Document:

EXHIBIT 10.12

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights
Agreement (“Agreement”) is made this 29th day of October, 2004 by and
among Kooskia Investment Corporation, a Delaware corporation (“Boise Sub”),
Forest Products Holdings, L.L.C., a Delaware limited liability company (“FPH”),
and Boise Land & Timber Holdings Corp., a Delaware corporation (“Timber
Holding Co.”).

 

Preliminary
Recitals

 

1.                                       Boise
Cascade Corporation, a Delaware corporation and sole shareholder of Boise Sub
(to be renamed “OfficeMax Incorporated” on November 1, 2004, “BCC”),
FPH and Timber Holding Co. are parties to that certain Asset Purchase
Agreement, dated as of July 26, 2004 (as amended from time to time in
accordance with its terms, the “Asset Purchase Agreement”);

 

2.                                       Pursuant
to and subject to the terms and conditions of the Asset Purchase Agreement, at
the closing of the transactions contemplated thereby, certain wholly-owned
Subsidiaries of Boise Land & Timber Corp., a Delaware corporation and a
wholly-owned subsidiary of Timber Holding Co., are acquiring substantially all
of the timberlands assets of BCC, and certain of Timber Holding Co.’s
Affiliates are acquiring substantially all of the other assets of BCC’s forest
products business and certain of its Subsidiaries and in connection therewith,
Boise Sub is acquiring shares of Timber Holding Co.;

 

3.                                       As
an inducement to Boise Sub and FPH to enter into and consummate the
transactions contemplated by the Asset Purchase Agreement, Timber Holding Co.
has agreed to provide certain registration rights to Boise Sub and FPH and
transferees (to the extent provided herein) of their equity securities of
Timber Holding Co. as provided herein.

 

NOW, THEREFORE, the
parties hereto agree as follows:

 

1.                                       Certain
Definitions.

 

“Common Stock”
means the Series B Common Stock, par value $.01 per share, of Timber Holding
Co.

 

“Initial Public
Offering” shall mean the first underwritten public offering pursuant to an
effective registration statement under the Securities Act (or any comparable form
under any similar statute then in force), covering the offer and sale of Common
Stock.

 

“Person” means an
individual, a partnership, a corporation, an association, a joint stock
company, a trust, a joint venture, a limited liability company or other unincorporated
organization, and a governmental entity or any department, agency or political
subdivision thereof.

 

 

“Registrable
Securities” means, as of any date: (i) Common Stock issued on the date
hereof to Boise Sub pursuant to the Asset Purchase Agreement and issued to FPH
or any of its Affiliates on or prior to the date hereof; (ii) any Common Stock
issued or issuable with respect to the Common Stock in the preceding clause (i)
by way of or in connection with a stock dividend, stock split, combination of
shares, share subdivision, share exchange, recapitalization, merger,
consolidation or other reorganization or transaction, and (iii) any other
Common Stock otherwise acquired by Boise Sub or FPH (including upon conversion
of any other shares of capital stock). As of any date, Registrable Securities
owned by Boise Sub or any of its Affiliates are sometimes referred to herein as
“Boise Sub Registrable Securities.” As of any date, Registrable
Securities owned by FPH or any of its Affiliates are sometimes referred to
herein as “FPH Registrable Securities.” As of any date, Registrable
Securities owned by any direct or indirect transferee of Boise Sub (other than
an Affiliate of Boise Sub) or by any direct or indirect transferee of FPH
(other than an Affiliate of FPH) are sometimes referred to herein as “Transferee
Registrable Securities.” As to any particular Registrable Securities, such
securities will cease to be Registrable Securities when they have been
distributed to the public pursuant to a offering registered under the
Securities Act of 1933, as amended from time to time (the “Securities Act”),
or distributed to the public in compliance with Rule 144 under the Securities
Act.  For purposes of this Agreement, a
Person will be deemed to be a holder of Registrable Securities whenever such
Person has the right to acquire directly or indirectly such Registrable
Securities (upon conversion or exercise in connection with a transfer of
securities or otherwise, but disregarding any restrictions or limitations upon
the exercise of such right), whether or not such acquisition has actually been
effected.

 

“Registration Expenses”
means any and all expenses incident to performance of, or compliance with any
registration of securities pursuant to, this Agreement, including, without
limitation: (i) the fees, disbursements and expenses of Timber Holding Co.’s
counsel and accountants; (ii) the fees, disbursements and expenses of one or
more firms, as applicable pursuant to the terms of this Agreement, selected as
counsel for the holders of the Registrable Securities in connection with the
registration of the securities to be disposed of; (iii) all expenses, including
registration and filing fees, in connection with the preparation, printing,
filing and distribution of the registration statement, any preliminary
prospectus or final prospectus, term sheets and any other offering documents,
and amendments and supplements thereto, and the mailing and delivering of
copies thereof to any underwriters and dealers; (iv) the cost of printing or
producing any underwriting agreements and blue sky or legal investment
memoranda, and any other documents in connection with the offering, sale or
delivery of the securities to be disposed of; (v) all expenses in connection
with the qualification of the securities to be disposed of for offering and
sale under state securities laws, including the fees, disbursements and
expenses of counsel for the underwriters or the holders of the Registrable
Securities in connection with such qualification and in connection with any
blue sky and legal investment surveys; (vi) the filing fees incident to
securing any required review by the National Association of Securities Dealers,
Inc. of the terms of the sale of the securities to be disposed of; (vii) transfer
agents’ and registrars’ fees and expenses and the fees and expenses of any
other agent or trustee appointed in connection with such offering; (viii) all
security engraving and security printing expenses; (ix) all fees, disbursements
and expenses payable in connection with the listing of the securities on any
securities exchange or automated interdealer quotation system and the rating of
such securities; (x) any other fees, disbursements and expenses of underwriters
customarily paid by the sellers of securities (excluding underwriting discounts
and commissions); (xi) all liability

 

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insurance expense;
and (xii) other out-of-pocket expenses of the holders of the Registrable
Securities participating in such registration. Notwithstanding the foregoing,
each holder of the Registrable Securities and Timber Holding Co. shall be
responsible for its own internal administrative and similar costs.

 

2.                                       Demand
Registrations.

 

(a)                                  General.
At any time and from time to time, upon written notice from the holders of at
least 75% of the FPH Registrable Securities requesting that Timber Holding Co.
effect the registration under the Securities Act of any or all of the FPH
Registrable Securities, Timber Holding Co. shall effect the registration (under
the Securities Act and applicable state securities laws) of such securities
(and other Registrable Securities subject to Sections 2(c) and 2(d) below) in
accordance with such notice, Section 5 below and the other provisions of
this Agreement.  At any time and from
time to time after the date (the “Trigger Date”) that is the earlier of
(i) the date that Timber Holding Co.’s Initial Public Offering has been
consummated (the “IPO Date”) and (ii) the fifth anniversary of the
Closing, upon written notice from the holders of at least 75% of the Boise Sub
Registrable Securities requesting that Timber Holding Co. effect the
registration under the Securities Act of any or all of the Boise Sub
Registrable Securities, Timber Holding Co. shall effect the registration (under
the Securities Act and applicable state securities laws) of such securities
(and other Registrable Securities subject to Sections 2(c) and 2(d) below) in
accordance with such notice, Section 5 below and the other provisions of
this Agreement; provided that, notwithstanding the foregoing, Timber
Holding Co. shall have not have any obligation to effect any such registration
or take other actions required by this sentence at any time prior to the IPO
Date if, at the time such request is made, Boise Sub does not hold at least 50%
of the number of shares of Common Stock issued to Boise Sub at closing under
the Asset Purchase Agreement (as equitably adjusted for stock splits, stock
dividends, stock combinations, reverse stock splits, recapitalizations or
similar events effecting such class or series of stock).  Any notice from holders of FPH Registrable
Securities or Boise Sub Registrable Securities pursuant to this Section 2(a)
shall specify the approximate number of Registrable Securities to be registered
and the expected per share price range for the offering. A registration
pursuant to this Section 2 is sometimes referred to herein as a “Demand
Registration.”

 

(b)                                 Limitations
on Demand Registrations: Demand Registration Forms and Expenses. The
holders of FPH Registrable Securities shall be entitled to separately request
pursuant to this Section 2: (i) an unlimited number of effected
registrations on Form S-1 or any similar or successor long form registration (“Long-Form
Registrations”) in which Timber Holding Co. shall pay all Registration
Expenses, (ii) an unlimited number of registrations on Form S-2 or S-3 or any
similar or successor short form registration (“Short-Form Registrations”)
in which Timber Holding Co. shall pay all Registration Expenses; and (iii) an
unlimited number of Long-Form Registrations in which the holders of the
Registrable Securities participating in such registration shall pay all
Registration Expenses.  At and after the
Trigger Date, the holders of Boise Sub Registrable Securities shall be entitled
to separately request pursuant to this Section 2: (x) two Long-Form
Registrations in which Timber Holding Co. shall pay all Registration Expenses,
(y) an unlimited number of Short-Form Registrations in which Timber Holding Co.
shall pay all Registration Expenses; and (z) five Long-Form Registrations in
which the holders of the Registrable Securities participating in such
registration shall pay all Registration Expenses;

 

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provided that, notwithstanding the
foregoing, Timber Holding Co. shall have not have any obligation to effect any
such registration or take other actions required by this sentence at any time
prior to the IPO Date if, at the time such request is made, Boise Sub does not
hold at least 50% of the number of shares of Common Stock issued to Boise Sub
at closing under the Asset Purchase Agreement (as equitably adjusted for stock
splits, stock dividends, stock combinations, reverse stock splits, recapitalizations
or similar events effecting such class or series of stock).

 

For purposes of clause
(iii) above and clause (z) above, each holder of securities included in
accordance with this Agreement in any registration pursuant to clause (iii) or
clause (z) above shall pay those Registration Expenses allocable to the
registration of such holder’s securities so included, and any Registration
Expenses not so allocable will be borne by all sellers of securities included
in such registration in proportion to the aggregate selling price of the
securities to be so registered. Timber Holding Co. shall pay and be solely
responsible for Registration Expenses with respect to registrations effected
under clauses (i), (ii), (x) and (y) above.

 

After Timber Holding Co.
has become subject to the Securities Exchange Act of 1934, as amended from time
to time (“Exchange Act”), Timber Holding Co. will use its reasonable
best efforts to make Short-Form Registrations available for the sale of
Registrable Securities. Demand Registrations will be Short Form Registrations
whenever Timber Holding Co. is permitted to use any applicable short form;
provided, however, that Timber Holding Co. shall nevertheless use a long-form
registration statement in the event that both: (i) the use of a short-form
registration statement would limit the offering to existing security holders,
qualified institutional buyers or other classes of offerees or would otherwise,
in the opinion of the managing underwriters, have an adverse effect on the
offering under the Securities Act and regulations thereunder as then in effect;
and (ii) the holders of 90% of the Boise Sub Registrable Securities or FPH
Registrable Securities, as the case may be, initially requesting the Demand
Registration direct in such request that Timber Holding Co. utilize a long-form
registration statement.

 

Notwithstanding any other
provision of this Agreement to the contrary, a registration requested hereunder
shall not be deemed to have been effected: (i) unless it has become and remains
effective for the period specified in Section 5(b); (ii) if after it has
become effective such registration is interfered with by any stop order,
injunction or other order or requirement of the Securities and Exchange
Commission (“SEC”) or other governmental agency or court for any reason
other than due solely to the fault of the holders of the Registrable Securities
participating therein and, as a result thereof, the Registrable Securities
requested to be registered cannot be completely distributed in accordance with
the plan of distribution set forth in the registration statement; or (iii) if
the conditions to closing specified in any purchase agreement or underwriting
agreement entered into in connection with any such registration are not
satisfied or waived other than due solely to the fault of the holders of the
Registrable Securities participating therein. In addition, a Demand
Registration initially requested by the holders of the Boise Sub Registrable
Securities shall not be deemed to have been effected if the holders of the
Boise Sub Registrable Securities are unable, as a result of the priority provisions
in Section 2(d) below, to sell at least 90% of the Boise Sub Registrable
Securities initially requested to be included in such registration. Similarly, a
Demand Registration initially requested by the holders of the FPH Registrable
Securities shall not be deemed to have been effected if the holders of the FPH
Registrable Securities are unable, as a result of the priority provisions in Section 2(d)
below, to

 

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sell at least 90% of the
FPH Registrable Securities initially requested to be included in such
registration.

 

(c)                                  Notice
to Other Holders: Selection of Underwriter and Holder’s Counsel.  Within five (5) days after receipt of a
request for a Demand Registration, Timber Holding Co. will give prompt written
notice (in any event within five (5) days after its receipt of notice of any
exercise of Demand Registration rights under this Agreement) of such request to
all other holders of Registrable Securities, and subject to Section 2(d)
below, will include within such registration all Registrable Securities with
respect to which Timber Holding Co. has received written requests for inclusion
therein within fifteen (15) days after receipt of Timber Holding Co.’s notice.
The holders of a majority of the Boise Sub Registrable Securities or FPH
Registrable Securities, as applicable, submitting the initial request (i.e.
excluding the holders submitting requests after Timber Holding Co.’s notice)
shall have the right to select the investment bankers and managers for the
offering, subject in the case of holders of Boise Sub Registrable Securities
submitting the original request, to the approval of the holders of FPH Registrable
Securities, if any, participating in such registration pursuant to this
Agreement, which approval shall not be unreasonably withheld.

 

Counsel for all holders
of Registrable Securities in connection with such registration shall be
selected: (i) by the holders of a majority of the Boise Sub Registrable
Securities, if holders of the Boise Sub Registrable Securities make the initial
registration request; or (ii) by the holders of a majority of the FPH
Registrable Securities, if the holders of the FPH Registrable Securities make
the initial registration request; provided, however, if the holders of a
majority of the FPH Registrable Securities, on the one hand, and a majority of
the Boise Sub Registrable Securities, on the other hand, reasonably conclude,
after consultation with the other, that such representation is likely to result
in a conflict of interest or materially adversely affect either group’s rights
in connection with such registration, then the holders of a majority of the FPH
Registrable Securities and the holders of a majority of the Boise Sub
Registrable Securities, respectively, shall each be entitled to select a
separate firm to represent them as counsel in connection with such
registration. The fees and expenses of such firm or firms acting as counsel for
the holders of the Registrable Securities shall be paid by Timber Holding Co.

 

(d)                                 Priority
on Demand Registrations. Timber Holding Co. shall not include in any Demand
Registration any securities which are not Registrable Securities without the
prior written consent of the holders of at least 75% of the Registrable
Securities included in such registration. If a Demand Registration is an
underwritten offering and the managing underwriters advise Timber Holding Co.
in writing that in their opinion the number of Registrable Securities and, if
permitted hereunder, other securities requested to be included in such offering
exceeds the number of Registrable Securities and other securities, if any,
which can be sold in an orderly manner in such offering within a price range
acceptable to the holders of a majority of the Boise Sub Registrable Securities
or FPH Registrable Securities, as applicable, initially requesting
registration, Timber Holding Co. will include in such registration only the number
of Registrable Securities which such underwriters advise in writing can be sold
in such manner and within such price range in the following order of priority:

 

(i)                                     first,
the Boise Sub Registrable Securities and the FPH Registrable Securities
requested to be included therein, pro-rata among the holders of

 

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such Registrable Securities on the basis of the number of shares
requested to be included by each such holder;

 

(ii)                                  second,
the Transferee Registrable Securities, if any, requested to be included
therein, pro-rata among the holders of such Transferee Registrable Securities
on the basis of the number of shares requested to be included by each such
holder; and

 

(iii)                               third,
any other securities requested to be included in such registration.

 

(e)                                  Restrictions
on Demand Registrations. Timber Holding Co. will not be obligated to effect
any Demand Registration within 90 days after the effective date of a previous
Demand Registration or previous registration in which holders of Registrable
Securities were given piggyback rights pursuant to Section 3 at an
offering price acceptable to the holders of the Registrable Securities and in
which there was no reduction in the number of Registrable Securities requested
to be included. Additionally, Timber Holding Co. may postpone for up to 90 days
(on not more than one occasion during any 12-month period) the filing or the
effectiveness of a registration statement for a Demand Registration if, based
on the advice of counsel, Timber Holding Co. reasonably determines that such
Demand Registration would likely have a material adverse effect on any proposal
or plan by Timber Holding Co. to engage in any acquisition of assets (other
than in the ordinary course of business) or any merger, consolidation, tender
offer or similar transaction; provided, however, that in such event, the
holders of Registrable Securities initially requesting such Demand Registration
will be entitled to withdraw such request and, if such request is withdrawn,
such Demand Registration will not count as one of the permitted Demand
Registrations hereunder and Timber Holding Co. will pay all Registration
Expenses in connection with such registration.

 

(f)                                    Other
Registration Rights.  Timber Holding
Co. will not register for the benefit of any Person other than Boise Sub, FPH
or their respective direct or indirect transferees, or grant to any such other
Person the right to request Timber Holding Co. to register or to participate in
Piggyback Registrations with respect to, any equity securities of Timber
Holding Co., or any securities convertible or exchangeable into or exercisable
for such securities, without the prior written consent of holders of a majority
of FPH Registrable Securities then outstanding.

 

3.                                       Piggyback
Registrations.

 

(a)                                  General;
Notice to Holders. In addition to the registration rights in Section 2
above, whenever Timber Holding Co. proposes to register any of its securities
under the Securities Act (other than pursuant to a Demand Registration
hereunder) and the registration form to be used may be used for the
registration of Registrable Securities, Timber Holding Co. will give prompt
written notice (in any event within five (5) days after its receipt of notice
of any exercise of demand registration rights other than under this Agreement)
to all holders of Registrable Securities of its intention to effect such a
registration. Subject to Sections 3(c) and 3(d) below, Timber Holding Co. shall
include in such registration all Registrable Securities with respect to which
Timber Holding Co. has received written requests for inclusion therein within
fifteen (15) days after the receipt of Timber Holding Co.’s notice.
Registrations under this Section 3 are sometimes referred to herein as “Piggyback
Registrations.”

 

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(b)                                 Number
of Piggyback Registrations; Piggyback Registration Expenses. The holders of
the Registrable Securities shall be entitled to participate in an unlimited
number of Piggyback Registrations. The Registration Expenses of the holders of
Registrable Securities will be paid by Timber Holding Co. in all Piggyback
Registrations.

 

(c)                                  Priority
on Primary Piggyback Registrations. Subject to Section 3(f) below, if
a Piggyback Registration is an underwritten primary registration on behalf of
Timber Holding Co., and the managing underwriters advise Timber Holding Co. in
writing that in their opinion the number of securities requested to be included
in such registration exceeds the number which can be sold in an orderly manner
in such offering within a price range acceptable to Timber Holding Co., Timber
Holding Co. will include in such registration only the number of securities
(including Registrable Securities) which such underwriters advise in writing
can be sold in such manner and within such price range in the following order
of priority:

 

(i)                                     first,
the securities Timber Holding Co. proposes to sell;

 

(ii)                                  second,
the Boise Sub Registrable Securities and the FPH Registrable Securities, if
any, requested to be included therein, pro-rata among the holders of such
Registrable Securities on the basis of the number of shares requested to be
included by each such holder;

 

(iii)                               third,
the Transferee Registrable Securities, if any, requested to be included
therein, pro-rata among the holders of such Transferee Registrable Securities
on the basis of the number of shares requested to be included by each such
holder; and

 

(iv)                              fourth,
any other securities requested to be included in such registration.

 

(d)                                 Priority
on Secondary Piggyback Registrations. Subject to Section 3(f) below,
if a Piggyback Registration is an underwritten secondary registration on behalf
of holders of Timber Holding Co.’s securities, and the managing underwriters
advise Timber Holding Co. in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number
which can be sold in an orderly manner in such offering within a price range
acceptable to the holders initially requesting such registration, Timber
Holding Co. will include in such registration: in the case of a registration
with respect to which Timber Holding Co. has provided notice under Section 3(a)
above, only the number of securities (including Registrable Securities) which can
be sold in such manner and within such price range in the following order of
priority:

 

(i)                                     first,
the securities requested to be included therein by the holders requesting such
registration, the Boise Sub Registrable Securities, if any, requested to be
included therein, and the FPH Registrable Securities, if any, requested to be
included therein, pro-rata among the holders of such securities (including
Registrable Securities) on the basis of the number of shares requested to be
included by each such holder;

 

(ii)                                  second,
the Transferee Registrable Securities, if any, requested to be included
therein, pro-rata among the holders of such Transferee

 

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Registrable Securities on the basis of the number of shares requested
to be included by each such holder; and

 

(iii)                               third,
any other securities requested to be included in such registration.

 

(e)                                  Selection
of Underwriter and Holder’s Counsel. 
If any Piggyback Registration is an underwritten offering, the selection
of investment bankers and managers for the offering must be approved by the
holders of a majority of the Registrable Securities included in such Piggyback
Registration. Such approval will not be unreasonably withheld. The holders of
the Boise Sub Registrable Securities and the FPH Registrable Securities shall
have the right to select one or two firms as counsel as provided in Section 2(c)
above, the fees and expenses of which shall be paid by Timber Holding Co.

 

(f)                                    Other
Registrations. If Timber Holding Co. has been requested by the holders of
Registrable Securities to file a registration statement pursuant to Section 2
above or if it has filed a Registration Statement pursuant to this Section 3,
and if such previous request or registration has not been withdrawn or
abandoned, Timber Holding Co. will not file or cause to be effected any other
registration of any of its equity securities or securities convertible or
exchangeable into or exercisable for its equity securities under the Securities
Act (except on Form S-8 or any successor form), whether on its own behalf or at
the request of any holder or holders of such securities, until the expiration
of the effectiveness period required under Section 5(b) below.

 

4.                                       Holdback
Agreements.

 

(a)                                  Agreement
by Holders. Each holder of Registrable Securities agrees not to effect any
public sale or distribution (including sales pursuant to Rule 144 under the
Securities Act) of equity securities of Timber Holding Co., or any securities
convertible into or exchangeable or exercisable for such securities, during the
seven days prior to and the 180-day period beginning on the effective date of
any underwritten Demand Registration or any underwritten Piggyback Registration
in which Registrable Securities are included (except as part of such
underwritten registration), unless the underwriters managing the registered
public offering otherwise agree.

 

(b)                                 Agreements
by Timber Holding Co.. Timber Holding Co. agrees: (i) not to effect or
facilitate any public sale or distribution of its equity securities. or any
securities convertible into or exchangeable or exercisable for such securities,
during the thirty days prior to and during the 180-day period beginning on the
effective date of any underwritten Demand Registration or Piggyback
Registration (except as part of such underwritten Piggyback Registration or
pursuant to registrations on Form S-8 or any successor form), unless the
underwriters managing the registered public offering (and in the case of a
Demand Registration, the holders of a majority of the Registrable Securities
included therein) otherwise agree; and (ii) to cause Timber Holding Co.’s
directors, officers and affiliates not to effect or facilitate any public sale
or distribution (including sales pursuant to Rule 144 under the Securities Act)
of any equity securities, or any securities convertible into or exchangeable or
exercisable for such securities during such period (except as part of such
underwritten registration, if otherwise

 

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permitted), unless the underwriters managing the
registered public offering, the holders of a majority of the Registrable
Securities participating in such registration otherwise agree.

 

5.                                       Registration
and Qualification. If and whenever Timber Holding Co. is required to effect
the registration of any Registrable Securities, Timber Holding Co. shall as
promptly as possible:

 

(a)                                  prepare,
file and use its reasonable best efforts to cause to become effective a
registration statement under the Securities Act relating to the Registrable
Securities to be offered and effect the sale of such Registrable Securities, in
each case in accordance with the intended method of disposition thereof (Timber
Holding Co. shall cause such registration statement to be effective as promptly
as possible but in any event within 120 days of the request);

 

(b)                                 prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective and to comply with the provisions
of the Securities Act with respect to the disposition of all Registrable
Securities included therein until the earlier of: (i) such time as all of such
Registrable Securities included therein have been disposed of in accordance
with the intended methods of disposition; and (ii) the expiration of 180 days
after such registration statement becomes effective; provided, that such
180-day period shall be extended for such number of days that equals the number
of days elapsing from (x) the date the written notice contemplated by paragraph
5(g) below is given by Timber Holding Co. to (y) the date on which Timber
Holding Co. delivers to the holders of the Registrable Securities included in
such registration statement the supplement or amendment contemplated by
paragraph 5(g) below;

 

(c)                                  provide
copies of all registration statements, prospectus and amendments and
supplements to each firm selected as their legal counsel by the holders of the
Registrable Securities in accordance with this Agreement at least ten days
prior to the filing thereof (if practicable, at least one day in the case of an
amendment or supplement prepared pursuant to Section 5(g) below), with
such counsel being provided with the opportunity (but not the obligation) to
review and comment on such documents;

 

(d)                                 furnish
to the holders of the Registrable Securities included in such registration
statement and to any underwriter of such Registrable Securities such number of
conformed copies of such registration statement and of each such amendment and
supplement thereto (in each case including all exhibits), such number of copies
of the prospectus included in such registration statement (including each
preliminary prospectus and any summary prospectus) in conformity with the
requirements of the Securities Act, such documents incorporated by reference in
such registration statement or prospectus, such number of other offering
documents, copies of any and all transmittal letters or other correspondence to
or received from, the SEC or any other governmental agency or self-regulatory
body or other body having jurisdiction (including any domestic or foreign
securities exchange) relating to such offering, and such other documents, as the
holders of such Registrable Securities or such underwriter may reasonably
request;

 

9

 

(e)                                  use
its reasonable best efforts to register or qualify all Registrable Securities
covered by such registration statement under the securities or blue sky laws of
such jurisdictions as the holders of the Registrable Securities included in
such registration statement or any underwriter of such Registrable Securities
shall request, and use its reasonable best efforts to obtain all appropriate
registrations, permits and consents in connection therewith, and do any and all
other acts and things which may be necessary or advisable to enable such
holders of such Registrable Securities or any such underwriter to consummate the
disposition in such jurisdictions of its Registrable Securities covered by such
registration statement;

 

(f)                                    furnish
to the holders of the Registrable Securities included in such registration
statement and to any underwriter of such Registrable Securities: (i) an opinion
of counsel for Timber Holding Co. addressed to the holders of such Registrable
Securities and dated the date of the closing under the underwriting agreement
(if any) (or if such offering is not underwritten, dated the effective date of the
registration statement); and (ii) a “cold comfort” letter addressed to the
holders of such Registrable Securities and signed by the independent public
accountants who have audited the financial statements of Timber Holding Co.
included in such registration statement, in each such case covering
substantially the same matters with respect to such registration statement (and
the prospectus included therein) as are customarily covered in opinions of
issuer’s counsel and in accountants’ letters delivered to underwriters in
underwritten public offerings of securities and such other matters as the
holders of such Securities may reasonably request and, in the case of such
accountants’ letter, with respect to events subsequent to the date of such
financial statements;

 

(g)                                 as
promptly as practicable, notify the holders of the Registrable Securities
included in such registration statement in writing: (i) at any time when a
prospectus relating to a registration statement hereunder is required to be
delivered under the Securities Act, of the happening of any event as a result
of which the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading; and (ii) of any request by the SEC or any other regulatory body or
other body having jurisdiction for any amendment of or supplement to any
registration statement or other document relating to such offering, and in
either such case prepare and furnish to the holders of such Registrable
Securities a reasonable number of copies of a supplement to or an amendment of
such prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus shall not include an
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they are made, not misleading;

 

(h)                                 cause
all such Registrable Securities included in such registration statement to be
listed on each securities exchange on which similar securities issued by Timber
Holding Co. are then listed and, if not so listed, to be listed on an exchange
satisfactory to holders of a majority of Registrable Securities;

 

(i)                                     furnish
for delivery in connection with the closing of any offering of Registrable
Securities pursuant to a registration hereunder unlegended certificates
representing

 

10

 

ownership of the Registrable Securities being sold in
such denominations as shall be requested by the holders of the Registrable
Securities or the underwriters;

 

(j)                                     provide
a transfer agent and registrar for all such Registrable Securities not later
than the effective date of such registration statement;

 

(k)                                  enter
into such customary agreements and take all such other actions as the holders
of a majority of the Registrable Securities being sold or the underwriters, if
any, reasonably request in order to expedite or facilitate the disposition of
such Registrable Securities (including effecting a stock split or a combination
of shares);

 

(l)                                     otherwise
use its best efforts to comply with all applicable rules and regulations of the
SEC, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve
months beginning with the first day of Timber Holding Co.’s first full calendar
quarter after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 thereunder;

 

(m)                               permit
any holder of Registrable Securities which holder, in its sole and exclusive
judgment, might be deemed to be an underwriter or a controlling person of
Timber Holding Co., to participate in the preparation of such registration
statement and to require the insertion therein of material, furnished to Timber
Holding Co. in writing, which in the reasonable judgment of such holder and its
counsel should be included; and

 

(n)                                 in
the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any
related prospectus or suspending the qualification of any Common Stock included
in such registration statement for sale in any jurisdiction, Timber Holding Co.
will use its reasonable best efforts promptly to obtain the withdrawal of such
order.

 

If any such registration
or comparable statement refers to any holder of Registrable Securities by name
or otherwise as the holder of any securities of Timber Holding Co. and if in
its sole and exclusive judgment, such holder is or might be deemed to be a
controlling person of Timber Holding Co., such holder will have the right to
require: (i) the insertion therein of language, in form and substance
satisfactory to such holder and presented to Timber Holding Co. in writing, to
the effect that the holding by such holder of such securities is not to be
construed as a recommendation by such holder of the investment quality of
Timber Holding Co.’s securities covered thereby and that such holding does not
imply that such holder will assist in meeting any future financial requirements
of Timber Holding Co.; or (ii) in the event that such reference to such holder
by name or otherwise is not required by the Securities Act or any similar
federal statute then in force, the deletion of the reference to such holder;
provided that with respect to this clause (ii) such holder will furnish to
Timber Holding Co. an opinion of counsel to such effect.

 

6.                                       Recapitalization;
Underwriting; Due Diligence.

 

(a)                                  For
any Piggyback Registration or Demand Registration prior to the time Timber
Holding Co. becomes subject to the Exchange Act with respect to Registrable
Securities,

 

11

 

Timber Holding Co. shall effect a stock split, stock
dividend or stock combination which in the opinion of the underwriters is
desirable for the sale and marketing of the Registrable Securities to the
public.

 

(b)                                 If
requested by the underwriters for any underwritten offering of Registrable
Securities pursuant to a registration requested under this Agreement, Timber
Holding Co. shall enter into an underwriting agreement with such underwriters
for such offering, which agreement will contain such representations and
warranties by Timber Holding Co. and such other terms and provisions as are
customarily contained in underwriting agreements of Timber Holding Co. to the
extent relevant and as are customarily contained in underwriting agreements
generally with respect to secondary distributions to the extent relevant,
including, without limitation, indemnification and contribution provisions
substantially to the effect and to the extent provided in Section 7(a),
and agreements as to the provision of opinions of counsel and accountants’
letters to the effect and to the extent provided in Section 5(f). Subject
to Section 9 below, the holders of the Registrable Securities included in
such registration shall be parties to any such underwriting agreement and the
representations and warranties by, and the other agreements on the part of,
Timber Holding Co. to and for the benefit of such underwriters, shall also be
made to and for the benefit of the holders of such Registrable Securities.

 

(c)                                  In
connection with the preparation and filing of each registration statement registering
Registrable Securities under the Securities Act pursuant to this Agreement,
Timber Holding Co. shall give the holders of the Registrable Securities
included in such registration and the underwriters, if any, and their
respective counsel, accountants and agents, the opportunity (but such persons
shall not have the obligation) to review the books and records of Timber
Holding Co. and to discuss the business of Timber Holding Co. with its officers
and the independent public accountants who have certified the financial
statements of Timber Holding Co. as shall be necessary, in the opinion of the
holders of such Registrable Securities and such underwriters or their
respective counsel, to conduct a reasonable investigation within the meaning of
the Securities Act.

 

7.                                       Indemnification.

 

(a)                                  Timber
Holding Co. Indemnification. Timber Holding Co. agrees to indemnify, to the
maximum extent permitted by law, each holder of Registrable Securities, its
officers and directors and each Person who controls such holder (within the
meaning of the Securities Act) and the officers, directors, affiliates,
employees and agents of each of the foregoing (whether or not any litigation is
commenced or threatened and whether or not such indemnified Persons are parties
to any litigation commenced or threatened), against all losses, claims,
damages, liabilities and expenses including, without limitation, attorneys’
fees, expert fees and amounts paid in settlement, resulting from or arising out
of any untrue or alleged untrue statement of material fact contained in any
registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, except insofar as the same are caused by or contained in any
information furnished in writing to Timber Holding Co. by such holder expressly
for use therein or by such holder’s failure to deliver a copy of the registration
statement or prospectus or any amendments or supplements thereto after Timber
Holding Co. has furnished such holder with a sufficient

 

12

 

number of copies of the same. In connection with an
underwritten offering, Timber Holding Co. will indemnify such underwriters,
their officers and directors and each Person who controls such underwriters
(within the meaning of the Securities Act) to the same extent as provided above
with respect to the indemnification of the holders of Registrable Securities.
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the holders of the Registrable Securities
or any underwriter and shall survive the transfer of such securities. The
foregoing indemnity agreement is in addition to any liability that Timber
Holding Co. may otherwise have to the holders of the Registrable Securities or
any underwriter of the Registrable Securities or any controlling Person of the
foregoing and the officers, directors, affiliates, employees and agents of each
of the foregoing.

 

(b)                                 Holder
Indemnification. In connection with any registration statement in which a
holder of Registrable Securities is participating, each such holder agrees to
indemnify, to the extent permitted by law, Timber Holding Co., its directors
and officers and each Person who controls Timber Holding Co. (within the
meaning of the Securities Act) and the officers, directors, affiliates,
employees and agents of each of the foregoing (whether or not any litigation is
commenced or threatened and whether or not such indemnified Persons are parties
to any litigation commenced or threatened), against any losses, claims,
damages, liabilities and expenses including, without limitation, attorneys’
fees, expert fees and amounts paid in settlement, resulting from or arising out
of any untrue or alleged untrue statement of material fact contained in the
registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, but only to the extent that such untrue statement or omission
is contained in any information furnished in writing to Timber Holding Co. by
such holder expressly for use in such registration statement; provided,
however, that the obligation to indemnify will be individual to each such
holder and will be limited to the net amount of proceeds received by such
holder from the sale of Registrable Securities pursuant to such registration
statement.

 

(c)                                  Resolution
of Claims. Any Person entitled to indemnification hereunder will: (i) give
prompt written notice to the indemnifying party of any claim with respect to
which it seeks indemnification hereunder; and (ii) unless in such indemnified
party’s reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party. If such defense is assumed, the
indemnifying party will not be subject to any liability for any settlement made
by the indemnified party without its consent (but such consent will not be
unreasonably withheld). An indemnifying party who is not entitled to, or elects
not to, assume the defense of a claim will not be obligated to pay the fees and
expenses of more than one counsel for all parties indemnified by such
indemnifying party with respect to such claim, unless in the reasonable
judgment of any indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to
such claim, in which case such indemnified party will be entitled to have the
fees and expenses of its separate counsel paid by the indemnifying party.

 

(d)                                 Contribution.
If the indemnification provided for in this Section 7 shall for any reason
be unavailable (other than in accordance with its terms) to an indemnified
party in respect of any loss, claim, damage, liability or expense referred to
therein, then each

 

13

 

indemnifying party shall, in lieu of indemnifying such
indemnified party, contribute to the amount paid or payable by such indemnified
party as a result of such loss, claim, damage, liability or expense in such
proportion as shall be appropriate to reflect the relative fault of the
indemnifying party on the one hand and the indemnified party on the other with
respect to the statements or omissions which resulted in such loss, claim,
damage, liability or expense as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to whether
the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by
the indemnifying party on the one hand or the indemnified party on the other.
The amount paid or payable by an indemnified party as a result of the loss,
cost, claim, damage, liability or expense, or action in respect thereof,
referred to above in this Section 7(d) shall be deemed to include, for
purposes of this Section 7(d), any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or
defending any such action or claim. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. In any event, a holder’s obligation to
provide contribution pursuant to this Section 7(d) shall be limited to the
net amount of proceeds received by such holder from the sale of Registrable
Securities pursuant to such registration statement.

 

(e)                                  State
Securities Laws. Indemnification and contribution similar to that specified
in the preceding paragraphs of this Section 7 (with appropriate
modifications) shall be given by Timber Holding Co., the holders of the
Registrable Securities and underwriters with respect to any required
registration or other qualification of securities under any state law or
regulation or governmental authority.

 

(f)                                    Other
Rights. The obligations of the parties under this Section 7 shall be
in addition to any liability which any party may otherwise have to any other
party.

 

8.                                       Rule
144. Timber Holding Co. shall use its reasonable best efforts to ensure
that the conditions to the availability of Rule 144 set forth in paragraph (c)
thereof shall be satisfied. Upon the request of the holders of a majority of
the Boise Sub Registrable Securities or the holders of a majority of the FPH
Registrable Securities, Timber Holding Co. will deliver to such holders a
written statement as to whether it has complied with such requirements.

 

9.                                       Participation
in Underwritten Registrations. No holder of Registrable Securities may
participate in any registration hereunder which is underwritten unless such
holder: (a) agrees to sell such holder’s securities on the basis provided in
any underwriting arrangements contemplated by such offering; and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements; provided, however, that no holder of Registrable Securities
included in any underwritten registration will be required to make: (i) any
representations or warranties to Timber Holding Co., the underwriters or other
Persons, other than representations and warranties regarding such holder, such
holder’s Registrable Securities and such holder’s intended method of
distribution; or (ii) any indemnities to Timber Holding Co., the underwriter or
other Persons on terms which are not substantially identical to the provisions
in

Section 7(b) above.

 

14

 

10.                                 Miscellaneous.

 

(a)                                  No
Inconsistent Agreements. Timber Holding Co. represents and warrants to the
holders of the Registrable Securities that it has not entered into, and agrees
with the holders of the Registrable Securities that it will not hereafter enter
into, any agreement with respect to its securities which is inconsistent or
conflicts with, or violates the rights granted to the holders of Registrable
Securities in, this Agreement.

 

(b)                                 Adjustments
Affecting Registrable Securities. In addition to Timber Holding Co.’s
obligations under Section 6(a) above, Timber Holding Co. will not take any
action, or permit any change to occur, with respect to its securities which
would adversely affect the ability of the holders of Registrable Securities to
include such Registrable Securities in a registration undertaken pursuant to
this Agreement or which would adversely affect the marketability of such
Registrable Securities in any such registration (including effecting a stock
split or a combination of shares).

 

(c)                                  Remedies.
Each holder of Registrable Securities will have all rights and remedies set
forth in this Agreement, Timber Holding Co.’s Certificate of Incorporation and
all rights and remedies which such holders have been granted at any time under
any other agreement and all of the rights which such holders have under any
law. Any Person having any rights under any provision of this Agreement will be
entitled to enforce such rights specifically, without posting a bond or other
security, to recover damages by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law.

 

(d)                                 Amendments;
Waiver. Except as otherwise expressly provided herein, the provisions of
this Agreement may be amended and Timber Holding Co. may take any action herein
prohibited, or omit to perform any act herein required to be performed by it,
only if Timber Holding Co. has obtained the written consent of holders of a
majority of FPH Registrable Securities; provided that if any such
amendment or waiver materially and disproportionately affects holders of Boise
Sub Registrable Securities adversely in a manner different than holders of FPH
Registrable Securities, such amendment or waiver shall be effective against
holders of Boise Sub Registrable Securities only with the prior written consent
of holders of a majority of Boise Sub Registrable Securities then outstanding.  Timber Holding Co. shall deliver written
notice to Boise Sub (or in the event that Boise Sub no longer holds Boise Sub
Registrable Securities, the record holder of the largest number of Boise
Registrable Securities) promptly after any amendment is made that does not
require the consent of the holders of a majority of Boise Registrable
Securities (as determined in accordance with the proviso to the immediately
foregoing sentence).  No other course of
dealing between Timber Holding Co. and the holder of any Registrable Securities
or any delay in exercising any rights hereunder or under the Certificate of
Incorporation will operate as a waiver of any rights of any such holders. For
purposes of this Agreement, shares held by Timber Holding Co. or any of its
Subsidiaries will not be deemed to be Registrable Securities. If Timber Holding
Co. pays any consideration to any holder of Registrable Securities for such
holder’s consent to any amendment, modification or waiver hereunder, Timber
Holding Co. will also pay each other holder granting its consent hereunder
equivalent consideration computed on a pro rata basis.

 

15

 

In the event that the
Securities Act, Exchange Act and/or regulations thereunder, respectively, are
amended in a material respect and one or more of such amendments reduce or
diminish the benefits hereunder to the holders of the Registrable Securities,
including, without limitation, amendments which may be adopted in connection
with the Aircraft Carrier Release (any such reducing or diminishing amendments
being referred to herein as “Securities Law Amendments”), Timber Holding
Co. shall, upon the written request of both (i) Boise Sub, as long as it or any
of its Affiliates owns any Boise Sub Registrable Securities, and (ii) FPH, as
long as it or any of its Affiliates owns any FPH Registrable Securities, amend
this Agreement to provide the holders of the Registrable Securities with
benefits which, after giving effect to such Securities Law Amendments, are
equivalent to the benefits hereunder absent such Securities Law Amendments.

 

(e)                                  Headings.
The headings in this Agreement are inserted for convenience only and shall not
be deemed to define or limit the scope of any section or subsection.

 

(f)                                    Notices.
All requests, notices, demands or other communications shall be in writing and
will be deemed to have been given when delivered to the recipient, when
received by facsimile or electronic transmission (but only if the sender
receives confirmation of receipt from the intended recipient), one (1) business
day after the date when sent to the recipient by overnight courier service, or
five (5) business days after the date when mailed to the recipient by certified
or registered mail, return receipt requested and postage prepaid. Such
requests, notices, demands and other communications will be sent to Boise Sub,
FPH and to Timber Holding Co. at the addresses indicated below:

 

to
Boise Sub:

 

Kooskia
Investment Corporation

c/o
OfficeMax Incorporated

1111
West Jefferson Street

Boise, ID 83728

Attention:
George Harad, Chairman of the Board

Facsimile:  (208) 384-4912

 

with a copy to:

 

OfficeMax Incorporated

1111
West Jefferson Street

Boise, ID 83728

Attention:
Matthew Broad, Vice President and General Counsel

Facsimile:  (208) 384-7945

 

to
FPH:

 

Forest
Products Holdings, L.L.C.

c/o
Madison Dearborn Partners, L.L.C.

Three
First National Plaza

Suite
3800

 

16

 

Chicago,
IL 60602

Attention:
Samuel M. Mencoff

Thomas
S. Souleles

Facsimile:  (312) 895-1056

Email:  smencoff@mdcp.com

tsouleles@mdcp.com

with a
copy to:

 

Kirkland
& Ellis LLP

200
East Randolph Drive

Chicago,
IL 60601

Attention:
Jeffrey W. Richards, Esq.

Facsimile: (312)
861-2200

Email:  jrichards@kirkland.com

 

to Timber Holding
Co.:

 

Boise
Land & Timber Holdings Corp.

c/o
Madison Dearborn Partners, L.L.C.

Three
First National Plaza

Suite
3800

Chicago,
IL 60602

Attention:
Samuel M. Mencoff

Thomas
S. Souleles

Facsimile:  (312) 895-1056

Email:  smencoff@mdcp.com

tsouleles@mdcp.com

 

with a
copy to:

 

Kirkland
& Ellis LLP

200
East Randolph Drive

Chicago,
IL 60601

Attention:
Jeffrey W. Richards, Esq.

Facsimile: (312)
861-2200

Email:  jrichards@kirkland.com

 

or to such other address
or to the attention of such other Person as the recipient party has specified
by prior written notice in accordance with the procedures provided above.
Notices to any other holders of Registrable Securities shall be sent to the
address specified by prior written notice to Timber Holding Co., Boise Sub and
FPH in accordance with the procedures provided above.

 

17

 

(g)                                 No
Third-Party Beneficiaries. Subject to Section 10(k), this Agreement
will not confer any rights or remedies upon any Person other than Timber
Holding Co., Boise Sub and FPH and their respective successors.

 

(h)                                 Entire
Agreement. This Agreement (including the documents referred to herein)
constitutes the entire agreement among the parties and supersedes any prior
understandings, agreements, or representations by or among the parties, written
or oral, that may have related in any way to the subject matter hereof.

 

(i)                                     Governing
Law. The corporate law of the State of Delaware will govern all issues
concerning the relative rights of Timber Holding Co. and its stockholders. All
other questions concerning the construction, validity and interpretation of
this Agreement will be governed by the internal law, and not the law of
conflicts, of the State of Illinois.

 

(j)                                     Severability.
In the event any provision in this Agreement is held to be invalid as applied
to any fact or circumstance, it shall be ineffective only to the extent of such
invalidity, and such invalidity shall not affect the other provisions of this
Agreement or the same provision as applied to any other fact or circumstance.

 

(k)                                  Successors
and Assigns. This Agreement shall be binding upon the parties hereto and
their respective successors and any Person who becomes a holder of Registrable
Securities. This Agreement shall inure to the benefit of and be enforceable by
the parties hereto and their respective successors and any Person who becomes a
holder of Registrable Securities (to the extent provided herein with respect to
Registrable Securities of the type held by such holder).

 

(l)                                     Counterparts.
This Agreement may be executed in counterparts (including by facsimile or
electronic transmission), all of which taken together shall constitute one and
the same original.

 

(m)                               Termination.
The rights of all holders of Boise Sub Registrable Securities under this
Agreement shall terminate as of the date when all Boise Sub Registrable
Securities can be sold within a three-month period without registration under
the Securities Act pursuant to Rule 144.

 

18

 

IN WITNESS WHEREOF, the
parties have executed this Agreement as of the date first written above.

 

 

	
   

  	
  KOOSKIA INVESTMENT CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. W. Holleran

  
	
   

  	
   

  	
  Name:
  J. W. Holleran

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  FOREST PRODUCTS HOLDINGS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Madison
  Dearborn Capital Partners IV, L.P.

  Its: Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  Madison Dearborn Partners IV, L.P.

  Its: General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  Madison Dearborn Partners, L.L.C.

  Its: General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas S. Souleles

  
	
   

  	
   

  	
  Name:  Thomas S. Souleles

  
	
   

  	
   

  	
  Title:    Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BOISE LAND & TIMBER HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher J. McGowan

  
	
   

  	
   

  	
  Name:
  Christopher J. McGowan

  
	
   

  	
   

  	
  Title:   Vice PresidentEXHIBIT 10.13

 

 

BOISE CASCADE
HOLDINGS, L.L.C.

 

A Delaware Limited
Liability Company

 

 

OPERATING
AGREEMENT

 

Dated as of
October 29, 2004

 

And effective as
of September 22, 2004

 

 

THE MEMBERSHIP INTERESTS
REPRESENTED BY THIS OPERATING AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933 OR UNDER ANY OTHER APPLICABLE SECURITIES
LAWS.  SUCH INTERESTS MAY NOT BE OFFERED,
SOLD, ASSIGNED, PLEDGED OR OTHERWISE DISPOSED OF AT ANY TIME WITHOUT EFFECTIVE
REGISTRATION UNDER SUCH ACT AND LAWS OR EXEMPTION THEREFROM, AND COMPLIANCE
WITH THE OTHER RESTRICTIONS ON TRANSFERABILITY SET FORTH HEREIN.

 

 

Table of Contents

 

	
  ARTICLE
  I ORGANIZATION

  
	
   

  	
  1.1

  	
  Formation

  	
   

  
	
   

  	
  1.2

  	
  Name

  	
   

  
	
   

  	
  1.3

  	
  Registered
  Office; Registered Agent; Principal Office; Other Offices

  	
   

  
	
   

  	
  1.4

  	
  Purposes

  	
   

  
	
   

  	
  1.5

  	
  Foreign
  Qualification

  	
   

  
	
   

  	
  1.6

  	
  Term

  	
   

  
	
   

  	
  1.7

  	
  No
  State-Law Partnership

  	
   

  
	
   

  	
  1.8

  	
  Company
  Property

  	
   

  
	
   

  	
  1.9

  	
  Limited Liability
  Company Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  II UNIT INTERESTS; CAPITAL CONTRIBUTIONS

  	
   

  
	
   

  	
  2.1

  	
  Unit Interests

  	
   

  
	
   

  	
  2.2

  	
  Initial Units Issued as
  of the Date Hereof

  	
   

  
	
   

  	
  2.3

  	
  Additional Units Issued
  after the Date Hereof

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III CAPITAL ACCOUNTS

  	
   

  
	
   

  	
  3.1

  	
  Establishment and
  Determination of Capital Accounts

  	
   

  
	
   

  	
  3.2

  	
  Computation
  of Amounts

  	
   

  
	
   

  	
  3.3

  	
  Negative
  Capital Accounts

  	
   

  
	
   

  	
  3.4

  	
  Company Capital

  	
   

  
	
   

  	
  3.5

  	
  No Withdrawal

  	
   

  
	
   

  	
  3.6

  	
  Loans From
  Holders

  	
   

  
	
   

  	
  3.7

  	
  Adjustments to Book Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  IV DISTRIBUTIONS; ALLOCATIONS OF PROFITS AND LOSSES

  	
   

  
	
   

  	
  4.1

  	
  Generally

  	
   

  
	
   

  	
  4.2

  	
  Distributions

  	
   

  
	
   

  	
  4.3

  	
  Allocation
  of Profits and Losses

  	
   

  
	
   

  	
  4.4

  	
  Special
  Allocations

  	
   

  
	
   

  	
  4.5

  	
  Tax Allocations;
  Code Section 704(c)

  	
   

  
	
   

  	
  4.6

  	
  Amounts
  Withheld

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  V MANAGEMENT

  	
   

  
	
   

  	
  5.1

  	
  Management by the Directors

  	
   

  
	
   

  	
  5.2

  	
  Actions
  by the Directors; Committees; Delegation of Authority and Duties

  	
   

  
	
   

  	
  5.3

  	
  Number and Term
  of Office

  	
   

  
	
   

  	
  5.4

  	
  Vacancies; Removal;
  Resignation

  	
   

  
	
   

  	
  5.5

  	
  Board Meetings

  	
   

  
	
   

  	
  5.6

  	
  Approval
  or Ratification of Acts or Contracts by Members

  	
   

  

 

 

	
   

  	
  5.7

  	
  Action
  by Written Consent or Telephone Conference

  	
   

  
	
   

  	
  5.8

  	
  Compensation

  	
   

  
	
   

  	
  5.9

  	
  Officers

  	
   

  
	
   

  	
  5.10

  	
  Reliance
  by Third Parties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  VI MEETINGS OF MEMBERS

  	
   

  
	
   

  	
  6.1

  	
  Lack of
  Authority

  	
   

  
	
   

  	
  6.2

  	
  Member Meetings

  	
   

  
	
   

  	
  6.3

  	
  Proxies

  	
   

  
	
   

  	
  6.4

  	
  Conduct
  of Meetings

  	
   

  
	
   

  	
  6.5

  	
  Action by Written Consent
  or Telephone Conference

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII LIMITED LIABILITY, EXCULPATION,
  AND INDEMNIFICATION

  	
   

  
	
   

  	
  7.1

  	
  Limited Liability of
  Members

  	
   

  
	
   

  	
  7.2

  	
  Exculpation of Covered
  Persons

  	
   

  
	
   

  	
  7.3

  	
  Right to Indemnification
  for Covered Persons

  	
   

  
	
   

  	
  7.4

  	
  Contract
  with Company

  	
   

  
	
   

  	
  7.5

  	
  Advance Payment

  	
   

  
	
   

  	
  7.6

  	
  Indemnification of
  Employees and Agents

  	
   

  
	
   

  	
  7.7

  	
  Appearance as a
  Witness

  	
   

  
	
   

  	
  7.8

  	
  Nonexclusivity
  of Rights

  	
   

  
	
   

  	
  7.9

  	
  Insurance

  	
   

  
	
   

  	
  7.10

  	
  Savings Clause

  	
   

  
	
   

  	
  7.11

  	
  Investment
  Opportunities; Conflicts of Interest

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII TAX MATTERS

  	
   

  
	
   

  	
  8.1

  	
  Tax
  Returns

  	
   

  
	
   

  	
  8.2

  	
  Tax Matters Member

  	
   

  
	
   

  	
  8.3

  	
  Indemnification and
  Reimbursement for Payments on Behalf of a Holder

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX BOOKS AND RECORDS, REPORTS, AND
  CONFIDENTIALITY

  	
   

  
	
   

  	
  9.1

  	
  Maintenance of Books

  	
   

  
	
   

  	
  9.2

  	
  Reports

  	
   

  
	
   

  	
  9.3

  	
  Company
  Funds

  	
   

  
	
   

  	
  9.4

  	
  Confidentiality

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X TRANSFERS; ADMISSION OF MEMBERS

  	
   

  
	
   

  	
  10.1

  	
  Transfers

  	
   

  
	
   

  	
  10.2

  	
  Incorporation of the
  Company

  	
   

  
	
   

  	
  10.3

  	
  Void
  Assignment

  	
   

  
	
   

  	
  10.4

  	
  Effect of Valid Assignment

  	
   

  
	
   

  	
  10.5

  	
  Admission of Substituted
  Member

  	
   

  
	
   

  	
  10.6

  	
  Admission of Additional
  Members

  	
   

  
	
   

  	
  10.7

  	
  Effect of Incapacity

  	
   

  

 

 

	
   

  	
  10.8

  	
  Interests in a Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI DISSOLUTION, LIQUIDATION AND
  TERMINATION

  	
   

  
	
   

  	
  11.1

  	
  Dissolution

  	
   

  
	
   

  	
  11.2

  	
  Liquidation and Termination

  	
   

  
	
   

  	
  11.3

  	
  Cancellation of Certificate

  	
   

  
	
   

  	
  11.4

  	
  Reasonable Time for
  Winding Up

  	
   

  
	
   

  	
  11.5

  	
  Return of Capital

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII GENERAL PROVISIONS

  	
   

  
	
   

  	
  12.1

  	
  Power of Attorney

  	
   

  
	
   

  	
  12.2

  	
  [Reserved]

  	
   

  
	
   

  	
  12.3

  	
  Filings

  	
   

  
	
   

  	
  12.4

  	
  Offset

  	
   

  
	
   

  	
  12.5

  	
  Notices

  	
   

  
	
   

  	
  12.6

  	
  Entire Agreement

  	
   

  
	
   

  	
  12.7

  	
  Effect of Waiver or Consent

  	
   

  
	
   

  	
  12.8

  	
  Amendments

  	
   

  
	
   

  	
  12.9

  	
  Binding
  Effect

  	
   

  
	
   

  	
  12.10

  	
  Governing
  Law; Severability

  	
   

  
	
   

  	
  12.11

  	
  Further Assurances

  	
   

  
	
   

  	
  12.12

  	
  Waiver of Certain Rights

  	
   

  
	
   

  	
  12.13

  	
  Notice to Members of
  Provisions

  	
   

  
	
   

  	
  12.14

  	
  Remedies

  	
   

  
	
   

  	
  12.15

  	
  Severability

  	
   

  
	
   

  	
  12.16

  	
  Descriptive Headings;
  Interpretations

  	
   

  
	
   

  	
  12.17

  	
  Creditors

  	
   

  
	
   

  	
  12.18

  	
  Delivery by Facsimile

  	
   

  
	
   

  	
  12.19

  	
  No Public Disclosure

  	
   

  
	
   

  	
  12.20

  	
  Survival

  	
   

  
	
   

  	
  12.21

  	
  Counterparts

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII DEFINITIONS

  	
   

  
	
   

  	
  13.1

  	
  Definitions of Terms Not Defined
  in the Text

  	
   

  
	
   

  	
  13.2

  	
  Index of Definitions
  Defined in the Text

  	
   

  

 

 

OPERATING AGREEMENT

OF

BOISE CASCADE HOLDINGS, L.L.C.

a Delaware Limited Liability Company

 

THIS OPERATING AGREEMENT of Boise Cascade Holdings,
L.L.C. (this “Agreement”), dated as of October 29, 2004 and effective as
of September 22, 2004, is adopted, executed and agreed to, for good and
valuable consideration, by the Members.

 

Unless otherwise defined herein, capitalized terms
used in this Agreement will have the meanings given to such terms in Section
13.1.  Capitalized terms defined in
the text of this Agreement are indexed in Section 13.2.

 

ARTICLE I

ORGANIZATION

 

1.1          Formation.  The Company has been organized as a Delaware
limited liability company by the filing of a Certificate of Formation (the “Certificate”)
under and pursuant to the Act.

 

1.2          Name.  The name of the Company is “ Boise Cascade
Holdings, L.L.C.,” and all Company business shall be conducted in that name or
such other names that comply with applicable law as the Board may select from
time to time.

 

1.3          Registered Office; Registered Agent; Principal Office; Other
Offices.  The Company
shall maintain a registered office in the State of Delaware at, and the name
and address of the Company’s registered agent in the State of Delaware is,
National Registered Agents, Inc., 9 East Loockerman Street, Suite 1B, Dover,
Delaware 19901.  The Board may, from time
to time, change the Company’s registered office and/or registered agent and
shall forthwith amend the Certificate to reflect such change(s).  The principal office of the Company shall be
at such place as the Board may designate from time to time, which need not be
in the State of Delaware, and the Company shall maintain records there.  The Company may have such other offices as
the Board may designate from time to time.

 

1.4          Purposes.  The purpose of the Company is to engage in
any and all lawful businesses and activities that limited liability companies
are permitted to carry on under the Act. 
The Company shall possess and may exercise all the powers and privileges
granted by the Act or by any other law or by this Agreement, together with any
powers incidental thereto, insofar as such powers and privileges are necessary,
appropriate, advisable, incidental or convenient to the conduct, promotion or
attainment of the business purposes or activities of the Company.

 

1.5          Foreign Qualification.  Prior to the Company’s conducting business in
any jurisdiction other than Delaware, the Board shall cause the Company to
comply, to the extent procedures are available and those matters are reasonably
within the control of the Board, with

 

 

all requirements
necessary to qualify the Company as a foreign limited liability company in that
jurisdiction.  At the request of the
Board, each Holder shall execute, acknowledge, swear to and deliver all
certificates and other instruments conforming with this Agreement that are
necessary or appropriate to qualify, continue and terminate the Company as a
foreign limited liability company in all such jurisdictions in which the
Company may conduct business.

 

1.6          Term.  The term of the Company commenced on the date
the Certificate was filed with the office of the Secretary of State of Delaware
and shall continue until termination and dissolution thereof as determined
under Section 11.1 of this Agreement.

 

1.7          No State-Law Partnership.  The Members intend that the Company not be a
partnership (including, without limitation, a limited partnership) or joint
venture, and that no Holder or Director be a partner or joint venturer of any
other Holder or Director, for any purposes other than federal and, if
applicable, state tax purposes, and this Agreement shall not be construed to
suggest otherwise.  Unless otherwise
determined by the Tax Matters Member pursuant to Section 8.2(b), the
Members intend that the Company shall be treated as a partnership for federal
and, if applicable, state income tax purposes, and each Holder and the Company
shall file all tax returns and shall otherwise take all tax and financial
reporting positions in a manner consistent with such treatment.

 

1.8          Company Property. 
Company assets shall be deemed to be owned by the Company as an entity,
and no Holder, individually or collectively, shall have any ownership interest
in such Company assets or any portion thereof. 
Legal title to any or all Company assets may be held in the name of the
Company or one or more nominees, as the Board may determine.  The Board hereby declares and warrants that
any Company assets for which legal title is held in the name of any nominee
shall be held in trust by such nominee for the use and benefit of the Company
in accordance with the provisions of this Agreement.  All Company assets shall be recorded as the
property of the Company on its books and records, irrespective of the name in
which legal title to such Company assets is held.  The Units of each Holder shall constitute
personal property.

 

1.9          Limited Liability Company
Agreement.  The Members hereby execute this
Agreement for the purpose of establishing the affairs of the Company and the
conduct of its business in accordance with the provisions of the Act.  The Members hereby agree that, during the
term of the Company set forth in Section 1.6 hereof, the rights and
obligations of the Holders with respect to the Company shall be determined in
accordance with the terms and conditions of this Agreement and, except where
the Act provides that such rights and obligations specified in the Act shall
apply “unless otherwise provided in a limited liability company agreement” or
words of similar effect and such rights and obligations are set forth in this
Agreement, the Act.  Notwithstanding the
foregoing, Section 18-210 of the Act (entitled “Contractual Appraisal Rights”)
and Section 18-305(a) of the Act (entitled “Access to and Confidentiality of
Information; Records”) shall not apply to the Company or be incorporated into
this Agreement.

 

2

 

ARTICLE II

UNIT INTERESTS; CAPITAL CONTRIBUTIONS

 

2.1          Unit Interests.

 

(a)           Authorized
Units.  Subject to the terms of this
Agreement, the Company is authorized to issue equity interests in the Company
designated as Units.  The total number of
Units that the Company shall have authority to issue is 653,165,775.  The capital structure of the Company shall
initially consist of three (3) classes of membership interests:  (i) Series A Common Units, (ii) Series B
Common Units and (iii) Series C Common Units. 
The authorized Units that the Company has the authority to issue shall
consist of (A) 66,000,000 Series A Common Units, (B)  549,000,000 Series B
Common Units and (C) 38,165,775 Series C Common Units.

 

(b)           Interests
of Unit Holders.  The relative
rights, powers, preferences, duties, liabilities and obligations of Holders of
the Units (including the Series A Common Units, the Series B Common Units and
the Series C Common Units) shall be as set forth herein.  Each Holder’s interest in the Company,
including such Holder’s interest in income, gains, losses, deductions and
expenses of the Company, shall be represented by the Units held by such Holder.

 

(c)           Voting
Rights.  Each Series B Common Unit
shall entitle the Member owning such Unit to one vote on any matter to be voted
on by the Members as provided in this Agreement or required by applicable law,
and the Series A Common Units and Series C Common Units shall not entitle the
Holders thereof to any vote on any matters to be voted on by the Members;
provided that to the extent any Holder of Series B Common Units is required to
obtain any governmental approval, consent or authorization prior to acquiring
voting securities of the Company, such Holder shall not be entitled to a vote
in respect of such Series B Common Units until such necessary governmental
approval, consent or authorization has been obtained.

 

(d)           Subdivisions
or Combinations of Common Units.  If
the Company in any manner subdivides or combines the outstanding number of one
class of Common Units, the outstanding number of the other class of Common
Units shall be proportionately subdivided or combined in a similar manner.

 

(e)           Certification
of Units.  The Units owned by the
Members will be recorded on the attached Schedule of Members and,
initially, will not be represented by physical certificates.  The Board may in its discretion issue
certificates to the Holders representing the Units held by each Holder.

 

(f)            Restrictive
Legend.  In the event that
certificates representing the Units are issued, each certificate or instrument
shall be imprinted with a legend in substantially the following form:

 

THE UNITS REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED ON                ,
            , HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR APPLICABLE STATE SECURITIES LAWS (“STATE ACTS”) AND MAY

 

3

 

NOT BE SOLD, ASSIGNED, PLEDGED OR TRANSFERRED OR
OTHERWISE DISPOSED OF WITHOUT AN EFFECTIVE REGISTRATION UNDER THE ACT OR STATE
ACTS OR AN EXEMPTION THEREFROM.  THE
TRANSFER OF THE UNITS REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE
CONDITIONS SPECIFIED IN AN OPERATING AGREEMENT, DATED AS OF OCTOBER 29, 2004
AND EFFECTIVE AS OF SEPTEMBER 22, 2004, AS AMENDED AND MODIFIED FROM TIME TO
TIME, GOVERNING THE ISSUER (THE “COMPANY”) AND BY AND AMONG CERTAIN
INVESTORS.  A COPY OF SUCH CONDITIONS
SHALL BE FURNISHED BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST AND
WITHOUT CHARGE.

 

2.2          Initial Units Issued as of the
Date Hereof.  As of the date
hereof the Members listed on the attached Schedule of Members (the “Initial
Members”) have acquired the number of Series A Common Units and Series B
Common Units, and have made Capital Contributions with respect thereto, as set
forth opposite each such Initial Member’s name on the attached Schedule of
Members.

 

2.3          Additional Units Issued after the
Date Hereof.

 

(a)           Issuances
of Additional Units.  The Board shall
have the right to cause the Company to issue or sell to Members or other
Persons: (i) additional Units (including other classes or series thereof having
different rights), (ii) obligations, evidences of indebtedness or other
securities or interests convertible or exchangeable into Units, and (iii)
warrants, options or other rights to purchase or otherwise acquire Units.

 

(b)           FPH
Management Units.  Without limiting
the generality of Section 2.3(a), from time to time after the date
hereof, (i) in the event that FPH issues any FPH Series B Units to an FPH
Management Member, then in connection with such issuance the Company will issue
to FPH an equal number of Series B Common Units; and (ii) in the event that FPH
issues any FPH Series C Units to an FPH Management Member, then in connection
with such issuance the Company will issue to FPH an equal number of Series C
Common Units.

 

(c)           Series
C Common Units.  It is presently
anticipated that, when and as determined by the Board pursuant to Section
2.3(a) and 2.3(b), the Series C Common Units will be issued to FPH
for no consideration and will represent an interest only in profits and
appreciation of the Company after the date of issuance thereof.  To this end, in connection with any grant of
a Series C Common Unit, the Board will determine the Equity Value of the
Company immediately prior to the grant of such Series C Common Unit.  If such Equity Value is greater than the sum
of the aggregate Unreturned Capital and Unpaid Series A Yield of the Series A
Common Units and the aggregate Unreturned Capital of the Series B Common Units
as of the date of such issuance, then such Series C Common Unit shall have a “Threshold
Equity Value” equal to the sum of (x) the Equity Value of the Company
immediately prior to such issuance, plus (y) the aggregate Distributions
pursuant to Section 4.2(b)(i) and (ii) made prior to such
issuance.  Such Threshold Equity Value
shall be calculated by the Board and set forth on the Schedule of Members.

 

4

 

(d)           Capital
Contributions.  In connection with
any issuance of additional Units or other interests in the Company, the
acquiring Person shall in exchange for such Units or other interests make
Capital Contributions to the Company in an amount, if any, specified by the
Board.

 

(e)           Record
of Additional Issuances; Amendments. 
In connection with any issuance of additional Units or other interests
in the Company, the Board shall amend the Schedule of Members as
necessary to reflect such additional issuances (including the number and class
of Units and Capital Contributions of the acquiring Person), and shall have the
power to make any other amendments to this Agreement as it deems necessary to
authorize any such Units or other securities, provide for the relative rights,
powers, preferences, duties, liabilities and obligations thereof, or otherwise
reflect or provide for such additional issuances.

 

(f)            Counterparts.  As of the date hereof, each Member has
executed a counterpart of this Agreement. 
Subject to the restrictions in Article X, upon the acquisition of
any Units or other interests in the Company by a Person who is not a Member,
such Person shall execute and deliver a counterpart of this Agreement and,
subject to compliance with the conditions set forth in Section 10.7 or 10.8
hereof, as applicable, such Person shall become a Member hereunder and shall be
listed as a Member on the Schedule of Members, together with such Member’s
address, number and class of Units and amount of Capital Contributions.

 

ARTICLE III

CAPITAL ACCOUNTS

 

3.1          Establishment and
Determination of Capital Accounts.  A capital account (“Capital Account”)
shall be established for each Holder. 
The Capital Account of each Holder shall consist of its initial Capital
Contribution and shall be (a) increased by (i) any additional Capital
Contributions made by such Holder pursuant to the terms of this Agreement and
(ii) such Holder’s share of items of income and gain allocated to such Holder
pursuant to Article IV, (b) decreased by (i) such Holder’s share of
items of loss, deduction and expense allocated to such Holder pursuant to Article
IV and (ii) any Distributions to such Holder of cash or the fair market
value of any other property (net of liabilities assumed by such Holder and
liabilities to which such property is subject) distributed to such Holder and
(c) adjusted as otherwise required by the Code and the regulations
thereunder, including, but not limited to, the rules of Treasury Regulation
Section 1.704-1(b)(2)(iv).  Any
references in this Agreement to the Capital Account of a Holder shall be deemed
to refer to such Capital Account as the same may be increased or decreased from
time to time as set forth above.

 

3.2          Computation of Amounts.  For purposes of computing the amount of any
item of income, gain, loss, deduction or expense to be reflected in Capital
Accounts, the determination, recognition and classification of each such item
shall be the same as its determination, recognition and classification for federal
income tax purposes; provided  that:

 

(i)            any
income that is exempt from Federal income tax shall be added to such taxable
income or losses;

 

5

 

(ii)           any
expenditures of the Company described in Section 705(a)(2)(B) of the Code or
treated as Code Section 705(a)(2)(B) expenditures pursuant to Treasury
Regulation Section 1.704-1(b)(2)(iv)(i),
shall be subtracted from such taxable income or losses;

 

(iii)          if
the Book Value of any Company property is adjusted pursuant to Treasury
Regulation Section 1.704-1(b)(2)(iv)(e)
(in connection with a distribution of such property) or (f) (in connection with a revaluation of
Capital Accounts), the amount of such adjustment shall be taken into account as
gain or loss from the disposition of such property;

 

(iv)          if property
that is reflected on the books of the Company has a Book Value that differs
from the adjusted tax basis of such property, depreciation, amortization and
gain or loss with respect to such property shall be determined by reference to
such Book Value; and

 

(v)           the
computation of all items of income, gain, loss, deduction and expense shall be
made without regard to any election pursuant to Section 754 of the Code that
may be made by the Company, unless the adjustment to basis of Company property
pursuant to such election is reflected in Capital Accounts pursuant to Treasury
Regulation Section 1.704-1(b)(2)(iv)(m).

 

3.3          Negative Capital Accounts.  No Holder shall be required to pay to the
Company or any other Holder any deficit or negative balance that may exist from
time to time in such Holder’s Capital Account. 
Notwithstanding anything expressed or implied to the contrary in this
Agreement, upon liquidation, dissolution or winding up of the Company, no
Holder shall be required to make any Capital Contribution to the Company in
respect of any deficit in such Holder’s Capital Account.

 

3.4          Company Capital.  No Holder shall
be paid interest on any Capital Contribution to the Company or on such Holder’s
Capital Account, and no Holder shall have any right (i) to demand the return of
such Holder’s Capital Contribution or any other Distribution from the Company
(whether upon resignation, withdrawal or otherwise), except upon dissolution of
the Company pursuant to Article XI hereof, (ii) to seek or obtain a
partition of any Company assets, or (iii) to own or use any particular or
individual assets of the Company.

 

3.5          No Withdrawal.  No
Holder shall be entitled to withdraw any part of such Holder’s Capital
Contribution or Capital Account or to receive any Distribution from the
Company, except as expressly provided herein.

 

3.6          Loans From Holders.  Loans by Holders to the Company shall not be
considered Capital Contributions.  If any
Holder shall loan funds to the Company in excess of the amounts required
hereunder to be contributed by such Holder to the capital of the Company, the
making of such loans shall not result in any increase in the amount of the
Capital Account of such Holder.  The
amount of any such loans shall be a debt of the Company to such Holder and
shall be payable or collectible in accordance with the terms and conditions
upon which such loans are made.

 

6

 

3.7          Adjustments to Book Value. 
The Company shall adjust the Book Value of its assets to fair market
value in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(f) as of the following times: (a) at the
Board’s discretion in connection with the issuance of Units in the Company; (b)
at the Board’s discretion in connection with the Distribution by the Company to
a Holder of more than a de minimis amount
of Company assets, including cash, if as a result of such Distribution, such
Holder’s interest in the Company is reduced; and (c) the liquidation of the
Company within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g). 
Any such increase or decrease in Book Value of an asset shall be
allocated as a Profit or Loss to the Capital Accounts of the Holders under Section
4.3 (determined immediately prior to the issuance of the new Units or the
distribution of assets in an ownership reduction transaction).

 

ARTICLE IV

DISTRIBUTIONS; ALLOCATIONS OF

PROFITS AND LOSSES

 

4.1          Generally.  Subject to the provision of Section 18-607 of
the Act and Sections 4.2(a) and 4.2(e) of this Agreement, the
Board shall have sole discretion regarding the amounts and timing of
Distributions to Holders, in each case subject to the retention of, or payment
to third parties of, such funds as it deems necessary with respect to the
reasonable business needs of the Company, which shall include (but not by way
of limitation) the payment or the making of provision for the payment when due
of Company obligations, including the payment of any management or
administrative fees and expenses or any other obligations.

 

4.2          Distributions.

 

(a)           Tax
Distributions.  The Board shall use
reasonable efforts, subject to any applicable covenants and restrictions
contained in the Company’s loan agreements and other agreements or obligations
to which the Company or its properties are subject, to cause the Company to
distribute to each Holder with respect each Taxable Year (within 75 days after
the close of such Taxable Year, or on a quarterly or other basis as shall be
determined by the Board in its sole discretion to be appropriate to enable each
such Holder to pay estimated income tax liabilities) an amount equal to the
product of (x) the combined maximum marginal federal, state, and local income
tax rates (taking into account the deductibility of state and local income tax
for federal income tax purposes) applicable to any Holder (or its partners or
stockholders, if applicable), as determined by the Board after reasonable
inquiry, times (y) the difference of (i) the taxable income and gains for such
Taxable Year allocated to such Holder pursuant to Section 4.5, reduced by (ii)
the sum of (A) the taxable losses and deductions for such Taxable Year
allocated to such Holder pursuant to Section 4.5, and (B) the excess of the
aggregate taxable losses and deductions over the aggregate taxable income and
gains for all prior Taxable Years allocated to such Holder pursuant to Section
4.5, but only to the extent that such excess can be applied or used for such
Taxable Year.  Any Distribution to a
Holder pursuant to this Section 4.2(a) (I) that is made to a Holder of Series A
Common Units as a result of taxable income and gains allocated to such Series A
Common Units, shall be treated as an advance Distribution of Unpaid Series A
Yield pursuant to Section 4.2(b)(i) and shall reduce the amount of Unpaid
Series A Yield, or (II) that is made to a Holder of Series B Common Units
and/or Series C Common Units as a result of taxable income and gains allocated
to such Series B Common Units and/or Series C Common Units, shall be treated as
an advance Distribution under Section

 

7

 

4.2(b)(ii) and shall be offset against future
Distributions that such Holder would otherwise be entitled to receive pursuant
to Section 4.2(b)(ii).

 

(b)           Priority
of Distributions.  Subject to Sections
4.2(a) and 4.2(e), all other Distributions (including in connection
with the dissolution and liquidation of the Company pursuant to the terms of Article
XI hereof) shall be made when and as declared by the Board to the Holders
in the following order and priority:

 

(i)            First,
to the Holders of Series A Common Units and Series B Common Units, an amount
equal to the aggregate Unreturned Capital and Unpaid Series A Yield with
respect to their Series A Common Units, and the aggregate Unreturned Capital
with respect to their Series B Common Units, outstanding immediately prior to
such Distribution (pro rata in proportion to each Holder’s Pro Rata Share)
until the aggregate Unreturned Capital and Unpaid Series A Yield with respect
to all Series A Common Units, and the aggregate Unreturned Capital with respect
to all Series B Common Units, outstanding immediately prior to such
Distribution has been reduced to zero; and no Distribution or any portion
thereof shall be made under Section 4.2(b)(ii) below until the entire
amount of the aggregate Unreturned Capital and Unpaid Series A Yield with
respect to the Series A Common Units, and the aggregate Unreturned Capital with
respect to the Series B Common Units, outstanding immediately prior to such
Distribution has been paid in full; and

 

(ii)           Second,
to the Holders of Series B Common Units and Series C Common Units, an amount
equal to the remainder of the aggregate amount to be Distributed (in the
proportion that the number of Series B Common Units and Series C Common Units
held by each such Holder immediately prior to such Distribution bears to the
aggregate number of Series B Common Units and Series C Common Units outstanding
immediately prior to such Distribution.

 

For all purposes of Section 4.2(b)(ii), if any
Series C Common Unit has been granted with a Threshold Equity Value established
pursuant to Section 2.3(c), then such Series C Common Unit will not have
the right to receive any Distributions under Section 4.2(b)(ii) (and
such Series C Common Unit will be disregarded for purposes of allocating
Distributions among the Holders of Series B Common Units and Series C Common
Units pursuant to the parenthetical in Section 4.2(b)(ii)) until the
aggregate Distributions that have been made to all other Units under Sections
4.2(b)(i) and (ii) from and after the date hereof are equal to the
Threshold Equity Value of such Series C Common Unit.

 

(c)           In-Kind
Distributions.  At any time, and from
time to time, the Company may distribute to its Holders securities or other
property held by the Company; provided  that any such Distribution
shall not satisfy any of the Company’s obligations pursuant to Section
4.2(a).  In any Distribution pursuant
to this Section 4.2(c), the property so distributed will be distributed
among the Holders in the same proportions as cash equal to the fair market
value of such property (as determined in good faith by the Board) would be
distributed among the Holders pursuant to Section 4.2(b).  The Board may require as a condition of
Distribution of securities hereunder that the Holders execute and deliver such
documents as the Board may deem necessary or appropriate to ensure compliance
with all U.S. federal and state securities laws

 

8

 

which apply to such Distribution and any further
transfer of the distributed securities, and may appropriately legend the
certificates which represent such securities to reflect any restriction on
transfer with respect to such laws.

 

(d)           Sale of
the Company.  In connection with any
Sale of the Company, unless otherwise determined by the Board, the aggregate
cash, securities and other property to be received in such Sale of the Company
as consideration in respect of the Units shall be allocated in such Sale of the
Company among the Holders as if such consideration were Distributed by the
Company to the Holders pursuant to the provisions of Section 4.2(b).

 

(e)           Redemption
of FPH Common Units in connection with Repurchases from FPH Management Members.  In the event FPH elects to exercise its
rights under any FPH Management Equity Agreement to repurchase FPH Series B
Units from an FPH Management Member, the Company will redeem an equal number of
Series B Common Units held by FPH at a redemption price equal to the repurchase
price payable by FPH for such FPH Series B Units pursuant to the terms of such
FPH Management Equity Agreement (less any amount distributed to FPH in respect
thereof by Boise Land & Timber Holdings Corp.).  In the event FPH elects to exercise its
rights under any FPH Management Equity Agreement to repurchase FPH Series C
Units from an FPH Management Member, the Company will redeem an equal number of
Series C Common Units held by FPH at a redemption price equal to the repurchase
price, if any, payable by FPH for such FPH Series C Units pursuant to the terms
of such FPH Management Equity Agreement (less any amount distributed to FPH in
respect thereof by Boise Land & Timber Holdings Corp.).  In either case, such redemption price will be
paid to FPH in cash or, to the extent the Company is prohibited by applicable
law or by the terms of its or its Subsidiaries’ debt financing agreements from
paying such redemption price in cash, by issuance of a promissory note to FPH in
the amount and on substantially the same terms as the promissory note that such
FPH Management Equity Agreement provides will be issued by FPH in lieu of cash
to such FPH Management Member for such FPH Series B Units or FPH Series C
Units, as applicable.

 

4.3          Allocation of Profits and Losses.  For each Fiscal Year of the Company, after
adjusting each Holder’s Capital Account for all Capital Contributions and
distributions during such Fiscal Year and all special allocations pursuant to Section
4.4 with respect to such Fiscal Year, all Profits and Losses (other than
Profits and Losses specially allocated pursuant to Section 4.4) shall be
allocated to the Holders’ Capital Accounts in a manner such that, as of the end
of such Fiscal Year, the Capital Account of each Holder (which may be either a
positive or negative balance) shall be equal to (i) the amount which would be
distributed to such Holder, determined as if the Company were to liquidate all
of its assets for the Book Value thereof and distribute the proceeds thereof
(after payment of all Company debts, liabilities and obligations) pursuant to Section
4.2(b) hereof, minus (ii) the sum of (A) such Holder’s share of Company
Minimum Gain (as determined according to Treasury Regulation Section 1.704-2(d)
and (g)(3)) and Member Minimum Gain (as determined according to Treasury
Regulation Section 1.704-2(i)) and (B) the amount, if any, which such Holder is
obligated to contribute to the capital of the Company as of the last day of
such Fiscal Year.

 

9

 

4.4          Special Allocations.  Notwithstanding the provisions of Section
4.3:

 

(a)           Nonrecourse
Deductions.  Nonrecourse Deductions
shall be allocated to the Holders of Common Units, pro rata in proportion to
the total number of such Common Units held by each such Holder.  If there is a net decrease in Company Minimum
Gain during any Taxable Year, each Holder shall be specially allocated items of
taxable income or gain for such Taxable Year (and, if necessary, subsequent Taxable
Years) in an amount equal to such Holder’s share of the net decrease in Company
Minimum Gain, determined in accordance with Treasury Regulation Section 1.704-2(g).  The items to be so allocated shall be
determined in accordance with Treasury Regulation Section 1.704-2(f)(6).  This paragraph is intended to comply with the
minimum gain chargeback requirement in Treasury Regulation Section 1.704-2(f)
and shall be interpreted consistently therewith.

 

(b)           Member
Nonrecourse Deductions.  Member
Nonrecourse Deductions shall be allocated in the manner required by Treasury
Regulation Section 1.704-2(i). Except as otherwise provided in Treasury
Regulation Section 1.704-2(i)(4), if there is a net decrease in Member
Minimum Gain during any Taxable Year, each Holder that has a share of such
Member Minimum Gain shall be specially allocated items of taxable income or
gain for such Taxable Year (and, if necessary, subsequent Taxable Years) in an
amount equal to that Holder’s share of the net decrease in Member Minimum Gain.
Items to be allocated pursuant to this paragraph shall be determined in
accordance with Treasury Regulation Sections 1.704-2(i)(4) and 1.704-2(j)(2).  This paragraph is intended to comply with the
minimum gain chargeback requirements in Treasury Regulation Section 1.704-2(i)(4)
and shall be interpreted consistently therewith.

 

(c)           Unexpected
Adjustments.  If any Holder
unexpectedly receives any adjustments, allocations or Distributions described
in Treasury Regulation Section 1.704-l(b)(2)(ii)(d)(4), (5) or (6), items of
taxable income and gain shall be specially allocated to such Member in an
amount and manner sufficient to eliminate the adjusted capital account deficit
(determined according to Treasury Regulation Section 1.704-1 (b)(2)(ii)(d)) created by such adjustments, allocations or Distributions
as quickly as possible. This paragraph is intended to comply with the qualified
income offset requirement in Treasury Regulation Section 1.704-1
(b)(2)(ii)(d) and shall be interpreted consistently therewith.

 

(d)           Curative
Allocations.  The allocations set
forth in paragraphs (a), (b) and (c) above (the “Regulatory Allocations”)
are intended to comply with certain requirements of the Treasury Regulations
under Code Section 704. Notwithstanding any other provisions of this Article IV
(other than the Regulatory Allocations), the Regulatory Allocations shall be
taken into account in allocating Profits and Losses among Holders so that, to
the extent possible, the net amount of such allocations of Profits and Losses
and other items and the Regulatory Allocations (including Regulatory
Allocations that, although not yet made, are expected to be made in the future)
to each Holder shall be equal to the net amount that would have been allocated
to such Member if the Regulatory Allocations had not occurred.

 

(e)           Transactions
between Holders and the Company.  If,
and to the extent that, any Holder is deemed to recognize any item of income,
gain, loss, deduction or credit as a result of any transaction between such
Holder and the Company pursuant to Code Sections 1272-1274, 7872, 483, 482, 83
or any similar provision now or hereafter in effect, and the Board determines
that any corresponding Profit or Loss of the Company should be allocated to the
Holder who

 

10

 

recognized such item in order to reflect the Holder’s
economic interests in the Company, then the Board may so allocate such Profit
or Loss.

 

4.5          Tax Allocations; Code Section 704(c).

 

(a)           General.  The income, gains, losses, deductions and
expenses of the Company shall be allocated, for federal, state and local income
tax purposes, among the Holders in accordance with the allocation of such
income, gains, losses, deductions and expenses among the Holders for computing their
Capital Accounts, except that if any such allocation is not permitted by
the Code or other applicable law, the Company’s subsequent income, gains,
losses, deductions and expenses shall be allocated among the Holders so as to
reflect as nearly as possible the allocation set forth herein in computing
their Capital Accounts.

 

(b)           Section
704(c).  In accordance with Code
Section 704(c) and the Treasury Regulations thereunder, income, gain, loss,
deduction and expense with respect to any property contributed to the capital
of the Company shall, solely for tax purposes, be allocated among the Holders
so as to take account of any variation between the adjusted basis of such
property to the Company for federal income tax purposes and its fair market
value at the time of contribution.

 

(c)           Adjustment
of Book Value.  If the Book Value of
any Company asset is adjusted pursuant to Section 4.5, subsequent
allocations of items of taxable income, gain, loss, deduction and expense with
respect to such asset shall take account of any variation between the adjusted
basis of such asset for federal income tax purposes and its Book Value in the
same manner as under Code Section 704(c).

 

(d)           Board
Authority.  Any elections or other
decisions relating to allocations for federal, state and local income tax
purposes shall be made by the Board in any manner that reasonably reflects the
purpose and intent of this Agreement. 
Allocations pursuant to this Section 4.5 are solely for purposes
of federal, state and local taxes and shall not affect, or in any way be taken
into account in computing, any Holder’s Capital Account or share of profits,
losses, other items or distributions pursuant to any provisions of this
Agreement.

 

4.6          Amounts Withheld.  All amounts
withheld pursuant to Section 8.3 from any Distribution to a Holder shall
be treated as amounts distributed to such Holder pursuant to this Article IV
for all purposes under this Agreement.

 

ARTICLE V

MANAGEMENT

 

5.1          Management by the Directors.

 

(a)           Authority
of Board.  Except for situations in
which the approval of the Members is required by this Agreement or by
nonwaivable provisions of applicable law, and subject to the provisions of Section
5.2 and Section 5.9, (i) the powers of the Company shall be
exercised by or under the authority of, and the business and affairs of the
Company shall be managed under the direction of, the Board and (ii) the Board
may make all decisions and take all

 

11

 

actions for the Company not otherwise provided for in
this Agreement, including, without limitation, the following:

 

(i)            entering
into, making and performing contracts, agreements and other undertakings
binding the Company that may be necessary, appropriate or advisable in
furtherance of the purposes of the Company and making all decisions and waivers
thereunder;

 

(ii)           maintaining
the assets of the Company in good order;

 

(iii)          collecting
sums due the Company;

 

(iv)          opening and
maintaining bank and investment accounts and arrangements, drawing checks and
other orders for the payment of money and designating individuals with
authority to sign or give instructions with respect to those accounts and
arrangements;

 

(v)           acquiring,
utilizing for Company purposes and disposing of any assets of the Company;

 

(vi)          to the
extent that funds of the Company are available therefor, paying debts and
obligations of the Company;

 

(vii)         hiring
and employing executives, supervisors and other personnel;

 

(viii)        selecting,
removing and changing the authority and responsibility of lawyers, accountants
and other advisers and consultants;

 

(ix)           borrowing
money or otherwise committing the credit of the Company for its activities and
voluntary prepayments or extensions of debt;

 

(x)            obtaining
insurance for the Company;

 

(xi)           establishing
reserves for commitments and obligations (contingent or otherwise) of the
Company;

 

(xii)          determining
Distributions of Company cash and other property as provided in Section 4.2;

 

(xiii)         establishing
a seal for the Company; and

 

(xiv)        filing
a petition under the federal bankruptcy laws or under any other receivership,
insolvency or reorganization laws.

 

(b)           Power
to Bind Company.  Unless the Board
consists of one Director, no Director (acting in his capacity as such) shall
have any authority to bind the Company to any third party with respect to any
matter except pursuant to a resolution expressly authorizing such

 

12

 

action, which resolution is duly adopted by the Board
by the affirmative vote required for such matter pursuant to the terms of this
Agreement.

 

(c)           Officer
Supervision.  The management of the
business and affairs of the Company by the officers and the exercising of their
powers shall be conducted under the supervision of and subject to the approval
of the Board.

 

5.2          Actions by the Directors; Committees;
Delegation of Authority and Duties.

 

(a)           Board
of Directors.  In managing the
business and affairs of the Company and exercising their powers, the Directors
shall be members of and shall act as a Board of Directors (the “Board”).  The Board may act (i) through meetings and
written consents pursuant to Sections 5.5 and 5.7, (ii) through
committees pursuant to Section 5.2(c) and (iii) through any officer to
whom authority and duties have been delegated pursuant to Sections 5.2(e)
and 5.9.

 

(b)           Time
and Attention.  Each Holder
acknowledges and agrees that no Director shall, as a result of being a Director
(as such), be bound to devote all of his business time to the affairs of the
Company, and that he and his Affiliates do and will continue to engage for
their own account and for the accounts of others in other business ventures.

 

(c)           Committees.  The Board may, from time to time, designate
one or more committees, each of which shall be composed of at least two
Directors.  Any such committee, to the
extent provided in such resolution or in the Certificate or this Agreement,
shall have and may exercise all of the authority of the Board delegated to such
committee.  The Board may dissolve any
committee at any time, unless otherwise provided in the Certificate or this
Agreement.

 

(d)           Committee
Rules.  Unless the Board otherwise
provides, each committee designated by the Board may adopt, amend and repeal
rules for the conduct of its business.  In
the absence of a resolution by the Board or a provision in the rules of such
committee to the contrary, the presence of a majority of the total number of
members of such committee shall constitute a quorum for the transaction of
business, and the vote of a majority of the members of the Board present at a
meeting at which a quorum is present shall be the act of such committee.

 

(e)           Delegation;
Generally.  The Board may, from time
to time, delegate to one or more Persons (including any Director or officer)
such authority and duties as the Board may deem advisable.  The Board also may assign titles to any
Director, Holder or other individual and may delegate to such Director, Holder
or other individual certain authority and duties.  Any number of titles may be held by the same
Director, Holder or other individual. 
Any delegation pursuant to this Section 5.2(e) may be revoked at
any time by the Board.

 

5.3          Number and Term of Office.  Each Director shall be a “manager” as
described in the Act.  The initial number
of Directors and members of the Board of Directors shall be six.  Thereafter, the number of Directors shall be
established from time to time by the affirmative vote of the Members holding
the Required Interest.  The initial
Directors shall be Samuel M. Mencoff, Thomas S. Souleles, Christopher J.
McGowan, Zaid F. Alsikafi, W. Thomas Stephens, and one vacancy, and by execution hereof, the Members
holding the Required Interest hereby approve by written consent the appointment
of such persons as Directors of the Company, and this Agreement shall serve as
a written consent of members in lieu of a meeting pursuant to

 

13

 

Section 18-302 of
the Act with respect to the election of Directors of the Board as set forth
above.  Each Director shall hold office
for the term for which he is elected and thereafter until his successor shall
have been elected and qualified, or until his earlier death, resignation or
removal.  A Director need not be a Member
or a Holder and need not be a resident of the State of Delaware.

 

5.4          Vacancies; Removal; Resignation.  Any Director position to be filled by reason
of an increase in the number of Directors or by any other reason shall be
filled by the affirmative vote of the Members holding the Required
Interest.  A Director elected to fill a
vacancy occurring other than by reason of an increase in the number of
Directors shall be elected for the unexpired term of his predecessor in office.  Any Director may be removed, with or without
cause, by the Members holding the Required Interest.  Any Director may resign at any time.  Such resignation shall be made in writing and
shall take effect at the time specified therein, or if no time is specified, at
the time of its receipt by the remaining Directors.  The acceptance of a resignation shall not be
necessary to make it effective, unless expressly so provided in the
resignation.

 

5.5          Board Meetings.

 

(a)           Quorum;
Voting.  A majority of the total
number of Directors fixed by, or in the manner provided in, this Agreement
shall constitute a quorum for the transaction of business of the Board, and
except as otherwise provided in this Agreement, the act of a majority of the
Directors present at a meeting of the Board at which a quorum is present shall be
the act of the Board.  A Director who is
present at a meeting of the Board at which action on any Company matter is
taken shall be presumed to have assented to the action unless its dissent shall
be entered in the minutes of the meeting or unless he shall file his written
dissent to such action with the Person acting as secretary of the meeting
before the adjournment thereof or shall deliver such dissent to the Company
immediately after the adjournment of the meeting.  Such right to dissent shall not apply to a
Director who voted in favor of such action.

 

(b)           Place;
Attendance.  Meetings of the Board
may be held at such place or places as shall be determined from time to time by
resolution of the Board.  At all meetings
of the Board, business shall be transacted in such order as shall from time to
time be determined by resolution of the Directors.  Attendance of a Director at a meeting shall
constitute a waiver of notice of such meeting, except where a Director attends
a meeting for the express purpose of objecting to the transaction of any
business on the ground that the meeting is not lawfully called or convened.

 

(c)           Meeting
In Connection With Member Meeting. 
In connection with any annual meeting of Members at which Directors were
elected, the Board may, if a quorum is present, hold a first meeting for the
transaction of business immediately after and at the same place as such annual
meeting of the Members.  Notice of such
meeting at such time and place shall not be required.

 

(d)           Time,
Place and Notice.  Regular meetings
of the Board shall be held at such times and places as shall be designated from
time to time by resolution of the Directors, or

 

14

 

as requested by the Members holding the Required
Interest.  Notice of such meetings shall
not be required.

 

(e)           Special
Meetings.  Special meetings of the
Board may be called by any Director on at least 24 hours’ notice to each other
Director.  Such notice need not state the
purpose or purposes of, nor the business to be transacted at, such meeting,
except as may otherwise be required by law or provided for in this Agreement.

 

5.6          Approval or Ratification of Acts or
Contracts by Members.  Any
Director in its discretion may submit any act or contract for approval or
ratification at any meeting of the Board, and any act or contract that shall be
approved or be ratified by the Board shall be as valid and as binding upon the
Company and upon all the Members as if it shall have been approved or ratified
by every Member of the Company.

 

5.7          Action by Written Consent or
Telephone Conference.  Any action
permitted or required by the Act, the Certificate or this Agreement to be taken
at a meeting of the Board or any committee designated by the Board may be taken
without a meeting if a consent in writing, setting forth the action to be
taken, is signed by not less than the minimum number of Directors or members of
such committee, as the case may be, that would be necessary to take such action
at a meeting at which all Directors or members of such committee, as the case
may be, were present and voted.  Such
consent shall have the same force and effect as a vote at a meeting and may be
stated as such in any document or instrument filed with the Secretary of State
of Delaware, and the execution of such consent shall constitute attendance or
presence in person at a meeting of the Board or any such committee, as the case
may be.  Prompt notice of the taking of
any action without a meeting by less than unanimous written consent will be
given to those Directors or members of such committee, as applicable, who did
not consent in writing to such action. 
Subject to the requirements of the Act, the Certificate or this
Agreement for notice of meetings, unless otherwise restricted by the Certificate,
the Directors or members of any committee designated by the Board may
participate in and hold a meeting of the Board or any committee of Directors,
as the case may be, by means of a conference telephone or similar
communications equipment by means of which all persons participating in the
meeting can hear each other, and participation in such meeting shall constitute
attendance and presence in person at such meeting, except where a person
participates in the meeting for the express purpose of objecting to the
transaction of any business on the ground that the meeting is not lawfully
called or convened.

 

5.8          Compensation.  The Board shall have the authority to fix the
compensation of Directors, including, without limitation, a stated salary or
other compensation for attendance at each meeting of the Board or a stated
annual salary as a Director; provided that no such compensation shall be
payable to any Director who is a management employee of the Company or its
Subsidiaries.  Upon submission of reasonable
documentation, a Director shall be paid his or her reasonable out-of-pocket
expenses, if any, of attendance at each meeting of the Board.  None of the foregoing payments shall preclude
any Director from serving the Company in any other capacity and receiving
compensation therefor.  Members of
special or standing committees may, as determined by the Board, be allowed like
compensation for attending committee meetings.

 

15

 

5.9          Officers.

 

(a)           Designation
and Appointment.  The Board may (but
need not), from time to time, designate and appoint one or more persons as an
officer of the Company.  An officer need
not be a resident of the State of Delaware, a Holder nor a Director.  Any officers so designated shall have such
authority and perform such duties as the Board may, from time to time, delegate
to them.  The Board may assign titles
(including chairman, chief executive officer, president, vice president,
secretary, assistant secretary, treasurer and assistant treasurer) to
particular officers.  Unless the Board
otherwise decides, if the title is one commonly used for officers of a business
corporation formed, the assignment of such title shall constitute the delegation
to such officer of the authority and duties that are normally associated with
that office, subject to (i) any specific delegation of authority and
duties made to such officer by the Board pursuant to the third sentence of this
Section 5.9(a) and (ii) any delegation of authority and duties made
to one or more officers pursuant to the terms of Section 5.2(e).  Each officer shall hold office until such
officer’s successor shall be duly designated and shall qualify or until such
officer’s death or until such officer shall
resign or shall have been removed in the manner hereinafter provided.  Any number of offices may be held by the same
individual.  The salaries or other
compensation, if any, of the officers and agents of the Company shall be fixed
from time to time by the Board.

 

(b)           Resignation.  Any officer (subject to any contract rights
available to the Company, if applicable) may resign as such at any time. Such
resignation shall be made in writing and shall take effect at the time
specified therein, or if no time be specified, at the time of its receipt by
the Board.  The acceptance of a
resignation shall not be necessary to make it effective, unless expressly so
provided in the resignation.  Any officer
may be removed as such, either with or without cause, by the Board in its
discretion at any time; provided, however, that such removal shall be
without prejudice to the contract rights, if any, of the individual so
removed.  Designation of an officer shall
not of itself create contract rights. 
Any vacancy occurring in any office of the Company may be filled by the
Board.

 

(c)           Initial
Officers.  Without limiting the
generality of the foregoing, as of the date hereof, the Board hereby designates
the Persons set forth on the attached Schedule of Officers as officers
as set forth thereon until their replacements shall be appointed in accordance
with the terms of this Agreement.

 

5.10        Reliance by Third Parties.  Any Person dealing with
the Company, other than a Holder, may rely on the authority of the Board (or
any Director or officer authorized by the Board) in taking any action in the
name of the Company without inquiry into the provisions of this Agreement or
compliance herewith, regardless of whether that action actually is taken in
accordance with the provisions of this Agreement.  Every agreement, instrument or document
executed by the Board (or any Director or officer authorized by the Board) in
the name of the Company with respect to any business or property of the Company
shall be conclusive evidence in favor of any Person relying thereon or claiming
thereunder that (i) at the time of the execution or delivery thereof, this
Agreement was in full force and effect, (ii) such agreement, instrument or
document was duly executed according to this Agreement and is binding upon the
Company and (iii) the Board or such Director or officer was duly authorized and
empowered to execute and deliver such agreement, instrument or document for and
on behalf of the Company.

 

16

 

ARTICLE VI

MEETINGS OF MEMBERS

 

6.1          Lack of Authority.  No Holder or Member (in its capacity
as such) has the authority or power to act for or on behalf of the Company, to
do any act that would be binding on the Company or to make any expenditures on
behalf of the Company, unless (i) such specific authority has been
expressly granted to and not revoked from such Person by the Board or
(ii) such specific authority has been expressly granted to such Person
pursuant to this Agreement, and the Holders hereby consent to the exercise by
the Board of the powers conferred on them by law and this Agreement.

 

6.2          Member Meetings.

 

(a)           Quorum;
Voting.  A quorum shall be present at
a meeting of Members if the Members holding a Required Interest are represented
at the meeting in person or by proxy. 
With respect to any matter, other than a matter for which the
affirmative vote of the holders of a specified portion of all Members entitled
to vote is required by the Act, the affirmative vote of the Members holding the
Required Interest at a meeting of Members at which a quorum is present shall be
the act of the Members.

 

(b)           Place;
Attendance.  All meetings of the
Members shall be held at the principal place of business of the Company or at
such other place within or outside the State of Delaware as shall be specified
or fixed in the notices or waivers of notice thereof; provided  that
any or all Members may participate in any such meeting by means of conference
telephone or similar communications equipment pursuant to Section 6.5.

 

(c)           Power
to Adjourn.  Notwithstanding the
other provisions of the Certificate or this Agreement, the chairman of the
meeting or the Members holding the Required Interest shall have the power to
adjourn such meeting from time to time, without any notice other than
announcement at the meeting of the time and place of the holding of the
adjourned meeting.  If such meeting is
adjourned by the Members, such time and place shall be determined by a vote of
the Members holding the Required Interest. 
Upon the resumption of such adjourned meeting, any business may be
transacted that might have been transacted at the meeting as originally called.

 

(d)           Meetings.  Meetings of the Members for any proper
purpose or purposes may be called at any time by the Board or by Members
holding the Required Interest.  If not
otherwise stated in or fixed in accordance with the remaining provisions
hereof, the record date for determining Members entitled to call a special
meeting is the date any Member first signs the notice of that meeting.  Only business within the purpose or purposes
described in the notice (or waiver thereof) required by this Agreement may be
conducted at a meeting of the Members.

 

(e)           Notice.  Written or printed notice stating the place,
day and hour of the meeting and the purpose or purposes for which the meeting
is called, shall be delivered not less than ten nor more than 60 days before
the date of the meeting, either personally or by mail, by or at the direction
of the Board, to each Member entitled to vote at such meeting.  If mailed, any

 

17

 

such notice shall be deemed to be delivered when
deposited in the United States mail, addressed to the Member at its address
provided for in Section 12.5, with postage thereon prepaid.

 

(f)            Fixing
of Record Date.  The date on which
notice of a meeting of Members is mailed or the date on which the resolution of
the Directors declaring a Distribution is adopted, as the case may be, shall be
the record date for the determination of the Members entitled to notice of or
to vote at such meeting (including any adjournment thereof) or the Members
entitled to receive such Distribution.

 

(g)           No
Cumulative Voting.  There shall be no
cumulative voting in the election of Directors hereunder.

 

6.3          Proxies.  A Member may vote either in person or by
proxy executed in writing by the Member. 
A telegram, telex, cablegram or similar transmission by the Member, or a
photographic, photostatic, facsimile or similar reproduction of a writing
executed by the Member shall be treated as an execution in writing for purposes
of this Section.  Proxies for use at any
meeting of Members or in connection with the taking of any action by written
consent shall be filed with the Board, before or at the time of the meeting or
execution of the written consent as the case may be.  All proxies shall be received and taken
charge of and all ballots shall be received and canvassed by the Board, who
shall decide all questions concerning the qualification of voters, the validity
of the proxies and the acceptance or rejection of votes, unless an inspector or
inspectors shall have been appointed by the chairman of the meeting, in which
event such inspector or inspectors shall decide all such questions.  No proxy shall be valid after eleven months
from the date of its execution unless otherwise provided in the proxy.  A proxy shall be revocable unless the proxy
form conspicuously states that the proxy is irrevocable and the proxy is
coupled with an interest.  Should a proxy
designate two or more Persons to act as proxies, unless that instrument shall
provide to the contrary, a majority of such Persons present at any meeting at
which their powers thereunder are to be exercised shall have and may exercise
all the powers of voting or giving consents thereby conferred, or if only one
be present, then such powers may be exercised by that one; or, if an even
number attend and a majority do not agree on any particular issue, the Company
shall not be required to recognize such proxy with respect to such issue if such
proxy does not specify how the Units that are the subject of such proxy are to
be voted with respect to such issue.

 

6.4          Conduct of Meetings. 
The Chairman of the Board shall preside at all meetings of the Members,
or in his absence, the Members attending the meeting shall elect their own
chairman of the meeting.  The Secretary
of the Company shall act as secretary of all meetings of the Members and keep
the minutes.  In the absence of the
Secretary, the chairman of the meeting may appoint any person to act as the
secretary of the meeting.

 

6.5          Action by Written Consent or
Telephone Conference.

 

(a)           Action
By Written Consent.  Any action
required or permitted to be taken at any annual or special meeting of Members
may be taken without a meeting, without prior notice and without a vote, if a
consent or consents in writing, setting forth the action so taken, shall be
signed by the Member or Members holding not less than the minimum percentages
of Units or each class of Units that would be necessary to take such action at
a meeting at which all

 

18

 

Members entitled to vote on the action were present
and voted.  Every written consent shall
bear the date of signature of each Member who signs the consent.  No written consent shall be effective to take
the action that is the subject to the consent unless, within 60 days after the
date of the earliest dated consent delivered to the Company in the manner
required by this Section, a consent or consents signed by the Member or Members
holding not less than the minimum percentages of Units or each class of Units
that would be necessary to take the action that is the subject of the consent
are delivered to the Company by delivery to its registered office, its
principal place of business or the Board. 
Delivery shall be by hand or certified or registered mail, return
receipt requested.  Delivery to the
Company’s principal place of business shall be addressed to a Director.  A telegram, telex, cablegram or similar
transmission by a Member, or a photographic, photostatic, facsimile or similar
reproduction of a writing signed by a Member, shall be regarded as signed by
the Member for purposes of this Section. 
Prompt notice of the taking of any action by Members without a meeting
by less than unanimous written consent shall be given to those Members entitled
to vote on such action and who did not consent in writing to the action.

 

(b)           Fixing
of Record Date.  The record date for
determining Members entitled to consent to action in writing without a meeting
shall be the first date on which a signed written consent setting forth the
action taken or proposed to be taken is delivered to the Company by delivery to
its registered office, its principal place of business, or the Board.  Delivery shall be by hand or by certified or
registered mail, return receipt requested. 
Delivery to the Company’s principal place of business shall be addressed
to a Director.

 

(c)           State
Filings.  If any action by Members is
taken by written consent, any certificate or documents filed with the Secretary
of State of Delaware as a result of the taking of the action shall state, in
lieu of any statement required by the Act concerning any vote of Members, that
written consent has been given in accordance with the provisions of the Act and
that any written notice required by the Act has been given.

 

(d)           Telephone
Conference.  Members may participate
in and hold a meeting by means of conference telephone or similar
communications equipment by means of which all Persons participating in the
meeting can hear each other, and participation in such meeting shall constitute
attendance and presence in person at such meeting, except where a Person
participates in the meeting for the express purpose of objecting to the transaction
of any business on the ground that the meeting is not lawfully called or
convened.

 

ARTICLE VII

LIMITED LIABILITY, EXCULPATION, AND INDEMNIFICATION

 

7.1          Limited Liability of Members.

 

(a)           Limitation
of Liability.  Except as otherwise
required by applicable law and as explicitly set forth in this Agreement, the
debts, liabilities, commitments and other obligations of the Company, whether
arising in contract, tort or otherwise, shall be solely the debts, obligations
and liabilities of the Company, and no Member or Holder shall have any personal
liability whatsoever in its capacity as a Member or Holder, whether to the
Company, to any of the other Members or Holders, to the creditors of the
Company or to any other Person, for

 

19

 

the debts, liabilities, commitments or any other
obligations of the Company or for any Losses of the Company.  Accordingly, a Member or Holder shall be
liable only to make its Capital Contributions to the Company required pursuant
to the terms hereof and the other payments expressly provided for herein.

 

(b)           Observance
of Formalities.  Notwithstanding
anything contained herein to the contrary, the failure of the Company, or any
Director or Holder, to observe any formalities or procedural or other
requirements relating to the exercise of its powers or management of the
Company’s business and affairs under this Agreement or the Act shall not be
grounds for imposing personal liability on any of the Members or Holders.

 

(c)           Return
of Distributions.  In accordance with
the Act and the laws of the State of Delaware, a member of a limited liability
company may, under certain circumstances, be required to return amounts
previously distributed to such member. 
It is the intent of the Holders that no Distribution to any Holder
pursuant to Article IV hereof shall be deemed a return of money or other
property paid or distributed in violation of the Act.  The payment of any such Distribution of money
or property to a Holder shall be deemed to be a compromise within the meaning
of the Act, and the Holder receiving any such money or property shall not be
required to return to any Person any such money or property.  However, if any court of competent
jurisdiction holds that, notwithstanding the provisions of this Agreement, any
Holder is obligated to make any such payment, such obligation shall be the
obligation solely of such Holder and not of any other Holder or Director.  Notwithstanding the foregoing, a Holder will
be required to return to the Company any Distribution to the extent made to it
in clear and manifest accounting, clerical, or other similar error (as
determined in good faith by the Board).

 

7.2          Exculpation of Covered Persons.  The personal liability of any Covered Person
to any Director, the Company or to any Member or Holder for any loss suffered
by the Company or any monetary damages for breach of fiduciary duties is hereby
eliminated to the fullest extent permitted by the Act.  The Covered Persons shall not be liable for
errors in judgment.  Any Covered Person
may consult with counsel and accountants and any Member, Director, officer,
employee or committee of the Company or other professional expert in respect of
Company affairs, and provided the Covered Person acts in good faith reliance
upon the advice or opinion of such counsel or accountants or other persons, the
Covered Person shall not be liable for any loss suffered by the Company in
reliance thereon.  If the Act is
hereafter amended or interpreted to permit further limitation of the liability
of a Covered Person beyond the foregoing, then this paragraph shall be
interpreted to limit the personal liability of the Covered Person to the
fullest extent permitted by the Act, as amended (but, in the case of any such
amendment, only to the extent that such amendment permits the Company to limit
the personal liability of the Covered Person to a greater extent than that
permitted by said law prior to such amendment). 
In furtherance of, and without limiting the generality of the foregoing,
no Covered Person shall be (a) personally liable for the debts, obligations or
liabilities of the Company, including any such debts, obligations or
liabilities arising under a judgment, decree or order of a court; (b) obligated
to cure any deficit in any Capital Account; (c) required to return all or any
portion of any Capital Contribution; or (d) required to lend any funds to the
Company.

 

7.3          Right to Indemnification for
Covered Persons.  Subject to the
limitations and conditions as provided in this Article VII, each Person
who was or is made a party or is

 

20

 

threatened to be
made a party to or is involved in any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative, arbitrative
(hereinafter a “Proceeding”), or any appeal in such a Proceeding or any
inquiry or investigation that could lead to such a Proceeding, by reason of the
fact that he or she, or a Person of whom he or she is the legal representative,
is or was a Covered Person or while a Covered Person is or was serving at the
request of the Company as a manager, director, officer, partner, venturer,
proprietor, trustee, employee, agent or similar functionary of another foreign
or domestic limited liability company, corporation, partnership, joint venture,
sole proprietorship, trust, employee benefit plan or other enterprise shall be
indemnified by the Company to the fullest extent permitted by the Act, as the
same exists or may hereafter be amended (but, in the case of any such
amendment, only to the extent that such amendment permits the Company to
provide broader indemnification rights than said law permitted the Company to
provide prior to such amendment) against judgments, penalties (including excise
and similar taxes and punitive damages), fines, settlements and reasonable
expenses (including, without limitation, attorneys’ fees) actually incurred by
such Person in connection with such Proceeding, and indemnification under this Article
VII shall continue as to a Person who has ceased to serve in the capacity
that initially entitled such Person to indemnity hereunder; provided  that
no such Person shall be indemnified for any judgments, penalties, fines,
settlements or expenses (i) to the extent attributable to conduct for which
indemnification would not be permitted under the Act or other applicable law,
(ii) for any present or future breaches of any representations, warranties or
covenants by such Person contained in this Agreement or in any other agreement with
the Company, or (iii) in any action (except an action to enforce
indemnification rights set forth in this Section 7.3) brought by such
Person.  It is expressly acknowledged
that the indemnification provided in this Article could involve indemnification
for negligence or under theories of strict liability.

 

7.4          Contract with Company.  The rights granted pursuant to this Article
VII shall be deemed contract rights, and no amendment, modification or
repeal of this Article shall have the effect of limiting or denying any such
rights with respect to actions taken or Proceedings arising prior to any
amendment, modification or repeal.

 

7.5          Advance Payment.  The right to
indemnification conferred in this Article VII shall include the right to
be paid or reimbursed by the Company the reasonable expenses incurred by a
Person of the type entitled to be indemnified under Section 7.3 who was,
is or is threatened to be made a named defendant or respondent in a Proceeding
in advance of the final disposition of the Proceeding and without any
determination as to the Person’s ultimate entitlement to indemnification; provided,
however, that the payment of such expenses incurred by any such Person
in advance of the final disposition of a Proceeding shall be made only upon delivery
to the Company of a written affirmation by such Person of his or her good faith
belief that he has met the standard of conduct necessary for indemnification
under Article VII and a written undertaking, by or on behalf of such
Person, to repay all amounts so advanced if it shall ultimately be determined
that such indemnified Person is not entitled to be indemnified under this Article
VII or otherwise.

 

7.6          Indemnification of Employees and
Agents.  The Company, by adoption
of a resolution of the Board, may indemnify and advance expenses to any
employees or agents of the Company who are not or were not Covered Persons but
who are or were serving at the request of the Company as a manager, director,
officer, partner, venturer, proprietor, trustee, employee,

 

21

 

agent or similar
functionary of another foreign or domestic limited liability company,
corporation, partnership, joint venture, sole proprietorship, trust, employee
benefit plan or other enterprise against liabilities and expenses asserted
against such Person and incurred by such Person in such a capacity or arising
out of their status as such a Person, to the same extent that it may indemnify
and advance expenses to Covered Persons under this Article VII.

 

7.7          Appearance as a Witness.  Notwithstanding any other provision of this Article
VII, the Company may pay or reimburse expenses incurred by a Covered Person
in connection with the appearance as a witness or other participation in a
Proceeding at a time when such Covered Person is not a named defendant or
respondent in the Proceeding.

 

7.8          Nonexclusivity of Rights.  The right to indemnification and the
advancement and payment of expenses conferred in this Article VII shall
not be exclusive of any other right that a Covered Person or other Person
indemnified pursuant to Section 7.6 may have or hereafter acquire under
any law (common or statutory), provision of the Certificate or this Agreement,
any agreement, vote of Members or disinterested Directors or otherwise.

 

7.9          Insurance.  The Company may purchase and maintain
insurance, at its expense, to protect itself and any Person who is or was
serving as a Covered Person or is or was serving at the request of the Company
as a manager, director, officer, partner, venturer, proprietor, trustee,
employee, agent or similar functionary of another foreign or domestic limited
ability company, corporation, partnership, joint venture, sole proprietorship,
trust, employee benefit plan or other enterprise against any expense, liability
or loss, whether or not the Company would have the power to indemnify such
Person against such expense, liability or loss under this Article VII.

 

7.10        Savings Clause.  If this Article VII or any portion
hereof shall be invalidated on any ground by any court of competent
jurisdiction, then the Company shall nevertheless indemnify and hold harmless
each Director or any other Person indemnified pursuant to this Article VII
as to costs, charges and expenses (including attorneys’ fees), judgments, fines
and amounts paid in settlement with respect to any action, suit or proceeding,
whether civil, criminal, administrative or investigative to the full extent
permitted by any applicable portion of this Article VII that shall not
have been invalidated and to the fullest extent permitted by applicable law.

 

7.11        Investment Opportunities; Conflicts
of Interest.

 

(a)           Directors.  Subject to the other express provisions of
this Agreement and of any agreement entered into by a Member with the Company
or its Subsidiaries or Affiliates, each Director of the Company at any time and
from time to time may engage in and own interests in other business ventures of
any and every type and description, independently or with others (including
ones in competition with the Company) with no obligation to offer to the
Company or any other Member, Holder, Director or officer the right to
participate therein.

 

(b)           FPH.  The Holders expressly acknowledge that,
subject to the other express provisions of this Agreement, (i) FPH and its
respective Affiliates are permitted to have, and may presently or in the future
have, investments or other business relationships with entities engaged in the
forestry products business (including in areas in which the Company or any of
its

 

22

 

Subsidiaries may in the future engage in business),
and in related businesses other than through the Company or any of its
Subsidiaries (an “Other Business”), (ii) FPH and its respective
Affiliates have and may develop a strategic relationship with businesses that
are and may be competitive with the Company or any of its Subsidiaries, (iii)
none of FPH or its respective Affiliates (including their respective
representatives serving on the Board) will be prohibited by virtue of their
investments in the Company or its Subsidiaries or their service on the Board
from pursuing and engaging in any such activities, (iv) none of FPH or its
respective Affiliates (including their respective representatives serving on
the Board) will be obligated to inform the Company, or any Member, Holder,
Director, or officer of any such opportunity, relationship or investment, (v)
neither the Company nor any other Member, Holder, Director or officer will
acquire or be entitled to any interest or participation in any Other Business as
a result of the participation therein of any of FPH or its respective
Affiliates and (vi) the involvement of FPH or its respective Affiliates
(including their respective representatives serving on the Board) in any Other
Business will not constitute a conflict of interest by such Persons with
respect to the Company, any of its Subsidiaries or its Members or Holders.

 

(c)                                  Transactions
with the Company.  The Company may
transact business with any Director, Member, Holder or officer or any Affiliate
thereof; provided  that the terms of such transactions are no less
favorable than those the Company could obtain on an arm’s-length basis from
unrelated third parties.

 

ARTICLE VIII

TAX MATTERS

 

8.1                               Tax Returns.  The Board shall cause to be prepared and
filed all necessary federal and state income tax and other tax returns for the
Company, including making any elections the Board may deem appropriate and in
the best interests of the Members.  Each
Holder shall furnish to the Board all pertinent information in its possession
relating to Company operations that is necessary to enable the Company’s income
tax and other tax returns to be prepared and filed.

 

8.2                               Tax Matters Member.  Unless and
until the Members shall otherwise unanimously agree, FPH shall be the “tax matters
partner” of the Company pursuant to Section 6231(a)(7) of the Code (the “Tax Matters
Member”).

 

(a)                                  Authority
of Tax Matters Member.  The Tax
Matters Member is authorized to represent the Company before the Internal
Revenue Service and any other governmental agency with jurisdiction, and to
sign such consents and to enter into settlements and other agreements with such
agencies as the Board deems necessary or advisable.

 

(b)                                 Tax
Elections.  The Tax Matters Member
may, in its sole discretion, make or revoke any election under the Code or the
Treasury Regulations issued thereunder (including for this purpose any new or
amended Treasury Regulations issued after the date of formation of the
Company), including, without limitation, an 
election to be taxed as a corporation for U.S. federal income tax
purposes pursuant to Treasury Regulation Section 301.7701-3.

 

23

 

(c)                                  Reimbursement
of Expenses.  Promptly following the
written request of the Tax Matters Member, the Company shall, to the fullest
extent permitted by law, reimburse and indemnify the Tax Matters Member for all
reasonable expenses, including reasonable legal and accounting fees, claims,
liabilities, losses and damages incurred by the Tax Matters Member in
connection with any administrative or judicial proceeding (i) with respect to
the tax liability of the Company and/or (ii) with respect to the tax liability
of the Holders in connection with the operations of the Company.

 

(d)                                 Survival
of Provisions.  The provisions of
this Section 8.2 shall survive
the termination of the Company or the termination of any Holder’s interest in
the Company and shall remain binding on the Holders for as long a period of
time as is necessary to resolve with the Internal Revenue Service any and all
matters regarding the Federal income taxation or other taxes of the Company or
the Holders.

 

8.3                               Indemnification and Reimbursement
for Payments on Behalf of a Holder. 
If the Company is obligated to pay any amount to a governmental agency
(or otherwise makes a payment) because of a Holder’s status or otherwise
specifically attributable to a Holder (including, without limitation, federal
withholding taxes with respect to foreign Persons, state personal property
taxes, state personal property replacement taxes, state withholding taxes,
state unincorporated business taxes, etc.), then such Holder (the “Indemnifying
Holder”) shall indemnify the Company in full for the entire amount paid
(including, without limitation, any interest, penalties and expenses associated
with such payments).  The amount to be
indemnified shall be charged against the Capital Account of the Indemnifying
Holder, and, at the option of the Board, either:

 

(a)                                  promptly
upon notification of an obligation to indemnify the Company, the Indemnifying
Holder shall make a cash payment to the Company equal to the full amount to be
indemnified (and the amount paid shall be added to the Indemnifying Holder’s
Capital Account but shall not be treated as a Capital Contribution), or

 

(b)                                 the
Company shall reduce distributions which would otherwise be made to the
Indemnifying Holder, until the Company has recovered the amount to be
indemnified (and, notwithstanding Section 3.1, the amount withheld
shall not be treated as a Capital Contribution).

 

A Holder’s obligation to
make contributions to the Company under this Section 8.3 shall
survive the termination, dissolution, liquidation and winding up of the
Company, and for purposes of this Section 8.3, the Company shall be
treated as continuing in existence.  The
Company may pursue and enforce all rights and remedies it may have against each
Holder under this Section 8.3, including instituting a lawsuit to
collect such contribution with interest calculated at a rate equal to the Base
Rate plus three percentage points per annum (but not in excess of the highest
rate per annum permitted by law).

 

 

24

 

ARTICLE IX

BOOKS AND RECORDS, REPORTS, AND CONFIDENTIALITY

 

9.1                               Maintenance of Books.

 

(a)                                  Books
and Records.  The Company shall keep
books and records of account and shall keep minutes of the proceedings of, or
maintain written consents executed by, its Members, the Board and each
committee of the Board.  The calendar
year shall be the accounting year of the Company.

 

(b)                                 Schedule of
Members.  The Company will maintain,
and as required update, the attached Schedule of Members, which
sets forth with respect to each Member their respective name, address, number
and class of Units owned by such Member and the amount of Capital Contributions
made by such Member with respect thereto. 
Unless otherwise determined by the Board, the Schedule of
Members will be and remain confidential, and each Member hereby accepts,
acknowledges and agrees that, notwithstanding anything herein to the contrary,
it will have no right to view or obtain the Schedule of Members or
otherwise obtain any such information relating to any Member other than itself.

 

9.2                               Reports.

 

(a)                                  Tax
Information.  To the extent
reasonably practicable, within 90 days after the end of each Taxable Year, the
Company shall prepare and mail to each Holder and, to the extent necessary, to
each former Holder (or such Holder’s legal representatives), a report setting
forth in sufficient detail such information as shall enable such Holder or
former Holder (or such Holder’s legal representatives) to prepare its
respective federal, state, and local income tax returns in accordance with the
laws, rules, and regulations then prevailing. 
The Company shall also provide Form K-1s to each of the Holders as soon
as reasonably practicable after the end of each Taxable Year.

 

(b)                                 Cost
of Reports; No Additional Information. 
The Company shall bear the costs of all reports and other information
provided pursuant to this Section 9.2.  Except as otherwise provided in this Section 9.2,
each Member hereby waives any and all rights under the Act entitling such
Member to additional information from or access to the Company.

 

9.3                               Company Funds.  The Board may not commingle the Company’s
funds with the funds of any Holder, Director or any officer.

 

9.4                               Confidentiality.  Each Holder
recognizes and acknowledges that it may receive certain confidential and
proprietary information and trade secrets of the Company and its Subsidiaries,
including but not limited to confidential information of the Company and its
Subsidiaries regarding identifiable, specific and discrete business
opportunities being pursued by the Company or its Subsidiaries (the “Confidential
Information”).  Each Holder (on
behalf of itself and, to the extent that such Holder would be responsible for
the acts of the following persons under principles of agency law, its
directors, officers, shareholders, partners, employees, agents and members)
agrees that it will not, during or after the term of this Agreement, whether
through an Affiliate or otherwise, take commercial or proprietary advantage of
or profit from any Confidential Information or disclose Confidential
Information to any Person for any reason or purpose whatsoever, except (i) to
authorized representatives and employees of the Company or the Subsidiaries and
as otherwise may be proper in the course of performing such Holder’s
obligations, or enforcing such Holder’s rights, under this Agreement, (ii) as
part of such Holder’s normal reporting or review procedure, or in connection
with such Holder’s or such Holder’s

 

25

 

Affiliates’ normal fund
raising, marketing, informational or reporting activities, or to such Holder’s
(or any of its Affiliates’) Affiliates, employees, auditors, attorneys or other
agents, (iii) to any bona fide prospective purchaser of the equity or assets of
such Holder or its Affiliates or the Units held by such Holder, or prospective
merger partner of such Holder or its Affiliates, provided  that
such purchaser or merger partner agrees to be bound by the provisions of this Section 9.4
or (iv) as is required to be disclosed by order of a court of competent
jurisdiction, administrative body or governmental body, or by subpoena, summons
or legal process, or by law, rule or regulation, provided  that
the Holder required to make such disclosure shall provide to the Board prompt
notice of such requirement.  For purposes
of this Section 9.4, Confidential Information shall not include any
information of which (x) such Person became aware prior to its affiliation with
the Company, (y) such Person learns from sources other than the Company or its
Subsidiaries, (provided  that such Person does not know or have
reason to know, at the time of such Person’s disclosure of such information,
that such information was acquired by such source through violation of law, or
breach of contractual confidentiality obligations or breach of fiduciary
duties) or (z) is disclosed in a prospectus or other documents for
dissemination to the public.  Nothing in
this Section 9.4 shall in any way limit or otherwise modify any
confidentiality covenants entered into by the Management Members pursuant to
the Management Equity Agreements or any other agreement entered into with the
Company or its Subsidiaries.

 

ARTICLE X

TRANSFERS; ADMISSION OF MEMBERS

 

10.1                        Transfers.

 

(a)                                  Generally.  THE TRANSFER OF ANY INTEREST IN THE COMPANY
IS SUBJECT TO THE RESTRICTIONS ON TRANSFER CONTAINED IN THIS AGREEMENT AND,
WITH RESPECT TO CERTAIN HOLDERS PARTY HERETO, THE SECURITYHOLDERS AGREEMENT
(WHICH RESTRICTIONS ARE INCORPORATED HEREIN BY REFERENCE).  THE BOARD, IN ITS SOLE DISCRETION, MAY
PROHIBIT ANY PROPOSED TRANSFER OF AN EQUITY INTEREST IF SUCH TRANSFER FAILS TO
SATISFY ONE OF THE SAFE HARBORS SET FORTH IN TREASURY REGULATION SECTION 1.7704-1(e)
- (j) OR IF SUCH TRANSFER COULD OTHERWISE CREATE A RISK THAT THE COMPANY COULD
BE TREATED AS A PUBLICLY TRADED PARTNERSHIP WITHIN THE MEANING OF CODE SECTION 7704.

 

(b)                                 Restrictions
on Transfers.  The offer, sale,
transfer, assignment, pledge or other disposition of any interest in any Unit
(whether with or without consideration and whether voluntarily or involuntarily
or by operation of law), directly or indirectly, is referred to herein as a “Transfer.”  So long as the Securityholders Agreement is
in effect, no Holder of Common Units that is party to the Securityholders
Agreement shall Transfer any interest in any Units, except as permitted
pursuant to the terms of the Securityholders Agreement.

 

10.2                        Incorporation of the Company.  The
Board may, in advance of, and in order to facilitate, a Public Offering of
securities of the Company, or for other reasons that the Board deems to be in
the best interests of the Company, cause the Company to incorporate its
business, or any portion thereof, including, without limitation, by way
of:  (a) the Transfer of all of the
assets of the Company, subject to the liabilities of the Company, or the
Transfer of any portion of

 

26

 

such assets and
liabilities, to one or more corporations in exchange for equity interests of
said corporation(s) and the subsequent distribution of such equity interests,
at such time as the Board may determine, to the Holders in accordance with this
Agreement, (b) Transfer by each of the Holders of Units held by such Holder to
one or more corporations in exchange for equity interests of said
corporation(s) and, in connection therewith, each Holder hereby agrees to the
Transfer of its Units in accordance with the terms of exchange as provided by
the Board and further agrees that, as of the effective date of such exchange,
any Units outstanding thereafter that shall not have been tendered for exchange
shall represent only the right to receive a certificate representing the number
of equity interests of said corporation(s) as provided in the terms of the
exchange, (c) the merger of the Company with and into a corporation as a result
of which the Holders receive as merger consideration equity interests of such
corporation, as the surviving entity to the merger, which merger shall not be
required to be approved by the Members, (d) if the only assets of the Company
consist of cash and stock of a corporation, dissolve the Company and distribute
such cash and shares of stock to the Holders, or (e) the conversion of the
Company to a corporation or other entity pursuant to applicable law, which
conversion shall not be required to be approved by Members; provided  that
the organizational documents of any such new corporation or entity, its equity
interests and/or a shareholders’ or other agreement, as appropriate, will in
all material respects reflect and be consistent with the terms and provisions
applicable to each Holder’s ownership of Units immediately prior to such
transaction; provided  further, that each Holder is, as a result
of such transaction, in substantially the same ownership position with respect
to the Company (or its successor) as it was in immediately prior to such
transaction.  Each Holder will take all
reasonable actions in connection with the consummation of such conversion as
requested by the Board.

 

10.3                        Void Assignment. 
Any sale, exchange or other transfer by any Holder of any Units or other
interests in the Company in contravention of this Agreement shall be void and
ineffectual and shall not bind or be recognized by the Company or any other
party.  No such purported assignee shall
have any right to any Profits, Losses or Distributions of the Company.

 

10.4                        Effect of Valid Assignment.

 

(a)                                  Assignment.  A Transfer of Units permitted hereunder shall
be effective as of the date of assignment and compliance with the conditions to
such Transfer.  Profits, Losses and other
Company items shall be allocated between the assignor and the assignee
according to Code Section 706. 
Distributions made before the effective date of such Transfer shall be
paid to the assignor, and Distributions made after such date shall be paid to
the assignee.

 

(b)                                 Record
Owner.  Notwithstanding the
foregoing, the Company and the Board shall be entitled to treat the record
owner of any Units or other interest in the Company as the absolute owner
thereof and shall incur no liability for Distributions of cash or other
property made in good faith to such owner until such time as a written
assignment of such Units or other interest in the Company, which assignment is
permitted pursuant to the terms and conditions of this Article X,
has been received and accepted by the Board and recorded on the books of the
Company.

 

(c)                                  Rights
and Obligations of Assignee.  Unless
and until an assignee becomes a substituted Member pursuant to Section 10.5,
the assignee shall not be entitled to any

 

27

 

of the rights granted to a Member hereunder or under
applicable law, other than the rights granted specifically to assignees
pursuant to this Agreement or pursuant to the Act; provided  that
without relieving the assigning Holder from any such limitations or obligations,
as more fully described in Section 10.4(e) hereof, such assignee
shall be bound by any limitations and obligations of a Holder contained herein
by which a Member or other Holder would be bound on account of the assignee’s
interest in the Company (including the obligation to make required Capital
Contributions with respect to any transferred Units).

 

(d)                                 Acceptance
of Benefits.  Any Person who acquires
in any manner whatsoever any Units or other interest in the Company,
irrespective of whether such Person has accepted and adopted in writing the
terms and provisions of this Agreement, shall be deemed by the acceptance of
the benefits of the acquisition thereof to have agreed to be subject to and
bound by all the terms and conditions of this Agreement that any predecessor in
such Units or other interest in the Company of such Person was subject to or by
which such predecessor was bound.

 

(e)                                  Rights
and Obligations of Assignor. Any Member or Holder who shall assign any
Units or other interest in the Company shall cease to be a Member or Holder of
the Company with respect to such Units or other interest and shall no longer
have any rights or privileges of a Member or Holder with respect to such Units
or other interest, except that the applicable provisions of Article VII
shall continue to inure to the benefit of such Member or Holder in accordance
with the terms thereof.  Unless and until
such an assignee is admitted as a substituted Member in accordance with the
provisions of Section 10.5 hereof, (i) such assigning Holder shall
retain all of the duties, liabilities and obligations of a Holder with respect
to such Units or other interest, including, without limitation, the obligation
(together with its assignee, pursuant to Section 10.4(c) hereof) to
make and return Capital Contributions on account of such Units or other
interest pursuant to the terms of this Agreement and (ii) the Board may, in its
sole discretion, reinstate all or any portion of the rights and privileges of
such Holder with respect to such Units or other interest for any period of time
prior to the date such assignee becomes a substituted Member.  Nothing contained herein shall relieve any
Holder who transfers any Units or other interest in the Company from any
liability of such Holder to the Company or the other Holders with respect to
such Units or other interest that may exist on the date such assignee becomes a
substituted Member or that is otherwise specified in the Act and incorporated
into this Agreement or for any liability to the Company or any other Person for
any materially false statement made by such Holder (in its capacity as such) in
any Management Equity Agreement or for any present or future breaches of any
representations, warranties or covenants by such Holder (in its capacity as
such) contained herein or in the other agreements with the Company.

 

10.5                        Admission of Substituted Member.

 

(a)                                  Admission.  An assignee of any Units or other interests
in the Company of a Member, or any portion thereof, shall become a substituted
Member entitled to all the rights of a Member if and only if (i) the assignor
gives the assignee such right, (ii) the Board has granted its prior written
consent to such assignment and substitution, which consent may be withheld in
the sole discretion of the Board, and (iii) such assignee shall execute and
deliver a counterpart of this Agreement agreeing to be bound by all of the
terms and conditions of this Agreement, and such other documents and
instruments as may be necessary or appropriate to effect such Person’s
admission as a substituted Member, in form satisfactory to the Board.  Any such assignee will

 

28

 

become a substituted Member on the later of (i) the
effective date of Transfer, and (ii) the date on which all of the conditions
set forth in the preceding sentence have been satisfied.

 

(b)                                 Update
Schedule of Members.  Upon the
admission of a substituted Member, the Schedule of Members attached
hereto shall be amended to reflect the name, address, number and class of Units
and amount of Capital Contributions of such substituted Member and to eliminate
the name and address of and other information relating to the assigning Member
with regard to the assigned Units and other interests in the Company.

 

10.6                        Admission of Additional Members

 

(a)                                  Admission.  A Person may be admitted to the Company as an
additional Member only as contemplated under Section 2.3 hereof and
only if such additional Member shall execute and deliver a counterpart of this
Agreement agreeing to be bound by all of the terms and conditions of this
Agreement, and such other documents and instruments as may be necessary or
appropriate to effect such Person’s admission as an additional Member
(including pursuant to a Management Equity Agreement, as applicable, and such
other documents referenced therein), in form satisfactory to the Board.  Such admission shall become effective on the
date on which the Board determines in its sole discretion that such conditions
have been satisfied and when any such admission is shown on the books and
records of the Company.

 

(b)                                 Update
Schedule of Members.  Upon the
admission of an additional Member, the Schedule of Members attached
hereto shall be amended to reflect the name, address, number and class of Units
and amount of Capital Contributions of such additional Member.

 

10.7                        Effect of Incapacity.  Except as otherwise provided herein, the
Incapacity of a Member shall not dissolve or terminate the Company.  In the event of such Incapacity, the
executor, administrator, guardian, trustee or other personal representative of
the Incapacitated Member shall be deemed to be the assignee of such Member’s
Units or other interests in the Company and may, subject to the approval of the
Board, become a substituted Member upon the terms and conditions set forth in Section 10.5.

 

10.8                        Interests in a Member.  A Member that is not a natural person may not
cause or permit an interest, direct or indirect, in itself to be Disposed of
such that, after the Disposition, (i) the Company would be considered to have
terminated within the meaning of Section 708 of the Code or (ii) without
the consent of the Board, it shall cease to be controlled by substantially the
same Persons who control it as of the date of its admission to the Company as a
Member.

 

ARTICLE XI

DISSOLUTION, LIQUIDATION AND TERMINATION

 

11.1                        Dissolution. 
The Company shall be dissolved and its affairs shall be wound up on the
first to occur of the following:

 

(a)                                  a
determination by the Board;

 

(b)                                 the
written consent of the Members holding the Required Interest; or

 

29

 

(c)                                  the
entry of a decree of judicial dissolution of the Company under Section 18-802
of the Act.

 

The Company shall not be
dissolved by the admission of additional or substituted Members.  The death, retirement, resignation,
expulsion, bankruptcy or dissolution of a Member, or the occurrence of any
other event that terminates the continued membership of a Member in the Company,
shall not cause a dissolution of the Company. 
Except as otherwise set forth in this Article XI, the
Company is intended to have perpetual existence.

 

11.2                        Liquidation and Termination.  On dissolution of the Company, the Board
shall act as liquidators or may appoint one or more Members as liquidator.  The liquidators shall proceed diligently to
wind up the affairs of the Company and make final distributions as provided
herein and in the Act.  The costs of
liquidation shall be borne as a Company expense.  Until final distribution, the liquidators
shall continue to operate the Company properties with all of the power and
authority of the Board.  The steps to be
accomplished by the liquidators are as follows:

 

(a)                                  Proper
Accounting.  As promptly as possible
after dissolution and again after final liquidation, the liquidators shall
cause a proper accounting to be made by a recognized firm of certified public
accountants of the Company’s assets, liabilities and operations through the
last day of the calendar month in which the dissolution occurs or the final
liquidation is completed, as applicable;

 

(b)                                 Notice.  The liquidators shall cause the notice
described in the Act to be mailed to each known creditor of and claimant
against the Company in the manner described thereunder;

 

(c)                                  Satisfaction
of Liabilities.  The liquidators
shall pay, satisfy or discharge from Company funds all of the debts,
liabilities and obligations of the Company (including, without limitation, all
expenses incurred in liquidation) or otherwise make adequate provision for payment
and discharge thereof;

 

(d)                                 Contractual
Claims.  The liquidators shall make
reasonable provision to pay all contingent, conditional or unmatured
contractual claims known to the Company;

 

(e)                                  Compensation
for Claims.  The liquidators shall
make such provision as will be reasonably likely to be sufficient to provide
compensation for any claim against the Company which is the subject of a
pending action, suit or proceeding to which the Company is a party;

 

(f)                                    Unknown
Claims.  The liquidators shall make such
provision as will be reasonably likely to be sufficient for claims that have
not been made known to the Company or that have not arisen but that, based on
facts known to the Company, are likely to arise or to become known to the
Company within 10 years after the date of dissolution; and

 

(g)                                 Remaining
Assets.  All remaining assets of the
Company shall be distributed to the Holders in accordance with Section 4.2(b)
by the end of the Taxable Year of

 

30

 

the Company during which the liquidation of the
Company occurs (or, if later, 90 days after the date of the liquidation).

 

All distributions in kind
to the Holders shall be made subject to the liability of each distributee for
costs, expenses and liabilities theretofore incurred or for which the Company
has committed prior to the date of termination, and those costs, expenses and
liabilities shall be allocated to the distributees pursuant to this Section 11.2.  The distribution of cash and/or property to a
Holder in accordance with the provisions of this Section 11.2
constitutes a complete return to the Holder of its Capital Contributions and a
complete distribution to the Holder of its interest in the Company and all of
the Company’s property and constitutes a compromise to which all Members have
consented within the meaning of the Act. 
To the extent that a Holder returns funds to the Company, it has no
claim against any other Holder for those funds.

 

11.3                        Cancellation of Certificate.  On completion of the Distribution of Company
assets as provided herein, the Company shall be terminated, and the Board (or
such other Person or Persons as the Act may require or permit) shall file a
certificate of cancellation with the Secretary of State of Delaware, cancel any
other filings made pursuant to Section 1.1 or 12.3 and take
such other actions as may be necessary to terminate the Company.

 

11.4                        Reasonable Time for Winding Up.  A
reasonable time shall be allowed for the orderly winding up of the business and
affairs of the Company and the liquidation of its assets pursuant to Section 11.2
hereof in order to minimize any losses otherwise attendant upon such winding
up.

 

11.5                        Return of Capital.  The liquidators shall
not be personally liable for the return of Capital Contributions or any portion
thereof to the Holders (it being understood that any such return shall be made
solely from Company assets).

 

ARTICLE XII

GENERAL PROVISIONS

 

12.1                        Power of Attorney.

 

(a)                                  Granting
of Power of Attorney.  Each Holder
hereby constitutes and appoints the Board and the liquidators, with full power
of substitution, as his true and lawful agent and attorney-in-fact, with full
power and authority in his, her or its name, place and stead, to execute, swear
to, acknowledge, deliver, file and record in the appropriate public offices;
(i) this Agreement, all certificates and other instruments and all amendments
thereof which are in accordance with the terms of this Agreement and which the
Board deems appropriate or necessary to form, qualify, or continue the
qualification of, the Company as a limited liability company in the State of
Delaware and in all other jurisdictions in which the Company may conduct
business or own property, (ii) all instruments which the Board deems
appropriate or necessary to reflect any amendment, change, modification or
restatement of this Agreement which is made and approved in accordance with its
terms, (iii) all conveyances and other instruments or documents which the Board
deems appropriate or necessary to reflect the dissolution and liquidation of
the Company pursuant to the terms of this Agreement, including a

 

31

 

certificate of cancellation and (iv) all instruments
relating to the admission, withdrawal or substitution of any Holder pursuant to
Article X hereof.

 

(b)                                 Irrevocable.  The foregoing power of attorney is
irrevocable and coupled with an interest, and shall survive the Incapacity of
any Holder and the transfer of all or any portion of his or its Units and shall
extend to such Holder’s heirs, successors, assigns and personal
representatives.

 

12.2                        [Reserved]

 

12.3                        Filings.  Following the execution and delivery of this
Agreement, the Company and the Members shall promptly prepare any documents
required to be filed and recorded under the Act, and the Company and the
Members shall promptly cause each such document to be filed and recorded in
accordance with the Act and, to the extent required by local law, to be filed
and recorded or notice thereof to be published in the appropriate place in each
jurisdiction in which the Company may hereafter establish a place of
business.  The Company and the Members
shall also promptly cause to be filed, recorded and published such statements of
fictitious business name and any other notices, certificates, statements or
other instruments required by any provision of any applicable law of the United
States or any state or other jurisdiction that governs the conduct of its
business from time to time.

 

12.4                        Offset.  Whenever
the Company or any Subsidiary is to pay any sum to any Holder under this
Agreement or pursuant to any other agreement or right, any amounts that such
Holder owes to the Company or any Subsidiary under this Agreement or pursuant
to any other agreement or right may be offset against and deducted from that
sum before payment.

 

12.5                        Notices.  Except
as expressly set forth to the contrary in this Agreement, all notices,
requests, or consents provided for or permitted to be given under this
Agreement must be in writing and shall be deemed to have been given or made
when (a) delivered personally to the recipient, (b) telecopied or delivered by
electronic mail to the recipient (with hard copy sent to the recipient by
reputable overnight courier service (charges prepaid) that same day) if
telecopied or e-mailed before 5:00 pm Chicago time on a Business Day, and
otherwise on the next Business Day, (c) one Business Day after being sent by
reputable overnight courier service (charges prepaid), or (d) five Business
Days after being depositing in the United States mail, addressed to the
recipient, postage paid, and registered or certified with return receipt
requested.  All notices, requests, and
consents to be sent to a Member or Holder must be sent to or made at the
address given for that Member on the Schedule of Members or Holders
on the books and records of the Company, or such other address as that Member
or Holder may specify by notice to the Company and the other Members.  Any notice, request, or consent to the
Company or the Board must be given to the Board at the following address:

 

	
  To the Company

  	
  Boise Cascade
  Holdings, L.L.C.

  
	
   

  	
  c/o Madison
  Dearborn Partners, LLC

  
	
   

  	
  Three First
  National Plaza

  
	
   

  	
  Suite 3800

  
	
   

  	
  Chicago,
  Illinois 60602

  
	
   

  	
  Attention:

  	
  Samuel M.
  Mencoff 

  
	
   

  	
   

  	
  Thomas S. Souleles

  
	
   

  	
  Facsimile:

  	
  312-895-1056

  
	
   

  	
  E-mail:

  	
  smencoff@mdcp.com

  tsouleles@mdcp.com

  

 

32

 

	
  With a copy
  (which shall not

  constitute notice) to:

  	
  Kirkland &
  Ellis LLP

  
	
   

  	
  200 East
  Randolph Drive

  
	
   

  	
  Chicago,
  Illinois 60601

  
	
   

  	
  Attention:

  	
  Richard J.
  Campbell

  
	
   

  	
   

  	
  Jeffrey W.
  Richards

  
	
   

  	
  Facsimile:

  	
  (312) 861-2200

  
	
   

  	
  E-mail:

  	
  rcampbell@kirkland.com

  
	
   

  	
   

  	
  jrichards@kirkland.com

  

 

Whenever any notice is
required to be given by law, the Certificate or this Agreement, a written
waiver thereof, signed by the Person entitled to notice, whether before or
after the time stated therein, shall be deemed equivalent to the giving of such
notice.

 

12.6                        Entire Agreement.  This Agreement and the other agreements
referred to herein constitute the entire agreement of the Members and their
Affiliates relating to the Company and supersedes all prior contracts or
agreements with respect to the Company, whether oral or written.

 

12.7                        Effect of Waiver or Consent.  A waiver or consent, express or implied, to or
of any breach or default by any Person in the performance by that Person of its
obligations with respect to the Company is not a consent or waiver to or of any
other breach or default in the performance by that Person of the same or any
other obligations of that Person with respect to the Company.  Failure on the part of a Person to complain
of any act of any Person or to declare any Person in default with respect to
the Company, irrespective of how long that failure continues, does not
constitute a waiver by that Person of its rights with respect to that default
until the applicable statute-of-limitations period has run.

 

12.8                        Amendments. 
Except as otherwise expressly set forth herein, this Agreement may be
amended, modified, or waived from time to time only by the written consent of
the Members holding the Required Interest.

 

12.9                        Binding Effect. 
Subject to the restrictions on Transfer set forth in this Agreement,
this Agreement is binding on and shall inure to the benefit of the Members,
Holders, and their respective heirs, legal representatives, successors and
assigns.

 

12.10                 Governing Law; Severability.  THIS AGREEMENT IS GOVERNED BY AND SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF DELAWARE, EXCLUDING ANY
CONFLICT-OF-LAWS RULE OR PRINCIPLE THAT MIGHT REFER THE GOVERNANCE OR THE
CONSTRUCTION OF THIS AGREEMENT TO THE LAW OF ANOTHER JURISDICTION.  In the event of a direct conflict between the
provisions of this Agreement and any provision of the Certificate or any
mandatory provision of

 

33

 

the Act, the applicable
provision of the Certificate or the Act shall control.  If any provision of this Agreement or the
application thereof to any Person or circumstance is held invalid or
unenforceable to any extent, the remainder of this Agreement and the
application of that provision to other Persons or circumstances is not affected
thereby and that provision shall be enforced to the greatest extent permitted
by law.

 

12.11                 Further Assurances.  In connection with this Agreement and the
transactions contemplated hereby, each Holder shall execute and deliver any
additional documents and instruments and perform any additional acts that may
be necessary or appropriate to effectuate and perform the provisions of this
Agreement and those transactions.

 

12.12                 Waiver of Certain Rights.  Each Holder irrevocably waives any right it
may have to maintain any action for dissolution of the Company or for partition
of the property of the Company, for any rights of appraisal it may have under Section 18-210
of the Act, or for any rights to information from the Company provided under Section 18-305
of the Act.

 

12.13                 Notice to Members of Provisions.  By executing this Agreement, each Member
acknowledges that it has actual notice of (i) all of the provisions hereof
(including, without limitation, the restrictions on Transfer set forth in Article X)
and (ii) all of the provisions of the Certificate.

 

12.14                 Remedies.  Each Holder shall have all rights and
remedies set forth in this Agreement and all rights and remedies which such
Person has been granted at any time under any other agreement or contract and
all of the rights which such Person has under any law.  Any Person having any rights under any
provision of this Agreement or any other agreements contemplated hereby shall
be entitled to enforce such rights specifically (without posting a bond or
other security), to recover damages by reason of any breach of any provision of
this Agreement and to exercise all other rights granted by law.

 

12.15                 Severability.  Whenever possible, each provision
of this Agreement will be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement is held to
be invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or the effectiveness or validity of any
provision in any other jurisdiction, and this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein.

 

12.16                 Descriptive Headings; Interpretations. 
The descriptive headings of this Agreement are inserted for convenience
only and do not constitute a substantive part of this Agreement.  All references to Articles and Sections refer
to articles and sections of this Agreement, and all references to Schedules are
to schedules attached hereto, each of which is incorporated herein and made a
part hereof for all purposes.  Whenever
required by the context, any pronoun used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of
nouns, pronouns and verbs shall include the plural and vice versa.  The use of the word “including” in this
Agreement shall be by way of example rather than by limitation.  The use of the words “or,” “either” and “any”
shall not be exclusive.  Reference to any
agreement, document or instrument means such agreement, document or 

 

34

 

instrument as amended or
otherwise modified from time to time in accordance with the terms thereof, and
if applicable hereof.  Wherever required
by the context, references to a Fiscal Year shall refer to a portion
thereof.  The parties hereto have
participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as if
drafted jointly by the parties hereto, and no presumption or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of
any of the provisions of this Agreement. Wherever a conflict exists between
this Agreement and any other agreement, this Agreement shall control but solely
to the extent of such conflict.

 

12.17                 Creditors.  None of the provisions of this
Agreement shall be for the benefit of or enforceable by any creditors of the
Company or any of its Affiliates, and no creditor who makes a loan to the
Company or any of its Affiliates may have or acquire (except pursuant to the
terms of a separate agreement executed by the Company in favor of such
creditor) at any time as a result of making the loan any direct or indirect
interest in Company Profits, Losses, Distributions, capital or property other
than as a secured creditor.

 

12.18                 Delivery by Facsimile. 
This Agreement, the agreements referred to herein, and each other
agreement or instrument entered into in connection herewith or therewith or
contemplated hereby or thereby, and any amendments hereto or thereto, to the
extent signed and delivered by means of a facsimile machine, shall be treated
in all manner and respects as an original agreement or instrument and shall be
considered to have the same binding legal effect as if it were the original
signed version thereof delivered in person. 
At the request of any party hereto or to any such agreement or
instrument, each other party hereto or thereto shall reexecute original forms
thereof and deliver them to all other parties. 
No party hereto or to any such agreement or instrument shall raise the
use of a facsimile machine to deliver a signature or the fact that any signature
or agreement or instrument was transmitted or communicated through the use of a
facsimile machine as a defense to the formation or enforceability of a contract
and each such party forever waives any such defense.

 

12.19                 No Public Disclosure.  The
Company shall not disclose any holder of Investor Units’ name or identity as an
investor in the Company in any press release or other public announcement or in
any document or material filed with any governmental entity, without the prior
written consent of such Person, unless such disclosure is required by
applicable law or governmental regulations or by order of a court of competent
jurisdiction, in which case prior to making such disclosure the Company shall
give written notice to such Person describing in reasonable detail the proposed
content of such disclosure and shall permit such Person to review and comment
upon the form and substance of such disclosure.

 

12.20                 Survival.  All indemnities and reimbursement obligations
made pursuant to this Agreement shall survive dissolution and liquidation of
the Company until the expiration of the longest applicable statute of
limitations (including extensions and waivers) with respect to the matter for
which a party would be entitled to be indemnified or reimbursed, as the case
may be.

 

12.21                 Counterparts. 
This Agreement may be executed in multiple counterparts with the same
effect as if all signing parties had signed the same document.  All counterparts shall be construed together
and constitute the same instrument.

 

35

 

ARTICLE XIII

DEFINITIONS

 

13.1                        Definitions of Terms Not Defined in the
Text.  For purposes of this
Agreement, the following terms have the meanings set forth below with respect
thereto:

 

“Act” means the
Delaware Limited Liability Company Act, 6 Del. L. Section 18-101, et seq.,
as it may be amended from time to time, and any successor to such statute.

 

“Affiliate” shall
mean, with respect to any Person, (i) any
other Person directly or indirectly controlling, controlled by, or under common
control with, such Person, where “control” means the possession, directly or
indirectly, of the power to direct the management and policies of a Person,
whether through the ownership of voting securities, by contract, or otherwise,
and (ii) any officer, director, partner, or member thereof.

 

“Base Rate” means,
on any date, a variable rate per annum equal to the rate of interest most
recently published by The Wall Street Journal as the “prime rate” at large U.S.
money center banks.

 

“Board” means the
Board of Directors as described in Section 6.1 of this Agreement.

 

“Book Value”
means, with respect to any Company property, the Company’s adjusted basis for
federal income tax purposes, adjusted from time to time to reflect the
adjustments required or permitted by Treas.

Reg. §1.704-1(b)(2)(iv)(d)-(g).

 

“Business Day”
means any day other than a Saturday, a Sunday or a holiday on which national
banking associations in the State of New York, the State of Idaho or the State
of Delaware are closed.

 

“Capital Contribution”
means the amount of cash or cash equivalents, or the fair market value (as
determined by the Board) of any other property, that is contributed by a Holder
to the capital of the Company in respect of any Unit in accordance with the
terms of Article III of this Agreement.

 

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

 

“Common Units”
means, collectively, Series A Common Units, Series B Common Units and Series C
Common Units.

 

“Company” means
Boise Cascade Holdings, L.L.C., a Delaware limited liability company.

 

“Company Minimum Gain”
has the meaning set forth for “partnership minimum gain” in Treasury Regulation
Section 1.704-2(d).

 

36

 

“Covered Person”
means any Director, any Affiliate of the Company, and any director, officer,
manager, partner, or other principal of the Company or any of the foregoing.

 

“Directors” means
Samuel M. Mencoff, Thomas S. Souleles, Christopher J. McGowan, Zaid F. Alsikafi
and W. Thomas Stephens, who shall act as the initial Directors, and any Member
or other Person hereafter elected as a director of the Company as provided in Section 5.4
of this Agreement, but does not include any Person who has ceased to serve as a
director of the Company.

 

“Distribution”
means any distribution made by the Company to a Holder, whether in cash,
property or securities of the Company and whether by liquidating distribution
or otherwise; provided  that none of the following shall be a
Distribution: (a) any redemption or repurchase by the Company of any securities
of the Company (including Units), (b) any recapitalization or exchange of
securities of the Company, (c) any subdivision (by Unit split, pro rata Unit
dividend or otherwise) or any combination (by reverse Unit split or otherwise)
of any outstanding Units or (d) any fees or remuneration paid to any Holder in
such Holder’s capacity as an employee, officer, consultant, Director or other
provider of services to the Company.

 

“Equity Value”
means the total net pre-tax proceeds which would be received by the holders of
Units if the assets of the Company as a going concern were sold in an orderly
transaction designed to maximize the proceeds therefrom, and such proceeds were
then distributed in accordance with Section 4.2(b), after payment
of, or provision for, all Company obligations in accordance with Section 11.2,
as determined in good faith by the Board.

 

“Fiscal Year” of
the Company means the calendar year, or such other annual accounting period as
is established by the Board.

 

“FPH” means Forest
Products Holdings, L.L.C.

 

“FPH LLC Agreement”
means that certain limited liability company agreement, dated the date hereof,
relating to the affairs of FPH.

 

“FPH Management Equity
Agreement” means a “Management Equity Agreement”, as such term is defined
in the FPH LLC Agreement.

 

“FPH Management Member”
means a “Management Member” of FPH, as such term is defined in the FPH LLC
Agreement.

 

“FPH Series B Unit”
means a “Series B Common Unit” of FPH, as such term is defined in the FPH LLC
Agreement.

 

“FPH Series C Unit”
means a “Series C Common Unit” of FPH, as such term is defined in the FPH LLC
Agreement.

 

37

 

“GAAP” means U.S.
generally accepted accounting principles, consistently applied.

 

“Governmental Entity”
means the United States of America or any other nation, any state or other
political subdivision thereof, or any entity exercising executive, legislative,
judicial, regulatory or administrative functions of government.

 

“Holder” means a
holder of one or more Units as reflected on the Company’s books and records.

 

“Incapacity” or “Incapacitated”
means (a) with respect to a natural person, the bankruptcy, death, incompetency
or insanity of such person and (b) with respect to any other Person, the
bankruptcy, liquidation, dissolution or termination of such Person.

 

“Losses” for any
period means all items of Company loss, deduction and expense for such period
determined according to Section 3.2.

 

“Member” means
each of the Initial Members and any Person admitted to the Company as a
substituted Member or additional Member, but only so long as such Person is
shown on the Company’s books and records as the owner of one or more Units.

 

“Member Minimum Gain”
has the meaning set forth for “partner nonrecourse debt minimum gain” in
Treasury Regulation Section 1.704-2(i).

 

“Member Nonrecourse
Deductions” has the meaning set forth for “partner nonrecourse deductions”
in Treasury Regulation Section 1.704-2(i).

 

“Nonrecourse
Deductions” has the meaning set forth in Treasury Regulation Section 1.704-2(b)(1).

 

“Person” means a
natural person, partnership (whether general or limited), limited liability
company, trust, estate, association, corporation, custodian, nominee or any
other individual or entity in its own or any representative capacity.

 

“Profits” for any
period means all items of Company income and gain for such period determined
according to Section 3.2.

 

“Pro Rata Share”
means, for each Holder of Series A Common Units or Series B Common Units, the
quotient determined by dividing (i) the sum of the aggregate Unreturned Capital
and Unpaid Series A Yield with respect to all Series A Common Units held by
such Holder and the aggregate Unreturned Capital with respect to all Series B
Common Units held by such Holder, by (ii) the sum of the aggregate
Unreturned Capital and Unpaid Series A Yield with respect to all Series A
Common Units then outstanding and the aggregate Unreturned Capital with respect
to all Series B Common Units then outstanding.

 

“Public Offering”
means any underwritten sale of Common Units pursuant to an effective
registration statement under the Securities Act filed with the Securities and

 

38

 

Exchange Commission
on Form S-1 (or a successor form adopted by the Securities and Exchange
Commission); provided  that the following shall not be considered
a Public Offering: (i) any issuance of common equity securities as
consideration for a merger or acquisition and (ii) any issuance of common
equity securities or rights to acquire common equity securities to employees,
Directors or consultants of or to the Company or its Subsidiaries as part of an
incentive or compensation plan.

 

“Required Interest”
means a majority of the outstanding Series B Common Units.

 

“Sale of the Company”
means the bona fide arm’s length sale of the Company to a third party or group
of third parties acting in concert, in each case which party or parties is not
an Affiliate of the Company or the Initial Members, pursuant to which such
party or parties acquire (i) equity securities of the Company that, directly or
indirectly through one or more intermediaries, have more than 50% of the
ordinary voting power then outstanding to elect Directors or (ii) all or
substantially all of the Company’s assets determined on a consolidated basis
(in either case, whether by merger, consolidation, sale or transfer of the
Company’s or any Subsidiary’s equity securities, sale or transfer of the
Company’s consolidated assets, or other reorganization).

 

“Schedule of
Members” shall mean the Schedule of Members attached hereto,
which sets forth with respect to each Member the respective number and class of
Units owned by such Member and the amount of Capital Contributions made by such
Member with respect thereto.

 

“Schedule of
Officers” shall mean the Schedule of Officers attached hereto,
which sets forth the persons designated by the Manager as officers of the
Company.

 

“Securities Act”
means the Securities Act of 1933, as amended, and applicable rules and
regulations thereunder, and any successor to such statute, rules or
regulations.  Any reference herein to a
specific section, rule or regulation of the Securities Act shall be deemed to
include any corresponding provisions of future law.

 

“Securityholders
Agreement” means that certain securityholders agreement, dated the date
hereof, by and between the Initial Members.

 

“Series A Common Unit”
means a Unit representing a fractional part of the ownership of the Company and
having the rights and obligations specified with respect to Series A Common
Units in this Agreement.

 

“Series A Yield”,
with respect to each Series A Common Unit, will accrue on a daily basis at the
rate of 8% per annum on the sum of the Unreturned Capital thereof plus all
accumulated Series A Yield (as provided below) thereon, from and including the
date of issuance of such Series A Unit to and including the date on which the
Unreturned Capital of such Series A Common Unit (together with all Unpaid Series
A Yield thereon) has been reduced to zero. 
The date on which the Company initially issues any Series A Common Unit
shall be deemed to be its “date of issuance” regardless of the number of times
transfer of such Series A Common Unit is made on the records of the Company and
regardless of the number of certificates (if any) which may be issued to
evidence such

 

39

 

Series A Common
Unit.  To the extent not Distributed on
the last day of each June and December, beginning December 31, 2004
(the “Yield Reference Dates”), all Series A Yield that has accrued on each
Series A Common Unit outstanding during the six-month period (or other period
in the case of the initial Yield Reference Date) ending upon each such Yield
Reference Date shall be accumulated (and shall be referred to herein as “accumulated
Series A Yield”) and shall remain accumulated Series A Yield with respect to
such Series A Common Unit until paid.

 

“Series B Common Unit”
means a Unit representing a fractional part of the ownership of the Company and
having the rights and obligations specified with respect to Series B Common
Units in this Agreement.

 

“Series C Common Unit”
means a Unit representing a fractional part of the ownership of the Company and
having the rights and obligations specified with respect to Series C Common
Units in this Agreement.

 

“Subsidiary”
means, with respect to any Person, any corporation, limited liability company,
partnership, association or business entity of which (i) if a corporation, a
majority of the total voting power of shares of stock entitled (without regard
to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof or (ii) if a limited liability company,
partnership, association or other business entity (other than a corporation), a
majority of partnership or other similar ownership interest thereof is at the
time owned or controlled, directly or indirectly, by that Person or one or more
Subsidiaries of that Person or a combination thereof.  For purposes hereof, a Person or Persons
shall be deemed to have a majority ownership interest in a limited liability
company, partnership, association or other business entity (other than a
corporation) if such Person or Persons shall be allocated a majority of limited
liability company, partnership, association or other business entity gains or
losses or shall be or control any managing director or general partner of such
limited liability company, partnership, association or other business entity
(other than a corporation).  For purposes
hereof, references to a “Subsidiary” of any Person shall be given effect only
at such times that such Person has one or more Subsidiaries, and, unless
otherwise specified, the term “Subsidiary” refers to a Subsidiary of the
Company.

 

“Taxable Year”
means the Company’s taxable year ending December 31 (or part thereof, in
the case of the Company’s last taxable year), or such other year as is
determined by the Board in compliance with Section 706 of the Code.

 

“Units” mean
interests in the Company (including Series A Common Units, Series B Common
Units and Series C Common Units) representing the Holder’s fractional interest
in the income, gains, losses, deductions and expenses of the Company, and
having the relative rights, powers, preferences, duties, liabilities and
obligations set forth with respect thereto in this Agreement.

 

40

 

“Unpaid Series A Yield”
means, with respect to any Series A Common Unit, as of any date, an amount
equal to the excess, if any, of (a) the aggregate Series A Yield accrued on such
Series A Common Unit on or prior to such date, over (b) the aggregate amount of
prior Distributions made by the Company with respect to such Series A Unit
pursuant to Section 4.2(b)(i) that constitute payment of Series A
Yield on such Series A Common Unit.  For
purposes of clause (b) of the preceding sentence, all Distributions pursuant to
Section 4.2(b)(i) in respect of Series A Common Units shall be
deemed to be applied to repay any Unpaid Series A Yield thereon prior to any
Unreturned Capital.

 

“Unreturned Capital”
means, with respect to any Unit, an amount equal to the excess, if any, of (a)
the aggregate amount of Capital Contributions made in exchange for or on
account of such Unit, over (b) the aggregate amount of prior Distributions made
by the Company with respect to such Unit pursuant to Section 4.2(b)(i)
(and that, in the case of a Series A Common Unit, constitute payment of
Unreturned Capital on such Series A Common Unit).  For purposes of the parenthetical in the
preceding sentence, all Distributions pursuant to Section 4.2(b)(i)
in respect of Series A Common Units shall be deemed to be applied to repay any
Unpaid Series A Yield thereon prior to any Unreturned Capital.

 

13.2                        Index of Definitions Defined in
the Text.  The following terms are defined
in the text of this Agreement in the section listed opposite such term
below:

 

	
  Term

  	
   

  	
  Section

  
	
   

  	
   

  	
   

  
	
  “Agreement”

  	
   

  	
  preamble

  
	
  “Board”

  	
   

  	
  5.2(a)

  
	
  “Capital
  Account”

  	
   

  	
  3.1

  
	
  “Certificate”

  	
   

  	
  1.1

  
	
  “Confidential
  Information”

  	
   

  	
  9.4

  
	
  “Indemnifying
  Holder”

  	
   

  	
  8.3

  
	
  “Initial
  Members”

  	
   

  	
  2.2

  
	
  “Other
  Business”

  	
   

  	
  7.11(b)

  
	
  “Proceeding”

  	
   

  	
  7.3

  
	
  “Regulatory
  Allocations”

  	
   

  	
  4.4(d)

  
	
  “Reserve
  Amount”

  	
   

  	
  4.2

  
	
  “Tax Matters
  Member”

  	
   

  	
  8.2

  
	
  “Threshold
  Equity Value”

  	
   

  	
  2.3(c)

  
	
  “Transfer”

  	
   

  	
  10.1(b)

  

 

*    *    *    *    *    *

 

41

 

IN WITNESS WHEREOF, the
undersigned Member has executed this Agreement, and agreed to be bound by and
subject to all of the provisions hereof, as of this 29 day of October,
2004.

 

	
   

  	
  Name: Forest
  Products Holdings, LLC

  
	
   

  	
  c/o Madison
  Dearborn Partners, LLC

  
	
   

  	
  Address: Three
  First National Plaza, Suite 3800

  
	
   

  	
   

  	
  Chicago, IL
  60602

  
	
   

  	
  SSN/EIN:
  20-1478587

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas S.
  Souleles

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Thomas S.
  Souleles

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
  Accepted,
  acknowledged, and agreed

  to this 29 day of October, 2004.

  	
   

  
	
   

  	
   

  
	
  BOISE CASCADE
  HOLDINGS, L.L.C.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Thomas S.
  Souleles

  	
   

  	
   

  
	
   

  	
   

  
	
  Its:

  	
  Thomas S.
  Souleles 

  	
   

  
	
   

  	
  Vice President

  	
   

  
							

 

 

[Signature Page to Operating Agreement of Boise
Cascade  Holdings, L.L.C.]

 

 

SCHEDULE OF MEMBERS

 

As of September 22,
2004

 

	
  Name and Address

  	
   

  	
  Series A

  Common

  Units

  	
   

  	
  Series B

  Common

  Units

  	
   

  	
  Series C

  Common

  Units

  	
   

  	
  Capital

  Contributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forest Products Holdings, L.L.C.

  	
   

  	
  0

  	
   

  	
  10

  	
   

  	
  0

  	
   

  	
  $

  	
  100

  	
   

  
											

 

 

SCHEDULE OF MEMBERS

 

As of October 29,
2004

 

	
  Name and Address

  	
   

  	
  Series A

  Common

  Units

  	
   

  	
  Series B

  Common

  Units

  	
   

  	
  Series C

  Common

  Units

  	
   

  	
  Capital

  Contributions

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Boise Cascade
  Corporation(1)

  	
   

  	
  66,000,000

  	
   

  	
  109,000,000

  	
   

  	
  0

  	
   

  	
  $

  	
  96,428,571

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Forest Products
  Holdings, L.L.C.

  	
   

  	
  0

  	
   

  	
  440,000,000

  	
   

  	
  0

  	
   

  	
  $

  	
  242,448,980

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total:

  	
   

  	
  66,000,000

  	
   

  	
  549,000,000

  	
   

  	
  0

  	
   

  	
  $

  	
  338,877,551

  	
   

  
												

 

(1) To be renamed “OfficeMax
Incorporated” on November 1, 2004.

 

 

SCHEDULE OF
OFFICERS

 

As of September 20,
2004.

 

	
  Name

  	
   

  	
  Position

  
	
  W. Thomas
  Stephens

  	
   

  	
  President and
  CEO

  
	
  Samuel M. Mencoff

  	
   

  	
  Vice President

  
	
  Thomas S.
  Souleles

  	
   

  	
  Vice President

  
	
  Christopher J.
  McGowan

  	
   

  	
  Vice President

  
	
  Zaid Alsikafi

  	
   

  	
  Vice President

  
	
  Samuel Cotterell

  	
   

  	
  Vice President
  of Finance

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