Document:

Exhibit
10.2

AMENDMENT AND RESTATEMENT
AGREEMENT dated as of May 3, 2007 (this “Agreement”), among BOISE
CASCADE HOLDINGS, L.L.C. (“Holdings”), BOISE CASCADE, L.L.C. (the “Borrower”),
the LENDERS party hereto and JPMORGAN CHASE BANK, N.A. (f/k/a/ JPMorgan Chase
Bank), as Administrative Agent, under the Second Amended and Restated Credit
Agreement dated as of November 3, 2006 (as amended and in effect on the date
hereof, the “Existing Credit
Agreement”), among
Holdings, the Borrower, the lenders referred to therein and the Administrative
Agent.

WHEREAS, Holdings and the Borrower have requested, and
the Required Restatement Lenders and the Administrative Agent have agreed, upon
the terms and subject to the conditions set forth herein, that (a) the
Tranche E Lenders referred to below extend credit to the Borrower in the form
of Tranche E Term Loans on the Restatement Effective Date referred to below, in
an aggregate principal amount equal to $525,000,000, (b) the Delayed Draw
Lenders referred to below extend credit to the Borrower in the form of Delayed
Draw Term Loans in an aggregate principal amount equal to $200,000,000, and
(c) the Existing Credit Agreement be amended and restated as provided
herein;

NOW, THEREFORE, Holdings, the Borrower, the Required
Restatement Lenders and the Administrative Agent hereby agree as follows:

SECTION 1.  Defined Terms.  (a) 
Capitalized terms used but not defined herein shall have the meanings
assigned to such terms in the form of Restated Credit Agreement attached hereto
as Exhibit A.

(b)  As
used in this Agreement, the following terms have the meanings specified below:

“Delayed Draw Commitment” has the meaning
assigned to such term in the Restated Credit Agreement.  The initial amount of each Delayed Draw
Lender’s Delayed Draw Commitment is set forth on Schedule 1 hereto, or in the
Assignment and Assumption pursuant to which such Delayed Draw Lender shall have
assumed its Delayed Draw Commitment, as applicable.

“Delayed Draw Lenders” means the Persons named
on Schedule 1 hereto, and any other Person to whom a Delayed Draw Commitment is
assigned pursuant to an Assignment and Assumption.

“Existing Term Loans” means Tranche D Term
Loans that are outstanding immediately prior to the Restatement Effective Date.

“Lender Addendum” means an addendum to this
Agreement, in a form supplied by the Administrative Agent, pursuant to which a
Lender may become a party to this Agreement.

“Required Lenders” has the meaning assigned to
such term in the Existing Credit Agreement.

“Required Restatement Lenders” means, at any
time, (a) the Required Lenders and (b) each of the Tranche E Lenders
and the Delayed Draw Lenders.

“Restated Credit Agreement” means the Existing
Credit Agreement as amended and restated in the form of Exhibit A to this
Agreement.

“Restatement Effective Date” means the date on
which the conditions specified in Section 7 of this Agreement are
satisfied.

“Tranche D Lender” has the meaning assigned to
such term in the Existing Credit Agreement.

“Tranche D Term Loan” has the meaning assigned
to such term in the Existing Credit Agreement.

“Tranche E Commitment” means, with respect to
each Tranche E Lender, the commitment, if any, of such Tranche E Lender to make
a Tranche E Term Loan hereunder on the Restatement Effective Date, expressed as
an amount representing the maximum principal amount of the Tranche E Term Loan
to be made by such Tranche E Lender hereunder. 
The initial amount of each Tranche E Lender’s Tranche E Commitment is
set forth on Schedule 2 attached hereto, or in the Assignment and Assumption
pursuant to which such Tranche E Lender shall have assumed its Tranche E
Commitment, as applicable.  The aggregate
amount of the Tranche E Commitments is $525,000,000.

“Tranche E Lenders” means the Persons named on
Schedule 2 hereto, and any other Person to whom a Tranche E Commitment is
assigned pursuant to an Assignment and Assumption.

“Tranche E Term Loan” means a loan made
pursuant to Section 3 of this Agreement.

SECTION 2. 
Restatement Effective Date. (a) 
The transactions provided for in Sections 3 through 6 hereof shall
be consummated at a closing to be held on the Restatement Effective Date at the
offices of Cravath, Swaine & Moore LLP, or at such other place as the
parties hereto shall agree upon.

(b)  The Borrower shall give not
less than one Business Day’s written notice to the Administrative Agent
proposing a date as the Restatement Effective Date, and the Administrative
Agent shall send copies of such notice to the Lenders.  The Tranche E Commitments shall terminate at
5:00 p.m., New York City time, on May 3,

 2
 

2007, and Delayed Draw Commitments shall terminate at 5:00 p.m., New
York City time, on November 1, 2007, if the Restatement Effective Date shall
not have occurred at or prior to such time.

(c)  The Required Lenders hereby
waive the limitations set forth in Section 6.01 of the Existing Credit
Agreement to the extent, but only to the extent, necessary to permit the
Borrower to incur the Tranche E Term Loans on the Restatement Effective Date.  The Required Lenders also hereby waive the
requirement set forth in Section 2.11(f) of the Existing Credit Agreement that
the Borrower give three Business Days’ prior notice of the prepayment of
Tranche D Term Loans to be made on the Restatement Effective Date; provided
that such notice shall be given not later than 5:00 p.m., New York City time,
on the Business Day before the date of prepayment (it being understood that any
such notice may be revoked if the Restatement Effective Date does not occur).

(d)  Until the Restated Credit Agreement
becomes effective in accordance with the terms of this Agreement, the Existing
Credit Agreement shall remain in full force and effect and shall not be
affected hereby.

SECTION 3. 
Tranche E Term Loans; Prepayment of Tranche D Term Loans.  (a) 
Subject to the terms and conditions set forth herein, each Tranche E
Lender agrees to make a Tranche E Term Loan to the Borrower on the Restatement
Effective Date in the manner contemplated by this Section.

(b)  The Borrower shall give a
Borrowing Request to the Administrative Agent in accordance with Section 2.03
of the Restated Credit Agreement in order to request the Borrowing of Tranche E
Term Loans to be made on the Restatement Effective Date.  The provisions of Sections 2.02, 2.03, 2.06
and 2.16 of the Restated Credit Agreement shall be applicable to such requested
Borrowing, mutatis  mutandis, regardless of whether the
Restatement Effective Date occurs (and any obligations arising under any such
Section shall survive the termination of this Agreement if the Restatement
Effective Date does not occur); provided that (i) notwithstanding
the foregoing, the Borrower may request that the initial Tranche E Term
Borrowing be made as a Eurodollar Borrowing later than otherwise permitted, if
such request is made not later than 12:00 noon, New York City time, one
Business Day before the Restatement Effective Date and (ii) in such event, the
LIBO Rate for the Interest Period for such Borrowing commencing on the
Restatement Effective Date will be determined by the Administrative Agent by
such means as it determines to be reasonably appropriate to reflect market
rates for such Interest Period, rather than in accordance with the express
terms of the definition of “LIBO Rate”. 
The provisions of Section 9.04 of the Restated Credit Agreement
shall be applicable to assignments of Tranche E Commitments.

(c)  On the
Restatement Effective Date, the Borrower shall prepay in full all Tranche D
Term Loans then outstanding, together with all accrued and unpaid interest on
the Tranche D Term Loans, all amounts payable pursuant to Section 2.16 of the
Existing Credit Agreement as a result of the prepayment of the Tranche D Term
Loans (to the extent that the Borrower has received notice of such amounts) and
all other

 3
 

amounts
payable under the Existing Credit Agreement to the Tranche D Lenders in their
capacity as such (to the extent that the Borrower has received notice of such
amounts).  The rights of the Tranche D
Lenders under Sections 2.15, 2.16, 2.17 and 9.03 of the Existing Credit Agreement
shall survive such prepayment to the extent of amounts not so paid to them on
the Restatement Effective Date.

(d)  The
Borrower hereby authorizes and instructs the Administrative Agent to apply the
proceeds of the Tranche E Term Loans to prepay principal of the outstanding
Tranche D Term Loans on the Restatement Effective Date.  It is understood that the Borrower shall be
responsible for all payments required to be made pursuant to paragraph (c) of
this Section to the extent not made with such proceeds.

(e)  Each
Tranche D Lender that executes a Lender Addendum specifically in the capacity
as a Consenting Lender which does not have a Delayed Draw Commitment or a
Tranche E Commitment shall be deemed on the Restatement Effective Date to have
consented to this Agreement but shall not have any commitment to make Delayed
Draw Term Loans or Tranche E Term Loans.

SECTION
4.  Delayed Draw Commitments; Reduction of Revolving Commitments.  (a) 
Subject to the terms and conditions set forth herein, on the Restatement
Effective Date each Delayed Draw Lender shall have a Delayed Draw Commitment
under the Restated Credit Agreement.

(b)  Effective on the Restatement Effective Date, the Revolving Commitments
shall be reduced by $25,000,000 (to $450,000,000).  Such reduction shall be effected in
accordance with Section 2.08 of the Existing Credit Agreement, but without
any requirement of notice.

SECTION 5. 
Amendment of Security Documents. 
The Required Restatement Lenders hereby (a) authorize the Collateral
Agent to execute and deliver any amendments or modifications to the Security
Documents that the Collateral Agent determines to be necessary or appropriate
in connection with the Restatement Transactions and (b) consent to all such
amendments or modifications; provided that such amendments or
modifications to the Security Documents shall not become effective prior to the
Restatement Effective Date.

SECTION 6. 
Amendment and Restatement of the Existing Credit Agreement.  Effective on the Restatement Effective Date
immediately after the prepayment of the Tranche D Term Loans pursuant to
Section 3(c) above, the Existing Credit Agreement is hereby amended and
restated to read in its entirety as set forth in Exhibit A hereto.  No separate execution of the Restated Credit
Agreement shall be required.  From and
after the effectiveness of such amendment and restatement, (i) the terms “Agreement”,
“this Agreement”, “herein”, “hereinafter”, “hereto”, “hereof” and words of
similar import, as used in the Restated Credit Agreement, shall, unless the
context otherwise requires, refer to the Existing Credit Agreement as amended
and restated in the form of the Restated Credit Agreement and (ii) the term “Credit

 4
 

Agreement”, as used in the other Loan Documents, shall mean the
Restated Credit Agreement.

SECTION 7. 
Conditions.  The
consummation of the transactions set forth in Sections 3 through 6 of this
Agreement, including the obligations of the Tranche E Lenders to make Tranche E
Term Loans and the effectiveness of the Delayed Draw Commitments, shall be
subject to the satisfaction of the following conditions precedent:

(a)  The Administrative Agent (or
its counsel) shall have received from the Required Restatement Lenders and each
of Holdings and the Borrower either (i) a counterpart of this Agreement or
a Lender Addendum signed on behalf of such party or (ii) written evidence
satisfactory to the Administrative Agent (which may include telecopy or
portable document format (“PDF”) transmission of a signed signature page
of this Agreement or a Lender Addendum) that such party has signed a
counterpart of this Agreement or a Lender Addendum.

(b)  The Administrative Agent shall
have received a favorable written opinion (addressed to the Administrative
Agent and the Lenders and dated the Restatement Effective Date) of each of
(i) General Counsel of Holdings, substantially in the form of
Exhibit B-1 to this Agreement and (ii) Kirkland & Ellis LLP,
counsel for the Loan Parties, substantially in the form of Exhibit B-2 to
this Agreement.   Each of Holdings and
the Borrower hereby requests such counsel to deliver such opinions.

(c)  The Administrative Agent shall
have received such documents and certificates as the Administrative Agent or
its counsel may reasonably request relating to the organization, existence and
good standing of each Loan Party, the authorization of the Restatement
Transactions and any other legal matters relating to the Loan Parties, the Loan
Documents or the Restatement Transactions, all in form and substance reasonably
satisfactory to the Administrative Agent and its counsel.

(d)  The Administrative Agent shall
have received a certificate, dated the Restatement Effective Date and signed by
the President, a Vice President or a Financial Officer of the Borrower,
confirming compliance with the conditions set forth in paragraphs (a) and
(b) of Section 4.02 of the Restated Credit Agreement, with the same effect
as though the Restated Credit Agreement were in effect and the Tranche E Term
Loans were being made thereunder.

(e)  The Administrative Agent shall
have received all fees and other amounts due and payable on or prior to the
Restatement Effective Date, including, to the extent invoiced, reimbursement or
payment of all out-of-pocket expenses (including fees, charges and
disbursements of counsel) required to be reimbursed or paid by any Loan Party
hereunder or under any other Loan Document.

(f)  The Collateral and Guarantee
Requirement shall have been satisfied and the Administrative Agent shall have
received a completed Perfection Certificate dated the Restatement Effective
Date and signed by an executive officer or Financial Officer of the Borrower,
together with all attachments contemplated thereby, including

 5
 

the results of a search of the Uniform Commercial Code (or equivalent)
filings made with respect to the Loan Parties in the jurisdictions contemplated
by the Perfection Certificate and copies of the financing statements (or
similar documents) disclosed by such search and evidence reasonably
satisfactory to the Administrative Agent that the Liens indicated by such
financing statements (or similar documents) are permitted by Section 6.02
of the Restated Credit Agreement or have been released.  Without limiting the generality of the foregoing,
the Administrative Agent shall have received a counterpart of a Reaffirmation
Agreement, substantially in the form of Exhibit C to this Agreement, duly
executed and delivered on behalf of each Loan Party.

(g)  The Administrative Agent shall
have received evidence that the insurance required by Section 5.07 of the
Restated Credit Agreement and the Security Documents is in effect.

(h)  The Administrative Agent shall
have received from the Borrower an amount sufficient, together with proceeds of
the Tranche E Term Loans, to make the payments required to be made pursuant to
Section 3(c) hereof.

(i)  The conditions set forth in
Section 4.02 of the Restated Credit Agreement shall be satisfied with the same
effect as though the Restated Credit Agreement were in effect and the Tranche E
Term Loans were being made thereunder.

(j)  The Administrative Agent shall
have received all documentation and other information requested by it to
satisfy the requirements of bank regulatory authorities under applicable “know
your customer” and anti-money laundering rules and regulations, including the
USA Patriot Act.

The Administrative Agent shall notify the Borrower and
the Lenders of the Restatement Effective Date, and such notice shall be
conclusive and binding.  Notwithstanding
the foregoing, the consummation of the transactions set forth in
Sections 3 through 6 of this Agreement and the obligations of the Tranche
E Lenders to make Tranche E Term Loans hereunder and the effectiveness of the
Delayed Draw Commitments, in each case shall not become effective unless each
of the foregoing conditions is satisfied (or waived pursuant to Section 8
below) at or prior to 5:00 p.m., New York City time, on May 3, 2007 (and, in
the event such conditions are not so satisfied or waived, the Tranche E
Commitments and Delayed Draw Commitments shall terminate at such time).

SECTION 8. 
Effectiveness; Counterparts; Amendments; Fees.  (a) 
This Agreement shall become effective when copies hereof which bear the
signatures of Holdings, the Borrower, the Administrative Agent and the Required
Restatement Lenders shall have been received by the Administrative Agent.  This Agreement may not be amended nor may any
provision hereof be waived except pursuant to a writing signed by Holdings, the
Borrower, the Administrative Agent and the Required Restatement Lenders.  This Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute a single contract.  Delivery of an executed counterpart of a
signature page of this Agreement or a

 6
 

Lender Addendum by telecopy or PDF shall be effective as delivery of a
manually executed counterpart of this Agreement.

SECTION 9. 
No Novation.  This
Agreement shall not extinguish the Loans outstanding under the Existing Credit
Agreement.  Nothing herein contained
shall be construed as a substitution or novation of the Loans outstanding under
the Existing Credit Agreement, which (except to the extent repaid as provided
herein) shall remain outstanding after the Restatement Effective Date as
modified hereby.  Notwithstanding any
provision of this Agreement, the provisions of Sections 2.15, 2.16, 2.17 and
9.03 of the Existing Credit Agreement as in effect immediately prior to the
Restatement Effective Date will continue to be effective as to all matters
arising out of or in any way related to facts or events existing or occurring
prior to the Restatement Effective Date.

SECTION 10. 
Notices.  All notices
hereunder shall be given in accordance with the provisions of Section 9.01
of the Restated Credit Agreement.

SECTION 11. 
Applicable Law; Waiver of Jury Trial.  (A)  THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

(B) 
EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN  ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECTION 12. 
Headings.  The Section headings used herein are for
convenience of reference only, are not part of this Agreement and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Agreement.

 7

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

	
   

  	
   

  	
  BOISE CASCADE HOLDINGS, L.L.C.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  
	
   

  	
   

  	
   

  	
  /s/ Wayne Rancourt

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Wayne Rancourt

  
	
   

  	
   

  	
   

  	
  Title: Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Principal Place of Business:

  
	
   

  	
   

  	
  1111 West Jefferson Street

  
	
   

  	
   

  	
  Boise, ID 83728

  
	
   

  	
   

  	
  TIN: 20-1478587

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BOISE CASCADE, L.L.C.,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  
	
   

  	
   

  	
   

  	
  /s/ Wayne Rancourt

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Wayne Rancourt

  
	
   

  	
   

  	
   

  	
  Title: Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Principal Place of Business:

  
	
   

  	
   

  	
  1111 West Jefferson Street

  
	
   

  	
   

  	
  Boise, ID 83728

  
	
   

  	
   

  	
  TIN: 20-1496201

  

 

 8

	
  

  	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  individually and as Administrative Agent,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  by

  
	
   

  	
   

  	
   

  	
  /s/ Peter S. Predun

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Peter S. Predun

  
	
   

  	
   

  	
   

  	
  Title: Executive Director

  

 

 9
 

SIGNATURE PAGE TO THE AMENDMENT AND RESTATEMENT
AGREEMENT, DATED AS OF MAY 3, 2007 AMONG BOISE CASCADE HOLDINGS L.L.C., BOISE
CASCADE, L.L.C., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT.

	
  Name of Institution*

  	
   

  	
   

  
	
   

  
	
   

  
	
  Executing as a Tranche E Lender:

  	
   

  	
  Executing as a Delayed Draw Lender:

  
	
   

  	
   

  	
   

  
	
  by

  	
   

  	
  by

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
  Name:

  
	
   

  	
  Title:

  	
   

  	
   

  	
  Title:

  
								

 

*Each Lender must sign separately in each capacity in which it is
agreeing to the terms of this Agreement.

 10
 

 

	
  SCHEDULES AND EXHIBITS

  
	
   

  
	
   

  
	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Schedule 1 –

  	
  Delayed Draw Commitments

  
	
  Schedule 2 –

  	
  Tranche E Commitments

  
	
   

  	
   

  
	
   

  	
   

  
	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  Exhibit A –

  	
  Form of Restated Credit Agreement

  
	
  Exhibit B-1 –

  	
  Form of Opinion of General Counsel of Boise Cascade
  Holdings, L.L.C.

  
	
  Exhibit B-2 –

  	
  Form of Opinion of Kirkland & Ellis LLP

  
	
  Exhibit C –

  	
  Form of Reaffirmation Agreement

  

 

 11

EXHIBIT A

TO AMENDMENT AND RESTATEMENT AGREEMENT

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 Party Hereto

and

JPMORGAN CHASE BANK,
N.A.,

as Administrative Agent

J.P. MORGAN SECURITIES INC.

and

LEHMAN BROTHERS INC.,

as Joint Lead Arrangers
and

Joint Bookrunners

LEHMAN BROTHERS INC.,

as Syndication Agent

BANC OF AMERICA
SECURITIES LLC,

DEUTSCHE BANK SECURITIES INC.

and

GOLDMAN SACHS CREDIT
PARTNERS L.P.

as Documentation Agents

TABLE OF CONTENTS

	
  

  	
   

  	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  
	
  Definitions

  
	
   

  
	
  SECTION 1.01.

  	
   

  	
  Defined Terms

  	
   

  	
  2

  
	
  SECTION 1.02.

  	
   

  	
  Classification
  of Loans and Borrowings

  	
   

  	
  41

  
	
  SECTION 1.03.

  	
   

  	
  Terms Generally

  	
   

  	
  41

  
	
  SECTION 1.04.

  	
   

  	
  Accounting
  Terms; GAAP

  	
   

  	
  41

  
	
  SECTION 1.05.

  	
   

  	
  Certificates

  	
   

  	
  41

  

 

ARTICLE II

The Credits

	
  SECTION 2.01.

  	
   

  	
  Revolving
  Commitments; Tranche E Term Loans; Delayed Draw Commitments

  	
   

  	
  42

  
	
  SECTION 2.02.

  	
   

  	
  Loans and
  Borrowings

  	
   

  	
  42

  
	
  SECTION 2.03.

  	
   

  	
  Requests for
  Borrowings

  	
   

  	
  43

  
	
  SECTION 2.04.

  	
   

  	
  Swingline Loans

  	
   

  	
  44

  
	
  SECTION 2.05.

  	
   

  	
  Letters of
  Credit

  	
   

  	
  46

  
	
  SECTION 2.06.

  	
   

  	
  Funding of
  Borrowings

  	
   

  	
  50

  
	
  SECTION 2.07.

  	
   

  	
  Interest
  Elections

  	
   

  	
  51

  
	
  SECTION 2.08.

  	
   

  	
  Termination and
  Reduction of Commitments

  	
   

  	
  52

  
	
  SECTION 2.09.

  	
   

  	
  Repayment of
  Loans; Evidence of Debt

  	
   

  	
  53

  
	
  SECTION 2.10.

  	
   

  	
  Amortization of
  Term Loans

  	
   

  	
  54

  
	
  SECTION 2.11.

  	
   

  	
  Prepayment of
  Loans

  	
   

  	
  55

  
	
  SECTION 2.12.

  	
   

  	
  Fees

  	
   

  	
  57

  
	
  SECTION 2.13.

  	
   

  	
  Interest

  	
   

  	
  59

  
	
  SECTION 2.14.

  	
   

  	
  Alternate Rate
  of Interest

  	
   

  	
  59

  
	
  SECTION 2.15.

  	
   

  	
  Increased Costs

  	
   

  	
  60

  
	
  SECTION 2.16.

  	
   

  	
  Break Funding
  Payments

  	
   

  	
  61

  
	
  SECTION 2.17.

  	
   

  	
  Taxes

  	
   

  	
  62

  
	
  SECTION 2.18.

  	
   

  	
  Payments
  Generally; Pro Rata Treatment; Sharing of Setoffs

  	
   

  	
  63

  
	
  SECTION 2.19.

  	
   

  	
  Mitigation
  Obligations; Replacement of Lenders

  	
   

  	
  65

  
	
  SECTION 2.20.

  	
   

  	
  Increase in Revolving
  Credit Commitments

  	
   

  	
  65

  
	
  SECTION 2.21.

  	
   

  	
  Incremental Term
  Loans

  	
   

  	
  67

  

 

ARTICLE III

Representations and
Warranties

	
  SECTION 3.01.

  	
   

  	
  Organization;
  Powers

  	
   

  	
  68

  
	
  SECTION 3.02.

  	
   

  	
  Authorization;
  Enforceability

  	
   

  	
  68

  

 

 i
 

 

	
  SECTION 3.03.

  	
   

  	
  Governmental
  Approvals; No Conflicts

  	
   

  	
  69

  
	
  SECTION 3.04.

  	
   

  	
  Financial
  Condition; No Material Adverse Change

  	
   

  	
  69

  
	
  SECTION 3.05.

  	
   

  	
  Properties

  	
   

  	
  70

  
	
  SECTION 3.06.

  	
   

  	
  Litigation and
  Environmental Matters

  	
   

  	
  70

  
	
  SECTION 3.07.

  	
   

  	
  Compliance with
  Laws and Agreements

  	
   

  	
  71

  
	
  SECTION 3.08.

  	
   

  	
  Investment
  Company Status

  	
   

  	
  71

  
	
  SECTION 3.09.

  	
   

  	
  Taxes

  	
   

  	
  71

  
	
  SECTION 3.10.

  	
   

  	
  ERISA

  	
   

  	
  71

  
	
  SECTION 3.11.

  	
   

  	
  Disclosure

  	
   

  	
  72

  
	
  SECTION 3.12.

  	
   

  	
  Subsidiaries

  	
   

  	
  72

  
	
  SECTION 3.13.

  	
   

  	
  Insurance

  	
   

  	
  72

  
	
  SECTION 3.14.

  	
   

  	
  Labor Matters

  	
   

  	
  72

  
	
  SECTION 3.15.

  	
   

  	
  Solvency

  	
   

  	
  73

  
	
  SECTION 3.16.

  	
   

  	
  Senior
  Indebtedness

  	
   

  	
  73

  
	
  SECTION 3.17.

  	
   

  	
  Security
  Interests

  	
   

  	
  73

  
	
  SECTION 3.18.

  	
   

  	
  Initial RP
  Basket Amount

  	
   

  	
  73

  

 

ARTICLE IV

Conditions

	
  SECTION 4.01.

  	
   

  	
  [Intentionally
  Omitted].

  	
   

  	
  73

  
	
  SECTION 4.02.

  	
   

  	
  Each Credit
  Event

  	
   

  	
  73

  
	
  SECTION 4.03.

  	
   

  	
  Delayed Draw
  Funding

  	
   

  	
  74

  

 

ARTICLE V

Affirmative Covenants

	
  SECTION 5.01.

  	
   

  	
  Financial
  Statements and Other Information

  	
   

  	
  74

  
	
  SECTION 5.02.

  	
   

  	
  Notices of
  Material Events

  	
   

  	
  76

  
	
  SECTION 5.03.

  	
   

  	
  Information Regarding
  Collateral

  	
   

  	
  76

  
	
  SECTION 5.04.

  	
   

  	
  Existence;
  Conduct of Business

  	
   

  	
  77

  
	
  SECTION 5.05.

  	
   

  	
  Payment of
  Obligations

  	
   

  	
  77

  
	
  SECTION 5.06.

  	
   

  	
  Maintenance of
  Properties

  	
   

  	
  77

  
	
  SECTION 5.07.

  	
   

  	
  Insurance

  	
   

  	
  77

  
	
  SECTION 5.08.

  	
   

  	
  Casualty and
  Condemnation

  	
   

  	
  77

  
	
  SECTION 5.09.

  	
   

  	
  Books and
  Records; Inspection Rights

  	
   

  	
  78

  
	
  SECTION 5.10.

  	
   

  	
  Compliance with
  Laws

  	
   

  	
  78

  
	
  SECTION 5.11.

  	
   

  	
  Use of Proceeds
  and Letters of Credit

  	
   

  	
  78

  
	
  SECTION 5.12.

  	
   

  	
  Additional
  Subsidiaries

  	
   

  	
  78

  
	
  SECTION 5.13.

  	
   

  	
  Further
  Assurances

  	
   

  	
  78

  
	
  SECTION 5.14.

  	
   

  	
  Interest Rate
  Protection

  	
   

  	
  79

  
	
  SECTION 5.15.

  	
   

  	
  Fiscal Periods

  	
   

  	
  79

  
	
  SECTION 5.16.

  	
   

  	
  Post-Closing
  Requirement

  	
   

  	
  79

  

 

 ii
 

ARTICLE VI

Negative Covenants

	
  SECTION 6.01.

  	
   

  	
  Indebtedness;
  Certain Equity Securities; Designated Senior Indebtedness

  	
   

  	
  80

  
	
  SECTION 6.02.

  	
   

  	
  Liens

  	
   

  	
  83

  
	
  SECTION 6.03.

  	
   

  	
  Fundamental
  Changes

  	
   

  	
  85

  
	
  SECTION 6.04.

  	
   

  	
  Investments,
  Loans, Advances, Guarantees and Acquisitions

  	
   

  	
  85

  
	
  SECTION 6.05.

  	
   

  	
  Asset Sales

  	
   

  	
  88

  
	
  SECTION 6.06.

  	
   

  	
  Sale and
  Leaseback Transactions

  	
   

  	
  89

  
	
  SECTION 6.07.

  	
   

  	
  Swap Agreements

  	
   

  	
  89

  
	
  SECTION 6.08.

  	
   

  	
  Restricted
  Payments; Certain Payments of Indebtedness

  	
   

  	
  89

  
	
  SECTION 6.09.

  	
   

  	
  Transactions
  with Affiliates

  	
   

  	
  92

  
	
  SECTION 6.10.

  	
   

  	
  Restrictive
  Agreements

  	
   

  	
  92

  
	
  SECTION 6.11.

  	
   

  	
  Amendment of
  Material Documents

  	
   

  	
  93

  
	
  SECTION 6.12.

  	
   

  	
  Interest Expense
  Coverage Ratio

  	
   

  	
  93

  
	
  SECTION 6.13.

  	
   

  	
  Leverage Ratio

  	
   

  	
  94

  

 

ARTICLE VII

Events of Default

ARTICLE VIII

The Administrative Agent

ARTICLE IX

Miscellaneous

	
  SECTION 9.01.

  	
   

  	
  Notices

  	
   

  	
  100

  
	
  SECTION 9.02.

  	
   

  	
  Waivers;
  Amendments

  	
   

  	
  101

  
	
  SECTION 9.03.

  	
   

  	
  Expenses;
  Indemnity; Damage Waiver

  	
   

  	
  102

  
	
  SECTION 9.04.

  	
   

  	
  Successors and
  Assigns

  	
   

  	
  104

  
	
  SECTION 9.05.

  	
   

  	
  Survival

  	
   

  	
  107

  
	
  SECTION 9.06.

  	
   

  	
  Counterparts;
  Integration; Effectiveness

  	
   

  	
  108

  
	
  SECTION 9.07.

  	
   

  	
  Severability

  	
   

  	
  108

  
	
  SECTION 9.08.

  	
   

  	
  Right of Setoff

  	
   

  	
  108

  
	
  SECTION 9.09.

  	
   

  	
  Governing Law;
  Jurisdiction; Consent to Service of Process

  	
   

  	
  108

  
	
  SECTION 9.10.

  	
   

  	
  WAIVER OF JURY
  TRIAL

  	
   

  	
  109

  
	
  SECTION 9.11.

  	
   

  	
  Headings

  	
   

  	
  109

  
	
  SECTION 9.12.

  	
   

  	
  Confidentiality

  	
   

  	
  109

  
	
  SECTION 9.13.

  	
   

  	
  Interest Rate
  Limitation

  	
   

  	
  110

  
	
  SECTION 9.14.

  	
   

  	
  USA Patriot Act

  	
   

  	
  111

  

 

 iii
 

 

	
  SECTION 9.15.

  	
   

  	
  Effectiveness of
  Third Restated Credit Agreement

  	
   

  	
  111

  

 

SCHEDULES:

Schedule 2.01 —Revolving Commitments

Schedule 3.05(d) —Real Property

Schedule 3.05(e) — Purchase Rights on Mortgaged Property

Schedule 3.06 — Disclosed Matters

Schedule 3.12 — Subsidiaries

Schedule 3.13 — Insurance

Schedule 6.01 — Existing Indebtedness

Schedule 6.02(a) — Existing Borrower Liens

Schedule 6.04(a) — Existing Borrower Investments

Schedule 6.09 — Original Effective Date Agreements

Schedule 6.10 — Existing Restrictions

EXHIBITS:

Exhibit A — Form of Assignment and Assumption

Exhibit B — [Intentionally Omitted]

Exhibit C — Form of Guarantee and Collateral Agreement

Exhibit D — Form of
Perfection Certificate

 iv

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 party hereto and JPMORGAN
CHASE BANK, N.A., as Administrative Agent.

WHEREAS, Holdings, Boise Land & Timber Holdings
Corp., the Borrower, Boise Land & Timber Corp., the lenders party thereto
and JPMorgan Chase Bank, N.A. (f/k/a/ JPMorgan Chase Bank), as administrative
agent, were parties to the Credit Agreement dated as of October 29, 2004 (the “Original
Credit Agreement”), as amended and in effect immediately prior to the First
Restatement Effective Date (as defined herein);

WHEREAS, Holdings, Boise Land & Timber Holdings
Corp., the Borrower, Boise Land & Timber Corp., the Required Restatement
Lenders (as defined therein) and JPMorgan Chase Bank, N.A., as administrative
agent, entered into an Amendment and Restatement Agreement dated as of April
18, 2005 (the “First Amendment and Restatement Agreement”);

WHEREAS, pursuant to the First Amendment and
Restatement Agreement, on the First Restatement Effective Date the Original
Credit Agreement was amended and restated in the form of the Amended and
Restated Credit Agreement dated as of April 18, 2005 (the “First Restated
Credit Agreement”);

WHEREAS, Holdings, Boise Land & Timber Holdings
Corp., the Borrower, Boise Land & Timber Corp., the Required Lenders (as
defined in the First Restated Credit Agreement) and JPMorgan Chase Bank, N.A.,
as administrative agent, entered into the Waiver, Amendment and Restatement
Agreement dated as of November 3, 2006 (the “Second Amendment and
Restatement Agreement”);

WHEREAS, pursuant to the Second Amendment and
Restatement Agreement, on the Second Restatement Effective Date, the First
Restated Credit Agreement was amended and restated in the form of the Second
Amended and Restated Credit Agreement dated as of November 3, 2006 (the “Second
Restated Credit Agreement”), as amended and in effect immediately prior to
the Third Restatement Effective Date (as defined herein);

WHEREAS, Holdings, the Borrower, the Required Lenders
(as defined in the Second Restated Credit Agreement) and JPMorgan Chase Bank,
N.A., as administrative agent, entered into the Amendment and Restatement
Agreement dated as of May 3, 2007 (the “Third Amendment and Restatement
Agreement”); and

WHEREAS, pursuant to the Third Amendment and
Restatement Agreement, on the Third Restatement Effective Date, the Second
Restated Credit Agreement is amended and restated as provided herein;

NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE I

Definitions

SECTION 1.01.  Defined Terms.  As used in this Agreement, the following
terms have the meanings specified below:

“ABR”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are bearing interest at a rate determined by reference to the Alternate Base
Rate.

“Account” means, collectively, (a) an “account”
as such term is defined in the Uniform Commercial Code as in effect from time
to time in the State of New York or under other relevant law, and (b) any
rights of the Borrower or any Subsidiary to payment for goods sold or leased or
services performed, including all such rights evidenced by an account, note,
contract, security agreement, chattel paper, or other evidence of indebtedness
or security.

“Acquired Businesses” has the meaning assigned
to such term in the Original Credit Agreement.

“Acquisition” means the acquisition by the
Subsidiaries of all of the assets exclusively or primarily related to or used
exclusively or primarily in the conduct of the Operating Businesses prior to
the Original Effective Date.

“Acquisition Agreement” has the meaning
assigned to such term in the Original Credit Agreement.

“Additional Consideration Agreement” has the
meaning assigned to such term in the Acquisition Agreement.

“Additional Subordinated Debt” means unsecured
Indebtedness of the Borrower in respect of borrowed money or in respect of
promissory notes or other debt securities; provided that (a) such
Indebtedness does not require any scheduled payment of principal (including
pursuant to a sinking fund obligation) or any mandatory prepayment or
redemption or any prepayment or redemption at the option of the holders thereof
(except for prepayments or redemptions in respect of asset sales and changes in
control on terms not less favorable to the Lenders than the terms of the
Subordinated Debt as in effect on the Third Restatement Effective Date) prior
to the date that is 180 days after the later of (i) the Tranche E Maturity
Date or (ii) if such Indebtedness is incurred after the Borrower has
obtained any Incremental Term Loans or while any Commitments from Augmenting
Term Lenders to make Incremental Term Loans remain in effect, then the maturity
date for such Incremental Term Loans, unless all such Incremental Term Loans
have been repaid in full, (b) the terms of such indebtedness include
subordination and guarantee release provisions not less favorable to the
Lenders than the subordination and guarantee release provisions of the Subordinated
Debt as in effect on the Third Restatement Effective Date, (c) the other terms
(including covenants, events of default, remedies, redemption provisions and
change of control provisions, but excluding interest

 2
 

rate , any discount and
redemption premiums) of such Indebtedness are not less favorable in any
material respect to the Lenders than the terms of the Subordinated Debt as in
effect on the Third Restatement Effective Date.

“Additional Subordinated Debt Documents” means
any indenture under which any Additional Subordinated Debt is issued and all
other instruments, agreements and other documents evidencing or governing any
Additional Subordinated Debt or providing for any Guarantee or other right in
respect thereof.

“Adjusted LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, an interest rate per annum
(rounded upwards, if necessary, to the next 1/32 of 1%) equal to (a) the
LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve
Rate.

“Administrative Agent” means JPMorgan Chase
Bank, N.A., in its capacity as administrative agent for the Lenders
hereunder.  The terms “Administrative
Agent” and “Collateral Agent” are used interchangeably and shall not be
construed to distinguish separate roles, functions or duties.

“Administrative Questionnaire” means an
Administrative Questionnaire in a form supplied by the Administrative Agent.

“Affiliate” means, with respect to a specified
Person, another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person
specified; provided that, solely for purposes of Section 6.09, a
Person shall not be an “Affiliate” of Holdings or the Borrower solely by reason
of being commonly Controlled by Madison Dearborn if (a) such Person is not
Controlled by Holdings or the Borrower and (b) the Equity Interests in
such Person owned or Controlled, directly or indirectly, by Madison Dearborn
represent less than 20% of each of the aggregate ordinary voting power and the
aggregate equity value represented by such Person’s outstanding Equity
Interests.

“Agents” means the Administrative Agent and the
Syndication Agent.

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

“Applicable Percentage” means, with respect to
any Revolving Lender, the percentage of the total Revolving Commitments
represented by such Lender’s Revolving Commitment.  If the Revolving Commitments have terminated
or expired, the Applicable Percentages shall be determined based upon the
Revolving Commitments most recently in effect, giving effect to any assignments.

 3
 

“Applicable Rate” means, for any day
(a) with respect to any Tranche E Term Loan or Delayed Draw Term
Loan, (i) in the case of an ABR Loan, 0.50% per annum and (B) in the
case of a Eurodollar Loan, 1.50% per annum and (b) with respect to any ABR
Loan or Eurodollar Loan that is a Revolving Loan, the applicable rate per annum
set forth below under the caption “ABR Spread” or “Eurodollar Spread”, as the
case may be, based upon the Leverage Ratio as of the most recent determination
date; provided that prior to delivery of consolidated financial
statements for the fiscal quarter ending March 31, 2005, the Applicable
Rate in respect of Revolving Loans shall be determined by reference to
Category 1 below:

	
  Leverage Ratio:

  	
   

  	
  ABR

  Spread

  	
   

  	
  Eurodollar

  Spread

  	
   

  
	
  Category 1

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than 4.00 to
  1.00

  	
   

  	
  1.25

  	
  %

  	
  2.25

  	
  %

  
	
  Category 2

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than 3.50 to
  1.00

  but less than or equal to 4.00 to 1.00

  	
   

  	
  1.00

  	
  %

  	
  2.00

  	
  %

  
	
  Category 3

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than 3.00 to
  1.00

  but less than or equal to 3.50 to 1.00

  	
   

  	
  0.75

  	
  %

  	
  1.75

  	
  %

  
	
  Category 4

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than or equal to 3.00 to 1.00

  	
   

  	
  0.50

  	
  %

  	
  1.50

  	
  %

  

 

For purposes of the foregoing, (i) the Leverage
Ratio shall be determined as of the end of each fiscal quarter of the Borrower’s
fiscal year based upon the consolidated financial statements of Holdings delivered
pursuant to Section 5.01(a) or (b) and (ii) each change in the
Applicable Rate resulting from a change in the Leverage Ratio shall be
effective during the period commencing on and including the date of delivery to
the Administrative Agent of such consolidated financial statements indicating
such change and ending on the date immediately preceding the effective date of
the next such change; provided that the Leverage Ratio shall be deemed
to be in Category 1 (A) at any time that an Event of Default has
occurred and is continuing or (B) at the option of the Administrative
Agent or at the request of the Required Lenders if the Borrower fails to
deliver the consolidated financial statements of Holdings required to be
delivered pursuant to Section 5.01(a) or (b), during the period from the
expiration of the time for delivery thereof until such consolidated financial
statements are delivered.

“Assignment and Assumption” means an assignment
and assumption entered into by a Lender and an assignee (with the consent of
any party whose consent is required by Section 9.04), and accepted by the
Administrative Agent, in the form of Exhibit A or any other form approved
by the Administrative Agent.

“Augmenting Term Lender” has the meaning
assigned to such term in Section 2.21.

“BC Borrower” means the Borrower.

 4
 

“BC Holdings” means Holdings.

“Board” means the Board of Governors of the
Federal Reserve System of the United States of America.

“Borrower” means Boise Cascade, L.L.C., a
Delaware limited liability company that is a wholly-owned subsidiary of
Holdings, or, upon and after the Borrower Corporate Conversion, the corporation
surviving the Borrower Corporate Conversion.

“Borrower Corporate Conversion” means the
conversion of the Borrower from a Delaware limited liability company to a
Delaware corporation pursuant to a transaction (whether effected by merger or
otherwise) that (a) results in the surviving corporation having the same
assets and liabilities as those of the Borrower immediately prior to such
transaction, (b) results in shareholders of the surviving corporation that
are the same as, and that hold Equity Interests in such surviving corporation
in the same percentage interests as those held by, the members of the Borrower
immediately prior to such transaction, and (c) does not involve any other
consideration; provided that the Borrower Corporate Conversion shall
occur if and only if the Holdings Corporate Conversion has occurred.  Such transactions may be effected by a direct
conversion or by a merger with a newly formed corporate subsidiary in which the
subsidiary is the surviving entity.

“Borrowing” means (a) all Loans of the
same Class and Type, made, converted or continued on the same date and, in the
case of Eurodollar Loans, as to which a single Interest Period is in effect, or
(b) a Swingline Loan.

“Borrowing Request” means a request by the
Borrower for a Borrowing in accordance with Section 2.03.

“Business Day” means any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed; provided that, when used
in connection with a Eurodollar Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

“Capital Expenditures” means, for any period,
(a) the additions to property, plant and equipment and other capital
expenditures of Holdings, the Borrower and its consolidated Subsidiaries that
are (or would be) set forth as capital expenditures in a consolidated statement
of cash flows of Holdings for such period prepared in accordance with GAAP and
(b) the principal portion of Capital Lease Obligations incurred by
Holdings, the Borrower and its consolidated Subsidiaries during such period; provided
that 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 Proceeds of a Prepayment Event described in
clause (a) or (b) of the definition of the term “Prepayment Event” to
acquire assets as contemplated by the proviso to Section 2.11(c),
(iii) the non-cash consideration transferred or disposed of in connection
with a Permitted Operating Asset Swap, (iv) any Specified Investment and

 5
 

(v) payments
required to be made by any Loan Party under the Additional Consideration
Agreement.

“Capital Lease Obligations” of any Person means
the obligations of such Person to pay rent or other amounts under any lease of
(or other arrangement conveying the right to use) real or personal property, or
a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

“Change in Control” means (a) the
acquisition of ownership, directly or indirectly, beneficially or of record, by
any Person of any Equity Interest in the Borrower (other than the ownership by
Holdings of Equity Interests in the Borrower); (b) at any time prior to an IPO
with respect to Holdings, the failure by Madison Dearborn to own, directly or
indirectly, beneficially and of record, Equity Interests of Holdings
representing at least a majority of each of the aggregate ordinary voting power
and aggregate equity value represented by the issued and outstanding Equity
Interests of Holdings; (c) at any time after an IPO with respect to Holdings,
the acquisition of ownership, directly or indirectly, beneficially or of
record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the Securities and Exchange Commission thereunder
as in effect on the Original Effective Date), other than Madison Dearborn, of
Equity Interests representing 35% or more of either the aggregate ordinary
voting power or the aggregate equity value represented by the issued and
outstanding Equity Interests of Holdings; (d) after an IPO with respect to
Holdings, occupation of a majority of the seats (other than vacant seats) on
the board of directors of Holdings by Persons who were neither nominated by the
board of directors of Holdings nor appointed by directors so nominated;
(e) the acquisition, by reason of a written agreement, of direct or indirect
Control of Holdings or the Borrower by any Person or group other than Madison
Dearborn; or (f) the occurrence of a “Change of Control”, as defined in
the Subordinated Debt Documents or the Senior Unsecured Debt Documents.

“Change in Law” means (a) the adoption of
any law, rule or regulation after the Original Effective Date, (b) any
change in any law, rule or regulation or in the interpretation or application
thereof by any Governmental Authority after the Original Effective Date or
(c) compliance by any Lender or any Issuing Bank (or, for purposes of
Section 2.15(b), by any lending office of such Lender or by such Lender’s
or such Issuing Bank’s holding company, if any) with any request, guideline or
directive (whether or not having the force of law) of any Governmental
Authority made or issued after the Original Effective Date.

“Class”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing,
are Revolving Loans, Tranche E Term Loans, Delayed Draw Term Loans, or
Swingline Loans and, when used in reference to any Commitment, refers to
whether such Commitment is a Revolving Commitment, Tranche E Commitment or
Delayed Draw Commitment, and, when used in

 6
 

reference to any Lender,
refers to whether such Lender has a Loan or Commitment with respect to a
particular Class.

“Code” means the Internal Revenue Code of 1986,
as amended from time to time.

“Collateral” means any and all “Collateral”, as
defined in any applicable Security Document.

“Collateral Agent” means JPMorgan Chase Bank,
N.A., as collateral agent under the Security Documents.  The terms “Administrative Agent” and “Collateral
Agent” are used interchangeably and shall not be construed to distinguish
separate roles, functions or duties.

“Collateral Agreement” means the Guarantee and
Collateral Agreement among each of Holdings, the Borrower, the Subsidiary Loan
Parties and the Administrative Agent, substantially in the form of
Exhibit C.

“Collateral and Guarantee Requirement” means
the requirement that:

(a) the Administrative Agent shall have received
from each Loan Party either (i) a counterpart of the Collateral Agreement
duly executed and delivered on behalf of such Loan Party or (ii) in the
case of any Person that becomes a Loan Party after the Original Effective Date,
a supplement to the Collateral Agreement, in the form specified therein, duly
executed and delivered on behalf of such Loan Party;

(b) all outstanding Equity Interests of the Borrower
and each Subsidiary owned by or on behalf of any Loan Party shall have been
pledged pursuant to the Collateral Agreement (except that the Loan Parties
shall not be required to pledge more than 65% of the outstanding voting Equity
Interests of any Foreign Subsidiary that is not a Loan Party) and the Administrative
Agent shall have received certificates or other instruments representing all
such Equity Interests, together with stock powers or other instruments of
transfer with respect thereto endorsed in blank;

(c) all Indebtedness of each of Holdings, the Borrower
and the Subsidiaries that is owing to any Loan Party shall be evidenced by a
promissory note and shall have been pledged pursuant to the Collateral
Agreement and the Administrative Agent shall have received all such promissory
notes, together with instruments of transfer with respect thereto endorsed in
blank; provided that Indebtedness of any such Person owing to a Loan
Party shall not be required to be evidenced by a promissory note (but shall
nevertheless constitute Collateral) if the aggregate principal amount of
outstanding Indebtedness of such Person owing to Loan Parties and not so
evidenced by promissory notes does not exceed $5,000,000;

 7
 

(d) all documents and instruments, including Uniform
Commercial Code financing statements, required by law or reasonably requested
by the Administrative Agent to be filed, registered or recorded to create the
Liens intended to be created by the Collateral Agreement and perfect such Liens
to the extent required by, and with the priority required by, the Collateral
Agreement, shall have been filed, registered or recorded or delivered to the
Administrative Agent for filing, registration or recording;

(e) the Administrative Agent shall have received
(i) counterparts of a Mortgage with respect to each Mortgaged Property
duly executed and delivered by the record owner of such Mortgaged Property,
(ii) a policy or policies of title insurance issued by a nationally
recognized title insurance company insuring the Lien of each such Mortgage as a
valid first Lien on the Mortgaged Property described therein, free of any other
Liens except as expressly permitted by Section 6.02, together with such
endorsements, coinsurance and reinsurance as the Administrative Agent or the
Required Lenders may reasonably request, and (iii) such surveys,
abstracts, appraisals, legal opinions and other documents as the Administrative
Agent or the Required Lenders may reasonably request with respect to any such
Mortgage or Mortgaged Property;

(f) each Loan Party shall have obtained all material
consents and approvals required to be obtained by it in connection with the
execution and delivery of all Security Documents to which it is a party, the
performance of its obligations thereunder and the granting by it of the Liens
thereunder; and

(g) the Administrative Agent shall be reasonably
satisfied that all warehousemen, bailees, agents or processors which have in
their possession or control any Inventory with a fair market value in excess of
$5,000,000 at any one time have been notified of the Liens created by the
Security Documents in such Inventory and that the Borrower shall have used
reasonable efforts to cause each such warehouseman, bailee, agent or processor
to (i) acknowledge in writing, in form and substance satisfactory to the
Administrative Agent, that such warehouseman, agent, bailee or processor holds
the Inventory for the benefit of the Administrative Agent subject to the Liens
created by the Security Documents and shall act upon the instructions of the
Administrative Agent without further consent from any Loan Party, and
(ii) agree to waive and release any Lien held by it with respect to such
Inventory, whether arising by operation of law or otherwise.

“Commitment” means a Revolving Commitment,
Tranche E Commitment, Delayed Draw Term Commitment, or any combination
thereof (as the context requires).

“Committed Swingline Lender” means JPMorgan
Chase Bank, N.A., in its capacity as lender of Committed Swingline Loans
hereunder.

 8
 

“Committed Swingline Loan” means a Loan made by
the Committed Swingline Lender pursuant to Section 2.04(a).

“Consolidated Cash Interest Expense” means, for
any period, the excess of (a) the sum (without duplication) of
(i) the interest expense (including imputed interest expense in respect of
Capital Lease Obligations) of Holdings, the Borrower and the Subsidiaries for
such period, determined on a consolidated basis in accordance with GAAP,
(ii) any cash payments made during such period in respect of obligations
referred to in clause (b)(iii) below that were amortized or accrued in a
previous period and (iii) interest-equivalent costs associated with any
Permitted Receivables Financing, whether accounted for as interest expense or
loss on the sale of Receivables, minus (b) the sum of (i) interest
income of Holdings, the Borrower and the Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP, (ii) to the
extent included in such consolidated interest expense for such period, non-cash
amounts attributable to amortization of financing costs paid in a previous
period, plus (iii) to the extent included in such consolidated interest
expense for such period, non-cash amounts attributable to amortization of
debt discounts or accrued interest payable in kind for such period; provided
that from and after the Second Restatement Effective Date, interest expense and
interest income on Indebtedness between Holdings, the Borrower and their
respective subsidiaries, on the one hand, and Boise Land & Timber Holdings
Corp., Boise Land & Timber Corp. and their subsidiaries on the other hand,
shall be excluded from the determination of Consolidated Cash Interest Expense.

“Consolidated Coverage Ratio” as of any date of
determination means the ratio of (a) the aggregate amount of Consolidated
EBITDA for the Measurement Period to (b) Consolidated Interest Expense for such
Measurement Period; provided, however, that:

(1)  if
Holdings, the Borrower or any Subsidiary has incurred any Indebtedness since
the beginning of such period that remains outstanding or if the transaction
giving rise to the need to calculate the Consolidated Coverage Ratio is an
incurrence of Indebtedness, or both, Consolidated EBITDA and Consolidated
Interest Expense for such period shall be calculated after giving effect on a
pro forma basis to such Indebtedness as if such Indebtedness had been incurred
on the first day of such period;

(2)  if
Holdings, the Borrower or any Subsidiary has repaid, repurchased, defeased or
otherwise discharged any Indebtedness since the beginning of such period or if
any Indebtedness is to be repaid, repurchased, defeased or otherwise discharged
(in each case other than Indebtedness incurred under any revolving credit
facility unless such Indebtedness has been permanently repaid and has not been
replaced) on the date of the transaction giving rise to the need to calculate
the Consolidated Coverage Ratio, Consolidated EBITDA and Consolidated Interest
Expense for such period shall be calculated on a pro forma basis as if such
discharge had occurred on the first day of such period and as if Holdings, the
Borrower or such  Subsidiary had not
earned the interest income actually earned

 9
 

during such period in respect of cash or Permitted Investments used to
repay, repurchase, defease or otherwise discharge such Indebtedness;

(3)  if since
the beginning of such period Holdings, the Borrower or any  Subsidiary shall have made any Material
Disposition, Consolidated EBITDA for such period shall be reduced by an amount
equal to Consolidated EBITDA (if positive) directly attributable to the assets
which are the subject of such Material Disposition for such period, or
increased by an amount equal to Consolidated EBITDA (if negative), directly
attributable thereto for such period and Consolidated Interest Expense for such
period shall be reduced by an amount equal to the Consolidated Interest Expense
directly attributable to any Indebtedness of Holdings, the Borrower or any
Subsidiary repaid, repurchased, defeased or otherwise discharged with respect
to Holdings, the Borrower and the continuing Subsidiaries in connection with
such Material Disposition for such period (or, if the Equity Interests of any
Subsidiary are sold, the Consolidated Interest Expense for such period directly
attributable to the Indebtedness of such 
Subsidiary to the extent Holdings, the Borrower and the continuing
Subsidiaries are no longer liable for such Indebtedness after such sale);

(4)  if since
the beginning of such period Holdings, the Borrower or any  Subsidiary (by merger or otherwise) shall
have made an investment in any 
Subsidiary (or any Person which becomes a Subsidiary) or an acquisition
of assets, including any acquisition of assets occurring in connection with a
transaction requiring a calculation to be made hereunder, which constitutes all
or substantially all of an operating unit of a business, Consolidated EBITDA
and Consolidated Interest Expense for such period shall be calculated after
giving pro  forma effect thereto (including the incurrence of any
Indebtedness) as if such Investment or acquisition had occurred on the first
day of such period;

(5)  if since
the beginning of such period any Person (that subsequently became a Subsidiary
or was merged with or into Holdings, the Borrower or any  Subsidiary since the beginning of such
period) shall have made any Material Disposition, any investment or acquisition
of assets that would have required an adjustment pursuant to clause (3) or (4)
above if made by Holdings, the Borrower or a Subsidiary during such period,
Consolidated EBITDA and Consolidated Interest Expense for such period shall be
calculated after giving pro forma effect thereto as if such Material
Disposition, investment or acquisition had occurred on the first day of such
period; and

(6) 
Consolidated EBITDA and Consolidated Interest Expense of discontinued
operations recorded on or after the date such operations are classified as
discontinued in accordance with GAAP shall be excluded.

For purposes of this definition, whenever pro  forma
effect is to be given to an acquisition of assets, the amount of income or
earnings relating thereto and the amount of Consolidated Interest Expense
associated with any Indebtedness incurred in connection therewith, the pro
forma calculations shall be determined in good faith by a responsible

 10
 

financial or accounting officer of the Borrower and
may include Pro Forma Cost Savings. If any Indebtedness bears a floating rate
of interest and is being given pro  forma effect, the interest on
such Indebtedness shall be calculated as if the rate in effect on the date of
determination had been the applicable rate for the entire period (taking into
account any interest rate Swap Agreement applicable to such Indebtedness if
such interest rate Swap Agreement has a remaining term in excess of 12 months).

If any Indebtedness is incurred under a revolving
credit facility and is being given pro forma effect, the interest on such
Indebtedness shall be calculated based on the average daily balance of such
Indebtedness for the four fiscal quarters subject to the pro forma calculation.

“Consolidated EBITDA” means, for any period,
the sum of Consolidated Net Income for such period, plus the following, without
duplication, to the extent deducted in calculating such Consolidated Net
Income:

(a) all income tax expense of Holdings, the Borrower
and the Subsidiaries, on a consolidated basis;

(b) all interest expense of Holdings, the Borrower and
the Subsidiaries, on a consolidated basis;

(c) depreciation, depletion and amortization expense
of Holdings, the Borrower and the Subsidiaries, on a consolidated basis (in
each case excluding amortization expense attributable to a prepaid item that
was paid in cash in a prior period);

(d) any management fees paid to Madison Dearborn in
such period, not to exceed $2,000,000 for any consecutive four-quarter period;

(e) any non-recurring costs and expenses incurred in
connection with the Acquisition, including non-recurring costs and expenses
incurred in connection with the Financing Transactions and severance costs,
facility closure and related restructuring costs incurred within 18 months of
the Original Effective Date, in an aggregate amount for all periods not to
exceed $25,000,000;

(f) any non-recurring costs and expenses related to
(i) any public or private offering of Equity Interests of Holdings or the
Borrower, (ii) any investment or acquisition permitted by Section 6.04 or
(iii) recapitalizations or Indebtedness permitted by Section 6.01; and

(g)(i) all other non-cash charges of Holdings,
the Borrower and the  Subsidiaries, on a
consolidated basis (in each case excluding any such non-cash charge to the
extent that it represents an accrual of or reserve for cash expenditures in any
future period) less (ii) all non-cash items of income of Holdings, the Borrower
and the Subsidiaries, on a consolidated basis (in each case other than accruals
of revenue in the ordinary course of business and other than

 11
 

reversals (to the extent made without any payment in
cash) of reserves previously excluded from clause (g)(i)),

in each case for such period.  Notwithstanding the foregoing, the provision
for taxes based on the income or profits of, and the depreciation, amortization
and depletion and non-cash charges of, a Subsidiary shall be added to
Consolidated Net Income to compute Consolidated EBITDA only to the extent (and
in the same proportion, including by reason of minority interests) that the net
income or loss of such Subsidiary was included in calculating Consolidated Net
Income for any purpose and, with respect to a Subsidiary that is not a
Subsidiary Loan Party, only if a corresponding amount would be permitted at the
date of determination to be dividended to a Loan Party by such Subsidiary
without prior approval (that has not been obtained), pursuant to the terms of
its charter and all agreements, instruments, judgments, decrees, orders,
statutes, rules and governmental regulations applicable to such Subsidiary or
its stockholders.  Solely for purposes of
calculating the Leverage Ratio or Senior Leverage Ratio, if during any period
(each, a “Reference Period”) (or, in the case of pro forma calculations,
during the period from the last day of such Reference Period to and including
the date as of which such calculation is made) the Borrower or any Subsidiary
shall have made a Material Disposition or Material Acquisition (other than the
Acquisition), their Consolidated EBITDA for such Reference Period shall be
calculated after giving pro  forma effect thereto as if such
Material Disposition or Material Acquisition occurred on the first day of such
Reference Period; provided that such pro  forma
calculations shall give effect to operating expense reductions and other cost
savings only to the extent that such reductions and savings would be permitted
to be reflected in a pro forma financial statement prepared in compliance with
Regulation S-X.  As used in this
definition, “Material Acquisition” means any Permitted Acquisition or
series of related Permitted Acquisitions that involves consideration (including
any non-cash consideration) with a fair market value in excess of $20,000,000;
and “Material Disposition” means any disposition of property or series
of related dispositions of property or assets (including the Equity Interests
of a Subsidiary) that involves consideration (including any non-cash
consideration) with a fair market value in excess of $20,000,000.

For purposes of this Agreement, Consolidated EBITDA
for any Reference Period that includes any period of time prior to the
Acquisition shall be calculated after giving pro  forma effect for
such period to the Acquisition and the other categories of adjustments to “EBITDA”
used to calculate pro forma “Adjusted EBITDA” as set forth in footnote 7 under
the section of the Offering Memorandum entitled “Offering memorandum
summary—Summary historical and pro forma condensed combined financial data”
(without duplication of amounts otherwise included in the calculation of “EBITDA”
as presented in the Offering Memorandum), it being understood that, with
respect to the adjustment related to the Additional Consideration Agreement,
the adjustment shall be for a deemed one-time receipt by the Borrower of
$40,233,000 pursuant to such agreement during the relevant Reference Period
until such time as such Reference Period includes an actual payment or receipt
pursuant to such agreement, at which point such actual payment or receipt shall
be used in place of such deemed receipt.

 12
 

“Consolidated Interest Expense” means, for any
period, the total interest expense of Holdings, the Borrower and the
consolidated Subsidiaries, plus, to the extent not included in such total
interest expense, and to the extent incurred by Holdings, the Borrower or the
Subsidiaries, without duplication:

(a)  interest expense attributable to Capital
Lease Obligations;

(b)  amortization of debt discount and debt
issuance cost (other than amortization of debt issuance costs in respect of
Indebtedness incurred in connection with the Acquisition);

(c)  capitalized interest;

(d)  non-cash interest expense;

(e)  commissions, discounts and other fees and
charges owed with respect to letters of credit and bankers’ acceptance
financing;

(f)  net payments or receipts (if any) pursuant to
interest rate Swap Agreements;

(g)  dividends accrued in respect of all
Disqualified Stock of any Loan Party and all preferred stock of any Subsidiary
that is not a Loan Party, in each case held by Persons other than Holdings, the
Borrower or a Subsidiary (other than dividends payable solely in Equity
Interests (other than Disqualified Stock) of Holdings);

(h)  interest incurred in connection with
investments in discontinued operations;

(i)  interest accruing on any Indebtedness of any
Person (other than  Holdings, the
Borrower and the Subsidiaries) to the extent such Indebtedness is Guaranteed by
(or secured by the assets of) such Person or any subsidiary of such Person; and

(j)  the cash contributions to any employee stock
ownership plan or similar trust to the extent such contributions are used by
such plan or trust to pay interest or fees to any Person (other than Holdings,
the Borrower or a Subsidiary) in connection with Indebtedness incurred by such
plan or trust.

“Consolidated Net Income” means, for any
period, the net income or loss of Holdings, the Borrower and the Subsidiaries
for such period determined on a consolidated basis in accordance with GAAP; provided
that there shall not be included in such Consolidated Net Income:

(a) any net income of any Person (other than Holdings
and the Borrower) if such Person is not a Subsidiary, except that, subject to
the exclusion contained in clause (c) below, the Borrower’s equity in the net
income of any such Person

 13
 

for such period shall be included in such Consolidated
Net Income up to the aggregate amount of cash actually distributed by such
Person during such period to the Borrower or a Subsidiary as a dividend or
other distribution (subject, in the case of a dividend or other distribution
paid to a Subsidiary, to the limitations contained in clause (b) below);

(b) any net income of any Subsidiary that is not a
Subsidiary Loan Party if such Subsidiary is subject to restrictions, directly
or indirectly, on the payment of dividends or the making of distributions by
such Subsidiary, directly or indirectly, to the Borrower, except that:

(i) subject to the exclusion contained in clause (c)
below, the Borrower’s equity in the net income of any such Subsidiary for such
period shall be included in such Consolidated Net Income to the extent that the
net income of such Subsidiary would be permitted at the date of determination
to be dividended to the Borrower without any prior approval or waiver (that has
not been obtained) pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules or governmental
regulations applicable to that Subsidiary or its stockholders (subject, in the
case of a dividend or other distribution paid to another Subsidiary, to the
limitation contained in this clause (i)) and

(ii) the Borrower’s equity in a net loss of any such
Subsidiary for such period shall be included in determining such Consolidated
Net Income;

(c) any gain or loss realized upon the sale or other
disposition of any assets of Holdings, the Borrower or any Subsidiary or any
other Person (including pursuant to any sale-and-leaseback arrangement) which
are not sold or otherwise disposed of in the ordinary course of business and
any gain (or loss) realized upon the sale or other disposition of any Equity
Interests of any Person;

(d) extraordinary gains or losses;

(e) any unrealized Statement of Financial Accounting
Standards No. 133 gain or loss in respect of any Swap Agreement;

(f) any non-cash gains or losses attributable to the
early extinguishment of Indebtedness;

(g) unusual or non-recurring non-cash gains or losses;

(h) any non-cash goodwill impairment charges resulting
from the application of Statement of Financial Accounting Standards No. 142;

(i) any non-cash compensation charge or expense,
including any such charge or expense arising from grants of stock options or
restricted stock or other

 14
 

equity-incentive programs for the benefit of officers,
directors and employees of Holdings, the Borrower or any Subsidiary; and

(j) from and after the Second Restatement Effective
Date, any interest expense and interest income on indebtedness between
Holdings, the Borrower and their respective subsidiaries, on the one hand, and
Boise Land & Timber Holdings Corp., Boise Land & Timber Corp. and their
respective subsidiaries, on the other hand;

in each case for such period. Notwithstanding the
foregoing, any amounts received and any amounts paid by Holdings, the Borrower
or any Subsidiary under the Additional Consideration Agreement during such
period shall be added and subtracted, respectively, in calculating Consolidated
Net Income, without duplication.

“Control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person through the right to exercise voting power or by
contract.  “Controlling” and “Controlled”
have meanings correlative thereto.

“Default” means any event or condition which
constitutes an Event of Default or which upon notice, lapse of time or both
would, unless cured or waived, become an Event of Default.

“Delayed Draw Commitment” means, with respect
to each Lender, the commitment, if any, of such Lender to make a Delayed Draw
Term Loan hereunder on a single date on or before November 1, 2007, expressed
as an amount representing the maximum principal amount of Delayed Draw Terms to
be made by such Lender hereunder, as such commitment may be (a) reduced from
time to time pursuant to Section 2.08 and (b) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section
9.04.  The initial amount of each Lender’s
Delayed Draw Commitment is set forth on Schedule 2 to the Third
Amendment and Restatement Agreement or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Delayed Draw Commitment,
as the case may be.  The initial
aggregate amount of the Lenders’ Delayed Draw Commitments is $200,000,000.

“Delayed Draw Lender” means a Lender with a
Delayed Draw Commitment or an outstanding Delayed Draw Term Loan, in its
capacity as such.

“Delayed Draw Maturity Date” means
April 30, 2014.

“Delayed Draw Term Loan” means a Loan made
pursuant to Section 2.01(c).

“Disclosed Matters” means the actions, suits
and proceedings and the environmental matters disclosed in Schedule 3.06.

“Disqualified Stock” means, with respect to any
Person, any Equity Interest which by its terms (or by the terms of any security
into which it is convertible or

 15

for which it is
exchangeable at the option of the holder) or upon the happening of any event:

(a)  matures or is mandatorily redeemable (other
than redeemable only for any Equity Interest of such Person which is not itself
Disqualified Stock) pursuant to a sinking fund obligation or otherwise;

(b)  is convertible or exchangeable at the option
of the holder for Indebtedness or Disqualified Stock; or

(c)  is mandatorily redeemable or must be
purchased upon the occurrence of certain events or otherwise, in whole or in
part;

in each case on or prior to 180 days after the Tranche
E Maturity Date; provided, however, that any Equity Interest that
would not constitute Disqualified Stock but for provisions thereof giving
holders thereof the right to require such Person to purchase or redeem such
Equity Interest upon the occurrence of an “asset sale” or “change of control”
occurring prior to the first anniversary of the Equity Interest shall not
constitute Disqualified Stock if:

(i) the “asset
sale” or “change of control” provisions applicable to such Equity Interest are
not more favorable to the holders of such Equity Interest than the terms
applicable to the Subordinated Debt as in effect on the Third Restatement
Effective Date; and

(ii) any such
requirement only becomes operative after any Event of Default has been curved
or waived.

The amount of any Disqualified Stock that does not
have a fixed redemption, repayment or repurchase price shall be calculated in
accordance with the terms of such Disqualified Stock as if such Disqualified
Stock were redeemed, repaid or repurchased on any date on which the amount of
such Disqualified Stock is to be determined pursuant to this Indenture;
provided, however, that if such Disqualified Stock could not be required to be
redeemed, repaid or repurchased at the time of such determination, the
redemption, repayment or repurchase price shall be the book value of such
Disqualified Stock as reflected in the most recent financial statements of such
Person. The Borrower may designate in an officer’s certificate delivered to the
Administrative Agent at the time of issuance any Equity Interest of Holdings,
the Borrower or any Subsidiary that would not otherwise be “Disqualified Stock”
to be Disqualified Stock for all purposes of this Indenture.

“dollars” or “$” refers to lawful money
of the United States of America.

“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).

 16
 

“Environmental Laws” means all laws, rules,
regulations, codes, ordinances, orders, decrees, judgments, injunctions or
legally binding agreements issued, promulgated or entered into by any
Governmental Authority, relating in any way to the protection of the
environment, preservation or reclamation of natural resources, the management,
release or threatened release of any Hazardous Material or to occupational
health and safety matters.

“Environmental Liability” means any liability,
contingent or otherwise (including any liability for damages, costs of
environmental remediation, fines, penalties or indemnities), of any of
Holdings, the Borrower or the Subsidiaries directly or indirectly resulting
from or based upon (a) violation of any Environmental Law, (b) the
generation, use, handling, transportation, storage, treatment or disposal of
any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

“Equity Interests” means shares of capital
stock, partnership interests, membership interests in a limited liability
company, beneficial interests in a trust or other equity ownership interests in
a Person.

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

“ERISA Affiliate” means any trade or business
(whether or not incorporated) that, together with the Borrower, is treated as a
single employer under Section 414(b) or (c) of the Code or, solely for
purposes of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the Code.

“ERISA Event” means (a) any “reportable
event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder, with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant
to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of
any liability under Title IV of ERISA with respect to the termination of
any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the
PBGC or a plan administrator of any notice relating to an intention to
terminate any Plan or Plans or to appoint a trustee to administer any Plan;
(f) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA
Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Borrower or any ERISA Affiliate of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA.

 17
 

“Eurodollar”, when used in reference to any
Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the
Adjusted LIBO Rate.

“Event of Default” has the meaning assigned to
such term in Article VII.

“Excess Cash Flow” means, for any fiscal year,
the sum (without duplication) of:

(a) the consolidated net income (or loss) of Holdings,
the Borrower and its consolidated Subsidiaries for such fiscal year, adjusted
to exclude any gains or losses attributable to Prepayment Events or Permitted
Operating Asset Swaps; plus

(b) depreciation, amortization and other non-cash
charges or losses deducted in determining such consolidated net income (or
loss) for such fiscal year; plus

(c) the aggregate amount of payments received by any Loan
Party pursuant to the Additional Consideration Agreement during such fiscal
year; plus

(d) the sum of (i) the amount, if any, by which
Net Working Capital decreased during such fiscal year plus (ii) the net
amount, if any, by which the consolidated deferred revenues of Holdings, the
Borrower and its consolidated Subsidiaries increased during such fiscal year; minus

(e) the sum of (i) any non-cash gains included in
determining such consolidated net income (or loss) for such fiscal year plus
(ii) the amount, if any, by which Net Working Capital increased during
such fiscal year plus (iii) the net amount, if any, by which the
consolidated deferred revenues of Holdings, the Borrower and its consolidated
Subsidiaries decreased during such fiscal year; minus

(f) Capital Expenditures for such fiscal year, except
to the extent attributable to (i) the incurrence of Capital Lease
Obligations or otherwise financed by incurring Long-Term Indebtedness or
(ii) the reinvestment of Net Proceeds received in respect of any
Prepayment Events; minus

(g) the aggregate amount of payments made by any Loan
Party pursuant to the Additional Consideration Agreement during such fiscal
year; minus

(h) the amount of Tax Distributions paid in cash
during such fiscal year in compliance with Section 6.08; minus

(i) 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 Original Effective
Date by any of Holdings, the Borrower or the Subsidiaries which expenses are
not otherwise deducted in

 18
 

calculating the consolidated net income (or loss) of
Holdings, the Borrower and its consolidated Subsidiaries as a result of the
application of purchase accounting principles; minus

(j) the aggregate principal amount of Long-Term
Indebtedness repaid, prepaid or redeemed (including any amounts paid during
such fiscal year to repurchase Long-Term Indebtedness, to the extent permitted
by this Agreement) by the Borrower and its consolidated Subsidiaries during
such fiscal year, excluding (i) Indebtedness in respect of Revolving
Loans, Swingline Loans and LC Exposure unless (and then only to the extent
that) the Revolving Commitments are also reduced, (ii) Term Loans prepaid
pursuant to Section 2.11, (iii) repayments, prepayments or
redemptions of Long-Term Indebtedness financed by incurring other Long-Term
Indebtedness, (iv) repayments, 
prepayments or redemptions of Long-Term Indebtedness (other than Loans)
deducted in calculating the amount of Net Proceeds in connection with any
Prepayment Event and (v) repayments, prepayments or redemptions of Senior
Unsecured Debt or Subordinated Debt pursuant to clause (vii) of
Section 6.08(b); minus

(k) the aggregate amount of consideration paid in cash
during such fiscal year for Permitted Acquisitions, to the extent not financed
(i) by incurring Long-Term Indebtedness or (ii) with the Net
Proceeds of Prepayment Events or (iii) with the Net Proceeds from the
issuance of Equity Interests.

“Excluded Taxes” means, with respect to the
Administrative Agent, any Lender, any Issuing Bank or any other recipient of
any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) income or franchise taxes imposed on (or measured by) its net
income  by the United States of America,
or by the jurisdiction under the laws of which such recipient is organized or
in which its principal office is located or, in the case of any Lender, in
which its applicable lending office is located, (b) any branch profits
taxes imposed by the United States of America or any similar tax imposed by any
other jurisdiction described in clause (a) above and (c) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.19(b)), any withholding tax that (i) is
imposed on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party to this Agreement (or designates a new lending office)
or is attributable to such Foreign Lender’s failure to comply with
Section 2.17(e), except to the extent that such Foreign Lender (or its
assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from the Borrower with
respect to any withholding tax pursuant to Section 2.17(a).

“Existing Letters of Credit” means the letters
of credit listed on Schedule 1.01 to the Original Credit Agreement.

“Federal Funds Effective Rate” means, for any
day, the weighted average (rounded upwards, if necessary, to the next 1/100 of
1%) of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by

 19
 

Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a
Business Day, the average (rounded upwards, if necessary, to the next 1/100 of
1%) of the quotations for such day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.

“Financial Officer” means, in respect of any
Person, the chief financial officer, principal accounting officer, treasurer or
controller of such Person.

“Financing Transactions” has the meaning
assigned to such term in the Original Credit Agreement.

“First Amendment and Restatement Agreement” has
the meaning assigned to such term in the recitals hereto.

“First Restated Credit Agreement” has the
meaning assigned to such term in the recitals hereto.

“First Restatement Effective Date” means the “Restatement
Effective Date”, as defined in the First Amendment and Restatement Agreement.

“First Restatement Transactions” means
(a) the execution, delivery and performance by each Loan Party of the Loan
Documents to which it is, or is to be, a party, the borrowing of Loans, the use
of the proceeds thereof and the issuance of Letters of Credit hereunder and
(b) the prepayment of the Tranche B Term Loans.

“Foreign Lender” means any Lender that is
organized under the laws of a jurisdiction other than that in which the
Borrower is located.  For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

“Foreign Subsidiary” means any Subsidiary that
is organized under the laws of a jurisdiction other than the United States of
America or any State thereof or the District of Columbia.

“FPH” means Forest Products Holdings, L.L.C., a
Delaware limited liability company and a direct subsidiary of Madison Dearborn
Capital Partners, IV, L.P.

“GAAP” means generally accepted accounting
principles in the United States of America.

“Governmental Authority” means the government
of the United States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of
government.

 20
 

“Guarantee” of or by any Person (the “guarantor”)
means any obligation, contingent or otherwise, of the guarantor guaranteeing or
having the economic effect of guaranteeing any Indebtedness or other obligation
of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of the guarantor, direct
or indirect, (a) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness or other obligation or to purchase
(or to advance or supply funds for the purchase of) any security for the
payment thereof, (b) to purchase or lease (including pursuant to any “synthetic
lease”) property, securities or services for the purpose of assuring the owner
of such Indebtedness or other obligation of the payment thereof, (c) to
maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account
party in respect of any letter of credit or letter of guaranty issued to
support such Indebtedness or obligation; provided, that the term
Guarantee shall not include endorsements for collection or deposit in the
ordinary course of business.

“Hazardous Materials” means all explosive or
radioactive substances or wastes and all hazardous or toxic substances, wastes
or other pollutants, including petroleum or petroleum distillates, asbestos or
asbestos containing materials, polychlorinated biphenyls, radon gas, infectious
or medical wastes and all other substances or wastes of any nature regulated
pursuant to any Environmental Law.

“Holding Companies” has the meaning assigned to
such term in the Original Credit Agreement.

“Holding Company” means Holdings.

“Holdings” means Boise Cascade Holdings,
L.L.C., a Delaware limited liability company, or, upon and after the Holdings
Corporate Conversion, the corporation surviving the Holdings Corporate
Conversion.

“Holdings Corporate Conversion” means the
conversion of Holdings from a Delaware limited liability company to a Delaware
corporation pursuant to a transaction (whether effected by merger or otherwise)
that (a) results in the surviving corporation having the same assets and
liabilities as those of Holdings immediately prior to such transaction,
(b) results in shareholders of the surviving corporation that are
substantially the same as, and that hold Equity Interests in such surviving
corporation in substantially the same percentage interests as those held by, the
Members of Holdings (or the direct or indirect holders of the Equity Interests
in such Members) immediately prior to such transaction, and (c) does not
involve any other consideration.  Such
transactions may be effected by a direct conversion or by a merger with a newly
formed corporate subsidiary in which the subsidiary is the surviving entity.

“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

 21
 

Holdings 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 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 EBITDA of Holdings for the period of four
consecutive fiscal quarters most recently ended for which financial statements
are available.

“Incremental Facility Amendment” has the
meaning assigned to such term in Section 2.21.

“Incremental
Lender”  means a Lender with an Incremental Term Loan Commitment or
an outstanding Incremental Term Loan.

“Incremental
Term Loan Commitment” means the commitment of any Lender,
established pursuant to Section 2.21, to make Incremental Term Loans to
the Borrower.

“Incremental
Term Loans” means Loans made by one or more Lenders to the Borrower
pursuant to Section 2.21.

“Indebtedness” of any Person means, without
duplication, (a) all obligations of such Person for borrowed money or with
respect to deposits or advances of any kind, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments,
(c) all obligations of such Person upon which interest charges are
customarily paid, (d) all obligations of such Person under conditional
sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred
purchase price of property or services (excluding accounts payable due within
one year and accrued expenses, in each case incurred in the ordinary course of
business), (f) all Indebtedness of others secured by (or for which the
holder of such Indebtedness has an existing right, contingent or otherwise, to
be secured by) any Lien on property owned or acquired by such Person, whether
or not the Indebtedness secured thereby has been assumed; provided that
if recourse for such Indebtedness is limited to such property, the amount of
Indebtedness arising under this clause (f) shall be limited to the lesser
of (i) the outstanding principal amount thereof and (ii) the fair
market value of the property subject to such Lien, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations
of such Person, (i) all obligations, contingent or otherwise, of such
Person as an account party in respect of letters of credit and letters of
guaranty and (j) all obligations, contingent or otherwise, of such Person
in respect of bankers’ acceptances.  The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.

“Indemnified Taxes” means Taxes other than
Excluded Taxes.

 22
 

“Initial Indenture” means the indenture dated
as of October 29, 2004, in respect of the Subordinated Debt and Senior
Unsecured Debt.

“Initial RP Basket Amount” means $108,500,000.

“Initial Senior Unsecured Debt” has the meaning
assigned to such term in the definition of “Senior Unsecured Debt”.

“Interest Election Request” means a request by
the Borrower to convert or continue a Borrowing in accordance with
Section 2.07.

“Interest Payment Date” means (a) with
respect to any ABR Loan (other than a Swingline Loan), the last day of each
March, June, September and December, (b) with respect to any Eurodollar
Loan, the last day of the Interest Period applicable to the Borrowing of which
such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest
Period of more than three months’ duration, each day prior to the last day of
such Interest Period that occurs at intervals of three months’ duration after
the first day of such Interest Period, and (c) with respect to any
Swingline Loan, the day that such Loan is required to be repaid.

“Interest Period” means, with respect to
any Eurodollar Borrowing, the period commencing on the date of such Borrowing
and ending on the numerically corresponding day in the calendar month that is
one, two, three or six months (or, with respect to a Eurodollar Revolving
Borrowing, one week or, with the consent of each Lender participating in
such Borrowing, nine or twelve months) thereafter, as the applicable Borrower
may elect; provided, that (a) if any Interest Period would end on a
day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless such next succeeding Business Day would
fall in the next calendar month, in which case such Interest Period shall end
on the next preceding Business Day, (b) any Interest Period that commences
on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period and (c) on one occasion, an Interest Period for a
Eurodollar Tranche E Term Borrowing may be selected by the Borrower for a
period of less than two months ending on June 30, 2007 (subject to
clause (a) above).  For purposes
hereof, the date of a Borrowing initially shall be the date on which such
Borrowing is made and thereafter shall be the effective date of the most recent
conversion or continuation of such Borrowing.

“Inventory” has the meaning assigned to such
term in the Collateral Agreement.

“IPO” means the initial offering by Holdings of
its Equity Interests to the public by means of an offering registered with the
Securities and Exchange Commission.

“Issuing Bank” means, as the context may
require, (a) JPMorgan Chase Bank, N.A., in its capacity as an issuer of
Letters of Credit hereunder, and (b) any other Revolving Lender that
becomes an Issuing Bank pursuant to Section 2.05(j), in its

 23
 

capacity as an issuer of
Letters of Credit hereunder, and, in each case, its successors in such capacity
as provided in Section 2.05(i).  Any
Issuing Bank may, in its discretion, arrange for one or more Letters of Credit
to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing
Bank” shall include any such Affiliate with respect to Letters of Credit issued
by such Affiliate.

“LC Disbursement” means a payment made by any
Issuing Bank pursuant to a Letter of Credit.

“LC Exposure” means, at any time, the sum of
(a) the aggregate undrawn amount of all outstanding Letters of Credit at
such time plus (b) the aggregate amount of all LC Disbursements that have
not yet been reimbursed by or on behalf of the Borrower at such time.  The LC Exposure of any Revolving Lender at
any time shall be its Applicable Percentage of the total LC Exposure at such
time.

“Lenders” means the Persons listed on
Schedule 2.01 and any other Person that shall have become a party hereto
pursuant to an Assignment and Assumption, other than any such Person that
ceases to be a party hereto pursuant to an Assignment and Assumption.  Unless the context otherwise requires, the
term “Lenders” includes the Swingline Lenders.

“Letter of Credit” means any letter of credit
issued pursuant to this Agreement (whether issued before or after the Second
Restatement Effective Date).

“Leverage Ratio” means, on any date, the ratio
of (a) Total Indebtedness as of such date to (b) Consolidated EBITDA
for the period of four consecutive fiscal quarters of Holdings ended on such
date (or, if such date is not the last day of a fiscal quarter, ended on the
last day of the fiscal quarter of Holdings most recently ended prior to such
date).

“LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, the rate appearing on
Page 3750 of the Dow Jones Market Service (or on any successor or
substitute page of such Service, or any successor to or substitute for such
Service, providing rate quotations comparable to those currently provided on
such page of such Service, as determined by the Administrative Agent from time
to time for purposes of providing quotations of interest rates applicable to
dollar deposits in the London interbank market) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of
such Interest Period, as the rate for dollar deposits with a maturity
comparable to such Interest Period; provided that, in the case of a Eurodollar
Tranche E Term Borrowing with an Interest Period described in clause (c) of the
proviso to the definition of the term “Interest Period”, the Administrative
Agent may determine the LIBO Rate by any other means that it determines to
reasonably reflect the rate for dollar deposits with a maturity comparable to
such Interest Period.  In the event that
such rate is not available at such time for any reason, then the “LIBO Rate”
with respect to such Eurodollar Borrowing for such Interest Period shall be the
rate  at which dollar deposits
of $5,000,000 and for a maturity comparable to such Interest Period are offered
by the principal London office of the Administrative Agent in immediately
available

 24
 

funds in the London
interbank market at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period.

“Lien” means, with respect to any asset,
(a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance,
charge or security interest in, on or of such asset, (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset and (c) in
the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

“Loan Documents” means this Agreement, the
Third Amendment and Restatement Agreement, the Reaffirmation Agreement, the
Collateral Agreement and the other Security Documents.

“Loan Parties” means Holdings, the Borrower and
the Subsidiary Loan Parties.

“Loans” means the loans made by the Lenders to
the Borrower pursuant to this Agreement (whether made before or after the Third
Restatement Effective Date); provided that, for purposes of calculating
Excess Cash Flow or any prepayment required by Section 2.11(d), the term “Loans”
also includes “Loans”‘ as defined in the Original Credit Agreement or any
previous amendment and restatement thereof.

“Long-Term Indebtedness” means any Indebtedness
that, in accordance with GAAP, constitutes (or, when incurred, constituted) a
long-term liability.

“Madison Dearborn” means Madison Dearborn
Capital Partners, IV, L.P., its Affiliates and investment funds under common
management with Madison Dearborn Capital Partners, IV, L.P., but excluding any
such Affiliate that is (a) a “portfolio company”, (b) a Person that
is Controlled by, or under common Control with, Madison Dearborn Capital
Partners, IV, L.P., or any of its Affiliates and conducts any business other
than investment activities and activities incidental thereto or
(c) Controlled by a Person described in clause (a) or (b) above.

“Material Adverse Effect” means a material
adverse effect on (a) the business, financial condition or results of
operations of Holdings, the Borrower and the Subsidiaries, taken as a whole,
(b) the ability of any Loan Party to perform any of its material
obligations under any Loan Document or (c) the rights of the Lenders under
the Loan Documents.

“Material Acquisition” has the meaning assigned
to such term in the definition of “Consolidated EBITDA”.

“Material Disposition” has the meaning assigned
to such term in the definition of “Consolidated EBITDA”.

 25
 

“Material Indebtedness” means Indebtedness
(other than the Loans and Letters of Credit), or obligations in respect of one
or more Swap Agreements, of any one or more of Holdings, the Borrower and the
Subsidiaries in an aggregate principal amount exceeding $25,000,000.  For purposes of determining Material
Indebtedness, the “principal amount” of the obligations of any of Holdings, the
Borrower or the Subsidiaries in respect of any Swap Agreement at any time shall
be the maximum aggregate amount (giving effect to any netting agreements) that
Holdings, the Borrower or such Subsidiary would be required to pay if such Swap
Agreement were terminated at such time.

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

“Measurement Period” means, with respect to any
date of determination, the period of the most recent four consecutive fiscal
quarters ended prior to such date of determination for which internal financial
statements are available.

“Members” means the holders of the Equity
Interests of Holdings.

“Milton Sale-Leaseback” means the real estate
sale and leaseback transaction for the approximately 27 acres of land and
improvements constructed by Boise Building Solutions Distribution, L.L.C. for a
wholesale building materials distribution facility located at the street
address of 8260 Armstrong Rd., Milton, FL.

“Moody’s” means Moody’s Investors Service, Inc.

“Mortgage” means a mortgage, deed of trust,
assignment of leases and rents, leasehold mortgage or other security document
granting a Lien on any Mortgaged Property to secure the Obligations.  Each Mortgage shall be reasonably
satisfactory in form and substance to the Collateral Agent.

“Mortgaged Property” means, initially, the real
property set forth on Schedule 3.05(c) that is identified on such Schedule
as Mortgaged Property and the improvements thereto, and includes each other
parcel of real property and improvements thereto owned by the Borrower or any
Subsidiary with respect to which a Mortgage is granted.

“Multiemployer Plan” means a multiemployer plan
as defined in Section 4001(a)(3) of ERISA.

“Net Fair Market Value,” with respect to any
non-cash property received by Holdings in respect of the issuance or sale of
its Equity Interests, means the fair market value of such property, determined
as provided in the definition of “Permitted Restricted Payment/Investment”, net
of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees,
discounts or commissions and brokerage, consultant and other fees actually
incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.

 26
 

“Net Proceeds” means, with respect to any event
(a) the cash proceeds received in respect of such event including
(i) any cash received in respect of any non-cash proceeds, but only
as and when received, (ii) in the case of a casualty, insurance proceeds,
and (iii) in the case of a condemnation or similar event, condemnation
awards and similar payments, net of (b) the sum of (i) all fees and
out-of-pocket expenses paid by any of Holdings, the Borrower and
the Subsidiaries to third parties (other than Affiliates) in connection with
such event, (ii) in the case of a sale, transfer or other disposition of
an asset (including pursuant to a sale and leaseback transaction or a casualty
or a condemnation or similar proceeding), the amount of all payments required
to be made by any of Holdings, the Borrower and the Subsidiaries as a result of
such event to repay Indebtedness (other than Loans) owed to third parties
secured by such asset, and (iii) the amount of all taxes paid (or
reasonably estimated to be payable) by any of Holdings, the Borrower and the
Subsidiaries, and the amount of any reserves established by Holdings, the
Borrower and the Subsidiaries to fund contingent liabilities reasonably
estimated to be payable to third parties, in each case during the year that
such event occurred or the next succeeding year and that are directly
attributable to such event (as determined reasonably and in good faith by the
chief financial officer of Holdings or the Borrower).

“Net Working Capital” means, at any date,
(a) the consolidated current assets of Holdings, the Borrower and its
consolidated Subsidiaries as of such date (excluding cash and Permitted
Investments) minus (b) the consolidated current liabilities of Holdings,
the Borrower and its consolidated Subsidiaries as of such date (excluding
current liabilities in respect of Indebtedness).  Net Working Capital at any date may be a
positive or negative number.  Net Working
Capital increases when it becomes more positive or less negative and decreases
when it becomes less positive or more negative.

“Obligations” has the meaning assigned to such
term in the Collateral Agreement.

“Offering Memorandum” means the offering
memorandum dated October 15, 2004 relating to the Senior Unsecured Debt
and the Subordinated Debt.

“Operating Businesses” means the forest
products and distribution businesses (and assets comprising such businesses)
acquired by the Borrower and its Subsidiaries pursuant to the Acquisition
Agreement, including, (a) their paper manufacturing, conversion,
distribution and sales operations, (b) their building solutions
manufacturing and conversion operations, (c) their packaging and newsprint
manufacturing, conversion, distribution and sales operations, (d) certain
of their aviation operations and (e) their transportation operations.

“Original Credit Agreement” has the meaning
assigned to such term in the recitals hereto.

“Original Effective Date” means October 29,
2004.

 27
 

“Other Taxes” means any and all present or
future recording, stamp, documentary, excise, transfer, sales, property or
similar taxes, charges or levies arising from any payment made under any Loan
Document or from the execution, delivery or enforcement of, or otherwise with respect
to, any Loan Document.

“PBGC” means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity
performing similar functions.

“Perfection Certificate” means a certificate in
the form of Exhibit D or any other form approved by the Collateral Agent.

“Permitted Acquisition” means any acquisition
by the Borrower or any Subsidiary of all or substantially all the assets of, or
all the Equity Interests in, a Person or division or line of business of a
Person if, immediately after giving effect thereto, (a) no Default has
occurred and is continuing or would result therefrom, (b) the predominant
business conducted by any such Person or business shall comply with the
permitted businesses of the Borrower and the Subsidiaries as provided in
Section 6.03(b), (c) all of the Equity Interests of each Subsidiary
formed for the purpose of or resulting from such acquisition shall be owned
directly by the Borrower or a Subsidiary and all actions required to be taken
with respect to each such acquired or newly formed Subsidiary under
Sections 5.12 and 5.13 have been taken, (d) Holdings, the Borrower
and the Subsidiaries are in compliance, on a pro  forma basis
after giving effect to such acquisition (and any operating expense reductions related
thereto that would be permitted to be deducted in any calculation of
Consolidated EBITDA in accordance with the definition of such term contained
herein), with the covenants contained in Sections 6.12 and 6.13 recomputed
as at the last day of the most recently ended fiscal quarter of Holdings for
which financial statements are available, as if such acquisition had occurred
on the first day of each relevant period for testing such compliance and
(e) the Borrower has delivered to the Administrative Agent an officers’
certificate to the effect set forth in clauses (a), (b), (c) and (d)
above, together with all relevant financial information for the Person or
assets to be acquired and reasonably detailed calculations demonstrating
satisfaction of the requirement set forth in clause (d) above.

“Permitted Encumbrances” means:

(a) Liens imposed by law for taxes that are not
yet due or are being contested in compliance with Section 5.05;

(b) carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s and other like Liens imposed by law, arising in the
ordinary course of business and securing obligations that are not overdue by
more than 60 days or are being contested in compliance with
Section 5.05;

(c) pledges and deposits made in the ordinary
course of business in compliance with workers’ compensation, unemployment
insurance and other social security laws or regulations;

 28
 

(d) deposits to secure the performance of bids,
trade contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case in the
ordinary course of business;

(e) judgment liens in respect of judgments that do not
constitute an Event of Default under clause (k) of Article VII; and

(f) easements, zoning restrictions, rights-of-way
and similar encumbrances on real property imposed by law or arising in the
ordinary course of business that do not secure any monetary obligations and do
not materially detract from the value of the affected property or interfere
with the ordinary conduct of business of the Borrower or any Subsidiary;

provided that the term “Permitted
Encumbrances” shall not include any Lien securing Indebtedness.

“Permitted Investments”
means:

(a) direct obligations of, or obligations the
principal of and interest on which are unconditionally guaranteed by, the
United States of America (or by any agency thereof to the extent such
obligations are backed by the full faith and credit of the United States of
America), in each case maturing within one year from the date of acquisition
thereof;

(b) investments in commercial paper maturing
within 270 days from the date of acquisition thereof and having, at such
date of acquisition, at least an A2 credit rating from S&P or at least a P2
credit rating from Moody’s;

(c) investments in certificates of deposit,
banker’s acceptances and time deposits maturing within 180 days from the
date of acquisition thereof issued or guaranteed by or placed with, and money
market deposit accounts issued or offered by, any domestic office of any
commercial bank organized under the laws of the United States of America or any
State thereof which has a combined capital and surplus and undivided profits of
not less than $500,000,000;

(d) fully collateralized repurchase agreements
with a term of not more than 30 days for securities described in
clause (a) above and entered into with a financial institution satisfying
the criteria described in clause (c) above; and

(e) demand deposit accounts with commercial
banks.

“Permitted Operating
Asset Swap” means any transfer of Eligible Swap Assets by the 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 the Borrower, on a cumulative basis,

 29
 

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 be
taken pursuant to Sections 5.12 and 5.13 with respect to any Eligible Swap
Assets so received as consideration shall be taken.

“Permitted Receivables Financing” means
financing arrangements pursuant to which the Borrower or one or more of the
Subsidiaries (or a combination thereof) realizes cash proceeds in respect of
Receivables and Related Security by selling or otherwise transferring such
Receivables and Related Security (on a non-recourse basis, other than Standard
Securitization Undertakings) to one or more Receivables Subsidiaries, and such
Receivables Subsidiary or Receivables Subsidiaries realize cash proceeds in
respect of such Receivables and Related Security pursuant to a revolving
committed financing arrangement; provided that (a) the Borrower
shall deliver to the Administrative Agent copies of all documentation entered
into in connection with any such financing arrangements and (b) the Borrower
represents, in a certificate of a Financial Officer of the Borrower delivered
to the Administrative Agent, that the terms and conditions of such financing
arrangements are customary for accounts receivable securitization financings.  The “funded amount” or “principal amount” of
any Permitted Receivables Financing at any time shall be the principal amount
of Receivables Financing Debt in respect thereof.

“Permitted Restricted
Payment/Investment” means any Restricted Payment or investment if at the time
thereof and after giving effect thereto:

(a) no Default shall have occurred and be
continuing (or would result therefrom);

(b) the Consolidated Coverage Ratio, on a pro
forma basis, shall not be less than 2.00 to 1.00; and

(c) the aggregate amount of all such Restricted
Payments made pursuant to clause (xii) of Section 6.08(a) plus the
aggregate amount of all investments made pursuant to clause (xvi) of
Section 6.04 (but excluding any other Restricted Payments or investments
unless expressly required to be taken into consideration for purposes hereof)
since December 31, 2006 (treating all such Restricted Payments and investments
made during the period from December 31, 2006 to the Third Restatement
Effective Date as though the Third Restatement Effective Date had occurred on
December 31, 2006) shall not exceed the sum (without duplication) of:

(i) the Initial RP Basket Amount; plus

(ii) 50% of the Consolidated Net Income accrued
during the period (treated as one accounting period) from December 31,
2006, to the end of the most recent fiscal quarter ending prior to the date of
such Restricted Payment or investment for which internal financial statements
are available (or, in case such Consolidated Net Income shall be a deficit,
minus 100% of such deficit); plus

 30
 

(iii) 100% of the aggregate Net Proceeds, and
100% of the aggregate Net Fair Market Value of property other than cash, in
each case received by Holdings from the issuance or sale of its Equity
Interests (other than Disqualified Stock) subsequent to December 31, 2006
(other than (i) an issuance or sale to Holdings or a Subsidiary of
Holdings and (ii) an issuance or sale to an employee stock ownership plan
or to a trust established by Holdings or any of its Subsidiaries for the
benefit of their employees) and 100% of any cash capital contribution, and 100%
of the fair market value of a capital contribution of property other than cash,
in each case received by Holdings from its equity holders subsequent to
December 31, 2006; plus

(iv) the amount by which Indebtedness (other than
Indebtedness owed to Holdings or any of its Subsidiaries) of Holdings is
reduced on Holdings’ balance sheet upon the conversion or exchange subsequent
to December 31, 2006, of any Indebtedness of Holdings convertible or
exchangeable for Equity Interests (other than Disqualified Stock) of Holdings
(less the amount of any cash, or the fair market value of any other property,
distributed by Holdings upon such conversion or exchange); provided, however,
that the foregoing amount shall not exceed the Net Proceeds received by
Holdings or any Subsidiary that is not a Loan Party from the sale of such
Indebtedness (excluding Net Proceeds from sales to Holdings or to a Subsidiary
of Holdings or to an employee stock ownership plan or to a trust established by
Holdings or any of its Subsidiaries for the benefit of their employees); plus

(v) 100% of the aggregate amount received in cash
by any Loan Party and the fair market value of property other than cash
received by any Loan Party, in each case subsequent to December 31, 2006,
from:

(A) the sale or other disposition (other than to
Holdings or any of its Subsidiaries) of investments made by any Loan Party (in
reliance upon such investment being a Permitted Restricted Payment/Investment)
and from repurchases and redemptions of such investments from any Loan Party by
any Person (other than Holdings or any of its Subsidiaries) and from repayments
of loans or advances which constituted a Permitted Restricted
Payment/Investment (except in each case to the extent the investment was made
other than on the basis that it constituted a Permitted Restricted
Payment/Investment); and

(B) a dividend or distribution subsequent to
December 31, 2006 from a Subsidiary that is not a Loan Party (solely to
the extent not otherwise included in Consolidated Net Income); minus

(vi) 50% of the amount of Tax Distributions made
pursuant to clause (viii) of Section 6.08(a) subsequent to
December 31, 2006.

 31
 

The fair market value of property other than cash covered by clauses
(c)(iii), (iv) and (v) above shall be determined in good faith by Holdings and

(x) in the event of property with a fair market
value in excess of $5.0 million, shall be set forth in a certificate of a
Financial Officer; and

(y) in the event of property with a fair market
value of in excess of $10.0 million, shall be set forth in a resolution
approved by at least a majority of the Board of Directors of Holdings.

“Person” means any natural person, corporation,
limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity.

“Plan” means any employee pension benefit plan
(other than a Multiemployer Plan) subject to the provisions of Title IV of
ERISA or Section 412 of the Code or Section 302 of ERISA, and in
respect of which the Borrower or any ERISA Affiliate is (or, if such plan were
terminated, would under ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

“Pledged Collateral” has the meaning assigned
to such term in the Collateral Agreement.

“Prepayment Event”
means:

(a) any sale,
transfer or other disposition (including pursuant to a sale and leaseback
transaction) of any property or asset of Holdings, the Borrower or any
Subsidiary (other than a Receivables Subsidiary), other than (i) 
dispositions described in clauses (i), (ii), (iii), (iv), (vi) and (vii)
of Section 6.05(a), and (ii)  other dispositions resulting in
aggregate Net Proceeds not exceeding $5,000,000 during any fiscal year of the
Borrower; or

(b) any insured casualty or other insured damage
to, or any taking under power of eminent domain or by condemnation or similar
proceeding of, any property or asset of Holdings, the Borrower or any
Subsidiary other than those resulting in aggregate Net Proceeds not exceeding
$5,000,000 during any fiscal year of the Borrower; or

(c) [Intentionally Omitted]

(d) the incurrence by Holdings, the Borrower or
any Subsidiary of any Indebtedness, other than Indebtedness permitted by
Section 6.01; or

(e) any transfer of Receivables pursuant to a
Permitted Receivables Financing; provided that any such transfer will be
treated as a Prepayment Event only to the extent that, after giving effect
thereto, the aggregate funded amount of

 32
 

such Permitted Receivables Financing exceeds the
greatest aggregate funded amount previously outstanding thereunder.

“Prime Rate” means the rate of interest per
annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its
prime rate in effect at its principal office in New York City; each change in
the Prime Rate shall be effective from and including the date such change is
publicly announced as being effective.

“Pro Forma Cost Savings” means cost savings
that Holdings reasonably determines are probable based upon specifically
identified actions to be taken within six months of the date of the acquisition
(net of any reduction in Consolidated EBITDA as a result of such cost savings
that Holdings reasonably determines are probable); 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 EBITDA in connection therewith. Where specifically provided by
this Agreement, Holdings and the Borrower shall give pro forma effect to such
Pro Forma Cost Savings as if they had been effected as of the beginning of the
applicable period.

“Receivable” means an Account owing to the
Borrower or any Subsidiary (before its transfer to a Receivables Subsidiary),
whether now existing or hereafter arising, together with all cash collections
and other cash proceeds in respect of such Account, including all yield,
finance charges or other related amounts accruing in respect thereof and all
cash proceeds of Related Security with respect to such Receivable.

“Receivables Financing Debt” means, as of any
date with respect to any Permitted Receivables Financing, the amount of the
outstanding Receivables subject to such Permitted Receivables Financing that
would be required to discharge all principal obligations to financing parties
(and would not be returned, directly or indirectly, to the Borrower or any
Subsidiary) if all such Receivables were to be collected at such date and such
Permitted Receivables Financing were to be terminated at such date.

“Receivables Subsidiary” means a wholly-owned
Subsidiary that does not engage in any activities other than participating in
one or more Permitted Receivables Financings and activities incidental thereto;
provided that (a) such Subsidiary does not have any Indebtedness
other than (i) Indebtedness incurred pursuant to a Permitted Receivables
Financing owed to financing parties supported by Receivables and Related
Security and (ii) Subordinated Receivables Transfer Debt, (b) neither
Holdings, the Borrower nor any other Subsidiary Guarantees any Indebtedness or
other obligation of such Subsidiary, other than Standard Securitization
Undertakings and (c) all Equity Interests of and other investments in such
Subsidiary that are owned by the Borrower or any other Subsidiary (including
any Subordinated Receivables Transfer Debt) are pledged pursuant to the
Collateral Agreement.

“Redemption” has the meaning set forth in
Section 5.11.

 33
 

“Register” has the meaning set forth in
Section 9.04.

“Related Parties” means, with respect to any
specified Person, such Person’s Affiliates and the respective directors,
officers, employees, agents, and advisors and trustees of such Person and such
Person’s Affiliates.

“Related Security” means, with respect to any
Receivable: (a) all of the Borrower’s or the applicable Subsidiary’s
right, title and interest in and to any goods, the sale of which gave rise to
such Receivable; (b) all security pledged, assigned, hypothecated or
granted to or held by the Borrower or the applicable Subsidiary to secure such
Receivable; (c) all guaranties, endorsements and indemnifications on, or
of, such Receivable or any of the foregoing (other than by any of Holdings, the
Borrower and the Subsidiaries that is not a Receivables Subsidiary);
(d) all powers of attorney for the execution of any evidence of
indebtedness or security or other writing in connection therewith; (e) all
books, records, ledger cards and invoices related to such Receivable or any of
the foregoing, whether maintained electronically, in paper form or otherwise;
(f) all evidences of the filing of financing statements and other
statements and the registration of other instruments in connection therewith
and amendments thereto, notices to other creditors or secured parties, and
certificates from filing or other registration officers; (g) all credit
information, reports and memoranda relating thereto; (h) all other
writings related thereto; and (i) all proceeds of any of the foregoing.

“Required Lenders” means, at any time, Lenders
having Revolving Exposures, Term Loans and unused Commitments representing more
than 50% of the sum of the total Revolving Exposures, outstanding Term Loans
and unused Commitments at such time.

“Required Revolving Lenders” means, at any
time, Revolving Lenders having Revolving Exposures and unused Revolving
Commitments representing more than 50% of the sum of the total Revolving Exposures
and unused Revolving Commitments at such time.

“Restatement Transactions” means
(a) execution, delivery and performance by each Loan Party of the Loan
Documents to which it is, or is to be, a Party, the borrowing of the Loans, the
use of the proceeds thereof and the issuance of Letters of Credit hereunder,
(b) the prepayment of the Tranche D Term Loans and (c) the
Redemption.

“Restricted Payment” means any dividend or
other distribution (whether in cash, securities or other property) with respect
to any Equity Interests in Holdings, the Borrower or any Subsidiary, or any
payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancelation or termination of any Equity Interests in Holdings,
the Borrower or any Subsidiary or any option, warrant or other right to acquire
any such Equity Interests in Holdings, the Borrower or any Subsidiary.

 34

“Revolving Availability Period” means the
period from and including the Original Effective Date to but excluding the
earlier of the Revolving Maturity Date and the date of termination of the
Revolving Commitments.

“Revolving Commitment” means, with respect to
each Lender, the commitment, if any, of such Lender to make Revolving Loans and
to acquire participations in Letters of Credit and Swingline Loans
hereunder,  expressed as an amount
representing the maximum aggregate amount of such Lender’s Revolving Exposure
hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.08 and (b) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to
Section 9.04.  The initial amount of
each Lender’s Revolving Commitment is set forth on Schedule 2.01 (as of
the First Restatement Effective Date), or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Revolving Commitment, as
applicable.  The aggregate amount of the
Lenders’ Revolving Commitments as of the Third Restatement Effective Date is
$450,000,000.

“Revolving Exposure” means, with respect to any
Lender at any time, the sum of the outstanding principal amount of such Lender’s
Revolving Loans and its LC Exposure and Swingline Exposure at such time.

“Revolving Facility” means the credit facility
hereunder represented by the Revolving Commitments and the extensions of credit
thereunder.

“Revolving Lender” means a Lender with a
Revolving Commitment or, if the Revolving Commitments have terminated or
expired, a Lender with Revolving Exposure.

“Revolving Loan” means a Loan made pursuant to
Section 2.01(a) and includes any “Revolving Loan” outstanding under the
Second Restated Credit Agreement on the Third Restatement Effective Date.

“Revolving Maturity
Date” means October 29, 2010.

“S&P” means Standard & Poor’s.

“Second Amendment and
Restatement Agreement” has the meaning assigned to such term in the
recitals hereto.

“Second Restatement
Effective Date” means the “Restatement Effective Date”, as defined in the
Second Amendment and Restatement Agreement.

“Secured Parties” has the meaning assigned to
such term in the Collateral Agreement.

“Security Documents” means the Collateral
Agreement, the Mortgages and each other security agreement or other instrument
or document executed and delivered pursuant to Section 5.12 or 5.13 to
secure any of the Obligations.

 35
 

“Seller Parent” means OfficeMax Incorporated
(f/k/a Boise Cascade Corporation), a Delaware corporation.

“Senior Leverage Ratio” means, on any date, the
ratio of (a) Total Senior Indebtedness as of such date to
(b) Consolidated EBITDA for the period of four consecutive fiscal quarters
of Holdings most recently ended prior to such date for which financial
statements have been delivered pursuant to Section 5.01.

“Senior Unsecured Debt” means (a) the
senior floating rate notes due 2012 issued by the Borrower on the Original
Effective Date in the aggregate principal amount of $250,000,000 and the
Indebtedness represented thereby (the “Initial Senior Unsecured Debt”)
and (b) any senior unsecured debt securities issued by the Borrower after
the Original Effective Date to refinance the Initial Senior Unsecured Debt; provided
that (i) such senior unsecured debt securities do not mature earlier than,
or require any scheduled payment of principal, sinking fund payment or similar
payment prior to, the scheduled maturity date of the Initial Senior Unsecured
Debt, (ii) the Indebtedness in respect of such senior unsecured debt
securities is not Guaranteed by any Person that did not Guarantee (and is not
permitted by this Agreement to Guarantee) the Initial Senior Unsecured Debt,
(iii) the aggregate principal amount of such senior unsecured debt
securities does not exceed the aggregate principal amount of Initial Senior
Unsecured Debt refinanced thereby plus capitalized interest and any applicable
redemption premiums paid in respect of the refinancing thereof, (iv) the
portion of the interest rate payable in cash in respect of such senior unsecured
debt securities does not exceed the interest rate in respect of the Initial
Senior Unsecured Debt, (v) such senior unsecured debt securities are not
supported by any letter of credit or other credit enhancement, (vi) the
terms and conditions of such senior unsecured debt securities and any Senior
Unsecured Debt Documents in respect thereof (including covenants, events of
default and any provisions relating to any mandatory redemption or required
offer to repurchase such senior unsecured debt securities) are no less
favorable in any material respect to the Loan Parties and the Lenders than the
terms and conditions of the Initial Senior Unsecured Debt and the Senior
Unsecured Debt Documents in respect of the Initial Senior Unsecured Debt and
(vii) the Initial Senior Unsecured Debt being refinanced by such senior
unsecured debt securities is repaid on the same date that such senior unsecured
debt securities are issued.

“Senior Unsecured Debt Documents” means any
indenture under which any Senior Unsecured Debt is issued and all other
instruments, agreements and other documents evidencing or governing any Senior
Unsecured Debt or providing for any Guarantee or other right in respect
thereof.

“Specified Investment” means any investment by
the Borrower or any Subsidiary that is financed solely with Net Proceeds
received from the issuance of Equity Interests by Holdings after the First
Restatement Effective Date, provided that (i) the 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
Proceeds.

 36
 

“Standard Securitization Undertakings” means
representations, warranties, covenants and indemnities made by the Borrower or
any Subsidiary in connection with a Permitted Receivables Financing that are
customary for accounts receivables securitization financings; provided
that Standard Securitization Undertakings shall not include any Guarantee of
any Indebtedness or collectability of any Receivables.

“Statutory Reserve Rate” means a fraction
(expressed as a decimal), the numerator of which is the number one and the
denominator of which is the number one minus the aggregate of the maximum
reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board to which the
Administrative Agent is subject for eurocurrency funding (currently referred to
as “Eurocurrency Liabilities” in Regulation D of the Board).  Such reserve percentages shall include those
imposed pursuant to such Regulation D. 
Eurodollar Loans shall be deemed to constitute eurocurrency funding and
to be subject to such reserve requirements without benefit of or credit for
proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation.  The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in any reserve
percentage.

“Subordinated Debt” means (a) the 71/8% senior subordinated notes due 2014 issued by
the Borrower on the Original Effective Date in the aggregate principal amount
of $400,000,000 and the Indebtedness represented thereby (the “Initial Subordinated
Debt”) and (b) any subordinated debt securities issued by the Borrower
after the Original Effective Date to refinance the Initial Subordinated Debt; provided
that (i) such subordinated debt securities do not mature earlier than, or
require any scheduled payment of principal, sinking fund payment or similar
payment prior to, the scheduled maturity date of the Initial Subordinated Debt,
(ii) the Indebtedness in respect of such subordinated debt securities is
not Guaranteed by any Person that did not Guarantee (and is not permitted by
this Agreement to Guarantee) the Initial Subordinated Debt, (iii) the
aggregate principal amount of such subordinated debt securities does not exceed
the aggregate principal amount of Initial Subordinated Debt refinanced thereby
plus capitalized interest and any applicable redemption premiums paid in
respect of the refinancing thereof, (iv) the portion of the interest rate
payable in cash in respect of such subordinated debt securities does not exceed
the interest rate in respect of the Initial Subordinated Debt, (v) such
subordinated debt securities are unsecured and are not supported by any letter
of credit or other credit enhancement, (vi) the terms and conditions of
such subordinated debt securities and any Subordinated Debt Documents in
respect thereof (including subordination provisions, covenants, events of
default and any provisions relating to any mandatory redemption or required
offer to repurchase such subordinated debt securities) are no less favorable in
any material respect to the Loan Parties and the Lenders than the terms and
conditions of the Initial Subordinated Debt and the Subordinated Debt Documents
in respect of the Initial Subordinated Debt and (vii) the Initial
Subordinated Debt being refinanced by such subordinated debt securities is
repaid on the same date that such subordinated debt securities are issued.

“Subordinated Debt Documents” means any
indenture under which any Subordinated Debt is issued and all other
instruments, agreements and other documents

 37
 

evidencing or governing
any Subordinated Debt or providing for any Guarantee or other right in respect
thereof.

“Subordinated Receivables Transfer Debt” means
Indebtedness of a Receivables Subsidiary owed to the Borrower or a Subsidiary
and incurred to finance the purchase of Receivables and Related Security from
the Borrower or a Subsidiary in connection with a Permitted Receivables
Financing; provided that (a) such Indebtedness is evidenced by a
promissory note pledged pursuant to the Collateral Agreement and (b) all
proceeds of such Indebtedness are applied by such Receivables Subsidiary to pay
the purchase price of such Receivables and Related Security.

“subsidiary” means, with respect to any Person
(the “parent”) at any date, any corporation, limited liability company,
partnership, association or other entity the accounts of which would be
consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP
as of such date, as well as any other corporation, limited liability company,
partnership, association or other entity (a) of which securities or other
ownership interests representing more than 50% of the equity or more than 50%
of the ordinary voting power or, in the case of a partnership, more than 50% of
the general partnership interests are, as of such date, owned, controlled or
held, or (b) that is, as of such date, otherwise Controlled, by the parent
or one or more subsidiaries of the parent or by the parent and one or more
subsidiaries of the parent.

“Subsidiary” means any subsidiary of the
Borrower.

“Subsidiary Loan Party” means any Subsidiary
that is not a Foreign Subsidiary or a Receivables Subsidiary.

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

“Swap Agreement” means any agreement with
respect to any swap, forward, future or derivative transaction or option or
similar agreement involving, or settled by reference to, one or more rates,
currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk
or value or any similar transaction or any combination of these transactions; provided
that no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of Holdings, the Borrower or the Subsidiaries shall be a Swap
Agreement.

“Swingline Exposure” means, at any time, the
aggregate principal amount of all Swingline Loans outstanding at such
time.  The Swingline Exposure of any
Lender at any time shall be its Applicable Percentage of the total  Swingline Exposure at such time.

 38
 

“Swingline Lenders” means the Committed
Swingline Lender and any Uncommitted Swingline Lenders.

“Swingline Loan” means a Committed Swingline
Loan or an Uncommitted Swingline Loan.

“Syndication Agent” means Lehman Commercial
Paper Inc., in its capacity as syndication agent for the Lenders.

“Tax Distributions” means cash distributions by
Holdings to the Members in respect of its Equity Interests for the purpose of
providing the Members with funds to pay the tax liability attributable to their
shares of the taxable income of Holdings and its consolidated subsidiaries.

“Taxes” means any and all present or future
taxes, levies, imposts, duties, deductions, charges or withholdings imposed by
any Governmental Authority.

“Term Lender” means a Delayed Draw Lender or a
Tranche E Lender.

“Term Loans” means Tranche E Term Loans or
Delayed Draw Term Loans; provided that, for purposes of calculating
Excess Cash Flow or any prepayment required by Section 2.11(d) the term “Term
Loans” also includes “Term Loans” as defined in the Original Credit Agreement
or any previous amendment and restatement thereof.

“Third Amendment and Restatement Agreement” has
the meaning assigned to such term in the recitals hereto.

“Third Restatement Effective Date” means the “Restatement
Effective Date”, as defined in the Third Amendment and Restatement Agreement.

“Timber Borrower” has the meaning assigned to
such term in the Original Credit Agreement.

“Total Indebtedness” means, as of any date, the
sum (without duplication) of (a) the aggregate principal amount of
Indebtedness of Holdings, the Borrower and the Subsidiaries outstanding as of
such date, in the amount that would be reflected on a balance sheet prepared as
of such date on a consolidated basis in accordance with GAAP, plus (b) the
aggregate principal amount of Indebtedness of Holdings, the Borrower and the
Subsidiaries outstanding as of such date that is not required to be reflected
on a balance sheet in accordance with GAAP, determined on a consolidated basis
(but, in each case, excluding (i) Receivables Financing Debt and
(ii) obligations arising under the Additional Consideration Agreement) as
of such date minus (c) cash on hand and Permitted Investments of Holdings, the
Borrower and the Subsidiaries as of such date (other than any such cash or
Permitted Investments subject to any Lien (other than (i) Liens securing
Indebtedness described in clause (a) or (b) above and (ii) Permitted
Encumbrances that would not prohibit, limit, or otherwise impair the ability of
the Borrower to use such cash and Permitted Investments to pay the Obligations
hereunder))

 39
 

in an aggregate amount
not to exceed $35,000,000; provided that, for purposes of
clause (b) above, the term “Indebtedness” shall not include contingent
obligations of the Borrower or any Subsidiary as an account party in respect of
any letter of credit or letter of guaranty unless such letter of credit or
letter of guaranty supports an obligation that constitutes Indebtedness.

“Total Senior Indebtedness” means, as of any
date, (a) Total Indebtedness as of such date minus
(b) the portion of Total Indebtedness as of such date represented by
Subordinated Debt or Additional Subordinated Debt.

“Tranche B Term Loan” has the meaning assigned
to such term in the Original Credit Agreement.

“Tranche D Term Loan” means a Loan made
pursuant to Section 3 of the First Amendment and Restatement Agreement.

“Tranche E Commitment” has the meaning
assigned to such term in the Third Amendment and Restatement Agreement.

“Tranche E Lender” means a Lender with an
outstanding Tranche E Term Loan.

“Tranche E
Maturity Date” means April 30, 2014.

“Tranche E Term
Loan” means a Loan made pursuant to Section 3 of the Third Amendment
and Restatement Agreement.

“Transactions” has the meaning assigned to such
term in the Original Credit Agreement.

“Type”, when used in reference to any Loan or
Borrowing, refers to whether the rate of interest on such Loan, or on the Loans
comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate
or the Alternate Base Rate.

“Uncommitted Swingline Lender” means, at any
time, any Revolving Lender, Tranche E Lender or Delayed Draw Lender that
holds an Uncommitted Swingline Loan outstanding at such time.

“Uncommitted Swingline Loan” means a Loan made
pursuant to Section 2.04(d); provided that any such Loan shall
cease to constitute a “Loan” for all purposes of the Loan Documents if the
holder of such Loan is neither a Revolving Lender, a Tranche E Lender nor
a Delayed Draw Lender.

“Withdrawal Liability” means liability to a
Multiemployer Plan as a result of a complete or partial withdrawal from such
Multiemployer Plan, as such terms are defined in Part I of Subtitle E
of Title IV of ERISA.

 40
 

SECTION 1.02. 
Classification of Loans and Borrowings.  For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g., a “Revolving Loan”) or by
Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar
Revolving Loan”).  Borrowings also may be
classified and referred to by Class (e.g., a “Revolving Borrowing”) or
by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g.,
a “Eurodollar Revolving Borrowing”).

SECTION 1.03.  Terms Generally.  The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.  The word “will” shall be construed to have
the same meaning and effect as the word “shall”.  Unless the context requires otherwise
(a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument
or other document as from time to time amended, supplemented or otherwise
modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns,
(c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not
to any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the
words “asset” and “property” shall be construed to have the same meaning and
effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

SECTION 1.04. 
Accounting Terms; GAAP. 
Except as otherwise expressly provided herein, all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as
in effect from time to time; provided that, if the Borrower notifies the
Administrative Agent that the Borrower requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the Original
Effective Date in GAAP or in the application thereof on the operation of such
provision (or if the Administrative Agent notifies the Borrower that the
Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be interpreted
on the basis of GAAP as in effect and applied immediately before such change
shall have become effective until such notice shall have been withdrawn or such
provision  amended in accordance
herewith.

SECTION 1.05. 
Certificates.  All
certificates and other documents or statements of any sort provided, executed
or attested to by any officer, director or employee of any Loan Party shall be
treated as being provided, executed or attested to on behalf of such Loan
Party, and not in such officer’s, director’s or employee’s individual capacity.

 41
 

ARTICLE
II

The
Credits

SECTION 2.01. 
Revolving Commitments; Tranche E Term Loans; Delayed Draw
Commitments.  (a)  Subject to the terms and conditions set forth
herein, each Revolving Lender agrees to make Revolving Loans to the Borrower
from time to time during the Revolving Availability Period in an aggregate
principal amount that will not result in such Revolving Lender’s Revolving
Exposure exceeding such Lender’s Revolving Commitment.  Within the foregoing limits and subject to
the terms and conditions set forth herein, the Borrower may borrow, prepay and
reborrow Revolving Loans.

(b) 
The Tranche E Term Loans constitute Loans made pursuant to this
Agreement for all purposes of the Loan Documents.  Amounts repaid or prepaid in respect of
Tranche E Term Loans may not be reborrowed.

(c) 
Subject to the terms and conditions set forth herein, each Delayed Draw
Lender agrees to make a Delayed Draw Term Loan to the Borrower on a single date
on or before November 1, 2007, in an aggregate principal amount not
exceeding its Delayed Draw Commitment. 
Any amount repaid or prepaid in respect of Delayed Draw Term Loans may
not be reborrowed.

SECTION 2.02. 
Loans and Borrowings. 
(a)  Each  Loan (other than a Swingline Loan) shall be
made as part of a Borrowing consisting of Loans of the same Class and Type made
by the Lenders ratably in accordance with their respective Commitments of the
applicable Class.  The failure of any
Lender to make any Loan required to be made by it shall not relieve any other
Lender of its obligations hereunder; provided that the Commitments of
the Lenders are several and no Lender shall be responsible for any other Lender’s
failure to make Loans as required.

(b) 
Subject to Section 2.14, each Revolving Borrowing and Term
Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the
Borrower may request in accordance herewith; provided that each
Eurodollar Tranche E Term Borrowing that has an Interest Period beginning
prior to the date that is 30 days after the Third Restatement Effective
Date shall have an Interest Period with a duration of one month.  Each Committed Swingline Loan shall be an ABR
Loan.  Each Lender at its option may make
any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan; provided that (i) any exercise of
such option shall not affect the obligation of the Borrower to repay such Loan
in accordance with the terms of this Agreement and (ii) the Borrower shall
be entitled to treat any Lender exercising such option as the Lender in respect
of such Eurodollar Loan for all purposes hereunder, including
Section 2.15.

(c)  At
the commencement of each Interest Period for any Eurodollar Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of
$1,000,000 and not less than $5,000,000. 
At the time that each ABR Revolving

 42
 

Borrowing is made, such Borrowing shall be in an aggregate amount that
is an integral multiple of $1,000,000 and not less than $5,000,000; provided
that an ABR Revolving Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the total Revolving Commitments or that is
required to finance the reimbursement of an LC Disbursement as contemplated by
Section 2.05(e).  Each Committed
Swingline Loan shall be in an amount that is an integral multiple of $500,000
and not less than $1,000,000.  Borrowings
of more than one Type and Class may be outstanding at the same time; provided
that there shall not at any time be more than a total of 12 Eurodollar
Borrowings outstanding.

(d) 
Notwithstanding any other provision of this Agreement, the Borrower
shall not be entitled to request, or to elect to convert or continue, any
Borrowing if the Interest Period requested with respect thereto would end after
the Revolving Maturity Date, Tranche E Maturity Date or the Delayed Draw
Maturity Date, as applicable.

SECTION 2.03. 
Requests for Borrowings. 
To request a Borrowing, the Borrower shall notify the Administrative
Agent of such request by telephone (a) in the case of a Eurodollar
Borrowing, not later than 12:00 noon, New York City time, three
Business Days before the date of the proposed Borrowing or (b) in the case
of an ABR Borrowing, not later than 2:00 p.m., New York City time,
one Business Day before the date of the proposed Borrowing; provided
that any such notice of an ABR Revolving Borrowing to finance the reimbursement
of an LC Disbursement as contemplated by Section 2.05(e) may be given not
later than 10:00 a.m., New York City time, on the date of the proposed
Borrowing.  Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Borrowing Request
in a form approved by the Administrative Agent and signed by the Borrower.  Each such telephonic and written Borrowing
Request shall specify the following information in compliance with
Section 2.02:

(i) whether the requested Borrowing is to be a Revolving Borrowing, a
Tranche E Term Borrowing or Delayed Draw Term Borrowing;

(ii) the aggregate amount of such Borrowing;

(iii) the date of such Borrowing, which shall be a Business Day;

(iv) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing;

(v) in the case of a Eurodollar Borrowing, the initial Interest Period
to be applicable thereto, which shall be a period contemplated by the
definition of the term “Interest Period”; and

(vi) the location and number of the Borrower’s account to which funds
are to be disbursed, which shall comply with the requirements of
Section 2.06.

 43
 

If no election as to the Type of Borrowing is
specified, then the requested Borrowing shall be an ABR Borrowing.  If no Interest Period is specified with
respect to any requested Eurodollar Revolving Borrowing, then the Borrower
shall be deemed to have selected an Interest Period of one month’s
duration.  Promptly following receipt of
a  Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each participating Lender
of the details thereof and of the amount of such Lender’s Loan to be made as
part of the requested Borrowing.

SECTION 2.04. 
Swingline Loans.  (a)  Subject to the terms and conditions set forth
herein, the Committed Swingline Lender agrees to make Committed Swingline Loans
to the Borrower from time to time during the Revolving Availability Period, in
an aggregate principal amount at any time outstanding that will not result in
(i) the aggregate principal amount of outstanding Swingline Loans exceeding
$40,000,000 or (ii) the sum of the total Revolving Exposures exceeding the
total Revolving Commitments; provided that the Committed Swingline
Lender shall not be required to make a Swingline Loan to refinance an
outstanding Swingline Loan.  Within the
foregoing limits and subject to the terms and conditions set forth herein, the
Borrower may borrow, prepay and reborrow Committed Swingline Loans.

(b)  To
request a Committed Swingline Loan, the Borrower shall notify the
Administrative Agent of such request by telephone (confirmed by telecopy), not
later than 1:00 p.m., New York City time, on the day of a proposed
Committed Swingline Loan.  Each such
notice shall be irrevocable and shall specify the requested date (which shall
be a Business Day) and amount of the requested Committed Swingline Loan.  The Administrative Agent will promptly advise
the Committed Swingline Lender of any such notice received from the
Borrower.  The Committed  Swingline Lender shall make each Committed
Swingline Loan available to the Borrower by means of a credit to the general
deposit account of the Borrower with the Committed Swingline Lender (or, in the
case of a Committed Swingline Loan made to finance the reimbursement of an LC
Disbursement as provided in Section 2.05(e), by remittance to the
applicable Issuing Bank) by 3:00 p.m., New York City time, on the
requested date of such Committed Swingline Loan.

(c) 
The Committed Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., New York City time, on any
Business Day require the Revolving Lenders to acquire participations on such
Business Day in all or a portion of the Committed Swingline Loans
outstanding.  Such notice shall specify
the aggregate amount of Committed Swingline Loans in which Revolving Lenders
will participate.  Promptly upon receipt
of such notice, the Administrative Agent will give notice thereof to each
Revolving Lender, specifying in such notice such Lender’s Applicable Percentage
of such Committed Swingline Loan or Loans. 
Each Revolving Lender hereby absolutely and unconditionally agrees, upon
receipt of notice as provided above, to pay to the Administrative Agent, for
the account of the Committed Swingline Lender, such Lender’s Applicable
Percentage of such Committed Swingline Loan or Loans.  Each Revolving Lender acknowledges and agrees
that its obligation to acquire participations in Committed Swingline Loans
pursuant to this paragraph is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including the

 44
 

occurrence and continuance of a Default or reduction or termination of
the Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. 
Each Revolving Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner
as provided in Section 2.06 with respect to Loans made by such Lender (and
Section 2.06 shall apply, mutatis  mutandis, to the payment
obligations of the Revolving Lenders), and the Administrative Agent shall
promptly pay to the Committed Swingline Lender the amounts so received by it
from the Revolving Lenders.  The
Administrative Agent shall notify the Borrower of any participations in any
Committed Swingline Loan acquired pursuant to this paragraph, and thereafter
payments in respect of such Committed Swingline Loan shall be made to the
Administrative Agent and not to the Committed Swingline Lender.  Any amounts received by the Committed
Swingline Lender from the Borrower (or other party on behalf of the Borrower)
in respect of a Committed Swingline Loan after receipt by the Committed
Swingline Lender of the proceeds of a sale of participations therein shall be
promptly remitted to the Administrative Agent; any such amounts received by the
Administrative Agent shall be promptly remitted by the Administrative Agent to
the Revolving Lenders that shall have made their payments pursuant to this
paragraph and to the Committed Swingline Lender, as their interests may appear;
provided that any such payment so remitted shall be repaid to the
Committed Swingline Lender or to the Administrative Agent, as applicable, if
and to the extent such payment is required to be refunded to the Borrower for
any reason.  The purchase of
participations in a Committed Swingline Loan pursuant to this paragraph shall
not relieve the Borrower of any default in the payment thereof.

(d) 
Any Revolving Lender, Tranche E Lender or Delayed Draw Lender may
(but shall not have any obligation to) agree to make, and make, Uncommitted
Swingline Loans to the Borrower from time to time during the Revolving
Availability Period, in an aggregate principal amount at any time outstanding
that will not result in (i) the aggregate principal amount of outstanding
Swingline Loans exceeding $40,000,000 or (ii) the sum of the total
Revolving Exposures exceeding the total Revolving Commitments; provided
that an Uncommitted Swingline Loan shall not be borrowed to refinance an
outstanding Swingline Loan.  Within the
foregoing limits and subject to the terms and conditions set forth herein, the
Borrower may borrow, prepay and reborrow Uncommitted Swingline Loans.

(e) 
Any Uncommitted Swingline Loan may be made pursuant to such procedures
as shall be separately agreed between the Borrower and the relevant Lender,
subject to the following provisions of this paragraph.  Each Lender in respect of an Uncommitted
Swingline Loan that is not the same Person as the Person serving as the
Administrative Agent shall notify the Administrative Agent of (i) the
amount of such Uncommitted Swingline Loan prior to making such Loan and
(ii) any repayment of the principal of such Uncommitted Swingline Loan (in
whole or in part) and the amount of such repayment, promptly upon receipt of
such repayment.

(f)  It
is understood that paragraph (c) of this Section shall not apply to Uncommitted
Swingline Loans and the Revolving Lenders shall not have any obligation to
acquire participations in such Loans.

 45
 

SECTION 2.05. 
Letters of Credit. 
(a)  General.  Subject to the terms and conditions set forth
herein, the Borrower may request the issuance of Letters of Credit for its own
account, in a form reasonably acceptable to the Administrative Agent and the
applicable Issuing Bank, at any time and from time to time during the Revolving
Availability Period.  In the event of any
inconsistency between the terms and conditions of this Agreement and the terms
and conditions of any form of letter of credit application or other agreement
submitted by the Borrower to, or entered into by the Borrower with, any Issuing
Bank relating to any Letter of Credit, the terms and conditions of this
Agreement shall control.

(b)  Notice
of Issuance, Amendment, Renewal, Extension; Certain Conditions.  To request the issuance of a Letter of Credit
(or the amendment, renewal or extension of an outstanding Letter of Credit),
the Borrower shall hand deliver or telecopy (or transmit by electronic
communication, if arrangements for doing so have been approved by the applicable
Issuing Bank) to the relevant Issuing Bank selected by the Borrower to issue
such Letter of Credit and the Administrative Agent (reasonably in advance of
the requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on
which such Letter of Credit is to expire (which shall comply with
paragraph (c) of this Section), the amount of such Letter of Credit, the
name and address of the beneficiary thereof and such other information as shall
be necessary to prepare, amend, renew or extend such Letter of Credit.  If requested by the applicable Issuing Bank,
the Borrower also shall submit a letter of credit application on such Issuing
Bank’s standard form in connection with any request for a Letter of
Credit.  A Letter of Credit shall be
issued, amended, renewed or extended only if (and upon issuance, amendment,
renewal or extension of each Letter of Credit the Borrower shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension (i) the LC Exposure shall not exceed $150,000,000 and
(ii) the total Revolving Exposures shall not exceed the total Revolving
Commitments.

(c)  Expiration
Date.  Each Letter of Credit shall
expire at or prior to the close of business on the earlier of (i) the date
one year after the date of the issuance of such Letter of Credit (or, in the
case of any renewal or extension thereof, one year after such renewal or
extension), subject to renewal provisions reasonably acceptable to the
applicable Issuing Bank (which shall in any event permit such Issuing Bank to
disallow renewal) and (ii) the date that is five Business Days prior to
the Revolving Maturity Date.

(d)  Participations.  By the issuance of a Letter of Credit (or an
amendment to a Letter of Credit increasing the amount thereof) and without any
further action on the part of the applicable Issuing Bank or the Lenders, the
Issuing Bank in respect of such Letter of Credit hereby grants to each
Revolving Lender, and each Revolving Lender hereby acquires from such Issuing
Bank, a participation in such Letter of Credit equal to such Lender’s
Applicable Percentage of the aggregate amount available to be drawn under such
Letter of Credit.  In consideration and
in furtherance of the foregoing, each Revolving Lender hereby absolutely and
unconditionally agrees to pay to the

 46
 

Administrative Agent, for the account of the applicable Issuing Bank,
such Lender’s Applicable Percentage of each LC Disbursement made by such
Issuing Bank and not reimbursed by the Borrower on the date due as provided in
paragraph (e) of this Section, or of any reimbursement payment required to
be refunded to the Borrower for any reason. 
Each Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made
without any offset, abatement, withholding or reduction whatsoever.

(e)  Reimbursement.  If an Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrower shall reimburse
such LC Disbursement by paying to the Administrative Agent an amount equal to
such LC Disbursement not later than 12:00 noon, New York City time, on
(i) the date that such LC Disbursement is made, if the Borrower shall have
received notice of such LC Disbursement prior to 10:00 a.m., New York City
time, on the Business Day immediately preceding the date that such LC
Disbursement is made or (ii) otherwise, the Business Day immediately
following the later of the date that such LC Disbursement is made or the date
of receipt by the Borrower of notice of such LC Disbursement; provided
that, if such LC Disbursement is not less than the applicable minimum borrowing
amount, the Borrower may, subject to the conditions to borrowing set forth
herein, request in accordance with Section 2.03 or 2.04 that such payment
be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent
amount and, to the extent so financed, the Borrower’s obligation to make such
payment shall be discharged and replaced by the resulting ABR Revolving Borrowing
or Swingline Loan.  If the Borrower fails
to make such payment when due, the Administrative Agent shall notify each
Revolving Lender of the applicable LC Disbursement, the payment then due from
the Borrower in respect thereof and such Lender’s Applicable Percentage
thereof.  Promptly following receipt of
such notice, each Revolving Lender shall pay to the Administrative Agent its
Applicable Percentage of the payment then due from the Borrower, in the same
manner as provided in Section 2.06 with respect to Loans made by such
Lender (and Section 2.06 shall apply, mutatis  mutandis, to
the payment obligations of the Revolving Lenders), and the Administrative Agent
shall promptly pay to the applicable Issuing Bank the amounts so received by it
from the Revolving Lenders.  Promptly
following receipt by the Administrative Agent of any payment from the Borrower
pursuant to this paragraph, the Administrative Agent shall distribute such
payment to the applicable Issuing Bank or, to the extent that Revolving Lenders
have made payments pursuant to this paragraph to reimburse such Issuing Bank,
then to such Lenders and such Issuing Bank as their interests may appear.  Any payment made by a Revolving Lender
pursuant to this paragraph to reimburse an Issuing Bank for any LC Disbursement
(other than the funding of ABR Revolving Loans or a Swingline Loan as
contemplated above) shall not constitute a Loan and shall not relieve the
Borrower of its obligation to reimburse such LC Disbursement.

(f)  Obligations
Absolute.  The Borrower’s obligation
to reimburse LC Disbursements as provided in paragraph (e) of this Section
shall be absolute, unconditional and irrevocable, and shall be performed
strictly in accordance with the

 47
 

terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter
of Credit or this Agreement, or any term or provision therein, (ii) any
draft or other document presented under a Letter of Credit proving to be forged,
fraudulent or invalid in any respect or any statement therein being untrue or
inaccurate in any respect, (iii) payment by an Issuing Bank under a Letter
of Credit against presentation of a draft or other document that does not
comply with the terms of such Letter of Credit, or (iv) any other event or
circumstance whatsoever, whether or not similar to any of the foregoing, that
might, but for the provisions of this Section, constitute a legal or equitable
discharge of, or provide a right of setoff against, the Borrower’s obligations
hereunder.  Neither the Administrative
Agent, the Lenders nor any Issuing Bank, nor any of their Related Parties,
shall have any liability or responsibility by reason of or in connection with
the issuance or transfer of any Letter of Credit or any payment or failure to
make any payment thereunder (irrespective of any of the circumstances referred
to in the preceding sentence), or any error, omission, interruption, loss or
delay in transmission or delivery of any draft, notice or other communication
under or relating to any Letter of Credit (including any document required to
make a drawing thereunder), any error in interpretation of technical terms or
any consequence arising from causes beyond the control of any Issuing Bank; provided
that the foregoing shall not be construed to excuse an Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by such Issuing Bank’s failure to exercise care when
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. 
The parties hereto expressly agree that, in the absence of gross
negligence or wilful misconduct on the part of an Issuing Bank (as finally
determined by a court of competent jurisdiction), such Issuing Bank shall be
deemed to have exercised care in each such determination.  In furtherance of the foregoing and without
limiting the generality thereof, the parties agree that, with respect to
documents presented which appear on their face to be in substantial compliance
with the terms of a Letter of Credit, the applicable Issuing Bank may, in its
sole discretion, either accept and make payment upon such documents without
responsibility for further investigation, regardless of any notice or
information to the contrary, or refuse to accept and make payment upon such
documents if such documents are not in strict compliance with the terms of such
Letter of Credit.

(g)  Disbursement
Procedures.  The applicable Issuing
Bank shall, promptly following its receipt thereof, examine all documents
purporting to represent a demand for payment under a Letter of Credit.  Such Issuing Bank shall promptly notify the
Administrative Agent and the Borrower by telephone (confirmed by telecopy) of
such demand for payment and whether such Issuing Bank has made or will make an
LC Disbursement thereunder; provided that any failure to give or delay
in giving such notice shall not relieve the Borrower of its obligation to
reimburse such Issuing Bank and the Revolving Lenders with respect to any such
LC Disbursement.

(h)  Interim
Interest.  If an Issuing Bank shall
make any LC Disbursement, then, unless the Borrower shall reimburse such LC
Disbursement in full on the date such LC Disbursement is made, the unpaid
amount thereof shall bear interest, for each day

 48
 

from and including the date such LC Disbursement is made to but excluding
the date that the Borrower reimburses such LC Disbursement, at the rate per
annum then applicable to ABR Revolving Loans; provided that, if the
Borrower fails to reimburse such LC Disbursement when due pursuant to
paragraph (e) of this Section, then Section 2.13(d) shall apply.  Interest accrued pursuant to this paragraph
shall be for the account of the applicable Issuing Bank, except that interest
accrued on and after the date of payment by any Revolving Lender pursuant to
paragraph (e) of this Section to reimburse such Issuing Bank shall be for
the account of such Lender to the extent of such payment.

(i)  Replacement
or Termination of an Issuing Bank. 
Any Issuing Bank may be replaced at any time by written agreement among
the Borrower, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank.  An Issuing Bank’s
obligations to issue additional Letters of Credit hereunder may be terminated
at any time by written agreement among the Borrower, the Administrative Agent
and such Issuing Bank; provided that after giving effect thereto there
is at least one remaining Issuing Bank obligated to issue Letters of
Credit.  The Administrative Agent shall
notify the Lenders of any such replacement or termination of an Issuing
Bank.  At the time any such replacement
or termination shall become effective, the Borrower shall pay all unpaid fees
accrued for the account of the replaced or terminated Issuing Bank pursuant to
Section 2.12(b).  From and after the
effective date of any such replacement, the successor Issuing Bank shall have
all the rights and obligations of the replaced Issuing Bank under this
Agreement with respect to Letters of Credit to be issued thereafter.  After the replacement or termination of an
Issuing Bank hereunder, the replaced or terminated Issuing Bank shall remain a
party hereto and shall continue to have all the rights and obligations of an
Issuing Bank under this Agreement with respect to Letters of Credit issued by
it prior to such replacement or termination, but shall not be required to issue
additional Letters of Credit.

(j)  Addition
of Issuing Bank.  Any Revolving
Lender may at any time become an Issuing Bank hereunder by written agreement
between the Borrower and such Revolving Lender, subject to notice to and the
consent (not to be unreasonably withheld) of the Administrative Agent.  From and after the effective date of any such
Revolving Lender becoming an Issuing Bank, such Revolving Lender shall have the
rights and obligations of an Issuing Bank under this Agreement.  Any Revolving Lender that becomes an Issuing
Bank shall not cease to be an Issuing Bank hereunder if it later ceases to be a
Revolving Lender hereunder.

(k)  Cash
Collateralization.  If any Event of
Default shall occur and be continuing, on the Business Day that the Borrower
receives notice from the Administrative Agent or the Required Lenders (or, if
the maturity of the Loans has been accelerated, Revolving Lenders with LC
Exposure representing greater than 50% of the total LC Exposure) demanding the
deposit of cash collateral pursuant to this paragraph, the Borrower shall
deposit in an account with the Administrative Agent, in the name of the
Administrative Agent and for the benefit of the Lenders, an amount in cash
equal to the LC Exposure as of such date plus any accrued and unpaid interest
thereon; provided that the obligation to deposit such cash collateral
shall become effective immediately, and such deposit shall become immediately
due and payable, without demand or other notice

 49

of any kind, upon the
occurrence of any Event of Default with respect to the Borrower described in
clause (h) or (i) of Article VII. 
The Borrower also shall deposit cash collateral pursuant to this paragraph
as and to the extent required by Section 2.11(b).  Each such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement.  The Administrative Agent shall have exclusive
dominion and control, including the exclusive right of withdrawal, over such
account.  Other than any interest earned
on the investment of such deposits, which investments shall be made at the
option and sole discretion of the Administrative Agent and at the Borrower’s
risk and expense, such deposits shall not bear interest.  Interest or profits, if any, on such
investments shall accumulate in such account. 
Moneys in such account shall be applied by the Administrative Agent to
reimburse any Issuing Bank for LC Disbursements for which it has not been
reimbursed and, to the extent not so applied, shall be held for the
satisfaction of the reimbursement obligations of the Borrower for the LC
Exposure at such time or, if the maturity of the Loans has been accelerated
(but subject to the consent of Revolving Lenders with LC Exposure  representing greater than 50% of the total LC
Exposure), be applied to satisfy other obligations of the Borrower under this
Agreement.  If the Borrower is required
to provide an amount of cash collateral hereunder as a result of the occurrence
of an Event of Default, such amount (to the extent not applied as aforesaid)
shall be returned to the Borrower within three Business Days after all Events
of Default have been cured or waived.

(l)  Certain
Notices by Issuing Banks.  Each
Issuing Bank that is not the same Person as the Person serving as the
Administrative Agent shall notify the Administrative Agent of (i) the
amount and expiration date of each Letter of Credit issued by such Issuing Bank
at or prior to the time of issuance thereof, (ii) any amendment or
modification to any such Letter of Credit at or prior to the time of such
amendment or modification and (iii) any termination, surrender,
cancelation or expiry of any such Letter of Credit at or prior to the time of
such termination, surrender, cancelation or expiration.

(m)  Existing
Letters of Credit.  All Existing
Letters of Credit shall be deemed to be Letters of Credit issued under this
Agreement as of the Original Effective Date and thereupon shall constitute
Letters of Credit for all purposes of the Loan Documents.

SECTION 2.06. 
Funding of Borrowings. 
(a)  Each Lender shall make each
Loan to be made by it hereunder on the proposed date thereof by wire transfer
of immediately available funds by 12:00 noon, New York City time, to the
account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders; provided that Swingline Loans shall be
made as provided in Section 2.04. 
The Administrative Agent will make such Loans available to the Borrower
by promptly crediting the amounts so received, in like funds, to an account of
the Borrower maintained with the Administrative Agent in New York City and
designated by the Borrower in the applicable Borrowing Request; provided
that ABR Revolving Loans made to finance the reimbursement of an LC
Disbursement as provided in Section 2.05(e) shall be remitted by the
Administrative Agent to the applicable Issuing Bank.

 50
 

(b) 
Unless the Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Borrowing that such Lender will not make
available to the Administrative Agent such Lender’s share of such Borrowing,
the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount.  In such event, if
a Lender has not in fact made its share of the applicable Borrowing available
to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount with interest thereon, for each day from and including the
date such amount is made available to the Borrower to but excluding the date of
payment to the Administrative Agent, at (i) in the case of such Lender,
the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank
compensation or (ii) in the case of the Borrower, the interest rate
applicable to ABR Loans.  If such Lender
pays such amount to the Administrative Agent, then such amount shall constitute
such Lender’s Loan included in such Borrowing.

SECTION 2.07. 
Interest Elections. 
(a)  Each Revolving Borrowing and
Term Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an
initial Interest Period as specified in such Borrowing Request.  Thereafter, the Borrower may elect to convert
such Borrowing to a different Type or to continue such Borrowing and, in the
case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as
provided in this Section.  The Borrower
may elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate Borrowing.  This Section shall not apply to Swingline
Borrowings, which may not be converted or continued.

(b)  To
make an election pursuant to this Section, the Borrower shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing
Request would be required under Section 2.03 if the Borrower were
requesting a Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. 
Each such telephonic Interest Election Request shall be irrevocable and
shall be confirmed promptly by hand delivery or telecopy to the Administrative
Agent of a written Interest Election Request in a form approved by the
Administrative Agent and signed by the Borrower.

(c) 
Each telephonic and written Interest Election Request shall specify the
following information in compliance with Section 2.02:

(i) the Borrowing to which such Interest Election Request applies and,
if different options are being elected with respect to different portions
thereof, the portions thereof to be allocated to each resulting Borrowing (in
which case the information to be specified pursuant to clauses (iii) and
(iv) below shall be specified for each resulting Borrowing);

 51
 

(ii) the effective date of the election made pursuant to such Interest
Election Request, which shall be a Business Day;

(iii) whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and

(iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest
Period to be applicable thereto after giving effect to such election, which
shall be a period contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a
Eurodollar Borrowing but does not specify an Interest Period, then the Borrower
shall be deemed to have selected an Interest Period of one month’s duration.

(d) 
Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of
such Lender’s portion of each resulting Borrowing.

(e)  If
the Borrower fails to deliver a timely Interest Election Request with respect
to a Eurodollar Borrowing prior to the end of the Interest Period applicable
thereto, then, unless such Borrowing is repaid as provided herein, at the end
of such Interest Period such Borrowing shall be converted to an ABR
Borrowing.  Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the
Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a Eurodollar
Borrowing and (ii) unless repaid, each Eurodollar Borrowing shall be
converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

SECTION 2.08. 
Termination and Reduction of Commitments.  (a) 
Unless previously terminated, the Revolving Commitments shall terminate
on the Revolving Maturity Date.  The
Tranche E Commitments terminated on the Third Restatement Effective Date upon
funding of the Tranche E Term Loans. 
Unless previously terminated, the Delayed Draw Commitments shall
terminate on the earlier of the date on which Delayed Draw Term Loans are
borrowed hereunder (after giving effect to the borrowing thereof) and the close
of business on November 1, 2007.

(b) 
The Borrower may at any time terminate, or from time to time reduce, the
Commitments of any Class; provided that (i) each reduction of the
Commitments of any Class shall be in an amount that is an integral multiple of
$1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not
terminate or reduce the Revolving Commitments if, after giving effect to any
concurrent prepayment of the Revolving Loans in accordance with
Section 2.11, the sum of the Revolving Exposures would exceed the total
Revolving Commitments.

(c) 
The Borrower shall notify the Administrative Agent of any election to
terminate or reduce the Commitments of any Class under paragraph (b) of
this Section at least three Business Days prior to the effective date of such
termination or reduction,

 52
 

specifying such election and the effective date thereof.  Promptly following receipt of any such
notice, the Administrative Agent shall advise the Lenders of the applicable
Class of the contents thereof.  Each
notice delivered by the Borrower pursuant to this Section shall be irrevocable;
provided that a notice of termination of the Revolving Commitments
delivered by the Borrower may state that such notice is conditioned upon the
effectiveness of other credit facilities, in which case such notice may be
revoked by the Borrower (by notice to the Administrative Agent on or prior to
the specified effective date) if such condition is not satisfied.  Any termination or reduction of the
Commitments of any Class shall be permanent. 
Each reduction of the Commitments of any Class shall be made ratably
among the Lenders in accordance with their respective Commitments of such
Class.

SECTION 2.09. 
Repayment of Loans; Evidence of Debt.  (a) 
The Borrower hereby unconditionally promises to pay (i) to the
Administrative Agent for the account of each Lender the then unpaid principal
amount of each Revolving Loan of such Lender on the Revolving Maturity Date, (ii) to
the Administrative Agent for the account of each Lender the then unpaid
principal amount of each Tranche E Term Loan of such Lender as provided in
Section 2.10, (iii) to the Administrative Agent for the account of
each Lender the then unpaid principal amount of each Delayed Draw Term Loan of
such Lender as provided in Section 2.10 and (iv) to each Swingline
Lender the then unpaid principal amount of each Swingline Loan of such Lender
on the earlier of the Revolving Maturity Date and the date that is five
Business Days after such Swingline Loan is made; provided that on each
date that a Revolving Borrowing is made, the Borrower shall repay all Swingline
Loans that were outstanding on the date such Borrowing was requested.

(b) 
Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing the indebtedness of the Borrower to such Lender
resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

(c) 
The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made to the Borrower hereunder, the
Class and Type thereof and the Interest Period applicable thereto, (ii) the
amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder and (iii) the amount of
any sum received by the Administrative Agent hereunder for the account of the
Lenders and each Lender’s share thereof.

(d)  The
entries made in the accounts maintained pursuant to paragraph (b) or (c)
of this Section shall be prima  facie evidence of the existence
and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligations of the
Borrower to repay the Loans in accordance with the terms of this Agreement.

(e) 
Any Lender may request that Loans of any Class made by it be evidenced
by a promissory note.  In such event, the
Borrower shall prepare, execute and deliver to such Lender a promissory note
payable to the order of such Lender (or, if

 53
 

requested by such Lender, to such Lender and its registered assigns)
and in a form approved by the Administrative Agent.  Thereafter, the Loans evidenced by such
promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more promissory
notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered
assigns).

SECTION 2.10. 
Amortization of Term Loans. 
(a)  Subject to adjustment
pursuant to paragraph (d) of this Section, the Borrower shall repay
Tranche E Term Borrowings on each date set forth below in the aggregate
principal amount set forth opposite such date:

	
  Date

  	
   

  	
  Amount

  	
   

  
	
  June 30, 2007

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  September 30,
  2007

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  December 31,
  2007

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  March 31, 2008

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  June 30, 2008

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  September 30,
  2008

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  March 31, 2009

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  June 30, 2009

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  December 31,
  2009

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  March 31, 2010

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  June 30, 2010

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  September 30,
  2010

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  December 31,
  2010

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  March 31, 2011

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  June 30, 2011

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  September 30,
  2011

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  December 31,
  2011

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  March 31, 2012

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  June 30, 2012

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  September 30,
  2012

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  December 31,
  2012

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  March 31, 2013

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  June 30, 2013

  	
   

  	
  $

  	
  1,312,500

  	
   

  
	
  September 30,
  2013

  	
   

  	
  $

  	
  246,093,750

  	
   

  
	
  Tranche E Maturity Date

  	
   

  	
  $

  	
  246,093,750

  	
   

  

 

(b) 
Subject to adjustment pursuant to paragraph (d) of this Section,
the Borrower shall repay Delayed Draw Term Loans (i) in consecutive
quarterly installments on each March 31, June 30, September 30
and December 31 ending after the date on which any Delayed Draw Term Loans
are borrowed, commencing on December 31, 2007, and ending on and including
June 30, 2013, in an amount for each such date equal to 0.25% of the
aggregate original principal amount of all Delayed Draw Term Loans

 54
 

borrowed, and (ii) on each of September 30, 2013, and the
Delayed Draw Maturity Date in installments equal to 47.125% of the aggregate
original principal amount of all Delayed Draw Term Loans borrowed.

(c)  To
the extent not previously paid (i) all Tranche E Term Loans shall be
due and payable on the Tranche E Maturity Date and (ii) all Delayed
Draw Term Loans shall be due and payable on the Delayed Draw Maturity Date.

(d) 
Any prepayment of a Term Borrowing of any Class shall be applied to
reduce the subsequent scheduled repayments of the Term Borrowings of such Class
to be made pursuant to this Section in the direct chronological order of
maturity.  If the initial aggregate
amount of the Lenders’ Tranche E Commitments exceeds the aggregate
principal amount of Tranche E Term Loans made on the Third Restatement
Effective Date, then the scheduled repayments of Tranche E Term Borrowings
to be made pursuant to this Section shall be reduced ratably by an aggregate
amount equal to such excess.

(e) 
Prior to any repayment of any Term Borrowings of any Class hereunder,
the Borrower shall select the Borrowing or Borrowings of such Class to be
repaid and shall notify the Administrative Agent by telephone (confirmed by
telecopy) of such selection not later than 11:00 a.m., New York City time,
three Business Days before the scheduled date of such repayment.  Each repayment of a Term Borrowing shall be
applied ratably to the Loans included in the repaid Borrowing.  Repayments of Term Borrowings shall be
accompanied by accrued interest on the amount repaid.

SECTION 2.11. 
Prepayment of Loans. 
(a)  The Borrower shall have the
right at any time and from time to time to prepay any Borrowing in whole or in
part, subject to the requirements of this Section.

(b)  In
the event and on each occasion that the sum of the Revolving Exposures exceeds
the total Revolving Commitments, the Borrower shall prepay Revolving Borrowings
or Swingline Borrowings (or, if no such Borrowings are outstanding, deposit
cash collateral in an account with the Administrative Agent pursuant to
Section 2.05(k)) in an aggregate amount equal to such excess.

(c)  In
the event and on each occasion that any Net Proceeds are received by or on
behalf of Holdings, the Borrower or any Subsidiary in respect of any Prepayment
Event, the Borrower shall, within three Business Days after such Net Proceeds
are so received, prepay Term Borrowings in accordance with paragraph (e) below
in an aggregate amount equal to 100% of such Net Proceeds; provided
that, in the case of any event described in clause (a) or (b) of the
definition of the term Prepayment Event and subject to Section 6.06, if
the Borrower shall deliver to the Administrative Agent a certificate of a
Financial Officer of the Borrower to the effect that the Borrower or its
Subsidiaries intend to apply the Net Proceeds from such event (or a portion
thereof specified in such certificate), within 360 days after receipt of
such Net Proceeds, to acquire real property, equipment or other tangible assets
to be used in the business of the Borrower or its Subsidiaries, and certifying
that no Default has occurred and is continuing, then no prepayment shall be
required pursuant to this paragraph in respect of

 55
 

the Net Proceeds in respect of such event (or the portion of such Net
Proceeds specified in such certificate, if applicable) except to the extent of
any such Net Proceeds therefrom that have not been so applied by the end of
such 360-day period, at which time a prepayment shall be required in an amount
equal to such Net Proceeds that have not been so applied.  In addition, in the event and on each
occasion that the Borrower or any Subsidiary shall sell, lease or otherwise
dispose of any asset (whether or not such transaction shall constitute a
Prepayment Event), if the Borrower would be required to prepay or redeem, or to
offer to prepay or redeem, any Subordinated Debt or any Senior Unsecured Debt
as a result of such transaction unless the proceeds of such transaction are
applied within a specified period to prepay Term Borrowings (or otherwise
reinvested as permitted in accordance with the terms of such Subordinated Debt
or Senior Unsecured Debt, as applicable), then the Borrower shall (unless such
proceeds are otherwise reinvested within the specified period in a manner that
relieves the Borrower of any such requirement in respect of the Subordinated
Debt or Senior Unsecured Debt, as applicable) prepay Term Borrowings in
accordance with paragraph (e) below within such specified period to the extent
necessary to relieve the Borrower of any such requirement.

(d) 
Following the end of each fiscal year of the Borrower, commencing with
the fiscal year ending December 31, 2007, the Borrower shall prepay Term
Borrowings in accordance with paragraph (e) below in an aggregate amount equal
to the excess, if any, of (A) 50% of Excess Cash Flow for such fiscal year
over (B) the aggregate principal amount of Term Loans optionally prepaid
during the period from and including March 31 of the fiscal year for which
Excess Cash Flow is being calculated to but excluding March 31 of the
fiscal year during which such prepayment is being made (or, if earlier, the
date on which such prepayment is made); provided that (i) the
aggregate prepayment amount required by this paragraph in respect of a fiscal
year shall be calculated based upon 25% (instead of 50%) of Excess Cash Flow
for such fiscal year if the Leverage Ratio is less than 4.0 to 1.0 on the last
day of such fiscal year and (ii) no prepayment shall be required by this
paragraph in respect of Excess Cash Flow for any fiscal year if the Leverage
Ratio is less than 3.5 to 1.0 on the last day of such fiscal year.  Each prepayment pursuant to this paragraph
shall be made on or before the date on which financial statements are delivered
pursuant to Section 5.01 with respect to the fiscal year for which Excess
Cash Flow is being calculated (and in any event within 90 days after the
end of such fiscal year).

(e) 
Prior to any optional or mandatory prepayment of Borrowings under this
Section, the Borrower shall select the Borrowing or Borrowings to be prepaid
and shall specify such selection in the notice of such prepayment pursuant to
paragraph (f) of this Section.  In
the event of any such optional or mandatory prepayment of Term Borrowings made
at a time when Term Borrowings of both Classes remain outstanding, the Borrower
shall select Term Borrowings to be prepaid so that the aggregate amount of such
prepayment is allocated between the Tranche E Term Borrowings and Delayed Draw
Borrowings pro rata based on the aggregate principal amount of then outstanding
Borrowings of each such Class.

(f) 
The Borrower shall notify the Administrative Agent (and, in the case of
prepayment of a Swingline Loan, the relevant Swingline Lender) by telephone

 56
 

(confirmed by telecopy) of any prepayment hereunder (i) in the
case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m.,
New York City time, three Business Days before the date of prepayment,
(ii) in the case of prepayment of an ABR 
Borrowing, not later than 11:00 a.m., New York City time, one
Business Day before the date of prepayment or (iii) in the case of
prepayment of a Swingline Loan, not later than 12:00 noon, New York City
time, on the date of prepayment.  Each
such notice shall be irrevocable and shall specify the prepayment date, the
principal amount of each Borrowing or portion thereof to be prepaid and, in the
case of a mandatory prepayment, a reasonably detailed calculation of the amount
of such prepayment; provided that, if a notice of optional prepayment is
given in connection with a conditional notice of termination of the Revolving
Commitments as contemplated by Section 2.08, then such notice of
prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.08. 
Promptly following receipt of any such notice (other than a notice
relating solely to Swingline Loans), the Administrative Agent shall advise the
relevant Lenders of the contents thereof. 
Each partial prepayment of any Borrowing shall be in an amount that
would be permitted in the case of an advance of a Borrowing of the same Type as
provided in Section 2.02, except as necessary to apply fully the required
amount of a mandatory prepayment.  Each
prepayment of a Borrowing shall be applied ratably to the Loans included in the
prepaid Borrowing.  Prepayments shall be
accompanied by accrued interest to the extent required by Section 2.13.

(g) 
All prepayments of Tranche E Term Loans or Delayed Draw Term Loans
effected on or prior to the date that is one year after the Third Restatement
Effective Date with the proceeds of a substantially concurrent issuance or
incurrence of new secured credit facilities (excluding a refinancing of all the
facilities outstanding under this Agreement in connection with another
transaction not permitted by this Agreement (as determined prior to giving
effect to any amendment or waiver of this Agreement being adopted in connection
with such transaction)  so long as the
primary purpose of such transaction is not to refinance Indebtedness hereunder
at an Applicable Rate or similar interest rate spread more favorable to the
Borrower), shall be accompanied by a prepayment fee equal to 1.00% of the
aggregate amount of such prepayments if the Applicable Rate or similar interest
rate spread applicable to such new term loans is or, upon the satisfaction of
certain conditions, could be less than the Applicable Rate applicable to the
Tranche E Term Loans or Delayed Draw Term Loans, as the case may be, as of the
Third Restatement Effective Date.

SECTION 2.12. 
Fees.  (a)  The Borrower agrees to pay to the
Administrative Agent (i) for the account of each Revolving Lender a
commitment fee, which shall accrue at the rate of 0.50% per annum on the
average daily unused amount of the Revolving Commitment of such Lender during
the period from and including the Original Effective Date to but excluding the
date on which such Revolving Commitment terminates and (ii) for the
account of each Delayed Draw Loan Lender a commitment fee, which shall accrue
at the rate of 1.50% per annum on the daily unused amount of the Delayed Draw
Commitment of such Lender during the period from and including the Third
Restatement Effective Date to but excluding the date on which such Delayed Draw
Commitment terminates.  Accrued
commitment fees shall be payable in arrears on the last day of March, June,
September and December of each year and on the date on which

 57
 

the Commitments of the applicable Class terminate, commencing on the
first such date to occur after the Third Restatement Effective Date.  All commitment fees shall be computed on the
basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).  For purposes of computing commitment fees, a
Revolving Commitment of a Lender shall be deemed to be used to the extent of
the outstanding Revolving Loans and LC Exposure of such Lender (and the
Swingline Exposure of such Lender shall be disregarded for such purpose).

(b) 
The Borrower agrees to pay (i) to the Administrative Agent for the
account of each Revolving Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Rate as applicable for purposes of determining the interest rate applicable to
Eurodollar Revolving Loans on the average daily amount of such Lender’s LC
Exposure (excluding any portion thereof attributable to unreimbursed LC
Disbursements) during the period from and including the Original Effective Date
to but excluding the later of the date on which such Lender’s Revolving
Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to each Issuing Bank a fronting fee, which shall accrue
at the rate of 0.25% per annum (or such other rate separately agreed upon
between the Borrower and such Issuing Bank) on the average daily amount of the
LC Exposure attributable to Letters of Credit issued by such Issuing Bank
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Original Effective Date to but
excluding the later of the date of termination of the Revolving Commitments and
the date on which there ceases to be any such LC Exposure, as well as such
Issuing Bank’s standard fees with respect to the issuance, amendment, renewal
or extension of any Letter of Credit or processing of drawings thereunder.  Participation fees and fronting fees accrued
through and including the last day of March, June, September and December of
each year shall be payable on the third Business Day following such last day,
commencing on the first such date to occur after the Original Effective Date; provided
that all such fees shall be payable on the date on which the Revolving
Commitments terminate and any such fees accruing after the date on which the
Revolving Commitments terminate shall be payable on demand.  Any other fees payable to an Issuing Bank
pursuant to this paragraph shall be payable within 10 days after demand.  All participation fees and fronting fees
shall be computed on the basis of a year of 360 days and shall be payable
for the actual number of days elapsed (including the first day but excluding
the last day).

(c) 
The Borrower agrees to pay to the Administrative Agent, for its own
account, fees payable in the amounts and at the times separately agreed to be
payable to the Administrative Agent.

(d) 
All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent (or to the applicable
Issuing Bank, in the case of fees payable to it) for distribution, in the case
of commitment fees and participation fees, to the Lenders entitled
thereto.  Fees paid shall not be
refundable under any circumstances.

 58
 

SECTION 2.13. 
Interest.  (a)  The Loans comprising each ABR Borrowing
(including each Committed Swingline Loan) shall bear interest at the Alternate
Base Rate plus the Applicable Rate.

(b) 
The Loans comprising each Eurodollar Borrowing shall bear interest at
the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing
plus the Applicable Rate.

(c) 
Each Uncommitted Swingline Loan shall bear interest at such rate per
annum as shall be separately agreed by the Borrower and the relevant
Uncommitted Swingline Lender; provided that such rate shall not exceed
the rate applicable to ABR Revolving Loans as provided in paragraph (a) of this
Section.

(d) 
Notwithstanding the foregoing, if any principal of or interest on any
Loan or any fee or other amount payable by the Borrower hereunder is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2%
plus the rate otherwise applicable to such Loan as provided in the preceding
paragraphs of this Section or (ii) in the case of any other amount, 2%
plus the rate applicable to ABR Revolving Loans as provided in
paragraph (a) of this Section.

(e) 
Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan and, in the case of Revolving Loans, upon
termination of the Revolving Commitments; provided that
(i) interest accrued pursuant to paragraph (c) of this Section shall
be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of
the Revolving Availability Period), accrued interest on the principal amount
repaid or prepaid shall be payable on the date of such repayment or prepayment
and (iii) in the event of any conversion of any Eurodollar Loan prior to
the end of the current Interest Period therefor, accrued interest on such Loan
shall be payable on the effective date of such conversion.

(f) 
All interest hereunder shall be computed on the basis of a year of
360 days, except that interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).  The applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

SECTION 2.14. 
Alternate Rate of Interest. 
If prior to the commencement of any Interest Period for a Eurodollar
Borrowing:

(a)  the Administrative Agent
determines (which determination shall be conclusive absent manifest error) that
adequate and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate for such Interest Period; or

 59
 

(b)  the Administrative Agent is
advised by the Required Lenders that the Adjusted LIBO Rate for such Interest
Period will not adequately and fairly reflect the cost to such Lenders of
making or maintaining their Loans included in such Borrowing for such Interest
Period;

then the Administrative Agent shall give notice
thereof to the Borrower and the Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Administrative Agent notifies the
Borrower and the Lenders that the circumstances giving rise to such notice no
longer exist, (i) any Interest Election Request that requests the
conversion of any Borrowing to, or continuation of any  Borrowing as, a Eurodollar Borrowing shall be
ineffective and (ii) if any Borrowing Request requests a Eurodollar
Borrowing, such Borrowing shall be made as an ABR Borrowing.

SECTION 2.15. 
Increased Costs.  (a)  If any Change in Law shall:

(i) impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of, or
credit extended by, any Lender (except any such reserve requirement reflected
in the Adjusted LIBO Rate) or any Issuing Bank; or

(ii) impose on any Lender or any Issuing Bank or the London interbank
market any other condition affecting this Agreement or Eurodollar Loans made by
such Lender or any Letter of Credit issued by such Issuing Bank or
participation therein;

and the result of any of the foregoing shall be to
increase the cost to such Lender of making or maintaining any Eurodollar Loan
(or of maintaining its obligation to make any such Loan) or to increase the cost
to such Lender or such Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable
by such Lender or such Issuing Bank hereunder (whether of principal, interest
or otherwise), then the Borrower agrees to pay to such Lender or such Issuing
Bank, as the case may be, such additional amount or amounts as will compensate
such Lender or such Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

(b)  If
any Lender or an Issuing Bank determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of
return on such Lender’s or such Issuing Bank’s capital or on the capital of
such Lender’s or such Issuing Bank’s holding company, if any, as a consequence
of this Agreement or the Loans made by, or participations in Letters of Credit
held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to
a level below that which such Lender or such Issuing Bank or such Lender’s or
such Issuing Bank’s holding company could have achieved but for such Change in
Law (taking into consideration such Lender’s or such Issuing Bank’s policies
and the policies of such Lender’s or such Issuing Bank’s holding company with
respect to capital adequacy), then from time to time the Borrower agrees to pay
to such Lender or such Issuing Bank, as the case may be, such additional amount
or

 60
 

amounts as will compensate such Lender or such Issuing Bank or such
Lender’s or such Issuing Bank’s holding company for any such reduction
suffered.

(c)  A
certificate of a Lender or an Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or such Issuing Bank or its holding
company, as the case may be, as specified in paragraph (a) or (b) of this
Section shall be delivered to the Borrower and shall be conclusive absent
manifest error.  The Borrower shall pay
such Lender or such Issuing Bank, as the case may be, the amount shown as due
on any such certificate within 10 days after receipt thereof.

(d) 
Failure or delay on the part of any Lender or any Issuing Bank to demand
compensation pursuant to this Section shall not constitute a waiver of such
Lender’s or such Issuing Bank’s right to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender or an Issuing
Bank pursuant to this Section for any increased costs or reductions incurred
more than 180 days prior to the date that such Lender or such Issuing
Bank, as the case may be, notifies the Borrower of the Change in Law giving
rise to such increased costs or reductions and of such Lender’s or such Issuing
Bank’s intention to claim compensation therefor; provided  further
that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the 180-day period referred to above shall be extended to
include the period of retroactive effect thereof.

SECTION 2.16. 
Break Funding Payments.  In
the event of (a) the payment of any principal of any Eurodollar Loan other
than on the last day of an Interest Period applicable thereto (including as a
result of an Event of Default), (b) the conversion of any Eurodollar Loan
other than on the last day of the Interest Period applicable thereto,
(c) the failure to borrow, convert, continue or prepay any Revolving Loan
or Term Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice may be revoked under Section 2.11(f)
and is revoked in accordance therewith), or (d) the assignment of any
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by the Borrower pursuant to Section 2.19,
then, in any such event, the Borrower shall compensate each Lender for the loss,
cost and expense attributable to such event. 
In the case of a Eurodollar Loan, such loss, cost or expense to any
Lender shall be deemed to include an amount determined reasonably and in good
faith by such Lender to be the excess, if any, of (i) the amount of interest
which would have accrued on the principal amount of such Loan had such event
not occurred, at the Adjusted LIBO Rate that would have been applicable to such
Loan, for the period from the date of such event to the last day of the then
current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period
for such Loan), over (ii) the amount of interest which would accrue on
such principal amount for such period at the interest rate which such Lender
would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar
market.  A certificate of any Lender
setting forth any amount or amounts that such Lender is entitled to receive
pursuant to this Section shall be delivered to the Borrower and shall be
conclusive absent manifest error.  The
Borrower shall pay such Lender the amount shown as due on any such certificate
within 10 days after receipt thereof.

 61
 

SECTION 2.17. 
Taxes.  (a)  Any and all payments by or on account of any
obligation of the Borrower hereunder or under any other Loan Document shall be
made free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided that if the Borrower shall be required to deduct any
Indemnified Taxes or Other Taxes from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent, Lender or Issuing Bank (as the case may
be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

(b)  In
addition, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

(c)  The
Borrower shall indemnify the Administrative Agent, each Lender and each Issuing
Bank, within 10 days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender
or such Issuing Bank, as the case may be, on or with respect to any payment by
or on account of any obligation of the Borrower hereunder or under any other
Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted
on or attributable to amounts payable under this Section) and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender or an Issuing Bank,
or by the Administrative Agent on its own behalf or on behalf of a Lender or an
Issuing Bank, shall be conclusive absent manifest error.

(d)  As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

(e) 
Any Foreign Lender that is entitled to an exemption from or reduction of
withholding tax under the law of the jurisdiction in which the Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate; provided that such Foreign
Lender has received written notice from the Borrower advising it of the
availability of such exemption or reduction and supplying all applicable
documentation.

 62
 

(f)  If
the Administrative Agent or a Lender determines, in its sole discretion, that
it has received a refund of any Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 2.17, it shall pay over such
refund to the Borrower (but only to the extent of indemnity payments made, or
additional amounts paid, by the Borrower under this Section 2.17 with
respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of the 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 the Borrower, upon the
request of the Administrative Agent or such Lender, agrees to repay the amount
paid over to the Borrower (plus any penalties, interest or other charges
imposed by the relevant Governmental Authority) to the Administrative Agent or
such Lender in the event the Administrative Agent or such Lender is required to
repay such refund to such Governmental Authority.  This Section shall not be construed to
require the Administrative Agent or any Lender to make available its tax
returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

SECTION 2.18. 
Payments Generally; Pro Rata Treatment; Sharing of Setoffs.  (a) 
The Borrower shall make each payment required to be made by it hereunder
or under any other Loan Document (whether of principal, interest, fees or
reimbursement of LC Disbursements, or of amounts payable under
Section 2.15, 2.16 or 2.17, or otherwise) prior to the time expressly
required hereunder or under such other Loan Document for such payment (or, if
no such time is expressly required, prior to 12:00 noon, New York City time),
on the date when due, in immediately available funds, without set-off or
counterclaim.  Any amounts received after
such time on any date may, in the discretion of the Administrative Agent, be
deemed to have been received on the next succeeding Business Day for purposes
of calculating interest thereon.  All
such payments shall be made to the Administrative Agent at its offices at
270 Park Avenue, New York, New York, except payments to be made directly
to an Issuing Bank or a Swingline Lender as expressly provided herein and
except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall
be made directly to the Persons entitled thereto and payments pursuant to other
Loan Documents shall be made to the Persons specified therein.  The Administrative Agent shall distribute any
such payments received by it for the account of any other Person to the
appropriate recipient promptly following receipt thereof.  If any payment under any Loan Document shall
be due on a day that is not a Business Day, the date for payment shall be
extended to the next succeeding Business Day, and, in the case of any payment
accruing interest, interest thereon shall be payable for the period of such
extension.  All payments under each Loan
Document shall be made in dollars.

(b)  If
at any time insufficient funds are received by and available to the
Administrative Agent to pay fully all amounts of principal, unreimbursed LC
Disbursements, interest and fees then due hereunder, such funds shall be
applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second,
towards payment of principal and unreimbursed LC

 63
 

Disbursements then due hereunder, ratably among the parties entitled
thereto in accordance with the amounts of principal and unreimbursed LC
Disbursements then due to such parties.

(c)  If
any Lender shall, by exercising any right of set-off or counterclaim or
otherwise, obtain payment in respect of any principal of or interest on any of
its Revolving Loans, Term Loans or participations in LC Disbursements or
Committed Swingline Loans resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Revolving Loans, Term Loans
and participations in LC Disbursements and Committed Swingline Loans and
accrued interest thereon than the proportion received by any other Lender, then
the Lender receiving such greater proportion shall purchase (for cash at face
value) participations in the Revolving Loans, Term Loans and participations in
LC Disbursements and Committed Swingline Loans of other Lenders to the extent
necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Revolving Loans, Term Loans and
participations in LC Disbursements and Committed Swingline Loans; provided
that (i) if any such participations are purchased and all or any portion
of the payment giving rise thereto is recovered,  such participations shall be rescinded and
the purchase price restored to the extent of such recovery, without interest,
and (ii) the provisions of this paragraph shall not be construed to apply
to any payment made by the Borrower pursuant to and in accordance with the
express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Loans or participations in LC Disbursements to any assignee or participant,
other than to the Borrower or any Subsidiary or Affiliate thereof (as to which
the provisions of this paragraph shall apply). 
The Borrower consents to the foregoing and agrees, to the extent it may
effectively do so under applicable law, that any Lender acquiring a
participation pursuant to the foregoing arrangements may exercise against the
Borrower rights of set-off and counterclaim with respect to such participation
as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

(d) 
Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to the Administrative
Agent for the account of the Lenders or an Issuing Bank hereunder that the
Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or such Issuing Bank,
as the case may be, the amount due.  In
such event, if the Borrower has not in fact made such payment, then each of the
Lenders or the applicable Issuing Bank, as the case may be, severally agrees to
repay to the Administrative Agent forthwith on demand the amount so distributed
to such Lender or such Issuing Bank with interest thereon, for each day from
and including the date such amount is distributed to it to but excluding the
date of payment to the Administrative Agent, at the greater of the Federal
Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

 64

(e)  If any Lender shall fail to
make any payment required to be made by it pursuant to Section 2.04(c),
2.05(d) or (e), 2.06(b), 2.18(d) or 9.03(c), then the Administrative Agent may,
in its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender’s obligations under such Sections until all such
unsatisfied obligations are fully paid.

SECTION 2.19.  Mitigation
Obligations; Replacement of Lenders. 
(a)  If any Lender requests
compensation under Section 2.15, or if the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.17, then such Lender shall use
reasonable efforts to designate a different lending office for funding or
booking its Loans hereunder or to assign its rights and obligations hereunder
to another of its offices, branches or affiliates, if, in the judgment of such
Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in
the future and (ii) would not subject such Lender to any unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment.

(b)  If any Lender requests
compensation under Section 2.15, or if the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 2.17, or if any Lender defaults in its
obligation to fund Loans hereunder, then the Borrower may, at its sole expense
and effort, upon notice to such Lender and the Administrative Agent, require
such Lender to assign and delegate, without recourse (in accordance with and
subject to the restrictions contained in Section 9.04), all its interests,
rights and obligations under this Agreement to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts
such assignment); provided that (i) the Borrower shall have
received the prior written consent of the Administrative Agent (and, if a
Revolving Commitment is being assigned, each Issuing Bank and the Committed
Swingline Lender), which consent shall not be unreasonably withheld,
(ii) such Lender shall have received payment of an amount equal to the
outstanding principal of its Loans and participations in LC Disbursements and
Swingline Loans, accrued interest thereon, accrued fees and all other amounts
payable to it hereunder from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all other
amounts) and (iii) in the case of any such assignment resulting from a
claim for compensation under Section 2.15 or payments required to be made
pursuant to Section 2.17, such assignment will result in a material
reduction in such compensation or payments. 
A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

SECTION 2.20.  Increase in
Revolving Credit Commitments. 
(a)  The Borrower may, by written
notice to the Administrative Agent (which shall promptly deliver a copy thereof
to each of the Revolving Lenders), request that the total Revolving Commitments
be increased (a “Revolving Commitment Increase”); provided that
the total

 65
 

Revolving
Commitments shall not be increased by more than $25,000,000 during the term of
this Agreement pursuant to this Section. 
Such notice shall set forth (i) the amount of the requested increase in
the total Revolving Commitments and the date on which such increase is
requested to become effective and (ii) whether the Borrower desires to effect
all or any portion of such increase by offering the Revolving Lenders the
opportunity to ratably increase their Revolving Commitments.  If such notice indicates that the Borrower
elects to offer Revolving Lenders the opportunity to ratably increase their
Revolving Commitments, the Administrative Agent will notify the Revolving
Lenders of such offer and the amount of the proposed increase to be offered
ratably to the Revolving Lenders, and each Revolving Lender shall, by notice to
the Borrower and the Administrative Agent given not more than 10 days
after the date of the Borrower’s notice, either agree to increase its Revolving
Commitment by all or a portion of the offered amount or decline to increase its
Revolving Commitment (and any Revolving Lender that does not deliver such a
notice within such 10-day period shall be deemed to have declined to increase
its Revolving Commitment).  Regardless of
whether the Borrower’s notice elects to offer Revolving Lenders the opportunity
to ratably increase their Revolving Commitments, the Borrower may arrange for
one or more banks or other financial institutions (any such bank or other
financial institution being called an “Augmenting Revolving Lender”),
which may include any Lender, to extend Revolving Commitments or increase their
existing Revolving Commitments in order to effect all or part of the proposed
increase in the total Revolving Commitments; provided that each
Augmenting Revolving Lender, if not already a Revolving Lender hereunder, shall
be subject to the approval of the Administrative Agent, each Issuing Bank and
the Committed Swingline Lender (such approvals not to be unreasonably
withheld), and the Borrower and each Augmenting Revolving Lender shall execute
all such documentation as the Administrative Agent shall reasonably specify to
evidence its Revolving Commitment and/or its status as a Revolving Lender
hereunder.  Any increase in the total
Revolving Commitments may be made in an amount which is less than the increase
requested by the Borrower if the Borrower so elects.

(b)  On the effective date (the “Revolving
Commitment Increase Effective Date”) of any Revolving Commitment Increase,
if any Revolving Loans are outstanding, the Borrower (i) shall prepay all
Revolving Loans then outstanding (including all accrued but unpaid interest
thereon) and (ii) may, at its option, fund such prepayment by simultaneously
borrowing Revolving Loans of the Types and for the Interest Periods specified
in a Borrowing Request delivered pursuant to Section 2.03, which Revolving
Loans shall be made by the Revolving Lenders ratably in accordance with their
respective Revolving Commitments (calculated after giving effect to the
Revolving Commitment Increase); provided that such prepayment of
Revolving Loans pursuant to this paragraph shall not be required if such
Revolving Commitment Increase is effected entirely by ratably increasing the
Revolving Commitments of the existing Revolving Lenders.  The payments made pursuant to clause (i)
above in respect of each Eurodollar Loan shall be subject to Section 2.16.

(c)  Increases and new Revolving
Commitments created pursuant to this Section 2.20 shall become effective
on the date specified in the notice delivered by the Borrower pursuant to the
first sentence of paragraph (a) above; provided that the

 66
 

Borrower may,
with the consent of the Administrative Agent (such consent not to be
unreasonably withheld), extend such date by up to 30 days by delivering
written notice to the Administrative Agent no less than three Business Days
prior to the date specified in the notice delivered by the Borrower pursuant to
the first sentence of paragraph (a) above.

(d)  Notwithstanding the
foregoing, no increase in the total Revolving Commitments (or in the Revolving
Commitment of any Revolving Lender) or addition of an Augmenting Revolving
Lender shall become effective under this Section unless (i) on the
Revolving Commitment Increase Effective Date, the conditions set forth in
paragraphs (a) and (b) of Section 4.02 shall be satisfied and the
Administrative Agent shall have received a certificate to that effect dated
such date and executed by a Financial Officer of the Borrower, and
(ii) the Administrative Agent shall have received (with sufficient copies
for each of the Lenders) (A) documents consistent with those delivered on the
First Restatement Effective Date under clauses (b) and (c) of Section 7
of the Amendment and Restatement Agreement and (B) to the extent requested by
the Administrative Agent, documents consistent with those delivered on the
First Restatement Effective Date under clauses (f)(ii)(A) and (B) of Section 7
of the Amendment and Restatement Agreement.

SECTION 2.21.  Incremental
Term Loans.  (a)  The Borrower may, by written notice to the
Administrative Agent (which shall promptly deliver a copy thereof to each of
the Term Lenders), request to add one or more additional tranches of term loans
hereunder (“Incremental Term Loans”); provided that (i) the
aggregate principal amount of Incremental Term Loans made hereunder during the
term of this Agreement shall not exceed $200,000,000 and (ii) each tranche of
Incremental Term Loans shall be in an aggregate principal amount not less than
$50,000,000 (or such lesser amount as represents the entire remaining
availability under clause (i) above). 
Such notice shall (A) set forth the amount and proposed terms of the
requested Incremental Term Loans and (B) offer the Term Lenders the opportunity
to participate (pro rata in accordance with their share of the aggregate
principal amount of outstanding Term Loans) in providing such Incremental Term
Loans.  The Administrative Agent will
notify the Term Lenders of such offer and each Term Lender shall, by notice to
the Borrower and the Administrative Agent given not more than 10 days
after the date of the Borrower’s notice, either agree to provide all or a
portion of the offered amount or decline to participate in such Incremental
Term Loans (and any Term Lender that does not deliver such a notice within such
10-day period shall be deemed to have declined to participate in such
Incremental Term Loans).  The Borrower
may arrange for one or more banks or other financial institutions (any such
bank or other financial institution being called an “Augmenting Term Lender”),
which may include any Lender, to agree to provide Incremental Term Loans in
order to effect all or part of the proposed Incremental Term Loans that are not
subscribed for by the Term Lenders; provided that each Augmenting Term
Lender, if not already a Term Lender hereunder, shall be subject to the
approval of the Administrative Agent (such approval not to be unreasonably
withheld).

(b)  The Incremental Term Loans
(i) shall rank pari  passu in right of payment and of
security with the other Obligations, (ii) shall not have a final maturity

 67
 

date earlier
than the Tranche E Maturity Date, 
(iii) shall not have a weighted average life that is shorter than
the remaining weighted average life of the then-outstanding Term Loans and (iv)
shall have other terms (other than pricing, including any fees, any initial
issue discount, any redemption premiums and interest rate) that, to the extent
not consistent in all material respects with the terms of the then-outstanding
Term Loans, shall be reasonably satisfactory to the Administrative Agent.

(c)  Each Lender and Augmenting
Term Lender that elects to extend Incremental Term Loans (collectively, the “Incremental
Lenders”) shall enter into an amendment (an “Incremental Facility
Amendment”) to this Agreement and, as appropriate, the other Loan
Documents, executed by Holdings, the Borrower, such Incremental Lenders and the
Administrative Agent.  An Incremental
Facility Amendment may, without the consent of any other Lenders, effect such
amendments to any Loan Documents as may be necessary or appropriate, in the
opinion of the Administrative Agent, to effect the provisions of this Section.  The effectiveness of any Incremental Facility
Amendment and the funding of Incremental Term Loans thereunder shall, in
addition to such other conditions as the Borrower and the Incremental Lenders
may agree, be subject to (i) the satisfaction on the date thereof of each of the
conditions set forth in Section 4.02 (as though the date of funding of the
Incremental Tem Loans were the date of Borrowing referred to in Section 4.02)
and (ii) the condition that Holdings and the Borrower are in compliance, on a
pro forma basis after giving effect to the incurrence of such Incremental Term
Loans, with the covenants contained in Sections 6.12 and 6.13, recomputed as of
the last day of the most recently ended fiscal quarter of Holdings for which
financial statements have been delivered pursuant to Section 5.01 (determined
in the same manner as required under clause (xi)(B) of Section 6.01(a)).

ARTICLE III

Representations
and Warranties

Each of Holdings and the Borrower represents and
warrants to the Lenders that:

SECTION 3.01. 
Organization; Powers.  Each
of Holdings, the Borrower and the Subsidiaries is duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as
now conducted and, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect, is qualified to do business in, and is in good standing in, every
jurisdiction where such qualification is required.

SECTION 3.02. 
Authorization; Enforceability. 
The Restatement Transactions to be entered into by each Loan Party are
within such Loan Party’s corporate or limited liability company powers and have
been duly authorized by all necessary corporate or limited liability company
action and, if required, stockholder action. 
This Agreement has been duly executed and delivered by each of Holdings
and the Borrower and constitutes, and each other Loan Document to which any
Loan Party is

 68
 

to be a party, when executed and delivered by such Loan Party, will
constitute, a legal, valid and binding obligation of Holdings, the Borrower or
such Loan Party (as the case may be), enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in
equity or at law.

SECTION 3.03. 
Governmental Approvals; No Conflicts.  The Restatement Transactions (a) do not
require any consent or approval of, registration or filing with, or any other
action by, any Governmental Authority, except such as have been obtained or
made and are in full force and effect and except filings necessary to perfect
Liens created under the Loan Documents, (b) will not violate any
applicable law or regulation or the charter, by-laws or other organizational
documents of any of Holdings, the Borrower or the Subsidiaries or any order of
any Governmental Authority, (c) will not violate or result in a default
under any indenture, agreement or other instrument binding upon any of
Holdings, the Borrower or the Subsidiaries or its assets, or give rise to a
right thereunder to require any payment to be made by any of Holdings, the
Borrower or the Subsidiaries, and (d) will not result in the creation or
imposition of any Lien on any asset of any of Holdings, the Borrower or the
Subsidiaries, except Liens created under the Loan Documents.

SECTION 3.04. 
Financial Condition; No Material Adverse Change.  (a) 
Holdings and the Borrower have heretofore furnished to the Lenders the
audited consolidated and unaudited consolidating balance sheet and related
statements of operations, stockholders’ equity and cash flows of each of (x) Holdings
and its consolidated subsidiaries and (y) the Borrower and its consolidated
subsidiaries, in each case as of December 31, 2006.  Such financial statements present fairly, in
all material respects, the financial position and results of operations and
cash flows of (A) in the case of the financial statements referred to in clause
(x) above, Holdings and its consolidated subsidiaries and (B) in the case of
the financial statements referred to in clause (y) above, the Borrower and its
consolidated subsidiaries, in each case as of such dates and for such periods,
in accordance with GAAP.

(b) 
Holdings and the Borrower have heretofore furnished to the Lenders the
pro forma combined consolidated balance sheet of Holdings as of December 31,
2006, prepared giving effect to the Restatement Transactions as if the
Restatement Transactions had occurred on such date.  Such pro forma combined consolidated balance
sheet (i) has been prepared in good faith based on assumptions believed by
Holdings and the Borrower to be reasonable, (ii) is based on the best
information available to Holdings and the Borrower after due inquiry,
(iii) accurately reflects all adjustments necessary to give effect to the
Restatement Transactions and (iv) presents fairly, in all material respects,
the pro forma financial position of Holdings and its consolidated subsidiaries
as of December 31, 2006, as if the Restatement Transactions had occurred
on such date.

(c) 
Except as disclosed in the financial statements referred to above or the
notes thereto and except for the Disclosed Matters, after giving effect to the
Restatement Transactions, none of Holdings, the Borrower or the Subsidiaries
has, as of the Third

 69
 

Restatement Effective Date, any material contingent liabilities,
unusual long-term commitments or unrealized losses.

(d) 
Since December 31, 2006, there has been no change or effect that is
or would reasonably be expected to be materially adverse to the business,
financial condition or results of operations of Holdings, the Borrower and the
Subsidiaries, taken as a whole.

SECTION 3.05. 
Properties.  (a)  Each of Holdings, the Borrower and the
Subsidiaries has good title to, or valid leasehold interests in, or other valid
and enforceable rights to use, all its real and personal property material to
its business (including its Mortgaged Properties), except for minor defects in
title that do not interfere with its ability to conduct its business as
currently conducted or to utilize such properties for their intended purposes.

(b) 
Each of Holdings, the Borrower and the Subsidiaries owns, or is licensed
to use, all trademarks, trade names, copyrights, patents and other intellectual
property material to its business, and the use thereof by Holdings, the
Borrower and the Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

(c) 
[Intentionally Omitted].

(d) 
Schedule 3.05(d) sets forth the address or legal description of
each parcel of real property that is owned or leased by the Borrower or any
Subsidiary as of the Third Restatement Effective Date after giving effect to
the Restatement Transactions, in each case indicating whether such real
property is owned or leased, and the record owner of such real property.

(e)  As
of the Third Restatement Effective Date, none of Holdings, the Borrower or the
Subsidiaries has received notice of, or has knowledge of, any pending or
contemplated condemnation proceeding affecting any Mortgaged Property, or any
sale or disposition thereof in lieu of condemnation.  Except as set forth on Schedule 3.05(e),
as of the Third Restatement Effective Date, neither any Mortgaged Property nor
any interest therein is subject to any right of first refusal, option to
purchase or other contractual right to purchase such Mortgaged Property or
interest therein.

SECTION 3.06. 
Litigation and Environmental Matters.  (a) 
There are no actions, suits or proceedings by or before any arbitrator
or Governmental Authority pending against or, to the knowledge of Holdings or
the Borrower, threatened against or affecting any of Holdings, the Borrower or
the Subsidiaries (i) as to which there is a reasonable possibility of an
adverse determination and that, if adversely determined, could reasonably be
expected, individually or in the aggregate, to result in a Material Adverse
Effect (other than the Disclosed Matters) or (ii) that involve any of the
Loan Documents or the Restatement Transactions.

 70
 

(b) 
Except for the Disclosed Matters and except with respect to any other
matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, none of Holdings, the Borrower
or the Subsidiaries (i) has failed to comply with any Environmental Law or
to obtain, maintain or comply with any permit, license or other approval
required under any Environmental Law, (ii) has become subject to any
Environmental Liability, (iii) has received written notice of any claim
with respect to any Environmental Liability or (iv) knows of any facts,
conditions or circumstances that would reasonably be expected to result in any
Environmental Liability.

(c) 
Since the Third Restatement Effective Date, there has been no change in
the status of the Disclosed Matters that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

SECTION 3.07. 
Compliance with Laws and Agreements.  Each of Holdings, the Borrower and the
Subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.  No Default has occurred and is continuing.

SECTION 3.08. 
Investment Company Status. 
None of Holdings, the Borrower or the Subsidiaries is an “investment
company” as defined in, or subject to regulation under, the Investment Company
Act of 1940.

SECTION 3.09. 
Taxes.  Each of Holdings,
the Borrower and the Subsidiaries has timely filed or caused to be filed all
Tax returns and reports required to have been filed and has paid or caused to
be paid all Taxes required to have been paid by it, except (a) any Taxes
that are being contested in good faith by appropriate proceedings and for which
Holdings, the Borrower or such Subsidiary, as applicable, has set aside on its
books adequate reserves or (b) to the extent that the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

SECTION 3.10. 
ERISA.  No ERISA Event has
occurred or is reasonably expected to occur that, when taken together with all
other such ERISA Events for which liability is reasonably expected to occur,
could reasonably be expected to result in a Material Adverse Effect.  The present value of all accumulated benefit obligations
under each Plan (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most
recent annual financial statements reflecting such amounts, exceed the fair
market value of the assets of such Plan by an amount that, if required to be
paid, would reasonably be expected to result in a Material Adverse Effect, and
the present value of all accumulated benefit obligations of all underfunded
Plans (based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent
annual financial statements reflecting such amounts, exceed the fair market
value of the assets of

 71
 

all such underfunded Plans by an amount that, if required to be paid,
would reasonably be expected to result in a Material Adverse Effect.

SECTION 3.11. 
Disclosure.  Holdings and
the Borrower have disclosed to the Lenders all agreements, instruments and
corporate or other restrictions to which any of Holdings, the Borrower or the
Subsidiaries is subject, and all other matters known to any of them, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect.  None of the
reports, financial statements, certificates or other information furnished by
or on behalf of any Loan Party to the Administrative Agent or any Lender in
connection with the negotiation of this Agreement or any other Loan Document or
delivered hereunder or thereunder (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits
to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided
that, with respect to projected financial information, Holdings and the
Borrower represent only that such information was prepared in good faith based
upon assumptions believed to be reasonable at the time.

SECTION 3.12. 
Subsidiaries.  Holdings
does not have any subsidiaries other than the Borrower and the
Subsidiaries.  Schedule 3.12 sets
forth the name and jurisdiction of organization of, and the direct or indirect
ownership interest of the Borrower in, each Subsidiary and identifies each such
Subsidiary that is a Subsidiary Loan Party, in each case as of the Third
Restatement Effective Date.

SECTION 3.13. 
Insurance. 
Schedule 3.13 sets forth a description of all insurance maintained
by or on behalf of Holdings, the Borrower and the Subsidiaries as of the Third
Restatement Effective Date.  As of the
Third Restatement Effective Date, all premiums due and payable in respect of
such insurance have been paid.  Holdings
and the Borrower reasonably believe that the insurance maintained by or on
behalf of Holdings, the Borrower and the Subsidiaries is adequate.

SECTION 3.14. 
Labor Matters.  As of the
Third Restatement Effective Date, there are no strikes, lockouts or slowdowns
against Holdings, the Borrower or any Subsidiary pending or, to the knowledge
of Holdings or the Borrower, threatened. 
The hours worked by and payments made to employees of Holdings, the
Borrower and the Subsidiaries have not been in violation of the Fair Labor
Standards Act or any other applicable Federal, state, local or foreign law
dealing with such matters, except to the extent that the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.  All payments
due from Holdings, the Borrower or any Subsidiary, or for which any claim may
be made against Holdings, the Borrower or any Subsidiary, on account of wages
and employee health and welfare insurance and other benefits, have been paid or
accrued as a liability on the books of Holdings, the Borrower or any
Subsidiary, as applicable.  The
consummation of the Restatement Transactions will not give rise to any right of
termination or right of renegotiation on the part of any union under any
collective bargaining agreement to which Holdings, the Borrower or any
Subsidiary is bound.

 72
 

SECTION 3.15. 
Solvency.  Immediately
after the consummation of the Restatement Transactions to occur on the Third
Restatement Effective Date and immediately following the making of each Loan
made on the Third Restatement Effective Date and after giving effect to the
application of the proceeds of such Loans, (a) the fair value of the
assets of the Loan Parties, taken as a whole, at a fair valuation, will exceed
their debts and liabilities, subordinated, contingent or otherwise;
(b) the present fair saleable value of the property of the Loan Parties,
taken as a whole, will be greater than the amount that will be required to pay
the probable liability of their debts and other liabilities, subordinated,
contingent or otherwise, as such debts and other liabilities become absolute
and matured; (c) the Loan Parties, taken as a whole, will be able to pay
their debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured; and (d) the Loan
Parties, taken as a whole, will not have unreasonably small capital with which
to conduct the business in which they are engaged as such business is now
conducted and is proposed to be conducted following the Third Restatement
Effective Date.

SECTION 3.16. 
Senior Indebtedness.  The
Obligations constitute “Senior Indebtedness” under and as defined in the
Subordinated Debt Documents.

SECTION 3.17. 
Security Interests.  The
representations and warranties in the Security Documents are true and correct.

SECTION 3.18. 
Initial RP Basket Amount. 
The Initial RP Basket Amount does not exceed the amount that, as of
December 31, 2006, could be paid as a Restricted Payment (as defined in
the Initial Indenture) on December 31, 2006, pursuant to paragraph (a) of
Section 4.04 of the Initial Indenture.

ARTICLE IV

Conditions

SECTION 4.01. 
[Intentionally Omitted].

SECTION 4.02. 
Each Credit Event.  The
obligation of each Lender to make a Loan on the occasion of any Borrowing (it
being understood that the continuation or conversion of a Borrowing does not
constitute the making of a Loan for purposes of this Section 4.02), and of
each Issuing Bank to issue, amend, renew or extend any Letter of Credit, is
subject to receipt of the request therefor in accordance herewith and to the
satisfaction of the following conditions:

(a) 
The representations and warranties of each Loan Party set forth in the
Loan Documents shall be true and correct (except representations and warranties
not qualified as to materiality, which representations and warranties shall be
true and correct in all material respects) on and as of the date of such
Borrowing or the date of issuance, amendment, renewal or extension of such
Letter of Credit, as applicable (except, to the extent such representations or
warranties expressly relate to an earlier date, in which case as of such
earlier date).

 73
 

(b)  At
the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, no Default shall have occurred and be continuing.

Each Borrowing and each issuance, amendment, renewal
or extension of a Letter of Credit shall be deemed to constitute a
representation and warranty by Holdings and the Borrower on the date thereof as
to the matters specified in paragraphs (a) and (b) of this Section.

SECTION 4.03. 
Delayed Draw Funding.  The
obligation of each Delayed Draw Lender to make Delayed Draw Term Loans
hereunder is subject to the satisfaction (or waiver pursuant to Section 9.08)
of the condition that arrangements for the Redemption and the use of the
proceeds of the Delayed Draw Term Loans to effect the Redemption shall have
been made and shall be reasonably satisfactory to the Administrative Agent.

ARTICLE V

Affirmative
Covenants

Until the Commitments have expired or been terminated
and the principal of and interest on each Loan and all fees payable hereunder
shall have been paid in full and all Letters of Credit shall have expired or
terminated or have been cash collateralized (to the satisfaction of the Issuing
Banks) and all LC Disbursements shall have been reimbursed, each of Holdings
and the Borrower covenants and agrees with the Lenders that:

SECTION 5.01. 
Financial Statements and Other Information.  Holdings and the Borrower will furnish to the
Administrative Agent and each Lender:

(a)  within 90 days after
the end of each fiscal year of the Borrower (or, during any time that Holdings
or the Borrower is subject to the periodic reporting requirements of the
Securities Exchange Act of 1934, as amended, such shorter period as the
Securities and Exchange Commission shall specify for the filing of annual
reports on Form 10-K), the audited consolidated and unaudited consolidating
balance sheet and related statements of operations, stockholders’ equity and
cash flows of each of (i) Holdings and its consolidated subsidiaries and
(ii) the Borrower and its consolidated subsidiaries, in each case as of
the end of and for such year, setting forth in each case in comparative form
the figures for the previous fiscal year, all reported on by KPMG LLP or other
independent public accountants of recognized national standing (without a “going
concern” or like qualification or exception and without any qualification or
exception as to the scope of such audit) to the effect that such consolidated
financial statements present fairly in all material respects the financial
condition and results of operations of the entities to which such financial
statements pertain on a consolidated basis in accordance with GAAP consistently
applied;

 74
 

(b)  within 45 days after
the end of each of the first three fiscal quarters of each fiscal year of the
Borrower (or, during any time that Holdings or the Borrower is subject to the
periodic reporting requirements of the Securities Exchange Act of 1934, as
amended, such shorter period as the Securities and Exchange Commission shall
specify for the filing of quarterly reports on Form 10-Q), the consolidated and
consolidating balance sheet and related statements of operations, stockholders’
equity and cash flows of each of (i) Holdings and its consolidated
subsidiaries and (ii) the Borrower and its consolidated subsidiaries, in
each case as of the end of and for such fiscal quarter and the then elapsed
portion of the fiscal year, setting forth in each case in comparative form the
figures for the corresponding period or periods of (or, in the case of the
balance sheet, as of the end of) the previous fiscal year, all certified by a
Financial Officer of Holdings (in the case of clause (i)) or the Borrower
(in the case of clause (ii)), as presenting fairly in all material
respects the financial condition and results of operations of the entities to
which such financial statements pertain on a consolidated basis in accordance
with GAAP consistently applied, subject to normal year-end audit adjustments
and the absence of footnotes;

(c)  concurrently with any
delivery of financial statements under clause (a) or (b) above, a
certificate of a Financial Officer of Holdings (i) certifying as to
whether a Default has occurred and, if a Default has occurred, specifying the
details thereof and any action taken or proposed to be taken with respect
thereto, (ii) setting forth reasonably detailed calculations demonstrating
compliance with Sections 6.12 and 6.13, (iii) stating whether any
change in GAAP or in the application thereof has occurred since the date of the
audited financial statements referred to in Section 3.04 and, if any such
change has occurred, specifying the effect of such change on the financial
statements accompanying such certificate and (iv) stating whether any Tax
Distributions were made during the period covered by such financial statements
and, if so, the amount thereof and setting forth a summary description of the
calculation thereof;

(d)  within 45 days after the
commencement of each fiscal year of Holdings beginning with the fiscal year
commencing January 1, 2007, a reasonably detailed consolidated budget for
such fiscal year (including a projected consolidated balance sheet and related
statements of projected operations and cash flow as of the end of and for such
fiscal year and setting forth the assumptions used for purposes of preparing
such budget) and, promptly when available, any significant revisions of such
budget;

(e)  promptly after the same become
publicly available, copies of all periodic and other reports, proxy statements
and other materials filed by any of Holdings, the Borrower or the Subsidiaries
with the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or with any
national securities exchange, as the case may be; and

 75
 

(f)  promptly following any
request therefor, such other information regarding the operations, business
affairs and financial condition of any of Holdings, the Borrower or the
Subsidiaries, or compliance with the terms of any Loan Document, as the
Administrative Agent or any Lender may reasonably request.

SECTION 5.02. 
Notices of Material Events. 
Holdings and the Borrower will furnish to the Administrative Agent and
each Lender written notice of the following promptly after any Financial
Officer or other executive officer of either Holdings or the Borrower obtains
knowledge thereof:

(a)  the occurrence of any
Default;

(b)  the filing or commencement
of any action, suit or proceeding by or before any arbitrator or Governmental
Authority against or affecting any of Holdings, the Borrower or any Affiliate
thereof that, if adversely determined, could reasonably be expected to result
in a Material Adverse Effect;

(c)  the occurrence of any ERISA
Event that, alone or together with any other ERISA Events that have occurred,
could reasonably be expected to result in liability to any of Holdings, the
Borrower or the Subsidiaries in an aggregate amount exceeding $5,000,000; and

(d)  any other development that
results in, or could reasonably be expected to result in, a Material Adverse
Effect.

Each notice delivered under this Section shall be
accompanied by a statement of a Financial Officer or other executive officer of
Holdings or the Borrower setting forth the details of the event or development
requiring such notice and any action taken or proposed to be taken with respect
thereto.

SECTION 5.03. 
Information Regarding Collateral. 
Holdings or the Borrower will furnish to the Administrative Agent prompt
written notice of any change (a) in any Loan Party’s legal name or in any
trade name used to identify it in the conduct of its business or in the
ownership of its properties, (b) in the case of any Loan Party that is not
a “registered organization” (as defined in Article 9 of the Uniform
Commercial Code as from time to time in effect in the State of New York), in
the location of such Loan Party’s chief executive office, its principal place
of business, any office in which it maintains books or records relating to
Collateral owned by it or any office or facility at which Collateral owned by
it is located (including the establishment of any such new office or facility),
(c) in any Loan Party’s identity or corporate structure, (d) in any
Loan Party’s “organizational identification number” or any similar
jurisdictional identification number required for the filing of financing
statements in any jurisdiction or (e) in any Loan Party’s jurisdiction of
organization.  Holdings and the Borrower
agree 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
Administrative Agent for filing) under the Uniform Commercial Code or otherwise
that are required in order for the

 76
 

Administrative Agent and Collateral Agent to continue at all times
following such change to have a valid, legal and perfected security interest in
all the Collateral.  Holdings and the
Borrower also agree promptly to notify the Administrative Agent if any material
portion of the Collateral is damaged or destroyed.

SECTION 5.04. 
Existence; Conduct of Business. 
Each of Holdings and the Borrower will, and will cause each of the
Subsidiaries to, do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its legal existence and the rights, licenses,
permits, privileges, franchises, patents, copyrights, trademarks and trade
names material to the conduct of its business; provided that the
foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03.

SECTION 5.05. 
Payment of Obligations. 
Each of Holdings and the Borrower will, and will cause each of the
Subsidiaries to, pay its Indebtedness and other obligations, including Tax
liabilities, before the same shall become delinquent or in default, except
(a) where (i) the validity or amount thereof is being contested in
good faith by appropriate proceedings, (ii) Holdings, the Borrower or such
Subsidiary has set aside on its books adequate reserves with respect thereto in
accordance with GAAP and (iii) such contest effectively suspends
collection of the contested obligation and the enforcement of any Lien securing
such obligation, or (b) except for Tax liabilities, where the failure to
make payment (individually or in the aggregate) could not reasonably be
expected to result in a Material Adverse Effect.

SECTION 5.06. 
Maintenance of Properties. 
Each of Holdings and the Borrower will, and will cause each of the
Subsidiaries to, maintain all property material to the conduct of its business
in good 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).

SECTION 5.07. 
Insurance.  Each of
Holdings and the Borrower will, and will cause each of the Subsidiaries to,
maintain, with financially sound and reputable insurance companies
(a) insurance in such amounts (with no greater risk retention) and against
such risks as are customarily maintained by companies of established repute
engaged in the same or similar businesses operating in the same or similar
locations and (b) all insurance required to be maintained pursuant to the
Security Documents.  Holdings and the
Borrower will furnish (or cause to be furnished) to the Lenders, upon request
of the Administrative Agent, information in reasonable detail as to the
insurance so maintained.

SECTION 5.08. 
Casualty and Condemnation. 
Holdings and the Borrower (a) will furnish to the Administrative
Agent prompt written notice of any casualty or other insured damage to any
material portion of any Collateral or the commencement of any action or
proceeding for the taking of any material portion of the Collateral or any part
thereof or interest therein under power of eminent domain or by condemnation or
similar proceeding and (b) will ensure that the Net Proceeds of any such
event (whether

 77
 

in the form of insurance proceeds, condemnation awards or otherwise)
are collected and applied in accordance with the applicable provisions of the
Security Documents.

SECTION 5.09. 
Books and Records; Inspection Rights.  Each of Holdings and the Borrower will, and
will cause each of the Subsidiaries to, keep proper books of record and account
in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities.  Each of Holdings and the Borrower will, and
will cause each of the Subsidiaries to, permit any representatives designated
by the Administrative Agent or any Lender, upon reasonable prior notice, to
visit and inspect its properties, to examine and make extracts from its books
and records, and to discuss its affairs, finances and condition with its
officers and (so long as a representative of Holdings or the Borrower has been
afforded a reasonable opportunity to be present at such discussions)
independent accountants, all at such reasonable times and as often as
reasonably requested; provided that, unless a Default has occurred and
is continuing, the 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 the Administrative Agent
during any fiscal year.

SECTION 5.10. 
Compliance with Laws.  Each
of Holdings and the Borrower will, and will cause each of the Subsidiaries to,
comply with all laws, rules, regulations and orders of any Governmental
Authority applicable to it or its property, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

SECTION 5.11. 
Use of Proceeds and Letters of Credit.  The proceeds of the Tranche E Term Loans
will be used only to prepay Tranche D Term Loans outstanding on the Third
Restatement Effective Date.  The proceeds
of the Delayed Draw Term Loans will be used only to redeem outstanding Initial
Senior Unsecured Debt (the “Redemption”).  The proceeds of the Revolving Loans and
Swingline Loans will be used only for general corporate purposes.  No part of the proceeds of any Loan will be
used, whether directly or indirectly, for any purpose that entails a violation
of any of the Regulations of the Board, including Regulations G, U and
X.  Letters of Credit will be issued only
for general corporate purposes.

SECTION 5.12. 
Additional Subsidiaries. 
If any additional Subsidiary is formed or acquired after the Original
Effective Date, the Borrower will, within five Business Days after such
Subsidiary is formed or acquired, notify the Administrative Agent and the
Lenders thereof (which notice shall indicate the name of such Subsidiary, the
jurisdiction in which it is organized and its status, if applicable, as a
Foreign Subsidiary or a Receivables Subsidiary or a Subsidiary Loan Party) and
cause the Collateral and Guarantee Requirement to be satisfied with respect to
such Subsidiary (if it is a Subsidiary Loan Party) and with respect to any
Equity Interest in or Indebtedness of such Subsidiary owned by or on behalf of
any Loan Party.

SECTION 5.13. 
Further Assurances. 
(a)  Each of Holdings and the
Borrower will, and will cause each Subsidiary Loan Party to, execute any and
all further documents, financing statements, agreements and instruments, and
take all such further

 78
 

actions (including the filing and recording of financing statements,
fixture filings, mortgages, deeds of trust and other documents), which may be
required under any applicable law, or which the Administrative Agent or the
Required Lenders may reasonably request, to cause the Collateral and Guarantee
Requirement to be and remain satisfied, all at the expense of the Loan
Parties.  Holdings and the Borrower also
agree to provide to the Administrative Agent, from time to time upon request,
evidence reasonably satisfactory to the Administrative Agent as to the
perfection and priority of the Liens created or intended to be created by the
Security Documents.

(b)  If
any material assets (including (i)  any real property acquired pursuant to
a Permitted Operating Asset Swap if a Mortgaged Property was transferred
pursuant to such Permitted Operating Asset Swap and (ii) any other
material real property or material improvements thereto or any material
interest therein, howsoever acquired) are acquired by any Loan Party after the
Original Effective Date (other than assets constituting Collateral under the
Collateral Agreement that become subject to the Lien of the Collateral
Agreement upon acquisition thereof), Holdings and the Borrower will notify the
Administrative Agent and the Lenders thereof, and, if requested by the
Administrative Agent or the Required Lenders, Holdings and the Borrower will
cause such assets to be subjected to a Lien securing the Obligations and will
take, and cause the Subsidiary Loan Parties to take, such actions as shall be
necessary or reasonably requested by the Administrative Agent to grant and
perfect such Liens, including actions described in paragraph (a) of this Section,
all at the expense of the Loan Parties.

SECTION 5.14. 
Interest Rate Protection. 
As promptly as practicable, and in any event within 90 days after the
Original Effective Date, the Borrower will enter into, and thereafter maintain
in effect for the periods specified below, one or more interest rate protection
agreements on such terms and with such parties as shall be reasonably
satisfactory to the Administrative Agent, the effect of which shall be that
(a) for a period of at least three years after the Original Effective
Date, at least 30% of the consolidated Long-Term Indebtedness of the Borrower
outstanding as of the Original Effective Date (as reduced at or before the date
that such interest protection agreement becomes effective) will be Indebtedness
that either bears interest at a fixed rate or the interest cost of which is
hedged pursuant to such interest rate protection agreements and (b) for a
period of at least one year after the Original Effective Date, at least an
additional 20% of the consolidated Long-Term Indebtedness of the Borrower
outstanding as of the Original Effective Date (as reduced at or before the date
that such interest protection agreement becomes effective) will be Indebtedness
that either bears interest at a fixed rate or the interest cost of which is
hedged pursuant to such interest protection agreements.

SECTION 5.15. 
Fiscal Periods.  Each of
Holdings and the Borrower will, and will cause each of the Subsidiaries to,
have a fiscal year ending on December 31 and fiscal quarters ending on the last
day of each calendar quarter.

SECTION 5.16. 
Post-Closing Requirement. 
Within 90 days after the Third Restatement Effective Date (subject to
extension in the discretion of the Administrative Agent), the Borrower will to
the extent requested by the Administrative

 79

Agent, deliver to the
Administrative Agent (a) amendments to each Mortgage providing that the Tranche
E Term Loans and Delayed Draw Term Loans of each Lender (in addition to other
Obligations) shall be secured by a Lien on each Mortgaged Property and (b) a
policy or policies of title insurance or title endorsement to an existing title
insurance policy, issued by a nationally recognized title insurance company,
insuring the Lien of each such Mortgage as a valid first Lien on the Mortgaged
Property described therein, free of any other Liens except as permitted by this
Agreement, together with such endorsements, coinsurance and reinsurance as the
Administrative Agent or the Required Lenders may reasonably request.

ARTICLE VI

Negative Covenants

Until the Commitments have expired or terminated and
the principal of and interest on each Loan and all fees  payable hereunder have been paid in full and
all Letters of Credit have expired or terminated or have been cash collateralized
(to the satisfaction of the Issuing Banks) and all LC Disbursements shall have
been reimbursed, each of Holdings and the Borrower covenants and agrees with
the Lenders that:

SECTION 6.01. 
Indebtedness; Certain Equity Securities; Designated Senior
Indebtedness.  (a)  The Borrower will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Indebtedness,
except:

(i) Indebtedness created under the Loan Documents;

(ii) the Subordinated Debt and the Senior Unsecured Debt;

(iii) Indebtedness existing on the Original Effective Date and set
forth in Schedule 6.01 and extensions, renewals and replacements of any
such Indebtedness that do not increase the outstanding principal amount thereof
(other than by capitalization of interest and fees) or result in an earlier maturity
date or decreased weighted average life thereof;

(iv) Indebtedness of (A) the Borrower to any Subsidiary (other than a
Receivables Subsidiary) or (B) any Subsidiary to the Borrower or any other
Subsidiary (other than a Receivables Subsidiary); provided that
Indebtedness of any Subsidiary that is not a Loan Party to the Borrower or any
Subsidiary Loan Party shall be subject to Section 6.04;

(v) Guarantees by the Borrower of Indebtedness of any Subsidiary (other
than a Receivables Subsidiary) and by any Subsidiary (other than a Receivables
Subsidiary) of Indebtedness of the Borrower or any other Subsidiary (other than
a Receivables Subsidiary); provided that (A) Guarantees by the
Borrower or any Subsidiary that is a Subsidiary Loan Party of Indebtedness of
any Subsidiary that is not a Loan Party shall be subject to Section 6.04
and (B) a Subsidiary that is not a Loan Party shall not Guarantee
Indebtedness of any Loan Party;

 80
 

(vi) Indebtedness of the Borrower or any Subsidiary incurred to finance
the acquisition, construction or improvement of any fixed or capital assets
after the Original Effective Date, including Capital Lease Obligations, and any
Indebtedness assumed in connection with the acquisition of any such assets or
secured by a Lien on any such assets prior to the acquisition thereof, or
Capital Lease Obligations resulting from sale-leaseback transactions
consummated in compliance with Section 6.06, and extensions, renewals and
replacements of any such Indebtedness that do not increase the outstanding
principal amount thereof (other than by capitalization of interest and fees) or
result in an earlier maturity date or decreased weighted average life thereof; provided
that (A), except for Capital Lease Obligations resulting from sale-leaseback
transactions pursuant to clause (b) of Section 6.06 and Capital Lease
Obligations resulting from the Milton Sale-Leaseback, such Indebtedness is
incurred prior to or within 90 days after such acquisition or the
completion of such construction or improvement and (B) the aggregate
principal amount of Indebtedness permitted by this clause (vi), excluding
Capital Lease Obligations resulting from the Milton Sale-Leaseback, shall not
exceed $50,000,000 at any time outstanding;

(vii) Indebtedness of any Person that becomes a Subsidiary after the
Original Effective Date; provided that (A) such Indebtedness exists
at the time such Person becomes a Subsidiary and is not created in
contemplation of or in connection with such Person becoming a Subsidiary and
(B) the aggregate principal amount of Indebtedness permitted by this
clause (vii) shall not exceed $50,000,000 at any time outstanding;

(viii) Indebtedness of any Receivables Subsidiary incurred pursuant to
any Permitted Receivables Financing;

(ix) purchase price adjustment and similar obligations incurred by the
Borrower or any Subsidiary in connection with a Permitted Acquisition, to the
extent such obligations would otherwise constitute Indebtedness;

(x) senior unsecured Indebtedness of the Borrower or any Subsidiary; 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 clause (ix), (B) no Default shall have occurred and be
continuing at the time of and after giving effect to the incurrence of such
Indebtedness, (C) at the time of and after giving effect to the incurrence
of such Indebtedness and the consummation of the relevant Permitted
Acquisition, the Senior Leverage Ratio shall not exceed 4.00 to 1.00, and
(D) prior to the incurrence of such Indebtedness the Borrower shall have
delivered to the Administrative Agent a certificate of a Financial Officer
describing the Indebtedness to be incurred (and attaching true and correct
copies of the documentation therefore) and the relevant Permitted Acquisition
and certifying satisfaction of the requirements set forth in clauses (A),

 81
 

(B) and (C)
above (including reasonably detailed calculations demonstrating satisfaction of
the requirement set forth in clause (C) above);

(xi) Additional Subordinated Debt; provided that (A) no
Default shall have occurred and be continuing at the time of and after giving
effect to the incurrence of such Indebtedness, (B) at the time of and
after giving effect to the incurrence of such Indebtedness, Holdings and the
Borrower are in compliance, on a pro  forma basis after giving effect
to the incurrence of such Indebtedness, with the covenants contained in
Sections 6.12 and 6.13 recomputed as of the last day of the most recently
ended fiscal quarter of Holdings for which financial statements have been
delivered pursuant to Section 5.01, as if (1) such Indebtedness (and
any other Indebtedness then outstanding that was incurred pursuant to
clause (vi), (vii) or (x) above or this clause (xi)) had been
incurred on the first day of the relevant period for testing compliance (in the
case of Section 6.12), (2) Total Indebtedness as of the last day of
such most recently ended fiscal quarter was equal to Total Indebtedness at the
time of and after giving effect to the incurrence of such Indebtedness (in the
case of Section 6.13), and (3) any Material Acquisition or Material
Disposition had occurred on the first day of the relevant period for testing
compliance (in the case of Section 6.12) and (C) prior to the
incurrence of such Indebtedness the Borrower shall have delivered to the Administrative
Agent a certificate of a Financial Officer describing the Indebtedness to be
incurred (and attaching true and correct copies of the documentation therefor)
and certifying satisfaction of the requirements set forth in the definition of “Additional
Subordinated Debt” and in clauses (A) and (B) above (including reasonably
detailed calculations demonstrating satisfaction of the requirement set forth
in Clause (B) above); provided further that, for purposes of
determining satisfaction of the requirements of clause (B) above,
compliance with Sections 6.12 and 6.13 shall be determined disregarding
any termination of the Revolving Commitments or discharge of the Revolving
Exposures as though such Sections were in effect for the benefit of all Lenders
and without giving effect to any waiver, amendment or modification that has not
been approved by the Required Lenders; and

(xii) other unsecured Indebtedness in an aggregate principal amount not
exceeding $25,000,000 at any time outstanding; provided that the
aggregate principal amount of Indebtedness of the Subsidiaries permitted by
this clause (xii) shall not exceed $15,000,000 at any time outstanding.

(b) 
Holdings will not create, incur, assume or permit to exist any
Indebtedness except Indebtedness created under the Loan Documents and
Guarantees in respect of the Senior Unsecured Debt, Subordinated Debt and
Additional Subordinated Debt.

(c) 
Neither Holdings nor the Borrower will, nor will they permit any
Subsidiary to, issue any preferred stock or other preferred Equity Interests,
other than (i) those that do not qualify as Disqualified Stock issued by
Holdings and (ii) preferred Equity Interests issued by Holdings in connection
with the Holdings Corporate

 82
 

Conversion that would not constitute Disqualified Stock but for the
requirement that such Equity Interests be redeemed upon consummation of an IPO.

(d) 
The Borrower will not, and the Borrower will not permit any Subsidiary
to, designate any Indebtedness (other than the Obligations) as “Designated
Senior Indebtedness” for purposes of, and as defined in, any of the
Subordinated Debt Documents.

SECTION 6.02. 
Liens.  (a)  The Borrower will not, and will not permit
any Subsidiary to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable) or rights in respect of any
thereof, except:

(i) Liens created under the Loan Documents;

(ii) Permitted Encumbrances;

(iii) any Lien on any property or asset of the Borrower or any
Subsidiary existing on the Original Effective Date and set forth in
Schedule 6.02(a); provided that (i) such Lien shall not apply
to any other property or asset of the Borrower or any Subsidiary and
(ii) such Lien shall secure only those obligations which it secures on the
Original Effective Date and extensions, renewals and replacements thereof that
do not increase the outstanding principal amount thereof (other than with
respect to (A) the capitalization of interest and (B) the capitalization
of any prepayment premiums payable in respect of the obligations so extended,
renewed or replaced);

(iv) any Lien on any property or asset acquired after the Original
Effective Date and existing prior to the acquisition thereof by the Borrower or
any Subsidiary or existing on any property or asset of any Person that becomes
a Subsidiary after the Original Effective Date that exists prior to the time
such Person becomes a Subsidiary; 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 the Borrower or any Subsidiary and
(C) such Lien shall secure only those obligations which it secures on the
date of such acquisition or the date such Person becomes a Subsidiary, as the
case may be, and extensions, renewals and replacements thereof that do not
increase the outstanding principal amount thereof (other than with respect to
(1) the capitalization of interest and (2) the capitalization of any
prepayment premiums payable in respect of the obligations so extended, renewed
or replaced);

(v) Liens on fixed or capital assets acquired, constructed or improved
by the Borrower or any Subsidiary after the Original Effective Date and Liens
on assets attributable to Capital Lease Obligations with respect to such
assets; provided that (A) such security interests secure
Indebtedness permitted by clause (vi) of Section 6.01(a), (B) except
for such Liens attributable to Capital

 83
 

Lease
Obligations resulting from sale-leaseback transactions pursuant to
clause (b) of Section 6.06 and Capital Lease Obligations resulting from
the Milton Sale-Leaseback, such security interests and the Indebtedness secured
thereby are incurred prior to or within 90 days after such acquisition or
the completion of such construction or improvement, (C) the Indebtedness
secured thereby does not exceed 100% of the cost of acquiring, constructing or
improving such fixed or capital assets and (D) such security interests
shall not apply to any other property or assets of the Borrower or any
Subsidiary;

(vi) assignments and sales of Receivables and Related Security pursuant
to a Permitted Receivables Financing and Liens arising pursuant to a Permitted
Receivables Financing on Receivables and Related Security sold or financed in
connection with such Permitted Receivables Financing;

(vii) Liens arising from precautionary UCC financing statements filed
with respect to any lease permitted by this Agreement;

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

(ix) 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;

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

(xi) licenses, sublicenses, leases and subleases entered into in the
ordinary course of business and any landlords’ liens arising under any such
leases;

(xii) Liens arising solely under Article 4 of the Uniform
Commercial Code relating to collection on items in collection and documents and
proceeds related thereto;

(xiii) obligations with respect to repurchase agreements of the type
described in clause (d) of the definition of Permitted Investments; and

(xiv) other Liens not otherwise permitted by this Section securing
Indebtedness in an aggregate amount not exceeding $25,000,000 at any time
outstanding.

(b) 
Holdings will not create, incur, assume or permit to exist any Lien on
any property or asset now owned or hereafter acquired by it, or assign or sell
any income or revenues (including accounts receivable) or rights in respect
thereof, except Liens created under the Loan Documents and Permitted Encumbrances.

 84
 

SECTION 6.03. 
Fundamental Changes. 
(a)  Neither Holdings nor the
Borrower will, nor will they permit any Subsidiary to, merge into or
consolidate with any other Person, or permit any other Person to merge into or
consolidate with it, or liquidate or dissolve, except that, if at the time
thereof and immediately after giving effect thereto no Default shall have
occurred and be continuing (i) any Subsidiary (other than a Receivables
Subsidiary) may merge into the Borrower in a transaction in which the Borrower
is the surviving entity, (ii) any Subsidiary (other than a Receivables
Subsidiary) may merge into any other Subsidiary (other than a Receivables
Subsidiary) in a transaction in which the surviving entity is a Subsidiary and
(if any party to such merger is a Subsidiary Loan Party) is a Subsidiary Loan
Party, (iii) any Subsidiary (other than a Receivables Subsidiary) may
liquidate or dissolve if the Borrower determines in good faith that such
liquidation or dissolution is in the best interests of the Borrower and is not
materially disadvantageous to the Lenders, (iv) the Borrower may permit
another Person to merge or consolidate with the Borrower or a Subsidiary (other
than a Receivables Subsidiary) in order to effect a Permitted Acquisition that
is permitted by Section 6.04 (provided that the surviving entity is the
Borrower or a wholly-owned Subsidiary); provided that any such merger
involving a Person that is not a wholly-owned Subsidiary immediately prior to
such merger shall not be permitted unless also permitted by Section 6.04,
(v) a Subsidiary may merge into and consolidate with another Person in
order to effect a transaction in which all the Equity Interests of such
Subsidiary owned directly or indirectly by the Borrower would be disposed of; provided
that such transaction is (A) treated as a sale of the Equity Interests of
such Subsidiary for all purposes of this Agreement and (B) permitted by
and conducted in compliance with (and treated for all purposes of this
Agreement as a sale of the Equity Interests of such Subsidiary pursuant to)
Section 6.05(a)(v), (vi) Holdings may effect the Holdings Corporate
Conversion and (vii) Borrower may effect the Borrower Corporate
Conversion.

(b) 
The Borrower will not permit the Borrower and the Subsidiaries (taken as
a whole) to engage to any material extent in any business other than businesses
conducted by the Operating Businesses as of the Third Restatement Effective
Date and businesses reasonably related thereto.

(c) 
Holdings will not engage in any business or activity other than (i) the
ownership of all the outstanding Equity Interests of the Borrower and
activities incidental thereto and (ii) consummation of the IPO and activities
incidental thereto.  Holdings will not
own or acquire any assets (other than Equity Interests of the Borrower, cash
and Permitted Investments) or incur any liabilities (other than liabilities
under the Loan Documents, Guarantees in respect of the Senior Unsecured Debt
and Subordinated Debt, liabilities imposed by law, including tax liabilities,
and other liabilities incidental to its existence and permitted business and
activities).

SECTION 6.04. 
Investments, Loans, Advances, Guarantees and Acquisitions.  (a) 
The Borrower will not, and will not permit any of the Subsidiaries to,
purchase, hold or acquire (including pursuant to any merger with any Person
that was not a wholly-owned Subsidiary prior to such merger) any Equity
Interests in or evidences of indebtedness or other securities (including any
option, warrant or other right to acquire

 85
 

any of the foregoing) of, make or permit to exist any loans or advances
to, Guarantee any obligations of, or make or permit to exist any investment or
any other interest in, any other Person, or purchase or otherwise acquire (in
one transaction or a series of transactions) any assets of any other Person
constituting a business unit, except:

(i) the Acquisition;

(ii) Permitted Investments;

(iii) investments, loans, advances and Guarantees existing on the
Original Effective Date and set forth on Schedule 6.04(a);

(iv) investments by the Borrower and the Subsidiaries in Equity
Interests in their respective Subsidiaries; provided that (A) any
such Equity Interests held by a Loan Party shall be pledged to the extent
required to satisfy the Collateral and Guarantee Requirement and (B) the
aggregate amount of investments by Loan Parties in, and loans and advances by
Loan Parties to, and Guarantees by Loan Parties of Indebtedness and other
obligations of, Subsidiaries that are not Loan Parties (excluding all such
investments, loans, advances and Guarantees existing on the Original Effective
Date that are set forth on Schedule 6.04(a)), shall not exceed $25,000,000
at any time outstanding;

(v) loans or advances made by the Borrower to any Subsidiary and made
by any Subsidiary to the Borrower or any other Subsidiary; provided that
(A) any such loans and advances made by a Loan Party shall be evidenced by
a promissory note pledged to the extent required to satisfy the Collateral and
Guarantee Requirement and (B) the amount of such loans and advances made
by Loan Parties to Subsidiaries that are not Loan Parties shall be subject to
the limitation set forth in clause (a)(iv) above;

(vi) Guarantees constituting Indebtedness permitted by
Section 6.01(a) and Guarantees by the Borrower of other obligations of any
Subsidiary (other than a Receivables Subsidiary) and by any Subsidiary (other
than a Receivables Subsidiary) of other obligations of the Borrower or any
other Subsidiary (other than a Receivables Subsidiary); provided that
(A) a Subsidiary shall not Guarantee the Subordinated Debt, the Senior
Unsecured Debt or any Additional Subordinated Debt unless (1) such
Subsidiary also has Guaranteed the Obligations pursuant to the Collateral
Agreement, (2) such Guarantee of the Subordinated Debt or any Additional
Subordinated Debt is subordinated to such Guarantee of the Obligations on terms
no less favorable to the Lenders than the subordination provisions of the
Subordinated Debt and (3) such Guarantee of the Subordinated Debt, the
Senior Unsecured Debt or any Additional Subordinated Debt, as applicable,
provides for the release and termination thereof, without action by any party,
upon any release and termination of such Guarantee of the Obligations,
(B) a Subsidiary that is not a Loan Party shall not Guarantee any
obligations of any Loan Party and (C) the aggregate principal amount of
Indebtedness and other

 86
 

obligations of
Subsidiaries that are not Loan Parties that is Guaranteed by any Loan Party
shall be subject to the limitation set forth in clause (a)(iv) above;

(vii) investments received in connection with the bankruptcy or
reorganization of, or settlement of delinquent accounts and disputes with,
customers and suppliers, in each case in the ordinary course of business;

(viii) Permitted Acquisitions; provided that (A) the
consideration for each Permitted Acquisition shall consist solely of cash,
Indebtedness permitted by clause (vi), (ix), (x), (xi) or (xii) of
Section 6.01(a), Equity Interests of Holdings or a combination thereof and
(B) the amount of consideration for Permitted Acquisitions that result in
Subsidiaries that are not Loan Parties shall be subject to the limitation set
forth in clause (a)(iv) above (with the amount of such consideration to be
allocated ratably among the assets and businesses acquired pursuant to a
Permitted Acquisition for this purpose, based on the fair value thereof, as
reasonably determined by a Financial Officer of the Borrower and certified to
the Administrative Agent, and the amount so allocated to Subsidiaries that are
not Loan Parties being treated as investments therein for purposes of the
limitation in clause (a)(iv) above);

(ix) investments consisting of non-cash consideration received by the
Borrower or any Subsidiary in connection with any sale, transfer, lease or
other disposition of assets permitted by Section 6.05(a);

(x) deposits, prepayments and other credits made or extended to
suppliers (A) in the ordinary course of business and consistent with past
practices of the Operating Businesses or (B) otherwise in an amount not to
exceed $5,000,000 at any time outstanding;

(xi) loans or advances to employees, officers or directors of the
Borrower or any Subsidiary made in the ordinary course of business in an
aggregate principal amount not to exceed $5,000,000 at any time outstanding;

(xii) Swap Agreements permitted by Section 6.07;

(xiii) Specified Investments;

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

(xv) investments not otherwise permitted by this Section; provided
that the aggregate amount of investments made on or after the Original
Effective Date in reliance upon this clause (xv) (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 $10,000,000 at any time
outstanding; and

 87
 

(xvi) other investments made after the Third Restatement Effective Date
if such investment is a Permitted Restricted Payment/Investment.

SECTION 6.05. 
Asset Sales.  (a)  The Borrower will not, and will not permit
any of the Subsidiaries to, sell, transfer, lease or otherwise dispose of any
asset, including any Equity Interest owned by it, nor will the Borrower permit
any of the Subsidiaries to issue any additional Equity Interest in such
Subsidiary, except:

(i) sales of inventory, used or surplus equipment and Permitted
Investments, in each case in the ordinary course of business;

(ii) sales, transfers and dispositions to the Borrower or a Subsidiary;
provided that any such sales, transfers or dispositions involving a
Subsidiary that is not a Loan Party shall be made in compliance with
Section 6.09;

(iii) Permitted Operating Asset Swaps;

(iv) sales or transfers of Receivables and interests therein, together
with Related Security, pursuant to a Permitted Receivables Financing;

(v) sales, transfers and other dispositions of assets (other than to
Holdings) that are not permitted by any other clause of this
Section 6.05(a); provided that (A) in the case of any such
sale, transfer or disposition of Equity Interests of a Subsidiary, such sale,
transfer or disposition shall include all Equity Interests of and other
investments in and loans and advances to such Subsidiary (and any other
Subsidiary in which such sold Subsidiary holds an Equity Interest) and, after
giving effect thereto, none of the Borrower and the Subsidiaries shall owe any
Indebtedness to the Subsidiary so sold, transferred or otherwise disposed of,
and (B) the aggregate fair market value of all assets sold, transferred or
otherwise disposed of in reliance upon this clause (v) shall not exceed
$100,000,000 during any fiscal year of the Borrower;

(vi) sales of any fixed or capital assets pursuant to a sale-leaseback
transaction in compliance with clause (a) of Section 6.06; and

(vii) the Milton Sale-Leaseback;

provided that (A) all sales,
transfers, leases and other dispositions permitted by this paragraph (a)
(other than those permitted by clause (ii) above) shall be made for fair
value and (B) shall be (1) in the case of clause (i) above, for cash
consideration (including accounts receivable on customary terms in the ordinary
course of business), (2) in the case of clause (iii) above, for
consideration permitted for a Permitted Operating Asset Swap, (3) in the
case of clause (iv) above, for cash consideration or Subordinated
Receivables Transfer Debt, (4) in the case of clause (v) above, for
at least 80% cash consideration and (5) in the case of clause (vii) above,
for cash consideration.

(b) 
[Intentionally Omitted].

 88
 

SECTION 6.06. 
Sale and Leaseback Transactions. 
The Borrower will not, and will not permit any of the Subsidiaries to,
enter into any arrangement, directly or indirectly, whereby it shall sell or
transfer any property, real or personal, used or useful in its business,
whether now owned or hereafter acquired, and thereafter rent or lease such
property or other property that it intends to use for substantially the same
purpose or purposes as the property sold or transferred, except (a) for
any such sale of any fixed or capital assets by the 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 the
Borrower or such Subsidiary acquires or completes the construction of such
fixed or capital asset, (b) this Section 6.06 shall not prohibit the
Borrower or any Subsidiary from engaging in a sale or transfer of property
permitted by clause (v) of Section 6.05(a) and thereafter leasing
such property, provided that (i) such sale or transfer is made
solely for cash consideration, (ii) any Capital Lease Obligations of the
Borrower or any Subsidiary created thereby are permitted under
Section 6.01(a) and (iii) such sale or transfer shall be treated as a
Prepayment Event (regardless of whether such sale or transfer would otherwise
fall within the definition of that term) and any Net Proceeds received in respect
thereof shall be subject to the provisions of Section 2.11(c), provided
that the reinvestment provisions of Section 2.11(c) shall not apply to any
such Net Proceeds and (c) the Milton Sale-Leaseback.

SECTION 6.07. 
Swap Agreements.  The
Borrower will not, nor will it permit any Subsidiary to, enter into any Swap
Agreement, other than (a) Swap Agreements entered into to hedge or
mitigate risks to which the Borrower or any such Subsidiary has actual exposure
(other than those in respect of (i) Equity Interests of Holdings, the
Borrower or any Subsidiary, (ii) the Subordinated Debt or (iii) the
Senior Unsecured Debt), and (b) Swap Agreements entered into in order to
effectively cap, collar or exchange interest rates (from fixed to floating
rates, from one floating rate to another floating rate or otherwise) with
respect to any interest-bearing liability or investment of the Borrower or any
Subsidiary.

SECTION 6.08. 
Restricted Payments; Certain Payments of Indebtedness.  (a) 
None of Holdings or the Borrower will, nor will they permit any
Subsidiary to, declare or make, or agree to pay or make, directly or
indirectly, any Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, except:

(i) Subsidiaries may declare and pay dividends or make distributions
ratably with respect to their capital stock or membership interests:

(ii) the Borrower may make Restricted Payments, not exceeding
$5,000,000 during any fiscal year, pursuant to and in accordance with stock
option plans or other benefit plans for management or employees of the Borrower
and the Subsidiaries;

(iii) the Borrower may make distributions to Holdings at such times and
in such amounts, not exceeding $5,000,000 during any fiscal year, as shall be
necessary to permit Holdings to discharge its permitted liabilities;

 89
 

(iv) Holdings may redeem its Equity Interests and may make
distributions to FPH so that FPH may make such redemptions of Equity Interests
of FPH, in each case from former members of management, former employees, or
former directors of Loan Parties, and the Borrower may make distributions to
Holdings as necessary to fund such redemptions, provided that the
aggregate amount applied for all such purposes shall not exceed $10,000,000
during any fiscal year;

(v) Holdings and the Borrower may pay (by distribution or otherwise)
management fees to Madison Dearborn of up to $1,000,000 in the aggregate in any
fiscal year;

(vi) distributions by the Borrower to Holdings to pay directors’
out-of-pocket expenses and indemnification obligations owing to directors;

(vii) the Borrower may make distributions to Holdings, and Holdings may
in turn make distributions to FPH, (A) not exceeding $500,000 in the
aggregate during any fiscal year, at such times as shall be necessary to permit
FPH to discharge its corporate maintenance obligations and (B) not
exceeding $500,000 in the aggregate during any fiscal year, at such times as
shall be necessary to permit FPH to discharge its obligations related to its
portion of common expenses shared with Holdings or the Borrower;

(viii) for so long as Holdings is a pass-through or disregarded
entity for United States Federal income tax purposes, the Borrower may make
distributions to Holdings, and Holdings shall in turn be permitted, to make Tax
Distributions in respect of any taxable year of Holdings equal to the product
of (A) the amount of taxable income allocated to the Members for such
taxable year, less the amount of taxable loss allocated to the Members for all
prior taxable years (except to the extent such taxable losses have previously
been taken into account under this provision), times (B) the highest
aggregate marginal statutory Federal, state and local income tax rate
(determined taking into account the deductibility of state and local income
taxes for Federal income tax purposes) to which any of the direct or indirect
Members of Holdings who is an individual is subject for such year; and Holdings
shall be permitted to make such Tax Distributions pursuant to this clause
(viii) on a quarterly basis during such taxable year based on the best estimate
of the chief financial officer of Holdings of the amounts specified in clauses
(A) and (B) above; provided that if the aggregate amount of the
estimated Tax Distributions made in any taxable year of Holdings exceeds the
actual maximum amount of Tax Distributions for that year as finally determined,
the amount of any Tax Distributions in the succeeding taxable year (or, if
necessary, any subsequent taxable years) shall be reduced by the amount of such
excess, with such restrictions on distributions to be calculated separately for
each of Holdings’ Members;

(ix) after consummation of the IPO, the Borrower and Holdings may
declare or make, agree to pay or make, or incur obligations to make, Restricted
Payments in cash; provided that (A) the aggregate amount of such
Restricted

 90
 

Payments under
this clause (ix) (including those made by the Holding Companies, the Borrower
or the Timber Borrower under clause (xiii) of Section 6.08 of the First
Restated Credit Agreement) plus the aggregate amount of cash consideration
applied pursuant to clause (vii) of Section 6.08(b) shall not exceed
the aggregate Net Proceeds received from the IPO, (B) all such Restricted
Payments under this clause (ix) must be made within 180 days after
the date of consummation of the IPO and (C) any Restricted Payments under
this clause (ix) and any Net Proceeds from the IPO utilized to make such
Restricted Payments shall be disregarded for purposes of determining the amount
allowed for Permitted Restricted Payment/Investments;

(x) [intentionally omitted];

(xi) after consummation of the IPO, the Borrower may make distributions
to Holdings, and Holdings may in turn make distributions to FPH at such times
as shall be necessary to permit FPH to reimburse the expenses of Madison
Dearborn incurred in connection with the consummation of the IPO, but any such
distributions shall be deducted in calculating Net Proceeds from the IPO and
any Net Proceeds from the IPO utilized to make such Restricted Payments shall
be disregarded for purposes of determining the amount allowed for Permitted
Restricted Payment/Investments and

(xii) after the Third Restatement Effective Date, Holdings may make any
Restricted Payment, and the Borrower may make any Restricted Payment to
Holdings in order to fund such Restricted Payment by Holdings, if such
Restricted Payment is a Permitted Restricted Payment/Investment.

(b) 
Neither Holdings nor the Borrower will, nor will the Borrower permit any
Subsidiary to, make or agree to pay or make, directly or indirectly, any
payment or other distribution (whether in cash, securities or other property)
of or in respect of principal of or interest on any Indebtedness, or any
payment or other distribution (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase,
redemption, retirement, acquisition, cancelation or termination of any
Indebtedness, except:

(i) payment of Indebtedness created under the Loan Documents;

(ii) payment of interest and principal payments as and when due in
respect of any Indebtedness, other than payments in respect of the Subordinated
Debt or any Additional Subordinated Debt prohibited by the subordination
provisions thereof;

(iii) refinancings of Indebtedness to the extent permitted by
Section 6.01 and refinancings of Indebtedness with the Net Proceeds of any
Additional Subordinated Debt;

 91
 

(iv) payment of secured Indebtedness that becomes due as a result of
the voluntary sale or transfer or involuntary condemnation of the property or
assets securing such Indebtedness;

(v) the Redemption shall be permitted if the Delayed Draw Term Loans
are borrowed and, prior to the Redemption, the Borrower may purchase Initial
Senior Unsecured Debt (provided that any such Initial Senior Unsecured Debt so
purchased shall be retired);

(vi) payment of Indebtedness to the Borrower or a Subsidiary;

(vii) after consummation of the IPO, the Borrower may redeem or
repurchase Senior Unsecured Debt or Subordinated Debt for cash consideration; provided
that (A) the aggregate amount applied for such purposes plus the aggregate
amount of Restricted Payments made pursuant to clause (ix) of
Section 6.08(a) shall not exceed the aggregate Net Proceeds received from
the IPO, (B) all such redemptions and repurchases must be made within
180 days after the date of consummation of the IPO, (C) any Senior
Unsecured Debt or Subordinated Debt so redeemed or repurchased shall be retired
and canceled and (D) the amount of Net Proceeds utilized to finance such
redemptions and repurchases shall be disregarded for purposes of determining
the amount of Permitted Restricted Payments/Investments; and

(viii) additional payments of Indebtedness not otherwise permitted by
this Section 6.08(b); provided that such payments are treated as
Restricted Payments pursuant to clause (xii) of Section 6.08(a) and
are permitted thereby.

SECTION 6.09. 
Transactions with Affiliates. 
Neither Holdings nor the Borrower will, nor will the Borrower permit any
Subsidiary to, sell, lease or otherwise transfer any property or assets to, or
purchase, lease or otherwise acquire any property or assets from, or otherwise
engage in any other transactions with, any of its Affiliates, except
(a) transactions in the ordinary course of business that do not involve
Holdings and are at prices and on terms and conditions not less favorable to
the Borrower or relevant Subsidiary than could be obtained on an arm’s-length
basis from unrelated third parties, (b) transactions between or among the
Borrower and Subsidiaries that are Subsidiary Loan Parties not involving any
other Affiliate, (c) [Intentionally Omitted], (d) the payment to
Madison Dearborn of management fees in compliance with clause (v) of
Section 6.08(a), (e) transactions entered into pursuant to and in
compliance with the Supply Agreement, (f) transactions pursuant to and in
compliance with the agreements entered into on the Original Effective Date
described on Schedule 6.09, (g) any Restricted Payment permitted by
Section 6.08 and (h) the issuance or exchange of Equity Interests of
Holdings in order to effect the Holdings Corporate Conversion.

SECTION 6.10. 
Restrictive Agreements. 
Neither Holdings nor the Borrower will, nor will the Borrower permit any
Subsidiary to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement that prohibits, restricts or imposes any
condition upon (a) the ability of Holdings, the Borrower or any Subsidiary
to create, incur or permit to exist any Lien upon any of its property or assets,
or (b) the ability of any Subsidiary to pay dividends or other
distributions with respect to any shares of its Equity Interests, or to make or
repay loans or advances to the Borrower or any

 92
 

Subsidiary or to Guarantee Indebtedness of the Borrower or any other
Subsidiary; provided that (i) the foregoing shall not apply to
restrictions and conditions imposed by law or by any Loan Document,
Subordinated Debt Document or Senior Unsecured Debt Document, (ii) the
foregoing shall not apply to restrictions and conditions existing on the
Original Effective Date identified on Schedule 6.10 (but shall apply to
any extension or renewal of, or any amendment or modification expanding the
scope of, any such restriction or condition), (iii) the foregoing shall
not apply to customary restrictions and conditions contained in agreements
relating to the sale of a Subsidiary pending such sale, provided such
restrictions and conditions apply only to the Subsidiary that is to be sold and
such sale is permitted hereunder, (iv) clause (a) of the foregoing
shall not apply to restrictions or conditions imposed by any agreement relating
to secured Indebtedness permitted by this Agreement or any Permitted
Receivables Financing if such restrictions or conditions apply only to the
property or assets securing such Indebtedness or the Receivables and Related
Security subject to such Permitted Receivables Financing, as the case may be,
(v) clause (a) of the foregoing shall not apply to customary
provisions in leases and other contracts restricting the assignment thereof and
(vi) clause (b) of the foregoing shall not apply to restrictions or
conditions imposed on a Receivables Subsidiary by a Permitted Receivables
Financing.

SECTION 6.11. 
Amendment of Material Documents. 
Neither Holdings nor the Borrower will, nor will the Borrower permit any
Subsidiary to, amend, modify or waive any of its rights under (a) any
Subordinated Debt Document or Additional Subordinated Debt Document,
(b) any Senior Unsecured Debt Document, (c) its certificate of incorporation,
by-laws or other organizational documents (other than those of Holdings in
connection with the Holdings Corporate Conversion or the Borrower in connection
with the Borrower Corporate Conversion), (d) the Acquisition Agreement,
(e) the Additional Consideration Agreement, (f) the Supply Agreement
or (g) any agreement listed on Schedule 6.09, other than any such
amendments or modifications that are not adverse to the interests of the
Lenders.

SECTION 6.12. 
Interest Expense Coverage Ratio. 
For the benefit of the Revolving Facility only (and only so long as
there are any Revolving Commitments or any Revolving Exposure), Holdings will
not permit the ratio of (a) Consolidated EBITDA to (b) Consolidated
Cash Interest Expense, in each case for any period of four consecutive fiscal
quarters ending on any quarter-end date during any period set forth below, to
be less than the ratio set forth below opposite such period:

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  On or prior to and including December 31, 2007

  	
   

  	
  2.000 to 1.000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January 1, 2008 to and including December 31,
  2008

  	
   

  	
  2.250 to 1.000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thereafter

  	
   

  	
  2.500 to 1.000

  	
   

  

 

 93
 

 

SECTION 6.13. 
Leverage Ratio.  For the
benefit of the Revolving Facility only (and only so long as there are any
Revolving Commitments or any Revolving Exposure), Holdings will not permit the
Leverage Ratio as of any quarter-end date during any period set forth below to
exceed the ratio set forth opposite such period:

	
  Period

  	
   

  	
  Ratio

  	
   

  
	
  On or prior to and including December 31, 2007

  	
   

  	
  5.00 to 1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January 1, 2008 to and including December 31,
  2008

  	
   

  	
  4.75 to 1.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thereafter

  	
   

  	
  4.50 to 1.00

  	
   

  

 

ARTICLE
VII

Events
of Default

If any of the following events (“Events of Default”)
shall occur:

(a)  the Borrower shall fail to
pay any principal of any Loan or fail to pay any reimbursement obligation in
respect of any LC Disbursement when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment
thereof or otherwise;

(b)  the Borrower shall fail to
pay any interest on any Loan or any fee or any other amount (other than an
amount referred to in clause (a) of this Article) payable under this
Agreement or any other Loan Document, when and as the same shall become due and
payable, and such failure shall continue unremedied for a period of three
Business Days;

(c)  any representation or
warranty made or deemed made by or on behalf of any of Holdings, the Borrower
or the Subsidiaries in any Loan Document or any amendment or modification
thereof or waiver thereunder, or in any certificate, financial statement or
other document furnished by or on behalf of a Loan Party to an Agent or the
Lenders pursuant to or in connection with any Loan Document or any amendment or
modification thereof or waiver thereunder, shall prove to have been incorrect
in any material respect when made or deemed made;

(d)  subject to the last
paragraph of this Article, either Holdings or the Borrower shall fail to observe
or perform any covenant, condition or agreement contained in Section 5.02,
5.04 (with respect to the existence of Holdings or the Borrower) or 5.11 or in
Article VI; provided that any Event of Default in respect

 94

of Section 6.12 or 6.13 may be waived, amended or modified by the
Required Revolving Lenders in accordance with Section 9.02;

(e)  any Loan Party shall fail to
observe or perform any covenant, condition or agreement contained in any Loan
Document (other than those specified in clause (a), (b) or (d) of this
Article), and such failure shall continue unremedied for a period of
30 days after notice thereof from the Administrative Agent to the Borrower
(which notice will be given at the request of any Lender);

(f)  any of Holdings, the
Borrower or the Subsidiaries shall fail to make any payment (whether of
principal or interest and regardless of amount) in respect of any Material
Indebtedness, when and as the same shall become due and payable (or, if
applicable under the terms of such Indebtedness without giving effect to any
amendment entered into in connection with the failure to make such payment,
within any period of grace allowed with respect to such payment);

(g)  subject to the last
paragraph of this Article, any event or condition occurs that (i) results
in any Material Indebtedness becoming due prior to its scheduled maturity or
that enables or permits (with or without the giving of notice, the lapse of
time or both) the holder or holders of any Material Indebtedness or any trustee
or agent on its or their behalf to cause any Material Indebtedness to become
due, or to require the prepayment, repurchase, redemption or defeasance
thereof, prior to its scheduled maturity or (ii) results in the termination
of a Permitted Receivables Financing prior to its scheduled termination (other
than a voluntary termination by the Borrower) or enables or permits the
financing parties thereunder or any trustee or agent on their behalf to
terminate a Permitted Receivables Financing; provided that this
clause (g) shall not apply (A) unless and until all applicable grace
or cure periods shall have passed and (B) to Indebtedness that becomes due
as a result of the voluntary sale or transfer of property or assets or as a
result of the application (other than by reason of a breach or default by a
Loan Party) of any provision in such Indebtedness that requires any Loan Party
to prepay a portion (but less than substantially all) of such Indebtedness then
outstanding or that requires any Loan Party to offer to redeem or repurchase
some (but less than substantially all) of such Indebtedness then outstanding;

(h)  an involuntary proceeding
shall be commenced or an involuntary petition shall be filed seeking
(i) liquidation, reorganization or other relief in respect of any of
Holdings, the Borrower or any Material Subsidiary or its debts, or of a
substantial part of its assets, under any Federal, state or foreign bankruptcy,
insolvency, receivership or similar law now or hereafter in effect or
(ii) the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any of Holdings, the Borrower or any
Material Subsidiary or for a substantial part of its assets, and, in any such
case, such proceeding or petition shall continue undismissed for 60 days
or an order or decree approving or ordering any of the foregoing shall be
entered;

 95
 

(i)  any of Holdings, the
Borrower or any Material Subsidiary shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other
relief under any Federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect, (ii) consent to the institution
of, or fail to contest in a timely and appropriate manner, any proceeding or
petition described in clause (h) of this Article, (iii) apply for or
consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any of Holdings, the Borrower or any Material
Subsidiary or for a substantial part of its assets, (iv) file an answer
admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or
(vi) take any action for the purpose of effecting any of the foregoing;

(j)  any of Holdings, the
Borrower or the Material Subsidiaries shall become unable, admit in writing its
inability or fail generally to pay its debts as they become due;

(k)  one or more judgments for
the payment of money in an aggregate amount in excess of $15,000,000 (to the
extent not covered by independent third party insurance as to which the insurer
is rated at least “A” by A.M. Best Company, has been notified of the potential
claim and does not dispute coverage) shall be rendered against any of Holdings,
the Borrower, the Subsidiaries or any combination thereof and the same shall
remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be legally taken
by one or more judgment creditors to attach or levy upon any assets of any of
Holdings, the Borrower or the Subsidiaries to enforce one or more of any such
judgments in an aggregate amount in excess of $15,000,000;

(l)  an ERISA Event shall have occurred
that, when taken together with all other ERISA Events that have occurred, would
reasonably be expected to result in a Material Adverse Effect;

(m)  any Lien purported to be
created under any Security Document shall cease to be, or shall be asserted by
any Loan Party not to be, a valid and perfected Lien on any Collateral (other
than Collateral with an aggregate fair market value not exceeding $5,000,000),
with the priority required by the applicable Security Document, except
(i) as a result of the sale or other disposition of the applicable
Collateral in a transaction permitted under the Loan Documents, (ii) as a
result of the Collateral Agent’s failure to maintain possession of any stock
certificates, promissory notes or other instruments delivered to it under the
Collateral Agreement, (iii) as a result of the Collateral Agent’s failure
to file or record any UCC financing statement or other document delivered to it
for filing or recording or (iv) as a result of the applicable Security
Document not requiring perfection with respect to such Collateral;

 96
 

(n)  any Guarantee of the
Obligations purported to be created under any Loan Document shall cease to be,
or shall be asserted by any Loan Party not to be, in full force and effect;
provided that this clause (n) shall not apply to any Guarantee that ceases to
be in full force and effect in accordance with the express terms of any
applicable Loan Document; or

(o)  a Change in Control shall
occur;

then, and in every such event (other than an event
with respect to the Borrower described in clause (h) or (i) of this
Article), and at any time thereafter during the continuance of such event, the
Administrative Agent may, and at the request of the Required Lenders shall, by
notice to the Borrower, take either or both of the following actions, at the
same or different times: 
(i) terminate the Commitments, and thereupon the Commitments shall
terminate immediately, and (ii) declare the Loans then outstanding to be
due and payable in whole (or in part, in which case any principal not so
declared to be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and
payable, together with accrued interest thereon and all fees and other
obligations of the Borrower accrued hereunder, shall become due and payable
immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Borrower; and in case of any event with
respect to the Borrower described in clause (h) or (i) of this Article,
the Commitments shall automatically terminate and the principal of the Loans
then outstanding, together with accrued interest thereon and all fees and other
obligations of the Borrower accrued hereunder, shall automatically become due
and payable, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by the Borrower.

Notwithstanding clauses (d) and (g) of this
Article, any failure to comply with Section 6.12 or 6.13 shall not, in and
of itself, constitute an Event of Default for purposes of the Term Loans or
entitle the Term Lenders to exercise any right or remedy until the earlier to
occur of (i) the 30th day after the delivery to the Administrative Agent
by Holdings, the Borrower or any Term Lender of notice of such failure to so
comply and (ii) the date that Revolving Commitments are terminated, or any
Revolving Loans are declared due and payable or any other remedies are
exercised by or on behalf of the Revolving Lenders, as a result of such failure
to so comply.

ARTICLE
VIII

The
Administrative Agent

Each of the Lenders and the Issuing Banks hereby
irrevocably appoints the Administrative Agent as its agent and authorizes the
Administrative Agent to take such actions on its behalf and to exercise such
powers as are delegated to the Administrative Agent by the terms of the Loan
Documents, together with such actions and powers as are reasonably incidental
thereto.

The bank serving as the Administrative Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other
Lender and may exercise

 97
 

the same as though it
were not the Administrative Agent, and such bank and its Affiliates may accept
deposits from, lend money to and generally engage in any kind of business with
any of Holdings, the Borrower or the Subsidiaries or other Affiliate thereof as
if it were not the Administrative Agent hereunder.

The Administrative Agent shall not have any duties or
obligations except those expressly set forth in the Loan Documents.  Without limiting the generality of the
foregoing, (a) the Administrative Agent shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing, (b) the Administrative Agent shall not have any duty to
take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Loan Documents
that the Administrative Agent is required to exercise in writing as directed by
the Required Lenders (or such other number or percentage of the Lenders as
shall be necessary under the circumstances as provided in Section 9.02),
and (c) except as expressly set forth in the Loan Documents, the
Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to any of
Holdings, the Borrower or the Subsidiaries that is communicated to or obtained
by the bank serving as Administrative Agent or any of its Affiliates in any
capacity.  The Administrative Agent shall
not be liable for any action taken or not taken by it with the consent or at
the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in
Section 9.02) or in the absence of its own gross negligence or wilful
misconduct.  The Administrative Agent
shall be deemed not to have knowledge of any Default unless and until written
notice thereof is given to the Administrative Agent by Holdings, the Borrower
or a Lender, and the Administrative Agent shall not be responsible for or have
any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered thereunder or
in connection therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth in any Loan
Document, (iv) the validity, enforceability, effectiveness or genuineness
of any Loan Document or any other agreement, instrument or document, or
(v) the satisfaction of any condition set forth in Article IV or
elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to the Administrative Agent.

The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person.  The Administrative Agent also may rely upon
any statement made to it orally or by telephone and believed by it to be made
by the proper Person, and shall not incur any liability for relying thereon.  The Administrative Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants
and other experts selected by it, and shall not be liable for any action taken
or not taken by it in good faith in accordance with the advice of any such
counsel, accountants or experts.

The Administrative Agent may perform any and all its
duties and exercise its rights and powers by or through any one or more
sub-agents appointed by the

 98
 

Administrative
Agent.  The Administrative Agent and any
such sub-agent may perform any and all its duties and exercise its rights and
powers through their respective Related Parties.  The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of each
Administrative Agent and any such sub-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.

Subject to the appointment and acceptance of a
successor to the Administrative Agent as provided in this paragraph, the
Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Banks and the Borrower.  Upon any
such resignation, the Required Lenders shall have the right to appoint a
successor approved by the 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).  If
no successor shall have been so appointed by the Required Lenders and shall
have accepted such appointment within 30 days after the retiring
Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders and the Issuing Banks,
appoint a successor Administrative Agent which shall be a bank with an office
in New York, New York, or an Affiliate of any such bank.  Upon the acceptance of its appointment as
Administrative Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent, and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder.  The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrower and such
successor.  After the Administrative
Agent’s resignation hereunder, the provisions of this Article and
Section 9.03 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties
in respect of any actions taken or omitted to be taken by any of them while it
was acting as Administrative Agent.

Each Lender acknowledges that it has, independently
and without reliance upon the Administrative Agent or any other Lender and
based on such documents and information as it has deemed appropriate, made its
own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other
Lender and based on such documents and information as it shall from time to
time deem appropriate, continue to make its own decisions in taking or not taking
action under or based upon this Agreement, any other Loan Document or related
agreement or any document furnished hereunder or thereunder.

Each party hereto agrees and acknowledges that
(i) the Syndication Agent and the Joint Lead Arrangers do not have any
duties or responsibilities in their capacities as Syndication Agent and Joint
Lead Arrangers, respectively, hereunder and shall not have, or become subject
to, any liability hereunder in such capacities and (ii) the exculpation
provisions contained herein relating to the Administrative Agent shall be
equally applicable to the Syndication Agent, and the Syndication Agent shall
receive the full benefit thereof.

 99
 

ARTICLE
IX

Miscellaneous

SECTION 9.01. 
Notices.  (a)  Except in the case of notices and other
communications expressly permitted to be given by telephone (and subject to
paragraph (b) below), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopy, as
follows:

(i) if to Holdings, to it at c/o Madison Dearborn Capital
Partners IV, L.P., Three First National Plaza, Suite 3800, Chicago,
IL 60602, Attention of Thomas S. Souleles and Samuel M. Mencoff
(Telecopy No. (312) 895-1001);

(ii) if to the Borrower, to it at 1111 West Jefferson Street, P.O. Box
50, Boise, ID 83728, Attention of Chief Executive Officer and Chief Financial
Officer (Telecopy No. (208) 384-4913);

(iii) if to the Administrative Agent, to JPMorgan Chase Bank, N.A.,
Agent Bank Services Group, 1111 Fannin Street, Houston, TX 77002,
Attention of Leah Hughes (Telecopy No. (713) 750-2932) and, in the event of the
delivery of a Borrowing Request, Saji Easo (Telecopy No. (713) 750-2599), with a
copy to JPMorgan Chase Bank, N.A., 270 Park Avenue, New York, New
York 10017, Attention of Peter Predun (Telecopy No. (212) 270-5100);

(iv) if to JPMorgan Chase Bank, N.A., as Issuing Bank, to it at Agent
Bank Services Group, 1111 Fannin Street, Houston, TX 77002, Attention
of Leah Hughes (Telecopy No. (713) 750-2932), with a copy to JPMorgan Chase
Bank, N.A., 270 Park Avenue, New York, New York 10017, Attention of
Peter Predun (Telecopy No. (212) 270-5100);

(v) if to the Committed Swingline Lender, to JPMorgan Chase Bank, N.A.,
Agent Bank Services Group, 1111 Fannin Street, Houston, TX 77002,
Attention of Leah Hughes (Telecopy No. (713) 750-2932), with a copy to JPMorgan
Chase Bank, N.A., 270 Park Avenue, New York, New York 10017,
Attention of Peter Predun (Telecopy No. (212) 270-5100); and

(vi) if to any other Lender or Issuing Bank, to it at its address (or
telecopy number) set forth in its Administrative Questionnaire.

(b) 
Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures
approved by the Administrative Agent; provided that the foregoing shall
not apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. 
The Administrative Agent or the 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.

 100
 

(c) 
Any party hereto may change its address or telecopy number for notices
and other communications hereunder by notice to the other parties hereto.  All notices and other communications given to
any party hereto in accordance with the provisions of this Agreement shall be
deemed to have been given on the date of receipt.  All notices received by Holdings or the
Borrower hereunder shall be deemed for all purposes under this Agreement to have
been received by each of Holdings and the Borrower.

SECTION 9.02. 
Waivers; Amendments. 
(a)  No failure or delay by the
Administrative Agent, any Issuing Bank, any Lender or any Loan Party in
exercising any right or power hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce
such right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. 
The rights and remedies of the Administrative Agent, the Issuing Banks,
the Lenders and the Loan Parties hereunder and under the other Loan Documents
are cumulative and are not exclusive of any rights or remedies that they would
otherwise have.  No waiver of any provision
of any Loan Document or consent to any departure by any Loan Party therefrom
shall in any event be effective unless the same shall be permitted by
paragraph (b) of this Section, and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which
given.  Without limiting the generality
of the foregoing, the making of a Loan or issuance of a Letter of Credit shall
not be construed as a waiver of any Default, regardless of whether the
Administrative Agent, any Lender or any Issuing Bank may have had notice or
knowledge of such Default at the time.

(b) 
Neither this Agreement nor any other Loan Document nor any provision
hereof or thereof may be waived, amended or modified except, in the case of
this Agreement, pursuant to an agreement or agreements in writing entered into
by Holdings, the Borrower and the Required Lenders or, in the case of any other
Loan Document, pursuant to an agreement or agreements in writing entered into
by the Administrative Agent and the Loan Party or Loan Parties that are parties
thereto, in each case with the consent of the Required Lenders; provided
that no such agreement shall (i) increase the Commitment of any Lender
without the written consent of such Lender, (ii) reduce or forgive the
principal amount of any Loan or LC Disbursement or reduce the rate of interest
thereon, or reduce any fees payable hereunder, without the written consent of
each Lender affected thereby, (iii) postpone the maturity of any Loan, or
any scheduled date of payment of the principal amount of any Term Loan under
Section 2.10, or the required date of reimbursement of any LC
Disbursement, or any date for the payment of any interest or fees payable
hereunder, or reduce or forgive the amount of, waive or excuse any such
payment, or postpone the scheduled date of expiration of any Commitment,
without the written consent of each Lender affected thereby, (iv) change
Section 2.18(b) or (c) in a manner that would alter the pro rata sharing
of payments required thereby, without the written consent of each Lender,
(v) change any of the provisions of this Section or the percentage set
forth in the definition of “Required Lenders” or any other provision of any
Loan Document specifying the number or percentage of Lenders (or Lenders of any
Class) required to waive, amend or modify any

 101
 

rights thereunder or make any determination or grant any consent
thereunder, without the written consent of each Lender (or each Lender of such
Class, as the case may be), (vi) release any material Guarantee under the
Collateral Agreement (except as expressly provided in the Collateral
Agreement), or limit the applicable Loan Party’s liability in respect of any
such material Guarantee, without the written consent of each Lender,
(vii) release all or substantially all of the Collateral from the Liens of
the Security Documents (other than the releases expressly permitted by the
Security Documents), without the written consent of each Lender, or
(viii) change any provisions of any Loan Document in a manner that by its
terms adversely affects the rights in respect of payments due to Lenders
holding Loans of any Class differently than those holding Loans of any other
Class, without the written consent of Lenders holding a majority in interest of
the outstanding Loans and unused Commitments of each affected Class; provided
further that (A) no such agreement shall amend, modify or otherwise
affect the rights or duties of the Administrative Agent, any Issuing Bank or
the Swingline Lender without the prior written consent of the Administrative
Agent, such Issuing Bank or the Swingline Lender, as the case may be,
(B) any waiver, amendment or modification of this Agreement that by its
terms affects the rights or duties under this Agreement of one Class of Lenders
(but not other Classes) may be effected by an agreement or agreements in
writing entered into by Holdings, the Borrower and the requisite percentage in
interest of the affected Class of Lenders that would be required to consent
thereto under this Section if such Class of Lenders were the only Class of
Lenders hereunder at the time, and (C) any waiver, amendment or modification of
Section 6.12 or 6.13 (or related definitions to the extent applicable to
determinations under such Sections) may be effected with the written consent of
the Required Revolving Lenders (and shall not be effective without the written
consent of the Required Revolving Lenders). 
Notwithstanding the foregoing, any provision of this Agreement may be
amended by an agreement in writing entered into by Holdings, the Borrower, the
Required Lenders and the Administrative Agent (and, if their rights or
obligations are affected thereby, each Issuing Bank and the Swingline Lender)
if (i) by the terms of such agreement the Commitment of each Lender not
consenting to the amendment provided for therein shall terminate upon the
effectiveness of such amendment and (ii) at the time such amendment
becomes effective, each Lender not consenting thereto receives payment in full
of the principal of and interest accrued on each Loan made by it and all other
amounts owing to it or accrued for its account under this Agreement.

SECTION 9.03. 
Expenses; Indemnity; Damage Waiver.  (a) 
The Borrower agrees to pay (i) all reasonable out-of-pocket
expenses incurred by the Agents and their respective Affiliates, including the
reasonable fees, charges and disbursements of counsel for each of the Agents,
in connection with the syndication of the credit facilities provided for
herein, the preparation and administration of the Loan Documents or any
amendments, modifications or waivers of the provisions thereof (whether or not
the transactions contemplated hereby or thereby shall be consummated),
(ii) all reasonable out-of-pocket expenses incurred by any Issuing
Bank in connection with the issuance, amendment, renewal or extension of any
Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by either Agent, any Issuing Bank or any
Lender, including the fees, charges and disbursements of any counsel for either
of the Agents, any Issuing Bank or any Lender, in connection with the

 102
 

enforcement or protection of its rights in connection with the Loan
Documents, including its rights under this Section, or in connection with the
Loans made or Letters of Credit issued hereunder, including all such out-of-pocket
expenses incurred during  any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.

(b) 
The Borrower agrees to indemnify each Agent, each Issuing Bank and each
Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all losses, claims, damages, liabilities and related
expenses, including the fees, charges and disbursements of any counsel for any
Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution or delivery of any
Loan Document or any other agreement or instrument contemplated hereby, the
performance by the parties to the Loan Documents of their respective
obligations thereunder or the consummation of the Third Restatement
Transactions or any other transactions contemplated hereby, (ii) any Loan
or Letter of Credit or the use of the proceeds therefrom (including any refusal
by an Issuing Bank to honor a demand for payment under a Letter of Credit if
the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged
presence or release of Hazardous Materials on or from any Mortgaged Property or
any other property currently or formerly owned or operated by any of the
Borrower or the Subsidiaries, or any Environmental Liability related in any way
to any of the Borrower or the Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that
such losses, claims, damages, liabilities or related expenses resulted from
(i) the gross negligence, wilful misconduct or bad faith of such
Indemnitee or (ii) a dispute arising exclusively between or among the
Agents, the Lenders and/or the Issuing Banks.

(c)  To
the extent that the Borrower fails to pay any amount required to be paid by it
to the Administrative Agent, any Issuing Bank or Committed Swingline Lender
under paragraph (a) or (b) of this Section, (i) each Lender severally
agrees to pay to the Administrative Agent such Lender’s pro rata share
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount that is owing to the
Administrative Agent and (ii) each Revolving Lender severally agrees to
pay to such Issuing Bank or the Committed Swingline Lender, as the case may be,
such Revolving Lender’s pro rata share (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount that is owing to such Issuing Bank or the Committed Swingline Lender, as
the case may be; provided, in each case, that the unreimbursed expense
or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent, such
Issuing Bank or the Committed Swingline Lender in its capacity as such.  For purposes of clause (i) above, a
Lender’s “pro rata share” shall be determined based upon its share of the sum
of the total Revolving Exposures, outstanding Term Loans and unused Commitments
at the time.  For purposes of clause (ii)
above, a Revolving Lender’s “pro rata share” shall be determined based upon its

 103
 

share of the sum of the total Revolving Exposures and unused Revolving
Commitments at the time.

(d)  To
the extent permitted by applicable law, none of Holdings, the Borrower, the
Agents, the Lenders or the Issuing Banks shall assert, and each hereby waives,
any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual
damages) arising out of, in connection with, or as a result of, this Agreement
or any agreement or instrument contemplated hereby, the Third Restatement
Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

(e) 
All amounts due under this Section shall be payable promptly after
written demand therefor.

SECTION 9.04. 
Successors and Assigns. 
(a)  The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby (including any
Affiliate of any Issuing Bank that issues any Letter of Credit), except that
(i) the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its
rights or obligations hereunder except in accordance with this Section.  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 (including any
Affiliate of any Issuing Bank that issues any Letter of Credit), Participants
(to the extent provided in paragraph (c) of this Section) and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the Issuing Banks and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement.

(b) 
(i)  Subject to the conditions set
forth in paragraph (b)(ii) below, any Lender may assign to one or more
assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing
to it) with the prior written consent (such consent not to be unreasonably
withheld or delayed) of:

(A)  the Borrower; provided that no consent
of the Borrower shall be required for an assignment to a Lender, an Affiliate
of a Lender, an Approved Fund or, if an Event of Default has occurred and is
continuing, any other assignee; and

(B)  the Administrative Agent; provided
that no consent of the Administrative Agent shall be required for an assignment
of all or any portion of a Term Loan to a Lender, an Affiliate of a Lender or
an Approved Fund; and

(C)  each Issuing Bank; provided that no
consent of any Issuing Bank shall be required for an assignment of all or any
portion of a Term Loan.

 104
 

(ii) 
Assignments shall be subject to the following additional conditions:

(A)  except in the case of an assignment to a
Lender or an Affiliate of a Lender or an Approved Fund or an assignment of the
entire remaining amount of the assigning Lender’s Commitment or Loans of any
Class, the amount of the Commitment or Loans of the assigning Lender subject to
each such assignment (determined as of the date the Assignment and Assumption
with respect to such assignment is delivered to the Administrative Agent) shall
not be less than $5,000,000 or, in the case of a Term Loan, $1,000,000 unless
the Borrower and the Administrative Agent otherwise consent; provided
that simultaneous assignments to two or more related Approved Funds shall be
aggregated for purposes of determining compliance with such minimum assignment
thresholds; provided further no such consent of the Borrower shall be
required if an Event of Default has occurred and is continuing;

(B)  each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement, except that this clause (B) shall not be
construed to prohibit the assignment of a proportionate part of all the
assigning Lender’s rights and obligations in respect of one Class of
Commitments or Loans;

(C)  the parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together
with a processing and recordation fee of $3,500 to be paid by the assignor or
assignee; provided that only one such fee shall be payable in connection
with simultaneous assignments to or by two or more related Approved Funds; and

(D)  the assignee, if it shall not be a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire in
which the assignee designates one or more contacts to whom all syndicate-level
information (which may contain material non-public information about the Loan
Parties and their Related Parties or their respective securities) will be made
available and who may receive such information in accordance with the assignee’s
compliance procedures and applicable laws, including Federal and state
securities laws.

For purposes of this Section 9.04(b), the term “Approved
Fund” has the following meaning:

“Approved Fund” means any Person (other than a
natural person) that is engaged in making, purchasing, holding or investing in
bank loans and similar extensions of credit in the ordinary course and that is
administered, advised, or managed by, or has as its principal investment
advisor, a Lender, an Affiliate of a Lender or an entity or an Affiliate of an
entity that administers, advises, or manages a Lender or is the principal
investment advisor of a Lender.

(iii) 
Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, from and after the effective date
specified in each

 105
 

Assignment and Assumption, the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Assumption, shall have the rights and obligations of a Lender under this
Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to
be entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 9.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section.

(iv) 
The Administrative Agent, acting for this purpose as an agent of the
Borrower, shall maintain at one of its offices in The City of New York a copy
of each Assignment and Assumption delivered to it and a register for the
recordation of the names and addresses of the Lenders, and the Commitment of,
and principal amount of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be
conclusive, and each of Holdings, the Borrower, the Administrative Agent, the
Issuing Banks and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all
purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection
by the Borrower, any Issuing Bank and any Lender, at any reasonable time and
from time to time upon reasonable prior notice.

(v) 
Upon its receipt of a duly completed Assignment and Assumption executed
by an assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this
Section and any written consent to such assignment required by paragraph (b)
of this Section, the Administrative Agent shall accept such Assignment and
Assumption and record the information contained therein in the Register.  No assignment shall be effective for purposes
of this Agreement unless it has been recorded in the Register as provided in
this paragraph.

(c) 
(i)  Any Lender may, without the
consent of the Borrower, the Administrative Agent, the Issuing Banks or the
Committed Swingline Lender, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (A) such
Lender’s obligations under this Agreement shall remain unchanged, (B) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (C) Holdings, the Borrower, the
Administrative Agent, the Issuing Banks and the other Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall

 106
 

retain the sole right to enforce the Loan Documents and to approve any
amendment, modification or waiver of any provision of the Loan Documents; provided
that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, modification or
waiver described in the first proviso to Section 9.02(b) that affects such
Participant.  Subject to
paragraph (f) of this Section, the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the
same extent as if it were a Lender and had acquired its interest by assignment
pursuant to paragraph (c)(ii) of this Section.  To the extent permitted by law, each
Participant also shall be entitled to the benefits of Section 9.08 as
though it were a Lender, provided such Participant agrees to be subject to
Section 2.18(c) as though it were a Lender.

(ii)  A
Participant shall not be entitled to receive any greater payment under
Section 2.15 or 2.17 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 the Borrower’s
prior written consent.  A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the
benefits of Section 2.17 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 2.17(e) as though it were
a Lender.

(d) 
Any Lender may, without the consent of the Borrower or the
Administrative Agent, at any time pledge or assign a security interest in all
or any portion of its rights under this Agreement to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a
security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

SECTION 9.05. 
Survival.  All covenants,
agreements, representations and warranties made by the Loan Parties in the Loan
Documents and in the certificates or other instruments  delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans and issuance of any
Letters of Credit, regardless of any investigation made by any such other party
or on its behalf and notwithstanding that the Administrative Agent, any Issuing
Bank or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and
shall continue in full force and effect as long as the principal of or any
accrued interest on any Loan or any fee or any other amount payable under this
Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated.  The provisions of Sections 2.15, 2.16,
2.17 and 9.03 and Article VIII shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby,
the repayment of the Loans, the expiration or termination of the Letters of
Credit and the Commitments or the termination of this Agreement or any
provision hereof.

 107
 

SECTION 9.06. 
Counterparts; Integration; Effectiveness.  This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract.  This
Agreement, the other Loan Documents and any separate letter agreements with
respect to fees payable to the Administrative Agent constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating
to the subject matter hereof.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns.

SECTION 9.07. 
Severability.  Any
provision of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such invalidity, illegality or unenforceability without affecting the validity,
legality and enforceability of the remaining provisions hereof; and the
invalidity of a particular provision in a particular jurisdiction shall not
invalidate such provision in any other jurisdiction.

SECTION 9.08. 
Right of Setoff.  If
(a) an Event of Default (other than with respect to clause (a) or (b)
of Article VII) shall have occurred and be continuing and the Loans shall
have been declared due and payable by the Administrative Agent or (b) an
Event of Default shall have occurred and be continuing with respect to
clause (a) or (b) of Article VII, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other obligations at any time owing by such Lender or Affiliate to or for the
credit or the account of the Borrower against any of and all the obligations of
the Borrower now or hereafter existing under this Agreement held by such
Lender, irrespective of whether or not such Lender shall have made any demand
under this Agreement and although such obligations may be unmatured.  In the event that any Lender or an Affiliate
of a Lender exercises its rights under this Section 9.08, such Lender
shall promptly thereafter provide to the Borrower notice thereof (it being
understood that a Lender’s failure to provide such notice shall not affect its
rights under this Section 9.08). 
The rights of each Lender under this Section are in addition to other
rights and remedies (including other rights of setoff) which such Lender may
have.

SECTION 9.09. 
Governing Law; Jurisdiction; Consent to Service of Process.  (a) 
This Agreement shall be construed in accordance with and governed by the
law of the State of New York.

(b) 
Each of Holdings and the Borrower hereby irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the
United States District Court of the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to any Loan Document, or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent

 108
 

permitted by law, in such Federal court.  Each of the parties hereto agrees that a
final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.  Nothing in this
Agreement or any other Loan Document shall affect any right that the
Administrative Agent, any Issuing Bank or any Lender may otherwise have to
bring any action or proceeding relating to this Agreement or any other Loan
Document against Holdings, the Borrower or its properties in the courts of any
jurisdiction.

(c) 
Each of Holdings and the Borrower hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any
suit, action or proceeding arising out of or relating to this Agreement or any
other Loan Document in any court referred to in the first sentence of
paragraph (b) of this Section.  Each
of the parties hereto hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

(d) 
Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 9.01.  Nothing in this Agreement or any other Loan
Document will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

SECTION 9.10. 
WAIVER OF JURY TRIAL.  EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN 
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, THE THIRD RESTATEMENT TRANSACTIONS
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT,
TORT OR ANY OTHER THEORY).  EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

SECTION 9.11. 
Headings.  Article and
Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this
Agreement.

SECTION 9.12. 
Confidentiality.  Each of
the Administrative Agent, the Issuing Banks and the Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates’ directors,
officers, employees and agents, including accountants, legal counsel and other

 109
 

advisors (it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority, (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process,
(d) to any other party to this Agreement, (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (f) subject to an agreement containing provisions
substantially the same as those of this Section, to (i) any assignee of or
Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement, (ii) any pledgee referred to
in Section 9.04(d) or (iii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and
its obligations, (g) with the consent of Holdings or the Borrower or
(h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent, any Issuing Bank or any Lender on a
nonconfidential basis from a source other than Holdings or the Borrower.  For the purposes of this Section, “Information”
means all information received from Holdings or the Borrower relating to
Holdings or the Borrower or their business, other than any such information
that is available to the Administrative Agent, any Issuing Bank or any Lender
on a nonconfidential basis prior to disclosure by Holdings or the
Borrower.  Any Person required to
maintain the confidentiality of Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

Each Lender acknowledges that information as defined
in Section 9.12(a) furnished to it pursuant to this agreement may include
material non-public information concerning the Borrower and  its related parties or their respective
securities, and confirms that it has developed compliance procedures regarding
the use of material non-public information and that it will handle such
material non-public information in accordance with those procedures and
applicable law, including federal and state securities laws.

All information, including requests for waivers and
amendments, furnished by the Borrower or the Administrative Agent pursuant to,
or in the course of administering, this agreement will be syndicate-level
information, which may contain material non-public information about the
loan parties and their related parties or their respective securities.  Accordingly, each Lender represents to the
Borrower and the Administrative Agent that it has identified in its administrative
questionnaire a credit contact who may receive information that may contain
material non-public information in accordance with its compliance procedures
and applicable law, including federal and state securities laws.

SECTION 9.13. 
Interest Rate Limitation. 
Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any Loan, together with all fees, charges and other
amounts which are treated as interest on such Loan under applicable law
(collectively the “Charges”), shall exceed the maximum lawful rate (the

 110
 

“Maximum Rate”) which may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of
the operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

SECTION 9.14. 
USA Patriot Act.  Each Lender hereby notifies the
Borrower and Holdings that pursuant to the requirements of the USA Patriot Act
(Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”), it is required to obtain, verify and record information that
identifies the Borrower and Holdings, which information includes the name and
address of the Borrower and Holdings and other information that will allow such
Lender to identify the Borrower and Holdings in accordance with the Act.

SECTION 9.15. 
Effectiveness of Third Restated Credit Agreement.  After the Third Restatement Effective Date,
all obligations of the Borrower under the Second Restated Credit Agreement
shall become obligations of the Borrower hereunder, secured by the Security
Documents, and the provisions of the Second Restated Credit Agreement shall be
superseded by the provisions hereof.

 111Exhibit
10.1

WATTS WATER TECHNOLOGIES, INC.

MANAGEMENT
STOCK PURCHASE PLAN

Amended
and Restated as of January 1, 2005 

I.              INTRODUCTION

The purpose of the Watts Water Technologies,
Inc. Management Stock Purchase Plan (the “Plan”) is to provide equity incentive
compensation to selected management employees of Watts Water Technologies, Inc.
(the “Company”) and its subsidiaries. 
Participants in the Plan may elect to receive restricted stock units (“RSUs”)
in lieu of all or a portion of their annual incentive bonus and, in some
circumstances, make after-tax contributions in exchange for RSUs.  Each RSU represents the right to receive one
share of the Company’s Class A Common Stock (the “Stock”) upon the terms and
conditions stated herein.  RSUs are
granted at a discount of 33% from the fair market value of the Stock on the
Valuation Date (as defined in Subsection IV(B) below).  Vested RSUs will be settled in shares of
Stock after a period of deferral selected by the participant, or upon
termination of employment, if earlier.

The Plan is intended to comply with Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”) and the guidance
promulgated thereunder (“Section 409A”). 
The Plan should be interpreted in a manner to comply with Section
409A.  In addition, this Plan is a “top
hat plan” subject to certain provisions of the Employee Retirement Income
Security Act of 1974.

II.            ADMINISTRATION

The Plan shall be
administered by the Compensation Committee of the Board of Directors of the
Company (the “Committee”).  Each member
of the Committee shall be a “non-employee director” within the meaning of Rule
16b-3 promulgated under the Securities Exchange Act of 1934, as amended (the “Act”).  The Committee shall have complete discretion
and authority with respect to the Plan and its application, except as

expressly limited
herein.  Determinations by the Committee
shall be final and binding on all parties with respect to all matters relating
to the Plan.

	
  III.

  	
  ELIGIBILITY

  

 

Management
employees of the Company and its subsidiaries as designated by the Committee
shall be eligible to participate in the Plan.

IV.           PARTICIPATION

A.            Restricted Stock
Units.  Participation in the Plan
shall be based on the award of RSUs. 
Each RSU awarded to a participant shall be credited to a bookkeeping
account established and maintained for that participant.

B.            Valuation of RSUs;
Fair Market Value of Stock.  The
value of each RSU, for purposes of the Plan, shall be determined as
follows:  The “Cost” of each RSU shall be
equal to 67% of the fair market value of the Stock on the relevant Valuation
Date.  The “Valuation Date” for each year
is the date that is the third business day after the date that the Company
releases its year-end earnings to the public. 
The “Value” of each RSU shall be equal to its Cost plus simple interest
per annum on such amount at the one-year U.S. Treasury Bill rate (as published
in The Wall Street Journal) in effect on the Valuation Date and each
anniversary thereof.  For all purposes of
the Plan, the “fair market value of the Stock” on any given date shall mean the
last reported sale price at which Stock is traded on such date or, if no Stock
is traded on such date, the most recent date on which Stock was traded, as
reflected on the New York Stock Exchange.

C.            Election to
Participate.  Each year, each
participant may elect to receive an award of RSUs under the Plan in lieu of any
bonus payable for a subsequent calendar year by completing a Bonus Deferral and
RSU Subscription Agreement (“Subscription Agreement”).  The Subscription Agreement shall provide that
the participant elects to receive RSUs in lieu of a specified portion of any
annual incentive bonus to be earned in the following calendar year.  Such portion may be expressed as either (1) a
specified percentage of the participant’s actual bonus amount; (2) the lesser
of a specified

 2
 

percentage or a specified
dollar amount of the participant’s actual bonus amount; or (3) a specified
dollar amount up to 100% of the participant’s targeted maximum bonus.  Any dollar amount specified must be at least
$1,000; and any percentage specified must be at least 10% and not more than
100%.  Amounts specified pursuant to
methods (1) and (2) are entirely contingent on the amount of bonus actually awarded.  Where the participant specifies a fixed
dollar amount pursuant to method (3), however, the Subscription Agreement shall
provide that, if the specified dollar amount exceeds the actual bonus amount
awarded, the participant undertakes to pay the excess, in cash or by check, to
the Company within five days after the date the participant receives notice of
the bonus amount.

D.            Deferral Beyond
Vesting Period.  Each Subscription
Agreement shall specify a deferral period, beyond the three-year vesting period,
for the RSUs to which it pertains.  The
deferral period shall be expressed as a number of whole years, not less than
three, beginning on the Valuation Date. 
Subscription Agreements must be received by the Company no later than
December 31 of the year prior to the year in which the bonus amount will be
earned.  Notwithstanding the foregoing,
to the extent that any bonus deferred hereunder constitutes “performance-based
compensation” within the meaning of Section 409A, Subscription Agreements with
respect to such compensation must be received by the Company no later than six
months before the end of the so-called performance period to which such bonus
relates.

E.             Changes to
Deferral Period before December 31, 2005. 
At any time before December 31, 2005, a participant may change the
deferral period specified in a Subscription Agreement that was in effect prior
to December 31, 2005.

F.             Changes to
Deferral Period after January 1, 2006. 
Effective January 1, 2006, a participant may change the deferral period
specified in a Subscription Agreement to extend the deferral period, provided,
however, that any such change must be made at least 12 months before the
original distribution date.  Any such
change shall not become

 3
 

effective for 12 months
after it is made.  In addition, any such
change must extend the deferral period for a minimum of five additional years
from the original distribution date. 
Participants are not permitted to change a deferral to reduce the length
of a deferral period.

G.            Award of RSUs.  On each annual Valuation Date, the Company
shall award RSUs to each participant as follows:  Each participant’s account shall be credited
with a whole number of RSUs determined by dividing the amount (expressed in
dollars) that is determined under his or her Subscription Agreement by the Cost
of each RSU awarded on such date.  No
fractional RSU will be credited and the amount equivalent in value to the
fractional RSU will be paid out to the participant currently in cash.

V.            VESTING
AND SETTLEMENT OF RSUs

A.            Vesting.  A participant shall become vested in the RSUs
that are awarded in a year over a three-year vesting period in which one-third
of the RSUs shall vest on each anniversary of the Valuation Date on which the
RSUs were awarded as long as the participant remains employed by the Company or
a subsidiary on each such anniversary date.

B.            Settlement After
Vesting.  With respect to each vested
RSU, the Company shall issue to the participant one share of Stock within 30
days after the earliest of: (i) the end of the deferral period specified in the
participant’s Subscription Agreement pertaining to such RSU; (ii) the date of
the participant’s termination of employment with the Company and its
subsidiaries; (iii) the date of the participant’s death; or (iv) the date the
participant becomes Disabled (as defined below).

For purposes of this Plan, a participant shall
be “Disabled” if the participant (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months; or (ii) is, by

 4
 

reason
of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months, receiving income replacement benefits for a period
of not less than three months under an accident and health plan covering
employees of the participant’s employer.

C.            Settlement Prior to
Vesting.  If a participant terminates
his/her employment with the Company, the participant’s nonvested RSUs shall be
canceled and he or she shall receive a cash payment equal to the lesser of (a)
the Value of such RSUs or (b) an amount equal to the number of such RSUs
multiplied by the fair market value of the Stock on the date of the participant’s
termination of employment.

D.            Committee’s
Discretion.  The Committee shall have complete discretion
to determine the circumstances of a participant’s termination of employment,
including whether the same is a result of Disability, and the Committee’s
determination shall be final and binding on all parties and not subject to
review or challenge by any participant or other person.  Except as otherwise provided in Subsection
VIII.(C) hereof, in no event may the Committee apply its discretion to
accelerate the time or schedule of any payment made under the Plan.

E.             Waiting
Period Applicable to Officers.  Notwithstanding the provisions of Subsections
V.(B) and V.(C) above, any participant who is a “key employee” within the
meaning of Section 416(i) of the Code (which generally includes any officers of
the Company) may not receive any payment or settlement with respect to his/her
RSUs in connection with his/her termination of employment until the expiration
of a six month waiting period following such termination of employment.  This waiting period does not apply to the
termination of an officer’s employment as a result of the officer’s death or
Disability (as defined in Subsection V.(B) above).

 5
 

VI.           DIVIDEND EQUIVALENT AMOUNTS

Whenever dividends
(other than dividends payable only in shares of Stock) are paid with respect to
Stock, each participant shall be paid an amount in cash equal to the number of
his or her vested RSUs multiplied by the dividend value per share.  In addition, each participant’s account shall
be credited with an amount equal to the number of such participant’s nonvested
RSUs multiplied by the dividend value per share.  Amounts credited with respect to each
nonvested RSU shall be paid, without interest, on the date the participant
becomes vested in such RSU, or when the participant receives payment of his or
her nonvested RSUs pursuant to Subsection V.(C).

VII.         DESIGNATION OF
BENEFICIARY

A participant may
designate one or more beneficiaries to receive payments or shares of Stock in
the event of his/her death.  A
designation of beneficiary may apply to a specified percentage or a participant’s
entire interest in the Plan.  Such
designation, or any change therein, must be in writing and shall be effective
upon receipt by the Company.  If there is
no effective designation of beneficiary, or if no beneficiary survives the
participant, the participant’s estate shall be deemed to be the beneficiary.

VIII.        SHARES ISSUABLE; MAXIMUM
NUMBER OF RSUs; ADJUSTMENTS; CHANGE IN CONTROL

A.            Shares Issuable.  The aggregate maximum number of shares of
Stock reserved and available for issuance under the Plan shall be  1,000,000.  For
purposes of this limitation, the shares of Stock underlying any RSUs that are
canceled shall be added back to the shares of Stock available for issuance
under the Plan.  Shares subject to the
Plan are authorized but unissued shares or shares that were once issued and
subsequently re-acquired by the Company.

B.            Adjustments.  In the event of a stock dividend, stock split
or similar change in capitalization affecting the Stock, the Committee shall
make appropriate adjustments in (i) the number and kind of shares of Stock or
securities with respect to which RSUs shall thereafter be granted, (ii) the
number and kind of shares remaining

 6
 

subject to outstanding
RSUs; (iii) the number of RSUs credited to each participant’s account; and (iv)
the method of determining the value of RSUs.

C.            Change in Control.  In the event of any proposed merger,
consolidation, sale, dissolution or liquidation of the Company, all non-vested
RSUs shall become fully vested upon the effective date of such merger,
consolidation, sale, dissolution or liquidation and the Committee in its sole
discretion may, as to any outstanding RSUs, make such substitution or
adjustment in the aggregate number of shares reserved for issuance under the
Plan and the number of shares subject to such RSUs as it may determine on an
equitable basis and as may be permitted by the terms of such transaction, or
terminate such RSUs upon such terms and conditions as it shall provide.  In the event that any such merger,
consolidation, sale, dissolution or liquidation of the Company constitutes a “change
in control event” for purposes of Section 409A, the Committee may terminate the
Plan and make payment with respect to each RSU (taking into account any
adjustment provided for herein), provided that such payment is made within 12
months of such change in control event.

IX.           AMENDMENT
OR TERMINATION OF PLAN

The Company
reserves the right to amend or terminate the Plan at any time, by action of its
Board of Directors, provided that no such action shall adversely affect a
participant’s rights under the Plan with respect to RSUs awarded and vested
before the date of such action, and provided, further, that Plan amendments
shall be subject to approval by the Company’s shareholders to the extent
required by the Act to ensure that awards are exempt under Rule 16b-3 promulgated
under the Act or as otherwise required by applicable law, including the
relevant listing requirements of the New York Stock Exchange.

X.            MISCELLANEOUS
PROVISIONS

A.            No Distribution;
Compliance with Legal Requirements. 
The Committee may require each person acquiring shares of Stock under
the Plan to represent to and

 7
 

agree with the Company in
writing that such person is acquiring the shares without a view to distribution
thereof.  No shares of Stock shall be
issued until all applicable securities laws and other legal and stock exchange
requirements have been satisfied.  The
Committee may require the placing of such stop-orders and restrictive
legends on certificates for Stock as it deems appropriate.

B.            Withholding.  Participation in the Plan is subject to any
required tax withholding on wages or other income of the participant in
connection with the Plan.  Each
participant agrees, by entering the Plan, that the Company shall have the right
to deduct any such taxes, in its sole discretion, from any amount payable to
the participant under the Plan or from any payment of any kind otherwise due to
the participant.  Participants who wish
to avoid the withholding of shares of Stock otherwise issuable to them under the
Plan should arrange with the Company to pay the amount of taxes required to be
withheld in advance of the settlement date.

C.            Notices; Delivery
of Stock Certificates.  Any notice
required or permitted to be given by the Company or the Committee pursuant to
the Plan shall be deemed given when personally delivered or deposited in the
United States mail, registered or certified, postage prepaid, addressed to the
participant at the last address shown for the participant on the records of the
Company.  Delivery of stock certificates
to persons entitled to receive them under the Plan shall be deemed effected for
all purposes when the Company or a share transfer agent of the Company shall
have deposited such certificates in the United States mail, addressed to such
person at his/her last known address on file with the Company.

D.            Nontransferability
of Rights.  During a participant’s
lifetime, any payment or issuance of shares under the Plan shall be made only
to him/her.  No RSU or other interest
under the Plan shall be subject in any manner to anticipation, alienation,
sale, transfer, assignment, pledge, encumbrance or charge, and any attempt by a
participant or any beneficiary under the Plan to do so shall be void.  No interest under the Plan shall in

 8
 

any manner be liable for
or subject to the debts, contracts, liabilities, engagements or torts of a
participant or beneficiary entitled thereto.

E.             Company’s
Obligations to Be Unfunded and Unsecured. 
The Plan shall at all times be entirely unfunded, and no provision shall
at any time be made with respect to segregating assets of the Company
(including Stock) for payment of any amounts or issuance of any shares of Stock
hereunder.  No participant or other
person shall have any interest in any particular assets of the Company
(including Stock) by reason of the right to receive payment under the Plan, and
any participant or other person shall have only the rights of a general
unsecured creditor of the Company with respect to any rights under the Plan.

F.             Governing Law.  The terms of the Plan shall be governed,
construed, administered and regulated in accordance with the laws of the
Commonwealth of Massachusetts.  In the
event any provision of this Plan shall be determined to be illegal or invalid
for any reason, the other provisions shall continue in full force and effect as
if such illegal or invalid provision had never been included herein.

G.            Effective Date of
Plan.  The Plan became effective as
of October 17, 1995, upon approval by the holders of a majority of the shares
of the Company’s Class A Common Stock and Class B Common Stock,
voting as a single class, present or represented and entitled to vote at a
meeting of the shareholders.

 9
 

WATTS
WATER TECHNOLOGIES, INC.

AMENDMENT NO. 1

TO

WATTS WATER TECHNOLOGIES, INC.

MANAGEMENT STOCK PURCHASE PLAN

AMENDED AND
RESTATED AS OF JANUARY 1, 2005

The Management
Stock Purchase Plan of Watts Water Technologies, Inc. as amended and restated
as of January 1, 2005 (the “Plan”) is hereby amended as follows:

1.             Subsection VIII.A of
the Plan is deleted and replaced with the following:

“A.          Shares Issuable.  The aggregate maximum number of shares of
Stock reserved and available for issuance under the Plan shall be  2,000,000.  For
purposes of this limitation, the shares of Stock underlying any RSUs that are
canceled shall be added back to the shares of Stock available for issuance
under the Plan.  Shares subject to the
Plan are authorized but unissued shares or shares that were once issued and
subsequently re-acquired by the Company.”

2.             Except as amended
hereby, the Plan remains in full force and effect.

Adopted by the Board of
Directors on February 6, 2007

Approved by the
Stockholders on May 2, 2007

 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]