and which allow a higher maximum nonusurious interest rate
than applicable laws now allow.

 

“Historical Financial Statements” means as of the Closing Date, (i) the
audited financial statements of the Acquired Business, for the fiscal years
ended December 31, 2005 and December 31, 2006, consisting of balance
sheets and the related consolidated statements of income, stockholders’ equity
and cash flows for such fiscal years, (ii) the unaudited financial
statements of the Acquired Business for each fiscal quarter of the Acquired
Business ended after December 31, 2006 and at least 45 days prior to the
Closing Date (other than with respect to the fiscal quarter ended December 31,
2007), consisting of a balance sheet and the related consolidated statements of
income, stockholders’ equity and cash flows for the three-, six-or nine-month
period, as applicable, ending on the last day of the applicable fiscal quarter,
and (iii) the unaudited income statements and balance sheets of Boise
White Paper, L.L.C. and its Subsidiaries and Boise Packaging &
Newsprint, L.L.C. for each fiscal month, together with a

 

17

 

summary of Consolidated
Adjusted EBITDA for the last twelve months (including specified adjustments
thereto), in each case ended after the date of the most recent quarterly
financial statements referred to in clause (ii) above and at least 30 days
prior to the Closing Date.

 

“Holdings” as defined in the preamble hereto.

 

“Immaterial Subsidiaries” means, at any time, Subsidiaries that,
on a consolidated basis with their respective Subsidiaries and treated as if
all such Subsidiaries and their respective Subsidiaries were combined and
consolidated as a single Subsidiary, (a) had consolidated assets
representing less than 2% of the consolidated assets of Holdings and its
Subsidiaries as of the last day of the most recently ended Fiscal Quarter for
which financial statements are available, (b) accounted for less than 2%
of the consolidated revenues of Holdings and its Subsidiaries for the period of
four consecutive Fiscal Quarters most recently ended for which financial
statements are available and (c) accounted for less than 2% of
Consolidated Adjusted EBITDA of Holdings and its Subsidiaries for the period of
four consecutive Fiscal Quarters most recently ended for which financial
statements are available.

 

“Increased-Cost Lenders” as defined in Section 2.23.

 

“Indebtedness”, as applied to any Person, means,
without duplication, (i) all indebtedness for borrowed money; (ii) that
portion of obligations with respect to Capital Leases that is properly
classified as a capitalized liability on a balance sheet in conformity with
GAAP; (iii) notes payable and drafts accepted representing extensions of
credit whether or not representing obligations for borrowed money; (iv) any
obligation owed for all or any part of the deferred purchase price of property
or services (excluding any such obligations incurred under ERISA), including
any earn-out obligations incurred in connection with any Permitted Acquisition (A) to
the extent of the reserve, if any, required under GAAP at the time of such
Permitted Acquisition to be established in respect thereof by Holdings or any
of its Subsidiaries or (B) included on the balance sheet of Holdings or
any of its Subsidiaries, which purchase price is (a) due more than six
months from the date of incurrence of the obligation in respect thereof or (b) evidenced
by a note or similar written instrument (excluding accounts payable due within
one year and accrued expenses, in each case incurred in the ordinary course of
business); (v) all indebtedness secured by any Lien on any property or
asset owned or held by that Person regardless of whether the indebtedness
secured thereby shall have been assumed by that Person or is nonrecourse to the
credit of that Person; provided that if recourse for such Indebtedness
is limited to such property, the amount of Indebtedness arising under this
clause (v) shall be limited to the lesser of (a) the outstanding
principal amount thereof and (b) the fair market value of the property subject
to such Lien; (vi) the face amount of any letter of credit issued for the
account of that Person or as to which that Person is otherwise liable for
reimbursement of drawings other than (A) reimbursement obligations in
respect of letters of credit, the payment of which is either backed by a Letter
of Credit (as defined in the First Lien Credit Agreement) or cash
collateralized, (B) commercial letters of credit (other than, for the
avoidance of doubt, any Letter of Credit (as defined in the First Lien Credit
Agreement)) issued in support of accounts payable that do not otherwise
constitute Indebtedness or “timber under contract” agreements entered into in
the ordinary course of business and (C) standby letters of credit (other
than, for the avoidance of doubt, any Letter of Credit (as defined in the First
Lien Credit Agreement)) issued in support of operating leases, insurance premia
and other amounts that do not constitute Indebtedness

 

18

 

unless and until the
beneficiary thereof has the right to draw on such standby letter of credit); (vii) Disqualified
Equity Interests, (viii) the direct or indirect guaranty, endorsement
(otherwise than for collection or deposit in the ordinary course of business),
co-making, discounting with recourse or sale with recourse by such Person of
Indebtedness of another; (ix) any obligation of such Person the primary
purpose or intent of which is to provide assurance to an obligee that
Indebtedness of the obligor thereof will be paid or discharged, or any
agreement relating thereto will be complied with, or the holders thereof will
be protected (in whole or in part) against loss in respect thereof; (x) any
liability of such Person for Indebtedness of another through any agreement
(contingent or otherwise) (a) to purchase, repurchase or otherwise acquire
such Indebtedness or any security therefor, or to provide funds for the payment
or discharge of such Indebtedness (whether in the form of loans, advances,
stock purchases, capital contributions or otherwise) or (b) to maintain
the solvency or any balance sheet item, level of income or financial condition
of another if, in the case of any agreement described under subclauses (a) or
(b) of this clause (x), the primary purpose or intent thereof is as
described in clause (ix) above; and (xi) all obligations of such Person in
respect of any exchange traded or over the counter derivative transaction,
including any Interest Rate Agreement and Currency Agreement, whether entered
into for hedging or speculative purposes; provided, in no event shall
obligations under any Interest Rate Agreement and any Currency Agreement be
deemed “Indebtedness” for any purpose under Section 6.7.

 

“Indemnified Liabilities” means, collectively, any and all liabilities,
obligations, losses, damages (including natural resource damages), penalties,
claims (including Environmental Claims), actions, judgments, suits, reasonable
out-of-pocket costs (including the costs of any investigation, study, sampling,
testing, abatement, cleanup, removal, remediation or other response action
necessary to remove, remediate, clean up or abate any Hazardous Materials
Activity), reasonable out-of-pocket expenses and disbursements of any kind or
nature whatsoever (including the reasonable fees and disbursements of counsel
for Indemnitees in connection with any investigative, administrative or
judicial proceeding or hearing commenced or threatened by any Person, whether
or not any such Indemnitee shall be designated as a party or a potential party
thereto, and any reasonable out-of-pocket fees or expenses incurred by
Indemnitees in enforcing this indemnity; provided that reasonable
attorney’s fees shall be limited to one primary counsel for all Indemnitees
and, if reasonably required by Administrative Agent, one local or specialist
counsel for all Indemnitees in each relevant jurisdiction, provided further
that if counsel for Administrative Agent determines in good faith that there is
an actual or potential conflict of interest that requires separate
representation for the Agents, Borrower shall be required to pay for one
additional counsel for all such Agents taken as a whole), whether direct,
indirect or consequential and whether based on any federal, state or foreign
laws, statutes, rules or regulations (including securities and commercial
laws, statutes, rules or regulations and Environmental Laws), on common
law or equitable cause or on contract or otherwise, that may be imposed on,
incurred by, or asserted against any such Indemnitee, in any manner relating to
or arising out of (i) this Agreement or the other Credit Documents or the
transactions contemplated hereby or thereby (including the Lenders’ agreement
to make Credit Extensions or the use or intended use of the proceeds thereof,
or any enforcement of any of the Credit Documents (including any sale of,
collection from, or other realization upon any of the Collateral or the
enforcement of the Guaranty)) or (ii) any Environmental Claim or any
Hazardous Materials Activity relating to or arising from, directly or
indirectly, any past or present activity, operation, land ownership, or
practice of Holdings or any of its Subsidiaries.

 

19

 

“Indemnitee” as defined in Section 10.3.

 

“Intellectual Property” as defined in the Pledge and Security
Agreement.

 

“Intellectual Property Security Agreements” has the meaning assigned to that term in
the Pledge and Security Agreement.

 

“Intercompany Note” means a promissory note substantially in the form of Exhibit L
evidencing Indebtedness owed among the Credit Parties and their Subsidiaries.

 

“Intercreditor Agreement” means that
certain Intercreditor Agreement to be executed by the Collateral Agent,
Borrower, and the First Lien Collateral Agent substantially in the form of Exhibit M, as it may
be amended, supplemented or otherwise modified from time to time

 

“Interest Payment Date” means with respect to (i) any Loan
that is a Base Rate Loan, each March 31, June 30, September 30
and December 31 of each year, commencing on the first such date to occur
after the Closing Date and the final maturity date of such Loan; and (ii) any
Loan that is a Eurodollar Rate Loan, the last day of each Interest Period
applicable to such Loan; provided, in the case of each Interest Period
of longer than three months “Interest Payment Date” shall also include each
date that is three months, or an integral multiple thereof, after the
commencement of such Interest Period.

 

“Interest Period” means, in connection with a Eurodollar
Rate Loan, an interest period of one-, two-, three- or six-months (or, if
available to all applicable Lenders, nine- or twelve-months), as selected by
Borrower in the applicable Funding Notice or Conversion/Continuation Notice, (i) initially,
commencing on the Closing Date or Conversion/Continuation Date thereof, as the
case may be; and (ii) thereafter, commencing on the day on which the
immediately preceding Interest Period expires; provided, (a) if an
Interest Period would otherwise expire on a day that is not a Business Day,
such Interest Period shall expire on the next succeeding Business Day unless no
further Business Day occurs in such month, in which case such Interest Period
shall expire on the immediately preceding Business Day; (b) any Interest
Period that begins on the last Business Day of a calendar month (or on a day
for which there is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall, subject to clause (c) of this
definition, end on the last Business Day of a calendar month; and (c) no
Interest Period shall extend beyond the Maturity Date.

 

“Interest Rate Agreement” means any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement, interest rate
hedging agreement or other similar agreement or arrangement, each of which is
for the purpose of hedging the interest rate exposure associated with Holdings’
and its Subsidiaries’ operations and not for speculative purposes.

 

“Interest Rate Determination Date” means, with respect to any Interest
Period, the date that is two Business Days prior to the first day of such
Interest Period.

 

“Internal Revenue Code” means the Internal Revenue Code of 1986,
as amended to the date hereof and from time to time hereafter, and any
successor statute.

 

20

 

“Investment” means (i) any direct or indirect
purchase or other acquisition by Holdings or any of its Subsidiaries of, or of
a beneficial interest in, any of the Securities of any other Person (other than
Borrower or a Guarantor Subsidiary); (ii) any direct or indirect
redemption, retirement, purchase or other acquisition for value, by any
Subsidiary of Holdings from any Person (other than Holdings or any Guarantor
Subsidiary), of any Equity Interests of such Person; and (iii) any direct
or indirect loan, advance (other than (w) advances to employees for
moving, entertainment and travel expenses, (x) drawing accounts, (y) prepayments
of or deposits made in respect of supply contracts and (z) similar
expenses, in each case made in the ordinary course of business) or capital
contributions by Holdings or any of its Subsidiaries to any other Person (other
than Holdings, Borrower or any Guarantor Subsidiary), including all
indebtedness and accounts receivable from that other Person that are not
current assets or did not arise from sales to that other Person in the ordinary
course of business. The amount of any Investment shall be the original cost of
such Investment plus the cost of all additions thereto, without any adjustments
for increases or decreases in value, or write-ups, write-downs or write-offs
with respect to such Investment, but giving effect to any returns of capital
(whether in the form of dividends or otherwise) received by such Person with
respect thereto.

 

“Joint Venture” means a joint venture, partnership or
other similar arrangement, whether in corporate, partnership or other legal
form; provided, in no event shall any corporate Subsidiary of any Person
be considered to be a Joint Venture to which such Person is a party.

 

“Landlord Consent and Estoppel” means, with respect to any Leasehold
Property that is a Mortgaged Property, a letter, certificate or other
instrument in writing from the lessor under the related lease, pursuant to
which, among other things, the landlord consents to the granting of a Mortgage
on such Leasehold Property by the Credit Party tenant, such Landlord Consent
and Estoppel to be in form and substance acceptable to Collateral Agent in its
reasonable discretion, but in any event sufficient for Collateral Agent to
obtain a Title Policy with respect to such Mortgage.

 

“Landlord Personal Property
Collateral Access Agreement” means a Landlord Waiver and Consent Agreement
substantially in the form of Exhibit K with such amendments or
modifications as may be reasonably approved by Collateral Agent.

 

“LCPI” as defined in the preamble hereto.

 

“Leasehold Property” means any leasehold interest of any
Credit Party as lessee under any lease of real property.

 

“Lehman Brothers” as defined in the preamble hereto.

 

“Lender” means each financial institution listed
on the signature pages hereto as a Lender, and any other Person that
becomes a party hereto pursuant to an Assignment Agreement.

 

“Leverage Ratio” means the ratio as of the last day of
any Fiscal Quarter of (i) Consolidated Total Debt as of such day to (ii) Consolidated
Adjusted EBITDA for the four-Fiscal Quarter period ending on such date.

 

21

 

“Lien” means (i) any lien, mortgage, pledge, collateral
assignment, security interest, charge or encumbrance of any kind (including any
agreement to give any of the foregoing, any conditional sale or other title
retention agreement, and any lease or Exclusive IP License in the nature thereof)
and any option, trust or other preferential arrangement having the practical
effect of any of the foregoing and (ii) in the case of Securities, any
purchase option, call or similar right of a third party with respect to such
Securities.

 

“Loan” means a loan made by a Lender to Borrower pursuant to
Section 2.1(a).

 

“Loan Exposure” means, with respect to any Lender, as of
any date of determination, the outstanding principal amount of the Loans of
such Lender; provided, at any time prior to the making of the Loans, the
Loan Exposure of any Lender shall be equal to such Lender’s Commitment.

 

“Make-Whole Premium” means, with respect to a Loan on any
date of prepayment, the present value, as determined by Borrower and certified
by the chief financial officer, treasurer, assistant treasurer, principal
accounting officer or controller of Borrower to the Administrative Agent, of (a) all
required interest payments due on such Loan from the date of prepayment through
and including the Make-Whole Termination Date (excluding accrued interest)
(assuming that the interest rate applicable to all such interest is the swap
rate at the close of business on the third Business Day prior to the date of
such prepayment with the termination date nearest to the Make-Whole Termination
Date plus 7.00%) plus (b) the prepayment premium that would be due if such
prepayment were made on the day after the Make-Whole Termination Date, in each
case discounted to the date of prepayment on a quarterly basis (assuming a
360-day year and actual days elapsed) at a rate equal to the sum of such swap
rate plus 0.50%.

 

“Make-Whole Termination Date” means the third anniversary of the
Closing Date.

 

“Margin Stock” as defined in Regulation U of the
Board of Governors as in effect from time to time.

 

“Material Adverse Change” means any material adverse effect upon (x) the
financial condition or operating results of the Paper Group (as defined in the
Acquisition Agreement) (and their Subsidiaries) or the Business (as defined in
the Acquisition Agreement), taken as a whole, or (y) the ability of Boise
Cascade, L.L.C. and the Acquired Business to consummate the transactions
contemplated by the Acquisition Agreement, except any adverse effect related to
or resulting from (1) general business or economic conditions affecting
the industry in which any member of the Paper Group, any of its Subsidiaries or
the Business operates, (2) national or international political or social
conditions, including the engagement by the United States in hostilities or the
escalation thereof, whether or not pursuant to the declaration of a national
emergency or war, or the occurrence or the escalation of any military or
terrorist attack upon the United States, or any of its territories,
possessions, or diplomatic or consular offices or upon any military
installation, equipment or personnel of the United States, (3) financial,
banking, or securities markets (including any disruption thereof and any
decline in the price of any security or any market index), (4) changes in
GAAP or, solely as a result of changes in GAAP or SAAP (as defined in the
Acquisition Agreement), (5) changes in laws,

 

22

 

rules, regulations,
orders, or other binding directives issued by any Governmental Entity (as defined
in the Acquisition Agreement), (6) the taking of any action contemplated
by the Acquisition Agreement or the announcement of the Acquisition Agreement
or the transactions contemplated thereby, (7) any existing event,
occurrence, or circumstance with respect to which Parent or Borrower has
knowledge as of the date of the Commitment Letter (including any matter set
forth in the Seller Disclosure Letter (as defined in the Acquisition
Agreement)) or (8) Parent’s and/or Borrower’s failure to consent to any of
the actions restricted by Section 3B of the Acquisition Agreement (except in the
case of each of the immediately preceding clause (1), (2), (3), (4) and
(5), any such adverse
effect which has a materially disproportionate effect on the Acquired Business
and its Subsidiaries, taken as a whole, relative to the effect on other companies operating in the same
industry).

 

“Material Adverse Effect” means a material adverse effect on
and/or material adverse developments with respect to (i) the business,
results of operations, assets or financial condition of Holdings and its
Subsidiaries taken as a whole; (ii) the ability of any Credit Party to
perform any of its material Obligations under the Credit Documents; (iii) the
legality, validity, binding effect or enforceability against a Credit Party of
a material Credit Document to which it is a party; or (iv) the rights,
remedies and benefits available to, or conferred upon, any Agent and any Lender
or any Secured Party under any material Credit Document.

 

“Material Contract” means any contract or other arrangement
to which Holdings or any of its Subsidiaries is a party (other than the Credit
Documents, the Credit Documents (as defined in the First Lien Credit Agreement)
and the Acquisition Agreement) for which breach, nonperformance, cancellation
or failure to renew could reasonably be expected to have a Material Adverse
Effect.

 

“Material Real Estate Asset’’ means (i) any fee-owned Real Estate
Asset having a fair market value in excess of $2,000,000 as of the date of the
acquisition thereof and (ii) all Leasehold Properties other than (x) the
corporate headquarters of the Acquired Business and (y) those with respect
to which the aggregate payments under the term of the lease are less than
$2,000,000 per annum.

 

“Material Subsidiary” means any Subsidiary that is not an
Immaterial Subsidiary.

 

“Maturity Date” means the earlier of (i) the
seventh anniversary of the Closing Date, and (ii) the date that all Loans
shall become due and payable in full hereunder, whether by acceleration or
otherwise.

 

“Moody’s” means Moody’s Investor Services, Inc.

 

“Mortgage” means a Mortgage substantially in the
form of Exhibit J, as it may be amended, supplemented or otherwise
modified from time to time.

 

“Multiemployer Plan” means any Employee Benefit Plan which is
a “multiemployer plan” as defined in Section 3(37) of ERISA.

 

23

 

“NAIC” means The National Association of Insurance
Commissioners, and any successor thereto.

 

“Narrative Report” means, with respect to the financial
statements for which such narrative report is required, a narrative report
describing the operations of Holdings and its Subsidiaries in the form prepared
for presentation to senior management thereof for the applicable month, Fiscal
Quarter or Fiscal Year and for the period from the beginning of the then
current Fiscal Year to the end of such period to which such financial
statements relate.

 

“Net Asset Sale Proceeds” means, with respect to any Asset Sale,
an amount equal to:  (i) Cash
payments (including any Cash received by way of deferred payment pursuant to,
or by monetization of, a note receivable or otherwise, but only as and when so
received) received by Holdings or any of its Subsidiaries from such Asset Sale,
minus (ii) any bona fide direct costs incurred in connection with
such Asset Sale, including (a) all bona fide fees and expenses paid by any
of Holdings or its Subsidiaries to third parties in connection with such Asset
Sale, (b) income or gains taxes payable by the seller as a result of any
gain recognized in connection with such Asset Sale, (c) payment of the
outstanding principal amount of, premium or penalty, if any, and interest on
any Indebtedness (other than the Loans) that is secured by a Lien on the stock
or assets in question and that is required to be repaid under the terms thereof
as a result of such Asset Sale and (d) a reasonable reserve for any
indemnification payments (fixed or contingent) attributable to seller’s
indemnities and representations and warranties to purchaser in respect of such
Asset Sale undertaken by Holdings or any of its Subsidiaries in connection with
such Asset Sale.

 

“Net Insurance/Condemnation Proceeds” means an amount equal to:  (i) any Cash payments or proceeds
received by Holdings or any of its Subsidiaries (a) under any casualty
insurance policy in respect of a covered loss thereunder or (b) as a
result of the taking of any assets of Holdings or any of its Subsidiaries by
any Person pursuant to the power of eminent domain, condemnation or otherwise,
or pursuant to a sale of any such assets to a purchaser with such power under
threat of such a taking, minus (ii) (a) any actual and
reasonable costs incurred by Holdings or any of its Subsidiaries in connection
with the adjustment or settlement of any claims of Holdings or such Subsidiary
in respect thereof, and (b) any bona fide direct costs incurred in
connection with any sale of such assets as referred to in clause (i)(b) of
this definition, including income taxes payable as a result of any gain
recognized in connection therewith and payment of the outstanding principal
amount of, premium or penalty, if any, and interest on any Indebtedness (other
than the Loans) that is secured by a Lien on the assets in question and that is
required to be repaid under the terms thereof as a result of such casualty or
condemnation or such sale in lieu thereof.

 

“Non-Consenting Lender” as defined in Section 2.23.

 

“Nonpublic Information” means information which has not been
disseminated in a manner making it available to investors generally, within the
meaning of Regulation FD.

 

“Non-US Lender” as defined in Section 2.20(e).

 

24

 

“Note” means a
promissory note substantially in the form of Exhibit B, as it may be
amended, supplemented or otherwise modified from time to time.

 

“Notice” means a
Funding Notice or a Conversion/ Continuation Notice.

 

“Obligations” means
all obligations of every nature of each Credit Party, including obligations
from time to time owed to the Agents (including former Agents), the Lenders or
any of them, under any Credit Document, whether for principal, interest
(including interest which, but for the filing of a petition in bankruptcy with
respect to such Credit Party, would have accrued on any Obligation, whether or
not a claim is allowed against such Credit Party for such interest in the
related bankruptcy proceeding), fees, expenses, indemnification or otherwise.

 

“Obligee Guarantor”
as defined in Section 7.7.

 

“Organizational Documents”
means (i) with respect to any corporation, its certificate or articles of
incorporation or organization, as amended, and its by-laws, as amended, (ii) with
respect to any limited partnership, its certificate of limited partnership, as
amended, and its partnership agreement, as amended, (iii) with respect to
any general partnership, its partnership agreement, as amended, and (iv) with
respect to any limited liability company, its articles of organization, as
amended, and its operating agreement, as amended.  In the event any term or condition of this
Agreement or any other Credit Document requires any Organizational Document to
be certified by a secretary of state or similar governmental official, the
reference to any such “Organizational Document” shall only be to a document of
a type customarily certified by such governmental official.

 

“Other Taxes” means any and all
present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies arising from any payment made hereunder or
from the execution, delivery or enforcement of, or otherwise with respect to,
this Agreement or any other Credit Document.

 

“Parent” means
Boise Inc., a Delaware corporation (formerly known as Aldabra 2 Acquisition
Corp.).

 

“Patriot Act” as defined in Section 3.1(r).

 

“PBGC” means the
Pension Benefit Guaranty Corporation or any successor thereto.

 

“Pension Plan”
means any Employee Benefit Plan, other than a Multiemployer Plan, which is
subject to Section 412 of the Internal Revenue Code or Section 302 of
ERISA.

 

“Permitted Acquisition”
means any acquisition by Borrower or any of its wholly-owned Subsidiaries,
whether by purchase, merger or otherwise, of all or substantially all of the
assets of, all of the Equity Interests of, or a business line or unit or a
division or a manufacturing facility or a distribution facility of, any Person;
provided,

 

25

 

(i)            immediately prior to, and after
giving effect thereto, no Default or Event of Default shall have occurred and
be continuing or would result therefrom;

 

(ii)           all transactions in connection
therewith shall be consummated, in all material respects, in accordance with
all applicable laws and in conformity with all applicable Governmental
Authorizations;

 

(iii)          in the case of the acquisition of
Equity Interests, all of the Equity Interests (except for any such Securities
in the nature of directors’ qualifying shares required pursuant to applicable
law) acquired or otherwise issued by such Person or any newly formed Subsidiary
of Borrower in connection with such acquisition shall be owned 100% by Borrower
or a Guarantor Subsidiary thereof, and Borrower shall have taken, or caused to
be taken, as of the date such Person becomes a Subsidiary of Borrower, each of
the actions set forth in Sections 5.10 and/or 5.11, as applicable;

 

(iv)          Holdings and its Subsidiaries shall be
in compliance with the financial covenant set forth in Section 6.7(b) on
a pro forma basis after giving effect to such acquisition as of the last day of
the Fiscal Quarter most recently ended (as determined in accordance with Section 6.7(d));

 

(v)           Borrower shall have delivered to
Administrative Agent (A) at least 5 Business Days prior to such proposed
acquisition, (i) a Compliance Certificate evidencing compliance with Section 6.7
as required under clause (iv) above and (ii) all other relevant
financial information with respect to such acquired assets, including the
aggregate consideration for such acquisition and any other information required
to demonstrate compliance with Section 6.7 and (B) promptly upon
reasonable request by Administrative Agent, a copy of the purchase agreement
related to the proposed Permitted Acquisition (and any related documents
reasonably requested by Administrative Agent);  and

 

(vi)          the predominant business conducted by
any such Person shall comply with the permitted businesses of Holdings and its
Subsidiaries as provided in Section 6.12.

 

“Permitted Investors”
means (i) Madison Dearborn Partners, LLC, its Affiliates but not
including, however, any operating portfolio companies of any of the foregoing
and investments funds under common management with Madison Dearborn Partners,
LLC or its Affiliates, (ii) OfficeMax Incorporated and (iii) Boise
Cascade Holdings, L.L.C.

 

“Permitted Liens”
means each of the Liens permitted pursuant to Section 6.2.

 

“Permitted Operating Asset Swap”
means any transfer of Eligible Swap Assets by Borrower or any Subsidiary in
which at least 95% of the consideration received by the transferor consists of
Eligible Swap Assets (and any balance of such consideration consists of cash); provided
that (a) after giving effect to such transfer, the aggregate fair market
value of all assets transferred pursuant to Permitted Operating Asset Swaps (i) during
any fiscal year of Borrower, on a cumulative basis, shall not exceed
$20,000,000 and (ii) during the term of this Agreement, on a cumulative
basis, shall not exceed $40,000,000 and (b) all actions required to

 

26

 

be taken pursuant to
Sections 5.10 and/or 5.11, as applicable, with respect to any Eligible
Swap Assets so received as consideration shall be taken.

 

“Person” means and
includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships,
joint stock companies, Joint Ventures, associations, companies, trusts, banks,
trust companies, land trusts, business trusts or other organizations, whether
or not legal entities, and Governmental Authorities.

 

“Platform” as defined in Section 5.1(o).

 

“Pledge and Security Agreement”
means the Pledge and Security Agreement to be executed by Borrower and each
Guarantor substantially in the form of Exhibit I, as it may be amended,
supplemented or otherwise modified from time to time.

 

“Post-Closing Agreement” means
that certain Post-Closing Agreement dated as of the date hereof, among the
Credit Parties and the Collateral Agent, as it may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Prime Rate” means
the rate of interest quoted in The Wall
Street Journal, Money Rates Section as the Prime Rate
(currently defined as the base rate on corporate loans posted by at least 75%
of the nation’s thirty (30) largest banks), as in effect from time to
time.  The Prime Rate is a reference rate
and does not necessarily represent the lowest or best rate actually charged to
any customer.  Any Agent or any other
Lender may make commercial loans or other loans at rates of interest at, above
or below the Prime Rate.

 

“Principal Office”
means Administrative Agent’s “Principal Office” as set forth on Appendix B, or
such other office or office of a third party or sub-agent, as appropriate, as
Administrative Agent may from time to time designate in writing to Borrower and
each Lender.

 

“Projections” as
defined in Section 4.8.

 

“Pro Rata Share”
means with respect to any Lender, the percentage obtained by dividing (a) the
Loan Exposure of that Lender by (b) the aggregate Loan Exposure of all
Lenders.

 

“Real Estate Asset”
means, at any time of determination, any interest (fee, leasehold or otherwise)
then owned by any Credit Party in any real property.

 

“Record Document”
means, with respect to any Leasehold Property that is a Mortgaged Property, (i) the
lease evidencing such Leasehold Property or a memorandum thereof, executed and
acknowledged by the owner of the affected real property, as lessor, or (ii) if
such Leasehold Property was acquired or subleased from the holder of a Recorded
Leasehold Interest, the applicable assignment or sublease document, executed
and acknowledged by such holder, in each case in form sufficient to give such
constructive notice upon recordation and otherwise in form reasonably
satisfactory to Collateral Agent.

 

27

 

“Recorded Leasehold Interest”
means a Leasehold Property with respect to which a Record Document has been
recorded in all places necessary or desirable, in Collateral Agent’s reasonable
judgment, to give constructive notice of such Leasehold Property to third-party
purchasers and encumbrancers of the affected real property.

 

“Refinance” means,
in respect of any Indebtedness, to refinance, extend, renew, defease, amend,
modify, supplement, restructure, replace, refund or repay, or to issue other
indebtedness, in exchange or replacement for, such Indebtedness in whole or in
part.  “Refinanced”
and “Refinancing” shall have correlative
meanings.  All such terms shall include
any subsequent Refinancing of any Indebtedness issued in connection with any
Refinancing.

 

“Register” as
defined in Section 2.7(b).

 

“Regulation D”
means Regulation D of the Board of Governors, as in effect from time to
time.

 

“Regulation FD” means Regulation
FD as promulgated by the US Securities and Exchange Commission under the
Securities and Exchange Act as in effect from time to time.

 

“Regulation S-X” means
Regulation S-X as promulgated by the US Securities and Exchange Commission
under the Securities Act as in effect from time to time.

 

“Related Agreements”
means, collectively, the Acquisition Agreement, the First Lien Credit Agreement
and the Credit Documents (as defined in the First Lien Credit Agreement).

 

“Related Fund”
means, with respect to any Lender that is an investment fund, any other
investment fund that invests in commercial loans and that is managed or advised
by the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

 

“Release” means any
release, spill, emission, leaking, pumping, pouring, injection, escaping,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of any
Hazardous Material into the indoor or outdoor environment (including the abandonment
or disposal of any barrels, containers or other closed receptacles containing
any Hazardous Material), including the movement of any Hazardous Material
through the air, soil, surface water or groundwater.

 

“Replacement Lender”
as defined in Section 2.23.

 

“Required Prepayment Date”
as defined in Section 2.15(b).

 

“Requisite Lenders”
means one or more Lenders having or holding Loan Exposure representing more
than 50% of the aggregate Loan Exposure of all Lenders.

 

“Requisite Supermajority Lenders”
means one or more Lenders having or holding Loan Exposure representing more
than 662/3 % of the aggregate Loan Exposure of all
Lenders.

 

28

 

“Restricted Junior Payment”
means (i) any dividend or other distribution, direct or indirect, on
account of any shares of any class of stock of Holdings or Borrower (or any
direct or indirect parent thereof) now or hereafter outstanding, except a
dividend payable solely in shares of that class of stock to the holders of that
class; (ii) any redemption, retirement, sinking fund or similar payment,
purchase or other acquisition for value, direct or indirect, of any shares of
any class of stock of Holdings or Borrower (or any direct or indirect parent
thereof) now or hereafter outstanding; (iii) any payment made to retire,
or to obtain the surrender of, any outstanding warrants, options or other
rights to acquire shares of any class of stock of Holdings or Borrower (or any
direct or indirect parent thereof) now or hereafter outstanding; (iv) management
or similar fees payable to Parent or any of its Affiliates and (v) any
payment or prepayment of principal of, premium, if any, or interest on, or
redemption, purchase, retirement, defeasance (including in-substance or legal
defeasance), sinking fund or similar payment with respect to, any Subordinated
Indebtedness.

 

“S&P” means
Standard & Poor’s Ratings Group, a division of The McGraw Hill
Corporation.

 

“Second Priority”
means, with respect to any Lien purported to be created in any Collateral
pursuant to any Collateral Document, that such Lien is (i) the only Lien
to which such Collateral is subject, other than any Permitted Lien and (ii) junior
in priority to the Liens created under or relating to the Credit Documents (as
defined in the First Lien Credit Agreement) in accordance with the
Intercreditor Agreement.

 

“Secured Parties”
has the meaning assigned to that term in the Pledge and Security Agreement.

 

“Securities” means
any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or
arrangement, options, warrants, bonds, debentures, notes, or other evidences of
indebtedness, secured or unsecured, convertible, subordinated or otherwise, or
in general any instruments commonly known as “securities” or any certificates
of interest, shares or participations in temporary or interim certificates for
the purchase or acquisition of, or any right to subscribe to, purchase or
acquire, any of the foregoing.

 

“Securities Act”
means the Securities Act of 1933, as amended from time to time, and any
successor statute.

 

“Solvency Certificate” means
a Solvency Certificate of the chief financial officer of Holdings substantially
in the form of Exhibit G-2.

 

“Solvent” means,
with respect to any Credit Party, that as of the date of determination, both (i) (a) the
sum of such Credit Party’s debt (including contingent liabilities) does not
exceed the present fair saleable value of such Credit Party’s present assets; (b) such
Credit Party’s capital is not unreasonably small in relation to its business as
contemplated on the Closing Date and reflected in the Projections or with
respect to any transaction contemplated or undertaken after the Closing Date;
and (c) such Person has not incurred and does not intend to incur, or
believe (nor should it reasonably believe) that it will incur, debts beyond its
ability to

 

29

 

pay such debts as they
become due (whether at maturity or otherwise); and (ii) such Person is “solvent”
within the meaning given that term and similar terms under the Bankruptcy Code
and applicable laws relating to fraudulent transfers and conveyances.  For purposes of this definition, the amount
of any contingent liability at any time shall be computed as the amount that,
in light of all of the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or
matured liability (irrespective of whether such contingent liabilities meet the
criteria for accrual under Statement of Financial Accounting Standard No. 5).

 

“Specified Investment” means any
investment by Borrower or any Subsidiary to the extent financed with net cash
proceeds received from the issuance of Equity Interests by, or capital
contributions made to, Holdings after the Closing Date, provided that (i) Administrative
Agent receives written notice describing such investment concurrently with or
promptly following the issuance of such Equity Interests and (ii) such
investment is made within 90 days of receipt by Holdings of such net cash
proceeds.

 

“Subject Transaction”
as defined in Section 6.7(d).

 

“Subordinated Indebtedness”
means Indebtedness permitted under Section 6.1(m) and Section 6.1(n).

 

“Subsidiary” means,
with respect to any Person, any corporation, partnership, limited liability
company, association, joint venture or other business entity of which more than
50% of the total voting power of shares of stock or other ownership interests
entitled (without regard to the occurrence of any contingency) to vote in the
election of the Person or Persons (whether directors, managers, trustees or
other Persons performing similar functions) having the power to direct or cause
the direction of the management and policies thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof; provided, in
determining the percentage of ownership interests of any Person controlled by
another Person, no ownership interest in the nature of a “qualifying share” of
the former Person shall be deemed to be outstanding.

 

“Supply Agreement” means the
Paper Purchase Agreement dated October 29, 2004, between Boise White Paper,
L.L.C. and OfficeMax Incorporated, amending and superseding the Paper Purchase
Agreement Term Sheet dated April 28, 2004 between OfficeMax Incorporated
and Boise Office Solutions.

 

“Syndication Agent”
as defined in the preamble hereto.

 

“Tax” means any present
or future tax, levy, impost, duty, assessment, charge, fee, deduction or
withholding of any nature and whatever called, by whomsoever, on whomsoever and
wherever imposed, levied, collected, withheld or assessed; provided, “Tax
on the overall net income” of a Person shall be construed as a reference to a
tax imposed by the United States of America or by the jurisdiction in which
that Person is organized or in which that Person’s applicable principal office
(and/or, in the case of a Lender, its lending office) is located or in which
that Person (and/or, in the case of a Lender, its lending office) is deemed to
be doing business on all or part of the net income, profits or gains (whether
worldwide, or only insofar as

 

30

 

such income, profits or
gains are considered to arise in or to relate to a particular jurisdiction, or
otherwise) of that Person (and/or, in the case of a Lender, its applicable
lending office), including any branch profits taxes imposed by the United
States of America or any similar tax imposed by any other jurisdiction
described above.

 

“Terminated Lender”
as defined in Section 2.23.

 

“Title Policy” as
defined in Section 3.1(h).

 

“Transaction Costs”
means the fees, costs and expenses payable by Holdings, Borrower or any of
Borrower’s Subsidiaries on or before the Closing Date in connection with the
transactions contemplated by the Credit Documents and the Related Agreements.

 

“Treasury Regulations” means the
income tax regulations promulgated by the Internal Revenue Service, Department
of Treasury, pursuant to the Internal Revenue Code.

 

“Treasury Services Agreements”
shall mean any agreement relating to treasury, depositary and cash management
services or automated clearinghouse transfer of funds.

 

“Type of Loan”
means a Base Rate Loan or a Eurodollar Rate Loan.

 

“UCC” means the
Uniform Commercial Code (or any similar or equivalent legislation) as in effect
in any applicable jurisdiction.

 

“Unadjusted Eurodollar Rate Component”
means that component of the interest costs to Borrower in respect of a
Eurodollar Rate Loan that is based upon the rate obtained pursuant to clause (i) of
the definition of Adjusted Eurodollar Rate.

 

“U.S. Lender” as
defined in Section 2.20(e).

 

“Waivable Mandatory Prepayment”
as defined in Section 2.15(b).

 

1.2.   Accounting Terms.  Except as otherwise expressly provided
herein, all accounting terms not otherwise defined herein shall have the
meanings assigned to them in conformity with GAAP.  Except as set forth below, financial
statements and other information required to be delivered by Holdings to
Lenders pursuant to Section 5.1(b) and 5.1(c) shall be prepared
in accordance with GAAP as in effect at the time of such preparation.  If at any time any change in GAAP would
affect the computation of any financial ratio or requirement set forth in any
Credit Document, and either Borrower or Requisite Lenders shall so request,
Administrative Agent, the Lenders and Borrower shall negotiate in good faith to
amend such ratio or requirement to preserve the original intent thereof in
light of such change in GAAP (subject to the approval of the Requisite
Lenders); provided that, until so amended, (i) such ratio or
requirement shall continue to be computed in accordance with GAAP prior to such
change therein and (ii) Borrower shall provide to Administrative Agent and
the Lenders as reasonably requested hereunder a reconciliation between
calculations of such ratio or requirement made before and after giving effect
to such change in GAAP.

 

31

 

1.3.   Interpretation, etc.  Any of the terms defined herein may, unless
the context otherwise requires, be used in the singular or the plural,
depending on the reference.  References
herein to any Section, Appendix, Schedule or Exhibit shall be to a
Section, an Appendix, a Schedule or an Exhibit, as the case may be, hereof
unless otherwise specifically provided. 
The use herein of the word “include” or “including”, when following any
general statement, term or matter, shall not be construed to limit such
statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not
non-limiting language (such as “without limitation” or “but not limited to” or
words of similar import) is used with reference thereto, but rather shall be
deemed to refer to all other items or matters that fall within the broadest
possible scope of such general statement, term or matter.  The terms lease and license shall include
sub-lease and sub-license, as applicable.

 

1.4.   Intercreditor Agreement.  All rights and obligations of the Agents and
Lenders under this Agreement shall be subject to the Intercreditor
Agreement.  Notwithstanding anything
herein to the contrary, the Liens and security interests granted to the Agents
or Lenders pursuant to this Agreement or any other Credit Document and the
exercise of any right or remedy by the Agents or Lenders hereunder are subject
to the provisions of the Intercreditor Agreement.  In the event of any conflict between the
terms of the Intercreditor Agreement and this Agreement, such conflict shall be
resolved in accordance with Section 8.1 of the Intercreditor
Agreement.  Any reference in this
Agreement to “second priority lien” or words of similar effect in describing
the security interests created hereunder or under any Credit Document shall be
understood to refer to such priority as set forth in the Intercreditor
Agreement.  All representations,
warranties and covenants in this Agreement shall be subject to the provisions
and qualifications set forth in this Section 1.4.

 

SECTION 2.   LOANS

 

2.1.   Loans.

 

(a)  
Commitments.  Subject to
the terms and conditions hereof, each Lender severally agrees to make, on the
Closing Date,  a Loan to Borrower in an
amount equal to such Lender’s Commitment. 
Borrower may make only one borrowing under the Commitments which shall
be on the Closing Date.  Any amount
borrowed under this Section 2.1(a) and subsequently repaid or prepaid
may not be reborrowed.  Subject to
Sections 2.13(a) and 2.14, all amounts owed hereunder shall be paid in
full no later than the Maturity Date. 
Each Lender’s Commitment shall terminate immediately and without further
action on the Closing Date after giving effect to the funding of such Lender’s
Commitment on such date.

 

(b)  
Borrowing Mechanics for Loans.

 

(i)  
Borrower shall deliver to Administrative Agent by telefacsimile,
electronic communication (in pdf format) or hand delivery a fully executed
Funding Notice no later than one Business Day prior to the Closing Date.  Promptly upon receipt by Administrative Agent
of such Funding Notice, Administrative Agent shall notify each Lender of the
proposed borrowing.

 

32

 

(ii)  
Each Lender shall make its Loan available to Administrative Agent not
later than 12:00 p.m. (New York City time) on the Closing Date, by wire
transfer of same day funds in Dollars, at the Principal Office designated by
Administrative Agent.  Upon satisfaction
or waiver of the conditions precedent specified herein, Administrative Agent
shall make the proceeds of the Loans available to Borrower on the Closing Date
by causing an amount of same day funds in Dollars equal to the proceeds of all
such Loans received by Administrative Agent from Lenders to be credited to an
account designated in writing to Administrative Agent by Borrower.

 

2.2.   Intentionally Omitted.

 

2.3.   Intentionally Omitted.

 

2.4.   Intentionally Omitted.

 

2.5.   Pro Rata Shares; Availability of Funds.

 

(a)  
Pro Rata Shares.  All Loans
shall be made, and all participations purchased, by Lenders simultaneously and
proportionately to their respective Pro Rata Shares, it being understood that
no Lender shall be responsible for any default by any other Lender in such
other Lender’s obligation to make a Loan requested hereunder or purchase a
participation required hereby nor shall any Commitment of any Lender be
increased or decreased as a result of a default by any other Lender in such
other Lender’s obligation to make a Loan requested hereunder or purchase a
participation required hereby.

 

(b)  
Availability of Funds. 
Unless Administrative Agent shall have been notified by any Lender prior
to the Closing Date that such Lender does not intend to make available to
Administrative Agent the amount of such Lender’s Loan requested on the Closing
Date, Administrative Agent may assume that such Lender has made such amount
available to Administrative Agent on the Closing Date and Administrative Agent
may, in its sole discretion, but shall not be obligated to, make available to
Borrower a corresponding amount on the Closing Date.  If such corresponding amount is not in fact
made available to Administrative Agent by such Lender, Administrative Agent
shall be entitled to recover such corresponding amount on demand from such
Lender together with interest thereon, for each day from the Closing Date until
the date such amount is paid to Administrative Agent, at the customary rate set
by Administrative Agent for the correction of errors among banks for three
Business Days and thereafter at the Base Rate. 
If such Lender does not pay such corresponding amount forthwith upon
Administrative Agent’s demand therefor, Administrative Agent shall promptly
notify Borrower and Borrower shall immediately pay such corresponding amount to
Administrative Agent together with interest thereon, for each day from the
Closing Date until the date such amount is paid to Administrative Agent, at the
rate payable hereunder for Base Rate Loans. 
Nothing in this Section 2.5(b) shall be deemed to relieve any
Lender from its obligation to fulfill its Commitment hereunder or to prejudice
any rights that Borrower may have against any Lender as a result of any default
by such Lender hereunder.

 

2.6.   Use of Proceeds.  The proceeds of the Loans, together with the
proceeds of the loans to be made under the First Lien Credit Agreement on the
Closing Date, shall be applied by

 

33

 

Borrower
to fund (a) in part, the
Acquisition pursuant to the Acquisition Agreement, including the refinancing or
retiring of certain existing Indebtedness for borrowed money of the Acquired
Business and (b) the payment of fees, commissions and expenses in
connection therewith and in connection with the financing of the foregoing,
including fees under Section 2.11(a). 
No portion of the proceeds of any Credit Extension shall be used in any
manner that causes or might cause such Credit Extension or the application of
such proceeds to violate Regulation T, Regulation U or
Regulation X of the Board of Governors or any other regulation thereof or
to violate the Exchange Act.

 

2.7.   Evidence of Debt; Register; Lenders’ Books
and Records; Notes.

 

(a)  
Lenders’ Evidence of Debt. 
Each Lender shall maintain on its internal records an account or
accounts evidencing the Obligations of Borrower to such Lender, including the
amounts of the Loans made by it and each repayment and prepayment in respect
thereof.  Any such recordation shall be
conclusive and binding on Borrower, absent manifest error; provided,
that the failure to make any such recordation, or any error in such
recordation, shall not affect Borrower’s Obligations in respect of any
applicable Loans; and provided  further, in the event of any
inconsistency between the Register and any Lender’s records, the recordations
in the Register shall govern.

 

(b)  
Register.  Administrative
Agent (or its agent or sub-agent appointed by it) shall maintain at the Principal
Office a register for the recordation of the names and addresses of Lenders and
the Loans of each Lender from time to time (the “Register”). 
The Register shall be available for inspection by Borrower or any Lender
(with respect to any entry relating to such Lender’s Loans) at any reasonable
time and from time to time upon reasonable prior notice.  Administrative Agent shall record, or shall
cause to be recorded, in the Register the Loans in accordance with the
provisions of Section 10.6, and each repayment or prepayment in respect of
the principal amount of the Loans, and any such recordation shall be conclusive
and binding on Borrower and each Lender, absent manifest error; provided,
failure to make any such recordation, or any error in such recordation, shall
not affect Borrower’s Obligations in respect of any Loan.  Borrower hereby designates LCPI to serve as
Borrower’s agent solely for purposes of maintaining the Register as provided in
this Section 2.7, and Borrower hereby agrees that, to the extent LCPI
serves in such capacity, LCPI and its officers, directors, employees, agents,
sub-agents and affiliates shall constitute “Indemnitees.”

 

(c)  
Notes.  If so requested by
any Lender by written notice to Borrower (with a copy to Administrative Agent)
at least two Business Days prior to the Closing Date, or at any time
thereafter, Borrower shall execute and deliver to such Lender (and/or, if
applicable and if so specified in such notice, to any Person who is an assignee
of such Lender pursuant to Section 10.6) on the Closing Date (or, if such
notice is delivered after the Closing Date, promptly after Borrower’s receipt
of such notice) a Note to evidence such Lender’s Loan.

 

2.8.   Interest on Loans.

 

(a)  
Except as otherwise set forth herein, each Loan shall bear interest on
the unpaid principal amount thereof from the date made through repayment
(whether by acceleration or otherwise) thereof as follows:

 

34

 

(i)   if a Base Rate Loan,
at the Base Rate plus 6.00% per annum; or

 

(ii)   if a Eurodollar Rate
Loan, at the Adjusted Eurodollar Rate plus 7.00% per annum.

 

(b)   The basis for determining the rate of
interest with respect to any Loan, and the Interest Period with respect to any
Eurodollar Rate Loan, shall be selected by Borrower and notified to
Administrative Agent and Lenders pursuant to the applicable Funding Notice or
Conversion/Continuation Notice, as the case may be; provided, until the
earlier of (i) the date that GSCP notifies Borrower that the primary
syndication of the Loans has been completed, in accordance with the terms of
the Fee Letter, and (ii) 90 days after the Closing Date, the Loans shall
be maintained as either (1) Eurodollar Rate Loans having an Interest
Period of no longer than one month or (2) Base Rate Loans.  If on any day a Loan is outstanding with
respect to which a Funding Notice or Conversion/Continuation Notice has not
been delivered to Administrative Agent in accordance with the terms hereof
specifying the applicable basis for determining the rate of interest, then for
that day such Loan shall be a Base Rate Loan.

 

(c)   In connection with Eurodollar Rate Loans
there shall be no more than twelve (12) Interest Periods outstanding at any
time.  In the event Borrower fails to
specify between a Base Rate Loan or a Eurodollar Rate Loan in the applicable
Funding Notice or Conversion/Continuation Notice, such Loan (if outstanding as
a Eurodollar Rate Loan) will be automatically converted into a Base Rate Loan
on the last day of the then-current Interest Period for such Loan (or if
outstanding as a Base Rate Loan will remain as, or (if not then outstanding)
will be made as, a Base Rate Loan).  In the
event Borrower fails to specify an Interest Period for any Eurodollar Rate Loan
in the applicable Funding Notice or Conversion/Continuation Notice, Borrower
shall be deemed to have selected an Interest Period of one month.  As soon as practicable after 10:00 a.m.
(New York City time) on each Interest Rate Determination Date, Administrative
Agent shall determine (which determination shall, absent manifest error, be
final, conclusive and binding upon all parties) the interest rate that shall
apply to the Eurodollar Rate Loans for which an interest rate is then being
determined for the applicable Interest Period and shall promptly give notice
thereof (in writing or by telephone confirmed in writing) to Borrower and each
Lender.

 

(d)   Interest payable pursuant to
Section 2.8(a) shall be computed (i) in the case of Base Rate
Loans on the basis of a 365-day or 366-day year, as the case may be, and
(ii) in the case of Eurodollar Rate Loans, on the basis of a 360-day year,
in each case for the actual number of days elapsed in the period during which it
accrues.  In computing interest on any
Loan, the date of the making of such Loan or the first day of an Interest
Period applicable to such Loan or the last Interest Payment Date with respect
to such Loan or, with respect to a Base Rate Loan being converted from a
Eurodollar Rate Loan, the date of conversion of such Eurodollar Rate Loan to
such Base Rate Loan, as the case may be, shall be included, and the date of
payment of such Loan or the expiration date of an Interest Period applicable to
such Loan or, with respect to a Base Rate Loan being converted to a Eurodollar
Rate Loan, the date of conversion of such Base Rate Loan to such Eurodollar
Rate Loan, as the case may be, shall be excluded; provided, if a Loan is
repaid on the same day on which it is made, one day’s interest shall be paid on
that Loan.

 

35

 

(e)   Except as otherwise set forth herein,
interest on each Loan (i) shall accrue on a daily basis and shall be
payable in arrears on each Interest Payment Date with respect to interest
accrued on and to each such payment date; (ii) shall accrue on a daily
basis and shall be payable in arrears upon any prepayment of that Loan, whether
voluntary or mandatory, to the extent accrued on the amount being prepaid; and
(iii) shall accrue on a daily basis and shall be payable in arrears at
maturity of the Loans, including final maturity of the Loans; provided,
however, with respect to any voluntary prepayment of a Base Rate Loan, accrued
interest shall instead be payable on the applicable Interest Payment Date.

 

2.9.   Conversion/Continuation.

 

(a)   Subject to Section 2.18 and so long as
no Default or Event of Default shall have occurred and then be continuing,
Borrower shall have the option:

 

(i)   to convert at any time
all or any part of any Loan equal to $5,000,000 and integral multiples of
$1,000,000 in excess of that amount from one Type of Loan to another Type of
Loan; provided, a Eurodollar Rate Loan may only be converted on the
expiration of the Interest Period applicable to such Eurodollar Rate Loan
unless Borrower shall pay all amounts due under Section 2.18 in connection
with any such conversion; or

 

(ii)   upon the expiration
of any Interest Period applicable to any Eurodollar Rate Loan, to continue all
or any portion of such Loan equal to $5,000,000 and integral multiples of
$1,000,000 in excess of that amount as a Eurodollar Rate Loan.

 

(b)   Borrower shall deliver by telefacsimile,
electronic communication (in pdf format) or hand delivery a fully executed
Conversion/Continuation Notice to Administrative Agent no later than
(i) 2:00 p.m. (New York City time) at least one Business Day in
advance of the proposed conversion date (in the case of a conversion to a Base
Rate Loan) and (ii) 12:00 p.m. (New York City time) at least three
Business Days in advance of the proposed conversion/continuation date (in the
case of a conversion to, or a continuation of, a Eurodollar Rate Loan).  Except as otherwise provided herein, a
Conversion/Continuation Notice for conversion to, or continuation of, any
Eurodollar Rate Loans (or telephonic notice in lieu thereof) shall be
irrevocable on and after the related Interest Rate Determination Date, and
Borrower shall be bound to effect a conversion or continuation in accordance
therewith.

 

2.10.   Default Interest.  Upon the occurrence and during the
continuance of an Event of Default under Section 8.1(a), the overdue
principal amount of all Loans outstanding and, to the extent permitted by
applicable law, any overdue interest payments on the Loans or any overdue fees
or other overdue amounts owed hereunder, shall thereafter bear interest
(including post-petition interest in any proceeding under the Bankruptcy Code
or other applicable bankruptcy laws) payable on demand at a rate that is 2% per
annum in excess of the interest rate otherwise payable hereunder with respect
to the applicable Loans (or, in the case of any such overdue fees and other
overdue amounts, at a rate which is 2% per annum in excess of the interest rate
otherwise payable hereunder for Base Rate Loans); provided, in the case
of Eurodollar Rate Loans, upon the expiration of the Interest Period in effect
at the time any such increase in interest rate is effective such Eurodollar
Rate Loans shall thereupon become Base Rate Loans and shall thereafter bear
interest payable upon demand at a rate which is 2% per

 

36

 

annum in
excess of the interest rate otherwise payable hereunder for Base Rate
Loans.  Payment or acceptance of the
increased rates of interest provided for in this Section 2.10 is not a
permitted alternative to timely payment and shall not constitute a waiver of
any Event of Default or otherwise prejudice or limit any rights or remedies of
Administrative Agent or any Lender.

 

2.11.   Fees.

 

(a)   Borrower agrees to pay on the Closing Date to
each Lender who is a party to this Agreement as a Lender on the Closing Date,
as fee compensation for the funding of such Lender’s Loan as part of the
initial funding to be made on the Closing Date, a closing fee in an amount
equal to 10.00% of the stated principal amount of such Lender’s Loan, payable
to such Lender from, at Borrower’s option, the proceeds of its Loans as and
when funded on the Closing Date and/or the proceeds of loans under the First
Lien Credit Agreement made on the Closing Date. 
Such closing fee will be in all respects fully earned, due and payable
on the Closing Date and non-refundable and non-creditable thereafter.

 

(b)   In addition to the foregoing fees, Borrower
agrees to pay to Agents such other fees in the amounts and at the times
separately agreed upon.

 

2.12.   Payment at Maturity.  The Loans, together with all other amounts
owed hereunder with respect thereto, shall be paid in full no later than the
Maturity Date.

 

2.13.   Voluntary Prepayments; Make-Whole Premium;
Call Premium.

 

(a)   Voluntary Prepayments.

 

(i)   Subject to paragraphs
(b) and (c) below, at any time and from time to time after the
Discharge of First Lien Obligations:

 

(1)           with respect to
Base Rate Loans, Borrower may prepay any such Loans on any Business Day in
whole or in part, in an aggregate minimum amount of $1,000,000 and integral
multiples of $500,000 in excess of that amount; and

 

(2)           with respect to
Eurodollar Rate Loans, Borrower may prepay any such Loans on any Business Day
in whole or in part in an aggregate minimum amount of $5,000,000 and integral
multiples of $1,000,000 in excess of that amount.

 

(ii)   All such prepayments
shall be made:

 

(1)           upon not less
than one Business Day’s prior written or telephonic notice in the case of Base
Rate Loans; and

 

37

 

(2)           upon not less
than three Business Days’ prior written or telephonic notice in the case of
Eurodollar Rate Loans;

 

in each case
given to Administrative Agent by 12:00 p.m. (New York City time) on the
date required and, if given by telephone, promptly confirmed in writing to
Administrative Agent (and Administrative Agent will promptly transmit such
telephonic or original notice for Loans by telefacsimile or telephone to each
Lender).  Upon the giving of any such
notice, the principal amount of the Loans specified in such notice and any
additional amounts required pursuant to clause (b) or (c) below shall
become due and payable on the prepayment date specified therein.  Any such voluntary prepayment shall be
applied as specified in Section 2.15(a).

 

(b)   Make-Whole Premium.  In the event that the Loans are prepaid as a
result of a voluntary or mandatory prepayment (other than as a result of a
prepayment under Section 2.14(b) or (d)) at any time prior to the
third anniversary of the Closing Date, Borrower shall pay Lenders a prepayment
premium equal to the Make-Whole Premium.

 

(c)   Call Premium.  In the event all or any portion of the Loans
are repaid pursuant to Section 2.13(a), 2.14(a) or 2.14(c) on or
after the third anniversary of the Closing Date and prior to the sixth
anniversary of the Closing Date, such repayments will be made at (i) 105.0%
of the amount repaid if such repayment occurs on or after the third anniversary
of the Closing Date and prior to the fourth anniversary of the Closing Date,
(ii) 103.0% of the amount repaid if such repayment occurs on or after the
fourth anniversary of the Closing Date and prior to the fifth anniversary of
the Closing Date, and (iii) 101.0% of the amount repaid if such repayment
occurs on or after the fifth anniversary of the Closing Date and prior to the
sixth anniversary of the Closing Date.

 

2.14.   Mandatory Prepayments.

 

(a)   Asset Sales.  Subject to Section 2.15(b), no later
than three (3) Business Days following the date of receipt by Holdings or
any of its Subsidiaries of any Net Asset Sale Proceeds, Borrower shall prepay
the Loans as set forth in Section 2.15 in an aggregate amount equal to
such Net Asset Sale Proceeds; provided, so long as no Default or Event
of Default shall have occurred and be continuing, Borrower shall have the
option, directly or through one or more of its Subsidiaries, to invest Net
Asset Sale Proceeds within one year of receipt thereof in Real Estate Assets,
equipment or other long-term tangible assets useful in the business of Borrower
and its Subsidiaries.

 

(b)   Insurance/Condemnation Proceeds.  Subject to Section 2.15(b), no later
than three (3) Business Days following the date of receipt by Holdings or
any of its Subsidiaries, or Administrative Agent as loss payee, of any Net
Insurance/Condemnation Proceeds, Borrower shall prepay the Loans as set forth
in Section 2.15 in an aggregate amount equal to such Net
Insurance/Condemnation Proceeds; provided, so long as no Default or
Event of Default shall have occurred and be continuing, Borrower shall have the
option, directly or through one or more of its Subsidiaries to invest such Net
Insurance/Condemnation Proceeds within one year of receipt thereof in Real
Estate Assets, equipment or other long-term tangible assets useful in the

 

38

 

business of
Borrower and its Subsidiaries, which investment may include the repair,
restoration or replacement of the applicable assets thereof.

 

(c)   Issuance of Debt.  Subject to Section 2.15(b), no later
than three (3) Business Days following the date of receipt by Holdings or
any of its Subsidiaries of any Cash proceeds from the incurrence of any
Indebtedness of Holdings or any of its Subsidiaries (other than with respect to
any Indebtedness permitted to be incurred pursuant to Section 6.1),
Borrower shall prepay the Loans as set forth in Section 2.15 in an aggregate
amount equal to 100% of such proceeds, net of underwriting discounts and
commissions and other reasonable fees, costs and expenses associated therewith,
including reasonable legal fees and expenses.

 

(d)   Consolidated Excess Cash Flow.  Subject to Section 2.15(b), in the event
that there shall be Consolidated Excess Cash Flow for any Fiscal Year
(commencing with the Fiscal Year ending December 31, 2008 (but only to the
extent of Consolidated Excess Cash Flow resulting from operations of the
Acquired Business after the Acquisition)), Borrower shall, no later than
ninety-five days after the end of such Fiscal Year, prepay the Loans as set
forth in Section 2.15 in an aggregate amount equal to (i) 75% of such
Consolidated Excess Cash Flow minus (ii) voluntary repayments of
the Loans and voluntary repayments of the Loans (as defined in the First Lien
Credit Agreement) made from operating cash flow (excluding repayments of
Revolving Loans or Swing Line Loans (each as defined in the First Lien Credit
Agreement) except (x) to the extent the Revolving Commitments (as defined
in the First Lien Credit Agreement) are permanently reduced in connection with
such repayments or (y) to the extent the proceeds thereof are used to fund
fees under Section 2.11(d) of the First Lien Credit Agreement or
under Section 2.11(a) hereof); provided, that if, as of the
last day of the most recently ended Fiscal Year, the Leverage Ratio (determined
for any such period by reference to the Compliance Certificate delivered
pursuant to Section 5.1(d) calculating the Leverage Ratio as of the
last day of such Fiscal Year) shall be (A) 3.00:1.00 or less but greater
than 2.50:1.00, Borrower shall only be required to make the prepayments and/or
reductions otherwise required hereby in an amount equal to (i) 50% of such
Consolidated Excess Cash Flow minus (ii) voluntary repayments of
the Loans and voluntary repayments of the Loans (as defined in the First Lien
Credit Agreement) made from operating cash flow (excluding repayments of
Revolving Loans or Swing Line Loans (each as defined in the First Lien Credit
Agreement) except (x) to the extent the Revolving Commitments (as defined
in the First Lien Credit Agreement) are permanently reduced in connection with
such repayments or (y) to the extent the proceeds thereof are used to fund
fees under Section 2.11(d) of the First Lien Credit Agreement or
under Section 2.11(a) hereof); (B) 2.50:1.00 or less but greater
than 2.00:1.00, Borrower shall only be required to make the prepayments and/or
reductions otherwise required hereby in an amount equal to (i) 25% of such
Consolidated Excess Cash Flow minus (ii) voluntary repayments of
the Loans and voluntary repayments of the Loans (as defined in the First Lien
Credit Agreement) made from operating cash flow (excluding repayments of
Revolving Loans or Swing Line Loans (each as defined in the First Lien Credit
Agreement) except (x) to the extent the Revolving Commitments (as defined
in the First Lien Credit Agreement) are permanently reduced in connection with
such repayments or (y) to the extent the proceeds thereof are used to fund
fees under Section 2.11(d) of the First Lien Credit Agreement or
under Section 2.11(a) hereof); or (C) 2.00:1.00 or less,
Borrower shall not be required to make any prepayments otherwise required
hereby.

 

39

 

(e)   Restrictions on Prepayments.  Notwithstanding the foregoing provisions of
this Section 2.14, no mandatory prepayment of the Loans shall be made
pursuant to this Section 2.14 (i) to the extent that such net
proceeds or Consolidated Excess Cash Flow are applied to prepay amounts
outstanding under, or to permanently reduce revolving commitments under, the
First Lien Credit Agreement to the extent and in the payment priority required
thereunder and (ii) except as required by Section 2.15(b) or
2.15(c) of the First Lien Credit Agreement, unless otherwise consented to
by Borrower and requisite lenders under the First Lien Credit Agreement.

 

(f)   Prepayment Certificate.  Concurrently with any prepayment of the Loans
pursuant to Sections 2.14(a) through 2.14(d), Borrower shall deliver to
Administrative Agent a certificate of an Authorized Officer demonstrating the
calculation of the amount of the applicable net cash proceeds or Consolidated
Excess Cash Flow, as the case may be.  In
the event that Borrower shall subsequently determine that the actual amount
received exceeded the amount set forth in such certificate, Borrower shall
promptly make an additional prepayment of the Loans in an amount equal to such
excess, and Borrower shall concurrently therewith deliver to Administrative
Agent a certificate of an Authorized Officer demonstrating the derivation of
such excess.

 

2.15.   Application of Prepayments.

 

(a)   Application of Prepayments of Loans to
Base Rate Loans and Eurodollar Rate Loans. 
Any prepayment shall be applied first to Base Rate Loans to the full
extent thereof before application to Eurodollar Rate Loans, in each case in a
manner which minimizes the amount of any payments required to be made by
Borrower pursuant to Section 2.18(c).

 

(b)   Waivable Mandatory Prepayment.  Anything contained herein to the contrary
notwithstanding, in the event Borrower is required to make any mandatory
prepayment (a “Waivable Mandatory Prepayment”)
of the Loans, not less than three Business Days prior to the date (the “Required Prepayment Date”) on which
Borrower is required to make such Waivable Mandatory Prepayment, Borrower shall
notify Administrative Agent of the amount of such prepayment, and
Administrative Agent will promptly thereafter notify each Lender of the amount
of such Lender’s Pro Rata Share of such Waivable Mandatory Prepayment and such
Lender’s option to refuse such amount. 
Each such Lender may exercise such option by giving written notice to
Borrower and Administrative Agent of its election to do so on or before the
first Business Day prior to the Required Prepayment Date (it being understood
that any Lender which does not notify Borrower and Administrative Agent of its
election to exercise such option on or before the first Business Day prior to
the Required Prepayment Date shall be deemed to have elected, as of such date,
not to exercise such option).  On the
Required Prepayment Date, Borrower shall pay to Administrative Agent that
portion of the Waivable Mandatory Prepayment payable to those Lenders that have
elected not to exercise such option, to prepay the Loans of such Lenders (which
prepayment shall be applied in accordance with Section 2.15(a)), unless
otherwise consented to by Requisite Lenders. 
To the extent any remaining amount of the Waivable Mandatory Prepayment
constitutes Consolidated Excess Cash Flow, such amount shall be prepaid in
accordance with Section 2.14(d) of the First Lien Credit Agreement,
without giving effect to Section 2.15(c) of the First Lien Credit
Agreement.  Any remaining amount of the
Waivable Mandatory Prepayment not constituting Consolidated Excess Cash Flow
shall be

 

40

 

retained by
Borrower and used for any purpose not prohibited by this Agreement or the other
Credit Documents.

 

2.16.   General Provisions Regarding Payments.

 

(a)   All payments by Borrower of principal,
interest, fees and other Obligations shall be made in Dollars in same day funds,
without defense, setoff or counterclaim, free of any restriction or condition,
and delivered to Administrative Agent not later than 2:00 p.m. (New York
City time) on the date due at the Principal Office designated by Administrative
Agent for the account of Lenders; for purposes of computing interest and fees,
funds received by Administrative Agent after that time on such due date shall
be deemed to have been paid by Borrower on the next succeeding Business Day.

 

(b)   All payments in respect of the principal
amount of any Loan (other than voluntary prepayments of Base Rate Loans) shall
be accompanied by payment of accrued interest on the principal amount being
repaid or prepaid, and all such payments (and, in any event, any payments in
respect of any Loan on a date when interest is due and payable with respect to
such Loan) shall be applied to the payment of interest then due and payable
before application to principal.

 

(c)   Administrative Agent (or its agent or
sub-agent appointed by it) shall promptly distribute to each Lender at such
address as such Lender shall indicate in writing, such Lender’s applicable Pro
Rata Share of all payments and prepayments of principal and interest due
hereunder, together with all other amounts due thereto, including all fees
payable with respect thereto, to the extent received by Administrative Agent.

 

(d)   Notwithstanding the foregoing provisions
hereof, if any Conversion/ Continuation Notice is withdrawn as to any Affected
Lender or if any Affected Lender makes Base Rate Loans in lieu of its Pro Rata
Share of any Eurodollar Rate Loans, Administrative Agent shall give effect
thereto in apportioning payments received thereafter.

 

(e)   Whenever any payment to be made hereunder
with respect to any Loan shall be stated to be due on a day that is not a
Business Day, such payment shall be made on the next succeeding Business Day.

 

(f)   Borrower hereby authorizes Administrative
Agent to charge Borrower’s accounts with Administrative Agent in order to cause
timely payment to be made to Administrative Agent of all principal, interest,
fees and expenses due hereunder (subject to sufficient funds being available in
its accounts for that purpose); provided that, prior to the
Administrative Agent charging any such accounts, Administrative Agent shall
provide Borrower with written notice of such charge.

 

(g)   Administrative Agent shall deem any payment
by or on behalf of Borrower hereunder that is not made in same day funds prior
to 2:00 p.m. (New York City time) to be a non-conforming payment.  Any such payment shall not be deemed to have
been received by Administrative Agent until the later of (i) the time such
funds become available funds, and (ii) the applicable next Business Day.  Administrative Agent shall give prompt
telephonic notice to Borrower and each applicable Lender (confirmed in writing)
if any payment is non-conforming.

 

41

 

Any
non-conforming payment may constitute or become a Default or Event of Default
in accordance with the terms of Section 8.1(a).  Interest shall continue to accrue on any
principal as to which a non-conforming payment is made until such funds become
available funds (but in no event less than the period from the date of such
payment to the next succeeding applicable Business Day) at the rate determined
pursuant to Section 2.10 from the date such amount was due and payable
until the date such amount is paid in full.

 

(h)   Subject to the terms of the Intercreditor
Agreement, if an Event of Default shall have occurred and be continuing, and
the maturity of the Obligations shall have been accelerated pursuant to
Section 8.1, all payments or proceeds received by Agents hereunder in
respect of any of the Obligations shall be applied in accordance with the application
arrangements described in Section 9.2 of the Pledge and Security
Agreement.

 

2.17.   Ratable Sharing.  Lenders hereby agree among themselves that if
any of them shall, whether by voluntary payment (other than a voluntary
prepayment of Loans made and applied in accordance with the terms hereof),
through the exercise of any right of set-off or banker’s lien, by counterclaim
or cross action or by the enforcement of any right under the Credit Documents
or otherwise, or as adequate protection of a deposit treated as cash collateral
under the Bankruptcy Code, receive payment or reduction of a proportion of the
aggregate amount of principal, interest, fees and other amounts then due and
owing to such Lender hereunder or under the other Credit Documents (collectively,
the “Aggregate Amounts Due” to
such Lender) which is greater than the proportion received by any other Lender
in respect of the Aggregate Amounts Due to such other Lender, then the Lender
receiving such proportionately greater payment shall (a) notify
Administrative Agent and each other Lender of the receipt of such payment and
(b) apply a portion of such payment to purchase participations (which it
shall be deemed to have purchased from each seller of a participation
simultaneously upon the receipt by such seller of its portion of such payment)
in the Aggregate Amounts Due to the other Lenders so that all such recoveries
of Aggregate Amounts Due shall be shared by all Lenders in proportion to the
Aggregate Amounts Due to them; provided, if all or part of such
proportionately greater payment received by such purchasing Lender is
thereafter recovered from such Lender upon the bankruptcy or reorganization of
Borrower or otherwise, those purchases shall be rescinded and the purchase
prices paid for such participations shall be returned to such purchasing Lender
ratably to the extent of such recovery, but without interest.  Borrower expressly consents to the foregoing
arrangement and agrees that any holder of a participation so purchased may
exercise any and all rights of banker’s lien, set-off or counterclaim with
respect to any and all monies owing by Borrower to that holder with respect
thereto as fully as if that holder were owed the amount of the participation
held by that holder.

 

2.18.   Making or Maintaining Eurodollar Rate Loans.

 

(a)   Inability to Determine Applicable Interest
Rate.  In the event that
Administrative Agent shall have determined (which determination shall be final
and conclusive and binding upon all parties hereto), on any Interest Rate
Determination Date with respect to any Eurodollar Rate Loans, that by reason of
circumstances affecting the London interbank market adequate and fair means do
not exist for ascertaining the interest rate applicable to such Loans on the
basis provided for in the definition of Adjusted Eurodollar Rate,
Administrative Agent shall on such date give notice (by telefacsimile or by
telephone confirmed in writing) to Borrower and

 

42

 

each Lender of
such determination, whereupon (i) no Loans may be made as, or converted
to, Eurodollar Rate Loans until such time as Administrative Agent notifies
Borrower and Lenders that the circumstances giving rise to such notice no
longer exist, and (ii) any Funding Notice or Conversion/Continuation
Notice given by Borrower with respect to the Loans in respect of which such
determination was made shall be deemed to be rescinded by Borrower.

 

(b)   Illegality or Impracticability of
Eurodollar Rate Loans.  In the event
that on any date any Lender shall have determined (which determination shall be
final and conclusive and binding upon all parties hereto but shall be made only
after consultation with Borrower and Administrative Agent) that the making,
maintaining or continuation of its Eurodollar Rate Loans (i) has become
unlawful as a result of compliance by such Lender in good faith with any law,
treaty, governmental rule, regulation, guideline or order (or would conflict
with any such treaty, governmental rule, regulation, guideline or order not
having the force of law even though the failure to comply therewith would not
be unlawful), or (ii) has become impracticable, as a result of
contingencies occurring after the date hereof which materially and adversely
affect the London interbank market or the position of such Lender in that
market, then, and in any such event, such Lender shall be an “Affected Lender” and it shall on that day
give notice (by telefacsimile or by telephone confirmed in writing) to Borrower
and Administrative Agent of such determination (which notice Administrative
Agent shall promptly transmit to each other Lender).  Thereafter (1) the obligation of the
Affected Lender to make Loans as, or to convert Loans to, Eurodollar Rate Loans
shall be suspended until such notice shall be withdrawn by the Affected Lender,
(2) to the extent such determination by the Affected Lender relates to a
Eurodollar Rate Loan then being requested by Borrower pursuant to a Funding
Notice or a Conversion/Continuation Notice, the Affected Lender shall make such
Loan as (or continue such Loan as or convert such Loan to, as the case may be)
a Base Rate Loan, (3) the Affected Lender’s obligation to maintain its
outstanding Eurodollar Rate Loans (the “Affected
Loans”) shall be terminated at the earlier to occur of the
expiration of the Interest Period then in effect with respect to the Affected
Loans or when required by law, and (4) the Affected Loans shall
automatically convert into Base Rate Loans on the date of such termination.  Notwithstanding the foregoing, to the extent
a determination by an Affected Lender as described above relates to a
Eurodollar Rate Loan then being requested by Borrower pursuant to a Funding
Notice or a Conversion/Continuation Notice, Borrower shall have the option, subject
to the provisions of Section 2.18(c), to rescind such Funding Notice or
Conversion/Continuation Notice as to all Lenders by giving notice (by
telefacsimile, electronic communication or by telephone confirmed in writing)
to Administrative Agent of such rescission on the date on which the Affected
Lender gives notice of its determination as described above (which notice of
rescission Administrative Agent shall promptly transmit to each other
Lender).  Except as provided in the
immediately preceding sentence, nothing in this Section 2.18(b) shall
affect the obligation of any Lender other than an Affected Lender to make or
maintain Loans as, or to convert Loans to, Eurodollar Rate Loans in accordance
with the terms hereof.

 

(c)   Compensation for Breakage or
Non-Commencement of Interest Periods. 
Borrower shall compensate each Lender, upon written request by such
Lender (which request shall set forth the basis for requesting such amounts),
for all reasonable losses, expenses and liabilities (including any interest
paid by such Lender to lenders of funds borrowed by it to make or carry its
Eurodollar Rate Loans and any loss, expense or liability sustained by such
Lender in connection with the liquidation or re-employment of such funds but
excluding loss of anticipated

 

43

 

profits) which
such Lender may sustain: (i) if for any reason (other than a default by
such Lender) a borrowing of any Eurodollar Rate Loan does not occur on a date
specified therefor in a Funding Notice or a telephonic request for borrowing,
or a conversion to or continuation of any Eurodollar Rate Loan does not occur
on a date specified therefor in a Conversion/Continuation Notice or a
telephonic request for conversion or continuation; (ii) if any prepayment
or other principal payment of, or any conversion of, any of its Eurodollar Rate
Loans occurs on a date prior to the last day of an Interest Period applicable
to that Loan; or (iii) if any prepayment of any of its Eurodollar Rate Loans
is not made on any date specified in a notice of prepayment given by Borrower.

 

(d)   Booking of Eurodollar Rate Loans.  Any Lender may make, carry or transfer
Eurodollar Rate Loans at, to, or for the account of any of its branch offices
or the office of an Affiliate of such Lender.

 

(e)   Assumptions Concerning Funding of
Eurodollar Rate Loans.  Calculation
of all amounts payable to a Lender under this Section 2.18 and under
Section 2.19 shall be made as though such Lender had actually funded each
of its relevant Eurodollar Rate Loans through the purchase of a Eurodollar
deposit bearing interest at the rate obtained pursuant to clause (i) of
the definition of Adjusted Eurodollar Rate in an amount equal to the amount of
such Eurodollar Rate Loan and having a maturity comparable to the relevant
Interest Period and through the transfer of such Eurodollar deposit from an
offshore office of such Lender to a domestic office of such Lender in the
United States of America; provided, however, each Lender may fund
each of its Eurodollar Rate Loans in any manner it sees fit and the foregoing
assumptions shall be utilized only for the purposes of calculating amounts
payable under this Section 2.18 and under Section 2.19.

 

2.19.   Increased Costs; Capital Adequacy.

 

(a)   Compensation For Increased Costs and Taxes.  Subject to the provisions of
Section 2.20 (which shall be controlling with respect to the matters
covered thereby), in the event that any Lender shall determine (which
determination shall, absent manifest error, be final and conclusive and binding
upon all parties hereto) that any law, treaty or governmental rule, regulation
or order, or any change therein or in the interpretation, administration or
application thereof (including the introduction of any new law, treaty or
governmental rule, regulation or order), or any determination of a court or
Governmental Authority, in each case that becomes effective after the date
hereof, or compliance by such Lender with any guideline, request or directive
issued or made after the date hereof by any central bank or other governmental
or quasi-governmental authority (whether or not having the force of law):
(i) subjects such Lender (or its applicable lending office) to any
additional Tax or changes the basis of taxation of payments to the Lender
(other than, in each case, any Tax on the overall net income of such Lender)
with respect to this Agreement or any of the other Credit Documents or any of
its obligations hereunder or thereunder or any payments to such Lender (or its
applicable lending office) of principal, interest, fees or any other amount
payable hereunder; (ii) imposes, modifies or holds applicable any reserve
(including any marginal, emergency, supplemental, special or other reserve),
special deposit, compulsory loan, FDIC insurance or similar requirement against
assets held by, or deposits or other liabilities in or for the account of, or
advances or loans by, or other credit extended by, or any other acquisition of
funds by, any office of such Lender (other

 

44

 

than any such
reserve or other requirements with respect to Eurodollar Rate Loans that are
reflected in the definition of Adjusted Eurodollar Rate); or (iii) imposes
any other condition (other than with respect to a Tax matter) on or affecting
such Lender (or its applicable lending office) or its obligations hereunder or
the London interbank market; and the result of any of the foregoing is to
increase the cost to such Lender of maintaining Loans hereunder or to reduce
any amount received or receivable by such Lender (or its applicable lending
office) with respect thereto; then, in any such case, Borrower shall pay within
10 days to such Lender, upon receipt of the statement referred to in the next
sentence, such additional amount or amounts (in the form of an increased rate
of, or a different method of calculating, interest or otherwise as such Lender
in its sole discretion shall determine) as may be necessary to compensate such
Lender for any such increased cost or reduction in amounts received or receivable
hereunder.  Such Lender shall deliver to
Borrower (with a copy to Administrative Agent) a written statement, setting
forth in reasonable detail the basis for calculating the additional amounts
owed to such Lender under this Section 2.19(a), which statement shall be
conclusive and binding upon all parties hereto absent manifest error.

 

(b)   Capital Adequacy Adjustment.  In the event that any Lender shall have
determined that the adoption, effectiveness, phase-in or applicability after
the Closing Date of any law, rule or regulation (or any provision thereof)
regarding capital adequacy, or any change therein or in the interpretation or
administration thereof by any Governmental Authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by any Lender (or its applicable lending office) with any guideline,
request or directive regarding capital adequacy (whether or not having the
force of law) of any such Governmental Authority, central bank or comparable
agency, has or would have the effect of reducing the rate of return on the
capital of such Lender or any corporation controlling such Lender as a
consequence of, or with reference to, such Lender’s Loans or participations
therein or other obligations hereunder with respect to the Loans to a level
below that which such Lender or such controlling corporation could have
achieved but for such adoption, effectiveness, phase-in, applicability, change
or compliance (taking into consideration the policies of such Lender or such
controlling corporation with regard to capital adequacy), then from time to
time, within 10 days after receipt by Borrower from such Lender of the
statement referred to in the next sentence, Borrower shall pay to such Lender
such additional amount or amounts (including Taxes on payments made pursuant to
this Section 2.19(b)) as will compensate such Lender or such controlling
corporation on an after-tax basis for such reduction; provided  that,
Borrower shall not be under any obligation to compensate any Lender with
respect to increased costs or reductions with respect to any period prior to
the date that is 180 days prior to such request; provided  further,
that the foregoing limitation shall not apply to any increased costs or
reductions arising out of the retroactive application of any change in law
within such 180-day period.  Such Lender
shall deliver to Borrower (with a copy to Administrative Agent) a written
statement, setting forth in reasonable detail the basis for calculating the
additional amounts owed to Lender under this Section 2.19(b), which
statement shall be conclusive and binding upon all parties hereto absent
manifest error.

 

2.20.   Taxes; Withholding, etc.

 

(a)   Payments to Be Free and Clear.  All sums payable by or on behalf of any
Credit Party hereunder and under the other Credit Documents shall (except to
the extent required 

 

45

 

by law) be
paid free and clear of, and without any deduction or withholding on account of,
any Tax (other than a Tax on the overall net income of any Lender) imposed,
levied, collected, withheld or assessed by or within the United States of
America or any political subdivision in or of the United States of America or
any other jurisdiction from or to which a payment is made by or on behalf of
any Credit Party or by any federation or organization of which the United
States of America or any such jurisdiction is a member at the time of payment.

 

(b)   Withholding of Taxes.  If any Credit Party or any other Person is
required by law to make any deduction or withholding on account of any such Tax
from any sum paid or payable by any Credit Party to Administrative Agent or any
Lender under any of the Credit Documents: (i) Borrower shall notify Administrative
Agent of any such requirement or any change in any such requirement as soon as
Borrower becomes aware of it; (ii) Borrower shall pay any such Tax before
the date on which penalties attach thereto, such payment to be made (if the
liability to pay is imposed on any Credit Party) for its own account or (if
that liability is imposed on Administrative Agent or such Lender, as the case
may be) on behalf of and in the name of Administrative Agent or such Lender;
(iii) the sum payable by such Credit Party in respect of which the
relevant deduction, withholding or payment is required shall be increased to
the extent necessary to ensure that, after the making of that deduction,
withholding or payment, Administrative Agent or such Lender, as the case may
be, receives on the due date an amount equal to what it would have received had
no such deduction, withholding or payment been required or made; and
(iv) within thirty days after paying any sum from which it is required by
law to make any deduction or withholding, and within thirty days after the due
date of payment of any Tax which it is required by clause (ii) above to
pay, Borrower shall deliver to Administrative Agent evidence satisfactory to
the other affected parties of such deduction, withholding or payment and of the
remittance thereof to the relevant taxing or other authority.  Notwithstanding anything to the contrary in
this Agreement, no Credit Party shall be required to indemnify or pay any
additional amount to Administrative Agent or any Lender under Section 2.20 to
the extent that such obligation is imposed on amounts payable to Administrative
Agent or such Lender at the time such Person becomes a party to this Agreement.

 

(c)   Payment of Other Taxes by Borrower.  Without limiting the provisions of paragraph
(a) or (b) above, Borrower shall timely pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

 

(d)   Indemnification by Borrower.  Borrower shall indemnify, without
duplication, Administrative Agent and each Lender within ten days after written
demand therefor, for the full amount of any Taxes (other than a Tax on the
overall net income of any Lender) or Other Taxes paid by Administrative Agent
or such Lender on or with respect to any payment by or on account of any
obligation of Borrower hereunder and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Taxes
or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority.  A certificate
stating the amount of such payment or liability and setting forth in reasonable
detail the calculation thereof delivered to Borrower by a Lender (with a copy
to Administrative Agent), or by Administrative Agent on its own behalf or on behalf
of a Lender shall be conclusive absent manifest error.

 

46

 

(e)   Evidence of Exemption From U.S.
Withholding Tax.  Each Lender that is
not a United States Person (as such term is defined in Section 7701(a)(30)
of the Internal Revenue Code) for U.S. federal income tax purposes (a “Non-US Lender”) shall deliver to
Administrative Agent for transmission to Borrower, on or prior to the Closing
Date (in the case of each Lender listed on the signature pages hereof on
the Closing Date) or on or prior to the date of the Assignment Agreement
pursuant to which it becomes a Lender (in the case of each other Lender), and
at such other times as may be necessary in the determination of Borrower or
Administrative Agent (each in the reasonable exercise of its discretion),
(i) two original Internal Revenue Service Forms W-8BEN, W-8ECI and/or
W-8IMY (or, in each case, any successor forms), properly completed and duly
executed by such Lender, and such other documentation required under the
Internal Revenue Code and reasonably requested by Borrower to establish that
such Lender is not subject to deduction or withholding of United States federal
income tax with respect to any payments to such Lender of principal, interest,
fees or other amounts payable under any of the Credit Documents, or
(ii) if such Lender is not a “bank” or other Person described in
Section 881(c)(3) of the Internal Revenue Code, a Certificate re
Non-Bank Status together with two original Internal Revenue Service Forms
W-8BEN (or any successor form), properly completed and duly executed by such
Lender, and such other documentation required under the Internal Revenue Code
and reasonably requested by Borrower to establish that such Lender is not
subject to deduction or withholding of United States federal income tax with
respect to any payments to such Lender of interest payable under any of the
Credit Documents.  Each Lender that is a
United States person (as such term is defined in Section 7701(a)(30) of
the Internal Revenue Code) for United States federal income tax purposes (a “U.S. Lender”) and is not an exempt
recipient within the meaning of Treasury Regulation
Section 1.6049-4(c) shall deliver to Administrative Agent and
Borrower on or prior to the Closing Date (or, if later, on or prior to the date
on which such Lender becomes a party to this Agreement) two original copies of
Internal Revenue Service Form W-9 (or any successor form), properly
completed and duly executed by such Lender, certifying that such U.S. Lender is
entitled to an exemption from United States backup withholding tax, or
otherwise prove that it is entitled to such an exemption. Each Lender required
to deliver any forms, certificates or other evidence with respect to United
States federal income tax withholding matters pursuant to this
Section 2.20(e) hereby agrees, from time to time after the initial
delivery by such Lender of such forms, certificates or other evidence, whenever
a lapse in time or change in circumstances renders such forms, certificates or
other evidence obsolete or inaccurate in any material respect, that such Lender
shall promptly deliver to Administrative Agent for transmission to Borrower two
new original copies of Internal Revenue Service Form W-8BEN, W-8ECI and/or
W-8IMY (or, in each case, any successor form), or a Certificate re Non-Bank
Status and two original copies of Internal Revenue Service Form W-8BEN (or
any successor form), as the case may be, properly completed and duly executed
by such Lender, and such other documentation required under the Internal
Revenue Code and reasonably requested by Borrower to confirm or establish that
such Lender is not subject to deduction or withholding of United States federal
income tax with respect to payments to such Lender under the Credit Documents,
or notify Administrative Agent and Borrower of its inability to deliver any
such forms, certificates or other evidence. 
Borrower shall not be required to indemnify or pay any additional amount
to Administrative Agent or any Lender under Section 2.20(b)(iii) if
such Lender shall have failed (1) to deliver the forms, certificates or
other evidence referred to in the first or second sentence of this
Section 2.20(e), or (2) to notify Administrative Agent and Borrower
of its inability to deliver any such forms, certificates or other evidence, as 

 

47

 

the case may
be; provided, if such Lender shall have satisfied the requirements of
the first or second sentence of this Section 2.20(e) on the Closing
Date or on the date of the Assignment Agreement pursuant to which it became a
Lender, as applicable, nothing in this last sentence of
Section 2.20(e) shall relieve Borrower of its obligation to pay any
additional amounts pursuant this Section 2.20 in the event that, as a
result of any change in any applicable law, treaty or governmental rule,
regulation or order, or any change in the interpretation, administration or
application thereof, such Lender is no longer properly entitled to deliver forms,
certificates or other evidence at a subsequent date establishing the fact that
such Lender is not subject to withholding as described herein.  Notwithstanding any other provision of this
paragraph, a Lender shall not be required to deliver any form pursuant to this
paragraph that such Lender is not legally entitled to deliver.

 

(f)   Refunds.  If Administrative Agent or a Lender
determines, in its sole discretion, that it has received a refund of any Tax as
to which it has been indemnified by Borrower or with respect to which Borrower
has paid additional amounts pursuant to this Section 2.20, it shall pay
over such refund to Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by Borrower under this Section 2.20 with
respect to the Tax giving rise to such refund), net of all out-of-pocket
expenses of Administrative Agent or such Lender and without interest (other
than any interest paid by the relevant Governmental Authority with respect to
such refund); provided that Borrower, upon the request of Administrative
Agent or such Lender, agrees to repay the amount paid over to Borrower (plus
any penalties, interest or other charges imposed by the relevant Governmental
Authority) to Administrative Agent or such Lender in the event Administrative
Agent or such Lender is required to repay such refund to such Governmental
Authority.  This Section shall not
be construed to require Administrative Agent or any Lender to make available
its tax returns (or any other information relating to its taxes which it deems
confidential) to Borrower or any other Person.

 

2.21.   Obligation to Mitigate.  Each Lender agrees that, as promptly as
practicable after the officer of such Lender responsible for administering its
Loans becomes aware of the occurrence of an event or the existence of a
condition that would cause such Lender to become an Affected Lender or that
would entitle such Lender to receive payments under Section 2.18, 2.19 or
2.20, it will, to the extent not inconsistent with the existing internal
policies of such Lender and any applicable legal or regulatory restrictions,
use reasonable efforts to (a) make, issue, fund or maintain its Credit
Extensions, including any Affected Loans, through another office of such
Lender, or (b) take such other measures as such Lender may deem
reasonable, if as a result thereof the circumstances which would cause such
Lender to be an Affected Lender would cease to exist or the additional amounts
which would otherwise be required to be paid to such Lender pursuant to
Section 2.18, 2.19 or 2.20 would be reduced and if, as determined by such
Lender in its discretion, the making, issuing, funding or maintaining of such
Loans through such other office or in accordance with such other measures, as
the case may be, would not otherwise adversely affect such Loans or the
interests of such Lender; provided, such Lender will not be obligated to
utilize such other office pursuant to this Section 2.21 unless Borrower
agrees to pay all reasonable out-of-pocket incremental expenses incurred by
such Lender as a result of utilizing such other office as described above.  A certificate as to the amount of any such
expenses payable by Borrower pursuant to this Section 2.21 (setting forth
in reasonable detail the

 

48

 

basis for
requesting such amount) submitted by such Lender to Borrower (with a copy to
Administrative Agent) shall be conclusive absent manifest error.

 

2.22.   Intentionally Omitted.

 

2.23.   Removal or Replacement of a Lender.  Anything contained herein to the contrary
notwithstanding, in the event that: (a) (i) any Lender (an “Increased-Cost Lender”) shall give notice
to Borrower that such Lender is an Affected Lender or that such Lender is
entitled to receive payments under Section 2.18, 2.19 or 2.20,
(ii) the circumstances which have caused such Lender to be an Affected
Lender or which entitle such Lender to receive such payments shall remain in
effect, and (iii) such Lender shall fail to withdraw such notice within five
Business Days after Borrower’s request for such withdrawal; or (b) in
connection with any proposed amendment, modification, termination, waiver or
consent with respect to any of the provisions hereof as contemplated by
Section 10.5(b), the consent of Requisite Lenders shall have been obtained
but the consent of one or more of such other Lenders (each a “Non-Consenting Lender”) whose consent is
required shall not have been obtained; then, with respect to each such
Increased-Cost Lender or Non-Consenting Lender (the “Terminated Lender”), Borrower may, by giving written notice
to Administrative Agent and any Terminated Lender of its election to do so,
elect to cause such Terminated Lender (and such Terminated Lender hereby
irrevocably agrees) to assign its outstanding Loans in full to one or more
Eligible Assignees (each a “Replacement
Lender”) in accordance with the provisions of Section 10.6 and
Borrower shall pay the fees, if any, payable thereunder in connection with any
such assignment from an Increased Cost Lender or a Non-Consenting Lender; provided,
(1) on the date of such assignment, the Replacement Lender shall pay to
Terminated Lender an amount equal to the sum of (A) an amount equal to the
principal of, and all accrued interest on, all outstanding Loans of the
Terminated Lender and (B) an amount equal to all accrued, but theretofore
unpaid fees owing to such Terminated Lender pursuant to Section 2.11;
(2) on the date of such assignment, Borrower shall pay any amounts payable
to such Terminated Lender pursuant to Section 2.18(c), 2.19 or 2.20; or
otherwise as if it were a prepayment to which Section 2.13(c) applies
and (3) in the event such Terminated Lender is a Non-Consenting Lender,
each Replacement Lender shall consent, at the time of such assignment, to each
matter in respect of which such Terminated Lender was a Non-Consenting
Lender.  Upon the prepayment of all
amounts owing to any Terminated Lender, such Terminated Lender shall no longer
constitute a “Lender” for purposes hereof; provided, any rights of such
Terminated Lender to indemnification hereunder shall survive as to such
Terminated Lender.  Each Lender agrees
that if Borrower exercises its option hereunder to cause an assignment by such
Lender as a Non-Consenting Lender or Terminated Lender, such Lender shall,
promptly after receipt of written notice of such election, execute and deliver
all documentation necessary to effectuate such assignment in accordance with
Section 10.6.  In the event that a
Lender does not comply with the requirements of the immediately preceding
sentence within one Business Day after receipt of such notice, each Lender
hereby authorizes and directs Administrative Agent to execute and deliver such
documentation as may be required to give effect to an assignment in accordance
with Section 10.6 on behalf of a Non-Consenting Lender or Terminated
Lender and any such documentation so executed by Administrative Agent shall be
effective for purposes of documenting an assignment pursuant to
Section 10.6.

 

49

 

SECTION 3.   CONDITIONS PRECEDENT

 

3.1.   Closing Date.  The obligation of each Lender to make a
Credit Extension on the Closing Date is subject to each Agent’s satisfaction,
or waiver, of the following conditions on or before the Closing Date:

 

(a)   Credit Documents.  Administrative Agent shall have received
either (i) sufficient copies of each Credit Document originally executed
and delivered by each applicable Credit Party for each Lender or
(ii) written evidence reasonably satisfactory to the Administrative Agent
(which may include telefacsimile or electronic communication of copies of
executed signature pages of each Credit Document) that each applicable
Credit Party has signed a counterpart of each Credit Document to which it is a
party..

 

(b)   Organizational Documents; Incumbency.  Administrative Agent shall have received
originals or copies of (i) each Organizational Document executed and
delivered by each Credit Party, as applicable, and, to the extent applicable,
certified as of a recent date by the appropriate governmental official, each
dated the Closing Date or a recent date prior thereto; (ii) signature and
incumbency certificates of the officers of such Credit Party executing the
Credit Documents to which it is a party; (iii) resolutions of the Board of
Directors or similar governing body of each Credit Party approving and
authorizing the execution, delivery and performance of this Agreement and the
other Credit Documents to which it is a party or by which it or its assets may
be bound as of the Closing Date, certified as of the Closing Date by its
secretary or an assistant secretary as being in full force and effect without
modification or amendment and (iv) a good standing certificate from the
applicable Governmental Authority of each Credit Party’s jurisdiction of
incorporation, organization or formation and in each material jurisdiction in
which it is qualified as a foreign corporation or other entity to do business,
each dated a recent date prior to the Closing Date.

 

(c)   Capitalization of Holdings and Borrower.  On or before the Closing Date, Holdings or
Borrower, as applicable, shall have received (i) the Equity Contribution
and (ii) at least $725,000,000 of gross proceeds from the initial
borrowings under the First Lien Credit Agreement, and Administrative Agent
shall have received executed copies of all documentation relating to the First
Lien Credit Agreement, in form and substance reasonably satisfactory to it.

 

(d)   Consummation of Transactions Contemplated
by Related Agreements.

 

(i)   (1) All
conditions (other than those which the failure to satisfy would not have an
adverse effect on the Lenders) to the Acquisition set forth in the Acquisition
Agreement shall have been satisfied or the fulfillment of any such conditions
shall have been waived with the consent of Administrative Agent and Syndication
Agent, (2) the Acquisition shall have been consummated in accordance with
the terms of the Acquisition Agreement and (3) the Acquisition shall have
been approved by the shareholders of Parent in accordance with its certificate
of incorporation and the shareholders of Parent shall not have exercised
conversion rights with respect to more than 40% of the shares issued in
Parent’s initial public offering.

 

50

 

(ii)   Administrative Agent
and Syndication Agent shall each have received a fully executed or conformed
copy of the Acquisition Agreement (including the schedules and exhibits
thereto) and any material documents executed in connection therewith.  Each Related Agreement shall be in full force
and effect, and no provision thereof shall have been modified or waived in any
respect determined by Administrative Agent or Syndication Agent to be adverse
to the Lenders, in each case without the consent of Administrative Agent and
Syndication Agent.

 

(e)   Existing Indebtedness; No Default.  On the Closing Date, Boise Cascade, L.L.C.
shall have (i) repaid in full all Existing Indebtedness,
(ii) terminated any commitments to lend or make other extensions of credit
thereunder, (iii) delivered to Administrative Agent and Syndication Agent
all customary payoff letters necessary to release all Liens securing Existing
Indebtedness or other obligations of Holdings and its Subsidiaries thereunder
being repaid on the Closing Date, (iv) made arrangements reasonably
satisfactory to Administrative Agent and Syndication Agent with respect to the
cancellation of any letters of credit outstanding thereunder or the issuance of
Letters of Credit (under and as defined in the First Lien Credit Agreement) to
support the obligations of Holdings and its Subsidiaries with respect thereto,
and (v) caused the release of guarantees, if any, of Holdings and its
Subsidiaries of the $400,000,000 senior subordinated notes due 2014 issued by
Boise Cascade, L.L.C. and Boise Cascade Finance Corporation.  No default shall have occurred and be
continuing on the Closing Date under any material Indebtedness of Holdings or
any of its Subsidiaries that will remain outstanding after the Closing Date.

 

(f)   Funds Flow Memorandum.  On or prior to the Closing Date, Borrower
shall have delivered to Administrative Agent a funds flow memorandum.

 

(g)   Governmental Authorizations and Consents.  Each Credit Party shall have obtained
all Governmental Authorizations and all material consents of other
Persons, in each case that are necessary in connection with the transactions
contemplated by the Credit Documents and the Related Agreements and each of the
foregoing shall be in full force and effect and in form and substance
reasonably satisfactory to Administrative Agent and Syndication Agent.  All applicable waiting periods shall have
expired without any action being taken or threatened by any competent authority
which would restrain, prevent or otherwise impose adverse conditions on the
transactions contemplated by the Credit Documents or the Related Agreements or
the financing thereof and no action, request for stay, petition for review or
rehearing, reconsideration, or appeal with respect to any of the foregoing
shall be pending, and the time for any applicable agency to take action to set
aside its consent on its own motion shall have expired.

 

(h)   Real Estate Assets.  In order to create in favor of Collateral
Agent, for the benefit of Secured Parties, a valid and, subject to any filing
and/or recording referred to herein, perfected Second Priority security
interest in certain Real Estate Assets, Collateral Agent shall have received
from Borrower and each applicable Guarantor:

 

(i)   fully executed and
notarized Mortgages, in proper form for recording in all appropriate places in
all applicable jurisdictions, encumbering each Real Estate Asset listed in
Schedule 3.1(h) (each, a “Closing
Date Mortgaged Property’’);

 

51

 

(ii)   an opinion of counsel
(which counsel shall be reasonably satisfactory to Collateral Agent; provided
that any counsel used in connection with the creation of Liens securing
Existing Indebtedness shall be deemed to be reasonably satisfactory to the
Collateral Agent) in each state in which a Closing Date Mortgaged Property is
located with respect to the enforceability of the form(s) of Mortgages to
be recorded in such state and such other matters as Collateral Agent may
reasonably request, in each case in form and substance reasonably satisfactory
to Collateral Agent;

 

(iii)   in the case of each
Leasehold Property that is a Closing Date Mortgaged Property, (1) a
Landlord Consent and Estoppel and (2) evidence that such Leasehold
Property is a Recorded Leasehold Interest;

 

(iv)   (A)  ALTA
mortgagee title insurance policies or unconditional commitments therefor issued
by First American Title Insurance Company or one or more title companies
reasonably satisfactory to Collateral Agent with respect to each Closing Date
Mortgaged Property (each, a “Title Policy”),
in amounts not less than the fair market value of each Closing Date Mortgaged
Property, together with a title report issued by a title company with respect
thereto, dated not more than thirty days prior to the Closing Date and copies
of all recorded documents listed as exceptions to title or otherwise referred
to therein, each in form and substance reasonably satisfactory to Collateral
Agent and (B) evidence reasonably satisfactory to Collateral Agent that
such Credit Party has paid to the title company or to the appropriate
governmental authorities all expenses and premiums of the title company and all
other sums required in connection with the issuance of each Title Policy and
all recording and stamp taxes (including mortgage recording and intangible
taxes) payable in connection with recording the Mortgages for each Closing Date
Mortgaged Property in the appropriate real estate records;

 

(v)   flood certifications
with respect to all Closing Date Mortgaged Properties and evidence of flood
insurance with respect to each Flood Hazard Property that is located in a
community that participates in the National Flood Insurance Program, in each
case in compliance with any applicable regulations of the Board of Governors,
in form and substance reasonably satisfactory to Collateral Agent; and

 

(vi)   surveys (which may be
ALTA surveys or surveys in the form of Express Maps prepared by First American
Title Insurance Company) of the Closing Date Mortgaged Properties identified on
Schedule 3.1(h)(vi), certified to Collateral Agent and dated not more than 60
days prior to the Closing Date; provided that, “No Change” affidavits
shall be accepted by the Collateral Agent in lieu of new ALTA surveys so long
as the same are acceptable to the applicable title companies and the Collateral
Agent is able to obtain ALTA mortgagee title insurance policies in form and
substance reasonably satisfactory to Collateral Agent on the basis of the same.

 

Notwithstanding
the foregoing, with respect to any Closing Date Mortgaged Property with respect
to which the documents, opinions and actions described in clauses
(i) through (vi) above have not been delivered or taken on or prior
to the Closing Date, the delivery of such documents and opinions and the taking
of such actions shall not

 

52

 

constitute a
condition precedent to the initial Credit Extension, and Borrower shall deliver
or cause to be delivered such documents and opinions, and take or cause to be
taken such other actions, as may be required under clauses (i) through
(vi) above, within the periods set forth in the Post-Closing Agreement.

 

(i)   Personal Property Collateral.  In order to create in favor of Collateral
Agent, for the benefit of Secured Parties, a valid and, subject to any filing
and/or recording referred to herein, perfected Second Priority security
interest in the personal property Collateral, each Credit Party shall have delivered
to Collateral Agent originals or copies of:

 

(i)   evidence reasonably
satisfactory to Collateral Agent of the compliance by each applicable Credit
Party of their obligations under the Pledge and Security Agreement and the
other Collateral Documents (including their obligations to execute and deliver
UCC financing statements, originals of Securities, instruments and chattel
paper and their use of commercially reasonable efforts to deliver any
agreements governing deposit and/or Securities accounts as provided therein);

 

(ii)   a completed
Collateral Questionnaire dated the Closing Date and executed by an Authorized
Officer of each Credit Party, together with all attachments contemplated
thereby;

 

(iii)   fully executed
Intellectual Property Security Agreements; and

 

(iv)   evidence that each
Credit Party shall have used commercially reasonable efforts to execute and
deliver or caused to be executed and delivered any other agreement, document
and instrument (including (i) a Landlord Personal Property Collateral
Access Agreement executed by the landlord of any Leasehold Property and by the
applicable Credit Party (other than with respect to (1) the corporate
headquarters of the Acquired Business and (2) any Leasehold Property
containing personal property Collateral with an estimated value of less than
$5,000,000) and (ii) any intercompany notes evidencing Indebtedness
permitted to be incurred pursuant to Section 6.1(b)) and made or caused to
be made any other filing and recording (other than as set forth herein)
reasonably required by Collateral Agent.

 

(j)   Financial Statements; Projections.  Arrangers shall have received from Holdings
(i) the Historical Financial Statements, (ii) pro forma consolidated
balance sheets and related statements of income and cash flows of Holdings and
its Subsidiaries as at December 31, 2007, and reflecting the consummation
of the Acquisition, the relating financings and the other transactions
contemplated by the Credit Documents and the First Lien Credit Agreement to
occur on or prior to the Closing Date, which pro forma financial statements
shall meet the requirements of Regulation S-X for Form S-1 registration
statements (other than (A) the adjustments to Consolidated Adjusted EBITDA
set forth in clauses (e) through (j) of the definition thereof,
(B) as required by Rule 3-10 of Regulation S-X and (C) other
adjustments as Arrangers and Borrower have agreed are appropriate prior to the
Closing Date), and (iii) the Projections.

 

(k)   Evidence of Insurance.  Collateral Agent shall have received a
certificate from Borrower’s insurance broker or other evidence reasonably
satisfactory to it that all

 

53

 

insurance
required to be maintained pursuant to Section 5.5 is in full force and
effect, together with endorsements naming the Collateral Agent, for the benefit
of Secured Parties, as additional insured and loss payee thereunder to the
extent required under Section 5.5.

(l)   Opinions of Counsel to Credit Parties.  Lenders and their respective counsel shall
have received executed originals or copies of the favorable written opinions of
(i) Kirkland & Ellis LLP, counsel for Credit Parties (other than
Holdings, Aldabra and Minnesota, Dakota & Western Railway Company (“MDWR”), (ii) Kramer Levin
Naftalis & Frankel LLP, counsel for Holdings and Aldabra and
(iii) Parinsen, Kaplan, Rosberg & Gotlieb P.A., counsel to MDWR,
in each case as to such matters as Administrative Agent or Syndication Agent
may reasonably request, dated as of the Closing Date in form and substance
reasonably satisfactory to Administrative Agent and Syndication Agent (and each
Credit Party hereby instructs such counsel to deliver such opinions to Agents
and Lenders).

 

(m)   Compliance with Commitment Letter and Fee
Letter.  Borrower shall have paid to
Agents and Lenders, as the case may be, the fees payable on the Closing Date
referred to in Sections 2.11(a) and (b) and shall have complied in
all material respects with all of its other obligations under the Commitment
Letter and the Fee Letter.

 

(n)   Solvency Certificate.  On the Closing, Date Administrative Agent and
Syndication Agent shall have received a Solvency Certificate from Borrower in
form, scope and substance reasonably satisfactory to Administrative Agent and Syndication
Agent, and demonstrating that after giving effect to the consummation of the
Acquisition and the initial borrowings hereunder and under the First Lien
Credit Agreement, Borrower and its Subsidiaries are and will be Solvent on a
consolidated basis.

 

(o)   Closing Date Certificate.  Borrower shall have delivered to
Administrative Agent and Syndication Agent an original or copy of an executed
Closing Date Certificate, together with all attachments thereto.

 

(p)   No Litigation.  There shall not exist any action, suit,
investigation, litigation, proceeding or other legal or regulatory
developments, pending or, to the knowledge of Borrower, threatened in any court
or before any arbitrator or Governmental Authority that, in the reasonable
opinion of Administrative Agent and Syndication Agent, individually or in the
aggregate, materially impairs the Acquisition, the related transactions or the
financing thereof or that seeks to impose liability on any of the Arrangers,
Lenders, Holdings and/or Borrower in connection with any indebtedness of Boise
Cascade, L.L.C. that is remaining outstanding after consummation of the
Acquisition.

 

(q)   Maximum Leverage Ratio.  The ratio of (i) (A) Consolidated
Total Debt as of the Closing Date after giving effect to the Acquisition, the
transactions contemplated herein and under the First Lien Credit Agreement minus
(B) $44,500,000 to (ii) pro forma Consolidated Adjusted EBITDA after
giving effect to the Acquisition (calculated in accordance with
Regulation S-X together with such additional adjustments that Arrangers
agree are appropriate) for the twelve-month period ended December 31, 2007
shall not be greater than 4.29:1.00.

 

54

 

(r)   Patriot Act.  At least 10 days prior to the Closing Date,
Arrangers shall have received all reasonably requested documentation and other
information required by bank regulatory authorities under applicable
“know-your-customer” and anti-money laundering rules and regulations,
including the U.S.A. Patriot Act (Title III of Pub. L. 107-56 (signed into law
October 26, 2001) the “Patriot Act”);
provided, that Arrangers have made such request to Borrower at least 15
days prior to the Closing Date.

 

(s)   No Material Adverse Change.  Since December 31, 2006, no Material
Adverse Change shall have occurred.

 

(t)   Funding Notice.  Administrative Agent shall have received a
fully executed and delivered Funding Notice.

 

(u)   Representations and Warranties.  The representations and warranties contained
herein and in the other Credit Documents shall be true and correct in all
material respects (except that any representation or warranty that is qualified
as to materiality or Material Adverse Effect shall be true and correct in all
respects) on and as of the Closing Date to the same extent as though made on
and as of that date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and
warranties shall have been true and correct in all material respects (except
that any representation or warranty that is qualified as to materiality or
Material Adverse Effect shall have been true and correct in all respects) on
and as of such earlier date; provided that, solely for the purpose of
satisfying this Section 3.1(u) on the Closing Date (and not for the
purpose of determining whether an Event of Default under
Section 8.1(d) has occurred), any reference to Material Adverse
Effect in Section 4 shall be deemed to mean a Material Adverse Change.

 

(v)   No Default.  No event shall have occurred and be
continuing or would result from the consummation of the applicable Credit
Extension that would constitute an Event of Default or a Default; provided
that, solely for the purpose of satisfying this Section 3.1(v) on the
Closing Date (and not for the purpose of determining whether an Event of
Default under Section 8.1(c) and/or Section 8.1(e) has
occurred), any reference to Material Adverse Effect in Sections 4 and 5 shall
be deemed to mean a Material Adverse Change.

 

3.2.   Notices.  Any Notice shall be executed by an Authorized
Officer in a writing delivered to Administrative Agent.  In lieu of delivering a Notice, Borrower may
give Administrative Agent telephonic notice by the required time of any
proposed borrowing or conversion/continuation, as the case may be; provided
each such notice shall be promptly confirmed in writing by delivery of the
applicable Notice to Administrative Agent on or before the applicable date of
borrowing or continuation/conversion. 
Neither Administrative Agent nor any Lender shall incur any liability to
Borrower in acting upon any telephonic notice referred to above that
Administrative Agent believes in good faith to have been given by a duly
authorized officer or other person authorized on behalf of Borrower or for
otherwise acting in good faith.

 

55

 

SECTION 4.   REPRESENTATIONS AND WARRANTIES

 

In order to
induce Lenders to enter into this Agreement and to make each Credit Extension
to be made thereby, each Credit Party represents and warrants to each Lender,
on the Closing Date (it being understood and agreed that the representations
and warranties made on the Closing Date are deemed to be made concurrently with
the consummation of the Acquisition and the related transactions contemplated
hereby):

 

4.1.   Organization; Requisite Power and Authority;
Qualification. 
Each of Holdings and its Subsidiaries (a) is duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization as identified in Schedule 4.1, (b) has all requisite
power and authority to carry on its business as now conducted, to enter into
the Credit Documents to which it is a party and to carry out the transactions
contemplated thereby, and (c) is qualified to do business and in good
standing in every jurisdiction where its assets are located and wherever
necessary to carry out its business and operations, except in jurisdictions where
the failure to be so qualified or in good standing could not be reasonably
expected to have, individually or in the aggregate, a Material Adverse Effect.

 

4.2.   Equity Interests and Ownership.  The Equity Interests of each of Holdings and
its Subsidiaries have been duly authorized and validly issued and are fully
paid and, with respect to corporate shares, non-assessable.  Except as set forth on Schedule 4.2, as of
the date hereof, there is no existing option, warrant, call, right, commitment
or other agreement to which Borrower or any of its Subsidiaries is a party
requiring, and there is no membership interest or other Equity Interests of
Borrower or any of its Subsidiaries outstanding which upon conversion or
exchange would require the issuance by Borrower or any of its Subsidiaries of
any additional membership interests or other Equity Interests of Borrower or
any of its Subsidiaries or other Securities convertible into, exchangeable for
or evidencing the right to subscribe for or purchase, a membership interest or
other Equity Interests of Borrower or any of its Subsidiaries.  Schedule 4.2 correctly sets forth the
ownership interest of Holdings and each of its Subsidiaries in their respective
Subsidiaries as of the Closing Date.

 

4.3.   Due Authorization.  The execution, delivery and performance of
the Credit Documents have been duly authorized by all necessary action on the
part of each Credit Party that is a party thereto.

 

4.4.   No Conflict.  The execution, delivery and performance by
Credit Parties of the Credit Documents to which they are parties and the
consummation of the transactions contemplated by the Credit Documents to which
they are parties do not and will not (a) violate (i) any provision of
any law or any governmental rule or regulation applicable to Holdings or
any of its Subsidiaries, (ii) any of the Organizational Documents of
Holdings or any of its Subsidiaries, or (iii) any order, judgment or
decree of any court or other agency of government binding on Holdings or any of
its Subsidiaries; (b) conflict with, result in a breach of or constitute
(with due notice or lapse of time or both) a default under any Contractual
Obligation of Holdings or any of its Subsidiaries; (c) result in or
require the creation or imposition of any Lien upon any of the properties or
assets of Holdings or any of its Subsidiaries (other than any Liens created
under any of the Credit Documents in favor of Collateral Agent, on behalf of
Secured Parties); or (d) require any approval of stockholders, members or
partners or any

 

56

 

approval or
consent of any Person under any Contractual Obligation of Holdings or any of
its Subsidiaries, except for any such approval or consent (i) which will
be obtained on or before the Closing Date and disclosed in writing to Lenders
or (ii) where the failure to obtain such approval or consent could not
reasonably be expected to have a Material Adverse Effect.

 

4.5.   Governmental Consents.  The execution, delivery and performance by
the Credit Parties of the Credit Documents to which they are parties and the
consummation of the transactions contemplated by the Credit Documents to which
they are parties do not and will not require any registration with, consent or
approval of, or notice to, or other action to, with or by, any Governmental
Authority except (a) as otherwise set forth in the Acquisition Agreement,
(b) as have been obtained or made on or prior to the date hereof and
(c) for filings and recordings with respect to (i) the Collateral to
be made or otherwise delivered to Collateral Agent for filing and/or
recordation and (ii) the collateral for the First Lien Credit Agreement to
be made or otherwise delivered to the First Lien Collateral Agent for filing
and/or recordation.

 

4.6.   Binding Obligation.  This Agreement has been duly executed and
delivered by each Credit Party that is a party hereto and constitutes, and each
other Credit Document to which any Credit Party is a party, when executed and
delivered by such Credit Party will constitute, a legal, valid and binding
obligation of such Credit Party, enforceable against such Credit Party in
accordance with its respective terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or limiting
creditors’ rights generally or by equitable principles relating to
enforceability, regardless of whether considered in a proceeding in equity or
at law.

 

4.7.   Historical Financial Statements.  The Historical Financial Statements set forth
in (a) clauses (i) and (ii) of the definition thereof were
prepared in conformity with GAAP and fairly present, in all material respects,
the financial position, on a consolidated basis, of the Persons described in
such financial statements as at the respective dates thereof and the results of
operations and cash flows, on a consolidated basis, of the entities described
therein for each of the periods then ended, subject, in the case of any such
unaudited financial statements, to the absence of footnotes and changes
resulting from audit and normal year-end adjustments and (b) clause
(iii) of the definition thereof were prepared with the customary
accounting methods, policies, practices and procedures, including
classification and estimation methodology, used by Boise Cascade, L.L.C. and
its parent company with respect to Boise White Paper, L.L.C. and Boise
Packaging & Newsprint, L.L.C. during their annual and interim
accounting periods from January 1, 2005  through
the date hereof.  As of the Closing Date,
neither Holdings nor any of its Subsidiaries has any contingent liability or
liability for taxes, long-term lease or unusual forward or long-term commitment
that is not reflected in the Historical Financial Statements or the notes
thereto and which in any such case is material in relation to the business,
operations, assets or financial condition of Holdings and any of its
Subsidiaries taken as a whole as required by GAAP.

 

4.8.   Projections.  On and as of the Closing Date, the
projections of Holdings and its Subsidiaries for the period of Fiscal Year 2008
through and including Fiscal Year 2012 (the “Projections”)
are based on good faith estimates and assumptions (including estimates from
third party sources) believed to be reasonable by the management of Holdings at
the time of preparation; provided, the Projections are not to be viewed
as facts, and it being understood that

 

57

 

such
Projections are subject to significant uncertainties and contingencies, many of
which are beyond Holdings’ and its Subsidiaries’ control, that no assurance can
be given that such Projections will be realized, that actual results during the
period or periods covered by the Projections may differ from such Projections
and that the differences may be material; provided  further, as of
the Closing Date, management of Holdings believed that the Projections were
reasonable and attainable at the time of preparation.

 

4.9.   No Material Adverse Change.  Since December 31, 2006, no event, circumstance
or change has occurred that has caused or evidences, either in any case or in
the aggregate, a Material Adverse Effect.

 

4.10.   Reserved.

 

4.11.   Adverse Proceedings, etc.  There are no Adverse Proceedings,
individually or in the aggregate, that could reasonably be expected to have a
Material Adverse Effect.

 

4.12.   Payment of Taxes.  Except as otherwise permitted under
Section 5.3, all federal and state income tax returns and all other
material tax returns and reports of Holdings and its Subsidiaries required to
be filed by any of them have been timely filed, and all taxes shown on such tax
returns to be due and payable and all assessments, fees and other governmental
charges upon Holdings and its Subsidiaries and upon their respective properties,
assets, income, businesses and franchises which are due and payable have been
paid when due and payable.  Holdings
knows of no proposed tax assessment against Holdings or any of its Subsidiaries
except for any such assessment for which appropriate reserves have been
established in accordance with GAAP or that is being actively contested by
Holdings or such Subsidiary in good faith and by appropriate proceedings; provided,
in each case, such reserves or other appropriate provisions, if any, as shall
be required in conformity with GAAP shall have been made or provided therefor.

 

4.13.   Properties.

 

(a)   Title. 
Each of Holdings and its Subsidiaries has good and marketable fee or
leasehold, as applicable, title to all of their respective properties and assets
(other than Intellectual Property) reflected in their respective Historical
Financial Statements referred to in Section 4.7 and in the most recent
financial statements delivered pursuant to Section 5.1, in each case
except for (w) Real Estate listed on Schedule 4.13(a) with respect to
which a binding contract of sale has been entered into on or prior to the
Closing Date, (x) assets disposed of since the date of such financial
statements in the ordinary course of business, (y) minor defects in title
that do not interfere with their ability to conduct their respective businesses
as currently conducted or to utilize such properties for their intended
purposes or (z) as otherwise permitted under Section 6.8.  With respect to Intellectual Property, the
representations and warranties set forth in Section 5.7(a) of the
Pledge and Security Agreement are incorporated in this
Section 4.13(a).  Except as
permitted by this Agreement, all such properties and assets are free and clear
of Liens.

 

(b)   Real Estate.  As of the Closing Date,
Schedule 4.13(b) contains a true, accurate and complete list of
(i) all Real Estate Assets (excluding leases and subleases with rental
payments of less than $100,000 per year), and (ii) all leases, subleases
or assignments of 

 

58

 

leases
(together with all amendments, modifications, supplements, renewals or
extensions of any thereof) with rental payments in excess of $100,000 per year
affecting each Real Estate Asset of any Credit Party, regardless of whether
such Credit Party is the landlord or tenant (whether directly or as an assignee
or successor in interest) under such lease, sublease or assignment.  Each agreement listed in clause (ii) of the
immediately preceding sentence is in full force and effect and Holdings does
not have knowledge of any default that has occurred and is continuing
thereunder, and each such agreement constitutes the legally valid and binding
obligation of each applicable Credit Party, enforceable against such Credit
Party in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or limiting creditors’ rights generally or by equitable principles.

 

4.14.   Environmental Matters.  Neither Holdings nor any of its Subsidiaries
nor any of their respective Facilities or operations are subject to any
outstanding written order, consent decree or settlement agreement with any
Person relating to any Environmental Law, any Environmental Claim, or any
Hazardous Materials Activity that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.  Neither Holdings nor any of its Subsidiaries
has received any letter or request for information under Section 104
of the Comprehensive Environmental Response, Compensation, and Liability Act
(42 U.S.C. § 9604) or any comparable state law where the subject of such
letter or request could reasonably be expected to result in a Material Adverse
Effect.  There are and, to each of
Holdings’ and its Subsidiaries’ knowledge, have been, no conditions,
occurrences, or Hazardous Materials Activities which could reasonably be
expected to form the basis of an Environmental Claim against Holdings or any of
its Subsidiaries that, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect. 
Neither Holdings nor any of its Subsidiaries nor, to any Credit Party’s
knowledge, any predecessor of Holdings or any of its Subsidiaries has filed any
notice under any Environmental Law indicating past or present treatment of
Hazardous Materials at any Facility, and none of Holdings’ or any of its
Subsidiaries’ operations involves the generation, transportation, treatment,
storage or disposal of hazardous waste, as defined under 40 C.F.R. Parts
260-270 or any state equivalent, which, in either case, could reasonably be
expected to result in a Material Adverse Effect.  Compliance with all current or reasonably
foreseeable future requirements pursuant to or under Environmental Laws could
not be reasonably expected to have, individually or in the aggregate, a
Material Adverse Effect.  No event or
condition has occurred or is occurring with respect to Holdings or any of its
Subsidiaries relating to any Environmental Law, any Release of Hazardous
Materials, or any Hazardous Materials Activity which individually or in the
aggregate has had, or could reasonably be expected to have, a Material Adverse
Effect.

 

4.15.   No Defaults.  Neither Holdings nor any of its Subsidiaries
is in default in the performance, observance or fulfillment of any of the
obligations, covenants or conditions contained in any of its Contractual
Obligations, and no condition exists which, with the giving of notice or the
lapse of time or both, could constitute such a default, except, in each case,
where the consequences, direct or indirect, of such default or defaults, if
any, could not reasonably be expected to have a Material Adverse Effect.

 

4.16.   Material Contracts.  Schedule 4.16 contains a true, correct
and complete list of all the Material Contracts in effect on the Closing Date,
and except as described thereon, all such

 

59

 

Material
Contracts are in full force and effect and no defaults exist thereunder as of
the Closing Date.

 

4.17.   Governmental Regulation.  Neither Holdings nor any of its Subsidiaries
is a “registered investment company” or a company “controlled” by a “registered
investment company” or a “principal underwriter” of a “registered investment
company” as such terms are defined in the Investment Company Act of 1940.

 

4.18.   Margin Stock.  Neither Holdings nor any of its Subsidiaries
is engaged principally, or as one of its important activities, in the business
of extending credit for the purpose of purchasing or carrying any Margin
Stock.  No part of the proceeds of the
Loans made to any Credit Party will be used to purchase or carry any such
Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any such Margin Stock or for any purpose that violates, or is
inconsistent with, the provisions of Regulation T, U or X of said Board of
Governors.

 

4.19.   Employee Matters.  Neither Holdings nor any of its Subsidiaries
is engaged in any unfair labor practice that could reasonably be expected to
have a Material Adverse Effect.  There is
(a) no unfair labor practice complaint pending against Holdings or any of
its Subsidiaries, or to the best knowledge of Holdings and Borrower, threatened
against any of them before the National Labor Relations Board and no grievance
or arbitration proceeding arising out of or under any collective bargaining
agreement that is so pending against Holdings or any of its Subsidiaries or to
the best knowledge of Holdings and Borrower, threatened against any of them,
(b) no strike or work stoppage in existence or threatened involving
Holdings or any of its Subsidiaries, and (c) to the best knowledge of
Holdings and Borrower, no union representation question existing with respect to
the employees of Holdings or any of its Subsidiaries and, to the best knowledge
of Holdings and Borrower, no union organization activity that is taking place,
except (with respect to any matter specified in clause (a), (b) or
(c) above, either individually or in the aggregate) such as is not
reasonably likely to have a Material Adverse Effect.

 

4.20.   Employee Benefit Plans.   Except as could not reasonably be expected
to result in a Material Adverse Effect, Holdings, each of its Subsidiaries and
each of their respective ERISA Affiliates are in compliance with all applicable
provisions and requirements of ERISA and the Internal Revenue Code and the
regulations and published interpretations thereunder with respect to each
Employee Benefit Plan.  Other than with
respect to any retirement plans newly adopted or spun-off as contemplated under
the Acquisition Agreement, each Employee Benefit Plan which is intended to
qualify under Section 401(a) of the Internal Revenue Code has
received a favorable determination letter from the Internal Revenue Service
indicating that such Employee Benefit Plan is so qualified or has a
determination letter request pending with the Internal Revenue Service and
nothing has occurred subsequent to the issuance of such determination letter
which would reasonably be expected to cause such Employee Benefit Plan to lose
its qualified status.  No liability
(i) to the PBGC (other than required premium payments) or the Internal
Revenue Service, in either case, with respect to any Employee Benefit Plan, or
(ii) to any Employee Benefit Plan or any trust established under Title IV
of ERISA, in any case, has been or is expected to be incurred by Holdings, any
of its Subsidiaries or any of their ERISA Affiliates, except as could not reasonably
be expected to result in a Material Adverse Effect.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all

 

60

 

other such
ERISA Events for which liability is reasonably expected to occur, could
reasonably be expected to result in a Material Adverse Effect.  The
aggregate liability of Holdings and its Subsidiaries with respect to “expected post-retirement benefit
obligations” within the meaning of the Financial Accounting Standards Board
Statement 106 does not exceed $5,000,000.  The present value of the aggregate benefit
liabilities under each Pension Plan sponsored, maintained or contributed to by
Holdings, any of its Subsidiaries or any of their ERISA Affiliates (determined
as of the end of the most recent plan year on the basis of the actuarial
assumptions specified for funding purposes in the most recent actuarial
valuation for such Pension Plan), did not exceed the aggregate current value of
the assets of such Pension Plan by an amount that, if required to be paid,
would reasonably be expected to result in a Material Adverse Effect.  As of the most recent valuation date for each
Multiemployer Plan for which the actuarial report is available, the potential
liability of Holdings, its Subsidiaries and their respective ERISA Affiliates
for a complete withdrawal from such Multiemployer Plan (within the meaning of
Section 4203 of ERISA), when aggregated with such potential liability for
a complete withdrawal from all Multiemployer Plans, could not reasonably be
expected to result in a Material Adverse Effect. Holdings, each of its
Subsidiaries and each of their ERISA Affiliates have complied in all material
respects with the requirements of Section 515 of ERISA with respect to
each Multiemployer Plan and are not in material “default” (as defined in
Section 4219(c)(5) of ERISA) with respect to payments to a
Multiemployer Plan.

 

4.21.   Certain Fees.  As of the Closing Date, no broker’s or
finder’s fee or commission will be payable with respect to the transactions
contemplated by the Related Agreements, except (i) as payable to
(a) the Agents and the Lenders and (b) the agents and lenders party
to the First Lien Credit Agreement and related documents thereto and
(ii) as set forth on Schedule 4.21.

 

4.22.   Solvency.  As of the Closing Date, the Credit Parties
are Solvent on a consolidated basis.

 

4.23.   Related Agreements.  Holdings and Borrower have delivered to
Administrative Agent and Syndication Agent complete and correct copies of
(i) each Related Agreement and of all exhibits and schedules thereto as of
the date hereof and (ii) copies of any material amendment, restatement,
supplement or other modification to or waiver of each Related Agreement entered
into after the date hereof.

 

4.24.   Compliance with Statutes, etc.  Each of Holdings and its Subsidiaries is in
compliance with all applicable statutes, regulations, orders, final judgments,
writs, injunctions, decrees and rules of, and all applicable restrictions
imposed by, all Governmental Authorities, in respect of the conduct of its
business and the ownership of its property (including compliance with all
applicable Environmental Laws with respect to any Real Estate Asset or
governing its business and the requirements of any permits issued under such
Environmental Laws with respect to any such Real Estate Asset or the operations
of Holdings or any of its Subsidiaries), except such non-compliance that,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

 

4.25.   Disclosure.  No representation or warranty of any Credit
Party contained in any Credit Document or in any other documents, certificates
or written statements (other than projections and pro forma financial information
contained in such materials) furnished to any

 

61

 

Agent or
Lender by or on behalf of Holdings or any of its Subsidiaries for use in
connection with the transactions contemplated hereby contains any untrue
statement of a material fact or omits to state a material fact (known to
Holdings or Borrower, in the case of any document not furnished by either of
them) necessary in order to make the statements contained herein or therein not
misleading in light of the circumstances in which the same were made.  Any projections and pro forma financial
information contained in such materials are based upon good faith estimates and
assumptions (including estimates from third party sources) believed by Holdings
or Borrower to be reasonable at the time of preparation, it being recognized by
Lenders that such projections as to future events are not to be viewed as
facts, that such projections as to future events are subject to significant
uncertainties and contingencies, many of which are beyond Holdings’ and its
Subsidiaries’ control, that no assurance can be given that such projections
will be realized and that actual results during the period or periods covered
by any such projections may differ from the projected results.  As of the Closing Date, there are no facts
known (or which should upon the reasonable exercise of diligence be known) to
Holdings or Borrower (other than matters of a general economic nature) that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect and that have not been disclosed herein, in the
definitive proxy statement mailed to stockholders of Parent or in such other
documents, certificates and statements furnished to Lenders for use in connection
with the transactions contemplated hereby.

 

4.26.   Patriot Act.  To the extent applicable, each Credit Party
is in compliance, in all material respects, with the (i) Trading with the
Enemy Act, as amended, and each of the foreign assets control regulations of
the Untied States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) and any other enabling legislation or executive order relating
thereto, and (ii) the Patriot Act. 
No part of the proceeds of the Loans will be used, directly or indirectly,
for any payments to any governmental official or employee, political party,
official of a political party, candidate for political office, or anyone else
acting in an official capacity, in order to obtain, retain or direct business
or obtain any improper advantage, in violation of the United States Foreign
Corrupt Practices Act of 1977, as amended.

 

SECTION 5.   AFFIRMATIVE COVENANTS

 

Each Credit
Party covenants and agrees that until payment in full of all Obligations (other
than contingent obligations for which no claim has been made), each Credit
Party shall perform, and shall cause each of its Subsidiaries to perform, all
covenants in this Section 5.

 

5.1.   Financial Statements and Other Reports.  Holdings will deliver to Administrative Agent
for the benefit of the Lenders:

 

(a)   Reserved.

 

(b)   Quarterly Financial Statements.  As soon as available, and in any event within
45 days after the end of each of the first three Fiscal Quarters of each Fiscal
Year (or, during any time that Holdings or Borrower is subject to the periodic
reporting requirements of the Exchange Act, such shorter period as the
Securities and Exchange Commission shall specify for the filing of quarterly
reports on Form 10-Q), commencing with the Fiscal Quarter in which the Closing
Date occurs, the consolidated balance sheets of Holdings and its Subsidiaries
as at

 

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the end of
such Fiscal Quarter and the related consolidated statements of income and cash
flows of Holdings and its Subsidiaries for such Fiscal Quarter in the form
required to be prepared if such financial statements were included in a
Form 10-Q and for the period from the beginning of the then current Fiscal
Year to the end of such Fiscal Quarter, setting forth in each case in
comparative form the corresponding figures for the corresponding periods of the
previous Fiscal Year and the corresponding figures from the Financial Plan for
the current Fiscal Year, all in reasonable detail, together with a Financial
Officer Certification and, at any time Parent (x) fails to file its
quarterly report on Form 10-Q with the Securities and Exchange Commission,
(y) ceases to be required to make filings with the Securities and Exchange
Commission or (z) acquires any entity other than a Credit Party or a
Subsidiary thereof, a Narrative Report with respect thereto;

 

(c)   Annual Financial Statements.  As soon as available, and in any event within
90 days after the end of each Fiscal Year (or, during any time that Holdings or
Borrower is subject to the periodic reporting requirements of the Exchange Act,
such shorter period as the Securities and Exchange Commission shall specify for
the filing of annual reports on Form 10-K), commencing with the Fiscal
Year ended December 31, 2007, (i) the consolidated balance sheets of
Holdings and its Subsidiaries as at the end of such Fiscal Year and the related
consolidated statements of income, stockholders’ equity and cash flows of
Holdings and its Subsidiaries for such Fiscal Year in the form required to be
prepared if such financial statements were included in a Form 10-K,
setting forth in each case in comparative form the corresponding figures for
the previous Fiscal Year and the corresponding figures from the Financial Plan
for the Fiscal Year covered by such financial statements, in reasonable detail,
together with a Financial Officer Certification and, at any time Parent
(x) fails to file its annual report on Form 10-K with the Securities
and Exchange Commission, (y) ceases to be required to make filings with
the Securities and Exchange Commission or (z) acquires any entity other
than a Credit Party or a Subsidiary thereof, a Narrative Report with respect
thereto; and (ii) with respect to such consolidated financial statements a
report thereon of KPMG LLP or other independent certified public accountants of
recognized national standing selected by Holdings, (which report shall be
unqualified as to going concern and scope of audit, and shall state that such
consolidated financial statements fairly present, in all material respects, the
consolidated financial position of Holdings and its Subsidiaries as at the
dates indicated and the results of their operations and their cash flows for
the periods indicated in conformity with GAAP applied on a basis consistent
with prior years (except as otherwise disclosed in such financial statements)
and that the examination by such accountants in connection with such
consolidated financial statements has been made in accordance with generally
accepted auditing standards) together with a written statement by such
independent certified public accountants stating (1) that their audit
examination has included a review of the terms of Section 6.7 of this
Agreement and the related definitions and (2) whether, in connection
therewith, any condition or event that constitutes a Default or an Event of
Default under Section 6.7 has come to their attention and, if such a
condition or event has come to their attention, specifying the nature and
period of existence thereof;

 

(d)   Compliance Certificate.  Together with each delivery of financial
statements of Holdings and its Subsidiaries pursuant to Sections
5.1(b) and 5.1(c), a duly executed and completed Compliance Certificate;

 

(e)   Reserved.

 

63

 

(f)   Notice of Default.  Promptly upon any Authorized Officer of
Holdings or Borrower obtaining knowledge (i) of any occurrence of any
Default or any Event of Default or that notice has been given to Holdings or
Borrower with respect thereto or (ii) of the occurrence of any event or
change that has caused or results in, either in any case or in the aggregate, a
Material Adverse Effect, a certificate of its Authorized Officer specifying the
nature and period of existence of such condition, event or change, or
specifying the notice given and action taken by any such Person and the nature
of such claimed Event of Default, Default, default, event or condition, and
what action Borrower has taken, is taking and proposes to take with respect thereto;

 

(g)   Notice of Litigation.  Promptly upon any Authorized Officer of
Holdings or Borrower obtaining knowledge of (i) the institution of, or
non-frivolous written threat of, any Adverse Proceeding not previously
disclosed in writing by Borrower to Lenders, or (ii) any material
development in any Adverse Proceeding that, in the case of either clause
(i) or (ii), could be reasonably expected to have a Material Adverse
Effect, or seeks to impose liability on any of the Arrangers, Lenders, Holdings
and/or Borrower in connection with any indebtedness of Boise Cascade, L.L.C.
that is remaining outstanding after consummation of the Acquisition, or seeks
to enjoin or otherwise prevent the consummation of, or to recover any damages
or obtain relief as a result of, the transactions contemplated hereby, written
notice thereof together with such other information as may be reasonably
available to Holdings or Borrower to enable Lenders and their counsel to
evaluate such matters;

 

(h)   ERISA. 
(i) Promptly upon becoming aware of the occurrence of or
forthcoming occurrence of any ERISA Event that could reasonably be expected to
result in a material liability to Holdings or any of its Subsidiaries, a
written notice specifying the nature thereof, what action Holdings, any of its
Subsidiaries or any of their respective ERISA Affiliates has taken, is taking
or proposes to take with respect thereto and, when known, any action taken or
threatened by the Internal Revenue Service, the Department of Labor or the PBGC
with respect thereto; and (ii) with reasonable promptness, upon reasonable
request by the Administrative Agent, copies of (1) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by
Holdings, any of its Subsidiaries or any of their respective ERISA Affiliates
with the Internal Revenue Service with respect to each Pension Plan;
(2) all notices received by Holdings, any of its Subsidiaries or any of
their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an
ERISA Event; and (3) copies of such other documents or governmental
reports or filings relating to any Employee Benefit Plan as Administrative
Agent shall reasonably request;

 

(i)   Financial Plan.  As soon as practicable and in any event no
later than forty-five days after the beginning of each Fiscal Year beginning
with the Fiscal year commencing January 1, 2009, a consolidated plan and
financial forecast for such Fiscal Year (a “Financial
Plan”), including (i) a forecasted consolidated balance sheet
and forecasted consolidated statements of income and cash flows of Holdings and
its Subsidiaries for each such Fiscal Year, together with an explanation of the
assumptions on which such forecasts are based and  (ii) forecasted consolidated statements of income and cash
flows of Holdings and its Subsidiaries for each quarter of each such Fiscal
Year;

 

64

 

(j)   Insurance Certificates.  Together with each delivery of financial
statements of Holdings and its Subsidiaries pursuant to Section 5.1(c), a
certificate from Borrower’s insurance broker(s) in form and substance
reasonably satisfactory to Administrative Agent updating the certificates
delivered pursuant to Section 3.1(k);

 

(k)   Notice Regarding Material Contracts.  Promptly, and in any event within ten
Business Days (i) after any Material Contract of Holdings or any of its
Subsidiaries is terminated or amended in a manner that is materially adverse to
Holdings or such Subsidiary, as the case may be, or (ii) any new Material
Contract is entered into, a written statement describing such event, with
copies of such material amendments or new contracts, delivered to
Administrative Agent (to the extent such delivery is permitted by the terms of
any such Material Contract, provided, no such prohibition on delivery shall be
effective if it were bargained for by Holdings or its applicable Subsidiary
with the intent of avoiding compliance with this Section 5.1(k)), and an
explanation of any actions being taken with respect thereto;

 

(l)   Information Regarding Collateral.  (a)  Borrower will furnish to Collateral
Agent prompt written notice of any change (i) in any Credit Party’s
corporate name, (ii) in any Credit Party’s identity or corporate
structure, (iii) in any Credit Party’s jurisdiction of organization or
(iv) in any Credit Party’s Federal Taxpayer Identification Number or state
organizational identification number (if any). 
Borrower agrees not to effect or permit any change referred to in the
preceding sentence unless all filings have been made (or have been prepared and
delivered to the Collateral Agent for filing) under the Uniform Commercial Code
or otherwise that are required in order for Collateral Agent to continue at all
times following such change to have a valid, legal and perfected security
interest in all the Collateral as contemplated in the Collateral Documents.  Borrower also agrees promptly to notify
Collateral Agent if any material portion of the Collateral is damaged or
destroyed;

 

(m)   Annual Collateral Verification.  Each year, at the time of delivery of annual
financial statements with respect to the preceding Fiscal Year pursuant to Section 5.1(c),
Borrower shall deliver to Collateral Agent a certificate of its Authorized
Officer either confirming that there has been no change in such information
since the date of the Collateral Questionnaire delivered on the Closing Date or
the date of the most recent certificate delivered pursuant to this
Section and/or identifying such changes;

 

(n)   Other Information.  (A) Promptly upon their becoming
available, copies of (i) all financial statements, reports, notices and
proxy statements sent or made available generally by Holdings to its security
holders acting in such capacity or by any Subsidiary of Holdings to its
security holders other than Holdings or another Subsidiary of Holdings,
(ii) all regular and periodic reports and all registration statements and
prospectuses, if any, filed by Holdings or any of its Subsidiaries with any
securities exchange or with the Securities and Exchange Commission or any
governmental or private regulatory authority, (iii) all press releases and
other statements made available generally by Holdings or any of its
Subsidiaries to the public concerning material developments in the business of
Holdings or any of its Subsidiaries, and (B) such other information and
data with respect to Holdings or any of its Subsidiaries as from time to time
may be reasonably requested by Administrative Agent or any Lender; and

 

65

 

(o)   Certification of Public Information.  Concurrently with the delivery of any
document or notice required to be delivered pursuant to this Section 5.1,
Holdings shall indicate in writing whether such document or notice contains
Nonpublic Information.  Holdings and each
Lender acknowledge that certain of the Lenders may be “public-side” Lenders
(Lenders that do not wish to receive material non-public information with
respect to Holdings, its Subsidiaries or their securities) and, if documents or
notices required to be delivered pursuant to this Section 5.1 or otherwise
are being distributed through IntraLinks/IntraAgency, SyndTrak or another
relevant website or other information platform (the “Platform”), any document or notice that Holdings has
indicated contains Nonpublic Information shall not be posted on that portion of
the Platform designated for such public-side Lenders.  If Holdings has not indicated whether a
document or notice delivered pursuant to this Section 5.1 contains
Nonpublic Information, Administrative Agent shall deem such information to be
Nonpublic Information until confirmed otherwise by Holdings (such confirmation
not to be unreasonably withheld or delayed) and shall not post such document or
notice on that portion of the Platform designated for Lenders who do not wish
to receive material nonpublic information with respect to Holdings, its
Subsidiaries and their Securities.

 

5.2.   Existence.  Except as otherwise permitted under
Section 6.8, each Credit Party will, and will cause each of its
Subsidiaries to, at all times preserve, renew and keep in full force and effect
its (i) existence and (ii) all rights and franchises, licenses and
permits, and Intellectual Property material to the conduct of its business,
except in the case of clause (ii) to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect.

 

5.3.   Payment of Taxes and Claims.  Each Credit Party will, and will cause each
of its Subsidiaries to, pay all Taxes imposed upon it or any of its properties
or assets or in respect of any of its income, businesses or franchises before
any penalty or fine accrues thereon, and all claims (including claims for
labor, services, materials and supplies) for sums that have become due and
payable and that by law have or may become a Lien upon any of its properties or
assets, prior to the time when any penalty or fine shall be incurred with
respect thereto; provided, no such Tax or claim need be paid if it is
being contested in good faith by appropriate proceedings promptly instituted
and diligently conducted, so long as (a) adequate reserve or other appropriate
provision, as shall be required in conformity with GAAP shall have been made
therefor, and (b) in the case of a Tax or claim which has or may become a
Lien against any of the Collateral, such contest proceedings conclusively
operate to stay the sale of any portion of the Collateral to satisfy such Tax
or claim.

 

5.4.   Maintenance of Properties.  Each Credit Party will, and will cause each
of its Subsidiaries to, maintain or cause to be maintained in good repair,
working order and condition, ordinary wear and tear excepted and subject to
casualty and condemnation events (in which case such property shall be repaired
or replaced as promptly as practicable), all material tangible properties used
or useful in the business of Holdings and its Subsidiaries.

 

5.5.   Insurance.  Holdings will maintain or cause to be
maintained, with financially sound and reputable insurers, such public
liability insurance, third party property damage insurance, business
interruption insurance and casualty insurance with respect to liabilities,
losses or damage in respect of the assets, properties and businesses of
Holdings and its Subsidiaries as may customarily be carried or maintained under
similar circumstances by Persons

 

66

 

of established
reputation engaged in similar businesses, in each case in such amounts (giving
effect to self-insurance), with such deductibles, covering such risks and
otherwise on such terms and conditions as shall be customary for such Persons.  Without limiting the generality of the
foregoing, Holdings will maintain or cause to be maintained (a) flood
insurance with respect to each Flood Hazard Property that is located in a
community that participates in the National Flood Insurance Program, in each
case in compliance with any applicable regulations of the Board of Governors of
the Federal Reserve System, and (b) replacement value casualty insurance
on the Collateral under such policies of insurance, with such insurance
companies, in such amounts, with such deductibles, and covering such risks as
are at all times carried or maintained under similar circumstances by Persons
of established reputation engaged in similar businesses.  Each such policy of insurance shall (i) in
the case of each public liability insurance policy and, if available from the
relevant insurance carrier, each casualty insurance policy, name Collateral
Agent, on behalf of Secured Parties, as an additional insured thereunder as its
interests may appear, (ii) in the case of each casualty insurance policy,
contain a loss payable clause or endorsement, reasonably satisfactory in form
and substance to Collateral Agent, that names Collateral Agent, on behalf of
the Secured Parties, as the loss payee thereunder and provides that insurer
shall endeavor to give at least thirty days’ (10 days’ in the case of
non-payment of premium) prior written notice to Collateral Agent of any
modification or cancellation of such policy. 
Notwithstanding anything to the contrary set forth in this Section, so
long as no Default or Event of Default shall have occurred and be continuing,
upon notice from Borrower that it or one or more of its Subsidiaries shall
exercise the reinvestment option described in Section 2.14(b), the
Collateral Agent shall promptly turn over to Borrower any insurance proceeds
received pursuant to this Section.

 

5.6.   Books and Records; Inspections.  Each Credit Party will, and will cause each
of its Subsidiaries to, keep proper books of record and accounts in which full,
true and correct entries in conformity in all material respects with GAAP shall
be made of all dealings and transactions in relation to its business and
activities.  Each Credit Party will, and
will cause each of its Subsidiaries to, permit any authorized representatives
designated by any Lender to visit and inspect any of the properties of any
Credit Party and any of its respective Subsidiaries, to inspect, copy and take
extracts from its and their financial and accounting records, and to discuss
its and their affairs, finances and accounts with its and their officers and
(so long as a representative of Holdings or Borrower has been afforded a
reasonable opportunity to be present at such discussions) independent public
accountants, all upon reasonable notice and at such reasonable times during
normal business hours and as often as may reasonably be requested; provided
that, unless a Default has occurred and is continuing, Borrower shall not be
required to pay the expense of any such visit by a representative of a Lender,
and shall only be required to pay the expense of two such visits by a
representative of Administrative Agent during any Fiscal Year.

 

5.7.   Lenders Meetings.  Holdings and Borrower will, upon the
reasonable request of Administrative Agent or Requisite Lenders, participate in
a meeting of Administrative Agent and Lenders once during each Fiscal Year to
be held at Borrower’s corporate offices (or at such other location as may be
agreed to by Borrower and Administrative Agent) at such time as may be agreed
to by Borrower and Administrative Agent.

 

67

 

5.8.   Compliance with Laws.  Each Credit Party will comply, and shall
cause each of its Subsidiaries to comply, with the requirements of all
applicable laws, rules, regulations and orders of any Governmental Authority
(including all Environmental Laws), noncompliance with which could reasonably
be expected to have, individually or in the aggregate, a Material Adverse
Effect.

 

5.9.   Environmental.

 

(a)   Environmental Disclosure.  Holdings will deliver to Administrative Agent
and Lenders:

 

(i)   as soon as practicable
following receipt thereof, copies of all environmental audits, investigations,
analyses and reports of any kind or character, whether prepared by personnel of
Holdings or any of its Subsidiaries or by independent consultants, governmental
authorities or any other Persons, with respect to environmental matters at any
Facility or with respect to any Environmental Claims that could reasonably be
expected to result in Holdings or any of its Subsidiaries incurring liability
or expenses in excess of $5,000,000;

 

(ii)   promptly upon the
occurrence thereof, written notice describing in reasonable detail (1) any
Release required to be reported to any federal, state or local governmental or
regulatory agency under any applicable Environmental Laws that could reasonably
be expected to give rise to Environmental Claims resulting in Holdings or any
of its Subsidiaries incurring liability or expenses in excess of $5,000,000,
(2) any remedial action taken by Holdings or any other Person in response
to (A) any Hazardous Materials Activities the existence of which has a
reasonable possibility of resulting in one or more Environmental Claims that
could reasonably be expected to result in Holdings or any of its Subsidiaries
incurring liability or expenses in excess of $5,000,000, or (B) any
Environmental Claims that could reasonably be expected to result in Holdings or
any of its Subsidiaries incurring liability or expenses in excess of
$5,000,000, and (3) Holdings’ or Borrower’s discovery of any occurrence or
condition on any real property adjoining or in the vicinity of any Real Estate
Asset that could cause such Real Estate Asset or any part thereof to be subject
to any material restrictions on the ownership, occupancy, transferability or
use thereof under any Environmental Laws;

 

(iii)   as soon as
practicable following the sending or receipt thereof by Holdings or any of its
Subsidiaries, a copy of any and all written communications with respect to
(1) any Environmental Claims that could reasonably be expected to result
in Holdings or any of its Subsidiaries incurring liability or expenses in
excess of $5,000,000, (2) any Release required to be reported to any
federal, state or local governmental or regulatory agency that could reasonably
be expected to give rise to Environmental Claims resulting in Holdings or any
of its Subsidiaries incurring liability or expenses in excess of $5,000,000,
and (3) any request for information from any governmental agency that
suggests such agency is investigating whether Holdings or any of its
Subsidiaries may be potentially responsible for any Hazardous Materials
Activity that could reasonably be expected to give rise to Environmental Claims
resulting in

 

68

 

Holdings or
any of its Subsidiaries incurring liability or expenses in excess of
$5,000,000;

 

(iv)   prompt written notice
describing in reasonable detail (1) any proposed acquisition of stock, assets,
or property by Holdings or any of its Subsidiaries that could reasonably be
expected to (A) expose Holdings or any of its Subsidiaries to, or result
in, Environmental Claims that could reasonably be expected to result in
Holdings or any of its Subsidiaries incurring liability or expenses in excess
of $5,000,000 or (B) affect the ability of Holdings or any of its
Subsidiaries to maintain in full force and effect all material Governmental
Authorizations required under any Environmental Laws for their respective
operations and (2) any proposed action to be taken by Holdings or any of
its Subsidiaries to modify current operations in a manner that could reasonably
be expected to subject Holdings or any of its Subsidiaries to any additional
material obligations or requirements under any Environmental Laws that could
reasonably be expected to result in Holdings or any of its Subsidiaries
incurring liability or expenses in excess of $5,000,000; and

 

(v)   with reasonable
promptness, such other documents and information as from time to time may be
reasonably requested by Administrative Agent in relation to any matters
disclosed pursuant to this Section 5.9(a).

 

(b)   Hazardous Materials Activities, Etc.  Each Credit Party shall promptly take, and
shall cause each of its Subsidiaries promptly to take, any and all actions
necessary to (i) cure any violation of applicable Environmental Laws by
such Credit Party or its Subsidiaries that could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect, and
(ii) make an appropriate response to any Environmental Claim against such
Credit Party or any of its Subsidiaries and discharge any obligations it may
have to any Person thereunder where failure to do so could reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect.

 

5.10.   Subsidiaries.  In the event that any Person becomes a
Domestic Subsidiary of Borrower, Borrower shall (a) promptly cause such
Domestic Subsidiary to become a Guarantor hereunder and a Grantor under
the Pledge and Security Agreement by executing and delivering to Administrative
Agent and Collateral Agent a Counterpart Agreement, and (b) take all such
actions and execute and deliver, or cause to be executed and delivered, all
such documents, instruments, agreements, and certificates as are similar to
those described in Sections 3.1(b), 3.1(h), 3.1(i), and if reasonably required
by the Administrative Agent, 3.1(l).  In
the event that any Person becomes a first-tier Foreign Subsidiary of Borrower,
and the ownership interests of such Foreign Subsidiary are owned by Borrower or
by any Domestic Subsidiary thereof, Borrower shall, or shall cause such
Domestic Subsidiary to, deliver, all such documents, instruments, agreements,
and certificates as are similar to those described in Section 3.1(b)(i),
and Borrower shall take, or shall cause such Domestic Subsidiary to take, all
of the actions referred to in Section 3.1(i)(i) necessary to grant
and to perfect a Second Priority Lien in favor of Collateral Agent, for the
benefit of Secured Parties, in 65% of such ownership interests under the Pledge
and Security Agreement and any local law pledge agreements reasonably required
by Collateral Agent.  With respect to
each such Subsidiary, Borrower shall promptly send to Administrative Agent
written notice setting forth with respect to such Person (i) the date on

 

69

 

which such
Person became a Subsidiary of Borrower, and (ii) all of the data required
to be set forth in Schedules 4.1 and 4.2 with respect to all Subsidiaries of
Borrower; and such written notice shall be deemed to supplement
Schedule 4.1 and 4.2 for all purposes hereof.

 

5.11.   Additional Material Real Estate Assets.  In the event that any Credit Party acquires a
Material Real Estate Asset or the Credit Parties have knowledge (it being
understood that Borrower shall internally evaluate the value of Real Estate
Assets on an annual basis) that a Real Estate Asset owned or leased on the
Closing Date has become a Material Real Estate Asset and such interest has not
otherwise been made subject to the Lien of the Collateral Documents in favor of
Collateral Agent, for the benefit of Secured Parties, then such Credit Party
shall promptly take all such actions and execute and deliver, or cause to be
executed and delivered, all such mortgages, documents, instruments, agreements,
opinions and certificates similar to those described in Sections
3.1(h) and 3.1(i), together with environmental reports, with respect to
each such Material Real Estate Asset that Collateral Agent shall reasonably
request to create in favor of Collateral Agent, for the benefit of Secured
Parties, a valid and, subject to any filing and/or recording referred to
herein, perfected Second Priority security interest in such Material Real
Estate Assets.  In addition to the
foregoing, Borrower shall, at the reasonable request of Collateral Agent,
deliver, from time to time, to Collateral Agent such appraisals as are required
by law or regulation of Real Estate Assets with respect to which Collateral
Agent has been granted a Lien.

 

5.12.   Reserved.

 

5.13.   Further Assurances.  At any time or from time to time upon the
request of Administrative Agent, each Credit Party will, at its expense,
promptly (i) execute, acknowledge and deliver and thereafter register,
file or record in an appropriate governmental office such further documents and
do such other acts and things as Administrative Agent or Collateral Agent deems
reasonably necessary or desirable for the continued validity, perfection and
priority of the Liens on Collateral covered thereby superior to and prior to
the rights of all third Persons other than the holders of Permitted Liens and
subject to no other liens except as permitted by the applicable Collateral
Document, (ii) deliver to the Administrative Agent and the Collateral
Agent such other documentation, consents, authorizations, approvals and orders
in form and substance reasonably satisfactory to the Administrative Agent and
the Collateral Agent as the Administrative Agent and the Collateral Agent shall
reasonably deem necessary to perfect or maintain the Liens on the Collateral
pursuant to the Collateral Documents, and (iii) upon the exercise by the
Administrative Agent, the Collateral Agent or the Lenders of any power, right,
privilege or remedy pursuant to any Credit Document which requires any consent,
approval, registration, qualification or authorization of any Governmental
Authority, execute and deliver all applications, certifications, instruments
and other documents and papers that the Administrative Agent, Collateral Agent
or the Lenders may be so required to obtain. 
In furtherance and not in limitation of the foregoing, each Credit Party
shall take such actions as Administrative Agent or Collateral Agent may
reasonably request from time to time to ensure that the Obligations are
guarantied by the Guarantors and are secured by substantially all of the assets
of Holdings, and its Subsidiaries and all of the outstanding Equity Interests
of Borrower and its Subsidiaries (subject to limitations contained in the
Credit Documents).

 

70

 

5.14.   Miscellaneous Covenants.  Unless otherwise consented to by Requisite
Lenders:

 

(a)           Maintenance of Ratings.  At all times, Borrower shall use commercially
reasonable efforts to maintain ratings (but not specific ratings levels) issued
by Moody’s and S&P with respect to itself and its senior secured debt.

 

(b)           Cash Management Systems.  Holdings and its Subsidiaries shall establish
and maintain cash management systems reasonably acceptable to Administrative
Agent.

 

SECTION 6.   NEGATIVE COVENANTS

 

Each Credit
Party covenants and agrees that until payment in full of all Obligations (other
than contingent obligations for which no claim has been made), such Credit
Party shall perform, and shall cause each of its Subsidiaries to perform, all
covenants in this Section 6.

 

6.1.   Indebtedness.  No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, create, incur, assume or
guaranty, or otherwise become or remain directly or indirectly liable with
respect to any Indebtedness, except:

 

(a)   the Obligations;

 

(b)   Indebtedness of any Subsidiary to Borrower or
to any other Subsidiary, or of Borrower to any Subsidiary; provided,
(i) all such Indebtedness owed to any Credit Party shall be evidenced by
the Intercompany Note, which shall be subject to a Second Priority Lien
pursuant to the Pledge and Security Agreement, (ii) all such Indebtedness
shall be unsecured and, in the case of Indebtedness owed to any Credit Party,
subordinated in right of payment to the payment in full of the Obligations
(other than contingent obligations for which no claim has been made) pursuant
to the terms of the Intercompany Note, (iii) any payment by any Guarantor
Subsidiary under any guaranty of the Obligations shall result in a pro tanto
reduction of the amount of any Indebtedness owed by such Guarantor Subsidiary
to Borrower or to any of its Subsidiaries for whose benefit such payment is
made and (iv) Indebtedness of any Subsidiary that is not a Credit Party to
Borrower or any Guarantor Subsidiary shall be subject to Section 6.6(m);

 

(c)   (i) Indebtedness and other Obligations
(other than with respect to Hedge Agreements and Treasury Services Agreements)
under and as defined in the First Lien Credit Agreement and related documents
in an aggregate principal amount not to exceed $1,072,500,000 and
(ii) Indebtedness of Borrower and/or any of its Subsidiaries under Hedge
Agreements and Treasury Services Agreements;

 

(d)   Indebtedness incurred by Borrower or any of
its Subsidiaries arising from agreements providing for indemnification,
adjustment of purchase price or similar obligations (including, Indebtedness
consisting of the deferred purchase price of property acquired in a Permitted
Acquisition and earn-out obligations incurred in connection with any Permitted
Acquisition), or from guaranties or letters of credit, surety bonds or performance
bonds securing the performance of Borrower or any such Subsidiary pursuant to
such agreements, in connection with the Acquisition, Permitted Acquisitions or
permitted dispositions of any business, assets or Subsidiary of Holdings or any
of its Subsidiaries;

 

71

 

(e)   Indebtedness of Holdings or any of its
Subsidiaries which may be deemed to exist pursuant to any guaranties,
performance, surety, statutory, appeal or similar obligations incurred in the
ordinary course of business;

 

(f)   Indebtedness of Borrower or any of its
Subsidiaries in respect of netting services, overdraft protections and
otherwise in connection with deposit accounts;

 

(g)   guaranties by Holdings or any of its
Subsidiaries in the ordinary course of business of the obligations of
suppliers, customers, franchisees and licensees of Borrower and its
Subsidiaries;

 

(h)   guaranties by Borrower of Indebtedness of a
Subsidiary or guaranties by a Subsidiary of Indebtedness of Borrower or another
Subsidiary with respect, in each case, to Indebtedness otherwise permitted to
be incurred pursuant to this Section 6.1; provided, that
(i) if the Indebtedness that is being guarantied is unsecured and/or
subordinated to the Obligations, the guaranty shall also be unsecured and/or
subordinated to the Obligations and (ii) guaranties by any Credit Party of
Indebtedness of any Subsidiary that is not a Credit Party shall be subject to
Section 6.6(m);

 

(i)   Indebtedness described in Schedule 6.1
(including Indebtedness required to be assumed or incurred pursuant to the
Acquisition Agreement), but not any extensions, renewals or replacements of
such Indebtedness except (i) renewals and extensions expressly provided
for in the agreements evidencing any such Indebtedness as the same are in
effect on the date of this Agreement and (ii) refinancings and extensions
of any such Indebtedness if the terms and conditions thereof are not less
favorable to the obligor thereon or to the Lenders than the Indebtedness being
refinanced or extended, and the average life to maturity thereof is greater
than or equal to that of the Indebtedness being refinanced or extended; provided,
such Indebtedness permitted under the immediately preceding clause (i) or
(ii) above shall not (A) include Indebtedness of an obligor that was
not an obligor with respect to the Indebtedness being extended, renewed or
refinanced, (B) exceed in a principal amount the Indebtedness being
renewed, extended or refinanced or (C) be incurred, created or assumed if
any Default or Event of Default has occurred and is continuing or would result
therefrom;

(j)   Indebtedness of Borrower or any of its
Subsidiaries with respect to Capital Leases and purchase money Indebtedness in
an aggregate amount not to exceed at any time $57,500,000; provided, any
such purchase money Indebtedness shall be secured only by the asset acquired in
connection with the incurrence of such Indebtedness;

 

(k)   (i) Indebtedness of a Person or
Indebtedness attaching to assets of a Person that, in either case, becomes a
Subsidiary or Indebtedness attaching to assets that are acquired by Borrower or
any of its Subsidiaries, in each case after the Closing Date as the result of a
Permitted Acquisition, in an aggregate amount not to exceed $57,500,000 at any
one time outstanding; provided that such Indebtedness existed at the
time such Person became a Subsidiary or at the time such assets were acquired
and, in each case, was not created in anticipation thereof, and (ii) any
refinancing, refunding, renewal or extension of any Indebtedness specified in
subclause (i) above; provided, that (1) the principal amount
of any such Indebtedness is not increased above the principal amount thereof
outstanding immediately prior 

 

72

 

to such
refinancing, refunding, renewal or extension and (2) such Indebtedness
shall not be secured by any assets other than the assets securing the
Indebtedness being renewed, extended or refinanced; and

 

(l)   senior unsecured Indebtedness of Borrower or
any Subsidiary in an aggregate amount not to exceed $57,500,000 at any one time
outstanding; provided that (A) such Indebtedness is in respect of
promissory notes or other debt securities issued as consideration for a
Permitted Acquisition or is in respect of borrowed money, the proceeds of which
are promptly applied as consideration for a Permitted Acquisition or to the
satisfaction of any obligation permitted under Section 6.1(d), (B) no
Default shall have occurred and be continuing at the time of and after giving
effect to the incurrence of such Indebtedness, and (C) prior to the
incurrence of such Indebtedness Borrower shall have delivered to Administrative
Agent a certificate of an Authorized Officer describing the Indebtedness to be
incurred (and attaching true and correct copies of the documentation therefor)
and the relevant Permitted Acquisition and certifying satisfaction of the
requirements set forth in clauses (A) and (B);

 

(m)   Indebtedness in an aggregate principal amount
not to exceed $115,000,000 that is  (i) subordinated
to the Obligations on terms customary at the time for high-yield subordinated
debt securities issued in a public offering, (ii) matures after, and does
not require any scheduled amortization or other scheduled payments of principal
prior to, the Maturity Date (it being understood that such Indebtedness may
have mandatory prepayment, repurchase or redemptions provisions satisfying the
requirement of clause (iii) hereof), (iii) has terms and conditions
(other than interest rate, redemption premiums and subordination terms), taken
as a whole, that are not materially less favorable to Borrower as the terms and
conditions customary at the time for high-yield subordinated debt securities
issued in a public offering and (iv) is incurred by Borrower or a
Guarantor (other than Holdings); provided that (1) both immediately
prior to and after giving effect to the incurrence thereof, (x) no Default
shall exist or result therefrom and (y) Holdings will be in compliance with
the covenants set forth in Section 6.7 and provided further that  a certificate of an Authorized Officer
delivered to Administrative Agent at least ten days prior to the incurrence of
such Indebtedness, together with a reasonably detailed description of the
material terms and conditions of such Indebtedness or drafts of the
documentation relating thereto, stating that Holdings has determined in good
faith that such terms and conditions satisfy the requirements of this clause
(m) shall be conclusive evidence that such terms and conditions satisfy
the foregoing requirement unless Administrative Agent notifies Holdings within
five days of receipt of such certificate that it disagrees with such
determination;

 

(n)   the guarantee obligations under the subordinated
guaranty made in favor of Boise Cascade, L.L.C. to be entered into in
connection with the issuance of the subordinated promissory note issued to
Boise Cascade, L.L.C. as payment of a portion of the consideration for the
Acquisition, which subordinated guaranty shall be in form and substance
reasonably satisfactory to Administrative Agent;

 

(o)   obligations of Borrower or any of its
Subsidiaries under any Interest Rate Agreement, Currency Agreement or Commodity
Agreement; provided, that such obligations shall be unsecured to the
extent such obligations are made in favor of any Person other than a Lender
Counterparty (as defined in the First Lien Credit Agreement);

 

73

 

(p)   Indebtedness of Borrower or any of its
Subsidiaries incurred in the ordinary course of business in connection with the
financing of insurance premiums;

 

(q)   commercial letter of credit facilities in an
aggregate amount not to exceed $115,000 at any time outstanding; and

 

(r)   other unsecured Indebtedness of Borrower and
its Subsidiaries (including Indebtedness of Foreign Subsidiaries) in an
aggregate amount not to exceed at any time $28,750,000.

 

6.2.   Liens.  No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, create, incur, assume or
permit to exist any Lien on or with respect to any property or asset of any
kind (including any document or instrument in respect of goods or accounts
receivable) of Holdings or any of its Subsidiaries, whether now owned or
hereafter acquired or any income, profits or royalties therefrom, except:

 

(a)   Liens in favor of Collateral Agent for the
benefit of Secured Parties granted pursuant to any Credit Document;

 

(b)   Liens for Taxes which
are not yet due and payable or which are being contested in compliance with
Section 5.3;

 

(c)   statutory Liens of landlords, carriers,
warehousemen, mechanics, repairmen, workmen and materialmen, and other Liens
imposed by law (other than any such Lien imposed pursuant to Section 430(k) of
the Internal Revenue Code or by ERISA or a violation of Section 436 of the
Internal Revenue Code), in each case incurred in the ordinary course of
business (i) for amounts not yet overdue for more than thirty (30) days or
(ii) for amounts that are overdue for a period in excess of thirty (30)
days that are being contested in good faith by appropriate proceedings, so long
as such reserves or other appropriate provisions, if any, as shall be required
by GAAP shall have been made for any such contested amounts;

 

(d)   Liens incurred in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other types of social security, or to secure the performance of tenders,
statutory obligations, surety and appeal bonds, bids, leases, government
contracts, trade contracts, performance and return-of-money bonds and other
similar obligations (exclusive of obligations for the payment of borrowed money
or other Indebtedness), so long as no foreclosure, sale or similar proceedings
have been commenced with respect to any portion of the Collateral on account
thereof;

 

(e)   easements, rights-of-way, restrictions,
encroachments, and similar encumbrances and other minor defects or
irregularities in title, in each case which do not and will not interfere in
any material respect with the ordinary conduct of the business of Borrower or
any Subsidiary;

 

(f)   any interest or title of a lessor or
sublessor under any lease of real estate permitted hereunder;

 

74

 

(g)   Liens solely on any cash earnest money
deposits made by Holdings or any of its Subsidiaries in connection with any
letter of intent or purchase agreement permitted hereunder;

 

(h)   purported Liens evidenced by the filing of
precautionary UCC financing statements relating solely to operating leases of
personal property or consignments or similar arrangements entered into in the
ordinary course of business;

 

(i)   Liens in favor of customs and revenue
authorities arising as a matter of law to secure payment of customs duties in
connection with the importation of goods;

 

(j)   any zoning or similar law or right reserved
to or vested in any governmental office or agency to control or regulate the
use of any real property;

 

(k)   (i) licenses of Intellectual Property
granted by Holdings or any of its Subsidiaries in the ordinary course of
business or not interfering in any respect with the ordinary conduct of, or not
materially detracting from the value of, the business of Borrower or such
Subsidiary and (ii) Exclusive IP Licenses to the extent permitted under
Section 6.8;

 

(l)   Liens described in Schedule 6.2 or on a
title report delivered pursuant to Section 3.1(h)(iv) and any
modifications, replacements, renewals or extensions thereof; provided
that any such modification, replacement, renewal or extension of such Liens
shall (x) encumber only those assets which were encumbered by the original
Lien and (y) only secure Indebtedness permitted by Section 6.1;

 

(m)   Liens on collateral securing obligations under
the First Lien Credit Agreement, the other Credit Documents (as defined in the
First Lien Credit Agreement), Hedge Agreements and Treasury Services
Agreements;

 

(n)   Liens securing Indebtedness permitted
pursuant to Section 6.1(j); provided, any such Lien shall encumber
only the asset acquired with the proceeds of such Indebtedness;

 

(o)   Liens securing Indebtedness permitted
pursuant to Section 6.1(k); provided that (A) such Lien is not
created in contemplation of or in connection with such acquisition or such
Person becoming a Subsidiary, as the case may be, (B) such Lien shall not
apply to any other property or assets of Borrower or any Subsidiary and
(C) such Lien shall secure only those obligations which it secured on the
date of such acquisition or the date such Person becomes a Subsidiary, as the
case may be, and extensions, renewals and refinancings thereof permitted under
Section 6.1(l)(ii);

 

(p)   Liens on insurance policies and the proceeds
thereof securing the financing of the premiums with respect thereto;

 

(q)   obligations with respect to repurchase
agreements of the type described in clause (vi) of the definition of
Cash Equivalents;

 

(r)   Liens arising from judgments, decrees or
attachments (or securing of appeal bonds with respect thereto) in circumstances
not constituting an Event of Default;

 

75

 

(s)   Liens arising solely under Article 4 of
the UCC relating to collection on items in connection and documents and
proceeds related thereto;

 

(t)   statutory rights and other customary rights
of set-off, revocation, refund or chargeback under deposit agreements or under
the UCC of banks or other financial institutions where Borrower or any
Subsidiary maintains deposits (other than deposits intended as cash collateral)
in the ordinary course of business;

 

(u)   Liens on the goods and assets being shipped
in reliance on commercial letters of credit issued under commercial letter of
credit facilities permitted under Section 6.1(q); and

 

(v)   other Liens securing Indebtedness in an
aggregate amount not to exceed $17,250,000 at any time outstanding.

 

6.3.   No Further Negative Pledges.  Except with respect to (a) specific
property encumbered to secure payment of particular Indebtedness or to be sold
pursuant to an executed agreement with respect to a permitted Asset Sale,
(b) restrictions contained in the Credit Documents and the First Lien
Credit Agreement or any related documents, (c) customary provisions
restricting assignments, subletting or other transfers contained in leases,
licenses, joint venture agreements, sales and procurement contracts and similar
agreements entered into in the ordinary course of business (provided that such
restrictions are limited to the property or assets secured by such Liens or the
property or assets subject to such leases, licenses, joint venture agreements
or similar agreements, as the case may be) or in connection with sale and
lease-back transactions permitted under Section 6.10,
(d) restrictions and conditions imposed by law, (e) restrictions in
Contractual Obligations identified on Schedule 6.3, (f) restrictions or
conditions imposed by any agreement relating to Indebtedness permitted by this
Agreement secured by Liens permitted by this Agreement if such restrictions or
conditions apply only to the Person obligated under such Indebtedness and its
Subsidiaries or the property or assets intended to secure such Indebtedness,
(g) Contractual Obligations binding on a Subsidiary acquired by any Credit
Party in a Permitted Acquisition at the time such Subsidiary first becomes a
Subsidiary, so long as such contractual obligations were not entered into
solely in contemplation of such Person becoming a Subsidiary,
(h) restrictions on cash deposits imposed by vendors under contracts
entered into in the ordinary course of business, (i) restrictions on cash
deposits made by customers in the ordinary course of business that are subject
to return to such customers and (j) any restrictions imposed by any
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings of the Contractual Obligations or
Indebtedness referred to in clauses (a) through (i) above; provided
that, such amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings are, in the good faith
judgment of Borrower, no more restrictive with respect to such encumbrance and
other restrictions taken as a whole than those prior to such amendment,
modification, restatement, renewal, increase, supplement, refunding,
replacement or refinancing, no Credit Party nor any of its Subsidiaries shall
enter into any agreement prohibiting the creation or assumption of any Lien in
favor of the Lenders upon any of its properties or assets, whether now owned or
hereafter acquired, to secure the Obligations.

 

6.4.   Restricted Junior Payments.  No Credit Party shall, nor shall it permit
any of its Subsidiaries or Affiliates through any manner or means or through
any other Person to, directly

 

76

 

or indirectly,
declare, order, pay, make or set apart, or agree to declare, order, pay, make
or set apart, any sum for any Restricted Junior Payment except that:

 

(a) Intentionally
Omitted;

 

(b) Borrower
or any of its Subsidiaries may make Restricted Junior Payments to Holdings, the
proceeds of which will be used by Holdings for distributions to Parent to
(i) pay franchise taxes and other fees, taxes and expenses required to
maintain Parent’s corporate existence and (ii) permit Parent to discharge
its income tax liability, if any, associated solely with the consolidated
taxable income of Holdings and its Subsidiaries which Parent must take into
account in calculating its own income tax liability; provided that any
such amounts received from Borrower or Holdings shall be paid over to the
appropriate taxing authority within 60 days of the direct or indirect parent’s
receipt of such amounts or refunded to Borrower or Holdings, as the case may
be,

 

(c) Borrower
or any of its Subsidiaries may make Restricted Junior Payments to Holdings, the
proceeds of which will be used by Holdings for distributions to Parent to pay
(i) general corporate operating and overhead costs and expenses of Parent
to the extent such costs and expenses are reasonably attributable to the
ownership or operation of Holdings and its Subsidiaries, (ii) reasonable
and customary salary, bonus and other benefits payable to officers and
employees of Parent to the extent such salaries, bonuses and other benefits are
reasonably attributable to the ownership or operation of Holdings and its
Subsidiaries and (iii) fees and expenses (other than to Affiliates of
Holdings) related to any secondary equity or debt offering or any unsuccessful
primary equity or debt offering of Parent to the extent the offering memorandum
with respect to such equity or debt offering provided that the proceeds of such
equity or debt offering were to be contributed to Holdings or its Subsidiaries,
in an aggregate amount with respect to this clause (c) not exceeding an
amount during any Fiscal Year equal to the sum of (A) $5,750,000 and
(B) the amount of any net cash proceeds received from the issuance of
Equity Interests by, or capital contributions made to, Holdings after the
Closing Date and not used to make a Specified Investment within 90 days
following receipt thereof (plus any such amount permitted without giving effect
to this parenthetical in the immediately preceding Fiscal Year but not so
utilized);

 

(d) Borrower
or any of its Subsidiaries may make Restricted Junior Payments to Holdings, the
proceeds of which will be used by Holdings for distributions to Parent
(i) to pay reasonable and customary fees payable to any directors of
Parent and reimbursement of reasonable out-of-pocket costs of the directors of
Parent in the ordinary course of business, to the extent reasonably
attributable to the ownership or operation of Holdings and its Subsidiaries,
(ii) to pay reasonable and customary indemnities to directors, officers
and employees of Parent in the ordinary course of business, to the extent
reasonably attributable to the ownership or operation of Holdings and its
Subsidiaries, (iii) to pay cash payments in lieu of issuing fractional
shares in connection with the exercise of warrants, options or other securities
convertible into or exchangeable for Equity Interests of Parent in an aggregate
amount not exceeding $57,500 during any Fiscal Year, (iv) to pay amounts
due in accordance with the Acquisition Agreement, and (v) to the extent
necessary to permit Parent to discharge its other permitted liabilities in an
aggregate amount not to exceed $1,725,000 so long as Parent applies the amount
of any such Restricted Junior Payment for such purpose;

 

77

 

(e) Borrower
and its Subsidiaries may make Restricted Junior Payments to Holdings, the
proceeds of which will be used by Holdings for distributions to Parent,
pursuant to and in accordance with stock option plans or other benefit plans
for management or employees of Borrower and its Subsidiaries and to fund any
repurchase or redemption by Parent of its Equity Interests from former members
of management, former employees, former consultants, or former directors of the
Credit Parties or their respective estates, spouses, former spouses, family
members or other permitted transferees; provided that the aggregate
amount applied for all such purposes shall not exceed $17,250,000 during any
Fiscal Year;

 

(f) Borrower
or any of its Subsidiaries may make Restricted Junior Payments to Holdings to
pay reasonable and customary salary, bonus and other benefits payable to
officers and employees of Holdings,

 

(g) any
Credit Party may refinance Indebtedness to the extent permitted by
Section 6.1;

 

(h) so
long as no Event of Default has occurred and is continuing, any Credit Party
may make payments in respect of intercompany Indebtedness; and

 

(i) Holdings
or any of its Subsidiaries may make Restricted Junior Payments consisting of
the repurchase of Equity Interests deemed to occur upon any “cashless” exercise
of stock options, warrants or other convertible securities.

 

6.5.   Restrictions on Subsidiary Distributions.  Except as provided herein, no Credit Party
shall, nor shall it permit any of its Subsidiaries to, create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction of any kind on the ability of any Subsidiary of Borrower to
(a) pay dividends or make any other distributions on any of such Subsidiary’s
Equity Interests owned by Borrower or any other Subsidiary of Borrower,
(b) repay or prepay any Indebtedness owed by such Subsidiary to Borrower
or any other Subsidiary of Borrower, (c) make loans or advances to
Borrower or any other Subsidiary of Borrower, or (d) transfer, lease or
license any of its property or assets to Borrower or any other Subsidiary of
Borrower other than restrictions (i) existing under the Credit Documents
and the First Lien Credit Agreement, (ii) in agreements evidencing Indebtedness
permitted by Section 6.1(j) that impose restrictions on the property
so leased or acquired, (iii) by reason of customary provisions restricting
assignments, subletting or other transfers contained in leases, licenses, joint
venture agreements, sales and procurement contracts and similar agreements
entered into in the ordinary course of business or in connection with sale and
lease-back transactions permitted under Section 6.10, (iv) that are
or were created by virtue of any transfer of, agreement to transfer or option
or right with respect to any property, assets or Equity Interests not otherwise
prohibited under this Agreement, (v) described on Schedule 6.5,
(vi) restrictions and conditions imposed by law, (vii) Contractual
Obligations binding on a Subsidiary acquired by any Credit Party in a Permitted
Acquisition at the time such Subsidiary first becomes a Subsidiary, so long as
such contractual obligations were not entered into solely in contemplation of
such Person becoming a Subsidiary, (viii) restrictions on cash deposits
and requirements to maintain net worth imposed by vendors under contracts
entered into in the ordinary course of business, (ix) restrictions on cash
deposits made by customers in the ordinary course of business that are subject
to return to such customers and (x) any restrictions imposed by any
amendments, modifications, restatements, renewals, increases, supplements,
refundings, replacements or refinancings of the Contractual Obligations

 

78

 

or
Indebtedness referred to in clauses (i) through (ix) above, provided
that, such amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings are, in the good faith
judgment of Borrower, no more restrictive with respect to such encumbrance and
other restrictions taken as a whole than those prior to such amendment,
modification, restatement, renewal, increase, supplement, refunding,
replacement or refinancing.

 

6.6.   Investments.  No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, make or own any Investment
in any Person, including any Joint Venture, except:

 

(a)   Investments in Cash and Cash Equivalents;

 

(b)   (i) equity Investments owned as of the
Closing Date in any Subsidiary and (ii) Investments made after the Closing
Date in Borrower and any wholly-owned Guarantor Subsidiary of Borrower;

 

(c)   (i) Investments received in satisfaction
or partial satisfaction thereof from financially troubled or delinquent account
debtors and disputes with customers and suppliers in the ordinary course of
business and (ii) deposits, prepayments and other credits to suppliers
made in the ordinary course of business consistent with the past practices of
Holdings and its Subsidiaries;

 

(d)   intercompany loans to the extent permitted
under Section 6.1(b);

 

(e)   Consolidated Capital Expenditures with
respect to Borrower and the Guarantors permitted by Section 6.7(c);

 

(f)   loans and advances to employees of Holdings
and its Subsidiaries made in the ordinary course of business in an aggregate
principal amount not to exceed $5,750,000 in the aggregate;

 

(g)   Permitted Acquisitions permitted pursuant to
Section 6.8 and any Investment held by the Person which is the subject of
the Permitted Acquisition; provided  that, such Investment was not
acquired by such Person in contemplation of such Permitted Acquisition;

 

(h)   Investments described in Schedule 6.6;

 

(i)   the Acquisition;

 

(j)   investments consisting of non-cash
consideration received by Borrower or any Subsidiary in connection with any
Asset Sale permitted by Section 6.8(c);

 

(k)   Specified Investments;

 

(l)   minority Investments made in cooperatives
required to obtain goods or services in the ordinary course of business, not to
exceed $5,750,000 at any time outstanding;

 

79

 

(m)   other Investments in Subsidiaries or joint
ventures other than wholly-owned Guarantor Subsidiaries of Borrower in an
aggregate amount not to exceed at any time $23,000,000;

 

(n)   guarantees constituting Indebtedness
permitted by Section 6.1(b);

 

(o)   deposits, prepayments and other credits made
or extended to suppliers in an amount not to exceed $5,750,000 at any time
outstanding;

 

(p)   capital contributions to Louisiana Timber
Procurement, LLC not to exceed $11,500,000 at any time outstanding; and

 

(q)   Investments not otherwise permitted by this
Section 6.6; provided  that, the aggregate amount of
Investments made on or after the Closing Date in reliance on this clause
(q) (determined on the basis of the fair market value of the assets
invested at the time so invested, in the case of non-cash Investments) shall
not exceed $11,500,000 at any time outstanding. 

 

Notwithstanding
the foregoing, in no event shall any Credit Party make any Investment
(i) which results in or facilitates in any manner any Restricted Junior
payment not otherwise permitted under the terms of Section 6.4 or
(ii) which consists of Margin Stock in excess of $1,000,000.

 

6.7.   Financial Covenants.

 

(a)   Intentionally Omitted.

 

(b)   Leverage Ratio.  Holdings shall not permit the Leverage Ratio
as of the last day of any Fiscal Quarter, beginning with the Fiscal Quarter
ending June 30, 2008 to exceed the correlative ratio indicated:

 

	
  Fiscal Quarter End

  	
   

  	
  Leverage Ratio

  	
   

  
	
  June 30, 2008

  	
   

  	
  5.25:1.00

  	
   

  
	
  September 30, 2008

  	
   

  	
  5.00:1.00

  	
   

  
	
  December 31, 2008

  	
   

  	
  4.75:1.00

  	
   

  
	
  March 31, 2009

  	
   

  	
  4.75:1.00

  	
   

  
	
  June 30, 2009

  	
   

  	
  4.50:1.00

  	
   

  
	
  September 30, 2009

  	
   

  	
  4.25:1.00

  	
   

  
	
  December 31, 2009

  	
   

  	
  4.00:1.00

  	
   

  
	
  March 31, 2010

  	
   

  	
  3.75:1.00

  	
   

  
	
  June 30, 2010

  	
   

  	
  3.50:1.00

  	
   

  
	
  September 30, 2010

  	
   

  	
  3.50:1.00

  	
   

  
	
  December 31, 2010

  	
   

  	
  3.50:1.00

  	
   

  

 

80

 

	
  Fiscal Quarter End

  	
   

  	
  Leverage Ratio

  	
   

  
	
  March 31, 2011 and thereafter

  	
   

  	
  3.25:1.00

  	
   

  

 

(c)   Maximum Consolidated Capital Expenditures.  Holdings shall not, and shall not permit its
Subsidiaries to, make or incur Consolidated Capital Expenditures, in any Fiscal
Year, in an aggregate amount for Holdings and its Subsidiaries in excess of
$172,500,000 for such Fiscal Year; provided, such amount for any Fiscal
Year shall be increased by an amount equal to the excess, if any (but in no
event more than $86,250,000) of such amount for the immediately preceding
Fiscal Year (as adjusted in accordance with this proviso) over the actual
amount of Consolidated Capital Expenditures for such previous Fiscal Year.

 

(d)   Certain Calculations.  With respect to any period during which any
Investment, a Permitted Acquisition or an Asset Sale or other disposition has
occurred (each, a “Subject Transaction”),
for purposes of determining compliance with the financial covenants set forth
in this Section 6.7, Consolidated Adjusted EBITDA shall be calculated with
respect to such period on a pro forma basis (including (x) pro forma
adjustments arising out of events which are directly attributable to a specific
transaction, are factually supportable and are expected to have a continuing
impact, in each case determined on a basis consistent with Article 11 of Regulation
S-X promulgated under the Securities Act and as interpreted by the staff of the
Securities and Exchange Commission, which would include cost savings resulting
from head count reduction, closure of facilities and similar restructuring
charges, which pro forma adjustments shall be certified by the chief financial
officer of Holdings and (y) pro forma adjustments for cost savings that
Holdings reasonably determines are probable based upon specifically identified
actions to be taken within six months of the date of a Subject Transaction (net
of any reduction in Consolidated Adjusted EBITDA as a result of such cost
savings that Holdings reasonably determines are probable) in an amount not to
exceed 10% of the Consolidated Adjusted EBITDA of the entity acquired or
disposed of in connection with such Subject Transaction; provided that
Holdings’ chief financial officer shall have certified in an officer’s
certificate delivered to the Administrative Agent the specific actions to be
taken, the cost savings to be achieved from each such action, that such savings
have been determined to be probable and the amount, if any, of any reduction in
Consolidated Adjusted EBITDA in connection therewith) using the historical
audited (if available) financial statements of any business so acquired or to
be acquired or sold or to be sold and the consolidated financial statements of
Holdings and its Subsidiaries which shall be reformulated as if such Subject
Transaction, and any Indebtedness incurred or repaid in connection therewith,
had been consummated or incurred or repaid at the beginning of such period (and
assuming that such Indebtedness bears interest during any portion of the
applicable measurement period prior to the relevant acquisition at the weighted
average of the interest rates applicable to outstanding Loans incurred during
such period).

 

6.8.   Fundamental Changes; Disposition of Assets;
Acquisitions. 
No Credit Party shall, nor shall it permit any of its Subsidiaries to,
enter into any transaction of merger or consolidation, or liquidate, wind-up or
dissolve itself (or suffer any liquidation or dissolution), or convey, sell,
lease, enter into an Exclusive IP License, exchange, transfer or otherwise
dispose of, in one transaction or a series of transactions, all or any part of
its business, assets or property 

 

81

 

of any kind
whatsoever, whether real, personal or mixed and whether tangible or intangible,
whether now owned or hereafter acquired or leased, or acquire by purchase or
otherwise (other than purchases or other acquisitions of inventory, materials
and equipment and Capital Expenditures in the ordinary course of business) the
business, property or fixed assets of, or stock or other evidence of beneficial
ownership of, any Person or any division or line of business or other business
unit of any Person, except:

 

(a)   any Subsidiary of Borrower may be merged with
or into Borrower or any Guarantor Subsidiary, or be liquidated, wound up or
dissolved, or all or any part of its business, property or assets may be
conveyed, sold, leased, transferred or otherwise disposed of, in one
transaction or a series of transactions, to Borrower or any Guarantor
Subsidiary; provided, in the case of such a merger, Borrower or such
Guarantor Subsidiary, as applicable, shall be the continuing or surviving
Person;

 

(b)   Borrower may permit another Person to merge
or consolidate with Borrower or a Subsidiary in order to effect a Permitted
Acquisition that is permitted hereunder (provided that the surviving entity is
the Borrower or a wholly-owned Subsidiary);

 

(c)   sales, transfers or other dispositions of
assets that do not constitute Asset Sales;

 

(d)   Asset Sales (including Exclusive IP
Licenses), the proceeds of which (valued at the principal amount thereof in the
case of non-Cash proceeds consisting of notes or other debt Securities and
valued at fair market value in the case of other non-Cash proceeds) when
aggregated with the proceeds of all other Asset Sales made within the same
Fiscal Year, are less than $57,500,000; provided (other than in the case
of Exclusive IP Licenses that are not fully paid) (1) the consideration
received for such assets shall be in an amount at least equal to the fair
market value thereof (determined in good faith by an Authorized Officer of
Borrower), (2) no less than 80% thereof shall be paid in Cash, and
(3) the Net Asset Sale Proceeds thereof shall be applied as required by
Section 2.14(a);

 

(e)   disposals of obsolete, worn out or surplus
property;

 

(f)   Permitted Acquisitions, the Acquisition
Consideration for which constitutes (i) less than $143,750,000 in the
aggregate in any Fiscal Year and (ii) less than $230,000,000 in the
aggregate from the Closing Date to the date of determination; provided,
in respect of acquisition targets not domiciled within the United States, the
consideration for such Persons or assets shall not exceed more than $57,500,000
per Fiscal Year;

 

(g)   Investments made in accordance with
Section 6.6;

 

(h)   sales, transfers and dispositions to Borrower
or a Subsidiary; provided  that, any such sales, transfers or
dispositions involving a Subsidiary that is not a Credit Party shall be made in
compliance with Section 6.11;

 

(i)   sales of any fixed or capital assets pursuant
to a sale-leaseback transaction in compliance with clause (a) of
Section 6.10;

 

82

 

(j)   licenses or sublicenses of Intellectual
Property of a Credit Party or any of its Subsidiaries (other than Exclusive IP
Licenses) entered into in the ordinary course of business, or not interfering
in any respect with the ordinary conduct of, or not materially detracting from
the value of, the business of Borrower or such Subsidiary;

 

(k)   terminations of leases in the ordinary course
of business;

 

(l)   leases, subleases, licenses and sublicenses
of real or personal property entered into by Credit Parties and their
Subsidiaries in the ordinary course of business; and

 

(m)   sales of non-core assets acquired in
connection with Permitted Acquisitions.

 

6.9.   Disposal of Subsidiary Interests.  Except for any sale of all of its interests
in the Equity Interests of any of its Subsidiaries in compliance with the
provisions of Section 6.8, no Credit Party shall, nor shall it permit any
of its Subsidiaries to, (a) directly or indirectly sell, assign, pledge or
otherwise encumber or dispose of any Equity Interests of any of its
Subsidiaries, except to qualify directors if required by applicable law; or
(b) permit any of its Subsidiaries directly or indirectly to sell, assign,
pledge or otherwise encumber or dispose of any Equity Interests of any of its
Subsidiaries, except to another Credit Party (subject to the restrictions on
such disposition otherwise imposed hereunder), or to qualify directors if
required by applicable law.

 

6.10.   Sales and Lease-Backs.  No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, become or remain liable as
lessee or as a guarantor or other surety with respect to any lease of any
property (whether real, personal or mixed), whether now owned or hereafter
acquired, which such Credit Party (a) has sold or transferred or is to
sell or to transfer to any other Person (other than Holdings or any of its
Subsidiaries), or (b) intends to use for substantially the same purpose as
any other property which has been or is to be sold or transferred by such
Credit Party to any Person (other than Holdings or any of its Subsidiaries) in
connection with such lease, except (i) for any such sale of any fixed or
capital assets by Borrower or any Subsidiary that is made for cash
consideration in an amount not less than the cost of such fixed or capital
asset and is consummated within 90 days after Borrower or such Subsidiary
acquires or completes the construction of such fixed or capital asset,
(ii) this Section 6.10 shall not prohibit Borrower or any Subsidiary
from engaging in a sale or transfer of property permitted by
Section 6.8(c) and thereafter leasing such property; provided
that (A) such sale or transfer is made solely for cash consideration,
(B) any Capital Lease obligations of Borrower or any Subsidiary created
thereby are permitted under Section 6.1 and (C) any Net Asset Sale
Proceeds received in respect of such sale or transfer shall be subject to the
provisions of Section 2.14(a), provided that the reinvestment provisions
of Section 2.14(a) shall not apply to any such Net Asset Sale
Proceeds.

 

6.11.   Transactions with Shareholders and
Affiliates.  No
Credit Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, enter into or permit to exist any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any
service) with any Affiliate of Holdings on terms that are not arm’s length; provided,
the foregoing restriction shall not apply to (a) any transaction between
Borrower and any Guarantor or between two or more Guarantors;
(b) reasonable and customary fees and indemnitees paid to

 

83

 

members of the
board of directors (or similar governing body) of Holdings and its
Subsidiaries; (c) compensation arrangements, indemnities and reimbursement
of expenses for officers and other employees of Holdings and its Subsidiaries
entered into in the ordinary course of business; (d) Restricted Junior
Payments permitted under Section 6.4; (e) transactions entered into
pursuant to and in compliance with the Supply Agreement; (f) any
transactions between Holdings or any of its Subsidiaries and Boise Cascade,
L.L.C. or any of its Subsidiaries pursuant to the Acquisition Agreement and any
documents related thereto; and (g) transactions described in Schedule
6.11.

 

6.12.   Conduct of Business.  From and after the Closing Date, no Credit Party
shall, nor shall it permit any of its Subsidiaries to, engage substantially in
any business other than (i) the businesses engaged in by such Credit Party
on the Closing Date, similar or related businesses and supportive,
complementary or ancillary businesses thereto; provided that such
supportive, complementary or ancillary businesses will not fundamentally and
substantively alter the character of the businesses of such Credit Party, taken
as a whole, from the business conducted by such Credit Party on the Closing
Date, (ii) any business acquired as an incidental part of a Permitted
Acquisition; provided that, such businesses are not acquired in
anticipation of such Permitted Acquisition and (iii) such other lines of
business as may be consented to by Requisite Lenders.

 

6.13.   Permitted Activities of Holdings.  (a) Holdings shall not (i) incur,
directly or indirectly, any Indebtedness or any other obligation or liability
whatsoever other than the Indebtedness and obligations under this Agreement,
the other Credit Documents and the Related Agreements, Indebtedness permitted
under Section 6.1, liabilities imposed by law, including tax liabilities,
and other liabilities incidental to its existence; (ii) create or suffer
to exist any Lien upon any property or assets now owned or hereafter acquired,
leased or licensed by it other than the Liens created under the Collateral
Documents to which it is a party or permitted pursuant to Section 6.2;
(iii) engage in any business or activity or own any assets other than
(A) holding 100% of the Equity Interests of Borrower and activities
incidental thereto, (B) performing its obligations and activities
incidental thereto under the Credit Documents, and to the extent not
inconsistent therewith, the Related Agreements, (C) holding the cash
proceeds of any Restricted Junior Payments to the extent permitted by this
Agreement, (D) filing tax reports and paying taxes in the ordinary course,
(E) preparing reports to Governmental Authorities and to its shareholders,
(F) holding directors and shareholders meetings, preparing corporate
records and other corporate activities required to maintain its separate
corporate structure or to comply with applicable law, and (G) making
Restricted Junior Payments and Investments to the extent permitted by this
Agreement; (iv) consolidate with or merge with or into, or convey,
transfer, lease or license all or substantially all its assets to, any Person;
(v) sell or otherwise dispose of any Equity Interests of any of its direct
Subsidiaries; (vi) create or acquire any direct Subsidiary or make or own
any Investment in any Person other than Borrower; or (vii) fail to hold
itself out to the public as a legal entity separate and distinct from all other
Persons.

 

(b)           Boise Hong Kong Limited shall not
account for more than $2,500,000 of Consolidated Adjusted EBITDA during any
Fiscal Year of Borrower; provided that if Boise Hong Kong Limited does
not comply with the foregoing, such non-compliance shall not constitute an
Event of Default so long as 65% of the Equity Interests of Boise Hong Kong
Limited are pledged to Collateral Agent pursuant to documentation reasonably
satisfactory to

 

84

 

Collateral
Agent at the time that financial statements of Holdings and its Subsidiaries
are required to be delivered pursuant to Section 5.1(c).

 

6.14.   Amendments or Waivers of Organizational
Documents, Certain Related Agreements and Certain Other Agreements.  Except as set forth in Section 6.15, no
Credit Party shall, nor shall it permit any of its Subsidiaries to, agree to
any material amendment, restatement, supplement or other modification to, or
waiver of, any of its Organizational Documents or any of its material rights
under any Related Agreement or the Supply Agreement after the Closing Date
without in each case obtaining the prior written consent of Requisite Lenders
to such amendment, restatement, supplement or other modification or waiver other
than any such amendment, restatement, supplement or other modification or
waiver that is not adverse to the interests of the Lenders.

 

6.15.   Amendments or Waivers with respect to First
Lien Credit Agreement. 
No Credit Party shall, nor shall it permit any of its Subsidiaries to,
agree to any material amendment, restatement, supplement or other modification
to, or waiver of, any of its material rights under the First Lien Credit
Agreement after the Closing Date that is prohibited under Section 5.3 of
the Intercreditor Agreement without in each case obtaining the prior written
consent of Requisite Lenders to such amendment, restatement, supplement or
other modification or waiver.

 

6.16.   Fiscal Year.  No Credit Party shall, nor shall it permit
any of its Subsidiaries to, change its Fiscal Year-end from December 31.

 

SECTION 7.   GUARANTY

 

7.1.   Guaranty of the Obligations.  Subject to the provisions of
Section 7.2, Guarantors jointly and severally hereby irrevocably and
unconditionally guaranty to Administrative Agent for the ratable benefit of the
Beneficiaries the due and punctual payment in full of all Obligations when the
same shall become due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including amounts that would
become due but for the operation of the automatic stay under
Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a))
(collectively, the “Guaranteed Obligations”).

 

7.2.   Contribution by Guarantors.  All Guarantors desire to allocate among
themselves (collectively, the “Contributing
Guarantors”), in a fair and equitable manner, their obligations
arising under this Guaranty. 
Accordingly, in the event any payment or distribution is made on any
date by a Guarantor (a “Funding Guarantor”)
under this Guaranty such that its Aggregate Payments exceeds its Fair Share as
of such date, such Funding Guarantor shall be entitled to a contribution from
each of the other Contributing Guarantors in an amount sufficient to cause each
Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of such
date.  “Fair
Share” means, with respect to a Contributing Guarantor as of any
date of determination, an amount equal to (a) the ratio of (i) the
Fair Share Contribution Amount with respect to such Contributing Guarantor to
(ii) the aggregate of the Fair Share Contribution Amounts with respect to
all Contributing Guarantors multiplied by (b) the aggregate amount paid or
distributed on or before such date by all Funding Guarantors under this Guaranty
in respect of the obligations Guaranteed. 
“Fair Share Contribution Amount”
means, with respect to a Contributing 

 

85

 

Guarantor as
of any date of determination, the maximum aggregate amount of the obligations
of such Contributing Guarantor under this Guaranty that would not render its
obligations hereunder or thereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States
Code or any comparable applicable provisions of state law; provided,
solely for purposes of calculating the “Fair
Share Contribution Amount” with respect to any Contributing
Guarantor for purposes of this Section 7.2, any assets or liabilities of
such Contributing Guarantor arising by virtue of any rights to subrogation,
reimbursement or indemnification or any rights to or obligations of
contribution hereunder shall not be considered as assets or liabilities of such
Contributing Guarantor.  “Aggregate Payments” means, with respect to
a Contributing Guarantor as of any date of determination, an amount equal to
(1) the aggregate amount of all payments and distributions made on or
before such date by such Contributing Guarantor in respect of this Guaranty
(including in respect of this Section 7.2), minus (2) the aggregate
amount of all payments received on or before such date by such Contributing
Guarantor from the other Contributing Guarantors as contributions under this
Section 7.2.  The amounts payable as
contributions hereunder shall be determined as of the date on which the related
payment or distribution is made by the applicable Funding Guarantor.  The allocation among Contributing Guarantors
of their obligations as set forth in this Section 7.2 shall not be
construed in any way to limit the liability of any Contributing Guarantor
hereunder.  Each Guarantor is a third
party beneficiary to the contribution agreement set forth in this
Section 7.2.

 

7.3.   Payment by Guarantors.  Subject to Section 7.2, Guarantors
hereby jointly and severally agree, in furtherance of the foregoing and not in
limitation of any other right which any Beneficiary may have at law or in
equity against any Guarantor by virtue hereof, that upon the failure of
Borrower to pay any of the Guaranteed Obligations when and as the same shall
become due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise (including amounts that would become due but
for the operation of the automatic stay under Section 362(a) of the
Bankruptcy Code, 11 U.S.C. § 362(a)), Guarantors will upon demand
pay, or cause to be paid, in Cash, to Administrative Agent for the ratable
benefit of Beneficiaries, an amount equal to the sum of the unpaid principal
amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid
interest on such Guaranteed Obligations (including interest which, but for
Borrower’s becoming the subject of a case under the Bankruptcy Code, would have
accrued on such Guaranteed Obligations, whether or not a claim is allowed
against Borrower for such interest in the related bankruptcy case) and all
other Guaranteed Obligations then owed to Beneficiaries as aforesaid.

 

7.4.   Liability of Guarantors Absolute.  Each Guarantor agrees that its obligations
hereunder are irrevocable, absolute, independent and unconditional and shall
not be affected by any circumstance which constitutes a legal or equitable
discharge of a guarantor or surety other than payment in full of the Guaranteed
Obligations (other than contingent obligations for which no claim has been
made).  In furtherance of the foregoing
and without limiting the generality thereof, each Guarantor agrees as follows:

 

(a)   this Guaranty is a guaranty of payment when
due and not of collectability.  The
Guaranteed Obligations shall be primary obligations of each Guarantor and this
Guaranty shall not be merely a contract of surety;

 

86

 

(b)   Administrative Agent may enforce this
Guaranty upon the occurrence of an Event of Default notwithstanding the
existence of any dispute between Borrower and any Beneficiary with respect to
the existence of such Event of Default;

 

(c)   the obligations of each Guarantor hereunder
are independent of the obligations of Borrower and the obligations of any other
guarantor (including any other Guarantor) of the obligations of Borrower, and a
separate action or actions may be brought and prosecuted against such Guarantor
whether or not any action is brought against Borrower or any of such other
guarantors and whether or not Borrower is joined in any such action or actions;

 

(d)   payment by any Guarantor of a portion, but
not all, of the Guaranteed Obligations shall in no way limit, affect, modify or
abridge any Guarantor’s liability for any portion of the Guaranteed Obligations
which has not been paid.  Without
limiting the generality of the foregoing, if Administrative Agent is awarded a
judgment in any suit brought to enforce any Guarantor’s covenant to pay a
portion of the Guaranteed Obligations, such judgment shall not be deemed to
release such Guarantor from its covenant to pay the portion of the Guaranteed
Obligations that is not the subject of such suit, and such judgment shall not,
except to the extent satisfied by such Guarantor, limit, affect, modify or
abridge any other Guarantor’s liability hereunder in respect of the Guaranteed
Obligations;

 

(e)   any Beneficiary, upon such terms as it deems
appropriate, without notice or demand and without affecting the validity or
enforceability hereof or giving rise to any reduction, limitation, impairment,
discharge or termination of any Guarantor’s liability hereunder, from time to
time may (i) renew, extend, accelerate, increase the rate of interest on,
or otherwise change the time, place, manner or terms of payment of the
Guaranteed Obligations; (ii) settle, compromise, release or discharge, or
accept or refuse any offer of performance with respect to, or substitutions
for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate
the payment of the same to the payment of any other obligations;
(iii) request and accept other guaranties of the Guaranteed Obligations
and take and hold security for the payment hereof or the Guaranteed
Obligations; (iv) release, surrender, exchange, substitute, compromise,
settle, rescind, waive, alter, subordinate or modify, with or without
consideration, any security for payment of the Guaranteed Obligations, any
other guaranties of the Guaranteed Obligations, or any other obligation of any
Person (including any other Guarantor) with respect to the Guaranteed
Obligations; (v) enforce and apply any security now or hereafter held by
or for the benefit of such Beneficiary in respect hereof or the Guaranteed
Obligations and direct the order or manner of sale thereof, or exercise any
other right or remedy that such Beneficiary may have against any such security,
in each case as such Beneficiary in its discretion may determine consistent
herewith and with any applicable security agreement, including foreclosure on
any such security pursuant to one or more judicial or nonjudicial sales,
whether or not every aspect of any such sale is commercially reasonable, and
even though such action operates to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of any Guarantor against
Borrower or any security for the Guaranteed Obligations; and (vi) exercise
any other rights available to it under the Credit Documents; and

 

(f)   this Guaranty and the obligations of
Guarantors hereunder shall be valid and enforceable and shall not be subject to
any reduction, limitation, impairment, discharge or termination for any reason
(other than payment in full of the Guaranteed Obligations (other than 

 

87

 

contingent
obligations for which no claim has been made)), including the occurrence of any
of the following, whether or not any Guarantor shall have had notice or
knowledge of any of them: (i) any failure or omission to assert or enforce
or agreement or election not to assert or enforce, or the stay or enjoining, by
order of court, by operation of law or otherwise, of the exercise or
enforcement of, any claim or demand or any right, power or remedy (whether
arising under the Credit Documents, at law, in equity or otherwise) with
respect to the Guaranteed Obligations or any agreement relating thereto, or
with respect to any other guaranty of or security for the payment of the
Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification
of, or any consent to departure from, any of the terms or provisions (including
provisions relating to events of default) hereof, of any of the other Credit
Documents or any agreement or instrument executed pursuant thereto, or of any
other guaranty or security for the Guaranteed Obligations, in each case whether
or not in accordance with the terms hereof or of such Credit Document or any
agreement relating to such other guaranty or security; (iii) the
Guaranteed Obligations, or any agreement relating thereto, at any time being
found to be illegal, invalid or unenforceable in any respect; (iv) the
application of payments received from any source (other than payments received
pursuant to the other Credit Documents or from the proceeds of any security for
the Guaranteed Obligations, except to the extent such security also serves as
collateral for indebtedness other than the Guaranteed Obligations) to the
payment of indebtedness other than the Guaranteed Obligations, even though any
Beneficiary might have elected to apply such payment to any part or all of the
Guaranteed Obligations; (v) any Beneficiary’s consent to the change,
reorganization or termination of the corporate structure or existence of
Holdings or any of its Subsidiaries and to any corresponding restructuring of
the Guaranteed Obligations; (vi) any failure to perfect or continue
perfection of a security interest in any collateral which secures any of the
Guaranteed Obligations; (vii) any defenses (other than payment in full of
the Guaranteed Obligations (other than contingent obligations for which no
claim has been made)), set-offs or counterclaims which Borrower may allege or
assert against any Beneficiary in respect of the Guaranteed Obligations,
including failure of consideration, breach of warranty, payment, statute of
frauds, statute of limitations, accord and satisfaction and usury; and
(viii) any other act or thing or omission, or delay to do any other act or
thing, which may or might in any manner or to any extent vary the risk of any
Guarantor as an obligor in respect of the Guaranteed Obligations.

 

7.5.   Waivers by Guarantors.  Each Guarantor hereby waives, to the extent
permitted by applicable law, for the benefit of Beneficiaries: (a) any
right to require any Beneficiary, as a condition of payment or performance by
such Guarantor, to (i) proceed against Borrower, any other guarantor
(including any other Guarantor) of the Guaranteed Obligations or any other
Person, (ii) proceed against or exhaust any security held from Borrower,
any such other guarantor or any other Person, (iii) proceed against or
have resort to any balance of any Deposit Account or credit on the books of any
Beneficiary in favor of Borrower or any other Person, or (iv) pursue any
other remedy in the power of any Beneficiary whatsoever; (b) any defense
arising by reason of the incapacity, lack of authority or any disability or
other defense of Borrower or any other Guarantor including any defense based on
or arising out of the lack of validity or the unenforceability of the
Guaranteed Obligations or any agreement or instrument relating thereto or by
reason of the cessation of the liability of Borrower or any other Guarantor
from any cause other than payment in full of the Guaranteed Obligations (other
than contingent obligations for which no claim has been made); (c) any
defense based upon any statute or rule of law which provides that the
obligation of a surety must be neither larger in amount nor in other

 

88

 

respects more burdensome
than that of the principal; (d) any defense based upon any Beneficiary’s
errors or omissions in the administration of the Guaranteed Obligations, except
behavior which amounts to gross negligence, bad faith or willful misconduct;
(e) (i) any principles or provisions of law, statutory or otherwise,
which are or might be in conflict with the terms hereof and any legal or
equitable discharge of such Guarantor’s obligations hereunder, (ii) the
benefit of any statute of limitations affecting such Guarantor’s liability
hereunder or the enforcement hereof, (iii) any rights to set-offs,
recoupments and counterclaims, and (iv) promptness, diligence and any
requirement that any Beneficiary protect, secure, perfect or insure any
security interest or lien or any property subject thereto; (f) notices,
demands, presentments, protests, notices of protest, notices of dishonor and
notices of any action or inaction, including acceptance hereof, notices of
default hereunder or under any agreement or instrument related thereto, notices
of any renewal, extension or modification of the Guaranteed Obligations or any
agreement related thereto, notices of any extension of credit to Borrower and
notices of any of the matters referred to in Section 7.4 and any right to
consent to any thereof; and (g) any defenses or benefits that may be
derived from or afforded by law which limit the liability of or exonerate
guarantors or sureties, or which may conflict with the terms hereof.

 

7.6.   Guarantors’ Rights of Subrogation, Contribution,
etc.  Until the
Guaranteed Obligations (other than contingent obligations for which no claim
has been made) shall have been paid in full, each Guarantor hereby waives, to
the extent permitted by applicable law, its right to enforce any claim, right or
remedy, direct or indirect, that such Guarantor now has or may hereafter have
against Borrower or any other Guarantor or any of its assets in connection with
this Guaranty or the performance by such Guarantor of its obligations
hereunder, in each case whether such claim, right or remedy arises in equity,
under contract, by statute, under common law or otherwise and including
(a) any right of subrogation, reimbursement or indemnification that such
Guarantor now has or may hereafter have against Borrower with respect to the
Guaranteed Obligations, (b) any right to enforce, or to participate in,
any claim, right or remedy that any Beneficiary now has or may hereafter have
against Borrower, and (c) any benefit of, and any right to participate in,
any collateral or security now or hereafter held by any Beneficiary.  In addition, until the Guaranteed Obligations
(other than contingent obligations for which no claim has been made) shall have
been paid in full, each Guarantor shall withhold exercise of any right of
contribution such Guarantor may have against any other guarantor (including any
other Guarantor) of the Guaranteed Obligations, including any such right of
contribution as contemplated by Section 7.2.  Each Guarantor further agrees that, to the
extent the waiver or agreement to withhold the exercise of its rights of
subrogation, reimbursement, indemnification and contribution as set forth
herein is found by a court of competent jurisdiction to be void or voidable for
any reason, any rights of subrogation, reimbursement or indemnification such
Guarantor may have against Borrower or against any collateral or security, and
any rights of contribution such Guarantor may have against any such other
guarantor, shall be junior and subordinate to any rights any Beneficiary may
have against Borrower, to all right, title and interest any Beneficiary may
have in any such collateral or security, and to any right any Beneficiary may
have against such other guarantor.  If
any amount shall be paid to any Guarantor on account of any such subrogation,
reimbursement, indemnification or contribution rights at any time when all
Guaranteed Obligations (other than contingent obligations for which no claim
has been made) shall not have been paid in full, such amount shall be held in
trust for Administrative Agent on behalf of Beneficiaries and shall forthwith
be paid over to

 

89

 

Administrative
Agent for the benefit of Beneficiaries to be credited and applied against the
Guaranteed Obligations, whether matured or unmatured, in accordance with the
terms hereof.

 

7.7.   Subordination of Other Obligations.  Any Indebtedness of Borrower or any Guarantor
now or hereafter held by any Guarantor (the “Obligee
Guarantor”) is hereby subordinated in right of payment to the
Guaranteed Obligations, and any such Indebtedness collected or received by the
Obligee Guarantor after an Event of Default has occurred and is continuing
shall be held in trust for Administrative Agent on behalf of Beneficiaries and
shall forthwith be paid over to Administrative Agent for the benefit of
Beneficiaries to be credited and applied against the Guaranteed Obligations but
without affecting, impairing or limiting in any manner the liability of the
Obligee Guarantor under any other provision hereof.

 

7.8.   Continuing Guaranty.  This Guaranty is a continuing guaranty and
shall remain in effect until all of the Guaranteed Obligations (other than
contingent obligations for which no claim has been made) shall have been paid
in full.  Each Guarantor hereby
irrevocably waives any right to revoke this Guaranty as to future transactions
giving rise to any Guaranteed Obligations.

 

7.9.   Authority of Guarantors or Borrower.  It is not necessary for any Beneficiary to
inquire into the capacity or powers of any Guarantor or Borrower or the
officers, directors or any agents acting or purporting to act on behalf of any
of them.

 

7.10.   Financial Condition of Borrower.  Any Credit Extension may be made to Borrower
or continued from time to time without notice to or authorization from any
Guarantor regardless of the financial or other condition of Borrower at the
time of any such grant or continuation. 
No Beneficiary shall have any obligation to disclose or discuss with any
Guarantor its assessment, or any Guarantor’s assessment, of the financial
condition of Borrower.  Each Guarantor
has adequate means to obtain information from Borrower on a continuing basis
concerning the financial condition of Borrower and its ability to perform its
obligations under the Credit Documents, and each Guarantor assumes the
responsibility for being and keeping informed of the financial condition of
Borrower and of all circumstances bearing upon the risk of nonpayment of the
Guaranteed Obligations.  Each Guarantor
hereby waives and relinquishes any duty on the part of any Beneficiary to
disclose any matter, fact or thing relating to the business, operations or
conditions of Borrower now known or hereafter known by any Beneficiary.

 

7.11.   Bankruptcy, etc.   (a)  So long as any Guaranteed
Obligations remain outstanding, no Guarantor shall, without the prior written
consent of Administrative Agent acting pursuant to the instructions of
Requisite Lenders, commence or join with any other Person in commencing any bankruptcy,
reorganization or insolvency case or proceeding of or against Borrower or any
other Guarantor.  The obligations of
Guarantors hereunder shall not be reduced, limited, impaired, discharged,
deferred, suspended or terminated by any case or proceeding, voluntary or
involuntary, involving the bankruptcy, insolvency, receivership,
reorganization, liquidation or arrangement of Borrower or any other Guarantor
or by any defense which Borrower or any other Guarantor may have by reason of
the order, decree or decision of any court or administrative body resulting
from any such proceeding.

 

90

 

(b)   Each Guarantor acknowledges and agrees that
any interest on any portion of the Guaranteed Obligations which accrues after
the commencement of any case or proceeding referred to in
clause (a) above (or, if interest on any portion of the Guaranteed
Obligations ceases to accrue by operation of law by reason of the commencement
of such case or proceeding, such interest as would have accrued on such portion
of the Guaranteed Obligations if such case or proceeding had not been
commenced) shall be included in the Guaranteed Obligations because it is the
intention of Guarantors and Beneficiaries that the Guaranteed Obligations which
are guaranteed by Guarantors pursuant hereto should be determined without
regard to any rule of law or order which may relieve Borrower of any
portion of such Guaranteed Obligations. 
Guarantors will permit any trustee in bankruptcy, receiver, debtor in
possession, assignee for the benefit of creditors or similar Person to pay
Administrative Agent, or allow the claim of Administrative Agent in respect of,
any such interest accruing after the date on which such case or proceeding is
commenced.

 

(c)   In the event that all or any portion of the
Guaranteed Obligations are paid by Borrower, the obligations of Guarantors
hereunder shall continue and remain in full force and effect or be reinstated,
as the case may be, in the event that all or any part of such
payment(s) are rescinded or recovered directly or indirectly from any
Beneficiary as a preference, fraudulent transfer or otherwise, and any such
payments which are so rescinded or recovered shall constitute Guaranteed
Obligations for all purposes hereunder.

 

7.12.   Discharge of Guaranty Upon Sale of
Guarantor.  If
all of the Equity Interests of any Guarantor or any of its successors in
interest hereunder shall be sold or otherwise disposed of (including by merger
or consolidation) in accordance with the terms and conditions hereof, the
Guaranty of such Guarantor or such successor in interest, as the case may be,
hereunder shall automatically be discharged and released without any further
action by any Beneficiary or any other Person effective as of the time of such
Asset Sale (including by merger or consolidation).

 

SECTION 8.   EVENTS OF DEFAULT

 

8.1.   Events of Default.  If any one or more of the following
conditions or events shall occur:

 

(a)   Failure to Make Payments When Due.  Failure by Borrower to pay (i) when due
any installment of principal of any Loan, whether at stated maturity, by
acceleration, by notice of voluntary prepayment, by mandatory prepayment or
otherwise; or (ii) any interest on any Loan or any fee or any other amount
due hereunder within five days after the date due; or

 

(b)   Default in Other Agreements.  (i) Failure of any Credit Party or any
of their respective Subsidiaries to pay when due any principal of or premium on
or interest on or any other amount in the nature of interest payable in respect
of one or more items of Indebtedness (other than Indebtedness referred to in
Section 8.1(a)) with an aggregate principal amount of $17,250,000 or more,
in each case beyond the grace period, if any, provided therefor; or (ii) breach
or default by any Credit Party with respect to any other material term of any
loan agreement, mortgage, indenture or other agreement relating to one or more
items of Indebtedness in the individual or aggregate principal amounts referred
to in clause (i) above, in each case

 

91

 

beyond the
grace period, if any, provided therefor, if the effect of such breach or
default is to cause, or to permit the holder or holders of that Indebtedness
(or a trustee on behalf of such holder or holders), to cause, that Indebtedness
to become or be declared due and payable (or redeemable) prior to its stated
maturity or the stated maturity of any underlying obligation, as the case may
be; provided, that with respect to any such failure to pay or breach or
default under the First Lien Credit Agreement, such event shall only constitute
an Event of Default hereunder if there is an Event of Default (as defined in
the First Lien Credit Agreement) under subsection 8.1(a) of the First Lien
Credit Agreement, if the First Lien Credit Facilities shall have been
accelerated or if 60 days have passed since the date of any Event of Default
(as defined in the First Lien Credit Agreement) (other than an Event of Default
(as defined in the First Lien Credit Agreement) under subsection 8.1(a) of
the First Lien Credit Agreement) under the First Lien Credit Agreement and such
Event of Default under the First Lien Credit Agreement has not been cured or
waived during such period; or

 

(c)   Breach of Certain Covenants.  Failure of any Credit Party to perform or
comply with any term or condition contained in Section 2.6,
Section 5.1(f), Section 5.2 (with respect to the existence of
Holdings, Borrower or any Material Subsidiary) or Section 6; or

 

(d)   Breach of Representations, etc.  Any representation, warranty, certification
or other written statement made or deemed made by any Credit Party in any
Credit Document or in any statement or certificate at any time given by any
Credit Party or any of its Subsidiaries in writing pursuant hereto or thereto
or in connection herewith or therewith shall be false in any material respect
as of the date made or deemed made; or

 

(e)   Other Defaults Under Credit Documents.  Any Credit Party shall default in the performance
of or compliance with any term contained herein or any of the other Credit
Documents, other than any such term referred to in any other Section of
this Section 8.1, and such default shall not have been remedied or waived
within thirty days after the earlier of (i) an officer of such Credit
Party becoming aware of such default or (ii) receipt by Borrower of notice
from Administrative Agent or any Lender of such default; or

(f)   Involuntary Bankruptcy; Appointment of
Receiver, etc.  (i) A court of
competent jurisdiction shall enter a decree or order for relief in respect of
Holdings or any of its Material Subsidiaries in an involuntary case under the
Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar
law now or hereafter in effect, which decree or order is not stayed; or any
other similar relief shall be granted under any applicable federal or state
law; or (ii) an involuntary case shall be commenced against Holdings or
any of its Material  Subsidiaries
under the Bankruptcy Code or under any other applicable bankruptcy, insolvency
or similar law now or hereafter in effect; or a decree or order of a court
having jurisdiction in the premises for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar
powers over Holdings or any of its Material Subsidiaries, or over all or a
substantial part of its property, shall have been entered; or there shall have
occurred the involuntary appointment of an interim receiver, trustee or other custodian
of Holdings or any of its Material Subsidiaries for all or a substantial part
of its property; or a warrant of attachment, execution or similar process shall
have been issued against any substantial part of the property of Holdings or
any of its Material Subsidiaries, and any such event described in this clause
(ii) shall continue for sixty days without having been dismissed, bonded
or discharged; or

 

92

 

(g)   Voluntary Bankruptcy; Appointment of Receiver,
etc.  (i) Holdings or any of its
Material Subsidiaries shall have an order for relief entered with respect to it
or shall commence a voluntary case under the Bankruptcy Code or under any other
applicable bankruptcy, insolvency or similar law now or hereafter in effect, or
shall consent to the entry of an order for relief in an involuntary case, or to
the conversion of an involuntary case to a voluntary case, under any such law,
or shall consent to the appointment of or taking possession by a receiver,
trustee or other custodian for all or a substantial part of its property; or
Holdings or any of its Material Subsidiaries shall make any assignment for the
benefit of creditors; or (ii) Holdings or any of its Material Subsidiaries
shall be unable, or shall fail generally, or shall admit in writing its
inability, to pay its debts as such debts become due; or the board of directors
(or similar governing body) of Holdings or any of its Material Subsidiaries (or
any committee thereof) shall adopt any resolution or otherwise authorize any
action to approve any of the actions referred to herein or in
Section 8.1(f); or

 

(h)   Judgments and Attachments.  Any money judgment, writ or warrant of
attachment or similar process involving in the aggregate at any time an amount
in excess of $17,250,000 (in either case to the extent not adequately covered
by insurance as to which a solvent and unaffiliated insurance company has
acknowledged coverage) shall be entered or filed against Holdings or any of its
Subsidiaries or any of their respective assets and shall remain undischarged,
unvacated, unbonded or unstayed for a period of sixty days (or in any event
later than five days prior to the date of any proposed sale thereunder); or

 

(i)   Reserved.

 

(j)   Employee Benefit Plans.  (i) There shall occur one or more ERISA
Events which individually or in the aggregate results in or could reasonably be
expected to result in liability of Holdings, any of its Subsidiaries or any of
their respective ERISA Affiliates in excess of $17,250,000 during the term
hereof; or (ii) there exists any fact or circumstance that reasonably
could be expected to result in the imposition of a Lien or security interest
under Section 430(k) of the Internal Revenue Code or under ERISA; or

(k)   Change of Control.  A Change of Control shall occur; or

 

(l)   Guaranties, Collateral Documents and other
Credit Documents.  At any time after
the execution and delivery thereof, (i) the Guaranty for any reason, other
than the satisfaction in full of all Obligations (other than contingent
obligations for which no claim has been made), shall cease to be in full force
and effect (other than in accordance with its terms) or shall be declared to be
null and void or any Guarantor shall repudiate its obligations thereunder, or
(ii) this Agreement, the Intercreditor Agreement or any Collateral
Document ceases to be in full force and effect (other than by reason of a
release of Collateral in accordance with the terms hereof or thereof, the
satisfaction in full of the Obligations (other than contingent obligations for
which no claim has been made) in accordance with the terms hereof or the
termination thereof in accordance with its terms) or shall be declared null and
void, or Collateral Agent shall not have or shall cease to have a valid and
perfected Lien in any Collateral purported to be covered by the Collateral
Documents (other than Collateral not required to be perfected and Collateral
with an aggregate fair market value not exceeding $5,750,000) with the priority
required by the relevant Collateral Document, in each case for any reason other
than the failure of Collateral Agent or

 

93

 

any Secured
Party to take any action within its control, or (iii) any Credit Party
shall contest the validity or enforceability of any Credit Document in writing
or deny in writing that it has any further liability, including with respect to
future advances by Lenders, under any Credit Document to which it is a party or
shall contest the validity or perfection of any Lien in any Collateral
purported to be covered by the Collateral Documents;

 

THEN,
subject to the Intercreditor Agreement, (1) upon the occurrence of any
Event of Default described in Section 8.1(f) or 8.1(g),
automatically, and (2) if any other Event of Default has occurred and is
continuing, at the request of (or with the consent of) Requisite Lenders, upon
notice to Borrower by Administrative Agent, (A) each of the following
shall immediately become due and payable, in each case without presentment,
demand, protest or other requirements of any kind, all of which are hereby
expressly waived by each Credit Party to the extent permitted by applicable
law: (I) the unpaid principal amount of and accrued interest on the Loans,
and (II) all other Obligations; and (B) Administrative Agent may
cause Collateral Agent to enforce any and all Liens and security interests
created pursuant to Collateral Documents.

 

SECTION 9.   AGENTS

 

9.1.   Appointment of Agents.  GSCP is hereby appointed Syndication Agent
hereunder, and each Lender hereby authorizes GSCP to act as Syndication Agent
in accordance with the terms hereof and the other Credit Documents.  LCPI is hereby appointed Administrative Agent
and Collateral Agent hereunder and under the other Credit Documents and each
Lender hereby authorizes LCPI to act as Administrative Agent and Collateral
Agent in accordance with the terms hereof and the other Credit Documents.  Lehman Brothers Inc. is hereby appointed
Documentation Agent hereunder, and each Lender hereby authorizes Lehman
Brothers Inc. to act as Documentation Agent in accordance with the terms hereof
and the other Credit Documents.  Each
Agent hereby agrees to act in its capacity as such upon the express conditions
contained herein and the other Credit Documents, as applicable.  The provisions of this Section 9 are
solely for the benefit of Agents and Lenders and no Credit Party shall have any
rights as a third party beneficiary of any of the provisions thereof (except as
set forth in Section 9.7).  In
performing its functions and duties hereunder, each Agent shall act solely as
an agent of Lenders and does not assume and shall not be deemed to have assumed
any obligation towards or relationship of agency or trust with or for Holdings
or any of its Subsidiaries.  Each of
Syndication Agent and Documentation Agent, without consent of or notice to any
party hereto, may assign any and all of its rights or obligations hereunder to
any of its Affiliates.  As of the Closing
Date, neither GSCP, in its capacity as Syndication Agent, nor Lehman Brothers
Inc., in its capacity as Documentation Agent, shall have any obligations but
shall be entitled to all benefits of this Section 9.

 

9.2.   Powers and Duties.  Each Lender irrevocably authorizes each Agent
to take such action on such Lender’s behalf and to exercise such powers, rights
and remedies hereunder and under the other Credit Documents as are specifically
delegated or granted to such Agent by the terms hereof and thereof, together
with such powers, rights and remedies as are reasonably incidental
thereto.  Each Agent shall have only
those duties and responsibilities that are expressly specified herein and in
the other Credit Documents.  Each Agent
may exercise such powers,

 

94

 

rights and
remedies and perform such duties by or through its agents or employees.  No Agent shall have, by reason hereof or any
of the other Credit Documents, a fiduciary relationship in respect of any
Lender; and nothing herein or in any of the other Credit Documents, expressed
or implied, is intended to or shall be so construed as to impose upon any Agent
any obligations in respect hereof or any of the other Credit Documents except
as expressly set forth herein or therein. 
Administrative Agent hereby agrees that it shall (i) furnish to
GSCP, in its capacity as Syndication Agent, upon GSCP’s request, a copy of the
Register, (ii) cooperate with GSCP in granting access to any Lenders (or
potential Lenders) who GSCP identifies to the Platform and (iii) maintain
GSCP’s access to the Platform.

 

9.3.   General Immunity.

 

(a)   No Responsibility for Certain Matters.  No Agent shall be responsible to any Lender
for the execution, effectiveness, genuineness, validity, enforceability,
collectability or sufficiency hereof or of any other Credit Document or for any
representations, warranties, recitals or statements made herein or therein or
made in any written or oral statements or in any financial or other statements,
instruments, reports or certificates or any other documents furnished or made
by any Agent to Lenders or by or on behalf of any Credit Party or to any Lender
in connection with the Credit Documents and the transactions contemplated
thereby or for the financial condition or business affairs of any Credit Party
or any other Person liable for the payment of any Obligations, nor shall any
Agent be required to ascertain or inquire as to the performance or observance
of any of the terms, conditions, provisions, covenants or agreements contained
in any of the Credit Documents or as to the use of the proceeds of the Loans or
as to the existence or possible existence of any Event of Default or Default or
to make any disclosures with respect to the foregoing.  Anything contained herein to the contrary
notwithstanding, Administrative Agent shall not have any liability arising from
confirmations of the amount of outstanding Loans.

 

(b)   Exculpatory Provisions.  No Agent nor any of its officers, partners,
directors, employees or agents shall be liable to Lenders for any action taken
or omitted by any Agent under or in connection with any of the Credit Documents
except to the extent caused by such Agent’s gross negligence or willful
misconduct, as determined by a final, non-appealable judgment of a court of
competent jurisdiction.  Each Agent shall
be entitled to refrain from any act or the taking of any action (including the
failure to take an action) in connection herewith or any of the other Credit
Documents or from the exercise of any power, discretion or authority vested in
it hereunder or thereunder unless and until such Agent shall have received
instructions in respect thereof from Requisite Lenders (or such other Lenders
as may be required to give such instructions under Section 10.5) and, upon
receipt of such instructions from Requisite Lenders (or such other Lenders, as
the case may be), such Agent shall be entitled to act or (where so instructed)
refrain from acting, or to exercise such power, discretion or authority, in
accordance with such instructions.  Without
prejudice to the generality of the foregoing, (i) each Agent shall be
entitled to rely, and shall be fully protected in relying, upon any
communication, instrument or document believed by it to be genuine and correct
and to have been signed or sent by the proper Person or Persons, and shall be
entitled to rely and shall be protected in relying on opinions and judgments of
attorneys (who may be attorneys for Holdings and its Subsidiaries),
accountants, experts and other professional advisors selected by it; and
(ii) no Lender shall have any right of action whatsoever against any Agent
as a result of such Agent acting or (where so

 

95

 

instructed)
refraining from acting hereunder or under any of the other Credit Documents in
accordance with the instructions of Requisite Lenders (or such other Lenders as
may be required to give such instructions under Section 10.5).

 

(c)   Delegation of Duties. Administrative
Agent may perform any and all of its duties and exercise its rights and powers
under this Agreement or under any other Credit Document by or through any one
or more sub-agents appointed by Administrative Agent. Administrative Agent and
any such sub-agent may perform any and all of its duties and exercise its
rights and powers by or through their respective Affiliates. The exculpatory,
indemnification and other provisions of this Section 9.3 and of
Section 9.6 shall apply to any of the Affiliates of Administrative Agent
and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.  All of the rights, benefits, and privileges
(including the exculpatory and indemnification provisions) of this
Section 9.3 and of Section 9.6 shall apply to any such sub-agent and
to the Affiliates of any such sub-agent, and shall apply to their respective
activities as sub-agent as if such sub-agent and Affiliates were named herein.  Notwithstanding anything herein to the
contrary, with respect to each sub-agent appointed by Administrative Agent,
(i) such sub-agent shall be a third party beneficiary under this Agreement with respect to all
such rights, benefits and privileges (including exculpatory rights and rights
to indemnification) and shall have all of the rights and benefits of a third
party beneficiary, including an independent right of action to enforce such
rights, benefits and privileges (including exculpatory rights and rights to
indemnification) directly, without the consent or joinder of any other Person,
against any or all of the Credit Parties and the Lenders, (ii) such
rights, benefits and privileges (including exculpatory rights and rights to
indemnification) shall not be modified or amended without the consent of such
sub-agent, and (iii) such sub-agent shall only have obligations to
Administrative Agent and not to any Credit Party, Lender or any other Person
and no Credit Party, Lender or any other Person shall have any rights, directly
or indirectly, as a third party beneficiary or otherwise, against such
sub-agent.

 

9.4.   Agents Entitled to Act as Lender.  The agency hereby created shall in no way
impair or affect any of the rights and powers of, or impose any duties or
obligations upon, any Agent in its individual capacity as a Lender
hereunder.  With respect to its
participation in the Loans, each Agent shall have the same rights and powers
hereunder as any other Lender and may exercise the same as if it were not
performing the duties and functions delegated to it hereunder, and the term
“Lender” shall, unless the context clearly otherwise indicates, include each
Agent in its individual capacity.  Any
Agent and its Affiliates may accept deposits from, lend money to, own
securities of, and generally engage in any kind of banking, trust, financial
advisory or other business with Holdings or any of its Affiliates as if it were
not performing the duties specified herein, and may accept fees and other
consideration from Borrower for services in connection herewith and otherwise
without having to account for the same to Lenders.

 

9.5.   Lenders’ Representations, Warranties and
Acknowledgment.

 

(a)   Each Lender represents and warrants that it
has made its own independent investigation of the financial condition and
affairs of Holdings and its Subsidiaries in connection with Credit Extensions
hereunder and that it has made and shall continue to make its own appraisal of
the creditworthiness of Holdings and its Subsidiaries.  No Agent shall have any duty

 

96

 

or
responsibility, either initially or on a continuing basis, to make any such
investigation or any such appraisal on behalf of Lenders or to provide any
Lender with any credit or other information with respect thereto, whether
coming into its possession before the making of the Loans or at any time or
times thereafter, and no Agent shall have any responsibility with respect to
the accuracy of or the completeness of any information provided to Lenders.

 

(b)   Each Lender, by delivering its signature
page to this Agreement or  an
Assignment Agreement and funding its Loan on the Closing Date, shall be deemed
to have acknowledged receipt of, and consented to and approved, each Credit
Document and each other document required to be approved by any Agent,
Requisite Lenders or Lenders, as applicable on the Closing Date.

 

9.6.   Right to Indemnity.  Each Lender, in proportion to its Pro Rata
Share, severally agrees to indemnify each Agent, to the extent that such Agent
shall not have been reimbursed by any Credit Party, for and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses (including counsel fees and disbursements) or
disbursements of any kind or nature whatsoever which may be imposed on,
incurred by or asserted against such Agent in exercising its powers, rights and
remedies or performing its duties hereunder or under the other Credit Documents
or otherwise in its capacity as such Agent in any way relating to or arising
out of this Agreement or the other Credit Documents; provided, no Lender
shall be liable for any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such Agent’s gross negligence or willful misconduct, as
determined by a final, non-appealable judgment of a court of competent
jurisdiction.  If any indemnity furnished
to any Agent for any purpose shall, in the opinion of such Agent, be
insufficient or become impaired, such Agent may call for additional indemnity
and cease, or not commence, to do the acts indemnified against until such
additional indemnity is furnished; provided, in no event shall this
sentence require any Lender to indemnify any Agent against any liability,
obligation, loss, damage, penalty, action, judgment, suit, cost, expense or
disbursement in excess of such Lender’s Pro Rata Share thereof; and provided
further, this sentence shall not be deemed to require any Lender to
indemnify any Agent against any liability, obligation, loss, damage, penalty,
action, judgment, suit, cost, expense or disbursement described in the proviso
in the immediately preceding sentence.

 

9.7.   Successor Administrative Agent and
Collateral Agent. 
Administrative Agent may resign at any time by giving thirty days’ prior
written notice thereof to Lenders and Borrower. 
Upon any such notice of resignation, Requisite Lenders shall have the
right to appoint a successor Administrative Agent approved by Borrower (which
approval (i) shall not be unreasonably withheld or delayed and
(ii) shall not be required during the continuance of an Event of
Default).  Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative
Agent, that successor Administrative Agent shall thereupon succeed to and
become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent and the retiring Administrative Agent shall
promptly (i) transfer to such successor Administrative Agent all sums,
Securities and other items of Collateral held under the Collateral Documents,
together with all records and other documents necessary or appropriate in
connection with the performance of the duties of the successor Administrative Agent
under the Credit Documents, and (ii) execute and deliver to such successor
Administrative Agent such amendments to financing statements, and take such
other actions, as may be necessary or 

 

97

 

appropriate in
connection with the assignment to such successor Administrative Agent of the
security interests created under the Collateral Documents, whereupon such
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder.  If the Requisite
Lenders have not appointed a successor Administrative Agent, Administrative
Agent shall have the right to appoint a financial institution to act as
Administrative Agent and/or Collateral Agent hereunder and in any case,
Administrative Agent’s resignation shall become effective on the thirtieth day
after such notice of resignation.  If
neither the Requisite Lenders nor Administrative Agent have appointed a
successor Administrative Agent, the Requisite Lenders shall be deemed to have
succeeded to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent; provided that, until a successor
Administrative Agent is so appointed by the Requisite Lenders or Administrative
Agent, (i) Administrative Agent, by notice to Borrower and the Requisite
Lenders, shall retain its role as Collateral Agent under any Collateral
Document and (ii) the resigning Administrative Agent shall deliver the
Register to the Borrower on the effective date of its resignation, the Borrower
shall maintain such Register until a successor Administrative Agent has been
appointed, and promptly upon appointment of a successor Administrative Agent,
the Borrower shall deliver the Register to such Person.  Except as provided in the immediately preceding
sentence, resignation of LCPI or its successor as Administrative Agent pursuant
to this Section shall also constitute the resignation of LCPI or its
successor as Collateral Agent, and any successor Administrative Agent appointed
pursuant to this Section shall, upon its acceptance of such appointment,
become the successor Collateral Agent for all purposes hereunder.  After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this
Section 9 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent hereunder.  Any successor Administrative Agent appointed
pursuant to this Section shall, upon its acceptance of such appointment,
become the successor Collateral Agent for all purposes hereunder.

 

9.8.   Collateral Documents and Guaranty.

 

(a)   Agents under Collateral Documents and
Guaranty.  Each Secured Party hereby
further authorizes Administrative Agent or Collateral Agent, as applicable, on
behalf of and for the benefit of Secured Parties, to be the agent for and
representative of the Secured Parties with respect to the Guaranty, the
Intercreditor Agreement, the Collateral and the Collateral Documents.  Subject to Section 10.5, without further
written consent or authorization from any Secured Party, Administrative Agent
or Collateral Agent, as applicable may execute any documents or instruments
necessary to (i) in connection with a sale or disposition of assets
permitted by this Agreement, release any Lien encumbering any item of
Collateral that is the subject of such sale or other disposition of assets or
to which Requisite Lenders (or such other Lenders as may be required to give
such consent under Section 10.5) have otherwise consented or (ii) release
any Guarantor from the Guaranty pursuant to Section 7.12 or with respect
to which Requisite Lenders (or such other Lenders as may be required to give
such consent under Section 10.5) have otherwise consented.

 

(b)   Right to Realize on Collateral and Enforce
Guaranty.  Anything contained in any
of the Credit Documents to the contrary notwithstanding, Borrower,
Administrative Agent, Collateral Agent and each Secured Party hereby agree that
(i) no Secured Party shall have any right individually to realize upon any
of the Collateral or to enforce the Guaranty, it being

 

98

 

understood and
agreed that all powers, rights and remedies hereunder may be exercised solely
by Administrative Agent on behalf of the Secured Parties in accordance with the
terms hereof, and all powers, rights and remedies under the Collateral
Documents may be exercised solely by Collateral Agent, and (ii) in the
event of a foreclosure by Collateral Agent on any of the Collateral pursuant to
a public or private sale or other disposition, Collateral Agent or any Lender
may be the purchaser or licensor of any or all of such Collateral at any such
sale or other disposition and Collateral Agent, as agent for and representative
of Secured Parties (but not any Lender or Lenders in its or their respective
individual capacities unless Requisite Lenders shall otherwise agree in
writing), shall be entitled, for the purpose of bidding and making settlement
or payment of the purchase price for all or any portion of the Collateral sold
at any such public sale, to use and apply any of the Obligations as a credit on
account of the purchase price for any collateral payable by Collateral Agent at
such sale or other disposition.

 

9.9.   Withholding Taxes.  To the extent
required by any applicable law, Administrative Agent may withhold from any
payment to any Lender an amount equivalent to any applicable withholding
tax.  If the Internal Revenue Service or
any other Governmental Authority asserts a claim that Administrative Agent did
not properly withhold tax from amounts paid to or for the account of any Lender
because the appropriate form was not delivered or was not properly executed or
because such Lender failed to notify Administrative Agent of a change in circumstance
which rendered the exemption from, or reduction of, withholding tax ineffective
or for any other reason, such Lender shall indemnify Administrative Agent fully
for all amounts paid, directly or indirectly, by Administrative Agent as tax or
otherwise, including any penalties or interest and together with all expenses
(including legal expenses, allocated internal costs and out-of-pocket expenses)
incurred.

 

SECTION 10.   MISCELLANEOUS

 

10.1.   Notices.

 

(a)   Notices Generally.  Any notice or other communication herein
required or permitted to be given to a Credit Party, Syndication Agent,
Collateral Agent, Administrative Agent or Documentation Agent shall be sent to
such Person’s address as set forth on Appendix B or in the other relevant
Credit Document, and in the case of any Lender, the address as indicated on
Appendix B or otherwise indicated to Administrative Agent in writing.  Except as otherwise set forth in paragraph
(b) below, each notice hereunder shall be in writing and may be personally
served, telexed or sent by telefacsimile or United States mail or courier
service and shall be deemed to have been given when delivered in person or by
courier service and signed for against receipt thereof, upon receipt of
telefacsimile or telex, or three Business Days after depositing it in the
United States mail with postage prepaid and properly addressed; provided,
no notice to any Agent shall be effective until received by such Agent; provided
further, any such notice or other communication shall at the request of
Administrative Agent be provided to any sub-agent appointed pursuant to
Section 9.3(c) hereto as designated by Administrative Agent from time
to time.

 

99

 

(b)   Electronic Communications.

 

(i)   Notices and other
communications to the Lenders hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites,
including the Platform) pursuant to procedures approved by Administrative
Agent, provided that the foregoing shall not apply to notices to any
Lender pursuant to Section 2 if such Lender, as applicable, has notified
Administrative Agent that it is incapable of receiving notices under such
Section by electronic communication. 
Administrative Agent or Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications
pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.  Unless Administrative Agent otherwise
prescribes, (i) notices and other communications sent to an e-mail address
shall be deemed received upon the sender’s receipt of an acknowledgement from
the intended recipient (such as by the “return receipt requested” function, as
available, return e-mail or other written acknowledgement), provided
that if such notice or other communication is not sent during the normal
business hours of the recipient, such notice or communication shall be deemed
to have been sent at the opening of business on the next Business Day for the
recipient, and (ii) notices or communications posted to an Internet or
intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

 

(ii)   Each of the Credit
Parties understands that the distribution of material through an electronic
medium is not necessarily secure and that there are confidentiality and other
risks associated with such distribution and agrees and assumes the risks
associated with such electronic distribution, except to the extent caused by
the willful misconduct, bad faith or gross negligence of Administrative Agent,
as determined by a final, non-appealable judgment of a court of competent
jurisdiction.

 

(iii)   The Platform and any
Approved Electronic Communications are provided “as is” and “as
available”.  None of the Agents or any of
their respective officers, directors, employees, agents, advisors or
representatives (the “Agent Affiliates”)
warrant the accuracy, adequacy, or completeness of the Approved Electronic
Communications or the Platform and each expressly disclaims liability for
errors or omissions in the Platform and the Approved Electronic
Communications.  No warranty of any kind,
express, implied or statutory, including any warranty of merchantability,
fitness for a particular purpose, non-infringement of third party rights or
freedom from viruses or other code defects is made by the Agent Affiliates in
connection with the Platform or the Approved Electronic Communications.

 

(iv)   Each of the Credit
Parties, the Lenders and the Agents agree that Administrative Agent may, but
shall not be obligated to, store any Approved Electronic Communications on the
Platform in accordance with Administrative Agent’s customary document retention
procedures and policies.

 

10.2.   Expenses.  On and after the Closing Date, Borrower
agrees to pay promptly (a) all the actual and reasonable out-of-pocket
costs and expenses of preparation of the Credit Documents and any consents,
amendments, waivers or other modifications thereto; (b) all the

 

100

 

reasonable
out-of-pocket costs of furnishing all opinions by counsel for Borrower and the
other Credit Parties; (c) the reasonable fees, reasonable out-of-pocket
expenses and reasonable disbursements of one counsel to Agents and Lenders in
connection with the negotiation, preparation, execution and administration of
the Credit Documents and any consents, amendments, waivers or other
modifications thereto and any other documents or matters requested by Borrower;
provided that, reasonable attorney’s fees shall be limited to one
primary counsel and, if reasonably required by Administrative Agent, one local
or specialist counsel for Agent and Lenders in each relevant jurisdiction, provided
further that if counsel for Administrative Agent determines in good faith
that there is an actual or potential conflict of interest that requires
separate representation for the Agents, Borrower shall be required to pay for
one additional counsel for all such Agents taken as a whole; (d) all the
actual and reasonable out-of-pocket costs and reasonable out-of-pocket expenses
of creating, perfecting and recording Liens in favor of Collateral Agent, for
the benefit of the Secured Parties, including filing and recording fees,
expenses and taxes, stamp or documentary taxes, search fees, title insurance
premiums and reasonable fees, reasonable out-of-pocket expenses and reasonable
disbursements of one counsel to Collateral Agent and Secured Parties and of
counsel providing any opinions that any Agent or Requisite Lenders may
reasonably request in respect of the Collateral or the Liens created pursuant
to the Collateral Documents; (e) all the actual and reasonable
out-of-pocket costs and reasonable fees, reasonable out-of-pocket expenses and
reasonable disbursements of any auditors, accountants, consultants or
appraisers; (f) all the actual and reasonable costs and reasonable
out-of-pocket expenses (including the reasonable fees, reasonable out-of-pocket
expenses and reasonable disbursements of any appraisers, consultants, advisors
and agents employed or retained by Collateral Agent and its counsel in
accordance with the terms of the Credit Documents) in connection with the
custody or preservation of any of the Collateral; (g) all other actual and
reasonable out-of-pocket costs and reasonable out-of-pocket expenses incurred
by each Agent in connection with the syndication of the Loans and the
negotiation, preparation and execution of the Credit Documents and any
consents, amendments, waivers or other modifications thereto and the
transactions contemplated thereby; and (h) after the occurrence of a
Default or an Event of Default, all reasonable out-of-pocket costs and
reasonable out-of-pocket expenses, including reasonable attorneys’ fees for one
counsel for Agents and Lenders (unless either (i) the Administrative Agent
determines in good faith that there is an actual or potential conflict of
interest that requires separate representation for the Agents or (ii) the
Lenders, or any of them, requests separate counsel, in which case, Borrower
shall be required to pay for one additional counsel for all such Agents and all
such requesting Lenders, taken as a whole) and costs of settlement, incurred by
any Agent and Lenders in enforcing any Obligations of or in collecting any
payments due from any Credit Party hereunder or under the other Credit
Documents by reason of such Default or Event of Default (including in
connection with the sale, lease or license of, collection from, or other
realization upon any of the Collateral or the enforcement of the Guaranty) or
in connection with any refinancing or restructuring of the credit arrangements
provided hereunder in the nature of a “work-out” or pursuant to any insolvency
or bankruptcy cases or proceedings.

 

10.3.   Indemnity.

 

(a)   In addition to the payment of expenses
pursuant to Section 10.2, on and after the Closing Date, each Credit Party
agrees to defend (subject to Indemnitees’ selection of counsel), indemnify, pay
and hold harmless, each Agent, Arranger and Lender and the officers,

 

101

 

partners,
members, directors, trustees, advisors, employees, agents, sub-agents and
Affiliates of each Agent, Arranger and Lender (each, an “Indemnitee”), from and against any and all
Indemnified Liabilities; provided, no Credit Party shall have any
obligation to any Indemnitee hereunder with respect to any Indemnified
Liabilities (i) to the extent such Indemnified Liabilities arise from the
gross negligence, bad faith or willful misconduct of that Indemnitee or its
employees, agents, directors or affiliates or (ii) to the extent such
Indemnified Liabilities arise out of or are in connection with any claim,
litigation, loss or proceeding not involving a Credit Party or any of its
Subsidiaries or Affiliates and that is brought by an Indemnitee against another
Indemnitee (other than against any Arranger or Administrative Agent in their
capacities as such), in each case, as determined by a final, non-appealable
judgment of a court of competent jurisdiction. 
To the extent that the undertakings to defend, indemnify, pay and hold
harmless set forth in this Section 10.3 may be unenforceable in whole or
in part because they are violative of any law or public policy, the applicable
Credit Party shall contribute the maximum portion that it is permitted to pay
and satisfy under applicable law to the payment and satisfaction of all
Indemnified Liabilities incurred by Indemnitees or any of them.

 

(b)   To the extent permitted by applicable law, no
Credit Party shall assert, and each Credit Party hereby waives, any claim
against each Lender, each Agent and their respective Affiliates, directors,
employees, attorneys, agents or sub-agents, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or
actual damages) (whether or not the claim therefor is based on contract, tort
or duty imposed by any applicable legal requirement) arising out of, in
connection with, arising out of, as a result of, or in any way related to, this
Agreement or any Credit Document or any agreement or instrument contemplated
hereby or thereby or referred to herein or therein, the transactions
contemplated hereby or thereby, any Loan or the use of the proceeds thereof or
any act or omission or event occurring in connection therewith, and Holdings
and Borrower hereby waives, releases and agrees not to sue upon any such claim
or any such damages, whether or not accrued and whether or not known or
suspected to exist in its favor.

 

10.4.   Set-Off.  Subject to the terms of the Intercreditor
Agreement, in addition to any rights now or hereafter granted under applicable
law and not by way of limitation of any such rights, upon the occurrence and
continuance of any Event of Default, each Lender is hereby authorized by each
Credit Party at any time or from time to time subject to the consent of
Administrative Agent (such consent not to be unreasonably withheld or delayed),
without notice to any Credit Party or to any other Person (other than
Administrative Agent), any such notice being hereby expressly waived, to set
off and to appropriate and to apply any and all deposits (general or special,
including Indebtedness evidenced by certificates of deposit, whether matured or
unmatured, but not including trust accounts) and any other Indebtedness at any
time held or owing by such Lender to or for the credit or the account of any
Credit Party against and on account of the obligations and liabilities of any
Credit Party to such Lender hereunder and under the other Credit Documents,
including all claims of any nature or description arising out of or connected
hereto or with any other Credit Document, irrespective of whether or not
(a) such Lender shall have made any demand hereunder or (b) the
principal of or the interest on the Loans or any other amounts due hereunder
shall have become due and payable pursuant to Section 2 and although such
obligations and liabilities, or any of them, may be contingent or unmatured.

 

102

 

10.5.
  Amendments and Waivers.

 

(a)   Requisite Lenders’ Consent.  Subject to the additional requirements of
Sections 10.5(b) and 10.5(c), no amendment, modification, termination or
waiver of any provision of the Credit Documents, or consent to any departure by
any Credit Party therefrom, shall in any event be effective without the written
concurrence of the Requisite Lenders; provided that Administrative Agent may,
with the consent of Borrower only, amend, modify or supplement this Agreement
to cure any ambiguity, omission, defect or inconsistency, so long as such
amendment, modification or supplement does not materially and adversely affect
the rights of any Lender.

 

(b)   Affected Lenders’ Consent.  Without the written consent of each Lender
that would be directly affected thereby, no amendment, modification,
termination, or consent shall be effective if the effect thereof would:

 

(i)   extend the scheduled
final maturity of any Loan or Note;

 

(ii)   waive, reduce or
postpone any scheduled repayment (but not prepayment);

 

(iii)   reserved;

 

(iv)   reduce the rate of
interest on any Loan (other than any waiver of any increase in the interest
rate applicable to any Loan pursuant to Section 2.10) or any fee or any
premium payable hereunder;

 

(v)   extend the time for
payment of any such interest or fees;

 

(vi)   reduce the principal
amount of any Loan;

 

(vii)   amend, modify,
terminate or waive any provision of Section 2.13(b)(ii), this
Section 10.5(b), Section 10.5(c) or any other provision of this
Agreement that expressly provides that the consent of all Lenders is required;

 

(viii)   amend the
definition of “Requisite Lenders” or “Pro Rata Share”; provided, that
with the consent of Requisite Lenders (excluding any Lenders who will no longer
be Lenders following the borrowing and use of proceeds of the additional
extensions of credit), additional extensions of credit pursuant hereto may be
included in the determination of “Requisite
Lenders” or “Pro Rata Share”
on substantially the same basis as the Commitments and the Loans are included
on the Closing Date;

 

(ix)   release all or
substantially all of the Collateral or all or substantially all of the
Guarantors from the Guaranty except as expressly provided in the Credit
Documents; or

 

(x)   consent to the
assignment or transfer by any Credit Party of any of its rights and obligations
under any Credit Document.

 

103

 

(c)   Other Consents.  No amendment, modification, termination or
waiver of any provision of the Credit Documents, or consent to any departure by
any Credit Party therefrom, shall:

 

(i)   amend, modify,
terminate or waive any provision of Section 9 as the same applies to any
Agent, or any other provision hereof as the same applies to the rights or
obligations of any Agent, in each case without the consent of such Agent; or

 

(ii)   amend or modify the
definition of “Change of Control”
or waive any Event of Default under Section 8.1(k) without the
written consent of the Requisite Supermajority Lenders.

 

(d)   Execution of Amendments, etc.  Administrative Agent may, but shall have no
obligation to, with the concurrence of any Lender, execute amendments,
modifications, waivers or consents on behalf of such Lender.  Any waiver or consent shall be effective only
in the specific instance and for the specific purpose for which it was
given.  No notice to or demand on any
Credit Party in any case shall entitle any Credit Party to any other or further
notice or demand in similar or other circumstances.  Any amendment, modification, termination,
waiver or consent effected in accordance with this Section 10.5 shall be
binding upon each Lender at the time outstanding, each future Lender and, if
signed by a Credit Party, on such Credit Party.

 

10.6.   Successors and Assigns; Participations.

 

(a)   Generally.  This Agreement shall be binding upon the
parties hereto and their respective successors and permitted assigns and shall
inure to the benefit of the parties hereto and the successors and permitted
assigns of Lenders.  No Credit Party’s
rights or obligations hereunder nor any interest therein may be assigned or
delegated by any Credit Party without the prior written consent of all
Lenders.  Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
and, to the extent expressly contemplated hereby, Affiliates of each of the
Agents and Lenders) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

 

(b)   Register.  Borrower, Administrative Agent and Lenders
shall deem and treat the Persons listed as Lenders in the Register as the
holders and owners of the corresponding Loans listed therein for all purposes
hereof, and no assignment or transfer of any such Loan shall be effective, in
each case, unless and until recorded in the Register following receipt of an
Assignment Agreement effecting the assignment or transfer thereof, together
with the required forms and certificates regarding tax matters and any fees
payable in connection with such assignment, in each case, as provided in
Section 10.6(d).  Each assignment
shall be recorded in the Register on the Business Day the Assignment Agreement
is received by Administrative Agent, if received by 12:00 noon New York City
time, and on the following Business Day if received after such time, prompt
notice thereof shall be provided to Borrower and a copy of such Assignment
Agreement shall be maintained, as applicable. 
The date of such recordation of a transfer shall be referred to herein
as the “Assignment Effective Date.”  Any request, authority or consent of any
Person who, at the time of making such request or giving such authority or

 

104

consent, is listed in the Register as a Lender shall be
conclusive and binding on any subsequent holder, assignee or transferee of the
corresponding Loans.

 

(c)   Right to
Assign.  Each Lender shall have the
right at any time to sell, assign or transfer all or a portion of its rights
and obligations under this Agreement, including all or a portion of its Loans
owing to it or other Obligations (provided, however, that pro
rata assignments shall not be required and each assignment shall be of a
uniform, and not varying, percentage of all rights and obligations under and in
respect of any applicable Loan):

 

(i)   to any
Person meeting the criteria of clause (i) of the definition of the term “Eligible
Assignee”; and

 

(ii)   to any
Person meeting the criteria of clause (ii) of the definition of the term “Eligible
Assignee”; provided, each such assignment pursuant to this Section 10.6(c)(ii) shall
be in an aggregate amount of not less than $1,000,000 (or such lesser amount as
may be agreed to by Borrower and Administrative Agent or as shall constitute
the aggregate amount of the Loans of the assigning Lender).

 

(d)   Mechanics.  Assignments and assumptions of Loans by
Lenders shall be effected by manual execution and delivery to Administrative
Agent of an Assignment Agreement. 
Assignments made pursuant to the foregoing provision shall be effective
as of the Assignment Effective Date.  In
connection with all assignments there shall be delivered to Administrative
Agent such forms, certificates or other evidence, if any, with respect to
United States federal income tax withholding matters as the assignee under such
Assignment Agreement may be required to deliver pursuant to Section 2.20(c),
together with payment to Administrative Agent
of a registration and processing fee of $3,500 (except that no such
registration and processing fee shall be payable (y) in connection with an
assignment by or to GSCP or any Affiliate thereof or (z) in the case of an
Assignee which is already a Lender or is an affiliate or Related Fund of a
Lender or a Person under common management with a Lender).

 

(e)   Representations
and Warranties of Assignee.  Each
Lender, upon execution and delivery hereof or upon succeeding to an interest in
the Loans represents and warrants as of the Closing Date or as of the
Assignment Effective Date that (i) it is an Eligible Assignee; (ii) it
has experience and expertise in the making of or investing in commitments or
loans such as the Loans; and (iii) it will make or invest in its Loans for
its own account in the ordinary course and without a view to distribution of
such Loans in violation of the Securities Act or the Exchange Act or other
federal securities laws (it being understood that, subject to the provisions of
this Section 10.6, the disposition of such Loans or any interests therein
shall at all times remain within its exclusive control).

 

(f)   Effect of
Assignment.  Subject to the terms and
conditions of this Section 10.6, as of the “Assignment Effective Date” (i) the
assignee thereunder shall have the rights and obligations of a “Lender”
hereunder to the extent of its interest in the Loans as reflected in the
Register and shall thereafter be a party hereto and a “Lender” for all purposes
hereof; (ii) the assigning Lender thereunder shall, to the extent that
rights and obligations hereunder have been assigned to the assignee, relinquish
its rights (other than any rights which survive the termination hereof under Section 10.8)
and be released from its obligations hereunder (and, in the case of an

 

105

 

assignment covering all or the remaining portion of an
assigning Lender’s rights and obligations hereunder, such Lender shall cease to
be a party hereto on the Assignment Effective Date; provided, anything contained
in any of the Credit Documents to the contrary notwithstanding, such assigning
Lender shall continue to be entitled to the benefit of all indemnities
hereunder as specified herein with respect to matters arising out of the prior
involvement of such assigning Lender as a Lender hereunder); and (iii) if
any such assignment occurs after the issuance of any Note hereunder, the
assigning Lender shall, upon the effectiveness of such assignment or as
promptly thereafter as practicable, surrender its applicable Notes to
Administrative Agent for cancellation, and thereupon Borrower shall issue and
deliver new Notes, if so requested by the assignee and/or assigning Lender, to
such assignee and/or to such assigning Lender, with appropriate insertions, to
reflect the outstanding Loans of the assignee and/or the assigning Lender.

 

(g)   Participations.

 

(i)   Each Lender
shall have the right at any time to sell one or more participations to any
Person (other than Holdings, any of its Subsidiaries or any of its Affiliates)
in all or any part of its Loans or in any other Obligation.

 

(ii)    The holder
of any such participation, other than an Affiliate of the Lender granting such
participation, shall not be entitled to require such Lender to take or omit to
take any action hereunder except with respect to any amendment, modification or
waiver that would (A) extend the final scheduled maturity of any Loan or
Note in which such participant is participating, or reduce the rate or extend
the time of payment of interest or fees thereon (except in connection with a
waiver of applicability of any post-default increase in interest rates (it
being understood that any change to the component definitions of the Leverage
Ratio affecting the determination of interest shall not require the consent of
such participant)) or reduce the principal amount thereof, or increase the
amount of the participant’s participation over the amount thereof then in
effect (it being understood that a waiver of any Default or Event of Default
shall not constitute a change in the terms of such participation, and that an
increase in any Loan shall be permitted without the consent of any participant
if the participant’s participation is not increased as a result thereof), (B) consent
to the assignment or transfer by any Credit Party of any of its rights and
obligations under this Agreement or (C) release all or substantially all
of the Collateral under the Collateral Documents (except as expressly provided
in the Credit Documents) supporting the Loans hereunder in which such
participant is participating. Notwithstanding the foregoing, any bank that is a member of the Farm Credit System that (A) has
purchased a participation in the minimum amount of $10,000,000, (B) has
been designated by written notice to Administrative Agent as being entitled to
be accorded the right of a voting participant, and (C) receives the prior
consent of Administrative Agent to become a voting participant, shall be
entitled to vote, and the voting rights of the selling Lender shall be
correspondingly reduced, on a dollar-for-dollar basis, as if such participant
were a Lender, on any matter requiring or allowing a Lender to provide or
withhold its consent, or to otherwise vote on any proposed action.

 

(iii)     Borrower
agrees that each participant shall be entitled to the benefits of Sections
2.18(c), 2.19 and 2.20 to the same extent as if it were a Lender and

 

106

 

had
acquired its interest by assignment pursuant to paragraph (c) of this
Section; provided, (x) a participant shall not be entitled to
receive any greater payment under Section 2.19 or 2.20 than the applicable
Lender would have been entitled to receive with respect to the participation
sold to such participant, unless the sale of the participation to such
participant is made with Borrower’s prior written consent and (y) a
participant that would be a Non-US Lender if it were a Lender shall not be
entitled to the benefits of Section 2.20 unless Borrower is notified of
the participation sold to such participant and such participant agrees, for the
benefit of Borrower, to comply with Section 2.20 as though it were a
Lender; provided further that, except as specifically set forth in
clauses (x) and (y) of this sentence, nothing herein shall require
any notice to Borrower or any other Person in connection with the sale of any
participation.  To the extent permitted
by law, each participant also shall be entitled to the benefits of Section 10.4
as though it were a Lender, provided such participant agrees to be subject to Section 2.17
as though it were a Lender.

 

(h)   Certain
Other Assignments and Participations. 
In addition to any other assignment or participation permitted pursuant
to this Section 10.6, any Lender may assign and/or pledge all or any
portion of its Loans, the other Obligations owed by or to such Lender, and its
Notes, if any, to secure obligations of such Lender including, without
limitation, any Federal Reserve Bank as collateral security pursuant to
Regulation A of the Board of Governors and any operating circular issued
by such Federal Reserve Bank; provided, that no Lender, as between
Borrower and such Lender, shall be relieved of any of its obligations hereunder
as a result of any such assignment and pledge, and provided  further,
that in no event shall the applicable Federal Reserve Bank or other pledgee be
considered to be a “Lender” or be entitled to require the assigning Lender to
take or omit to take any action hereunder.

 

(i)   In connection with an additional extension of
credit as described in Section 10.5(b)(viii), the Borrower shall
have the option, with the consent of the Administrative Agent and subject to at
least three Business Days’ advance notice to the Lenders who will no longer be
Lenders following the borrowing and use of proceeds of such additional
extensions of credit, instead of prepaying the Loans, to (i) require such
Lenders to assign such Loans to the Administrative Agent or its designees and (ii) amend
the terms thereof in accordance with Section 10.5 (with such amendment, if
applicable, being deemed to have been made pursuant to Section 10.5(b)(viii)).  Pursuant to any such assignment, all Loans to
be assigned shall be purchased at par (allocated among the applicable Lenders
in the same manner as would be required if such Loans were being optionally
prepaid), accompanied by payment of any accrued interest and fees thereon and
any amounts owing pursuant to Section 2.18(c).  By receiving such purchase price, such
Lenders shall automatically be deemed to have assigned the Loans of such
Lenders pursuant to the terms of an Assignment Agreement, and accordingly no
other action by such Lenders shall be required in connection therewith.  The provisions of this paragraph are intended
to facilitate the maintenance of the perfection and priority of existing
security interests in the Collateral during any such replacement.

 

10.7.   Independence of Covenants.  All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an exception
to, or would otherwise be within

 

107

 

the
limitations of, another covenant shall not avoid the occurrence of a Default or
an Event of Default if such action is taken or condition exists.

 

10.8.   Survival of Representations, Warranties and
Agreements.  All representations, warranties and
agreements made herein shall survive the execution and delivery hereof and the
making of any Credit Extension. 
Notwithstanding anything herein or implied by law to the contrary, the
agreements of each Credit Party set forth in Sections 2.18(c), 2.19, 2.20,
10.2, 10.3 and 10.4 and the agreements of Lenders set forth in Sections 2.17,
9.3(b) and 9.6 shall survive the payment of the Loans and the termination
hereof.

 

10.9.   No Waiver; Remedies Cumulative.  No failure or delay on the part of any Agent or any
Lender in the exercise of any power, right or privilege hereunder or under any
other Credit Document shall impair such power, right or privilege or be
construed to be a waiver of any default or acquiescence therein, nor shall any
single or partial exercise of any such power, right or privilege preclude other
or further exercise thereof or of any other power, right or privilege.  The rights, powers and remedies given to each
Agent and each Lender hereby are cumulative and shall be in addition to and
independent of all rights, powers and remedies existing by virtue of any
statute or rule of law or in any of the other Credit Documents.  Any forbearance or failure to exercise, and
any delay in exercising, any right, power or remedy hereunder shall not impair
any such right, power or remedy or be construed to be a waiver thereof, nor
shall it preclude the further exercise of any such right, power or remedy.

 

10.10.   Marshalling; Payments Set Aside.  Neither any Agent nor any Lender shall be under any
obligation to marshal any assets in favor of any Credit Party or any other
Person or against or in payment of any or all of the Obligations.  To the extent that any Credit Party makes a
payment or payments to Administrative Agent or Lenders (or to Administrative
Agent, on behalf of Lenders), or any Agent or Lenders enforce any security
interests or exercise their rights of setoff, and such payment or payments or
the proceeds of such enforcement or setoff or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside and/or
required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, any other state or federal law, common law or any equitable
cause, then, to the extent of such recovery, the obligation or part thereof
originally intended to be satisfied, and all Liens, rights and remedies
therefor or related thereto, shall be revived and continued in full force and
effect as if such payment or payments had not been made or such enforcement or
setoff had not occurred.

 

10.11.   Severability.  In case any provision in or obligation hereunder
or under any other Credit Document shall be invalid, illegal or unenforceable
in any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby.

 

10.12.   Obligations Several; Independent
Nature of Lenders’ Rights.  The obligations of Lenders hereunder are
several and no Lender shall be responsible for the obligations of any other
Lender hereunder.  Nothing contained
herein or in any other Credit Document, and no action taken by Lenders pursuant
hereto or thereto, shall be deemed to constitute Lenders as a partnership, an
association, a joint venture or any other kind of entity. The amounts payable
at any time hereunder to each Lender shall be a separate and independent debt,
and each Lender shall be entitled to protect and enforce its rights arising out
hereof and it

 

108

 

shall
not be necessary for any other Lender to be joined as an additional party in
any proceeding for such purpose.

 

10.13.   Headings.  Section headings herein are included
herein for convenience of reference only and shall not constitute a part hereof
for any other purpose or be given any substantive effect.

 

10.14.   APPLICABLE LAW.  THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF.

 

10.15.   CONSENT TO
JURISDICTION.  ALL
JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY HERETO ARISING OUT OF OR
RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, MAY BE
BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE,
COUNTY AND CITY OF NEW YORK.  BY
EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY HERETO, FOR ITSELF AND IN
CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS GENERALLY AND
UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (B) WAIVES
ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES THAT SERVICE OF ALL
PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED
OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE PARTY HERETO AT
ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1; (D) AGREES THAT
SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT TO CONFER PERSONAL
JURISDICTION OVER THE APPLICABLE PARTY HERETO IN ANY SUCH PROCEEDING IN ANY
SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY
RESPECT; AND (E) AGREES THAT ANY PARTY HERETO RETAINS THE RIGHT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST
ANY OTHER PARTY HERETO IN THE COURTS OF ANY OTHER JURISDICTION.

 

10.16.   WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY
AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE OTHER CREDIT
DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS
LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS BEING
ESTABLISHED.  THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED
IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS.  EACH
PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL

 

109

 

INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY
RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL
CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS.  EACH PARTY HERETO FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL.  THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN
WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16
AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF
THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO
THE LOANS MADE HEREUNDER.  IN THE EVENT
OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL
BY THE COURT.

 

10.17.   Confidentiality.  Each Agent and each Lender shall hold all
non-public information regarding Holdings and its Subsidiaries and their
businesses identified as such by Borrower and obtained by such Agent or such
Lender pursuant to the requirements hereof in accordance with such Agent’s and
such Lender’s customary procedures for handling confidential information of
such nature, it being understood and agreed by Borrower that, in any event,
Administrative Agent may disclose such information to the Lenders and each
Agent and each Lender may make (i) disclosures of such information to
Affiliates of such Lender or Agent and to their respective agents and advisors
(and to other Persons authorized by a Lender or Agent to organize, present or
disseminate such information in connection with disclosures otherwise made in
accordance with this Section 10.17), (ii) disclosures of such
information reasonably required by any bona fide or potential assignee,
transferee or participant in connection with the contemplated assignment, transfer
or participation of any Loans or any participations therein or by any direct or
indirect contractual counterparties (or the professional advisors thereto) to
any swap or derivative transaction relating to Borrower and its obligations
(provided, such assignees, transferees, participants, counterparties and
advisors are advised of and agree to be bound by either the provisions of this Section 10.17
or other provisions at least as restrictive as this Section 10.17), (iii) disclosure
to any rating agency when required by it, provided that, prior to any
disclosure, such rating agency shall undertake in writing to preserve the
confidentiality of any confidential information relating to the Credit Parties
received by it from any of the Agents or any Lender, (iv) disclosures in
connection with the exercise of any remedies hereunder or under any other
Credit Document and (v) disclosures required or requested by any
governmental agency or representative thereof or by the NAIC or pursuant to
legal or judicial process; provided, unless specifically prohibited by
applicable law or court order, each Lender and each Agent shall make reasonable
efforts to notify Borrower of any request by any governmental agency or
representative thereof (other than any such request in connection with any
examination of the financial condition or other routine examination of such
Lender by such governmental agency) for disclosure of any such non-public
information prior to disclosure of such information.  In addition, each Agent and each Lender may
disclose the existence of this Agreement and the information about this
Agreement to market data collectors, similar services providers to the lending
industry, and service providers to the Agents and the Lenders in

 

110

 

connection
with the administration and management of this Agreement and the other Credit
Documents.

 

10.18.   Usury Savings Clause.  Notwithstanding any other provision herein,
the aggregate interest rate charged with respect to any of the Obligations,
including all charges or fees in connection therewith deemed in the nature of
interest under applicable law shall not exceed the Highest Lawful Rate.  If the rate of interest (determined without
regard to the preceding sentence) under this Agreement at any time exceeds the
Highest Lawful Rate, the outstanding amount of the Loans made hereunder shall
bear interest at the Highest Lawful Rate until the total amount of interest due
hereunder equals the amount of interest which would have been due hereunder if
the stated rates of interest set forth in this Agreement had at all times been
in effect.  In addition, if when the
Loans made hereunder are repaid in full the total interest due hereunder (taking
into account the increase provided for above) is less than the total amount of
interest which would have been due hereunder if the stated rates of interest
set forth in this Agreement had at all times been in effect, then to the extent
permitted by law, Borrower shall pay to Administrative Agent an amount equal to
the difference between the amount of interest paid and the amount of interest
which would have been paid if the Highest Lawful Rate had at all times been in
effect.  Notwithstanding the foregoing,
it is the intention of Lenders and Borrower to conform strictly to any
applicable usury laws.  Accordingly, if
any Lender contracts for, charges, or receives any consideration which
constitutes interest in excess of the Highest Lawful Rate, then any such excess
shall be cancelled automatically and, if previously paid, shall at such Lender’s
option be applied to the outstanding amount of the Loans made hereunder or be
refunded to Borrower.

 

10.19.   Counterparts.  This Agreement may be executed in any number
of counterparts, each of which when so executed and delivered shall be deemed
an original, but all such counterparts together shall constitute but one and
the same instrument.  Delivery of an
executed signature page to this Agreement by facsimile or electronic
transmission (in pdf format) shall be as effective as delivery of a manually
signed counterpart of this Agreement.

 

10.20.   Effectiveness; Entire Agreement.  This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto and receipt
by Borrower and Administrative Agent of written or telephonic notification of
such execution and authorization of delivery thereof.  With the exception of those terms contained
in the Amended and Restated Commitment Letter, dated November 2, 2007,
among GSCP, Lehman Brothers, LCPI and Aldabra which by the terms of the
Commitment Letter remain in full force and effect, all of GSCP’s, Lehman
Brothers’, LCPI’s, Aldabra’s and their respective Affiliates’ obligations under
the Commitment Letter shall terminate and be superseded by the Credit Documents
and GSCP, Lehman Brothers, LCPI, Aldabra and their respective Affiliates shall
be released from all liability in connection therewith, including, without
limitation, any claim for injury or damages, whether consequential, special,
direct, indirect, punitive or otherwise.

 

10.21.   Patriot
Act.  Each Lender and Administrative
Agent (for itself and not on behalf of any Lender) hereby notifies each Credit
Party that pursuant to the requirements of the Patriot Act, it is required to
obtain, verify and record information that identifies each Credit Party, which
information includes the name and address of each Credit Party and other
information that will

 

111

 

allow
such Lender or Administrative Agent, as applicable, to identify such Credit
Party in accordance with the Patriot Act.

 

10.22.   Electronic Execution of
Assignments. 
The words “execution,” “signed,” “signature,” and words of like import
in any Assignment Agreement shall be deemed to include electronic signatures or
the keeping of records in electronic form, each of which shall be of the same
legal effect, validity or enforceability as a manually executed signature or
the use of a paper-based recordkeeping system, as the case may be, to the
extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

 

10.23.   No
Fiduciary Duty.  Each Agent,
each Arranger, each Lender and their Affiliates (collectively, solely for
purposes of this paragraph, the “Lenders”),
may have economic interests that conflict with those of Borrower.  Borrower agrees that nothing in the Credit
Documents or otherwise will be deemed to create an advisory, fiduciary or
agency relationship or fiduciary or other implied duty between Lenders and
Borrower, its stockholders or its affiliates. 
Borrower acknowledges and agrees that (i) the transactions
contemplated by the Credit Documents are arm’s-length commercial transactions
between Lenders, on the one hand, and Borrower, on the other, (ii) in
connection therewith and with the process leading to such transaction each of
the Lenders is acting solely as a principal and not the agent or fiduciary of
Borrower, its management, stockholders, creditors or any other person, (iii) no
Lender has assumed an advisory or fiduciary responsibility in favor of Borrower
with respect to the transactions contemplated hereby or the process leading
thereto (irrespective of whether any Lender or any of its affiliates has
advised or is currently advising Borrower on other matters) or any other
obligation to Borrower except the obligations expressly set forth in the Credit
Documents and (iv) Borrower has consulted its own legal and financial
advisors to the extent it deemed appropriate. 
Borrower further acknowledges and agrees that it is responsible for
making its own independent judgment with respect to such transactions and the
process leading thereto.  Borrower agrees
that it will not claim that any Lender has rendered advisory services of any
nature or respect, or owes a fiduciary or similar duty to Borrower, in
connection with such transaction or the process leading thereto.

 

[Remainder of page intentionally left
blank]

 

112

 

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

 

 

	
   

  	
  ALDABRA SUB LLC, as Borrower prior to the

  BPH Merger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
   

  	
  Name: Samuel K.
  Cotterell

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C., as

  Borrower after the BPH Merger

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
   

  	
  Name: Samuel K.
  Cotterell

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA HOLDING SUB LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
   

  	
  Name: Samuel K.
  Cotterell

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  BOISE WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE
  PACKAGING & NEWSPRINT, L.L.C.

  
	
   

  	
  BOISE CASCADE TRANSPORTATION

  HOLDINGS CORP.

  
	
   

  	
  BOISE
  WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE WHITE PAPER HOLDINGS
  CORP.

  
	
   

  	
  INTERNATIONAL FALLS POWER

  COMPANY

  
	
   

  	
  MINNESOTA, DAKOTA & WESTERN

  RAILWAY COMPANY

  
	
   

  	
  BEMIS
  CORPORATION

  
	
   

  	
  BC
  CHINA CORPORATION

  
	
   

  	
  B C T, INC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
   

  	
  Name: Samuel K.
  Cotterell

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  
	
   

  	
  as
  Syndication Agent and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Tom Connolly

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 

	
   

  	
  LEHMAN COMMERCIAL PAPER
  INC.,

  
	
   

  	
  as
  Administrative Agent, Collateral Agent and

  
	
   

  	
  a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Laurie B. Perper

  
	
   

  	
   

  	
  Name: Laurie B. Perper

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN BROTHERS INC.,

  
	
   

  	
  as
  Documentation Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Laurie B. Perper

  
	
   

  	
   

  	
  Name: Laurie B. Perper

  
	
   

  	
   

  	
  Title: Managing
  Director

  

 

 

APPENDIX A

TO SECOND LIEN CREDIT AND
GUARANTY AGREEMENT

 

Commitments

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Pro

  Rata Share

  	
   

  
	
  Goldman Sachs Credit Partners L.P.

  	
   

  	
  $

  	
  260,700,000

  	
   

  	
  100.0

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  260,700,000

  	
   

  	
  100.0

  	
  %

  

 

A-1

 

APPENDIX B

TO SECOND LIEN CREDIT AND
GUARANTY AGREEMENT

 

Notice Addresses

 

ALDABRA SUB LLC

BOISE PAPER
HOLDINGS, L.L.C.

ALDABRA HOLDING
SUB LLC

BOISE WHITE PAPER,
L.L.C.

BOISE PACKAGING &
NEWSPRINT, L.L.C.

BOISE CASCADE
TRANSPORTATION HOLDINGS CORP.

BOISE WHITE PAPER
SALES CORP.

BOISE WHITE PAPER
HOLDINGS CORP.

INTERNATIONAL
FALLS POWER COMPANY

MINNESOTA, DAKOTA &
WESTERN RAILWAY COMPANY

BEMIS CORPORATION

BC CHINA
CORPORATION

B C T, INC

 

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

1111
West Jefferson Street

Suite 200

Boise,
ID 83702-5388

Attention: Chief
Financial Officer

Facsimile: (208)
384-4913

Email:
RobMcNutt@BoiseInc.com

 

in each case, with
a copy to:

 

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

1111
West Jefferson Street

Suite 200

Boise,
ID 83702-5388

Attention: General
Counsel

Facsimile: (208)
384-7945

Email:
Legal@BoiseInc.com

 

B-2

 

GOLDMAN
SACHS CREDIT PARTNERS L.P., 

as Syndication Agent and a Lender:

 

Goldman Sachs Credit Partners L.P. 

c/o Goldman, Sachs & Co. 

30 Hudson Street, 36th Floor 

Jersey City, NJ 07302 

Attention: SBD Operations 

Attention:  Andrew Caditz 

Telecopier:  (212) 428-1243  

Email: gsd.link@gs.com

 

with a copy to:

 

Goldman Sachs Credit Partners L.P. 

1 New York Plaza 

New York, New York  10004 

Attention:  Rob Schatzman

Telecopier:  (212) 902-3000 

Email: rwschatzman@am.ibd.gs.com

 

B-3

 

LEHMAN COMMERCIAL
PAPER INC.,

as Administrative
Agent, Collateral Agent and a Lender:

Administrative Agent’s Principal Office:

 

LEHMAN COMMERCIAL
PAPER INC.

745
Seventh Avenue

New
York, New York 10019

Attention:
Maritza Ospina

Facsimile:
(646) 758-4648

Email: mospina@lehman.com

 

with a copy to:

 

Attention:
Diane Albanese

Facsimile:
(646) 758-5130

Email: diane.albanese@lehman.com

 

B-4

 

LEHMAN BROTHERS
INC.,

as Documentation
Agent

 

LEHMAN BROTHERS
INC.

745
Seventh Avenue

New
York, New York  10019

Attention:
Maritza Ospina

Facsimile:
(646) 758-4648

Email: mospina@lehman.com

 

with a copy to:

 

Attention:
Diane Albanese

Facsimile:
(646) 758-5130

Email: diane.albanese@lehman.com

 

B-5Exhibit 10.7

 

EXECUTION VERSION

 

PLEDGE
AND SECURITY AGREEMENT (FIRST LIEN)

 

 

dated
as of February 22, 2008

 

between

 

EACH
OF THE GRANTORS PARTY HERETO

 

 

and

 

GOLDMAN
SACHS CREDIT PARTNERS L.P.,

 

as
Collateral Agent

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  PAGE

  
	
   

  	
   

  	
   

  
	
  SECTION 1.

  	
  DEFINITIONS; GRANT OF SECURITY

  	
  1

  
	
  1.1

  	
  General Definitions

  	
  1

  
	
  1.2

  	
  Definitions; Interpretation

  	
  7

  
	
  1.3

  	
  Intercreditor Agreement

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  GRANT OF SECURITY

  	
  8

  
	
  2.1

  	
  Grant of Security

  	
  8

  
	
  2.2

  	
  Certain Limited Exclusions

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE

  	
  10

  
	
  3.1

  	
  Security for Obligations

  	
  10

  
	
  3.2

  	
  Continuing Liability Under Collateral

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  CERTAIN PERFECTION REQUIREMENTS

  	
  10

  
	
  4.1

  	
  Delivery Requirements

  	
  10

  
	
  4.2

  	
  Control Requirements

  	
  10

  
	
  4.3

  	
  Intellectual Property Recording Requirements

  	
  12

  
	
  4.4

  	
  Other Actions

  	
  13

  
	
  4.5

  	
  Timing and Notice

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  REPRESENTATIONS AND WARRANTIES

  	
  13

  
	
  5.1

  	
  Grantor Information & Status

  	
  13

  
	
  5.2

  	
  Collateral Identification, Special Collateral

  	
  14

  
	
  5.3

  	
  Reserved

  	
  15

  
	
  5.4

  	
  Status of Security Interest

  	
  15

  
	
  5.5

  	
  Goods & Receivables

  	
  16

  
	
  5.6

  	
  Pledged Equity Interests, Investment Related
  Property

  	
  16

  
	
  5.7

  	
  Intellectual Property

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  COVENANTS AND AGREEMENTS

  	
  18

  
	
  6.1

  	
  Grantor Information & Status – Pledge
  Supplement

  	
  18

  
	
  6.2

  	
  Collateral Identification; Special Collateral

  	
  18

  
	
  6.3

  	
  Ownership of Collateral and Absence of Other Liens

  	
  18

  
	
  6.4

  	
  Status of Security Interest

  	
  19

  
	
  6.5

  	
  Goods & Receivables

  	
  19

  
	
  6.6

  	
  Pledged Equity Interests, Investment Related
  Property

  	
  20

  
	
  6.7

  	
  Intellectual Property

  	
  22

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  ACCESS; RIGHT OF INSPECTION AND FURTHER ASSURANCES;
  ADDITIONAL GRANTORS

  	
  23

  
	
  7.1

  	
  Intentionally Omitted

  	
  23

  
	
  7.2

  	
  Further Assurances

  	
  23

  
	
  7.3

  	
  Additional Grantors

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT

  	
  24

  
	
  8.1

  	
  Power of Attorney

  	
  24

  
	
  8.2

  	
  No Duty on the Part of Collateral Agent or
  Secured Parties

  	
  25

  
					

 

i

 

	
  SECTION 9.

  	
  REMEDIES

  	
  26

  
	
  9.1

  	
  Generally

  	
  26

  
	
  9.2

  	
  Application of Proceeds

  	
  27

  
	
  9.3

  	
  Sales on Credit

  	
  27

  
	
  9.4

  	
  Investment Related Property

  	
  28

  
	
  9.5

  	
  Grant of Intellectual Property License

  	
  28

  
	
  9.6

  	
  Intellectual Property

  	
  28

  
	
  9.7

  	
  Cash Proceeds; Deposit Accounts

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  COLLATERAL AGENT

  	
  30

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  CONTINUING SECURITY INTEREST; TRANSFER OF LOANS

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 12.

  	
  STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 13.

  	
  MISCELLANEOUS

  	
  32

  
	
   

  	
   

  
	
  SCHEDULE 5.1 — GENERAL INFORMATION

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 5.2 — COLLATERAL IDENTIFICATION

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 5.4 — FINANCING STATEMENTS

  	
   

  
	
   

  	
   

  
	
  SCHEDULE 5.5 — LOCATION OF EQUIPMENT AND INVENTORY

  	
   

  
	
   

  	
   

  
	
  EXHIBIT A — PLEDGE SUPPLEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT B — UNCERTIFICATED SECURITIES CONTROL
  AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT C — SECURITIES ACCOUNT CONTROL AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT D — DEPOSIT ACCOUNT CONTROL AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT E — TRADEMARK SECURITY AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT F — COPYRIGHT SECURITY AGREEMENT

  	
   

  
	
   

  	
   

  
	
  EXHIBIT G — PATENT SECURITY AGREEMENT

  	
   

  
					

 

ii

 

This PLEDGE AND SECURITY AGREEMENT (First Lien),
dated as of  February 22, 2008 (this
“Agreement”),
between Aldabra Holding Sub LLC, a Delaware limited liability company (“Holdings”), Aldabra Sub LLC, a Delaware limited liability
company (“Aldabra” and, prior to the BPH Merger
(as defined below), the “Borrower”, to
be merged (the “BPH Merger”) with and into Boise
Paper Holdings, L.L.C., a Delaware limited liability company (“BPH” and, after the BPH Merger, the “Borrower”)) and each of
the undersigned, whether as an original signatory hereto or as an Additional
Grantor (as herein defined) (other than the Collateral Agent, collectively, the
“Grantors” and each, a “Grantor”),
and Goldman Sachs Credit Partners L.P., as collateral agent for the Secured
Parties (as herein defined) (in such capacity as collateral agent, together
with its successors and permitted assigns, the “Collateral Agent”).

 

RECITALS:

 

WHEREAS, reference is
made to that certain Credit and Guaranty Agreement, dated as of the date hereof
(as it may be amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), by and among Borrower, Holdings, certain subsidiaries of Aldabra, as
Guarantors, the lenders party thereto from time to time (the “Lenders”), Goldman Sachs Credit Partners L.P., as Administrative Agent and
Collateral Agent, and certain other agents party thereto;

 

WHEREAS, subject to the
terms and conditions of the Credit Agreement, certain Grantors may enter into
one or more Hedge Agreements and/or Treasury Services Agreement, in each case
with one or more Lender Counterparties;

 

WHEREAS, in
consideration of the extensions of credit and other accommodations of Lenders
and Lender Counterparties as set forth in the Credit Agreement, the Hedge
Agreements and (if requested by the Borrower) the Treasury Services Agreements,
respectively, each Grantor has agreed to secure such Grantor’s Obligations
under the Credit Documents, the Hedge Agreements, and (if requested by the
Borrower) the Treasury Services Agreements as set forth herein; and

 

NOW,
THEREFORE, in consideration of the premises and the
agreements, provisions and covenants herein contained, each Grantor and the
Collateral Agent agree as follows:

 

SECTION 1.                            DEFINITIONS; GRANT OF
SECURITY.

 

1.1                               General Definitions. 
In this Agreement, the following terms shall have the following
meanings:

 

“Additional Grantors” shall have the meaning assigned
in Section 7.3.

 

“Agreement” shall have the meaning set
forth in the preamble.

 

“Aldabra” shall have the meaning set
forth in the preamble.

 

“Borrower” shall have the meaning set
forth in the preamble.

 

“BHK” shall have the meaning assigned in Section 2.2.

 

“BPH” shall have the meaning set forth in the
preamble.

 

 

“BPH Merger” shall have the meaning set
forth in the preamble.

 

“Cash Proceeds” shall have the meaning
assigned in Section 9.7.

 

“Collateral” shall have the meaning
assigned in Section 2.1.

 

“Collateral Account” shall mean any account
established by the Collateral Agent.

 

“Collateral Agent” shall have the meaning set
forth in the preamble.

 

“Collateral Records” shall mean books, records,
ledger cards, files, correspondence, customer lists, blueprints, technical
specifications, manuals, electronic records, computer printouts, tapes, disks
and similar items that at any time evidence or contain information relating to
any of the Collateral or are otherwise necessary or helpful in the collection
thereof or realization thereupon.

 

“Collateral Support” shall mean all property
(real or personal) assigned, hypothecated or otherwise securing any Collateral
and shall include any security agreement or other agreement granting a lien or
security interest in such real or personal property.

 

“Control” shall
mean:  (1) with respect to any
Deposit Accounts, control within the meaning of Section 9-104 of the UCC, (2) with
respect to any Securities Accounts, Security Entitlements, Commodity Contracts
or Commodity Accounts, control within the meaning of Section 9-106 of the
UCC, (3) with respect to any Uncertificated Securities, control within the
meaning of Section 8-106(c) of the UCC, (4) with respect to any
Certificated Security, control within the meaning of Section 8-106(a) or
(b) of the UCC, (5) with respect to any Electronic Chattel Paper,
control within the meaning of Section 9-105 of the UCC and (6) with
respect to Letter of Credit Rights, control within the meaning of Section 9-107
of the UCC.

 

“Copyright Licenses” shall mean any and all
agreements providing for the grant of any right in or to Copyrights (whether
such Grantor is licensee or licensor thereunder) including, without limitation,
each agreement referred to in Schedule 5.2(II) under the heading “Copyright
Licenses” (as such schedule may be amended or supplemented from time to time),
and all rights under any such agreement.

 

“Copyrights” shall mean all United
States and foreign copyrights, including but not limited to copyrights in
software and all rights in and to databases, and all Mask Works (as defined
under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or
unregistered, moral rights, reversionary interests, termination rights, and,
with respect to any and all of the foregoing: (i) all registrations and
applications therefor including, without limitation, the registrations and
applications referred to on Schedule 5.2(II) under the heading “Copyrights”
(as such schedule may be amended or supplemented from time to time), (ii) all
extensions and renewals thereof, (iii) all rights corresponding thereto
throughout the world, (iv) all rights to sue for past, present and future
infringements thereof, and (v) all Proceeds of the foregoing, now and
hereinafter due and/or payable thereunder, including, without limitation,
royalties, income, payments, claims, damages and proceeds of suit.

 

“Credit Agreement” shall have the meaning set
forth in the recitals.

 

2

 

“Excluded
Asset” shall mean any asset of any Grantor excluded from the security
interest hereunder by virtue of Section 2.2 hereof but only to the extent,
and for so long as, so excluded thereunder.

 

“Grantors” shall have the meaning set
forth in the preamble.

 

“Holdings” shall have the meaning set
forth in the preamble.

 

“Insurance” shall mean (i) all
insurance policies covering any or all of the Collateral (regardless of whether
the Collateral Agent is the loss payee thereof) and (ii) any key man life
insurance policies.

 

“Intellectual Property” shall mean, collectively,
the Copyrights, the Patents, the Trademarks, the Trade Secrets, the Internet
domain names, and the rights granted to any of the Grantors under the
Intellectual Property Licenses.

 

 “Intellectual Property Licenses” shall mean,
collectively, the Copyright Licenses, the Patent Licenses, the Trade Secret
Licenses and the Trademark Licenses.

 

“Intercreditor Agreement” shall mean the
Intercreditor Agreement, dated as of February 22, 2008, by and among
Holdings, Aldabra, BPH, Goldman Sachs Credit Partners L.P., as first lien
collateral agent, and Lehman Commercial Paper Inc., as second lien collateral
agent, as it may be amended, restated, supplemented or otherwise modified from
time to time.

 

“Investment Accounts” shall mean the Collateral
Account, Securities Accounts, Commodities
Accounts and Deposit Accounts.

 

“Investment Related Property” shall mean:  (i) all “investment property” (as such
term is defined in Article 9 of the UCC) and (ii) all of the
following (regardless of whether classified as investment property under the
UCC): all Pledged Equity Interests, Pledged Debt and the Investment Accounts.

 

“Lenders” shall have the meaning set
forth in the recitals.

 

“Majority
Holder” shall have the meaning set forth in Section 10.

 

“Material Intellectual Property” shall mean any
Intellectual Property of a Grantor (including, without limitation, the rights
granted to a Grantor under the Material Trademark License) which is included in
the Collateral and is material to the business of such Grantor.

 

“Material
Trademark License” shall mean that certain Intellectual Property
License Agreement by and between Boise Cascade, LLC as licensor and Boise Paper
Holdings, L.L.C., as licensee, dated September 7, 2007 (as it may be from
time to time amended, restated, modified or supplemented).

 

“Patent Licenses” shall mean all agreements
providing for the grant of any right in or to Patents (whether such Grantor is
licensee or licensor thereunder) including, without limitation, each agreement
referred to in Schedule 5.2(II) under the heading “Patent Licenses” (as
such schedule may be amended or supplemented from time to time), and all rights
under any such agreement.

 

3

 

“Patents” shall mean all
United States and foreign patents and certificates of invention, or similar
industrial property rights, and applications for any of the foregoing,
including, but not limited to: (i) each patent and patent application
referred to on Schedule 5.2(II) hereto under the heading “Patents” (as
such schedule may be amended or supplemented from time to time), (ii) all
reissues, divisions, continuations, continuations-in-part, extensions,
renewals, and reexaminations thereof, (iii) all rights corresponding
thereto throughout the world, (iv) all inventions and improvements
described therein, (v) all rights to sue for past, present and future
infringements thereof, (vi) all claims, damages, and proceeds of suit
arising therefrom, and (vii) all Proceeds of the foregoing, now and
hereinafter due and/or payable thereunder, including, without limitation,
royalties, income, payments, claims, damages, and proceeds of suit.

 

“Pledge Supplement” shall mean any supplement
to this agreement in substantially the form of Exhibit A.

 

“Pledged Debt” shall mean all Indebtedness
for borrowed money owed to such Grantor, including, without limitation, all
Indebtedness described on Schedule 5.2(I) under the heading “Pledged Debt”
(as such schedule may be amended or supplemented from time to time), issued by
the obligors named therein, the instruments evidencing such Indebtedness, and
all interest, cash, instruments and other property or proceeds from time to
time received, receivable or otherwise distributed in respect of or in exchange
for any such Indebtedness.

 

“Pledged Equity Interests” shall mean all Pledged
Stock, Pledged LLC Interests, Pledged Partnership Interests and Pledged Trust
Interests.

 

“Pledged LLC Interests” shall mean all interests
directly owned by a Grantor in any limited liability company including, without
limitation, all limited liability company interests listed on Schedule 5.2(I) under
the heading “Pledged LLC Interests” (as such schedule may be amended or
supplemented from time to time) and the certificates, if any, representing such
limited liability company interests and any direct interest of such Grantor on
the books and records of such limited liability company or on the books and
records of any securities intermediary pertaining to such interest and all
dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such limited liability company interests.

 

“Pledged Partnership Interests” shall mean all
interests directly owned by a Grantor in any general partnership, limited
partnership, limited liability partnership or other partnership including,
without limitation, all partnership interests listed on Schedule 5.2(I) under
the heading “Pledged Partnership Interests” (as such schedule may be amended or
supplemented from time to time) and the certificates, if any, representing such
partnership interests and any  direct
interest of such Grantor on the books and records of such partnership or on the
books and records of any securities intermediary pertaining to such interest
and all dividends, distributions, cash, warrants, rights, options, instruments,
securities and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such partnership interests.

 

“Pledged Stock” shall mean all shares of
capital stock directly owned by such Grantor, including, without limitation,
all shares of capital stock described on Schedule 5.2(I) under the heading
“Pledged Stock” (as such schedule may be amended or supplemented from time to
time), and the certificates, if any, representing such shares and any direct
interest of such Grantor in the entries on the books of the issuer of such
shares or on the books of any securities 

 

4

 

intermediary
pertaining to such shares, and all dividends, distributions, cash, warrants,
rights, options, instruments, securities and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of such shares.

 

“Pledged Trust Interests” shall mean all interests
directly owned by a Grantor in a Delaware business trust or other direct trust
including, without limitation, all direct trust interests listed on Schedule
5.2(I) under the heading “Pledged Trust Interests” (as such schedule may
be amended or supplemented from time to time) and the certificates, if any,
representing such trust interests and any direct interest of such Grantor on
the books and records of such trust or on the books and records of any
securities intermediary pertaining to such interest and all dividends,
distributions, cash, warrants, rights, options, instruments, securities and
other property or proceeds from time to time received receivable or otherwise
distributed in respect of or in exchange for any or all of such trust
interests.

 

“Receivables” shall mean all rights to
payment, whether or not earned by performance, for goods or other property
sold, leased, licensed, assigned or otherwise disposed of, or services rendered
or to be rendered, including, without limitation all such rights constituting
or evidenced by any Account, Chattel Paper, Instrument, General Intangible or
Investment Related Property, together with all of Grantor’s rights, if any, in
any goods or other property giving rise to such right to payment and all
Collateral Support and Supporting Obligations related thereto and all
Receivables Records.

 

“Receivables Records” shall mean (i) all
original copies of all documents, instruments or other writings or electronic
records or other Records evidencing the Receivables, (ii) all books,
correspondence, credit or other files, Records, ledger sheets or cards,
invoices, and other papers relating to Receivables, including, without
limitation, all tapes, cards, computer tapes, computer discs, computer runs,
record keeping systems and other papers and documents relating to the Receivables,
whether in the possession or under the control of Grantor or any computer
bureau or agent from time to time acting for Grantor or otherwise, (iii) all
evidences of the filing of financing statements and the registration of other
instruments in connection therewith, and amendments, supplements or other
modifications thereto, notices to other creditors, secured parties or agents
thereof, and certificates, acknowledgments, or other writings, including,
without limitation, lien search reports, from filing or other registration
officers, (iv) all credit information, reports and memoranda relating
thereto and (v) all other written, electronic or other tangible forms of
information related in any way to the foregoing or any Receivable.

 

“Secured Obligations” shall have the meaning
assigned in Section 3.1.

 

“Secured Parties” shall mean the Agents, the
Lenders, the Lender Counterparties party to any Hedge Agreements and (if
requested by the Borrower) the Lender Counterparties party to any Treasury
Services Agreement and shall include, without limitation, all former Agents,
Lenders, Lender Counterparties party to any Hedge Agreements and Lender
Counterparties party to any Treasury Services Agreement to the extent that any
Obligations owing to such Persons were incurred while such Persons were Agents,
Lenders, Lender Counterparties party to any Hedge Agreements or (if requested
by the Borrower) Lender Counterparties party to any Treasury Services Agreement
and such Obligations (other than contingent obligations and Letters of Credit
subject to a Letter of Credit Backstop) have not been paid or satisfied in
full.

 

“Trademark Licenses” shall mean any and all
agreements providing for the grant of any right in or to Trademarks (whether
such Grantor is licensee or licensor thereunder) 

 

5

 

including,
without limitation, each agreement referred to on Schedule 5.2(II) under
the heading “Trademark Licenses” (as such schedule may be amended or
supplemented from time to time), and all rights under such agreement.

 

“Trademarks” shall mean all registered
and unregistered, common law, state, United States, multinational, and foreign
trademarks, trade names, corporate names, company names, business names,
fictitious business names, service marks, certification marks, collective
marks, logos, other source or business identifiers, designs and general
intangibles of a like nature, all registrations and applications for any of the
foregoing including, but not limited to: (i) the registrations and
applications referred to in Schedule 5.2(II) under the heading “Trademarks”
(as such schedule may be amended or supplemented from time to time), (ii) all
extensions or renewals of any of the foregoing, (iii) all of the goodwill
of the business connected with the use of and symbolized by the foregoing, (iv) the
right to sue for past, present and future infringement or dilution of any of
the foregoing or for any injury to goodwill, and (v) all Proceeds of the
foregoing, now and hereinafter due and/or payable thereunder, including,
without limitation, royalties, income, payments, claims, damages, and proceeds
of suit.

 

“Trade Secret Licenses” shall mean any and all
written agreements providing for the grant of any right in or to Trade Secrets
(whether such Grantor is licensee or licensor thereunder) and all rights under
any such agreement, and rights under such agreement.

 

“Trade Secrets” shall mean all trade
secrets and all other confidential or proprietary information and know-how
whether or not such Trade Secret has been reduced to a writing or other
tangible form, including all documents and things embodying, incorporating, or
referring in any way to such Trade Secret, including but not limited to: (i) the
right to sue for past, present and future misappropriation or other violation
of any Trade Secret, and (ii) all Proceeds of the foregoing, including,
without limitation, royalties, income, payments, claims, damages, and proceeds
of suit.

 

“UCC” shall mean the Uniform Commercial Code as in
effect from time to time in the State of New York; provided, however, that in
the event that, by reason of mandatory provisions of law, any or all of the
perfection or priority of, or remedies with respect to, any Collateral is
governed by the Uniform Commercial Code as enacted and in effect in a
jurisdiction other than the State of New York, the term “UCC” shall mean the
Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions hereof relating to such perfection, priority
or remedies.

 

“U.S. Copyrights” shall mean copyrights that
are registered with, or for which an application for registration has been
filed with, the United States Copyright Office.

 

“U.S. Patents” shall mean patents that
have been issued by, or for which an application for a patent has been filed
with, the United States Patent and Trademark Office.

 

“U.S. Registered Intellectual Property” shall mean the
U.S. Copyrights, the U.S. Patents, the Internet domain names, and the U.S.
Trademarks.

 

“U.S. Trademarks” shall mean trademarks that
have been registered by, or for which an application for registration has been
filed with, the United States Patent and Trademark Office.

 

“United States” or “U.S.” shall mean the United
States of America.

 

6

 

1.2                               Definitions; Interpretation.

 

(a)                                  In this Agreement, the
following capitalized terms shall have the meaning given to them in the UCC
(and, if defined in more than one Article of the UCC, shall have the
meaning given in Article 9 thereof): Account, Account Debtor, As-Extracted
Collateral, Bank, Certificated Security, Chattel Paper, Consignee, Consignment,
Consignor, Commercial Tort Claims, Commodity Account, Commodity Contract,
Deposit Account, Document, Entitlement Order, Equipment, Electronic Chattel
Paper, Farm Products, Fixtures, General Intangibles, Goods,
Health-Care-Insurance Receivable, Instrument, Inventory, Letter of Credit
Right, Manufactured Home, Money, Payment Intangible, Proceeds,  Record, Securities Account, Securities
Intermediary, Security Certificate, Security Entitlement, Supporting
Obligations, Tangible Chattel Paper and Uncertificated Security.

 

(b)                                 All other capitalized
terms used herein (including the preamble and recitals hereto) and not otherwise
defined herein shall have the meanings ascribed thereto in the Credit
Agreement.  The incorporation by
reference of terms defined in the Credit Agreement shall survive any
termination of the Credit Agreement until this Agreement is terminated as provided
in Section 11 hereof.   Any of the
terms defined herein may, unless the context otherwise requires, be used in the
singular or the plural, depending on the reference.  References herein to any Section, Appendix,
Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an
Exhibit, as the case may be, hereof unless otherwise specifically
provided.  Any references in this
Agreement to “Articles” and/or “Sections” which make reference to any
particular piece of legislation or statute, including, without limitation, the
Bankruptcy Code and/or the UCC shall for greater certainty mean the equivalent
section in the applicable piece of legislation to the extent that the context
implies reference to such other similar or equivalent legislation as in effect
from time to time in any other applicable jurisdiction, as applicable.  Section headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose or be given any substantive
effect.  The use herein of the word “include”
or “including”, when following any general statement, term or matter, shall not
be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or
matters, whether or not non-limiting language (such as “without limitation” or “but
not limited to” or words of similar import) is used with reference thereto, but
rather shall be deemed to refer to all other items or matters that fall within
the broadest possible scope of such general statement, term or matter.  The terms lease and license shall include
sub-lease and sub-license, as applicable. 
If any conflict or inconsistency exists between this Agreement and the
Credit Agreement, the Credit Agreement shall govern.  All references herein to provisions of the
UCC shall include all successor provisions under any subsequent version or
amendment to any Article of the UCC.

 

1.3                               Intercreditor Agreement. 
All rights and obligations of the Collateral Agent under this Agreement
shall be subject to the Intercreditor Agreement.  Notwithstanding anything to the contrary
contained herein, the Liens and security interests granted to the Collateral Agent
pursuant to this Agreement and the exercise of any right or remedy by the
Collateral Agent hereunder are subject in all respects to the provisions of the
Intercreditor Agreement.  In the event of
any conflict between the terms of the Intercreditor Agreement and this
Agreement, such conflict shall be resolved in accordance with Section 8.1 of
the Intercreditor Agreement.  Any
reference in this Agreement to “first priority lien” or words of similar effect
in describing the security interests created hereunder shall be understood to
refer to such priority as set forth in the Intercreditor Agreement.  All representations, warranties and covenants
in this Agreement shall be subject to the provisions and qualifications set
forth in this Section 1.3.

 

7

 

SECTION 2.                            GRANT OF SECURITY.

 

2.1                               Grant of Security. 
Each Grantor hereby grants to the Collateral Agent for its benefit and
for the benefit of the Secured Parties a security interest in and continuing
lien on all of such Grantor’s right, title and interest in, to and under all
personal property of such Grantor including, but not limited to the following,
in each case whether now owned or existing or hereafter acquired or arising and
wherever located (all of which being hereinafter collectively referred to as
the “Collateral”):

 

(a)                                  Accounts;

 

(b)                                 Chattel Paper
(including Electronic Chattel Paper);

 

(c)                                  Documents;

 

(d)                                 General Intangibles;

 

(e)                                  Goods (including,
without limitation, Inventory and Equipment);

 

(f)                                    Instruments;

 

(g)                                 Insurance;

 

(h)                                 Intellectual Property;

 

(i)                                     Investment Related
Property (including, without limitation, Deposit Accounts) and certificates of
deposit;

 

(j)                                     letters of credit and
Letter of Credit Rights;

 

(k)                                  Money;

 

(l)                                     Receivables and
Receivable Records;

 

(m)                               Commercial Tort Claims
now or hereafter described on Schedule 5.2;

 

(n)                                 to the extent not
otherwise included above, all other personal property of any kind and all
Collateral Records, Collateral Support and Supporting Obligations relating to
any of the foregoing; and

 

(o)                                 to the extent not
otherwise included above, all Proceeds, products, accessions, rents and profits
of or in respect of any of the foregoing.

 

2.2                               Certain Limited Exclusions. 
Notwithstanding anything herein to the contrary, in no event shall the
Collateral include or the security interest granted under Section 2.1 hereof
attach to (a) any lease, license, contract, property rights or agreement to
which any Grantor is a party, any of its rights or interests thereunder or any
property to which Grantor has any right, title or interest which is subject to
any such lease, license, contract, property right or agreement if and for so
long as the grant of such security interest (i) shall constitute or result in
the abandonment, invalidation or unenforceability of any right, title or
interest of any Grantor therein, (ii) would

 

8

 

give any other party to such lease, license, contract, property right
or agreement the right to terminate its obligations thereunder, (iii) would
cause the forfeiture or require the transfer of any property subject to such
lease, license, contract, property right or agreement or (iv) is prohibited by
or in violation of (1) any law, rule or regulation applicable to such Grantor
or governing any such lease, license, contract, property right or agreement, or
(2) a term, provision or condition of any such lease, license, contract,
property right or agreement (unless such law, rule, regulation, term, provision
or condition would be rendered ineffective with respect to the creation of the
security interest hereunder pursuant to Sections 9-406, 9-407, 9-408 or 9-409
of the UCC (or any successor provision or provisions) of any relevant
jurisdiction or any other applicable law (including the Bankruptcy Code) or
principles of equity); provided however that the Collateral shall include (and
such security interest shall attach) immediately at such time as (w) the
condition causing such abandonment, invalidity or unenforceability, (x) the
right to terminate, (y) the condition causing such forfeiture or transfer or
(z) the contractual or legal prohibition, in each case, shall no longer be
applicable and to the extent severable, shall attach immediately to any portion
of such lease, license, contract, property right or agreement not subject to
the prohibitions specified in (i), (ii), (iii) or (iv) above; provided further
that the exclusions referred to in clause (a) of this Section 2.2 shall not
include any Proceeds of any such lease, license, contract, property right or
agreement; (b) any of the outstanding Equity Interests of a first-tier Foreign
Subsidiary in excess of 65% of the voting power of all classes of Equity
Interests in such Foreign Subsidiary entitled to vote; provided that
immediately upon the amendment of the Internal Revenue Code to allow the pledge
of a greater percentage of the voting power of Equity Interests in such
first-tier Foreign Subsidiary without adverse tax consequences, the Collateral
shall include, and the security interest granted by each Grantor shall attach
to, such greater percentage of Equity Interests of such Foreign Subsidiary; (c)
all Equity Interests of Foreign Subsidiaries which are not first-tier Foreign
Subsidiaries; (d) Equipment owned by any Grantor on the date hereof or hereafter
acquired that is subject to a Lien securing a purchase money obligation or
capitalized lease obligation permitted to be incurred pursuant to the Credit
Agreement, for so long as the contract or other agreement in which such Lien is
granted (or the documentation providing for such purchase money obligation or
capitalized lease obligation) validly prohibits the creation of any other Lien
on such Equipment; (e) any interest in joint ventures and non-wholly owned
Subsidiaries which cannot be pledged without the consent of one or more third
parties; (f) any intent-to-use trademark application prior to the filing and
acceptance by the United States Patent and Trademark Office of a “Statement of
Use” or “Amendment to Allege Use” with respect thereto, to the extent that, and
solely during the period, in which, the grant of a security interest therein
would impair the validity or enforceability of such intent-to-use trademark
application under applicable law; (g) any motor vehicles, trailers, tractors
and other like property title thereto which is governed or evidenced by a
certificate of title or ownership or similar document; (h) Equity Interests in
Boise Hong Kong Limited (“BHK”) so long
as BHK does not account for more than $2,500,000 of Consolidated Adjusted EBITDA
during any Fiscal Year of Borrower; (i) any Margin Stock held by any Credit
Party; and (j) any assets with respect to which the Collateral Agent and the
Borrower shall reasonably determine that the cost of creating and/or perfecting
a security interest therein is excessive in relation to the benefit to the
Secured Parties.  Notwithstanding
anything contained herein to the contrary, (x) except as otherwise provided for
in this Agreement, the Grantors shall not be required to take any action
intended to cause any Excluded Asset to constitute Collateral, (y) each defined
term used in describing types or categories of Collateral, including those used
in Sections 2.1(a) through (o) above, shall be deemed to exclude all Excluded
Assets and (z) none of the representations, warranties and covenants shall be
deemed to apply to any property constituting Excluded Assets.

 

9

 

SECTION 3.                            SECURITY FOR
OBLIGATIONS; GRANTORS REMAIN LIABLE.

 

3.1          Security for Obligations.  This
Agreement secures, and the Collateral is collateral security for, the prompt
and complete payment or performance in full when due, whether at stated
maturity, by required prepayment, declaration, acceleration, demand or
otherwise (including the payment of amounts that would become due but for the
operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11
U.S.C. §362(a) (and any successor provision thereof)), of all Obligations with
respect to every Grantor (the “Secured Obligations”).

 

3.2          Continuing Liability Under Collateral. 
Notwithstanding anything herein to the contrary, (i) each Grantor shall
remain liable for all obligations under the Collateral and nothing contained
herein is intended or shall be a delegation of duties to the Collateral Agent
or any Secured Party, (ii) each Grantor shall remain liable under each of the
agreements included in the Collateral, including, without limitation, any
agreements relating to Pledged Partnership Interests, Pledged Trust Interests
or Pledged LLC Interests, to perform all of the obligations undertaken by it
thereunder all in accordance with and pursuant to the terms and provisions
thereof and neither the Collateral Agent nor any Secured Party shall have any
obligation or liability under any of such agreements by reason of or arising
out of this Agreement or any other document related thereto nor shall the
Collateral Agent nor any Secured Party have any obligation to make any inquiry
as to the nature or sufficiency of any payment received by it or have any
obligation to take any action to collect or enforce any rights under any
agreement included in the Collateral, including, without limitation, any
agreements relating to Pledged Partnership Interests, Pledged Trust Interests
or Pledged LLC Interests, and (iii) the exercise by the Collateral Agent of any
of its rights hereunder shall not release any Grantor from any of its duties or
obligations under the contracts and agreements included in the Collateral.

 

SECTION 4.                            CERTAIN PERFECTION
REQUIREMENTS

 

4.1                               Delivery Requirements.

 

(a)                                  With respect to any
Certificated Securities included in the Collateral, each Grantor shall deliver
to the Collateral Agent the Security Certificates evidencing such Certificated
Securities duly indorsed by an effective indorsement (within the meaning of Section 8-107
of the UCC), or accompanied by share transfer powers or other instruments of
transfer duly endorsed by such an effective endorsement, in each case, to the
Collateral Agent or in blank.

 

(b)                                 With respect to any
Instruments (including any certificates of deposit) or Tangible Chattel Paper
included in the Collateral, each Grantor shall deliver to the Collateral Agent
all such Instruments or Tangible Chattel Paper to the Collateral Agent duly
indorsed in blank; provided, however, that such delivery requirement shall not
apply to any Instruments (including any certificates of deposit) or Tangible
Chattel Paper having a face amount of less than $500,000 individually or
$1,000,000 in the aggregate.

 

4.2                               Control Requirements.

 

(a)                                  With respect to any
Deposit Accounts (including any certificates of deposit), Securities Accounts,
Security Entitlements, Commodity Contracts and Commodity Accounts included in
the Collateral, each Grantor shall cause the Collateral Agent to have Control
thereof (i) within 60 days after the Closing Date (or such longer period
as the Collateral Agent may approve) for any Deposit Accounts (including any
certificates of deposit), Securities Accounts, Security Entitlements, Commodity
Contracts and Commodity Accounts set forth on Schedule 5.2(I) as of the
Closing Date or (ii) within 60 days (or such longer period as the

 

10

 

Collateral Agent may
approve) after the opening of or entering into any Deposit Account (including
any certificate of deposit), Securities Account, Security Entitlement,
Commodity Contract and Commodity Account; provided, however, that such
Control requirement shall not apply to any Deposit Accounts (including any
certificates of deposit), Securities Accounts, Security Entitlements, Commodity
Contracts and Commodity Accounts (A) exclusively used for all or any of
payroll, benefits, taxes, escrow, customs, insurance impress accounts or other
fiduciary purposes, (B) any disbursement account that is a zero balance
account, (C) maintained with a foreign bank or foreign securities
intermediary with a value of less than, or having funds or other assets
credited thereto with a value of less than, $10,000,000 in the aggregate for
all such Deposit Accounts (including certificates of deposit), Securities
Accounts, Security Entitlements, Commodity Contracts and Commodity Accounts or (D) with
a value of less than, or having funds or other assets credited thereto with a
value of less than (i) $5,000,000 in the aggregate at the close of
business on any day and (ii) $10,000,000 in the aggregate at any time
outstanding, in each case for all such Deposit Accounts (including any
certificates of deposit), Securities Accounts, Security Entitlements, Commodity
Contracts and Commodity Accounts.  With
respect to any such Securities Accounts or such Securities Entitlements, such
Control shall be accomplished by  the
Grantor causing the Securities Intermediary maintaining such Securities Account
or such Security Entitlement to enter into an agreement substantially in the
form of Exhibit C hereto (or such other agreement in form and substance
reasonably satisfactory to the Collateral Agent) pursuant to which the
Securities Intermediary shall agree to comply with the Collateral Agent’s “entitlement
orders” without further consent by such Grantor; provided, however, the
Collateral Agent agrees that it shall not issue any entitlement orders unless
an Event of Default has occurred and is continuing.  With respect to any Deposit Account
(including any certificate of deposit), each Grantor shall cause the depositary
institution maintaining such account to enter into an agreement substantially
in the form of Exhibit D hereto (or such other agreement in form and
substance reasonably satisfactory to the Collateral Agent), pursuant to which
the Bank shall agree to comply with the Collateral Agent’s instructions with
respect to disposition of funds in such Deposit Account without further consent
by such Grantor; provided, however, the Collateral Agent agrees that it shall
not issue any entitlement orders unless an Event of Default has occurred and is
continuing.  With respect to any
Commodity Accounts or Commodity Contracts, each Grantor shall cause Control in
favor of the Collateral Agent in a manner reasonably acceptable to the
Collateral Agent.

 

(b)                                 If any Grantor at any
time holds or acquires an interest in any Uncertificated Security included in
the Collateral (other than any Uncertificated Securities credited to a Securities
Account), each Grantor shall cause the issuer of such Uncertificated Security
to either (i) register the Collateral Agent as the registered owner
thereof on the books and records of the issuer or (ii) execute an
agreement substantially in the form of Exhibit B hereto (or such other
agreement in form and substance reasonably satisfactory to the Collateral
Agent), pursuant to which such issuer agrees to comply with the Collateral
Agent’s instructions with respect to such Uncertificated Security without further
consent by such Grantor; provided, however, the Collateral Agent agrees that it
shall not issue any entitlement orders unless an Event of Default has occurred
and is continuing.

 

(c)                                  With respect to any
Letter of Credit Rights with respect to letters of credit with an undrawn face
amount of more than $500,000 individually or $1,000,000 in the aggregate
included in the Collateral (other than any Letter of Credit Rights constituting
a Supporting Obligation for a Receivable in which the Collateral Agent has a
valid and perfected security interest), Grantor shall cause the Collateral
Agent to have Control thereof by obtaining the written consent of each issuer
of each related letter of credit to the assignment of the proceeds of such
letter of credit to the Collateral Agent.

 

11

 

(d)                                 With respect any
Electronic Chattel Paper included in the Collateral, Grantor shall cause the
Collateral Agent to have Control thereof; provided, however, that such Control
requirement shall not apply to any Electronic Chattel Paper or transferable
record having a face amount of less than $500,000 individually or $1,000,000 in
the aggregate.

 

4.3          Intellectual Property Recording Requirements.

 

(a)           With
respect to any Collateral consisting of U.S. Patents constituting Material
Intellectual Property, Grantor shall execute and deliver to the Collateral
Agent a Patent Security Agreement in substantially the form of Exhibit G hereto
(or a supplement thereto) covering all such U.S. Patents in appropriate form
for recordation with the U.S. Patent and Trademark Office with respect to the
security interest of the Collateral Agent in such U.S. Patents.

 

(b)           With
respect to any Collateral consisting of U.S. Trademarks (which includes,
without limitation, U.S. Trademarks for which applications are pending that are
not excluded under Section 2.2) constituting Material Intellectual Property,
Grantor shall execute and deliver to the Collateral Agent a Trademark Security
Agreement in substantially the form of Exhibit E hereto (or a supplement
thereto) covering all such U.S. Trademarks in appropriate form for recordation
with the U.S. Patent and Trademark Office with respect to the security interest
of the Collateral Agent in such U.S. Trademarks.

 

(c)           With
respect to any Collateral consisting of (i) U.S. Copyrights constituting
Material Intellectual Property and (ii) Copyright Licenses of U.S. Copyrights
constituting Material Intellectual Property, and for which any Grantor is the
exclusive licensee of such U.S. Copyrights, Grantor shall execute and deliver
to the Collateral Agent a Copyright Security Agreement in substantially the
form of Exhibit F hereto (or a supplement thereto) covering all such Copyrights
and Copyright Licenses in appropriate form for recordation with the U.S.
Copyright Office with respect to the security interest of the Collateral Agent
in such U.S. Copyrights.

 

(d)           With
respect to Collateral consisting of Patents, Trademarks or Copyrights
constituting Material Intellectual Property registered in any foreign country,
if an Event of Default shall have occurred and be continuing, Grantor shall
promptly execute and deliver to the Collateral Agent any documents reasonably
requested by the Collateral Agent and take all actions reasonably requested by
the Collateral Agent and necessary to permit the Collateral Agent to record its
security interest against such Patents, Trademarks, and Copyrights in the
applicable filing office or registry in such foreign country and to create,
perfect, preserve and enforce a valid and first priority security interest,
subject to any Permitted Liens, in favor of the Collateral Agent in all such
foreign-registered Intellectual Property.

 

(e)           With
respect to Collateral consisting of  (i)
Patent Licenses of U.S. Patents that constitute Material Intellectual Property,
and (ii) Trademark Licenses of U.S. Trademarks that constitute Material
Intellectual Property, for which any Grantor is the licensee of such U.S.
Patents or U.S. Trademarks, Grantor shall promptly execute and deliver to the
Collateral Agent any documents reasonably requested by the Collateral Agent and
take all actions reasonably requested by the Collateral Agent as may be
necessary to create, perfect, preserve and enforce a valid and first priority
security interest, subject to any Permitted Liens, in favor of the Collateral
Agent but, in any event excluding actions required to be taken by, or with
respect to property owned by, the licensor under any such Patent License or
Trademark License.

 

12

 

4.4                               Other Actions.

 

(a)                                  If any issuer of any
Pledged Equity Interest is organized under a jurisdiction outside of the United
States, each Grantor shall take such additional actions, including, without
limitation, causing the issuer to register the pledge on its books and records
or making such filings or recordings, in each case as may be necessary or, in
the Collateral Agent’s reasonable judgment, advisable under the laws of such
issuer’s jurisdiction to insure the validity, perfection and priority of the
security interest of the Collateral Agent.

 

(b)                                 Each Grantor consents
to the grant by each other Grantor of a Lien in all Investment Related Property
to the Collateral Agent and without limiting the generality of the foregoing
consents to the transfer of any Pledged Partnership Interest and any Pledged
LLC Interest to the Collateral Agent or its designee if an Event of Default has
occurred and is continuing and to the substitution of the Collateral Agent or
its designee as a partner in any partnership or as a member in any limited
liability company with all the rights and powers related thereto if an Event of
Default has occurred and is continuing.

 

4.5                               Timing and Notice. 
With respect to any Collateral in existence on the Closing Date, each
Grantor shall comply with the requirements of Section 4 on the date hereof
(unless otherwise specified in this Agreement) and with respect to any
Collateral hereafter owned or acquired Grantor shall comply with such
requirements within the time periods set forth in Section 4 or, if no such
time period is specified, at the time of delivery of quarterly financial
statements with respect to the Fiscal Quarter during which such Collateral is
created or acquired pursuant to Section 5.1(b) of the Credit
Agreement.

 

SECTION 5.                            REPRESENTATIONS AND
WARRANTIES.

 

Each Grantor hereby represents and warrants that:

 

5.1                               Grantor Information &
Status.

 

(a)                                  on the Closing Date
and on each Credit Date, Schedule
5.1(A) & (B) (as such schedule may be amended or supplemented
from time to time) sets forth under the appropriate headings: (1) the full
legal name of such Grantor, (2) all trade names or other names under which
such Grantor currently conducts business, (3) the type of organization of
such Grantor, (4) the jurisdiction of organization of such Grantor, (5) its
organizational identification number, if any, and (6) the jurisdiction
where the chief executive office or its sole place of business is, and for the
one-year period preceding the date hereof has been, located;

 

(b)                                 on the Closing Date
and on each Credit Date, except as
provided on Schedule 5.1(C) (as such schedule may be amended or
supplemented from time to time), it has not changed its name, jurisdiction of
organization, chief executive office or sole place of business or its corporate
structure in any way (e.g., by merger, consolidation, change in corporate form
or otherwise) and has not done business under any other name, in each case,
within the last year;

 

(c)                                  at the time of delivery
of quarterly financial statements pursuant to Section 5.1(b) of the
Credit Agreement (and in connection with a Permitted Acquisition where the
acquisition consideration is in excess of $5,000,000 for such Permitted
Acquisition), other than in connection with Permitted Liens, it has not within
the last year become bound (whether as

 

13

 

a result of merger or
otherwise) as debtor under a security agreement entered into by another Person
(other than another Grantor), which has not heretofore been terminated with
respect to any such Grantor other than the agreements identified on Schedule
5.1(D) (as such schedule may be amended or supplemented from time to
time); and

 

(d)                                 on the Closing Date
and on each Credit Date, such
Grantor has been duly organized and is validly existing as an entity of the
type as set forth opposite such Grantor’s name on Schedule 5.1(A) (as such
schedule may be amended or supplemented from time to time) solely under the
laws of the jurisdiction as set forth opposite such Grantor’s name on Schedule
5.1(A) (as such schedule may be amended or supplemented from time to time)
and remains duly existing as such.  Such
Grantor has not filed any certificates of dissolution or liquidation, any
certificates of domestication, transfer or continuance in any other
jurisdiction.

 

5.2                               Collateral Identification,
Special Collateral.

 

(a)                                  at the time of
delivery of quarterly financial statements pursuant to Section 5.1(b) of
the Credit Agreement (and in connection with a Permitted Acquisition where the
acquisition consideration is in excess of $5,000,000 for such Permitted
Acquisition), Schedule 5.2 (as such schedule may be amended or supplemented
from time to time) sets forth under the appropriate headings all of such
Grantor’s: (1) Pledged Equity Interests, (2) Pledged Debt, (3) Deposit
Accounts, Securities Accounts, Security Entitlements, Commodity Contracts and
Commodity Accounts subject to Section 4.2(a) above, (4) all
United States and foreign registrations of and applications for patents,
trademarks, Internet domain names, and copyrights owned by each Grantor, (5) all
Patent Licenses, Trademark Licenses (including, without limitation, the
Material Trademark License), Trade Secret Licenses and Copyright Licenses that,
in each case, constitute Material Intellectual Property, (6) Commercial
Tort Claims other than any Commercial Tort Claims having a value of less than
$500,000 individually or $1,000,000 in the aggregate with each other Commercial
Tort Claim not listed on Schedule 5.2, (7) Letter of Credit Rights for
letters of credit having a value in excess of $500,000 individually or
$1,000,000 in the aggregate, and (8) the name and address of any
warehouseman, bailee or other third party in possession of any Inventory,
Equipment and other tangible personal property other than any Inventory,
Equipment or other tangible person property having a value less than $5,000,000
in the aggregate at each location.  Each
Grantor shall supplement such schedules as necessary to ensure that such
schedules are accurate in all material respects at the time of delivery of
quarterly financial statements with respect to the Fiscal Quarter most recently
ended pursuant to Section 5.1(b) of the Credit Agreement;

 

(b)                                 on the Closing Date
and on each Credit Date, no
material portion of the Collateral constitutes, or is the Proceeds of, (1) Farm
Products, (2) As-Extracted Collateral, (3) Manufactured Homes, (4) Health-Care-Insurance
Receivables; (5) timber to be cut (other than timber located on real
property owned or leased by any Grantor as described on Schedule 5.2) or (6) aircraft
(other than fractional interests therein), aircraft engines, satellites, ships
or railroad rolling stock; and

 

(c)                                  on the Closing Date
and on each Credit Date, all
written information supplied by any Grantor with respect to any of the
Collateral (in each case taken as a whole with respect to any particular
Collateral) is accurate and complete in all material respects.

 

14

 

5.3                               Reserved.

 

5.4                               Status of Security Interest.

 

(a)                                  on the Closing Date
and on each Credit Date, upon the
timely and proper filing of financing statements naming each Grantor as “debtor”
and the Collateral Agent as “secured party” and describing the Collateral in
the filing offices set forth opposite such Grantor’s name on Schedule 5.4
hereof (as such schedule may be amended or supplemented from time to time), the
security interest of the Collateral Agent in all Collateral that can be
perfected by the filing of a financing statement under the Uniform Commercial
Code as in effect in any jurisdiction will constitute a valid, perfected, first
priority Liens subject in the case of priority only, to any Permitted Liens
with respect to Collateral.  Other than
the Collateral Agent, the Second Lien Collateral Agent and any automatic
control in favor of a Bank, Securities Intermediary or Commodity Intermediary
maintaining a Deposit Account, Securities Account, Commodity Contract or
Commodity Account, no Person is in Control of any Collateral;

 

(b)                                 on the Closing Date
and on each Credit Date, to the
extent perfection or priority of the security interest therein is not subject
to Article 9 of the UCC, and to the extent that the security interest of
the Collateral Agent in Intellectual Property can be perfected by recording the
Trademark Security Agreement, the Patent Security Agreement or the Copyright
Security Agreement, as the case may be, with the United States Patent and
Trademark Office or the United States Copyright Office, for the security
interests granted hereunder in Collateral consisting of U.S. Patents, U.S.
Trademarks, and U.S. Copyrights that are, in each case, set forth on Schedule
5.2, if such security interests are timely and properly recorded in the United
States Patent and Trademark Office and the United States Copyright Office, as
applicable, the security interests granted to the Collateral Agent hereunder in
such U.S. Copyrights, U.S. Patents and U.S. Trademarks shall constitute valid,
perfected, first priority Liens (subject, in the case of priority only, to
Permitted Liens); and

 

(c)                                  on the Closing Date
and on each Credit Date, no
authorization, consent, approval or other action by, and no notice to or filing
with, any Governmental Authority or regulatory body or any other Person is
required for the exercise by Collateral Agent of any rights or remedies in
respect of any Collateral (other than Pledged Equity Interests issued by a
Foreign Subsidiary, foreign Intellectual Property, foreign deposit accounts or
accounts maintained with foreign securities intermediaries) (whether
specifically granted or created hereunder or created or provided for by
applicable law), except (1) for the filings contemplated by clauses (a) and
(b) above, (2) as may be required, in connection with the disposition
of any Investment Related Property, by laws generally affecting the offering
and sale of Securities, (3) for authorizations, consents or approvals that
have been obtained, (4) for actions required with respect to Receivables
where the government of the United States, any agency or instrumentality
thereof, any state or municipality or any foreign sovereign is an Account
Debtor, (5) for actions required (A) pursuant to the terms of
agreements the Collateral Agent has entered into with any landlord,
warehouseman, bailee or other third party, (B) with respect to Collateral
permitted under the Credit Documents to be in the possession of third parties
or (C) with respect to Collateral constituting timber subject to timber
deeds, authorizations, consents, approvals or actions by, or notices to or
filings with, the owner of the real property where such timber is located, (6) for
actions required pursuant to the terms of any agreement conferring Control on
the Collateral Agent or any of its sub-agents, (7) authorizations,
consents, approvals or other actions by, or notices to or filings with, holders
of Permitted Liens, (8) authorizations, consents, approvals or other
actions by, or notices to or filings with, third parties with respect to rights
in Collateral or obligations to a secured party which are not rendered
ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or
any successor provision or provisions) of any relevant jurisdiction or any
other applicable law (including the Bankruptcy Code) or principles of equity, (9) as
may be required by the applicable court in connection with any Commercial Tort
Claim, (10) as may be required in connection with enforcement against an
Account Debtor under

 

15

 

applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws, (11) notices
required to be given hereunder, (12) as may be required by laws generally
applicable to the enforcement of remedies, (13) for any filings or actions
required to perfect or record a Lien on, or security interest in, any
Intellectual Property that arises under the laws of any country or jurisdiction
other than the United States, (14) for actions required by the terms of any agreement,
document or instrument constituting or governing any Collateral which are not
rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any
successor provision or provisions) of any relevant jurisdiction, (15) for
actions which are not required to be taken by the Grantors pursuant to the
Credit Documents and (16) for actions with respect to Collateral with an
aggregate fair market value of less than $5,000,000.

 

5.5                               Goods & Receivables.

 

(a)                                  on the Closing Date
and on each Credit Date, each
Receivable (1) is and will be the legal, valid and binding obligation of
the Account Debtor in respect thereof, representing an unsatisfied obligation
of such Account Debtor, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws, (2) is
enforceable in accordance with its terms, except as may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws, (3) is not and will not be subject to any credits, rights of
recoupment, setoffs, defenses, taxes, counterclaims (except with respect to
refunds, returns and allowances in the ordinary course of business) and (4) is
and will be in compliance in all material respects with all applicable laws,
whether federal, state, local or foreign;

 

(b)                                 on the Closing Date
and on each Credit Date, none of
the Account Debtors in respect of any Receivable in excess of $1,000,000
individually or $2,000,000 in the aggregate is the government of the United States,
any agency or instrumentality thereof, any state or municipality or any foreign
sovereign;

 

(c)                                  on the Closing Date
and on each Credit Date, any Goods
now or hereafter produced by any Grantor included in the Collateral have been
and will be produced in all material respects in compliance with the
requirements of the Fair Labor Standards Act, as amended, and the rules and
regulations promulgated thereunder; and

 

(d)                                 on the Closing Date
and on each Credit Date, other
than any Inventory or Equipment (i) in transit, (ii) undergoing
repairs, (iii) consisting of sales samples in the possession of employees
in the ordinary course of business, (iv) in possession of the Collateral
Agent or Lenders, (v) consisting of mobile equipment, (vi) of an
immaterial value kept on the premises of customers in the ordinary course of
business or (vii) having a value of less than $1,000,000 in the aggregate,
all of the Equipment and Inventory included in the Collateral is located only
at the locations specified in Schedule 5.5 (as such schedule may be amended or
supplemented from time to time).

 

5.6                               Pledged Equity Interests,
Investment Related Property.

 

(a)                                  on the Closing Date
and on each Credit Date, except as
otherwise set forth on Schedule 5.1(I) (as such schedule may be amended or
supplemented from time to time), all of the Pledged LLC Interests and Pledged
Partnership Interests are or represent interests that

 

16

 

by their terms provide
that they are securities governed by the Uniform Commercial Code of an
applicable jurisdiction.

 

5.7                               Intellectual Property.

 

(a)                                  on the Closing Date
and on each Credit Date, each
Grantor is the sole and exclusive owner of the entire right, title, and
interest in and to all patents, copyrights, trademarks and Internet domain
names listed on Schedule 5.2(II)(A) (as such schedule may be amended or
supplemented from time to time), which are used in or necessary to conduct its
business, free and clear of all Liens except for, in the case of priority only,
Permitted Liens and the licenses set forth on Schedule 5.2, and each
Intellectual Property License of Material Intellectual Property licensed to
Grantor listed on Schedule 5.2(II)(B) (as such schedule may be amended or
supplemented from time to time) is in full force and effect;

 

(b)                                 on the Closing Date
and on each Credit Date, each
Grantor has performed all acts and has paid all renewal, maintenance, and other
fees and taxes required to maintain each and every current registration and
application of U.S. Copyrights, U.S. Patents and U.S. Trademarks owned by
Grantor that, in each case, constitute Material Intellectual Property;

 

(c)                                  on the Closing Date
and on each Credit Date, to the
Grantor’s actual knowledge, all Material Intellectual Property owned by a
Grantor is valid and enforceable; and except as would not reasonably be
expected to have a Material Adverse Effect, no
holding, decision, ruling, or judgment has been rendered in any action or
proceeding before any court or administrative authority challenging the
validity or scope of, or challenging such Grantor rights to own, license or
use, any Material Intellectual Property owned by Grantor, and no such action or
proceeding is currently pending or threatened against such Grantor in writing;

 

(d)                                 on the Closing Date
and on each Credit Date, all
registrations of and applications for registration of, copyrights, patents and
trademarks as well as Internet domain names that are set forth on Schedule
5.2(II)(A) (as such schedule may be amended or supplemented from time to
time), are standing in the name of such Grantor, except as disclosed in
Schedule 5.2(II)(C);

 

(e)                                  on the Closing Date
and on each Credit Date, each Grantor uses adequate standards of
quality in the manufacture, distribution, and sale of all products sold and in
the provision of all services rendered under or in connection with all
Trademarks that constitute Material Intellectual Property;

 

(f)                                    on the Closing Date
and on each Credit Date, to such
Grantor’s actual knowledge, the conduct of such Grantor’s business as currently
conducted does not infringe upon or misappropriate or otherwise violate any
trademark, patent, copyright, trade secret or other intellectual property right
of any other Person, and no claim or suit is pending charging such Grantor as a
defendant in any proceeding involving a claim that the use of any Material
Intellectual Property owned or used by such Grantor infringes upon,
misappropriates or otherwise violates the Intellectual Property rights of any
other Person;

 

(g)                                 on the Closing Date
and on each Credit Date, to such
Grantor’s actual knowledge, no other Person is infringing upon,
misappropriating or otherwise violating any rights in any Material Intellectual
Property owned by such Grantor in any material respect; and

 

17

 

(h)                                 on the Closing Date
and on each Credit Date, no
settlement or consents, covenants not to sue, co-existence agreements,
non-assertion assurances, or releases have been entered into by Grantor that
binds Grantor in a manner that materially adversely affects Grantor’s rights to
own, license or use any Material Intellectual Property owned by Grantor as of
such date, other than (i) those licensed by Grantor under any Intellectual
Property License or (ii) those subject to Permitted Liens.

 

SECTION 6.                            COVENANTS AND
AGREEMENTS.

 

Each Grantor hereby covenants and agrees that:

 

6.1                               Grantor Information & Status –
Pledge Supplement.

 

(a)                                  In connection with any
notice provided under Section 5.1(l) of the Credit Agreement in
connection with a merger or other change in corporate structure, such Grantor
shall execute and deliver to the Collateral Agent a completed Pledge
Supplement, substantially in the form of Annex A attached hereto, upon
completion of such merger or other change in corporate structure confirming the
grant of the security interest hereunder.

 

6.2                               Collateral Identification;
Special Collateral.

 

(a)                                  in the event that it
hereafter acquires any Collateral of a type described in Section 5.2(b) hereof,
it shall promptly notify the Collateral Agent thereof in writing and take such
actions and execute such documents and make such filings all at Grantor’s
expense as the Collateral Agent may reasonably request in order to ensure that
the Collateral Agent has a valid, perfected, first priority security interest
in such Collateral, subject in the case of priority only, to any Permitted
Liens.  Notwithstanding the foregoing, no
Grantor shall be required to notify the Collateral Agent or take any such
action unless such Collateral is material to such Grantor’s business.

 

(b)                                 in the event that it
hereafter acquires or has any Commercial Tort Claims in excess of $500,000
individually or $1,000,000 in the aggregate it shall deliver to the Collateral
Agent a completed Pledge Supplement, substantially in the form of Exhibit A
attached hereto, together with all Supplements to Schedules thereto,
identifying such new Commercial Tort Claims.

 

6.3                               Ownership of Collateral and
Absence of Other Liens.

 

(a)                                  except for the
security interest created by this Agreement, it shall not create or suffer to
exist any Lien upon or with respect to any of the Collateral, other than
Permitted Liens, and such Grantor shall use commercially reasonable efforts to
defend the Collateral against all Persons at any time claiming any Lien thereon
other than a Permitted Lien; and

 

(b)                                 it shall not sell,
transfer or assign (by operation of law or otherwise) any Collateral to another
Person or provide an Exclusive IP License (as such term is defined in the
Credit Agreement) to another Person except as otherwise permitted by the Credit
Agreement.

 

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6.4                               Status of Security Interest.

 

(a)                                  Subject to the
limitations set forth in subsection (b) of this Section 6.4 and
subject to rights to sell, transfer or assign permitted under Section 6.5(b),
each Grantor shall maintain the security interest of the Collateral Agent
hereunder in all Collateral as valid, perfected, first priority Liens (subject,
in the case of priority only, to Permitted Liens).

 

(b)                                 Notwithstanding the
foregoing, no Grantor shall be required to take any action to perfect any
Collateral that can only be perfected by (i) Control, (ii) federal or
foreign filings with respect to Intellectual Property, (iii) filings with
registrars of motor vehicles or similar governmental authorities with respect
to goods covered by a certificate of title, or (iv) any method other than
filing of a UCC filing or delivery to the Collateral Agent, in each case except
as and to the extent specified in Section 4 hereof.

 

6.5                               Goods & Receivables.

 

(a)                                  it shall not deliver
any Document evidencing any Equipment and Inventory to any Person other than
the issuer of such Document to claim the Goods evidenced therefor or the
Collateral Agent, any issuer of a letter of credit payable on delivery of such
Document, any customs broker in possession of such Inventory or Equipment or
any other Person required by the issuer of such Document in connection with the
payment or delivery of such Equipment and Inventory;

 

(b)                                 if any Equipment or
Inventory in excess of $5,000,000 in the aggregate at each location is in
possession or control of any warehouseman, bailee or other third party (other
than a consignee under a consignment for which such Grantor is the Consignor),
each Grantor shall use commercially reasonable efforts to notify the third
party of the Collateral Agent’s security interest and obtain an acknowledgment
from the third party that it is holding the Equipment and Inventory for the
benefit of the Collateral Agent and will permit the Collateral Agent to have
access to Equipment or Inventory for purposes of inspecting such Collateral or,
following the occurrence and during the continuance of an Event of Default, to
remove same from such premises if the Collateral Agent so elects;

 

(c)                                  it shall keep and
maintain at its own cost and expense satisfactory and complete records of the
Receivables, including, but not limited to, the originals of all documentation
with respect to all Receivables and records of all payments received and all credits
granted on the Receivables, all merchandise returned and all other dealings
therewith;

 

(d)                                 other than in the
ordinary course of business (i) it shall not amend, modify, terminate or
waive any provision of any Receivable in any manner which could reasonably be
expected to have a material adverse effect on the value of such Receivable; (ii) following
and during the continuation of an Event of Default, such Grantor shall not (w) grant
any extension or renewal of the time of payment of any Receivable, (x) compromise
or settle any dispute, claim or legal proceeding with respect to any Receivable
for less than the total unpaid balance thereof, (y) release, wholly or
partially, any Person liable for the payment thereof, or (z) allow any
credit or discount thereon; and

 

(e)                                  if an Event of Default
shall have occurred and be continuing, the Collateral Agent shall have the
right after notice to the applicable Grantor to notify, or require any Grantor
to notify, any Account Debtor of the Collateral Agent’s security interest in
the Receivables and any Supporting Obligation and, in addition, at any time
following the occurrence and during the continuation of an Event of Default,
the Collateral Agent may:  (1) direct
the Account Debtors under any Receivables to make payment of all amounts due or
to become due to

 

19

 

such Grantor
thereunder directly to the Collateral Agent; (2) notify, or require any
Grantor to notify, each Person maintaining a lockbox or similar arrangement to
which Account Debtors under any Receivables have been directed to make payment
to remit all amounts representing collections on checks and other payment items
from time to time sent to or deposited in such lockbox or other arrangement
directly to the Collateral Agent; and (3) enforce, at the expense of such
Grantor, collection of any such Receivables and to adjust, settle or compromise
the amount or payment thereof, in the same manner and to the same extent as
such Grantor might have done.  If the Collateral
Agent notifies any Grantor that it has elected to collect the Receivables in
accordance with the preceding sentence, any payments of Receivables received by
such Grantor shall be forthwith (and in any event within two (2) Business
Days) deposited by such Grantor in the exact form received, duly indorsed by
such Grantor to the Collateral Agent if required, in the Collateral Account
maintained under the sole dominion and control of the Collateral Agent, and
until so turned over, all amounts and proceeds (including checks and other
instruments) received by such Grantor in respect of the Receivables, any
Supporting Obligation or Collateral Support shall be received in trust for the
benefit of the Collateral Agent hereunder and shall be segregated from other
funds of such Grantor and such Grantor shall not adjust, settle or compromise
the amount or payment of any Receivable, or release wholly or partly any
Account Debtor or obligor thereof, or allow any credit or discount thereon.

 

6.6                               Pledged Equity Interests,
Investment Related Property.

 

(a)                                  except as provided in
the next sentence, in the event such Grantor receives any dividends, interest
or distributions on any Pledged Equity Interest or other Investment Related
Property, upon the merger, consolidation, liquidation or dissolution of any
issuer of any Pledged Equity Interest or Investment Related Property (other
than a merger or consolidation with, or a liquidation or dissolution the
proceeds of which are distributed to another Grantor), then (a) such dividends,
interest or distributions and securities or other property shall be included in
the definition of Collateral without further action and (b) such Grantor
shall immediately take all steps, if any, that are necessary or, in the
Collateral Agent’s reasonable judgment, advisable to ensure the validity,
perfection, priority and, if applicable, Control of the Collateral Agent over
such Investment Related Property (including, without limitation, delivery
thereof to the Collateral Agent) and pending any such action such Grantor shall
be deemed to hold such dividends, interest, distributions, securities or other
property in trust for the benefit of the Collateral Agent and shall segregate
such dividends, distributions, Securities or other property from all other
property of such Grantor. 
Notwithstanding the foregoing, so long as no Event of Default shall have
occurred and be continuing and so long as the Collateral Agent has not given
notice to the applicable Grantor to the contrary, the Collateral Agent authorizes
each Grantor to retain all ordinary cash dividends and distributions paid and
all payments of principal and interest;

 

(b)                                 Voting.

 

(i)                                     So long as no Event of Default shall have occurred and be
continuing and the Collateral Agent has not given the applicable Grantor notice
to the contrary, except as otherwise provided under the covenants and
agreements relating to Investment Related Property in this Agreement or
elsewhere herein or in the Credit Agreement, each Grantor shall be entitled to
exercise or refrain from exercising any and all voting and other consensual
rights pertaining to the Investment Related Property or any part thereof for
any purpose not inconsistent with the terms of this Agreement or the Credit
Agreement; provided, no Grantor shall exercise or refrain from exercising any
such right if such action could reasonably be expected to have a Material
Adverse Effect

 

20

 

on the
value of the Investment Related Property or any part thereof; it being
understood, however, that neither the voting by such Grantor of any Pledged
Stock for, or such Grantor’s consent to, the election of directors (or similar
governing body) at a regularly scheduled annual or other meeting of
stockholders or with respect to ordinary course of business matters at any such
meeting, nor such Grantor’s consent to or approval of any action otherwise
permitted under this Agreement and the Credit Agreement, shall be deemed
inconsistent with the terms of this Agreement or the Credit Agreement within
the meaning of this Section 6.6(b)(i) and no notice of any such
voting or consent need be given to the Collateral Agent; and

 

(ii)                                  Upon the occurrence and during the continuation of an Event
of Default and after the Collateral Agent has given the applicable Grantor
notices:

 

(1)                                  all rights of each Grantor to exercise or refrain from
exercising the voting and other consensual rights which it would otherwise be
entitled to exercise pursuant hereto shall cease and all such rights shall thereupon
become vested in the Collateral Agent who shall thereupon have the sole right
to exercise such voting and other consensual rights; and

 

(2)                                  in order to permit the Collateral Agent to exercise the
voting and other consensual rights which it may be entitled to exercise
pursuant hereto and to receive all dividends and other distributions which it
may be entitled to receive hereunder: (1) each Grantor shall promptly
execute and deliver (or cause to be executed and delivered) to the Collateral
Agent all proxies, dividend payment orders and other instruments as the
Collateral Agent may from time to time reasonably request and (2) each
Grantor acknowledges that the Collateral Agent may utilize the power of
attorney set forth in Section 8.1;

 

(c)                                  except as expressly
permitted by the Credit Agreement, without the prior written consent of the
Collateral Agent, it shall not vote to enable or take any other action to: (i) amend
or terminate any partnership agreement, limited liability company agreement,
certificate of incorporation, by-laws or other organizational documents in any
way that materially adversely affects the rights of such Grantor with respect
to any Investment Related Property or materially adversely affects the
validity, perfection or priority of the Collateral Agent’s security interest, (ii) permit
any issuer of any Pledged Equity Interest to issue any additional stock,
partnership interests, limited liability company interests or other equity
interests of any nature or to issue securities convertible into or granting the
right of purchase or exchange for any stock or other equity interest of any
nature of such issuer except to another Grantor or, to the extent required by
applicable law, other Persons (e.g., directors’ qualifying shares) who have caused
such property to become subjected to a perfected Lien thereon in favor of the
Collateral Agent, (iii) other than as permitted under the Credit
Agreement, permit any issuer of any Pledged Equity Interest to dispose of all
or a material portion of their assets, (iv) waive any default under or
breach of any terms of organizational document relating to the issuer of any
Pledged Equity Interest or the terms of any Pledged Debt, or (v) cause any
issuer of any Pledged Partnership Interests or Pledged LLC Interests which are
not securities (for purposes of the UCC) on the date hereof to elect or
otherwise take any action to cause such Pledged Partnership Interests or
Pledged LLC Interests to be treated as securities for purposes of the UCC;
provided, however, notwithstanding the foregoing, if any issuer of any Pledged
Partnership Interests or Pledged LLC Interests takes any such action in
violation of the foregoing in this clause (v), such Grantor shall promptly
notify the Collateral Agent in writing of any such election or action and, in
such event, shall take all

 

21

 

steps necessary or, in
the Collateral Agent’s reasonable judgment, advisable to establish the
Collateral Agent’s “Control” thereof; 
and

 

(d)                                 except as expressly
permitted by the Credit Agreement, without the prior written consent of the
Collateral Agent, it shall not permit any issuer of any Pledged Equity Interest
to merge or consolidate unless (i) such issuer creates a security interest
that is perfected by a filed financing statement (that is not effective solely
under section 9-508 of the UCC) in collateral in which such new debtor has or
acquires rights, (ii) all the outstanding capital stock or other equity
interests of the surviving or resulting corporation, limited liability company,
partnership or other entity is, upon such merger or consolidation, pledged
hereunder; provided that if the surviving or resulting Grantors upon any such
merger or consolidation involving an issuer which is a Foreign Subsidiary, then
such Grantor shall only be required to pledge equity interests in accordance
with Section 2.2.

 

6.7                               Intellectual Property.

 

(a)                                  subject to such
Grantor’s reasonable business judgment, it shall not knowingly do any act or
knowingly omit to do any act whereby any registrations of the Material
Intellectual Property lapses, becomes abandoned, dedicated to the public, or
unenforceable, which would adversely affect the validity, grant, or
enforceability of the security interest granted therein;

 

(b)                                 subject to such
Grantor’s reasonable business judgment, it shall not, with respect to any
Trademarks constituting Material Intellectual Property (including, without
limitation, such Trademarks licensed pursuant to the Material Trademark
License), cease the use of any of such Trademarks or fail to maintain the level
of the quality of products sold and services rendered under any of such
Trademark at a level at least substantially consistent with the quality of such
products and services as of the date hereof;

 

(c)                                  it shall notify the
Collateral Agent, on a quarterly basis, if it knows that any item of currently
registered Material Intellectual Property has become (i) abandoned or
dedicated to the public or placed in the public domain, (ii) invalid or unenforceable
or (iii) subject to any adverse determinations in any action or proceeding
in the United States Patent and Trademark Office, the United States Copyright
Office, any state registry, any foreign counterpart of the foregoing, or any
court;

 

(d)                                 subject to such
Grantor’s reasonable business judgment, it shall take all steps in the United
States Patent and Trademark Office, the United States Copyright Office, any
state registry or any foreign counterpart of the foregoing, necessary to pursue
any filed application and maintain any registration of each Trademark, Patent,
and Copyright owned or exclusively licensed under the Material Trademark
License (to the extent Grantor has the rights therein to do so) by such Grantor
and that, in each case, constitutes Material Intellectual Property;

 

(e)                                  subject to such
Grantor’s reasonable business judgment, in the event that any Material
Intellectual Property owned, or exclusively licensed under the Material
Trademark License (to the extent Grantor has the rights therein to do so) by
such Grantor is infringed, misappropriated, or diluted by a third party, and if
Grantor knows of such infringement, misappropriation or dilution, such Grantor
shall promptly take reasonable actions to stop such infringement, misappropriation,
or dilution or to otherwise protect its rights in such Material Intellectual
Property including, but not limited to, the initiation of a suit for injunctive
relief and to recover damages;

 

22

 

(f)                                    subject to such
Grantor’s reasonable business judgment, it shall take all reasonable steps
under the circumstances to protect the secrecy of all Trade Secrets which
constitute Material Intellectual Property, including, without limitation,
entering into confidentiality agreements with employees and consultants and
labeling and restricting access to secret information and documents; and

 

(g)                                 Grantor shall use
commercially reasonable efforts to continue to collect, at its own expense, all
amounts due or to become due to such Grantor in respect of the Material
Intellectual Property or any portion thereof. 
In connection with such collections, each Grantor may take (and, at the
Collateral Agent’s reasonable direction, shall take) such action as such
Grantor or the Collateral Agent may deem reasonably necessary or, in the
Collateral Agent’s reasonable judgment, advisable to enforce collection of such
amounts.  Notwithstanding the foregoing,
the Collateral Agent shall have the right at any time, to notify, or require any
Grantor to notify, any obligors with respect to any such amounts of the
existence of the security interest created hereby.

 

SECTION
7.                       ACCESS; RIGHT OF
INSPECTION AND FURTHER ASSURANCES; ADDITIONAL GRANTORS.

 

7.1                               Intentionally Omitted.

 

7.2                               Further Assurances.

 

(a)                                  Each Grantor agrees
that from time to time, at the expense of such Grantor, that it shall promptly
execute and deliver all further instruments and documents, and take all further
action necessary or, in the Collateral Agent’s reasonable judgment, advisable
in order to create and/or maintain the validity, perfection or priority of and
protect any security interest granted hereby or to enable the Collateral Agent
to exercise and enforce its rights and remedies hereunder with respect to any
Collateral. Without limiting the generality of the foregoing, each Grantor
shall:

 

(i)                                     file such financing or continuation statements, or amendments
thereto, record security interests in intellectual property and execute and
deliver such other agreements, instruments, endorsements, powers of attorney or
notices, as the Collateral Agent may reasonably request, in order to effect,
reflect, perfect and preserve the security interests granted or purported to be
granted hereby;

 

(ii)                                  ensure the recordation of appropriate evidence, as the
Collateral Agent may reasonably request, of the liens and security interest
granted hereunder in the U.S. Patents, U.S. Copyrights, and U.S. Trademarks
that are, in each case, owned by a Grantor, with any intellectual property
registry in which said U.S. Patents, U.S. Copyrights, and U.S. Trademarks are
registered or in which an application for registration is pending including,
without limitation, the United States Patent and Trademark Office, the United
States Copyright Office and the various Secretaries of State of the several
states of the United States;

 

(iii)                               at any reasonable time, upon request by the Collateral Agent
and subject to Section 5.6 of the Credit Agreement, allow inspection of
the Collateral by the Collateral Agent, or persons designated by the Collateral
Agent and, if an Event of Default has occurred and is continuing, assemble the
Collateral; and

 

23

 

(iv)                              at the Collateral Agent’s request, appear in and defend any
action or proceeding that may affect such Grantor’s title to or the Collateral
Agent’s security interest in all or any part of the Collateral.

 

(b)                                 Each Grantor hereby
authorizes the Collateral Agent to file a Record or Records, including, without
limitation, financing or continuation statements, intellectual property
security agreements and amendments to any of the foregoing, in any
jurisdictions and with any filing offices as the Collateral Agent may
reasonably determine are necessary to perfect the security interest granted to
the Collateral Agent herein.  Such
financing statements may describe the Collateral in the same manner as
described herein or may contain an indication or description of collateral that
describes such property in any other manner as the Collateral Agent may
reasonably determine is necessary to ensure the perfection of the security
interest in the Collateral granted to the Collateral Agent herein, including,
without limitation, describing such property as “all assets, whether now owned
or hereafter acquired” or words of similar effect.  Each Grantor shall furnish to the Collateral
Agent from time to time statements and schedules further identifying and
describing the Collateral and such other reports in connection with the
Collateral as the Collateral Agent may reasonably request, all in reasonable
detail.

 

(c)                                  Each Grantor hereby
authorizes the Collateral Agent to modify this Agreement after obtaining such
Grantor’s approval of and signature to such modification by amending Schedule
5.2 (as such schedule may be amended or supplemented from time to time) to
include reference to any Intellectual Property acquired or developed by any
Grantor after the execution hereof (which Intellectual Property would be
required to be referenced on Schedule 5.2) or to delete any reference to any
right, title or interest in any Intellectual Property in which any Grantor no
longer has or claims any right, title or interest.

 

7.3                               Additional Grantors. 
From time to time subsequent to the date hereof, additional Persons may
become parties hereto as additional Grantors (each, an “Additional
Grantor”), by executing a Pledge Supplement.  Upon delivery of any such Pledge Supplement
to the Collateral Agent, notice of which is hereby waived by Grantors, each
Additional Grantor shall be a Grantor and shall be as fully a party hereto as
if Additional Grantor were an original signatory hereto.  Each Grantor expressly agrees that its
obligations arising hereunder shall not be affected or diminished by the
addition or release of any other Grantor hereunder, nor by any election of
Collateral Agent not to cause any Subsidiary of Borrower to become an
Additional Grantor hereunder.  This
Agreement shall be fully effective as to any Grantor that is or becomes a party
hereto regardless of whether any other Person becomes or fails to become or
ceases to be a Grantor hereunder.

 

SECTION
8.                       COLLATERAL AGENT
APPOINTED ATTORNEY-IN-FACT.

 

8.1                               Power of Attorney. 
Until payment in full in cash of all Secured Obligations (other than
contingent obligations), the cancellation or termination of the Commitments and
the cancellation or expiration of all Letters of Credit (unless a Letter of
Credit Backstop is in place), each Grantor hereby irrevocably appoints the
Collateral Agent (such appointment being coupled with an interest) as such
Grantor’s attorney-in-fact, with full authority in the place and stead of such
Grantor and in the name of such Grantor, the Collateral Agent or otherwise,
from time to time in the Collateral Agent’s discretion to take any action and
to execute any instrument that may be necessary or, in the Collateral Agent’s
reasonable judgment, advisable to accomplish the purposes of this Agreement,
including, without limitation, the following:

 

24

 

(a)                                  upon the occurrence
and during the continuance of any Event of Default, to obtain and adjust
Insurance required to be maintained by such Grantor or paid to the Collateral
Agent pursuant to the Credit Agreement;

 

(b)                                 upon the occurrence and
during the continuance of any Event of Default, to ask for, demand, collect,
sue for, recover, compound, receive and give acquittance and receipts for
moneys due and to become due under or in respect of any of the Collateral;

 

(c)                                  upon the occurrence and
during the continuance of any Event of Default, to receive, endorse and collect
any drafts or other instruments, documents and chattel paper in connection with
clause (b) above;

 

(d)                                 upon the occurrence
and during the continuance of any Event of Default, to file any claims or take
any action or institute any proceedings that the Collateral Agent may deem
necessary or desirable for the collection of any of the Collateral or otherwise
to enforce the rights of the Collateral Agent with respect to any of the Collateral;

 

(e)                                  to prepare and file
any UCC financing statements against such Grantor as debtor;

 

(f)                                    to prepare, sign, and
file for recordation in any intellectual property registry, appropriate
evidence of the lien and security interest granted herein in the Intellectual
Property in the name of such Grantor as debtor;

 

(g)                                 upon the occurrence
and during the continuance of any Event of Default, to take or cause to be
taken all actions necessary to perform or comply or cause performance or
compliance with the terms of this Agreement, including, without limitation,
access to pay or discharge taxes or Liens (other than Permitted Liens) levied
or placed upon or threatened against the Collateral, the legality or validity
thereof and the amounts necessary to discharge the same to be determined by the
Collateral Agent in its sole discretion, any such payments made by the
Collateral Agent to become obligations of such Grantor to the Collateral Agent,
due and payable immediately without demand; and

 

(h)                                 upon the occurrence
and during the continuance of any Event of Default, generally to sell,
transfer, lease, license, pledge, make any agreement with respect to or
otherwise deal with any of the Collateral as fully and completely as though the
Collateral Agent were the absolute owner thereof for all purposes, and to do,
at the Collateral Agent’s option and such Grantor’s expense, at any time or
from time to time, all acts and things that the Collateral Agent deems
reasonably necessary to protect, preserve or realize upon the Collateral and
the Collateral Agent’s security interest therein in order to effect the intent
of this Agreement, all as fully and effectively as such Grantor might do.

 

8.2                               No Duty on the Part of Collateral
Agent or Secured Parties.   The powers conferred on the
Collateral Agent hereunder are solely to protect the interests of the Secured
Parties in the Collateral and shall not impose any duty upon the Collateral
Agent or any Secured Party to exercise any such powers.  The Collateral Agent and the Secured Parties
shall be accountable only for amounts that they actually receive as a result of
the exercise of such powers, and neither they nor any of their officers,
directors, employees or agents shall be responsible to any Grantor for any act
or failure to act hereunder, except for their own gross negligence, bad faith
or willful misconduct.

 

25

 

SECTION
9.                       REMEDIES.

 

9.1                               Generally.

 

(a)                                  If any Event of
Default shall have occurred and be continuing, the Collateral Agent may
exercise in respect of the Collateral, in addition to all other rights and
remedies provided for herein or otherwise available to it at law or in equity,
all the rights and remedies of a secured party on default under the UCC
(whether or not the UCC applies to the affected Collateral) to collect, enforce
or satisfy any Secured Obligations then owing, whether by acceleration or
otherwise, and also may pursue any of the following separately, successively or
simultaneously:

 

(i)                                     require any Grantor to, and each Grantor hereby agrees that
it shall at its expense and promptly upon request of the Collateral Agent
forthwith, assemble all or part of the Collateral as directed by the Collateral
Agent and make it available to the Collateral Agent at a place to be designated
by the Collateral Agent that is reasonably convenient to both parties;

 

(ii)                                  enter onto the property during normal business hours where
any Collateral is located and take possession thereof with or without judicial
process;

 

(iii)                               prior to the disposition of the Collateral, store, process,
repair or recondition the Collateral or otherwise prepare the Collateral for
disposition in any manner to the extent the Collateral Agent deems reasonably
appropriate; and

 

(iv)                              without notice except as specified below or under the UCC,
sell, assign, lease, license (on an exclusive or nonexclusive basis) or
otherwise dispose of the Collateral or any part thereof in one or more parcels
at public or private sale, at any of the Collateral Agent’s offices or
elsewhere, for cash, on credit or for future delivery, at such time or times
and at such price or prices and upon such other terms as the Collateral Agent
may deem commercially reasonable.

 

(b)                                 The Collateral Agent
or any Secured Party may be the purchaser of any or all of the Collateral at
any public or private (to the extent to the portion of the Collateral being
privately sold is of a kind that is customarily sold on a recognized market or
the subject of widely distributed standard price quotations) sale in accordance
with the UCC and the Collateral Agent, as collateral agent for and
representative of the Secured Parties, shall be entitled, for the purpose of
bidding and making settlement or payment of the purchase price for all or any
portion of the Collateral sold at any such sale made in accordance with the
UCC, to use and apply any of the Secured Obligations as a credit on account of
the purchase price for any Collateral payable by the Collateral Agent at such
sale.  Each purchaser at any such sale
shall hold the property sold absolutely free from any claim or right on the
part of any Grantor, and each Grantor hereby waives (to the extent permitted by
applicable law) all rights of redemption, stay and/or appraisal which it now
has or may at any time in the future have under any rule of law or statute
now existing or hereafter enacted.  Each
Grantor agrees that, to the extent notice of sale shall be required by law, at
least ten (10) days notice to such Grantor of the time and place of any
public sale or the time after which any private sale is to be made shall
constitute reasonable notification.  The
Collateral Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. 
The Collateral Agent may adjourn any public or private sale from time to
time by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned.  Each Grantor agrees that it

 

26

 

would not be
commercially unreasonable for the Collateral Agent to dispose of the Collateral
or any portion thereof by using Internet sites that provide for the auction of
assets of the types included in the Collateral or that have the reasonable
capability of doing so, or that match buyers and sellers of assets.  Each Grantor hereby waives any claims against
the Collateral Agent arising by reason of the fact that the price at which any
Collateral may have been sold at such a private sale was less than the price
which might have been obtained at a public sale, even if the Collateral Agent
accepts the first offer received and does not offer such Collateral to more
than one offeree.  If the proceeds of any
sale or other disposition of the Collateral are insufficient to pay all the
Secured Obligations, Grantors shall be liable for the deficiency and the
reasonable fees of any attorneys employed by the Collateral Agent to collect
such deficiency.  Each Grantor further
agrees that a breach of any of the covenants contained in this Section will
cause irreparable injury to the Collateral Agent, that the Collateral Agent has
no adequate remedy at law in respect of such breach and, as a consequence, that
each and every covenant contained in this Section shall be specifically
enforceable against such Grantor, and such Grantor hereby waives and agrees not
to assert any defenses against an action for specific performance of such
covenants except for a defense that no default has occurred giving rise to the
Secured Obligations becoming due and payable prior to their stated
maturities.  Nothing in this Section shall
in any way alter the rights of the Collateral Agent hereunder.

 

(c)                                  The Collateral Agent
may sell the Collateral without giving any warranties as to the
Collateral.  The Collateral Agent may
specifically disclaim or modify any warranties of title or the like.  This procedure will not be considered to
adversely affect the commercial reasonableness of any sale of the Collateral.

 

(d)                                 The Collateral Agent
shall have no obligation to marshal any of the Collateral.

 

9.2                               Application of Proceeds. 
Except as expressly provided elsewhere in this Agreement or in the
Credit Agreement, all proceeds received by the Collateral Agent in respect of
any sale, any collection from, or other realization upon all or any part of the
Collateral shall be applied in full or in part by the Collateral Agent against,
the Secured Obligations in the following order of priority:  first, to the payment of all reasonable
out-of-pocket costs and expenses of such sale, collection or other realization,
including reasonable compensation to the Collateral Agent and its agents and
counsel, and all other reasonable out-of-pocket expenses, liabilities and
advances made or incurred by the Collateral Agent in connection therewith, and
all amounts for which the Collateral Agent is entitled to indemnification
hereunder (in its capacity as the Collateral Agent and not as a Lender) and all
advances made by the Collateral Agent hereunder for the account of the
applicable Grantor, and to the payment of all reasonable out-of-pocket costs
and expenses paid or incurred by the Collateral Agent in connection with the
exercise of any right or remedy hereunder or under the Credit Agreement, all in
accordance with the terms hereof or thereof; second, to the extent of
any excess of such proceeds, to the payment of all other Secured Obligations
for the ratable benefit of the Lenders and the Lender Counterparties pursuant
to the terms of the Credit Agreement; and third, to the extent of any
excess of such proceeds and subject to the Intercreditor Agreement, to the
payment to or upon the order of such Grantor or to whosoever may be lawfully
entitled to receive the same or as a court of competent jurisdiction may
direct.

 

9.3                               Sales on Credit. 
If Collateral Agent sells any of the Collateral upon credit, Grantor
will be credited only with payments actually made by purchaser and received by
Collateral Agent and applied to indebtedness of the purchaser.  In the event the purchaser fails to

 

27

 

pay
for the Collateral, Collateral Agent may resell the Collateral and Grantor
shall be credited with proceeds of the sale.

 

9.4                               Investment Related Property. 
Each Grantor recognizes that, by reason of certain prohibitions
contained in the Securities Act and applicable state securities laws, the
Collateral Agent may be compelled, with respect to any sale of all or any part
of the Investment Related Property conducted without prior registration or
qualification of such Investment Related Property under the Securities Act
and/or such state securities laws, to limit purchasers to those who will agree,
among other things, to acquire the Investment Related Property for their own
account, for investment and not with a view to the distribution or resale
thereof.  Each Grantor acknowledges that
any such private sale may be at prices and on terms less favorable than those
obtainable through a public sale without such restrictions (including a public
offering made pursuant to a registration statement under the Securities Act)
and, notwithstanding such circumstances, each Grantor agrees that any such
private sale shall be deemed to have been made in a commercially reasonable
manner and that the Collateral Agent shall have no obligation to engage in
public sales and no obligation to delay the sale of any Investment Related
Property for the period of time necessary to permit the issuer thereof to
register it for a form of public sale requiring registration under the
Securities Act or under applicable state securities laws, even if such issuer
would, or should, agree to so register it. 
If the Collateral Agent determines to exercise its right to sell any or
all of the Investment Related Property, upon written request, each Grantor shall
and shall cause each issuer of any Pledged Stock to be sold hereunder, each
partnership and each limited liability company from time to time to furnish to
the Collateral Agent all such information as the Collateral Agent may request
in order to determine the number and nature of interest, shares or other
instruments included in the Investment Related Property which may be sold by
the Collateral Agent in exempt transactions under the Securities Act and the
rules and regulations of the Securities and Exchange Commission thereunder, as
the same are from time to time in effect.

 

9.5                               Grant of Intellectual Property
License.  For the purpose of enabling the Collateral
Agent, during the continuance of an Event of Default, to exercise the rights
and remedies under Section 9 hereof at such time as the Collateral Agent shall
be lawfully entitled to exercise such rights and remedies, and for no other
purpose, each Grantor hereby grants to the Collateral Agent, to the extent
assignable by such Grantor, an irrevocable (during the continuance of an Event
of Default), non-exclusive license (subject, (i) in the case of Trademarks, to
sufficient rights to quality control and inspection in favor of such Grantor to
avoid the risk of invalidation of such Trademarks, and (ii) in the case of
Trade Secrets, to an obligation of the Collateral Agent to take steps
reasonable under the circumstances to keep the Trade Secrets confidential to
avoid the risk of invalidation of such Trade Secrets) to use or sublicense any
of the Intellectual Property now owned or hereafter acquired by such Grantor,
wherever the same may be located.  Such
license shall include access to all media owned by such Grantor in which any of
the licensed items may be recorded or stored.

 

9.6                               Intellectual Property.

 

(a)                                  Anything contained
herein to the contrary notwithstanding, in addition to the other rights and
remedies provided herein, upon the occurrence and during the continuation of an
Event of Default:

 

(i)                                     the Collateral Agent shall have the right (but not the
obligation) to bring suit or otherwise commence any action or proceeding in the
name of any Grantor, the Collateral Agent or otherwise, to enforce any
Intellectual Property, in which

 

28

 

event such
Grantor shall, at the request of the Collateral Agent, do any and all lawful
acts and execute any and all documents reasonably required by the Collateral
Agent in aid of such enforcement and, subject to Sections 10.2 and 10.3 of the
Credit Agreement, such Grantor shall promptly, upon demand, reimburse and
indemnify the Collateral Agent as provided in Section 10 hereof in
connection with the exercise of its rights under this Section, and, to the
extent that the Collateral Agent shall elect not to bring suit to enforce any
such Intellectual Property as provided in this Section, each Grantor agrees to
use all reasonable measures, whether by action, suit, proceeding or otherwise,
to prevent the infringement or other violation of any of such Grantor’s rights
in such Intellectual Property by others and for that purpose agrees to
diligently maintain any action, suit or proceeding against any Person so
infringing as shall be necessary to prevent such infringement or violation;

 

(ii)                                  upon written demand from the Collateral Agent, each Grantor
shall grant, assign, convey or otherwise transfer to the Collateral Agent or
such Collateral Agent’s designee all of such Grantor’s right, title and
interest in and to the Intellectual Property and shall execute and deliver to
the Collateral Agent such documents as are necessary or appropriate to carry
out the intent and purposes of this Agreement;

 

(iii)                               each Grantor agrees that such an assignment and/or recording
shall be applied to reduce the Secured Obligations outstanding only to the
extent that the Collateral Agent (or any Secured Party) receives cash proceeds
in respect of the sale of, or other realization upon, the Intellectual
Property; and

 

(iv)                              the Collateral Agent shall have the right to notify, or
require each Grantor to notify, any obligors with respect to amounts due or to
become due to such Grantor in respect of the Intellectual Property, of the
existence of the security interest created herein, to direct such obligors to
make payment of all such amounts directly to the Collateral Agent, and, upon
such notification and at the expense of such Grantor, to enforce collection of
any such amounts and to adjust, settle or compromise the amount or payment
thereof, in the same manner and to the same extent as such Grantor might have
done;

 

(1)                                  all amounts and proceeds (including checks and other
instruments) received by Grantor in respect of amounts due to such Grantor in
respect of the Collateral or any portion thereof shall be received in trust for
the benefit of the Collateral Agent hereunder, shall be segregated from other
funds of such Grantor and shall be forthwith paid over or delivered to the
Collateral Agent in the same form as so received (with any necessary
endorsement) to be held as cash Collateral and applied as provided by Section 9.7
hereof; and

 

(2)                                  Grantor shall not adjust, settle or compromise the amount or
payment of any such amount or release wholly or partly any obligor with respect
thereto or allow any credit or discount thereon.

 

(b)                                 If (i) an Event
of Default shall have occurred and, by reason of cure, waiver, modification,
amendment or otherwise, no longer be continuing, (ii) no other Event of
Default shall have occurred and be continuing, (iii) an assignment or
other transfer to the Collateral Agent of any rights, title and interests in
and to the Intellectual Property shall have been previously made and shall have
become absolute and effective, and (iv) the Secured Obligations shall not
have become immediately due and payable, upon the written request of any

 

29

 

Grantor, the
Collateral Agent shall promptly execute and deliver to such Grantor, at such
Grantor’s sole cost and expense, such assignments or other transfer as may be
necessary to reassign to such Grantor any such rights, title and interests as
may have been assigned to the Collateral Agent as aforesaid, subject to any
disposition thereof that may have been made by the Collateral Agent; provided,
after giving effect to such reassignment, the Collateral Agent’s security
interest granted pursuant hereto, as well as all other rights and remedies of
the Collateral Agent granted hereunder, shall continue to be in full force and
effect; and provided further, the rights, title and interests so reassigned
shall be free and clear of any other Liens granted by or on behalf of the
Collateral Agent and the Secured Parties.

 

9.7                               Cash Proceeds; Deposit Accounts.  
(a)  If any Event of Default shall
have occurred and be continuing, in addition to the rights of the Collateral
Agent specified in Section 6.5 with respect to payments of Receivables, upon
the Collateral Agent giving notice to the applicable Grantor (other than in the
case of an Event of Default under Sections 8.1(f) and 8.1(g) of the Credit
Agreement), all proceeds of any Collateral received by any Grantor consisting
of cash, checks and other near-cash items (collectively, “Cash
Proceeds”) shall be held by such Grantor in trust for the Collateral
Agent, segregated from other funds of such Grantor, and shall, forthwith upon
receipt by such Grantor, be turned over to the Collateral Agent in the exact
form received by such Grantor (duly indorsed by such Grantor to the Collateral
Agent, if required) and held by the Collateral Agent in the Collateral Account
to the extent required to pay Secured Obligations due and payable.  Any Cash Proceeds received by the Collateral
Agent (whether from a Grantor or otherwise) shall be applied by the Collateral
Agent against the Secured Obligations then due and owing.

 

(b)  If any Event of
Default shall have occurred and be continuing, the Collateral Agent may, upon
giving notices to the applicable Grantor (other than in the case of an Event of
Default under Sections 8.1(f) and 8.1(g) of the Credit Agreement),
apply the balance from any Deposit Account or instruct the bank at which any
Deposit Account is maintained to pay the balance of any Deposit Account to or
for the benefit of the Collateral Agent to be applied by the Collateral Agent
against the Secured Obligations then due and owing.

 

SECTION 10.                     COLLATERAL AGENT.

 

The Collateral Agent has
been appointed to act as Collateral Agent hereunder by Lenders and, by their
acceptance of the benefits hereof, the other Secured Parties. The Collateral
Agent shall be obligated, and shall have the right hereunder, to make demands,
to give notices, to exercise or refrain from exercising any rights, and to take
or refrain from taking any action (including, without limitation, the release
or substitution of Collateral), solely in accordance with this Agreement and
the Credit Agreement; provided, the Collateral Agent shall, after payment
in full of all Obligations under the Credit Agreement and the other Credit
Documents, exercise, or refrain from exercising, any remedies provided for
herein in accordance with the instructions of the holders (the “Majority
Holders”) of a majority of the aggregate “settlement amount” as defined in the
Hedge Agreements (or, with respect to any Hedge Agreement that has been
terminated in accordance with its terms, the amount then due and payable
(exclusive of expenses and similar payments but including any early termination
payments then due) under such Hedge Agreement) under all Hedge Agreements.  For purposes of the foregoing sentence,
settlement amount for any Hedge that has not been terminated shall be the
settlement amount as of the last Business Day of the month preceding any date
of determination and shall be calculated by the appropriate swap counterparties
and reported to the Collateral Agent upon request; provided any Hedge Agreement
with a settlement amount that is a negative number shall be disregarded for
purposes of determining the Majority Holders. 
In furtherance of the foregoing provisions of this

 

30

 

Section,
each Secured Party, by its acceptance of the benefits hereof, agrees that it
shall have no right individually to realize upon any of the Collateral
hereunder, it being understood and agreed by such Secured Party that all rights
and remedies hereunder may be exercised solely by the Collateral Agent for the
benefit of Secured Parties in accordance with the terms of this Section.   The provisions of the Credit Agreement
relating to the Collateral Agent including, without limitation, the provisions
relating to resignation of the Collateral Agent and the powers and duties and
immunities of the Collateral Agent are incorporated herein by this reference
and shall survive any termination of the Credit Agreement.

 

SECTION 11.                     CONTINUING SECURITY INTEREST; TRANSFER OF
LOANS.

 

This Agreement shall create a
continuing security interest in the Collateral and shall remain in full force
and effect until the payment in full of all Secured Obligations (other than
contingent obligations), the cancellation or termination of the Commitments and
the cancellation or expiration of all outstanding Letters of Credit (unless a
Letter of Credit Backstop is in place), be binding upon each Grantor, its
successors and assigns, and inure, together with the rights and remedies of the
Collateral Agent hereunder, to the benefit of the Collateral Agent and its
successors and permitted assigns. 
Without limiting the generality of the foregoing, but subject to the
terms of the Credit Agreement, any Lender may assign or otherwise transfer any
Loans held by it to any other Person, and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to Lenders
herein or otherwise.  Upon the payment in
full of all Secured Obligations (other than contingent obligations), the
cancellation or termination of the Commitments and the cancellation or
expiration of all outstanding Letters of Credit (unless a Letter of Credit
Backstop is in place), the security interest granted hereby shall automatically
terminate hereunder and of record and, subject to the Intercreditor Agreement,
all rights to the Collateral shall revert to Grantors.  Upon any such termination the Collateral
Agent shall, at Grantors’ expense, execute and deliver to Grantors or otherwise
authorize the filing of such documents as Grantors shall reasonably request,
including financing statement amendments to evidence such termination.  Upon any disposition of property permitted by
the Credit Agreement, the Liens granted herein shall be deemed to be
automatically released and such property shall automatically revert to the
applicable Grantor with no further action on the part of any Person.  The Collateral Agent shall, at Grantor’s
expense, execute and deliver or otherwise authorize the filing of such
documents as Grantors shall reasonably request, in form and substance
reasonably satisfactory to the Collateral Agent, including financing statement
amendments to evidence such release.

 

SECTION 12.                     STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.

 

The powers conferred on the
Collateral Agent hereunder are solely to protect its interest in the Collateral
and shall not impose any duty upon it to exercise any such powers.  Except for the exercise of reasonable care in
the custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, the Collateral Agent shall have no duty as
to any Collateral or as to the taking of any necessary steps to preserve rights
against prior parties or any other rights pertaining to any Collateral.  The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of Collateral in its
possession if such Collateral is accorded treatment substantially equal to that
which the Collateral Agent accords its own property.  Neither the Collateral Agent nor any of its
directors, officers, employees or agents shall be liable for failure to demand,
collect or realize upon all or any part of the Collateral or for any delay in
doing so or shall be under any obligation to sell or otherwise dispose of any
Collateral upon the request of any Grantor or otherwise.  If any Grantor fails to perform any agreement
contained herein, the Collateral Agent may itself perform, or cause

 

31

 

performance
of, such agreement, and the expenses of the Collateral Agent incurred in
connection therewith shall be payable by each Grantor under Section 10.2
of the Credit Agreement.

 

SECTION 13.                     MISCELLANEOUS.

 

Any notice required or
permitted to be given under this Agreement shall be given in accordance with Section 10.1
of the Credit Agreement.  No failure or
delay on the part of the Collateral Agent in the exercise of any power, right
or privilege hereunder or under any other Credit Document shall impair such
power, right or privilege or be construed to be a waiver of any default or
acquiescence therein, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of any
other power, right or privilege.  All
rights and remedies existing under this Agreement and the other Credit
Documents are cumulative to, and not exclusive of, any rights or remedies
otherwise available.  In case any
provision in or obligation under this Agreement shall be invalid, illegal or
unenforceable in any jurisdiction, the validity, legality and enforceability of
the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired
thereby.  All covenants hereunder shall
be given independent effect so that if a particular action or condition is not
permitted by any of such covenants, the fact that it would be permitted by an
exception to, or would otherwise be within the limitations of, another covenant
shall not avoid the occurrence of a Default or an Event of Default if such
action is taken or condition exists. 
This Agreement shall be binding upon and inure to the benefit of the
Collateral Agent and Grantors and their respective successors and assigns.  No Grantor shall, without the prior written
consent of the Collateral Agent given in accordance with the Credit Agreement,
assign any right, duty or obligation hereunder. 
This Agreement and the other Credit Documents embody the entire
agreement and understanding between Grantors and the Collateral Agent and
supersede all prior agreements and understandings between such parties relating
to the subject matter hereof and thereof. 
Accordingly, the Credit Documents may not be contradicted by evidence of
prior, contemporaneous or subsequent oral agreements of the parties.  There are no unwritten oral agreements
between the parties.  This Agreement may
be executed in one or more counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all
signature pages are physically attached to the same document.  Delivery of an executed signature page to
this Agreement by facsimile or electronic transmission (in .pdf format) shall
be as effective as delivery of a manually signed counterpart of this Agreement.

 

THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL
CLAIMS AND CONTROVERSIES ARISING OUT OF THE SUBJECT MATTER HEREOF WHETHER
SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THAT WOULD RESULT IN THE
APPLICATION OF ANY OTHER LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC
RELATING TO THE LAW GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OF THE
SECURITY INTEREST).

 

THE
PROVISIONS OF THE CREDIT AGREEMENT UNDER THE HEADINGS “CONSENT TO JURISDICTION”
AND “WAIVER OF JURY TRIAL” ARE

 

32

 

INCORPORATED HEREIN BY THIS REFERENCE AND SUCH INCORPORATION SHALL
SURVIVE ANY TERMINATION OF THE CREDIT AGREEMENT.

 

33

 

IN WITNESS WHEREOF, each
Grantor and the Collateral Agent have caused this Agreement to be duly executed
and delivered by their respective officers thereunto duly authorized as of the
date first written above.

 

 

	
   

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name:   Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name:   Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name:   Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  

 

34

 

	
   

  	
  BOISE
  WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE PACKAGING & NEWSPRINT, 

  L.L.C.

  
	
   

  	
  BOISE CASCADE TRANSPORTATION

  HOLDINGS CORP.

  
	
   

  	
  BOISE
  WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE
  WHITE PAPER HOLDINGS CORP.

  
	
   

  	
  INTERNATIONAL FALLS POWER

  COMPANY

  
	
   

  	
  MINNESOTA, DAKOTA &
  WESTERN

  RAILWAY COMPANY

  
	
   

  	
  BEMIS
  CORPORATION

  
	
   

  	
  BC
  CHINA CORPORATION

  
	
   

  	
  B C T, INC.,

  
	
   

  	
  as Grantors:

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Samuel K. Cotterell

  
	
   

  	
  Name:   Samuel K. Cotterell

  
	
   

  	
  Title: Vice President

  

 

35

 

	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  
	
   

  	
  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Tom Connolly

  
	
   

  	
  Title:     Authorized Signatory

  

 

36

 

SCHEDULE 5.1

TO PLEDGE AND SECURITY AGREEMENT

 

GENERAL
INFORMATION

 

(A)                             Full Legal
Name, Type of Organization, Jurisdiction of Organization, Chief Executive
Office/Sole Place of Business and Organizational Identification Number of each
Grantor:

 

	
  Full Legal

  Name

  	
   

  	
  Type of

  Organization

  	
   

  	
  Jurisdiction of

  Organization

  	
   

  	
  Chief Executive

  Office/Sole Place of

  Business

  	
   

  	
  Organization I.D.#

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B)                              Other Names
(including any Trade Name or Fictitious Business Name) under which each Grantor
currently conducts business:

 

	
  Full Legal Name

  	
   

  	
  Trade Name or Fictitious Business Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

(C)                              Changes in
Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of
Business and Corporate Structure within the past year:

 

	
  Grantor

  	
   

  	
  Date of Change

  	
   

  	
  Description of Change

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(D)                             Agreements
pursuant to which any Grantor is bound as debtor within the last year:

 

	
  Grantor

  	
   

  	
  Description of Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5.1-1

 

SCHEDULE 5.2

TO PLEDGE AND SECURITY AGREEMENT

 

COLLATERAL
IDENTIFICATION

 

I.                                         INVESTMENT
RELATED PROPERTY

 

(A)                              Pledged Stock:

 

	
  Grantor

  	
   

  	
  Stock

  Issuer

  	
   

  	
  Class of 

  Stock

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Stock

  Certificate

  No.

  	
   

  	
  Par Value

  	
   

  	
  No. of 

  Pledged

  Stock

  	
   

  	
  Percentage

  of

  Outstanding

  Stock of the

  Stock Issuer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
LLC Interests:

 

	
  Grantor

  	
   

  	
  Limited

  Liability

  Company

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  No. of Pledged 

  Units

  	
   

  	
  Percentage of

  Outstanding 

  LLC Interests of 

  the Limited

  Liability

  Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Partnership Interests:

 

	
  Grantor

  	
   

  	
  Partnership

  	
   

  	
  Type of 

  Partnership

  Interests (e.g.,

  general or 

  limited)

  	
   

  	
  Certificated

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  Percentage of

  Outstanding

  Partnership

  Interests of the

  Partnership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged
Trust Interests:

 

	
  Grantor

  	
   

  	
  Trust

  	
   

  	
  Class of Trust 

  Interests

  	
   

  	
  Certificated 

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  Percentage of 

  Outstanding 

  Trust Interests

  of the Trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Debt:

 

	
  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Original 

  Principal

  Amount

  	
   

  	
  Outstanding

  Principal

  Balance

  	
   

  	
  Issue Date

  	
   

  	
  Maturity Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5.2-1

 

Securities
Accounts:

 

	
  Grantor

  	
   

  	
  Share of Securities 

  Intermediary

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Deposit
Accounts:

 

	
  Grantor

  	
   

  	
  Name of Depositary Bank

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Commodities
Accounts:

 

	
  Grantor

  	
   

  	
  Name of Commodities

  Intermediary

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II.  INTELLECTUAL PROPERTY

 

(A)                              Copyrights

 

	
  Grantor

  	
   

  	
  Description of Copyright

  	
   

  	
  Registration Number

  (if any)

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B)                                 Copyright Licenses

 

	
  Grantor

  	
   

  	
  Description of Copyright 

  License

  	
   

  	
  Registration Number (if 

  any) of underlying

  Copyright

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(C)                                Patents

 

	
  Grantor

  	
   

  	
  Description of Patent

  	
   

  	
  Registration Number

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

5.2-2

 

(D)                               Patent Licenses

 

	
  Grantor

  	
   

  	
  Description of Patent

  License

  	
   

  	
  Registration Number of 

  underlying Patent

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(E)                                 Trademarks

 

	
  Grantor

  	
   

  	
  Description of Trademark

  	
   

  	
  Registration Number

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(F)                                 Trademark
Licenses

 

	
  Grantor

  	
   

  	
  Description of Trademark 

  License

  	
   

  	
  Registration Number of 

  underlying Trademark

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(G)                                Trade Secret
Licenses

 

III.                                 COMMERCIAL
TORT CLAIMS

 

	
  Grantor

  	
   

  	
  Commercial Tort Claims

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

IV.                                LETTER
OF CREDIT RIGHTS

 

	
  Grantor

  	
   

  	
  Description of Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5.2-3

 

V.                                    WAREHOUSEMAN,
BAILEES AND OTHER THIRD PARTIES IN POSSESSION OF COLLATERAL

 

	
  Grantor

  	
   

  	
  Description of Property

  	
   

  	
  Name and Address of Third Party

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

VI.                                TIMBER

 

	
  Grantor

  	
   

  	
  Location

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

5.2-4

 

	
   

  	
  SCHEDULE
  5.4 TO

  
	
   

  	
  PLEDGE
  AND SECURITY AGREEMENT

  

 

FINANCING STATEMENTS:

 

	
  Grantor

  	
   

  	
  Filing Jurisdiction(s)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

5.4-1

 

SCHEDULE 5.5

TO PLEDGE AND SECURITY AGREEMENT

 

	
  Grantor

  	
   

  	
  Location of Equipment and Inventory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

5.5-1

 

EXHIBIT A

TO PLEDGE AND SECURITY AGREEMENT

 

PLEDGE
SUPPLEMENT

 

This PLEDGE SUPPLEMENT, dated [mm/dd/yy], is
delivered by [NAME OF GRANTOR] a [NAME OF STATE OF INCORPORATION] [Corporation] (the “Grantor”)
pursuant to the Pledge and Security Agreement (First Lien), dated as of February 22,
2008  (as it may be from time to
time amended, restated, modified or supplemented, the “Security Agreement”),
among Aldabra Holding Sub LLC, a Delaware
limited liability company, Aldabra Sub LLC,
a Delaware limited liability company, to be merged with and into Boise Paper Holdings, L.L.C., a Delaware limited liability
company, the other Grantors named therein, and Goldman Sachs Credit Partners L.P., as the Collateral
Agent.  Capitalized terms used herein not
otherwise defined herein shall have the meanings ascribed thereto in the
Security Agreement.

 

Grantor hereby confirms the
grant to the Collateral Agent set forth in the Security Agreement of, and does
hereby grant to the Collateral Agent, a security interest in all of Grantor’s
right, title and interest in and to all Collateral to secure the Secured
Obligations, in each case whether now or hereafter existing or in which Grantor
now has or hereafter acquires an interest and wherever the same may be located.  Grantor represents and warrants that the
attached Supplements to Schedules accurately and completely in all material
respects set forth the additional information required to be provided pursuant
to the Security Agreement and hereby agrees that such Supplements to Schedules
shall constitute part of the Schedules to the Security Agreement.

 

THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL
CLAIMS AND CONTROVERSIES ARISING OUT OF THE SUBJECT MATTER HEREOF WHETHER
SOUNDING IN CONTRACT LAW, TORT LAW OR OTHERWISE SHALL BE GOVERNED BY, AND SHALL
BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THAT WOULD RESULT IN THE
APPLICATION OF ANY OTHER LAW (OTHER THAN ANY MANDATORY PROVISIONS OF THE UCC
RELATING TO THE LAW GOVERNING PERFECTION AND THE EFFECT OF PERFECTION OF THE
SECURITY INTEREST).

 

IN WITNESS
WHEREOF, Grantor has caused this Pledge Supplement to be duly executed and
delivered by its duly authorized officer as of [mm/dd/yy].

 

	
   

  	
  [NAME OF GRANTOR]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-1

 

SUPPLEMENT TO SCHEDULE 5.1

TO PLEDGE AND SECURITY AGREEMENT

 

Additional Information:

 

GENERAL
INFORMATION

 

(A)                              Full Legal
Name, Type of Organization, Jurisdiction of Organization, Chief Executive
Office/Sole Place of Business and Organizational Identification Number of each
Grantor:

 

	
  Full
  Legal 

  Name

  	
   

  	
  Type of 

  Organization

  	
   

  	
  Jurisdiction of 

  Organization

  	
   

  	
  Chief Executive

  Office/Sole Place of 

  Business

  	
   

  	
  Organization I.D.#

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B)                                Other Names
(including any Trade Name or Fictitious Business Name) under which each Grantor
currently conducts business:

 

	
  Full
  Legal Name

  	
   

  	
  Trade Name or Fictitious Business Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

(C)                                Changes in
Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of
Business and Corporate Structure within the past year:

 

	
  Grantor

  	
   

  	
  Date of Change

  	
   

  	
  Description of Change

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(D)                               Agreements
pursuant to which any Grantor is bound as debtor within the past year:

 

	
  Grantor

  	
   

  	
  Description of Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-2

 

SUPPLEMENT TO SCHEDULE 5.2

TO PLEDGE AND SECURITY AGREEMENT

 

COLLATERAL
IDENTIFICATION

 

I.                                         INVESTMENT
RELATED PROPERTY

 

(A)                              Pledged Stock:

 

	
  Grantor

  	
   

  	
  Stock 

  Issuer

  	
   

  	
  Class 

  of Stock

  	
   

  	
  Certificated 

  (Y/N)

  	
   

  	
  Stock 

  Certificate

  No.

  	
   

  	
  Par Value

  	
   

  	
  No. of 

  Pledged

  Stock

  	
   

  	
  Percentage

  of 

  Outstanding

  Stock of the

  Stock Issuer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged LLC Interests:

 

	
  Grantor

  	
   

  	
  Limited

  Liability

  Company

  	
   

  	
  Certificated 

  (Y/N)

  	
   

  	
  Certificate No.

  (if any)

  	
   

  	
  No. of Pledged 

  Units

  	
   

  	
  Percentage of

  Outstanding 

  LLC Interests of 

  the Limited 

  Liability 

  Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Partnership Interests:

 

	
  Grantor

  	
   

  	
  Partnership

  	
   

  	
  Type of 

  Partnership 

  Interests (e.g., 

  general or limited)

  	
   

  	
  Certificated 

  (Y/N)

  	
   

  	
  Certificate No.
  (if any)

  	
   

  	
  Percentage of 

  Outstanding 

  Partnership 

  Interests of the 

  Partnership

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Trust Interests:

 

	
  Grantor

  	
   

  	
  Trust

  	
   

  	
  Class of Trust 

  Interests

  	
   

  	
  Certificated 

  (Y/N)

  	
   

  	
  Certificate No. 

  (if any)

  	
   

  	
  Percentage of 

  Outstanding 

  Trust Interests 

  of the Trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Debt:

 

	
  Grantor

  	
   

  	
  Issuer

  	
   

  	
  Original 

  Principal

  Amount

  	
   

  	
  Outstanding 

  Principal

  Balance

  	
   

  	
  Issue Date

  	
   

  	
  Maturity Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-3

 

Securities Account:

 

	
  Grantor

  	
   

  	
  Share of Securities 

  Intermediary

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Deposit
Accounts:

 

	
  Grantor

  	
   

  	
  Name of Depositary Bank

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Commodities
Accounts:

 

	
  Grantor

  	
   

  	
  Name of Commodities

  Intermediary

  	
   

  	
  Account Number

  	
   

  	
  Account Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

II. 
INTELLECTUAL PROPERTY

 

(A)                              Copyrights

 

	
  Grantor

  	
   

  	
  Description of Copyright

  	
   

  	
  Registration Number (if 

  any)

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(B)                                Copyright
Licenses

 

	
  Grantor

  	
   

  	
  Description of Copyright 

  License

  	
   

  	
  Registration Number (if 

  any) of underlying 

  Copyright

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(C)                                Patents

 

	
  Grantor

  	
   

  	
  Description of Patent

  	
   

  	
  Registration Number

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-4

 

(D)                               Patent Licenses

 

	
  Grantor

  	
   

  	
  Description of Patent 

  License

  	
   

  	
  Registration Number of 

  underlying Patent

  	
   

  	
  Name of Licensor

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(E)                                 Trademarks

 

	
  Grantor

  	
   

  	
  Description of Trademark

  	
   

  	
  Registration Number

  	
   

  	
  Issue Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(F)                                 Trademark
Licenses

 

	
  Grantor

  	
   

  	
  Description of Trademark 

  License

  	
   

  	
  Registration Number of 

  underlying Trademark

  	
   

  	
  Name of Licensor

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(G)                                Trade Secret
Licenses

 

III.                                 COMMERCIAL
TORT CLAIMS

 

	
  Grantor

  	
   

  	
  Commercial Tort Claims

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

IV.                                LETTER
OF CREDIT RIGHTS

 

	
  Grantor

  	
   

  	
  Description of Letters of Credit

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

V.                                    WAREHOUSEMAN,
BAILEES AND OTHER THIRD PARTIES IN POSSESSION OF COLLATERAL

 

	
  Grantor

  	
   

  	
  Description of Property

  	
   

  	
  Name and Address of Third Party

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-5

 

VI.                                TIMBER

 

	
  Grantor

  	
   

  	
  Location

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-6

 

	
   

  	
  SUPPLEMENT TO SCHEDULE 5.4 TO

  
	
   

  	
  PLEDGE AND SECURITY AGREEMENT

  

 

Financing Statements:

 

	
  Grantor

  	
   

  	
  Filing Jurisdiction(s)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-7

 

SUPPLEMENT TO SCHEDULE 5.5

TO PLEDGE AND SECURITY AGREEMENT

 

	
  Name of Grantor

  	
   

  	
  Location of Equipment and Inventory

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

B-8

 

EXHIBIT B

TO PLEDGE AND SECURITY AGREEMENT

 

UNCERTIFICATED
SECURITIES CONTROL AGREEMENT

 

This Uncertificated
Securities Control Agreement dated as of [                  ],
20[   ] (the “Agreement”)
among [                       ]
(the “Pledgor”),
Goldman Sachs Credit Partners L.P., as collateral agent for the Secured Parties
under the First Lien Security Agreement (as defined herein) (the “First Lien Collateral
Agent”), Lehman Commercial Paper Inc., as collateral agent for the
Secured Parties referred to in the Second Lien Security Agreement (as defined
herein) (the “Second Lien Collateral Agent” and,
together with the First Lien Collateral Agent, the “Collateral
Agents”) and [                  ],
a [              ]
[corporation] (the “Issuer”) is delivered pursuant to (i) Section 4.2
of the Pledge and Security Agreement (First Lien) (as amended, supplemented or
otherwise modified from time to time, the “First Lien Security
Agreement”) dated as of February 22, 2008 among Aldabra Holding Sub LLC,  a Delaware limited liability company, Aldabra Sub LLC, a Delaware limited liability company, to be
merged with and into Boise Paper Holdings,
L.L.C., a Delaware limited liability company, the other Grantors
party thereto and the First Lien Collateral Agent, and (ii) Section 4.2
of the Pledge and Security Agreement (Second Lien) (as amended, supplemented or
otherwise modified from time to time, the “Second Lien Security
Agreement”) dated as of February 22, 2008 among Aldabra Holding Sub LLC, Aldabra Sub LLC, Boise Paper Holdings, L.L.C., the other Grantors party
thereto and the Second Lien Collateral Agent. 
Capitalized terms used but not defined herein shall have the meaning
assigned in the First Lien Security Agreement. 
All references herein to the “UCC”
shall mean the Uniform Commercial Code as in effect in the State of New York.

 

Section 1.  Registered
Ownership of Shares.  The Issuer
hereby confirms and agrees that as of the date hereof the Pledgor is the
registered owner of [                  ]
shares of the Issuer’s [common] stock (the “Pledged Shares”) and the Issuer
shall not change the registered owner of the Pledged Shares without the prior
written consent of the First Lien Collateral Agent (or, if the First Lien
Collateral Agent has delivered a Notice of Termination (as defined below), the
Second Lien Collateral Agent).

 

Section 2.  Instructions.  If at any time the Issuer shall receive
instructions originated by the First Lien Collateral Agent or the Second Lien
Collateral Agent (with, until the First Lien Collateral Agent shall have
delivered to the Issuer a Notice of Termination, the consent of the First Lien
Collateral Agent) relating to the Pledged Shares, the Issuer shall comply with
such instructions without further consent by the Pledgor or any other
person.  The Collateral Agents hereby
agree that it shall not give any instructions relating to the Pledged Shares
unless an Event of Default has occurred and is continuing.

 

Section 3.  Additional
Representations and Warranties of the Issuer.  The Issuer hereby represents and warrants to
the Collateral Agents:

 

(a)  It has not
entered into, and until the termination of this Agreement will not enter into,
any agreement with any other person relating the Pledged Shares pursuant to
which it has agreed to comply with instructions issued by such other person;
and

 

B-9

 

(b)  It has not
entered into, and until the termination of this Agreement will not enter into,
any agreement with the Pledgor or the Collateral Agents purporting to limit or
condition the obligation of the Issuer to comply with Instructions as set forth
in Section 2 hereof.

 

(c)  Except for
the claims and interest of the Collateral Agents and of the Pledgor in the
Pledged Shares, the Issuer does not know of any claim to, or interest in, the
Pledged Shares.  If any person asserts
any lien, encumbrance or adverse claim (including any writ, garnishment, judgment,
warrant of attachment, execution or similar process) against the Pledged
Shares, the Issuer will promptly upon obtaining notice thereof notify the
Collateral Agents and the Pledgor thereof.

 

(d)  This
Agreement is the valid and legally binding obligation of the Issuer.

 

Section 4.  Choice
of Law.  This Agreement shall be
governed by the laws of the State of New York.

 

Section 5.  Conflict
with Other Agreements.  In
the event of any conflict between this Agreement (or any portion thereof) and
any other agreement (except for the Credit Agreement and other Credit
Documents) now existing or hereafter entered into, the terms of this Agreement
shall prevail.  No amendment or
modification of this Agreement or waiver of any right hereunder shall be
binding on any party hereto unless it is in writing and is signed by all of the
parties hereto.

 

Section 6.  Voting
Rights.  Until such time as the
Collateral Agents shall otherwise instruct the Issuer in writing, the Pledgor
shall have the right to vote the Pledged Shares.  The Collateral Agent hereby agrees not to
give any such instruction unless an Event of Default has occurred and is
continuing.

 

Section 7.  Successors;
Assignment.  The terms
of this Agreement shall be binding upon, and shall inure to the benefit of, the
parties hereto and their respective corporate successors or heirs and personal
representatives who obtain such rights solely by operation of law.  The Collateral Agents may assign their rights
hereunder only (i) with the express written consent of the Issuer and (ii) by
sending written notice of such assignment to the Pledgor.

 

Section 8.  Indemnification of Issuer.  The Pledgor and the Collateral Agents hereby
agree that (a) the Issuer is released from any and all liabilities to the
Pledgor and the Collateral Agents arising from the terms of this Agreement and
the compliance of the Issuer with the terms hereof, except to the extent that
such liabilities arise from the Issuer’s negligence, willful misconduct, bad
faith or material breach of this Agreement and (b) the Pledgor, its successors
and assigns shall at all times indemnify and save harmless the Issuer from and
against any and all claims, actions and suits of others arising out of the
terms of this Agreement or the compliance of the Issuer with the terms hereof,
except to the extent that such arises from the Issuer’s negligence, willful
misconduct, bad faith or material breach of this Agreement, and from and
against any and all liabilities, actual losses, damages, reasonable,
out-of-pocket costs and expenses, charges, reasonable counsel fees and other
expenses of every nature and character arising by reason of the same, until the
termination of this Agreement.

 

Section 9.  Notices.  Any notice, request or other communication
required or permitted to be given under this Agreement shall be in writing and
deemed to have been properly given when delivered in person, or when sent by
telecopy or other electronic means and electronic confirmation of error free
receipt is received or two (2) days after being sent by certified or

 

B-10

 

registered United States
mail, return receipt requested, postage prepaid, addressed to the party at the
address set forth below.

 

Pledgor:                                                                                                    [Name and Address of Pledgor]

Attention: [                  ]

Telecopier: [                  ]

 

First Lien

Collateral Agent:                                                      Goldman Sachs Credit Partners, L.P.

c/o
Goldman, Sachs & Co. 

30 Hudson Street, 36th Floor 

Jersey City, NJ 07302 

Attention: SBD Operations 

Attention:  Andrew Caditz 

Telecopier:  (212) 428-1243  

Email: gsd.link@gs.com

 

with
a copy to:

 

Goldman
Sachs Credit Partners L.P. 

1 New York Plaza 

New York, New York  10004 

Attention:  Rob Schatzman

Telecopier:  (212) 902-3000

 

Second Lien

Collateral Agent:                                                      Lehman Commercial Paper Inc.

745
Seventh Avenue

New
York, NY 10019 

Attention: Maritza Ospina

Telecopier:  (646) 758-4648

 

Issuer:                                                                                                            [Insert Name and Address of Issuer]

Attention: [                  ]

Telecopier: [                  ]

 

Any party may change its
address for notices in the manner set forth above.

 

Section 10.  Termination.  The obligations of the Issuer to the First
Lien Collateral Agent pursuant to this Agreement shall continue in effect until
the security interest of the First Lien Collateral Agent in the Pledged Shares
has been terminated pursuant to the terms of the First Lien Security
Agreement.   The First Lien Collateral
Agent shall notify the Issuer of such termination in writing.  The obligations of the Issuer to the Second
Lien Collateral Agent pursuant to this Agreement shall continue in effect until
the security interest of the Second Lien Collateral Agent in the Pledged Shares
has been terminated pursuant to the terms of the Second Lien Security
Agreement.  The Second Lien Collateral
Agent shall notify the Issuer of such termination in writing.  Each Collateral Agent agrees to provide
Notice of Termination (“Notice of Termination”)
in substantially the form of Exhibit A hereto to the Issuer upon the
request of the Pledgor on or after the termination of the applicable Collateral
Agent’s security interest in the Pledged Shares pursuant to the terms of the
applicable Security Agreement.  The
termination of this Agreement shall not terminate the Pledged Shares or alter
the obligations of the Issuer to the Pledgor pursuant to any other agreement with
respect to the Pledged Shares.

 

B-11

 

Section 11.  Intercreditor
Agreement.  The terms and conditions of
this Agreement and the lien and security interest granted to the Collateral
Agents pursuant to this Agreement and the exercise of any right or remedy by
the Collateral Agents hereunder are subject to the terms and conditions of the
Intercreditor Agreement in all respects. 
In the event of any conflict between the terms and conditions of this
Agreement and the terms and conditions of the Intercreditor Agreement, such
conflict shall be resolved in accordance with Section 8.1 of the
Intercreditor Agreement.

 

Section 12.  Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall constitute one and the same instrument, and
any party hereto may execute this Agreement by signing and delivering one or
more counterparts.  Delivery of an
executed signature page to this Agreement by facsimile, Adobe .pdf file or
other electronic transmission shall be as effective as delivery of a manually
signed counterpart of this Agreement.

 

	
   

  	
  [NAME OF PLEDGOR],

  
	
   

  	
  as Pledgor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS 

  L.P.,

  
	
   

  	
  as First Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  
	
   

  	
  as Second Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF ISSUER],

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

B-12

 

Exhibit A

 

[Letterhead of First Lien Collateral Agent/
Second Lien Collateral Agent]

 

[Date]

 

[Name and Address of Issuer]

Attention: [                               ]

 

Re:  Termination
of Uncertificated Securities Control Agreement

 

You are hereby notified that
the Uncertificated Securities Control Agreement between you, [Name of Pledgor]
(the “Pledgor”), [First Lien Collateral
Agent/ Second Lien Collateral Agent] and the undersigned (a copy of which is
attached) is terminated and you have no further obligations to the undersigned
pursuant to such Agreement. 
Notwithstanding any previous instructions to you, you are hereby
instructed to accept all future directions with respect to Pledged Shares (as
defined in the Agreement) from the Pledgor. 
[IF THE AGREEMENT IS TO REMAIN IN EFFECT WITH RESPECT TO THE FIRST LIEN
COLLATERAL AGENT/ SECOND LIEN COLLATERAL AGENT, ADD: Note however, that the
Agreement remains in effect with respect to the First Lien Collateral Agent/
Second Lien Collateral Agent.] [IF THE AGREEMENT IS BEING TERMINATED AS TO ALL
PARTIES, ADD: Notwithstanding any previous instructions to you, you are hereby
instructed to accept all future directions with respect to the Pledged Shares
from the Pledgor.]   This notice terminates any obligations you
may have to the undersigned with respect to the Pledged Shares, however nothing
contained in this notice shall alter any obligations which you may otherwise
owe to the Pledgor pursuant to any other agreement.

 

You are instructed to
deliver a copy of this notice by facsimile transmission to the Pledgor.

 

	
   

  	
  Very truly yours,

  [Goldman Sachs Credit Partners L.P., as First

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

B-13

 

EXHIBIT C

TO PLEDGE AND SECURITY AGREEMENT

 

SECURITIES
ACCOUNT CONTROL AGREEMENT

 

This Securities Account
Control Agreement dated as of [                  ],
20[   ] (this “Agreement”) among [                                    ]
(the “Debtor”),
Goldman Sachs Credit Partners L.P., as collateral agent for the Secured Parties
referred to in the First Lien Security Agreement (as defined herein) (the “First Lien Collateral Agent”), Lehman Commercial Paper Inc.,
as collateral agent for the Secured Parties referred to in the Second Lien
Security Agreement (as defined herein) (the “Second Lien
Collateral Agent” and, together with the First Lien Collateral
Agent, the “Collateral Agents”) and [                                  ],
in its capacity as a “securities intermediary” as defined in Section 8-102
of the UCC (in such capacity, the “Securities Intermediary”) is
delivered pursuant to (i) Section 4.2 of the Pledge and Security
Agreement (First Lien) (as amended, supplemented or otherwise modified from
time to time, the “First Lien Security
Agreement”), dated as of February 22, 2008 among Aldabra Holding Sub LLC,  a Delaware limited liability company, Aldabra Sub LLC, a
Delaware limited liability company, to be merged with and into  Boise Paper Holdings, L.L.C., a Delaware limited liability
company, the other Grantors party thereto and the First Lien Collateral Agent,
and (ii) Section 4.2 of the Pledge and Security Agreement (Second
Lien) (as amended, supplemented or otherwise modified from time to time, the “Second Lien Security Agreement” and, together with the First
Lien Security Agreement, the “Security Agreements”),
dated as of February 22, 2008 among Aldabra Holding Sub LLC, Aldabra Sub LLC, Boise Paper Holdings,
L.L.C., the other Grantors party thereto and the Second Lien
Collateral Agent.  Capitalized terms used
but not defined herein shall have the meaning assigned thereto in the First
Lien Security Agreement.   All references
herein to the “UCC” shall mean the Uniform Commercial Code as in effect in
the State of New York.

 

Section 1. 
Establishment of Securities Account.  The Securities Intermediary hereby confirms
and agrees that:

 

(a)           The Securities Intermediary has established account number
[IDENTIFY ACCOUNT NUMBER] in the
name “[IDENTIFY
EXACT TITLE OF ACCOUNT]” (such account and any successor account,
the “Securities
Account”) and the Securities Intermediary shall not change the name
or account number of the Securities Account without the prior written consent
of the First Lien  Collateral Agent (or,
if the First Lien Collateral Agent has delivered a Notice of Termination (as
defined below), the Second Lien Collateral Agent);

 

(b)           All securities or other property underlying any financial
assets credited to the Securities Account shall be registered in the name of
the Securities Intermediary, indorsed to the Securities Intermediary or in
blank or credited to another securities account maintained in the name of the
Securities Intermediary and in no case will any financial asset credited to the
Securities Account be registered in the name of the Debtor, payable to the
order of the Debtor or specially indorsed to the Debtor except to the extent
the foregoing have been specially indorsed to the Securities Intermediary or in
blank;

 

(c)           All property delivered to the Securities Intermediary
pursuant to the Security Agreement will be promptly credited to the Securities
Account; and

 

C-1

 

(d)           The Securities Account is a “securities account” within
the meaning of Section 8-501 of the UCC and the Securities Intermediary is
a “securities intermediary” within the meaning of Section 8-102 of the
UCC.

 

Section 2.  “Financial
Assets” Election.  The
Securities Intermediary hereby agrees that each item of property (including,
without limitation, any  investment
property, financial asset, security, instrument, general intangible or cash)
credited to the Securities Account shall be treated as a “financial asset”
within the meaning of Section 8-102(a)(9) of the UCC.

 

Section 3. 
Control of the Securities Account.  If at any time the Securities Intermediary
shall receive any order or direction from the First Lien Collateral Agent or
the Second Lien Collateral Agent (with, until the First Lien Collateral Agent
shall have delivered to the Securities Intermediary a Notice of Termination,
the consent of the First Lien Collateral Agent) directing transfer or
redemption of any financial asset relating to the Securities Account and all
securities entitlements therein, the Securities Intermediary shall comply with
such entitlement order or direction without further consent by the Debtor or
any other person.  If the Debtor is
otherwise entitled to issue entitlement orders and such orders conflict with
any entitlement order  or direction
issued by either Collateral Agent, the Securities Intermediary shall follow the
orders issued by the applicable Collateral Agent.  In the event the Securities Intermediary
receives conflicting orders  or
directions from the First Lien Collateral Agent and the Second Lien Collateral
Agent, the Second Lien Collateral Agent hereby expressly instructs the
Securities Intermediary to follow the orders and directions originated by the
First Lien Collateral Agent.

 

Section 4. 
Subordination of Lien; Waiver of Set-Off.  In the event that the Securities Intermediary
has or subsequently obtains by agreement, by operation of law or otherwise a
security interest in the Securities Account or any security entitlement
credited thereto, the Securities Intermediary hereby agrees that such security
interest shall be subordinate to the security interest of the Collateral
Agents.  The financial assets and other
items deposited to the Securities Account will not be subject to deduction,
set-off, banker’s lien, or any other right in favor of any person other than
the Collateral Agents (except that the Securities Intermediary may set off (i) all
amounts due to the Securities Intermediary in respect of customary fees and
expenses for the routine maintenance and operation of the Securities Account
and (ii) the face amount of any checks which have been credited to such
Securities Account but are subsequently returned unpaid because of uncollected
or insufficient funds).

 

Section 5. 
Choice of Law.  This
Agreement and the Securities Account shall each be governed by the laws of the
State of New York.  Regardless of any
provision in any other agreement, for purposes of the UCC, New York shall be
deemed to be the Securities Intermediary’s jurisdiction (within the meaning of Section 8-110
of the UCC) and the Securities Account (as well as the securities entitlements
related thereto) shall be governed by the laws of the State of New York.

 

Section 6. 
Conflict with Other Agreements.

 

(a)           In the event of any conflict between this Agreement (or
any portion thereof) and any other agreement now existing or hereafter entered
into, the terms of this Agreement shall prevail;

 

C-2

 

(b)           No amendment or modification of this Agreement or waiver
of any right hereunder shall be binding on any party hereto unless it is in
writing and is signed by all of the parties hereto;

 

(c)           The Securities Intermediary hereby confirms and agrees
that:

 

(i) 
There are no other control agreements entered into between the Securities
Intermediary and the Debtor with respect to the Securities Account;

 

(ii) 
It has not entered into, and until the termination of this Agreement, will not
enter into, any agreement with any other person relating to the Securities
Account and/or any financial assets credited thereto pursuant to which it has
agreed to comply with entitlement orders (as defined in Section 8-102(a)(8) of
the UCC) of such other person; and

 

(iii) It
has not entered into, and until the termination of this Agreement, will not
enter into, any agreement with the Debtor or the Collateral Agents purporting
to limit or condition the obligation of the Securities Intermediary to comply
with entitlement orders as set forth in Section 3 hereof.

 

Section 7. 
Adverse Claims. 
Except for the claims and interest of the Collateral Agents and of the
Debtor in the Securities Account, the Securities Intermediary does not know of
any claim to, or interest in, the Securities Account or in any “financial asset”
(as defined in Section 8-102(a) of the UCC) credited thereto.  If any person asserts any lien, encumbrance
or adverse claim (including any writ, garnishment, judgment, warrant of
attachment, execution or similar process) against the Securities Account or in
any financial asset carried therein, the Securities Intermediary will promptly
notify the Collateral Agents and the Debtor thereof.

 

Section 8.  Maintenance of Securities Account.  In addition to, and not in lieu of, the
obligation of the Securities Intermediary to honor entitlement orders and
directions as agreed in Section 3 hereof, the Securities Intermediary
agrees to maintain the Securities Account as follows:

 

(a)           Notice of Sole Control.  If at any time the First Lien Collateral
Agent or the Second Lien Collateral Agent (with, until the First Lien
Collateral Agent shall have delivered to the Securities Intermediary a Notice
of Termination, the consent of the First Lien Collateral Agent) delivers to the
Securities Intermediary a Notice of Sole Control in substantially the form set
forth in Exhibit A hereto, the Securities Intermediary agrees that after
receipt of such notice, it will take all instruction with respect to the
Securities Account solely from such Collateral Agent until further notice from
such Collateral Agent.

 

(b)           Voting Rights. 
Until such time as the Securities Intermediary receives a Notice of Sole
Control pursuant to subsection (a) of this Section 8, the Debtor
shall direct the Securities Intermediary with respect to the voting of any
financial assets credited to the Securities Account or any other direction or
entitlement order with respect thereto.

 

(c)           Permitted Investments.  Until such time as the Securities
Intermediary receives a Notice of Sole Control signed by the First Lien
Collateral Agent or the Second Lien Collateral Agent (with, until the First
Lien Collateral Agent shall have delivered to the Securities Intermediary a
Notice of Termination, the consent of the First Lien Collateral Agent), the
Debtor

 

C-3

 

shall direct the Securities
Intermediary with respect to the selection of investments to be made for the
Securities Account.

 

(d)           Statements and Confirmations.  The Securities Intermediary will promptly
send copies of all statements, confirmations and other correspondence
concerning the Securities Account and/or any financial assets credited thereto
simultaneously to each of the Debtor and the Collateral Agents at the address
for each set forth in Section 12 of this Agreement.

 

(e)           Tax Reporting. 
All items of income, gain, expense and loss recognized in the Securities
Account shall be reported to the Internal Revenue Service and all state and
local taxing authorities under the name and taxpayer identification number of
the Debtor.

 

Section 9.  Representations, Warranties and Covenants of
the Securities Intermediary.  The Securities Intermediary hereby makes the
following representations, warranties and covenants:

 

(a)           The Securities Account has been established as set forth
in Section 1 above and such Securities Account will be maintained in the
manner set forth herein until termination of this Agreement; and

 

(b)           This Agreement is the valid and legally binding obligation
of the Securities Intermediary.

 

Section 10  Indemnification of Securities Intermediary.  The Debtor and the Collateral Agents hereby
agree that (a) the Securities Intermediary is released from any and all
liabilities to the Debtor and the Collateral Agents arising from the terms of
this Agreement and the compliance of the Securities Intermediary with the terms
hereof, except to the extent that such liabilities arise from the Securities
Intermediary’s negligence, willful misconduct, bad faith or material breach of
this Agreement and (b) the Debtor, its successors and assigns shall at all
times indemnify and save harmless the Securities Intermediary from and against
any and all claims, actions and suits of others arising out of the terms of
this Agreement or the compliance of the Securities Intermediary with the terms
hereof, except to the extent that such arises from the Securities Intermediary’s
negligence, willful misconduct, bad faith or material breach of this Agreement,
and from and against any and all liabilities, actual losses, damages,
reasonable, out-of-pocket costs and expenses, charges, reasonable counsel fees
and other expenses of every nature and character arising by reason of the same,
until the termination of this Agreement.

 

Section 11.  Successors; Assignment.  The terms of this Agreement shall be binding
upon, and shall inure to the benefit of, the parties hereto and their
respective corporate successors or heirs and personal representatives who
obtain such rights solely by operation of law. 
The Collateral Agents may assign their rights hereunder only (i) with
the express written consent of the Securities Intermediary and (ii) by
sending written notice of such assignment to the Debtor.

 

Section 12.  Notices.   Any notice, request or other communication
required or permitted to be given under this Agreement shall be in writing and
deemed to have been properly given when delivered in person, or when sent by
telecopy or other electronic means and electronic confirmation of error free
receipt is received or two (2) days after being sent by certified or
registered United States mail, return receipt requested, postage prepaid,
addressed to the party at the address set forth below.

 

C-4

 

Debtor:                                                                                                        [Name and Address of Debtor]

Attention: [                               ]

Telecopier: [                               ]

 

First Lien

Collateral Agent:                                                      Goldman Sachs Credit Partners, L.P.

c/o
Goldman, Sachs & Co. 

30 Hudson Street, 36th Floor 

Jersey City, NJ 07302 

Attention: SBD Operations 

Attention:  Andrew Caditz 

Telecopier:  (212) 428-1243  

Email: gsd.link@gs.com

 

with
a copy to:

 

 Goldman
Sachs Credit Partners L.P. 

1 New York Plaza 

New York, New York  10004 

Attention:  Rob Schatzman

Telecopier:  (212) 902-3000

 

Second Lien

Collateral Agent:                                                      Lehman Commercial Paper Inc.

745
Seventh Avenue

New
York, NY 10019 

Attention: Maritza Ospina

Telecopier:  (646) 758-4648

 

Securities Intermediary:                   [Name
and Address of Securities Intermediary]
 Attention: [                               ]

Telecopier: [                               ]

 

Any party may change its
address for notices in the manner set forth above.

 

Section 13.  Termination.  The obligations of the Securities
Intermediary to the First Lien Collateral Agent pursuant to this Agreement
shall continue in effect until the security interest of the First Lien
Collateral Agent in the Securities Account has been terminated pursuant to the
terms of the First Lien Security Agreement. 
The First Lien Collateral Agent shall notify the Securities Intermediary
of such termination in writing.  The
obligations of the Securities Intermediary to the Second Lien Collateral Agent
pursuant to this Agreement shall continue in effect until the security interest
of the Second Lien Collateral Agent in the Securities Account has been
terminated pursuant to the terms of the Second Lien Security Agreement. The
Second Lien Collateral Agent shall notify the Securities Intermediary of such
termination in writing.  Each Collateral
Agent agrees to provide Notice of Termination (“Notice of
Termination”) in substantially the form of Exhibit C hereto to
the Securities Intermediary upon the request of the Debtor on or after the
termination of the applicable Collateral Agent’s security interest in the
Securities Account pursuant to the terms of the applicable Security
Agreement.  The termination of this
Agreement shall not terminate the Securities Account or alter the obligations
of the Securities Intermediary to the Debtor pursuant to any other agreement
with respect to the Securities Account.

 

C-5

 

Section 14.  Intercreditor Agreement.  The terms and conditions of
this Agreement and the lien and security interest granted to the Collateral
Agents pursuant to this Agreement and the exercise of any right or remedy by
the Collateral Agents hereunder are subject to the terms and conditions of the
Intercreditor Agreement in all respects. 
In the event of any conflict between the terms and conditions of this
Agreement and the terms and conditions of the Intercreditor Agreement, such
conflict shall be resolved in accordance with Section 8.1 of the
Intercreditor Agreement.

 

Section 15.  Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall constitute one and the same instrument, and
any party hereto may execute this Agreement by signing and delivering one or
more counterparts.  Delivery of an
executed signature page to this Agreement by facsimile, Adobe .pdf file or
other electronic transmission shall be as effective as delivery of a manually
signed counterpart of this Agreement.

 

C-6

 

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

 

	
   

  	
  [DEBTOR],

  
	
   

  	
  as Debtor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS

  L.P.,

  
	
   

  	
  as First Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  
	
   

  	
  as Second Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF SECURITIES 

  INTERMEDIARY],

  
	
   

  	
  as Securities Intermediary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

C-7

 

EXHIBIT A

TO SECURITIES ACCOUNT CONTROL AGREEMENT

 

[Letterhead of the First Lien Collateral
Agent/ Second Lien Collateral Agent]

 

[Date]

 

[Name and Address of Securities Intermediary]

Attention: [                             ]

 

Re:  Notice of Sole Control

 

Ladies and Gentlemen:

 

As referenced in the
Securities Account Control Agreement dated as of [          ],
20[   ] among [Name of Debtor] (the “Debtor”),
you, [First Lien Collateral Agent/ Second Lien Collateral Agent] and the
undersigned (a copy of which is attached), we hereby give you notice of our
sole control over securities account number [                    ]
(the “Securities
Account”) and all financial assets credited thereto.  You are hereby instructed not to accept any
direction, instructions or entitlement orders with respect to the Securities
Account or the financial assets credited thereto from any person other than the
undersigned, unless otherwise ordered by a court of competent jurisdiction.

 

You are instructed to
deliver a copy of this notice by facsimile transmission to the Debtor.

 

	
   

  	
  Very truly yours,

  [Goldman Sachs Credit Partners L.P., as First

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

cc: 
[Name of Debtor]

 

C-8

 

EXHIBIT C

TO SECURITIES ACCOUNT CONTROL AGREEMENT

 

[Letterhead of First Lien Collateral Agent/
Second Lien Collateral Agent]

 

 [Date]

 

[Name and Address of Securities Intermediary]

Attention: [                        ]

 

Re:  Termination of Securities Account Control
Agreement

 

You are hereby notified that
the Securities Account Control Agreement dated as of [          ],
20[   ] among you, [Name
of Debtor] (the “Debtor”), [First
Lien Collateral Agent/ Second Lien Collateral Agent]  and the undersigned (a copy of which is attached) is
terminated and you have no further obligations to the undersigned pursuant to
such Agreement.  [IF THE CONTROL
AGREEMENT IS TO REMAIN IN EFFECT WITH RESPECT TO THE FIRST LIEN COLLATERAL AGENT/
SECOND LIEN COLLATERAL AGENT, ADD: Note however, that the Control Agreement
remains in effect with respect to the First Lien Collateral Agent/ Second Lien
Collateral Agent.] [IF THE CONTROL AGREEMENT IS BEING TERMINATED AS TO ALL
PARTIES, ADD: Notwithstanding any previous instructions to you, you are hereby
instructed to accept all future directions with respect to account number(s) [                      ]
from the Debtor.]  This notice terminates any obligations you
may have to the undersigned with respect to such accounts, however nothing
contained in this notice shall alter any obligations which you may otherwise
owe to the Debtor pursuant to
any other agreement.

 

You are instructed to
deliver a copy of this notice by facsimile transmission to the Debtor.

 

	
   

  	
  Very truly yours,

  [Goldman Sachs Credit Partners L.P., as First

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

C-9

 

EXHIBIT D

TO PLEDGE AND SECURITY AGREEMENT

 

DEPOSIT
ACCOUNT CONTROL AGREEMENT

 

This Deposit Account Control
Agreement dated as of [              ],
20[   ] (this “Agreement”) among [                 ]
(the “Debtor”),
Goldman Sachs Credit Partners L.P., as collateral agent for the Secured Parties
referred to in the First Lien Security Agreement (as defined herein) (the “First Lien Collateral Agent”), Lehman Commercial Paper Inc.,
as collateral agent for the Secured Parties referred to in the Second Lien
Security Agreement (as defined herein) (the “Second Lien
Collateral Agent” and, together with the First Lien Collateral
Agent, the “Collateral Agents”) and [                   ],
in its capacity as a “bank” as defined in Section 9-102 of the UCC (in
such capacity, the “Financial Institution”) is
delivered pursuant to (i) Section 4.2 of the Pledge and Security
Agreement (First Lien) (as amended, supplemented or otherwise modified from
time to time, the “First Lien Security
Agreement”), dated as of February 22, 2008 among Aldabra Holding Sub LLC,  a Delaware limited liability company, Aldabra Sub LLC, a
Delaware limited liability company, to be merged with and into Boise Paper Holdings, L.L.C., a Delaware limited liability
company, the other Grantors party thereto and the First Lien Collateral Agent,
and (ii) Section 4.2 of the Pledge and Security Agreement (Second
Lien) (as amended, supplemented or otherwise modified from time to time, the “Second Lien Security Agreement” and, together with the First
Lien Security Agreement, the “Security Agreements”),
dated as of February 22, 2008 among Aldabra Holding Sub LLC, Aldabra Sub LLC, Boise Paper Holdings,
L.L.C., the other Grantors party thereto and the Second Lien
Collateral Agent.  Capitalized terms used
but not defined herein shall have the meaning assigned thereto in the First
Lien Security Agreement.  All references
herein to the “UCC” shall mean the Uniform Commercial Code as in effect in the
State of New York.

 

Section 1.  Establishment of Deposit Account.  The Financial Institution hereby confirms and
agrees that:

 

(a)  The Financial
Institution has established account number [IDENTIFY
ACCOUNT NUMBER] in the name “[IDENTIFY EXACT TITLE OF ACCOUNT]”
(such account and any successor account, the “Deposit Account”) and the Financial
Institution shall not change the name or account number of the Deposit Account
without the prior written consent of the First Lien Collateral Agent (or, if
the First Lien Collateral Agent has delivered a Notice of Termination (as
defined below), the Second Lien Collateral Agent) and, prior to delivery of a
Notice of Sole Control in substantially the form set forth in Exhibit A
hereto, the Debtor; and

 

(b)  The Deposit
Account is a “deposit account” within the meaning of Section 9-102(a)(29)
of the UCC and the bank is a “Bank” within the meaning of Section 9-102 of
the UCC.

 

Section 2.  Control of the Deposit Account.  If at any time the Financial Institution
shall receive any instructions or directions originated by the First Lien
Collateral Agent or the Second Lien Collateral Agent (with, until the First
Lien Collateral Agent shall have delivered to the Financial Institution a
Notice of Termination, the consent of the First Lien Collateral Agent)
directing the disposition of funds in the Deposit Account, the Financial
Institution shall comply with such instructions or directions without further
consent by the Debtor or any other person. 
The Financial Institution hereby acknowledges that it has received
notice of the security interests of the Collateral Agents in the Deposit
Account and hereby acknowledges and consents to such liens.  If the Debtor is otherwise entitled to issue
instructions and such instructions conflict with 

 

E-10

 

any
instructions issued by either Collateral Agent, the Financial Institution shall
follow the instructions issued by the applicable Collateral Agent.  In the event the Financial Institution
receives conflicting instructions or directions from the First Lien Collateral
Agent and the Second Lien Collateral Agent, the Second Lien Collateral Agent
hereby expressly instructs the Financial Institution to follow the instructions
or directions issued by the First Lien Collateral Agent.

 

Section 3. 
Subordination of Lien; Waiver of Set-Off.  In the event that the Financial Institution
has or subsequently obtains by agreement, by operation of law or otherwise a
security interest in the Deposit Account or any funds credited thereto, the
Financial Institution hereby agrees that such security interest shall be
subordinate to the security interest of the Collateral Agents.  Money and other items credited to the Deposit
Account will not be subject to deduction, set-off, banker’s lien, or any other
right in favor of any person other than the Collateral Agents (except that the
Financial Institution may set off (i) all amounts due to the Financial
Institution in respect of customary fees and expenses for the routine
maintenance and operation of the Deposit Account and (ii) the face amount
of any checks which have been credited to such Deposit Account but are
subsequently returned unpaid because of uncollected or insufficient funds).

 

Section 4.  Choice of Law.  This Agreement and the Deposit Account shall
each be governed by the laws of the State of New York.  Regardless of any provision in any other
agreement, for purposes of the UCC, New York shall be deemed to be the
Financial Institution’s jurisdiction (within the meaning of Section 9-304
of the UCC) and the Deposit Account shall be governed by the laws of the State
of New York.

 

Section 5.  Conflict with Other Agreements.

 

(a)  In the event of
any conflict between this Agreement (or any portion thereof) and any other
agreement now existing or hereafter entered into, the terms of this Agreement
shall prevail;

 

(b)  No amendment or
modification of this Agreement or waiver of any right hereunder shall be
binding on any party hereto unless it is in writing and is signed by all of the
parties hereto; and

 

(c)  The Financial
Institution hereby confirms and agrees that:

 

(i)            There
are no other agreements entered into between the Financial Institution and the
Debtor with respect to the Deposit Account [other than                  ];
and

 

(ii)           It
has not entered into, and until the termination of this Agreement, will not
enter into, any agreement with any other person relating the Deposit Account
and/or any funds credited thereto pursuant to which it has agreed to comply
with instructions originated by such persons as contemplated by Section 9-104
of the UCC.

 

Section 6.  Adverse Claims.  Except for the claims and interest of the
Collateral Agents and the Debtor, the Financial Institution does not know of
any liens, claims or encumbrances relating to the Deposit Account.  If any person asserts any lien, encumbrance
or adverse claim (including any writ, garnishment, judgment, warrant of
attachment, execution or similar process) against the Deposit Account, the
Financial Institution will promptly notify the Collateral Agents and the Debtor
thereof.

 

E-11

 

Section 7.  Maintenance of Deposit Account.  In addition to, and not in lieu of, the
obligation of the Financial Institution to honor instructions or directions as
set forth in Section 2 hereof, the Financial Institution agrees to
maintain the Deposit Account as follows:

 

(a)  Notice of Sole
Control.  If at any time the First
Lien Collateral Agent or the Second Lien Collateral Agent (with, until the
First Lien Collateral Agent shall have delivered to the Financial Institution a
Notice of Termination, the consent of the First Lien Collateral Agent) delivers
to the Financial Institution a Notice of Sole Control in substantially the form
set forth in Exhibit A hereto, the Financial Institution agrees that after
receipt of such notice, it will take all instruction with respect to the
Deposit Account solely from such Collateral Agent until further notice from the
Collateral Agent.

 

(b)  Statements and
Confirmations.  The Financial
Institution will promptly send copies of all statements, confirmations and
other correspondence concerning the Deposit Account simultaneously to each of
the Debtor and the Collateral Agents at the address for each set forth in Section 11
of this Agreement; and

 

(c)  Tax Reporting.  All interest, if any, relating to the Deposit
Account, shall be reported to the Internal Revenue Service and all state and
local taxing authorities under the name and taxpayer identification number of
the Debtor.

 

Section 8.   Representations, Warranties and Covenants of
the Financial Institution.  The
Financial Institution hereby makes the following representations, warranties
and covenants:

 

(a)  The Deposit
Account has been established as set forth in Section 1 and such Deposit
Account will be maintained in the manner set forth herein until termination of
this Agreement; and

 

(b)  This Agreement is
the valid and legally binding obligation of the Financial Institution.

 

Section 9.   Indemnification of Financial Institution.  The Debtor and the Collateral Agents hereby
agree that (a) the Financial Institution is released from any and all
liabilities to the Debtor and the Collateral Agents arising from the terms of
this Agreement and the compliance of the Financial Institution with the terms
hereof, except to the extent that such liabilities arise from the Financial
Institution’s negligence, willful misconduct, bad faith or material breach of
this Agreement and (b) the Debtor, its successors and assigns shall at all
times indemnify and save harmless the Financial Institution from and against
any and all claims, actions and suits of others arising out of the terms of
this Agreement or the compliance of the Financial Institution with the terms
hereof, except to the extent that such arises from the Financial Institution’s
negligence, willful misconduct, bad faith or material breach of this Agreement,
and from and against any and all liabilities, actual losses, damages,
reasonable, out-of-pocket costs and expenses, charges, reasonable counsel fees
and other expenses of every nature and character arising by reason of the same,
until the termination of this Agreement.

 

Section 10.  Successors; Assignment.  The terms of this Agreement shall be binding
upon, and shall inure to the benefit of, the parties hereto and their
respective corporate successors or heirs and personal representatives who
obtain such rights solely by operation of law. 
The Collateral Agents may assign their rights hereunder only (i) with
the express written consent of the Financial Institution and (ii) by
sending written notice of such assignment to the Debtor.

 

E-12

 

Section 11.  Notices.   Any notice, request or other communication
required or permitted to be given under this Agreement shall be in writing and
deemed to have been properly given when delivered in person, or when sent by
telecopy or other electronic means and electronic confirmation of error free
receipt is received or two (2) days after being sent by certified or
registered United States mail, return receipt requested, postage prepaid,
addressed to the party at the address set forth below.

 

Debtor:                                   [Name and Address of Debtor]

Attention: [                     ]

Telecopier: [                        ]

 

First
Lien

Collateral
Agent:                  Goldman
Sachs Credit Partners, L.P.

c/o Goldman, Sachs &
Co. 

30 Hudson Street, 36th Floor 

Jersey City, NJ 07302 

Attention: SBD Operations 

Attention:  Andrew Caditz 

Telecopier:  (212) 428-1243  

Email: gsd.link@gs.com

 

with a copy to:

 

 Goldman Sachs Credit
Partners L.P. 

1 New York Plaza 

New York, New York  10004 

Attention:  Rob Schatzman

Telecopier:  (212) 902-3000

 

Second
Lien

Collateral
Agent:                  Lehman
Commercial Paper Inc.

745 Seventh Avenue

New York, NY 10019 

Attention: Maritza Ospina

Telecopier:  (646) 758-4648

 

Financial Institution:           [Name and Address of Financial Institution]

Attention: [                          ]

Telecopier: [                            ]

 

Any party may change its address for notices
in the manner set forth above.

 

Section 12.  Intercreditor Agreement.  The terms and conditions of
this Agreement and the lien and security interest granted to the Collateral
Agents pursuant to this Agreement and the exercise of any right or remedy by
the Collateral Agents hereunder are subject to the terms and conditions of the
Intercreditor Agreement in all respects. 
In the event of any conflict between the terms and conditions of this
Agreement and the terms and conditions of the Intercreditor Agreement, such
conflict shall be resolved in accordance with Section 8.1 of the
Intercreditor Agreement.

 

Section 13.  Termination.  The obligations of the Financial Institution
to the First Lien Collateral Agent pursuant to this Agreement shall continue in
effect until the security interest of the First Lien Collateral Agent in the
Deposit Account has been terminated pursuant to the terms

 

E-13

 

of the First Lien Security
Agreement and the First Lien Collateral Agent has notified the Financial
Institution of such termination in writing. 
The obligations of the Financial Institution to the Second Lien Collateral
Agent pursuant to this Agreement shall continue in effect until the security
interest of the Second Lien Collateral Agent in the Deposit Account has been
terminated pursuant to the terms of the Second Lien Security Agreement and the
Second Lien Collateral Agent has notified the Financial Institution of such
termination in writing.  Each Collateral
Agent agrees to provide Notice of Termination in substantially the form of Exhibit B
hereto (a “Notice of Termination”) to the
Financial Institution upon the request of the Debtor on or after the
termination of the applicable Collateral Agent’s security interest in the
Deposit Account pursuant to the terms of the applicable Security
Agreement.  The termination of this
Agreement shall not terminate the Deposit Account or alter the obligations of
the Financial Institution to the Debtor pursuant to any other agreement with
respect to the Deposit Account.

 

Section 14.  Counterparts.  This Agreement may be executed in any number
of counterparts, all of which shall constitute one and the same instrument, and
any party hereto may execute this Agreement by signing and delivering one or
more counterparts.  Delivery of an
executed signature page to this Agreement by facsimile, Adobe .pdf file or
other electronic transmission shall be as effective as delivery of a manually
signed counterpart of this Agreement.

 

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

 

 

	
   

  	
  [DEBTOR],

  
	
   

  	
  as
  Debtor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS

  L.P.,

  
	
   

  	
  as
  First Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  
	
   

  	
  as
  Second Lien Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

E-14

 

	
   

  	
  [NAME OF FINANCIAL INSTITUTION], 

  as Financial Institution

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

EXHIBIT A

TO DEPOSIT ACCOUNT CONTROL AGREEMENT

 

[Letterhead of First Lien Collateral Agent/ Second Lien Collateral
Agent]

 

[Date]

 

[Name and Address of Financial Institution]

Attention: [                        ]

 

Re:  Notice of Sole Control

 

Ladies and Gentlemen:

 

As referenced in the Deposit Account Control
Agreement dated as of [           ],
20[   ] among [Name of
Debtor] (the “Debtor”),
you, [First Lien Collateral Agent/ Second Lien Collateral Agent] and the
undersigned (a copy of which is attached), we hereby give you notice of our
sole control over deposit account number [                   ]
(the “Deposit
Account”) and all financial assets credited thereto.  You are hereby instructed not to accept any
direction, instructions or entitlement orders with respect to the Deposit
Account or the financial assets credited thereto from any person other than the
undersigned, unless otherwise ordered by a court of competent jurisdiction.

 

You are instructed to deliver a copy of this
notice by facsimile transmission to the Debtor.

 

	
   

  	
  Very truly yours,

  [Goldman Sachs Credit Partners L.P., as First

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

cc:  [Name of Debtor]

 

E-15

 

EXHIBIT B

TO DEPOSIT ACCOUNT CONTROL AGREEMENT

 

[Letterhead of the First Lien Collateral Agent/ Second Lien Collateral
Agent]

 

[Date]

 

[Name and Address of Financial Institution]

Attention: [                          ]

 

Re:  Termination of Deposit
Account Control Agreement

 

You are hereby notified that the Deposit
Account Control Agreement dated as of [                  ],
20[   ] among [Name of
Debtor] (the “Debtor”),
you, [First Lien Collateral Agent/ Second Lien Collateral Agent] and the
undersigned (a copy of which is attached) is terminated and you have no further
obligations to the undersigned pursuant to such Agreement.  [IF THE CONTROL AGREEMENT IS TO REMAIN IN
EFFECT WITH RESPECT TO THE FIRST LIEN COLLATERAL AGENT/ SECOND LIEN COLLATERAL
AGENT, ADD: Note however that the Control Agreement remains in effect with
respect to the First Lien Collateral Agent/ Second Lien Collateral Agent.] [IF
THE CONTROL AGREEMENT IS BEING TERMINATED AS TO ALL PARTIES, ADD:
Notwithstanding any previous instructions to you, you are hereby instructed to
accept all future directions with respect to account number(s) [                          ]
from the Debtor.]  This notice terminates any obligations you
may have to the undersigned with respect to such account, however nothing
contained in this notice shall alter any obligations which you may otherwise
owe to the Debtor pursuant to
any other agreement.

 

You are instructed to deliver a copy of this
notice by facsimile transmission to the
Debtor.

 

	
   

  	
  Very truly yours,

  [Goldman Sachs Credit Partners L.P., as First

  Lien Collateral Agent] [Lehman Commercial

  Paper, Inc., as Second Lien Collateral Agent]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

E-16

 

EXHIBIT E

TO PLEDGE AND SECURITY AGREEMENT

 

FORM OF TRADEMARK SECURITY
AGREEMENT (FIRST LIEN)

 

TRADEMARK SECURITY AGREEMENT (FIRST LIEN),
dated as of           , 20   
(as amended, restated or otherwise modified from time to time, the “Trademark
Security Agreement”), by and among ALDABRA SUB LLC, a Delaware limited
liability company (to be merged with
and into BOISE PAPER HOLDINGS,
L.L.C., a Delaware limited liability company, the “Borrower”),
ALDABRA HOLDING SUB LLC, a Delaware limited liability company (“Holdings”),
CERTAIN SUBSIDIARIES OF THE BORROWER, as Guarantors (together with the Borrower
and Holdings, collectively, the “Grantors”), and GOLDMAN SACHS CREDIT
PARTNERS L.P., in its capacity as collateral agent for the Secured Parties
(together with any successors and assigns thereto in such capacity, the “Collateral
Agent”).

 

Reference is made to the Pledge and Security Agreement
(First Lien) dated as of February 22, 2008 (as amended, supplemented or
otherwise modified from time to time, the “Security Agreement”), between
each of the Grantors and the Collateral Agent. 
The Lenders have agreed to extend credit to the Borrowers subject to the
terms and conditions set forth in the Credit Agreement dated as of February 22,
2008 (as amended, supplemented or otherwise modified from time to time (the “Credit
Agreement”)) by and among each of the Grantors, the Lenders and Goldman Sachs
Credit Partners L.P., as Administrative Agent. 
The obligations of the Lenders to extend such credit are conditioned
upon, among other things, the execution and delivery of this Agreement.  Accordingly, the parties hereto agree as
follows:

 

SECTION 1.           Defined Terms. 
Capitalized terms used in this Agreement and not otherwise defined
herein have the meanings given to them in the Security Agreement or the Credit
Agreement.  The rules of
construction specified in Article I of the Credit Agreement also apply to
this Agreement.

 

SECTION 2.           Grant of Security Interest in Trademark Collateral.  As security for the payment or performance in
full of the Obligations, each Grantor, pursuant to and in accordance with the
Security Agreement, did and hereby pledges and grants to the Collateral Agent,
its successors and assigns, for the benefit of the Secured Parties, a lien
and security interest in and to all of such Grantor’s right, title and interest
in, to and under the following assets and properties, whether now owned or at
any time hereafter created or acquired by such Grantor or in which such Grantor
now has or at any time in the future may acquire any right, title, or interest,
but not including any Excluded Assets (collectively, the “Trademark
Collateral”):

 

(a)  all of its registered and
unregistered, common law, state, United States, multinational, and foreign
trademarks, trade names, corporate names, company names, business names,
fictitious business names, service marks, certification marks, collective marks,
logos, other source or business identifiers, designs and general intangibles of
a like nature, all registrations and applications for any of the foregoing
including, but not limited to: (i) the registrations and applications, (ii) all
extensions or renewals of any of the foregoing, (iii) all of the goodwill
of the business connected with the use of and symbolized by the foregoing, (iv) the
right to sue for past, present and future infringement or dilution of any of
the foregoing or for any injury to goodwill, and (v) all Proceeds of the
foregoing, now and hereinafter due and/or payable thereunder, including,
without limitation, royalties, income, payments, claims, damages, and proceeds
of suit (“Trademarks”), including, but not limited to the registrations and
applications referred to in Schedule I attached hereto (as such schedule
may be amended or supplemented from time to time).

 

E-17

 

SECTION 3.           Supplement to the Security Agreement.  The security interests granted to the
Collateral Agent pursuant to this Trademark Security Agreement are granted in
furtherance of, and not in limitation of or expansion of, the security
interests granted to the Collateral Agent for the Secured Parties pursuant to
the Security Agreement and the rights and obligations of the parties
thereto.  Each party hereto hereby
acknowledges and affirms that the rights and remedies of the each other party
hereto with respect to the security interest in the Trademark Collateral made
and granted hereby are more fully set forth in the Security Agreement, the
terms and provisions of which are incorporated by reference herein as if fully
set forth herein.  In the event that any
provision of this Trademark Security Agreement is deemed to conflict with the
Security Agreement, the provisions of the Security Agreement shall govern.

 

SECTION 4.           Intercreditor Agreement.  The terms and conditions of this Trademark
Security Agreement and the Liens and security interests granted to the
Collateral Agent pursuant to this Trademark Security Agreement and the exercise
of any right or remedy by the Collateral Agent hereunder are subject to the
terms and conditions of the Intercreditor Agreement in all respects.  In the event of any conflict between the
terms and conditions of this Trademark Security Agreement and the terms and
conditions of the Intercreditor Agreement, such conflict shall be resolved in
accordance with Section 8.1 of the Intercreditor Agreement.

 

SECTION 5.           Termination. 
This Agreement is made to secure the satisfactory payment and
performance of the Obligations.  This
Trademark Security Agreement and the security interest granted hereby shall
automatically terminate with respect to all of a Grantor’s Obligations and any
Lien arising therefrom shall be automatically released upon termination of the
Security Agreement or release of such Grantor’s obligations thereunder.  The Collateral Agent shall, in connection
with any termination or release herein or under the Security Agreement, execute
and deliver to any Grantor as such Grantor may request, an instrument in
writing releasing the security interest in the Trademark Collateral acquired
under this Agreement suitable for filing with any office or agency in which the
Collateral Agent has filed this, or a similar, instrument. Additionally, upon
such satisfactory payment, the Collateral Agent shall reasonably cooperate with
any efforts made by a Grantor to make of record or otherwise confirm such
satisfaction including, but not limited to, the release and/or termination of
this Agreement and any security interest in, to or under the Trademark
Collateral.

 

SECTION 6.           Counterparts. 
This Trademark Security Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.

 

SECTION 7.           Miscellaneous. 
The provisions of Section 13 of the Security Agreement are hereby
incorporated by reference, mutatis mutandis.

 

[Signatures on following
page]

 

E-18

 

IN WITNESS WHEREOF, each Grantor has caused
this Trademark Security Agreement to be executed and delivered by its duly
authorized officer as of the date first set forth above.

 

 

	
   

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
  Title:

  
				

 

[Trademark Security
Agreement]

 

 

	
   

  	
  BOISE WHITE PAPER, L.L.C.

  BOISE PACKAGING &
  NEWSPRINT,

        L.L.C.

  BOISE CASCADE TRANSPORTATION

        HOLDINGS
  CORP.

  BOISE WHITE PAPER SALES CORP.

  BOISE WHITE PAPER HOLDINGS CORP.

  INTERNATIONAL FALLS POWER

        COMPANY

  MINNESOTA, DAKOTA & WESTERN

        RAILWAY
  COMPANY

  BEMIS CORPORATION

  BC CHINA CORPORATION

  B C T, INC.,

  as Grantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Trademark Security
Agreement]

 

 

Accepted
and Agreed:

 

 

GOLDMAN SACHS CREDIT PARTNERS L.P.,

 

as Collateral Agent

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Trademark Security
Agreement]

 

 

SCHEDULE
I

to

TRADEMARK SECURITY AGREEMENT

 

U.S. TRADEMARK REGISTRATIONS

 

U.S. TRADEMARK APPLICATIONS

 

F-22

 

EXHIBIT
F

TO
PLEDGE AND SECURITY AGREEMENT

 

FORM OF COPYRIGHT SECURITY
AGREEMENT (FIRST LIEN)

 

COPYRIGHT SECURITY AGREEMENT (FIRST LIEN),
dated as of           , 20   
(as amended, restated or otherwise modified from time to time, the “Copyright
Security Agreement”), by and among ALDABRA SUB LLC, a Delaware limited
liability company (to be merged with
and into BOISE PAPER HOLDINGS,
L.L.C., a Delaware limited liability company, the “Borrower”),
ALDABRA HOLDING SUB LLC, a Delaware limited liability company (“Holdings”),
CERTAIN SUBSIDIARIES OF THE BORROWER, as Guarantors (together with the Borrower
and Holdings, collectively, the “Grantors”), and GOLDMAN SACHS CREDIT
PARTNERS L.P., in its capacity as collateral agent for the Secured Parties
(together with any successors and assigns thereto in such capacity, the “Collateral
Agent”).

 

Reference is made to the Pledge and Security
Agreement (First Lien) dated as of February 22, 2008 (as amended,
supplemented or otherwise modified from time to time, the “Security
Agreement”), between each of the Grantors and the Collateral Agent.  The Lenders have agreed to extend credit to
the Borrowers subject to the terms and conditions set forth in the Credit
Agreement dated as of February 22, 2008 (as amended, supplemented or
otherwise modified from time to time (the “Credit Agreement”)) by and
among each of the Grantors, the Lenders and Goldman Sachs Credit Partners L.P.,
as Administrative Agent.  The obligations
of the Lenders to extend such credit are conditioned upon, among other things,
the execution and delivery of this Agreement.  Accordingly, the parties hereto agree as
follows:

 

SECTION 1.           Defined Terms. 
Capitalized terms used in this Agreement and not otherwise defined
herein have the meanings given to them in the Security Agreement or the Credit
Agreement.  The rules of construction
specified in Article I of the Credit Agreement also apply to this
Agreement.

 

SECTION 2.           Grant of Security Interest in Copyright Collateral.  As security for the payment or performance in
full of the Obligations, each Grantor, pursuant to and in accordance with the
Security Agreement, did and hereby pledges and grants to the Collateral Agent,
its successors and assigns, for the benefit of the Secured Parties, a lien and
security interest in and to all of such Grantor’s right, title and interest in,
to and under the following assets and properties, whether now owned or at any
time hereafter created or acquired by such Grantor or in which such Grantor now
has or at any time in the future may acquire any right, title, or interest, but not
including any Excluded Assets (collectively, the “Copyright Collateral”):

 

(a)  all
of its United
States and foreign copyrights, including but not limited to copyrights in
software and all rights in and to databases, and all Mask Works (as defined
under 17 U.S.C. 901 of the U.S. Copyright Act), whether registered or
unregistered, moral rights, reversionary interests, termination rights, and,
with respect to any and all of the foregoing: (i) all registrations and
applications therefor, (ii) all extensions and renewals thereof, (iii) all
rights corresponding thereto throughout the world, (iv) all rights to sue
for past, present and future infringements thereof, and (v) all Proceeds
of the foregoing, now and hereinafter due and/or payable thereunder, including,
without limitation, royalties, income, payments, claims, damages and proceeds
of suit (“Copyrights”), including, without limitation, the registrations and
applications required to be listed in Schedule I attached hereto (as
such schedule may be amended or supplemented from time to time); and

 

F-23

(b) all agreements
providing for the grant of any right in or to U.S. Copyrights for which Grantor
is the exclusive licensee of such U.S. Copyrights, including those referred to
on Schedule I hereto (collectively, “Copyright Licenses”) and all
rights and proceeds under such agreement.

 

SECTION 3.  Supplement to the Security Agreement.  The security interests granted to the
Collateral Agent pursuant to this Copyright Security Agreement are granted in
furtherance of, and not in limitation or expansion of, the security interests
granted to the Collateral Agent for the Secured Parties pursuant to the
Security Agreement and the rights and obligations of the parties thereto.  Each party hereto hereby acknowledges and affirms
that the rights and remedies of each other party hereto with respect to the
security interest in the Copyright Collateral made and granted hereby are more
fully set forth in the Security Agreement, the terms and provisions of which
are incorporated by reference herein as if fully set forth herein.  In the event that any provision of this
Copyright Security Agreement is deemed to conflict with the Security Agreement,
the provisions of the Security Agreement shall govern.

 

SECTION 4.  Intercreditor Agreement.  The terms and conditions of this Copyright
Security Agreement and the Liens and security interests granted to the
Collateral Agent pursuant to this Copyright Security Agreement and the exercise
of any right or remedy by the Collateral Agent hereunder are subject to the
terms and conditions of the Intercreditor Agreement in all respects.  In the event of any conflict between the
terms and conditions of this Copyright Security Agreement and the terms and
conditions of the Intercreditor Agreement, such conflict shall be resolved in
accordance with Section 8.1 of the Intercreditor Agreement.

 

SECTION 5.  Termination.  This Agreement is made to secure the
satisfactory payment and performance of the Obligations.  This Copyright Security Agreement and the
security interest granted hereby shall automatically terminate with respect to
all of a Grantor’s Obligations and any Lien arising therefrom shall be
automatically released upon termination of the Security Agreement or release of
such Grantor’s obligations thereunder. 
The Collateral Agent shall, in connection with any termination or
release herein or under the Security Agreement, execute and deliver to any
Grantor as such Grantor may request, an instrument in writing releasing the
security interest in the Copyright Collateral acquired under this Agreement
suitable for filing with any office or agency in which the Collateral Agent has
filed this, or a similar, Agreement. Additionally, upon such satisfactory
payment, the Collateral Agent shall reasonably cooperate with any efforts made
by a Grantor to make of record or otherwise confirm such satisfaction
including, but not limited to, the release and/or termination of this Agreement
and any security interest in, to or under the Copyright Collateral.

 

SECTION 6.  Counterparts.  This Copyright Security Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

 

SECTION 7.  Miscellaneous.  The provisions of Section 13 of the
Security Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signatures
on following page]

 

F-24

 

IN WITNESS WHEREOF, each
Grantor has caused this Copyright Security Agreement to be executed and
delivered by its duly authorized officer as of the date first set forth above.

 

 

	
   

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Copyright Security
Agreement]

 

 

	
   

  	
  BOISE
  WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE
  PACKAGING & NEWSPRINT,

  
	
   

  	
  L.L.C.

  
	
   

  	
  BOISE
  CASCADE TRANSPORTATION

  
	
   

  	
  HOLDINGS CORP.

  
	
   

  	
  BOISE
  WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE
  WHITE PAPER HOLDINGS CORP.

  
	
   

  	
  INTERNATIONAL
  FALLS POWER

  
	
   

  	
  COMPANY

  
	
   

  	
  MINNESOTA,
  DAKOTA & WESTERN

  
	
   

  	
  RAILWAY COMPANY

  
	
   

  	
  BEMIS
  CORPORATION

  
	
   

  	
  BC
  CHINA CORPORATION

  
	
   

  	
  B C T, INC.,

  
	
   

  	
  as Grantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Copyright Security
Agreement]

 

 

	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GOLDMAN SACHS CREDIT
  PARTNERS L.P.,

  	
   

  
	
   

  	
   

  
	
  as Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[Copyright Security Agreement]

 

 

SCHEDULE
I

to

COPYRIGHT SECURITY AGREEMENT

 

U.S.
COPYRIGHT REGISTRATIONS

 

U.S.
COPYRIGHT APPLICATIONS

 

COPYRIGHT
LICENSES:

 

G-28

 

EXHIBIT G

TO PLEDGE AND SECURITY AGREEMENT

 

FORM OF PATENT SECURITY
AGREEMENT (FIRST LIEN)

 

PATENT SECURITY AGREEMENT
(FIRST LIEN), dated as of           ,
20    (as amended, restated or otherwise modified from time to
time, the “Patent Security Agreement”), by and among ALDABRA SUB LLC, a
Delaware limited liability company (to
be merged with and into BOISE
PAPER HOLDINGS, L.L.C., a Delaware limited liability company, the “Borrower”),
ALDABRA HOLDING SUB LLC, a Delaware limited liability company (“Holdings”),
CERTAIN SUBSIDIARIES OF THE BORROWER, as Guarantors (together with the Borrower
and Holdings, collectively, the “Grantors”), and GOLDMAN SACHS CREDIT
PARTNERS L.P., in its capacity as collateral agent for the Secured Parties
(together with any successors and assigns thereto in such capacity, the “Collateral
Agent”).

 

Reference is made to the
Pledge and Security Agreement (First Lien) dated as of February 22, 2008
(as amended, supplemented or otherwise modified from time to time, the “Security
Agreement”), between each of the Grantors and the Collateral Agent.  The Lenders have agreed to extend credit to
the Borrowers subject to the terms and conditions set forth in the Credit
Agreement dated as of February 22, 2008 (as amended, supplemented or
otherwise modified from time to time (the “Credit Agreement”)) by and
among each of the Grantors, the Lenders and Goldman Sachs Credit Partners L.P.,
as Administrative Agent.  The obligations
of the Lenders to extend such credit are conditioned upon, among other things,
the execution and delivery of this Agreement. 
Accordingly, the parties hereto agree as follows:

 

SECTION 1.  Defined Terms.  Capitalized terms used in this Agreement and
not otherwise defined herein have the meanings given to them in the Security
Agreement or the Credit Agreement.  The rules of
construction specified in Article I of the Credit Agreement also apply to
this Agreement.

 

SECTION 2.  Grant of Security Interest in Patent
Collateral.  As security for the
payment or performance in full of the Obligations, each Grantor, pursuant to
and in accordance with the Security Agreement, did and hereby pledges and
grants to the Collateral Agent, its successors and assigns, for the benefit of
the Secured Parties, a lien and security interest in and to all of such Grantor’s
right, title and interest in, to and under the following assets and properties,
whether now owned  or at any time
hereafter created or acquired by such Grantor or in which such Grantor now has
or at any time in the future may acquire any right, title, or interest, but not
including any Excluded Assets (collectively, the “Patent Collateral”):

 

(a)  all of its United
States and foreign patents and certificates of invention, or similar industrial
property rights, and applications for any of the foregoing, including, but not
limited to: (i) each patent and patent application, (ii) all
reissues, divisions, continuations, continuations-in-part, extensions, renewals,
and reexaminations thereof, (iii) all rights corresponding thereto
throughout the world, (iv) all inventions and improvements described
therein, (v) all rights to sue for past, present and future infringements
thereof, (vi) all claims, damages, and proceeds of suit arising therefrom,
and (vii) all Proceeds of the foregoing, now and hereinafter due and/or
payable thereunder, including, without limitation, royalties, income, payments,
claims, damages, and proceeds of suit (“Patents”), including, but not limited
to each patent and patent application referred to on

 

G-29

 

Schedule I attached
hereto (as such schedule may be amended or supplemented from time to time).

 

SECTION 3.  Supplement to the Security Agreement.  The security interests granted to the
Collateral Agent pursuant to this Patent Security Agreement are granted in
furtherance of, and not in limitation or expansion of, the security interests
granted to the Collateral Agent for the Secured Parties pursuant to the
Security Agreement and the rights and obligations of the parties thereto.  Each party hereto hereby acknowledges and affirms
that the rights and remedies of each other party hereto with respect to the
security interest in the Patent Collateral made and granted hereby are more
fully set forth in the Security Agreement, the terms and provisions of which
are incorporated by reference herein as if fully set forth herein.  In the event that any provision of this
Patent Security Agreement is deemed to conflict with the Security Agreement,
the provisions of the Security Agreement shall govern.

 

SECTION 4.  Intercreditor. The terms and
conditions of this Patent Security Agreement and the Liens and security
interests granted to the Collateral Agent pursuant to this Patent Security
Agreement and the exercise of any right or remedy by the Collateral Agent
hereunder are subject to the terms and conditions of the Intercreditor
Agreement in all respects.  In the event of
any conflict between the terms and conditions of this Patent Security Agreement
and the terms and conditions of the Intercreditor Agreement, such conflict
shall be resolved in accordance with Section 8.1 of the Intercreditor
Agreement.

 

SECTION 5.  Termination.  This Agreement is made to secure the
satisfactory payment and performance of the Obligations.  This Patent Security Agreement and the
security interest granted hereby shall automatically terminate with respect to
all of a Grantor’s Obligations and any Lien arising therefrom shall be automatically
released upon termination of the Security Agreement or release of such Grantor’s
obligations thereunder.  The Collateral
Agent shall, in connection with any termination or release herein or under the
Security Agreement, execute and deliver to any Grantor as such Grantor may
request, an instrument in writing releasing the security interest in the Patent
Collateral acquired under this Agreement suitable for filing with any office or
agency in which the Collateral Agent has filed this, or a similar,
Agreement.  Additionally, upon such
satisfactory payment, the Collateral Agent shall reasonably cooperate with any
efforts made by a Grantor to make of record or otherwise confirm such
satisfaction including, but not limited to, the release and/or termination of
this Agreement and any security interest in, to or under the Patent Collateral.

 

SECTION 6.  Counterparts.  This Patent Security Agreement may be
executed in any number of counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

 

SECTION 7.  Miscellaneous.  The provisions of Section 13 of the
Security Agreement are hereby incorporated by reference, mutatis mutandis.

 

[Signatures
on following page]

 

G-30

 

IN WITNESS WHEREOF, each
Grantor has caused this Patent Security Agreement to be executed and delivered
by its duly authorized officer as of the date first set forth above.

 

 

	
   

  	
  ALDABRA HOLDING SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ALDABRA SUB LLC,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BOISE PAPER HOLDINGS, L.L.C.,

  
	
   

  	
  as Grantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Patent
Security Agreement]

 

 

	
   

  	
  BOISE
  WHITE PAPER, L.L.C.

  
	
   

  	
  BOISE
  PACKAGING & NEWSPRINT,

  
	
   

  	
  L.L.C.

  
	
   

  	
  BOISE
  CASCADE TRANSPORTATION

  
	
   

  	
  HOLDINGS CORP.

  
	
   

  	
  BOISE
  WHITE PAPER SALES CORP.

  
	
   

  	
  BOISE
  WHITE PAPER HOLDINGS CORP.

  
	
   

  	
  INTERNATIONAL
  FALLS POWER

  
	
   

  	
  COMPANY

  
	
   

  	
  MINNESOTA,
  DAKOTA & WESTERN

  
	
   

  	
  RAILWAY COMPANY

  
	
   

  	
  BEMIS
  CORPORATION

  
	
   

  	
  BC
  CHINA CORPORATION

  
	
   

  	
  B C T, INC.,

  
	
   

  	
  as Grantors

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Patent
Security Agreement]

 

 

	
  Accepted and Agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GOLDMAN SACHS CREDIT
  PARTNERS L.P.,

  	
   

  
	
   

  	
   

  
	
  as Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

[Patent Security Agreement]

 

 

SCHEDULE
I

to

PATENT SECURITY AGREEMENT

 

U.S.
PATENT REGISTRATIONS

 

U.S.
PATENT APPLICATIONS

 

G-1

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