Document:

<PAGE>

                                                                  EXECUTION COPY

                    $225,000,000.00 REVOLVING CREDIT FACILITY

                                CREDIT AGREEMENT

                                  by and among

                             P.H. GLATFELTER COMPANY

                                       and

                    Certain of its Subsidiaries, as Borrowers

                                       and

                       THE BANKS PARTY HERETO, as Lenders

                                       and

             PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent

                                      with

           PNC CAPITAL MARKETS LLC and CITIZENS BANK OF PENNSYLVANIA,

                  as Joint Lead Arrangers and Joint Bookrunners

                                       and

               CITIZENS BANK OF PENNSYLVANIA, as Syndication Agent

                           Dated as of April 29, 2010

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>                                                                         <C>
1.  CERTAIN DEFINITIONS..................................................      1
    1.1   Certain Definitions............................................      1
    1.2   Construction...................................................     28
          1.2.1   Number; Inclusion......................................     28
          1.2.2   Determination..........................................     28
          1.2.3   Administrative Agent's Discretion and Consent..........     28
          1.2.4   Documents Taken as a Whole.............................     28
          1.2.5   Headings...............................................     29
          1.2.6   Implied References to this Agreement...................     29
          1.2.7   Persons................................................     29
          1.2.8   Modifications to Documents.............................     29
          1.2.9   From, To and Through...................................     29
          1.2.10  Shall; Will............................................     29
          1.2.11  Quebec Matters.........................................     29
    1.3   Accounting Principles..........................................     30
2.  REVOLVING CREDIT AND SWING LOAN FACILITIES...........................     31
    2.1   Revolving Credit Commitments...................................     31
          2.1.1   Revolving Credit Loans.................................     31
          2.1.2   Swing Loan Commitment..................................     33
    2.2   Nature of Lenders' Obligations with Respect to Revolving Credit
          Loans..........................................................     33
    2.3   Commitment Fees................................................     33
    2.4   Revolving Credit Loan Requests.................................     34
          2.4.1   Revolving Credit Loan Requests.........................     34
          2.4.2   Swing Loan Requests....................................     34
    2.5   Making Revolving Credit Loans and Swing Loans; Revolving Credit
          Notes and Swing Notes..........................................     35
          2.5.1   Making Revolving Credit Loans..........................     35
          2.5.2   Making Swing Loans.....................................     35
    2.6   Revolving Credit Notes.........................................     35
    2.7   Swing Loan Note................................................     35
    2.8   Borrowings to Repay Swing Loans................................     36
    2.9   Utilization of Commitments in Optional Currencies..............     36
          2.9.1   Periodic Computations of Dollar Equivalent Amounts of
                  Revolving Credit Loans and Letters of Credit
                  Outstanding............................................     36
          2.9.2   Notices From Lenders That Optional Currencies Are
                  Unavailable to Fund New Loans..........................     36
          2.9.3   Notices From Lenders That Optional Currencies Are
                  Unavailable to Fund Renewals of the Euro-Rate Option...     37
          2.9.4   European Monetary Union................................     37
</TABLE>

                                       -i-

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>                                                                         <C>
          2.9.5   Requests for Additional Optional Currencies............     38
    2.10  Use of Proceeds................................................     38
    2.11  Letter of Credit Subfacility...................................     38
          2.11.1  Issuance of Letters of Credit..........................     38
          2.11.2  Letter of Credit Fees..................................     39
          2.11.3  Disbursements, Reimbursement...........................     39
          2.11.4  Repayment of Participation Advances....................     41
          2.11.5  Documentation..........................................     41
          2.11.6  Determinations to Honor Drawing Requests...............     42
          2.11.7  Nature of Participation and Reimbursement Obligations..     42
          2.11.8  Indemnity..............................................     44
          2.11.9  Liability for Acts and Omissions.......................     44
    2.12  Currency Repayments............................................     46
    2.13  Optional Currency Amounts......................................     46
    2.14  Reduction of Commitment........................................     46
3.  INTEREST RATES.......................................................     47
    3.1   Interest Rate Options..........................................     47
          3.1.1   Interest Rate Options..................................     47
          3.1.2   Rate Quotations........................................     47
    3.2   Interest Periods...............................................     48
          3.2.1   Amount of Borrowing Tranche............................     48
          3.2.2   Renewals...............................................     48
    3.3   Interest After Default.........................................     48
          3.3.1   Letter of Credit Fees, Interest Rate...................     48
          3.3.2   Other Obligations......................................     48
          3.3.3   Acknowledgment.........................................     48
    3.4   Euro-Rate Unascertainable; Illegality; Increased Costs;
          Deposits Not Available.........................................     49
          3.4.1   Unascertainable........................................     49
          3.4.2   Illegality; Increased Costs; Deposits Not Available....     49
          3.4.3   Administrative Agent's and Lender's Rights.............     49
    3.5   Selection of Interest Rate Options.............................     50
    3.6   Canadian Interest Act Disclosure...............................     50
    3.7   Canadian Usury Provision.......................................     50
4.  PAYMENTS.............................................................     51
    4.1   Payments.......................................................     51
    4.2   Pro Rata Treatment of Lenders..................................     52
    4.3   Interest Payment Dates.........................................     52
    4.4   Voluntary Prepayments..........................................     52
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>                                                                         <C>
          4.4.1   Right to Prepay........................................     52
          4.4.2   Replacement of a Lender................................     53
          4.4.3   Change of Lending Office...............................     54
    4.5   Mandatory Prepayments..........................................     54
          4.5.1   Currency Fluctuations..................................     54
          4.5.2   Application Among Interest Rate Options................     55
    4.6   Additional Compensation in Certain Circumstances...............     55
          4.6.1   Increased Costs or Reduced Return Resulting from Taxes,
                  Reserves, Capital Adequacy Requirements, Expenses,
                  Etc....................................................     55
          4.6.2   Indemnity..............................................     56
    4.7   Interbank Market Presumption...................................     56
    4.8   Taxes..........................................................     57
          4.8.1   No Deductions..........................................     57
          4.8.2   Stamp Taxes............................................     57
          4.8.3   Indemnification for Taxes Paid by a Lender.............     57
          4.8.4   Certificate............................................     57
          4.8.5   Exclusions, etc........................................     58
          4.8.6   Change of Lending Office, etc..........................     58
          4.8.7   Survival...............................................     58
    4.9   Judgment Currency..............................................     58
          4.9.1   Currency Conversion Procedures for Judgments...........     58
          4.9.2   Indemnity in Certain Events............................     59
    4.10  Notes..........................................................     59
    4.11  Settlement Date Procedures.....................................     59
    4.12  Borrowers' Agent...............................................     60
5.  REPRESENTATIONS AND WARRANTIES.......................................     60
    5.1   Representations and Warranties.................................     60
          5.1.1   Organization and Qualification.........................     60
          5.1.2   Subsidiaries...........................................     60
          5.1.3   Power and Authority....................................     61
          5.1.4   Validity and Binding Effect............................     61
          5.1.5   No Conflict............................................     61
          5.1.6   Litigation.............................................     62
          5.1.7   Title to Properties....................................     62
          5.1.8   Financial Statements...................................     62
          5.1.9   Use of Proceeds; Margin Stock..........................     63
          5.1.10  Full Disclosure........................................     63
          5.1.11  Taxes..................................................     63
          5.1.12  Consents and Approvals.................................     64
          5.1.13  No Event of Default; Compliance with Instruments.......     64
</TABLE>

                                      -iii-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>                                                                         <C>
          5.1.14  Patents, Trademarks, Copyrights, Licenses, Etc.........     64
          5.1.15  Insurance..............................................     64
          5.1.16  Compliance with Laws...................................     65
          5.1.17  Material Contracts; Burdensome Restrictions............     65
          5.1.18  Investment Companies; Regulated Entities...............     65
          5.1.19  Plans and Benefit Arrangements.........................     65
          5.1.20  Employment Matters.....................................     66
          5.1.21  Environmental Matters..................................     67
          5.1.22  Senior Debt Status.....................................     68
          5.1.23  Anti-Terrorism Laws....................................     68
    5.2   Continuation of Representations................................     70
    5.3   Updates to Schedules...........................................     70
6.  CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT..............     70
    6.1   First Loans and Letters of Credit..............................     70
          6.1.1   Officer's Certificate..................................     70
          6.1.2   Secretary's Certificate................................     71
          6.1.3   Delivery of Loan Documents.............................     71
          6.1.4   Opinion of Counsel.....................................     71
          6.1.5   Legal Details..........................................     72
          6.1.6   Payment of Fees........................................     72
          6.1.7   Consents...............................................     72
          6.1.8   Officer's Certificate Regarding MACs...................     72
          6.1.9   No Violation of Laws...................................     72
          6.1.10  No Actions or Proceedings; No Material Litigation......     72
          6.1.11  Other Requirements.....................................     73
    6.2   Each Additional Loan or Letter of Credit.......................     73
    6.3   Loans to Fund Acquisitions.....................................     73
7.  COVENANTS............................................................     73
    7.1   Affirmative Covenants..........................................     73
          7.1.1   Preservation of Existence, Etc.........................     73
          7.1.2   Payment of Liabilities, Including Taxes, Etc...........     74
          7.1.3   Maintenance of Insurance...............................     74
          7.1.4   Maintenance of Properties and Leases...................     74
          7.1.5   Maintenance of Patents, Trademarks, Etc................     74
          7.1.6   Visitation Rights......................................     75
          7.1.7   Keeping of Records and Books of Account................     75
          7.1.8   Plans and Benefit Arrangements.........................     75
          7.1.9   Compliance with Laws...................................     75
          7.1.10  Joinder of Guarantors and Borrowers....................     76
</TABLE>

                                      -iv-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>                                                                         <C>
          7.1.11  Anti-Terrorism Laws....................................     76
          7.1.12  German and English Borrowers...........................     77
    7.2   Negative Covenants.............................................     78
          7.2.1   Indebtedness...........................................     78
          7.2.2   Liens..................................................     80
          7.2.3   Guaranties.............................................     80
          7.2.4   Loans and Investments..................................     80
          7.2.5   Dividends and Related Distributions....................     82
          7.2.6   Liquidations, Mergers, Consolidations, Acquisitions....     82
          7.2.7   Dispositions of Assets or Subsidiaries.................     84
          7.2.8   Affiliate Transactions.................................     85
          7.2.9   Subsidiaries...........................................     85
          7.2.10  Continuation of or Change in Business..................     86
          7.2.11  Plans and Benefit Arrangements.........................     86
          7.2.12  Fiscal Year............................................     86
          7.2.13  Issuance of Stock......................................     86
          7.2.14  Changes in Organizational Documents....................     86
          7.2.15  Maximum Leverage Ratio.................................     87
          7.2.16  Minimum Interest Coverage Ratio........................     87
          7.2.17  Receivables Entities and Timberland Note Monetization
                  Entities...............................................     87
    7.3   Reporting Requirements.........................................     88
          7.3.1   Quarterly Financial Statements.........................     88
          7.3.2   Annual Financial Statements............................     88
          7.3.3   Certificate of the Borrower............................     89
          7.3.4   Notice of Default......................................     89
          7.3.5   Notice of Litigation...................................     89
          7.3.6   Notice of Change in Debt Rating........................     89
          7.3.7   Certain Events.........................................     90
          7.3.8   Budgets, Forecasts, Other Reports and Information......     90
          7.3.9   Notices Regarding Plans and Benefit Arrangements.......     91
8.  DEFAULT..............................................................     92
    8.1   Events of Default..............................................     92
          8.1.1   Payments Under Loan Documents..........................     92
          8.1.2   Breach of Warranty.....................................     92
          8.1.3   Breach of Negative Covenants and Certain Affirmative
                  Covenants..............................................     92
          8.1.4   Breach of Other Covenants..............................     93
          8.1.5   Defaults in Other Agreements or Indebtedness...........     93
          8.1.6   Final Judgments or Orders..............................     93
          8.1.7   Loan Document Unenforceable............................     93
</TABLE>

                                       -v-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>                                                                         <C>
          8.1.8   Proceedings Against Assets.............................     93
          8.1.9   Notice of Lien or Assessment...........................     94
          8.1.10  Insolvency.............................................     94
          8.1.11  Events Relating to Plans and Benefit Arrangements......     94
          8.1.12  Cessation of Business..................................     94
          8.1.13  Change of Control......................................     95
          8.1.14  Involuntary Proceedings................................     95
          8.1.15  Voluntary Proceedings..................................     95
    8.2   Consequences of Event of Default...............................     96
          8.2.1   Events of Default Other Than Bankruptcy, Insolvency or
                  Reorganization Proceedings.............................     96
          8.2.2   Bankruptcy, Insolvency or Reorganization Proceedings...     96
          8.2.3   Set-off................................................     96
          8.2.4   Suits, Actions, Proceedings............................     97
          8.2.5   Application of Proceeds................................     97
9.  THE AGENT............................................................     98
    9.1   Appointment....................................................     98
    9.2   Delegation of Duties...........................................     98
    9.3   Nature of Duties; Independent Credit Investigation.............     98
    9.4   Actions in Discretion of Administrative Agent; Instructions
          From the Lenders...............................................     99
    9.5   Reimbursement and Indemnification of Administrative Agent by
          the Borrower...................................................     99
    9.6   Exculpatory Provisions; Limitation of Liability................    100
    9.7   Reimbursement and Indemnification of Administrative Agent by
          Lenders........................................................    101
    9.8   Reliance by Administrative Agent...............................    101
    9.9   Notice of Default..............................................    102
    9.10  Notices........................................................    102
    9.11  Lenders in Their Individual Capacities; Administrative Agent in
          its Individual Capacity........................................    102
    9.12  Holders of Notes...............................................    102
    9.13  Sharing of Payments............................................    103
    9.14  Successor Administrative Agent.................................    103
    9.15  Administrative Agent's Fee.....................................    104
    9.16  Availability of Funds..........................................    104
    9.17  Calculations...................................................    104
    9.18  No Reliance on Administrative Agent's Customer Identification
          Program........................................................    105
    9.19  Beneficiaries..................................................    105
</TABLE>

                                      -vi-

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                     Page
-------                                                                     ----
<S>                                                                         <C>
10. MISCELLANEOUS........................................................    105
    10.1  Modifications, Amendments or Waivers...........................    105
          10.1.1  Increase of Commitment.................................    105
          10.1.2  Extension of Payment; Reduction of Principal Interest
                  or Fees................................................    106
          10.1.3  Release a Guarantor....................................    106
          10.1.4  Miscellaneous..........................................    106
    10.2  No Implied Waivers; Cumulative Remedies; Writing Required......    106
    10.3  Reimbursement and Indemnification of Lenders by the Borrower...    107
    10.4  Holidays.......................................................    107
    10.5  Funding by Branch, Subsidiary or Affiliate.....................    108
          10.5.1  Notional Funding.......................................    108
          10.5.2  Actual Funding.........................................    108
    10.6  Notices; Lending Offices.......................................    108
    10.7  Severability...................................................    109
    10.8  Governing Law..................................................    110
    10.9  Prior Understanding............................................    110
    10.10 Duration; Survival.............................................    110
    10.11 Successors and Assigns.........................................    110
    10.12 Confidentiality................................................    112
          10.12.1 General................................................    112
          10.12.2 Sharing Information With Affiliates of the Lenders.....    112
    10.13 Counterparts...................................................    113
    10.14 Administrative Agent's or Lender's Consent.....................    113
    10.15 Exceptions.....................................................    113
    10.16 CONSENT TO FORUM; WAIVER OF JURY TRIAL.........................    113
    10.17 Certifications From Lenders and Participants...................    114
          10.17.1 Tax Withholding........................................    114
          10.17.2 USA Patriot Act........................................    115
    10.18 Nature of Foreign Borrower Obligations.........................    115
    10.19 Pledge of Foreign Loan Party Loans.............................    116
</TABLE>

                                      -vii-

<PAGE>

                         LIST OF SCHEDULES AND EXHIBITS

SCHEDULES
SCHEDULE 1.1(A)   - PRICING GRID
SCHEDULE 1.1(B)   - COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES
SCHEDULE 1.1(E)   - EXISTING LETTERS OF CREDIT
SCHEDULE 1.1(M)   - MATERIAL SUBSIDIARIES
SCHEDULE 1.1(P)   - PERMITTED LIENS
SCHEDULE 5.1.1    - DOMESTIC QUALIFICATIONS TO DO BUSINESS
SCHEDULE 5.1.2    - SUBSIDIARIES
SCHEDULE 5.1.6    - LITIGATION
SCHEDULE 5.1.12   - CONSENTS AND APPROVALS
SCHEDULE 5.1.14   - PATENTS, TRADEMARKS, COPYRIGHTS, LICENSES, ETC.
SCHEDULE 7.2.1    - PERMITTED INDEBTEDNESS
SCHEDULE 7.2.4    - EXISTING INVESTMENTS

EXHIBITS
EXHIBIT 1.1(A)    - ASSIGNMENT AND ASSUMPTION AGREEMENT
EXHIBIT 1.1(B)    - BORROWER JOINDER
EXHIBIT 1.1(G)(1) - GUARANTOR JOINDER
EXHIBIT 1.1(G)(2) - GUARANTY AGREEMENT
EXHIBIT 1.1(R)    - REVOLVING CREDIT NOTE
EXHIBIT 1.1(S)    - SWING LOAN NOTE
EXHIBIT 2.4       - LOAN REQUEST
EXHIBIT 6.1.4     - OPINION OF COUNSEL
EXHIBIT 7.2.6     - ACQUISITION COMPLIANCE CERTIFICATE
EXHIBIT 7.3.3     - QUARTERLY COMPLIANCE CERTIFICATE

                                     -viii-

<PAGE>

                                CREDIT AGREEMENT

     THIS CREDIT AGREEMENT is dated as of April 29, 2010, and is made by and
among P.H. GLATFELTER COMPANY, a Pennsylvania corporation ( the "COMPANY") and
certain of its subsidiaries identified on the signature pages hereto (each a
"BORROWER" and collectively, the "BORROWERS"), each of the GUARANTORS (as
hereinafter defined), the LENDERS (as hereinafter defined), PNC BANK, NATIONAL
ASSOCIATION, in its capacity as agent for the Lenders under this Agreement
(hereinafter referred to in such capacity as the "ADMINISTRATIVE AGENT"), and,
for the limited purpose of public identification in trade tables, PNC CAPITAL
MARKETS LLC and CITIZENS BANK OF PENNSYLVANIA, as joint arrangers and joint
bookrunners, and CITIZENS BANK OF PENNSYLVANIA, as syndication agent.

                                   WITNESSETH:

     WHEREAS, the Borrowers have requested the Lenders to provide a revolving
credit facility to the Borrowers in an aggregate principal amount not to exceed
$225,000,000; and

     WHEREAS, proceeds of the revolving credit facility shall be used for (1)
refinancing existing Indebtedness, and (2) general corporate purposes; and

     WHEREAS, the Lenders are willing to provide such credit upon the terms and
conditions hereinafter set forth;

     NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound
hereby, covenant and agree as follows:

                             1. CERTAIN DEFINITIONS

          1.1 CERTAIN DEFINITIONS.

          In addition to words and terms defined elsewhere in this Agreement,
the following words and terms shall have the following meanings, respectively,
unless the context hereof clearly requires otherwise:

               2006 SENIOR NOTES shall mean the Company's 7 ?% senior notes,
issued in 2006 and due May 1, 2016, in the aggregate principal amount of
$200,000,000, guarantied by certain of the Loan Parties.

               2010 SENIOR NOTES shall mean the Company's 7 ?% senior notes,
issued in 2010 and due May 1, 2016, in the aggregate principal amount of
$100,000,000, guarantied by certain of the Loan Parties.

               ACCOUNTS RECEIVABLE FACILITY DOCUMENTS means all documentation
entered into by the Company and its Subsidiaries, including, without limitation,
the Receivables Entity, in connection with the sale or other transfer of
accounts receivable and other related assets pursuant to a Permitted Accounts
Receivable Program, as such documentation may be

<PAGE>

amended, restated, supplemented or otherwise modified from time to time in
accordance with the terms hereof and thereof.

               ADMINISTRATIVE AGENT shall have the meaning given to such term in
the introductory paragraph hereof.

               ADMINISTRATIVE AGENT'S FEE shall have the meaning assigned to
that term in Section 9.15.

               ADMINISTRATIVE AGENT'S LETTER shall have the meaning assigned to
that term in Section 9.15.

               AFFILIATE as to any Person shall mean any other Person (i) which,
directly or indirectly controls, is controlled by, or is under common control
with such Person. For purposes of this definition, "control" (including, with
correlative meanings, the term "controlled by" and "under common control with")
shall mean the power, directly or indirectly, either to (a) vote 10% or more of
the securities having ordinary voting power for the election of directors of
such Person or (b) direct or cause the direction of the management and policies
of such Person whether through the ownership of voting securities or by contract
or otherwise, including the power to elect a majority of the directors of a
corporation.

               AGREEMENT shall mean this Credit Agreement, as the same may be
extended, renewed, amended, supplemented or restated from time to time,
including all schedules and exhibits.

               ANTI-TERRORISM LAWS shall mean any Laws relating to terrorism or
money laundering, including Executive Order No. 13224, the USA Patriot Act, the
Laws comprising or implementing the Bank Secrecy Act, and the Laws administered
by the United States Treasury Department's Office of Foreign Asset Control (as
any of the foregoing Laws may from time to time be amended, renewed, extended,
or replaced).

               APPLICABLE COMMITMENT FEE RATE shall mean the percentage rate per
annum at the indicated level of Debt Rating in the pricing grid on SCHEDULE
1.1(A) next to the line titled "Commitment Fee." The Applicable Commitment Fee
Rate shall be computed in accordance with the parameters set forth on SCHEDULE
1.1(A).

               APPLICABLE MARGIN shall mean the percentage spread to be added to
Euro-Rate under the Euro-Rate Option or to the Base Rate under the Base Rate
Option at the indicated level of Debt Rating in the pricing grid on SCHEDULE
1.1(A) next to the line titled "Euro-Rate Spread" or "Base Rate Spread." The
Applicable Margin shall be computed in accordance with the parameters set forth
on SCHEDULE 1.1(A).

               ASSIGNMENT AND ASSUMPTION AGREEMENT shall mean an Assignment and
Assumption Agreement by and among a Purchasing Lender, a Transferor Lender and
the Administrative Agent, as Administrative Agent and on behalf of the remaining
Lenders, substantially in the form of EXHIBIT 1.1(A).

                                       2

<PAGE>

               AUGMENTING LENDER shall have the meaning assigned to such term in
Section 2.1.1.2.

               AUTHORIZED OFFICER shall mean those individuals, designated by
written notice to the Administrative Agent from the Company, on behalf of all
the Loan Parties, authorized to execute notices, reports and other documents on
behalf of the Loan Parties required hereunder. The Company, on behalf of all the
Loan Parties, may amend such list of individuals from time to time by giving
written notice of such amendment to the Administrative Agent.

               BASE RATE shall mean the greater of (i) the interest rate per
annum announced from time to time by the Administrative Agent at its Principal
Office as its then prime rate, which rate may not be the lowest rate then being
charged to commercial borrowers by the Administrative Agent, (ii) the Federal
Funds Open Rate plus 0.5% per annum, or (iii) the Daily Euro-Rate plus 1.00% per
annum.

               BASE RATE OPTION shall mean the option of the Borrowers to have
Loans bear interest at the rate and under the terms and conditions set forth in
Section 3.1.1(i).

               BENEFIT ARRANGEMENT shall mean at any time an "employee benefit
plan," within the meaning of Section 3(3) of ERISA, which is neither a Plan nor
a Multiemployer Plan and which is maintained, sponsored or otherwise contributed
to by any member of the ERISA Group.

               BLOCKED PERSON shall have the meaning assigned to such term in
Section 5.1.23.2.

               BORROWER shall have the meaning given to such term in the
introductory paragraph hereto and shall include any Person required to join this
Agreement pursuant to Section 7.2.9 or which elects to join this agreement as a
Borrower and, in each case, executes a Borrower Joinder.

               BORROWER JOINDER shall mean a joinder by a Person as a Borrower
under this Agreement and the other Loan Documents in substantially the form of
EXHIBIT 1.1(B).

               BORROWING DATE shall mean, with respect to any Loan, the date for
the making thereof or the renewal or conversion thereof at the same or a
different Interest Rate Option, which shall be a Business Day.

               BORROWING TRANCHE shall mean specified portions of Loans
outstanding as follows: (i) any Loans to which a Euro-Rate Option applies which
become subject to the same Interest Rate Option under the same Loan Request by
the Borrowers and which have the same Interest Period and which are denominated
either in Dollars or in the same Optional Currency shall constitute one
Borrowing Tranche, and (ii) all Loans to which a Base Rate Option applies shall
constitute one Borrowing Tranche.

                                       3
<PAGE>

               BUSINESS DAY shall mean any day other than a Saturday or Sunday
or a legal holiday on which commercial banks are authorized or required to be
closed for business in Pittsburgh, Pennsylvania and (i) if the applicable
Business Day relates to any Loan to which the Euro-Rate Option applies, such day
must also be a day on which dealings are carried on in the Relevant Interbank
Market, (ii) with respect to advances or payments of Loans or any other matters
relating to Loans denominated in an Optional Currency, such day also shall be a
day on which dealings in deposits in the relevant Optional Currency are carried
on in the Relevant Interbank Market, and (iii) with respect to advances or
payments of Loans denominated in an Optional Currency other than the Euro, such
day shall also be a day on which all applicable banks into which Loan proceeds
may be deposited are open for business and foreign exchange markets are open for
business in the principal financial center of the country of such currency and
in respect of Loans denominated in Euro shall be a TARGET Day.

               CANADIAN BORROWER shall mean any Borrower incorporated or
otherwise organized under the laws of Canada or any province or territory
thereof.

               CIP REGULATIONS shall have the meaning assigned to that term in
Section 9.18.

               CLOSING DATE shall mean the Business Day on which the first Loan
shall be made, which shall be April ___, 2010 or, if all the conditions
specified in Section 6 have not been satisfied or waived by such date, not later
than April 30, 2010, as designated by the Company, on behalf of all Loan
Parties, by at least five (5) Business Days' advance notice to the
Administrative Agent at its Principal Office, or such other date as the parties
agree. The closing shall take place at 10 a.m., Pittsburgh time, on the Closing
Date at the offices of Buchanan Ingersoll & Rooney PC, Princeton, New Jersey, or
at such other time and place as the parties agree.

               COMMERCIAL LETTER OF CREDIT shall mean any letter of credit which
is a commercial letter of credit issued in respect of the purchase of goods or
services by one or more of the Loan Parties in the ordinary course of their
business.

               COMMITMENT shall mean as to any Lender the aggregate of its
Revolving Credit Commitment and, in the case of PNC Bank, its Swing Loan
Commitment, and Commitments shall mean collectively, the Revolving Credit
Commitments of all the Lenders and the Swing Loan Commitment of PNC Bank.

               COMMITMENT FEE shall have the meaning assigned to that term in
Section 2.3.

               COMMITMENT INCREASE AMOUNT shall have the meaning assigned to
that term in Section 2.1.1.2.

               COMPANY shall have the meaning given to such term in the
introductory paragraph hereto.

                                       4

<PAGE>

               COMPLIANCE CERTIFICATE shall have the meaning assigned to such
term in Section 7.3.3.

               COMPUTATION DATE shall have the meaning assigned to such term in
Section 2.9.1.

               CONCERT ACQUISITION shall mean the acquisition by the Company of
Glatfelter Falkenhagen GmbH (f/k/a Concert GmbH), Glatfelter Falkenhagen Holding
GmbH (f/k/a Concert Europe GmbH), and Glatfelter Gatineau Ltee (f/k/a Concert
Airlaid Ltd.) pursuant to the Share Purchase Agreement, dated as of January 4,
2010, among Brookfield Special Situations Management Limited (f/k/a Tricap
Management Limited), the Company and Glatfelter Canada Inc.

               CONSIDERATION shall mean with respect to any Permitted
Acquisition, the aggregate of (i) any cash paid by any of the Loan Parties,
directly or indirectly, to the seller in connection therewith, (ii) the
Indebtedness incurred or assumed by any of the Loan Parties, whether in favor of
the seller or otherwise and whether fixed or contingent, including without
limitation any Guaranty given or incurred by any Loan Party in connection
therewith, and (iii) any other consideration given or obligation incurred by any
of the Loan Parties in connection therewith.

               CONSOLIDATED ADJUSTED EBITDA shall mean, for any period,
Consolidated EBITDA adjusted to include (without duplication) the pro forma
effects of acquisitions and divestitures (not including timberland property
sales) made during such period, excluding the EBITDA of divested Persons, but
including historical EBITDA of acquired Persons to the extent the acquired
EBITDA (i) has been audited by a nationally recognized independent certified
public accountant, or another independent certified public accountant reasonably
satisfactory to the Administrative Agent, (ii) is supported by a third party due
diligence report delivered by a nationally recognized firm or otherwise in form
and substance satisfactory to the Administrative Agent, (iii) is less than 15%
of Consolidated EBITDA as determined as of the last day of the fiscal quarter
immediately preceding the consummation of the acquisition (the "MOST RECENT
QUARTER") (or the quarter immediately preceding the Most Recent Quarter if the
applicable financial statements are not available for the Most Recent Quarter),
or (iv) is approved by the Required Lenders. Any such adjustment to Consolidated
EBITDA shall be made for four (4) fiscal quarters, starting with the fiscal
quarter in which the transaction giving rise to such adjustment was consummated;
provided that historical EBITDA of Persons acquired in connection with the
Concert Acquisition shall be in the aggregate amount of $25,000,000.00,
allocated $6,250,000.00 per fiscal quarter of the Company and its Subsidiaries,
for four (4) fiscal quarters, starting with the fiscal quarter in which the
Concert Acquisition was consummated.

               CONSOLIDATED EBITDA shall mean as of the end of any fiscal
quarter: (i) EBITDA of the Company and its Subsidiaries on a consolidated basis
for the immediately preceding four fiscal quarters, plus (without duplication)
(ii) the aggregate gain on sale of timberland properties, as determined in
accordance with GAAP, made within the four

                                       5

<PAGE>

immediately preceding fiscal quarters, net of any losses on such sales, provided
that the amount of the net gain on sale of timberland properties included in the
calculation of Consolidated EBITDA under this clause (ii) may not exceed 30% of
the Consolidated EBITDA of the Company and its Subsidiaries for the immediately
preceding four fiscal quarters (prior to including any gains from the sale of
timberland properties), provided, further, that Consolidated EBITDA shall
exclude non-recurring third party transaction costs relating to a Permitted
Acquisition such as (x) legal expenses, third party due diligence costs,
transaction advisory services, hedging costs and financing fees, if applicable,
for the fiscal quarters during which the transactions giving rise to such
non-recurring costs are consummated and (y) third party project management and
integration management costs in an aggregate amount up to $5,000,000 incurred
within one year of consummation of the transactions giving rise to such
non-recurring costs, for the fiscal quarters during which such costs are
incurred. The Company shall provide supporting invoices for the exclusions from
Consolidated EBITDA described in the preceding clauses (x) and (y) upon request
by the Administrative Agent.

               CONSOLIDATED TOTAL ASSETS shall mean, at any time, the total
consolidated assets of the Company and its Subsidiaries measured as of the last
day of the fiscal year ending on or prior to the date of determination, as
determined in accordance with GAAP.

               CONSOLIDATED TOTAL DEBT shall mean all long and short term
Indebtedness (but excluding Permitted Timberland Indebtedness and Permitted
Additional Timberland Indebtedness to the extent such Indebtedness is structured
similarly to Permitted Timberland Indebtedness as structured as of the Closing
Date).

               CONSOLIDATED TOTAL NET DEBT shall mean Consolidated Total Debt
less U.S. domestic cash and cash equivalents in excess of $25,000,000 of U.S.
domestic cash maintained or managed by a domestic branch of either a Lender or
an Affiliate of a Lender, provided that for the purposes of calculating the
Leverage Ratio, the maximum amount of U.S. domestic cash to be used to reduce
Consolidated Total Debt shall be limited to $50,000,000.

               CONTAMINATION shall mean the presence or release or threat of
release of Regulated Substances in, on, under or emanating to or from the
Property, which pursuant to Environmental Laws requires notification or
reporting to an Official Body, or which pursuant to Environmental Laws requires
the investigation, cleanup, removal, remediation, containment, abatement of or
other response action or which otherwise constitutes a violation of
Environmental Laws.

               DAILY EURO-RATE means for any day, the rate per annum determined
by the Administrative Agent by dividing (a) the Published Rate by (b) a number
equal to 1.00 minus the Euro-Rate Reserve Percentage on such day.

               DEBT RATING shall mean the corporate credit rating of Standard &
Poor's and the Issuer Rating of Moody's, in each case, of the Company.

                                       6

<PAGE>

               DECLINED SHARE shall have the meaning assigned to that term in
Section 2.1.1.2.

               DEFAULTING LENDER shall have the meaning assigned to that term in
Section 4.4.2.

               DESIGNATED CREDIT PARTIES means the Company and those
Subsidiaries that are from time to time party to the Accounts Receivable
Facility Documents.

               DOLLAR, DOLLARS, U.S. DOLLARS and the symbol $ shall mean lawful
money of the United States of America.

               DOLLAR EQUIVALENT shall mean, with respect to any amount of any
currency, the Equivalent Amount of such currency expressed in Dollars.

               DOLLAR EQUIVALENT REVOLVING FACILITY USAGE shall mean, at any
time, the sum of the Dollar Equivalent of the principal amount of Revolving
Credit Loans then outstanding and the principal amount of Swing Loans then
outstanding and the Dollar Equivalent amount of Letters of Credit Outstanding.

               DOMESTIC GUARANTOR shall mean those Guarantors which are
organized under the laws of the United States.

               DRAWING DATE shall have the meaning assigned to that term in
Section 2.11.3.2.

               EBITDA shall mean, for any period and any Person, net income
(excluding gains and losses on sales of assets (with the exception of sales of
timberland property noted in the definition of Consolidated EBITDA)) and
non-cash pension income and non-cash pension expenses) plus income tax expense,
interest expense (excluding Timberland Installment Sale Interest Expense),
depreciation, amortization expense and any Permitted EBITDA Add Backs (if
Consolidated EBITDA is being computed for the Company) of such Person.

               ENGLISH BORROWER shall mean any Borrower organized under the Laws
of England and Wales.

               ENVIRONMENTAL COMPLAINT shall mean any written complaint by any
Person or Official Body setting forth a cause of action for personal injury or
property damage, natural resource damage, contribution or indemnity for response
costs, civil or administrative penalties, criminal fines or penalties, or
declaratory or equitable relief arising under any Environmental Laws or any
order, notice of violation, citation, subpoena, request for information or other
written notice or demand of any type issued by an Official Body pursuant to any
Environmental Laws.

               ENVIRONMENTAL LAWS shall mean all applicable federal, state,
local and foreign Laws and any legally binding consent decrees, settlement
agreements, judgments, orders

                                       7

<PAGE>

or directives issued by or entered into with an Official Body pertaining or
relating to: (i) pollution or pollution control; (ii) protection of human health
or the environment; (iii) employee safety in the workplace as related to
exposure to Regulated Substances; (iv) the presence, use, management,
generation, manufacture, processing, extraction, treatment, recycling, refining,
reclamation, labeling, transport, storage, collection, distribution, disposal or
release or threat of release of Regulated Substances; (v) the presence of
Contamination; (vi) the protection of endangered or threatened species; and
(vii) the protection of Environmentally Sensitive Areas.

               ENVIRONMENTALLY SENSITIVE AREA shall mean (i) any wetland as
defined by applicable Laws; (ii) any area designated as a coastal zone pursuant
to applicable Laws; (iii) any area of historic or archeological significance or
scenic area as defined or designated by applicable Laws; (iv) habitats of
endangered species or threatened species as designated by applicable Laws; or
(v) a floodplain or other flood hazard area as defined pursuant to any
applicable Laws.

               EQUIVALENT AMOUNT shall mean, at any time, as determined by
Administrative Agent (which determination shall be conclusive absent manifest
error), with respect to an amount of any currency (the "REFERENCE CURRENCY")
which is to be computed as an equivalent amount of another currency (the
"EQUIVALENT Currency"), the amount of such Equivalent Currency converted from
such Reference Currency at Administrative Agent's spot selling rate (based on
the market rates then prevailing and available to Administrative Agent) for the
sale of such Equivalent Currency for such Reference Currency at a time
determined by Administrative Agent on the second Business Day immediately
preceding the event for which such calculation is made.

               EQUIVALENT CURRENCY shall have the meaning assigned to such term
in the definition of Equivalent Amount.

               ERISA shall mean the Employee Retirement Income Security Act of
1974, as the same may be amended or supplemented from time to time, and any
successor statute of similar import, and the rules and regulations thereunder,
as from time to time in effect.

               ERISA GROUP shall mean, at any time, the Loan Parties and all
members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control and all other entities which,
together with the Loan Parties, are treated as a single employer under Section
414 of the Internal Revenue Code.

               EURO shall refer to the lawful currency of the Participating
Member States.

               EUROPEAN INTERBANK MARKET shall mean the European interbank
market for Euro operating in Participating Member States.

                                       8

<PAGE>

               EURO-RATE shall mean, the following:

               (A) with respect to Dollar Loans comprising any Borrowing Tranche
to which the Euro-Rate Option applies for any Interest Period, the interest rate
per annum determined by the Administrative Agent by dividing (the resulting
quotient rounded upwards, if necessary, to the nearest 1/100th of 1% per annum)
(i) the rate which appears on the Bloomberg Page BBAM1 (or on such other
substitute Bloomberg page that displays rates at which Dollar deposits are
offered by leading banks in the London interbank deposit market), or the rate
which is quoted by another source selected by the Administrative Agent which has
been approved by the British Bankers' Association as an authorized information
vendor for the purpose of displaying rates at which US Dollar deposits are
offered by leading banks in the London interbank deposit market (an "ALTERNATE
SOURCE"), at approximately 11:00 a.m., London time, two (2) Business Days prior
to the commencement of such Interest Period as the London interbank offered rate
for Dollars for an amount comparable to the principal amount of such Borrowing
Tranche and having a borrowing date and a maturity comparable to such Interest
Period (or if there shall at any time, for any reason, no longer exist a
Bloomberg Page BBAM1 (or any substitute page) or any Alternate Source, a
comparable replacement rate determined by the Administrative Agent at such time
(which determination shall be conclusive absent manifest error)), by (ii) a
number equal to 1.00 minus the Euro-Rate Reserve Percentage. The Euro-Rate with
respect to Dollar Loans may also be expressed by the following formula:

                                        London interbank offered rate quoted by
                                        Bloomberg or appropriate successor as
                                        shown on

                            Euro-Rate = Bloomberg Page BBAM1
                                        ----------------------------------------
                                        1.00 - Euro-Rate Reserve Percentage

The Euro-Rate shall be adjusted with respect to any Loan to which the Euro-Rate
Option applies that is outstanding on the effective date of any change in the
Euro-Rate Reserve Percentage as of such effective date. The Administrative Agent
shall give prompt notice to the Borrowers of the Euro-Rate as determined or
adjusted in accordance herewith, which determination shall be conclusive absent
manifest error.

               (B) with respect to Optional Currency Loans in currency other
than Euro comprising any Borrowing Tranche to which the Euro-Rate Option applies
for any Interest Period, the interest rate per annum determined by
Administrative Agent by dividing (i) the rate which appears on the Bloomberg
Page BBAM1 (or on such other substitute Bloomberg page that displays rates at
which deposits in the relevant Optional Currency are offered by leading banks in
the Relevant Interbank Market), or the rate which is quoted by an Alternate
Source, at approximately 11:00 a.m., London time, two (2) Business Days prior to
the commencement of such Interest Period as the Relevant Interbank Market
offered rate for deposits in the relevant Optional Currency for an amount
comparable to the principal amount of such Borrowing Tranche and having a
borrowing date and a maturity comparable to such Interest Period (or if there
shall at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or
any substitute page) or any Alternate Source, a comparable replacement rate
determined by the

                                       9

<PAGE>

Administrative Agent at such time (which determination shall be conclusive
absent manifest error)), by (ii) a number equal to 1.00 minus the Euro-Rate
Reserve Percentage. Such Euro-Rate may also be expressed by the following
formula:

                                        Relevant InterbankMarket offered rate
                                        quoted by Bloomberg or appropriate
                                        successor as shown on

                            Euro-Rate = Bloomberg Page BBAM1
                                        ----------------------------------------
                                        1.00 - Euro-Rate Reserve Percentage

The Euro-Rate shall be adjusted with respect to any Loan to which the Euro-Rate
Option applies that is outstanding on the effective date of any change in the
Euro-Rate Reserve Percentage as of such effective date. The Administrative Agent
shall give prompt notice to the Borrowers of the Euro-Rate as determined or
adjusted in accordance herewith, which determination shall be conclusive absent
manifest error. The Euro-Rate for any Loans shall be based upon the Euro-Rate
for the currency in which such Loans are requested.

               (C) with respect to Optional Currency Loans denominated in Euro
comprising any Borrowing Tranche to which the Euro-Rate Option applies for any
Interest Period, the interest rate per annum determined by Administrative Agent
by dividing (i) the rate which appears on the Bloomberg Page BBAM1 (or on such
other substitute Bloomberg page that displays rates at which deposits in Euro
are offered by leading banks in the Relevant Interbank Market) or the rate which
is quoted by an Alternate Source, at approximately 11:00 a.m., Brussels time,
two (2) TARGET Days prior to the commencement of such Interest Period as the
Relevant Interbank Market offered rate for deposits in Euro for an amount
comparable to the principal amount of such Borrowing Tranche and having a
borrowing date and a maturity comparable to such Interest Period (or if there
shall at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or
any substitute page) or any Alternate Source, a comparable replacement rate
determined by the Administrative Agent at such time (which determination shall
be conclusive absent manifest error)), by (ii) a number equal to 1.00 minus the
Euro-Rate Reserve Percentage. Such Euro-Rate may also be expressed by the
following formula:

                                        London interbank offered rate quoted by
                                        Bloomberg or appropriate successor as
                                        shown on

                            Euro-Rate = Bloomberg Page BBAM1
                                        ----------------------------------------
                                        1.00 - Euro-Rate Reserve Percentage

The Euro-Rate shall be adjusted with respect to any Loan to which the Euro-Rate
Option applies that is outstanding on the effective date of any change in the
Euro-Rate Reserve Percentage as of such effective date. The Administrative Agent
shall give prompt notice to the Borrowers of the Euro-Rate as determined or
adjusted in accordance herewith, which determination shall be conclusive absent
manifest error. The Euro-Rate for any Loans shall be based upon the Euro-Rate
for the currency in which such Loans are requested.

                                       10

<PAGE>

               EURO-RATE OPTION shall mean the option of the Borrowers to have
Loans bear interest at the rate and under the terms and conditions set forth in
Section 3.1.1(ii).

               EURO-RATE RESERVE PERCENTAGE shall mean as of any day the maximum
percentage in effect on such day, (i) as prescribed by the Board of Governors of
the Federal Reserve System (or any successor) for determining the reserve
requirements (including supplemental, marginal and emergency reserve
requirements) with respect to eurocurrency funding (currently referred to as
"EUROCURRENCY LIABILITIES"); and (ii) to be maintained by a Lender as required
for reserve liquidity, special deposit, or similar purpose by any governmental
or monetary authority of any country or political subdivision thereof (including
any central bank), against (A) any category of liabilities that includes
deposits by reference to which a Euro-Rate is to be determined, or (B) any
category of extension of credit or other assets that includes Loans or Borrowing
Tranches to which a Euro-Rate applies.

               EVENT OF DEFAULT shall mean any of the events described in
Section 8.1 and referred to therein as an "Event of Default."

               EXECUTIVE ORDER NO. 13224 shall mean the Executive Order No.
13224 on Terrorist Financing, effective September 24, 2001, as the same has
been, or shall hereafter be, renewed, extended, amended or replaced.

               EXISTING LETTERS OF CREDIT shall mean those letters of credit
issued by PNC Bank or another Lender prior to the Closing Date as described on
SCHEDULE 1.1(E) attached hereto; provided that the Loan Parties will cause those
letters of credit issued by Lenders other than PNC Bank, as they expire, to be
replaced by letters of credit issued by PNC Bank under Section 2.11.

               EXPIRATION DATE shall mean, with respect to the Revolving Credit
Commitments, May 31, 2014.

               FACILITY SHARE shall mean for any Lender, the Revolving Credit
Commitment of such Lender.

               FEDERAL FUNDS EFFECTIVE RATE for any day shall mean the rate per
annum (based on a year of 360 days and actual days elapsed and rounded upward to
the nearest 1/100 of 1%) announced by the Federal Reserve Bank of New York (or
any successor) on such day as being the weighted average of the rates on
overnight federal funds transactions arranged by federal funds brokers on the
previous trading day, as computed and announced by such Federal Reserve Bank (or
any successor) in substantially the same manner as such Federal Reserve Bank
computes and announces the weighted average it refers to as the "Federal Funds
Effective Rate" as of the date of this Agreement; provided, if such Federal
Reserve Bank (or its successor) does not announce such rate on any day, the
"Federal Funds Effective Rate" for such day shall be the Federal Funds Effective
Rate for the last day on which such rate was announced.

               FEDERAL FUNDS OPEN RATE for any day shall mean the rate per annum
(based on a year of 360 days and the actual days elapsed) which is the daily
federal funds open

                                       11

<PAGE>

rate as quoted by ICAP North America, Inc. (or any successor) as set forth on
the Bloomberg Screen BTMM for that date opposite the caption "OPEN" (or such
other substitute Bloomberg Screen that displays such rate), or as set forth on
such other recognized electronic source used for the purpose of displaying such
rate as selected by the Administrative Agent (an "ALTERNATIVE SOURCE") (or if
such rate for such day does not appear on the Bloomberg Screen BTMM (or any
substitute screen) or on any Alternate Source, or if there shall at any time,
for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute
screen) or any Alternate Source, a comparable replacement rate determined by the
Administrative Agent at such time (which determination shall be conclusive
absent manifest error); provided, however, that if such day is not a Business
Day, the Federal Funds Open Rate for such day shall be the "open" rate on the
immediately preceding Business Day. If and when the Federal Funds Open Rate
changes, the rate of interest for any advance to which the Federal Funds Open
Rate applies will change automatically without notice to the Borrower, effective
on the date of any such change.

               FOREIGN BORROWER shall mean those Borrowers which are organized
under the laws of a jurisdiction other than the United States (or a political
subdivision thereof).

               FOREIGN LOAN PARTY shall mean a Loan Party which is organized
under the laws of a jurisdiction other than the United States (or a political
subdivision thereof).

               FOREIGN SUBSIDIARY shall mean any Subsidiary which is organized
under the laws of a jurisdiction other than the United States (or a political
subdivision thereof).

               FOX RIVER OU3-5 ENVIRONMENTAL CHARGES EVENT shall mean the date
on which both the following events shall have occurred:

          (i) the Loan Parties incur any charge described in the definition of
"Permitted EBITDA Add Backs" related to the Fox River site, Wisconsin, OU3-5 (if
the Loan Parties incur more than one such charge, this clause (i) refers only to
the first such charge), and

          (ii) the Loan Parties incur Indebtedness to finance the payment of the
charge referred to in clause (i) of this definition (if the Loan Parties incur
Indebtedness on more than one occasion to finance such payment, this clause (ii)
refers only to the first such incurrence).

               FOX RIVER OU3-5 RELATED DEBT shall mean the amount of
Indebtedness referred to in clause (ii) of the definition of Fox River OU3-5
Environmental Charges Event.

               GAAP shall mean generally accepted accounting principles as are
in effect in the United States from time to time, subject to the provisions of
Section 1.3, and applied on a consistent basis both as to classification of
items and amounts.

               GERMAN BORROWER shall mean any Borrower organized under the Laws
of Germany.

                                       12

<PAGE>

               GLAWSON NOTE shall mean a timberland installment sale note
payable by GIC Investments LLC to GPW VA Timberlands (by contribution from Pulp
Wood) in the principal amount of $43,170,000.00.

               GOVERNMENTAL ACTS shall have the meaning assigned to that term in
Section 2.11.8.

               GPW VA TIMBERLANDS shall mean GPW Virginia Timberlands LLC, a
Delaware limited liability company, a Non-Loan Party Subsidiary.

               GUARANTOR shall mean each of the parties to this Agreement which
is designated as a "Guarantor" on the signature page hereof and each other
Person which joins this Agreement as a Guarantor after the date hereof pursuant
to Section 7.1.10 and executes a Guarantor Joinder.

               GUARANTOR JOINDER shall mean a joinder by a Person as a Guarantor
under this Agreement, the Guaranty Agreement and the other Loan Documents in
substantially the form of EXHIBIT 1.1(G)(1).

               GUARANTY of any Person shall mean any obligation of such Person
guaranteeing or in effect guaranteeing any liability or obligation of any other
Person in any manner, whether directly or indirectly, including any agreement to
indemnify or hold harmless any other Person, any performance bond or other
suretyship arrangement and any other form of assurance against loss, except
endorsement of negotiable or other instruments for deposit or collection in the
ordinary course of business.

               GUARANTY AGREEMENT shall mean the Guaranty and Suretyship
Agreement in substantially the form of EXHIBIT 1.1(G)(2) executed and delivered
by each of the Guarantors.

               HEDGE LIABILITIES shall have the meaning given to such term in
the definition of "Lender Provided Interest Rate Hedge".

               HISTORICAL STATEMENTS shall have the meaning assigned to that
term in Section 5.1.8.1.

               INCREASING LENDER shall have the meaning assigned to that term in
Section 2.1.1.2.

               INDEBTEDNESS shall mean, without duplication, as to any Person at
any time, any and all indebtedness, obligations or liabilities (whether matured
or unmatured, liquidated or unliquidated, direct or indirect, absolute or
contingent, or joint or several) of such Person for or in respect of: (i)
borrowed money, (ii) amounts raised under or liabilities in respect of any note
purchase or acceptance credit facility, (iii) net reimbursement obligations
(contingent or otherwise) under any letter of credit, currency swap agreement,
interest rate swap, cap, collar or floor agreement or other interest rate
management device, (iv) any other transaction (including

                                       13

<PAGE>

forward sale or purchase agreements, capitalized leases and conditional sales
agreements) having the commercial effect of a borrowing of money entered into by
such Person to finance its operations or capital requirements (but not including
trade payables and accrued expenses incurred in the ordinary course of business
which are not represented by a promissory note or other evidence of indebtedness
and which are not more than sixty (60) days past due), (v) the outstanding
amount of any Permitted Accounts Receivable Program, or (vi) any Guaranty of
Indebtedness referred to in clauses (i) through (v) above.

               INSOLVENCY PROCEEDING shall mean, with respect to any Person, (i)
a case, action or proceeding with respect to such Person (A) before any court or
any other Official Body under any bankruptcy, insolvency, reorganization or
other similar Law now or hereafter in effect, or (B) for the appointment of a
receiver, liquidator, assignee, custodian, trustee, sequestrator, conservator
(or similar official) of any Loan Party or otherwise relating to the
liquidation, dissolution, winding-up or relief of such Person, or (ii) any
general assignment for the benefit of creditors, composition, marshaling of
assets for creditors, or other, similar arrangement in respect of such Person's
creditors generally or any substantial portion of its creditors; undertaken
under any Law.

               INTERCOMPANY SUBORDINATION AGREEMENT shall mean the Intercompany
Subordination Agreement dated as of even date herewith by the Loan Parties in
favor of the Administrative Agent for the benefit of the Lenders.

               INTEREST PERIOD shall mean the period of time selected by the
Company, on behalf of all the Borrowers, in connection with (and to apply to)
any election permitted hereunder by the Borrowers to have Loans bear interest
under the Euro-Rate Option. Subject to the last sentence of this definition,
such period shall be (A) one, two, three or six Months if the Borrowers select
the Euro-Rate Option, and (B) one or two Months with respect to any Loans made
in any Optional Currency. Such Interest Period shall commence on the effective
date of such Interest Rate Option, which shall be (i) the Borrowing Date if the
Borrowers are requesting new Loans, or (ii) the date of renewal of or conversion
to the Euro-Rate Option if the Borrowers are renewing or converting to the
Euro-Rate Option applicable to outstanding Loans. Notwithstanding the second
sentence hereof: (A) any Interest Period which would otherwise end on a date
which is not a Business Day shall be extended to the next succeeding Business
Day unless such Business Day falls in the next calendar month, in which case
such Interest Period shall end on the next preceding Business Day, and (B) the
Borrowers shall not select, convert to or renew an Interest Period for any
portion of the Loans that would end after the Expiration Date.

               INTEREST RATE, CURRENCY AND COMMODITY HEDGE shall mean (i) an
interest rate exchange, collar, cap, swap, adjustable strike cap, adjustable
strike corridor or similar agreement, or (ii) a foreign exchange contract,
currency swap agreement, futures contract, option contract, commodity hedge,
synthetic cap or similar arrangement, in each case entered into by the Loan
Parties or their Subsidiaries in order to provide protection to, or minimize the
impact upon, the Borrowers, the Guarantor and/or their Subsidiaries of
increasing floating rates of interest applicable to Indebtedness and
fluctuations in currency values and commodity prices, as the case may be, and
not for speculative purposes.

                                       14

<PAGE>

               INTEREST RATE OPTION shall mean any Euro-Rate Option or Base Rate
Option.

               INTERNAL REVENUE CODE shall mean the Internal Revenue Code of
1986, as the same may be amended or supplemented from time to time, and any
successor statute of similar import, and the rules and regulations thereunder,
as from time to time in effect.

               ISSUING LENDER shall have the meaning assigned to that term in
Section 2.11.3.2.

               LABOR CONTRACTS shall mean all employment agreements, employment
contracts, collective bargaining agreements and other agreements among any Loan
Party or Subsidiary of a Loan Party and its employees.

               LAW shall mean any law (including common law), constitution,
statute, treaty, regulation, rule, ordinance, legally enforceable opinion or
release, ruling, order, injunction, writ, decree, bond, judgment, authorization
or approval, lien or award by or settlement agreement with any Official Body.

               LENDER-PROVIDED INTEREST RATE HEDGE shall mean an Interest Rate
Hedge which is provided by any Lender and meets the following requirements: such
Interest Rate Hedge (i) is documented in a standard International Swap Dealer
Association Agreement, using a reasonable and customary method of calculating
the reimbursable amount of the provider's credit exposure, and (ii) is entered
into for hedging (rather than speculative) purposes. The liabilities of the Loan
Parties to the provider of any Lender-Provided Interest Rate Hedge (the "HEDGE
LIABILITIES") shall be "Obligations" hereunder, guaranteed obligations under the
Guaranty Agreement and otherwise treated as Obligations for purposes of each of
the other Loan Documents.

               LENDERS shall mean the financial institutions named on SCHEDULE
1.1(B), their respective successors and assigns as permitted hereunder and each
Augmenting Lender joining this Agreement in accordance with the terms of Section
2.1.1.2 hereof, each of which is referred to herein as a Lender.

               LENDING OFFICE shall mean the office designated as such by a
Lender on Schedule 1.1(B).

               LETTER OF CREDIT shall have the meaning assigned to that term in
Section 2.11.1.

               LETTER OF CREDIT BORROWING shall have the meaning assigned to
such term in Section 2.11.3.4.

               LETTER OF CREDIT FEE shall have the meaning assigned to that term
in Section 2.11.2.

                                       15

<PAGE>

               LETTERS OF CREDIT OUTSTANDING shall mean at any time the sum of
(i) the aggregate undrawn face amount of outstanding Letters of Credit and (ii)
the aggregate amount of all unpaid and outstanding Reimbursement Obligations and
Letter of Credit Borrowings.

               LEVERAGE RATIO shall mean, as of the end of any fiscal quarter,
an amount equal to Consolidated Total Net Debt on such day divided by
Consolidated Adjusted EBITDA for the four fiscal quarters ending on such date of
determination.

               LIEN shall mean any mortgage, deed of trust, pledge, lien,
security interest, charge or other encumbrance or security arrangement of any
nature whatsoever, whether voluntarily or involuntarily given, including any
conditional sale or title retention arrangement, and any assignment, deposit
arrangement or lease intended as, or having the effect of, security and any
filed financing statement or other notice of any of the foregoing (whether or
not a lien or other encumbrance is created or exists at the time of the filing).

               LLC INTERESTS shall have the meaning given to such term in
Section 5.1.2.

               LOAN DOCUMENTS shall mean this Agreement, the Notes, the
Administrative Agent's Letter, the Guaranty Agreement, the Intercompany
Subordination Agreement and any other instruments, certificates or documents
delivered or contemplated to be delivered hereunder or thereunder or in
connection herewith or therewith, as the same may be supplemented or amended
from time to time in accordance herewith or therewith, and LOAN DOCUMENT shall
mean any of the Loan Documents.

               LOAN PARTIES shall mean the Borrowers and the Guarantors.

               LOAN REQUEST shall have the meaning given to such term in Section
2.4.1.

               LOANS shall mean, collectively, and LOAN shall mean, separately,
all Revolving Credit Loans and Swing Loans, or any Revolving Credit Loan or
Swing Loan.

               MATERIAL ADVERSE CHANGE shall mean any set of circumstances or
events which (a) is or could reasonably be expected to be material and adverse
to the business, properties, assets, financial condition or results of
operations of the Loan Parties taken as a whole, (b) impairs materially or could
reasonably be expected to impair materially the ability of the Loan Parties,
taken as a whole, to duly and punctually pay or perform their Indebtedness, or
(c) impairs materially the ability of the Administrative Agent or any of the
Lenders, to the extent permitted, to enforce their legal remedies pursuant to
this Agreement or any other Loan Document.

               MATERIAL EVENT OF DEFAULT shall mean any Event of Default
described in any of the following Sections: 8.1.1 (provided that a Material
Event of Default shall be deemed to occur upon any failure to pay principal,
interest or Commitment Fees without regard to the grace period provided for in
such Section 8.1.1), 8.1.3 (if such Event of Default arises because of a breach
of Section 7.2.15 or 7.2.16), 8.1.4 (if such Event of Default arises because of
a breach of Sections 7.3.1, 7.3.2 or 7.3.3), 8.1.10, 8.1.14, or 8.1.15.

                                       16

<PAGE>

               MATERIAL SUBSIDIARY means each Subsidiary of the Company which is
identified on Schedule 1.1(M) as a "Material Subsidiary," and each other
Subsidiary of the Company that has assets at such time, or revenues during the
most recently ended fiscal year, comprising 5% or more of the consolidated
assets of the Company and its Subsidiaries at such time, or of the consolidated
revenues of the Company and its Subsidiaries during such Fiscal Year, as the
case may be; provided, however, that notwithstanding the foregoing, "Material
Subsidiary" shall exclude GPW VA Timberlands and each Monetization Entity so
long as it remains in compliance with Section 7.2.17.

               MONETIZATION ENTITY shall have the meaning assigned to that term
in Section 7.2.17.

               MONTH, with respect to an Interest Period under the Euro-Rate
Option, shall mean the interval between the days in consecutive calendar months
numerically corresponding to the first day of such Interest Period. If any
Euro-Rate Interest Period begins on a day of a calendar month for which there is
no numerically corresponding day in the month in which such Interest Period is
to end, the final month of such Interest Period shall be deemed to end on the
last Business Day of such final month.

               MOODY'S shall mean Moody's Investors Service, Inc. and its
successors.

               MULTIPLE EMPLOYER PLAN shall mean a Plan which has two or more
contributing sponsors (including the Loan Parties or any member of the ERISA
Group) at least two of whom are not under common control, as such a plan is
described in Sections 4063 and 4064 of ERISA.

               MULTIEMPLOYER PLAN shall mean any employee benefit plan which is
a "multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA and to
which the Loan Parties or any member of the ERISA Group is then making or
accruing an obligation to make contributions or, within the preceding five Plan
years, has made or had an obligation to make such contributions.

               NON-CONSENTING LENDER shall have the meaning assigned to that
term in Section 10.1.

               NON-LOAN PARTY SUBSIDIARY shall mean a Subsidiary of the Company
which is not required to be a Guarantor and has not opted to become a Borrower
pursuant to Section 7.2.9.

               NOTES shall mean the Revolving Credit Notes and the Swing Note.

               NOTICES shall have the meaning assigned to that term in Section
10.6.

               OBLIGATION shall mean any obligation or liability of any of the
Loan Parties to the Administrative Agent or any of the Lenders, howsoever
created, arising or evidenced, whether direct or indirect, absolute or
contingent, now or hereafter existing, or due or

                                       17

<PAGE>

to become due, under or in connection with this Agreement, the Notes, the
Letters of Credit, the Administrative Agent's Letter or any other Loan Document.
Obligations shall include the liabilities to any Lender under any
Lender-Provided Interest Rate Hedge but shall not include the liabilities to
other Persons under any other Interest Rate Hedge.

               OFFICIAL BODY shall mean any national, federal, state, local or
other government or political subdivision or any agency, authority, board,
bureau, central bank, commission, department or instrumentality of either, or
any court, tribunal, grand jury or arbitrator, in each case whether foreign or
domestic.

               OPTIONAL CURRENCY shall mean (i) the following lawful currencies:
Canadian dollars, British pounds sterling and the Euro, and (ii) any other
currency approved by Administrative Agent and all of the Lenders pursuant to
Section 2.9.5.

               ORDER shall have the meaning assigned to such term in Section
2.11.9.

               ORIGINAL CURRENCY shall have the meaning assigned to such term in
Section 4.9.1.

               OTHER CURRENCY shall have the meaning assigned to such term in
Section 4.9.1.

               OTHER TAXES shall have the meaning assigned to such term in
Section 4.8.2.

               OVERNIGHT RATE shall mean for any day with respect to any Loans
in an Optional Currency, the rate of interest per annum as determined by the
Administrative Agent at which overnight deposits in such currency, in an amount
approximately equal to the amount with respect to which such rate is being
determined, would be offered for such day in the Relevant Interbank Market.

               PARTICIPATING MEMBER STATE shall mean any member State of the
European Communities that adopts or has adopted the euro as its lawful currency
in accordance with legislation of the European Community relating to Economic
and Monetary Union.

               PARTICIPATION ADVANCE shall mean, with respect to any Lender,
such Lender's payment in respect of its participation in a Letter of Credit
Borrowing according to its Ratable Share pursuant to Section 2.11.3.4.

               PARTNERSHIP INTERESTS shall have the meaning given to such term
in Section 5.1.2.

               PBGC shall mean the Pension Benefit Guaranty Corporation
established pursuant to Subtitle A of Title IV of ERISA or any successor.

                                       18

<PAGE>

               PERMITTED ACCOUNTS RECEIVABLE PROGRAM means an accounts
receivables securitization program concluded pursuant to the Accounts Receivable
Facility Documents and provided that (i) the aggregate principal amount thereof
does not exceed $100,000,000, (ii) on the effective date of such program and
after giving effect to such program and related transactions, there shall exist
no Events of Default or Potential Defaults, and (iii) the Company shall have
delivered to the Administrative Agent a certificate from a Responsible Officer
certifying that the foregoing conditions have been met.

               PERMITTED ACQUISITIONS shall have the meaning assigned to such
term in Section 7.2.6.

               PERMITTED ADDITIONAL TIMBERLAND INDEBTEDNESS shall mean
Indebtedness incurred by GPW VA Timberlands or a Monetization Entity after the
Closing Date in connection with its monetization of notes (other than the
Glawson Note) received in connection with a Permitted Timberland Installment
Sale, together with any refinancings, refundings, renewals or extensions thereof
permitted under Section 7.2.1(xvi)(B).

               PERMITTED ADDITIONAL TIMBERLAND INTERCOMPANY INDEBTEDNESS shall
mean intercompany Indebtedness incurred after the Closing Date in the form of
debt securities issued by the Company to GPW VA Timberlands or another
Monetization Entity (whether by contribution from Pulp Wood or through a
comparable intercompany transaction), together with any refinancings,
refundings, renewals or extensions thereof permitted under Section
7.2.1(xvi)(B).

               PERMITTED EBITDA ADD BACK shall mean, to the extent such charges
are deducted in the computation of net income of the Loan Parties in their
computation of EBITDA during the period specified, with appropriate adjustments
for the tax effects of such add-backs, charges incurred by the Loan Parties in
connection with environmental response and remediation, the presence of
contamination, natural resource damages or reimbursement of the EPA for incurred
costs at the Fox River site, Wisconsin, OU3-5, provided that the total amount of
such charges incurred during the term of this Agreement may not exceed
$20,000,000.00.

               PERMITTED INVESTMENTS shall mean:

                    (i) direct obligations of the United States of America or
any agency or instrumentality thereof or obligations backed by the full faith
and credit of the United States of America maturing in twelve (12) months or
less from the date of acquisition;

                    (ii) shares of any money market mutual fund rated at least
AAA by Standard & Poor's or at least Aaa by Moody's;

                    (iii) commercial paper maturing in 180 days or less rated
not lower than A-1, by Standard & Poor's or P-1 by Moody's on the date of
acquisition;

                                       19

<PAGE>

                    (iv) demand deposits or time deposits maturing within one
year from the date of creation, certificates of deposit and eurodollar time
deposits with maturities of one year or less from the date of acquisition,
bankers' acceptances with maturities not exceeding one year and overnight bank
deposits, in each case, with any Lender or with any domestic commercial bank
whose obligations are rated A-1, A or the equivalent or better by Standard &
Poor's, or P-1 or the equivalent or better by Moody's, on the date of
acquisition;

                    (v) repurchase obligations with a term of not more than
thirty (30) days for underlying securities of the types described in clauses
(iii) and (iv) above entered into with any financial institution meeting the
qualifications specified in clause (iv) above;

                    (vi) in the case of any Foreign Borrower, (a) direct
obligations of the sovereign nation (or any agency thereof) in which such
Borrower is organized and is conducting business or in obligations fully and
unconditionally guaranteed by such sovereign nation (or any agency thereof), (b)
investments of the type and maturity described in clauses (i) through (v) above
of foreign obligors, which investments or obligors (or the parents of such
obligors) have ratings described in such clauses or equivalent ratings from
comparable foreign rating agencies and (c) investments of the type and maturity
described in clauses (i) through (v) above of foreign obligors (or the parents
of such obligors), which investments of obligors (or the parents of such
obligors) are not rated as provided in such clauses or in clause (b) above but
which are, in the reasonable judgment of the Company and the Borrowers,
comparable in investment quality to such investments and obligors (or the
parents of such obligors);

                    (vii) Interest Rate Hedges otherwise permitted hereunder;
and

                    (viii) investments (including debt obligations) received in
connection with the bankruptcy or reorganization of suppliers and customers and
in settlement of delinquent obligations of, and other disputes with, customers
and suppliers arising in the ordinary course of business.

               PERMITTED LIENS shall mean:

                    (i) Liens for taxes, assessments, or similar charges,
incurred in the ordinary course of business and which are not yet due and
payable;

                    (ii) Pledges or deposits made in the ordinary course of
business to secure payment of workmen's compensation, or to participate in any
fund in connection with workmen's compensation, unemployment insurance, old-age
pensions or other social security programs;

                    (iii) Liens of mechanics, materialmen, warehousemen,
carriers, or other like Liens, securing obligations incurred in the ordinary
course of business that are not yet due and payable and Liens of landlords
securing obligations to pay lease payments that are not yet due and payable or
in default;

                                       20

<PAGE>

                    (iv) Good-faith pledges or deposits made in the ordinary
course of business to secure performance of bids, tenders, contracts (other than
for the repayment of borrowed money) or leases, not in excess of the aggregate
amount due thereunder, or to secure statutory obligations, or surety, appeal,
indemnity, performance or other similar bonds required in the ordinary course of
business;

                    (v) Encumbrances consisting of zoning restrictions,
easements or other restrictions on the use of real property, none of which
materially impairs the use of such property or the value thereof, and none of
which is violated in any material respect by existing or proposed structures or
land use;

                    (vi) Liens, security interests and mortgages in favor of the
Administrative Agent, for the benefit of the Lenders, securing the Obligations
including liabilities under any Lender-Provided Interest Rate Hedge;

                    (vii) Liens on property leased by any Loan Party or
Subsidiary of a Loan Party under capital and operating leases permitted in
Section 7.2.1 securing obligations of such Loan Party or Subsidiary to the
lessor under such leases;

                    (viii) Any Lien existing on the date of this Agreement and
described on SCHEDULE 1.1(P), provided that no additional assets become subject
to such Lien and the Indebtedness, if any, secured thereby is permitted under
Section 7.2.1;

                    (ix) Liens on tangible property (or any improvement thereon)
acquired or constructed by the Company or any Subsidiary after the Closing Date
to secure Indebtedness of the Company or such Subsidiary incurred in connection
with such improvement, acquisition or construction; provided that:

                         (1) no such Lien shall extend to or cover any Property
other than the property (or improvement thereon) being acquired or constructed;
and

                         (2) the principal amount of the Indebtedness secured by
any such Lien, together with the aggregate principal amount of all other
Indebtedness secured by Liens on such Property, shall not exceed the lesser of
(A) an amount equal to the fair market value of such property so improved,
acquired or constructed and (B) the cost to the Company or such Subsidiary of
such property (or improvement thereon) so acquired or constructed.

                    (x) Purchase Money Security Interests;

                    (xi) The following, (A) if the validity or amount thereof is
being contested in good faith by appropriate and lawful proceedings diligently
conducted so long as levy and execution thereon have been stayed and continue to
be stayed or (B) if a final judgment is entered and such judgment is discharged
within thirty (30) days of entry, and in either case they do not materially
impair the ability of any Loan Party to perform its Obligations hereunder or
under the other Loan Documents:

                                       21

<PAGE>

               (1) Claims or Liens for taxes, assessments or charges due and
          payable and subject to interest or penalty, provided that the
          applicable Loan Party maintains such reserves or other appropriate
          provisions as shall be required by GAAP;

               (2) Claims, Liens or encumbrances upon, and defects of title to,
          real or personal property, including any attachment of personal or
          real property or other legal process prior to adjudication of a
          dispute on the merits;

               (3) Claims or Liens of mechanics, materialmen, warehousemen,
          carriers, or other statutory nonconsensual Liens; and

               (4) Liens resulting from final judgments or orders described in
          Section 8.1.6;

                    (xii) Any Liens that arise or are deemed to arise under a
Permitted Accounts Receivable Program, so long as they comply with Section
7.2.17;

                    (xiii) Bankers' Liens, rights of setoff and other similar
Liens existing solely with respect to cash and cash equivalents on deposits in
one or more accounts maintained by any Loan Party arising in the ordinary course
of business from netting services, overdraft protection, cash management
obligations and otherwise in connection with the maintenance of deposit,
securities and commodities accounts;

                    (xiv) Liens securing Indebtedness (including Indebtedness in
connection with or to finance a Permitted Acquisition, to the extent such
Indebtedness is permitted under Section 7.2.1) and securing other obligations in
an aggregate amount outstanding not to exceed $30,000,000.00 at any time; and

                    (xv) Liens on assets of GPW VA Timberlands or a Monetization
Entity securing Permitted Timberland Indebtedness, as contemplated in Section
7.2.1(ix), or Permitted Additional Timberland Indebtedness, as applicable, as
contemplated in Section 7.2.1(x), in each case complying with Section 7.2.17.

               PERMITTED TIMBERLAND INSTALLMENT SALE shall have the meaning
assigned to such term in Section 7.2.7(vii).

               PERMITTED TIMBERLAND INDEBTEDNESS shall mean Indebtedness
incurred by GPW VA Timberlands in connection with its monetization of the
Glawson Note, which Indebtedness as of the Closing Date is in the form of a term
loan from SunTrust Bank in the original principal amount of $36,700,000.00
secured by (a) the Glawson Note, (b) a letter of credit issued by Royal Bank of
Scotland plc (or a replacement issuer of comparable credit quality), in the face
amount of the Glawson Note plus assumed interest thereon, which letter of credit
is collateralized from assets of the issuer of the Glawson Note and/or its
affiliates (and not from assets of the Company or any of its Subsidiaries), (c)
the Permitted Timberland Intercompany Indebtedness, and

                                       22

<PAGE>

(d) all or substantially all of the other assets of GPW VA Timberlands, together
with any refinancings, refundings, renewals or extensions thereof permitted
under Section 7.2.1(xvi)(B).

               PERMITTED TIMBERLAND INTERCOMPANY INDEBTEDNESS shall mean
intercompany Indebtedness incurred prior to the Closing Date in the form of debt
securities issued by the Company to GPW VA Timberlands (by contribution from
Pulp Wood), together with any refinancings, refundings, renewals or extensions
thereof permitted under Section 7.2.1(xvi)(B).

               PERSON shall mean any individual, corporation, partnership,
limited liability company, association, joint-stock company, trust,
unincorporated organization, joint venture, government or political subdivision
or agency thereof, or any other entity.

               PLAN shall mean at any time an employee pension benefit plan
(including a Multiple Employer Plan, but not a Multiemployer Plan) which is
covered by Title IV of ERISA or is subject to the minimum funding standards
under Section 412 of the Internal Revenue Code and either (i) is maintained by
any member of the ERISA Group for employees of any member of the ERISA Group or
(ii) has at any time within the preceding five years been maintained by any
entity which was at such time a member of the ERISA Group for employees of any
entity which was at such time a member of the ERISA Group.

               PLEDGED COLLATERAL shall have the meaning given to such term in
Section 10.19.

               PLEDGED LOAN shall have the meaning given to such term in Section
10.19.

               PNC BANK shall mean PNC Bank, National Association, its
successors and assigns.

               POTENTIAL DEFAULT shall mean any event or condition which with
notice, passage of time, or both, would (unless cured or waived) constitute an
Event of Default.

               PRINCIPAL OFFICE shall mean the main banking office of the
Administrative Agent in Pittsburgh, Pennsylvania.

               PRIOR SENIOR CREDIT FACILITY shall mean the credit facilities
provided to the Borrowers pursuant to the terms of a Credit Agreement among the
Borrowers, PNC Bank, National Association, as Administrative Agent, the
Affiliates of Borrowers party thereto as guarantors, and various lending
institutions party thereto, dated as of April 3, 2006, the Borrowers'
obligations with respect to which are intended to be satisfied in full on the
Closing Date with advances of Loans hereunder.

                                       23

<PAGE>

               PROHIBITED TRANSACTION shall mean any prohibited transaction as
defined in Section 4975 of the Internal Revenue Code or Section 406 of ERISA for
which neither an individual nor a class exemption has been issued by the United
States Department of Labor.

               PROPERTY shall mean all real property, both owned and leased, of
any Loan Party or Subsidiary of a Loan Party.

               PUBLISHED RATE means the rate of interest published each Business
Day in The Wall Street Journal "Money Rates" listing under the caption "London
Interbank Offered Rates" for a one month period (or, if no such rate is
published therein for any reason, then the Published Rate shall be the rate at
which Dollar deposits are offered by leading banks in the London interbank
market for a one month period as published by another publication selected by
the Administrative Agent).

               PULP WOOD means Glatfelter Pulp Wood Company, a Subsidiary of the
Company that is a Guarantor.

               PURCHASE MONEY SECURITY INTEREST shall mean Liens upon tangible
personal property securing loans to any Loan Party or Subsidiary of a Loan Party
or deferred payments by such Loan Party or Subsidiary for the purchase of such
tangible personal property, provided that such security interest does not
encumber any asset not thereby purchased, and provided further that such
security interest does not secure obligations in excess of such purchase price
or deferred payments.

               PURCHASING LENDER shall mean a Lender which becomes a party to
this Agreement by executing an Assignment and Assumption Agreement.

               RECEIVABLES ENTITY shall have the meaning assigned to such term
in Section 7.2.17.

               REFERENCE CURRENCY shall have the meaning assigned to such term
in the definition of Equivalent Amount.

               REGULATED SUBSTANCES shall mean, without limitation, any
substance, material or waste, regardless of its form or nature, defined under
Environmental Laws as a "hazardous substance," "pollutant," "pollution,"
"contaminant," "hazardous or toxic substance," "extremely hazardous substance,"
"toxic chemical," "toxic substance," "toxic waste," "hazardous waste," "special
handling waste," "industrial waste," "residual waste," "solid waste," "municipal
waste," "mixed waste," "infectious waste," "chemotherapeutic waste," "medical
waste," or "regulated substance" or any other material, substance or waste,
regardless of its form or nature, which otherwise is regulated by Environmental
Laws.

               REGULATION U shall mean Regulation U, T, G or X as promulgated by
the Board of Governors of the Federal Reserve System, as amended from time to
time.

                                       24

<PAGE>

               REIMBURSEMENT OBLIGATION shall have the meaning assigned to such
term in Section 2.11.3.2.

               RELEVANT INTERBANK MARKET shall mean in relation to Euro, the
European Interbank Market and, in relation to any other currency, the London
interbank market.

               REPORTABLE EVENT shall mean a reportable event described in
Section 4043 of ERISA and regulations thereunder with respect to a Plan (unless
the 30-day notice requirement has been waived by the PBGC).

               REQUIRED LENDERS shall mean

               (i) prior to termination of the Revolving Credit Commitments,
Lenders whose Facility Share aggregate at least 51% of the aggregate Facility
Shares of all of the Lenders; and

               (ii) after termination of the Revolving Credit Commitments, any
group of Lenders if the sum of the Loans, Reimbursement Obligations and Letter
of Credit Borrowings of such Lenders then outstanding aggregates at least 51% of
the total principal amount of all of the Loans, Reimbursement Obligations and
Letter of Credit Borrowings then outstanding. Reimbursement Obligations and
Letter of Credit Borrowings shall be deemed, for purposes of this definition, to
be in favor of the Administrative Agent and not a participating Lender if such
Lender has not made its Participation Advance in respect thereof and shall be
deemed to be in favor of such Lender to the extent of its Participation Advance
if it has made its Participation Advance in respect thereof.

               REQUIRED ENVIRONMENTAL NOTICES shall mean all notices, reports,
plans, forms or other filings which pursuant to Environmental Laws, Required
Environmental Permits or at the request or direction of an Official Body either
must be submitted to an Official Body or which otherwise must be maintained.

               REQUIRED ENVIRONMENTAL PERMITS shall mean all permits, licenses,
bonds, consents, programs, approvals or authorizations required under
Environmental Laws to own, occupy or maintain the Property or which otherwise
are required for the operations and business activities of the Borrowers or
Guarantors.

               REQUIRED SHARE shall have the meaning assigned to such term in
Section 4.11.

               RESPONSIBLE OFFICER with respect to any Person, the chief
executive officer, president, treasurer, or the chief or principal financial
officer of such Person. Unless otherwise qualified, all references to
"Responsible Officer" in this Agreement shall refer to a "Responsible Officer"
of a Loan Party.

               RESTRICTED PAYMENT shall mean (i) any dividend or distribution by
a Loan Party on or in respect of its capital stock or to the direct or indirect
holders of its capital stock

                                       25

<PAGE>

(except dividends or distributions payable solely in such capital stock or in
options, warrants or other rights to purchase such capital stock and except
dividends or distributions payable to the Company or another Loan Party) or (ii)
purchase, redemption or other acquisition or retirement for value of any capital
stock of the Company or (iii) any payment on, purchase, defeasance, redemption,
prepayment, decrease or other acquisition or retirement for value, prior to any
scheduled final maturity (other than regularly scheduled or required payments of
principal), of any other Indebtedness that is subordinate or junior in right of
payment to the Obligations.

               REVOLVING CREDIT COMMITMENT shall mean, as to each Lender at any
time, the amounts initially set forth opposite its name on SCHEDULE 1.1(B) in
the column labeled "Amount of Commitment for Revolving Credit Loans," and,
thereafter, as such amounts may be amended, whether pursuant to Assignment and
Assumption Agreements, increases or reductions in Revolving Credit Commitments
provided for under the terms of the Agreement or otherwise, and REVOLVING CREDIT
COMMITMENTS shall mean the aggregate Revolving Credit Commitments of all of the
Lenders.

               REVOLVING CREDIT LOANS shall mean, collectively, and REVOLVING
CREDIT LOAN shall mean, separately, all Revolving Credit Loans or any Revolving
Credit Loan made by the Lenders or one of the Lenders to the Borrowers pursuant
to Section 2.1 or 2.11.3.

               REVOLVING CREDIT NOTES shall mean collectively and REVOLVING
CREDIT NOTE shall mean separately all the Revolving Credit Notes of the
Borrowers in substantially the form of EXHIBIT 1.1(R) evidencing the Revolving
Credit Loans together with all amendments, extensions, renewals, replacements,
refinancings or refundings thereof in whole or in part.

               REVOLVING CREDIT RATABLE SHARE shall mean the proportion that a
Lender's Revolving Credit Commitment bears to the Revolving Credit Commitments
of all of the Lenders.

               SEC shall mean the Securities and Exchange Commission or any
governmental agencies substituted therefor.

               SETTLEMENT DATE shall mean any Business Day on which the
Administrative Agent elects to effect settlement pursuant to Section 4.11.

               STANDARD & POOR'S shall mean Standard & Poor's Ratings Services,
a division of The McGraw-Hill Companies, Inc., and its successors.

               STANDARD SECURITIZATION UNDERTAKINGS means representations,
warranties, covenants and indemnities entered into by the Company or any
Subsidiary thereof in connection with the Permitted Accounts Receivable Program
which are reasonably customary in an accounts receivable securitization
transaction at the time of consummation of such transaction.

               STANDBY LETTER OF CREDIT shall mean a Letter of Credit issued to
support obligations of one or more of the Loan Parties, contingent or otherwise,
which finance the

                                       26

<PAGE>

working capital and business needs of the Loan Parties incurred in the ordinary
course of business, but excluding any Letter of Credit under which the stated
amount of such Letter of Credit increases automatically over time.

               SUBSIDIARY of any Person at any time shall mean (i) any
corporation or trust of which 50% or more (by number of shares or number of
votes) of the outstanding capital stock or shares of beneficial interest
normally entitled to vote for the election of one or more directors or trustees
(regardless of any contingency which does or may suspend or dilute the voting
rights) is at such time owned directly or indirectly by such Person or one or
more of such Person's Subsidiaries, (ii) any partnership of which such Person is
a general partner or of which 50% or more of the partnership interests is at the
time directly or indirectly owned by such Person or one or more of such Person's
Subsidiaries, (iii) any limited liability company of which such Person is a
manager or of which 50% or more of the limited liability company interests is at
the time directly or indirectly owned by such Person or one or more of such
Person's Subsidiaries or (iv) any corporation, trust, partnership, limited
liability company or other entity which is controlled by such Person or one or
more of such Person's Subsidiaries.

               SUBSIDIARY SHARES shall have the meaning assigned to that term in
Section 5.1.2.

               SWING LOAN COMMITMENT shall mean PNC Bank's commitment to make
Swing Loans to the Borrowers pursuant to Section 2.1.2 hereof in an aggregate
principal amount up to $20,000,000.00.

               SWING LOAN NOTE shall mean the Swing Loan Note of the Borrowers
in substantially the form of EXHIBIT 1.1(S) evidencing the Swing Loans, together
with all amendments, extensions, renewals, replacements, refinancings or
refundings thereof in whole or in part.

               SWING LOAN REQUEST shall mean a request for Swing Loans made in
accordance with Section 2.4.2 hereof.

               SWING LOANS shall mean collectively and SWING LOAN shall mean
separately all Swing Loans or any Swing Loan made by PNC Bank to the Borrowers
pursuant to Section 2.1.2 hereof.

               TARGET2 shall mean the Trans-European Automated Real-time Gross
Settlement Express Transfer payment system which utilizes a single shared
platform and which was launched on 19 November 2007.

               TARGET DAY shall mean any day on which TARGET2 is open for the
settlement of payment in Euro.

               TAXES shall have the meaning assigned to such term in Section
4.8.1.

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<PAGE>

               TIMBERLAND INSTALLMENT SALE INTEREST EXPENSE shall mean, for any
period of the Company and its Subsidiaries, interest expense arising pursuant to
Permitted Timberland Indebtedness or Permitted Additional Timberland
Indebtedness (as determined and consolidated in accordance with GAAP).

               TRANSFEROR LENDER shall mean the selling Lender pursuant to an
Assignment and Assumption Agreement.

               USA PATRIOT ACT shall mean the Uniting and Strengthening America
by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act
of 2001, Public Law 107-56, as the same has been, or shall hereafter be,
renewed, extended, amended or replaced.

               WEBSITE POSTING shall have the meaning assigned to that term in
Section 10.6.

          1.2 CONSTRUCTION.

               Unless the context of this Agreement otherwise clearly requires,
the following rules of construction shall apply to this Agreement and each of
the other Loan Documents:

               1.2.1 NUMBER; INCLUSION.

               References to the plural include the singular, the plural, the
part and the whole; "or" has the inclusive meaning represented by the phrase
"and/or," and "including" has the meaning represented by the phrase "including
without limitation";

               1.2.2 DETERMINATION.

               References to "determination" of or by the Administrative Agent
or the Lenders shall be deemed to include good-faith estimates by the
Administrative Agent or the Lenders (in the case of quantitative determinations)
and good-faith judgment by the Administrative Agent or the Lenders (in the case
of qualitative determinations) and such determination shall be conclusive absent
manifest error;

               1.2.3 ADMINISTRATIVE AGENT'S DISCRETION AND CONSENT.

               Whenever the Administrative Agent or the Lenders are granted the
right herein to act in its or their sole discretion or to grant or withhold
consent such right shall be exercised in good faith;

               1.2.4 DOCUMENTS TAKEN AS A WHOLE.

               The words "hereof," "herein," "hereunder," "hereto" and similar
terms in this Agreement or any other Loan Document refer to this Agreement or
such other Loan

                                       28

<PAGE>

Document as a whole and not to any particular provision of this Agreement or
such other Loan Document;

               1.2.5 HEADINGS.

               The section and other headings contained in this Agreement or
such other Loan Document and the Table of Contents (if any), preceding this
Agreement or such other Loan Document are for reference purposes only and shall
not control or affect the construction of this Agreement or such other Loan
Document or the interpretation thereof in any respect;

               1.2.6 IMPLIED REFERENCES TO THIS AGREEMENT.

               Article, section, subsection, clause, schedule and exhibit
references are to this Agreement or other Loan Document, as the case may be,
unless otherwise specified;

               1.2.7 PERSONS.

               Reference to any Person includes such Person's successors and
assigns but, if applicable, only if such successors and assigns are permitted by
this Agreement or such other Loan Document, as the case may be, and reference to
a Person in a particular capacity excludes such Person in any other capacity;

               1.2.8 MODIFICATIONS TO DOCUMENTS.

               Reference to any agreement (including this Agreement and any
other Loan Document together with the schedules and exhibits hereto or thereto),
document or instrument means such agreement, document or instrument as amended,
modified, replaced, substituted for, superseded or restated;

               1.2.9 FROM, TO AND THROUGH.

               Relative to the determination of any period of time, "from" means
"from and including," "to" means "to but excluding," and "through" means
"through and including";

               1.2.10 SHALL; WILL.

               References to "shall" and "will" are intended to have the same
meaning; and

               1.2.11 QUEBEC MATTERS.

               For purposes of any assets, liabilities or entities located in
the Province of Quebec and for all other purposes pursuant to which the
interpretation or construction of this Agreement may be subject to the laws of
the Province of Quebec or a court or tribunal exercising jurisdiction in the
Province of Quebec, (a) "personal property" shall include "movable property",
(b) "real property" or "real estate" shall include "immovable property", (c)
"tangible property" shall include "corporeal property", (d) "intangible
property" shall include "incorporeal

                                       29
<PAGE>

property", (e) "security interest", "mortgage" and "lien" shall include a
"hypothec", "right of retention", "prior claim" and a resolutory clause, (f) all
references to filing, perfection, priority, remedies, registering or recording
under the Uniform Commercial Code or a Personal Property Security Act shall
include publication under the Civil Code of Quebec, (g) all references to
"perfection" of or "perfected" liens or security interest shall include a
reference to an "opposable" or "set up" lien or security interest as against
third parties, (h) any "right of offset", "right of setoff" or similar
expression shall include a "right of compensation", (i) "goods" shall include
"corporeal movable property" other than chattel paper, documents of title,
instruments, money and securities, (j) an "agent" shall include a "mandatary",
(k) "construction liens" shall include "legal hypothecs"; (l) "joint and
several" shall include "solidary"; (m) "gross negligence or willful misconduct"
shall be deemed to be "intentional or gross fault"; (n) "beneficial ownership"
shall include "ownership on behalf of another as mandatary"; (o) "easement"
shall include "servitude"; (p) "priority" shall include "prior claim"; (q)
"survey" shall include "certificate of location and plan"; (r) "state" shall
include "province"; (s) "fee simple title" shall include "absolute ownership";
(t) "accounts" shall include "claims". The parties hereto confirm that it is
their wish that this Agreement and any other document executed in connection
with the transactions contemplated herein be drawn up in the English language
only and that all other documents contemplated thereunder or relating thereto,
including notices, may also be drawn up in the English language only. Les
parties aux presentes confirment que c'est leur volonte que cette convention et
les autres documents de credit soient rediges en langue anglaise seulement et
que tous les documents, y compris tous avis, envisages par cette convention et
les autres documents peuvent etre rediges en langue anglaise seulement.

          1.3 ACCOUNTING PRINCIPLES.

               Except as otherwise provided in this Agreement, all computations
and determinations as to accounting or financial matters and all financial
statements to be delivered pursuant to this Agreement shall be made and prepared
in accordance with GAAP (including principles of consolidation where
appropriate), and all accounting or financial terms shall have the meanings
ascribed to such terms by GAAP; provided, however, that all accounting terms
used in Sections 7.2.15 and 7.2.16 (and all defined terms used in the definition
of any accounting term used in Sections 7.2.15 and 7.2.16 shall have the meaning
given to such terms (and defined terms) under GAAP as in effect on the date
hereof applied on a basis consistent with those used in preparing the Annual
Statements referred to in Section 7.3.2. If the Company notifies the
Administrative Agent and the Lenders in writing ("NOTICE OF CHANGE IN GAAP")
that the Company requests an amendment to any financial or accounting provision
hereof to eliminate the effect of, or give effect to, any change occurring after
the Closing Date to GAAP or in the application thereof on the operation of such
financial or accounting provision, unless the Administrative Agent (on its
behalf or as directed in writing by the Required Lenders) shall have objected
("GAAP OBJECTION NOTICE") to such request within 15 Business Days after receipt
of such Notice of Change in GAAP, the relevant financial and accounting
provisions shall be calculated in accordance with GAAP as in effect on the date
of such Notice of Change in GAAP to the Administrative Agent and the Lenders and
each Lender and the Administrative Agent hereby specifically consents to the
implementation of such change hereunder upon the foregoing

                                       30
<PAGE>

terms. In the event the Administrative Agent shall have delivered a GAAP
Objection Notice to the Company, the parties hereto agree to endeavor, in good
faith, to agree upon an amendment to this Agreement that would adjust such
financial or accounting provision in a manner that would give effect to such
change hereunder determined in accordance with the Company's financial
statements at that time; provided, further, that for purposes of the calculation
of the financial covenants in Sections 7.2.15 and 7.2.16, the adjustments to
income and expense of the Loan Parties (and any other adjustments) resulting
from the promulgation of Statement of Financial Accounting Standards ("SFAS")
No. 158 shall be disregarded.

                  2. REVOLVING CREDIT AND SWING LOAN FACILITIES

          2.1 REVOLVING CREDIT COMMITMENTS.

               2.1.1 REVOLVING CREDIT LOANS.

                    2.1.1.1 COMMITMENT.

               Subject to the terms and conditions hereof and relying upon the
representations and warranties herein set forth, each Lender holding any
Revolving Credit Commitment severally agrees to make Revolving Credit Loans in
either Dollars or one or more Optional Currencies to the Borrowers at any time
or from time to time on or after the date hereof to the Expiration Date,
provided that (i) after giving effect to each such Loan the aggregate Dollar
Equivalent amount of Revolving Credit Loans from such Lender shall not exceed
such Lender's Revolving Credit Commitment minus such Lender's Revolving Credit
Ratable Share of the Dollar Equivalent amount of Letters of Credit Outstanding,
and (ii) no Revolving Credit Loan to which the Base Rate Option applies shall be
made in an Optional Currency. Within such limits of time and amount and subject
to the other provisions of this Agreement, the Borrowers may borrow, repay and
reborrow pursuant to this Section 2.1. The Borrowers, jointly and severally,
subject to Section 10.18 (if applicable), shall repay in full the outstanding
principal amount of the Revolving Credit Loans, together with all accrued
interest thereon and all fees and other amounts owing under any of the Loan
Documents relating thereto on the Expiration Date or earlier termination of the
Revolving Credit Commitments in connection with the terms hereof.

                    2.1.1.2 DISCRETIONARY COMMITMENT INCREASE.

               Provided that no Event of Default or Potential Default is then
occurring or would be caused thereby, at any time prior to the Expiration Date
and subsequent to the Closing Date, the Borrowers may request from time to time
in writing to the Administrative Agent that the Revolving Credit Commitments be
increased, by an amount being an integral multiple of $5,000,000.00 and in an
aggregate amount not greater than $75,000,000.00, according to the following
procedures:

                         (i) The Borrowers shall offer for a period of fifteen
(15) Business Days the existing Lenders the opportunity to participate in any
such increased amount of the Revolving Credit Commitments (such increased amount
being referred to as the

                                       31

<PAGE>

"COMMITMENT INCREASE AMOUNT") in accordance with each Lender's Revolving Credit
Ratable Share (each participating Lender being referred to as an "INCREASING
LENDER"). The existing Lenders shall be under no obligation to participate in
any such Commitment Increase Amounts and any agreement by any Lender to so
participate will be in the sole discretion of such Lender.

                         (ii) If any Lender declines to commit to its Revolving
Credit Ratable Share of any such Commitment Increase Amount (such declined
portion of the Commitment Increase Amount being referred to as a "DECLINED
SHARE"), then the Administrative Agent may join a new bank(s) or financial
institution(s) to this Agreement, which shall be acceptable to the Borrowers, or
the Borrowers may propose a new bank(s) or financial institution(s) which shall
be approved by the Administrative Agent in its reasonable discretion without
unreasonable delay (each such bank or financial institution, an "AUGMENTING
LENDER"), or permit an Increasing Lender which has already agreed to commit to
its Revolving Credit Ratable Share of any such Commitment Increase Amount, to
commit to the Declined Share or portion thereof, with respect to any Augmenting
Lender, in an amount of at least $5,000,000. Each Augmenting Lender committing
to a Declined Share, or a portion thereof, shall join this Agreement as a Lender
by entering into a bank joinder and assumption agreement in form and substance
reasonably satisfactory to the Administrative Agent, setting forth the Revolving
Credit Commitment of such Augmenting Lender, pursuant to which such Augmenting
Lender will become a Lender as of the effective date thereof.

                         (iii) On the effective date of any increase in the
Revolving Credit Commitments as contemplated herein (A) each Increasing Lender
and new Augmenting Lender shall make available to the Administrative Agent, for
the benefit of the other Lenders, such amounts, in immediately available funds,
as the Administrative Agent shall determine as being required in order to cause,
after giving effect to such increase and the use of such amounts to make
payments to such other Lenders, each Lender's portion of the outstanding
Revolving Credit Loans of all the Lenders to equal its Revolving Credit Ratable
Share of the Revolving Credit Commitments (after giving effect to the increase
in the Revolving Credit Commitments occasioned by the addition of the Increasing
Lender(s) or Augmenting Lender(s), or both, as the case may be) and (B) the
Borrowers shall be deemed to have repaid and reborrowed all outstanding
Revolving Loans as of the date of any increase in the Revolving Credit
Commitments (with such reborrowing to consist of Revolving Credit Loans subject
to the same interest rate options provided herein, with related Interest Periods
if applicable, specified in a notice delivered by the Borrowers in accordance
with the requirements of Section 3.2). The deemed payments made pursuant to
clause (B) of the immediately preceding sentence in respect of each Revolving
Credit Loan to which a Euro-Rate Option applies shall be subject to
indemnification by the Borrowers pursuant to the provisions of Section 4.6.2 if
the deemed payment occurs other than on the last day of the related Interest
Periods. Upon the request of the Administrative Agent, the Borrowers shall
execute and deliver to the Administrative Agent for the benefit of the Lenders
any and all Notes and other documents, instruments, and agreements necessary or
advisable in the reasonable judgment of the Administrative Agent to evidence or
document the increase in the Revolving Credit Commitments, including any
amendments hereto, and each of the Lenders and each of the Loan Parties hereby
provides its consent hereto and thereto, and each Lender hereby authorizes the
Administrative Agent, and each Loan Party

                                       32

<PAGE>

hereby authorizes the Company, to execute any such documents, instruments, and
agreements consistent with the terms of this Section on its behalf without the
necessity of any further consent of any Lender or Loan Party.

               2.1.2 SWING LOAN COMMITMENT.

               Subject to the terms and conditions hereof and relying upon the
representations and warranties herein set forth, and in order to facilitate
loans and repayments between Settlement Dates, PNC Bank may, at its option,
cancelable at any time for any reason whatsoever, make swing loans (the "SWING
LOANS") to the Borrowers at any time or from time to time after the date hereof
to, but not including, the Expiration Date, in an aggregate principal amount up
to but not in excess of $20,000,000.00 (the "SWING LOAN COMMITMENT"), provided
that the aggregate principal amount of PNC Bank's Swing Loans and the Revolving
Credit Loans of all the Lenders at any one time outstanding shall not exceed the
Revolving Credit Commitments of all the Lenders. Within such limits of time and
amount and subject to the other provisions of this Agreement, the Borrowers may
borrow, repay and reborrow pursuant to this Section 2.1.2.

          2.2 NATURE OF LENDERS' OBLIGATIONS WITH RESPECT TO REVOLVING CREDIT
LOANS.

               Each Lender shall be obligated to participate in each request for
Revolving Credit Loans pursuant to Section 2.4 in accordance with its Revolving
Credit Ratable Share. The aggregate Dollar Equivalent amount of each Lender's
Revolving Credit Loans outstanding hereunder to the Borrowers at any time shall
never exceed its Revolving Credit Commitment minus its Revolving Credit Ratable
Share of the Dollar Equivalent amount of Letters of Credit Outstanding. The
obligations of each Lender hereunder are several. The failure of any Lender to
perform its obligations hereunder shall not affect the Obligations of the
Borrowers to any other party nor shall any other party be liable for the failure
of such Lender to perform its obligations hereunder. The Lenders shall have no
obligation to make Revolving Credit Loans hereunder on or after the Expiration
Date.

          2.3 COMMITMENT FEES.

               Accruing from the date hereof until the Expiration Date, the
Borrowers agree to pay to the Administrative Agent in Dollars for the account of
each Lender, as consideration for such Lender's Revolving Credit Commitment
hereunder, a nonrefundable commitment fee (the "COMMITMENT FEE") equal to the
Applicable Commitment Fee Rate (computed on the basis of a year of 360 days, and
actual days elapsed) on the average daily difference between the amount of (i)
such Lender's Revolving Credit Commitment as the same may be constituted from
time to time (for purposes of this computation, PNC Bank's Swing Loans shall be
deemed to be borrowed amounts under its Revolving Credit Commitment) and (ii)
the sum of the Dollar Equivalent amount of such Lender's Revolving Credit Loans
outstanding plus its Revolving Credit Ratable Share of the Dollar Equivalent
amount of Letters of Credit Outstanding, in each case as determined during the
preceding fiscal quarter (or shorter period commencing with the Closing Date or
ending on the Expiration Date). All Commitment

                                       33

<PAGE>

Fees shall be payable quarterly in arrears on the first day of each July,
October, January and April after the date hereof and on the Expiration Date or
upon acceleration of the Loan.

          2.4 REVOLVING CREDIT LOAN REQUESTS.

               2.4.1 REVOLVING CREDIT LOAN REQUESTS.

               Except as otherwise provided herein, the Borrowers may from time
to time prior to the Expiration Date request the Lenders to make Revolving
Credit Loans, or renew or convert the Interest Rate Option applicable to
existing Revolving Credit Loans pursuant to Section 3.2, by delivering to the
Administrative Agent, not later than 10:30 a.m., Pittsburgh time, (i) three (3)
Business Days prior to the proposed Borrowing Date with respect to the making of
Revolving Credit Loans in Dollars to which the Euro-Rate Option applies or the
conversion to or the renewal of the Euro-Rate Option for any such Loans and four
(4) Business Days prior to the proposed Borrowing Date with respect to the
making of Revolving Credit Loans in an Optional Currency or the date of
conversion to or renewal of the Euro-Rate Option for Revolving Credit Loans in
an Optional Currency and (ii) on either the proposed Borrowing Date (which shall
be a Business Day) with respect to the making of a Revolving Credit Loan to
which the Base Rate Option applies or the last day of the preceding Interest
Period with respect to the conversion to the Base Rate Option for any Loan, of a
duly completed request therefor substantially in the form of EXHIBIT 2.4 or a
request by telephone immediately confirmed in writing by letter, facsimile or
telex in such form (each, a "LOAN REQUEST"), it being understood that the
Administrative Agent may rely on the authority of any individual making such a
telephonic request without the necessity of receipt of such written
confirmation. Each Loan Request shall be irrevocable and shall specify (i) the
proposed Borrowing Date; (ii) the aggregate amount of the proposed Loans
(expressed in the currency in which such Loans shall be funded) comprising each
Borrowing Tranche, the Dollar Equivalent amount of which shall be in integral
multiples of $100,000.00 and not less than $2,000,000.00 for each Borrowing
Tranche to which the Euro-Rate Option applies and not less than the lesser of
$2,000,000.00 and the maximum amount available for Borrowing Tranches to which
the Base Rate Option applies; (iii) whether the Euro-Rate Option or Base Rate
Option shall apply to the proposed Revolving Credit Loans comprising the
applicable Borrowing Tranche; (iv) the currency in which such Loans shall be
funded if the Borrower is electing the Euro-Rate Option; and (v) in the case of
a Borrowing Tranche to which the Euro-Rate Option applies, an appropriate
Interest Period for the Loans comprising such Borrowing Tranche.

               2.4.2 SWING LOAN REQUESTS.

               Except as otherwise provided herein, the Borrowers may from time
to time prior to the Expiration Date request PNC Bank to make Swing Loans by
delivery to PNC Bank not later than 10:30 a.m. Pittsburgh time on the proposed
Borrowing Date of a duly completed request therefor substantially in the form of
EXHIBIT 2.4 hereto or a request by telephone immediately confirmed in writing by
letter, facsimile or telex (each, a "SWING LOAN REQUEST"), it being understood
that PNC Bank may rely on the authority of any individual making such a
telephonic request without the necessity of receipt of such written
confirmation.

                                       34

<PAGE>

Each Swing Loan Request shall be irrevocable and shall specify the proposed
Borrowing Date and the principal amount of such Swing Loan, which shall be not
less than $500,000.00.

          2.5 MAKING REVOLVING CREDIT LOANS AND SWING LOANS; REVOLVING CREDIT
NOTES AND SWING NOTES.

               2.5.1 MAKING REVOLVING CREDIT LOANS.

               Promptly after receipt by the Administrative Agent of a Loan
Request pursuant to Section 2.4, the Administrative Agent shall notify the
Lenders of its receipt of such Loan Request specifying: (i) the proposed
Borrowing Date and the time and method of disbursement of the Revolving Credit
Loans requested thereby; (ii) the amount and type of each such Revolving Credit
Loan and the applicable Interest Period (if any); (iii) the apportionment among
the Lenders of such Revolving Credit Loans as determined by the Administrative
Agent in accordance with Section 2.2; and (iv) the currency in which Revolving
Credit Loan is requested. Each Lender shall remit the principal amount of each
Revolving Credit Loan in the requested currency to the Administrative Agent such
that the Administrative Agent is able to, and the Administrative Agent shall, to
the extent the Lenders have made funds available to it for such purpose and
subject to Section 6.2, fund such Revolving Credit Loans to the Borrowers in
U.S. Dollars and immediately available funds at the Principal Office prior to
2:00 p.m., Pittsburgh time, on the applicable Borrowing Date, provided that if
any Lender fails to remit such funds to the Administrative Agent in a timely
manner, the Administrative Agent may elect, in its sole discretion, to fund with
its own funds the Revolving Credit Loans of such Lender on such Borrowing Date,
and such Lender shall be subject to the repayment obligation in Section 9.16.

               2.5.2 MAKING SWING LOANS.

               So long as PNC Bank elects to make Swing Loans, PNC Bank shall,
after receipt by it of a Swing Loan Request pursuant to Section 2.4.2, fund such
Swing Loan to the Borrowers in Dollars and immediately available funds at the
Principal Office prior to three (3) o'clock p.m. Pittsburgh time on the
Borrowing Date.

          2.6 REVOLVING CREDIT NOTES.

               The obligation of the Borrowers to repay the aggregate unpaid
principal amount of the Revolving Credit Loans made to it by each Lender,
together with interest thereon, shall be evidenced by a Revolving Credit Note
dated the Closing Date payable to the order of such Lender in a face amount
equal to the Revolving Credit Commitment of such Lender.

          2.7 SWING LOAN NOTE.

               The obligation of the Borrowers to repay the unpaid principal
amount of the Swing Loans made to it by PNC Bank together with interest thereon
shall be evidenced by the Swing Loan Note payable to the order of PNC Bank in a
face amount equal to the Swing Loan Commitment.

                                       35

<PAGE>

          2.8 BORROWINGS TO REPAY SWING LOANS.

               PNC Bank may, at its option, exercisable at any time for any
reason whatsoever, demand repayment of the Swing Loans, and each Lender shall
make a Revolving Credit Loan in an amount equal to such Lender's Revolving
Credit Ratable Share of the aggregate principal amount of the outstanding Swing
Loans, plus, if PNC Bank so requests, accrued interest thereon, provided that no
Lender shall be obligated in any event to make any Revolving Credit Loan if
after giving effect thereto, the sum of the Dollar Equivalent amount of its
Revolving Credit Loans plus such Lender's Revolving Credit Ratable Share of the
Dollar Equivalent amount of Letters of Credit Outstanding exceeds its Revolving
Credit Commitment. Revolving Credit Loans made pursuant to the preceding
sentence shall bear interest at the Base Rate Option and shall be deemed to have
been properly requested in accordance with Section 2.4.1 without regard to any
of the requirements of that provision. PNC Bank shall provide notice to the
Lenders (which may be telephonic or written notice by letter, facsimile or
telex) that such Revolving Credit Loans are to be made under this Section 2.8
and of the apportionment among the Lenders, and the Lenders shall be
unconditionally obligated to fund such Revolving Credit Loans (whether or not
the conditions specified in Section 6.2 are then satisfied) by the time PNC Bank
so requests, which shall not be earlier than 3:00 p.m. Pittsburgh time on the
next Business Day after the date the Lenders receive such notice from PNC Bank.

          2.9 UTILIZATION OF COMMITMENTS IN OPTIONAL CURRENCIES.

               2.9.1 PERIODIC COMPUTATIONS OF DOLLAR EQUIVALENT AMOUNTS OF
REVOLVING CREDIT LOANS AND LETTERS OF CREDIT OUTSTANDING.

               The Administrative Agent will determine the Dollar Equivalent
amount of (i) proposed Letters of Credit to be denominated in an Optional
Currency as of the requested Borrowing Date or date of issuance, as the case may
be, (ii) Letters of Credit Outstanding denominated in an Optional Currency as of
the last Business Day of each month, and (iii) outstanding Revolving Credit
Loans denominated in an Optional Currency as of the end of each Interest Period
(each such date under clauses (i) through (iii), a "COMPUTATION DATE").

               2.9.2 NOTICES FROM LENDERS THAT OPTIONAL CURRENCIES ARE
UNAVAILABLE TO FUND NEW LOANS.

               The Lenders shall be under no obligation to make the Revolving
Credit Loans requested by the Borrowers which are denominated in an Optional
Currency if any Lender notifies the Administrative Agent by 5:00 p.m.
(Pittsburgh time) four (4) Business Days prior to the Borrowing Date for such
Revolving Credit Loans that such Lender cannot provide its Revolving Credit
Ratable Share of such Revolving Credit Loans in such Optional Currency. In the
event the Administrative Agent timely receives a notice from a Lender pursuant
to the preceding sentence, the Administrative Agent will notify the Borrowers no
later than 12:00 noon (Pittsburgh time) three (3) Business Days prior to the
Borrowing Date for such Revolving Credit Loans that the Optional Currency is not
then available for such Revolving Credit Loans, and the Administrative Agent
shall promptly thereafter notify the Lenders of the same and the Lenders

                                       36

<PAGE>

shall not make such Revolving Credit Loans requested by the Borrowers under
their Loan Request.

               2.9.3 NOTICES FROM LENDERS THAT OPTIONAL CURRENCIES ARE
UNAVAILABLE TO FUND RENEWALS OF THE EURO-RATE OPTION.

               If the Borrowers deliver a Loan Request requesting that the
Lenders renew the Euro-Rate Option with respect to an outstanding Borrowing
Tranche of Revolving Credit Loans denominated in an Optional Currency, the
Lenders shall be under no obligation to renew such Euro-Rate Option if any
Lender delivers to the Administrative Agent a notice by 5:00 p.m. (Pittsburgh
time) four (4) Business Days prior to the effective date of such renewal that
such Lender cannot continue to provide Revolving Credit Loans in such Optional
Currency. In the event the Administrative Agent timely receives a notice from a
Lender pursuant to the preceding sentence, the Administrative Agent will notify
the Borrowers no later than 12:00 noon (Pittsburgh time) three (3) Business Days
prior to the renewal date that the renewal of such Revolving Credit Loans in
such Optional Currency is not then available, and the Administrative Agent shall
promptly thereafter notify the Lenders of the same. If the Administrative Agent
shall have so notified the Borrowers that any such continuation of such
Revolving Credit Loans in such Optional Currency is not then available, any
notice of renewal with respect thereto shall be deemed withdrawn, and such Loans
shall be redenominated into Loans in Dollars at the Base Rate Option or
Euro-Rate Option, at the Company's option on behalf of the Borrowers (subject,
in the case of the Euro-Rate Option, to compliance with Section 2.4.), with
effect from the last day of the Interest Period with respect to any such Loans.
The Administrative Agent will promptly notify the Borrowers and the Lenders of
any such redenomination, and in such notice, the Administrative Agent will state
the aggregate Dollar Equivalent amount of the redenominated Revolving Credit
Loans in an Optional Currency as of the applicable Computation Date with respect
thereto and such Lender's Revolving Credit Ratable Share thereof.

               2.9.4 EUROPEAN MONETARY UNION.

                    2.9.4.1 PAYMENTS IN EUROS UNDER CERTAIN CIRCUMSTANCES.

               If (i) any Optional Currency ceases to be lawful currency of the
nation issuing the same and is replaced by the Euro or (ii) any Optional
Currency and the Euro are at the same time recognized by any governmental
authority of the nation issuing such currency as lawful currency of such nation
and the Administrative Agent or the Required Lenders shall so request in a
notice delivered to the Borrowers, then any amount payable hereunder by any
party hereto in such Optional Currency shall instead by payable in the Euro and
the amount so payable shall be determined by translating the amount payable in
such Optional Currency to the Euro at the exchange rate established by that
nation for the purpose of implementing the replacement of the relevant Optional
Currency by the Euro (and the provisions governing payments in Optional
Currencies in this Agreement shall apply to such payment in the Euro as if such
payment in the Euro were a payment in an Optional Currency). Prior to the
occurrence of the event or events described in clause (i) or (ii) of the
preceding sentence, each amount payable hereunder in any

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Optional Currency will, except as otherwise provided herein, continue to be
payable only in that currency.

                    2.9.4.2 ADDITIONAL COMPENSATION UNDER CERTAIN CIRCUMSTANCES.

               The Borrowers agree, at the request of any Lender, to compensate
such Lender for any loss, cost, expense or reduction in return that such Lender
shall reasonably determine shall be incurred or sustained by such Lender as a
result of the replacement of any Optional Currency by the Euro and that would
not have been incurred or sustained but for the transactions provided for
herein. A certificate of any Lender setting forth such Lender's determination of
the amount or amounts necessary to compensate such Lender shall be delivered to
the Borrowers and shall be conclusive absent manifest error so long as such
determination is made on a reasonable basis. The Borrowers shall pay such Lender
the amount shown as due on any such certificate within ten (10) days after
receipt thereof.

               2.9.5 REQUESTS FOR ADDITIONAL OPTIONAL CURRENCIES.

               The Borrowers may deliver to the Administrative Agent a written
request that Revolving Credit Loans hereunder also be permitted to be made in
any other lawful currency (other than Dollars), in addition to the currencies
specified in the definition of "Optional Currency" herein provided that such
currency must be freely traded in the offshore interbank foreign exchange
markets, freely transferable, freely convertible into Dollars and available to
the Lenders in the Relevant Interbank Market. The Administrative Agent will
promptly notify the Lenders of any such request promptly after the
Administrative Agent receives such request. The Administrative Agent and each
Lender may grant or accept such request in their sole discretion. The
Administrative Agent will promptly notify the Borrowers of the acceptance or
rejection by the Administrative Agent and each of the Lenders of the Borrowers'
request. The requested currency shall be approved as an Optional Currency
hereunder only if the Administrative Agent and all of the Lenders approve of the
Borrowers' request.

          2.10 USE OF PROCEEDS.

               The proceeds of the Revolving Credit Loans shall be used for (i)
refinancing amounts outstanding under the Prior Senior Credit Facility, and (ii)
general corporate purposes, including financing working capital and Permitted
Acquisitions.

          2.11 LETTER OF CREDIT SUBFACILITY.

               2.11.1 ISSUANCE OF LETTERS OF CREDIT.

               The Borrowers may request the issuance of a letter of credit
(each such letter of credit and each Existing Letter of Credit, a "LETTER OF
CREDIT") on behalf of itself, another Loan Party or any of their respective
Subsidiaries (provided that a Loan Party shall be the obligor with respect
thereto) by delivering or having such other Loan Party deliver to the

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Administrative Agent a completed application and agreement for letters of credit
in such form as the Administrative Agent may specify from time to time by no
later than 10:00 a.m., Pittsburgh time, at least four (4) Business Days, or such
shorter period as may be agreed to by the Administrative Agent, in advance of
the proposed date of issuance. Each Letter of Credit shall be a Standby Letter
of Credit or Commercial Letter of Credit and may be denominated in either
Dollars or an Optional Currency. Subject to the terms and conditions hereof and
in reliance on the agreements of the other Lenders set forth in this Section
2.11, the Administrative Agent or any of the Administrative Agent's Affiliates
will issue a Letter of Credit provided that each Letter of Credit shall (A) have
a maximum maturity of twelve (12) months from the date of issuance, and (B) in
no event expire later than five (5) Business Days prior to the Expiration Date
and providing that in no event shall (i) the Dollar Equivalent amount of Letters
of Credit Outstanding exceed, at any one time, $20,000,000.00, or (ii) the
Dollar Equivalent Revolving Facility Usage exceed, at any one time, the
Revolving Credit Commitments. The Existing Letters of Credit shall be deemed to
have been issued hereunder.

               2.11.2 LETTER OF CREDIT FEES.

               The Borrowers shall pay in Dollars (i) to the Administrative
Agent for the ratable account of the Lenders a fee (the "LETTER OF CREDIT FEE")
equal to the Applicable Margin then in effect for Revolving Credit Loans subject
to the Euro-Rate Option, per annum, and (ii) to the Administrative Agent, for
its own account or the account of any applicable Issuing Lender, a fronting fee
equal to 0.125% per annum (each computed on the basis of a year of 360 days and
actual days elapsed), which fees shall be computed on the daily average Dollar
Equivalent amount of Letters of Credit Outstanding during the preceding fiscal
quarter (or shorter period commencing with the Closing Date or ending with the
Expiration Date) and shall be payable quarterly in arrears commencing with the
first day of each July, October, January and April following issuance of each
Letter of Credit and on the Expiration Date. The Borrowers shall also pay to the
Administrative Agent in Dollars for the Administrative Agent's sole account the
Administrative Agent's then in effect customary fees and administrative expenses
payable with respect to the Letters of Credit as the Administrative Agent may
generally charge or incur from time to time in connection with the issuance,
maintenance, modification (if any), assignment or transfer (if any),
negotiation, and administration of Letters of Credit.

               2.11.3 DISBURSEMENTS, REIMBURSEMENT.

                    2.11.3.1 Immediately upon the issuance of each Letter of
Credit (and with respect to the Existing Letters of Credit, on the Closing
Date), each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from the Administrative Agent a
participation in such Letter of Credit and each drawing thereunder in an amount
equal to such Lender's Revolving Credit Ratable Share of the maximum amount
available to be drawn under such Letter of Credit and the amount of such
drawing, respectively.

                    2.11.3.2 In the event of any request for a drawing under a
Letter of Credit by the beneficiary or transferee thereof, the Administrative
Agent will promptly notify the Borrowers. Provided that it shall have received
such notice, the Borrowers shall reimburse (such obligation to reimburse the
Administrative Agent, for its benefit or the benefit

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<PAGE>

of a Lender who has issued an Existing Letter of Credit (an "ISSUING LENDER"),
as applicable, shall sometimes be referred to as a "REIMBURSEMENT OBLIGATION")
the Administrative Agent in Dollars prior to 12:00 noon, Pittsburgh time on each
date that an amount is paid by the Administrative Agent under any Letter of
Credit (each such date, a "DRAWING DATE") in an amount equal to the Dollar
Equivalent amount so paid by the Administrative Agent or the applicable Issuing
Lender. In the event the Borrowers fail to reimburse the Administrative Agent or
the applicable Issuing Lender for the full Dollar Equivalent amount of any
drawing under any Letter of Credit by 12:00 noon, Pittsburgh time, on the
Drawing Date, the Administrative Agent will promptly notify each Lender thereof,
and the Borrowers shall be deemed to have requested that Revolving Credit Loans
be made by the Lenders in Dollars under the Base Rate Option in an amount equal
to the Dollar Equivalent amount of such drawing to be disbursed on the Drawing
Date under such Letter of Credit, subject to the amount of the unutilized
portion of the Revolving Credit Commitment and subject to the conditions set
forth in Section 6.2 other than any notice requirements. Any notice given by the
Administrative Agent pursuant to this Section 2.11.3.2 may be oral if
immediately confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such
notice.

                    2.11.3.3 Each Lender shall upon any notice pursuant to
Section 2.11.3.2 make available to the Administrative Agent, for its benefit or
the benefit of the applicable Issuing Lender, an amount in Dollars in
immediately available funds equal to its Revolving Credit Ratable Share of the
Dollar Equivalent amount of the drawing (whether or not the conditions set forth
in Section 6.2 shall have been satisfied), whereupon the participating Lenders
shall (subject to Section 2.11.3.4) each be deemed to have made a Revolving
Credit Loan in Dollars under the Base Rate Option to the Borrowers in that
amount. If any Lender so notified fails to make available in Dollars to the
Administrative Agent for the account of the Administrative Agent or the
applicable Issuing Lender the amount of such Lender's Revolving Credit Ratable
Share of such Dollar Equivalent amount by no later than 2:00 p.m., Pittsburgh
time on the Drawing Date, then interest shall accrue on such Lender's obligation
to make such payment, from the Drawing Date to the date on which such Lender
makes such payment (i) at a rate per annum equal to the Federal Funds Effective
Rate during the first three (3) days following the Drawing Date and (ii) at a
rate per annum equal to the rate applicable to Loans under the Base Rate Option
on and after the fourth day following the Drawing Date. The Administrative Agent
will promptly give notice of the occurrence of the Drawing Date, but failure of
the Administrative Agent to give any such notice on the Drawing Date or in
sufficient time to enable any Lender to effect such payment on such date shall
not relieve such Lender from its obligation under this Section 2.11.3.3.

                    2.11.3.4 With respect to any unreimbursed drawing that is
not converted into Revolving Credit Loans under the Base Rate Option to the
Borrowers in whole or in part as contemplated by Section 2.11.3.2, because of
the Borrowers' failure to satisfy the conditions set forth in Section 6.2 other
than any notice requirements or for any other reason, the Borrowers shall be
deemed to have incurred from the Administrative Agent or the applicable Issuing
Lender a borrowing (each a "LETTER OF CREDIT BORROWING") in Dollars in the
Dollar Equivalent amount of such drawing. Such Letter of Credit Borrowing shall
be due and payable

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<PAGE>

on demand (together with interest) and shall bear interest at the rate per annum
applicable to the Revolving Credit Loans under the Base Rate Option. Each
Lender's payment to the Administrative Agent pursuant to Section 2.11.3.3 shall
be deemed to be a payment in respect of its participation in such Letter of
Credit Borrowing and shall constitute a "PARTICIPATION ADVANCE" from such Lender
in satisfaction of its participation obligation under this Section 2.11.3.

               2.11.4 REPAYMENT OF PARTICIPATION ADVANCES.

                    2.11.4.1 Upon (and only upon) receipt by the Administrative
Agent or the applicable Issuing Lender for its account (as applicable) of
immediately available funds from the Borrowers (i) in payment of any Letter of
Credit Borrowing made by the Administrative Agent or the applicable Issuing
Lender under the Letter of Credit with respect to which any Lender has made a
Participation Advance to the Administrative Agent, or (ii) in payment of
interest on such a payment made by the Administrative Agent or the applicable
Issuing Lender under such a Letter of Credit, the Administrative Agent or the
applicable Issuing Lender will pay to each Lender, in the same funds as those
received by the Administrative Agent or the applicable Issuing Lender, the
amount of such Lender's Revolving Credit Ratable Share of such funds, except the
Administrative Agent or the applicable Issuing Lender shall retain the amount of
the Revolving Credit Ratable Share of such funds of any Lender that did not make
a Participation Advance in respect of such payment by Administrative Agent.

                    2.11.4.2 If the Administrative Agent or any Issuing Lender
is required at any time to return to any Loan Party, or to a trustee, receiver,
liquidator, custodian, or any official in any Insolvency Proceeding, any portion
of the payments made by any Loan Party to the Administrative Agent or such
Issuing Lender pursuant to Section 2.11.4.1 in reimbursement of a payment made
under the Letter of Credit or interest or fee thereon, each Lender shall, on
demand of the Administrative Agent, forthwith return to the Administrative
Agent, for its account or the account of such Issuing Lender (as applicable),
the amount of its Revolving Credit Ratable Share of any amounts so returned by
the Administrative Agent or such Issuing Lender (as applicable) plus interest
thereon from the date such demand is made to the date such amounts are returned
by such Lender to the Administrative Agent or such Issuing Lender, at a rate per
annum equal to the Federal Funds Effective Rate in effect from time to time.

               2.11.5 DOCUMENTATION.

               Each Loan Party agrees to be bound by the terms of the
Administrative Agent's and each Issuing Lender's application and agreement for
letters of credit and the Administrative Agent's and each Issuing Lender's
written regulations and customary practices relating to letters of credit,
though such interpretation may be different from such Loan Party's own. In the
event of a conflict between such application or agreement and this Agreement,
this Agreement shall govern. It is understood and agreed that, except in the
case of its own gross negligence or willful misconduct, the Administrative Agent
and each Issuing Lender shall not be liable for any error, negligence and/or
mistakes, whether of omission or commission, in

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<PAGE>

following any Loan Party's instructions or those contained in the Letters of
Credit or any modifications, amendments or supplements thereto.

               2.11.6 DETERMINATIONS TO HONOR DRAWING REQUESTS.

               In determining whether to honor any request for drawing under any
Letter of Credit by the beneficiary thereof, the Administrative Agent and each
Issuing Lender shall be responsible only to determine that the documents and
certificates required to be delivered under such Letter of Credit have been
delivered and that they comply on their face with the requirements of such
Letter of Credit.

               2.11.7 NATURE OF PARTICIPATION AND REIMBURSEMENT OBLIGATIONS.

               Each Lender's obligation in accordance with this Agreement to
make the Revolving Credit Loans or Participation Advances, as contemplated by
Section 2.11.3, as a result of a drawing under a Letter of Credit, and the
Obligations of the Borrowers to reimburse the Administrative Agent or any
Issuing Lender (as applicable) upon a draw under a Letter of Credit, subject to
Section 10.18 for the avoidance of doubt (if applicable), shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Section 2.11 under all circumstances, including the
following circumstances:

                    (i) any set-off, counterclaim, recoupment, defense or other
right which such Lender may have against the Administrative Agent or any of its
Affiliates, the Borrowers or any other Person for any reason whatsoever;

                    (ii) the failure of any Loan Party or any other Person to
comply, in connection with a Letter of Credit Borrowing, with the conditions set
forth in Sections 2.1, 2.4, 2.5 or 6.2 or as otherwise set forth in this
Agreement for the making of a Revolving Credit Loan, it being acknowledged that
such conditions are not required for the making of a Letter of Credit Borrowing
and the obligation of the Lenders to make Participation Advances under Section
2.11.3;

                    (iii) any lack of validity or enforceability of any Letter
of Credit;

                    (iv) any claim of breach of warranty that might be made by
any Loan Party or any Lender against any beneficiary of a Letter of Credit, or
the existence of any claim, set-off, recoupment, counterclaim, crossclaim,
defense or other right which any Loan Party or any Lender may have at any time
against a beneficiary, successor beneficiary any transferee or assignee of any
Letter of Credit or the proceeds thereof (or any Persons for whom any such
transferee may be acting), the Administrative Agent or its Affiliates, any
Issuing Lender or its Affiliates, or any Lender or any other Person or, whether
in connection with this Agreement, the transactions contemplated herein or any
unrelated transaction (including any underlying transaction between any Loan
Party or Subsidiaries of a Loan Party and the beneficiary for which any Letter
of Credit was procured);

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<PAGE>

                    (v) the lack of power or authority of any signer of (or any
defect in or forgery of any signature or endorsement on) or the form of or lack
of validity, sufficiency, accuracy, enforceability or genuineness of any draft,
demand, instrument, certificate or other document presented under or in
connection with any Letter of Credit, or any fraud or alleged fraud in
connection with any Letter of Credit, or the transport of any property or
provisions of services relating to a Letter of Credit, in each case even if the
Administrative Agent or any of the Administrative Agent's Affiliates or any
Issuing Lender or any of an Issuing Lender's Affiliates has been notified
thereof;

                    (vi) payment by the Administrative Agent or any of its
Affiliates or any Issuing Lender or any of its Affiliates under any Letter of
Credit against presentation of a demand, draft or certificate or other document
which does not comply with the terms of such Letter of Credit;

                    (vii) the solvency of, or any acts of omissions by, any
beneficiary of any Letter of Credit, or any other Person having a role in any
transaction or obligation relating to a Letter of Credit, or the existence,
nature, quality, quantity, condition, value or other characteristic of any
property or services relating to a Letter of Credit;

                    (viii) any failure by the Administrative Agent or any of
Administrative Agent's Affiliates or any Issuing Lender or any of an Issuing
Lender's Affiliates to issue any Letter of Credit in substantially the form
requested by any Loan Party, unless the Administrative Agent or such Issuing
Lender (as applicable) has received written notice from such Loan Party of such
failure within three Business Days after the Administrative Agent or such
Issuing Lender (as applicable) shall have furnished such Loan Party a copy of
such Letter of Credit and such error is material and no drawing has been made
thereon prior to receipt of such notice;

                    (ix) any adverse change in the business, operations,
properties, assets, condition (financial or otherwise) or prospects of any Loan
Party or Subsidiaries of a Loan Party;

                    (x) any breach of this Agreement or any other Loan Document
by any party thereto;

                    (xi) the occurrence or continuance of an Insolvency
Proceeding with respect to any Loan Party;

                    (xii) the fact that an Event of Default or a Potential
Default shall have occurred and be continuing;

                    (xiii) the fact that the Expiration Date shall have passed
or this Agreement or the Commitments hereunder shall have been terminated; and

                    (xiv) any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing.

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<PAGE>

               2.11.8 INDEMNITY.

               In addition to amounts payable as provided in Section 9.5, the
Borrowers hereby agree (subject to Section 10.18 for the avoidance of doubt, if
applicable) to protect, indemnify, pay and save harmless the Administrative
Agent and any of Administrative Agent's Affiliates and each Issuing Lender and
any of the Issuing Lenders' respective Affiliates (collectively, the "LETTER OF
CREDIT PARTIES"), that has issued a Letter of Credit from and against any and
all claims, demands, liabilities, damages, taxes, penalties, interest,
judgments, losses, costs, charges and expenses (including reasonable fees,
expenses and disbursements of counsel and allocated costs of internal counsel)
which any of the Letter of Credit Parties may incur or be subject to as a
consequence, direct or indirect, of the issuance of any Letter of Credit, other
than as a sole result of (i) the gross negligence or willful misconduct of any
of the Letter of Credit Parties as determined by a final judgment of a court of
competent jurisdiction or (ii) the wrongful dishonor by any of the Letter of
Credit Parties of a proper demand for payment made under any Letter of Credit,
except if such dishonor resulted from any act or omission, whether rightful or
wrongful, of any present or future de jure or de facto government or
governmental authority (all such acts or omissions herein called "GOVERNMENTAL
ACTS").

               2.11.9 LIABILITY FOR ACTS AND OMISSIONS.

               As between any Loan Party and the Administrative Agent, or the
Administrative Agent's Affiliates, and between any Loan Party and an Issuing
Lender, or such Issuing Lender's Affiliates, such Loan Party assumes all risks
of the acts and omissions of, or misuse of the Letters of Credit by, the
respective beneficiaries of such Letters of Credit. In furtherance and not in
limitation of the foregoing, the Administrative Agent and each Issuing Lender
shall not be responsible for any of the following including any losses or
damages to any Loan Party or other Person or property relating therefrom: (i)
the form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for an
issuance of any such Letter of Credit, even if it should in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged
(even if the Administrative Agent or the Administrative Agent's Affiliates, or
the applicable Issuing Lender or such Issuing Lender's Affiliates, shall have
been notified thereof); (ii) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any such Letter of
Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason; (iii) the
failure of the beneficiary of any such Letter of Credit, or any other party to
which such Letter of Credit may be transferred, to comply fully with any
conditions required in order to draw upon such Letter of Credit or any other
claim of any Loan Party against any beneficiary of such Letter of Credit, or any
such transferee, or any dispute between or among any Loan Party and any
beneficiary of any Letter of Credit or any such transferee; (iv) errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;
(v) errors in interpretation of technical terms; (vi) any loss or delay in the
transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the
misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences arising

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<PAGE>

from causes beyond the control of the Administrative Agent or the Administrative
Agent's Affiliates, or the applicable Issuing Lender or such Issuing Lender's
Affiliates, as applicable, including any Governmental Acts, and none of the
above shall affect or impair, or prevent the vesting of, any of the
Administrative Agent's or the Administrative Agent's Affiliates, or the
applicable Issuing Lender or such Issuing Lender's Affiliates, rights or powers
hereunder. Nothing in the preceding sentence shall relieve the Administrative
Agent or any Issuing Lender from liability for the Administrative Agent's or
such Issuing Lender's gross negligence or willful misconduct in connection with
actions or omissions described in such clauses (i) through (viii) of such
sentence. In no event shall the Administrative Agent or the Administrative
Agent's Affiliates, or the applicable Issuing Lender or such Issuing Lender's
Affiliates, be liable to any Loan Party for any indirect, consequential,
incidental, punitive, exemplary or special damages or expenses (including
without limitation attorneys' fees), or for any damages resulting from any
change in the value of any property relating to a Letter of Credit.

               Without limiting the generality of the foregoing, the
Administrative Agent, each Issuing Lender and each of their respective
Affiliates (i) may rely on any oral or other communication believed in good
faith by the Administrative Agent, such Issuing Lender or such Affiliate to have
been authorized or given by or on behalf of the applicant for a Letter of
Credit, (ii) may honor any presentation if the documents presented appear on
their face substantially to comply with the terms and conditions of the relevant
Letter of Credit; (iii) may honor a previously dishonored presentation under a
Letter of Credit, whether such dishonor was pursuant to a court order, to settle
or compromise any claim of wrongful dishonor, or otherwise, and shall be
entitled to reimbursement to the same extent as if such presentation had
initially been honored, together with any interest paid by the Administrative
Agent, such Issuing Lender or such Affiliate; (iv) may honor any drawing that is
payable upon presentation of a statement advising negotiation or payment, upon
receipt of such statement (even if such statement indicates that a draft or
other document is being delivered separately), and shall not be liable for any
failure of any such draft or other document to arrive, or to conform in any way
with the relevant Letter of Credit; (v) may pay any paying or negotiating bank
claiming that it rightfully honored under the laws or practices of the place
where such bank is located; and (vi) may settle or adjust any claim or demand
made on the Administrative Agent, such Issuing Lender or such Affiliate in any
way related to any order issued at the applicant's request to an air carrier, a
letter of guarantee or of indemnity issued to a carrier or any similar document
(each an "ORDER") and honor any drawing in connection with any Letter of Credit
that is the subject to such Order, notwithstanding that any drafts or other
documents presented in connection with such Letter of Credit fail to conform in
any way with such Letter of Credit.

               In furtherance and extension and not in limitation of the
specific provisions set forth above, any action taken or omitted by the
Administrative Agent or the Administrative Agent's Affiliates, or the applicable
Issuing Lender or such Issuing Lender's Affiliates, under or in connection with
the Letters of Credit issued by it or any documents and certificates delivered
thereunder, if taken or omitted in good faith, shall not put the Administrative
Agent or the Administrative Agent's Affiliates, or the applicable Issuing Lender
or such Issuing Lender's Affiliates, under any resulting liability to the
Borrowers or any Lender.

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<PAGE>

          2.12 CURRENCY REPAYMENTS.

               Notwithstanding anything contained herein to the contrary, the
entire amount of principal of and interest on any Revolving Credit Loan made in
an Optional Currency shall be repaid in the same Optional Currency in which such
Loan was made, provided, however, that if it is impossible or illegal for the
Borrowers to effect payment of a Revolving Credit Loan in the Optional Currency
in which such Loan was made, or if the Borrowers default in their obligations to
do so, the Required Lenders may at their option permit such payment to be made
(i) at and to a different location, subsidiary, affiliate or correspondent of
Administrative Agent, (ii) in the Equivalent Amount of Dollars or (iii) in an
Equivalent Amount of such other currency (freely convertible into Dollars) as
the Required Lenders may solely at their option designate. Upon any events
described in (i) through (iii) of the preceding sentence, the Borrowers shall
make such payment, and the Borrowers agree to hold each Lender harmless from and
against any loss incurred by any Lender arising from the cost to such Lender of
any premium, any costs of exchange, the cost of hedging and covering the
Optional Currency in which such Loan was originally made, and from any change in
the value of Dollars, or such other currency, in relation to the Optional
Currency that was due and owing. Such loss shall be calculated for the period
commencing with the first day of the Interest Period for such Loan and
continuing through the date of payment thereof. Without prejudice to the
survival of any other agreement of the Borrowers hereunder, the Borrowers'
obligations under this Section 2.12 shall survive termination of this Agreement.

          2.13 OPTIONAL CURRENCY AMOUNTS.

               Notwithstanding anything contained herein to the contrary, the
Administrative Agent may, with respect to notices by the Borrowers for Revolving
Credit Loans in an Optional Currency or voluntary prepayments of less than the
full amount of an Optional Currency Borrowing Tranche, engage in reasonable
rounding of the Optional Currency amounts requested to be loaned or repaid; and,
in such event, the Administrative Agent shall promptly notify the Borrowers and
the Lenders of such rounded amounts and the Borrowers' request or notice shall
thereby be deemed to reflect such rounded amounts.

          2.14 REDUCTION OF COMMITMENT.

               The Company, on behalf of all Borrowers, shall have the right at
any time and from time to time upon five (5) Business Days' prior written notice
to the Administrative Agent to permanently reduce, in whole multiples of
$5,000,000 of principal, or terminate the Revolving Credit Commitments without
penalty or premium, except as hereinafter set forth, provided that any such
reduction or termination shall be accompanied by (a) the payment in full of any
Commitment Fee then accrued on the amount of such reduction or termination and
(b) prepayment of the Revolving Credit Notes, together with the full amount of
interest accrued on the principal sum to be prepaid (and all amounts referred to
in Section 4.6 hereof), to the extent that the Dollar Equivalent Revolving
Facility Usage then outstanding exceeds the Revolving Credit Commitments as so
reduced or terminated. From the effective date of any such reduction or
termination the obligations of the Borrowers to pay the Commitment Fee pursuant
to Section 2.3 shall correspondingly be reduced or cease.

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<PAGE>

                                3. INTEREST RATES

          3.1 INTEREST RATE OPTIONS.

               The Borrowers shall pay interest in respect of the outstanding
unpaid principal amount of the Loans as selected by it from the Base Rate Option
or Euro-Rate Option set forth below applicable to the Loans, it being understood
that, subject to the provisions of this Agreement, the Borrowers may select
different Interest Rate Options and different Interest Periods to apply
simultaneously to the Loans comprising different Borrowing Tranches and may
convert to or renew one or more Interest Rate Options with respect to all or any
portion of the Loans comprising any Borrowing Tranche, provided that there shall
not be at any one time outstanding more than eight (8) Borrowing Tranches in the
aggregate among all of the Loans. If at any time the designated rate applicable
to any Loan made by any Lender exceeds such Lender's highest lawful rate, the
rate of interest on such Lender's Loan shall be limited to such Lender's highest
lawful rate. Interest on the principal amount of each Loan made in an Optional
Currency shall be paid by the Borrowers in such Optional Currency. Swing Loans
shall bear interest at a rate to be agreed upon by the Administrative Agent and
the Company, on behalf of all Borrowers.

               3.1.1 INTEREST RATE OPTIONS.

               The Borrowers shall have the right to select from the following
Interest Rate Options applicable to the Loans (subject to the provisions above
regarding Swing Loans), except that no Loan to which a Base Rate shall apply may
be made in an Optional Currency:

                    (i) Base Rate Option. A fluctuating rate per annum (computed
on the basis of a year of 365 or 366 days, as the case may be, and actual days
elapsed) equal to the Base Rate plus the Applicable Margin, such interest rate
to change automatically from time to time effective as of the effective date of
each change in the Base Rate; or

                    (ii) Euro-Rate Option. A rate per annum (computed on the
basis of a year of 360 days, as the case may be, and actual days elapsed),
provided that, for Revolving Credit Loans made in an Optional Currency for which
a 365-day basis is the only market practice available to the Administrative
Agent, such rate shall be calculated on the basis of a year of 365 days for the
actual days elapsed) equal to the Euro-Rate plus the Applicable Margin.

               3.1.2 RATE QUOTATIONS.

               The Borrowers may call the Administrative Agent on or before the
date on which a Loan Request is to be delivered to receive an indication of the
interest rates and the applicable currency exchange rates then in effect, but it
is acknowledged that such projection shall not be binding on the Administrative
Agent or the Lenders nor affect the rate of interest or

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the calculation of Equivalent Amounts which thereafter are actually in effect
when the election is made.

          3.2 INTEREST PERIODS.

               At any time when the Borrowers shall select, convert to or renew
a Euro-Rate Option, the Borrowers shall notify the Administrative Agent thereof
by delivering a Loan Request at least four (4) Business Days prior to the
effective date of such Interest Rate Option, with respect to an Optional
Currency Loan, and three (3) Business Days prior to the effective date of such
Interest Rate Option, with respect to a Loan denominated in Dollars. The notice
shall specify an Interest Period during which such Interest Rate Option shall
apply. Notwithstanding the preceding sentence, the following provisions shall
apply to any selection of, renewal of, or conversion to a Euro-Rate Option:

               3.2.1 AMOUNT OF BORROWING TRANCHE.

               The Dollar Equivalent amount of each Borrowing Tranche of
Euro-Rate Loans shall be in integral multiples of $100,000.00 and not less than
$2,000,000.00; and

               3.2.2 RENEWALS.

               In the case of the renewal of a Euro-Rate Option at the end of an
Interest Period, the first day of the new Interest Period shall be the last day
of the preceding Interest Period, without duplication in payment of interest for
such day.

          3.3 INTEREST AFTER DEFAULT.

               To the extent permitted by Law, upon the occurrence of an Event
of Default and until such time such Event of Default shall have been cured or
waived:

               3.3.1 LETTER OF CREDIT FEES, INTEREST RATE.

               The Letter of Credit Fees and the rate of interest for each Loan
otherwise applicable pursuant to Section 2.11.2 or Section 3.1, respectively,
shall at the request of the Administrative Agent be increased, by 2.0% per
annum; and

               3.3.2 OTHER OBLIGATIONS.

               Each other Obligation hereunder if not paid when due shall at the
request of the Administrative Agent bear interest at a rate per annum equal to
the sum of the rate of interest applicable under the Base Rate Option plus an
additional 2.0% per annum from the time such Obligation becomes due and payable
and until it is paid in full.

               3.3.3 ACKNOWLEDGMENT.

               The Borrowers acknowledges that the increase in rates referred to
in this Section 3.3 reflects, among other things, the fact that such Loans or
other amounts have become

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a substantially greater risk given their default status and that the Lenders are
entitled to additional compensation for such risk; and all such interest shall
be payable by the Borrowers upon demand by the Administrative Agent.

          3.4 EURO-RATE UNASCERTAINABLE; ILLEGALITY; INCREASED COSTS; DEPOSITS
NOT AVAILABLE.

               3.4.1 UNASCERTAINABLE.

               If on any date on which a Euro-Rate would otherwise be
determined, the Administrative Agent shall have determined that:

                    (i) adequate and reasonable means do not exist for
ascertaining such Euro-Rate, or

                    (ii) a contingency has occurred affecting the interbank
eurodollar market relating to the Euro-Rate and reasonable and adequate means do
not exist for ascertaining the Euro-Rate for such Interest Period, the
Administrative Agent and Borrowers shall have the rights specified in Sections
3.4.3 and 4.4.2 (as applicable).

               3.4.2 ILLEGALITY; INCREASED COSTS; DEPOSITS NOT AVAILABLE.

               If at any time any Lender shall have determined that:

                    (i) the making, maintenance or funding of any Loan to which
a Euro-Rate Option applies has been made impracticable or unlawful by compliance
by such Lender in good faith with any Law or any interpretation or application
thereof by any Official Body or with any request or directive of any such
Official Body (whether or not having the force of Law), or

                    (ii) such Euro-Rate Option will not adequately and fairly
reflect the cost to such Lender of the establishment or maintenance of any such
Loan, or

                    (iii) after making all reasonable efforts, deposits of the
relevant amount in Dollars or in the Optional Currency (as applicable) for the
relevant Interest Period for a Loan, or to banks generally, to which a Euro-Rate
Option applies, respectively, are not available to such Lender with respect to
such Loan, or to banks generally, in the interbank eurodollar market, then the
Administrative Agent and Borrowers shall have the rights specified in Sections
3.4.3 and 4.4.2 (as applicable).

               3.4.3 ADMINISTRATIVE AGENT'S AND LENDER'S RIGHTS.

               In the case of any event specified in Section 3.4.1 above, the
Administrative Agent shall promptly so notify the Lenders and the Borrowers
thereof, and in the case of an event specified in Section 3.4.2 above, such
Lender shall promptly so notify the Administrative Agent and endorse a
certificate to such notice as to the specific circumstances of such notice, and
the Administrative Agent shall promptly send copies of such notice and

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<PAGE>

certificate to the other Lenders and the Borrowers. Upon such date as shall be
specified in such notice (which shall not be earlier than the date such notice
is given), the obligation of (A) the Lenders, in the case of such notice given
by the Administrative Agent, or (B) such Lender, in the case of such notice
given by such Lender, to allow the Borrowers to select, convert to or renew a
Euro-Rate Option or select an Optional Currency (as applicable) shall be
suspended until the Administrative Agent shall have later notified the
Borrowers, or such Lender shall have later notified the Administrative Agent, of
the Administrative Agent's or such Lender's, as the case may be, determination
that the circumstances giving rise to such previous determination no longer
exist. If at any time the Administrative Agent makes a determination under
Section 3.4.1 and the Borrowers have previously notified the Administrative
Agent of its selection of, conversion to or renewal of a Euro-Rate Option and
such Interest Rate Option has not yet gone into effect, such notification shall
be deemed to provide for selection of, conversion to or renewal of the Base Rate
Option otherwise available with respect to such Loans. If any Lender notifies
the Administrative Agent of a determination under Section 3.4.2, the Borrowers
shall, subject to the Borrowers' indemnification Obligations under Section
4.6.2, as to any Loan of the Lender to which a Euro-Rate Option applies, on the
date specified in such notice either (i) as applicable, convert such Loan to the
Base Rate Option otherwise available with respect to such Loan or select a
different Optional Currency or Dollars, or (ii) prepay such Loan in accordance
with Section 4.4. Absent due notice from the Borrowers of conversion or
prepayment, such Loan shall automatically be converted to the Base Rate Option
otherwise available with respect to such Loan upon such specified date.

          3.5 SELECTION OF INTEREST RATE OPTIONS.

               If the Borrowers fail to select a new Interest Period or Optional
Currency to apply to any Borrowing Tranche of Loans under the Euro-Rate Option
at the expiration of an existing Interest Period applicable to such Borrowing
Tranche in accordance with the provisions of Section 3.2, the Borrowers shall be
deemed to have converted or continued, as applicable, such Borrowing Tranche of
Loans under the Euro-Rate Option for an Interest Period of one (1) month and, if
required by the Administrative Agent, converted such Borrowing Tranche to a Loan
in Dollars, as applicable, commencing upon the last day of the existing Interest
Period.

          3.6 CANADIAN INTEREST ACT DISCLOSURE.

               For the purposes of the Interest Act (Canada) and disclosure
thereunder, whenever any interest or any fee to be paid hereunder or in
connection herewith is to be calculated on the basis of a 360-day or 365-day
year, the yearly rate of interest to which the rate used in such calculation is
equivalent is the rate so used multiplied by the actual number of days in the
calendar year in which the same is to be ascertained and divided by 360 or 365,
as applicable. The rates of interest under this Agreement are nominal rates, and
not effective rates or yields. The principle of deemed reinvestment of interest
does not apply to any interest calculation under this Agreement.

          3.7 CANADIAN USURY PROVISION.

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               If any provision of this Agreement would oblige a Canadian
Borrower to make any payment of interest or other amount payable to any Lender
in an amount or calculated at a rate which would be prohibited by law or would
result in a receipt by that Lender of "interest" at a "criminal rate" (as such
terms are construed under the Criminal Code (Canada)), then, notwithstanding
such provision, such amount or rate shall be deemed to have been adjusted with
retroactive effect to the maximum amount or rate of interest, as the case may
be, as would not be so prohibited by applicable law or so result in a receipt by
that Lender of "interest" at a "criminal rate", such adjustment to be effected,
to the extent necessary (but only to the extent necessary), as follows:

     (i) first, by reducing the amount or rate of interest; and

     (ii) thereafter, by reducing any fees, commissions, costs, expenses,
premiums and other amounts required to be paid which would constitute interest
for purposes of section 347 of the Criminal Code (Canada).

                                   4. PAYMENTS

          4.1 PAYMENTS.

               All payments and prepayments to be made in respect of principal,
interest, Commitment Fees, Letter of Credit Fees, Administrative Agent's Fee or
other fees or amounts due from the Borrowers hereunder shall be payable prior to
11:00 a.m., Pittsburgh time, on the date when due without presentment, demand,
protest or notice of any kind, all of which are hereby expressly waived by the
Borrowers, and without set-off, counterclaim or other deduction of any nature,
and an action therefor shall immediately accrue. Such payments shall be made to
the Administrative Agent at the Principal Office for the account of PNC Bank
with respect to the Swing Loans and for the ratable accounts of the Lenders with
respect to the Revolving Loans in Dollars except that payments of principal or
interest shall be made in the currency in which such Loan was made, and in
immediately available funds, and the Administrative Agent shall promptly
distribute such amounts to the Lenders in immediately available funds, provided
that in the event payments are received by 11:00 a.m., Pittsburgh time, by the
Administrative Agent with respect to the Loans and such payments are not
distributed to the Lenders on the same day received by the Administrative Agent,
the Administrative Agent shall pay the Lenders the Federal Funds Effective Rate
in the case of Loans or other amounts due in Dollars, or the Overnight Rate in
the case of Loans or other amounts due in an Optional Currency, with respect to
the amount of such payments for each day held by the Administrative Agent and
not distributed to the Lenders. The Administrative Agent's and each Lender's
statement of account, ledger or other relevant record shall, in the absence of
manifest error, be conclusive as the statement of the amount of principal of and
interest on the Loans and other amounts owing under this Agreement (including
the Equivalent Amounts of the applicable currencies where such computations are
required) and shall be deemed an "account stated."

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          4.2 PRO RATA TREATMENT OF LENDERS.

               Each borrowing of Revolving Credit Loans shall be allocated to
each Lender according to its Revolving Credit Ratable Share, and each selection
of, conversion to or renewal of any Interest Rate Option and each payment or
prepayment by the Borrowers with respect to principal, interest, Commitment
Fees, Letter of Credit Fees, or other fees (except for the Administrative
Agent's Fee and the fronting fee for Letters of Credit referred to in Section
2.11.2(ii)) or amounts due from the Borrowers hereunder to the Lenders with
respect to the Loans, shall (except as provided in Section 3.4.3 in the case of
an event specified in Sections 3.4, 4.4.2 or 4.6) be made in proportion to the
applicable Loans outstanding from each Lender and, if no such Loans are then
outstanding, in proportion to the Revolving Credit Ratable Share, as applicable
of each Lender. Notwithstanding any of the foregoing, each borrowing or payment
or prepayment by the Borrowers of principal, interest, fees or other amounts
from the Borrowers with respect to Swing Loans shall be made by or to PNC Bank.

          4.3 INTEREST PAYMENT DATES.

               Interest on Loans to which the Base Rate Option applies shall be
due and payable in arrears on the first day of each July, October, January and
April after the date hereof and on the Expiration Date or upon acceleration of
the Notes. Interest on Loans to which the Euro-Rate Option applies shall be due
and payable in the currency in which such Loan was made on the last day of each
Interest Period for those Loans and, if such Interest Period is longer than
three (3) Months, also on the 90th day of such Interest Period. Interest on
mandatory prepayments of principal under Section 4.5 shall be made in the
currency in which such Loan was made and shall be due on the date such mandatory
prepayment is due. Interest on the principal amount of each Loan or other
monetary Obligation shall be due and payable in the currency in which such Loan
was made on demand after such principal amount or other monetary Obligation
becomes due and payable (whether on the stated maturity date, upon acceleration
or otherwise).

          4.4 VOLUNTARY PREPAYMENTS.

               4.4.1 RIGHT TO PREPAY.

               The Borrowers shall have the right, at their option, from time to
time to prepay the Loans in whole or part without premium or penalty (except as
provided in Section 4.4.2 below or in Section 4.6) in the currency in which such
Loan was made:

                    (i) at any time with respect to any Loan to which the Base
Rate Option applies,

                    (ii) at any time with respect to any Loan in any Optional
Currency, subject to Section 4.6.2,

                    (iii) at any time with respect to Loans to which a Euro-Rate
Option applies, subject to Section 4.6.2, or

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<PAGE>

                    (iv) on the date specified in a notice by any Lender
pursuant to Section 3.4 with respect to any Loan to which a Euro-Rate Option
applies.

               Whenever the Borrowers desire to prepay any part of the Loans,
the Company, on behalf of all Borrowers, shall provide a prepayment notice to
the Administrative Agent by 1:00 p.m. Pittsburgh time: (i) at least one (1)
Business Day prior to the date of prepayment of the Revolving Credit Loans made
in Dollars and (ii) at least four (4) Business Days prior to the date of
prepayment of any Loans in an Optional Currency, and (iii) on the date of
prepayment of Swing Loans, in each case setting forth the following information:

               (x) the date, which shall be a Business Day, on which the
          proposed prepayment is to be made;

               (y) the Borrowing Tranche designated for prepayment, if
          applicable; and

               (z) the total principal amount and currency of such prepayment,
          the Dollar Equivalent amount of which shall not be less than
          $500,000.00 for any Swing Loan or $1,000,000.00 for any Revolving
          Credit Loan or such lesser amount as may be outstanding.

               All prepayment notices shall be irrevocable. The principal amount
of the Loans for which a prepayment notice is given, together with interest on
such principal amount except with respect to Loans to which the Base Rate Option
applies, shall be due and payable on the date specified in such prepayment
notice as the date on which the proposed prepayment is to be made in the
currency in which such Loans was made. Except as provided in Section 3.4.3, if
the Borrowers prepay a Loan but fails to specify the applicable Borrowing
Tranche which the Borrowers are prepaying, the prepayment shall be applied first
to Loans to which the Base Rate Option applies, then to Loans to which the
Euro-Rate Option applies, and then to Optional Currency Loans. Any prepayment
hereunder shall be subject to the Borrowers' Obligation to indemnify the Lenders
under Section 4.6.2. Revolving Credit Loan prepayments shall not result in an
reduction of the Revolving Credit Commitments unless the Borrowers have elected
to reduce such Revolving Credit Commitments pursuant to Section 2.14.

               4.4.2 REPLACEMENT OF A LENDER.

               In the event any Lender (any such Lender, a "DEFAULTING LENDER")
(i) gives notice under Section 2.9, 3.4 or 4.6.1, (ii) does not fund Revolving
Credit Loans or otherwise fails to pay over to the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder within one
Business Day of the date when due (unless the subject of a good faith dispute or
unless such failure has been cured and all interest accruing as a result of such
failure has been fully paid in accordance with the terms hereof), (iii) becomes
subject to the control of an Official Body (other than normal and customary
supervision), deemed insolvent by an Official Body or the subject of a
bankruptcy, receivership, conservatorship or insolvency proceeding, or (iv)
becomes a Non-Consenting Lender pursuant to Section 10.1, then the Borrowers
shall have the right at its option to prepay the Loans of such

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<PAGE>

Lender in whole, together with all interest accrued thereon, and terminate such
Lender's Commitment within ninety (90) days after (x) receipt of such Lender's
notice under Section 2.9, 3.4 or 4.6.1, (y) the date such Lender has failed to
fund Revolving Credit Loans or otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid by
it hereunder within one Business Day of the date when due as contemplated in
clause (ii) above, or (z) the date such Lender became subject to the control of
an Official Body or any other event contemplated in clause (iii) or (iv) above
occurs, as applicable; provided that the Borrowers shall also pay to such Lender
at the time of such prepayment any amounts required under Section 4.6 and any
accrued interest due on such amount and any related fees (except if a Lender is
a Defaulting Lender as a result of the operation of clause (ii) or (iii) above,
in which event such Lender shall be entitled to receive accrued interest only
and not entitled to receive payment of any fees); provided, however, that the
Revolving Credit Commitment of such Lender shall be provided by one or more of
the remaining Lenders or a replacement financial institution acceptable to the
Administrative Agent; provided, further, the remaining Lenders shall have no
obligation hereunder to increase their Commitments. Notwithstanding the
foregoing, the Administrative Agent may only be replaced subject to the
requirements of Section 9.14 and provided that all Letters of Credit have
expired or been terminated or replaced.

               4.4.3 CHANGE OF LENDING OFFICE.

               Each Lender agrees that upon the occurrence of any event giving
rise to increased costs or other special payments under Section 3.4.2 or 4.6.1
with respect to such Lender, it will if requested by the Borrowers, use
reasonable efforts (subject to overall policy considerations of such Lender) to
designate another Lending Office for any Loans or Letters of Credit affected by
such event, provided that such designation is made on such terms that such
Lender and its Lending Office suffer no economic, legal or regulatory
disadvantage, with the object of avoiding the consequence of the event giving
rise to the operation of such Section. Nothing in this Section 4.4.3 shall
affect or postpone any of the Obligations of the Borrowers or any other Loan
Party or the rights of the Administrative Agent or any Lender provided in this
Agreement.

          4.5 MANDATORY PREPAYMENTS.

               4.5.1 CURRENCY FLUCTUATIONS.

               If on any Computation Date the sum of the Dollar Equivalent
Revolving Facility Usage is greater than the Revolving Credit Commitments as a
result of a change in exchange rates between one (1) or more Optional Currencies
and Dollars, then the Administrative Agent shall notify the Borrowers of the
same. The Borrowers shall pay or prepay the Revolving Credit Loans (subject to
Borrowers' indemnity obligations contained in this Agreement, including, without
limitation, under Section 4.6.2) or Swing Loans within three (3) Business Days
after receiving such notice such that the sum of the Dollar Equivalent Revolving
Facility Usage no longer exceeds the aggregate Revolving Credit Commitments.

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               4.5.2 APPLICATION AMONG INTEREST RATE OPTIONS.

               All prepayments required pursuant to this Section 4.5 shall first
be applied among the Interest Rate Options to the principal amount of the
applicable Loans subject to the Base Rate Option, then to Dollar Loans
denominated in Dollars and subject to a Euro-Rate Option and then to Loans of
Optional Currencies subject to the Euro-Rate Option, and the Borrowers will be
subject to the indemnity obligation set forth in Section 4.6.2.

          4.6 ADDITIONAL COMPENSATION IN CERTAIN CIRCUMSTANCES.

               4.6.1 INCREASED COSTS OR REDUCED RETURN RESULTING FROM TAXES,
RESERVES, CAPITAL ADEQUACY REQUIREMENTS, EXPENSES, ETC.

               If any change in any Law or guideline or in any interpretation or
application thereof by any Official Body charged with the interpretation or
administration thereof or compliance with any request or directive (whether or
not having the force of Law) of any central bank or other Official Body:

                    (i) imposes, modifies or deems applicable any reserve,
special deposit or similar requirement against credits or commitments to extend
credit extended by, or assets (funded or contingent) of, deposits with or for
the account of, or other acquisitions of funds by, any Lender or any Lending
Office of any Lender, or

                    (ii) imposes, modifies or deems applicable any capital
adequacy or similar requirement (A) against assets (funded or contingent) of, or
letters of credit, other credits or commitments to extend credit extended by,
any Lender, or (B) otherwise applicable to the obligations of any Lender or any
Lending Office of any Lender under this Agreement,

and the result of any of the foregoing is to increase the cost to, reduce the
income receivable by, or impose any expense (including loss of margin) upon any
Lender or its Lending Office with respect to this Agreement, the Notes or the
making, maintenance or funding of any part of the Loans (or, in the case of any
capital adequacy or similar requirement, to have the effect of reducing the rate
of return on any Lender's capital, taking into consideration such Lender's
customary policies with respect to capital adequacy) by an amount which such
Lender in its sole discretion deems to be material, such Lender shall from time
to time notify the Borrowers and the Administrative Agent of the amount
determined in good faith (using any averaging and attribution methods employed
in good faith) by such Lender to be necessary to compensate such Lender for such
increase in cost, reduction of income, additional expense or reduced rate of
return. Such notice shall set forth in reasonable detail the basis for such
determination. Such amount shall be due and payable by the Borrowers to such
Lender ten (10) Business Days after such notice is given.

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<PAGE>

               4.6.2 INDEMNITY.

               In addition to the compensation required by Section 4.6.1, the
Borrowers shall indemnify each Lender against all liabilities, losses or
expenses (including loss of margin, any loss or expense incurred in liquidating
or employing deposits from third parties and any loss or expense incurred in
connection with funds acquired by a Lender to fund or maintain Loans subject to
a Euro-Rate Option) which such Lender sustains or incurs as a consequence of
any:

                    (i) payment, prepayment, conversion or renewal of any Loan
to which a Euro-Rate Option applies on a day other than the last day of the
corresponding Interest Period (whether or not such payment or prepayment is
mandatory, voluntary or automatic and whether or not such payment or prepayment
is then due),

                    (ii) attempt by the Borrowers to revoke (expressly, by later
inconsistent notices or otherwise) in whole or part any Loan Requests under
Section 2.4 or Section 3.2 or notice relating to prepayments under Section 4.4,
or

                    (iii) default by the Borrowers in the performance or
observance of any covenant or condition contained in this Agreement or any other
Loan Document, including any failure of the Borrowers to pay when due (by
acceleration or otherwise) any principal, interest, Commitment Fee or any other
amount due hereunder.

               If any Lender sustains or incurs any such loss or expense, it
shall from time to time notify the Borrowers of the amount determined in good
faith by such Lender (which determination may include such assumptions,
allocations of costs and expenses and averaging or attribution methods as such
Lender shall deem reasonable) to be necessary to indemnify such Lender for such
loss or expense. Such notice shall set forth in reasonable detail the basis for
such determination. Such amount shall be due and payable by the Borrowers to
such Lender ten (10) Business Days after such notice is given.

          4.7 INTERBANK MARKET PRESUMPTION.

               For all purposes of this Agreement and each Note with respect to
any aspects of the Euro-Rate, any Loan under the Euro-Rate Option or any
Optional Currency, each Lender and Administrative Agent shall be presumed to
have obtained rates, funding, currencies, deposits, and the like in the Relevant
Interbank Market regardless of whether it did so or not; and, each Lender's and
Administrative Agent's determination of amounts payable under, and actions
required or authorized by, Section 4.6.2 shall be calculated, at each Lender's
and Administrative Agent's option, as though each Lender and Administrative
Agent funded each Borrowing Tranche of Loans under the Euro-Rate Option through
the purchase of deposits of the types and maturities corresponding to the
deposits used as a reference in accordance with the terms hereof in determining
the Euro-Rate applicable to such Loans, whether in fact that is the case.

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          4.8 TAXES.

               4.8.1 NO DEDUCTIONS.

               All payments made to the Lenders and/or Administrative Agent by
the Borrowers hereunder and under each Note shall be made free and clear of and
without deduction for any present or future taxes, levies, imposts, deductions,
charges, or withholdings, and all liabilities with respect thereto, excluding
taxes imposed on the net income of any Lender and all income and franchise taxes
that would not have been imposed but for such Lender having a past or present
connection with a jurisdiction imposing such taxes other than entering into this
Agreement and performing its obligations and enforcing its rights thereunder(all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings, and
liabilities being hereinafter referred to as "TAXES") unless such deduction is
required by Law (and then subject to the following sentence). If the Borrowers
shall be required by Law to deduct any Taxes from or in respect of any sum
payable hereunder or under any Note, (i) the sum payable under such Note shall
be increased as may be necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section
4.8.1) each Lender receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrowers shall make such deductions
and (iii) the Borrowers shall timely pay the full amount deducted to the
relevant tax authority or other authority in accordance with applicable Law.

               4.8.2 STAMP TAXES.

               In addition, the Borrowers agree to pay any present or future
stamp or documentary taxes or any other excise or property taxes or similar
levies which arise from any payment made hereunder or from the execution,
delivery, or registration of, or otherwise with respect to, this Agreement or
any Note (hereinafter referred to as "OTHER TAXES").

               4.8.3 INDEMNIFICATION FOR TAXES PAID BY A LENDER.

               The Borrowers shall indemnify each Lender for the full amount of
Taxes or Other Taxes (including, without limitation, any Taxes or Other Taxes
imposed by any jurisdiction on amounts payable under this Section 4.8.3) paid by
any Lender and any liability (including penalties, interest, and expenses)
arising therefrom or with respect thereto. This indemnification shall be made
within 30 days from the date a Lender makes written demand therefor, but in no
event shall such indemnification be required to be made more than ten (10)
Business Days before the date such Taxes or Other Taxes are due to the relevant
taxing authority.

               4.8.4 CERTIFICATE.

               Within 30 days after the date of any payment of any Taxes by the
Borrowers pursuant to Section 4.8, the Borrowers shall notify the Lenders
thereof, and thereafter, if so requested by any Lender, furnish to each Lender,
at its address referred to herein, the original or a certified copy of a receipt
evidencing payment thereof, if available, or, if not

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<PAGE>

available, another reasonable form of confirmation of such payment if it is
requested by any Lender.

               4.8.5 EXCLUSIONS, ETC.

               Notwithstanding any other provision of this Agreement, if the
forms provided pursuant to Section 10.17 by a Lender, assignee or participant at
the time such Person first becomes a party to this Agreement indicate a United
States interest withholding tax rate in excess of zero, withholding tax at such
rate shall be considered excluded from Taxes unless and until such Person
provides the appropriate forms certifying that a lesser rate applies, whereupon
withholding tax at such lesser rate only shall be considered excluded from Taxes
for periods governed by such forms; provided, however, that the term Taxes shall
include United States withholding tax, if any, applicable with respect to an
assignee or participant of a Lender only to the extent that, at the effective
date of the agreement or other transaction pursuant to which such assignee or
participant becomes a party to this Agreement, such Lender was entitled to
payments under Section 4.8.1 in respect of United States withholding tax with
respect to interest paid at such date. For any period with respect to which a
Lender or assignee or participant of a Lender (or a financial institution
through which such Lender, assignee or participant has directed any payment to
be made) has failed to comply with Section 10.17, such Lender, assignee or
participant shall not be entitled to indemnification under this Section 4.8 with
respect to any Taxes imposed by reason of such failure.

               4.8.6 CHANGE OF LENDING OFFICE, ETC.

               Any Person claiming any additional amounts payable pursuant to
this Section 4.8 agrees to use reasonable efforts (consistent with any legal and
regulatory restrictions) to file any document or certificate reasonably
requested by a Borrower or change the jurisdiction of its Lending Office with
respect to this Agreement, if the filing of such document or certificate, or the
making of such a change, would avoid the need for, or reduce the amount of, any
such additional amounts pursuant to this Section 4.8 that may thereafter accrue.

               4.8.7 SURVIVAL.

               Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers contained
in Sections 4.8.1 through 4.8.4 shall survive the payment in full of principal
and interest hereunder and under any instrument delivered hereunder.

          4.9 JUDGMENT CURRENCY.

               4.9.1 CURRENCY CONVERSION PROCEDURES FOR JUDGMENTS.

               If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due hereunder or under a Note in any currency (the
"ORIGINAL CURRENCY") into another currency (the "OTHER CURRENCY"), the parties
hereby agree, to the fullest extent permitted by Law, that the rate of exchange
used shall be that at which in accordance with

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normal banking procedures each Lender could purchase the Original Currency with
the Other Currency after any premium and costs of exchange on the Business Day
preceding that on which final judgment is given.

               4.9.2 INDEMNITY IN CERTAIN EVENTS.

               The obligation of the Borrowers in respect of any sum due from
the Borrowers to any Lender hereunder shall, notwithstanding any judgment in an
Other Currency, whether pursuant to a judgment or otherwise, be discharged only
to the extent that, on the Business Day following receipt by any Lender of any
sum adjudged to be so due in such Other Currency, such Lender may in accordance
with normal banking procedures purchase the Original Currency with such Other
Currency. If the amount of the Original Currency so purchased is less than the
sum originally due to such Lender in the Original Currency, the Borrowers agree,
as a separate obligation and notwithstanding any such judgment or payment, to
indemnify such Lender against such loss. If the amount of the Original Currency
so purchased is greater than the sum originally due to such Lender in the
Original Currency, such Lender agrees to return the amount of any excess to the
Borrowers (or to any other Person who may be entitled thereto under applicable
Law).

          4.10 NOTES.

               Upon the request of any Lender, the Loans made by such Lender may
be evidenced by a Note (or Notes).

          4.11 SETTLEMENT DATE PROCEDURES.

               In order to minimize the transfer of funds between the Lenders
and the Administrative Agent, the Borrowers may borrow, repay and reborrow Swing
Loans and PNC Bank may make Swing Loans as provided in Section 2.4.2 hereof
during the period between Settlement Dates. Not later than 11:00 a.m.,
Pittsburgh time, on any Settlement Date, the Administrative Agent shall notify
each Lender of its Ratable Share of the total of the Revolving Credit Loans and
the Swing Loans (each a "REQUIRED SHARE") as of such date. Prior to 1:00 p.m.,
Pittsburgh time, on such Settlement Date, each Lender shall pay to the
Administrative Agent the amount equal to the difference between its Required
Share and its Revolving Credit Loans, and the Administrative Agent shall pay to
each Lender its Ratable Share of all payments made by the Borrowers to the
Administrative Agent with respect to the Revolving Credit Loans. The
Administrative Agent may at its option effect settlement on any Business Day.
These settlement procedures are established solely as a matter of administrative
convenience, and nothing contained in this Section 4.11 shall relieve the
Lenders of their obligations to fund Revolving Credit Loans on dates other than
a Settlement Date. The Administrative Agent may, at any time at its option, for
any reason whatsoever require each Lender to pay immediately to the
Administrative Agent such Lender's Ratable Share of the outstanding Revolving
Credit Loans and, each Lender may at any time require the Administrative Agent
to pay immediately to such Lender its Ratable Share of all payments made by the
Borrowers to the Administrative Agent with respect to the Revolving Credit
Loans.

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          4.12 BORROWERS' AGENT.

               Each Borrower hereby designates the Company as its representative
and agent (in such capacity, the "BORROWER AGENT") under the Loan Documents,
including for requests for Loans and Letters of Credit, designation of interest
rates, delivery or receipt of communications, preparation and delivery of
financial reports, and requests for waivers. The Borrower Agent hereby accepts
such appointment. The Administrative Agent and the Lenders may give any notice
or communication with a Borrower hereunder to the Borrower Agent on behalf of
such Borrower. Each Borrower agrees that any notice, election, communication,
representation, agreement or undertaking made on its behalf by the Borrower
Agent shall be binding upon and enforceable against it.

                        5. REPRESENTATIONS AND WARRANTIES

          5.1 REPRESENTATIONS AND WARRANTIES.

               The Loan Parties, jointly and severally, represent and warrant to
the Administrative Agent and each of the Lenders as follows:

               5.1.1 ORGANIZATION AND QUALIFICATION.

               Each Loan Party and each Subsidiary of each Loan Party is a
corporation, partnership or limited liability company duly organized, validly
existing and in good standing under the laws of its jurisdiction of
organization. Each Loan Party and each Subsidiary of each Loan Party has the
power to own or lease its properties necessary for its business and to engage in
the business it presently conducts or as of the Closing Date proposes to
conduct. Each Loan Party and each Subsidiary of each Loan Party is duly licensed
or qualified and in good standing in each domestic jurisdiction listed on
SCHEDULE 5.1.1 as of the Closing Date or, if applicable, such later date as to
which a version of such Schedule is updated in accordance with Section 5.3, and
in all other jurisdictions where the property owned or leased by it or the
nature of the business transacted by it or both makes such licensing or
qualification necessary except where the failure to do so would result in a
Material Adverse Change.

               5.1.2 SUBSIDIARIES.

               SCHEDULE 5.1.2 states as of the Closing Date or, if applicable,
such later date as to which a version of such Schedule is updated in accordance
with Section 5.3, the name of each of the Company's Subsidiaries, its
jurisdiction of incorporation, its authorized capital stock, the issued and
outstanding shares (referred to herein as the "SUBSIDIARY SHARES") and the
owners thereof if it is a corporation, its outstanding partnership interests
(the "PARTNERSHIP INTERESTS") if it is a partnership and its outstanding limited
liability company interests, interests assigned to managers thereof and the
voting rights associated therewith (the "LLC INTERESTS") if it is a limited
liability company. The Borrowers and each Subsidiary of the Borrowers have good
and marketable title to all of the Subsidiary Shares, Partnership Interests and
LLC Interests it purports to own, free and clear, in each case, of any Lien
except for Permitted Liens which attach to the assets of such Person generally.
All Subsidiary Shares, Partnership Interests and

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LLC Interests have been validly issued, and all Subsidiary Shares are fully paid
and nonassessable. All capital contributions and other consideration required to
be made or paid in connection with the issuance of the Partnership Interests and
LLC Interests have been made or paid, as the case may be. There are no options,
warrants or other rights outstanding to purchase any such Subsidiary Shares,
Partnership Interests or LLC Interests except as indicated as of the Closing
Date on SCHEDULE 5.1.2 or, if applicable, such later date as to which a version
of such Schedule is updated in accordance with Section 5.3. As of the Closing
Date each of the Material Subsidiaries of the Company is either a Borrower or a
Guarantor.

               5.1.3 POWER AND AUTHORITY.

               Each Loan Party has full power to enter into, execute, deliver
and carry out this Agreement and the other Loan Documents to which it is a
party, to incur the Indebtedness contemplated by the Loan Documents and to
perform its Obligations under the Loan Documents to which it is a party, and all
such actions have been duly authorized by all necessary proceedings on its part.

               5.1.4 VALIDITY AND BINDING EFFECT.

               This Agreement has been duly and validly executed and delivered
by each Loan Party, and each other Loan Document which any Loan Party is
required to execute and deliver on or after the date hereof will have been duly
executed and delivered by such Loan Party on the required date of delivery of
such Loan Document. This Agreement and each other Loan Document constitutes, or
will constitute, legal, valid and binding obligations of each Loan Party which
is or will be a party thereto on and after its date of delivery thereof,
enforceable against such Loan Party in accordance with its terms, except to the
extent that enforceability of any of such Loan Document may be limited by
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other
similar laws affecting the enforceability of creditors' rights generally,
general principles of equity (regardless of whether considered in a proceeding
in equity or at law) or limiting the right of specific performance.

               5.1.5 NO CONFLICT.

               Neither the execution and delivery of this Agreement or the other
Loan Documents by any Loan Party nor the consummation of the transactions herein
or therein contemplated or compliance with the terms and provisions hereof or
thereof by any of them will conflict with, constitute a default under or result
in any breach of (i) the terms and conditions of the certificate of
incorporation, bylaws, certificate of limited partnership, partnership
agreement, certificate of formation, limited liability company agreement or
other organizational documents of such Loan Party, (ii) any applicable Law, in
any material respect, or (iii) any agreement or instrument relating to
Indebtedness which would result in a Material Adverse Change or any other
material agreement or instrument or material order, writ, judgment, injunction
or decree to which such Loan Party or any of its Subsidiaries is a party or by
which it or any of its Subsidiaries is bound or to which it is subject, or
result in the creation or enforcement of any Lien, charge or encumbrance
whatsoever upon any property (now or hereafter acquired) of such

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Loan Party or any of its Subsidiaries (other than Liens, if any, granted under
the Loan Documents and Permitted Liens).

               5.1.6 LITIGATION.

               Except as disclosed as of the Closing Date on SCHEDULE 5.1.6 or,
if applicable, such later date as to which a version of such Schedule is updated
in accordance with Section 5.3, there are no actions, suits, proceedings or
investigations pending or, to the knowledge of any Loan Party, overtly
threatened against any Loan Party or any Subsidiary of such Loan Party at law or
equity before any Official Body which individually or in the aggregate would
result in any Material Adverse Change. None of the Loan Parties or any
Subsidiaries of any Loan Party is in violation of any order, writ, injunction or
any decree of any Official Body which would result in any Material Adverse
Change.

               5.1.7 TITLE TO PROPERTIES.

               Each Loan Party and each Subsidiary of each Loan Party has good
and marketable title to or valid leasehold interest in all properties, assets
and other rights which it purports to own or lease or which are reflected as
owned or leased on its books and records, free and clear of all Liens and
encumbrances except Permitted Liens, and subject to the terms and conditions of
the applicable leases.

               5.1.8 FINANCIAL STATEMENTS.

                    5.1.8.1 HISTORICAL STATEMENTS.

                    The Company has delivered to the Administrative Agent copies
of its audited consolidated year-end financial statements for and as of December
31, 2007, 2008 and 2009 (collectively, "HISTORICAL STATEMENTS"). The Historical
Statements were compiled from the books and records maintained by the Borrowers'
management, are correct and complete in all material respects and fairly
represent the consolidated financial condition of the Company and its
Subsidiaries as of their dates and the results of operations for the fiscal
periods then ended and have been prepared in accordance with GAAP consistently
applied.

                    5.1.8.2 ACCURACY OF FINANCIAL STATEMENTS.

                    As of the Closing Date, neither the Borrowers nor any
Subsidiary of the Borrowers have any material liabilities that are not disclosed
in the Historical Statements or in the notes thereto which would cause a
Material Adverse Change. Since December 31, 2009, no Material Adverse Change has
occurred.

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               5.1.9 USE OF PROCEEDS; MARGIN STOCK.

                    5.1.9.1 GENERAL.

                    The Loan Parties intend to use Letters of Credit and the
proceeds of the Loans in accordance with Section 2.10.

                    5.1.9.2 MARGIN STOCK.

                    None of the Loan Parties or their Subsidiaries engages or
intends to engage principally, or as one of its important activities, in the
business of extending credit for the purpose, immediately, incidentally or
ultimately, of purchasing or carrying margin stock (within the meaning of
Regulation U, T or X as promulgated by the Board of Governors of the United
States Federal Reserve System). No part of the proceeds of any Loan has been or
will be used, immediately, incidentally or ultimately, to purchase or carry any
margin stock or to extend credit to others for the purpose of purchasing or
carrying any margin stock or which is inconsistent with the provisions of the
regulations of the Board of Governors of the United States Federal Reserve
System. Following application of the proceeds of each Loan or drawing under each
Letter of Credit (if applicable), none of the Loan Parties or their Subsidiaries
holds or intends to hold margin stock in such amounts that more than 25% of the
reasonable value of the assets of the Loan Parties and their Subsidiaries on a
consolidated basis are or will be represented by margin stock.

               5.1.10 FULL DISCLOSURE.

               Neither this Agreement nor any other Loan Document, nor any
certificate, statement, agreement or other documents furnished in writing to the
Administrative Agent or any Lender in connection herewith or therewith, contains
any material misstatement of fact or omits to state any material fact necessary
to make the statements contained herein and therein, in light of the
circumstances under which they were made, not materially misleading; provided
that with respect to projected financial information or any information
concerning future proposed and intended activities of the Company and its
Subsidiaries, the Loan Parties represent only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the time (it
being understood that such projections and information are forward looking
statements which by their nature are subject to significant uncertainties and
contingencies, many of which are beyond the Loan Parties' control, and that
actual results may differ, perhaps materially, from those expressed or implied
in such forward looking statements, and no assurance can be given that the
projections will be realized).

               5.1.11 TAXES.

               All federal income tax returns and all other material federal,
state, local and other material tax returns required to have been filed with
respect to each Loan Party and each Subsidiary of each Loan Party have been
filed, and payment or adequate provision has been made for the payment of all
taxes, fees, assessments and other governmental charges which have or may become
due pursuant to said returns or to assessments received, except to the extent
that

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such taxes, fees, assessments and other charges are being contested in good
faith by appropriate proceedings diligently conducted and for which such
reserves or other appropriate provisions, if any, as shall be required by GAAP
shall have been made.

               5.1.12 CONSENTS AND APPROVALS.

               No consent, approval, exemption, order or authorization of, or a
registration or filing with, any Official Body or any other Person is required
by any Law or any agreement in connection with the execution, delivery and
carrying out of this Agreement and the other Loan Documents by any Loan Party,
except as listed as of the Closing Date on SCHEDULE 5.1.12 or, if applicable,
such later date as to which a version of such Schedule is updated in accordance
with Section 5.3, all of which shall have been obtained or made on or prior to
the Closing Date except as otherwise indicated on SCHEDULE 5.1.12.

               5.1.13 NO EVENT OF DEFAULT; COMPLIANCE WITH INSTRUMENTS.

               No event has occurred and is continuing and no condition exists
or will exist after giving effect to the borrowings or other extensions of
credit to be made on the Closing Date under or pursuant to the Loan Documents
which constitutes an Event of Default or Potential Default. None of the Loan
Parties or any Subsidiaries of any Loan Party is in violation of any term of its
certificate of incorporation, bylaws, certificate of limited partnership,
partnership agreement, certificate of formation, limited liability company
agreement or other organizational documents where such violation would
constitute a Material Adverse Change.

               5.1.14 PATENTS, TRADEMARKS, COPYRIGHTS, LICENSES, ETC.

               Each Loan Party and each Subsidiary of each Loan Party owns or
possesses, or has the right to use, all the material patents, trademarks,
service marks, trade names, copyrights, licenses, registrations, franchises,
permits and rights necessary to own and operate its properties and to carry on
its business as presently conducted and planned to be conducted by such Loan
Party or Subsidiary as of the Closing Date, without known possible, alleged or
actual conflict with the rights of others. All patents, trademarks, service
marks, trade names and copyrights of each Loan Party and each Subsidiary of each
Loan Party the absence of which, individually or collectively, would result in a
Material Adverse Change are listed and described on SCHEDULE 5.1.14.

               5.1.15 INSURANCE.

               The Loan Parties maintain insurance with reputable and
financially sound insurers in amounts sufficient to insure the assets and risks
of each Loan Party and each Subsidiary of each Loan Party in accordance with
prudent business practice in the industry of the Loan Parties and their
Subsidiaries.

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               5.1.16 COMPLIANCE WITH LAWS.

               The Loan Parties and their Subsidiaries are in compliance in all
material respects with all applicable Laws (other than Environmental Laws which
are specifically addressed in Section 5.1.21) in all jurisdictions in which any
Loan Party or Subsidiary of any Loan Party is presently, or intends as of the
Closing Date to be, doing business except where the failure to do so would not
constitute a Material Adverse Change.

               5.1.17 MATERIAL CONTRACTS; BURDENSOME RESTRICTIONS.

               No default exists, in any material respect, on the part of any
Loan Party, with respect to any of the material contracts filed or incorporated
by reference in the Company's Annual Report on form 10-K for the fiscal year
ended December 31, 2009. None of the Loan Parties or their Subsidiaries is bound
by any contractual obligation, or subject to any restriction in any organization
document, or any requirement of Law which would result in a Material Adverse
Change.

               5.1.18 INVESTMENT COMPANIES; REGULATED ENTITIES.

               None of the Loan Parties or any Subsidiaries of any Loan Party is
an "investment company" registered or required to be registered under the
Investment Company Act of 1940 or under the "control" of an "investment company"
as such terms are defined in the Investment Company Act of 1940 and shall not
become such an "investment company" or under such "control." None of the Loan
Parties or any Subsidiaries of any Loan Party is subject to any other Federal or
state statute or regulation limiting its ability to incur Indebtedness for
borrowed money.

               5.1.19 PLANS AND BENEFIT ARRANGEMENTS.

               Except to the extent that a Material Adverse Change would not
result therefrom:

                    (i) The Loan Parties are in compliance in all respects with
any applicable provisions of ERISA with respect to all Benefit Arrangements,
Plans and Multiemployer Plans. There has been no Prohibited Transaction with
respect to any Benefit Arrangement or any Plan or, to the best knowledge of the
Loan Parties, with respect to any Multiemployer Plan or Multiple Employer Plan,
which could result in any liability of the Loan Parties. The Loan Parties and
all other members of the ERISA Group have made when due any and all payments
required to be made under any agreement relating to a Multiemployer Plan or a
Multiple Employer Plan or any Law pertaining thereto. With respect to each Plan
and Multiemployer Plan, the Loan Parties and each other member of the ERISA
Group (i) have fulfilled their obligations under the minimum funding standards
of ERISA, (ii) have not incurred any liability to the PBGC (other than the
payment of premiums due in the ordinary course of business), and (iii) have not
had asserted against them any penalty for failure to fulfill the minimum funding
requirements of ERISA. All Plans, Benefit Arrangements and Multiemployer Plans
have been administered in accordance with their terms and applicable Law.

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                    (ii) To the best of the Loan Parties' knowledge, each
Multiemployer Plan and Multiple Employer Plan is able to pay benefits thereunder
when due.

                    (iii) Neither the Loan Parties nor any other member of the
ERISA Group has instituted or intends to institute proceedings to terminate any
Plan.

                    (iv) No event requiring notice to the PBGC under Section
303(k)(4) of ERISA has occurred or is reasonably expected to occur with respect
to any Plan.

                    (v) 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 financial statements reflecting such amounts, exceed the fair market
value of the assets of such Plan as reflected on such financial statements.

                    (vi) Neither the Loan Parties nor any other member of the
ERISA Group has incurred or reasonably expects to incur any withdrawal liability
under ERISA to any Multiemployer Plan or Multiple Employer Plan. Neither the
Loan Parties nor any other member of the ERISA Group has been notified by any
Multiemployer Plan or Multiple Employer Plan that such Multiemployer Plan or
Multiple Employer Plan has been terminated within the meaning of Title IV of
ERISA and, to the best knowledge of the Loan Parties, no Multiemployer Plan or
Multiple Employer Plan is reasonably expected to be reorganized or terminated,
within the meaning of Title IV of ERISA.

                    (vii) To the extent that any Benefit Arrangement is insured,
the Loan Parties have paid when due all premiums required to be paid for all
periods through the Closing Date. To the extent that any Benefit Arrangement is
funded other than with insurance, the Loan Parties have made when due all
contributions required to be paid for all periods through the Closing Date.

                    (viii) All Plans, Benefit Arrangements and Multiemployer
Plans have been administered in accordance with their terms and applicable Law.

               5.1.20 EMPLOYMENT MATTERS.

               Each of the Loan Parties and each of their Subsidiaries is in
compliance with the Labor Contracts and all applicable federal, state and local
labor and employment Laws including those related to equal employment
opportunity and affirmative action, labor relations, minimum wage, overtime,
child labor, medical insurance continuation, worker adjustment and relocation
notices, immigration controls and worker and unemployment compensation, except
where the failure to comply would not constitute a Material Adverse Change.
There are no outstanding grievances, arbitration awards or appeals therefrom
arising out of the Labor Contracts or current or, to the knowledge of any Loan
Party, threatened strikes, picketing, handbilling or other work stoppages or
slowdowns at facilities of any of the Loan Parties or any of their Subsidiaries
which in any case would constitute a Material Adverse Change. The

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Borrowers have delivered to the Administrative Agent true and correct copies of
each of the Labor Contracts (excluding individual employment contracts with
individual employees).

               5.1.21 ENVIRONMENTAL MATTERS.

               Except (i) as disclosed in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2009, including Note 21 to the
Consolidated Financial Statements, to the extent that reserves have been set
aside as set forth in such statements, and provided that such matters would not
result in a Material Adverse Change, or (ii) except to the extent that a
Material Adverse Change would not result therefrom:

                    (i) None of the Loan Parties has received, or has been
overtly threatened with, any Environmental Complaint, whether directed or issued
to such Loan Party or relating or pertaining to any prior owner, operator or
occupant of the Property.

                    (ii) No activity of any Loan Party at the Property is being
or has been conducted in violation of any Environmental Law or Required
Environmental Permit and to the knowledge of any Loan Party, no activity of any
prior owner, operator or occupant of the Property was conducted in violation of
any Environmental Law.

                    (iii) To the knowledge of the Loan Parties, there are no
Regulated Substances present on, in, under, or emanating from, or to any Loan
Party's knowledge emanating to, the Property or any portion thereof which result
in Contamination.

                    (iv) Each Loan Party has all Required Environmental Permits
and all such Required Environmental Permits are in full force and effect.

                    (v) Each Loan Party has submitted to an Official Body and/or
maintains, as appropriate, all Required Environmental Notices.

                    (vi) No structures, improvements, equipment, fixtures,
impoundments, pits, lagoons or aboveground or underground storage tanks located
on the Property contain or use, except in compliance with Environmental Laws and
Required Environmental Permits, Regulated Substances or otherwise are operated
or maintained except in compliance with Environmental Laws and Required
Environmental Permits.

                    (vii) No portion of the Property is identified or to the
knowledge of any Loan Party, proposed to be identified on any list of
contaminated properties or other properties which pursuant to Environmental Laws
are the subject of an investigation or remediation action by an Official Body,
nor to the knowledge of any Loan Party is any portion of any property adjoining
or in the near proximity of such portion of the Property identified or proposed
to be identified on any such list.

                    (viii) No lien or other encumbrance authorized by
Environmental Laws exists against the Property and the Loan Parties have no
reason to believe that such a lien or encumbrance will be imposed.

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               5.1.22 SENIOR DEBT STATUS.

               The Obligations of each Loan Party under this Agreement, the
Notes, the Guaranty Agreement and each of the other Loan Documents to which it
is a party do rank and will rank at least pari passu in priority of payment with
all other Indebtedness of such Loan Party. There is no Lien upon or with respect
to any of the properties or income of any Loan Party or Subsidiary of any Loan
Party which secures Indebtedness or other obligations of any Person except for
Permitted Liens.

               5.1.23 ANTI-TERRORISM LAWS.

                    5.1.23.1 GENERAL.

                    None of the Loan Parties nor or any Subsidiaries of any Loan
Party (or to its knowledge any Affiliate of any Loan Party), is in violation of
any Anti-Terrorism Law or engages in or conspires to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in any Anti-Terrorism Law.

                    5.1.23.2 ANTI-MONEY LAUNDERING.

                    (i) The Loan Parties acknowledge that, pursuant to the
Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and
other applicable anti-money laundering, anti-terrorist financing, government
sanction and "know your client" Laws, whether within Canada or elsewhere
(collectively, including any guidelines or orders thereunder, "AML
LEGISLATION"), the Lenders and the Administrative Agent may be required to
obtain, verify and record information regarding the Loan Parties, their
respective directors, authorized signing officers, direct or indirect
shareholders or other Persons in control of the Loan Parties, and the
transactions contemplated hereby. The Loan Parties shall promptly provide all
such information, including supporting documentation and other evidence, as may
be reasonably requested by any Lender or the Administrative Agent, or any
prospective assign or participant of a Lender or the Administrative Agent, in
order to comply with any applicable AML Legislation, whether now or hereafter in
existence.

                    (ii) If the Administrative Agent has ascertained the
identity of the Loan Parties or any authorized signatories of the Loan Parties
for the purposes of applicable AML Legislation, then the Administrative Agent:

               (a) shall be deemed to have done so as an agent for each Lender,
               and this Agreement shall constitute a "written agreement" in such
               regard between each Lender and the Administrative Agent within
               the meaning of applicable AML Legislation; and

               (b) shall provide to each Lender copies of all information
               obtained in such regard without any representation or warranty as
               to its accuracy or completeness.

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                    Notwithstanding the preceding sentence and except as may
otherwise be agreed in writing, each of the Lenders agrees that the
Administrative Agent has no obligation to ascertain the identity of the Loan
Parties or any authorized signatories of the Loan Parties on behalf of any
Lender, or to confirm the completeness or accuracy of any information it obtains
from the Loan Parties or any such authorized signatory in doing so.

                    5.1.23.3 EXECUTIVE ORDER NO. 13224.

                    None of the Loan Parties, nor or any Subsidiaries of any
Loan Party (or to its knowledge any Affiliate of any Loan Party or, to the
knowledge of any Loan Party, their respective agents acting or benefiting in any
capacity in connection with the Loans, Letters of Credit or other transactions
hereunder), is any of the following (each a "BLOCKED PERSON"):

                    (i) a Person that is listed in the annex to, or is otherwise
subject to the provisions of, the Executive Order No. 13224;

                    (ii) a Person owned or controlled by, or acting for or on
behalf of, any Person that is listed in the annex to, or is otherwise subject to
the provisions of, the Executive Order No. 13224;

                    (iii) a Person or entity with which any Lender is prohibited
from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law;

                    (iv) a Person or entity that commits, threatens or conspires
to commit or supports "terrorism" as defined in the Executive Order No. 13224;

                    (v) a Person or entity that is named as a "specially
designated national" on the most current list published by the U.S. Treasury
Department Office of Foreign Asset Control at its official website or any
replacement website or other replacement official publication of such list, or

                    (vi) a person or entity who is affiliated or associated with
a person or entity listed above.

                    No Loan Party or, to the knowledge of any Loan Party, any of
its agents acting in any capacity in connection with the Loans, Letters of
Credit or other transactions hereunder (i) conducts any business or engages in
making or receiving any contribution of funds, goods or services to or for the
benefit of any Blocked Person, or (ii) deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant
to the Executive Order No. 13224.

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          5.2 CONTINUATION OF REPRESENTATIONS.

               The Loan Parties make the representations and warranties in this
Section 5 on the date hereof and on the Closing Date and each date thereafter on
which a Loan is made or a Letter of Credit is issued as provided in and subject
to Sections 2 and 6.

          5.3 UPDATES TO SCHEDULES.

               The Company, on behalf of all Loan Parties, shall, at the time of
delivery of the financial statements required pursuant to Section 7.3.2 and the
related Compliance Certificate of the Company, provide to the Administrative
Agent in writing such revisions or updates to the Schedules attached hereto
pursuant to Section 5 as may be necessary or appropriate to update or correct
same; provided that, in the case the Company reasonably determines that any such
Schedule is incorrect in any respect which is material (whether material to the
Schedule itself, taken as a whole and in the context of the related
representations and warranties, or otherwise material), the Company, on behalf
of all Loan Parties, shall promptly revise or update same in advance of delivery
of such financial statements and Compliance Certificate; and provided further
that no such Schedule shall be deemed to have been amended, modified or
superseded by any such correction or update, nor shall any breach of warranty or
representation resulting from the inaccuracy or incompleteness of any such
Schedule be deemed to have been cured thereby, unless and until the Required
Lenders shall have accepted in writing such revisions or updates to such
Schedule. References to a particular Schedule in this Agreement shall be deemed
to refer to the most recent updated version of such Schedule, once so accepted.

           6. CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT

               The obligation of each Lender to make Loans and of the
Administrative Agent to issue Letters of Credit hereunder is subject to the
satisfaction of the following conditions:

          6.1 FIRST LOANS AND LETTERS OF CREDIT.

               On the Closing Date:

               6.1.1 OFFICER'S CERTIFICATE.

               The representations and warranties of each of the Loan Parties
contained in Section 5 and in each of the other Loan Documents shall be true and
accurate on and as of the Closing Date in all material respects with the same
effect as though such representations and warranties had been made on and as of
such date (except representations and warranties which relate solely to an
earlier date or time, which representations and warranties shall be true and
correct on and as of the specific dates or times referred to therein); no Event
of Default or Potential Default shall have occurred and be continuing or shall
exist; and there shall be delivered to the Administrative Agent for the benefit
of each Lender a certificate of the Company

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on behalf of each of the Loan Parties (other than the German Borrowers which
shall comply with Section 7.1.12), dated the Closing Date and signed by a
Responsible Officer of the Company on behalf of each of the Loan Parties, to
each such effect.

               6.1.2 SECRETARY'S CERTIFICATE.

               There shall be delivered to the Administrative Agent for the
benefit of each Lender a certificate dated the Closing Date and signed by the
Secretary or an Assistant Secretary of each of the Loan Parties (other than the
German Borrowers and the English Borrowers, which shall comply with Section
7.1.12), certifying as appropriate as to:

                    (i) the names of the officer or officers authorized to sign
this Agreement and the other Loan Documents and the true signatures of such
officer or officers and specifying the Authorized Officers permitted to act on
behalf of each Loan Party for purposes of this Agreement and the true signatures
of such officers, on which the Administrative Agent and each Lender may
conclusively rely;

                    (ii) copies of resolutions of the board of directors or
comparable managing body approving and adopting the Loan Documents, the
transactions contemplated therein and authorizing the execution, delivery and
performance thereof, certified by the Secretary (or equivalent) and, as to the
authority of such Secretary (or equivalent), an Authorized Officer, of each Loan
Party as of the Closing Date to be true and correct as of such date; and

                    (iii) copies of its organizational documents, including its
certificate of incorporation, bylaws, certificate of limited partnership,
partnership agreement, certificate of formation, and limited liability company
agreement as in effect on the Closing Date certified by the appropriate state
official where such documents are filed in a state office (to the extent such
documents are filed in a state office) together with certificates from the
appropriate state officials as to the continued existence and good standing of
each Loan Party in each state where organized or qualified to do business.

               6.1.3 DELIVERY OF LOAN DOCUMENTS.

               The Guaranty Agreement shall have been duly executed and
delivered to the Administrative Agent for the benefit of the Lenders.

               6.1.4 OPINION OF COUNSEL.

                    (i) There shall be delivered to the Administrative Agent for
the benefit of each Lender a written opinion of counsel to each of the Loan
Parties (other than counsel for the German Borrowers and the English Borrowers;
opinions of such counsel shall be delivered in accordance with Section 7.1.12),
including Shearman & Sterling LLP, dated the Closing Date and in form and
substance reasonably satisfactory to the Administrative Agent and its counsel as
to the matters set forth in EXHIBIT 6.1.4.

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               6.1.5 LEGAL DETAILS.

               All legal details and proceedings in connection with the
transactions contemplated by this Agreement and the other Loan Documents shall
be in form and substance satisfactory to the Administrative Agent and counsel
for the Administrative Agent, and the Administrative Agent shall have received
all such other counterpart originals or certified or other copies of such
documents and proceedings in connection with such transactions, in form and
substance satisfactory to the Administrative Agent and said counsel, as the
Administrative Agent or said counsel may reasonably request.

               6.1.6 PAYMENT OF FEES.

               The Borrowers shall have paid or caused to be paid to the
Administrative Agent for itself and for the account of the Lenders, as
appropriate, to the extent not previously paid all commitment and other fees
accrued through the Closing Date and the costs and expenses for which the
Administrative Agent and the Lenders are entitled to be reimbursed.

               6.1.7 CONSENTS.

               All material consents required to effectuate the transactions
contemplated hereby as set forth on SCHEDULE 5.1.12 shall have been obtained.

               6.1.8 OFFICER'S CERTIFICATE REGARDING MACS.

               Since December 31, 2009, no Material Adverse Change shall have
occurred; and there shall have been delivered to the Administrative Agent for
the benefit of each Lender a certificate dated the Closing Date and signed by a
Responsible Officer of the Company to such effect.

               6.1.9 NO VIOLATION OF LAWS.

               The making of the Loans and the issuance of the Letters of Credit
shall not contravene any material Law applicable to any Loan Party.

               6.1.10 NO ACTIONS OR PROCEEDINGS; NO MATERIAL LITIGATION.

               No action, proceeding, investigation, regulation or legislation
shall have been instituted, threatened or proposed before any court,
governmental agency or legislative body to enjoin, restrain or prohibit, or to
obtain damages in respect of, this Agreement, the other Loan Documents or the
consummation of the transactions contemplated hereby or thereby. No litigation,
which if adversely decided would reasonably be expected to result in a Material
Adverse Change, shall have been instituted or overtly threatened against any of
the Loan Parties, except for unresolved environmental matters disclosed in the
Company's Annual Report Form 10-K for the fiscal year ended December 31, 2009,
including Note 21 to the Consolidated Financial Statements.

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               6.1.11 OTHER REQUIREMENTS.

               The Loan Parties shall have delivered evidence of insurance
complying with Section 7.1.3, the Administrative Agent shall be satisfied as to
the amount and nature of all tax, ERISA, employee retirement benefit and other
contingent liabilities to which the Loan Parties may be subject, and the Prior
Senior Credit Facility shall have been terminated and satisfied in form and
substance reasonably satisfactory to the Administrative Agent.

          6.2 EACH ADDITIONAL LOAN OR LETTER OF CREDIT.

               At the time of making any Loans or issuing any Letters of Credit
other than Loans made or Letters of Credit issued on the Closing Date and after
giving effect to the proposed extensions of credit: the representations and
warranties of the Loan Parties contained in Section 5 and in the other Loan
Documents shall be true in all material respects on and as of the date of such
additional Loan or Letter of Credit with the same effect as though such
representations and warranties had been made on and as of such date (except
representations and warranties which expressly relate solely to an earlier date
or time, which representations and warranties shall be true and correct on and
as of the specific dates or times referred to therein); no Event of Default or
Potential Default shall have occurred and be continuing or shall exist; and the
Borrowers shall have delivered to the Administrative Agent a duly executed and
completed Loan Request or application for a Letter of Credit as the case may be.

          6.3 LOANS TO FUND ACQUISITIONS.

               In connection with the making of any Loan or issuance of any
Letter of Credit to finance any Permitted Acquisition, the Company shall comply
with Section 7.2.6 and, if applicable, deliver any updates to disclosure
schedules required by Section 5.3.

                                  7. COVENANTS

          7.1 AFFIRMATIVE COVENANTS.

               The Loan Parties, jointly and severally, covenant and agree that
until payment in full of the Loans, Reimbursement Obligations and Letter of
Credit Borrowings, and interest thereon, expiration or termination of all
Letters of Credit, satisfaction of all of the Loan Parties' other Obligations
(other than non-assessed contingent reimbursement obligations) under the Loan
Documents and termination of the Commitments, the Loan Parties shall comply at
all times with the following affirmative covenants:

               7.1.1 PRESERVATION OF EXISTENCE, ETC.

               Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain its legal existence as a corporation, limited partnership or
limited liability company and its license or qualification and good standing in
each jurisdiction in which its ownership or lease of property or the nature of
its business makes such license or qualification necessary, except (i) as

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otherwise expressly permitted in Section 7.2.6 or (ii) except to the extent the
failure to do so would not be reasonably expected to result in a Material
Adverse Change.

               7.1.2 PAYMENT OF LIABILITIES, INCLUDING TAXES, ETC.

               Each Loan Party shall, and shall cause each of its Subsidiaries
to, duly pay and discharge all material liabilities to which it is subject or
which are asserted against it, promptly as and when the same shall become due
and payable, including all material taxes, assessments and governmental charges
upon it or any of its properties, assets, income or profits, prior to the date
on which penalties attach thereto, except to the extent that such material
liabilities, including taxes, assessments or charges, are being contested in
good faith and by appropriate and lawful proceedings diligently conducted and
for which such reserve or other appropriate provisions, if any, as shall be
required by GAAP shall have been made, but only to the extent that failure to
discharge any such material liabilities would result in a Material Adverse
Change, provided that the Loan Parties and their Subsidiaries will pay all such
material liabilities forthwith upon the commencement of proceedings to foreclose
any Lien which may have attached as security therefor.

               7.1.3 MAINTENANCE OF INSURANCE.

               Each Loan Party shall, and shall cause each of its Subsidiaries
to, insure its properties and assets against loss or damage by fire and such
other insurable hazards as such assets are commonly insured (including fire,
extended coverage, property damage, workers' compensation, public liability and
business interruption insurance) and against other risks (including errors and
omissions) in such amounts as similar properties and assets are insured by
prudent companies in similar circumstances carrying on similar businesses, and
with reputable and financially sound insurers, including self-insurance to the
extent customary.

               7.1.4 MAINTENANCE OF PROPERTIES AND LEASES.

               Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain in good repair, working order and condition (ordinary wear and tear
excepted) in accordance with the general practice of other businesses of similar
character and size, all of those properties useful or necessary to its business,
and from time to time, such Loan Party will make or cause to be made all
appropriate repairs, renewals or replacements thereof, except, in each case,
where the failure to do so would not reasonably be expected to result in a
Material Adverse Change.

               7.1.5 MAINTENANCE OF PATENTS, TRADEMARKS, ETC.

               Each Loan Party shall, and shall cause each of its Subsidiaries
to, maintain in full force and effect all patents, trademarks, service marks,
trade names, copyrights, licenses, franchises, permits and other authorizations
deemed necessary by such Loan Party for the ownership and operation of its
properties and business if the failure so to maintain the same would constitute
a Material Adverse Change.

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               7.1.6 VISITATION RIGHTS.

               Each Loan Party shall, and shall cause each of its Subsidiaries
to, permit any of the officers or authorized employees or representatives of the
Administrative Agent, or any of the Lenders through the Administrative Agent, to
visit and inspect any of its properties and to examine and make excerpts from
its books and records and discuss its business affairs, finances and accounts
with its officers, all in such detail and at such times during normal business
hours and as often as any of the Lenders may reasonably request, provided that
the Administrative Agent or the applicable Lender, through the Administrative
Agent, shall provide the Borrowers with reasonable notice prior to any visit or
inspection, and provided further that if no Event of Default or Potential
Default has occurred and is continuing, such visits and inspections shall be
limited to no more frequently than once per fiscal year. In the event any Lender
desires to visit and inspect the properties of any Loan Party as provided in
this Section, such Lender shall make reasonable efforts to ensure that such
visit and inspection is conducted contemporaneously with any visit and
inspection to be performed by the Administrative Agent.

               7.1.7 KEEPING OF RECORDS AND BOOKS OF ACCOUNT.

               The Borrowers shall, and shall cause each Subsidiary of the
Borrowers to, maintain and keep proper books of record and account which enable
the Borrowers and their Subsidiaries to issue financial statements in accordance
with GAAP and as otherwise required by applicable Laws of any Official Body
having jurisdiction over the Borrowers or any Subsidiary of the Borrowers, and
in which full, true and correct entries shall be made in all material respects
of all its dealings and business and financial affairs.

               7.1.8 PLANS AND BENEFIT ARRANGEMENTS.

               The Loan Parties shall, and shall cause each other member of the
ERISA Group to, comply with ERISA, the Internal Revenue Code and other
applicable Laws applicable to Plans and Benefit Arrangements except where such
failure, alone or in conjunction with any other failure, would not result in a
Material Adverse Change. Without limiting the generality of the foregoing, the
Loan Parties shall cause all of their Plans and all Plans maintained by any
member of the ERISA Group to be funded in accordance with the minimum funding
requirements of ERISA and shall make, and cause each member of the ERISA Group
to make, in a timely manner, all contributions due to Plans, Benefit
Arrangements and Multiemployer Plans.

               7.1.9 COMPLIANCE WITH LAWS.

               Each Loan Party shall, and shall cause each of its Subsidiaries
to, comply with all applicable Laws, including all Environmental Laws, in all
respects, provided that it shall not be deemed to be a violation of this Section
7.1.9 if any failure to comply with any Law would not result in fines,
penalties, remediation costs, other similar liabilities or injunctive relief
which in the aggregate would constitute a Material Adverse Change.

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               7.1.10 JOINDER OF GUARANTORS AND BORROWERS.

               Any Material Subsidiary of the Borrowers which is required to
join this Agreement as a Guarantor or any Subsidiary which elects to join this
Agreement as a Borrower pursuant to Section 7.2.9 shall execute and deliver to
the Administrative Agent (i) a Guarantor Joinder or Borrower Joinder, as
applicable, pursuant to which it shall join as a Guarantor or Borrower each of
the Loan Documents to which the Guarantors or Borrowers are parties; and (ii)
documents in substantially the forms described in Sections 6.1.1 through 6.1.4
and 6.1.7 (or, in the case of an English Borrowers, Sections 6.1.1 through
6.1.3, 7.1.12 and 6.1.7; or, in the case of a German Borrower, Sections 7.1.12
and 6.1.7), modified as appropriate to relate to such Material Subsidiary. The
Loan Parties shall deliver such items referred to in the preceding clauses (i)
and (ii) to the Administrative Agent (a) in connection with the formation of a
domestic Material Subsidiary, within ten (10) Business Days after the date of
the filing of such Subsidiary's articles of incorporation if the Subsidiary is a
corporation, the date of the filing of its certificate of limited partnership if
it is a limited partnership or the date of its organization if it is an entity
other than a limited partnership or corporation, (b) in connection with the
formation of a Material Subsidiary that is a Foreign Subsidiary, within twenty
(20) Business Days after the date of the filing of such Subsidiary's articles of
incorporation if the Subsidiary is a corporation, the date of the filing of its
certificate of limited partnership if it is a limited partnership or the date of
its organization if it is an entity other than a limited partnership or
corporation, (c) in connection with the acquisition of a domestic Material
Subsidiary, within ten (10) Business Days of consummation of the acquisition
transaction, (d) in connection with the acquisition of a Material Subsidiary
that is a Foreign Subsidiary, within twenty (20) Business Days of consummation
of the acquisition transaction, or (e) in the event of any other occurrence or
circumstance resulting in the existence of a Material Subsidiary of the
Borrowers, within ten (10) Business Days of such Person becoming a Material
Subsidiary of the Borrowers in the case of a domestic Material Subsidiary and
twenty (20) Business Days of such Person becoming a Material Subsidiary in the
case of a Material Subsidiary that is a Foreign Subsidiary, provided that in
each case the Administrative Agent may permit additional time, not to exceed
five (5) Business Days, for a Material Subsidiary to comply with this Section
7.1.10.

               7.1.11 ANTI-TERRORISM LAWS.

               The Loan Parties shall not knowingly (i) conduct any business or
engage in any transaction or dealing with any Blocked Person, including the
making or receiving any contribution of funds, goods or services to or for the
benefit of any Blocked Person, (ii) deal in, or otherwise engage in any
transaction relating to, any property or interests in property blocked pursuant
to the Executive Order No. 13224; or (iii) engage in or conspire to engage in
any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in the
Executive Order No. 13224, the USA Patriot Act or any other Anti-Terrorism Law.
The Company (or, if required by applicable Law, the Borrowers) shall deliver to
Lenders any certification or other evidence requested from time to time by any
Lender in its sole discretion, confirming Borrowers' compliance with this
Section 7.1.11.

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               7.1.12 GERMAN AND ENGLISH BORROWERS.

               On or before the Closing Date, and such other times as may be
required pursuant to the provisions of this Agreement, the applicable Loan
Parties shall complete all of the following actions:

                    (1) German Borrowers:

                         (i) Authorization. The German Borrowers shall take all
appropriate corporate action required to authorize and ratify the execution and
delivery of the Loan Documents by the German Borrowers and the consummation of
the transactions thereunder by such German Borrowers.

                         (ii) Officer's Certificate. Each of the German
Borrowers shall deliver to the Administrative Agent an officer's certificate in
relation to each such German Borrower in the form described in Sections 6.1.1
and 6.1.2 as conformed to German market standard and containing the attachments
listed in clauses (i), (ii) and (iii) of Section 6.1.2, which in relating to
clauses (i) and (iii) thereof shall consist of: (a) an up-to-date extract from
the commercial register (Handelsregisterausdruck); (b) a copy of the current
articles of association (Satzung) certified by the commercial register, or a
copy of the current partnership agreement (Gesellschaftsvertrag), as applicable;
(c) if applicable, a copy of the current shareholder list certified by the
commercial register; (d) a copy of a resolution of the shareholders of such
German Borrower; and (e) if applicable, a copy of a resolution of the
supervisory board (Aufsichtsrat) and/or advisory board (Beirat) of each such
German Borrower; in the case of the preceding items (d) and (e) above, approving
the terms of, and the transactions contemplated by, this Agreement and the Loan
Documents to which each such German Borrower is or is to be a party.

                         (iii) Opinion of Counsel. The German Borrowers shall
deliver to the Administrative Agent an Opinion of their German counsel in a form
acceptable to the Administrative Agent which confirms the capacity of the German
Borrowers in execution and performance of the relevant Loan Documents, and
confirms the enforceability under the Laws of Germany of a judgment rendered
against such German Borrowers under the Laws of the United States.

                    (2) English Borrowers:

                         (i) Officer's Certificate. Each of the English
Borrowers shall deliver to the Administrative Agent an officer's certificate in
relation to each such English Borrower in the form described in Sections 6.1.1
and 6.1.2 as conformed to English market standard and containing as attachments
copies of the current memorandum and articles of association of each such
English Borrower approving the terms of, and the transactions contemplated by,
this Agreement and the Loan Documents to which each such English Borrower is or
is to be a party.

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                         (ii) Opinion of Counsel. The English Borrowers shall
deliver to the Administrative Agent an Opinion of its English counsel in a form
acceptable to the Administrative Agent which confirms the matters described in
Section 6.1.4 with respect to the English Borrowers required to be confirmed by
the Administrative Agent, and confirms the enforceability under the Laws of
England and Wales of a judgment rendered against such English Borrowers under
the Laws of the United States.

          7.2 NEGATIVE COVENANTS.

               The Loan Parties, jointly and severally, covenant and agree that
until payment in full of the Loans, Reimbursement Obligations and Letter of
Credit Borrowings and interest thereon, expiration or termination of all Letters
of Credit, satisfaction of all of the Loan Parties' other Obligations (other
than non-assessed contingent reimbursement obligations) under the Loan Documents
and termination of the Commitments, the Loan Parties shall comply with the
following negative covenants:

               7.2.1 INDEBTEDNESS.

               Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time create, incur, assume or suffer to exist any
Indebtedness, except:

                    (i) Indebtedness under the Loan Documents;

                    (ii) existing Indebtedness as set forth on SCHEDULE 7.2.1;

                    (iii) Indebtedness incurred pursuant to capitalized leases;

                    (iv) the 2006 Senior Notes in a maximum principal amount
outstanding not to exceed $200,000,000, at any time, and the 2010 Senior Notes,
in a maximum principal amount outstanding not to exceed $100,000,000;

                    (v) Indebtedness secured by Purchase Money Security
Interests;

                    (vi) Indebtedness of a Loan Party to another Loan Party
(subject to compliance with Section 7.2.4(v)), provided that such Indebtedness
is subordinated to the Obligations pursuant to the terms and conditions of the
Intercompany Subordination Agreement, provided further that Indebtedness
initially incurred by the Company to Pulp Wood and immediately contributed by
Pulp Wood to GPW VA Timberlands or a Monetization Entity (after which time such
Indebtedness constituted a portion of the Permitted Timberland Intercompany
Indebtedness and/or Permitted Additional Timberland Intercompany Indebtedness)
shall not be subordinated to the Obligations and shall not constitute
"Intercompany Indebtedness" under the Intercompany Subordination Agreement;

                    (vii) any Interest Rate, Currency and Commodity Hedge;

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                    (viii) Guaranties by the Loan Parties or their Subsidiaries
permitted under Section 7.2.3;

                    (ix) Permitted Timberland Indebtedness of GPW VA
Timberlands;

                    (x) Permitted Additional Timberland Indebtedness of GPW VA
Timberlands or a Monetization Entity in an aggregate amount not to exceed
$80,000,000.00 outstanding at any time;

                    (xi) unsecured Indebtedness incurred pursuant to or to
finance a Permitted Acquisition;

                    (xii) Indebtedness of the Receivables Entity under the, or
in connection with a, Permitted Accounts Receivable Program;

                    (xiii) Permitted Timberland Intercompany Indebtedness in an
aggregate principal amount not to exceed $15,000,000.00 outstanding at any time;

                    (xiv) Permitted Additional Timberland Intercompany
Indebtedness in an aggregate principal amount not to exceed $15,000,000.00
outstanding at any time;

                    (xv) Fox River OU3-5 Related Debt;

                    (xvi) refinancings, refundings, renewals or extensions of
Indebtedness permitted by

                    (A) clauses (ii) or (iv), provided that (x) the amount of
such Indebtedness is not increased at the time of such refinancing, refunding,
renewal or extension except by an amount equal to a reasonable premium or other
reasonable amount paid, and fees and expenses reasonably incurred, in connection
with such refinancing and by an amount equal to any existing commitments
unutilized thereunder, and (y) unless otherwise consented by the Administrative
Agent, the terms relating to interest, amortization, maturity, collateral (if
any), recourse, and subordination (if any), and other material terms of any such
refinancing, refunding, renewing or extending Indebtedness, and of any agreement
entered into and of any instrument issued in connection therewith, do not
materially differ from those applicable to the original Indebtedness permitted
hereunder except to the extent necessary to conform with prevailing market
terms; or

                    (B) clauses (ix), (x), (xiii) and (xiv), provided that (x)
the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses
reasonably incurred, in connection with such refinancing and by an amount equal
to any existing commitments unutilized thereunder, and (y) unless otherwise
consented by the Administrative Agent, the terms relating to interest,
amortization,

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maturity, collateral (if any), recourse, and subordination (if any), and other
material terms of any such refinancing, refunding, renewing or extending
Indebtedness, and of any agreement entered into and of any instrument issued in
connection therewith, do not materially differ from those applicable to the
original Indebtedness permitted hereunder except to the extent necessary to
conform with prevailing market terms;

                    (xvii) unsecured Indebtedness not otherwise permitted under
one of the sub-clauses of this Section 7.2.1, in an aggregate amount not to
exceed $75,000,000.00 outstanding at any time; and

                    (xviii) secured Indebtedness and other secured obligations
in an aggregate principal amount not to exceed $30,000,000.00 outstanding at any
time, to the extent that the Liens securing such Indebtedness and other
obligations are otherwise permitted under Section 7.2.2.

               7.2.2 LIENS.

               Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time create, incur, assume or suffer to exist any
Lien on any of its property or assets, tangible or intangible, now owned or
hereafter acquired, or agree or become liable to do so, except Permitted Liens.

               7.2.3 GUARANTIES.

               Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time, directly or indirectly, become or be liable in
respect of any Guaranty of Indebtedness, or assume, guarantee, become surety
for, endorse or otherwise agree, become or remain directly or contingently
liable upon or with respect to any Indebtedness of any other Person, except for
Guaranties of the Loan Parties and their Subsidiaries of Indebtedness of other
Loan Parties or their Subsidiaries, to the extent such Indebtedness is permitted
under Section 7.2.1 (other than clause (viii) of such Section), and then only so
long as such Guaranties would not violate Sections 7.2.4, 7.2.9 and 7.2.17.

               7.2.4 LOANS AND INVESTMENTS.

               Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, at any time make or suffer to remain outstanding any loan
or advance to, or purchase, acquire or own any stock, bonds, notes or securities
of, or any partnership interest (whether general or limited) or limited
liability company interest in, or any other investment or interest in, or make
any capital contribution to, any other Person, except:

                    (i) investments identified on Part I of Schedule 7.2.4
hereto;

                    (ii) trade credit extended on usual and customary terms in
the ordinary course of business;

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                    (iii) loans or advances to employees, officers or directors
in the ordinary course of business in an aggregate principal amount not to
exceed $2,000,000.00 at any time outstanding, provided that such loans and
advances shall comply with all applicable Law;

                    (iv) Permitted Investments;

                    (v) (a) loans and advances to Foreign Loan Parties existing
as of the Closing Date identified on Part II of Schedule 7.2.4 hereto, together
with any refinancings, refundings, renewals or extensions thereof provided that
the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to a
reasonable premium or other reasonable amount paid, and fees and expenses
reasonably incurred, in connection with such refinancing and by an amount equal
to any existing commitments unutilized thereunder, (b) other loans and advances
to Foreign Loan Parties existing after the Closing Date in an aggregate amount
not to exceed $20,000,000, provided that if the aggregate amount of other loans
and advances to Foreign Loan Parties existing after the Closing Date exceeds
$20,000,000, an Event of Default shall not occur so long as the Loan Parties
pledge to the Administrative Agent, for its benefit and the benefit of the
Lenders, the required amount of Pledged Loans pursuant to Section 10.19, (c)
loans, advances and investments to and in Loan Parties which are not Foreign
Loan Parties, and (d) investments, not in the form of loans or advances, in
Foreign Loan Parties;

                    (vi) Permitted Acquisitions;

                    (vii) loans and investments in connection with a Permitted
Accounts Receivable Program;

                    (viii) additional investments to or in a Person, provided
that such investments measured at the time of the making thereof (determined
without regard to any write-down or write-offs thereof and net of cash payments
of principal in the case of loans and cash equity returns, whether as a dividend
or a redemption in the case of equity investments) do not exceed in the
aggregate the greater of $60,000,000.00 and 5% of Consolidated Total Assets as
determined as of the most recent fiscal year and for which financial statements
are required to be delivered hereunder;

                    (ix) receivables, prepaid expenses or deposits owing to the
Borrowers or any receivables, prepaid expenses, deposits or advances to
suppliers, in each case if created, acquired or made in the ordinary course of
business and payable or dischargeable in accordance with customary trade terms;

                    (x) Guaranties by the Loan Parties of Indebtedness of (a)
other Loan Parties and (b) other Non-Loan Party Subsidiaries, to the extent such
Guaranties are permitted under Section 7.2.3 and such Indebtedness is permitted
under Section 7.2.1;

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                    (xi) debt securities, seller notes and other similar
investments made as a result of the receipt of partial non-cash consideration
from a sale of assets which is permitted hereunder (excluding sales of
timberland); and

                    (xii) (a) the Glawson Note and (b) other similar investments
in the form of Indebtedness from timberland purchasers to finance the purchase
price under Permitted Timberland Installment Sales in an aggregate amount not to
exceed $80,000,000.00 outstanding at any time, which Indebtedness is monetized
through the issuance of Permitted Timberland Indebtedness or Permitted
Additional Timberland Indebtedness.

               7.2.5 DIVIDENDS AND RELATED DISTRIBUTIONS.

               Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to make or pay, or agree to become or remain liable to make or
pay, any Restricted Payment unless no Material Event of Default exists or would
be caused thereby, except (a) dividends or other distributions payable to a Loan
Party or a Non-Loan Party Subsidiary, provided that Loan Parties may only make
dividends and distributions to Non-Loan Party Subsidiaries to the extent a
dividend or distribution in a corresponding amount is also made (concurrently or
immediately thereafter) from the recipient Non-Loan Party Subsidiary to a Loan
Party; (b) dividend payments or other distributions payable solely in the common
stock or other common equity interests of such Person; (c) in the ordinary
course of business or consistent with past practices, repurchase, retire or
otherwise acquire for value equity interests (including any restricted stock or
restricted stock units) held by any present, future or former employee,
director, officer or consultant (or any Affiliate, spouse, former spouse, other
immediate family member, successor, executor, administrator, heir, legatee or
distributee of any of the foregoing) of the Company or any of its Subsidiaries
pursuant to any employee, management or director benefit plan or any agreement
(including any stock subscription or shareholder agreement) with any employee,
director, officer or consultant of the Company or any Subsidiary; (d) the
proceeds of which shall be used to pay customary salary, bonus and other
benefits payable to officers; (e) dividends permitted to be made hereunder
within sixty (60) days of the date of declaration thereof; and (f) other
Restricted Payments in an aggregate amount not to exceed $5,000,000.00 in any
fiscal year; subject, in each case, to compliance with Section 7.2.9.

               7.2.6 LIQUIDATIONS, MERGERS, CONSOLIDATIONS, ACQUISITIONS.

               Each of the Loan Parties shall not, and shall permit any of its
Subsidiaries to, dissolve, liquidate or wind-up its affairs, or become a party
to any merger or consolidation, or acquire by purchase, lease or otherwise all
or substantially all of the assets or capital stock or other equity interests of
any other Person, and further provided that

                    (i) (a) any Loan Party other than the Company or any
Non-Loan Party Subsidiary may consolidate or merge into another Loan Party or
Non-Loan Party Subsidiary, (b) any Loan Party may acquire whether by purchase,
merger, lease or otherwise, all or substantially all of the assets or capital
stock or other equity interests of another Loan Party (other than the Company)
or a Non-Loan Party Subsidiary, and (c) any Non-Loan Party Subsidiary may
acquire, whether by purchase, merger, lease or otherwise, all or substantially
all

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of the assets or capital stock or other equity interests of a Loan Party (other
than the Company) or another Non-Loan Party Subsidiary, in each case subject to
compliance with Sections 7.2.4, 7.2.9 and 7.2.17, and

                    (ii) any Loan Party may acquire, whether by purchase or by
merger, (x) all of the ownership interests of any other Person or (y)
substantially all of assets of another Person or of a business or division of
any other Person (each an "PERMITTED ACQUISITION"), provided that each of the
following requirements is met:

                         (A) if any Loan Party acquires the ownership interests
in such Person, such Person shall, if required pursuant to Section 7.2.9,
execute a Borrower Joinder or Guarantor Joinder and join this Agreement as a
Borrower or Guarantor pursuant to Section 7.1.10 and otherwise comply with
Section 7.1.10 within the time periods set forth therein (including any extended
time period applicable thereunder);

                         (B) the board of directors or other equivalent
governing body of such Person shall have approved such Permitted Acquisition
and, if the Loan Parties shall use any portion of the Loans to fund such
Permitted Acquisition, the Loan Parties also shall have delivered to the Lenders
written evidence of the approval of the board of directors (or equivalent body)
of such Person for such Permitted Acquisition;

                         (C) the business acquired, or the business conducted by
the Person whose ownership interests are being acquired, as applicable, shall be
substantially the same as one or more line or lines of business conducted by the
Loan Parties and shall comply with Section 7.2.10;

                         (D) no Potential Default or Event of Default shall
exist immediately prior to and after giving effect to such Permitted
Acquisition;

                         (E) the Company shall demonstrate that the Borrowers
shall be in pro forma compliance with the covenants contained in Sections 7.2.15
and 7.2.16 after giving effect to such Permitted Acquisition (including in such
computation, Indebtedness or other liabilities assumed or incurred in connection
with such Permitted Acquisition and including income earned or expenses incurred
by the Person, business or assets to be acquired as more fully provided herein)
by delivering at least five (5) Business Days prior to such Permitted
Acquisition a certificate in substantially the form of EXHIBIT 7.2.6 evidencing
such pro forma compliance;

                         (F) if the Leverage Ratio (after taking into account
the pro forma effect of the Permitted Acquisition) is in excess of 3.25 to 1.00,
then Required Lenders shall have consented in writing thereto prior to its
consummation;

                         (G) the Loan Parties deliver such updates to Schedules
required under Sections 5.3 and 6.3; and

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                         (H) the Loan Parties shall deliver to the
Administrative Agent at least five (5) Business Days before consummation of such
Permitted Acquisition a copy of the definitive acquisition agreement(s) relating
to such Permitted Acquisition, including all schedules and exhibits thereto,
together with such other information about such Person and its assets as the
Administrative Agent may reasonably require; and

                    (iii) any Subsidiary of the Company may liquidate, dissolve
or wind-up its affairs , including any such change necessary to consummate a
transaction permitted elsewhere under this Section 7.2.6, provided that (a) any
liquidation, winding up or dissolution of a Loan Party relating to a disposition
of its assets to a Non-Loan Party Subsidiary shall comply with Sections 7.2.4,
7.2.7 and 7.2.9, (b) at least five (5) Business Days') prior written notice
detailing such proposed action shall be delivered by the Company to the
Administrative Agent and the Lenders if such proposed action relates to a Loan
Party or its assets, and (c) no such action that would be materially adverse to
the Lenders may be taken without obtaining the prior written consent of the
Required Lenders.

               7.2.7 DISPOSITIONS OF ASSETS OR SUBSIDIARIES.

               Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, sell, convey, assign, lease, abandon or otherwise transfer
or dispose of, voluntarily or involuntarily, any of its properties or assets,
tangible or intangible (including sale, assignment, discount or other
disposition of accounts, contract rights, chattel paper, equipment or general
intangibles with or without recourse or of capital stock, shares of beneficial
interest, partnership interests or limited liability company interests of a
Subsidiary of such Loan Party), except for the following:

                    (i) transactions involving the sale of inventory in the
ordinary course of business;

                    (ii) any sale, transfer or lease of assets in the ordinary
course of business which are obsolete, worn out or no longer necessary or
required in the conduct of such Loan Party's or such Subsidiary's business;

                    (iii) any sale, transfer or lease of assets by (a) one Loan
Party or a Non-Loan Party Subsidiary, to a Loan Party, (b) a Non-Loan Party
Subsidiary to another Non-Loan Party Subsidiary, or (c) a Loan Party to a
Non-Loan Party Subsidiary, so long as the aggregate market value of sales,
transfers or leases of assets by Loan Parties to Non-Loan Party Subsidiaries
does not exceed 5% of Consolidated Total Assets at any time, subject in each
case to compliance with Sections 7.2.4, 7.2.5, 7.2.9 and 7.2.17; and

                    (iv) sales or other transfers of accounts receivables and
related rights of the Company and its Subsidiaries pursuant to or in connection
with a Permitted Accounts Receivable Program;

                    (v) any sale of assets not listed in clauses (i) through
(iv) above provided that (A) no Event of Default shall exist or shall result
from such disposition, and

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(B) the aggregate net book value of all assets so sold by the Loan Parties and
their Subsidiaries pursuant to this clause (v) shall not exceed in any fiscal
year 10% of the Consolidated Total Assets measured as of the end of the previous
fiscal year (such 10% figure shall be referred to as "AVAILABILITY"), provided
that to the extent that such value of assets sold is less than Availability in
such fiscal year (the difference being, the "UNUSED PORTION"), such Unused
Portion may be carried over to the next fiscal year (but not to subsequent
fiscal years) and increase Availability in such next fiscal year by such amount,
provided further that the aggregate net book value of all assets sold in any two
consecutive fiscal years may not exceed 20% of Consolidated Total Assets
measured at the beginning of such two-consecutive fiscal year period;

                    (vi) any sale, transfer or lease of assets, other than those
specifically excepted pursuant to clauses (i) through (v) above, which is
approved by the Required Lenders;

                    (vii) any installment sale of timberland in connection with
a timberland installment note monetization transaction or which is otherwise
consented to by Administrative Agent (a "PERMITTED TIMBERLAND INSTALLMENT
SALE"); and

                    (viii) any sale, conveyance, assignment, transfer, lease or
disposition of assets among the Company and its Subsidiaries to the extent
permitted under Section 7.2.1, 7.2.2, 7.2.3, 7.2.4, 7.2.5 or 7.2.6.

               7.2.8 AFFILIATE TRANSACTIONS.

               Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, enter into or carry out any transaction (including
purchasing property or services from or selling property or services to any
Affiliate of any Loan Party or other Person other than another Loan Party)
unless such transaction (i) is not otherwise prohibited by this Agreement, (ii)
is entered into in the ordinary course of business upon fair and reasonable
arm's-length terms and conditions which are fully disclosed to the
Administrative Agent (with public filing of a description of such transaction
with the SEC constituting such full disclosure), and is in accordance with all
applicable Law, and, as applicable, is permitted by Section 7.2.1, 7.2.2, 7.2.3,
7.2.4, 7.2.5, 7.2.6 or 7.2.7, (iii) involves any employment agreement entered
into by the Company or any of the Subsidiaries in the ordinary course of
business, or (iv) is in existence as of the Closing Date and is reflected in the
Company's Report on Form 10-K as filed with the SEC for fiscal year 2009.

               7.2.9 SUBSIDIARIES.

               Each of the Loan Parties shall not, and shall not permit any of
its Subsidiaries to, own or create directly or indirectly any Material
Subsidiaries other than: (i) subject to Section 10.18 for the avoidance of doubt
(if applicable), any Foreign Subsidiary which has joined this Agreement as a
Guarantor or a Borrower on the Closing Date, or so joins this Agreement after
the Closing Date, pursuant to and in compliance with Section 7.1.10; (ii) any
other Material Subsidiary (except for the Receivables Entity) which has joined
this Agreement as a Guarantor or a Borrower on the Closing Date; or (iii) any
other Material Subsidiary formed,

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acquired or in existence after the Closing Date (except for the Receivables
Entity) which joins this Agreement as a Guarantor or a Borrower pursuant to and
in compliance with Section 7.1.10; provided that a Subsidiary of the Company
which is not a Material Subsidiary may opt to join this Agreement as a Guarantor
or a Borrower pursuant to and in compliance with Section 7.1.10.

               7.2.10 CONTINUATION OF OR CHANGE IN BUSINESS.

               Each of the Loan Parties will not, nor will it permit any of its
Subsidiaries to, alter the character of the business of the Loan Parties and
their Subsidiaries, taken as a whole, in any material respect from that
conducted as of the Closing Date.

               7.2.11 PLANS AND BENEFIT ARRANGEMENTS.

               None of the Loan Parties shall engage in a Prohibited Transaction
with any Plan, Benefit Arrangement or Multiemployer Plan which, alone or in
conjunction with any other circumstances or set of circumstances resulting in
liability under ERISA or otherwise violate ERISA, provided that it shall not be
deemed to be a violation of this Section 7.2.11 if any engagement in a
Prohibited Transaction would not result in fines or penalties that in the
aggregate would reasonably be expected to result in a Material Adverse Change.

               7.2.12 FISCAL YEAR.

               The Company shall not, and shall not permit any Loan Party to,
change its fiscal year from the twelve-month period beginning January 1 and
ending December 31.

               7.2.13 ISSUANCE OF STOCK.

               None of the Subsidiaries of the Company shall issue any
additional shares of its capital stock or any options, warrants or other rights
in respect thereof, except as may be permitted under Sections 7.2.4 and 7.2.5.

               7.2.14 CHANGES IN ORGANIZATIONAL DOCUMENTS.

               Each of the Loan Parties shall not amend, modify or change its
certificate of incorporation (including any provisions or resolutions relating
to capital stock), by-laws, certificate of limited partnership, partnership
agreement, certificate of formation, limited liability company agreement or
other organizational documents in any manner materially adverse to the interests
of the Lenders without obtaining the prior written consent of the Required
Lenders, and, if such proposed action relates to a Loan Party, providing,
through the Company, at least five (5) Business Days' prior written notice
(without duplication of a corresponding notice period under Section 7.2.6(iii),
if applicable) to the Administrative Agent and the Lenders detailing such
proposed action.

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               7.2.15 MAXIMUM LEVERAGE RATIO.

               The Borrowers shall not permit the Leverage Ratio, measured as of
the end of each fiscal quarter, to exceed 3.50 to 1.00.

               7.2.16 MINIMUM INTEREST COVERAGE RATIO.

               The Borrowers shall not permit the ratio (the "INTEREST COVERAGE
RATIO") of Consolidated EBITDA to consolidated interest expense (excluding
Timberland Installment Sale Interest Expense) of the Borrowers and their
Subsidiaries, measured as of the end of each fiscal quarter, for the four (4)
fiscal quarters then ended, to be less than 3.50 to 1.0.

               7.2.17 RECEIVABLES ENTITIES AND TIMBERLAND NOTE MONETIZATION
ENTITIES.

               The Loan Parties covenant as follows: (i) each Permitted Accounts
Receivable Program shall be entered into by a Subsidiary of the Company which is
wholly owned by the Company (directly or indirectly) and which engages in no
activities other than in connection with the financing of accounts receivables
of the Designated Credit Parties pursuant to a Permitted Accounts Receivable
Program (a "RECEIVABLES ENTITY") and which is designated as such by the Company
as provided below in this Section; (ii) no portion of the Indebtedness or any
other obligations (contingent or otherwise) of a Receivables Entity (a) shall be
guaranteed by the Company or any other Subsidiary of the Company (excluding
guarantees of obligations pursuant to Standard Securitization Undertakings), (b)
shall be recourse to or obligate the Company or any other Subsidiary of the
Company in any way other than pursuant to Standard Securitization Undertakings,
or (c) shall subject any property or asset of the Company or any other
Subsidiary of the Company, directly or indirectly, contingently or otherwise, to
the satisfaction thereof, other than pursuant to Standard Securitization
Undertakings; (iii) GPW VA Timberlands and each other Subsidiary of the Company
designated to monetize timberland installment sale notes (a "MONETIZATION
ENTITY") shall engage in no activities other than the monetization of timberland
installment sale notes pursuant to Permitted Timberland Installment Sales and
the incurrence and performance of the Permitted Timberland Indebtedness or
Permitted Additional Timberland Indebtedness (as applicable) in connection
therewith; and (iv) no portion of the Indebtedness or any other obligations
(contingent or otherwise) of GPW VA Timberlands or any Monetization Entity (a)
shall be guaranteed by the Company or any other Subsidiary of the Company, (b)
shall be recourse to or obligate the Company or any other Subsidiary of the
Company in any way other than through a collateral pledge of the Permitted
Timberland Intercompany Indebtedness (securing the Permitted Timberland
Indebtedness) or a similar collateral pledge of Permitted Additional Timberland
Intercompany Indebtedness (to secure Permitted Additional Timberland
Indebtedness), or (c) shall subject any property or asset of the Company or any
other Subsidiary of the Company, directly or indirectly, contingently or
otherwise, to the satisfaction thereof, other than as contemplated in the
preceding clause (iv)(b). The Company may designate any Subsidiary as a
"Receivables Entity" hereunder by delivered to the Administrative Agent a
certificate of the Company executed by a Responsible Officer certifying that
such Subsidiary meets the requirements to be a Receivables Entity set forth in

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subsection (i) above. The Company may designate any Subsidiary as a
"Monetization Entity" hereunder by delivered to the Administrative Agent a
certificate of the Company executed by a Responsible Officer certifying that
such Subsidiary meets the requirements to be a Monetization Entity set forth in
subsection (iii) above.

          7.3 REPORTING REQUIREMENTS.

               The Loan Parties, jointly and severally, covenant and agree that
until payment in full of the Loans, Reimbursement Obligations and Letter of
Credit Borrowings and interest thereon, expiration or termination of all Letters
of Credit, satisfaction of all of the Loan Parties' other Obligations (other
than non-assessed contingent reimbursement obligations) and termination of the
Commitments, the Loan Parties will furnish or cause to be furnished to the
Administrative Agent and each of the Lenders:

               7.3.1 QUARTERLY FINANCIAL STATEMENTS.

               As soon as available and in any event within forty-five (45)
calendar days (or any such earlier date as may be mandated by the SEC) after the
end of each of the first three fiscal quarters in each fiscal year, financial
statements of the Company and its Subsidiaries, consisting of a consolidated
balance sheet as of the end of such fiscal quarter and related consolidated
statements of income, consolidated retained earnings and cash flows for the
fiscal quarter then ended and the fiscal year through that date, all in
reasonable detail and certified (subject to normal year-end audit adjustments)
by a Responsible Officer of the Company as having been prepared in accordance
with GAAP, consistently applied, and setting forth in comparative form the
respective financial statements for the corresponding date and period in the
previous fiscal year. The Loan Parties will be deemed to have complied with the
delivery requirements of this Section 7.3.1 if within forty-five (45) days (or
any such earlier date as may be mandated by the SEC) after the end of its fiscal
quarter, the Company delivers to the Administrative Agent and each of the
Lenders a copy of its Form 10-Q as filed with the SEC and the financial
statements contained therein meets the requirements described in this Section.

               7.3.2 ANNUAL FINANCIAL STATEMENTS.

               As soon as available and in any event within ninety (90) days (or
any such earlier date as may be mandated by the SEC) after the end of each
fiscal year of the Company and its Subsidiaries, financial statements of the
Company consisting of a consolidated balance sheets as of the end of such fiscal
year, and related consolidated statements of income, consolidated retained
earnings and cash flows for the fiscal year then ended, all in reasonable detail
and setting forth in comparative form the financial statements as of the end of
and for the preceding fiscal year, and certified by independent certified public
accountants of nationally recognized standing satisfactory to the Administrative
Agent. The certificate or report of accountants shall be free of qualifications
(other than any consistency qualification that may result from a change in the
method used to prepare the financial statements as to which such accountants
concur) and shall not indicate the occurrence or existence of any event,
condition or contingency which would materially impair the prospect of payment
or performance of any covenant, agreement or duty of any Loan Party under any of
the Loan Documents. The Loan

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Parties will be deemed to have complied with the delivery requirements of this
Section 7.3.2 if within ninety (90) days (or any such earlier date as may be
mandated by the SEC) after the end of its fiscal year, the Company delivers to
the Administrative Agent and each of the Lenders a copy of its Annual Report and
Form 10-K as filed with the SEC and the financial statements and certification
of public accountants contained therein meets the requirements described in this
Section. The Loan Parties shall deliver with such financial statements and
certification by their accountants (i) a certificate to be delivered pursuant to
Section 7.3.3 with respect to such financial statements and (ii) any management
letters of such accounts addressed to the Company.

               7.3.3 CERTIFICATE OF THE BORROWER.

               Concurrently with the financial statements the Company furnished
to the Administrative Agent and to the Lenders pursuant to Sections 7.3.1 and
7.3.2, a certificate (each a "COMPLIANCE CERTIFICATE") of the Company signed by
a Responsible Officer of the Company, in the form of EXHIBIT 7.3.3, to the
effect that, except as described pursuant to Section 7.3.4, (i) the
representations and warranties of the Borrowers contained in Section 5 and in
the other Loan Documents are true in all material respects on and as of the date
of such certificate with the same effect as though such representations and
warranties had been made on and as of such date (except representations and
warranties which expressly relate solely to an earlier date or time), (ii) no
Event of Default or Potential Default exists and is continuing on the date of
such certificate, and (iii) containing calculations in sufficient detail to
demonstrate compliance as of the date of such financial statements with all
financial covenants contained in Sections 7.1.15 and 7.1.16.

               7.3.4 NOTICE OF DEFAULT.

               Promptly after any officer of any Loan Party has learned of the
occurrence of an Event of Default or Potential Default, a certificate signed by
a Responsible Officer of such Loan Party setting forth the details of such Event
of Default or Potential Default and the action which the such Loan Party
proposes to take with respect thereto.

               7.3.5 NOTICE OF LITIGATION.

               Promptly after the commencement thereof, notice of all actions,
suits, proceedings or investigations before or by any Official Body or any other
Person against any Loan Party or Subsidiary of any Loan Party which involve a
claim or series of claims in excess of $15,000,000.00 or which if adversely
determined would constitute a Material Adverse Change.

               7.3.6 NOTICE OF CHANGE IN DEBT RATING.

               Within three (3) Business Days after Standard & Poor's or Moody's
announces a change in the Company's Debt Rating, notice of such change. The
Company, on behalf of the Loan Parties, will deliver, together with such notice,
a copy of any written notification which the Company received from the
applicable rating agency regarding such change of Debt Rating.

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               7.3.7 CERTAIN EVENTS.

               Written notice to the Administrative Agent:

                    (i) at least ten (10) Business Days prior thereto, with
respect to any proposed sale or transfer of assets pursuant to Section
7.2.7(iii)(c), (v), (vi) or (vii), and

                    (ii) within the time limits set forth in Section 7.2.14, any
amendment to the organizational documents of any Loan Party; and

               7.3.8 BUDGETS, FORECASTS, OTHER REPORTS AND INFORMATION.

               The following documents (1) upon the request of the
Administrative Agent for so long as the Company is obligated to publicly file
the reports listed below with the SEC, or (2) promptly upon their becoming
available to the Company (without any such request by the Administrative Agent)
in the event that the Company shall cease to be so obligated to publicly file
such reports :

                    (i) any reports including management letters submitted to
the Company by independent accountants in connection with any annual, interim or
special audit,

                    (ii) any reports, notices or proxy statements generally
distributed by the Company to its stockholders on a date no later than two (2)
Business Days after the date supplied to such stockholders,

                    (iii) regular or periodic reports, including Forms 10-K,
10-Q and 8-K, registration statements and prospectuses, filed by the Company
with the SEC,

                    (iv) a copy of any order in any proceeding to which the
Company or any of its Subsidiaries is a party issued by any Official Body, and

                    (v) such other reports and information as any of the
Lenders, through the Administrative Agent, may from time to time reasonably
request.

                    Any financial statement, report, proxy statement or other
material required to be delivered pursuant to clause (ii) or (iii) above or
pursuant to Sections 7.3.1 and 7.3.2 shall be deemed to have been furnished to
the Administrative Agent and each Lender, if the Company has issued a notice of
Website Posting in accordance with Section 10.6 specific to such type of
financial statement, report, proxy statement or other material, on the date that
the Company posts such financial statement, report, proxy statement or other
material on the SEC's website at www.sec.gov or on the Company's website at
www.glatfelter.com; provided that the Company will furnish paper copies of such
financial statement, report, proxy statement or material to the Administrative
Agent or any Lender that so requests, by notice to the Company,

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that the Company do so, until the Company receives notice from the
Administrative Agent or such Lender, as applicable, to cease delivering such
paper copies.

               7.3.9 NOTICES REGARDING PLANS AND BENEFIT ARRANGEMENTS.

                    7.3.9.1 CERTAIN EVENTS.

                    Promptly upon becoming aware of the occurrence thereof,
notice (including the nature of the event and, when known, any action taken or
threatened by the Internal Revenue Service or the PBGC with respect thereto) of:

                    (i) any Reportable Event with respect to the Loan Parties or
any other member of the ERISA Group,

                    (ii) any Prohibited Transaction which could subject the Loan
Parties to a material civil penalty assessed pursuant to Section 502(i) of ERISA
or a tax imposed by Section 4975 of the Internal Revenue Code in connection with
any Plan, any Benefit Arrangement or any trust created thereunder,

                    (iii) any assertion of material withdrawal liability with
respect to any Multiemployer Plan,

                    (iv) any partial or complete withdrawal from a Multiemployer
Plan by the Loan Parties or any other member of the ERISA Group under Title IV
of ERISA (or assertion thereof), where such withdrawal is likely to result in
material withdrawal liability,

                    (v) any cessation of operations (by the Loan Parties or any
other member of the ERISA Group) at a facility in the circumstances described in
Section 4062(e) of ERISA,

                    (vi) withdrawal by the Loan Parties or any other member of
the ERISA Group from a Multiple Employer Plan, or

                    (vii) a failure by the Loan Parties or any other member of
the ERISA Group to make a payment to a Plan required to avoid imposition of a
Lien under Section 303(k) of ERISA.

                    7.3.9.2 NOTICES OF INVOLUNTARY TERMINATION AND ANNUAL
REPORTS.

                    Promptly after receipt thereof, copies of (a) all notices
received by the Loan Parties or any other member of the ERISA Group of the
PBGC's intent to terminate any Plan administered or maintained by the Loan
Parties or any member of the ERISA Group, or to have a trustee appointed to
administer any such Plan; and (b) at the request of the Administrative Agent or
any Lender each annual report (IRS Form 5500 series) and all accompanying
schedules, the most recent actuarial reports, the most recent financial
information concerning the

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financial status of each Plan administered or maintained by the Loan Parties or
any other member of the ERISA Group, and schedules showing the amounts
contributed to each such Plan by or on behalf of the Loan Parties or any other
member of the ERISA Group in which any of their personnel participate or from
which such personnel may derive a benefit, and each Schedule B (Actuarial
Information) to the annual report filed by the Loan Parties or any other member
of the ERISA Group with the Employee Benefit Security Administration.

                    7.3.9.3 NOTICE OF VOLUNTARY TERMINATION.

                    Promptly upon the filing thereof, copies of any Form 5310,
or any successor or equivalent form to Form 5310, filed with the PBGC in
connection with the termination of any Plan.

                                   8. DEFAULT

          8.1 EVENTS OF DEFAULT.

               An Event of Default shall mean the occurrence or existence of any
one or more of the following events or conditions (whatever the reason therefor
and whether voluntary, involuntary or effected by operation of Law):

               8.1.1 PAYMENTS UNDER LOAN DOCUMENTS.

               The Borrowers shall fail to pay any principal of any Loan
(including scheduled installments, mandatory prepayments or the payment due at
maturity), Reimbursement Obligation or Letter of Credit Borrowing when due or
shall fail to pay any interest on any Loan, Reimbursement Obligation or Letter
of Credit Borrowing or any other amount owing hereunder or under the other Loan
Documents within three (3) Business Days after such interest or other amount
becomes due in accordance with the terms hereof or thereof;

               8.1.2 BREACH OF WARRANTY.

               Any representation or warranty made at any time by any of the
Loan Parties herein or by any of the Loan Parties in any other Loan Document, or
in any certificate, other instrument or statement furnished pursuant to the
provisions hereof or thereof, shall prove to have been false or misleading in
any material respect as of the time it was made or furnished;

               8.1.3 BREACH OF NEGATIVE COVENANTS AND CERTAIN AFFIRMATIVE
COVENANTS.

               Any of the Loan Parties shall default in the observance or
performance of any covenant contained in Sections 7.1.6 or 7.2;

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               8.1.4 BREACH OF OTHER COVENANTS.

               Any of the Loan Parties shall default in the observance or
performance of any other covenant, condition or provision hereof or of any other
Loan Document and such default shall continue unremedied for a period of twenty
(20) Business Days after any Responsible Officer of any Loan Party has actual
knowledge of the occurrence thereof;

               8.1.5 DEFAULTS IN OTHER AGREEMENTS OR INDEBTEDNESS.

               A default or event of default shall occur at any time under the
terms of any other agreement involving borrowed money or the extension of credit
or any other Indebtedness under which any Loan Party or Subsidiary of any Loan
Party may be obligated as a borrower or guarantor in excess of $5,000,000.00 in
the aggregate, and such breach, default or event of default consists of the
failure to pay (beyond any period of grace permitted with respect thereto,
whether waived or not, but in any event not beyond thirty (30) days) any
Indebtedness when due (whether at stated maturity, by acceleration or otherwise)
or if such breach or default permits or causes the acceleration of any
Indebtedness (whether or not such right shall have been waived) or the
termination of any commitment to lend;

               8.1.6 FINAL JUDGMENTS OR ORDERS.

               Any final judgments or orders for the payment of money in excess
of $10,000,000.00 in the aggregate shall be entered against any Loan Party by a
court having jurisdiction in the premises, which judgment is not discharged,
vacated, bonded or stayed pending appeal within a period of forty-five (45) days
from the date of entry;

               8.1.7 LOAN DOCUMENT UNENFORCEABLE.

               Any of the Loan Documents shall cease to be legal, valid and
binding agreements enforceable against any Loan Party executing the same or such
party's successors and assigns (as permitted under the Loan Documents) in
accordance with the respective terms thereof or shall in any way be terminated
(except in accordance with its terms) or become or be declared ineffective or
inoperative or cease to give or provide the respective Liens, security
interests, rights, titles, interests, remedies, powers or privileges intended to
be created thereby, or the validity or enforceability of any of the Loan
Documents shall in any way be challenged or contested;

               8.1.8 PROCEEDINGS AGAINST ASSETS.

               Assets of the Loan Parties' or any of their Subsidiaries are
attached, seized, levied upon or subjected to a writ or distress warrant; or
such come within the possession of any receiver, trustee, custodian or assignee
for the benefit of creditors and the fair market value of such assets are in
excess of $10,000,000.00 in the aggregate and the same is not cured within
forty-five (45) days thereafter;

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               8.1.9 NOTICE OF LIEN OR ASSESSMENT.

               A notice of Lien or assessment in excess of $10,000,000.00 which
is not a Permitted Lien is filed of record with respect to all or any part of
any of the Loan Parties' or any of their Subsidiaries' assets by the United
States, or any department, agency or instrumentality thereof, or by any state,
county, municipal or other governmental agency, including the PBGC, or any taxes
or debts in excess of $10,000,000.00 owing at any time or times hereafter to any
one of these becomes payable and the same is not paid or bonded within
forty-five (45) days after the same becomes payable;

               8.1.10 INSOLVENCY.

               Any Loan Party or any Material Subsidiary of a Loan Party ceases
to be solvent or admits in writing its inability to pay its debts as they
mature;

               8.1.11 EVENTS RELATING TO PLANS AND BENEFIT ARRANGEMENTS.

               Any of the following occurs in relation to the Borrowers or any
members of their ERISA Group: (i) any Reportable Event, which the Administrative
Agent determines in good faith constitutes grounds for the termination of any
Plan by the PBGC or the appointment of a trustee to administer or liquidate any
Plan, shall have occurred and be continuing; (ii) proceedings shall have been
instituted or other action taken to terminate any Plan, or a termination notice
shall have been filed with respect to any Plan; (iii) a trustee shall be
appointed to administer or liquidate any Plan; (iv) the PBGC shall give notice
of its intent to institute proceedings to terminate any Plan or Plans or to
appoint a trustee to administer or liquidate any Plan; and, in the case of the
occurrence of (i), (ii), (iii) or (iv) above, the Administrative Agent
determines in good faith that the amount of the Loan Parties' liability is
likely to exceed $10,000,000.00; (v) the Loan Parties or any member of the ERISA
Group shall fail to make any material contributions when due to a Plan or a
Multiemployer Plan; (vi) the Loan Parties or any other member of the ERISA Group
shall withdraw completely or partially from a Multiemployer Plan; or (vii) the
Borrowers or any other member of the ERISA Group shall withdraw (or shall be
deemed under Section 4062(e) of ERISA to withdraw) from a Multiple Employer
Plan; and, with respect to any of the events specified in (v), (vi) or (vii),
the Administrative Agent determines in good faith that any such occurrence would
be reasonably likely to materially and adversely affect the total enterprise
represented by the Loan Parties and the other members of the ERISA Group;

               8.1.12 CESSATION OF BUSINESS.

               Any Loan Party ceases to conduct its business as contemplated,
except as expressly permitted under Sections 7.2.6 or 7.2.7, or any Loan Party
or Subsidiary of a Loan Party is enjoined, restrained or in any way prevented by
court order from conducting all or any material part of its business and such
injunction, restraint or other preventive order is not dismissed within thirty
(30) days after the entry thereof;

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               8.1.13 CHANGE OF CONTROL.

                    (i) Any person or group of persons (within the meaning of
Sections 13(d) or 14(a) of the Securities Exchange Act of 1934, as amended)
shall have acquired, after the Closing Date, beneficial ownership of (within the
meaning of Rule 13d-3 promulgated by the SEC under said Act) 20.00% or more of
the voting capital stock of P. H. Glatfelter Company; or (ii) within a period of
twelve (12) consecutive calendar months, individuals who were directors of the
Company on the first day of such period (together with any new directors whose
election by the board of directors of the Company or whose nomination for
election by the shareholders of the Company was approved by a vote of a majority
of the directors then still in office who were either directors as of the first
day of such period or whose election or nomination for election was previously
so approved) shall cease to constitute a majority of the board of directors of
the Company;

               8.1.14 INVOLUNTARY PROCEEDINGS.

               A proceeding shall have been instituted in a court having
jurisdiction in the premises seeking a decree or order for relief in respect of
any Loan Party, Material Subsidiary or group of Subsidiaries which, if their
assets were aggregated in a single Subsidiary, would meet the requirements to be
a Material Subsidiary, in an involuntary case under any applicable bankruptcy,
insolvency, reorganization or other similar law now or hereafter in effect, or
for the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or similar official) of any such Person or group of
Persons for any substantial part of its or their property, or for the winding-up
or liquidation of its or their affairs, and such proceeding shall remain
undismissed or unstayed and in effect for a period of forty-five (45)
consecutive days or such court shall enter a decree or order granting any of the
relief sought in such proceeding; or

               8.1.15 VOLUNTARY PROCEEDINGS.

               Any Loan Party, Material Subsidiary or group of Subsidiaries
which, if their assets were aggregated in a single Subsidiary, would meet the
requirements to be a Material Subsidiary, shall commence a voluntary case under
any applicable bankruptcy, insolvency, reorganization or other similar law now
or hereafter in effect, shall consent to the entry of an order for relief in an
involuntary case under any such law, or shall consent to the appointment or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator, conservator (or other similar official) of itself or themselves or
for any substantial part of its or their property or shall make a general
assignment for the benefit of creditors, or shall fail generally to pay its or
their debts as they become due, or shall take any action in furtherance of any
of the foregoing (in the case of a Loan Party organized under the laws of
Germany, the application for commencement of any insolvency proceeding
(Insolvenzantrag) shall have been filed).

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          8.2 CONSEQUENCES OF EVENT OF DEFAULT.

               8.2.1 EVENTS OF DEFAULT OTHER THAN BANKRUPTCY, INSOLVENCY OR
REORGANIZATION PROCEEDINGS.

               If an Event of Default specified under Sections 8.1.1 through
8.1.13 shall occur and be continuing, the Lenders and the Administrative Agent
shall be under no further obligation to make Loans or issue Letters of Credit,
as the case may be, and the Administrative Agent may, and upon the request of
the Required Lenders, shall (i) by written notice to the Borrowers, declare the
unpaid principal amount of the Notes then outstanding and all interest accrued
thereon, any unpaid fees and all other Indebtedness and Obligations of the
Borrowers to the Lenders hereunder and thereunder to be forthwith due and
payable, and the same shall (subject to Section 10.18 for the avoidance of
doubt, if applicable) thereupon become and be immediately due and payable to the
Administrative Agent for the benefit of each Lender without presentment, demand,
protest or any other notice of any kind, all of which are hereby expressly
waived, and (ii) require any Borrowers to, and such Borrowers shall thereupon,
deposit in a non-interest-bearing account with the Administrative Agent, as cash
collateral for Borrowers' Obligations under the Loan Documents, an amount equal
to the maximum amount currently or at any time thereafter available to be drawn
on all outstanding Letters of Credit, and each Borrower hereby pledges to the
Administrative Agent and the Lenders, and grants to the Administrative Agent and
the Lenders a security interest in, all such cash as security for such
Obligations. Upon the curing of all existing Events of Default to the
satisfaction of the Required Lenders, the Administrative Agent shall return such
cash collateral to the Borrowers (or applicable Borrowers, as the case may be);
and

               8.2.2 BANKRUPTCY, INSOLVENCY OR REORGANIZATION PROCEEDINGS.

               If an Event of Default specified under Sections 8.1.14 or 8.1.15
shall occur, the Lenders shall be under no further obligations to make Loans or
issue Letters of Credit hereunder and the unpaid principal amount of the Loans
then outstanding and all interest accrued thereon, any unpaid fees and all other
Indebtedness and Obligations of the Borrowers to the Lenders hereunder and
thereunder shall be immediately due and payable, without presentment, demand,
protest or notice of any kind, all of which are hereby expressly waived; and

               8.2.3 SET-OFF.

               If an Event of Default shall occur and be continuing, any Lender
to whom any Obligation is owed by any Loan Party hereunder or under any other
Loan Document or any participant of such Lender which has agreed in writing to
be bound by the provisions of Section 9.13 and any branch, Subsidiary or
Affiliate of such Lender or participant anywhere in the world shall have the
right, in addition to all other rights and remedies available to it, without
notice to such Loan Party except as provided herein, to set-off (subject to
Section 10.18 for the avoidance of doubt, if applicable) against and apply to
the then unpaid balance of all the Loans and all other Obligations of the
Borrowers and the other Loan Parties hereunder or under any other Loan Document
any debt owing to, and any other funds held in any manner for the account of, a
Borrower or such other Loan Party by such Lender or participant or by such
branch,

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Subsidiary or Affiliate, including all funds in all deposit accounts (whether
time or demand, general or special, provisionally credited or finally credited,
or otherwise) now or hereafter maintained by a Borrower or such other Loan Party
for its own account (but not including funds held in custodian or trust
accounts) with such Lender or participant or such branch, Subsidiary or
Affiliate, and each Lender and the Administrative Agent agrees to promptly
notify the Borrowers after such set-off, provided that the failure to give any
such notice shall not affect the validity of such set-off and application. Such
right shall exist whether or not any Lender or the Administrative Agent shall
have made any demand under this Agreement or any other Loan Document, whether or
not such debt owing to or funds held for the account of a Borrower or such other
Loan Party is or are matured or unmatured and regardless of the existence or
adequacy of any collateral, Guaranty or any other security, right or remedy
available to any Lender or the Administrative Agent; and

               8.2.4 SUITS, ACTIONS, PROCEEDINGS.

               If an Event of Default shall occur and be continuing, and whether
or not the Administrative Agent shall have accelerated the maturity of
Obligations pursuant to any of the foregoing provisions of this Section 8.2, the
Administrative Agent, on behalf of the Lenders, if any Lender is owed any amount
with respect to the Obligations, may proceed to protect and enforce the Lenders'
rights by suit in equity, action at law and/or other appropriate proceeding,
whether for the specific performance of any covenant or agreement contained in
this Agreement or the other Loan Documents, including as permitted by applicable
Law the obtaining of the ex parte appointment of a receiver, and, if such amount
shall have become due, by declaration or otherwise, proceed to enforce the
payment thereof or any other legal or equitable right of the Administrative
Agent, on behalf of the Lenders; and

               8.2.5 APPLICATION OF PROCEEDS.

               From and after the date on which the Administrative Agent has
taken any action pursuant to this Section 8.2 and until all Obligations of the
Loan Parties have been paid in full, any and all proceeds received by the
Administrative Agent from the exercise of any remedy by the Administrative
Agent, shall be applied as follows:

                    (i) first, to reimburse the Administrative Agent and the
Lenders for out-of-pocket costs, expenses and disbursements, including
reasonable attorneys' and paralegals' fees and legal expenses, incurred by the
Administrative Agent or the Lenders in connection with collection of any
Obligations of any of the Loan Parties under any of the Loan Documents;

                    (ii) second, to the repayment of all Obligations then due
and unpaid of the Loan Parties to the Lenders incurred under this Agreement or
any of the other Loan Documents or a Lender-Provided Interest Rate Hedge,
whether of principal, interest, fees, expenses or otherwise, in such manner as
the Administrative Agent may determine in its discretion; and

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                    (iii) the balance, if any, to the Loan Parties or as
otherwise required by Law.

                                  9. THE AGENT

          9.1 APPOINTMENT.

               Each Lender hereby irrevocably designates, appoints and
authorizes PNC Bank to act as Administrative Agent for such Lender under this
Agreement and to execute and deliver or accept on behalf of each of the Lenders
the other Loan Documents. Each Lender hereby irrevocably authorizes, and each
holder of any Note by the acceptance of a Note shall be deemed irrevocably to
authorize, the Administrative Agent to take such action on its behalf under the
provisions of this Agreement and the other Loan Documents and any other
instruments and agreements referred to herein, and to exercise such powers and
to perform such duties hereunder as are specifically delegated to or required of
the Administrative Agent by the terms hereof, together with such powers as are
reasonably incidental thereto. PNC Bank agrees to act as the Administrative
Agent on behalf of the Lenders to the extent provided in this Agreement.

          9.2 DELEGATION OF DUTIES.

               The Administrative Agent may perform any of its duties hereunder
by or through agents or employees (provided such delegation does not constitute
a relinquishment of its duties as Administrative Agent) and, subject to Sections
9.5 and 9.6, shall be entitled to engage and pay for the advice or services of
any attorneys, accountants or other experts concerning all matters pertaining to
its duties hereunder and to rely upon any advice so obtained.

          9.3 NATURE OF DUTIES; INDEPENDENT CREDIT INVESTIGATION.

               The Administrative Agent shall have no duties or responsibilities
except those expressly set forth in this Agreement and no implied covenants,
functions, responsibilities, duties, obligations, or liabilities shall be read
into this Agreement or otherwise exist. The duties of the Administrative Agent
shall be mechanical and administrative in nature; the Administrative Agent shall
not have, by reason of this Agreement, a fiduciary or trust relationship in
respect of any Lender; and nothing in this Agreement, expressed or implied, is
intended to or shall be so construed as to impose upon the Administrative Agent
any obligations in respect of this Agreement except as expressly set forth
herein. Without limiting the generality of the foregoing, the use of the term
"agent" in this Agreement with reference to the Administrative Agent is not
intended to connote any fiduciary or other implied (or express) obligations
arising under agency doctrine of any applicable Law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only
an administrative relationship between independent contracting parties. Each
Lender expressly acknowledges (i) that the Administrative Agent has not made any
representations or warranties to it and that no act by the Administrative Agent
hereafter taken, including any review of the affairs of any of the Loan Parties,
shall be deemed to constitute any representation or warranty by the
Administrative Agent to any Lender; (ii) that it has made and will continue to
make, without reliance upon the Administrative Agent, its own

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independent investigation of the financial condition and affairs and its own
appraisal of the creditworthiness of each of the Loan Parties in connection with
this Agreement and the making and continuance of the Loans and issuance and
maintenance of Letters of Credit hereunder; and (iii) except as expressly
provided herein, that the Administrative Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Lender
with any credit or other information with respect thereto, whether coming into
its possession before the making of any Loan or issuance of any Letter of Credit
or at any time or times thereafter.

          9.4 ACTIONS IN DISCRETION OF ADMINISTRATIVE AGENT; INSTRUCTIONS FROM
THE LENDERS.

               The Administrative Agent agrees, upon the written request of the
Required Lenders, to take or refrain from taking any action of the type
specified as being within the Administrative Agent's rights, powers or
discretion herein, provided that the Administrative Agent shall not be required
to take any action which exposes the Administrative Agent to personal liability
or which is contrary to this Agreement or any other Loan Document or applicable
Law. In the absence of a request by the Required Lenders, the Administrative
Agent shall have authority, in its sole discretion, to take or not to take any
such action, unless this Agreement specifically requires the consent of the
Required Lenders or all of the Lenders. Any action taken or failure to act
pursuant to such instructions or discretion shall be binding on the Lenders,
subject to Section 9.6. Subject to the provisions of Section 9.6, no Lender
shall have any right of action whatsoever against the Administrative Agent as a
result of the Administrative Agent acting or refraining from acting hereunder in
accordance with the instructions of the Required Lenders, or in the absence of
such instructions, in the absolute discretion of the Administrative Agent.

          9.5 REIMBURSEMENT AND INDEMNIFICATION OF ADMINISTRATIVE AGENT BY THE
BORROWER.

               The Borrowers, on a joint and several basis (subject to Section
10.18 for the avoidance of doubt, if applicable), unconditionally agree to pay
or reimburse the Administrative Agent and hold the Administrative Agent harmless
against (a) liability for the payment of all reasonable out-of-pocket costs,
expenses and disbursements, including fees and expenses of counsel (including
the allocated costs of staff counsel), appraisers and environmental consultants,
incurred by the Administrative Agent (i) in connection with the development,
negotiation, preparation, printing, execution, administration, syndication,
interpretation and performance of this Agreement and the other Loan Documents,
(ii) relating to any requested amendments, waivers or consents pursuant to the
provisions hereof, (iii) in connection with the enforcement of this Agreement or
any other Loan Document or collection of amounts due hereunder or thereunder or
the proof and allowability of any claim arising under this Agreement or any
other Loan Document, whether in bankruptcy or receivership proceedings or
otherwise, and (iv) in any workout or restructuring or in connection with the
protection, preservation, exercise or enforcement of any of the terms hereof or
of any rights hereunder or under any other Loan Document or in connection with
any foreclosure, collection or bankruptcy proceedings, and (b) all liabilities,
obligations, losses, damages, penalties, actions, judgments,

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suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against the Administrative Agent, in
its capacity as such, in any way relating to or arising out of this Agreement or
any other Loan Documents or any action taken or omitted by the Administrative
Agent hereunder or thereunder, provided that the Borrowers shall not be liable
for any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements if the same results
from the Administrative Agent's gross negligence or willful misconduct, or if
the Borrowers was not given notice of the subject claim and the opportunity to
participate in the defense thereof, at its expense (except that the Borrowers
shall remain liable to the extent such failure to give notice does not result in
a loss to the Borrower), or if the same results from a compromise or settlement
agreement entered into without the consent of the Borrowers, which shall not be
unreasonably withheld. In addition, the Borrowers, jointly and severally, agrees
to reimburse and pay all reasonable out-of-pocket expenses of the Administrative
Agent's regular employees and agents engaged periodically to perform audits of
the Loan Parties' books, records and business properties, provided that such
reimbursement obligation shall be limited to one (1) audit in each fiscal year
so long as no Event of Default exists and is continuing.

          9.6 EXCULPATORY PROVISIONS; LIMITATION OF LIABILITY.

               Neither the Administrative Agent nor any of its directors,
officers, employees, agents, attorneys or Affiliates shall (a) be liable to any
Lender for any action taken or omitted to be taken by it or them hereunder, or
in connection herewith including pursuant to any Loan Document, unless caused by
its or their own gross negligence or willful misconduct, (b) be responsible in
any manner to any of the Lenders for the effectiveness, enforceability,
genuineness, validity or the due execution of this Agreement or any other Loan
Documents or for any recital, representation, warranty, document, certificate,
report or statement herein or made or furnished under or in connection with this
Agreement or any other Loan Documents, or (c) be under any obligation to any of
the Lenders to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions hereof or thereof on the part of the
Loan Parties, or the financial condition of the Loan Parties, or the existence
or possible existence of any Event of Default or Potential Default. No claim may
be made by any of the Loan Parties, any Lender, the Administrative Agent or any
of their respective Subsidiaries against the Administrative Agent, any Lender or
any of their respective directors, officers, employees, agents, attorneys or
Affiliates, or any of them, for any special, indirect or consequential damages
or, to the fullest extent permitted by Law, for any punitive damages in respect
of any claim or cause of action (whether based on contract, tort, statutory
liability, or any other ground) based on, arising out of or related to any Loan
Document or the transactions contemplated hereby or any act, omission or event
occurring in connection therewith, including the negotiation, documentation,
administration or collection of the Loans, and each of the Loan Parties (for
itself and on behalf of each of its Subsidiaries), the Administrative Agent and
each Lender hereby waives, releases and agrees never to sue upon any claim for
any such damages, whether such claim now exists or hereafter arises and whether
or not it is now known or suspected to exist in its favor. Each Lender agrees
that, except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder or given to the
Administrative Agent for the account of or with copies for the Lenders, the
Administrative Agent

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and each of its directors, officers, employees, agents, attorneys or Affiliates
shall not have any duty or responsibility to provide any Lender with an credit
or other information concerning the business, operations, property, condition
(financial or otherwise), prospects or creditworthiness of the Loan Parties
which may come into the possession of the Administrative Agent or any of its
directors, officers, employees, agents, attorneys or Affiliates.

          9.7 REIMBURSEMENT AND INDEMNIFICATION OF ADMINISTRATIVE AGENT BY
LENDERS.

               Each Lender agrees to reimburse and indemnify the Administrative
Agent (to the extent not reimbursed by the Borrowers and without limiting the
Obligation of the Borrowers to do so) in proportion to its Ratable Share from
and against all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements, including attorneys' fees
and disbursements (including the allocated costs of staff counsel), and costs of
appraisers and environmental consultants, of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against the Administrative Agent, in
its capacity as such, in any way relating to or arising out of this Agreement or
any other Loan Documents or any action taken or omitted by the Administrative
Agent hereunder or thereunder, provided that no Lender shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements (a) if the same results from
the Administrative Agent's gross negligence or willful misconduct, or (b) if
such Lender was not given notice of the subject claim and the opportunity to
participate in the defense thereof, at its expense (except that such Lender
shall remain liable to the extent such failure to give notice does not result in
a loss to the Lender), or (c) if the same results from a compromise and
settlement agreement entered into without the consent of such Lender, which
shall not be unreasonably withheld. In addition, each Lender agrees promptly
upon demand to reimburse the Administrative Agent (to the extent not reimbursed
by the Borrowers and without limiting the Obligation of the Borrowers to do so)
in proportion to its Ratable Share for all amounts due and payable by the
Borrowers to the Administrative Agent in connection with the Administrative
Agent's periodic audit of the Loan Parties' books, records and business
properties.

          9.8 RELIANCE BY ADMINISTRATIVE AGENT.

               The Administrative Agent shall be entitled to rely upon any
writing, telegram, telex or teletype message, resolution, notice, consent,
certificate, letter, cablegram, statement, order or other document or
conversation by telephone or otherwise believed by it to be genuine and correct
and to have been signed, sent or made by the proper Person or Persons, and upon
the advice and opinions of counsel and other professional advisers selected by
the Administrative Agent. The Administrative Agent shall be fully justified in
failing or refusing to take any action hereunder unless it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take
any such action.

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          9.9 NOTICE OF DEFAULT.

               The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Potential Default or Event of Default unless the
Administrative Agent has received written notice from a Lender or a Borrower
referring to this Agreement, describing such Potential Default or Event of
Default and stating that such notice is a "notice of default."

          9.10 NOTICES.

               The Administrative Agent shall promptly send to each Lender a
copy of all notices received from a Borrower pursuant to the provisions of this
Agreement or the other Loan Documents promptly upon receipt thereof.

          9.11 LENDERS IN THEIR INDIVIDUAL CAPACITIES; ADMINISTRATIVE AGENT IN
ITS INDIVIDUAL CAPACITY.

               With respect to its Revolving Credit Commitment, the Revolving
Credit Loans, and PNC Bank's Swing Loan Commitment, the Swing Loans made by it
and any other rights and powers given to it as a Lender hereunder or under any
of the other Loan Documents, the Administrative Agent shall have the same rights
and powers hereunder as any other Lender and may exercise the same as though it
were not the Administrative Agent, and the term "LENDER" and "LENDERS" shall,
unless the context otherwise indicates, include the Administrative Agent in its
individual capacity. PNC Bank and its Affiliates and each of the Lenders and
their respective Affiliates may, without liability to account, except as
prohibited herein, make loans to, issue letters of credit for the account of,
acquire equity interests in, accept deposits from, discount drafts for, act as
trustee under indentures of, and generally engage in any kind of banking, trust,
financial advisory, underwriting or other business with, the Loan Parties and
their Affiliates, as though it were not acting as Administrative Agent hereunder
and in the case of each Lender, as though such Lender were not a Lender
hereunder, without notice to or consent of the other Lenders. The Lenders and
the Administrative Agent acknowledge that, pursuant to such activities, the
Administrative Agent or its Affiliates, and the Lenders or their Affiliates, may
(i) receive information regarding the Loan Parties or any of their Subsidiaries
or Affiliates (including information that may be subject to confidentiality
obligations in favor of the Loan Parties or such Subsidiary or Affiliate) and
acknowledge that neither the Administrative Agent nor any Lender shall be under
any obligation to provide such information to the others, and (ii) accept fees
and other consideration from the Loan Parties for services in connection with
this Agreement and otherwise without having to account for the same to the
Lenders.

          9.12 HOLDERS OF NOTES.

               The Administrative Agent may deem and treat any payee of any Note
as the owner thereof for all purposes hereof unless and until written notice of
the assignment or transfer thereof shall have been filed with the Administrative
Agent. Any request, authority or consent of any Person who at the time of making
such request or giving such authority or

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consent is the holder of any Note shall be conclusive and binding on any
subsequent holder, transferee or assignee of such Note or of any Note or Notes
issued in exchange therefor.

          9.13 SHARING OF PAYMENTS.

               The Lenders and the holders of any participations in any
Commitments, Loans, Letters of Credit or other rights or obligations of a Lender
hereunder agree among themselves that, with respect to all amounts received by
any Lender or any such holder for application on any Obligation hereunder or
under any such participation, whether received by voluntary payment, by
realization upon security, by the exercise of the right of set-off or banker's
lien, by counterclaim or by any other non-pro rata source, equitable adjustment
will be made in the manner stated in the following sentence so that, in effect,
all such excess amounts will be shared ratably among the Lenders and such
holders in proportion to their interests in payments on the Obligations, except
as otherwise provided in Sections 3.4.3, 4.4.2 or 4.6, in connection with any
assignment pursuant to Section 10.11 or as otherwise specifically set forth
herein. The Lenders or any such holder receiving any such amount shall purchase
for cash from each of the other Lenders an interest in Obligations owed to such
Lender in such amount as shall result in a ratable participation by the Lenders
and each such holder in the aggregate unpaid amount of the Obligations, provided
that if all or any portion of such excess amount is thereafter recovered from
the Lender or the holder making such purchase, such purchase shall be rescinded
and the purchase price restored to the extent of such recovery, together with
interest or other amounts, if any, required by law (including court order) to be
paid by the Lender or the holder making such purchase.

          9.14 SUCCESSOR ADMINISTRATIVE AGENT.

               The Administrative Agent (i) may resign as Administrative Agent
or (ii) shall resign if such resignation is requested by the Required Lenders
(if the Administrative Agent is a Lender, the Administrative Agent's Loans and
its Commitment shall be considered in determining whether the Required Lenders
have requested such resignation) or required by Section 4.4.2, in either case of
(i) or (ii) by giving not less than thirty (30) days' prior written notice to
the Company, for all Borrowers. If the Administrative Agent shall resign under
this Agreement, then either (a) the Required Lenders shall appoint from among
the Lenders a successor agent for the Lenders, subject to the consent of the
Company, for all Borrowers, such consent not to be unreasonably withheld, or (b)
if a successor agent shall not be so appointed and approved within the thirty
(30) day period following the Administrative Agent's notice to the Lenders of
its resignation, then the Administrative Agent shall appoint, with the consent
of the Company, for all Borrowers, such consent not to be unreasonably withheld,
a successor agent who shall serve as Administrative Agent until such time as the
Required Lenders appoint and the Company's consent on behalf of all Borrowers to
the appointment of a successor agent. Upon its appointment pursuant to either
clause (a) or (b) above, such successor agent shall succeed to the rights,
powers and duties of the Administrative Agent, and the term "ADMINISTRATIVE
AGENT" shall mean such successor agent, effective upon its appointment, and the
former Administrative Agent's rights, powers and duties as Administrative Agent
shall be terminated without any other or further act or deed on the part of such
former Administrative Agent or any of the parties to

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this Agreement. After the resignation of any Administrative Agent hereunder, the
provisions of this Section 9 shall inure to the benefit of such former
Administrative Agent and such former Administrative Agent shall not by reason of
such resignation be deemed to be released from liability for any actions taken
or not taken by it while it was an Administrative Agent under this Agreement.

          9.15 ADMINISTRATIVE AGENT'S FEE.

               The Borrowers, on a joint and several basis, shall pay to the
Administrative Agent a nonrefundable fee (the "ADMINISTRATIVE AGENT'S FEE")
under the terms of a letter (the "ADMINISTRATIVE AGENT'S LETTER") among the
Borrowers and Administrative Agent, as amended from time to time.

          9.16 AVAILABILITY OF FUNDS.

               The Administrative Agent may assume that each Lender has made or
will make the proceeds of the applicable Loan available to the Administrative
Agent in the applicable currency unless the Administrative Agent shall have been
notified by such Lender on or before the later of (1) the close of Business on
the Business Day preceding the Borrowing Date with respect to such Loan or two
(2) hours before the time on which the Administrative Agent actually funds the
proceeds of such Loan to the Borrowers (whether using its own funds pursuant to
this Section 9.16 or using proceeds deposited with the Administrative Agent by
the Lenders and whether such funding occurs before or after the time on which
Lenders are required to deposit the proceeds of such Loan with the
Administrative Agent). The Administrative Agent may, in reliance upon such
assumption (but shall not be required to), make available to the Borrowers a
corresponding amount in the applicable currency. If such corresponding amount is
not in fact made available to the Administrative Agent by such Lender in the
applicable currency, the Administrative Agent shall be entitled to recover such
amount on demand from such Lender (or, if such Lender fails to pay such amount
forthwith upon such demand from the Borrower) together with interest thereon, in
respect of each day during the period commencing on the date such amount was
made available to the Borrowers and ending on the date the Administrative Agent
recovers such amount, at a rate per annum equal to (i) the Federal Funds
Effective Rate during the first three (3) days after such interest shall begin
to accrue and (ii) the applicable interest rate in respect of such Loan after
the end of such three-day period.

          9.17 CALCULATIONS.

               In the absence of gross negligence or willful misconduct, the
Administrative Agent shall not be liable for any error in computing the amount
payable to any Lender whether in respect of the Loans, fees or any other amounts
due to the Lenders under this Agreement. In the event an error in computing any
amount payable to any Lender is made, the Administrative Agent, the Borrowers
and each affected Lender shall, forthwith upon discovery of such error, make
such adjustments as shall be required to correct such error, and any
compensation therefor will be calculated at the Federal Funds Effective Rate or
the Overnight Rate if such computation relates to a Revolving Credit Loan made
in an Optional Currency.

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          9.18 NO RELIANCE ON ADMINISTRATIVE AGENT'S CUSTOMER IDENTIFICATION
PROGRAM.

               Each Lender acknowledges and agrees that neither such Lender, nor
any of its Affiliates, participants or assignees, may rely on the Administrative
Agent to carry out such Lender's, Affiliate's, participant's or assignee's
customer identification program, or other obligations required or imposed under
or pursuant to the USA Patriot Act or the regulations thereunder, including the
regulations contained in 31 CFR 103.121 (as hereafter amended or replaced, the
"CIP REGULATIONS"), or any other Anti-Terrorism Law, including any programs
involving any of the following items relating to or in connection with any of
the Loan Parties, their Affiliates or their agents, the Loan Documents or the
transactions hereunder or contemplated hereby: (1) any identity verification
procedures, (2) any recordkeeping, (3) comparisons with government lists, (4)
customer notices or (5) other procedures required under the CIP Regulations or
such other Laws.

          9.19 BENEFICIARIES.

               Except as expressly provided herein, the provisions of this
Section 9 are solely for the benefit of the Administrative Agent and the
Lenders, and the Loan Parties shall not have any rights to rely on or enforce
any of the provisions hereof. In performing its functions and duties under this
Agreement, the Administrative Agent shall act solely as agent of the Lenders and
does not assume and shall not be deemed to have assumed any obligation toward or
relationship of agency or trust with or for any of the Loan Parties.

                                10. MISCELLANEOUS

          10.1 MODIFICATIONS, AMENDMENTS OR WAIVERS.

               With the written consent of the Required Lenders, the
Administrative Agent, acting on behalf of all the Lenders, and the Company on
behalf of the Loan Parties, may from time to time enter into written agreements
amending or changing any provision of this Agreement or any other Loan Document
or the rights of the Lenders or the Loan Parties hereunder or thereunder, or may
grant written waivers or consents to a departure from the due performance of the
Obligations of the Loan Parties hereunder or thereunder. Any such agreement,
waiver or consent made with such written consent shall be effective to bind all
the Lenders and the Loan Parties; provided, that, no such agreement, waiver or
consent may be made which will:

          10.1.1 INCREASE OF COMMITMENT.

               Increase the amount of the Revolving Credit Commitment or Swing
Loan Commitment of any Lender hereunder without the written consent of all
Lenders;

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               10.1.2 EXTENSION OF PAYMENT; REDUCTION OF PRINCIPAL INTEREST OR
FEES.

               Whether or not any Loans are outstanding, extend the time for
payment of principal or interest of any Loan (excluding the due date of any
mandatory prepayment of a Loan or any mandatory Commitment reduction in
connection with such a mandatory prepayment hereunder except for mandatory
reductions of the Commitments on the Expiration Date), the Commitment Fee or any
other fee payable to any Lender, or reduce the principal amount of or the rate
of interest borne by any Loan or reduce the Commitment Fee or any other fee
payable to any Lender, without the written consent of all Lenders;

               10.1.3 RELEASE A GUARANTOR.

               Except in connection with a transaction permitted hereunder or as
otherwise permitted hereunder, release any Guarantor from its Obligations under
the Guaranty Agreement, without the written consent of the Administrative Agent
and all Lenders; or

               10.1.4 MISCELLANEOUS.

               Amend Sections 4.2, 9.6 or 9.13 or this Section 10.1, alter any
provision regarding the pro rata treatment of the Lenders or requiring all
Lenders to authorize the taking of any action or reduce any percentage specified
in the definition of Required Lenders, in each case without the consent of all
the Lenders (other than Defaulting Lenders);

               provided, that no agreement, waiver or consent which would modify
the interests, rights or obligations of the Administrative Agent in its capacity
(as applicable) as Administrative Agent or the issuer of Letters of Credit or
PNC Bank, in the case of Swing Loan, without the written consent of the
Administrative Agent and each such other affected Person, as applicable, and
provided, further, that, if in connection with any proposed waiver, amendment or
modification referred to in Sections 10.1.1 through 10.1.4 above, the consent of
the Required Lenders is obtained but the consent of one or more of such other
Lenders whose consent is required is not obtained (each a "NON-CONSENTING
LENDER"), then the Borrower shall have the right to replace any such
Non-Consenting Lender with one or more replacement Lenders pursuant to Section
4.4.2.

          10.2 NO IMPLIED WAIVERS; CUMULATIVE REMEDIES; WRITING REQUIRED.

               No course of dealing and no delay or failure of the
Administrative Agent or any Lender in exercising any right, power, remedy or
privilege under this Agreement or any other Loan Document shall affect any other
or future exercise thereof or operate as a waiver thereof, nor shall any single
or partial exercise thereof or any abandonment or discontinuance of steps to
enforce such a right, power, remedy or privilege preclude any further exercise
thereof or of any other right, power, remedy or privilege. The rights and
remedies of the Administrative Agent and the Lenders under this Agreement and
any other Loan Documents are cumulative and not exclusive of any rights or
remedies which they would otherwise have. Any waiver, permit, consent or
approval of any kind or character on the part of any Lender of any breach or
default

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under this Agreement or any such waiver of any provision or condition of this
Agreement must be in writing and shall be effective only to the extent
specifically set forth in such writing.

          10.3 REIMBURSEMENT AND INDEMNIFICATION OF LENDERS BY THE BORROWER.

               The Borrowers, jointly and severally, agree unconditionally upon
demand to pay or reimburse to each Lender (other than the Administrative Agent,
as to which the Borrowers' Obligations are set forth in Section 9.5) and to save
such Lender harmless against (i) liability for the payment of all reasonable
out-of-pocket costs, expenses and disbursements (including reasonable fees and
expenses of counsel for each Lender except with respect to (a) and (b) below),
incurred by such Lender (a) in connection with the administration and
interpretation of this Agreement, and other instruments and documents to be
delivered hereunder, (b) relating to any amendments, waivers or consents
pursuant to the provisions hereof, (c) in connection with the enforcement of
this Agreement or any other Loan Document, or collection of amounts due
hereunder or thereunder or the proof and allowability of any claim arising under
this Agreement or any other Loan Document, whether in bankruptcy or receivership
proceedings or otherwise, and (d) in any workout or restructuring or in
connection with the protection, preservation, exercise or enforcement of any of
the terms hereof or of any rights hereunder or under any other Loan Document or
in connection with any foreclosure, collection or bankruptcy proceedings, or
(ii) all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever (other than taxes) which may be imposed on, incurred by or asserted
against such Lender, in its capacity as such, in any way relating to or arising
out of this Agreement or any other Loan Documents or any action taken or omitted
by such Lender hereunder or thereunder, provided that the Borrowers shall not be
liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements (A) if
the same results from such Lender's gross negligence or willful misconduct, or
(B) if the Borrowers were not given notice of the subject claim and the
opportunity to participate in the defense thereof, at its expense (except that
the Borrowers shall remain liable to the extent such failure to give notice does
not result in a loss to the Borrower), or (C) if the same results from a
compromise or settlement agreement entered into without the consent of the
Borrowers, which shall not be unreasonably withheld. The Lenders will attempt to
minimize the fees and expenses of legal counsel for the Lenders which are
subject to reimbursement by the Borrowers hereunder by considering the usage of
one law firm to represent the Lenders and the Administrative Agent if
appropriate under the circumstances.

          10.4 HOLIDAYS.

               Whenever payment of a Loan to be made or taken hereunder shall be
due on a day which is not a Business Day such payment shall be due on the next
Business Day (except as provided in Section 3.2 with respect to Interest Periods
under the Euro-Rate Option) and such extension of time shall be included in
computing interest and fees, except that the Loans shall be due on the Business
Day preceding the Expiration Date if the Expiration Date is not a Business Day.
Whenever any payment or action to be made or taken hereunder (other than payment
of the Loans) shall be stated to be due on a day which is not a Business Day,
such

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payment or action shall be made or taken on the next following Business Day, and
such extension of time shall not be included in computing interest or fees, if
any, in connection with such payment or action.

          10.5 FUNDING BY BRANCH, SUBSIDIARY OR AFFILIATE.

               10.5.1 NOTIONAL FUNDING.

               Each Lender shall have the right from time to time, without
notice to the Borrowers, to deem any branch, Subsidiary or Affiliate (which for
the purposes of this Section 10.5 shall mean any corporation or association
which is directly or indirectly controlled by or is under direct or indirect
common control with any corporation or association which directly or indirectly
controls such Lender) of such Lender to have made, maintained or funded any Loan
to which the Euro-Rate Option applies at any time, provided that immediately
following (on the assumption that a payment were then due from the Borrowers to
such other office), and as a result of such change, the Borrowers would not be
under any greater financial obligation pursuant to Section 4.6 than it would
have been in the absence of such change. Notional funding offices may be
selected by each Lender without regard to such Lender's actual methods of
making, maintaining or funding the Loans or any sources of funding actually used
by or available to such Lender.

               10.5.2 ACTUAL FUNDING.

               Each Lender shall have the right from time to time to make or
maintain any Loan or Letter of Credit Borrowing by arranging for a branch,
Subsidiary or Affiliate of such Lender to make or maintain such Loan subject to
the last sentence of this Section 10.5.2. If any Lender causes a branch,
Subsidiary or Affiliate to make or maintain any part of the Loans or Letter of
Credit Borrowing hereunder, all terms and conditions of this Agreement shall,
except where the context clearly requires otherwise, be applicable to such part
of the Loans or Letter of Credit Borrowing to the same extent as if such Loans
or Letter of Credit Borrowing were made or maintained by such Lender, but in no
event shall any Lender's use of such a branch, Subsidiary or Affiliate to make
or maintain any part of the Loans or Letter of Credit Borrowing hereunder cause
such Lender or such branch, Subsidiary or Affiliate to incur any cost or
expenses payable by the Borrowers hereunder or require the Borrowers to pay any
other compensation to any Lender (including any expenses incurred or payable
pursuant to Section 4.6) which would otherwise not be incurred.

          10.6 NOTICES; LENDING OFFICES.

               Any notice, request, demand, direction or other communication
(for purposes of this Section 10.6 only, a "NOTICE") to be given to or made upon
any party hereto under any provision of this Agreement shall be given or made by
telephone or in writing (which includes means of electronic transmission (i.e.,
"e-mail") or facsimile transmission or by setting forth such Notice on a site on
the World Wide Web (a "WEBSITE POSTING") if Notice of such Website Posting
(including the information necessary to access such site) has previously been
delivered to the applicable parties hereto by another means set forth in this
Section 10.6) in

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accordance with this Section 10.6. Any such Notice must be delivered to the
applicable parties hereto at the addresses and numbers set forth under their
respective names on SCHEDULE 1.1(B) hereof or in accordance with any subsequent
unrevoked Notice from any such party that is given in accordance with this
Section 10.6. Any Notice shall be effective:

                    (i) In the case of hand-delivery, when delivered;

                    (ii) If given by mail, four days after such Notice is
deposited with the United States Postal Service, with first-class postage
prepaid, return receipt requested;

                    (iii) In the case of a telephonic Notice, when a party is
contacted by telephone, if delivery of such telephonic Notice is confirmed no
later than the next Business Day by hand delivery, a facsimile or electronic
transmission, a Website Posting or overnight courier delivery of a confirmatory
notice (received at or before noon on such next Business Day);

                    (iv) In the case of a facsimile transmission, when sent to
the applicable party's facsimile machine's telephone number if the party sending
such Notice receives confirmation of the delivery thereof from its own facsimile
machine;

                    (v) In the case of electronic transmission, when actually
received;

                    (vi) In the case of a Website Posting, upon delivery of a
Notice of such posting (including the information necessary to access such web
site) by another means set forth in this Section 10.6; and

                    (vii) If given by any other means (including by overnight
courier), when actually received.

Any Lender giving a Notice to a Loan Party shall concurrently send a copy
thereof to the Administrative Agent, and the Administrative Agent shall promptly
notify the other Lenders of its receipt of such Notice. SCHEDULE 1.1(B) lists
the Lending Offices of each Lender. Each Lender may change its respective
Lending Office by written Notice to the Administrative Agent and other Lenders.

          10.7 SEVERABILITY.

               The provisions of this Agreement are intended to be severable. If
any provision of this Agreement shall be held invalid or unenforceable in whole
or in part in any jurisdiction, such provision shall, as to such jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without in
any manner affecting the validity or enforceability thereof in any other
jurisdiction or the remaining provisions hereof in any jurisdiction.

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          10.8 GOVERNING LAW.

               This Agreement shall be governed by and construed in accordance
with the laws of the State of New York. Each standby Letter of Credit issued
under this Agreement shall be subject either to the rules of the Uniform Customs
and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce (the "ICC") at the time of issuance ("UCP") or
the rules of the International Standby Practices (ICC Publication Number 590),
as determined by the issuing Lender, and each trade Letter of Credit issued
under this Agreement shall be subject to the UCP, and in each case to the extent
not inconsistent therewith, the Laws of the State of New York without regard to
its conflict of laws principles.

          10.9 PRIOR UNDERSTANDING.

               This Agreement and the other Loan Documents supersede all prior
understandings and agreements, whether written or oral, between the parties
hereto and thereto relating to the transactions provided for herein and therein,
including any prior confidentiality agreements and commitments.

          10.10 DURATION; SURVIVAL.

               All representations and warranties of the Loan Parties contained
herein or made in connection herewith shall survive the making of Loans and
issuance of Letters of Credit and shall not be waived by the execution and
delivery of this Agreement, any investigation by the Administrative Agent or the
Lenders, the making of Loans, issuance of Letters of Credit, or payment in full
of the Loans. All covenants and agreements of the Loan Parties contained herein
shall continue in full force and effect from and after the date hereof so long
as the Borrowers may borrow or request Letters of Credit hereunder and until
termination of the Commitments and payment in full of the Obligations (other
than non-assessed contingent reimbursement obligations) and expiration or
termination of all Letters of Credit. Section 4 and Sections 9.5, 9.7 and 10.3
shall survive payment in full of the Obligations, expiration or termination of
the Letters of Credit and termination of the Commitments. In addition, all
covenants and agreements of the Borrowers and the Lenders contained herein
shall, if any related payment is later declared to be a fraudulent conveyance or
a preference in any respect, set aside or required to be paid to a debtor in
possession, any secured party, receiver or similar Person, or otherwise voided
or nullified (a "VOIDED PAYMENT"), be reinstated and deemed to have survived
payment in full of the Obligations, expiration or termination of the Letters of
Credit and termination of the Commitments, to the extent such reinstatement and
survival is necessary for the Administrative Agent to recover such Voided
Payment.

          10.11 SUCCESSORS AND ASSIGNS.

                    (i) This Agreement shall be binding upon and shall inure to
the benefit of the Lenders, the Administrative Agent, the Loan Parties and their
respective successors and assigns, except that none of the Loan Parties may
assign or transfer any of its rights and Obligations hereunder or any interest
herein. Each Lender may, at its own cost, make assignments of or sell
participations in all or any part of its Commitments and the Loans and

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Letter of Credit Borrowings made by it to one or more banks or other entities,
subject to the consent of the Company, on behalf of the Borrowers, and the
Administrative Agent with respect to any assignee, such consent not to be
unreasonably withheld, provided that (1) no consent of the Borrowers shall be
required (A) if an Event of Default exists and is continuing, or (B) in the case
of an assignment by a Lender to an Affiliate of such Lender, and (2) any
assignment by a Lender to a Person other than an Affiliate of such Lender may
not be made in amounts less than the lesser of $5,000,000.00 and the amount of
the assigning Lender's Revolving Credit Commitment. In the case of an
assignment, upon receipt by the Administrative Agent of the Assignment and
Assumption Agreement, the assignee shall have, to the extent of such assignment
(unless otherwise provided therein), the same rights, benefits and obligations
as it would have if it had been a signatory Lender hereunder, the Commitments
shall be adjusted accordingly, and upon surrender of any Note subject to such
assignment, the Borrowers shall execute and deliver a new Note to the assignee,
if such assignee requests such a Note in an amount equal to the amount of the
Revolving Credit Commitment assumed by it and a new Revolving Credit Note to the
assigning Lender, if the assigning Lender requests such a Note, in an amount
equal to the Revolving Credit Commitment retained by it hereunder. Any Lender
which assigns any or all of its Revolving Credit Commitment or Loans to a Person
other than an Affiliate of such Lender shall pay to the Administrative Agent a
service fee in the amount of $3,500.00 for each assignment. In the case of a
participation, the participant shall only have the rights specified in Section
8.2.3 (the participant's rights against such Lender in respect of such
participation to be those set forth in the agreement executed by such Lender in
favor of the participant relating thereto and not to include any voting rights
except with respect to changes of the type referenced in Sections 10.1.1,
10.1.2, or 10.1.3), all of such Lender's obligations under this Agreement or any
other Loan Document shall remain unchanged, and all amounts payable by any Loan
Party hereunder or thereunder shall be determined as if such Lender had not sold
such participation.

                    (ii) Any assignee or participant which is not incorporated
under the Laws of the United States of America or a state thereof shall deliver
to the Borrowers and the Administrative Agent the form of certificate described
in Section 10.17 relating to federal income tax withholding. Each Lender may
furnish any publicly available information concerning any Loan Party or its
Subsidiaries and any other information concerning any Loan Party or its
Subsidiaries in the possession of such Lender from time to time to assignees and
participants (including prospective assignees or participants), provided that
such assignees and participants agree to be bound by the provisions of Section
10.12.

                    (iii) Notwithstanding any other provision in this Agreement,
any Lender may at any time pledge or grant a security interest in all or any
portion of its rights under this Agreement, its Note (if any) and the other Loan
Documents to any Federal Reserve Lender in accordance with Regulation A of the
FRB or U.S. Treasury Regulation 31 CFR Section 203.14 without notice to or
consent of the Borrowers or the Administrative Agent. No such pledge or grant of
a security interest shall release the Transferor Lender of its obligations
hereunder or under any other Loan Document.

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          10.12 CONFIDENTIALITY.

               10.12.1 GENERAL.

               The Administrative Agent and the Lenders each agree to keep
confidential all information obtained from any Loan Party or its Subsidiaries
which is nonpublic and confidential or proprietary in nature (including any
information the Borrowers specifically designate as confidential), except as
provided below, and to use such information only in connection with their
respective capacities under this Agreement and for the purposes contemplated
hereby. The Administrative Agent and the Lenders shall be permitted to disclose
such information (i) to outside legal counsel, accountants and other
professional advisors who need to know such information in connection with the
administration and enforcement of this Agreement, subject to agreement of such
Persons to maintain the confidentiality, (ii) to assignees and participants as
contemplated by Section 10.11, and prospective assignees and participants who
will be required to maintain confidentiality as if they were a Lender under this
Agreement, (iii) to the extent requested by any bank regulatory authority or,
with notice to the Borrowers, as otherwise required by applicable Law or by any
subpoena or similar legal process, or in connection with any investigation or
proceeding arising out of the transactions contemplated by this Agreement, (iv)
if it becomes publicly available other than as a result of a breach of this
Agreement or becomes available from a source not known to be subject to
confidentiality restrictions, or (v) if the Borrowers shall have consented to
such disclosure.

               10.12.2 SHARING INFORMATION WITH AFFILIATES OF THE LENDERS.

               Each Loan Party acknowledges that from time to time financial
advisory, investment banking and other services may be offered or provided to
the Borrowers or one or more of its Affiliates (in connection with this
Agreement or otherwise) by any Lender or by one or more Subsidiaries or
Affiliates of such Lender and each of the Loan Parties hereby authorizes each
Lender to share any information delivered to such Lender by such Loan Party and
its Subsidiaries pursuant to this Agreement, or in connection with the decision
of such Lender to enter into this Agreement, to any such Subsidiary or Affiliate
of such Lender, it being understood that any such Subsidiary or affiliate of any
Lender receiving such information shall be bound by the provisions of Section
10.12.1 as if it were a Lender hereunder. Such Authorization shall survive the
repayment of the Loans and other Obligations and the termination of the
Commitments. Each of the Administrative Agent, the Lenders and the issuer of
Letters of Credit, solely on its own behalf, acknowledges that the information
provided by the Loan Parties and their respective Subsidiaries may include
material non-public information concerning the Loan Parties or their respective
Subsidiaries, as the case may be, and that, to the extent such Person has not
opted out by written notice to the Administrative Agent and the Company from
receiving any such material non-public information, such Person will take
commercially reasonable measures to use such material non-public information in
compliance with applicable Law according to its usual procedures for the
handling of such information as in effect from time to time.

                                      112

<PAGE>

          10.13 COUNTERPARTS.

               This Agreement may be executed by different parties hereto on any
number of separate counterparts, each of which, when so executed and delivered,
shall be an original, and all such counterparts shall together constitute one
and the same instrument.

          10.14 ADMINISTRATIVE AGENT'S OR LENDER'S CONSENT.

               Whenever the Administrative Agent's or any Lender's consent is
required to be obtained under this Agreement or any of the other Loan Documents
as a condition to any action, inaction, condition or event, the Administrative
Agent and each Lender shall be authorized to give or withhold such consent in
its sole and absolute discretion (unless otherwise specified herein) and to
condition its consent upon the payment of money or any other matter.

          10.15 EXCEPTIONS.

               The representations, warranties and covenants contained herein
shall be independent of each other, and no exception to any representation,
warranty or covenant shall be deemed to be an exception to any other
representation, warranty or covenant contained herein unless expressly provided,
nor shall any such exceptions be deemed to permit any action or omission that
would be in contravention of applicable Law.

          10.16 CONSENT TO FORUM; WAIVER OF JURY TRIAL.

               EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF ANY NEW YORK STATE COURT OR FEDERAL
COURT OF THE UNITED STATES OF AMERICA SITTING IN NEW YORK CITY, AND ANY
APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS TO WHICH IT IS A
PARTY, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH PARTY HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH
ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH NEW YORK STATE
COURT OR, TO THE FULLEST EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT, AND
EACH LOAN PARTY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY CERTIFIED OR REGISTERED
MAIL DIRECTED TO SUCH LOAN PARTY AT THE ADDRESSES PROVIDED FOR IN SECTION 10.6
AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT THEREOF.
EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION TO JURISDICTION AND VENUE
OF ANY ACTION INSTITUTED AGAINST IT AS PROVIDED HEREIN AND AGREES NOT TO ASSERT
ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE. EACH LOAN PARTY, THE AGENT
AND THE LENDERS HEREBY WAIVE TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR
COUNTERCLAIM OF

                                      113

<PAGE>

ANY KIND ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
TO THE FULL EXTENT PERMITTED BY LAW.

          10.17 CERTIFICATIONS FROM LENDERS AND PARTICIPANTS.

               10.17.1 TAX WITHHOLDING.

               Each Lender or assignee or participant of a Lender that is not
incorporated under the Laws of the United States of America or a state thereof
(and, upon the written request of the Administrative Agent, each other Lender or
assignee or participant of a Lender) shall deliver to each of the Company and
the Administrative Agent two (2) duly completed appropriate valid Withholding
Certificates (as defined under Section 1.1441-1(c)(16) of the Income Tax
Regulations (the "REGULATIONS")) certifying its status (i.e. U.S. or foreign
person) and, if appropriate, making a claim of reduced, or exemption from, U.S.
withholding tax on the basis of an income tax treaty or an exemption provided by
the Internal Revenue Code. The term "WITHHOLDING CERTIFICATE" means a Form W-9;
a Form W-8BEN; a Form W-8ECI; a Form W-8IMY and the related statements and
certifications as required under Section 1.1441-1(e)(2) and/or (3) of the
Regulations; a statement described in Section 1.871-14(c)(2)(v) of the
Regulations; or any other certificates under the Internal Revenue Code or
Regulations that certify or establish the status of a payee or beneficial owner
as a U.S. or foreign person. Each Lender, assignee or participant required to
deliver to the Company and the Administrative Agent a Withholding Certificate
pursuant to the preceding sentence shall deliver such valid Withholding
Certificate as follows: (A) each Lender which is a party hereto on the Closing
Date shall deliver such valid Withholding Certificate at least five (5) Business
Days prior to the first date on which any interest or fees are payable by the
Borrowers hereunder for the account of such Lender; (B) each assignee or
participant shall deliver such valid Withholding Certificate at least five (5)
Business Days before the effective date of such assignment or participation
(unless the Administrative Agent in its sole discretion shall permit such
assignee or participant to deliver such valid Withholding Certificate less than
five (5) Business Days before such date in which case it shall be due on the
date specified by the Administrative Agent). Each Lender, assignee or
participant which so delivers a valid Withholding Certificate further undertakes
to deliver to each of the Company and the Administrative Agent two (2)
additional copies of such Withholding Certificate (or a successor form) on or
before the date that such Withholding Certificate expires or becomes obsolete or
after the occurrence of any event requiring a change in the most recent
Withholding Certificate so delivered by it, and such amendments thereto or
extensions or renewals thereof as may be reasonably requested by the Borrowers
or the Administrative Agent. In addition, each Lender or assignee or participant
of a Lender that is not incorporated under the Laws of the United States of
America or state thereof (and, upon the written request of the Administrative
Agent, any financial institution through which any such Lender, assignee or
participant has directed any payment to be made) shall enter into and comply
with any applicable certification, documentation, information or other reporting
requirement or agreement concerning U.S. accounts that it maintains or
concerning U.S. ownership of such Lender, assignee or participant, or any
substantially similar requirement or agreement, if entering into or complying
with such requirement or agreement is required by statute or regulation of the
United States as a precondition to relief or exemption from any tax, assessment
or other governmental

                                      114

<PAGE>

charge. Notwithstanding the submission of a Withholding Certificate claiming a
reduced rate of or exemption from U.S. withholding tax, the Administrative Agent
shall be entitled to withhold United States federal income taxes at the full 30%
withholding rate if in its reasonable judgment it is required to do so under the
due diligence requirements imposed upon a withholding agent under U.S. Federal
tax Law. Further, the Administrative Agent is indemnified under Section
1.1461-1(e) of the Regulations against any claims and demands of any Lender or
assignee or participant of a Lender for the amount of any tax it deducts and
withholds in accordance with regulations under Section 1441 of the Internal
Revenue Code.

               10.17.2 USA PATRIOT ACT.

               Each Lender or assignee or participant of a Lender that is not
incorporated under the Laws of the United States of America or a state thereof
(and is not excepted from the certification requirement contained in Section 313
of the USA Patriot Act and the applicable regulations because it is both (i) an
affiliate of a depository institution or foreign bank that maintains a physical
presence in the United states or foreign county, and (ii) subject to supervision
by a banking authority regulating such affiliated depository institution or
foreign bank) shall deliver to the Administrative Agent the certification, or,
if applicable, recertification, certifying that such Lender is not a "shell" and
certifying to other matters as required by Section 313 of the USA Patriot Act
and the applicable regulations: (1) within 10 days after the Closing Date, and
(2) at such other times as are required under the USA Patriot Act.

          10.18 NATURE OF FOREIGN BORROWER OBLIGATIONS.

               (a) Notwithstanding the joint and several liability of the
Foreign Borrowers under this Agreement or any other Loan Document, and
notwithstanding any other provision herein and in any other Loan Document, all
obligations and liabilities of each Foreign Borrower under this Agreement and
any of the Loan Documents on account of principal and interest under the Loans
and Reimbursement Obligations and Letters of Credit Borrowings shall be limited
to the principal amount advanced to such Foreign Borrower or its Subsidiaries
and reimbursement of draws under Letters of Credit issued for the account of
such Foreign Borrower or its Subsidiaries and, in each case, interest thereon.
Each Foreign Borrower shall be liable only for its pro rata share of all fees
and expenses and other sums due hereunder (other than principal and interest on
the Loans) based upon the ratio of the sum of Loans outstanding to and Letters
of Credit issued for such Foreign Borrower to the total amount of Loans
outstanding and Letters of Credit issued hereunder.

               (b) Any Foreign Borrower may from time to time deliver a
termination notice to the Administrative Agent requesting that it no longer be a
party hereto. Such termination shall be effective two Business Days after
receipt by the Administrative Agent so long as all obligations of such Foreign
Borrower hereunder have been paid in full (including principal, interest and
other amounts) and no Letter of Credit issued for the account or benefit of such
Foreign Borrower is outstanding; provided that, to the extent this Agreement
provides for the survival of certain provisions upon termination hereof, such
surviving provisions shall survive a termination under this subsection with
respect to any such Foreign Borrower. Following receipt of such notice, no
further Loans may be borrowed by such Foreign Borrower

                                      115

<PAGE>

hereunder, unless such Foreign Borrower shall thereafter rejoin this Agreement
as a Borrower pursuant to the joinder provisions of Section 7.1.10.

          10.19 PLEDGE OF FOREIGN LOAN PARTY LOANS.

               (a) To secure all of the Obligations, each of the Loan Parties
(other than the Foreign Loan Parties) hereby grants to the Administrative Agent,
for its benefit and the benefit of the Lenders, a security interest in and to
the following property of such Loan Party, whether now or hereafter existing,
and wherever located (collectively, the "PLEDGED COLLATERAL"): (i) loans and
advances made by the Loan Parties to Foreign Loan Parties pursuant to Section
7.2.4(v)(b) in an aggregate amount equal to the amount by which the aggregate
amount of loans and advances pursuant to Section 7.2.4(v)(b) exceeds
$20,000,000.00 (collectively, the "PLEDGED LOANS"); (ii) all instruments,
promissory notes, chattel paper, documents, certificates, securities and
investment property evidencing such Pledged Loans; (iii) all Liens and other
contracts securing or otherwise relating to such Pledged Loans; (iv) all books
and records relating to such Pledged Loans and items of collateral described in
the preceding clauses (ii) and (iii); and (v) all proceeds of such Pledged Loans
and items of collateral described in the preceding clauses (ii) and (iii).

               (b) In furtherance of the foregoing: (i) the Company, on behalf
of the Loan Parties, shall promptly as practicable after the existence thereof,
cause all of the Pledged Loans to be evidenced by a duly executed intercompany
promissory note and deliver same to the Administrative Agent together with all
other original items of Pledged Collateral of a type requiring possession by the
Administrative Agent for perfection of the Administrative Agent's and Lenders'
Lien under applicable Law, duly endorsed and dated in blank, if such endorsement
is necessary or customary; and (ii) the Loan Parties hereby authorize the
Administrative Agent, for its benefit and the benefit of the Lenders, to file
Uniform Commercial Code financing statements naming each Loan Party holding
Pledged Collateral as a debtor and describing the Pledged Collateral therein.
Upon and during the continuation of an Event of Default, the Administrative
Agent, for its benefit and the benefit of the Lenders, may exercise all of the
rights and remedies of a secured creditor with respect to the Pledged Collateral
under the applicable Uniform Commercial Code, including without limitation the
right to demand that payment of the Pledged Collateral be made directly to the
Administrative Agent, for its benefit and the benefit of the Lenders, for
application to the Obligations consistent with Section 8.2.5.

               (c) If, after the pledge of Pledged Loans as contemplated in this
Section 10.19, the aggregate amount of loans and advances made by the Loan
Parties to Foreign Loan Parties under Section 7.2.4(v)(b) no longer exceeds
$20,000,000.00, the Borrower Agent may provide to the Administrative Agent a
certificate of a Responsible Officer certifying to such fact (including
reasonable confirming calculations) and request that the Administrative Agent
release such Pledged Loans. The Administrative shall thereafter effectuate such
release by return of the original Pledged Collateral relating to such Pledged
Loans to the Borrower Agent and amendment to any of its applicable Uniform
Commercial Code financing statements. Any such release shall be limited to the
specific Pledged Loans released and shall not constitute a general release of
the requirements of Section 7.2.4(v)(b) and this Section 10.19.

                                       116

<PAGE>

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

                                        BORROWERS:
                                        P.H. GLATFELTER COMPANY

                                        By: /s/ John P. Jacunski
                                            ------------------------------------
                                        Name: John P. Jacunski
                                        Title: Senior Vice President and Chief
                                               Financial Officer

                                        PHG TEA LEAVES, INC.

                                        By: /s/ George B. Amoss, Jr.
                                            ------------------------------------
                                        Name: George B. Amoss, Jr.
                                        Title: Vice President

                                        GLATFELTER GERNSBACH GMBH & CO. KG

                                        By: Glatfelter Verwaltungsgesellschaft
                                            mbH,
                                            its General Partner

                                        By: /s/ John P. Jacunski
                                            ------------------------------------
                                        Name: John P. Jacunski
                                        Title: Managing Director
                                               (Geschaftsfuhrer)

                                        GLATFELTER VERWALTUNGSGESELLSCHAFT MBH

                                        By: /s/ Martin Rapp
                                            ------------------------------------
                                        Name: Martin Rapp
                                        Title: Managing Director
                                               (Geschaftsfuhrer)

                                        GLATFELTER LYDNEY, LTD.

                                        By: /s/ Martin Rapp
                                            ------------------------------------
                                        Name: Martin Rapp
                                        Title: Director

                                        MOLLANVICK, INC.

                                        By: /s/ George B. Amoss, Jr.
                                            ------------------------------------
                                        Name: George B. Amoss, Jr.
                                        Title: President

                                      117

<PAGE>

                                      GLATFELTER FALKENHAGEN GMBH

                                      By: /s/ Martin Rapp
                                          ------------------------------------
                                      Name: MARTIN RAPP
                                      Title: Managing Director (Geschaftsfuhrer)

                                      GLATFELTER FALKENHAGEN HOLDING GMBH

                                      By: /s/ Martin Rapp
                                          ------------------------------------
                                      Name: MARTIN RAPP
                                      Title: Managing Director (Geschaftsfuhrer)

                                      GLATFELTER CANADA INC.

                                      By: /s/ John P. Jacunski
                                          ------------------------------------
                                      Name: John P. Jacunski
                                      Title: Vice President

                                      GLATFELTER GATINEAU LTEE

                                      By: /s/ John P. Jacunski
                                          ------------------------------------
                                      Name: John P. Jacunski
                                      Title: Vice President

                                      GLATFELTER CAERPHILLY LTD.

                                      By: /s/ Martin Rapp
                                          ------------------------------------
                                      Name: Martin Rapp
                                      Title: Director

                                      118

<PAGE>

                                        GUARANTORS:

                                        THE GLATFELTER PULP WOOD COMPANY

                                        By: /s/ Thomas V. Bosley
                                            ------------------------------------
                                        Name: Thomas V. Bosley
                                        Title: Vice President and
                                               General Manager

                                        GLATFELTER HOLDINGS, LLC

                                        By: /s/ Donald R. Gross
                                            ------------------------------------
                                        Name: Donald R. Gross
                                        Title: Treasurer

                                      119

<PAGE>

                                        PNC BANK, NATIONAL ASSOCIATION, and as
                                        Administrative Agent and as a Lender

                                        By: /s/ Brian Vesey
                                            ------------------------------------
                                        Name:  Brian Vesey
                                        Title:  Vice President

                                      120

<PAGE>

                                        CITIZENS BANK OF PENNSYLVANIA, as
                                        Syndications Agent and a Lender

                                        By: /s/ Michael J. Gillig
                                            ------------------------------------
                                        Name: Michael J. Gillig
                                        Title: Vice President

                                      121

<PAGE>

                                        COBANK, ACB, as a Lender

                                        By: /s/ Jeffrey C. Norte
                                            ------------------------------------
                                        Name: Jeffrey C. Norte
                                        Title: Vice President

                                      122

<PAGE>

                                        MANUFACTURERS AND TRADERS TRUST COMPANY,
                                        as a Lender

                                        By: /s/ Paul R. Delmonte
                                            ------------------------------------
                                        Name: Paul R. Delmonte
                                        Title: Assistant Vice President

                                      123

<PAGE>

                                        HSBC BANK USA, N.A., as a Lender

                                        By: /s/ Susan A. Waters
                                            ------------------------------------
                                        Name: Susan A. Waters
                                        Title: Vice President

                                      124

<PAGE>

                                        BANK OF AMERICA, N.A., as a Lender

                                        By: /s/ Michael J. Balok
                                            ------------------------------------
                                        Name: Michael J. Balok
                                        Title:  Sr. Vice President

                                      125

<PAGE>

                                        JPMORGAN CHASE BANK, N.A., as a Lender

                                        By: /s/ James A. Knight
                                            ------------------------------------
                                        Name: James A. Knight
                                        Title: Vice President

                                      126

<PAGE>

                                 SCHEDULE 1.1(A)

                   PRICING GRID FOR P. H. GLATFELTER COMPANY*
                             PRICING IN BASIS POINTS

<TABLE>
<CAPTION>
                               LEVEL I           LEVEL II           LEVEL III         LEVEL IV          LEVEL V
                          ----------------   ----------------   ----------------   --------------   --------------
                                                                                                        IF THE
                          IF THE COMPANY'S                                             IF THE       COMPANY'S DEBT
                           DEBT RATING IS    IF THE COMPANY'S   IF THE COMPANY'S   COMPANY'S DEBT      RATING IS
                             BAA2/BBB OR      DEBT RATING IS     DEBT RATING IS       RATING IS       BA3/BB- OR
BASIS FOR PRICING              HIGHER.          BAA3/BBB-.          BA1/BB+.           BA2/BB.          LOWER.
-----------------         ----------------   ----------------   ----------------   --------------   --------------
<S>                       <C>                <C>                <C>                <C>              <C>
COMMITMENT FEE                    30                 35               42.5                50               60
LETTER OF CREDIT
   FEE/EURO-RATE SPREAD          175                200                225               250              275
BASE RATE SPREAD                  75                100                125               150              175
</TABLE>

*    IN THE EVENT THE COMPANY'S SENIOR UNSECURED DEBT IS SPLIT-RATED, PRICING
     WILL BE DETERMINED BY THE HIGHER OF THE TWO RATINGS, EXCEPT THAT IF THE
     RATINGS DIFFER BY MORE THAN ONE LEVEL, PRICING WILL BE DETERMINED BY ONE
     LEVEL ABOVE THE LOWER RATING. IN THE EVENT THAT EITHER MOODY'S OR STANDARD
     & POOR'S SHALL CEASE TO RATE THE SENIOR UNSECURED DEBT OF THE COMPANY,
     LEVEL V PRICING SHALL APPLY. INCREASES OR DECREASES IN PRICING AND FEES
     PURSUANT TO THE GRID ABOVE SHALL BE EFFECTIVE AS OF THE DATE ON WHICH ANY
     RATING OF THE SENIOR UNSECURED DEBT OF THE COMPANY SHALL CHANGE (IF SUCH
     CHANGE RESULTS IN A CHANGE IN THE PRICING LEVEL), EXCEPT THAT ANY INCREASE
     OR DECREASE IN THE PRICING RELATING TO OUTSTANDING BORROWING TRANCHES OF
     LOANS IN AN OPTIONAL CURRENCY SHALL BE EFFECTIVE UPON THE EXPIRATION OF THE
     CURRENT INTEREST PERIOD (AND NOT AT THE TIME OF THE CHANGE IN THE COMPANY'S
     SENIOR UNSECURED DEBT RATING).

                               SCHEDULE 1.1(A) - 1

PRN 459548

<PAGE>

                                 SCHEDULE 1.1(B)

                 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

PART 1 - COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES TO LENDERS AND
ADMINISTRATIVE AGENT

<TABLE>
<CAPTION>
                                                     AMOUNT
                                                 OF COMMITMENT       AMOUNT OF
                                                 FOR REVOLVING    COMMITMENT FOR
                    LENDER                        CREDIT LOANS      SWING LOANS       COMMITMENT      RATABLE SHARE
                    ------                      ---------------   --------------   ---------------   --------------
<S>                                             <C>               <C>              <C>               <C>
LENDER NAME (ALSO
ADMINISTRATIVE AGENT):
PNC Bank, National Association
ADDRESS FOR NOTICES:
1000 Westlakes Drive
Suite 200
Berwyn, PA 19312
Phone: 610-725-5740
Fax:610-725-5799
Email: brian.vesey@pnc.com

ADDRESS OF LENDING OFFICE:                      $ 40,000,000.00   $20,000,000.00   $ 40,000,000.00     17.777777778%
PNC Firstside Center, 3rd Floor
500 First Ave.
Pittsburgh, PA  15219
Attention: Rini Davis
Telephone: (412) 762-7638
Facsimile: (412) 762-8672
Email: rini.davis@pnc.com

LENDER NAME:
Citizens Bank of Pennsylvania
ADDRESS FOR NOTICES:
2 N. Second Street, FL 12
Harrisburg, PA  17101
Attention: Curt S. Lang, VP
Telephone: (717) 777-3350
Facsimile: (717) 777-3363
Email: curt.s.lang@citizensbank.com

ADDRESS OF LENDING OFFICE:                      $ 40,000,000.00         N/A        $ 40,000,000.00     17.777777778%
2 N. Second Street, FL 12
</TABLE>

                               SCHEDULE 1.1(B) - 1

PRN 459548

<PAGE>

<TABLE>
<S>                                             <C>               <C>              <C>               <C>
Harrisburg, PA 17101
Attention: Lynn Downing
Telephone: (781) 655-4398
Facsimile: (781) 655-4097
Email: lynn.downing@rbscitizens.com

LENDER NAME:
CoBank, ACB
ADDRESS FOR NOTICES:
5500 South Quebec St.
Greenwood Village, CO 80111
Attention: Michael Tousignant
Telephone: (303) 694-5838
Facsimile:
Email: mtousignant@cobank.com

ADDRESS OF LENDING OFFICE:                      $ 35,000,000.00         N/A        $ 35,000,000.00     15.555555556%
5500 South Quebec St.
Greenwood Village, CO 80111
Attention: Betty Marshall
(303) 740-4016
Facsimile: (303) 740-4021
Email: Agencybank@cobank.com

LENDER NAME:
Manufacturers and Traders Trust
Company

ADDRESS FOR NOTICES:
2055 S. Queens St., 2nd Floor
York, PA 17403
Attention: Paul Delmonte
Telephone: (717) 771-4901
Facsimile: (717) 771-4914
Email: pdelmonte@mtb.com

ADDRESS OF LENDING OFFICE:                      $ 35,000,000.00         N/A        $ 35,000,000.00     15.555555556%
2055 S. Queens St., 2nd Floor
York, PA 17403
Attention: Paul Delmonte
Telephone: (717) 771-4901
Facsimile: (717) 771-4914
Email: pdelmonte@mtb.com

LENDER NAME:
</TABLE>

                               SCHEDULE 1.1(B) - 2

PRN 459548

<PAGE>

<TABLE>
<S>                                             <C>               <C>              <C>               <C>
HSBC Bank USA, N.A.
ADDRESS FOR NOTICES:
Four Tower Bridge
200 Barr Harbor Dr.
Suite 400
West Conshohoken, PA 19428
Attention: Susan Waters
Telephone: (267) 575-0042
Facsimile:
Email: susan.waters@us.hsbc.com

ADDRESS OF LENDING OFFICE:                      $ 28,000,000.00         N/A        $ 28,000,000.00     12.444444444%
Four Tower Bridge
200 Barr Harbor Dr.
Suite 400
West Conshohoken, PA 19428
Attention: Tina Craiglow
Telephone: (716) 841-1670
Facsimile: (917) 229-0979
Email: tina.craiglow@us.hsbc.com

LENDER NAME:
Bank of America, N.A.
ADDRESS FOR NOTICES:
315 Montgomery St., 6th Fl.
San Francisco, CA 94104-1866
Attention: Michael J. Balok, Sr. VP
Telephone: (415) 913-4776
Facsimile: (415) 913-2357
Email: mike.balok@baml.com

ADDRESS OF LENDING OFFICE:                      $ 23,500,000.00         N/A        $ 23,500,000.00     10.444444444%
315 Montgomery St., 6th Fl.
San Francisco, CA 94104-1866
Attention: Neha Walla
Telephone: (415) 436-4777 x 8621
Facsimile: (804) 266-8065
Email: neha.walla@bankofamerloan.com
</TABLE>

                               SCHEDULE 1.1(B) - 3

PRN 459548

<PAGE>

<TABLE>
<S>                                             <C>               <C>              <C>               <C>
LENDER NAME:
JPMorgan Chase Bank, N.A.
ADDRESS FOR NOTICES:
277 Park Ave., 23rd Floor
New York, NY 10172
Attention: James Knight
Telephone: (212) 622-8486
Facsimile: (212) 534-3081
Email: james.a.knight@jpmorgan.com

ADDRESS OF LENDING OFFICE:                      $ 23,500,000.00         N/A        $ 23,500,000.00     10.444444444%
277 Park Ave., 23rd Floor
New York, NY 10172
Attention: Non-Agented Servicing Team
Telephone: (312) 385-7072
Facsimile: (312) 256-2608
Email:
cls.chicago.non-agentedservicing@jpmorgan.com
TOTALS                                          $225,000,000.00   $20,000,000.00   $225,000,000.00   $100.000000000%
</TABLE>

                               SCHEDULE 1.1(B) - 4

PRN 459548

<PAGE>

                                 SCHEDULE 1.1(B)

                 COMMITMENTS OF BANKS AND ADDRESSES FOR NOTICES

PART 2 - ADDRESSES FOR NOTICES TO LOAN PARTIES:

EACH LOAN PARTY:

c/o P. H. Glatfelter Company
Address: 96 South George Street, Suite 500
York, PA 17401
Attention: George B. Amoss, Jr., Treasurer
Telephone: (717) 225-2746
Facsimile: (717) 812-8964
Email: gamoss@glatfelter.com

                               SCHEDULE 1.1(B) - 5

PRN 459548

<PAGE>

                                 SCHEDULE 1.1(E)

                           EXISTING LETTERS OF CREDIT

L/C # 902151 $10,000 Beneficiary: PA Department of Environmental Resources
(expiration--7/19/2010), Issued by PNC Bank

L/C # 902152 $4,400,000 Beneficiary: Bureau of Worker's Compensation PA Self
Insurance Division (expiration--9/30/2010), Issued by PNC Bank

L/C # 18103725 $940,000 Beneficiary: Liberty Mutual (expiration--9/12/2010),
Issued by PNC Bank

L/C # 18103701 $350,000 Beneficiary: MD Workers Compensation
(expiration--9/8/2010), Issued by PNC Bank

L/C # 907756 $50,000 Beneficiary: Zurich American Insurance Comp.
(expiration--4/30/2010), Issued by M and T

L/C # 68030701 $1,100,000 Beneficiary: Royal Bank of Scotland
(expiration--5/31/2010), Issued by Bank of America

L/C# 68030688 $660,000 Beneficiary: ABN Amro Bank (expiration--5/12/2011),
Issued by Bank of America

                               Schedule 1.1(E) - 1
<PAGE>

                                 SCHEDULE 1.1(M)

                              MATERIAL SUBSIDIARIES

Glatfelter Gatineau Ltee. (formerly known as Glatfelter Airlaid Inc.)

Glatfelter Falkenhagen Holding GmbH (formerly known as Concert Europe GmbH)

Glatfelter Falkenhagen GmbH (formerly known as Concert GmbH)

Glatfelter Pulp Wood Company

Glatfelter Canada, Inc.

Mollanvick, Inc.

Glatfelter Gernsbach GmbH & Co. KG (formerly known as Papierfabrik Schoeller &
Hoesch GmbH & Co. KG)

Glatfelter Verwaltungsgesellschaft mbH (formerly known as S&H
Verwaltungsgesellschaft mbH)

PHG Tea Leaves, Inc.

Glatfelter Lydney Ltd. (formerly known as Glatfelter-UK, Ltd.)

                               Schedule 1.1(M) - 1
<PAGE>

                                 SCHEDULE 1.1(P)

                                 PERMITTED LIENS

1. The following UCC-1 financing statements, currently on file with the
Pennsylvania Department of State, Uniform Commercial Code Section, filed against
the Company, as debtor, which the Borrowers represent and warrant relate to
consignment arrangements of the Company, and extends only to the properties
consigned by (and no other property or assets of the Company):

File Type :             Original
File Number :           2006062206559
File Date :             06/19/2006
Current Secured Party
of Record :             AstenJohnson, Inc.

File Type :             Original
File Number :           2008022202824
File Date :             02/22/2008
Current Secured Party
of Record :             Motion Industries, Inc.

File Type :             Original
File Number :           2009082505490
File Date :             8/25/2009
Current Secured Party
of Record :             Kaman Industrial Technologies Corporation

File Type :             Original
File Number :           2009030401715
File Date :             3/3/2009
Current Secured Party
of Record :             Kemira Chemicals, Inc.

File Type :             Original
File Number :           2009072303111
File Date :             7/23/2009
Current Secured Party
of Record :             Alabama River Group, Inc.

2. The following UCC-1 financing statements, currently on file with the
Pennsylvania Department of State, Uniform Commercial Code Section, filed against
the Loan Parties, as debtors, which the Borrowers represent and warrant relate
to such Loan Parties and extend only to the equipment leased by (and no other
property or assets of) the Loan Parties:

File Type :             Original
File Number :           2006110303491

                               Schedule 1.1(P) - 1

<PAGE>

File Date :             11/01/2006
Current Secured Party
of Record :             M&T Credit Services, LLC

File Type :             Original
File Number :           2007022304260
File Date :             02/22/2007
Current Secured Party
of Record :             M&T Credit Services, LLC

File Type :             Original
File Number :           2007050702028
File Date :             05/07/2007
Current Secured Party
of Record :             CIT Technologies Corporation

File Type :             Original
File Number :           2007050702066
File Date :             05/07/2007
Current Secured Party
of Record :             CIT Technologies Corporation

File Type :             Assignment
File Number :           2007102311832
File Date :             10/23/2007
Current Secured Party
of Record :             RBS Asset Finance, Inc.,
                        assignee of CIT Technologies Corporation

File Type :             Original
File Number :           2007060502329
File Date :             06/04/2007
Current Secured Party
of Record :             M&T Credit Services, LLC

File Type :             Original
File Number :           2007082305620
File Date :             08/23/2007
Current Secured Party
of Record :             CIT Technologies Corporation

File Type :             Assignment
File Number :           2007102311856
File Date :             10/23/2007
Current Secured Party
of Record :             RBS Asset Finance, Inc.,
                        assignee of CIT Technologies Corporation

                               Schedule 1.1(P) - 2

<PAGE>

File Type :             Original
File Number :           2008010200939
File Date :             12/31/2007
Current Secured Party
of Record :             M&T Credit Services, LLC

File Type :             Original
File Number :           2008010201056
File Date :             12/31/2007
Current Secured Party
of Record :             M&T Credit Services, LLC

File Type :             Original
File Number :           2008011002269
File Date :             01/09/2008
Current Secured Party
of Record :             M&T Credit Services, LLC

File Type :             Original
File Number :           2008013006687
File Date :             01/30/2008
Current Secured Party
of Record :             M&T Credit Services, LLC

File Type :             Original
File Number :           2008031405798
File Date :             03/14/2008
Current Secured Party
of Record :             Macquarie Equipment Finance, LLC

File Type :             Assignment
File Number :           2008032507389
File Date :             03/25/2008
Current Secured Party
of Record :             RBS Asset Finance, Inc.,
                        assignee of Macquarie Equipment Finance, LLC

File Type :             Amendment
File Number :           2008040406208
File Date :             04/04/2008
Current Secured Party
of Record :             Macquarie Equipment Finance, LLC
(Glatfelter Pulp Wood Company added as Debtor)

File Type :             Original
File Number :           2008032100844

                               Schedule 1.1(P) - 3

<PAGE>

File Date :             03/20/2008
Current Secured Party
of Record :             M&T Credit Services, LLC

File Type :             Original
File Number :           2008060203505
File Date :             06/2/2008
Current Secured Party
of Record :             Macquarie Equipment Finance, LLC

File Type :             Assignment
File Number :           2008060407608
File Date :             06/04/2008
Current Secured Party
of Record :             RBS Asset Finance, Inc.,
                        assignee of Macquarie Equipment Finance, LLC

File Type :             Original
File Number :           2008061105419
File Date :             06/11/2008
Current Secured Party
of Record :             Macquarie Equipment Finance, LLC

File Type :             Assignment
File Number :           2008061801910
File Date :             06/18/2008
Current Secured Party
of Record :             RBS Asset Finance, Inc.,
                        assignee of Macquarie Equipment Finance, LLC

File Type :             Original
File Number :           2008071602011
File Date :             07/16/2008
Current Secured Party
of Record :             Macquarie Equipment Finance, LLC

File Type :             Assignment
File Number :           2008072401763
File Date :             07/24/2008
Current Secured Party
of Record :             RBS Asset Finance, Inc.,
                        assignee of Macquarie Equipment Finance, LLC

File Type :             Original
File Number :           2008081906613
File Date :             08/19/2008

                               Schedule 1.1(P) - 4

<PAGE>

Current Secured Party
of Record :             Macquarie Equipment Finance, LLC

File Type :             Assignment
File Number :           2008090903935
File Date :             09/09/2008
Current Secured Party
of Record :             RBS Asset Finance, Inc.,
                        assignee of Macquarie Equipment Finance, LLC

File Type :             Original
File Number :           2008101005240
File Date :             10/10/2008
Current Secured Party
of Record :             xpedx, An International Paper Company

File Type :             Original
File Number :           2009050802428
File Date :             5/7/2009
Current Secured Party
of Record :             Manufacturers and Traders Trust Company

File Type :             Original
File Number :           2009110604041
File Date :             11/06/2009
Current Secured Party
of Record :             Macquarie Equipment Finance, LLC

File Type :             Original
File Number :           2009112002465
File Date :             11/19/2009
Current Secured Party
of Record :             Manufacturers and Traders Trust Company

File Type :             Original
File Number :           2010021204935
File Date :             02/12/2010
Current Secured Party
of Record :             IBM Credit LLC

                               Schedule 1.1(P) - 5
<PAGE>

                                 SCHEDULE 5.1.1

                          QUALIFICATIONS TO DO BUSINESS

                            P. H. GLATFELTER COMPANY
                                  SUBSIDIARIES

<TABLE>
<CAPTION>
                                           JURISDICTION OF INCORPORATION
                 ENTITY                             OR FORMATION           STATES QUALIFIED TO DO BUSINESS
----------------------------------------   -----------------------------   -------------------------------
<S>                                        <C>                             <C>
Glatfelter Falkenhagen Engineering GmbH    Germany                         N/A
(formerly known as AA-Tech Systems GmbH)

Glatfelter Gatineau Ltee. (formerly        Canada                          N/A
known as Glatfelter Airlaid Inc.)

Glatfelter Falkenhagen GmbH                Germany                         N/A
(formerly known as Concert GmbH)

Glatfelter Falkenhagen Holding GmbH        Germany                         N/A
(formerly known as Concert Europe GmbH)

P. H. Glatfelter Company (GLT)             Pennsylvania                    Alabama
                                                                           California
                                                                           Delaware
                                                                           Georgia
                                                                           Iowa
                                                                           Kansas
                                                                           Kentucky
                                                                           Massachusetts
                                                                           Michigan
                                                                           Minnesota
                                                                           Missouri
                                                                           North Carolina
                                                                           New Jersey
                                                                           Ohio
                                                                           Oregon
                                                                           Tennessee
                                                                           Texas
                                                                           Virginia
                                                                           Wisconsin
                                                                           West Virginia
</TABLE>

                               Schedule 5.1.1 - 1

<PAGE>

<TABLE>
<CAPTION>
                                           JURISDICTION OF INCORPORATION
                 ENTITY                             OR FORMATION           STATES QUALIFIED TO DO BUSINESS
----------------------------------------   -----------------------------   -------------------------------
<S>                                        <C>                             <C>
PHG Tea Leaves, Inc.                       Delaware                        N/A

Glatfelter Canada, Inc.                    Canada                          N/A

Glatfelter Pulp Wood Company               Maryland                        Delaware
                                                                           Pennsylvania
                                                                           Virginia

Glatfelter Holdings, LLC                   Delaware                        N/A

GPW Virginia Timberlands LLC               Delaware                        N/A

GW Partners, LLC (50% partnership          Wisconsin                       N/A
interest)

Mollanvick, Inc.                           Delaware                        N/A

Glatfelter Composite Fibers  N.A., Inc.    Delaware                        Missouri
(formerly known as Schoeller & Hoesch                                      North Carolina
N.A., Inc.)                                                                Ohio
                                                                           South Carolina
                                                                           Texas
                                                                           Virginia
                                                                           Georgia
                                                                           Massachusetts

Glatfelter Gernsbach GmbH & Co. KG         Germany                         N/A
(formerly known as Papierfabrik
Schoeller & Hoesch GmbH & Co. KG)

Papcel-Papier und Cellulose, Technologie   Germany                         N/A
und Handels-GmbH

Glatfelter  Auslandsbeteiligungen GmbH     Germany                         N/A
(formerly known as Papierfabrik
Schoeller & Hoesch Auslandsbeteiligungen
GmbH)

PHG Verwaltungsgesellschaft                Germany                         N/A
</TABLE>

                               Schedule 5.1.1 - 2

<PAGE>

<TABLE>
<CAPTION>
                                           JURISDICTION OF INCORPORATION
                 ENTITY                             OR FORMATION           STATES QUALIFIED TO DO BUSINESS
----------------------------------------   -----------------------------   -------------------------------
<S>                                        <C>                             <C>
mbH

Glatfelter Verwaltungsgesellschaft mbH     Germany                         N/A
(formerly known as S&H
Verwaltungsgesellschaft mbH)

TL Verwaltungsgesellschaft mbH             Germany                         N/A

Glatfelter Scaer SAS (formerly known as    France                          N/A
Schoeller & Hoesch SAS)

Glatfelter Lydney Ltd. (formerly known     United Kingdom                  N/A
as Glatfelter-UK, Ltd.)

Balo-I Industrial, Inc.                    Philippines                     N/A

Newtech Pulp Inc.                          Philippines                     N/A

Papcel-Kiew                                Ukraine                         N/A
</TABLE>

                               Schedule 5.1.1 - 3
<PAGE>

                                 SCHEDULE 5.1.2

                                  SUBSIDIARIES

<TABLE>
<CAPTION>
                                        JURISDICTION OF
                                       INCORPORATION OF
NAME                                       FORMATION             AUTHORIZED SHARES          SHARES OUTSTANDING/STOCKHOLDERS
----                                   ----------------   -------------------------------   -------------------------------
<S>                                    <C>                <C>                               <C>
Glatfelter Falkenhagen Engineering     Germany            EUR 25,000                        Owned by Glatfelter Falkenhagen
GmbH (formerly known as AA-Tech                                                             Holding GmbH
Systems GmbH)
                                                                                            Divided into two shares (EUR
                                                                                            13,500 + 11,500); only one
                                                                                            class of shares; all
                                                                                            non-certificated

Glatfelter Gatineau Ltee.              Canada             Unlimited number of common        10,266,668 common shares owned
(formerly known as Glatfelter                             shares                            by Glatfelter Canada Inc.
Airlaid Inc.)

Glatfelter Falkenhagen GmbH            Germany            DM 20,000,000                     Owned by Glatfelter Falkenhagen
(formerly known as Concert GmbH)                                                            Holding GmbH

                                                                                            Divided into nine shares
                                                                                            (DM 24,000 + 26,000 + 2,150,000
                                                                                            + 3,300,000 + 2,490,000 +
                                                                                            2,010,000 + 5,500,000 +
                                                                                            2,490,000 + 2,010,000); only
                                                                                            one class of shares; all
                                                                                            non-certificated

Glatfelter Falkenhagen Holding GmbH    Germany            EUR 50,200                        Owned by Glatfelter Gernsbach
(formerly known as Concert Europe                                                           GmbH & Co. KG
GmbH)
                                                                                            Divided into four shares (EUR
                                                                                            47,500 + 2500 + 100 + 100);
                                                                                            only one class of shares; all
                                                                                            non-certificated

PHG Tea Leaves, Inc.                   Delaware           1,000 shares common stock         1,000 shares owned by P.H.
                                                          ($0.01 par)                       Glatfelter Company ("GLT")

Glatfelter Canada, Inc.                Canada             Unlimited number of common        29,501,000 common shares owned
                                                          shares                            by PHG Tea Leaves, Inc.

Glatfelter Pulp Wood Company           Maryland           50 shares common stock            50 shares owned by GLT
</TABLE>

                               Schedule 5.1.2 - 1

<PAGE>

<TABLE>
<CAPTION>
                                        JURISDICTION OF
                                       INCORPORATION OF
NAME                                       FORMATION             AUTHORIZED SHARES          SHARES OUTSTANDING/STOCKHOLDERS
----                                   ----------------   -------------------------------   -------------------------------
<S>                                    <C>                <C>                               <C>
Glatfelter Holdings, LLC               Delaware           wholly owned by Glatfelter Pulp   Glatfelter Pulp Wood Company -
                                                          Wood Company                      sole member

GPW Virginia Timberlands LLC           Delaware           N/A                               Glatfelter Pulpwood Company -
                                                                                            sole member

GW Partners, LLC                       Wisconsin          N/A                               50% GLT (2,625 interests
(50% partnership interest)                                                                  $26.25 million)
                                                                                            50% WTMI (Wisconsin Tissue Paper
                                                                                            Company) (Joint Venture)

Mollanvick, Inc.                       Delaware           1,000 shares common stock         100 shares owned by GLT
                                                          ($0.01 par)

Glatfelter Composite Fibers  N.A.,     Delaware           1,000 shares common stock         100% owned by GLT
Inc. (formerly known as Schoeller &                       ($1.00 par)
Hoesch N.A., Inc.)

Glatfelter Gernsbach GmbH & Co. KG     Germany            N/A                               Glatfelter
(formerly known as Papierfabrik                                                             Verwaltungsgesellschaft mbH -
Schoeller & Hoesch GmbH & Co. KG)                                                           DM 21,890,000 PHG
                                                                                            Verwaltungsgesellschaft mbH -
                                                                                            DM 110,000 (limited partner)

Papcel-Papier und Cellulose,           Germany            wholly owned by Glatfelter        Glatfelter Gernsbach GmbH & Co.
Technologie und Handels-GmbH                              Gernsbach GmbH & Co. KG           KG - DM 50,000

Glatfelter Auslandsbeteiligungen       Germany            wholly owned by Glatfelter        Glatfelter Gernsbach GmbH & Co.
GmbH (formerly known as Papierfabrik                      Gernsbach GmbH & Co. KG           KG - DM 50,000
Schoeller & Hoesch
Auslandsbeteiligungen GmbH)

PHG Verwaltungsgesellschaft mbH        Germany            wholly owned by PHG Tea Leaves,   PHG Tea Leaves, Inc. - DM 50,000
                                                          Inc.

Glatfelter Verwaltungsgesellschaft     Germany            wholly owned by PHG Tea Leaves,   PHG Tea Leaves, Inc. - DM 50,000
mbH (formerly known as S&H                                Inc.
Verwaltungsgesellschaft mbH)                                                                Divided into two shares
                                                                                            (DM 15,000 + 35,000)
</TABLE>

                               Schedule 5.1.2 - 2

<PAGE>

<TABLE>
<CAPTION>
                                        JURISDICTION OF
                                       INCORPORATION OF
NAME                                       FORMATION             AUTHORIZED SHARES          SHARES OUTSTANDING/STOCKHOLDERS
----                                   ----------------   -------------------------------   -------------------------------
<S>                                    <C>                <C>                               <C>
TL Verwaltungsgesellschaft mbH         Germany            wholly owned by PHG Tea Leaves,   PHG Tea Leaves, Inc.
                                                          Inc.

Glatfelter Scaer SAS (formerly known   France             wholly owned by Glatfelter        Glatfelter
as Schoeller & Hoesch SAS)                                Auslandsbeteiligungen GmbH        Auslandsbeteiligungen
                                                                                            GmbH-1,002,500 shares;
                                                                                            15,300,000 Euros S

Glatfelter Lydney Ltd. (formerly       United Kingdom     wholly owned by PHG Tea Leaves    Glatfelter Gernsbach GmbH & Co.
known as Glatfelter-UK, Ltd.)                             Inc.                              KG

Balo-I Industrial, Inc.                Philippines        10,000 common shares of P100      Papcel-Papier und Cellulose,
                                                          each                              Technologie und Handels GmbH
                                                                                            998 shares
                                                                                            Eduardo Ramin-1 share (in
                                                                                            person)
                                                                                            Alberto Fenix, Jr.-750 shares
                                                                                            (in person)
                                                                                            Dr. Bernd Seger - 1 share
                                                                                            (proxy)
                                                                                            Alberto Guevara, Jr. - 749
                                                                                            shares (in person)
                                                                                            Martin Rapp - 1 share

Newtech Pulp Inc.                      Philippines        4,000,000 common shares of P100   Papcel-Papier und Cellulose,
                                                          each                              Technologie and Handels GmbH
                                                                                            1,999,995 shares
                                                                                            Dr. Bernd Seger-1 share (proxy)
                                                                                            Martin Rapp - 1 share (proxy)
                                                                                            Alberto Guevara, Jr.-1
                                                                                            share (in person)
                                                                                            Eduardo Ramin-1 share (in
                                                                                            person)
                                                                                            Alberto Fenix, Jr.-1 share
                                                                                            (in person)

Papcel-Kiew                            Ukraine            N/A                               100% owned by Papcel-Papier und
                                                                                            Cellulose, Technologie und
                                                                                            Handels GmbH

Glatfelter Caerphilly Ltd.             United Kingdom     100 common shares                 Glatfelter Lydney Ltd.
</TABLE>

                               Schedule 5.1.2 - 3

<PAGE>

<TABLE>
<CAPTION>
                                        JURISDICTION OF
                                       INCORPORATION OF
NAME                                       FORMATION             AUTHORIZED SHARES          SHARES OUTSTANDING/STOCKHOLDERS
----                                   ----------------   -------------------------------   -------------------------------
<S>                                    <C>                <C>                               <C>
Glatfelter Russia, LLC                 Russia             N/A                               98% owned by PHG Tea Leaves,
                                                                                            Inc.

                                                                                            1.5% owned by Glatfelter
                                                                                            Composite Fibers  N.A., Inc.

                                                                                            0.5% owned by Parinov Sergey
                                                                                            Vladimirovich
</TABLE>

                               Schedule 5.1.2 - 4
<PAGE>

                                 SCHEDULE 5.1.6

                                   LITIGATION

1. FOX RIVER - NEENAH, WISCONSIN

     The Company has significant uncertainties associated with environmental
claims arising out of the presence of polychlorinated biphenyls ("PCBs") in
sediments in the lower Fox River and in the Bay of Green Bay Wisconsin ("Site").
As part of the 1979 acquisition of the Bergstrom Paper Company, the Company
acquired a facility located at the Site (the "Neenah Facility"). In part, the
Neenah Facility used wastepaper as a source of fiber. At no time did the Neenah
Facility utilize PCBs in the pulp and paper making process, but discharges to
the lower Fox River from the Neenah Facility which may have contained PCBs from
wastepaper may have occurred from 1954 to the late 1970s. Any PCBs that the
Company's Neenah Facility discharged into the lower Fox River resulted from the
presence of PCBs in NCR(R)-brand carbonless copy paper in the wastepaper that
was recycled at the Neenah Facility. The Company closed the Neenah Facility in
June 2006.

     The United States, the State of Wisconsin and various state and federal
governmental agencies (collectively, the "Governments"), as well as private
parties, have found PCBs in sediments in the bed of the Fox River, apparently
from a number of sources at municipal and industrial facilities along the
upstream and downstream portions of the Site. The Governments have identified
manufacturing and recycling of NCR(R)-brand carbonless copy paper as the
principal source of that contamination.

     The United States Environmental Protection Agency ("EPA") has divided the
lower Fox River and the Bay of Green Bay site into five "operable units"
numbered from the most upstream ("OU1") to the most downstream ("OU5"). OU1 is
the reach from primarily Lake Winnebago to the dam at Appleton, and is comprised
of Little Lake Butte des Morts. The Company's Neenah Facility discharged its
wastewater into OU1. OU2 extends from the dam at Appleton to the dam at Little
Rapids, OU3 from the dam at Little Rapids to the dam at De Pere, OU4 from the
dam at De Pere to the mouth of the river, and OU5 from the mouth into the lower
portion of Green Bay. The river extends 39 miles from the upstream end of OU1 to
the downstream end of OU4.

     The Company's liabilities, if any, for this contamination primarily arise
under the federal Comprehensive Environmental, Response, Compensation and
Liability Act ("CERCLA" or "Superfund"). The Governments have sought to recover
"response actions" or "response costs," which are the costs of studying and
cleaning up contamination, from various "responsible parties." In addition,
various natural resource trustee agencies of the United States, the States of
Wisconsin and Michigan, and several Indian Tribes (the "Natural Resources
Trustees" or "Trustees") have sought to recover natural resource damages
("NRDs"), including natural resource damage assessment costs. Parties that have
incurred response costs or NRDs either voluntarily or in response to the
governments' and Trustees' demands may have an opportunity to seek contribution
or other recovery of some or all of those costs from other parties who are
jointly and severally responsible under Superfund for those costs. Therefore, as
the Company incurs costs, it also will acquire a claim against other parties who
may not have paid their equitable share of those costs. As others incur costs,
they acquire a claim against the Company to the extent that they claim that the
Company has not paid its equitable share of the total. Any party that resolves
its liability to the United States or a state in a judicially or
administratively

                                       1

<PAGE>

approved settlement agreement obtains protection from contribution claims for
matters addressed in the settlement.

     For these reasons, all of the parties who are potentially responsible
("PRPs") under CERCLA for response costs or NRDs have exposure to liability for:
(a) the cost of past response actions taken by anyone else, (b) the cost of past
NRD payments or restoration projects incurred by anyone else, (c) the cost of
response actions to be taken in the future, and (d) NRDs. All of this exposure
is subject to substantial defenses, including, for example, that the PRP is not
liable or not jointly and severally liable for any particular cost or damage,
that the cost or damage is not recoverable under CERCLA or any other law, or
that the recovery is barred by the passage of time. In addition, a party that
has incurred or committed to incur costs or has paid NRDs may be able to claim
credit for that cost or payment in any equitable allocation of response costs or
NRDs in any action for reallocation of costs.

CLEANUP DECISIONS

     The Company's liability exposure depends importantly on the decisions made
by EPA and the Wisconsin Department of Natural Resources ("WDNR") as to how the
Site will be cleaned up, and consequently the costs and timing of those response
actions. The nature of the response actions has been highly controversial. EPA
issued a record of decision ("ROD") selecting response actions for OU1 and OU2
in December 2002. EPA issued a separate ROD selecting response actions for OU3,
OU4, and OU5 in March 2004 and in June 2007.

     EPA amended the RODs for OUs 2-5 in June 2007 to require less dredging and
more capping and covering of sediments containing PCBs. The governments have
concluded that these methods will result in a reduction in the costs for this
portion of the cleanup. Others disagree. Likewise, in June 2008, EPA also
amended the ROD for OU1.

NRD ASSESSMENT

     The Natural Resources Trustees have engaged in work to assess NRDs at and
arising from the Site. However, they have not completed a required NRD
Assessment under the pertinent regulations. The Trustees' 2009 estimate of NRDs
and associated costs ranges from $287 million to $423 million, some of which has
already been satisfied. With specific respect to NRD claims, the Company and
others contended that the Trustees' claims are barred by the applicable 3 year
statute of limitations.

PAST COSTS DEMAND

     By letter dated January 15, 2009, EPA demanded that the Company and six
other parties reimburse EPA for approximately $17.6 million in costs that EPA
claims it incurred as necessary costs of response not subject to any other
agreement in this matter. In response, the Company and the other parties which
were contacted, notified the EPA that the supporting documentation provided by
EPA did not allow the Company to fully evaluate this demand and the Company
requested that the EPA provide additional supporting information for the claimed
costs. EPA has not yet responded to this request. Accordingly, the Company is
unable to reasonably estimate its potential liability for these costs.

WORK UNDER AGREEMENTS, ORDERS, AND DECREES

     The Company's exposure to liability depends on the amount of work done,
costs incurred, and damages paid both by the Company and by others. The
procedural context of any work done, costs incurred, and damages paid also
impact are ultimate exposure.

                                       2

<PAGE>

Since 1991, the Governments and various groups of potentially responsible
parties, including the Company, have entered into a series of agreements,
orders, and decrees under which the Company and others have performed work,
incurred costs, or paid damages in connection with the Site. As a result, some
parties have contributed or performed substantial work at the Site and at least
one party, Fort Howard Corporation (whose successor is either the Fort James
Operating Company or Georgia Pacific Corporation) has resolved its NRD liability
at the Site.

     Notably, in April 2004, the United States District Court for the Eastern
District of Wisconsin entered a consent decree ("OU1 Consent Decree") in United
States v. P.H. Glatfelter Co., No. 2:03-cv-949, under which the Company and WTM
I Corp. have been implementing the remedy in OU1, dividing costs evenly in
addition to a $7 million contribution from Menasha Corp. and a $10 million
contribution that the United States contributed from a separate settlement in
United States v. Appleton Papers Inc., No. 2:01-cv-816, obligating NCR and
Appleton Papers to contribute to certain NRD projects. In June 2008, the parties
entered into an amendment to the OU1 Consent Decree ("Amended OU1 Consent
Decree"). That amendment allowed for implementation of the amended remedy for
OU1 and committed the Company and WTM I to implement that remedy without a cost
limitation on that commitment. The Company and WTM I have substantially
completed the amended remedy for OU1. The Company anticipates that the remaining
tasks, other than monitoring and maintenance, will be completed by the second
quarter of 2010.

     Further, in November 2007, EPA issued an administrative order for remedial
action ("UAO") to Appleton Papers Inc., CBC Coating, Inc. (formerly known as
Riverside Paper Corporation), Georgia-Pacific Consumer Products, L.P. (formerly
known as Fort James Operating Company), Menasha Corporation, NCR Corporation,
the Company, U.S. Paper Mills Corp., and WTM I Company directing those
respondents to implement the amended remedy in OU2-5. Shortly following issuance
of the UAO, Appleton Papers Inc. and NCR Corp. commenced litigation against the
Company and others, as described below. Accordingly, the Company has no vehicle
for complying with the UAO's overall requirements other than answering a
judgment in the litigation, and the Company has so informed EPA. However, in
February 2009, the EPA sent a demand to each of the respondents on the UAO other
than WTM I demanding payment of the government's oversight costs under the UAO
for the period from November 2007 through August 2008. In February 2009, the
Company notified the EPA that it believed that its demand could prove
distracting to litigation commenced by Appleton Papers and NCR against the other
UAO respondents. In order to remove this distraction, and in the spirit of
cooperation, the Company stated that it would satisfy the EPA's demand, an
amount which was insignificant, in full. The Company paid this amount.

NRDS

     The Trustees claimed that the Company was jointly and severally responsible
for NRDs with a value between $176 million and $333 million. In their recently
filed brief, they further claim that this range should be inflated to 2009
dollars and then certain unreimbursed past assessment costs should be added, so
that the range of their claim would be $287 million to $423 million. The Company
denies (a) liability for most of these NRDs, (b) that if anyone is liable, that
the Company is jointly and severally liable for the full amount; and (c) that
the Trustees can pursue this claim at this late date as the limitations period
for NRD claims is three years from discovery.

                                       3

<PAGE>

ALLOCATION

     Since 1991, various potentially responsible parties have, without success,
attempted to agree on a binding, final, allocation of costs and damages among
themselves. All costs that they have incurred to date have been incurred
individually, or under interim, nonbinding allocations. However, the consent
decree in United States v. P. H. Glatfelter Co. affords the Company and WTM I
contribution protection for claims seeking to reallocate costs of implementing
the OU1 remedy, and Fort James Operating Co. (now Georgia-Pacific) has certain
rights under its consent decree. Otherwise, the parties have not litigated their
internal allocation with the Company except as described below.

     NCR and Appleton Papers Inc. commenced litigation in the United States
District Court for the Eastern District of Wisconsin captioned Appleton Papers
Inc. v. George A. Whiting Paper Co., No. 2:08-cv-16, seeking to reallocate costs
and damages allegedly incurred or paid or to be incurred or paid by NCR or
Appleton Papers (the "Whiting Litigation"). They have to date joined a number of
defendants, dismissed some of those, filed a parallel action, and consolidated
the two cases. At present, the case involves allocation claims among the two
plaintiffs and 28 defendants: the Company, George A. Whiting Paper Co., Menasha
Corporation, Green Bay Packaging Inc., International Paper Company, Leicht
Transfer & Storage Company, Neenah Foundry Company, Newpage Wisconsin System
Inc., The Procter & Gamble Paper Products Company, Wisconsin Public Service
Corp., the Cities of Appleton, De Pere, and Green Bay, Brown County, Green Bay
Metropolitan Sewerage District, Heart of the Valley Metropolitan Sewerage
District, Neenah-Menasha Sewerage Commission, WTM I Company, U.S. Paper Mills
Corporation, Georgia-Pacific Consumer Products LP, Georgia-Pacific LLC, Fort
James Operating Company, CBC Coating Company, Inc., Fort James Corporation,
Kimberly-Clark Corporation, LaFarge North America Inc., Union Pacific Railroad
Company, and the United States Army Corps of Engineers. As the result of certain
third-party claims, federal agencies other than the Corps of Engineers are also
involved in this allocation.

     On December 16, 2009, the Court granted motions for summary judgment in the
Company's favor on the contribution claims brought by NCR and Appleton Papers
Inc. in the Whiting litigation. The Court held that neither NCR nor Appleton
Papers may seek contribution from the Company or other recyclers under CERCLA.
The Court made no ruling as to any other allocation, the liability of NCR or
Appleton Papers to the Company for costs the Company has incurred, or the
Company's liability to the governments or Trustees. NCR and Appleton Papers have
stated their intention to appeal, but an appeal is not yet timely because the
Court has not entered a final judgment.

     As described above, the Company has counterclaims against NCR and Appleton
Papers Inc. to recover the costs the Company has incurred and may later incur
and the damages the Company has paid and may later pay in connection with the
Fox River site. Other defendants have similar claims. On January 20, 2010, the
Court issued an order inviting submissions from the parties as to whether the
counterclaims of the defendants, as well as certain additional claims, could be
resolved without a trial within approximately six months. If the Court is
convinced that the case may be resolvable on that basis, it will establish a
briefing schedule and attempt to decide the remaining issues on the Company's
claims before an appeal will become timely.

     On December 16, 2009, the Court approved a de minimis party consent decree
("Consent Decree") settlement among the United States, the State of Wisconsin,
and eleven defendants resolving those defendants' liability for this site. The
eleven settling defendants are: George A.

                                       4

<PAGE>

Whiting Paper Co.; Green Bay Metropolitan Sewerage District; Green Bay
Packaging, Inc.; Heart of the Valley Metropolitan Sewerage District;
International Paper Co.; LaFarge North America Inc.; Leicht Transfer and Storage
Co.; Neenah Foundry Co.; Procter & Gamble Paper Products Co.; Union Pacific
Railroad Co.; and Wisconsin Public Service Corp. (collectively, the "Eleven
Settling Defendants"). The Consent Decree reflects the conclusion by the United
States and the State of Wisconsin that each of the Eleven Settling Defendants
qualifies for treatment as a de minimis party under CERCLA. The Consent Decree
requires the Settling Defendants to make a collective payment of $1,875,000.
Those Eleven Settling Defendants have moved for judgment in the Whiting
Litigation based upon the protections in the Consent Decree. In addition, the
Governments on September 25, 2009, lodged a separate consent decree in the same
case that would, if entered, resolve the liabilities of the City of DePere.
Under that consent decree, the City of DePere would pay $210,000 to resolve its
liability at the Site. That Consent Decree has not yet been approved.

     The Company contends that the Company is not jointly and severally liable
for costs or damages arising from the presence of PCBs downstream of OU1. In
addition, the Company contends that NCR or other sources of NCR(R)-brand
carbonless copy paper that the Company's Neenah Mill recycled bear most of the
responsibility for costs and damages arising from the presence of PCBs in OU1.
Other parties disagree. The Company's counterclaims for a re-allocation of costs
it has incurred or may incur remain pending.

OTHER INFORMATION

     Based in part upon the Court's December 16, 2009, ruling and the Court's
January 10, 2010 order in the Whiting Litigation, the Company continues to
believe that a volumetric allocation would not constitute an equitable
allocation of the potential liability for the contamination at the Fox River.
The Company contends that other factors, such as the location of contamination,
the location of discharge, and a party's role in causing discharge, must be
considered in order for the allocation to be equitable.

     The Wisconsin DNR and FWS have each published studies, the latter in draft
form, estimating the amount of PCBs discharged by each identified PRP's facility
to the lower Fox River and the Bay of Green Bay. These reports estimate the
Neenah Facility's share of the volumetric discharge to be as high as 27%. The
Company does not believe the volumetric estimates used in these studies are
accurate because (a) the studies themselves disclose that they are not accurate
and (b) the volumetric estimates contained in the studies are based on
assumptions that are unsupported by existing data on the Site. The Company
believes that the Neenah Facility's volumetric contribution is significantly
lower than the estimates set forth in these studies.

     The Company previously entered into interim cost-sharing agreements with
four of the other PRPs, which provided for those PRPs to share certain costs
relating to scientific studies of PCBs discharged at the Site ("Interim Cost
Sharing Agreements"). These interim cost-sharing agreements do not establish the
final allocation of remediation costs incurred at the Site. Based upon the
Company's evaluation of the Court's December 16, 2009, ruling in the Whiting
Litigation as well as the volume, nature and location of the various discharges
of PCBs at the Site and the relationship of those discharges to identified
contamination, the Company believes its allocable share of liability at the Site
is less than its share of costs under the Interim Cost Sharing Agreements.

                                       5

<PAGE>

     While the Amended OU1 Consent Decree provides a negotiated framework for
resolving both the Company's and WTM I's liability for the remediation of OU1,
it does not resolve the Company's exposure at the Site. The OU1 Consent Decree
does not address response costs necessary to remediate the remainder of the Site
and only addresses NRDs and claims for reimbursement of government expenses to a
limited extent. Because CERCLA imposes strict and often joint and several
liability, uncertainty persists regarding the Company's exposure with respect to
the remainder of the Fox River site. In addition, as mentioned previously, EPA
has issued a UAO to the Company and others calling for further work in OU2-5,
and Appleton Papers and NCR have commenced the Whiting Litigation that may
become more complicated and involve additional parties. The Company cannot
predict the ultimate outcome of the Whiting Litigation or any other litigation
or regulatory actions related to this matter.

RANGE OF REASONABLY POSSIBLE OUTCOMES

     The Company's analysis of the range of reasonably possible outcomes is
derived from all available information, including but not limited to official
documents such as RODs, discussions with the United States and other PRPs, as
well as legal counsel and engineering consultants. Based on the Company's
analysis of the current RODs and cost estimates for work to be performed at the
Site, it believes that it is reasonably possible that its liability associated
with the Fox River matter may exceed the aggregate amounts which the Company has
accrued for the Fox River matter by amounts that are insignificant or that could
range up to $265 million over a period that is currently undeterminable but that
could range beyond 15 years. The Company believes that the likelihood of an
outcome in the upper end of the monetary range is significantly less than other
possible outcomes within the range and that the possibility of an outcome in
excess of the upper end of the monetary range is remote. The summary judgment in
the Company's favor in the Whiting Litigation, if sustained on appeal, suggests
that outcomes in the upper end of the monetary range have become somewhat less
probable, while increases in cost estimates for some of the work may militate in
the opposite direction.

     All remedial work in OU-1 has been completed and the Company and WTM I are
in the process of decommissioning and performing the restoration of the staging
area from which the remediation activity occurred and completing all required
reports for the project. The Company believes that these activities can be
completed with the funds that remain in the OU1 Escrow Account.

2. ECUSTA ENVIRONMENTAL MATTERS

     Beginning in April 2003, government authorities, including the North
Carolina Department of Environment and Natural Resources ("NCDENR"), initiated
discussions with the Company and other parties regarding, among other
environmental issues, certain landfill closure liabilities associated with the
Company's former Ecusta mill and its properties (the "Ecusta Property"). The
discussions focused on NCDENR's desire to establish a plan and secure financial
resources to close three landfills located at the Ecusta Property and to address
other environmental matters at the facility. During the third quarter of 2003,
the discussions ended with NCDENR's conclusion to hold the Company responsible
for the closure of three landfills. Accordingly, in 2003 the Company established
reserves totaling approximately $7.6 million representing estimated landfill
closure costs. During 2009, the Company completed the closure

                                       6

<PAGE>

of the last of those three landfills (collectively, the "Landfill Closure and
Post-Closure Obligations").

     On January 25, 2008, the Company entered into a series of agreements with,
among others, Davidson River Village, LLC ("DRV")- the current owner of the
Ecusta Property pursuant to which the Company transferred potential liabilities
for certain environmental matters at the Ecusta Property to DRV (the "DRV
Transaction"). In connection with the DRV Transaction, DRV assumed, and
indemnified the Company for, liability arising from environmental matters and
conditions at the Ecusta Property with certain exceptions, including the
Landfill Closure and Post-Closure Obligations and investigation and remediation
(if necessary) of any pollutants that may have migrated from the Ecusta Property
to the Davidson and French Broad Rivers (the "River Areas"), which liabilities
were retained by the Company.

                                       7
<PAGE>

                                 SCHEDULE 5.1.12

                             CONSENTS AND APPROVALS

None.

                               Schedule 6.1.12 - 1

<PAGE>

                                 SCHEDULE 5.1.14

            MATERIAL PATENTS, TRADEMARKS, COPYRIGHTS, LICENSES, ETC.

                             P.H. GLATFELTER COMPANY
                    TRADEMARK APPLICATIONS AND REGISTRATIONS

MARCH 31, 2006

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
           BEYOND PAPER              P.H. Glatfelter Company                         PENDING
                                                                                     FILING DATE: 4/18/2005
                                                                                     SERIAL NUMBER: 76323579

           BEYOND PAPER              P.H. Glatfelter Company                         PENDING
                                                                                     FILING DATE: 10/26/2005
                                                                                     SERIAL NUMBER: 78741058

           BEYOND PAPER              P.H. Glatfelter Company                         REGISTERED
                                                                                     9/30/2003
                                                                                     REGISTRATION NUMBER: 2769893

             DIGIBOOK                P.H. Glatfelter Company                         REGISTERED
                                                                                     10/29/2002
                                                                                     REGISTRATION NUMBER: 2644324

                EPA                  P.H. Glatfelter Company                         REGISTERED
                                                                                     1/22/1991
                                                                                     REGISTRATION NUMBER: 1632345
</TABLE>

                               Schedule 6.1.14 - 1

<PAGE>

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
          EXHERE (DESIGN)            P.H. Glatfelter Company                         REGISTERED
         (EXHERE(R) LOGO)                                                            1/21/2003
                                                                                     REGISTRATION NUMBER: 2676873

              EXHERE                 P.H. Glatfelter Company                         REGISTERED
                                                                                     8/15/1972
                                                                                     REGISTRATION NUMBER: 0940978

           G (STYLIZED)              P.H. Glatfelter Company                         REGISTERED
           (G(R) LOGO)                                                               12/2/2003
                                                                                     REGISTRATION NUMBER: 2789388

           G (STYLIZED)              P.H. Glatfelter Company                         PENDING
           (G(R) LOGO)                                                               FILING DATE: 4/18/2005
                                                                                     SERIAL NUMBER: 78610795
</TABLE>

                               Schedule 6.1.14 - 2

<PAGE>

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
          GLATEX (DESIGN)            P.H. Glatfelter Co.                             REGISTERED
           (GLATEX LOGO)                                                             2/10/1959
                                                                                     REGISTRATION NUMBER: 073883

        G. COLORS ENVELOPE           P.H. Glatfelter Company                         FILING DATE: 10/15/2002
          PAPERS (DESIGN)                                                            SERIAL NUMBER: 76458308
 (G. COLORS ENVELOPE PAPERS LOGO)

             G COLORS                P.H. Glatfelter Company                         PENDING
                                                                                     FILING DATE: 1/13/2006
                                                                                     SERIAL NUMBER: 78791696

             G COLORS                P.H. Glatfelter Company                         PENDING
                                                                                     FILING DATE: 10/15/2002
                                                                                     SERIAL NUMBER: 76458309

         IMPACT BY DESIGN            P.H. Glatfelter Company                         PENDING
                                                                                     FILING DATE: 12/4/2002
                                                                                     SERIAL NUMBER: 76473260
</TABLE>

                               Schedule 6.1.14 - 3

<PAGE>

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
              AUTHORS                P.H. Glatfelter Company                         REGISTERED
                                                                                     9/12/1995
                                                                                     REGISTRATION NUMBER: 1917945

              EDITORS                P.H. Glatfelter Company                         REGISTERED
                                                                                     9/12/1995
                                                                                     REGISTRATION NUMBER: 1917932

             ECOLOTEXT               P.H. Glatfelter Company                         REGISTERED
                                                                                     4/11/2000
                                                                                     REGISTRATION NUMBER: 2339858

             ECOLOCOTE               P.H. Glatfelter Company                         REGISTERED
                                                                                     10/22/1996
                                                                                     REGISTRATION NUMBER: 20009392

            GLATFELTER               P.H. Glatfelter Company                         REGISTERED
                                                                                     12/23/2003
                                                                                     REGISTRATION NUMBER: 2796668

            GLATFELTER               P.H. Glatfelter Company                         REGISTERED
                                                                                     8/9/2005
                                                                                     REGISTRATION NUMBER: 2982538

            GLATFELTER               P.H. Glatfelter Company                         REGISTERED
                                                                                     8/17/2004
                                                                                     REGISTRATION NUMBER: 2873152
</TABLE>

                               Schedule 6.1.14 - 4

<PAGE>

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
            GLATFELTER               P.H. Glatfelter Company                         PENDING
                                                                                     FILING DATE: 4/2/2005
                                                                                     SERIAL NUMBER: 78600703

            RELEASE THE              P.H. Glatfelter Company                         REGISTERED
           POSSIBILITIES                                                             4/15/2003
                                                                                     REGISTRATION NUMBER: 2707827

             STABILITE               P.H. Glatfelter Company                         REGISTERED
                                                                                     6/17/1997
                                                                                     REGISTRATION NUMBER: 2071914

              NATURES                P.H. Glatfelter Company                         REGISTERED
                                                                                     7/16/1996
                                                                                     REGISTRATION NUMBER: 1986600

         PIXELLE (DESIGN)            P.H. Glatfelter Company                         REGISTERED
        (PIXELLE(R) LOGO)                                                            10/23/2001
                                                                                     REGISTRATION NUMBER: 2500009

           RESTORE COTE              P.H. Glatfelter Company                         REGISTERED
                                                                                     4/24/1973
                                                                                     REGISTRATION NUMBER: 957786
</TABLE>

                               Schedule 6.1.14 - 5

<PAGE>

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
              SUPPLE                 P.H. Glatfelter Company                         REGISTERED
                                                                                     7/16/1996
                                                                                     REGISTRATION NUMBER: 1986601

           THOR (DESIGN)             P.H. Glatfelter Company                         REGISTERED
            (THOR LOGO)                                                              9/16/1924
                                                                                     REGISTRATION NUMBER: 189282

             OLD FORGE               P.H. GLATFELTER CO.                             REGISTERED
                                                                                     1/5/1960
                                                                                     REGISTRATION NUMBER: 620914

       OLD FORGE VELVETLITH          P.H. GLATFELTER COMPANY                         REGISTERED
                                                                                     4/8/1969
                                                                                     REGISTRATION NUMBER: 967920

            VELVETLITH               P.H. GLATFELTER COMPANY                         REGISTERED
                                                                                     8/8/1989
                                                                                     REGISTRATION NUMBER: 1550967

            WHITE ROSE               P.H. GLATFELTER CO.                             REGISTERED
                                                                                     3/11/1958
                                                                                     REGISTRATION NUMBER: 659360
</TABLE>

                               Schedule 6.1.14 - 6

<PAGE>

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
         WRITERS (DESIGN)            P.H. Glatfelter Co.                             REGISTERED
          (WRITERS LOGO)                                                             8/1/1978
                                                                                     REGISTRATION NUMBER: 1098137

              DYNAPOD                Papierfabrik Schoeller & Hoesch GmbH & Co. KG   PENDING
                                                                                     FILING DATE: 3/4/2004
                                                                                     SERIAL NUMBER: 78378327

              DYNAPOD                Papierfabrik Schoeller & Hoesch GmbH & Co. KG   PENDING
                                                                                     FILING DATE: 3/4/2004
                                                                                     SERIAL NUMBER: 78378319

              DYNAPOD                Papierfabrik Schoeller & Hoesch GmbH & Co. KG   PENDING
                                                                                     FILING DATE: 3/4/2004
                                                                                     SERIAL NUMBER: 78378349

             DYNAPORE                Papierfabrik Schoeller & Hoesch GmbH & Co. KG   PENDING
                                                                                     FILING DATE: 3/3/2004
                                                                                     SERIAL NUMBER: 79012481

             DYNASEAL                Papierfabrik Schoeller & Hoesch GmbH & Co. KG   REGISTERED
                                                                                     7/26/2005
                                                                                     REGISTRATION NUMBER: 2977129
</TABLE>

                               Schedule 6.1.14 - 7

<PAGE>

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
      (SCHOELLER HOESCH LOGO)        Papierfabrik Schoeller & Hoesch GmbH & Co. KG   PENDING
                                                                                     FILING DATE: 4/8/2002
                                                                                     SERIAL NUMBER: 76392274

      (SCHOELLER HOESCH LOGO)        Papierfabrik Schoeller & Hoesch GmbH & Co. KG   REGISTERED
                                                                                     1/17/1995
                                                                                     REGISTRATION NUMBER: 1873454

              GEPALUX                Papierfabrik Schoeller & Hoesch GmbH & Co. KG   REGISTERED
                                                                                     12/17/1985
                                                                                     REGISTRATION NUMBER: 1375853

           G (STYLIZED)              P.H. Glatfelter Company                         CTM COMMUNITY TRADEMARKS
           (G(R) LOGO)                                                               REGISTERED
                                                                                     4/9/2002
                                                                                     REGISTRATION NUMBER: 2648129
</TABLE>

                               Schedule 6.1.14 - 8

<PAGE>

<TABLE>
<CAPTION>
                                                                                               SERIAL NO.
               MARK                                      OWNER                              REGISTRATION NO.
               ----                  ---------------------------------------------   -----------------------------
<S>                                  <C>                                             <C>
            GLATFELTER               P.H. Glatfelter Company                         CTM COMMUNITY TRADEMARKS
                                                                                     REGISTERED
                                                                                     4/9/2002
                                                                                     REGISTRATION NUMBER: 2648095

           BEYOND PAPER              P.H. Glatfelter Company                         CTM COMMUNITY TRADEMARKS
                                                                                     REGISTERED
                                                                                     4/9/2002
                                                                                     REGISTRATION NUMBER: 2647881
</TABLE>

                               Schedule 6.1.14 - 9
<PAGE>

<TABLE>
<CAPTION>
COUNTRY         REFERENCE#   TYPE     FILED      SERIAL #      ISSUED      PATENT #     STATUS
-------         ----------   ----   ---------   ----------   ----------   ---------   ---------
<S>             <C>          <C>    <C>         <C>          <C>          <C>         <C>
                Next Action Due (Original)

FORMULATION FOR ACHIEVEMENT OF OIL AND GREASE RESISTANCE WITHOUT THE USE OF FLUOROCHEMICALS AND
METHOD OF MAKING SAME

UNITED STATES   GLT-103USP   NEW    8/15/2000   60/225,285                            EXPIRED

HEATSEALABLE FILTER MATERIAL

UNITED STATES   GLT-105US    NEW    7/11/2003   10/518,109                            PENDING
                3/16/2006    RESPONSE TO OA

INK JET PRINTABLE HEAT TRANSFER PAPER

UNITED STATES   GLT-102US    NEW    4/20/2001   02/839,793    10/4/2005   6,951,671   ISSUED
                4/4/2005     ARCHIVE FILE

METHOD FOR MAKING COATED PAPER AND A PAPER COATING COMPOSITION

UNITED STATES   GLT-105US    NEW    8/28/1992   07/938,338    3/29/1994   5,295,335   ISSUED
                9/29/2005    3RD MAINT FEE DUE

NOVEL UNIVERSAL INK JET RECORDING SYSTEM

UNITED STATES   GLT-104US    NEW    3/27/2001   09/818,058                            ABANDONED
UNITED STATES   GLT-104US1   CDN    5/24/2004   10/524,725                            PENDING
                8/28/2006    STATUS CHECK

PROCESS FOR PREPARATION OF HIGH OPACITY PRECIPITATED CALCIUM CARBONATE BY REACTING SODIUM
CARBONATE WITH CALCIUM HYDROXIDE

UNITED STATES   GLT-100US    NEW    5/15/1993   09/075,851   11/15/1994   5,364,810   ISSUED
                5/15/2006    3RD MAINT FEE DUE

QUICK DRYING, WATERFAST INKJET RECORDING MEDIA

UNITED STATES   GLT-101US    FCA     2/3/2004   10/770,753                            PENDING
                3/28/2006    RESPONSE TO OA

                                    END OF REPORT            TOTAL ITEMS SELECTED =           0
</TABLE>

                              Schedule 6.1.14 - 10
<PAGE>

                               Overview SH patents
                                 status 12/2005

<TABLE>
<CAPTION>
                                                                      GRANTED
NO     BU            TITLE             INVENTOR        PATENT NO       SINCE        COUNTRY
--  -------- --------------------- --------------- ---------------- ---------- -----------------
<S> <C>      <C>                   <C>             <C>              <C>        <C>
1   L&OP/L   hsf Teebeutelpapier   G. Heinrich     EP 0380127       15.12.93   Osterreich
             u. Verfahren zu                                                   Belgien
             seiner Herstellung                                                Schweiz/
             (base patent for                                                  Lichtenstein
             heat sealable, 2                                                  Deutschland
             layer tea bags)                                                   Spanien
                                                                               Frankreich
                                                                               England
                                                                               Italien
                                                                               Niederlande
                                                   US 5,173,154     12/22/1992 USA
2   L&OP/L   Filtermaterial (heat  G. Heinrich     EP 0656224       8.10.97    Osterreich
             sealable tea bag      R. Kochel                                   Belgien
             paper with meltblown                                              Schweiz/
             technology)                                                       Lichtenstein
                                                                               Deutschland
                                                                               Danemark
                                                                               Spanien
                                                                               Frankreich
                                                                               England
                                                                               Italien
                                                                               Niederlande
                                                   US 5,601,716     2/11/1997  USA
                                                   CA 2,136,563     11/13/1998 Canada
3   FS       Verfahren zur         J. Voronecky    EP 881326,       17.10.01   Osterreich
             Herstellung von       J. Kuhn         DE 597 04 964.5             Schweiz/
             gebleichten                                                       Lichtenstein
             Spezialzellstoffen                                                Deutschland
             (bleaching process                                                Danemark
             for fibres)                                                       Spanien
                                                                               Frankreich
                                                                               England
                                                                               Italien
                                                                               Portugal
                                                                               Schweden
4   L&OP/L   hsf Filtermaterial    Timmerman       Prufungsphase               Australien
             mit biologisch        Trigat          in Europa                   Asia
             abbaubaren            Schulz-Schlitte (EP 98924249),
             Polymeren,            S. Schroft      DE 19719607,                USA
             (biodegradable tea    Grangladen      US 09/423,572,
             bag paper, patent     G. Heinrich     Asien (Korea,               EP
             with Bayer, chance                    China,
             for granting <10%,                    Hongkong),                  EP, annual fees
             hearing for                           Australien                  Germany
             biodegradable with                    erteilt
             lubricants and
             stretched fibre
             positive)

<CAPTION>
            NO. OF YEAR /                 ANNIVERSARY
  PAYMENT    ANNUAL FEES    STATUS/DATE       DATE
---------- -------------- --------------- -----------
<C>        <C>            <C>             <C>
31.1.01    12/1439 DM     canc., 18.10.01
31.1.01    12/1021 DM     canc., 18.10.01
31.1.01    12/1226 DM     canc., 18.10.01

31.1.04    15/1338 (euro) valid           2005
31.1.04    15/761 (euro)  valid           2005
31.1.04    15/686 (euro)  valid           2005
26.1.04    15/806 (euro)  valid           2005
31.1.04    15/1034 (euro) valid           2005
26.1.03    8/1505 (euro)  canc., 18.10.01
6/22/2000  8/2468 (euro)  valid           2004
18.5.00    7/773 DM       canc., 18.5.01
18.5.00    7/593 DM       canc., 16.2.01
18.5.00    7/988 DM       canc., 18.5.01

31.5.03    10/535 (euro)  valid           2004
                          canc., 11.4.97
18.5.00    7/594 DM       canc., 18.5.01
18.5.03    10/410 (euro)  valid           2204
18.5.03    10/532 (euro)  valid           2004
18.5.01    8/349 (euro)   canc., 2000
18.5.00    3/973 DM       canc., 18.5.01
8/11/2000  4/1170 (euro)  valid           2004
11/24/2003 10/399 (euro)  valid           2004
30.5.01    5/583 (euro)   canc., 30.5.02
           nicht          nicht benannt
           benannt
31.5.03    7/300 (euro)   valid           2004
30.5.01    5/583 (euro)   canc., 30.5.02
30.5.03    7/317 (euro)   valid           2005
30.5.03    7/364 (euro)   valid           2005
30.5.03    7/376 (euro)   valid           2005
30.5.01    5/583 (euro)   canc., 30.5.02
30.5.01    5/583 (euro)   canc., 30.5.02
30.5.01    5/583 (euro)   canc., 30.5.02
4/30/2004  7/362          valid, granted  2005
examination reports, questionable         2004-2007
outcome, orientation to European decis
examination reports, questionable         2004-2006
outcome
examination reports, questionable         2004-2006
outcome
4/30/2004  7/943 (euro)   examination     2004
12/31/2003 7/331          examination     2004
</TABLE>

                              Schedule 6.1.14 - 11
<PAGE>

                               Overview SH patents
                                 status 12/2005

<TABLE>
<CAPTION>
                                                                      GRANTED
NO     BU            TITLE             INVENTOR        PATENT NO       SINCE        COUNTRY
--  -------- --------------------- --------------- ---------------- ---------- -----------------
<S> <C>      <C>                   <C>             <C>              <C>        <C>
5   L&OP/O   Neue ultraleichte     H. Blum         DE 19756871.8               Deutschland
             Harzschichttrager u.  J. Voronecky
             Verfahren zur
             Herstellung
             derselben.  (light
             weight overlay
             paper; 12.5 gsm)
6   L&OP/L   Filtermaterial mit    G. Grauar       EP 0943731;      13.6.01    Osterreich
             einstellbarer         Y. La Brech     DE-598 00 843.8             Belgien
             Benutzbarkeit u.                                                  Deutschland
             Verfahren zu seiner                                               Spanien
             Herstallung (binder                                               Frankreich
             containing non                                                    England
             heatsealable tea bag)                                             Irland
                                                                               Niederlands
                                                                               Schweden
                                                                               Italien
                                                   US 09/170,99     8/12/2002  USA
7   S&H SARL einlagiges,           J.M. Brink      EP Anmeldung                Europa
             beidseitig            M. Buchsel      01102686.1                  (Staalenbenennung
             abrassives Vlies u.   J.M. Dallenbach (1126065) DE                UK France,
             Verfahren dessen                      10005454.4                  Germany, Belgium,
             Herstellung                                                       Netherlands,
             (Meltblown-non                                                    __________)
             woven, abrasive)
                                                                               Deutschland

8   L&OP/L   biologisch abbaubare  M. Buchsel      DE 19931401                 Deutschland
             u. kompostierbare     G. Heinrich
             Filtemateriallen      M. Kau(beta)en                              examination fee
             (biodegradable        S. Schroft
             filter paper with
             softener)
9   L&OP/O   Papier mit            H. Blum         DE 19939060                 Deutschland
             eingelagerten,        D. Evers
             ummantelten Partikel
             u. Verfahren zu
             dessen Herstellung
             (loaded overlay
             paper with melamin
             coated corundum)
10  L&OP/L   Filtermaterial mit    H. Salow        DE 1109947.0                Deutschland
             Aromatisierung u.     B. Herhut       EP 01129130.9
             Armoaschulz                           JP 2002-035519              Europa
             (aromatisied tea                                                  Japan
             bag, cyclodextrine)
                                                   US 6,565,710     20.05.03   USA

<CAPTION>
            NO. OF YEAR /                 ANNIVERSARY
  PAYMENT    ANNUAL FEES    STATUS/DATE       DATE
---------- -------------- --------------- -----------
<C>        <C>            <C>             <C>
31.12.04   8/391 (euro)   examination     2004

20.8.04    7.407 (euro)   valid           2005
20.8.04    7.818 (euro)   valid           2005
31.8.05    8.390 (euro)   valid           2005
20.8.04    7.320 (euro)   valid           2005
20.8.04    7.364 (euro)   valid           2005
20.8.04    7.364 (euro)   valid           2005
20.8.04    7.425 (euro)   valid           2005
20.8.04    3.527 (euro)   valid           2005
cancelled                 valid           2005
20.3.94    7.320 (euro)   valid           2005
28.1.03    4/1170 (euro)  valid           2007
28.2.04    4/530 (euro)   examination     2005

28.2.04    5/205 (euro)   erteilt         2005
                          18.08.06
14.10.04                  erteilt
                          18.08.06
31.7.03    5/206 (euro)   no request for  2004
                          examination
                                          2004

21.8.03    5/206 (euro)   examination     8/31/2804
28.11.04                  official reply to German
                          Patent Office
15.10.04                  comment of official letter

31.05.03   4/188          examination     2004

31.12.03   3/380          examination     2004
no request for                            2004-2008
examination
                          valid           2005
</TABLE>

                              Schedule 6.1.14 - 12
<PAGE>

                               Overview SH patents
                                 status 12/2005

<TABLE>
<CAPTION>
                                                                      GRANTED
NO     BU            TITLE             INVENTOR        PATENT NO       SINCE        COUNTRY
--  -------- --------------------- --------------- ---------------- ---------- -----------------
<S> <C>      <C>                   <C>             <C>              <C>        <C>
11  L&OP/L   Filtermaterial sowle  H. Dannhauser   DE 10043217      erteilt    Deutschland
             Filterbeutel u.       G. Grauer                        02.06.
             Filtertuten aus
             diesem Material
             (printed filter
             paper)
12  L&OP/O   Gasfiltemateriallen   H. Blum         DE 10059835                 Deutschland
             mit Donor-u./od.      M. Kau(beta)en  EP 01122765.9               Europa
             Akzeptor-funkllon     H. Salow
             (innerliner with      S. Sick
             cyclodextrines)
13  L&OP/L   Filtermaterial mit    H. Dannhauser   DE 10062031      18.11.02   Deutschland
             verbesserten          D. Meger        EP 1215134.07               Europa
             Infusions-            H. Salow        US 10/021,778               USA
             eigenschaften                         CA 2,356,018
             (filter paper with                    JP 263,003/2002             Japan
             superabsorber fibres)
                                                   Korea                       Korea
                                                   200-0046997
14  L&OP/O   Flammenfestes Vlies,  H. Blum         DE 10104277.9    18.11.02   Deutschland
             das                   S. Sick         EP 02000887.5               Europa
             Celluloseregenerat-
             fasernumfasst, (flame
             retardant paper for
             cryogenic
             application)
15  NPD      Selbstreinigende,     M. Buchsel      DE 10106494.2               Deutschland
             antiadhasive Papiere  M. Kau(beta)en  EP 02 003 342.9             Europa
             (Lotus)               S Schroft       US 10/073,096    28.01.04   USA
16  L&OP/L   Filtrationspapiere    H. Dannhauser   DE 10134020.8               Deutschland
             mit Ionenaustauscher  H. Salow/TITK
             (filtration paper
             with ALCERU fibres)
17  L&OP/O   Computer Based        H. Blum         EP 01116149.2
             System and Method     M. Knapperst-
             for Trading Tangible  busch,
             Goods via an          D. Parini,
             Electronic            Ruckenbrod
             Communication System  S. Sick
             (trading software)
18  L&OP/O   Lichtbestandiges      H. Blum         DE 10163344                 Deutschland
             Overlaypapier         R. Hansmann     EP 02 028 521.9             Europa
             (UV-stabilised        S. Sick         US 2003/01411027 31.07.03   USA
             overlay paper)
19  NPD      hel(beta)siegelfahige M. Buchsel      DE 10206924.7               Deutschland
             Filtermateriallen     H. Heinrich
             (heat sealable,       M. Kau(beta)en  JP 569,305/2003             Japan
             biodegradable filter                  RUS 200 312 8071            Ru(beta)land
             paper with                            Indo W0020031858            Indonesien
             lubricants)                           CN 03800075;                China
                                                   1533343
                                                   ZA 2003/7300                Sudafrika
                                                   US 10/472,086               USA
                                                   CD 2,435,578                Kanada

<CAPTION>
            NO. OF YEAR /                 ANNIVERSARY
  PAYMENT    ANNUAL FEES    STATUS/DATE       DATE
---------- -------------- --------------- -----------
<C>        <C>            <C>             <C>
9/21/2004  5/212 (euro)   valid, 02.08.05 2004

12/31/2003 3/531          examination     2004
9/30/2003  3/531          examination     2004

12/31/2004 5/206 (euro)   valid           2004
12/31/2003 3/531          examination     2004
                          examination     2004
12/12/2003 3/398          examination     2004
no request for                            2004-2006
examination
no request for                            2006-2008
examination
31.01.04   4/188b (euro)  valid           2005
12/8/2003  3/531          examination     2005
                          granted

2/28/2004  4/221 (euro)   examination     2005
2/28/2004  3/531          examination     2005
1/28/2004  1630           valid           2008
31.7.03    3/186 (euro)   examination     2004

31.7.03    3/530 (euro)   examination     2004

31.12.04   4/186          examination     2004
31.12.04   8/531          examination     2004
2003       1/170          valid           2007

28.04.04   3/186          valid           2005
20.10.04   Amisbescheid vom 7.04
2003       6850           no request for examination
2003       3900           no request for examination
2003       2200           no request for examination
2003       3650           request for examination

2003       2820           examination
2003       3660           no request for examination
2003       2730           examination
</TABLE>

                              Schedule 6.1.14 - 13
<PAGE>

                               Overview SH patents
                                 status 12/2005

<TABLE>
<CAPTION>
                                                                      GRANTED
NO     BU            TITLE             INVENTOR        PATENT NO       SINCE        COUNTRY
--  -------- --------------------- --------------- ---------------- ---------- -----------------
<S> <C>      <C>                   <C>             <C>              <C>        <C>
                                                   EP 03 742 544.4             Europa
                                                   IN PCT/EP                   Indien
                                                   03/01672
20  L&OP/L   hel(beta)siegelfahige G. Heinrich     DE 10206926.3               Deutschland
             Filtermaterial        D. Meger
             (biodegradable        M. Kau(beta)en  CD 2,435,577                Kanada
             filter paper with                     AUS 200 321 5589            Australien
             stretched fibres)                     RUS 2003 12 8089            Ru(beta)land
                                                   JP                          Japan
                                                   569,308/2003;
                                                   517,829/2005
                                                   CN 03 800 077.6             China
                                                   ZA 2003/7299                Sudafrika
                                                   US 10/472,089               USA
                                                   EP 03742545.1               Europa
                                                   EP 1526911                  Europa
                                                   Indo                        Indonesien
                                                   PCT/EP03/01673
                                                   IN                          Indien
                                                   01248/DELNP/2003
21  L&OP/L   hel(beta)siegelfahige Y. Le Brech     DE 10231403      5.02.04    Deutschland
             Filtermaterial (heat  G. Heinrich     EP 03015105.4               Europa
             sealable tea bag      M. Kau(beta)en  US 10/618,109               USA
             with coupling agent)  S. Kuntz        ZA 2003/5329     28.04.04   Sudafrika
                                   M. Meger        JP 273,626/2003;            Japan
                                                   JP 154,764/2004
                                                   AUS 2003213314              Australien
                                                   CD 2 435 030                Kanada
22  L&OP/L   Filtermaterial (tea                   DE 103 42 416.4             Deutschland
             bag + outlast fibre)                  EP 1 514 587                Europa
                                                   ZA 2004/7269     29.06.05   South Africa
                                                   RUS 2004/127218             Russia
                                                   AUS 2004/210563             Australia
                                                   US 10/937,045               USA
                                                   CD 2,481,395                Canada

<CAPTION>
            NO. OF YEAR /                 ANNIVERSARY
  PAYMENT    ANNUAL FEES    STATUS/DATE       DATE
---------- -------------- --------------- -----------
<C>        <C>            <C>             <C>

2003       3310           no request for examination

28.02.04   3/186          valid
20.10.04                  Amisbescheid vom 1.7.04
2003       8150           no request for examination
2003       2900           examination
2003       4800           examination
2003       6600           no request for examination

2003       3640           request for examination
2003       2890           examination
2003       4920           examination
2003       4140           examination

2003       2100           no request for examination

2003       2430           no request for examination

                          valid           2005
2003       2800           examination

2003       4830
2003       6430           no request for examination

2003       3500           examination
2003       3100           examination
9/13/2003  1550
                          filed 08.09.04
11/23/2004
11/18/2004
11/23/2004

11/23/2004
</TABLE>

                              Schedule 6.1.14 - 14
<PAGE>

                 GULTIGE MARKEN SCHOELLER & HOESCH GMBH & CO. KG

STAND: 04/03/2004

<TABLE>
<CAPTION>
                          ANMELDE-/                             ANMELDE-                          VERLANGERUNG
LAND                     MARKEN- NR.         MARKENNAME           TAG            KLASSE(N)          FALLIG AM        SONSTIGES
----------------------- ------------ ------------------------- ---------- ----------------------- ------------ --------------------
<S>                     <C>          <C>                       <C>        <C>                     <C>          <C>
DEUTSCHE MARKEN
DE                      303 62 061.7 DYNAPORE                  11/27/2003 05, 16, 24              11/30/2013
DE                      302 61 044.8 DYNAMET                   12/13/2002 05, 16                  12/31/2012
DE                      302 61 042.1 DYNAPAD                   12/13/2002 16, 24, 30              12/31/2012
DE                      300 48 137.3 GEPALUX HoloGloss         6/28/2000  16                      6/30/2010
DE                      396 65 362.1 TIPA                      12/19/1996 16, 34                  12/31/2008
DE                      2 076 841    DYNAPOR                   11/2/1993  16                      11/30/2013
DE                      2 015 108    Microsorb                 4/9/1992   24                      4/30/2012
DE                      2 010 341    SCHOELLER HOESCH          10/9/1991  01, 03, 16, 17          10/31/2011
                                     SPEZIAL-PAPIERE (farbig)
DE                      2 002 045    MICAMID                   5/7/1991   16                      5/30/2011
DE                      1 180 319    ELKO (Bldtz., farbig)     7/17/1990  09, 17                  7/31/2010
DE                      1 161 968    rikaprint PERMANENCE      12/22/1989 16                      12/31/2009
DE                      1 037 335    RIKAPRINT                 3/20/1981  16                      3/31/2011
DE                      1 024 038    GEFOLUX                   8/28/1981  17                      8/31/2011
DE                      1 023 687    GEPALUX                   8/28/1981  16                      8/31/2011
DE                      636 126      Napakon                   6/16/1952  16, 17, 34              9/30/2012
DE                      615 357      Tuko                      8/30/1950  17, 34                  8/31/2010
EU-MARKEN
EU                      003 247 986  DYNAPOD                   7/1/2003   16, 24, 30              7/1/2013     Im Anmeldeverfahren
EU                      003 216 462  DYNAPOD                   6/6/2003   16, 24, 30              6/6/2013     Im Anmeldeverfahren
EU                      003 169 687  DYNACLEAR                 5/16/2003  03, 05, 16, 24          5/16/2013    Im Anmeldeverfahren
EU                      002 714 848  DYNAGREEN                 5/27/2002  03, 05, 16, 24          5/27/2012    Widerspr. aufgrund
                                                                                                               Gynatren
</TABLE>

                              Schedule 6.1.14 - 15

<PAGE>

<TABLE>
<S>                     <C>          <C>                       <C>        <C>                     <C>          <C>
EU                      002 712 776  DYNAPLANT                 5/27/2002  03, 05, 16, 24          5/27/2012
EU                      002 647 147  SCHOELLER HOESCH A        4/8/2002   01, 03, 05, 16, 17, 24  4/8/2012
                                     GLATFELTER Company
EU                      002 511 640  DYNACRIMP                 12/20/2001 16                      12/20/2011
EU                      002 363 539  DYNASEAL                  9/4/2001   16                      9/4/2011
EU                      002 001 006  GEPALUX HoloGloss         12/15/2000 16                      12/15/2010
IR-MARKEN
AT, AU, BX, CH, CN, CZ,              DYNAPORE                  3/3/2004   5, 16, 24                            Im Anmeldeverfahren
DK, ES, PR, GB, IE, IT,
JP, PT, RU, SG, TR, UA,
US
AT, BX, CH, CN, ES, FR, 635 878      GEPALUX                   4/12/1995  16                      4/12/2015
IT, PL
AT, BX, CH, CZ, ES, FR, 591 178      SCHOELLER HOESCH          3/27/1992  01, 03, 05, 18, 17, 19, 3/27/2012
HR, HU, IT, MK, SI, SK,              SPEZIAL-PAPIERE (farbig)             34
YU
AT, BX, CH, CZ, ES, FR, 579 349      MICAMID                   1/9/1992   16                      1/9/2012
HU, IT
DE                      177 420      Byblos                    5/31/1954  16                      5/31/2014
AT, BX, CH, CZ, DE, ES, 159 305      Napakon                   5/15/1953  16, 17, 34              5/15/2013
FR, HR, HU, IT, SI, YU
DE                      161 401      Tuko                      5/7/1952   16, 34                  5/7/2012
AUSLANDSMARKEN
AUSTRALIEN              921028       DYNAGREEN                 7/25/2002  16, 24                  7/25/2012
CHINA                                SCHOELLER HOESCH A                   16
                                     GLATFELTER Company
                        3305384      DYNAPLANT                 9/12/2002  24                                   Im Anmeldeverfahren
</TABLE>

                              Schedule 6.1.14 - 16

<PAGE>

<TABLE>
<S>                     <C>          <C>                       <C>        <C>                     <C>          <C>
                        200306914    DYNAPLANT                 9/11/2003  16                                   Im Anmeldeverfahren
GROA(beta)RITANNIEN     2019728      GEPALUX                   5/5/1995   24                      5/5/2005
                        1507051      MICROSORB                 7/18/1992  16                      4/9/2009
                        1478722      MICAMID                   10/17/1991 17                      5/7/2009
                        596 400      Tuko                      2/28/1951  34                      10/28/2010
FINNLAND                90087        POV                       11/4/1982  16                      9/5/2004
IRLAND                  146498       MICAMID                   10/21/1998 16, 24,30               5/7/2008
JAPAN                   55439/2003   DYNAPOD                   7/7/2003   16, 24,30                            Fallengelassen auf
                                                                                                               Anweisung F. Werner,
                                                                                                               04/08/04
                        1,692,565    DYNAGREEN                 9/13/2002  16                      7/28/2013
                        4,692,584    DYNAPLANT                 9/13/2002  16, 24                  7/18/2013
                        3024922      Microsorb                 8/6/1992   24                      2/28/2005
                        3155894      SCHOELLER HOESCH          4/9/1992   16                      5/31/2006
                                     SPEZIAL-PAPIERE (farbig)
                        3100168      SCHOELLER HOESCH          4/9/1992   17                      11/30/2005
                                     SPEZIAL-PAPIERE (farbig)
                        3058426      SCHOELLER HOESCH          4/9/1992   3                       6/30/2005
                                     SPEZIAL-PAPIERE (farbig)
KANADA                               DYNAPORE                             5, 16, 24                            Im Anmeldeverfahren
                        1,147,541    DYNAGREEN                 7/25/2002  16, 24                               Im Anmeldeverfahren
                        1,147,540    DYNAPLANT                 7/25/2002  16, 24                               Im Anmeldeverfahren
                        1,136,790    SCHOELLER HOESCH A        4/9/2002                                        Im Anmeldeverfahren
                                     GLATFELTER Company
                        285343       POV                       11/14/1982 16                                   11/25/2013
NEUSEELAND              661447       DYNAGREEN                 7/28/2002  16, 24                  5/27/2009
SUDAFRIKA               2002/10937-8 DYNAGREEN                 7/28/2002  16, 24                               Im Anmeldeverfahren
U.S.A.                  78/378,319   DYNAPOD                   3/4/2004   16                                   Im Anmeldeverfahren
                        78/378,327   DYNAPOD                   3/4/2004   24                                   Im Anmeldeverfahren
                        78/378,349   DYNAPOD                   3/4/2004   30                                   Im Anmeldeverfahren
                        78/476,950   DYNASEAL                  12/19/2002 16                                   Im Anmeldeverfahren
</TABLE>

                              Schedule 6.1.14 - 17

<PAGE>

<TABLE>
<S>                     <C>          <C>                       <C>        <C>                     <C>          <C>
                        78/149,302   DYNAGREEN                 7/31/2002  16, 24                               Im Anmeldeverfahren
                        78/149,288   DYNAPLANT                 7/31/2002  16, 24                               Im Anmeldeverfahren
                        76/392,274   SCHOELLER HOESCH A        4/8/2002   1, 16, 17
                                     GLATFELTER Company
                        1,896,181    TUKO                      4/6/1994   16                      5/30/2005
                        1,873,454    SCHOELLER HOESCH          8/4/1992   1, 3, 16, 17, 21, 34    1/17/2005
                                     SPEZIAL-PAPIERE (farbig)
                        1,375,852    GEPALUX                   4/13/1985  14, 37                  12/17/2005
                        1,332,098    SCHOELLER & HOESCH (Logo) 9/10/1984  16, 17, 34              4/23/2005
                        1,307,376    POV                       3/28/1983  34                      11/27/2004
</TABLE>

                              Schedule 6.1.14 - 18

<PAGE>

                  MARKEN SCHOELLER & HOESCH S.A.S., FRANKREICH

<TABLE>
<S>                     <C>          <C>                       <C>        <C>                     <C>          <C>
EU-MARKEN
EU                      002 782 852  MICROSORB (fig.)          7/19/2002  24                      7/19/2012    SARL
IR-MARKEN
AT, BX, CH, ES, FR, HU, 589 146      Microsorb                 7/16/1992  24                      7/16/2012    S.A.S.
IT, PT
</TABLE>

                              Schedule 6.1.14 - 19
<PAGE>

                                 SCHEDULE 7.2.1

                             PERMITTED INDEBTEDNESS

                               Letters of Credit:

<TABLE>
<CAPTION>
                                                   BEGIN                               INTEREST   ANNUAL
          BENEFICIARY               BANK           DATE     MATURITY DATE   $ AMOUNT     RATE      COST
---------------------------- ------------------ ---------- -------------- ------------ -------- ----------
<S>                          <C>                <C>        <C>            <C>          <C>      <C>
Zurich American Insurance
Company                            M and T       4/30/2009    4/29/2010      50,000.00             750.00
                                                                                (USD)   1.50%       (USD)
Royal Bank of Scotland         Bank of America   5/31/2009    5/31/2010    $  1,100,00             11,000
                                                                                (GBP)      1%       (GBP)
ABN Amro Bank                  Bank of America   5/12/2009    5/12/2011    $   660,000              6,600
                                                                                (GBP)      1%       (GBP)
</TABLE>

                               Other Indebtedness:

<TABLE>
<CAPTION>
                                  BORROWER/        BEGIN                               INTEREST   ANNUAL
            LENDER                 ISSUER          DATE     MATURITY DATE    AMOUNT      RATE      COST
---------------------------- ------------------ ---------- -------------- ------------ -------- ----------
<S>                          <C>                <C>        <C>            <C>          <C>      <C>
GPW Virginia Timberlands LLC    PH Glatfelter    1/15/2008    1/15/2027      5,781,000            491,385
                                                                               (USD)     8.5%       (USD)
GPW Virginia Timberlands LLC    PH Glatfelter    1/15/2008    1/15/2027      3,377,000            287,045
                                                                               (USD)     8.5%       (USD)
SunTrust Bank                   GPW Virginia
                               Timberlands LLC   1/13/2008    1/14/2013     36,694,500
                                                                               (USD)   Variable   Variable
Deutsche Bank                    Glatfelter
                              Gernsbach GmbH &             Cancellable by    5,000,000
                                   Co. KG        5/05/2009     lender         (Euros)  Variable   Variable
Royal Bank of Scotland        Glatfelter Lydney            Cancellable by
                                    Ltd.        06/20/2006     lender        1,100,000
                                                                               (GBP)   Variable   Variable
Deutsche Bank                    Glatfelter                Cancellable by    4,000,000
                              Falkenhagen GmbH  02/15/2010     lender         (Euros)  Variable   Variable
HSBC                         NewTech Pulp, Inc.            Cancellable by    8,000,000
                                                  9/8/2009     lender          (USD
                                                                           equivalent) Variable   Variable
CIBC                             Glatfelter                Cancellable by
                                Gatineau Inc.   02/12/2010     lender        3,000,000
                                                                               (CAD)   Variable   Variable
</TABLE>

                                 Schedule 7.2.1 - 1
<PAGE>

<TABLE>
<CAPTION>
                                                   BEGIN                               INTEREST   ANNUAL
          BENEFICIARY            BOOK-RUNNER       DATE     MATURITY DATE   $ AMOUNT     RATE      COST
---------------------------- ------------------ ---------- -------------- ------------ -------- ----------
<S>                          <C>                <C>        <C>            <C>          <C>      <C>
Bond Holders                  Credit Suisse       2/5/2010     5/1/2016    100,000,000  7.125%   7,125,000
                                                                               (USD)                (USD)
Bond Holders                  Credit Suisse       5/1/2006     5/1/2016    200,000,000          14,250,000
                                                                               (USD)    7.125%      (USD)
</TABLE>

                                        2
<PAGE>

                                 SCHEDULE 7.2.4

                              EXISTING INVESTMENTS

                                     PART I

See Schedule 5.1.2

                                    PART II

                               Intercompany Loans:

<TABLE>
<CAPTION>
LENDER (FUNCTIONAL                       BORROWER                      CURRENCY
CURRENCY)                         (FUNCTIONAL CURRENCY)                 OF LOAN     AMOUNT     EXCHANGE RATE   USD EQUIVALENT
---------------------   --------------------------------------------   --------   ----------   -------------   ---------------
<S>                     <C>                                            <C>        <C>          <C>             <C>
PHG Tea Leaves (USD)    Glatfelter Verwaltungsgesellschaft mbH (EUR)   USD         8,150,000       1.0000         8,150,000
PHG Tea Leaves (USD)    Glatfelter Lydney Ltd. (GBP)                   USD         4,500,000       1.0000         4,500,000
PHG Tea Leaves (USD)    Glatfelter Canada, Inc.                        USD        56,200,824       1.0000        56,200,824
P.H. Glatfelter (USD)   Glatfelter Gatineau Ltee.                      USD         2,952,756       1.0000         2,952,756
PHG Tea Leaves (USD)    Glatfelter Verwaltungsgesellschaft mbH (EUR)   EUR        46,414,134       1.3472        62,529,121
PHG Tea Leaves (USD)    Glatfelter Gernsbach GmbH & Co. KG             EUR        56,789,929       1.3472        76,507,392
PHG Tea Leaves (USD)    Glatfelter Falkenhagen Holding GmbH            EUR        16,308,937       1.3472        21,971,400
PHG Tea Leaves (USD)    Glatfelter Lydney Ltd. (GBP)                   GBP        27,500,000       1.5151        41,665,250
PHG Tea Leaves (USD)    Glatfelter Lydney Ltd. (GBP)                   GBP         2,641,994       1.5151         4,002,885
P.H. Glatfelter (USD)   NewTech Pulp Inc.                              PHP        85,000,000      45.5240         1,867,147
</TABLE>

                               Schedule 7.2.4 - 1
<PAGE>

                                 EXHIBIT 1.1(A)

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

     This ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Assignment") is dated as of
the Effective Date set forth below and is entered into by and between [Insert
name of Assignor] (the "Assignor") and [Insert name of Assignee] (the
"Assignee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the
"Credit Agreement"), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto
are hereby agreed to and incorporated herein by reference and made a part of
this Assignment as if set forth herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below, the interest in and to all of
the Assignor's rights and obligations under the Credit Agreement and any other
documents or instruments delivered pursuant thereto that represents the amount
and percentage interest identified below of all of the Assignor's outstanding
rights and obligations under the respective facilities identified below
(including, to the extent included in any such facilities, letters of credit and
swingline loans) (the "Assigned Interest"). Such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment,
without representation or warranty by the Assignor.

1. Assignor:             ______________________________

2. Assignee:             ______________________________ [and is an Affiliate]

3. Borrower(s):          P. H. GLATFELTER COMPANY, a Pennsylvania corporation,
                         and the other Borrowers now or hereafter party thereto

4. Administrative Agent: PNC BANK, NATIONAL ASSOCIATION, as the Administrative
                         Agent under the Credit Agreement

5. Credit Agreement:     The Credit Agreement dated as of April ___, 2010 among
                         P. H. GLATFELTER COMPANY, a Pennsylvania corporation,
                         and the other Borrowers now or hereafter party thereto,
                         PNC BANK, NATIONAL ASSOCIATION, as Administrative
                         Agent, the Guarantors now or hereafter party thereto
                         and the Lenders now or hereafter party thereto

<PAGE>

6. Assigned Interest:

<TABLE>
<CAPTION>
                          Aggregate
                          Amount of                                      Percentage
                    Commitment/Loans of           Amount of              Assigned of
                    such Facility for all     Commitment/Loans of    Commitment/Loans of
Facility Assigned          Lenders          such Facility Assigned    such Facility(1)
-----------------   ---------------------   ----------------------   -------------------
<S>                 <C>                     <C>                      <C>
 _____________(2)       $_____________          $_____________          _____________%
 _____________          $_____________          $_____________          _____________%
 _____________          $_____________          $_____________          _____________%
</TABLE>

Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT
AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER
THEREFOR.](3)

     The terms set forth in this Assignment are hereby agreed to:

                                        ASSIGNOR
                                        [NAME OF ASSIGNOR]

                                        By:
                                            ------------------------------------
                                            Title:

                                        ASSIGNEE
                                        [NAME OF ASSIGNEE]

                                        By:
                                            ------------------------------------
                                            Title:

Consented to and Accepted:

PNC BANK, NATIONAL ASSOCIATION, as
  Administrative Agent

By
   ----------------------------------
   Name:
   Title:

[Consented to:](4)

----------
(1)  Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans
     of all Lenders thereunder.

(2)  Fill in the appropriate terminology for the types of facilities under the
     Credit Agreement that are being assigned under this Assignment (e.g.
     "Revolving Credit Commitment"). The same percentage of each facility owned
     by the Assignor shall be assigned to the Assignee.

(3)  Assignor shall pay a fee of $3,500 to the Administrative Agent in
     connection with the Assignment.

(4)  To be added only if the consent of the Borrower is required by the terms of
     Section 10.11 of the Credit Agreement.

<PAGE>

Company, as Borrower Agent

By
   ----------------------------------
   Name:
   Title:

<PAGE>

                                                                         ANNEX 1

                  STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT
                            AND ASSUMPTION AGREEMENT

     1. Representations and Warranties.

     1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest
is free and clear of any lien, encumbrance or other adverse claim and (iii) it
has full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and to consummate the transactions contemplated hereby;
and (b) assumes no responsibility with respect to (i) any statements, warranties
or representations made in or in connection with any Loan Document, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Credit Agreement or any other instrument or document delivered pursuant
thereto, other than this Assignment (herein collectively the "Loan Documents"),
or any collateral thereunder, (iii) the financial condition of the Borrower, any
of its Subsidiaries or Affiliates or any other Person obligated in respect of
any Loan Document or (iv) the performance or observance by the Borrower, any of
its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

     1.2. Assignee. The Assignee (a) represents and warrants that (i) it has
full power and authority, and has taken all action necessary, to execute and
deliver this Assignment and to consummate the transactions contemplated hereby
and to become a Lender under the Credit Agreement, (ii) it meets all
requirements, if any, of an eligible assignee under the Credit Agreement, (iii)
from and after the Effective Date, it shall be bound by the provisions of the
Credit Agreement and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit
Agreement, together with copies of the most recent financial statements
delivered pursuant to Section 7.3.2 thereof, as applicable, and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into this Assignment and to purchase the Assigned
Interest on the basis of which it has made such analysis and decision, and (v)
if Assignee is not incorporated or organized under the laws of the United States
of America or any State thereof, attached to the Assignment is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on the Administrative Agent, the Assignor or
any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Loan Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms of the
Loan Documents are required to be performed by it as a Lender.

     2. Payments. From and after the Effective Date, the Administrative Agent
shall make all payments in respect of the Assigned Interest (including payments
of principal, interest, fees and other amounts) to the Assignor for amounts
which have accrued to but excluding the Effective Date and to the Assignee for
amounts which have accrued from and after the Effective Date.(5)

----------
(5)  Administrative Agent should consider whether this method conforms to its
     systems. In some circumstances, the following alternative language may be
     appropriate: "From and after the Effective Date, the Administrative Agent
     shall make all payments in respect of the Assigned Interest (including
     payments of principal, interest, fees and other amounts) to the Assignee
     whether such amounts have accrued prior to or on or after the Effective
     Date. The Assignor and the Assignee shall make all appropriate adjustments
     in payments by the Administrative Agent for periods prior to the Effective
     Date or with respect to the making of this assignment directly between
     themselves."

<PAGE>

     3. General Provisions. This Assignment shall be binding upon, and inure to
the benefit of, the parties hereto and their respective successors and assigns.
This Assignment may be executed in any number of counterparts, which together
shall constitute one instrument. Delivery of an executed counterpart of a
signature page of this Assignment by telecopy shall be effective as delivery of
a manually executed counterpart of this Assignment. This Assignment shall be
governed by, and construed in accordance with, the laws of the State of New
York.

                                       2
<PAGE>

                                 EXHIBIT 1.1(B)

                                     FORM OF
                    BORROWER JOINDER AND ASSUMPTION AGREEMENT

     THIS BORROWER JOINDER AND ASSUMPTION AGREEMENT is made as of ____________,
20__, by _____________________________________________________, a
_____________________ [corporation/partnership/limited liability company] (the
"New Borrower").

                                   Background

     Reference is made to (i) the Credit Agreement, dated as of April ___, 2010,
as the same may be amended, restated, supplemented or modified from time to time
(the "Credit Agreement"), by and among P. H. GLATFELTER COMPANY, a Pennsylvania
corporation, the other Borrowers now or hereafter party thereto (collectively,
the "Borrowers"), each of the Guarantors now or hereafter party thereto, the
Lenders now or hereafter party thereto (the "Lenders") and PNC BANK, NATIONAL
ASSOCIATION, in its capacity as Administrative Agent for the Lenders (in such
capacity, the "Administrative Agent"), (ii) the Continuing Agreement of Guaranty
and Suretyship (Subsidiary), dated as of April ___, 2010, as the same may be
amended, restated, supplemented or modified from time to time (the "Guaranty"),
made by the Guarantors in favor of the Administrative Agent, and (iii) the other
Loan Documents referred to in the Credit Agreement, as the same may be amended,
restated, supplemented or modified from time to time (collectively, the "Loan
Documents").

                                    Agreement

     Capitalized terms defined in the Credit Agreement are used herein as
defined therein.

     New Borrower hereby becomes a Borrower under the terms of the Credit
Agreement and in consideration of the value of the synergistic and other
benefits received by New Borrower as a result of being or becoming affiliated
with the Borrowers and the Guarantors, New Borrower hereby agrees that effective
as of the date hereof [subject to the limitations set forth in Section 10.18 of
the Credit Agreement (Nature of Foreign Borrower Obligations) ](1) it hereby is,
and shall be deemed to be, and assumes the obligations of, a "Loan Party" and a
"Borrower", jointly and severally, under the Credit Agreement and the Notes, and
a Loan Party or Borrower, as the case may be, under each of the other Loan
Documents to which the Loan Parties or Borrowers are a party; and, New Borrower
hereby agrees that from the date hereof and so long as any Loan or any
Commitment of any Lender shall remain outstanding and until the payment in full
of the Loans and the Notes, the expiration of all Letters of Credit, and the
performance of all other obligations of the Loan Parties under the Loan
Documents, New Borrower shall perform, comply with, and be subject to and bound
by each of the terms and provisions of the Credit Agreement and each of the
other Loan Documents, jointly and severally, with the existing parties thereto.
Without limiting the generality of the foregoing, New Borrower hereby represents
and warrants that (i) each of the representations and warranties set forth in
Section 5 of the Credit

----------
(1)  To be included for each New Borrower that is a Foreign Borrower

<PAGE>

Agreement applicable to a Loan Party is true and correct as to New Borrower on
and as of the date hereof and (ii) New Borrower has heretofore received a true
and correct copy of the Credit Agreement and each of the other Loan Documents
(including any modifications thereof or supplements or waivers thereto) in
effect on the date hereof.

     New Borrower hereby makes, affirms, and ratifies in favor of the Lenders
and the Administrative Agent, the Credit Agreement and each of the other Loan
Documents executed and delivered by the Borrowers to the Administrative Agent
and any of the Lenders.

     New Borrower is simultaneously delivering to the Administrative Agent the
documents, together with this Borrower Joinder and Assumption Agreement,
required under Section 7.1.10.

     In furtherance of the foregoing, New Borrower shall execute and deliver or
cause to be executed and delivered at any time and from time to time such
further instruments and documents and do or cause to be done such further acts
as are reasonably necessary in the reasonable opinion of Administrative Agent to
carry out more effectively the provisions and purposes of this Borrower Joinder
and Assumption Agreement and the other Loan Documents.

     New Borrower acknowledges and agrees that a telecopy transmission to the
Administrative Agent or any Lender of signature pages hereof purporting to be
signed on behalf of New Borrower shall constitute effective and binding
execution and delivery hereof by New Borrower.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

                                      -2-

<PAGE>

      [SIGNATURE PAGE 1 OF 1 OF BORROWER JOINDER AND ASSUMPTION AGREEMENT]

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the New
Borrower has duly executed this Borrower Joinder and Assumption Agreement and
delivered the same to the Administrative Agent for the benefit of the Lenders,
as of the date and year first above written with the intention that this
Borrower Joinder and Assumption Agreement constitute a sealed instrument.

ATTEST:
                                        ----------------------------------------

                                        By:                               (SEAL)
                                           -------------------------------
Name:                                   Name:
      -------------------------------         ----------------------------------
Title:                                  Title:
       ------------------------------          ---------------------------------

Acknowledged and accepted:

PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------
<PAGE>

                                EXHIBIT 1.1(G)(1)

                                     FORM OF
                   GUARANTOR JOINDER AND ASSUMPTION AGREEMENT

     THIS GUARANTOR JOINDER AND ASSUMPTION AGREEMENT is made as of ____________,
20__, by _____________________________________________________, a
_____________________ [corporation/partnership/limited liability company] (the
"New Guarantor").

                                   Background

     Reference is made to (i) the Credit Agreement, dated as of April __, 2010,
as the same may be amended, restated, supplemented or modified from time to time
(the "Credit Agreement"), by and among P. H. GLATFELTER COMPANY, a Pennsylvania
corporation, the other Borrowers now or hereafter party thereto (collectively,
the "Borrowers"), each of the Guarantors now or hereafter party thereto, the
Lenders now or hereafter party thereto (the "Lenders") and PNC BANK, NATIONAL
ASSOCIATION, in its capacity as Administrative Agent for the Lenders (in such
capacity, the "Administrative Agent"), (ii) the Continuing Agreement of Guaranty
and Suretyship (Subsidiary), dated as of April ___, 2010, as the same may be
amended, restated, supplemented or modified from time to time (the "Guaranty"),
made by Guarantors in favor of the Administrative Agent, and (iii) the other
Loan Documents referred to in the Credit Agreement, as the same may be amended,
restated, supplemented or modified from time to time (collectively, the "Loan
Documents").

                                    Agreement

     Capitalized terms defined in the Credit Agreement are used herein as
defined therein.

     New Guarantor hereby becomes a Guarantor under the terms of the Credit
Agreement and in consideration of the value of the synergistic and other
benefits received by New Guarantor as a result of being or becoming affiliated
with the Borrower and the Guarantors, New Guarantor hereby agrees that effective
as of the date hereof [subject to the limitations set forth in Section 19 of the
Continuing Agreement of Guaranty and Suretyship, Obligations of Foreign
Guarantors,](1) it hereby is, and shall be deemed to be, and assumes the
obligations of, a "Loan Party" and a "Guarantor", jointly and severally, under
the Credit Agreement, a "Guarantor," jointly and severally with the existing
Guarantors under the Guaranty, and a Loan Party or Guarantor, as the case may
be, under each of the other Loan Documents to which the Loan Parties or
Guarantors are a party; and, New Guarantor hereby agrees that from the date
hereof and so long as any Loan or any Commitment of any Lender shall remain
outstanding and until the payment in full of the Loans and the Notes, the
expiration of all Letters of Credit, and the performance of all other
obligations of the Loan Parties under the Loan Documents, New Guarantor shall
perform, comply with, and be subject to and bound by each of the terms and
provisions of the Credit Agreement, Guaranty and each of the other Loan
Documents, jointly and severally, with the existing parties thereto. Without
limiting the generality of the foregoing,

----------
(1)  To be included for each New Guarantor that is a Foreign Borrower

<PAGE>

New Guarantor hereby represents and warrants that (i) each of the
representations and warranties set forth in Section 5 of the Credit Agreement
applicable to a Loan Party is true and correct as to New Guarantor on and as of
the date hereof and (ii) New Guarantor has heretofore received a true and
correct copy of the Credit Agreement, Guaranty and each of the other Loan
Documents (including any modifications thereof or supplements or waivers
thereto) in effect on the date hereof.

     New Guarantor hereby makes, affirms, and ratifies in favor of the Lenders
and the Administrative Agent, the Credit Agreement, Guaranty and each of the
other Loan Documents given by the Guarantors to the Administrative Agent and any
of the Lenders.

     New Guarantor is simultaneously delivering to the Administrative Agent the
documents, together with this Guarantor Joinder and Assumption Agreement,
required under Section 7.1.10.

     In furtherance of the foregoing, New Guarantor shall execute and deliver or
cause to be executed and delivered at any time and from time to time such
further instruments and documents and do or cause to be done such further acts
as may be reasonably necessary in the reasonable opinion of Administrative Agent
to carry out more effectively the provisions and purposes of this Guarantor
Joinder and Assumption Agreement and the other Loan Documents.

     New Guarantor acknowledges and agrees that a telecopy transmission to the
Administrative Agent or any Lender of signature pages hereof purporting to be
signed on behalf of New Guarantor shall constitute effective and binding
execution and delivery hereof by New Guarantor.

                   [BALANCE OF PAGE INTENTIONALLY LEFT BLANK]

                                      -2-

<PAGE>

      [SIGNATURE PAGE 1 OF 1 OF GUARANTOR JOINDER AND ASSUMPTION AGREEMENT]

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the New
Guarantor has duly executed this Guarantor Joinder and Assumption Agreement and
delivered the same to the Administrative Agent for the benefit of the Lenders,
as of the date and year first above written with the intention that this
Guarantor Joinder and Assumption Agreement constitute a sealed instrument.

ATTEST:
                                        ----------------------------------------

                                        By:                               (SEAL)
                                            ------------------------------
Name:                                   Name:
     --------------------------------         ----------------------------------
Title:                                  Title:
      -------------------------------          ---------------------------------

Acknowledged and accepted:

PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent

By:
    ---------------------------------
Name:
      -------------------------------
Title:
       ------------------------------
<PAGE>

                                EXHIBIT 1.1(G)(2)

                                     FORM OF
                 CONTINUING AGREEMENT OF GUARANTY AND SURETYSHIP

     This Continuing Agreement of Guaranty and Suretyship (the "Guaranty"),
dated as of this ___ day of April, 2010, is jointly and severally given by each
of the undersigned and each of the other Persons which become Guarantors
hereunder from time to time (each a "Guarantor" and collectively the
"Guarantors") in favor of PNC BANK, NATIONAL ASSOCIATION, as Administrative
Agent for the Lenders (the "Administrative Agent") in connection with that
Credit Agreement, dated as of April __, 2010, by and among P. H. GLATFELTER
COMPANY, a Pennsylvania corporation, the other Borrowers now or hereafter party
thereto (collectively, the "Borrowers"), the Guarantors now or hereafter party
thereto, the Administrative Agent, and the Lenders now or hereafter party
thereto (the "Lenders") (as amended, restated, modified, or supplemented from
time to time hereafter, the "Credit Agreement"). Capitalized terms not otherwise
defined herein shall have the respective meanings ascribed to them by the Credit
Agreement and the rules of construction set forth in Section 1.2 of the Credit
Agreement shall apply to this Guaranty.

     1. Guaranteed Obligations. To induce the Administrative Agent and the
Lenders to make loans and grant other financial accommodations to the Borrowers
under the Credit Agreement, each Guarantor hereby jointly and severally (subject
to Section 18, if applicable) unconditionally, and irrevocably, guaranties to
the Administrative Agent, each Lender and any provider of a Lender-Provided
Interest Rate Hedge; and becomes surety, as though it was a primary obligor for,
the full and punctual payment and performance when due (whether on demand, at
stated maturity, by acceleration, or otherwise and including any amounts which
would become due but for the operation of an automatic stay under the federal
bankruptcy code of the United States or any similar laws of any country or
jurisdiction) of all Obligations, and all extensions, modifications,
substitutions, amendments or renewals thereof, whether such Obligations are
direct or indirect, secured or unsecured, joint or several, absolute or
contingent, due or to become due, whether for payment or performance, now
existing or hereafter arising (and including Obligations arising or accruing
after the commencement of any bankruptcy, insolvency, reorganization, or similar
proceeding with respect to the Borrower or any Guarantor or which would have
arisen or accrued but for the commencement of such proceeding, even if the claim
for such Obligation is not enforceable or allowable in such proceeding, and
including all Obligations arising from any extensions of credit under or in
connection with the Loan Documents from time to time, regardless whether any
such Obligations are in excess of the amount committed under or contemplated by
the Loan Documents or are made in circumstances in which any condition to
extension of credit is not satisfied) (all such Obligations are referred to,
collectively, as the "Guaranteed Obligations" and each as a "Guaranteed
Obligation"). Without limitation of the foregoing, any of the Guaranteed
Obligations shall be and remain Guaranteed Obligations entitled to the benefit
of this Guaranty if the Administrative Agent or any of the Lenders (or any one
or more assignees or transferees thereof) from time to time assign or otherwise
transfer all or any portion of their respective rights and obligations under the
Loan Documents, or any other Guaranteed Obligations, to any other Person, in
accordance with the terms of the Credit Agreement. In furtherance of the
foregoing, each Guarantor jointly and severally (subject to Section 18, if
applicable) agrees as follows.
<PAGE>

     2. Guaranty. Each Guarantor hereby promises to pay and perform all such
Guaranteed Obligations immediately upon demand of the Administrative Agent and
the Lenders or any one or more of them at maturity or upon an Event of Default.
All payments made hereunder shall be made by each Guarantor in immediately
available funds in United States Dollars and shall be made without setoff,
counterclaim, withholding, or other deduction of any nature, except as may
otherwise be required by Law.

     3. Obligations Absolute. The Guaranteed Obligations of the Guarantors
hereunder shall not be discharged or impaired or otherwise diminished by the
failure, default, omission, or delay, willful or otherwise, by any Lender, the
Administrative Agent, or any Borrower or any other obligor on any of the
Guaranteed Obligations, or by any other act or thing or omission or delay to do
any other act or thing which would vary the risk of any Guarantor or would
otherwise operate as a discharge of any Guarantor as a matter of law or equity.
Each of the Guarantors agrees that the Guaranteed Obligations will be paid and
performed strictly in accordance with the terms of the Loan Documents. Without
limiting the generality of the foregoing, each Guarantor hereby consents to, at
any time and from time to time, and the joint and several (subject to Section
18, if applicable) Guaranteed Obligations of each Guarantor hereunder shall not
be diminished, terminated, or otherwise similarly affected by any of the
following:

     (a) Any lack of genuineness, legality, validity, enforceability or
allowability (in a bankruptcy, insolvency, reorganization or similar proceeding,
or otherwise), or any avoidance or subordination, in whole or in part, of any
Loan Document or any of the Guaranteed Obligations and to the fullest extent of
the law regardless of any law, regulation or order now or hereafter in effect in
any jurisdiction affecting any of the Guaranteed Obligations, any of the terms
of the Loan Documents, or any rights of the Administrative Agent or the Lenders
or any other Person with respect thereto;

     (b) Any increase, decrease, or change in the amount, nature, type or
purpose of any of, or any release, surrender, exchange, compromise or settlement
of, any of the Guaranteed Obligations (whether or not contemplated by the Loan
Documents as presently constituted); any change in the time, manner, method, or
place of payment or performance of, or in any other term of, any of the
Guaranteed Obligations; any execution or delivery of any additional Loan
Documents; or any amendment, modification or supplement to, or refinancing or
refunding of, any Loan Document or any of the Guaranteed Obligations;

     (c) Any failure to assert any breach of or default under any Loan Document
or any of the Guaranteed Obligations; any extensions of credit in excess of the
amount committed under or contemplated by the Loan Documents, or in
circumstances in which any condition to such extensions of credit has not been
satisfied; any other exercise or non-exercise, or any other failure, omission,
breach, default, delay, or wrongful action in connection with any exercise or
non-exercise, of any right or remedy against any Borrower or any other Person
under or in connection with any Loan Document or any of the Guaranteed
Obligations; any refusal of payment or performance of any of the Guaranteed
Obligations, whether or not with any reservation of rights against any
Guarantor; or any application of collections (including but not limited to
collections resulting from realization upon any direct or indirect security for
the

                                      -2-
<PAGE>

Guaranteed Obligations) to other obligations, if any, not entitled to the
benefits of this Guaranty, in preference to Guaranteed Obligations entitled to
the benefits of this Guaranty, or if any collections are applied to Guaranteed
Obligations, any application to particular Guaranteed Obligations;

     (d) Any taking, exchange, amendment, modification, waiver, supplement,
termination, subordination, compromise, release, surrender, loss, or impairment
of, or any failure to protect, perfect, or preserve the value of, or any
enforcement of, realization upon, or exercise of rights, or remedies under or in
connection with, or any failure, omission, breach, default, delay, or wrongful
action by the Administrative Agent or the Lenders, or any of them, or any other
Person in connection with the enforcement of, realization upon, or exercise of
rights or remedies under or in connection with, or, any other action or inaction
by any of the Administrative Agent or the Lenders, or any of them, or any other
Person in respect of, any direct or indirect security for any of the Guaranteed
Obligations. As used in this Guaranty, "direct or indirect security" for the
Guaranteed Obligations, and similar phrases, includes any collateral security,
guaranty, suretyship, letter of credit, capital maintenance agreement, put
option, subordination agreement, or other right or arrangement of any nature
providing direct or indirect assurance of payment or performance of any of the
Guaranteed Obligations, made by or on behalf of any Person;

     (e) Any merger, consolidation, liquidation, dissolution, winding-up,
charter revocation, or forfeiture, or other change in, restructuring or
termination of the corporate structure or existence of, any Borrower or any
other Person; any bankruptcy, insolvency, reorganization or similar proceeding
with respect to any Borrower or any other Person; or any action taken or
election made by the Administrative Agent or the Lenders, or any of them
(including but not limited to any election under Section 1111(b)(2) of the
United States Bankruptcy Code), any Borrower, or any other Person in connection
with any such proceeding;

     (f) Any defense, setoff, or counterclaim which may at any time be available
to or be asserted by any Borrower or any other Person with respect to any Loan
Document or any of the Guaranteed Obligations; or any discharge by operation of
law or release of any Borrower or any other Person from the performance or
observance of any Loan Document or any of the Guaranteed Obligations;

     (g) Any other event or circumstance, whether similar or dissimilar to the
foregoing, and whether known or unknown, which might otherwise constitute a
defense available to, or limit the liability of, any Guarantor, a guarantor or a
surety, excepting only full, strict, and indefeasible payment and performance of
the Guaranteed Obligations in full.

     Each Guarantor acknowledges, consents, and agrees that new Guarantors may
join in this Guaranty pursuant to Section 7.1.10 of the Credit Agreement and
each Guarantor affirms that its Guaranteed Obligations hereunder shall continue
undiminished.

     4. Waivers, etc. Subject to Section 18, if applicable, each of the
Guarantors hereby waives any defense to or limitation on its Guaranteed
Obligations under this Guaranty arising out of or based on any event or
circumstance referred to in Section 3 hereof. Without limitation and to the
fullest extent permitted by applicable law, each Guarantor waives each of the
following:

                                      -3-

<PAGE>

     (a) All notices, disclosures and demand of any nature which otherwise might
be required from time to time to preserve intact any rights against any
Guarantor, including the following: any notice of any event or circumstance
described in Section 3 hereof; any notice required by any law, regulation or
order now or hereafter in effect in any jurisdiction; any notice of nonpayment,
nonperformance, dishonor, or protest under any Loan Document or any of the
Guaranteed Obligations; any notice of the incurrence of any Guaranteed
Obligation; any notice of any default or any failure on the part of any Borrower
or any other Person to comply with any Loan Document or any of the Guaranteed
Obligations or any direct or indirect security for any of the Guaranteed
Obligations; and any notice of any information pertaining to the business,
operations, condition (financial or otherwise) or prospects of any Borrower or
any other Person;

     (b) Any right to any marshalling of assets, to the filing of any claim
against any Borrower or any other Person in the event of any bankruptcy,
insolvency, reorganization or similar proceeding, or to the exercise against any
Borrower or any other Person of any other right or remedy under or in connection
with any Loan Document or any of the Guaranteed Obligations or any direct or
indirect security for any of the Guaranteed Obligations; any requirement of
promptness or diligence on the part of the Administrative Agent or the Lenders,
or any of them, or any other Person; any requirement to exhaust any remedies
under or in connection with, or to mitigate the damages resulting from default
under, any Loan Document or any of the Guaranteed Obligations or any direct or
indirect security for any of the Guaranteed Obligations; any benefit of any
statute of limitations; and any requirement of acceptance of this Guaranty or
any other Loan Document, and any requirement that any Guarantor receive notice
of any such acceptance;

     (c) Any defense or other right arising by reason of any law now or
hereafter in effect in any jurisdiction pertaining to election of remedies
(including, but not limited to, anti-deficiency laws, "one action" laws or the
like), or by reason of any election of remedies or other action or inaction by
the Administrative Agent or the Lenders, or any of them (including but not
limited to commencement or completion of any judicial proceeding or nonjudicial
sale or other action in respect of collateral security for any of the Guaranteed
Obligations), which results in denial or impairment of the right of the
Administrative Agent or the Lenders, or any of them, to seek a deficiency
against any Borrower or any other Person or which otherwise discharges or
impairs any of the Guaranteed Obligations; and

     (d) Any and all defenses it may now or hereafter have based on principles
of suretyship, impairment of collateral, or the like.

     5. Reinstatement. This Guaranty is a continuing guaranty of the Guarantors
and shall remain in full force and effect notwithstanding that no Guaranteed
Obligations may be outstanding from time to time. Upon termination of all
Commitments, the expiration of all Letters of Credit and indefeasible payment in
full of all Guaranteed Obligations (other than non-assessed contingent
reimbursement obligations), this Guaranty shall terminate; provided, however,
that this Guaranty shall continue to be effective or be reinstated, as the case
may be, any time any payment of any of the Guaranteed Obligations is rescinded,
recouped, avoided, or must otherwise be returned or released by any Lender or
Administrative Agent upon or during the insolvency, bankruptcy, or
reorganization of, or any similar proceeding affecting, any

                                      -4-

<PAGE>

Borrower or for any other reason whatsoever, all as though such payment had not
been made and was due and owing.

     6. Subrogation. Each Guarantor waives and agrees it will not exercise any
rights against any Borrower or any other Guarantor arising in connection with,
or any collateral securing, the Guaranteed Obligations (including rights of
subrogation, contribution, and the like) until the Guaranteed Obligations have
been indefeasibly paid in full, and all Commitments have been terminated and all
Letters of Credit have expired. If, during the occurrence and continuance of an
Event of Default, any amount shall be paid to any Guarantor by or on behalf of
any Borrower or any other Guarantor by virtue of any right of subrogation,
contribution, or the like, such amount shall be deemed to have been paid to such
Guarantor for the benefit of, and shall be held in trust for the benefit of, the
Administrative Agent and the Lenders and shall forthwith be paid to the
Administrative Agent to be credited and applied upon the Guaranteed Obligations,
whether matured or unmatured, in accordance with the terms of the Credit
Agreement.

     7. No Stay. If any declaration of default or acceleration or other exercise
or condition to exercise of rights or remedies under or with respect to any
Guaranteed Obligation shall at any time be stayed, enjoined, or prevented for
any reason (including, but not limited to, stay or injunction resulting from the
pendency against any Borrower or any other Person of a bankruptcy, insolvency,
reorganization or similar proceeding), the Guarantors agree that, for the
purposes of this Guaranty and their Guaranteed Obligations hereunder, the
Guaranteed Obligations shall be deemed to have been declared in default or
accelerated, and such other exercise or conditions to exercise shall be deemed
to have been taken or met.

     8. Taxes. Each Guarantor agrees to comply with Section 4.8 of the Credit
Agreement as applied to such Guarantor and the Guaranteed Obligations.

     9. Notices. Each Guarantor agrees that all notices, statements, requests,
demands and other communications under this Guaranty shall be given to such
Guarantor at the address set forth on a Schedule to, or in a Guarantor Joinder
and Assumption Agreement given under, the Credit Agreement and in the manner
provided in Section 10.6 of the Credit Agreement. The Administrative Agent and
the Lenders may rely on any notice (whether or not made in a manner contemplated
by this Guaranty) purportedly made by or on behalf of a Guarantor, and the
Administrative Agent and the Lenders shall have no duty to verify the identity
or authority of the Person giving such notice.

     10. Counterparts; Telecopy Signatures. This Guaranty may be executed in any
number of counterparts, each of which, when so executed, shall be deemed an
original, but all such counterparts shall constitute but one and the same
instrument. Each Guarantor acknowledges and agrees that a telecopy transmission
to Administrative Agent or any Lender of signature pages hereof purporting to be
signed on behalf of any Guarantor shall constitute effective and binding
execution and delivery hereof by such Guarantor.

     11. Setoff, Default Payments by Borrowers.

                                      -5-

<PAGE>

     (a) Each Guarantor agrees to be bound by Section 8.2.3 of the Credit
Agreement as applied to such Guarantor.

     (b) Upon the occurrence and during the continuation of any default under
any Guaranteed Obligation, if any amount shall be paid to any Guarantor by or
for the account of any Borrower, such amount shall be held in trust for the
benefit of each Lender and Administrative Agent and shall forthwith be paid to
the Administrative Agent to be credited and applied to the Guaranteed
Obligations when due and payable.

     12. Construction. The section and other headings contained in this Guaranty
are for reference purposes only and shall not affect interpretation of this
Guaranty in any respect. This Guaranty has been fully negotiated between the
applicable parties, each party having the benefit of legal counsel, and
accordingly neither any doctrine of construction of guaranties or suretyships in
favor of the guarantor or surety, nor any doctrine of construction of
ambiguities in agreement or instruments against the party controlling the
drafting thereof, shall apply to this Guaranty.

     13. Successors and Assigns. This Guaranty shall be binding upon each
Guarantor, its successors and assigns, and shall inure to the benefit of and be
enforceable by the Administrative Agent and the Lenders, or any of them, and
their successors and permitted assigns provided, however, that no Guarantor may
assign or transfer any of its rights or obligations hereunder or any interest
herein and any such purported assignment or transfer shall be null and void.
Without limitation of the foregoing, the Administrative Agent and the Lenders,
or any of them (and any successive assignee or transferee), from time to time
may assign or otherwise transfer all or any portion of its rights or obligations
in accordance with the Loan Documents (including all or any portion of any
commitment to extend credit), or any other Guaranteed Obligations, to any other
person and such Guaranteed Obligations (including any Guaranteed Obligations
resulting from extension of credit by such other Person under or in connection
with the Loan Documents) shall be and remain Guaranteed Obligations entitled to
the benefit of this Guaranty, and to the extent of its interest in such
Guaranteed Obligations such other Person shall be vested with all the benefits
in respect thereof granted to the Administrative Agent and the Lenders in this
Guaranty or otherwise.

     14. Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

     (a) Governing Law. This Guaranty shall be governed by, construed, and
enforced in accordance with the laws of the State of New York.

     (b) Certain Waivers. Each Guarantor hereby irrevocably:

          (i) Certain Waivers; Submission to Jurisdiction. Each Guarantor hereby
irrevocably and unconditionally submits to the nonexclusive jurisdiction of any
New York state court or Federal court of the United States of America sitting in
New York City, and any appellate court thereof in any action or proceeding
arising out of or relating to this Guaranty or for recognition or enforcement of
any judgment, and irrevocably and unconditionally agrees that all claims in
respect of any such action or proceeding may be heard and determined in any such
New York State court, or, to the fullest extent permitted by law, in such
federal court, and

                                      -6-

<PAGE>

waives personal service of any and all process upon it and consents that all
such service of process be made by certified or registered mail directed to any
Borrower at the address provided for in the Credit Agreement and service so made
shall be deemed to be completed upon actual receipt thereof. Each Guarantor
waives any objection to jurisdiction and venue of any action instituted against
it as provided herein and agrees not to assert any defense based on lack of
jurisdiction or venue.

     Each Guarantor hereby appoints a process agent, P. H. Glatfelter Company,
as its agent to receive on behalf of such party and its respective property,
service of copies of the summons and complaint and any other process which may
be served in any action or proceeding (the "Process Agent"). Such service may be
made by mailing or delivering a copy of such process to any of the Guarantors in
care of the Process Agent at the Process Agent's address, and each of the
Guarantors hereby authorizes and directs the Process Agent to receive such
service on its behalf. Each Guarantor agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in other
jurisdictions (or any political subdivision thereof) by suit on the judgment or
in any other manner provided by law. Each Guarantor further agrees that it
shall, for so long as any Commitment, Letter of Credit or any Obligation of any
Loan Party to the Lenders remains outstanding, continue to retain Process Agent
for the purposes set forth in this Section 14. The Process Agent hereby accepts
the appointment of Process Agent by the Guarantors and agrees to act as Process
Agent on behalf of the Guarantors. The Process Agent has an address of, on the
date hereof, that of P. H. Glatfelter Company as reflected in the Credit
Agreement.

          (ii) WAIVES TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, OR
COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE CREDIT
AGREEMENT, OR ANY OTHER LOAN DOCUMENT TO THE FULLEST EXTENT PERMITTED BY LAW.

     15. Severability; Modification to Conform to Law.

     (a) It is the intention of the parties that this Guaranty be enforceable to
the fullest extent permissible under applicable law, but that the
unenforceability (or modification to conform to such law) of any provision or
provisions hereof shall not render unenforceable, or impair, the remainder
hereof. If any provision in this Guaranty shall be held invalid or unenforceable
in whole or in part in any jurisdiction, this Guaranty shall, as to such
jurisdiction, be ineffective to the extent of such invalidity or
unenforceability, without in any manner affecting the validity or enforceability
of such provision or provisions in any other jurisdiction or the remaining
provisions hereof in any jurisdiction.

     (b) Each Guarantor, and by its acceptance of this Guaranty, the
Administrative Agent and the Lenders, hereby confirm that it is the intention of
all such Persons that this Guaranty and the Guaranteed Obligations of each
Guarantor hereunder not constitute a fraudulent transfer or conveyance for
purposes of Bankruptcy Law (as hereinafter defined), the Uniform Fraudulent
Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign,
federal or state law to the extent applicable to this Guaranty and the
Obligations of each Guarantor hereunder. To effectuate the foregoing intention,
the Administrative Agent and the Lenders hereby

                                      -7-

<PAGE>

irrevocably agree that the Guaranteed Obligations of each Guarantor under this
Guaranty at any time shall be limited to the maximum amount as will result in
the Guaranteed Obligations of such Guarantor under this Guaranty not
constituting a fraudulent transfer or conveyance. For purposes hereof,
"BANKRUPTCY LAW" means any proceeding of the type referred to in the definition
of Insolvency Proceeding in the Credit Agreement or Title 11, U.S. Code, or any
similar foreign, federal or state law for the relief of debtors.

     (c) Each Guarantor hereby unconditionally and irrevocably agrees that in
the event any payment shall be required to be made to the Administrative Agent
or any Lender under this Guaranty or any other guaranty, such Guarantor will
contribute, to the maximum extent permitted by law, such amounts to each other
Guarantor and each other guarantor so as to maximize the aggregate amount paid
to the Lenders under or in respect of the Loan Documents.

     (d) Notwithstanding anything to the contrary in this Section or elsewhere
in this Guaranty, this Guaranty shall be presumptively valid and enforceable to
its full extent in accordance with its terms, as if this Section (and references
elsewhere in this Guaranty to enforceability to the fullest extent permitted by
law) were not a part of this Guaranty, and in any related litigation the burden
of proof shall be on the party asserting the invalidity or unenforceability of
any provision hereof or asserting any limitation on any Guarantor's Guaranteed
Obligations hereunder as to each element of such assertion.

     16. Additional Guarantors. At any time after the initial execution and
delivery of this Guaranty to the Administrative Agent and the Lenders,
additional Persons may become parties to this Guaranty and thereby acquire the
duties and rights of being Guarantors hereunder by executing and delivering to
the Administrative Agent and the Lenders a Guarantor Joinder and Assumption
Agreement pursuant to the Credit Agreement. No notice of the addition of any
Guarantor shall be required to be given to any pre-existing Guarantor and each
Guarantor hereby consents thereto.

     17. Joint and Several Obligations. Subject to Section 18 hereof, if
applicable, the Guaranteed Obligations of the Guarantors under this Agreement
are joint and several obligations of the Guarantors, and each Guarantor hereby
waives to the full extent permitted by law any defense it may otherwise have to
the payment and performance of the Obligations that its liability hereunder is
limited and not joint and several. Each Guarantor acknowledges and agrees that
the foregoing waivers and those set forth below serve as a material inducement
to the agreement of the Administrative Agent and the Lenders to make the Loans,
and that the Administrative Agent and the Lenders are relying on each specific
waiver and all such waivers in entering into this Guaranty. The undertakings of
each Guarantor hereunder secure the Guaranteed Obligations of itself and the
other Guarantors. The Administrative Agent and the Lenders, or any of them, may,
in their sole discretion, elect to enforce this Guaranty against any Guarantor
without any duty or responsibility to pursue any other Guarantor and such an
election by the Administrative Agent and the Lenders, or any of them, shall not
be a defense to any action the Administrative Agent and the Lenders, or any of
them, may elect to take against any Guarantor. Each of the Lenders and
Administrative Agent hereby reserve all right against each Guarantor.

                                      -8-

<PAGE>

     18. Obligations of Foreign Guarantors.

          (a) Notwithstanding the joint and several liability of the Guarantors
organized under the laws of a jurisdiction other than the United States (each, a
"FOREIGN GUARANTOR") under this Guaranty or any other Loan Document, and
notwithstanding any other provision of this Guaranty or any other Loan Document,
all Guaranteed Obligations of each Foreign Guarantor under this Guaranty and any
other Loan Documents on account of principal and interest under the Loans and
Reimbursement Obligations and Letters of Credit Borrowings shall be limited to
the principal amount advanced to such Foreign Guarantor or its Subsidiaries and
reimbursement of draws under Letters of Credit issued for the account of such
Foreign Guarantor or its Subsidiaries and, in each case, interest thereon. Each
Foreign Guarantor shall be liable only for its pro rata share of all fees and
expenses and other sums due hereunder (other than principal and interest on the
Loans) based upon the ratio of the sum of Loans outstanding to and Letters of
Credit issued for such Foreign Guarantor to the total amount of Loans
outstanding and Letters of Credit issued hereunder.

          (b) Any Foreign Guarantor may from time to time deliver a termination
notice to the Administrative Agent requesting that it no longer be a party to
this Guaranty. Such termination shall be effective two Business Days after
receipt by the Administrative Agent so long as all Guaranteed Obligations for
which such Foreign Guarantor is liable pursuant to Section 18(a) above have been
paid in full (including principal, interest and other amounts) and no Letter of
Credit issued for the account or benefit of such Foreign Guarantor is
outstanding; provided that, to the extent this Guaranty provides for the
survival of certain provisions upon termination hereof, such surviving
provisions shall survive a termination under this subsection with respect to any
such Foreign Guarantor.

     19. Receipt of Credit Agreement, Other Loan Documents, Benefits.

     (a) Each Guarantor hereby acknowledges that it has received a copy of the
Credit Agreement and the other Loan Documents and each Guarantor certifies that
the representations and warranties made therein with respect to such Guarantor
are true and correct. Further, each Guarantor acknowledges and agrees to
perform, comply with, and be bound by all of the provisions of the Credit
Agreement and the other Loan Documents.

     (b) Each Guarantor hereby acknowledges, represents, and warrants that it
receives synergistic benefits by virtue of its affiliation with Borrowers and
the other Guarantors and that it will receive direct and indirect benefits from
the financing arrangements contemplated by the Credit Agreement and that such
benefits, together with the rights of contribution and subrogation that may
arise in connection herewith are a reasonably equivalent exchange of value in
return for providing this Guaranty.

     20. Miscellaneous. (a) Generality of Certain Terms. As used in this
Guaranty, the terms "hereof," "herein," and terms of similar import refer to
this Guaranty as a whole and not to any particular term or provision; the term
"including," as used herein, is not a term of limitation and means "including
without limitation." (b) Amendments, Waivers. No amendment to or waiver of any
provision of this Guaranty, and no consent to any departure by any Guarantor
herefrom, shall in any event be effective unless in a writing manually signed by
or on behalf of

                                      -9-

<PAGE>

the Administrative Agent and the Lenders. Any such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given. No delay or failure of the Administrative Agent or the Lenders, or any of
them, in exercising any right or remedy under this Guaranty shall operate as a
waiver thereof; nor shall any single or partial exercise of any such right or
remedy preclude any other or further exercise thereof or the exercise of any
other right or remedy. The rights and remedies of the Administrative Agent and
the Lenders under this Guaranty are cumulative and not exclusive of any other
rights or remedies available hereunder, under any other agreement or instrument,
by law, or otherwise. (c) Telecommunications. Each Lender and Administrative
Agent shall be entitled to rely on the authority of any individual making any
facsimile or telephonic notice, request, or signature without the necessity of
receipt of any verification thereof. (d) Expenses. Subject to Section 18, if
applicable, each Guarantor unconditionally agrees to pay all costs and expenses,
including reasonable attorney's fees incurred by the Administrative Agent or any
of the Lenders in enforcing this Guaranty against any Guarantor and each
Guarantor shall pay and indemnify the Administrative Agent and any Lender from
and against any and all claims, demands, liabilities, damages, penalties,
interest, judgments, losses, costs, charges and expenses (including reasonable
fees, expenses and disbursements of counsel and allocated costs of internal
counsel, but excluding taxes) which the Administrative Agent or any Lender may
incur or be subject to as a consequence, direct or indirect, arising out of this
Guaranty or any document, instrument or agreement relating to any of the
Guaranteed Obligations, other than as a sole result of (i) the gross negligence
or willful misconduct of the Administrative Agent or the Lender as determined by
a final judgment of a court of competent jurisdiction or (ii) the wrongful
dishonor by the Administrative Agent or any Lender of a proper demand for
payment made under any Letter of Credit, except if such dishonor resulted from
any act or omission, whether rightful or wrongful, of any present or future de
jure or de facto government or governmental authority. (e) Prior Understandings.
This Guaranty and the Credit Agreement constitute the entire agreement of the
parties hereto with respect to the subject matter hereof and supersede any and
all other prior and contemporaneous understandings and agreements. (f) Survival.
All representations and warranties of the Guarantors made in connection with
this Guaranty shall survive, and shall not be waived by, the execution and
delivery of this Guaranty, any investigation by or knowledge of the
Administrative Agent and the Lenders, or any of them, any extension of credit,
or any other event or circumstance whatsoever.

                            [SIGNATURE PAGE FOLLOWS]

                                      -10-

<PAGE>

   [SIGNATURE PAGE 1 OF 1 OF CONTINUING AGREEMENT OF GUARANTY AND SURETYSHIP]

     IN WITNESS WHEREOF, each Guarantor intending to be legally bound, has
executed this Guaranty as of the date first above written with the intention
that this Guaranty shall constitute a sealed instrument.

                                        GLATFELTER PULP WOOD COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER HOLDINGS, LLC

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:
<PAGE>

                                 EXHIBIT 1.1(R)

                                     FORM OF
                              REVOLVING CREDIT NOTE

$______________

                                                        __________________, ____

     FOR VALUE RECEIVED, the undersigned, P. H. GLATFELTER COMPANY, a
Pennsylvania corporation, and the other Borrowers signatory hereto
(collectively, the "Borrowers"), jointly and severally, hereby promise to pay to
the order of _________________________________ (the "Lender"), the lesser of (i)
the principal sum of _____________________________________________________
(US$____________), and (ii) the aggregate unpaid principal balance of all
Revolving Credit Loans made by the Lender to the Borrowers pursuant to the
Credit Agreement, dated as of April __, 2010, among the Borrowers, the
Guarantors now or hereafter party thereto, the Lenders now or hereafter party
thereto, and PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent
(hereinafter referred to in such capacity as the "Administrative Agent") (as
amended, restated, modified, or supplemented from time to time, the "Credit
Agreement"), payable by 11:00 a.m. on the Expiration Date, together with
interest the unpaid principal balance hereof from time to time outstanding from
the date hereof at the rate or rates per annum specified by the Borrowers
pursuant to, or as otherwise provided in, the Credit Agreement.

     Interest on the unpaid principal balance hereof from time to time
outstanding from the date hereof will be payable at the times provided for in
the Credit Agreement. Upon the occurrence and during the continuation of an
Event of Default, the Borrowers shall pay interest on the entire principal
amount of the then outstanding Revolving Credit Loans evidenced by this
Revolving Credit Note and all other obligations due and payable to the Lender
pursuant to the Credit Agreement and the other Loan Documents at a rate per
annum as set forth in the Credit Agreement. Such interest will accrue before and
after any judgment has been entered.

     Subject to the provisions of the Credit Agreement, payments of both
principal and interest shall be made without setoff, counterclaim, or other
deduction of any nature at the office of the Administrative Agent located at PNC
Firstside Center, 500 First Avenue, 3rd Floor, Pittsburgh, PA 15219, Attn: Rini
Davis, Assistant Vice President, unless otherwise directed in writing by the
holder hereof or provided in the Credit Agreement, in lawful money of the United
States of America in immediately available funds.

     This Note is one of the Revolving Credit Notes referred to in, and is
subject to the provisions (including, but not limited to, the limitations set
forth in Section 10.18 of the Credit Agreement (Nature of Foreign Borrower
Obligations) if applicable), and is entitled to the benefits of, the Credit
Agreement and other Loan Documents, including the representations, warranties,
covenants, conditions, security interests, and Liens contained or granted
therein. The Credit Agreement among other things contains provisions for
acceleration of the maturity hereof upon the happening of certain stated events
and also for prepayment, in certain circumstances, on

<PAGE>

account of principal hereof prior to maturity upon the terms and conditions
therein specified. The Borrowers waive presentment, demand, notice, protest and
all other demands and notices in connection with the delivery, acceptance,
performance, default or enforcement of this Note and the Credit Agreement.

     This Note shall bind the Borrowers and their respective successors and
assigns, and the benefits hereof shall inure to the benefit of the Lender and
its successors and assigns. All references herein to the "Borrowers" and the
"Lender" shall be deemed to apply to the Borrowers and the Lender, respectively,
and their respective successors and assigns as permitted under the Credit
Agreement.

     This Note and any other documents delivered in connection herewith and the
rights and obligations of the parties hereto and thereto shall for all purposes
be governed by and construed and enforced in accordance with the laws of the
State of New York.

     All capitalized terms used herein shall, unless otherwise defined herein,
have the same meanings given to such terms in the Credit Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                      -2-

<PAGE>

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the
undersigned has executed this Note by its duly authorized officer with the
intention that it constitute a sealed instrument.

                                        P.H. GLATFELTER COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        PHG TEA LEAVES, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER GERNSBACH GMBH & CO. KG

                                        By: Glatfelter Verwaltungsgesellschaft
                                            mbH, its General Partner

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER VERWALTUNGSGESELLSCHAFT MBH

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER LYDNEY, LTD.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        MOLLANVICK, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                      -3-

<PAGE>

                                        GLATFELTER FALKENHAGEN GMBH

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER FALKENHAGEN HOLDING GMBH

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER CANADA INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER GATINEAU LTEE

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER CAERPHILLY LTD.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                    [Revolving Credit Note - signature page]

                                      -4-
<PAGE>

                                 EXHIBIT 1.1(S)

                                     FORM OF
                                 SWING LOAN NOTE

$20,000,000.00

                                                               __________, _____

     FOR VALUE RECEIVED, the undersigned, P. H. GLATFELTER COMPANY, a
Pennsylvania corporation, and the other Borrowers signatory hereto
(collectively, the "Borrowers"), jointly and severally, hereby unconditionally
promise to pay to the order of PNC BANK, NATIONAL ASSOCIATION (the "Lender"),
the lesser of (i) the principal sum of TWENTY MILLION DOLLARS
(US$20,000,000.00), and (ii) the aggregate unpaid principal balance of all Swing
Loans made by the Lender to the Borrowers pursuant to Section 2.5.2 of the
Credit Agreement, dated as of April__, 2010, among the Borrowers, the Guarantors
now or hereafter party thereto, the Lenders now or hereafter party thereto, and
PNC Bank, National Association, as Administrative Agent for the Lenders
(hereinafter referred to in such capacity as the "Administrative Agent") (as
amended, restated, supplemented, or otherwise modified from time to time, the
"Credit Agreement"), payable with respect to each Swing Loan evidenced hereby on
the earlier of (i) demand by the Lender or (ii) by 11:00 a.m. Pittsburgh time on
the Expiration Date, or at such other time specified in the Credit Agreement.

     The Borrowers shall pay interest on the unpaid principal balance of each
Swing Loan from time to time outstanding hereunder from the date hereof at the
rate per annum and on the date(s) provided in the Credit Agreement. Upon the
occurrence and during the continuation of an Event of Default, the Borrowers
shall pay interest on the entire principal amount of the then outstanding Swing
Loans evidenced by this Note at a rate per annum as set forth in the Credit
Agreement. Such interest will accrue before and after any judgment has been
entered.

     Subject to the provisions of the Credit Agreement, payments of both
principal and interest shall be made without setoff, counterclaim or other
deduction of any nature at the office of the Administrative Agent located at PNC
Firstside Center, 500 First Avenue, 3rd Floor, Pittsburgh, PA 15219, Attn: Rini
Davis, Assistant Vice President, unless otherwise directed in writing by the
holder hereof, in lawful money of the United States of America in immediately
available funds.

     This Note is the Swing Loan Note referred to in, and is subject to the
provisions (including, but not limited to, the limitations set forth in Section
10.18 of the Credit Agreement (Nature of Foreign Borrower Obligations) if
applicable), and is entitled to the benefits of, the Credit Agreement and other
Loan Documents, including the representations, warranties, covenants or
conditions contained or granted therein. The Credit Agreement among other things
contains provisions for acceleration of the maturity hereof upon the happening
of certain stated events and also for prepayment, in certain circumstances, on
demand or otherwise, on account of principal hereof prior to maturity upon the
terms and conditions therein specified. All capitalized terms used herein shall,
unless otherwise defined herein, have the same meanings given to such terms in
the Credit Agreement. The Borrowers waive presentment, demand,

<PAGE>

notice, protest and all other demands and notices in connection with the
delivery, acceptance, performance, default or enforcement of this Note and the
Credit Agreement.

     The Borrowers acknowledge and agree that the Lender may at any time and in
its sole discretion demand payment of all amounts outstanding under this Note
without prior notice to the Borrowers.

     This Note shall bind the Borrowers and their respective successors and
assigns, and the benefits hereof shall inure to the benefit of the Lender and
its successors and assigns. All references herein to the "Borrowers" and the
"Lender" shall be deemed to apply to the Borrowers and the Lender, respectively,
and their respective successors and assigns.

     This Note and any other documents delivered in connection herewith and the
rights and obligations of the parties hereto and thereto shall for all purposes
be governed by and construed and enforced in accordance with the laws of the
State of New York.

     The Borrowers acknowledge and agree that a telecopy transmission to
Administrative Agent or any Lender of signature pages hereof purporting to be
signed on behalf of Borrowers shall constitute effective and binding execution
and delivery hereof by Borrowers.

                            [SIGNATURE PAGE FOLLOWS]

                                       2

<PAGE>

                   [SIGNATURE PAGE 1 OF 1 TO SWING LOAN NOTE]

     IN WITNESS WHEREOF, and intending to be legally bound hereby, the
undersigned has executed this Note by its duly authorized officer with the
intention that it constitute a sealed instrument.

                                        P.H. GLATFELTER COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        PHG TEA LEAVES, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER GERNSBACH GMBH & CO. KG

                                        By: Glatfelter Verwaltungsgesellschaft
                                            mbH, its General Partner

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER
                                        VERWALTUNGSGESELLSCHAFT MBH

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER LYDNEY, LTD.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        MOLLANVICK, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

<PAGE>

                                        GLATFELTER FALKENHAGEN GMBH

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER FALKENHAGEN HOLDING GMBH

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER CANADA INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER GATINEAU LTEE

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        GLATFELTER CAERPHILLY LTD.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                       [Swing Loan Note - signature page]
<PAGE>

                                   EXHIBIT 2.4

                              FORM OF LOAN REQUEST

                                                                 Date: _________

TO:  PNC Bank, National Association, as Administrative Agent
     PNC Firstside Center
     500 First Avenue, 3rd Floor
     Pittsburgh, PA 15219
     Telephone No.: (412) 762-7638
     Telecopier No.: (412) 762-8672
     Attention: Rini Davis

FROM: __________________________

RE:  Credit Agreement (as it may be amended, restated, modified or supplemented,
     the "Agreement") dated as of April __, 2010 by and among P. H. Glatfelter
     Company, the other Borrowers party thereto (collectively, "Borrowers"), the
     Guarantors party thereto, the Lenders party thereto and PNC Bank, National
     Association, as Administrative Agent for the Lenders (the "Administrative
     Agent")

Capitalized terms not otherwise defined herein shall have the respective
meanings ascribed to them by the Agreement.

A.   Pursuant to Section [2.4] [3.2] of the Agreement, the undersigned
     [Borrower] [Borrower Agent] irrevocably requests [check one line under 1(a)
     below and fill in blank space next to the line as appropriate]:

     1.(a) __  A new Revolving Credit Loan OR

           __  A new Swing Loan OR

           __  Renewal of the Euro-Rate Option applicable to an outstanding
               Revolving Credit Loan, originally made on __________ __, ____ OR

           __  Conversion of the Base Rate Option applicable to an outstanding
               Revolving Credit Loan, originally made on _____________ to a
               Revolving Credit Loan to which the Euro-Rate Option applies, OR

           __  Conversion of the Euro-Rate Option applicable to an outstanding
               Revolving Credit Loan originally made on __________ __, ____ to a
               Revolving Credit Loan to which the Base Rate Option applies.

<PAGE>

     SUCH NEW, RENEWED OR CONVERTED LOAN SHALL BEAR INTEREST:

        [Check one line under 1(b) below and fill in blank spaces in line
                                 next to line]:

     1.(b)(i) __ Under the Base Rate Option. Such Loan shall have a Borrowing
               Date of __________, ___ (which date shall be (i) one (1) Business
               Day subsequent to the Business Day of receipt by the
               Administrative Agent by 10:00 a.m. of this Loan Request for
               making a new Revolving Credit Loan to which the Base Rate Option
               applies, or (ii) the last day of the preceding Interest Period
               under the Euro-Rate Option if a Loan to which the Euro-Rate
               Option applies is being converted to a Loan to which the Base
               Rate Option applies).

                                       OR

        (ii) __ Under the Euro-Rate Option. Such Loan shall have a Borrowing
               Date of _____________ (which date shall be (i) three (3) Business
               Days   subsequent to the Business Day of receipt by the
               Administrative Agent by 10:00 a.m. of this Loan Request for
               making a new Revolving Credit Loan in Dollars to which the
               Euro-Rate Option applies, renewing a Loan in Dollars to which the
               Euro-Rate Option applies, or converting a Loan to which the Base
               Rate Option applies to a Loan to which the Euro-Rate Option
               applies, (ii) four (4) Business Days subsequent to the Business
               Day of receipt by the Administrative  Agent by 10:00 a.m. of this
               Loan Request for making a new Revolving Credit Loan in an
               Optional Currency, or renewing a Loan in an Optional Currency, or
               (iii) one (1) Business Day subsequent to the last day of the
               preceding Interest Period if a Loan to which the Euro-Rate Option
               applies is being convert to a Loan to which the Base Rate Option
               applies).

  [Check one line under 2 below and fill in blank spaces in the line checked]

     2.   (a) _____ Such Loan is in Dollars and in the principal amount of
                    $_____________ or the principal amount to be renewed or
                    converted is $_____________

          OR

          (b) _____ Such Loan is in _____________  [identify Optional Currency]
                    and in the principal amount of ________________________, or
                    the principal amount of such Optional Currency to be
                    renewed is _____________________.

     [(1)  Revolving Credit Loans under Section 2.4 not to be less than
     $2,000,000.00 and in increments of $100,000.00 if in excess thereof for
     each Borrowing Tranche to which the Euro-Rate Option applies and not less
     than the lesser of $2,000,000.00 or the maximum amount available for each
     Borrowing Tranche to which the Base Rate Option applies]

                                       2

<PAGE>

     3.   [Complete blank below if the Borrower is selecting the Euro-Rate
          Option]: Such Loan shall have an Interest Period of [one, two, three,
          or six] Month(s).
          _________________________________

     [Interest Periods for Loans in Optional Currency limited to one month]

          [If a new Loan]

     4.   The proceeds of the Loan shall be advanced to the  following
          Borrower(s):
     ___________________________________________________________________________

B.   As of the date hereof and the date of making of the above-requested Loan
     (and after giving effect thereto): all of Borrowers' representations and
     warranties therein are true and correct in all material respects (except
     representations and warranties which expressly relate solely to an earlier
     date or time, which representations and warranties were true and correct in
     all material respects on and as of the specific dates or times referred to
     therein); no Event of Default or Potential Default has occurred and is
     continuing or shall exist; and the making of any Revolving Credit Loan
     shall not cause the aggregate Revolving Credit Loans, plus Swing Loans plus
     the Letters of Credit Outstanding to exceed the aggregate Revolving Credit
     Commitments.

C.   The undersigned hereby irrevocably requests [check one line under paragraph
     1 below and fill in blank space next to the line as appropriate]:

     1. ______ Funds to be deposited into PNC bank account per our current
standing instructions. Complete amount of deposit if not full loan advance
amount: $ _________.

          ______ Funds to be wired per the following wire instructions:

          $____________________ Amount of Wire Transfer

          Bank Name: __________________________________

          ABA: ________________________________________

          Account Number: _____________________________

          Account Name: _______________________________

          Reference: __________________________________

                                       3

<PAGE>

          ______ Funds to be wired per the attached Funds Flow (multiple wire
               transfers)

                            [SIGNATURE PAGE FOLLOWS]

                                       4

<PAGE>

                     [SIGNATURE PAGE 1 OF 1 TO LOAN REQUEST]

     The undersigned certifies to the Administrative Agent as to the accuracy of
the foregoing.

                                        [NAME OF BORROWER]

Date: __________, 2010                  _______________________________[(SEAL)]
                                        By:
                                            ------------------------------------
                                        Title:
                                               ---------------------------------
<PAGE>

                                  EXHIBIT 7.2.6

                   FORM OF ACQUISITION COMPLIANCE CERTIFICATE

     In accordance with the provisions of Section 7.2.6 of the Credit Agreement
dated as of April___, 2010, as amended, restated and otherwise modified through
the date hereof (the "Credit Agreement") by and among P. H. Glatfelter Company,
the other Borrowers party thereto (collectively, the "Borrowers"), PNC Bank,
National Association, as Administrative Agent (the "Administrative Agent"), and
the other parties thereto from time to time, I, _______________, the
____________________ and authorized officer of P. H. Glatfelter Company, on
behalf of all of the Borrowers, do hereby certify to the Administrative Agent
and Lenders as follows:

          (a) The representations and warranties made by the Borrowers and other
Loan Parties in Section 5 of the Credit Agreement and in the other Loan
Documents are true in all material respects with the same effect as though such
representations and warranties are made on and as of this date (except
representations and warranties which expressly relate solely to an earlier date
or time, which remain true in all material respects as of such date or time);

          (b) No Event of Default or Potential Default has occurred or now
exists, or will occur after giving effect to the proposed Permitted Acquisition;
and

          (c) After giving effect to the proposed Permitted Acquisition, on a
pro forma basis, the Borrowers will continue to be in compliance with the
financial covenants set forth in Section 7.2 of the Credit Agreement as more
fully set forth below and on Annex 1 hereto:

<TABLE>
<CAPTION>
                                                   Actual      Required
                                                  -------   -------------
<S>                                               <C>       <C>
CONSOLIDATED LEVERAGE RATIO
ratio of Consolidated Total Net Debt divided by   _______
Consolidated Adjusted EBITDA                      _______
Leverage Ratio                                    _______   not more than
                                                            3.50 to 1.00(1)
INTEREST COVERAGE RATIO
ratio of Consolidated EBITDA divided by           _______
consolidated interest expense                     _______
Interest Coverage Ratio                           _______   not less than
                                                            3.50 to 1.00(2)
</TABLE>

----------
(1)  Refer to Section 7.2.15 of Credit Agreement to determine applicable maximum
     ratio.

(2)  Refer to Section 7.2.16 of Credit Agreement.

                                        1

<PAGE>

Attached hereto as Annex 1 are calculations supporting the figures reported
above.

     Any capitalized terms which are used in this Certificate and which are not
defined herein, but which are defined in the above-described Credit Agreement,
shall have the meanings given to those terms in the Credit Agreement.

     IN WITNESS WHEREOF, I have executed this Certificate the _____ day of
___________.

                                        By:
                                            ------------------------------------
                                            ___________ of P. H. Glatfelter
                                            Company, on behalf of all the
                                            Borrowers

                                        2
<PAGE>

                                  EXHIBIT 7.3.3

                    FORM OF QUARTERLY COMPLIANCE CERTIFICATE

     In accordance with the provisions of Section 7.3.3 of the Credit Agreement
dated as of April___, 2010, as amended, restated and otherwise modified through
the date hereof (the "Credit Agreement") by and among P. H. Glatfelter Company
(the "Company"), the other Borrowers party thereto (collectively, the
"Borrowers"), PNC Bank, National Association, as Administrative Agent (the
"Agent"), and the other parties thereto from time to time, I, __________, the
__________ and authorized officer of the Company, on behalf of all of the
Borrowers, do hereby certify to the Administrative Agent and Lenders as follows:

          (a) The representations and warranties made by the Borrowers and other
Loan Parties in Section 5 of the Credit Agreement and in the other Loan
Documents are true in all material respects with the same effect as though such
representations and warranties are made on and as of this date (except
representations and warranties which expressly relate solely to an earlier date
or time, which remain true in all material respects as of such date or time);

          (b) No Event of Default or Potential Default has occurred or now
exists; and

          (c) The Company, on a consolidated basis, is in compliance with the
financial covenants set forth in Section 7.2 of the Credit Agreement as more
fully set forth below and on Annex 1 hereto:

<TABLE>
<CAPTION>
                                                    Actual         Required
                                                  ----------   ---------------
<S>                                               <C>          <C>
LEVERAGE RATIO
ratio of Consolidated Total Net Debt divided by   __________
Consolidated Adjusted EBITDA                      __________
Leverage Ratio                                    __________   not more than
                                                               3.50 to 1.00(1)
INTEREST COVERAGE RATIO
ratio of Consolidated EBITDA divided by           __________
consolidated interest expense                     __________
Interest Coverage Ratio                           __________   not less than
                                                               3.50 to 1.00(2)
</TABLE>

----------
(1)  Refer to Section 7.2.15 of Credit Agreement.

(2)  Refer to Section 7.2.16 of Credit Agreement.

                                       1

<PAGE>

Attached hereto as Annex 1 are calculations supporting the figures reported
above.

     Any capitalized terms which are used in this Certificate and which are not
defined herein, but which are defined in the above-described Credit Agreement,
shall have the meanings given to those terms in the Credit Agreement.

     IN WITNESS WHEREOF, I have executed this Certificate the _____ day of
__________.

                                        By:
                                            ------------------------------------
                                        __________ of P. H. Glatfelter
                                        Company, on behalf of all of the
                                        Borrowers

                                       2<PAGE>

                                                               EXECUTION VERSION

                               TERM LOAN AGREEMENT

                          dated as of January 15, 2008

                                     between

                          GPW VIRGINIA TIMBERLANDS LLC
                                   as Borrower

                   THE LENDERS FROM TIME TO TIME PARTY HERETO

                                       AND

                                  SUNTRUST BANK
                                    as Agent

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
ARTICLE I.    DEFINITIONS; CONSTRUCTION....................................    1
SECTION 1.01  DEFINITIONS..................................................    1
SECTION 1.02  ACCOUNTING TERMS AND DETERMINATION...........................   14
SECTION 1.03  TERMS GENERALLY..............................................   14

ARTICLE II.   AMOUNT AND TERMS OF THE COMMITMENT...........................   15
SECTION 2.01  TERM LOAN COMMITMENT.........................................   15
SECTION 2.02  INTEREST ELECTION............................................   15
SECTION 2.03  TERMINATION OF COMMITMENTS...................................   15
SECTION 2.04  REPAYMENT OF TERM LOAN.......................................   16
SECTION 2.05  OPTIONAL PREPAYMENTS.........................................   16
SECTION 2.06  MANDATORY PREPAYMENTS........................................   16
SECTION 2.07  INTEREST ON TERM LOAN........................................   16
SECTION 2.08  FEES.........................................................   17
SECTION 2.09  COMPUTATION OF INTEREST......................................   17
SECTION 2.10  INABILITY TO DETERMINE INTEREST RATES........................   17
SECTION 2.11  ILLEGALITY...................................................   18
SECTION 2.12  INCREASED COSTS..............................................   18
SECTION 2.13  FUNDING INDEMNITY............................................   19
SECTION 2.14  TAXES........................................................   19
SECTION 2.15  PAYMENTS GENERALLY; PRO RATA TREATMENT; SHARING OF SET-OFFS..   21

ARTICLE III.  CONDITIONS PRECEDENT.........................................   23
SECTION 3.01  REPRESENTATIONS AND WARRANTIES...............................   23
SECTION 3.02  PERFORMANCE; NO DEFAULT......................................   23
SECTION 3.03  COMPLIANCE CERTIFICATES......................................   23
SECTION 3.04  OPINIONS OF COUNSEL..........................................   23
SECTION 3.05  INSTALLMENT SALE TRANSACTION; INITIAL CAPITALIZATION
              TRANSACTION..................................................   24
SECTION 3.06  TRANSACTION DOCUMENTS........................................   24
SECTION 3.07  COLLATERAL...................................................   25
SECTION 3.08  INTEREST RESERVE ACCOUNT AND COLLECTION ACCOUNT..............   25
SECTION 3.09  INTEREST RESERVE AMOUNT......................................   25
SECTION 3.10  TERM LOAN PERMITTED BY APPLICABLE LAW, ETC...................   25
SECTION 3.11  PAYMENT OF SPECIAL COUNSEL FEES..............................   26
SECTION 3.12  FUNDING INSTRUCTIONS.........................................   26
SECTION 3.13  PROCEEDINGS AND DOCUMENTS....................................   26

ARTICLE IV.   REPRESENTATIONS AND WARRANTIES...............................   26
SECTION 4.01  ORGANIZATION; POWER AND AUTHORITY............................   26
SECTION 4.02  AUTHORIZATION, ETC...........................................   26
SECTION 4.03  DISCLOSURE...................................................   27
SECTION 4.04  ORGANIZATION AND OWNERSHIP OF SHARES OF SUBSIDIARIES.........   27
SECTION 4.05  CLOSING DATE BALANCE SHEET; LIABILITIES......................   27
SECTION 4.06  COMPLIANCE WITH LAWS, OTHER INSTRUMENTS, ETC.................   27
SECTION 4.07  GOVERNMENTAL AUTHORIZATIONS, ETC.............................   27
SECTION 4.08  LITIGATION; OBSERVANCE OF STATUTES AND ORDERS................   28
SECTION 4.09  TAXES........................................................   28
SECTION 4.10  TITLE TO PROPERTY............................................   28
SECTION 4.11  LICENSES, PERMITS, ETC.......................................   28
SECTION 4.12  COMPLIANCE WITH ERISA........................................   28
SECTION 4.13  [Reserved]...................................................   29
SECTION 4.14  USE OF PROCEEDS; MARGIN REGULATIONS..........................   29
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                           <C>
SECTION 4.15  INDEBTEDNESS.................................................   30
SECTION 4.16  SOLVENCY.....................................................   30
SECTION 4.17  ACTIVITIES...................................................   30
SECTION 4.18  FOREIGN ASSETS CONTROL REGULATIONS, ETC......................   30
SECTION 4.19  INVESTMENT COMPANY ACT.......................................   31

ARTICLE V.    AFFIRMATIVE COVENANTS........................................   31
SECTION 5.01  FINANCIAL AND BUSINESS INFORMATION...........................   31
SECTION 5.02  OFFICER'S CERTIFICATE........................................   32
SECTION 5.03  VISITATION...................................................   32
SECTION 5.04  COMPLIANCE WITH LAW..........................................   33
SECTION 5.05  INSURANCE....................................................   33
SECTION 5.06  MAINTENANCE OF PROPERTIES....................................   33
SECTION 5.07  PAYMENT OF TAXES.............................................   33
SECTION 5.08  CORPORATE EXISTENCE, ETC.....................................   33
SECTION 5.09  PAYMENT OF OBLIGATIONS.......................................   33
SECTION 5.10  BOOKS AND RECORDS............................................   34
SECTION 5.11  ACTIVITIES...................................................   34
SECTION 5.12  CHARACTERIZATION OF BORROWER FOR TAX PURPOSES................   34

ARTICLE VI.   NEGATIVE COVENANTS...........................................   34
SECTION 6.01  INDEBTEDNESS.................................................   34
SECTION 6.02  LIENS........................................................   34
SECTION 6.03  TRANSACTIONS WITH AFFILIATES.................................   34
SECTION 6.04  MERGER, CONSOLIDATION, ETC...................................   35
SECTION 6.05  LINE OF BUSINESS.............................................   35
SECTION 6.06  TERRORISM SANCTIONS REGULATIONS..............................   35
SECTION 6.07  INVESTMENTS..................................................   35
SECTION 6.08  DISTRIBUTIONS................................................   35
SECTION 6.09  CAPITAL EXPENDITURES.........................................   36
SECTION 6.10  BANKRUPTCY, INSOLVENCY.......................................   36
SECTION 6.11  AMENDMENTS AND MODIFICATIONS TO ORGANIZATIONAL DOCUMENTS
              AND COLLATERAL...............................................   36

ARTICLE VII.  EVENTS OF DEFAULT............................................   37
SECTION 7.01  EVENTS OF DEFAULT............................................   37
SECTION 7.02  REMEDIES ON DEFAULT, ETC.....................................   38

ARTICLE VIII. THE AGENT....................................................   39
SECTION 8.01  APPOINTMENT OF AGENT.........................................   39
SECTION 8.02  NATURE OF DUTIES OF AGENT....................................   40
SECTION 8.03  LACK OF RELIANCE ON THE AGENT................................   40
SECTION 8.04  CERTAIN RIGHTS OF THE AGENT..................................   40
SECTION 8.05  RELIANCE BY AGENT............................................   41
SECTION 8.06  THE AGENT IN ITS INDIVIDUAL CAPACITY.........................   41
SECTION 8.07  SUCCESSOR AGENT..............................................   41
SECTION 8.08  AUTHORIZATION TO EXECUTE OTHER LOAN DOCUMENTS................   42

ARTICLE IX.   MISCELLANEOUS................................................   42
SECTION 9.01  NOTICES......................................................   42
SECTION 9.02  WAIVER; AMENDMENTS...........................................   43
SECTION 9.03  EXPENSES; INDEMNIFICATION....................................   44
SECTION 9.04  SUCCESSORS AND ASSIGNS.......................................   45
SECTION 9.05  GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS...   49
SECTION 9.06  WAIVER OF JURY TRIAL.........................................   49
SECTION 9.07  RIGHT OF SETOFF..............................................   50
SECTION 9.08  COUNTERPARTS; INTEGRATION....................................   50
SECTION 9.09  SURVIVAL.....................................................   50
SECTION 9.10  SEVERABILITY.................................................   51
SECTION 9.11  CONFIDENTIALITY..............................................   51
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                           <C>
SECTION 9.12  INTEREST RATE LIMITATION.....................................   51
SECTION 9.13  QUALIFIED PURCHASER..........................................   52
</TABLE>

Schedules
   Schedule 4.05 - Closing Date Balance Sheet
   Schedule 4.15 - Other Indebtedness

Exhibits
   Exhibit A     - Term Note
   Exhibit B     - Form of Glatfelter Note
   Exhibit C     - Form of Assignment and Acceptance

                                       iii

<PAGE>

                               TERM LOAN AGREEMENT

          THIS TERM LOAN AGREEMENT (this "Agreement") is made and entered into
as of January 15, 2008, by and between GPW VIRGINIA TIMBERLANDS LLC, a Delaware
limited liability company (the "Borrower") the several banks and other financial
institutions from time to time party hereto (the "Lenders"), and SUNTRUST BANK,
in its capacity as Agent for the Lenders (in such capacity, the "Agent").

                                   WITNESSETH:

          WHEREAS, the Borrower has requested that the Lender make a term loan
in a principal amount equal to $36,694,500.00 to the Borrower;

          WHEREAS, subject to the terms and conditions of this Agreement, the
Lender is willing to make the term loan to the Borrower.

          NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the Agent, the Borrower and the Lenders agree as
follows:

                      ARTICLE I. DEFINITIONS; CONSTRUCTION

          SECTION 1.01 DEFINITIONS.

     In addition to the other terms defined herein, the following terms used
herein shall have the meanings herein specified (to be equally applicable to
both the singular and plural forms of the terms defined):

          "ADJUSTED LIBO RATE" shall mean, with respect to each Interest Period
for a Eurodollar Loan, the rate per annum obtained by dividing (i) LIBOR for
such Interest Period by (ii) a percentage equal to 1.00 minus the Eurodollar
Reserve Percentage.

          "ADMINISTRATIVE QUESTIONNAIRE" shall mean, with respect to each
Lender, an administrative questionnaire in the form prepared by the Agent and
submitted to the Agent duly completed by such Lender.

          "AFFILIATE" means, at any time, and with respect to any Person, any
other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person. As used in this definition, "Control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting

<PAGE>

securities, by contract or otherwise. Unless the context otherwise clearly
requires, any reference to an "Affiliate" is a reference to an Affiliate of the
Borrower.

          "AGENT" shall have the meaning set forth in the introductory paragraph
hereof.

          "ANTI-TERRORISM ORDER" means Executive Order No. 13,224 of September
24, 2001, Blocking Property and Prohibiting Transactions with Persons Who
Commit, Threaten to Commit or Support Terrorism, 66 U.S. Fed. Reg. 49, 079
(2001), as amended.

          "APPLICABLE LENDING OFFICE" shall mean, for each Lender the "Lending
Office" of such Lender (or an Affiliate of such Lender) designated in the
Administrative Questionnaire submitted by such Lender or such other office of
such Lender (or an Affiliate of such Lender) as such Lender may from time to
time specify to the Agent and the Borrower as the office by which its Term Loan
is to be made and maintained.

          "APPLICABLE MARGIN" shall mean 0.00% per annum on a Base Rate Loan and
1.20% per annum on a Eurodollar Loan.

          "APPROVED FUND" means any Person (other than a natural Person) that is
(or will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its
business and that is administered or managed by (a) the Lender, (b) an Affiliate
of the Lender or (c) an entity or an Affiliate of an entity that administers or
manages the Lender.

          "ASSIGNMENT AND ACCEPTANCE" shall mean an assignment and acceptance
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 9.04(b)) and accepted by the Agent, in the form
of Exhibit C attached hereto or any other form approved by the Agent.

          "AVAILABLE FUNDS" means, as of any date of determination, the amount
by which cash on deposit in the Interest Reserve Account and the Collection
Account, and Permitted Investments standing to the credit of the Interest
Reserve Account or the Collection Account or otherwise subject to a perfected,
first priority Lien in favor of the Collateral Trustee, exceeds the sum of (a)
the amount of principal, interest and other sums in respect of the Term Loan
that is due and payable within the 45 days following such date of determination,
plus (b) the Interest Reserve Amount, plus (c) the amount of expenses projected
by the Borrower in good faith to be due and payable on or prior to the last day
of the immediately succeeding Interest Period as certified by a Responsible
Officer of the Borrower to the Collateral Trustee.

          "BASE RATE" shall mean the higher of (i) the per annum rate which the
Agent publicly announces from time to time to be its prime lending rate, as in
effect from time to time, and (ii) the Federal Funds Rate, as in effect from
time to time, plus one-half of one percent (0.50%). The Agent's prime lending
rate is a reference rate and does not necessarily represent the lowest or best
rate charged to customers. The Agent may make commercial loans or other loans at
rates of interest at, above or below the Agent's prime lending rate. Each change
in the Agent's prime lending rate shall be effective from and including the date
such change is publicly

                                        2

<PAGE>

announced as being effective. When used in reference to the Term Loan, "Base
Rate" refers to whether the Term Loan bears interest at a rate determined by
reference to the Base Rate (e.g., a "Base Rate Loan").

          "BORROWER" shall have the meaning in the introductory paragraph
hereof.

          "BUSINESS DAY" shall mean (i) any day other than a Saturday, Sunday or
other day on which commercial banks in Atlanta, Georgia or Richmond, Virginia
are authorized or required by law to close and (ii) if such day relates to a
borrowing of, a payment or prepayment of principal or interest on, a conversion
of, or an Interest Period for, a Eurodollar Loan or a notice with respect to any
of the foregoing, any London Business Day.

          "CAPITALIZATION TRANSACTION" means, collectively, (a) the Initial
Capitalization Transaction, (b) the purchase by the Borrower from Glatfelter on
the date of Closing of a Glatfelter Note in the principal amount of
$3,377,000.00 for a purchase price equal to 100% of the principal amount
thereof, paid by the Borrower with proceeds of the Term Loan, and (c) the
contribution by the Parent on the date of Closing of a Glatfelter Note in the
principal amount of $5,781,000.00.

          "CHANGE IN LAW" shall mean (i) the adoption of any applicable law,
rule or regulation after the date of this Agreement, (ii) any change in any
applicable law, rule or regulation, or any change in the interpretation or
application thereof, by any Governmental Authority after the date of this
Agreement, or (iii) compliance by the Lender (or by the Lender's holding
company, if applicable) with any request, guideline or directive (whether or not
having the force of law) of any Governmental Authority made or issued after the
date of this Agreement.

          "CLOSING DATE" or the "CLOSING" shall mean the date on which the
conditions precedent set forth in Article III have been satisfied or waived.

          "CLOSING DATE BALANCE SHEET" means the balance sheet of the Borrower
as of the date of Closing, after giving effect and fully reflecting all of the
transactions contemplated to occur on or prior to Closing, including, without
limitation, the Capitalization Transaction, the Term Loan and the Closing Date
Distribution.

          "CLOSING DATE DISTRIBUTION" means a cash distribution made by the
Borrower to the Parent on the date of Closing in the amount of $32,377,500.

          "CODE" shall mean the Internal Revenue Code of 1986, as amended and in
effect from time to time.

          "COLLATERAL" means (a) the Installment Note, (b) the Letter of Credit,
(c) the Glatfelter Securities, (d) the Interest Reserve Account and all cash and
other items from time to time standing to the credit of the Interest Reserve
Account, (e) the Collection Account and all cash and other items from time to
time standing to the credit of the Collection Account, (f) all rights of the
Borrower under the Contribution Agreement, (g) all other assets of the Borrower,
and (h) any and all proceeds of any of the foregoing.

                                        3

<PAGE>

          "COLLATERAL TRUSTEE" means SunTrust Bank, in its capacity as
Collateral Trustee pursuant to the Collateral Trust Indenture.

          "COLLATERAL TRUST INDENTURE" means that certain Collateral Trust
Indenture dated as of January 15, 2008 between the Collateral Trustee and the
Borrower.

          "COMMITMENT" shall mean the Term Loan Commitment.

          "CONTRIBUTION AGREEMENT" means the Contribution Agreement, dated as of
January 14, 2008, between the Parent and the Borrower.

          "CONTRIBUTION AGREEMENT EVENT" means (a) any representation or
warranty made by the Parent in the Contribution Agreement proves to have been
false or incorrect in any material respect on the date as of which made or (b)
the Parent defaults in the performance of or compliance with any term in the
Contribution Agreement to be performed by or complied with by the Parent and
such defaults are not remedied within 30 days after the earlier of (i) a
responsible officer of the Parent obtaining actual knowledge of such default and
(ii) the Parent receiving written notice of such default.

          "DEFAULT" shall mean any condition or event that, with the giving of
notice or the lapse of time or both, would constitute an Event of Default.

          "DEFAULT INTEREST" shall have the meaning set forth in Section
2.07(b).

          "DOLLAR(S)" and the sign "$" shall mean lawful money of the United
States of America.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the rules and regulations promulgated thereunder
from time to time in effect.

          "ERISA AFFILIATE" means any trade or business (whether or not
incorporated) that is treated as a single employer together with the Borrower
under section 414 of the Code.

          "EURODOLLAR" when used in reference to the Term Loan, refers to
whether the Term Loan bears interest at a rate determined by reference to the
Adjusted LIBO Rate (e.g., a "Eurodollar Loan").

          "EURODOLLAR RESERVE PERCENTAGE" shall mean the aggregate (without
duplication) of the maximum reserve percentages (including, without limitation,
any emergency, supplemental, special or other marginal reserves) expressed as a
decimal (rounded upwards to the next 1/100th of 1%) in effect on any day to
which the Lender is subject with respect to the Adjusted LIBO Rate pursuant to
regulations issued by the Board of Governors of the Federal Reserve System (or
any Governmental Authority succeeding to any of its principal functions) with
respect to eurocurrency funding (currently referred to as "eurocurrency
liabilities" under

                                        4

<PAGE>

Regulation D). Any Eurodollar Loan 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 the Lender under Regulation D. The Eurodollar Reserve Percentage shall
be adjusted automatically on and as of the effective date of any change in any
reserve percentage.

          "EVENT OF DEFAULT" shall have the meaning provided in Section 7.01.

          "EXCLUDED TAXES" shall mean with respect to the Agent, any Lender or
any other recipient of any payment to be made by or on account of any obligation
of the Borrower hereunder, (a) Taxes imposed on or measured by such recipient's
overall net income (however denominated), franchise Taxes imposed on such
recipient (in lieu of net income Taxes), and branch profits or similar Taxes
imposed on it by any jurisdiction (or any political subdivision thereof) as a
result of such recipient being organized or having its principal office or, in
the case of any Lender, its Applicable Lending Office located in such
jurisdiction or as a result of a present or former connection with such
jurisdiction (other than any such connection arising from such recipient having
executed, delivered or performed its obligations or received a payment under, or
enforced, or otherwise with respect to, any of the Loan Documents), and (b) any
withholding or backup withholding Tax that (i) is imposed under the law in
effect at the time such recipient becomes a party to this Agreement, except to
the extent of any additional amounts to which such Lender's assignor (if any)
was entitled at the time of assignment, or designates a new lending office
(unless such re-designation was at the request of the Borrower), other than
Taxes that have accrued prior to the designation of such lending office that are
otherwise not Excluded Taxes, or (ii) is attributable to such Foreign Lender's
failure (or unreasonable delay) to comply (other than as a result of a change in
law, rule, regulation or treaty or treaty or in the administration,
interpretation or application thereof by a Governmental Authority) with Section
2.14(e).

          "FEDERAL FUNDS RATE" shall mean, for any day, the rate per annum
(rounded upwards, if necessary, to the next 1/100th of 1%) equal to the weighted
average of the rates on overnight Federal funds transactions with member banks
of the Federal Reserve System arranged by Federal funds brokers, as published by
the Federal Reserve Bank of New York on the next succeeding Business Day or if
such rate is not so published for any Business Day, the Federal Funds Rate for
such day shall be the average rounded upwards, if necessary, to the next 1/100th
of 1% of the quotations for such day on such transactions received by the Agent
from three Federal funds brokers of recognized standing selected by the Agent.

          "FEE LETTER" shall mean that certain fee letter, dated as of January
9, 2008, executed by SunTrust Robinson Humphrey, Inc. and SunTrust Bank and
accepted by the Borrower.

          "FOREIGN LENDER" shall mean any Lender that is not a United States
person under Section 7701(a)(30) of the Code.

          "GAAP" shall mean generally accepted accounting principles in the
United States applied on a consistent basis and subject to the terms of Section
1.02.

                                        5

<PAGE>

          "GLATFELTER" means P.H. Glatfelter Company, a Pennsylvania
corporation.

          "GLATFELTER NOTE" means any note issued by Glatfelter in favor of the
Borrower in the form of Exhibit B.

          "GLATFELTER SECURITIES" means, collectively, (a) the Glatfelter Note
in the principal amount of $5,781,000.00 contributed by the Parent to the
Borrower on the date of Closing, and (b) the Glatfelter Note in the principal
amount of $3,377,000.00 purchased by the Borrower from Glatfelter on the date of
Closing with proceeds from the Term Loan.

          "GOVERNMENTAL AUTHORITY" means (a) the government of (i) the United
States of America or any State or other political subdivision thereof, or (ii)
any other jurisdiction in which the Borrower conducts all or any part of its
business, or which asserts jurisdiction over any properties of the Borrower, or
(b) any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government

          "GUARANTEE" means, with respect to any Person, any obligation (except
the endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
indebtedness, dividend or other obligation of any other Person in any manner,
whether directly or indirectly, including (without limitation) obligations
incurred through an agreement, contingent or otherwise, by such Person:

          (a) to purchase such indebtedness or obligation or any property
constituting security therefor;

          (b) to advance or supply funds (i) for the purchase or payment of such
indebtedness or obligation, or (ii) to maintain any working capital or other
balance sheet condition or any income statement condition of any other Person or
otherwise to advance or make available funds for the purchase or payment of such
indebtedness or obligation;

          (c) to lease properties or to purchase properties or services
primarily for the purpose of assuring the owner of such indebtedness or
obligation of the ability of any other Person to make payment of the
indebtedness or obligation; or

          (d) otherwise to assure the owner of such indebtedness or obligation
against loss in respect thereof.

          In any computation of the indebtedness or other liabilities of the
obligor under any Guarantee, the indebtedness or other obligations that are the
subject of such Guarantee shall be assumed to be direct obligations of such
obligor.

          "INDEBTEDNESS" with respect to any Person means, at any time, without
duplication,

                                        6

<PAGE>

     (a) its liabilities for borrowed money and its redemption obligations in
respect of mandatorily redeemable Preferred Stock;

     (b) its liabilities for the deferred purchase price of property acquired by
such Person (excluding accounts payable arising in the ordinary course of
business but including all liabilities created or arising under any conditional
sale or other title retention agreement with respect to any such property);

     (c) (i) all liabilities appearing on its balance sheet in accordance with
GAAP in respect of Capital Leases and (ii) all liabilities which would appear on
its balance sheet in accordance with GAAP in respect of Synthetic Leases
assuming such Synthetic Leases were accounted for as Capital Leases;

     (d) all liabilities for borrowed money secured by any Lien with respect to
any property owned by such Person (whether or not it has assumed or otherwise
become liable for such liabilities);

     (e) all its liabilities in respect of letters of credit or instruments
serving a similar function issued or accepted for its account by banks and other
financial institutions (whether or not representing obligations for borrowed
money);

     (f) all Swap Contracts of such Person; and

     (g) any Guaranty of such Person with respect to liabilities of a type
described in any of clauses (a) through (f) hereof.

          "INDEMNIFIED TAXES" shall mean Taxes other than Excluded Taxes.

          "INITIAL CAPITALIZATION TRANSACTION" means the contribution by the
Parent to the Borrower prior to the Closing of the Installment Note and the
Letter of Credit with respect to membership interests constituting 100% of the
issued and outstanding equity capital of the Borrower, pursuant to a
Contribution Agreement and the operating agreement of the Borrower.

          "INSTALLMENT NOTE" means that certain Purchase Note No. P-1 in the
principal amount of $43,170,000, dated November 15, 2007, issued by the
Installment Note Issuer, originally made payable to the order of the Parent, and
conveyed and transferred by the Parent to the Borrower pursuant to the
Contribution Agreement.

          "INSTALLMENT NOTE ISSUER" means GIC Investments LLC, a Delaware
limited liability company.

          "INSTALLMENT SALE TRANSACTION" means the sale by the Parent on
November 16, 2007 of its equity interests in two limited liability companies
formed to hold certain timberlands to the Installment Note Issuer, the purchase
price for which the Installment Note Issuer delivered to the Parent (a) the
Installment Note and (b) the Letter of Credit.

                                        7

<PAGE>

          "INSTALLMENT NOTE TRIGGER EVENT" means any of (a) a default in the
payment of any amount when due (whether on a scheduled payment date, upon
acceleration or otherwise) under the Installment Note that has not been cured
with the proceeds of a drawing under the Letter of Credit within 5 days
following such default; (b) failure of the Borrower to direct the Collateral
Trustee to accelerate the maturity of the Installment Note within 5 days
following the delivery by the L/C Bank of a Timely Reimbursement Failure Notice
(as such term is defined in the Letter of Credit); and (c) an insolvency event
relating to the L/C Bank.

          "INTEREST PERIOD" means (i) initially, the period commencing on the
date hereof and ending on June 15, 2008 and (ii) thereafter, each period
commencing on the last day of the immediately preceding Interest Period and
ending on the 15th day of the sixth consecutive month ending after the month in
which such immediately preceding Interest Period ended. The determination of
Interest Periods shall be subject to the following provisions:

     (i) if any Interest Period would otherwise expire on a day that is not a
     Business Day, such Interest Period shall expire on the immediately
     succeeding Business Day; provided, however, that if any Interest Period
     would otherwise expire on a day that is not a Business Day but is a day of
     the month after which no further Business Day occurs in such month, such
     Interest Period shall expire on the immediately preceding Business Day; and

     (ii) no Interest Period shall extend beyond the stated maturity date
     hereof.

          "INTEREST RESERVE AMOUNT" means $350,000.

          "INTEREST RESERVE ACCOUNT" means a trust account established by the
Collateral Trustee to hold certain amounts to be used to make payments on the
Term Loan.

          "INVESTMENT COMPANY ACT" shall mean the United States Investment
Company Act of 1940, as amended.

          "LC BANK" means the Royal Bank of Scotland plc, together with any
issuer of a substitute Letter of Credit.

          "LETTER OF CREDIT" means that certain Irrevocable Standby Letter of
Credit No. LCA11020701586NY, in the initial "Base Amount" (as defined in said
letter of credit) of $43,170,000 issued by the LC Bank, together with any
substitute letter of credit that replaces such letter of credit pursuant to the
terms of the Installment Note.

          "LIBOR" means, (i) 4.110625% per annum for the first Interest Period,
and (ii) for any subsequent Interest Period:

          (a) an interest rate per annum appearing on page BBAM on the Bloomberg
Terminal ("Page BBAM") (or any other page that may replace such page from time
to time for the purpose of displaying offered rates of leading banks for London
interbank deposits in United States dollars) at approximately 11:00 a.m. (London
time) on the day that is two London

                                        8

<PAGE>

Business Days prior to the commencement of such Interest Period for United
States dollar deposits having a tenor equal to the duration of such Interest
Period;

          (b) if a rate is not available, the rate per annum determined by the
Collateral Trustee to be the arithmetic mean (rounded, if necessary, to the
nearest fifth decimal place (with 5's being rounded up)) of the respective rates
of interest communicated by each of the Reference Banks to the Collateral
Trustee as the rates at which such Reference Banks would offer a United States
dollar deposit having a tenor equal to the duration of such Interest Period and
an amount at least equal to US$100 million to prime banks in the London
interbank market at approximately 11:00 a.m. (London time) on the day that is
two London Business Days prior to the commencement of such Interest Period;
provided, however, that if less than all Reference Banks provide such rate
quotations, then the Collateral Trustee shall determine the above-mentioned
arithmetic mean based on the rates quoted by those Reference Banks that provide
such a quotation, and if only one Reference Bank provides such a rate quotation,
then the Collateral Trustee shall use such sole Reference Bank's quoted rate; or

          (c) if a rate cannot be determined pursuant to the foregoing
provisions, the LIBO Rate for such Interest Period shall be the rate per annum
determined by the Collateral Trustee to be the arithmetic mean (rounded, if
necessary, to the nearest fifth decimal place (with 5's being rounded up)) of
the respective rates of interest communicated by each of the Reference Banks to
the Collateral Trustee as the rates at which such Reference Banks would offer a
United States dollar deposit having a tenor equal to the duration of such
Interest Period and an amount at least equal to US$100 million to prime banks in
the New York interbank market at approximately 11:00 a.m. (New York City time)
on the first day of such Interest Period; provided, however, that if less than
all Reference Banks provide such rate quotations, then the Collateral Trustee
shall determine the above-mentioned arithmetic mean based on the rates quoted by
those Reference Banks that provide such a quotation, and if only one Reference
Bank provides such a rate quotation, then the Collateral Trustee shall use such
sole Reference Bank's quoted rate.

     In respect of any Interest Period having a tenor other than six months, the
LIBO Rate shall be determined through the use of straight-line interpolation by
reference to two rates calculated in accordance with clauses (a), (b) and (c)
above, one of which shall be determined as if the maturity of the Dollar
deposits referred to therein were the period of time for which rates are
available next shorter than the Interest Period and the other of which shall be
determined as if the maturity were the period of time for which rates are
available next longer than the Interest Period; provided that, if an Interest
Period is less than or equal to seven days, then the LIBO Rate shall be
determined by reference to a rate calculated in accordance with clauses (a), (b)
and (c) above as if the maturity of the Dollar deposits referred to therein were
a period of time equal to seven days.

          "LENDERS" shall have the meaning set forth in the introductory
paragraph of this Agreement.

          "LIEN" shall mean any mortgage, pledge, security interest, lien
(statutory or otherwise), charge, encumbrance, hypothecation, assignment,
deposit arrangement, or other

                                        9

<PAGE>

arrangement having the practical effect of the foregoing or any preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including any conditional sale or other title retention
agreement and any capital lease having the same economic effect as any of the
foregoing).

          "LOAN" shall have the meaning set forth in Section 2.01

          "LOAN DOCUMENTS" shall mean, collectively, (a) this Agreement, (b) the
Term Note, (c) the Pledge and Security Agreement, (d) the Collateral Trust
Indenture, (e) any deposit account control agreement or securities account
control agreement, if any, governing the Interest Reserve Account, Collection
Account or any investments made with the proceeds of any cash or other items
standing to the credit of the Interest Reserve Account or Collection Account and
(f) any other certificate, instrument, document or agreement executed or
delivered by the Borrower to the Collateral Trustee, the Agent or any Lender.

          "LONDON BUSINESS DAY" shall mean a day on which dealings in Dollars
are carried on in the London interbank market.

          "MATERIAL ADVERSE EFFECT" means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets or properties of the
Borrower, or (b) the ability of the Borrower to perform its obligations under
this Agreement, the Term Note and the other Loan Documents, or (c) the validity
or enforceability of this Agreement, the Term Note or the other Loan Documents.

          "MATURITY DATE" shall mean, with respect to the Term Loan, the earlier
of (i) January 15, 2013 or (ii) the date on which the principal amount of the
Term Loan has been declared or automatically have become due and payable
(whether by acceleration or otherwise).

          "MEMBER" means the Parent in its capacity as the sole member of the
Borrower.

          "MOODY'S" shall mean Moody's Investors Service, Inc.

          "MULTIEMPLOYER PLAN" means any Plan that is a "multiemployer plan" (as
such term is defined in section 4001(a)(3) of ERISA).

          "NOTE" shall mean the Term Note.

          "OBLIGATIONS" shall mean all amounts owing by the Borrower to the
Agent or any Lender pursuant to or in connection with this Agreement or any
other Loan Document, including without limitation, all principal, interest
(including any interest accruing after the filing of any petition in bankruptcy
or the commencement of any insolvency, reorganization or like proceeding
relating to the Borrower, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), all reimbursement
obligations, fees, expenses, indemnification and reimbursement payments, costs
and expenses (including all fees and expenses of counsel to the Agent and any
Lender incurred pursuant to this Agreement or any other Loan Document), whether
direct or indirect, absolute or contingent, liquidated or

                                       10

<PAGE>

unliquidated, now existing or hereafter arising hereunder or thereunder, and all
obligations to the Lender or any of its Affiliates, together with all renewals,
extensions, modifications or refinancings thereof.

          "OFFICER'S CERTIFICATE" means a certificate of a Senior Financial
Officer or of another officer of the Borrower whose responsibilities extend to
the subject matter of such certificate.

          "OTHER TAXES" shall mean any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement or any other
Loan Document.

          "PARENT" means Glatfelter Pulp Wood Company, a Maryland corporation
and a wholly-owned subsidiary of Glatfelter.

          "PARTICIPANT" shall have the meaning set forth in Section 9.04(d).

          "PAYMENT OFFICE" shall mean the office of the Agent located at
SunTrust Plaza, 303 Peachtree Street, Atlanta, Georgia 30303 or such other
location as to which the Agent shall have given written notice to the Borrower
and the Lenders.

          "PERMITTED INVESTMENTS" means (a) marketable direct obligations issued
by, or unconditionally guaranteed by, the United States Government or issued by
any agency thereof and backed by the full faith and credit of the United States,
in each case maturing within one year from the date of acquisition; (b)
certificates of deposit, time deposits, eurocurrency time deposits or overnight
bank deposits having maturities of six months or less from the date of
acquisition issued by any commercial bank organized under the laws of the United
States or any state thereof having combined capital and surplus and undivided
profits of not less than $1,000,000,000; (c) commercial paper of an issuer rated
at least A-1 by S&P or P-1 by Moody's, or carrying an equivalent rating by a
nationally recognized rating agency, if both of the two named rating agencies
cease publishing ratings of commercial paper issuers generally, and maturing
within six months from the date of acquisition; (d) repurchase obligations of
any commercial bank satisfying the requirements of clause (b) of this
definition, having a term of not more than 30 days, with respect to securities
issued or fully guaranteed or insured by the United States government; (e)
securities with maturities of one year or less from the date of acquisition
issued or fully guaranteed by any state, commonwealth or territory of the United
States, by any political subdivision or taxing authority of any such state,
commonwealth or territory or by any foreign government, the securities of which
state, commonwealth, territory, political subdivision, taxing authority or
foreign government (as the case may be) are rated at least A+ by S&P or A1 by
Moody's; (f) securities with maturities of six months or less from the date of
acquisition backed by standby letters of credit issued by any commercial bank
satisfying the requirements of clause (b) of this definition; (g) money market
mutual or similar funds that invest exclusively in assets satisfying the
requirements of clauses (a) through (f) of this definition; (h) money market
funds that (1) comply with the criteria set forth in SEC Rule 2a-7 under the
Investment Company

                                       11

<PAGE>

Act of 1940, as amended and (2) are rated A+ by S&P and A1 by Moody's and (iii)
have portfolio assets of at least $100,000,000.

          "PERSON" shall mean any individual, partnership, firm, corporation,
association, joint venture, limited liability company, trust or other entity, or
any Governmental Authority.

          "PLAN" means an "employee benefit plan" (as defined in section 3(3) of
ERISA) subject to Title I of ERISA that is or has been established or
maintained, or to which contributions are or have been made or required to be
made, by the Borrower or any ERISA Affiliate with respect to which the Borrower
or any ERISA Affiliate may have any liability.

          "PLEDGE AND SECURITY AGREEMENT" means that certain Pledge and Security
Agreement, dated as of January 15, 2008, between the Borrower and the Collateral
Trustee.

          "PREFERRED STOCK" means any class of capital stock of a Person that is
preferred over any other class of capital stock (or similar equity interests) of
such Person as to the payment of dividends or the payment of any amount upon
liquidation or dissolution of such Person.

          "PRO RATA SHARE" shall mean, with respect to any Lender at any time, a
percentage the numerator of which shall be the outstanding principal amount of
such Lender's portion of the Term Loan, and the denominator of which shall be
the outstanding principal amount of the Term Loan.

          "PROPERTY" or "PROPERTIES" means, unless otherwise specifically
limited, real or personal property of any kind, tangible or intangible, choate
or inchoate.

          "QUALIFIED PURCHASER" shall mean a "qualified purchaser" for purposes
of Section 3(c)(7) of the Investment Company Act and as defined in Section
2(a)(51) of the Investment Company Act.

          "REGULATION D" shall mean Regulation D of the Board of Governors of
the Federal Reserve System, as the same may be in effect from time to time, and
any successor regulations.

          "REFERENCE BANKS" means The Royal Bank of Scotland plc, SunTrust Bank,
JPMorgan Chase Bank N.A. and The Bank of New York.

          "RELATED PARTIES" shall mean, with respect to any specified Person,
such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates.

          "REQUIRED LENDERS" means, at any time, Lenders holding greater than
50% of the principal amount of the Term Loan then outstanding.

                                       12

<PAGE>

          "RESPONSIBLE OFFICER" shall mean the President, any Vice-President,
the Treasurer, the Secretary, any Senior Financial Officer and any other officer
of the Borrower with responsibility for the administration of the relevant
portion of this Agreement.

          "SENIOR FINANCIAL OFFICER" means the chief financial officer,
principal accounting officer, treasurer or comptroller of the Borrower.

          "S&P" shall mean Standard & Poor's.

          "SUBSIDIARY" shall mean, as to any Person, any other Person in which
such first Person or one or more of its Subsidiaries or such first Person and
one or more of its Subsidiaries owns sufficient equity or voting interests to
enable it or them (as a group) ordinarily, in the absence of contingencies, to
elect a majority of the directors (or Persons performing similar functions) of
such second Person, and any partnership or joint venture if more than a 50%
interest in the profits or capital thereof is owned by such first Person or one
or more of its Subsidiaries or such first Person and one or more of its
Subsidiaries (unless such partnership or joint venture can and does ordinarily
take major business actions without the prior approval of such Person or one or
more of its Subsidiaries). Unless the context otherwise clearly requires, any
reference to a "Subsidiary" is a reference to a Subsidiary of the Borrower.

          "SWAP CONTRACT" means (a) any and all interest rate swap transactions,
basis swap transactions, basis swaps, credit derivative transactions, forward
rate transactions, commodity swaps, commodity options, forward commodity
contracts, equity or equity index swaps or options, bond or bond price or bond
index swaps or options or forward foreign exchange transactions, cap
transactions, floor transactions, currency options, spot contracts or any other
similar transactions or any of the foregoing (including, but without limitation,
any options to enter into any of the foregoing), and (b) any and all
transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement.

          "SYNTHETIC LEASE" means, at any time, any lease (including leases that
may be terminated by the lessee at any time) of any property (a) that is
accounted for as an operating lease under GAAP and (b) in respect of which the
lessee retains or obtains ownership of the property so leased for United States
federal income tax purposes, other than any such lease under which such Person
is the lessor.

          "TAXES" means any income, stamp or other taxes, levies, imposts,
duties, charges, fees, deductions or withholdings, now or hereafter imposed,
levied, collected, withheld or assessed by any Governmental Authority, excluding
net income taxes and franchise taxes (imposed in lieu of net income taxes)
imposed on any Lender as a result of a present or former connection between such
holder and the jurisdiction of the Governmental Authority imposing such tax or
any political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from such holder having executed, delivered or
received a payment under, or enforced, this Agreement or any other Loan
Document).

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<PAGE>

          "TERM LOAN" shall have the meaning set forth in Section 2.01.

          "TERM LOAN COMMITMENT" shall mean, with respect to the Lender, the
obligation of the Lender to make the Term Loan hereunder on the Closing Date, in
a principal amount equal to $36,694,500.00.

          "TERM NOTE" shall mean a Term Note of the Borrower payable to the
order of a Lender, in substantially the form of Exhibit A attached hereto.

          "TYPE", when used in reference to the Term Loan, refers to whether the
rate of interest on such Loan is determined by reference to the Adjusted LIBO
Rate or the Base Rate.

          "U.S. GOVERNMENT OBLIGATIONS" means marketable direct obligations
issued by, or unconditionally guaranteed by, the United States Government or
issued by any agency thereof and backed by the full faith and credit of the
United States.

          "USA PATRIOT ACT" means United States Public Law 107-56, Uniting and
Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time,
and the rules and regulations promulgated thereunder from time to time in
effect.

          SECTION 1.02 ACCOUNTING TERMS AND DETERMINATION

     Unless otherwise defined or specified herein, all accounting terms used
herein shall be interpreted, all accounting determinations hereunder shall be
made, and all financial statements required to be delivered hereunder shall be
prepared, in accordance with GAAP as in effect from time to time, applied on a
basis consistent (except for such changes approved by the Borrower's independent
public accountants) with the most recent audited consolidated financial
statement of the Borrower delivered pursuant to Section 5.01(a).

          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". In the computation of periods of time
from a specified date to a later specified date, the word "from" means "from and
including" and the word "to" means "to but excluding". Unless the context
requires otherwise (i) 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 it was originally executed or as it
may from time to time be amended, supplemented or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth
herein), (ii) any reference herein to any Person shall be construed to include
such Person's successors and permitted assigns, (iii) the words "hereof",
"herein" and "hereunder" and words of similar import shall be construed to refer
to this Agreement as a whole and not to any particular provision

                                       14

<PAGE>

hereof, (iv) all references to Articles, Sections, Exhibits and Schedules shall
be construed to refer to Articles, Sections, Exhibits and Schedules to this
Agreement and (v) all references to a specific time shall be construed to refer
to the time in the city and state of the Agent's principal office, unless
otherwise indicated.

                 ARTICLE II. AMOUNT AND TERMS OF THE COMMITMENT

          SECTION 2.01 TERM LOAN COMMITMENT.

          (a) Subject to the terms and conditions set forth herein, the Lenders
agree to make a single loan (the "TERM LOAN" or the "LOAN") to the Borrower on
the Closing Date in a principal amount not to exceed the Term Loan Commitment;
provided, that if for any reason the full amount of the Term Loan Commitment is
not fully drawn on the Closing Date, the undrawn portion thereof shall
automatically be cancelled. Subject to Section 2.10 and Section 2.11, the Term
Loan shall be a Eurodollar Loan. The execution and delivery of this Agreement by
the Borrower and the satisfaction of all conditions precedent pursuant to
Article III shall be deemed to constitute the Borrower's request to borrow the
Term Loan on the Closing Date. The Term Loan (net of the Agent's fees and
expenses) shall be deposited in the Collection Account.

          (b) The Borrower's obligation to pay the principal of, and interest
on, the Term Loan shall be evidenced by the records of the Agent and the Lenders
and by the Term Notes. The entries made in such records and on the schedule
annexed to the Term Notes shall be prima facie evidence of the existence and
amounts of the obligations of the Borrower therein recorded; provided, that the
failure or delay of the Agent or any Lender in maintaining or making entries
into any such record or on such schedule or any error therein shall not in any
manner affect the obligation of the Borrower to repay the Term Loan (both
principal and unpaid accrued interest) in accordance with the terms of this
Agreement.

          SECTION 2.02 INTEREST ELECTION.

          If, following the conversion of the Term Loan into a Base Rate Loan
pursuant to Section 2.10 or 2.11, the Agent determines (which determination
shall be conclusive and binding upon the Borrower) that it is possible to
ascertain LIBOR or that it is no longer unlawful to maintain or continue the
Term Loan as a Eurodollar Loan, as the case may be, then the Agent shall
promptly notify the Borrower and the Lenders of such determination. Following
such determination and notice, the Borrower shall have the right to convert the
Term Loan from a Base Rate Loan to a Eurodollar Loan in accordance with the
provisions of this Section 2.02. To make an election pursuant to this Section
2.02, the Borrower shall give the Agent prior written notice (or telephonic
notice promptly confirmed in writing) that the Term Loan is to be converted into
a Eurodollar Loan prior to 2:00 p.m. (Atlanta, Georgia time) three (3) Business
Days prior to such conversion. Such notice of conversion shall be irrevocable
and shall specify the effective date of the election.

          SECTION 2.03 TERMINATION OF COMMITMENTS.

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<PAGE>

          Unless previously terminated, the Term Loan Commitment shall terminate
on the Closing Date upon the making of the Term Loan pursuant to Section 2.01.

          SECTION 2.04 REPAYMENT OF TERM LOAN.

          The Borrower unconditionally promises to pay to the Agent for the
account of the Lenders the principal amount of the Term Loan on the Maturity
Date.

          SECTION 2.05 OPTIONAL PREPAYMENTS.

          (a) The Borrower shall have the right at any time and from time to
time to prepay the Term Loan, in whole or in part, without premium or penalty,
by giving irrevocable written notice (or telephonic notice promptly confirmed in
writing) to the Agent no later than 11:00 a.m. not less than three (3) Business
Days prior to any such prepayment. Each such notice shall be irrevocable and
shall specify the proposed date of such prepayment and the principal amount of
the Term Loan or portion thereof to be prepaid. Upon receipt of any such notice,
the Agent shall promptly notify each Lender of the contents thereof and of such
Lender's Pro Rata Share of any such prepayment. Such amount shall be due and
payable on the date designated in such notice, together with accrued interest to
such date on the amount so prepaid in accordance with Section 2.07; provided,
that if the Term Loan is prepaid on a date other than the last day of an
Interest Period applicable thereto, the Borrower shall also pay all amounts
required pursuant to Section 2.13.

          (b) Unless a Default or an Event of Default has occurred and is
continuing, any prepayments made by the Borrower pursuant to Section 2.05(a)
above shall be applied as follows: first, to the Agent's fees and reimbursable
expenses then due and payable pursuant to any of the Loan Documents; second, to
all fees and reimbursable expenses of the Lenders then due and payable pursuant
to any of the Loan Documents, pro rata to the Lenders based on their respective
Pro Rata Shares of such expenses; third, to interest then due and payable on the
Term Loan, pro rata to the Lenders based on their respective Pro Rata Shares of
the Term Loan; and fourth, to the principal balance of the Term Loan, until the
same shall have been paid in full, pro rata to the Lenders based on their
respective Pro Rata Shares of the Term Loan.

          SECTION 2.06 MANDATORY PREPAYMENTS.

     In the event the Installment Note shall become immediately due and payable
for any reason, the Borrower shall prepay, within two Business Days following
such event, the entire principal amount of the Term Loan then outstanding, plus
all amounts required pursuant to Section 2.13. The Borrower will give the Agent
and each Lender written notice of a mandatory prepayment under this Section
2.06. Each such notice shall specify such date (which shall be a Business Day),
the aggregate principal amount of the Term Loan to be prepaid on such date, and
the interest to be paid on the prepayment date with respect to such principal
amount being prepaid, and shall be accompanied by a certificate of a Responsible
Officer as to all amounts required pursuant to Section 2.13 in connection with
such prepayment, setting forth the details of such computation.

          SECTION 2.07 INTEREST ON TERM LOAN.

                                       16

<PAGE>

          (a) The Borrower shall pay to the Agent interest on any Base Rate Loan
at the Base Rate in effect from time to time and on any Eurodollar Loan at the
Adjusted LIBO Rate for the applicable Interest Period in effect, plus, in each
case, the Applicable Margin in effect from time to time.

          (b) While an Event of Default exists, the Borrower shall pay interest
("DEFAULT INTEREST") at the rate otherwise applicable plus an additional 2% per
annum.

          (c) Interest on the principal amount of the Term Loan shall accrue
from and including the date made to but excluding the date of any repayment
thereof.

          (d) Interest on any outstanding Base Rate Loan shall be payable
semi-annually in arrears on the fifteenth day of each June and December, and on
the Maturity Date. Interest on any outstanding Eurodollar Loan shall be payable
on the last day of each Interest Period applicable thereto, and on the Maturity
Date. If the Term Loan is converted into a Loan of another Type or repaid or
prepaid, interest shall be payable on the date of such conversion or on the date
of any such repayment or prepayment (on the amount repaid or prepaid) thereof.
All Default Interest shall be payable on demand.

          (e) The Agent shall determine each interest rate applicable to the
Term Loan hereunder and shall promptly notify the Borrower of such rate in
writing (or by telephone, promptly confirmed in writing). Any such determination
shall be conclusive and binding for all purposes, absent manifest error.

          SECTION 2.08 FEES.

          The Borrower shall pay to the Agent the fees set forth in the Fee
Letter.

          SECTION 2.09 COMPUTATION OF INTEREST.

          All computations of interest hereunder (other than interest based on
the Base Rate) shall be made on the basis of a year of 360 days for the actual
number of days (including the first day but excluding the last day) occurring in
the period for which such interest or fees are payable (to the extent computed
on the basis of days elapsed). Interest based on the Base Rate shall be
calculated on the basis of a 365-day year (or 366-day year, as the case may be)
for the actual days elapsed. Each determination by the Agent of an interest
amount hereunder shall be made in good faith and, except for manifest error,
shall be final, conclusive and binding for all purposes.

          SECTION 2.10 INABILITY TO DETERMINE INTEREST RATES.

          If prior to the commencement of any Interest Period, the Agent shall
have determined (which determination shall be conclusive and binding upon the
Borrower) that, by reason of circumstances affecting the relevant interbank
market, adequate means do not exist for ascertaining LIBOR for such Interest
Period, the Agent shall give written notice (or telephonic

                                       17

<PAGE>

notice, promptly confirmed in writing) to the Borrower and to the Lenders as
soon as practicable thereafter. Until the Agent shall notify the Borrower and
the Lenders that the circumstances giving rise to such notice no longer exist,
(i) the obligations of the Lenders to maintain the Term Loan as a Eurodollar
Loan shall be suspended and (ii) the Term Loan shall be converted into a Base
Rate Loan on the last day of the then current Interest Period applicable thereto
unless the Borrower prepays the Term Loan in accordance with this Agreement.

          SECTION 2.11 ILLEGALITY.

     If any Change in Law shall make it unlawful or impossible for any Lender to
make, maintain or fund any Eurodollar Loan and such Lender shall so notify the
Agent, the Agent shall promptly give notice thereof to the Borrower and the
other Lenders, whereupon until such Lender notifies the Agent and the Borrower
that the circumstances giving rise to such suspension no longer exist, the
obligation of the Lenders to continue the Term Loan as a Eurodollar Loan, shall
be suspended. The Term Loan shall be converted to a Base Rate Loan either (i) on
the last day of the then current Interest Period applicable to such Eurodollar
Loan if such Lender may lawfully continue to maintain the Term Loan to such date
or (ii) immediately if such Lender shall determine that it may not lawfully
continue to maintain such Eurodollar Loan to such date. Notwithstanding the
foregoing, the affected Lender shall, prior to giving such notice to the Agent,
designate a different Applicable Lending Office if such designation would avoid
the need for giving such notice and if such designation would not otherwise be
disadvantageous to such Lender in the good faith exercise of its discretion.

          SECTION 2.12 INCREASED COSTS.

          (a) If any Change in Law shall:

               (i) impose, modify or deem applicable any reserve, special
deposit or similar requirement that is not otherwise included in the
determination of the Adjusted LIBO Rate hereunder 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

               (ii) impose on any Lender or the eurodollar interbank market any
other condition affecting this Agreement or any Eurodollar Loan made by such
Lender or any participation therein;

and the result of either of the foregoing is to increase the cost to such Lender
of making or maintaining a Eurodollar Loan or to reduce the amount received or
receivable by such Lender hereunder (whether of principal, interest or any other
amount), then the Borrower shall promptly pay, as set forth in paragraph (c)
below, to the Agent for the account of such Lender, additional amount or amounts
sufficient to compensate such Lender for such additional costs incurred or
reduction suffered.

          (b) If any Lender shall have determined that on or after the date of
this Agreement any Change in Law regarding capital requirements has or would
have the effect of reducing the rate of return on such Lender's capital (or on
the capital of such Lender's parent corporation) as

                                       18

<PAGE>

a consequence of its obligations hereunder to a level below that which such
Lender or such Lender's parent corporation could have achieved but for such
Change in Law (taking into consideration such Lender's policies or the policies
of such Lender's parent corporation with respect to capital adequacy) then, from
time to time, as set forth in paragraph (c) below, the Borrower shall pay to
such Lender such additional amounts as will compensate such Lender or such
Lender's parent corporation for any such reduction suffered.

          (c) A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or such Lender's parent corporation, as the
case may be, specified in paragraph (a) or (b) of this Section 2.12 shall be
delivered to the Borrower (with a copy to the Agent) and shall be conclusive,
absent manifest error. The Borrower shall pay any such Lender such amount or
amounts within 10 days after receipt thereof; provided that the Borrower shall
not be required to make any such payment prior to the last day of the then
current Interest Period if Borrower does not have funds available to make such
payment.

          (d) Failure or delay on the part of any Lender to demand compensation
pursuant to this Section 2.12 shall not constitute a waiver of such Lender's
right to demand such compensation.

          (e) If any Lender shall seek any additional amount or amounts under
this Section 2.12, at the written request of the Borrower, such Lender shall
designate a different Applicable Lending Office if such designation would avoid
the need for or would reduce such amount or amounts and if such designation
would not otherwise be disadvantageous to such Lender in the good faith exercise
of its discretion.

          SECTION 2.13 FUNDING INDEMNITY.

     In the event of (a) the payment of any principal of a Eurodollar Loan other
than on the last day of the Interest Period applicable thereto (including as a
result of an Event of Default), or (b) the conversion of a Eurodollar Loan other
than on the last day of the Interest Period applicable thereto, or (c) the
failure by the Borrower to prepay any Eurodollar Loan on the date specified in
any applicable notice (regardless of whether such notice is withdrawn or
revoked), then, in any such event, the Borrower shall compensate each Lender,
within five (5) Business Days after written demand from such Lender, for any
loss, cost or expense attributable to such event. In the case of a Eurodollar
Loan, such loss, cost or expense shall be deemed to include an amount determined
by such Lender to be the excess, if any, of (A) the amount of interest that
would have accrued on the principal amount of such Eurodollar Loan if such event
had not occurred at the Adjusted LIBO Rate applicable to such Eurodollar Loan
for the period from the date of such event to the last day of the then current
Interest Period therefor over (B) the amount of interest that would accrue on
the principal amount of such Eurodollar Loan for the same period if the Adjusted
LIBO Rate were set on the date such Eurodollar Loan was prepaid or converted. A
certificate as to any additional amount payable under this Section 2.13
submitted to the Borrower by any Lender (with a copy to the Agent) shall be
conclusive, absent manifest error.

          SECTION 2.14 TAXES.

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<PAGE>

          (a) Any and all payments by or on account of any obligation of the
Borrower hereunder 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 2.14) the Agent or any Lender (as the case may be) shall
receive 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 Agent and each Lender, within ten
(10) Business Days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Agent or such Lender, as the case
may be, on or with respect to any payment by or on account of any obligation of
the Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 2.14) and any
penalties, interest and any 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 by the Agent on its own behalf or on behalf of a Lender,
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 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 Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the Code or any treaty to which the United
States is a party, with respect to payments under this Agreement shall deliver
to the Borrower (with a copy to the 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. Without limiting
the generality of the foregoing, each Foreign Lender agrees that it will deliver
to the Agent and the Borrower (or in the case of a Participant, to the Lender
from which the related participation shall have been purchased), as appropriate,
two (2) duly completed copies of (i) Internal Revenue Service Form W-8 ECI, or
any successor form thereto, certifying that the payments received from the
Borrower hereunder are effectively connected with such Foreign Lender's conduct
of a trade or business in the United States; or (ii) Internal Revenue Service
Form W-8 BEN, or any successor form thereto, certifying that such Foreign Lender
is entitled to benefits under an income tax treaty to which the United States is
a party which reduces the rate of withholding tax on payments of interest; or
(iii) Internal Revenue Service Form W-8 BEN, or any successor form

                                       20

<PAGE>

prescribed by the Internal Revenue Service, together with a certificate (A)
establishing that the payment to the Foreign Lender qualifies as "portfolio
interest" exempt from U.S. withholding tax under Code Section 871(h) or 881(c),
and (B) stating that (1) the Foreign Lender is not a bank for purposes of Code
Section 881(c)(3)(A), or the obligation of the Borrower hereunder is not, with
respect to such Foreign Lender, a loan agreement entered into in the ordinary
course of its trade or business, within the meaning of that section; (2) the
Foreign Lender is not a 10% shareholder of the Borrower within the meaning of
Code Section 871(h)(3) or 881(c)(3)(B); and (3) the Foreign Lender is not a
controlled foreign corporation that is related to the Borrower within the
meaning of Code Section 881(c)(3)(C); or (iv) such other Internal Revenue
Service forms as may be applicable to the Foreign Lender, including Forms W-8
IMY or W-8 EXP. Each such Foreign Lender shall deliver to the Borrower and the
Agent such forms on or before the date that it becomes a party to this Agreement
(or in the case of a Participant, on or before the date such Participant
purchases the related participation) and periodically thereafter at the time or
times prescribed by applicable laws, including without limitation, promptly upon
the obsolescence or invalidity of any form previously delivered by such Foreign
Lender. Each such Foreign Lender shall promptly notify the Borrower and the
Agent at any time that it determines that it is no longer in a position to
provide any previously delivered certificate to the Borrower (or any other form
of certification adopted by the Internal Revenue Service for such purpose).

          (f) If a Lender or the Agent determines in its sole discretion that it
is entitled to claim a refund from a taxing authority in respect of amounts paid
by a Borrower pursuant to this Section 2.14, such Lender or Agent shall promptly
notify Borrower and Agent (as applicable) of the availability of such claim and,
if the Lender or the Agent (as applicable) determines in its sole discretion
that making such refund claim could not reasonably be expected to have an
adverse effect on its Taxes or business operations, shall make such claim. If
the Agent or a Lender determines, in its sole discretion, that it has received a
refund against any Taxes (including without limitation by way of offset) as to
which it has been indemnified by the Borrower or with respect to which Borrower
has paid additional amounts pursuant to this Section 2.14, it shall pay over
such refund or credit to Borrower (but only to the extent of amounts paid by
Borrower under this Section 2.14), net of all out-of-pocket expenses of such
Lender or the Agent and without interest (other than any interest paid by the
relevant taxing authority with respect to such refund); provided, however, that
the Borrower, upon the request of the Agent or such Lender, agrees to repay the
amount paid over to the Borrower to such Lender or the Agent in the event such
Lender or the Agent is required to repay such refund to such taxing authority.
This Section shall not be construed to require the Agent or any Lender to make
available its Tax returns (or any other information relating to its Taxes that
it deems confidential) to the Borrower or any other Person.

          (g) If any Lender shall seek any additional amount or amounts under
this Section 2.14, at the written request of the Borrower, such Lender shall
designate a different Applicable Lending Office if such designation would avoid
the need for or would reduce such amount or amounts and if such designation
would not otherwise be disadvantageous to such Lender in the good faith exercise
of its discretion.

          SECTION 2.15 PAYMENTS GENERALLY; PRO RATA TREATMENT; SHARING OF
SET-OFFS.

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<PAGE>

          (a) The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or otherwise) to the Agent prior
to noon (Atlanta, Georgia time) on the date when due, in immediately available
funds, free and clear of any rights of set-off or counterclaim. Any amounts
received after such time on any date may, in the discretion of the 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 Agent at
the Payment Office. The 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 hereunder 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 made payable for the period of such extension. All
payments hereunder shall be made in Dollars.

          (b) If at any time insufficient funds are received by and available to
the Agent to pay fully all amounts of principal, interest and other amounts then
due hereunder, such funds shall be applied (i) first, towards payment of
interest and other amounts then due hereunder, ratably among the parties
entitled thereto in accordance with the amounts of interest and other amounts
then due to such parties, and (ii) second, towards payment of principal then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal 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 the Term Loan that would result in such Lender receiving payment of
a greater proportion of the aggregate amount of its Pro Rata Share of the Term
Loan 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 Pro Rata Shares of the Term Loan 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 Pro Rata Shares of the
Term Loan; 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 the Term Loan 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 Agent shall have received notice from the Borrower
prior to the date on which any payment is due to the Agent for the account of
the Lenders hereunder that the Borrower will not make such payment, the Agent
may assume that the Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption,

                                       22

<PAGE>

distribute to the Lenders the amount or amounts due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders severally
agrees to repay to the Agent forthwith on demand the amount so distributed to
such Lender 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 Agent,
at the greater of the Federal Funds Rate and a rate determined by the Agent in
accordance with banking industry rules on interbank compensation.

          (e) If any Lender shall fail to make any payment required to be made
by it, then the Agent may, in its discretion (notwithstanding any contrary
provision hereof), apply any amounts thereafter received by the Agent for the
account of such Lender to satisfy such Lender's obligations under such Sections
until all such unsatisfied obligations are fully paid.

                        ARTICLE III. CONDITIONS PRECEDENT

     The obligations of the Lenders to make the Term Loan are subject to the
fulfillment to such Lenders' satisfaction, prior to or at the Closing, of the
following conditions:

          SECTION 3.01 REPRESENTATIONS AND WARRANTIES.

     The representations and warranties of the Borrower in this Agreement and
the other Loan Documents shall be correct when made and at the time of the
Closing.

          SECTION 3.02 PERFORMANCE; NO DEFAULT.

     The Borrower shall have performed and complied with all agreements and
conditions contained in this Agreement required to be performed or complied with
by it prior to or at the Closing, and after giving effect to the making of the
Term Loan (and the application of the proceeds thereof as contemplated by
Section 4.14) no Default or Event of Default shall have occurred and be
continuing.

          SECTION 3.03 COMPLIANCE CERTIFICATES.

          (a) Officer's Certificate. The Borrower shall have delivered to such
Lender an Officer's Certificate, dated the date of the Closing, certifying that
the conditions specified in Sections 3.01, 3.02, 3.05 and 3.09 have been
fulfilled.

          (b) Secretary's Certificate. The Borrower shall have delivered to such
Lender a certificate of its Secretary or other Responsible Officer, dated the
date of Closing, certifying as to the resolutions attached thereto and other
company proceedings relating to the authorization, execution and delivery of
this Agreement and the other Loan Documents.

          SECTION 3.04 OPINIONS OF COUNSEL.

          (a) Such Lender shall have received opinions in form and substance
reasonably satisfactory to such Lender, dated the date of the Closing:

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          (i) from Saul & Ewing LLP, counsel to the Borrower, the Parent and
Glatfelter, covering such Delaware, Maryland and Pennsylvania law matters
incident to the entry into this Agreement, the Capitalization Transaction, the
issuance of the Glatfelter Securities and the other transactions contemplated
hereby as such Lender or its counsel may reasonably request (and the Borrower
hereby instructs its counsel to deliver such opinion to the Lenders);

          (ii) from Debevoise & Plimpton LLP, counsel for the Borrower, the
Parent and Glatfelter, covering such New York and Federal law matters incident
to the entry into this Agreement, the Capitalization Transaction, the issuance
of the Glatfelter Securities and the other transactions contemplated hereby as
such Lender or its counsel may reasonably request (and the Borrower hereby
instructs its counsel to deliver such opinion to the Lenders);

          (iii) from Debevoise & Plimpton LLP, counsel for the Borrower,
regarding the nonconsolidation of the Borrower in a bankruptcy of Glatfelter or
any of its Subsidiaries and the true sale or true contribution of the assets of
the Parent sold or contributed pursuant to the Capitalization Transaction.

          (b) Such Lender shall have received copies of the following opinions
dated the date of issuance of the Installment Note and Letter of Credit:

          (i) from Dundas & Wilson CS LLP, counsel to the LC Issuer, covering
certain Scottish law matters relating to the LC Issuer and the Letter of Credit;

          (ii) from Latham & Watkins LLP, counsel to the LC Issuer, covering
certain New York and Federal law matters relating to the LC Issuer and the
Letter of Credit;

          (iii) from Sutherland, Asbill & Brennan LLP, counsel to the
Installment Note Issuer, covering certain matters relating to the Installment
Note Issuer and the Installment Note; and

          (iv) from Sutherland, Asbill & Brennan LLP, counsel to the Installment
Note Issuer, regarding the nonconsolidation of the Installment Note Issuer in a
bankruptcy of its parent company or of its Subsidiaries.

          SECTION 3.05 INSTALLMENT SALE TRANSACTION; INITIAL CAPITALIZATION
TRANSACTION.

     The Installment Sale Transaction and the Initial Capitalization Transaction
shall have been consummated.

          SECTION 3.06 TRANSACTION DOCUMENTS.

     The Collateral Trustee shall have received (i) this Agreement, executed by
the Borrower and each Lender, (ii) the Pledge and Security Agreement, executed
by the Borrower and the Collateral Trustee, (iii) the Collateral Trust
Indenture, executed by the Borrower and the Collateral Trustee and (iv) the
other Loan Documents.

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          SECTION 3.07 COLLATERAL.

          (a) Installment Note. The Collateral Trustee shall have received the
Installment Note, together with a transfer instrument executed by the Borrower
naming the Collateral Trustee as transferee. The Installment Note and instrument
of transfer shall have been submitted to the "Paying Agent" referenced in the
Installment Note for registration of transfer, and such Paying Agent shall have
registered such transfer, recorded the transfer on the Installment Note and
delivered the Installment Note to the Collateral Trustee.

          (b) Letter of Credit. The Collateral Trustee shall have received the
Letter of Credit, together with a "Request for Full Transfer" referenced therein
executed by the Borrower naming the Collateral Trustee as transferee. The Letter
of Credit and such Request for Full Transfer shall have been submitted to the LC
Bank, and the LC Bank shall have delivered to the Collateral Trustee the Letter
of Credit duly endorsed for transfer and accompanied by the LC Bank's customary
letter of transfer to the Collateral Trustee.

          (c) Glatfelter Securities. The Collateral Trustee shall have received
the Glatfelter Securities, together with undated transfer instruments executed
by the Borrower.

          (d) Contribution Agreement. The Collateral Trustee shall have received
a fully executed copy of the Contribution Agreement, certified by a Responsible
Officer of the Borrower as a true and complete copy thereof.

          (e) Evidence of Perfection; Uniform Commercial Code Financing
Statement. The Collateral Trustee shall have received such evidence (including,
without limitation, evidence of the filing of appropriate UCC-1 financing
statements) as the Collateral Trustee may require as to the perfection of the
security interest created by the Pledge and Security Agreement in the
Collateral.

          (f) Lien Searches. The Collateral Trustee shall have received written
reports of Uniform Commercial Code, judgment and tax lien searches of the Parent
and the Borrower in all appropriate jurisdictions, showing the absence of any
liens attaching to any of the Collateral.

          SECTION 3.08 INTEREST RESERVE ACCOUNT AND COLLECTION ACCOUNT.

     The Collateral Trustee shall have received evidence of (a) the
establishment of the Interest Reserve Account, and (b) the establishment of the
Collection Account.

          SECTION 3.09 INTEREST RESERVE AMOUNT.

     The Collateral Trustee shall have received evidence, in the form of a
certification by the Borrower pursuant to Section 3.03(a), that the Interest
Reserve Amount will be deposited into the Interest Reserve Account immediately
following the Closing.

          SECTION 3.10 TERM LOAN PERMITTED BY APPLICABLE LAW, ETC.

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<PAGE>

     On the date of the Closing such Lender's making of the Term Loan shall (a)
be permitted by the laws and regulations of each jurisdiction to which such
Lender is subject, (b) not violate any applicable law or regulation (including,
without limitation, Regulation T, U or X of the Board of Governors of the
Federal Reserve System) and (c) not subject such Lender to any tax, penalty or
liability under or pursuant to any applicable law or regulation, which law or
regulation was not in effect on the date hereof. If requested by such Lender,
such Lender shall have received an Officer's Certificate certifying as to such
matters of fact as such Lender may reasonably specify to enable such Lender to
determine whether such purchase is so permitted.

          SECTION 3.11 PAYMENT OF SPECIAL COUNSEL FEES.

     The Borrower shall have paid on or before the Closing or made provision for
the payment on or before the Closing of the fees, charges and disbursements of
the Lender's special counsel to the extent reflected in a statement of such
counsel rendered to the Borrower at least two Business Days prior to the
Closing.

          SECTION 3.12 FUNDING INSTRUCTIONS.

     At least three Business Days prior to the date of the Closing, the Agent
shall have received written instructions signed by a Responsible Officer
providing wire instructions for the disbursement of the proceeds of the Term
Loan.

          SECTION 3.13 PROCEEDINGS AND DOCUMENTS.

     All corporate and other proceedings in connection with the transactions
contemplated by this Agreement and all documents and instruments incident to
such transactions shall be satisfactory to such Lender, and such Lender shall
have received all such counterpart originals or certified or other copies of
such documents as such Lender may reasonably request.

                   ARTICLE IV. REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Agent and each Lender as
follows:

          SECTION 4.01 ORGANIZATION; POWER AND AUTHORITY.

     The Borrower is a limited liability company duly formed, validly existing
and in good standing under the laws of its jurisdiction of formation, and is
duly qualified as a foreign limited liability company and is in good standing in
each jurisdiction in which such qualification is required by law. The Borrower
has the limited liability company power and authority to own or hold under lease
the properties it purports to own or hold under lease, to transact the business
it transacts and proposes to transact, to execute and deliver this Agreement,
the Note and the other Loan Documents and to perform the provisions hereof and
thereof.

          SECTION 4.02 AUTHORIZATION, ETC.

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<PAGE>

     This Agreement, the Note and the other Loan Documents have been duly
authorized by all necessary limited liability company action on the part of the
Borrower, and this Agreement and the other Loan Documents (other than the Note)
constitute, and upon execution and delivery thereof the Note will constitute,
legal, valid and binding obligations of the Borrower enforceable against the
Borrower in accordance with their terms, except as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforcement of creditors' rights generally and
(ii) general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

          SECTION 4.03 DISCLOSURE.

     This Agreement, the other Loan Documents and the Closing Date Balance Sheet
(this Agreement, the other Loan Documents, and such Closing Date Balance Sheet
being referred to, collectively, as the "Disclosure Documents"), taken as a
whole, do not contain any material misstatement of fact or omit to state any
material fact necessary to make the statements therein not misleading in light
of the circumstances under which they were made.

          SECTION 4.04 ORGANIZATION AND OWNERSHIP OF SHARES OF SUBSIDIARIES.

     The Borrower has no Subsidiaries.

          SECTION 4.05 CLOSING DATE BALANCE SHEET; LIABILITIES.

     The Borrower has delivered to each Lender a copy of the Closing Date
Balance Sheet. The Closing Date Balance Sheet fairly presents in all material
respects the financial position of the Borrower as of the Closing Date and has
been prepared in accordance with GAAP. The Borrower does not have any
liabilities that are not disclosed on Closing Date Balance Sheet or otherwise
disclosed in the Disclosure Documents.

          SECTION 4.06 COMPLIANCE WITH LAWS, OTHER INSTRUMENTS, ETC.

     The execution, delivery and performance by the Borrower of this Agreement
and the other Loan Documents will not (i) contravene, result in any breach of,
or constitute a default under, or result in the creation of any Lien in respect
of any property of the Borrower under, any indenture, mortgage, deed of trust,
loan, purchase or credit agreement, lease, the Borrower's certificate of
formation or operating agreement, or any other agreement or instrument to which
the Borrower is bound or by which the Borrower or any of its properties may be
bound or affected, (ii) conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental Authority applicable to the Borrower or (iii) violate
any provision of any statute or other rule or regulation of any Governmental
Authority applicable to the Borrower.

          SECTION 4.07 GOVERNMENTAL AUTHORIZATIONS, ETC.

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<PAGE>

     No consent, approval or authorization of, or registration, filing or
declaration with, any Governmental Authority is required in connection with the
execution, delivery or performance by the Borrower of this Agreement or the
other Loan Documents.

          SECTION 4.08 LITIGATION; OBSERVANCE OF STATUTES AND ORDERS.

          (a) There are no actions, suits, investigations or proceedings pending
or, to the knowledge of the Borrower, threatened against or affecting the
Borrower or any property of the Borrower in any court or before any arbitrator
of any kind or before or by any Governmental Authority.

          (b) The Borrower is not in default under any order, judgment, decree
or ruling of any court, arbitrator or Governmental Authority or is in violation
of any applicable law, ordinance, rule or regulation (including without
limitation the USA Patriot Act) of any Governmental Authority.

          SECTION 4.09 TAXES.

     The Borrower has filed all income tax returns that are required to have
been filed in any jurisdiction, and has paid all taxes shown to be due and
payable on such returns and all other taxes and assessments payable by it, to
the extent such taxes and assessments have become due and payable and before
they have become delinquent. The Borrower has been and will be characterized and
treated as an entity disregarded as separate for income tax purposes.

          SECTION 4.10 TITLE TO PROPERTY.

     The Borrower has good and sufficient title to its properties, including all
such properties reflected in the Closing Date Balance Sheet, in each case free
and clear of Liens.

          SECTION 4.11 LICENSES, PERMITS, ETC.

     The Borrower owns or possesses all licenses, permits, franchises,
authorizations, patents, copyrights, proprietary software, service marks,
trademarks and trade names, or rights thereto, required for the conduct of its
business, without known conflict with the rights of others.

          SECTION 4.12 COMPLIANCE WITH ERISA.

          (a) The Borrower and each ERISA Affiliate have operated and
administered each Plan in compliance in all material respects with all
applicable laws. Neither the Borrower nor any ERISA Affiliate has any material
liability pursuant to Title I or IV of ERISA with respect to a Plan or any
material liability under the penalty or excise tax provisions of the Code
relating to employee benefit plans (as defined in section 3 of ERISA), and no
event, transaction or condition has occurred or exists that would reasonably be
expected to result in the incurrence of any such material liability by the
Borrower or any ERISA Affiliate, or in the imposition of any Lien on any of the
rights, properties or assets of the Borrower or any ERISA Affiliate, in either

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<PAGE>

case pursuant to Title I or IV of ERISA or to such penalty or excise tax
provisions or to section 401(a)(29) or 412 of the Code or section 4068 of ERISA.

          (b) The present value of the aggregate benefit liabilities under each
of the Plans subject to Title IV of ERISA (other than Multiemployer Plans),
determined as of the end of such Plan's most recently ended plan year on the
basis of the actuarial assumptions specified for funding purposes in such Plan's
most recent actuarial valuation report, did not exceed the aggregate current
value of the assets of such Plan allocable to such benefit liabilities, in each
case as set forth in such most recent actuarial valuation report. In addition,
if each of the Plans were to terminate as of such Plan's most recently ended
plan year in a "standard termination" (within the meaning of Section 4041 of
ERISA), the additional contributions required to be made by the contributing
sponsor of such Plan in connection with such termination would not reasonably be
expected to be material.

          (c) The Borrower and its ERISA Affiliates have not incurred withdrawal
liabilities under section 4201 or 4204 of ERISA in respect of any Multiemployer
Plan which have not been satisfied in full, and no event, transaction or
condition has occurred or exists that would reasonably be expected to result in
the assessment of any additional material withdrawal liabilities under section
4201 or section 4204 of ERISA in respect of any Multiemployer Plan, and neither
the Borrower nor its ERISA Affiliates has any material contingent withdrawal
liabilities under section 4204 of ERISA in respect of any Multiemployer Plan.

          (d) The Borrower does not have any expected postretirement benefit
obligation determined as of the last day of the Borrower's most recently ended
fiscal year in accordance with Financial Accounting Standards Board Statement
No. 106, without regard to liabilities attributable to continuation coverage
mandated by section 4980B of the Code.

          (e) Assuming that no Lender funds any portion of the Term Loan with
"plan assets" (within the meaning of Section 3(42) of ERISA), the execution and
delivery of this Agreement and the consummation of the transactions contemplated
hereby will not involve any transaction that is subject to the prohibitions of
section 406 of ERISA or in connection with which a tax could be imposed pursuant
to section 4975(c)(1)(A) (D) of the Code.

          SECTION 4.13 [Reserved]

          SECTION 4.14 USE OF PROCEEDS; MARGIN REGULATIONS.

     No part of the proceeds from the Term Loan hereunder will be used, directly
or indirectly, for the purpose of buying or carrying any margin stock within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 221), or for the purpose of buying or carrying or trading in any
securities under such circumstances as to involve the Borrower in a violation of
Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a
violation of Regulation T of said Board (12 CFR 220). None of the assets of the
Borrower constitute margin stock, and the Borrower does not have any present
intention that margin stock will constitute more any portion of such assets. As
used in this Section, the terms

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<PAGE>

"margin stock" and "purpose of buying or carrying" shall have the meanings
assigned to them in said Regulation U.

          SECTION 4.15 INDEBTEDNESS.

          (a) The Borrower has no outstanding Indebtedness other than the Term
Loan.

          (b) The Borrower is not a party to, or otherwise subject to any
provision contained in, any instrument or agreement (other than its certificate
of formation, its operating agreement and this Agreement) which limits the
amount of, or otherwise imposes restrictions on the incurring of, Indebtedness
of the Borrower, except as disclosed on Schedule 4.15.

          SECTION 4.16 SOLVENCY.

     After giving effect to the Term Loan pursuant to this Agreement, the
Borrower will be "solvent" and for purposes hereof, the term "solvent" shall
mean that (a) the fair value of the property of the Borrower is greater than the
total amount of its liabilities (including contingent liabilities), (b) the
present fair saleable value of its property is not less than the amount that
will be required to pay the probable liability on its debts as they become
absolute and matured, (c) the Borrower does not intend to, and does not believe
that it will, incur debts or liabilities beyond its ability to pay as such debts
and liabilities mature, and (d) the Borrower is not engaged in a business for
which its property would constitute an unreasonably small capital.

          SECTION 4.17 ACTIVITIES.

     Since the date of formation of the Borrower, the Borrower has taken all
steps reasonably required by its certificate of formation and limited liability
company agreement to continue its identity as a separate legal entity and to
make it apparent to other Persons that the Borrower is an entity with assets and
liabilities distinct from those of any other Person. Without limiting the
foregoing, since the date of formation of the Borrower, the Borrower has (i)
been a limited purpose company whose activities have been restricted in its
certificate of formation and operating agreement, (ii) maintained books,
records, accounts, assets and financial statements separate from any other
Person and otherwise held itself out as an entity separate from any other
Person, (iii) not identified itself as a division of any other person or
commingled its funds with any other person, (iv) conducted its own business and
held its own assets in its own name, (v) observed all formalities required by
its certificate of formation and operating agreement, (vi) paid its own
employees and liabilities out of its own funds, (vii) allocated fairly and
reasonably overhead for any shared office space, (viii) maintained adequate
capital, to the extent necessary in light of its business operations, and (ix)
been treated as an entity disregarded as separate for income tax purposes.

          SECTION 4.18 FOREIGN ASSETS CONTROL REGULATIONS, ETC.

          (a) Neither the entry into this Agreement, the making of the Term Loan
nor its use of the proceeds thereof will violate the Trading with the Enemy Act,
as amended, or any of

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<PAGE>

the foreign assets control regulations of the United States Treasury Department
(31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or
executive order relating thereto.

          (b) The Borrower (i) is not a Person described or designated in the
Specially Designated Nationals and Blocked Persons List of the Office of Foreign
Assets Control or in Section 1 of the Anti Terrorism Order and (ii) does not
engage in any dealings or transactions with any such Person. The Borrower is in
compliance, in all material respects, with the USA Patriot Act.

          (c) No part of the proceeds from the Term Loan will be used, directly
or indirectly, for any payments to any governmental official or employee,
political party, official of a political party, candidate for political office,
or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United
States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases
that such Act applies to the Borrower.

          SECTION 4.19 INVESTMENT COMPANY ACT.

     The Borrower is not subject to regulation under the Investment Company Act
of 1940, as amended.

                        ARTICLE V. AFFIRMATIVE COVENANTS

          The Borrower covenants and agrees that so long as the principal of and
interest on any Loan or any fee remains unpaid:

          SECTION 5.01 FINANCIAL AND BUSINESS INFORMATION.

     The Borrower shall deliver to the Agent:

          (a) Semi-Annual Statements -- not later 30 days following the close of
each six-month period ending June 30 and December 31 of each year, duplicate
copies of,

          (i)  a balance sheet of the Borrower, as at the end of such period,
               and

          (ii) statements of cash flows of the Borrower, for such period,

     in reasonable detail, prepared in accordance with GAAP, and accompanied by
a certificate of a Responsible Officer, which certificate shall state that such
financial statements present fairly, in all material respects, the financial
position of the Borrower and its cash flows and have been prepared in conformity
with GAAP;

          (b) Notice of Default or Event of Default -- promptly, and in any
event within five days after a Responsible Officer becoming aware of the
existence of any Default or

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<PAGE>

Event of Default, a written notice specifying the nature and period of existence
thereof and what action the Borrower is taking or proposes to take with respect
thereto;

          (c) [Reserved]

          (d) Communications Regarding Collateral -- with reasonable promptness
following the Borrower's receipt thereof, any and all notices and other
communications received by the Borrower under or in connection with the
Installment Note or the Letter of Credit (including, without limitation, any
"Event of Default" under the Installment Note);

          (e) Litigation -- promptly, and in any event within five days after
the filing or commencement thereof, a written notice of action, suit or
proceeding by or before any arbitrator or Governmental Authority against or
affecting the Borrower; and

          (f) Requested Information -- with reasonable promptness, such other
data and information relating to the business, operations, affairs, financial
condition, assets or properties of the Borrower or relating to the ability of
the Borrower to perform its obligations under this Agreement and the other Loan
Documents as from time to time may be reasonably requested by the Agent.

          SECTION 5.02 OFFICER'S CERTIFICATE.

     Each set of financial statements delivered to the Agent pursuant to Section
5.01(a) shall be accompanied by a certificate of a Responsible Officer setting
forth a statement that a Responsible Officer reviewed the relevant terms hereof
and has made, or caused to be made, under his or her supervision, a review of
the transactions and conditions of the Borrower from the beginning of the
semi-annual period covered by the statements then being furnished to the date of
the certificate and that such review shall not have disclosed the existence
during such period of any condition or event that constitutes a Default or an
Event of Default or, if any such condition or event existed or exists,
specifying the nature and period of existence thereof and what action the
Borrower shall have taken or proposes to take with respect thereto.

          SECTION 5.03 VISITATION.

     The Borrower shall permit the Agent:

          (a) No Default -- if no Default or Event of Default then exists, at
the expense of the Lenders and upon reasonable prior notice to the Borrower, to
discuss the affairs, finances and accounts of the Borrower with the Borrower's
officers at such reasonable times and as often as may be reasonably requested in
writing; and

          (b) Default -- if a Default or Event of Default then exists, at the
expense of the Borrower to examine the Borrower's books of account, records,
reports and other papers, to make copies and extracts therefrom, and to discuss
the affairs, finances and accounts of the Borrower with its officers and
independent public accountants (and by this provision the

                                       32

<PAGE>

Borrower authorizes said accountants to discuss the affairs, finances and
accounts of the Borrower), all at such times and as often as may be requested.

          SECTION 5.04 COMPLIANCE WITH LAW.

     The Borrower will comply with all laws, ordinances or governmental rules or
regulations to which it is subject, including, without limitation, ERISA and the
USA Patriot Act, and will obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations
necessary to the ownership of its properties or to the conduct of its
businesses, 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 5.05 INSURANCE.

     The Borrower will maintain, with financially sound and reputable insurers,
insurance with respect to its properties and businesses against such casualties
and contingencies, of such types, on such terms and in such amounts (including
deductibles, co-insurance and self-insurance, if adequate reserves are
maintained with respect thereto) as is customary in the case of entities engaged
in the same or a similar business and similarly situated, 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 5.06 MAINTENANCE OF PROPERTIES.

     The Borrower will maintain and keep, or cause to be maintained and kept,
its properties in good repair, working order and condition (other than ordinary
wear and tear), so that the business carried on in connection therewith may be
properly conducted at all times.

          SECTION 5.07 PAYMENT OF TAXES.

     The Borrower will file all income tax or similar tax returns required to be
filed in any jurisdiction and pay and discharge all taxes shown to be due and
payable on such returns and all other taxes, assessments, governmental charges,
or levies payable by it, to the extent the same have become due and payable and
before they have become delinquent, provided that the Borrower need not pay any
such tax, assessment, charge or levy if the amount, applicability or validity
thereof is contested by the Borrower on a timely basis in good faith and in
appropriate proceedings, and the Borrower has established adequate reserves
therefor in accordance with GAAP on the books of the Borrower.

          SECTION 5.08 CORPORATE EXISTENCE, ETC.

     The Borrower will at all times preserve and keep in full force and effect
its existence. The Borrower will at all times preserve and keep in full force
and effect all rights and franchises of the Borrower material to the conduct of
its business.

          SECTION 5.09 PAYMENT OF OBLIGATIONS.

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<PAGE>

     The Borrower will pay and discharge all of its obligations and liabilities
before the same shall become delinquent or in default; provided that the
Borrower need not pay any obligations or liabilities if the amount or validity
thereof is contested by the Borrower on a timely basis in good faith and in
appropriate proceedings, and the Borrower has established adequate reserves
therefor in accordance with GAAP on the books of the Borrower.

          SECTION 5.10 BOOKS AND RECORDS.

     The Borrower will maintain proper books of record and account in conformity
with GAAP and all applicable requirements of any Governmental Authority having
legal or regulatory jurisdiction over the Borrower, 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 ACTIVITIES.

     The Borrower shall comply in all respects with Section 6.1 of its Amended
and Restated Limited Liability Company Agreement dated as of the Closing Date.

          SECTION 5.12 CHARACTERIZATION OF BORROWER FOR TAX PURPOSES.

     The Borrower will execute and caused to be filed such returns and make and
cause to be made such elections as may from time to time be required or
appropriate so as to maintain the Borrower's characterization, and will at all
times be characterized and treated, as an entity disregarded as separate for
income tax purposes.

                         ARTICLE VI. NEGATIVE COVENANTS

          The Borrower covenants and agrees that so long as the principal of or
interest on any Loan remains unpaid or any fee remains unpaid:

          SECTION 6.01 INDEBTEDNESS.

     The Borrower will not incur, assume or suffer to exist any Indebtedness
other than the Term Loan.

          SECTION 6.02 LIENS.

     The Borrower will not create, incur, assume or suffer to exist any Lien
other than those Liens expressly permitted by the Loan Documents.

          SECTION 6.03 TRANSACTIONS WITH AFFILIATES.

     The Borrower will not enter into, directly or indirectly, any transaction
(including without limitation the purchase, lease, sale or exchange of
properties of any kind or the rendering of any

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<PAGE>

service) with any Affiliate, except (i) the Capitalization Transaction and (ii)
the making of distributions to the Parent to the extent permitted under Section
6.08.

          SECTION 6.04 MERGER, CONSOLIDATION, ETC.

     The Borrower will not consolidate with or merge with any other Person or
convey, transfer or lease any of its assets to any Person, except that the
Borrower may convey cash, the Installment Note and the Letter of Credit to the
Parent as a distribution to its sole member to the extent permitted under
Section 6.08.

          SECTION 6.05 LINE OF BUSINESS.

     The Borrower will not engage in any business other than (i) acquiring,
owning, managing, protecting, conserving and selling or otherwise dispose of the
Installment Note, the Letter of Credit, the Glatfelter Securities and Permitted
Investments, (ii) enter into and perform its obligations under the Loan
Documents to which the Borrower is a party, and (iii) engage in activities
related or incidental to the foregoing and necessary or appropriate therefor.

          SECTION 6.06 TERRORISM SANCTIONS REGULATIONS.

     The Borrower will not (a) become a Person described or designated in the
Specially Designated Nationals and Blocked Persons List of the Office of Foreign
Assets Control or in Section 1 of the Anti Terrorism Order or (b) engage in any
dealings or transactions with any such Person.

          SECTION 6.07 INVESTMENTS.

     The Borrower will not acquire any business or property, any equity interest
of any other Person, or any Indebtedness of any other Person, or otherwise make
or permit to remain outstanding any investment, other than the Borrower's
investment in the Installment Note, the Letter of Credit, the Glatfelter
Securities, any cash on deposit in the Interest Reserve Account or the
Collection Account, and Permitted Investments if such Permitted Investments
stand to the credit of the Interest Reserve Account or the Collection Account or
otherwise are subject to a perfected, first priority Lien in favor of the
Collateral Trustee.

          SECTION 6.08 DISTRIBUTIONS.

     The Borrower will not declare or make, or agree to pay or make, directly or
indirectly, any dividend payment or other distribution in respect of its
membership interests, except that (a) the Borrower may make the Closing Date
Distribution, (b) provided that, both before and after giving effect to such
distribution, no Default or Event of Default shall have occurred and be
continuing, the Borrower may make distributions to the Parent on each Interest
Payment Date to the extent provided in Section 6 of the Collateral Trust
Indenture in an amount equal to the amount of cash on hand of the Borrower in
excess of the sum of (x) the Interest Reserve Amount and (y) the amount of
expenses projected by the Borrower in good faith to be due and payable on or
prior to the immediately succeeding Interest Payment Date as certified by a
Responsible

                                       35

<PAGE>

Officer of the Borrower to the Collateral Trustee, and (c) upon any release by
the Collateral Trustee of its Lien on the Installment Note and Letter of Credit
in accordance with Section 8(f) of the Collateral Trust Indenture, the Borrower
may distribute the Installment Note and the Letter of Credit to the Parent. The
Borrower will not redeem or repurchase any of its membership interests.

          SECTION 6.09 CAPITAL EXPENDITURES.

     The Borrower will not make any capital expenditures.

          SECTION 6.10 BANKRUPTCY, INSOLVENCY.

     The Borrower will not (i) voluntarily commence any proceeding or file any
petition seeking liquidation, reorganization or other similar 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 seeking
liquidation, reorganization or similar relief in respect of the Borrower 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, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian or similar official for the Borrower or a substantial part of its
assets under any Federal, state or foreign bankruptcy, insolvency, receivership
or similar law now or hereafter in effect, (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.

          SECTION 6.11 AMENDMENTS AND MODIFICATIONS TO ORGANIZATIONAL DOCUMENTS
AND COLLATERAL.

          (a) The Borrower will not without the prior written consent of the
Required Lenders (i) make any changes to its business objectives, purpose or
operations, (ii) make any change to its capital structure, including without
limitation the issuance of any membership interests or economic rights or units
or securities convertible into or exercisable for membership interests or
economic rights of the Borrower to any Person other than the Parent, (iii)
reorganize itself under the laws of any jurisdiction other than the jurisdiction
in which it is organized as of the date of the Closing, or (iv) amend or modify,
and will not authorize, consent to or permit the amendment or modification of,
its Amended and Restated Limited Liability Company Agreement dated as of the
Closing Date.

          (b) The Borrower will not amend or modify, and will not authorize,
consent to or permit the amendment or modification of, the Installment Note, the
Letter of Credit, the Glatfelter Securities or the Contribution Agreement
without the prior written consent of the Required Lenders, provided that this
provision shall not limit the ability of the Borrower to request a substitution
of the Letter of Credit and take all steps and actions to implement such
substitution (including the replacement of the Letter of Credit by a substitute
Letter of Credit) in circumstances where the holder of the Installment Note is
permitted to request such a substitution pursuant to the terms of the
Installment Note.

                                       36

<PAGE>

                         ARTICLE VII. EVENTS OF DEFAULT

          SECTION 7.01 EVENTS OF DEFAULT.

     The following events are each an "Event of Default":

          (a) the Borrower defaults in the payment of any principal or amount
required pursuant to Section 2.13 in connection with a prepayment of principal,
if any, on the Term Loan when the same becomes due and payable, whether at
maturity or at a date fixed for prepayment or by declaration or otherwise; or

          (b) the Borrower defaults in the payment of any interest on the Term
Loan or any other amount payable under this Agreement or any other Loan Document
for more than three Business Days after the same becomes due and payable; or

          (c) the Borrower defaults in the performance of or compliance with any
term contained in Section 5.01(b), Section 5.08, Section 5.12 or Article VI; or

          (d) the Borrower defaults in the performance of or compliance with any
term contained herein or any other Loan Document (other than those referred to
in Sections 7.01(a), (b) and (c)) and such default is not remedied within 30
days after the earlier of (i) a Responsible Officer obtaining actual knowledge
of such default and (ii) the Borrower receiving written notice of such default
from the Agent (any such written notice to be identified as a "notice of
default" and to refer specifically to this Section 7.01(d)); or

          (e) any representation or warranty made in writing by or on behalf of
the Borrower or by a Responsible Officer or any other representative of the
Borrower in this Agreement or any other Loan Document or in any writing
furnished in connection with the transactions contemplated hereby proves to have
been false or incorrect in any material respect on the date as of which made; or

          (f) the Borrower (i) is generally not paying, or admits in writing its
inability to pay, its debts as they become due, (ii) files, or consents by
answer or otherwise to the filing against it of, a petition for relief or
reorganization or arrangement or any other petition in bankruptcy, for
liquidation or to take advantage of any bankruptcy, insolvency, reorganization,
moratorium or other similar law of any jurisdiction, (iii) makes an assignment
for the benefit of its creditors, (iv) consents to the appointment of a
custodian, receiver, trustee or other officer with similar powers with respect
to it or with respect to any substantial part of its property, (v) is
adjudicated as insolvent or to be liquidated, or (vi) takes any organizational
action for the purpose of any of the foregoing; or

          (g) a court or Governmental Authority of competent jurisdiction enters
an order appointing, without consent by the Borrower, a custodian, receiver,
trustee or other officer with similar powers with respect to it or with respect
to any substantial part of its property, or

                                       37

<PAGE>

constituting an order for relief or approving a petition for relief or
reorganization or any other petition in bankruptcy or for liquidation or to take
advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering
the dissolution, winding-up or liquidation of the Borrower, or any such petition
shall be filed against the Borrower and such petition shall not be dismissed
within 60 days; or

          (h) the Borrower is dissolved or liquidated or takes any
organizational action for the purpose of dissolving or liquidating; or

          (i) a final judgment or judgments for the payment of money are
rendered against the Borrower and which judgments are not, within 30 days after
entry thereof, bonded, discharged or stayed pending appeal, or are not
discharged within 30 days after the expiration of such stay; or

          (j) the L/C Bank is replaced with a substitute L/C Bank that is not a
commercial bank organized under the laws of the United States or any state
thereof or a branch located in the United States of any commercial bank
organized under the laws of any other country that is a member of the
Organization for Economic Cooperation and Development, in each case having a
long-term debt rating assigned by S&P of at least A+ and Moody's of at least A1;
or

          (k) the LC Bank ceases to be rated at least "A+" by S&P and "A1" by
Moody's, and the LC Bank is not replaced within 60 days thereof with a
substitute LC Bank that (i) is a commercial bank organized under the laws of the
United States or any state thereof or a branch located in the United States of
any commercial bank organized under the laws of any other country that is a
member of the Organization for Economic Cooperation and Development, and (ii)
has a long-term debt rating assigned by S&P of at least "A+" and by Moody's of
at least "A1"; or

          (l) an Installment Note Trigger Event shall have occurred; or

          (m) an "Event of Default" (as such term is defined in the Glatfelter
Securities) shall have occurred and be continuing; or

          (n) Glatfelter shall cease to own, directly or indirectly, one hundred
percent (100%) of the issued and outstanding membership interests of the
Borrower; or

          (o) a Contribution Agreement Event shall have occurred;

          SECTION 7.02 REMEDIES ON DEFAULT, ETC.

          (a) Acceleration.

          (i) If an Event of Default with respect to the Borrower described in
Section 7.01(f), (g) or (h) (other than an Event of Default described in clause
(i) of Section 7.01(f) or described in clause (vi) of Section 7.01(f) by virtue
of the fact that such clause encompasses clause (i) of Section 7.01(f)) has
occurred, the principal of the Term Loan then outstanding,

                                       38

<PAGE>

together with accrued interest thereon, and all other Obligations shall
automatically become due and payable.

          (ii) If any other Event of Default has occurred and is continuing, the
Agent may, and upon the written request of the Required Lenders shall, by notice
to the Borrower, take any or all of the following actions, at the same or
different times: (i) declare the principal of and any accrued interest on the
Term Loan and all other Obligations owing hereunder to be, whereupon the same
shall become, due and payable immediately; (ii) exercise all remedies contained
in any other Loan Document; and (iii) exercise any other remedies available at
law or in equity.

Upon the Term Loan becoming due and payable under this Section 7.02, whether
automatically or by declaration, all Obligations will forthwith mature and the
entire unpaid principal amount of the Term Loan, plus (x) all accrued and unpaid
interest thereon (including, but not limited to, interest accrued thereon at the
Default Rate) and (y) all amounts required pursuant to Section 2.13 determined
in respect of such principal amount (to the full extent permitted by applicable
law), shall all be immediately due and payable, in each and every case without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

          (b) Enforcement of Collateral. Upon the Term Loan becoming due and
payable, whether automatically or by declaration, the Required Lenders may
direct the Collateral Trustee to take any and all action with respect to the
Collateral permitted under the Loan Documents, at law, in equity or otherwise,
including, without limitation, to foreclose upon any or all of the Collateral
and to draw under the Letter of Credit to the extent permitted to do so under
the terms thereof.

          (c) Rescission. At any time after the Term Loan has been declared due
and payable pursuant to Section 7.02(a)(ii), the Required Lenders, by written
notice to the Borrower, may rescind and annul any such declaration and its
consequences.

                             ARTICLE VIII. THE AGENT

          SECTION 8.01 APPOINTMENT OF AGENT.

Each Lender irrevocably appoints SunTrust Bank as the Agent and authorizes it to
take such actions on its behalf and to exercise such powers as are delegated to
the Agent under this Agreement and the other Loan Documents, together with all
such actions and powers that are reasonably incidental thereto. The Agent may
perform any of its duties hereunder or under the other Loan Documents by or
through any one or more sub-agents or attorneys-in-fact appointed by the Agent.
The Agent and any such sub-agent or attorney-in-fact may perform any and all of
its duties and exercise its rights and powers through their respective Related
Parties. The exculpatory provisions set forth in this Article shall apply to any
such sub-agent or attorney-in-fact and the Related Parties of the Agent, any
such sub-agent and any such attorney-in-fact and

                                       39

<PAGE>

shall apply to their respective activities in connection with the syndication of
the credit facilities provided for herein as well as activities as Agent.

          SECTION 8.02 NATURE OF DUTIES OF AGENT.

The Agent shall not have any duties or obligations except those expressly set
forth in this Agreement and the other Loan Documents. Without limiting the
generality of the foregoing, (a) the Agent shall not be subject to any fiduciary
or other implied duties, regardless of whether a Default or an Event of Default
has occurred and is continuing, (b) the Agent shall not have any duty to take
any discretionary action or exercise any discretionary powers, except those
discretionary rights and powers expressly contemplated by the Loan Documents
that the Agent is required to exercise in writing by the Required Lenders (or
such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided herein), and (c) except as expressly set forth in the
Loan Documents, the Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Borrower
that is communicated to or obtained by the Agent or any of its Affiliates in any
capacity. The Agent shall not be liable for any action taken or not taken by it,
its sub-agents or attorneys-in-fact 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 herein) in the absence of its own
gross negligence or willful misconduct. The Agent shall not be responsible for
the negligence or misconduct of any sub-agents or attorneys-in-fact selected by
it with reasonable care. The Agent shall not be deemed to have knowledge of any
Default or Event of Default unless and until written notice thereof is given to
the Agent by the Borrower or any Lender, and the 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 hereunder or
thereunder or in connection herewith or therewith, (iii) the performance or
observance of any of the covenants, agreements, or other terms and 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 III or
elsewhere in any Loan Document, other than to confirm receipt of items expressly
required to be delivered to the Agent. The Agent may consult with legal counsel
(including counsel for the Borrower) concerning all matters pertaining to such
duties.

          SECTION 8.03 LACK OF RELIANCE ON THE AGENT.

Each of the Lenders acknowledges that it has, independently and without reliance
upon the 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 of the Lenders also acknowledges that it will,
independently and without reliance upon the Agent or any other Lender and based
on such documents and information as it has deemed appropriate, continue to make
its own decisions in taking or not taking of any action under or based on this
Agreement, any related agreement or any document furnished hereunder or
thereunder.

          SECTION 8.04 CERTAIN RIGHTS OF THE AGENT.

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<PAGE>

If the Agent shall request instructions from the Required Lenders with respect
to any action or actions (including the failure to act) in connection with this
Agreement, the Agent shall be entitled to refrain from such act or taking such
act, unless and until it shall have received instructions from such Lenders; and
the Agent shall not incur liability to any Person by reason of so refraining.
Without limiting the foregoing, no Lender shall have any right of action
whatsoever against the Agent as a result of the Agent acting or refraining from
acting hereunder in accordance with the instructions of the Required Lenders
where required by the terms of this Agreement.

          SECTION 8.05 RELIANCE BY AGENT.

The 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,
sent or made by the proper Person. The Agent may also 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 Agent may
consult with legal counsel (including counsel for the Borrower), independent
public accountants and other experts selected by it and shall not be liable for
any action taken or not taken by it in accordance with the advice of such
counsel, accountants or experts.

          SECTION 8.06 THE AGENT IN ITS INDIVIDUAL CAPACITY.

The bank serving as the Agent shall have the same rights and powers under this
Agreement and any other Loan Document in its capacity as a Lender as any other
Lender and may exercise or refrain from exercising the same as though it were
not the Agent; and the terms "Lenders", "Required Lenders", "holders of Notes",
or any similar terms shall, unless the context clearly otherwise indicates,
include the Agent in its individual capacity. The bank acting as the Agent and
its Affiliates may accept deposits from, lend money to, and generally engage in
any kind of business with the Borrower or Affiliate of the Borrower as if it
were not the Agent hereunder.

          SECTION 8.07 SUCCESSOR AGENT.

          (a) The Agent may resign at any time by giving at least 30 days' prior
notice thereof to the Lenders and the Borrower. Upon any such resignation, the
Required Lenders shall have the right to appoint a successor Agent, subject to
the approval by the Borrower (such approval not to be unreasonably withheld or
delayed) provided that no Default or Event of Default shall exist at such time.
If no successor Agent shall have been so appointed, and shall have accepted such
appointment within 30 days after the retiring Agent gives notice of resignation,
then the retiring Agent may, on behalf of the Lenders, appoint a successor
Agent, which shall be a commercial bank, insurance company or other financial
institution organized under the laws of the United States of America or any
state thereof or a bank, insurance company or other financial institution which
maintains an office in the United States, having a combined capital and surplus
of at least $500,000,000.

          (b) Upon the acceptance of its appointment as the Agent hereunder by a
successor, such successor Agent shall thereupon succeed to and become vested
with all the

                                       41

<PAGE>

rights, powers, privileges and duties of the retiring Agent, and the retiring
Agent shall be discharged from its duties and obligations under this Agreement
and the other Loan Documents. If within 45 days after written notice is given of
the retiring Agent's resignation under this Section 8.07 no successor Agent
shall have been appointed and shall have accepted such appointment, then on such
45th day (i) the retiring Agent's resignation shall become effective, (ii) the
retiring Agent shall thereupon be discharged from its duties and obligations
under the Loan Documents and (iii) the Required Lenders shall thereafter perform
all duties of the retiring Agent under the Loan Documents until such time as the
Required Lenders appoint a successor Agent as provided above. After any retiring
Agent's resignation hereunder, the provisions of this Article VIII shall
continue in effect for the benefit of such retiring Agent and its
representatives and agents in respect of any actions taken or not taken by any
of them while it was serving as the Agent.

          SECTION 8.08 AUTHORIZATION TO EXECUTE OTHER LOAN DOCUMENTS.

Each Lender hereby authorizes the Agent to execute on behalf of all Lenders all
Loan Documents other than this Agreement.

                            ARTICLE IX. MISCELLANEOUS

          SECTION 9.01 NOTICES.

          (a) Except in the case of notices and other communications expressly
permitted to be given by telephone, all notices and other communications to any
party herein to be effective 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:

          To the Borrower:       GPW Virginia Timberlands LLC
                                 c/o P.H. Glatfelter Company
                                 96 South George Street Suite 400
                                 York, PA 17401
                                 Attention: Donald Gross
                                 Facsimile: 717-812-8964
                                 Attention: Thomas Bosley, VP & General Manager
                                 Facsimile: 717-225-4711

          To the Agent:          SunTrust Bank
                                 303 Peachtree Street, N. E.
                                 Atlanta, Georgia 30308
                                 Attention: Mark Flatin
                                 Telecopy Number: 804.782.5413

          To any other Lender:   the address set forth in the Administrative
                                 Questionnaire

                                       42

<PAGE>

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All such notices
and other communications shall, when transmitted by overnight delivery, or
faxed, be effective when delivered for overnight (next-day) delivery, or
transmitted in legible form by facsimile machine, respectively, or if mailed,
upon the third Business Day after the date deposited into the mail or if
delivered, upon delivery.

          (b) Any agreement of the Agent and the Lenders herein to receive
certain notices by telephone or facsimile is solely for the convenience and at
the request of the Borrower. The Agent and the Lenders shall be entitled to rely
on the authority of any Person purporting to be a Person authorized by the
Borrower to give such notice and the Agent and Lenders shall not have any
liability to the Borrower or other Person on account of any action taken or not
taken by the Agent or the Lenders in reliance upon such telephonic or facsimile
notice. The obligation of the Borrower to repay the Term Loan and all other
Obligations hereunder shall not be affected in any way or to any extent by any
failure of the Agent or the Lenders to receive written confirmation of any
telephonic or facsimile notice or the receipt by the Agent and the Lenders of a
confirmation which is at variance with the terms understood by the Agent and the
Lenders to be contained in any such telephonic or facsimile notice.

          SECTION 9.02 WAIVER; AMENDMENTS.

          (a) No failure or delay by the Agent or any Lender in exercising any
right or power hereunder or any other Loan Document, and no course of dealing
between the Borrower and the Agent or any Lender, 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 hereunder or thereunder. The rights and remedies of the Agent and
the Lenders hereunder and under the other Loan Documents are cumulative and are
not exclusive of any rights or remedies provided by law. No waiver of any
provision of this Agreement or any other Loan Document or consent to any
departure by the Borrower therefrom shall in any event be effective unless the
same shall be permitted by paragraph (b) of this Section 9.02, 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 shall not be construed as a waiver of any Default or Event of
Default, regardless of whether the Agent or any Lender may have had notice or
knowledge of such Default or Event of Default at the time.

          (b) No amendment or waiver of any provision of this Agreement or the
other Loan Documents, nor consent to any departure by the Borrower therefrom,
shall in any event be effective unless the same shall be in writing and signed
by the Borrower and the Required Lenders or the Borrower and the Agent with the
consent of the Required Lenders and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given; provided, that no amendment or waiver shall: (i) increase the Commitment
of any Lender without the written consent of such Lender, (ii) reduce the
principal amount of any Loan or reduce the rate of interest thereon, or reduce
any fees payable hereunder, without the written

                                       43

<PAGE>

consent of each Lender affected thereby, (iii) postpone the date fixed for any
payment of any principal of, or interest on, any Loan or interest thereon or any
fees hereunder or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date for the termination or reduction of any Commitment,
without the written consent of each Lender affected thereby, (iv) change Section
2.15(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 9.02 or the definition of "Required Lenders" or
any other provision hereof specifying the number or percentage of Lenders which
are required to waive, amend or modify any rights hereunder or make any
determination or grant any consent hereunder, without the consent of each
Lender; (vi) release any guarantor or limit the liability of any such guarantor
under any guaranty agreement, without the written consent of each Lender; (vii)
release all or substantially all collateral (if any) securing any of the
Obligations or agree to subordinate any Lien in such collateral to any other
creditor, without the written consent of each Lender; provided further, that no
such agreement shall amend, modify or otherwise affect the rights, duties or
obligations of the Agent or the Collateral Trustee without the prior written
consent of the such Person. Notwithstanding anything contained herein to the
contrary, this Agreement may be amended and restated without the consent of any
Lender (but with the consent of the Borrower and the Agent) if, upon giving
effect to such amendment and restatement, such Lender shall no longer be a party
to this Agreement (as so amended and restated), the Commitments of such Lender
shall have terminated (but such Lender shall continue to be entitled to the
benefits of Sections 2.12, 2.13, 2.14 and 9.03), such Lender shall have no other
commitment or other obligation hereunder and shall have been paid in full all
principal, interest and other amounts owing to it or accrued for its account
under this Agreement.

          SECTION 9.03 EXPENSES; INDEMNIFICATION.

          (a) The Borrower shall pay (i) all reasonable, out-of-pocket costs and
expenses of the Agent and its Affiliates, including, without limitation, the
reasonable fees, charges and disbursements of outside counsel and allocated cost
of inside counsel for the Agent and its Affiliates, in connection with the
preparation and administration of the Loan Documents and any amendments,
modifications or waivers of the Loan Documents (whether or not the transactions
contemplated in this Agreement or any other Loan Document shall be consummated),
and (ii) all out-of-pocket costs and expenses (including, without limitation,
the reasonable fees, charges and disbursements of outside counsel and the
allocated cost of inside counsel) incurred by the Agent or any Lender in
connection with the enforcement or protection of its rights in connection with
this Agreement, including its rights under this Section 9.03, or in connection
with the Term Loan, including all such out-of-pocket expenses incurred during
any workout, restructuring or negotiations in respect of the Term Loan.

          (b) The Borrower shall indemnify the Agent (and any sub-agent thereof)
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 costs, losses, liabilities, claims, damages and
related expenses (including the fees, charges and disbursements of any counsel
for any Indemnitee), incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower or any Affiliate thereof
arising out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement, any other Loan

                                       44

<PAGE>

Document or any agreement or instrument contemplated hereby or thereby, the
performance by the parties hereto of their respective obligations hereunder or
thereunder or the consummation of any of the transactions contemplated hereby or
thereby, (ii) any Loan or the use or proposed use of the proceeds therefrom or
(iii) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other
theory, whether brought by a third party or by the Borrower or any Affiliate
thereof, 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 are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee or any Related Party of such Indemnitee.

          (c) The Borrower shall pay, and hold the Agent and each of the Lenders
harmless from and against, any and all present and future stamp, documentary,
and other similar taxes with respect to this Agreement and any other Loan
Documents, any collateral described therein, or any payments due thereunder, and
save the Agent and each Lender harmless from and against any and all liabilities
with respect to or resulting from any delay or omission to pay such taxes.

          (d) To the extent that the Borrower fails to pay any amount required
to be paid to the Agent, each Lender severally agrees to pay to the Agent such
Lender's Pro Rata Share (determined as of the time that the unreimbursed expense
or indemnity payment is sought) of such unpaid amount; provided, that the
unreimbursed expense or indemnified payment, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the Agent in
its capacity as such.

          (e) To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to actual or direct damages) arising out of, in connection with or as a result
of, this Agreement or any agreement or instrument contemplated hereby, the
transactions contemplated therein, any Loan or the use of proceeds thereof.

          (f) All amounts due under this Section 9.03 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, except that the Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of
the Agent and each Lender, and no Lender may assign or otherwise transfer any of
its rights or obligations hereunder except (i) to an assignee in accordance with
the provisions of paragraph (b) of this Section, (ii) by way of participation in
accordance with the provisions of paragraph (d) of this Section or (iii) by way
of pledge or assignment of a security interest subject to the restrictions of
paragraph (f) of this Section (and any other attempted assignment or transfer by
any party hereto shall be null and void). Nothing in this Agreement, expressed
or implied, shall be construed to confer upon any Person (other

                                       45

<PAGE>

than the parties hereto, their respective successors and assigns permitted
hereby, Participants to the extent provided in paragraph (d) of this Section
and, to the extent expressly contemplated hereby, the Related Parties of each of
the Agent and the Lenders) any legal or equitable right, remedy or claim under
or by reason of this Agreement.

          (b) Any Lender may at any time assign to one or more assignees all or
a portion of its rights and obligations under this Agreement (including all or a
portion of the Term Loan at the time owing to it); provided that any such
assignment shall be subject to the following conditions:

          (i) Minimum Amounts.

               (A) in the case of an assignment of the entire remaining amount
of the assigning Lender's portion of the Term Loan at the time owing to it or in
the case of an assignment to a Lender, an Affiliate of a Lender or an Approved
Fund, no minimum amount need be assigned; and

               (B) in any case not described in paragraph (b)(i)(A) of this
Section, the outstanding principal balance of the Term Loan of the assigning
Lender subject to each such assignment (determined as of the date the Assignment
and Acceptance with respect to such assignment is delivered to the Agent or, if
"Trade Date" is specified in the Assignment and Acceptance, as of the Trade
Date) shall not be less than $1,000,000, unless each of the Agent and, so long
as no Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed).

          (ii) Proportionate Amounts. 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 with respect to the Term Loan assigned.

          (iii) Required Consents. No consent shall be required for any
assignment except to the extent required by paragraph (b)(i)(B) of this Section
and, in addition:

               (A) the consent of the Borrower (such consent not to be
unreasonably withheld or delayed) shall be required unless (x) an Event of
Default has occurred and is continuing at the time of such assignment or (y)
such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;
and

               (B) the consent of the Agent (such consent not to be unreasonably
withheld or delayed) shall be required for assignments to a Person that is not a
Lender.

          (iv) Assignment and Acceptance. The parties to each assignment shall
deliver to the Agent (A) a duly executed Assignment and Acceptance, which shall
include a representation for the benefit of the Borrower that the assignee is a
Qualified Purchaser, (B) a processing and recordation fee of $3,500, (C) an
Administrative Questionnaire unless the assignee is already a Lender, and (D)
the documents required under Section 2.15 if such assignee is a Foreign Lender.

                                       46

<PAGE>

          (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower or any of the Borrower's Affiliates or Subsidiaries.

          (vi) No Assignment to Natural Persons; Qualified Purchaser. No such
assignment shall be made to a natural person or to a Person that is not a
Qualified Purchaser.

     Subject to acceptance and recording thereof by the Agent pursuant to
paragraph (c) of this Section 9.04, from and after the effective date specified
in each Assignment and Acceptance, the assignee thereunder shall be a party to
this Agreement and, to the extent of the interest assigned by such Assignment
and Acceptance, 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 Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance 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 2.12, 2.13, 2.14 and 9.03 with
respect to facts and circumstances occurring prior to the effective date of such
assignment. Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this paragraph 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 (d) of this Section
9.04. If the consent of the Borrower to an assignment is required hereunder
(including a consent to an assignment which does not meet the minimum assignment
thresholds specified above), the Borrower shall be deemed to have given its
consent five Business Days after the date notice thereof has actually been
delivered by the assigning Lender (through the Agent) to the Borrower, unless
such consent is expressly refused by the Borrower prior to such fifth Business
Day.

          (c) The Agent, acting solely for this purpose as an agent of the
Borrower, shall maintain at one of its offices in Atlanta, Georgia a copy of
each Assignment and Acceptance delivered to it and a register for the
recordation of the names and addresses of the Lenders, the principal amount of
the Term Loan owing to, each Lender pursuant to the terms hereof from time to
time (the "Register"). Information contained in the Register with respect to any
Lender shall be available for inspection by such Lender at any reasonable time
and from time to time upon reasonable prior notice; information contained in the
Register shall also be available for inspection by the Borrower at any
reasonable time and from time to time upon reasonable prior notice. In
establishing and maintaining the Register, the Agent shall serve as the
Borrower's agent solely for tax purposes and solely with respect to the actions
described in this Section, and the Borrower hereby agrees that, to the extent
SunTrust Bank serves in such capacity, SunTrust Bank and its officers,
directors, employees, agents, sub-agents and affiliates shall constitute
"Indemnitees."

          (d) Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Agent sell participations to any Person (other than a
natural person, the Borrower or any of the Borrower's Affiliates or
Subsidiaries) (each, a "PARTICIPANT") in all or a portion of such Lender's
rights and/or obligations under this Agreement (including all or a portion of
the Term Loan owing to it); provided that (i) such Lender's obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other

                                       47

<PAGE>

parties hereto for the performance of such obligations and (iii) the Borrower,
the Agent and the Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement.

          (e) Any agreement or instrument pursuant to which a Lender sells such
a participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; 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 with respect to the following to the
extent affecting such Participant: (i) increase the Commitment of any Lender
without the written consent of such Lender, (ii) reduce the principal amount of
any Loan 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 date fixed for any payment of any principal of, or interest on, any
Loan or any fees hereunder or reduce the amount of, waive or excuse any such
payment, or postpone the scheduled date for the termination or reduction of any
Commitment, without the written consent of each Lender affected thereby, (iv)
change Section 2.15(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 9.04 or the definition of "Required
Lenders" or any other provision hereof specifying the number or percentage of
Lenders which are required to waive, amend or modify any rights hereunder or
make any determination or grant any consent hereunder, without the consent of
each Lender; (vi) release any guarantor or limit the liability of any such
guarantor under any guaranty agreement without the written consent of each
Lender except to the extent such release is expressly provided under the terms
of such guaranty agreement; or (vii) release all or substantially all collateral
(if any) securing any of the Obligations. Subject to paragraph (f) of this
Section 9.04, the Borrower agrees that each Participant shall be entitled to the
benefits of (and shall have the related obligations under) Sections 2.12, 2.13,
and 2.14 to the same extent as if it were a Lender and had acquired its interest
by assignment pursuant to paragraph (b) of this Section 9.04. To the extent
permitted by law, each Participant also shall be entitled to the benefits of
Section 9.07 as though it were a Lender, provided such Participant agrees to be
subject to Section 2.15 as though it were a Lender.

          (f) A Participant shall not be entitled to receive any greater payment
under Section 2.12 and Section 2.14 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 2.14 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
2.14(e) as though it were a Lender.

          (g) Any Lender may 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 without limitation any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

                                       48

<PAGE>

          SECTION 9.05 GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF
PROCESS.

          (a) This Agreement and the other Loan Documents shall be construed in
accordance with and be governed by the law (without giving effect to the
conflict of law principles thereof) of the State of New York.

          (b) The Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the non-exclusive jurisdiction of any New York state
court or federal court sitting in the County of New York and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement or any other Loan Document or the transactions contemplated hereby or
thereby, 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 court or, to the extent permitted by applicable law, 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 Agent and the Lenders may otherwise have to bring any action or proceeding
relating to this Agreement or any other Loan Document against the Borrower or
its properties in the courts of any jurisdiction.

          (c) The Borrower irrevocably and unconditionally waives any objection
which it may now or hereafter have to the laying of venue of any such suit,
action or proceeding described in paragraph (b) of this Section and brought in
any court referred to in paragraph (b) of this Section. Each of the parties
hereto irrevocably waives, to the fullest extent permitted by applicable 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 the service
of process in the manner provided for notices in Section 9.01. Nothing in this
Agreement or in any other Loan Document will affect the right of any party
hereto to serve process in any other manner permitted by law.

          SECTION 9.06 WAIVER OF JURY TRIAL.

     EACH PARTY HERETO IRREVOCABLY 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 THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT
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 AND THE OTHER LOAN

                                       49

<PAGE>

DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

          SECTION 9.07 RIGHT OF SETOFF.

     In addition to any rights now or hereafter granted under applicable law and
not by way of limitation of any such rights, the Agent and each Lender shall
have the right, at any time or from time to time upon the occurrence and during
the continuance of an Event of Default, without prior notice to the Borrower,
any such notice being expressly waived by the Borrower to the extent permitted
by applicable law, to set off and apply against all deposits (general or
special, time or demand, provisional or final) of the Borrower at any time held
or other obligations at any time owing by the Agent or any Lender to or for the
credit or the account of the Borrower against any and all Obligations held by
the Agent or any Lender, irrespective of whether the Agent or such Lender shall
have made demand hereunder and although such Obligations may be unmatured. The
Agent and Lenders agree promptly to notify the Borrower after any such set-off
and any application made by the Agent or any Lender; provided, that the failure
to give such notice shall not affect the validity of such set-off and
application.

          SECTION 9.08 COUNTERPARTS; INTEGRATION.

     This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts (including by telecopy), and
all of said counterparts taken together shall be deemed to constitute one and
the same instrument. This Agreement, the Fee Letter and the other Loan Documents
constitute the entire agreement among the parties hereto and thereto regarding
the subject matters hereof and thereof and supersede all prior agreements and
understandings, oral or written, regarding such subject matters.

          SECTION 9.09 SURVIVAL.

     All covenants, agreements, representations and warranties made by the
Borrower herein and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of this Agreement and the making of the Term Loan, regardless of any
investigation made by any such other party or on its behalf and notwithstanding
that the Agent or the Lenders 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. The provisions of Sections 2.11,
2.12, and 9.03 shall survive and remain in full force and effect regardless of
the consummation of the transactions contemplated hereby, the repayment of the
Term Loan, the expiration or termination of the Commitments or the termination
of this Agreement or any provision hereof. All representations and warranties
made herein, in the certificates, reports, notices, and other documents
delivered pursuant to this Agreement shall survive the execution and delivery of
this Agreement and the other Loan Documents, and the making of the Term Loan.

                                       50

<PAGE>

          SECTION 9.10 SEVERABILITY.

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

          SECTION 9.11 CONFIDENTIALITY.

     The Agent and the Lenders agree to take normal and reasonable precautions
to maintain the confidentiality of (i) any information designated in writing as
confidential and (ii) any and all information relating to the Installment Sale
Transaction and provided to it by the Borrower or any Subsidiary, except that
such information may be disclosed (i) to any Related Party of the Agent or the
Lenders, including without limitation accountants, legal counsel and other
advisors; provided that the Agent or the Lender disclosing such information
first advises the party receiving such information that it is confidential as
per the provisions of this Section and that the Agent or Lender shall be
responsible for compliance by the party receiving the information with the
provisions of this Section, (ii) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (iii) to the extent
requested by any regulatory agency or authority, (iv) to the extent that such
information becomes publicly available other than as a result of a breach of
this Section, or which becomes available to the Agent or a Lender or any Related
Party of the Agent or a Lender on a nonconfidential basis from a source other
than the Borrower, (v) in connection with the exercise of any remedy hereunder
or any suit, action or proceeding relating to this Agreement or the enforcement
of rights hereunder, and (ix) subject to provisions substantially similar to
this Section 9.11, to any actual or prospective assignee or Participant, or (vi)
with the consent of the Borrower. Any Person required to maintain the
confidentiality of any information as provided for 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 its own confidential information.

          SECTION 9.12 INTEREST RATE LIMITATION.

     Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to the Term Loan, together with all fees, charges and
other amounts which may be treated as interest on such Loan under applicable law
(collectively, the "CHARGES"), shall exceed the maximum lawful rate of interest
(the "MAXIMUM RATE") which may be contracted for, charged, taken, received or
reserved by the Agent and the Lenders in accordance with applicable law, the
rate of interest payable in respect of the Term 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 the
Agent on behalf of the Lenders in respect of other periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the

                                       51

<PAGE>

Federal Funds Rate to the date of repayment, shall have been received by the
Agent on behalf of the Lenders.

          SECTION 9.13 QUALIFIED PURCHASER.

     Each Lender severally represents that it is a Qualified Purchaser.

                  (remainder of page left intentionally blank)

                                       52

<PAGE>

          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 above written.

                                        GPW VIRGINIA TIMBERLANDS LLC

                                        By /s/ Thomas V. Bosley
                                           -------------------------------------
                                        Name:  Thomas V. Bosley
                                        Title: Vice President and
                                               General Manager

                                        SUNTRUST BANK

                                        By /s/ Mark A. Flatin
                                           -------------------------------------
                                        Name: Mark A. Flatin

                                        Title: Managing Director

                     [SIGNATURE PAGE TO TERM LOAN AGREEMENT]

<PAGE>

                                  SCHEDULE 4.05

                           Closing Date Balance Sheet

<PAGE>

                                       LLC
                                  BALANCE SHEET
                                     JAN-08

<TABLE>
<S>                                       <C>
ASSETS
   Cash and cash equivalents              $   400,000
   Accounts receivable                             --
   Inventories                                     --
   Other current assets                     9,158,000
   Deferred transaction costs                 520,000
                                          -----------
      Current assets                       10,078,000
                                          -----------

   Net plant, equipment and timberlands            --
   Total other non-current assets          43,170,000
                                          -----------
      Total assets                        $53,248,000
                                          ===========
LIABILITIES
      Current liabilities                          --
                                          -----------
   Long-term debt                          36,694,500
   Other long term liabilities                     --
                                          -----------
      Total liabilities                    36,694,500
                                          -----------
SHAREHOLDER'S EQUITY
   Common shares                          $        --
   Capital in excess of par value          16,573,500
   Retained earnings                          (20,000)
                                          -----------
      Total liabilities and equity        $53,248,000
                                          ===========
</TABLE>

Balance Sheet
<PAGE>

                                  SCHEDULE 4.15

1.   The Credit Agreement, dated as of April 3, 2006, by and among P. H.
     Glatfelter Company, certain of its subsidiaries identified therein, the
     Guarantors (as defined therein), the Banks (as defined therein), PNC Bank,
     National Association, as agent for the Banks, PNC Capital Markets LLC and
     Credit Suisse Securities (USA) LLC, as joint arrangers and bookrunners, and
     Credit Suisse Securities (USA) LLC, as syndication agent, as amended from
     time to time.

2.   The Indenture, dated as of April 28, 2006 among P. H. Glatfelter Company as
     the Issuer of 7 1/8 % Senior Notes due 2016 and SunTrust Bank as Trustee,
     and the Subsidiary Guarantors (as defined therein), as amended from time to
     time.

                       Term Loan Agreement - Schedule 4.15

<PAGE>

                                    EXHIBIT A

                                    TERM NOTE

                                   (SUNTRUST)

THIS TERM NOTE IS SUBJECT TO THE RESTRICTIONS ON TRANSFER CONTAINED IN SECTION
9.04 OF THE TERM LOAN AGREEMENT INCLUDING, WITHOUT LIMITATION, THE REQUIREMENT
THAT ANY TRANSFEREE BE A "QUALIFIED PURCHASER" AS DEFINED IN SECTION 2(A)(51) OF
THE INVESTMENT COMPANY ACT OF 1940

$36,694,500                                                         New York, NY
                                                                January 15, 2008

     FOR VALUE RECEIVED, the undersigned, GPW VIRGINIA TIMBERLANDS LLC, a
Delaware limited liability company (the "BORROWER"), hereby promises to pay to
SUNTRUST BANK (the "LENDER") or its registered assigns at the office of Lender
located at 919 East Main St., 22nd Floor, Richmond, Virginia 23219 or such other
location as to which the Lender shall have given written notice to the Borrower
(i) on the Maturity Date (as defined in that certain Term Loan Agreement, dated
as of January 15, 2008 among the Borrower, the lenders from time to time party
thereto, and SunTrust Bank, as Agent, as the same may be amended, restated,
supplemented or otherwise modified from time to time, the "TERM LOAN AGREEMENT")
the aggregate unpaid principal amount of the portion of the Term Loan (as
defined in the Term Loan Agreement) made by the Lender to the Borrower pursuant
to the Term Loan Agreement, and (ii) on each date specified in the Term Loan
Agreement, interest on the portion of the principal amount of the Term Loan
payable to such Lender, at the rate or rates per annum as provided in the Term
Loan Agreement, in each case in lawful money of the United States of America in
immediately available funds. In addition, should legal action or an
attomey-at-law be utilized to collect any amount due hereunder, the Borrower
further promises to pay all costs of collection, including the reasonable
attorneys' fees of the Lender.

     The Borrower promises to pay, on demand, Default Interest (as defined in
the Term Loan Agreement) on the terms and conditions set forth in the Term Loan
Agreement.

     This Note is issued in connection with, and is entitled to the benefits of,
the Term Loan Agreement which, among other things, contains provisions for the
acceleration of the maturity hereof upon the happening of certain events, for
prepayment of the principal hereof prior to the maturity hereof and for the
amendment or waiver of certain provisions of the Term Loan Agreement, all upon
the terms and conditions therein specified. THIS NOTE SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND ANY
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.

<PAGE>

     IN WITNESS WHEREOF, Borrower has caused this Note to be executed and
delivered as of the date first above written.

                                        GPW VIRGINIA TIMBERLANDS LLC

                                        By:                               (SEAL)
                                            -----------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
<PAGE>

                                    EXHIBIT B

THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR UNDER ANY SECURITIES LAW OF ANY STATE OF THE UNITED STATES OF
AMERICA AND, ACCORDINGLY, MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE
TRANSFERRED WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933 AND ANY
APPLICABLE STATE LAW, UNLESS PURSUANT TO AN EXEMPTION FROM REGISTRATION
THEREUNDER OR IN A TRANSACTION NOT SUBJECT TO REGISTRATION THEREUNDER.

                            PROMISSORY NOTE NO. [__]

$[__________]                                                       [__________]

     FOR VALUE RECEIVED, the undersigned, P. H. GLATFELTER COMPANY, a
Pennsylvania corporation (the "Issuer"), hereby promises to pay [__________]
(the "Payee"), or its registered assigns (the Payee and each such assignee is
referred to herein as the "Holder"), the principal amount of [__________]
($[__________]) plus accrued interest from the date of this Promissory Note, in
lawful money of the United States of America, at the place for payment provided
for herein on the terms and conditions set forth below.

                                    ARTICLE I

                           DEFINITIONS AND OTHER TERMS

     1.1 Definitions. As used in this Promissory Note, the following terms shall
have the following meanings:

          "Agreement" has the meaning specified in Section 2.1.

          "Business Day" means a day on which commercial banks and foreign
     exchange markets settle payments and are open for general business
     (including dealings in foreign exchange and foreign currency deposits) in
     New York City.

          "Buyer" has the meaning specified in Section 2.1.

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

          "Event of Default" has the meaning specified in Section 3.1.

          "Excluded Taxes" has the meaning specified in Section 2.4(d).

<PAGE>

          "Foreign Holder" means any Holder that is organized under the laws of
     a jurisdiction other than that in which Issuer 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.

          "GAAP" means United States generally accepted accounting principles
     consistently applied.

          "Governmental Authority", with respect to any Person, means any
     nation, any state or other political subdivision thereof and any entity
     exercising executive, legislative, judicial, regulatory or administrative
     functions of or pertaining to government, including any government
     authority, agency, department, board, commission or instrumentality of the
     United States, any state of the United States or any political subdivision
     thereof, and any tribunal or arbitrator(s) of competent jurisdiction, and
     in each case, having jurisdiction or authority over such Person.

          "Gross-Up Amount" has the meaning specified in Section 2.4(d).

          "Institutional Investor" means any bank, trust company, savings and
     loan association or other financial institution, any pension plan, any
     investment company, any insurance company, any broker or dealer, or any
     other similar financial institution or entity, regardless of legal form.

          "Interest Period" means (i) initially, the period commencing on the
     date hereof and ending on [__________] and (ii) thereafter, each period
     commencing on the last day of the immediately preceding Interest Period and
     ending on the [_____] day of the sixth consecutive month ending after the
     month in which such immediately preceding Interest Period ended. The
     determination of Interest Periods shall be subject to the following
     provisions:

               (i) if any Interest Period would otherwise expire on a day that
          is not a Business Day, such Interest Period shall expire on the
          immediately succeeding Business Day; provided, however, that if any
          Interest Period would otherwise expire on a day that is not a Business
          Day but is a day of the month after which no further Business Day
          occurs in such month, such Interest Period shall expire on the
          immediately preceding Business Day; and

               (ii) no Interest Period shall extend beyond the stated maturity
          date hereof.

          "Lenders" shall have the meaning assigned to such term in the Term
     Loan Agreement.

                                        2

<PAGE>

          "Material Adverse Effect" means a material adverse effect on (i) the
     business, operations, affairs, financial condition, assets or properties of
     the Issuer, or (ii) the ability of the Issuer to perform its obligations
     under the Notes and the Agreement, or (iii) the validity or enforceability
     of the Notes or the Agreement.

          "Notes" has the meaning specified in Section 2.1.

          "Interest Rate" has the meaning specified in Section 2.2(a).

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

          "Promissory Note" means this promissory note issued by Issuer.

          "SEC" means the Securities and Exchange Commission or any governmental
     agencies substituted therefor.

          "Securities Act" means the Securities Exchange Act of 1934, as
     amended.

          "Similar Law" has the meaning specified in Section 5.2.

          "Taxes" has the meaning specified in Section 2.4(d).

          "Term Loan" shall mean the floating rate loan in the principal amount
     of $36,694,500 made pursuant to the Term Loan Agreement.

          "Term Loan Agreement" shall mean that certain Term Loan Agreement,
     dated as of the date hereof, by and among GPW Virginia Timberlands LLC, the
     Lenders from time to time party thereto, and SunTrust Bank, as agent.

     1.2 Interpretation. In this Promissory Note, except to the extent that the
context otherwise requires:

               (a) the Articles and Section headings are for convenience of
     reference only and shall not affect the interpretation of this Promissory
     Note;

               (b) unless otherwise specified, references to Articles, Sections,
     Schedules and clauses are references to Articles, Sections, Schedules and
     clauses of this Promissory Note;

               (c) references to any document or agreement, including this
     Promissory Note, shall be deemed to include references to such document or
     agreement as amended, supplemented, restated or replaced and in effect from
     time

                                       3
<PAGE>

     to time in accordance with its terms and subject to compliance with the
     requirements, if any, set forth herein and therein;

               (d) references to any party to this Promissory Note or any other
     document or agreement or to any other Person shall include its permitted
     successors and assigns;

               (e) when used in this Promissory Note, the words "including",
     "includes" and "include" shall be deemed to be followed in each instance by
     the words "without limitation";

               (f) when used in this Promissory Note, the words "herein",
     "hereby", "hereunder", "hereof, "hereto", "hereinbefore", and
     "hereinafter", and words of similar import, shall refer to this Promissory
     Note in its entirety and not to any particular section, subsection,
     paragraph, sub-paragraph, clause or other subdivision of this Promissory
     Note; and

               (g) when used herein, the singular shall include the plural, the
     plural shall include the singular and the use of any gender shall include
     all genders, unless the context requires otherwise.

                                   ARTICLE II

                   PAYMENTS OF PRINCIPAL, PREMIUM AND INTEREST

     2.1 Payment of Principal. Except as otherwise provided herein, Issuer
agrees to pay the principal amount of this Promissory Note in full on
[__________]. This Promissory Note is one of the promissory notes in the
aggregate principal amount of $[__________] (the "Notes") issued by Issuer
pursuant to the [Note Purchase Agreement] dated as of January 15, 2008 (the
"Agreement"), between the Issuer and [______] (the "Buyer"), pursuant to which
Issuer sold the Notes to the Buyer.

     2.2 Payment of Interest.

          (a) General. Interest shall accrue on the unpaid principal amount of
this Promissory Note from the date of this Promissory Note to maturity (whether
by acceleration, notice of prepayment or otherwise) at the rate per annum equal
to [_____]% per annum (the "Interest Rate") and shall be payable on the last day
of each Interest Period.

          (b) Default Interest. Upon the occurrence and during the continuance
of any Event of Default, interest shall accrue and be payable by Issuer on the
unpaid principal amount hereof, together with any and all past due interest and
other past due amounts due hereunder, at the Interest Rate plus an additional
[_____]% per annum.

                                       4
<PAGE>

     2.3 Optional Prepayments. For so long as any principal of, accrued interest
on, or any other amount due in respect of the Term Loan remains unpaid, Issuer
is not permitted to prepay the principal amount of this Promissory Note.

     2.4 Terms of Payment.

          (a) All payments under this Promissory Note shall be made without
defense, set-off or counterclaim to the Holder not later than 11:00 a.m. (New
York, New York time) on the date when due and shall be made in United States
dollars in the manner provided in clauses (b) and (c) below.

          (b) Subject to clause (c) below, payments of principal, premium, if
any, and interest becoming due and payable on this Promissory Note shall be made
at the principal office of Issuer in York, Pennsylvania. Issuer may at any time,
by notice to the Holder, change the place of payment of the Notes so long as
such place of payment shall be either the principal office of Issuer in York,
Pennsylvania or the principal office of a bank or trust company in New York, New
York.

          (c) So long as [_____] or its nominee shall be a Holder of this
Promissory Note, and notwithstanding anything contained in clause (b) above or
elsewhere herein to the contrary, Issuer will pay all sums due on this
Promissory Note for principal, premium, if any, and interest by the method and
at the address as the Holder shall from time to time specify to Issuer in
writing for such purpose, without the presentation or surrender of this
Promissory Note or the making of any notation hereon, except that upon written
request of Issuer made concurrently with or reasonably promptly after payment or
prepayment in full of this Promissory Note, the Holder shall surrender this
Promissory Note for cancellation, reasonably promptly after any such request, to
Issuer at its principal executive office or at the place of payment most
recently designated by Issuer pursuant to clause (b) above. Prior to any sale or
other disposition of this Promissory Note by the Holder or any nominee of the
Holder, the Holder will, at its election, either endorse hereon the amount of
principal paid hereon and the last date to which interest has been paid hereon
or surrender this Promissory Note to Issuer in exchange for a new Note.

          (d) (i) Any and all payments by Issuer under this Promissory Note
shall be made free and clear of and without deduction for any and all present or
future taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding taxes imposed on or measured by the
net income of the Holder, franchise taxes, branch profits taxes imposed by the
United States of America, and, in the case of a Foreign Holder, the amount of
any withholding obligation that would not have arisen but for the inability or
failure of such Foreign Holder to comply with the provisions of clause (iv)
below unless such withholding is imposed as a result of a change in law, tax
treaty or regulation occurring subsequent to the date on which such Foreign
Holder originally acquired this Promissory Note (all such excluded net income
taxes,

                                       5

<PAGE>

franchise taxes, branch profits taxes, and withholding collectively referred to
as the "Excluded Taxes"; all such non-excluded taxes, levies, imposts,
deductions, charges, withholdings and liabilities being collectively referred to
as "Taxes"). If Issuer shall be required by law to deduct any Taxes from or in
respect of any sum payable under this Promissory Note to the Holder, (A) the sum
so payable shall be increased by such amount (the "Gross-up Amount") as may be
necessary so that after making all required deductions (including deductions
with respect to Taxes owed by the Holder on the Gross-up Amount) the Holder
receives an amount equal to the sum it would have received had no such
deductions been made, (B) Issuer shall make such deductions, and (C) Issuer
shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law.

          (ii) Issuer will indemnify the Holder for the full amount of Taxes
(together with any Taxes or Excluded Taxes owed by the Holder applicable to the
Gross-up Amount payable under clause (i) above or on the indemnification
payments made by Issuer under this clause (ii), but without duplication
thereof), and any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto, whether or not such Taxes or such Excluded
Taxes were correctly or legally asserted, so as to compensate the Holder for any
loss, cost, expense or liability incurred as a consequence of any such Taxes.
The Holder claiming indemnification shall make written demand therefor no later
than one year after the earlier of (A) the date on which the Holder makes
payment of such Taxes or Excluded Taxes and (B) the date on which the
appropriate Governmental Authority makes written demand on the Holder for
payment of such Taxes or Excluded Taxes. Payment pursuant to such
indemnification shall be made within 10 days from the date the Holder makes
written demand therefor. Within 30 days after the date of Issuer's payment of
Taxes, Issuer will furnish to the Holder the original or a certified copy of a
receipt evidencing payment thereof.

          (iii) The obligations of Issuer contained in this Section shall
survive the payment in full of the principal of, premium, if any, and interest
hereunder.

          (iv) Any Foreign Holder shall deliver to Issuer, at the time or times
prescribed by applicable law or reasonably requested by Issuer, such properly
completed and executed documentation prescribed by applicable law as will permit
such payments to be made without withholding. Should a Holder be subject to
withholding tax because of the Holder's failure to comply with the provisions of
this clause (iv), Issuer shall take such steps (at the Holder's expense) as the
Holder shall reasonably request in writing to assist the Holder to recover such
tax.

          (e) All computations of interest and fees hereunder and under the
other Notes shall be made on the basis of a year of 360 days for the actual
number of days (including the first day but excluding the last day) occurring in
the period for which such interest or fees are payable (to the extent computed
on the basis of days elapsed).

                                       6

<PAGE>

          (f) Each payment on this Promissory Note shall be accompanied by a
written statement of the Issuer setting forth in detail the portion of such
payment that constitutes interest, the portion of such payment that constitutes
a payment of principal, and the portion of such payment that represents any
other amount due hereunder.

     2.5 Denominations. This Promissory Note may be in the denomination of
$[__________] or any amount in excess thereof. At the option of the Holder, this
Promissory Note may be exchanged for a Note or Notes in any other denomination
or denominations permitted hereby and of a like aggregate principal amount and
tenor, upon surrender of this Promissory Note to be exchanged at the principal
office of Issuer. Whenever this Promissory Note is so surrendered for exchange,
Issuer shall issue and execute the Note or Notes which the Holder is entitled to
receive.

                                   ARTICLE III

                                EVENTS OF DEFAULT

     3.1 Default. The occurrence of any of the following events shall constitute
an event of default ("Event of Default") under this Promissory Note (whatever
the reason for such event and whether or not it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree, order, rule or regulation of any Governmental Authority):

               (a) Issuer shall fail to pay any principal of any Note, or Issuer
     shall fail to pay any interest on any Note or any other amount owing
     hereunder or under the Agreement within three Business Days after such
     interest or other amount becomes due in accordance with the terms hereof or
     thereof; or

               (b) any representation or warranty made at any time by the Issuer
     herein or in the Agreement, or in any certificate, other instrument or
     statement furnished pursuant to the provisions hereof or thereof, shall
     prove to have been false or misleading in any material respect as of the
     time it was made or furnished; or

               (c) Issuer shall default in the observance or performance of any
     covenant, condition or provision hereof or of the Agreement (other than
     those referred to in clauses (a) and (b) above) and such default shall
     continue unremedied for a period of 30 days after the earlier of (i) a
     responsible officer of Issuer obtaining actual knowledge of such default
     and (ii) Issuer receiving written notice of such default from the holder of
     this Promissory Note; or

               (d) Issuer (i) is generally not paying, or admits in writing its
     inability to pay, its debts as they become due, (ii) files, or consents by
     answer or otherwise to the filing against it of, a petition for relief or
     reorganization or

                                       7

<PAGE>

     arrangement or any other petition in bankruptcy, for liquidation or to take
     advantage of any bankruptcy, insolvency, reorganization, moratorium or
     other similar law of any jurisdiction, (iii) makes an assignment for the
     benefit of its creditors, (iv) consents to the appointment of a custodian,
     receiver, trustee or other officer with similar powers with respect to it
     or with respect to any substantial part of its property, (v) is adjudicated
     as insolvent or to be liquidated, or (vi) takes any organizational action
     for the purpose of any of the foregoing; or

               (e) a court or Governmental Authority of competent jurisdiction
     enters an order appointing, without consent by the Issuer, a custodian,
     receiver, trustee or other officer with similar powers with respect to it
     or with respect to any substantial part of its property, or constituting an
     order for relief or approving a petition for relief or reorganization or
     any other petition in bankruptcy or for liquidation or to take advantage of
     any bankruptcy or insolvency law of any jurisdiction, or ordering the
     dissolution, winding-up or liquidation of the Issuer, or any such petition
     shall be filed against the Issuer and such petition shall not be dismissed
     within 60 days; or

               (f) Issuer is dissolved or liquidated or takes any organizational
     action for the purpose of dissolving or liquidating; or

               (g) (i) any person or group of persons (within the meaning of
     Sections 13(d) or 14(a) of the Securities Exchange Act of 1934, as amended)
     shall have acquired, after the date hereof, beneficial ownership of (within
     the meaning of Rule 13d-3 promulgated by the SEC under said Act) 20.00% or
     more of the voting capital stock of P. H. Glatfelter Company, or (ii)
     within a period of twelve (12) consecutive calendar months, individuals who
     were directors of the Issuer on the first day of such period (together with
     any new directors whose election by the board of directors of the Issuer or
     whose nomination for election by the shareholders of the Issuer was
     approved by a vote of a majority of the directors then still in office who
     were either directors as of the first day of such period or whose election
     or nomination for election was previously so approved) shall cease to
     constitute a majority of the board of directors of the Issuer.

     3.2 Remedies.

          (a) Upon the occurrence and during the continuation of an Event of
Default the Holder may, in its sole discretion, declare this Promissory Note,
including, without limitation, principal, premium, if any, accrued interest and
costs of collection (including, without limitation attorneys' fees and
disbursements if collected by or through an attorney at law or in bankruptcy,
receivership or other judicial proceedings), immediately due and payable,
without presentment, demand, protest or any other notice of any kind, all of
which are expressly waived.

                                       8

<PAGE>

          (b) Upon the occurrence of an Event of Default described in Section
3.l(d), 3.1(e) or 3.1(f), this Promissory Note, including, without limitation,
principal, premium, if any, accrued interest and costs of collection (including,
without limitation, attorneys' fees if collected by or through an attorney at
law or in bankruptcy, receivership or other judicial proceedings), shall
automatically become immediately due and payable, without presentment, demand,
protest or any other notice of any kind, all of which are expressly waived.

          (c) Upon the occurrence of an Event of Default and acceleration of
this Promissory Note as provided in Section 3.2(a) or (b), the Holder may pursue
any remedy available under this Promissory Note or available at law or in
equity, all of which shall be cumulative. The order and manner in which the
rights and remedies of the Holder may be exercised shall be determined by the
Holder in its sole discretion.

          (d) All payments with respect to this Promissory Note received by the
Holder after the occurrence of an Event of Default shall be applied first, to
the costs and expenses (including actual attorneys' fees and disbursements)
incurred by the Holder as a result of such Event of Default, second, to the
payment of premium, if any, and accrued and unpaid interest on this Promissory
Note, to and including the date of such application, third, to the payment of
the unpaid principal of this Promissory Note, and fourth, to the payment of all
other amounts then owing to the Holder under this Promissory Note. No
applications of the payments will cure any Event of Default or prevent
acceleration, or continued acceleration, of amounts payable under this
Promissory Note or prevent the exercise, or continued exercise, of rights or
remedies of the Holder hereunder or under applicable law.

                                   ARTICLE IV

                                    COVENANTS

     4.1 Annual Financial Statements. if Issuer (or any permitted successor to
Issuer) ceases to be a company subject to the reporting requirements of Section
13(a) or 15(d) of the Securities Act, then as soon as available and in any event
within 90 days after the end of each fiscal year of the Issuer, the Issuer shall
furnish, or cause to be furnished to the Holder, financial statements of the
Issuer consisting of a consolidated balance sheet as of the end of such fiscal
year, and related consolidated statement of income, consolidated retained
earnings and cash flows for the fiscal year then ended, all in reasonable detail
and setting forth in comparative form the financial statements as of the end of
and for the preceding fiscal year, and certified by independent certified public
accountants of nationally recognized standing. The certificate or report of
accountants shall be free of qualifications (other than any consistency
qualification that may result from a change in the method used to prepare the
financial statements as to which such accountants concur) and shall not indicate
the occurrence or existence of any event, condition or contingency which would
materially impair the prospect of payment or

                                       9

<PAGE>

performance of any covenant, agreement or duty of Issuer under this Promissory
Note or the Note Purchase Agreement.

     4.2 Existence. The Issuer shall maintain its legal existence as a
corporation and its license or qualification and good standing in each
jurisdiction in which its ownership or lease of property or the nature of its
business makes such license or qualification necessary, except to the extent the
failure to do so would not reasonably be expected to result in a Material
Adverse Effect.

     4.3 Books and Records. The Issuer shall maintain and keep proper books of
record and account which enable the Issuer to issue financial statements in
accordance with GAAP and as otherwise required by applicable laws of any
Governmental Authority having jurisdiction over the Issuer, and in which full,
true and correct entries shall be made in all material respects of all its
dealings and business and financial affairs.

                                    ARTICLE V

                                  MISCELLANEOUS

     5.1 Usury. It is the intent of Issuer and the Holder not to violate any
federal or state law, rule or regulation pertaining either to usury or to the
contracting for or charging or collecting of interest, and Issuer and the Holder
agree that, should any provision of this Promissory Note or any act performed
hereunder violate any such law, rule or regulation, then the excess of interest
contracted for or charged or collected over the maximum lawful rate of interest
shall be applied to the outstanding principal indebtedness due to the Holder by
Issuer under this Promissory Note.

     5.2 Assignment. Subject to the following sentence, the Holder may assign,
sell, transfer or pledge this Promissory Note without the consent of Issuer, and
any reference herein to the Holder shall be treated as a reference to any such
assignee, purchaser, transferee or pledgee. Issuer may not assign or otherwise
transfer its obligations with respect to this Promissory Note without the prior
written consent of the Holder.

     5.3 Absolute Obligation. The obligation of Issuer to pay the principal
balance hereof to the Holder shall be absolute and unconditional, and Issuer
shall make such payment without abatement, diminution or deduction regardless of
any cause or circumstances whatsoever, including, without limitation, any
defense, setoff, recoupment or counterclaim which Issuer may have or assert
against the Holder or any other Person.

     5.4 Waiver. ISSUER WAIVES PRESENTMENT AND DEMAND FOR PAYMENT, NOTICE OF
DISHONOR, PROTEST AND NOTICE OF PROTEST OF THIS PROMISSORY NOTE, AND ALL OTHER
NOTICES IN CONNECTION WITH

                                       10

<PAGE>

THE DELIVERY, ACCEPTANCE, PERFORMANCE, DEFAULT OR ENFORCEMENT OF THIS PROMISSORY
NOTE.

     5.5 Amendments.

          (a) This Promissory Note may be amended, and the observance of any
term hereof may be waived (either retroactively or prospectively), with (and
only with) the written consent of Issuer and the Holder.

          (b) Issuer will provide the Holder (irrespective of the amount of
Notes then owned by it) with sufficient information, sufficiently far in advance
of the date a decision is required, to enable the Holder to make an informed and
considered decision with respect to any proposed amendment, waiver or consent in
respect of any of the provisions of the Notes. Issuer will deliver executed or
true and correct copies of each amendment, waiver or consent effected pursuant
to the provisions of this Section 5.5 to the Holder promptly following the date
on which it is executed and delivered by, or receives the consent or approval
of, the applicable Holders of Notes.

          (c) Issuer will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or
otherwise, or grant any security, to any Holder of Notes as consideration for or
as an inducement to the entering into by any such Holder of any waiver or
amendment of any of the terms and provisions of any Note unless such
remuneration is concurrently paid, or security is concurrently granted, on the
same terms, ratably to each Holder of Notes then outstanding even if such Holder
did not consent to such waiver or amendment.

          (d) No amendment or waiver of the terms of this Promissory Note will
extend to or affect any obligation, covenant, agreement or Event of Default not
expressly amended or waived or impair any right consequent thereon. No course of
dealing between Issuer and the Holder of any Note nor any delay in exercising
any rights under any Note shall operate as a waiver of any rights of the Holder.

     5.6 Reimbursement. Issuer hereby agrees to pay or reimburse the Holder for
all costs, expenses or losses incurred by the Holder in connection with the
collection or enforcement of the provisions hereof or of its rights in
connection with this Promissory Note (whether or not any formal action or
proceeding is commenced), including, but not limited to, the entire amount of
legal or collection fees and disbursements incurred by the Holder.

     5.7 Construction. Should any part or provision of this Promissory Note
require judicial interpretation, Issuer and the Holder agree that the court
interpreting such part or provision shall not apply a presumption that the terms
hereof shall be more strictly construed against one party by reason of the rule
of construction that a document is to be more strictly construed against the
party that itself or through its agent prepared the same,

                                       11

<PAGE>

it being agreed that Issuer and the Holder have both participated in the
preparation of this Promissory Note.

     5.8 Severability. Any provision of this Promissory Note that is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or enforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provisions in any other jurisdiction.

     5.9 No Release. The rights, powers and remedies provided to the Holder
herein are cumulative and not exclusive of any right, power or remedy provided
at law or in equity. Failure or forbearance of the Holder to exercise any right
hereunder or otherwise granted at law or equity shall not affect or release
Issuer from its liability hereunder and shall not constitute a waiver of such
right unless so stated by the Holder in writing and then only in the specific
instance and for the specific purpose given.

     5.10 Binding Effect. The Promissory Note shall inure to the benefit of the
Holder and its successors and assigns, and shall be binding upon Issuer, its
permitted successors and assigns.

     5.11 Governing Law. THIS PROMISSORY NOTE SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO
ITS PRINCIPLES OR RULES OF CONFLICT OF LAWS (OTHER THAN GOL Section 5-1401 OR
ANY SUCCESSOR PROVISION).

     5.12 Consent to Jurisdiction. Issuer and, by its acceptance of this
Promissory Note, the Holder agree that any and all actions arising under or in
respect of this Promissory Note may be litigated in any federal or state court
of competent jurisdiction located in the State of New York. Each of Issuer and
the Holder irrevocably submits to the personal and non-exclusive jurisdiction of
such courts for itself and in respect of its property with respect to such
action. Issuer and the Holder each agree that venue would be proper in any of
such courts, and hereby waive any objection that any such court is an improper
or inconvenient forum for the resolution of any such action. Issuer and the
Holder further agree that the mailing by certified or registered mail, return
receipt requested, to the addresses specified for notice in the Agreement of any
process or summons required by any such court shall constitute valid and lawful
service of process against it, without the necessity for service by any other
means provided by statute or rule of court.

     5.13 Time. Time is of the essence under this Promissory Note.

     5.14 WAIVER OF JURY TRIAL. EACH OF THE ISSUER AND, BY ITS ACCEPTANCE OF
THIS PROMISSORY NOTE, THE HOLDER HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL

                                       12

<PAGE>

RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS PROMISSORY NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY.

                            [signature page follows]

                                       13

<PAGE>

     IN WITNESS WHEREOF, Issuer has executed this Promissory Note on
[__________].

                                        P. H. GLATFELTER COMPANY

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

<PAGE>

                                    EXHIBIT C

                                    [FORM OF]
                            ASSIGNMENT AND ACCEPTANCE

          Reference is made to the Term Loan Agreement, dated as of January 15,
2008 (as amended, supplemented or otherwise modified from time to time, the
"Term Loan Agreement"), among GPW VIRGINIA TIMBERLANDS LLC (the "Borrower"), the
several banks and other financial institutions or entities from time to time
parties thereto (the "Lenders"), and SUNTRUST BANK, as agent for the Lenders (in
such capacity, the "Agent"). Unless otherwise defined herein, terms defined in
the Term Loan Agreement and used herein shall have the meanings given to them in
the Term Loan Agreement.

          The Assignor identified on Schedule 1 hereto (the "Assignor") and the
Assignee identified on Schedule 1 hereto (the "Assignee") agree as follows:

     1. The Assignor hereby irrevocably sells and assigns to the Assignee
without recourse to the Assignor, and the Assignee hereby irrevocably purchases
and assumes from the Assignor without recourse to the Assignor, as of the
Effective Date (as defined below), the interest described in Schedule 1 hereto
(the "Assigned Interest") in and to the Assignor's rights and obligations under
the Term Loan Agreement with respect to the Term Loan in the Term Loan Agreement
as are set forth on Schedule 1 hereto (individually, an "Assigned Loan";
collectively, the "Assigned Loans"), in a principal amount for each Assigned
Loan as set forth on Schedule 1 hereto.

     2. The Assignor (a) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Term Loan Agreement or with respect to the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of the Term Loan Agreement, any other Loan Document or any other instrument or
document furnished pursuant thereto, other than that the Assignor has not
created any adverse claim upon the interest being assigned by it hereunder and
that such interest is free and clear of any such adverse claim; (b) makes no
representation or warranty and assumes no responsibility with respect to the
financial condition of the Borrower or any obligor or the performance or
observance by the Borrower or any obligor of any of its obligations under the
Term Loan Agreement or any other Loan Document or any other instrument or
document furnished pursuant hereto or thereto; and (c) attaches any Notes held
by it evidencing the Assigned Loan and [(i)] requests that the Agent, upon
request by the Assignee, exchange the attached Term Notes, if any, for a new
Term Note or Term Notes payable to the Assignee [and (ii) if the Assignor has
retained any interest in an Assigned Loan, requests that the Agent exchange the
attached Term Notes, if any, for a new Term Note or Term Notes payable to the
Assignor, in each case] in amounts which reflect the assignment being made
hereby (and after giving effect to any other assignments which have become
effective on the Effective Date).

<PAGE>

     3. The Assignee (a) represents and warrants that it is legally authorized
to enter into this Assignment and Acceptance including without limitation, the
requirement that it be a "qualified purchaser" as defined in Section 2(a)(51) of
the Investment Company Act of 1940; (b) confirms that it has received a copy of
the Term Loan Agreement and each other Loan Document which such Assignee has
requested, and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Assignment and
Acceptance; (c) agrees that it will, independently and without reliance upon the
Assignor, the Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Term Loan Agreement,
the other Loan Documents or any other instrument or document furnished pursuant
hereto or thereto; (d) appoints and authorizes the Agent to take such action as
agent on its behalf and to exercise such powers and discretion under the Term
Loan Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto as are delegated to the Agent by the terms
thereof, together with such powers as are incidental thereto; and (e) agrees
that it will be bound by the provisions of the Term Loan Agreement and will
perform in accordance with its terms all the obligations which by the terms of
the Term Loan Agreement are required to be performed by it as a Lender including
its obligations, if any, pursuant to Section 2.14 of the Term Loan Agreement.

     4. The effective date of this Assignment and Acceptance shall be the
Effective Date of Assignment described in Schedule 1 hereto (the "Effective
Date"). Following the execution of this Assignment and Acceptance, it will be
delivered to the Agent for acceptance by it and recording by the Agent pursuant
to the Term Loan Agreement, effective as of the Effective Date (which shall not,
unless otherwise agreed to by the Agent, be earlier than five Business Days
after the date of such acceptance and recording by the Agent).

     5. Upon such acceptance and recording, from and after the Effective Date,
the Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) [to the Assignor for
amounts which have accrued to the Effective Date and to the Assignee for amounts
which have accrued subsequent to the Effective Date] [to the Assignee whether
such amounts have accrued prior to the Effective Date or accrue subsequent to
the Effective Date. The Assignor and the Assignee shall make all appropriate
adjustments in payments by the Agent for periods prior to the Effective Date or
with respect to the making of this assignment directly between themselves.]

     6. From and after the Effective Date, (a) the Assignee shall be a party to
the Term Loan Agreement and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and under the
other Loan Documents and shall be bound by the provisions thereof and (b) the
Assignor shall, to the extent provided in this Assignment and Acceptance and the
Term Loan Agreement, relinquish its rights and be released from its obligations
under the Term Loan Agreement.

     7. This Assignment and Acceptance shall be governed by and construed in
accordance with the laws of the State of New York.

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Acceptance to be executed as of the date first above written by their respective
duly authorized officers on Schedule 1 hereto.

<PAGE>

                                   Schedule 1
                          to Assignment and Acceptance

Name of Assignor:
                  ----------------------
Name of Assignee:
                  ----------------------
Effective Date of Assignment:
                              ----------

<TABLE>
<CAPTION>
Principal Amount Assigned                                    Percentage Assigned
-------------------------                                    -------------------
<S>                                                          <C>
$__________                                                         _____%
</TABLE>

[Name of Assignee]                      [Name of Assignor]

-------------------------------------   ----------------------------------------
Name:                                   Name:
Title:                                  Title:

Accepted:                               Consented to (if required pursuant
                                        to the Term Loan Agreement):

SUNTRUST BANK,                          GPW VIRGINIA TIMBERLANDS LLC
as Agent

-------------------------------------   ----------------------------------------
Name:                                   Name:
Title:                                  Title:

                                        4

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