Document:

Exhibit 10.3

 

The security represented by this instrument was originally issued on February 22,
2008, and has not been registered under the Securities Act of 1933, as
amended.  The transfer of such security
is subject only to the conditions specified in Section 7 of this
Note.

 

PROMISSORY NOTE

 

	
  February 22, 2008

  	
   

  	
  $41,000,000

  

 

For value received, Aldabra 2 Acquisition Corp., a
Delaware corporation (to be renamed Boise Inc.) (“Parent”), and each
other Person (other than any Credit Party) that is, or that may hereafter
become, a domestic Subsidiary of Parent (collectively, such Subsidiaries, the “Subsidiary
Obligors”), hereby jointly and severally promise to pay to the order of
Boise Cascade, L.L.C., a Delaware limited liability company (“BC LLC”),
or its registered assigns or transferees (as applicable), the principal amount
of $41,000,000, together with interest thereon calculated from the Effective
Date in accordance with the provisions of this Note.  Parent and the Subsidiary Obligors are
collectively referred to herein as the “Payors” and, each individually
as a “Payor”.

 

This Note was issued pursuant to Section 1F
of that certain Purchase and Sale Agreement, dated as of September 7, 2007 (and as
may be further amended, modified and/or supplemented from time to time, the “Purchase
Agreement”), by and among BC LLC, Boise Paper Holdings, L.L.C., a
Delaware limited liability company,
Parent and the other entities party thereto, and this Note is one of the “Acceptable
Notes” referred to in the Purchase Agreement.  The term “Notes”, as used in this
Note, includes (x) each Acceptable Note issued from time to time pursuant
to Section 1F of the Purchase Agreement and (y) each Note
issued in replacement of and/or to any transferee of any Note (or any portion
thereof), if any; provided that, if any time, this Note is the only “Note”
issued and outstanding, then all reference herein to “Notes” shall be deemed to
refer to this Note.  Except as
defined in Section 9 hereof or unless otherwise indicated herein,
capitalized terms used in this Note have the same meanings set forth in the
Purchase Agreement.

 

1.             Payment of
Interest.

 

(a)           Generally.  Subject to the application of a higher
interest rate pursuant to  Section 5(b)(i) hereof,
with respect to each Interest Payment Period, interest shall accrue on a daily
basis  on the unpaid principal amount of
this Note outstanding from time to time at 15.75% per annum (computed on the
basis of a 360-day year).

 

(b)           Interest
Payment Dates.  On the last day of
each Interest Payment Period, the Payors shall pay to the holder of this Note
all accrued and unpaid interest on this Note, and in connection therewith,
deliver to the holder of this Note a written notice specifying the applicable
interest rate on this Note for such period. 
“Interest Payment Period” means (i) initially, the period
commencing on the Effective Date and ending on March 31, 2008 and (ii) thereafter,
each quarterly period ending on June 30, September 30, December 31
or March 31, as applicable (each such date, an “Interest Payment Date”).

 

(c)           Accumulated
Interest and Related Matters. 
Without limiting any rights under Section 5 hereof, (i) during
the period beginning on the Effective Date and ending on the earliest of (x) the
Maturity Date and (y) the first date on which the entire unpaid principal
amount of this Note (together with all accrued and unpaid interest thereon) is
paid in full in cash to the holder of this Note (such period

 

 

beginning on the Effective Date and ending on the first to occur of the
events described in clauses (x) and (y), the “Cash Interest Deferral
Period”), all accrued interest which is not paid in cash on any Interest
Payment Date shall be accumulated and added to the principal amount outstanding
on this Note as of any such Interest Payment Date, and shall thereafter accrue
interest in accordance with Section 1(a) hereof, (ii) without
duplication of amounts under clause (i) of this Section 1(c),
any and all accrued interest which is not paid in cash on the date on which it
is due and payable shall bear interest at the same rate at which interest is
then accruing on the principal amount of this Note until such interest is paid
in cash, (iii) any accrued interest which for any reason has not
theretofore been paid shall be paid in full in cash on the date on which the
final principal payment on this Note is made, and (iv) interest shall
accrue on any principal payment due under this Note and, without duplication of
amounts under clause (i) of this Section 1(c), on any interest
which has not been paid on the date on which it is due and payable until such
time as cash payment therefor is actually delivered to the holder of this
Note.  All references to accrued but
unpaid interest in this Note shall include interest that has accumulated in
accordance with this Section 1(c) but has not been paid in
cash in accordance with this Note.

 

2.             Payments
on this Note; Related Matters.

 

(a)           Maturity.  The aggregate unpaid principal amount of this
Note plus all accrued and unpaid interest thereon and all other amounts owed
hereunder shall be paid by the Payors in full in cash on the Maturity Date.

 

(b)           Prepayments.

 

(i)            Optional.  Subject to Section 2(b)(ii) hereof,
the Payors may, at any time and from time to time without premium or penalty,
prepay all or any portion (in the case of less than 100% of the outstanding
amounts of the Notes, in whole number multiples of $100,000 only) of the
outstanding principal amount of the Notes; provided that, with respect
to any cash proceeds received by any Payor from any Credit Party pursuant to
any dividend or other distribution by such Credit Party, such cash proceeds may
not be used to prepay the Notes unless (i) such prepayment is otherwise
permitted under the 1st Lien Loan Agreement and 2nd Lien Loan Agreement, (ii) the
Loans are no longer outstanding or (iii) the applicable Payor has received
the required consents under the 1st Lien Loan Agreement and 2nd Lien Loan
Agreement to use such proceeds to prepay the Notes.  In connection with each prepayment of
principal hereunder, the Payors shall also pay all accrued and unpaid interest
on the principal amount of the Notes being repaid.  For the avoidance of doubt, a prepayment of
less than all of the outstanding principal amount of each of the Notes under
this Section 2(b)(i) shall not relieve the Payors of their
other obligations (including under Section 2(a) above and Section 2(b)(ii) below).

 

(ii)           Mandatory.

 

(A)          In
Whole.  The Payors shall prepay the
entire outstanding principal amount of this Note (plus all accrued and unpaid
interest thereon and all other amounts owed hereunder with respect thereto)
upon the consummation or occurrence of a Prepayment Event.  For purposes of the Notes, the term “Prepayment
Event” means any of the following: (i) any Change of Control (as such
term is defined in the 1st Lien Loan Agreement as in effect on the date hereof
and determined without giving effect to any waiver of compliance with and/or
other modification and/or amendment thereof); (ii) any sale or transfer of
more than 50% of the assets of Parent and its Subsidiaries on a consolidated
basis (measured by either book value in accordance with generally accepted
accounting principles consistently applied or fair market value determined in
the reasonable good faith judgment of Parent’s Board) in any transaction or
series of transactions (including any sale or other disposition of capital
stock of any of Parent’s

 

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Subsidiaries (whether by merger, consolidation or
otherwise), but excluding sales of inventory in the ordinary course of
business); (iii) upon the occurrence of any Event of Default described in Section 5(a)(iii) and
(iv) with respect to any other Event of Default, upon declaration by the
Majority Holders in accordance with Section 5(b)(iii).

 

(B)           Other.  Within ten (10) Business Days after the
receipt thereof, the Payors shall use 100% of the cash proceeds received by any
Payor and/or any Subsidiary Obligor (directly or indirectly) from (x) the
sale, issuance, exercise or transfer of any Equity Securities or Equity
Equivalents or debt securities of, and/or from the incurrence of any
Indebtedness by, any Payor and/or any of its Subsidiary Obligors and/or (y) any
cash dividends, distributions or other payments received by any Payor from any
Subsidiary Obligor or Credit Party (other than, in respect of this clause (y),
amounts to pay expenses incidental to such Payor’s or Subsidiary Obligor’s
expenses and any such amounts as are distributed from time to time to Parent to
fund Parent’s repurchases of Equity Securities or Equity Equivalents to the
extent such repurchases are permitted to be made by Parent under Section 6(c)(ii) hereof
without the consent of the Majority Holders), in each case, to repay the Notes;
provided that, with respect to any cash proceeds received by any Payor
from any Credit Party pursuant to any dividend or other distribution  by such Credit Party described in clause (y) hereof,
such cash proceeds may not be used to prepay the Notes unless (i) such
prepayment is otherwise permitted under the 1st Lien Loan Agreement and 2nd
Lien Loan Agreement, (ii) the Loans are no longer outstanding or (iii) the
applicable Payor has received the required consents under the 1st Lien Loan
Agreement and 2nd Lien Loan Agreement to use such proceeds to prepay the
Notes.  To the extent such payment is not
sufficient to pay all amounts then due and owing in respect of the Notes, any
such payment shall be made in accordance with Section 3 of the
Notes.

 

(c)           Other
Adjustments to the Notes.  In the
event that it is determined (in accordance with the terms and provisions of the
Purchase Agreement) that the Excess Amount is owed by BC LLC to Parent under Section 1E(iv) of
the Purchase Agreement, then, so long as any Notes are then outstanding and
notwithstanding any provision in the Notes or the Purchase Agreement to the
contrary, such payment to Parent of the Excess Amount shall be effected (in
full and complete satisfaction of all obligations owned by BC under the
Purchase Agreement or otherwise in respect of the Excess Amount and without
duplication) by reducing the aggregate principal amount of the Notes by an
aggregate amount equal to the Excess Amount (and the payment of all accrued and
unpaid interest since the Effective Date on such principal amount of the Notes
so reduced shall be waived), with such reduction to be applied to the Notes pro
rata based upon the aggregate unpaid principal amount of the Notes then
outstanding as of immediately prior to any such reduction.  In addition, in the event that (i) it is
determined that any portion of the Adjustment Amount is due and owing to BC LLC
under the Purchase Agreement and such portion is to be paid by Parent by
delivery to BC LLC of an Acceptable Note pursuant to Section 1F(i) of
the Purchase Agreement and (ii) BC LLC and/or Boise Cascade Holdings,
L.L.C. is the holder of this Note, then, in lieu of delivering another
Acceptable Note to such holder in respect of such payment, the aggregate unpaid
principal amount of this Note shall be increased, effective as of the Effective
Date, by an aggregate amount equal to such portion of the Adjustment Amount and
interest shall be deemed to have accrued and compounded on such additional
principal amount from and after the Effective Date, and Parent’s obligations
under the Purchase Agreement to deliver to BC LLC another Acceptable Note in
respect of such portion of the Adjustment Amount shall be deemed
satisfied.  Such reduction or increase,
as the case may be, shall occur automatically and without any further action on
the part of BC LLC, Parent and/or the holder of this Note and such reduction or
increase shall be deemed effective as of the fifth (5th) Business Day after the
Closing Purchase Price becomes final and binding on the parties to the Purchase
Agreement under Section 1E of the Purchase Agreement.  BC LLC, Parent and the holder of this Note
agree to take such action as may be reasonably requested by any of the
foregoing Persons to

 

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make reasonably
apparent to a third party that any such reduction or increase of any such
portion of this Note has been effected.

 

(d)           Schedule
of Adjustment.  The date and amount
of any reduction or increase of principal and interest on this Note pursuant to
Section 2(c) hereof shall be noted by the holder hereof on Schedule
I annexed hereto and made a part hereof; provided, however,
that the failure of the holder to make, or any error in making, any such
notation shall not limit, expand or otherwise affect the obligations of the
Payors under the Notes.

 

3.             Manner
of Payment.

 

(a)           Allocation.  Except as otherwise expressly provided
herein, each payment with respect to this Note shall first be applied to
payment of accrued and unpaid interest and, after payment of all such interest,
then to payment of outstanding principal.

 

(b)           Pro Rata Payment.  Except as otherwise expressly provided for in
the Notes, all payments to the holders of the Notes (whether for principal,
interest or other amounts thereon) shall be made pro rata among such holders based upon the aggregate unpaid
principal amount of the Notes held by each such holder.  If any holder of a Note obtains any payment
(whether voluntary, involuntary, by application of offset or otherwise) of
principal, interest or other amount with respect to any Note in excess of such
holder’s pro rata share of such
payments obtained by all holders of the Notes (other than as expressly provided
in the Notes), by acceptance of a Note, each such holder agrees to purchase
from the other holders of the Notes such participation in the Notes held by
them as is necessary to cause such holders to share the excess payment ratably
among each of them as provided in this Section 3(b).

 

4.             Guarantors.  In order to guarantee the prompt payment of
all obligations, liabilities or sums due or to become due under the Notes,
Parent and the Subsidiary Obligors shall cause each Credit Party to execute
that certain Guaranty, dated as of the Effective Date (the “Guaranty”).  In addition, in the event that any Person
hereafter becomes a Credit Party, the Payors shall cause such Person to
promptly (but in any event within five (5) days after becoming a Credit
Party) execute and deliver to the holders of the Notes a written undertaking
(in form and substance reasonably satisfactory to the Majority Holders) in
favor of the holders of the Notes pursuant to which such Person acknowledges
and agrees to be bound by the terms of the Guaranty as a guarantor thereunder.

 

5.             Events
of Default.

 

(a)           Definition.  For purposes of this Note, an “Event of
Default” shall be deemed to have occurred if any one or more of the following
conditions or events shall occur:

 

(i)            the Payors fail to
pay  in cash when due and payable
(whether at maturity or otherwise) the full amount of interest then accrued on
any Note and/or the full amount of any principal payment on any Note; provided, that any interest which is paid in kind in accordance with Section 1(c) of
any Note shall no longer be deemed to be due and payable and no Event of
Default under any such Note shall exist due to the fact that such interest is
not paid in cash at such time;

 

(ii)           any
of the Payors breach or otherwise fail to perform or observe any other
provision or agreement contained in any of the Notes or any Credit Party breaches
or otherwise fails to perform or observe any provision or agreement contained
in the Guaranty;

 

4

 

(iii)          any of the Payors or any of their respective
Material Subsidiaries makes an assignment for the benefit of creditors or
admits in writing its inability to pay its debts generally as they become due;
or an order, judgment or decree is entered adjudicating any Payor or any
Material Subsidiary of any Payor bankrupt or insolvent; or any order for relief
with respect to any Payor or any Material Subsidiary of any Payor is entered
under the Federal Bankruptcy Code; or any Payor or any Material Subsidiary of
any Payor petitions or applies to any tribunal for the appointment of a
custodian, trustee, receiver or liquidator of any Payor or any Material
Subsidiary of any Payor, or of any substantial part of the assets of any Payor
or any Material Subsidiary of any Payor, or commences any proceeding (other
than a proceeding for the voluntary liquidation and dissolution of any
Subsidiary) relating to any Payor or any Material Subsidiary of any Payor under
any bankruptcy reorganization, arrangement, insolvency, readjustment of debt,
dissolution or liquidation law of any jurisdiction; or any such petition or
application is filed, or any such proceeding is commenced, against any Payor or
any Material Subsidiary of any Payor and either (A) any Payor or any
Material Subsidiary of any Payor by any act indicates its approval thereof,
consent thereto or acquiescence therein or (B) such petition, application
or proceeding is not dismissed within 60 days;

 

(iv)          a judgment in excess of
$20,000,000 is rendered or entered against any Payor or any Subsidiary of any
Payor and, within 60 days after entry thereof, such judgment is not discharged
in full or execution thereof stayed pending appeal, or within 60 days after the
expiration of any such stay, such judgment is not discharged in full; or

 

(v)           (A) failure
of any Payor and/or any of their respective Subsidiaries (including any Credit
Party) to pay when due any principal of or premium on or interest on or any
other amount in the nature of interest payable in respect of one or more items
of Indebtedness (other than Indebtedness under the Notes) with an aggregate
principal amount of $19,837,500 or
more, in each case beyond the grace period, if any, provided therefor; or (B) breach
or default by any Payor and/or any of their respective Subsidiaries (including
any Credit Party) with respect to any other material term of any loan agreement,
mortgage, indenture or other agreement relating to one or more items of
Indebtedness in the individual or aggregate principal amounts referred to in
clause (A) above, in each case beyond the grace period, if any, provided
therefor, if the effect of such breach or default is to cause, or to permit the
holder or holders of that Indebtedness (or a trustee on behalf of such holder
or holders) to cause, that Indebtedness to become or be declared due and
payable (or redeemable) prior to its stated maturity or the stated maturity of
any underlying obligation, as the case may be; provided, that with
respect to any such failure to pay or breach or default under the 1st Lien Loan
Agreement or the 2nd Lien Loan Agreement, such event shall only constitute an
Event of Default hereunder if (1) there is an 1st Lien Event of Default
under subsection 8.1(a) of the 1st Lien Loan Agreement, (2) there is
an 2nd Lien Event of Default under subsection 8.1(a) of the 2nd Lien Loan
Agreement, (3) if the obligations under the 1st Lien Loan Agreement and/or
the 2nd Lien Loan Agreement shall have been accelerated, (4) if 180 days
have passed since the date of any 1st Lien Event of Default (other than a 1st
Lien Event of Default under subsection 8.1(a) of the 1st Lien Loan
Agreement) and such 1st Lien Event of Default has not been cured or waived
during such period or (5) if 180 days have passed since the date of any
2nd Lien Event of Default (other than a 2nd Lien Event of Default under
subsection 8.1(a) of the 2nd Lien Loan Agreement) and such 2nd Lien Event
of Default has not been cured or waived during such period.

 

The foregoing shall constitute “Events of Default”
whatever the reason or cause for any such Event of Default and whether it is
voluntary or involuntary or is effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of
any administrative or governmental body and regardless of the effects of any
subordination provisions.

 

5

 

(b)           Consequences
of Events of Default.

 

(i)            If
any Event of Default has occurred, the interest rate otherwise applicable to
the Notes under Section 1 hereof shall automatically increase
immediately by an increment of 200 basis points above the rate determined
pursuant to Section 1(a) of this Note to the extent permitted
by applicable law.  Any increase of the
interest rate resulting from the operation of this Section 5(b)(i) shall
terminate as of the close of business on the date on which no Events of Default
exist.

 

(ii)           If
an Event of Default of the type described in Section 5(a)(iii) has
occurred, the aggregate principal amount of the Notes (together with all
accrued interest thereon and all other amounts due and payable with respect
thereto) shall become immediately due and payable without any action on the
part of the holders of the Notes, and the Payors shall immediately pay to the
holders of the Notes all amounts due and payable with respect to the Notes.

 

(iii)          If any other Event of Default of the type
described in Section 5(a)(v) has occurred, the Majority
Holders may declare all or any portion of the outstanding principal amount of
the Notes (together with all accrued interest thereon and all other amounts due
and payable with respect thereto) to be immediately due and payable and may
demand immediate payment of all or any portion of the outstanding principal
amount of the Notes (together with all such other amounts then due and
payable), which declaration of payment shall be binding on all of the holders
of Notes, with any payments in connection with the declaration of a partial
repayment of the Notes to be applied in accordance with Section 3(b) of
the Notes. The Payors shall give prompt written notice of any such demand to
the other holders of Notes.

 

(iv)          If
any other Event of Default of the type described in Section 5(a)(i) has
occurred and continued for 10 days without cure or any other Event of Default
(other than an Event of Default under Section 5(a)(i), Section 5(a)(iii) or
Section 5(a)(v)) has occurred and continued for 30 days without
cure, the Majority Holders may declare all or any portion of the outstanding
principal amount of the Notes (together with all accrued interest thereon and
all other amounts due and payable with respect thereto) to be immediately due
and payable and may demand immediate payment of all or any portion of the
outstanding principal amount of the Notes (together with all such other amounts
then due and payable), which declaration of payment shall be binding on all of
the holders of Notes, with any payments in connection with the declaration of a
partial repayment of the Notes to be applied in accordance with Section 3(b) of
the Notes. The Payors shall give prompt written notice of any such demand to
the other holders of Notes.

 

(v)           Each
holder of the Notes shall also have any other rights which such holder may have
been afforded under any contract or agreement at any time and any other rights
which such holder may have pursuant to applicable law.

 

6.             Covenants.

 

(a)           Notice
of Events of Default.  Promptly (but
in any event within five days) after the discovery or receipt of notice of (x) any
Event of Default, Potential Event of Default, 1st Lien Event of Default or 2nd
Lien Event of Default or (y) the occurrence of any event or change that
has caused or results in, either in any case or in the aggregate, a Material
Adverse Effect, an Officer’s Certificate specifying the nature and period of
existence thereof and what actions Parent and its Subsidiaries have taken and
propose to take with respect thereto.

 

(b)           No
Restrictions on Transferability.  As
long as any Note is issued and outstanding, none of the Payors will take, or
cause or permit to be taken, directly or indirectly, any action, including
making or failing to make any election under the law of any state, which has
the effect,

 

6

 

directly or
indirectly, of restricting or limiting the ability of any holder of a Note
freely to sell, transfer, assign, pledge or otherwise dispose of any such Note
(and/or any portion thereof) or would restrict or limit the rights of any
transferee of any such Note (and/or any portion thereof)  as a holder of a Note.

 

(c)   Approval of Certain
Activities.  So long as any Notes
remain outstanding, none of the Payors shall, and shall not permit any their
respective Subsidiaries to, take any of the following actions without the
affirmative written consent of the Majority Holders:

 

(i)            directly or indirectly
declare or pay, or permit any Subsidiary to declare or pay, any dividends or
make any distributions upon any of its capital stock or other Equity Securities
(including any Equity Equivalents), except that (a) Parent may declare and
pay or make dividends or distributions payable in shares of Common Stock issued
ratably upon the outstanding shares of Common Stock and (b) any Subsidiary
may declare and pay dividends or make distributions to Parent or any
wholly-owned direct or indirect Subsidiary of Parent;

 

(ii)           directly or indirectly
redeem, purchase or otherwise acquire, or permit any Subsidiary to redeem,
purchase or otherwise acquire, any of Parent’s Equity Securities or Equity
Equivalents or directly or indirectly redeem, purchase or make any payments
with respect to any stock appreciation rights, phantom stock plans or similar
rights or plans, except for acquisitions of capital stock pursuant to
agreements or plans, including equity incentive agreements with service
providers, which allow Parent to repurchase shares of Common Stock upon the
termination of services or an exercise of Parent’s right of first refusal upon
a proposed transfer, in each case only so long as no Event of Default or
Potential Event of Default is in existence immediately prior to or is otherwise
caused by any such repurchase or other action;

 

(iii)          with respect
to the Payors, take any action, or permit any action to be taken, which would
be prohibited under Section 6.3 (Negative Pledges), Section 6.6
(Investments), Section 6.8 (Fundamental Changes; Disposition of Assets;
Acquisitions), Section 6.11 (Transactions with Stockholders and
Affiliates) and/or Section 6.12 (Conduct of Business) of the 1st Lien Loan
Agreement (assuming, for such purpose, that Parent and the other Subsidiary
Obligors are each a “Credit Party” thereunder and determined without giving
effect to any waiver of compliance with and/or other modification of such
terms);

 

(iv)          with respect to the
Credit Parties, create, incur, assume or suffer to exist, or permit any
Subsidiary to create, incur, assume or suffer to exist, Indebtedness, other
than such Indebtedness that is otherwise expressly permitted under the terms of
Section 6.1 of the 1st Lien Loan Agreement;

 

(v)           with respect to the
Payors, create, incur, assume or suffer to exist, or permit any Subsidiary
Obligor to create, incur, assume or suffer to exist, Indebtedness, other than (i) such
Indebtedness, the proceeds of which are used to prepay the Notes in full in
accordance with Section 2(b)(ii)(B) or (ii) to the extent
the proceeds of such Indebtedness are not used to prepay the Notes in full,
such Indebtedness is expressly subordinated to the Notes on terms reasonably
satisfactory to the Majority Holders;

 

(vi)          with
respect to the Credit Parties, create, incur, assume or suffer to exist, or permit
any Subsidiary to create, incur, assume or suffer to exist, any Liens other
than Liens that are expressly permitted under the terms of Section 6.2
of the 1st Lien Loan Agreement;

 

7

 

(vii)         with respect to the Payors, create, incur,
assume or suffer to exist, or permit any Subsidiary to create, incur, assume or
suffer to exist, any Liens other than any Liens that are expressly permitted
under the terms of Section 6.2 of the 1st Lien Loan Agreement (and
determined without giving effect to any waiver of compliance with and/or other
modification of such terms) or Liens to secure Indebtedness permitted under Section 6(c)(v) hereof;

 

(viii)        in the case of any
Subsidiary Obligor and Aldabra Holding Sub LLC, issue or sell (and Parent shall
not permit any such Person to issue and sell), any shares of the capital stock
or other Equity Securities (including any Equity Equivalents), or rights to
acquire shares of the capital stock or other Equity Securities (including any
Equity Equivalents), of any such Person to any Person other than Parent or a
wholly-owned Subsidiary Obligor of Parent;

 

(ix)           permit any Payor to
become a Credit Party and/or guarantor under the 1st Lien Loan Agreement and/or
2nd Lien Loan Agreement and/or otherwise become liable and/or responsible
(whether by contract or otherwise) thereunder for any liability or obligation
of any Credit Party thereunder; and/or

 

(x)            agree to any of the
foregoing.

 

Notwithstanding the
foregoing, no consent of the Majority Holders shall be required with respect to
any of the actions or activities set forth in clauses (iii) through (vii) and
clause (viii) (to the extent related to clauses (iii) through (vii))
at such time as BC LLC and/or its Affiliates cease to be the Majority Holders.

 

(d)           Current
Public Information.  From and after
the date hereof, Parent shall file all reports required to be filed by it under
the Securities Act and the Securities Exchange Act and the rules and
regulations adopted by the Securities and Exchange Commission thereunder and
shall provide such information (including a copy of the most recent annual or
quarterly report of Parent, and such other reports and documents so filed as a
holder may reasonably request (to the extent available) in availing itself of
any rule or regulation of the Securities and Exchange Commission allowing
a holder to sell any such securities without registration) and shall take such
further action as any holder or holders of Restricted Securities may reasonably
request, all to the extent required to enable such holders to sell Restricted
Securities pursuant to Rule 144 and Rule 144A adopted by the
Securities and Exchange Commission under the Securities Act (as such rule may
be amended from time to time) or any similar rule or regulation hereafter
adopted by the Securities and Exchange Commission.  Without limiting the generality of the
foregoing, with a view to making available the benefits of certain rules and
regulations of the Securities and Exchange Commission that may permit the
transfer or sale of the Restricted Securities (in whole or in part) to the
public without registration, Parent agrees at all times to use its reasonable
best efforts to:  (a) make and keep
public information regarding Parent available as those terms are understood and
defined in Rule 144 and Rule 144A under the Securities Act; (b) file
with the Securities and Exchange Commission in a timely manner all reports and
other documents required of Parent under the Securities Act and the Exchange
Act at any time after it has become subject to such reporting requirements; and
(c) so long as a holder holds any Restricted Securities, furnish to the
holder forthwith upon written request a written statement by Parent as to its
compliance with the reporting requirements of Rule 144 and Rule 144A.

 

7.             Transfer
of Restricted Securities.

 

(a)           General
Provisions. Restricted Securities are transferable only pursuant to (i) public
offerings registered under the Securities Act, (ii) Rule 144 or Rule 144A
of the Securities and

 

8

 

Exchange
Commission (or any similar rule or rules then in force) if such rule is
available and (iii) subject to the conditions specified in Section 7(b) below,
any other legally available means of transfer.

 

(b)           Opinion.  In connection with the transfer of any
Restricted Securities (other than a transfer described in Section 7(a)(i) or
(ii) above), the holder thereof shall deliver written notice to
Parent describing in reasonable detail the transfer or proposed transfer,
together with an opinion of counsel which (to Parent’s reasonable satisfaction)
is knowledgeable in securities law matters to the effect that such transfer of
Restricted Securities may be effected without registration of such Restricted
Securities under the Securities Act.  In
addition, if the holder of the Restricted Securities delivers to Parent an
opinion of counsel that no subsequent transfer of such Restricted Securities
shall require registration under the Securities Act, Parent shall promptly upon
such contemplated transfer deliver new certificates for such Restricted
Securities which do not bear the Securities Act legend set forth in Section 7(d).  If Parent is not required to deliver new
certificates for such Restricted Securities not bearing such legend, the holder
thereof shall not transfer the same until the prospective transferee has
confirmed to Parent in writing its agreement to be bound by the conditions
contained in this Section 7.

 

(c)           Legend
Removal.  If any Restricted
Securities cease, in accordance with the definition therewith, to be “Restricted
Securities”, Parent shall, upon the request of the holder of such Restricted
Securities, remove the legend set forth in Section 7(d) from
the certificates for such Restricted Securities.

 

(d)           Legend.  Each certificate or instrument representing
Restricted Securities shall be imprinted with a legend in substantially the
following form:

 

“The security represented by this instrument was
originally issued on February 22, 2008, and has not been registered under
the Securities Act of 1933, as amended. 
The transfer of such security is subject only to the conditions
specified in Section 7 of this Note.”

 

8.             Amendment and
Waiver.  Except as otherwise
expressly provided herein, the provisions of the Notes may be amended and the
Payors may take any action herein prohibited, or omit to perform any act herein
required to be performed by it, only if Parent has obtained the written consent
of the Majority Holders; provided that no such action shall change (i) the
rate at which or the manner in which interest accrues on the Notes or the times
at which such interest becomes payable, (ii) any provision relating to the
scheduled payments or prepayments of principal on the Notes or (iii) any
provision of this Section 8, without the written consent of the
holders at least 75% of the outstanding principal amount of the Notes.

 

9.             Definitions.  For purposes of the Notes, the following
capitalized terms have the following meaning:

 

“Affiliate” means
any Person that directly, or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with the party
specified (it being understood and agree that from and after the Closing (as
such term is defined in the Purchase Agreement), for purposes of the Notes,
none of Parent or any of its Subsidiaries shall be deemed to be an Affiliate of
BC LLC or any of its Subsidiaries or Boise Cascade Holdings, L.L.C.).

 

“Board” means (i) in
the case of a Person that is a limited liability company, the managers
authorized to act therefor (or, if the limited liability company has no
managers, the members), (ii) in the case of a Person that is a
corporation, the board of directors of such Person or any committee authorized
to act therefor, (iii) in the case of a Person that is a limited
partnership, the board of directors

9

 

of its corporate general partner (or, if the general
partner is itself a limited partnership, the board of directors of such general
partner’s corporate general partner) and (iv) in the case of any other
Person, the board of directors, management committee or similar governing body
or any authorized committee thereof responsible for the management of the
business and affairs of such Person; provided that, in each case, the “Board”
shall be deemed to include any duly authorized committee thereof that is authorized
to take the action in question.

 

“Business Day”
means any day, other than a Saturday, Sunday, or any other date in which banks
located in New York, New York or Boise, Idaho are closed for business as a
result of federal, state or local holiday.

 

“Closing” has the
meaning ascribed to such term in the Purchase Agreement.

 

“Common Stock” means (i) Parent’s Common
Stock, par value $0.0001 per share, and (ii) any common stock of Parent
(or any successor-in-interest to Parent) issued or issuable with respect to the
securities referred to in clause (i) by way of stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization

 

“Credit Party” has the meaning ascribed to such
term in the 1st Lien Loan Agreement; provided that any such Person shall
cease to be a “Credit Party” hereunder as such time as such Person ceases to be
a Credit Party under the 1st Lien Loan Agreement.

 

“Effective Date” means February 22, 2008.

 

“Equity Equivalents” means, with respect to any
Person, any securities convertible into or exchangeable for any Equity
Securities of such Person, including warrants, options and other rights to
acquire Equity Securities of such Person.

 

“Equity Securities” means, with respect to any
Person, any shares, share derivatives, share appreciation rights, or other
rights or instruments containing equity-like features or otherwise based on
changes in the enterprise value of such Person or its Affiliates and any rights
to acquire any such right or instrument.

 

“Event of Default” means each (and any) of the
conditions or events set forth in Section 5(a).

 

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

“1st Lien Event of
Default” means an Event of Default as defined in the 1st Lien Loan
Agreement.

 

“1st Lien Loan” means any Loan (as such term or
any similar term is defined in the 1st Lien Loan Agreement).

 

“1st Lien Loan Agreement” means that certain
Credit and Guaranty Agreement dated as of the date hereof, by and among Boise
Paper Holdings, L.L.C., a Delaware limited liability company, Parent Sub, the
other Subsidiaries of Parent party thereto, the lenders and agents party
thereto, Goldman Sachs Credit Partners L.P., as Joint Lead Arranger,
Administrative Agent and Collateral Agent, and Lehman Brothers Inc., as Joint
Lead Arranger, as amended, restated, supplemented, modified, replaced or
Refinanced from time to time.

 

10

 

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

 

“Indebtedness”, as applied to any Person,
means, without duplication, (i) all indebtedness for borrowed money; (ii) that
portion of obligations with respect to capital leases that is properly
classified as a capitalized liability on a balance sheet in conformity with
GAAP; (iii) notes payable and drafts accepted representing extensions of
credit whether or not representing obligations for borrowed money; (iv) any
obligation owed for all or any part of the deferred purchase price of property
or services (excluding any such obligations incurred under ERISA), including
any earn-out obligations incurred in connection with any acquisition; (v) all
indebtedness secured by any Lien on any property or asset owned or held by that
Person regardless of whether the indebtedness secured thereby shall have been
assumed by that Person or is nonrecourse to the credit of that Person; provided
that if recourse for such Indebtedness is limited to such property, the amount
of Indebtedness arising under this clause (v) shall be limited to the
lesser of (a) the outstanding principal amount thereof and (b) the
fair market value of the property subject to such Lien; (vi) the face
amount of any letter of credit issued for the account of that Person or as to
which that Person is otherwise liable for reimbursement of drawings, (viii) the
direct or indirect guaranty, endorsement (otherwise than for collection or
deposit in the ordinary course of business), co-making, discounting with
recourse or sale with recourse by such Person of Indebtedness of another; (ix) any
obligation of such Person the primary purpose or intent of which is to provide
assurance to an obligee that Indebtedness of the obligor thereof will be paid
or discharged, or any agreement relating thereto will be complied with, or the
holders thereof will be protected (in whole or in part) against loss in respect
thereof; (x) any liability of such Person for Indebtedness of another
through any agreement (contingent or otherwise) (a) to purchase,
repurchase or otherwise acquire such Indebtedness or any security therefor, or
to provide funds for the payment or discharge of such Indebtedness (whether in
the form of loans, advances, stock purchases, capital contributions or
otherwise) or (b) to maintain the solvency or any balance sheet item,
level of income or financial condition of another if, in the case of any
agreement described under subclauses (a) or (b) of this clause (x),
the primary purpose or intent thereof is as described in clause (ix) above;
and (xi) all obligations of such Person in respect of any exchange traded or
over the counter derivative transaction, whether entered into for hedging or
speculative purposes.

 

“Lien” has the meaning ascribed to such term in
the 1st Lien Loan Agreement.

 

“Loans” means, collectively, the 1st Lien Loans
and 2nd Lien Loans.

 

“Majority Holders” means, at any time, the
holders of at least a majority of the aggregate unpaid principal amounts of the
Notes then outstanding.

 

“Material Adverse Effect” means a material
adverse effect on and/or material adverse developments with respect to (i) the
business, results of operations, assets or financial condition of Parent and
its Subsidiaries taken as a whole; (ii) the ability of any Obligor to
perform any of its material obligations under the Notes; (iii) the
legality, validity, binding effect or enforceability against an Obligor of any
Note; or (iv) the rights, remedies and benefits available to, or conferred
upon, any holder of a Note under any such Note.

 

“Material Subsidiary” has the meaning ascribed
to such term in the 1st Lien Loan Agreement.

 

“Maturity Date” means August 21, 2015; provided
that, if such date is later than 181 days after the scheduled maturity of the
latest maturity date of any Indebtedness evidenced by either the 1st Lien Loan
Agreement and/or the 2nd Lien Loan Agreement (after giving effect to any
amendments,

 

11

 

supplements and/or modifications to any such agreements), then the “Maturity
Date” shall automatically be deemed to be 181 days after the scheduled maturity
of the latest maturity date of any Indebtedness evidenced by either the 1st
Lien Loan Agreement and/or the 2nd Lien Loan Agreement.

 

“Officer’s Certificate” means a certificate
signed by Parent’s chief executive officer, president or its chief financial
officer, stating that (i) the officer signing such certificate has made or
has caused to be made such investigations as are reasonably necessary in order
to permit him to verify the accuracy of the information set forth in such
certificate and (ii) to the best of such officer’s knowledge, such
certificate does not misstate any material fact and does not omit to state any
fact necessary to make the certificate not misleading.

 

“Parent Sub” means Aldabra Holding Sub LLC, a
Delaware limited liability company.

 

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

 

“Potential Event of Default” means any event or
occurrence which with the passage of time or the giving of notice or both would
constitute an Event of Default.

 

“Refinance” means, in respect of any
Indebtedness, to refinance, extend, renew, defease, amend, modify, supplement,
restructure, replace, refund or repay, or to issue other indebtedness, in
exchange or replacement for, such Indebtedness in whole or in part.  “Refinanced” and “Refinancing”
shall have correlative meanings.  All
such terms shall include any subsequent Refinancing of any Indebtedness issued
in connection with any Refinancing.  As
used in this Note or the Guaranty, section references to the 1st Lien Loan
Agreement and the 2nd Lien Loan Agreement, solely as such sections of the 1st
Lien Loan Agreement and the 2nd Lien Loan Agreement are applicable to the
Credit Parties, shall be deemed to be references to comparable sections in
agreements, documents or instruments evidencing any Refinancing thereof.

 

“Representative” means, with respect to any
Person, any of such Person’s directors, officers, employees, agents,
consultants, advisors, accountants or attorneys.

 

“Restricted Securities” means (i) this
Note and (ii) any securities issued with respect to the securities
referred to in clauses (i) in connection with a recapitalization, merger,
consolidation or other reorganization. 
As to any particular Restricted Securities, such securities shall cease to
be Restricted Securities when they have (a) been effectively registered
under the Securities Act and disposed of in accordance with the registration
statement covering them, (b) been distributed to the public through a
broker, dealer or market maker on a securities exchange or in the
over-the-counter market pursuant to Rule 144 (or any similar provision
then in force) under the Securities Act or (c) been otherwise transferred
and new certificates for them not bearing the Securities Act legend set forth in
Section 7(d) hereof have been delivered by Parent in
accordance with Section 7. 
Whenever any particular securities cease to be Restricted Securities,
the holder thereof shall be entitled to receive from Parent, without expense,
new securities of like tenor not bearing a Securities Act legend of the
character set forth in Section 7(d).

 

“2nd Lien Event of
Default” means an Event of Default as defined in the 2nd Lien Loan
Agreement.

 

12

 

“2nd Lien Loan” means any Loan (as such term or
any similar term is defined in the 2nd Lien Loan Agreement).

 

“2nd Lien Loan Agreement” means that certain
Second Lien Credit Agreement dated as of the date hereof, by and among Boise
Paper Holdings, L.L.C., a Delaware limited liability company, Parent Sub, the
other Subsidiaries of Parent party thereto, the lenders and agents party
thereto, Goldman Sachs Credit Partners L.P. and Lehman Brothers Inc. as Joint
Lead Arrangers and Lehman Commercial Paper Inc. as Administrative Agent and
Collateral Agent, as amended, restated, supplemented, modified, replaced or
Refinanced from time to time.

 

“Securities Act” means the Securities Act of
1933, as amended.

 

“Subsidiary” means, with respect to any Person,
any corporation, limited liability company, partnership, association or other
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, a majority of the partnership or other similar
ownership interest thereof is at the time owned or controlled, directly or
indirectly, by any 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 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.

 

10.           Transfers.  Parent shall maintain a register for recording
the ownership and the transfer of the Notes. 
Upon surrender of this Note for registration of transfer or for exchange
to Parent at its principal office, the Payors at their sole expense shall
execute and deliver in exchange therefor a new Note or Notes, as the case may
be, as requested by the holder or transferee, which aggregate the unpaid
principal amount of the Note(s) so transferred or exchanged, registered as
such holder or transferee(s) may request, as applicable, dated so that
there will be no loss of interest on such surrendered Note(s) and
otherwise of like tenor.  The issuance of
new Note(s) shall be made without charge to the holder(s) of the
surrendered Note for any issuance tax in respect thereof or other cost incurred
by the Payors in connection with such issuance; provided that the holder
of this Note shall pay any transfer taxes associated therewith.  The Payors shall be entitled to regard the
registered holder of this Note as the owner and holder of the Notes so
registered for all purposes until Parent is required to record a transfer of
this Note on its register.

 

11.           Replacement.  Upon receipt of evidence reasonably
satisfactory to Parent of the loss, theft, destruction or mutilation of this
Note and, in the case of any such loss, theft or destruction of this Note, upon
receipt of an indemnity reasonably satisfactory to Parent (provided that, if
the holder of this Note is a financial institution, its own unsecured agreement
shall be satisfactory) or, in the case of any such mutilation, upon the
surrender and cancellation of this Note, the Payors, at their expense, shall
execute and deliver, in lieu thereof, a new Note of like tenor and dated the
date of such lost, stolen, destroyed or mutilated Note.  Any Note in lieu of which any such new Note
has been so executed and delivered by the Payors shall not be deemed to be an
outstanding Note.

 

12.           Waivers.  The Payors hereby waives presentation for
payment, demand, notice of nonpayment and notice of protest with respect to
this Note.

 

13

 

13.           Cancellation.  After all principal and accrued interest owed
on this Note has been paid in full, this Note shall be surrendered to Parent
for cancellation and shall not be reissued.

 

14.           Form of Payments.  All
payments to be made to the holders of the Notes shall be made in the lawful
money of the United States of America in immediately available funds to an
account designated in writing by the holder to Parent, with no offsets against
or withholding from any payments due hereunder. 
Payments of principal and interest and other amounts on this Note shall
be delivered as directed by prior written notice by the holder of this Note to
Parent or, if not specified by such holder, then to such holder, at the address
of such holder as set forth on Parent’s records or at such other address as is
specified by prior written notice by such holder to Parent.

 

15.           Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Note
shall be in writing and shall be deemed to have been given (i) if
personally delivered, on the date of delivery, (ii) if delivered by
express courier service of national standing (with charges prepaid), on the
Business Day following the date of delivery to such courier service, (iii) if
deposited in the United States mail, first-class postage prepaid, on the fifth
Business Day following the date of such deposit, (iv) if delivered by
telecopy, upon confirmation of successful transmission, (x) on the date of
such transmission, if such transmission is completed at or prior to 5:00 p.m.,
local time of the recipient party on a Business Day, on the date of such
transmission, and (y) on the next day following the date of transmission,
if such transmission is completed after 5:00 p.m., local time of the
recipient party, on the date of such transmission or is transmitted on a day
that is not a Business Day, or (v) if delivered by Internet mail (with a
delivery report), provided the relevant computer record indicates a full and
successful transmission or no failure message is generated (x) on the date
of such transmission, if such transmission is completed at or prior to 5:00 p.m.,
local time of the recipient party on a Business Day, on the date of such
transmission, and (y) on the next Business Day following the date of
transmission, if such transmission is completed after 5:00 p.m., local
time of the recipient party or is transmitted on a day that is not a Business
Day.  Such notices, demands and other
communications shall be sent to the holder of this Note at the address for such
holder on Parent’s register and to the Payors at the respective addresses
indicated below, or pursuant to such other instructions as may be designated in
writing by the party to receive such notice:

 

Payors:

 

	
  Aldabra 2 Acquisition Corp. (to be renamed Boise
  Inc.)

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

  
	
  1111 West Jefferson
  Street, Suite 200

  
	
  Boise, Idaho 83702-5388

  
	
  Attention: Chief Financial
  Officer

  
	
  Telecopier: (208)
  384-4913

  
	
  Email: RobMcNutt@BoiseInc.com

  

 

with a copy to:

 

	
  Boise Paper Holdings,
  L.L.C.

  
	
  1111 West Jefferson
  Street, Suite 200

  
	
  Boise, Idaho 83702-5388

  
	
  Attention: General Counsel

  
	
  Telecopier: (208) 384-7945

  
	
  Email: Legal@BoiseInc.com

  

 

14

 

or to such other address or to the attention of such
other Person as the recipient party has specified by prior written notice to
the sending party.

 

16.           Business Days.  If any payment is due, or any time period for
giving notice or taking action expires, on a Business Day, the payment shall be
due and payable on, and the time period shall automatically be extended to, the
next Business Day, and interest shall continue to accrue in accordance with
this Note until any such payment is made.

 

17.           Survival.  All representations, warranties, covenants
and agreements of each Payor contained herein or made in writing in connection
herewith shall survive the issuance of this Note.

 

18.           Obligations.  Each of the Payors acknowledge and agree that
each of them shall be jointly and severally liable for all obligations of any
Payor hereunder.  In addition, in the
event that any Person hereafter becomes a Subsidiary of any Payor hereunder
that is organized under the laws of the State of Delaware, the Payors shall
cause such Person to promptly (but in any event within five (5) days after
becoming a Subsidiary of any such Payor) execute and deliver to the holder of
this Note a written undertaking (in form and substance reasonably satisfactory
to such holder) in favor of such holder pursuant to which such Person
acknowledges and agrees to be bound by the terms of this Note as a Payor and/or
Subsidiary Obligor (as applicable).  Each
of the Payors acknowledges and agrees that the holder of this Note shall have
the right, in addition to any other rights and
remedies existing in its favor, to enforce its rights hereunder not only by an
action or actions for damages but also by an action or actions for specific
performance, injunctive and/or other equitable relief.

 

19.           Governing
Law.  All issues and questions
concerning the construction,
validity, enforcement and
interpretation of the Notes shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the
State of Delaware.  In furtherance of the
foregoing, the internal law of
the State of Delaware shall control the interpretation and construction of this
Note, even though under that
jurisdiction’s choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily
apply.

 

20.           Usury Laws.  It is the intention of the Payors and the
holder of this Note to conform strictly to all applicable usury laws now or
hereafter in force, and any interest payable under this Note shall be subject
to reduction to the amount not in excess of the maximum legal amount allowed
under the applicable usury laws as now or hereafter construed by the courts
having jurisdiction over such matters. 
If the maturity of this Note is accelerated by reason of an election by
the holder hereof resulting from an Event of Default, voluntary prepayment by
the Payors or otherwise, then earned interest may never include more than the
maximum amount permitted by law, computed from the date hereof until payment,
and any interest in excess of the maximum amount permitted by law shall be
canceled automatically and, if theretofore paid, shall at the option of the
holder hereof either be rebated to the Payors or credited on the principal
amount of this Note, or if this Note has been paid, then the excess shall be
rebated to the Payors.  The aggregate of
all interest (whether designated as interest, service charges, points or
otherwise) contracted for, chargeable, or receivable under this Note shall
under no circumstances exceed the maximum legal rate upon the unpaid principal
balance of this Note remaining unpaid from time to time.  If such interest does exceed the maximum
legal rate, it shall be deemed a mistake and such excess shall be canceled
automatically and, if theretofore paid, rebated to the Payors or credited on
the principal amount of this Note, or if this Note has been repaid, then such
excess shall be rebated to the Payors.

 

15

 

21.           Waiver of Jury Trial. Each of
the Payors and the holder of this Note, by accepting this Note, agrees that it
hereby waives, to the fullest extent permitted by law, any right to jury trial
of any claim, demand, action, or cause of action (i) arising under this
Note or (ii) in any way connected with or related or incidental to the
dealings in respect of this Note, in each case whether now existing or
hereafter arising, and whether in contract, tort, equity, or otherwise. Each of
the Payors and the holder of this Note, by accepting this Note, hereby agrees
and consents that any such claim, demand, action, or cause of action shall be
decided by court trial without a jury and that each holder of this Note and the
Payors may file an original counterpart of a copy of this Note with any court
as written evidence of the consent of the holder of this Note or the Payors to
the waiver of the holder of this Note’s right to trial by jury.

 

22.           No Waiver.  The rights and remedies of the holder of this
Note expressly set forth in this Note are cumulative and in addition to, and
not exclusive of, all other rights and remedies available at law, in equity or
otherwise.  No failure or delay on the
part of the holder of this Note in exercising any right, power or privilege
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such right, power or privilege preclude any other or further exercise
thereof or the exercise of any other right, power or privilege or be construed
to be a waiver of any Event of Default. 
No course of dealing between any of the Payors and the holder of this
Note or their Affiliates, agents or employees shall be effective to amend,
modify or discharge any provision of this Note or to constitute a waiver of any
Event of Default.  No notice to or demand
upon any Payor in any case shall entitle any Payor to any other or further
notice or demand in similar or other circumstances or constitute a waiver of
the right of the holder of this Note to exercise any right or remedy or take
any other or further action in any circumstances without notice or demand.

 

23.   Costs. 
The Payors agree to pay all costs and expenses, including reasonable
attorneys’ fees and disbursements, costs of collection and court costs,
incurred or paid by any holder of this Note and/or any of its Affiliates in
connection with this Note.

 

24.   Assignment.  The rights and obligations of each Payor and
the holder of this Note shall be binding upon and benefit the successors and
permitted assigns and transferees of each such Payor and the holder of this
Note, except that none of the Payors may assign or transfer its rights
hereunder or any interest herein or delegate its liabilities, obligations or
duties hereunder without the prior written consent of the Majority Holders.

 

25.   Waiver of Presentment, Demand and Dishonor.  Each of the Payors hereby waives presentment
for payment, protest, demand, notice of protest, notice of nonpayment and
diligence with respect to this Note, and waives and renounces all rights to the
benefits of any statute of limitations or any moratorium, appraisement,
exemption, or homestead now provided or that hereafter may be provided by any
federal or applicable state statute, including but not limited to exemptions
provided by or allowed under the Federal Bankruptcy Code, both as to itself and
as to all of its property, whether real or personal, against the enforcement
and collection of this Note (and any and all obligations hereunder) and any and
all extensions, renewals, and modifications hereof.  In any action on this Note, the holder of
this Note need not produce or file the original of this Note, but need only
file a photocopy of this Note certified by the holder hereof to be a true and
correct copy of this Note.

 

26.   Usage. 
Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without
limitation.”  All references to “$” and
dollars shall be deemed to refer to United States currency unless otherwise
specifically provided.

 

*  *  * 
*  *

 

16

 

IN WITNESS WHEREOF, each of the Payors has executed
and delivered this Note on February 22, 2008.

 

	
   

  	
   

  	
  Aldabra 2 Acquisition
  Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  
					

 

 

SCHEDULE
I TO THE NOTE

 

	
  Date

  	
   

  	
  Aggregate

  Principal Amount

  Outstanding Pre-

  Adjustment

  	
   

  	
  Accrued
  and Unpaid

  Interest Pre-Adjustment

  (including Accumulated

  Interest per Section

  1(c))

  	
   

  	
  Aggregate
  Principal

  Amount Outstanding Post-

  Adjustment

  	
   

  	
  Accrued
  and Unpaid

  Interest Post-Adjustment

  (including Accumulated

  Interest per Section 1(c))

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-2Exhibit 10.5

 

EXECUTION VERSION

 

CREDIT AND GUARANTY AGREEMENT

 

dated as of February 22, 2008

 

among

 

ALDABRA SUB LLC

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

 

ALDABRA HOLDING SUB LLC,

 

CERTAIN SUBSIDIARIES OF ALDABRA SUB LLC,

as Guarantors,

 

VARIOUS LENDERS,

 

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Joint Lead Arranger, Joint Bookrunner,
Administrative Agent and Collateral Agent,

 

TORONTO
DOMINION (TEXAS) LLC,

as Syndication Agent,

 

BANK OF
AMERICA, N.A. and COBANK, ACB,

as
Co-Documentation Agents

 

and

 

LEHMAN
BROTHERS INC.,

as Joint
Lead Arranger and Joint Bookrunner

 

$975,000,000 Senior Secured First Priority
Credit Facilities

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  SECTION  1. DEFINITIONS AND
  INTERPRETATION

  	
  2

  
	
  1.1.

  	
   

  	
  Definitions

  	
  2

  
	
  1.2. 

  	
   

  	
  Accounting Terms

  	
  37

  
	
  1.3.

  	
   

  	
  Interpretation, etc.

  	
  37

  
	
  1.4.

  	
   

  	
  Intercreditor Agreement.

  	
  37

  
	
   

  	
   

  
	
  SECTION 2. LOANS AND LETTERS OF CREDIT

  	
  38

  
	
  2.1.

  	
   

  	
  Term Loans

  	
  38

  
	
  2.2.

  	
   

  	
  Revolving Loans

  	
  39

  
	
  2.3.

  	
   

  	
  Swing Line Loans

  	
  40

  
	
  2.4.

  	
   

  	
  Issuance of Letters of Credit and Purchase of Participations Therein

  	
  43

  
	
  2.5.

  	
   

  	
  Pro Rata Shares; Availability of Funds

  	
  47

  
	
  2.6.

  	
   

  	
  Use of Proceeds

  	
  48

  
	
  2.7.

  	
   

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

  	
  48

  
	
  2.8.

  	
   

  	
  Interest on Loans

  	
  49

  
	
  2.9.

  	
   

  	
  Conversion/Continuation

  	
  51

  
	
  2.10.

  	
   

  	
  Default Interest

  	
  52

  
	
  2.11.

  	
   

  	
  Fees

  	
  52

  
	
  2.12.

  	
   

  	
  Scheduled Payments/Commitment Reductions.

  	
  53

  
	
  2.13.

  	
   

  	
  Voluntary Prepayments/Commitment Reductions

  	
  55

  
	
  2.14.

  	
   

  	
  Mandatory Prepayments/Commitment Reductions

  	
  56

  
	
  2.15.

  	
   

  	
  Application of Prepayments/Reductions

  	
  58

  
	
  2.16.

  	
   

  	
  General Provisions Regarding Payments

  	
  60

  
	
  2.17.

  	
   

  	
  Ratable Sharing

  	
  61

  
	
  2.18.

  	
   

  	
  Making or Maintaining Eurodollar Rate Loans

  	
  61

  
	
  2.19.

  	
   

  	
  Increased Costs; Capital Adequacy

  	
  63

  
	
  2.20.

  	
   

  	
  Taxes; Withholding, etc.

  	
  65

  
	
  2.21.

  	
   

  	
  Obligation to Mitigate

  	
  67

  
	
  2.22.

  	
   

  	
  Defaulting Lenders

  	
  68

  
	
  2.23.

  	
   

  	
  Removal or Replacement of a Lender

  	
  69

  
	
   

  	
   

  
	
  SECTION 3. CONDITIONS PRECEDENT

  	
  70

  
	
  3.1.

  	
   

  	
  Closing Date

  	
  70

  
	
  3.2.

  	
   

  	
  Conditions to Each Credit Extension

  	
  75

  
	
   

  	
   

  
	
  SECTION 4. REPRESENTATIONS AND
  WARRANTIES

  	
  76

  
	
  4.1.

  	
   

  	
  Organization; Requisite Power and Authority; Qualification.

  	
  76

  
	
  4.2.

  	
   

  	
  Equity Interests and Ownership

  	
  76

  
	
  4.3.

  	
   

  	
  Due Authorization

  	
  77

  
	
  4.4.

  	
   

  	
  No Conflict

  	
  77

  
	
  4.5.

  	
   

  	
  Governmental Consents

  	
  77

  
	
  4.6.

  	
   

  	
  Binding Obligation

  	
  77

  
	
  4.7.

  	
   

  	
  Historical Financial Statements

  	
  78

  
	
  4.8.

  	
   

  	
  Projections

  	
  78

  

 

ii

 

	
  4.9.

  	
   

  	
  No Material Adverse Change

  	
  78

  
	
  4.10.

  	
   

  	
  Reserved

  	
  78

  
	
  4.11.

  	
   

  	
  Adverse Proceedings, etc.

  	
  78

  
	
  4.12.

  	
   

  	
  Payment of Taxes.

  	
  78

  
	
  4.13.

  	
   

  	
  Properties

  	
  79

  
	
  4.14.

  	
   

  	
  Environmental Matters

  	
  79

  
	
  4.15.

  	
   

  	
  No Defaults

  	
  80

  
	
  4.16.

  	
   

  	
  Material Contracts

  	
  80

  
	
  4.17.

  	
   

  	
  Governmental Regulation

  	
  80

  
	
  4.18.

  	
   

  	
  Margin Stock

  	
  80

  
	
  4.19.

  	
   

  	
  Employee Matters

  	
  80

  
	
  4.20.

  	
   

  	
  Employee Benefit Plans

  	
  81

  
	
  4.21.

  	
   

  	
  Certain Fees

  	
  81

  
	
  4.22.

  	
   

  	
  Solvency

  	
  82

  
	
  4.23.

  	
   

  	
  Related Agreements

  	
  82

  
	
  4.24.

  	
   

  	
  Compliance with Statutes, etc.

  	
  82

  
	
  4.25.

  	
   

  	
  Disclosure

  	
  82

  
	
  4.26.

  	
   

  	
  Patriot Act

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5. AFFIRMATIVE COVENANTS

  	
  83

  
	
  5.1.

  	
   

  	
  Financial Statements and Other Reports

  	
  83

  
	
  5.2.

  	
   

  	
  Existence

  	
  86

  
	
  5.3.

  	
   

  	
  Payment of Taxes and Claims

  	
  87

  
	
  5.4.

  	
   

  	
  Maintenance of Properties

  	
  87

  
	
  5.5.

  	
   

  	
  Insurance

  	
  87

  
	
  5.6.

  	
   

  	
  Books and Records; Inspections

  	
  88

  
	
  5.7.

  	
   

  	
  Lenders Meetings

  	
  88

  
	
  5.8.

  	
   

  	
  Compliance with Laws

  	
  88

  
	
  5.9.

  	
   

  	
  Environmental

  	
  88

  
	
  5.10.

  	
   

  	
  Subsidiaries

  	
  90

  
	
  5.11.

  	
   

  	
  Additional Material Real Estate Assets

  	
  90

  
	
  5.12.

  	
   

  	
  Interest Rate Protection

  	
  91

  
	
  5.13.

  	
   

  	
  Further Assurances

  	
  91

  
	
  5.14.

  	
   

  	
  Miscellaneous Covenants

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6. NEGATIVE COVENANTS

  	
  92

  
	
  6.1.

  	
   

  	
  Indebtedness

  	
  92

  
	
  6.2.

  	
   

  	
  Liens

  	
  95

  
	
  6.3.

  	
   

  	
  No Further Negative Pledges

  	
  97

  
	
  6.4.

  	
   

  	
  Restricted Junior Payments

  	
  97

  
	
  6.5.

  	
   

  	
  Restrictions on Subsidiary Distributions

  	
  99

  
	
  6.6.

  	
   

  	
  Investments

  	
  100

  
	
  6.7.

  	
   

  	
  Financial Covenants

  	
  101

  
	
  6.8.

  	
   

  	
  Fundamental Changes; Disposition of Assets; Acquisitions

  	
  103

  
	
  6.9.

  	
   

  	
  Disposal of Subsidiary Interests

  	
  104

  
	
  6.10.

  	
   

  	
  Sales and Lease-Backs

  	
  104

  
	
  6.11.

  	
   

  	
  Transactions with Shareholders and Affiliates.

  	
  105

  

 

iii

 

	
  6.12.

  	
   

  	
  Conduct of Business

  	
  105

  
	
  6.13.

  	
   

  	
  Permitted Activities of Holdings

  	
  105

  
	
  6.14.

  	
   

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

  	
  106

  
	
  6.15.

  	
   

  	
  Amendments or Waivers with respect to
  Second Lien Credit Agreement

  	
  106

  
	
  6.16.

  	
   

  	
  Fiscal Year

  	
  106

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.
  GUARANTY 

  	
  106

  
	
  7.1.

  	
   

  	
  Guaranty of the Obligations

  	
  106

  
	
  7.2.

  	
   

  	
  Contribution by Guarantors

  	
  107

  
	
  7.3.

  	
   

  	
  Payment by Guarantors

  	
  107

  
	
  7.4.

  	
   

  	
  Liability of Guarantors Absolute

  	
  108

  
	
  7.5.

  	
   

  	
  Waivers by Guarantors

  	
  110

  
	
  7.6.

  	
   

  	
  Guarantors’ Rights of Subrogation,
  Contribution, etc.

  	
  110

  
	
  7.7.

  	
   

  	
  Subordination of Other Obligations

  	
  111

  
	
  7.8

  	
   

  	
  Continuing Guaranty

  	
  111

  
	
  7.9

  	
   

  	
  Authority of Guarantors or Borrower

  	
  112

  
	
  7.10.

  	
   

  	
  Financial Condition of Borrower

  	
  112

  
	
  7.11.

  	
   

  	
  Bankruptcy, etc.

  	
  112

  
	
  7.12.

  	
   

  	
  Discharge of Guaranty Upon Sale of
  Guarantor

  	
  113

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.
  EVENTS OF DEFAULT

  	
  113

  
	
  8.1.

  	
   

  	
  Events of Default

  	
  113

  
	
   

  	
   

  	
   

  
	
  SECTION 9.
  AGENTS

  	
  116

  
	
  9.1.

  	
   

  	
  Appointment of Agents.

  	
  116

  
	
  9.2.

  	
   

  	
  Powers and Duties

  	
  116

  
	
  9.3.

  	
   

  	
  General Immunity

  	
  117

  
	
  9.4.

  	
   

  	
  Agents Entitled to Act as Lender

  	
  118

  
	
  9.5.

  	
   

  	
  Lenders’ Representations, Warranties and
  Acknowledgment

  	
  118

  
	
  9.6.

  	
   

  	
  Right to Indemnity

  	
  119

  
	
  9.7.

  	
   

  	
  Successor Administrative Agent, Collateral
  Agent and Committed Swing Line Lender

  	
  119

  
	
  9.8.

  	
   

  	
  Collateral Documents and Guaranty

  	
  120

  
	
  9.9.

  	
   

  	
  Withholding Taxes

  	
  121

  
	
   

  	
   

  	
   

  
	
  SECTION 10.
  MISCELLANEOUS

  	
  121

  
	
  10.1.

  	
   

  	
  Notices

  	
  121

  
	
  10.2.

  	
   

  	
  Expenses

  	
  123

  
	
  10.3.

  	
   

  	
  Indemnity

  	
  124

  
	
  10.4.

  	
   

  	
  Set-Off

  	
  124

  
	
  10.5.

  	
   

  	
  Amendments and Waivers

  	
  125

  
	
  10.6.

  	
   

  	
  Successors and Assigns; Participations

  	
  127

  
	
  10.7.

  	
   

  	
  Independence of Covenants

  	
  131

  
	
  10.8.

  	
   

  	
  Survival of Representations, Warranties and
  Agreements

  	
  131

  
	
  10.9.

  	
   

  	
  No Waiver; Remedies Cumulative

  	
  131

  
					

 

iv

 

	
  10.10.

  	
   

  	
  Marshalling; Payments Set Aside

  	
  132

  
	
  10.11.

  	
   

  	
  Severability

  	
  132

  
	
  10.12.

  	
   

  	
  Obligations Several; Independent Nature of
  Lenders’ Rights

  	
  132

  
	
  10.13.

  	
   

  	
  Headings

  	
  132

  
	
  10.14.

  	
   

  	
  APPLICABLE LAW

  	
  132

  
	
  10.15.

  	
   

  	
  CONSENT TO JURISDICTION

  	
  132

  
	
  10.16.

  	
   

  	
  WAIVER OF JURY TRIAL

  	
  133

  
	
  10.17.

  	
   

  	
  Confidentiality

  	
  133

  
	
  10.18.

  	
   

  	
  Usury Savings Clause

  	
  134

  
	
  10.19.

  	
   

  	
  Counterparts

  	
  135

  
	
  10.20.

  	
   

  	
  Effectiveness; Entire Agreement

  	
  135

  
	
  10.21.

  	
   

  	
  Patriot Act

  	
  135

  
	
  10.22.

  	
   

  	
  Electronic Execution of Assignments

  	
  135

  
	
  10.23.

  	
   

  	
  No Fiduciary Duty

  	
  135

  

 

v

 

	
  APPENDICES:

  	
  A-1

  	
  Tranche A Term
  Loan Commitments

  
	
   

  	
  A-2

  	
  Tranche B Term Loan Commitments

  
	
   

  	
  A-3

  	
  Revolving Commitments

  
	
   

  	
  B

  	
  Notice Addresses

  
	
   

  	
   

  	
   

  
	
  SCHEDULES:

  	
  3.1(h)

  	
  Closing Date
  Mortgaged Properties

  
	
   

  	
  3.1(h)(vi)

  	
  Surveys

  
	
   

  	
  4.1

  	
  Jurisdictions of Organization and Qualification

  
	
   

  	
  4.2

  	
  Equity Interests and Ownership

  
	
   

  	
  4.13(a)

  	
  Real Estate Assets Under Sale Contracts

  
	
   

  	
  4.13(b)

  	
  Real Estate Assets

  
	
   

  	
  4.16

  	
  Material Contracts

  
	
   

  	
  4.21

  	
  Certain Fees

  
	
   

  	
  6.1

  	
  Certain Indebtedness

  
	
   

  	
  6.2

  	
  Certain Liens

  
	
   

  	
  6.3

  	
  Negative Pledges

  
	
   

  	
  6.5

  	
  Certain Restrictions on
  Subsidiary Distributions

  
	
   

  	
  6.6

  	
  Certain Investments

  
	
   

  	
  6.11

  	
  Certain Affiliate Transactions

  
	
   

  	
   

  	
   

  
	
  EXHIBITS:

  	
  A-1

  	
  Funding Notice

  
	
   

  	
  A-2

  	
  Conversion/Continuation Notice

  
	
   

  	
  A-3

  	
  Issuance Notice

  
	
   

  	
  B-1

  	
  Tranche A Term Loan Note

  
	
   

  	
  B-2

  	
  Tranche B Term Loan Note

  
	
   

  	
  B-3

  	
  Revolving Loan Note

  
	
   

  	
  B-4

  	
  Swing Line Note

  
	
   

  	
  C

  	
  Compliance Certificate

  
	
   

  	
  D

  	
  Reserved

  
	
   

  	
  E

  	
  Assignment Agreement

  
	
   

  	
  F

  	
  Certificate re Non-Bank Status

  
	
   

  	
  G-1

  	
  Closing Date Certificate

  
	
   

  	
  G-2

  	
  Solvency Certificate

  
	
   

  	
  H

  	
  Counterpart Agreement

  
	
   

  	
  I

  	
  Pledge and Security Agreement

  
	
   

  	
  J

  	
  Mortgage

  
	
   

  	
  K

  	
  Landlord Waiver and Consent Agreement

  
	
   

  	
  L

  	
  Intercompany Note

  
	
   

  	
  M

  	
  Intercreditor Agreement

  

 

vi

 

CREDIT AND GUARANTY AGREEMENT

 

This CREDIT AND GUARANTY AGREEMENT, dated as of February 22,
2008, is entered into by and among ALDABRA SUB LLC,
a Delaware limited liability company (“Aldabra” and, prior to the BPH Merger (as defined
below), the “Borrower”), to
be merged with and into BOISE PAPER HOLDINGS,
L.L.C., a Delaware limited liability company (“BPH”
and, after the BPH Merger, the “Borrower”), ALDABRA HOLDING SUB LLC, a Delaware limited liability
company (“Holdings”), CERTAIN SUBSIDIARIES OF ALDABRA, as
Guarantors, the Lenders party hereto from time to time, GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”), as Administrative Agent (together
with its permitted successors in such capacity, “Administrative Agent”), and Collateral Agent (together with
its permitted successors in such capacity, “Collateral
Agent”), TORONTO DOMINION (TEXAS)
LLC (“TD”), as Syndication Agent
(together with its permitted successors in such capacity, “Syndication Agent”), BANK OF
AMERICA, N.A. (“Bank of America”)
and COBANK, ACB, as Co-Documentation Agents
(together with their permitted successors in such capacity, “Co-Documentation Agents”).

 

RECITALS:

 

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

 

WHEREAS, Lenders
have agreed to extend certain credit facilities to Borrower, in an aggregate
amount not to exceed $975,000,000, consisting of $250,000,000 aggregate
principal amount of Tranche A Term Loans, $475,000,000 aggregate principal
amount of Tranche B Term Loans, and $250,000,000 aggregate principal
amount of Revolving Commitments, with the proceeds of the Term Loans being used
to fund (a) in part, the acquisition (the “Acquisition”)
of BPH (together with its Subsidiaries, the “Acquired
Business”) pursuant to the Acquisition Agreement, including the
refinancing or retiring of certain existing Indebtedness for borrowed money of
the Acquired Business, and (b) the payment of fees, commissions and
expenses in connection therewith and in connection with the financing of the
foregoing, including fees under Section 2.11(d).  The proceeds of the Revolving Commitments
shall be used to fund (i) in part, the Acquisition, (ii) permitted
capital expenditures and Permitted Acquisitions, (iii) the ongoing
working capital requirements of Borrower and its Subsidiaries on the Closing
Date and after the Acquisition, (iv) the general corporate purposes of
Borrower and its Subsidiaries and (v) fees under Section 2.11(d);

 

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

 

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

 

 

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

 

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

 

SECTION 1.   DEFINITIONS AND INTERPRETATION

 

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

 

“Acquired Business” as defined in the recitals hereof.

 

“Acquisition” as defined in the recitals hereof.

 

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

 

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

 

“Adjusted Eurodollar Rate”
means, for any Interest Rate Determination Date with respect to an Interest
Period for a Eurodollar Rate Loan, the rate per annum obtained by dividing (and
rounding upward to the next whole multiple of 1/16 of 1%) (i) (a) the
rate per annum (rounded to the nearest 1/100 of 1%) equal to the rate
determined by Administrative Agent to be the offered rate which appears on the page of
the Reuters Screen which displays an

 

2

 

average British Bankers Association Interest Settlement Rate (such page currently
being LIBOR01 page) for deposits (for delivery on the first day of such period)
with a term equivalent to such period in Dollars, determined as of
approximately 11:00 a.m. (London, England time) on such Interest Rate
Determination Date, or (b) in the event the rate referenced in the
preceding clause (a) does not appear on such page or service or if
such page or service shall cease to be available, the rate per annum
(rounded to the nearest 1/100 of 1%) equal to the rate determined by
Administrative Agent to be the offered rate on such other page or other
service which displays an average British Bankers Association Interest Settlement
Rate for deposits (for delivery on the first day of such period) with a term
equivalent to such period in Dollars, determined as of approximately 11:00 a.m.
(London, England time) on such Interest Rate Determination Date, or (c) in
the event the rates referenced in the preceding clauses (a) and (b) are
not available, the rate per annum (rounded to the nearest 1/100 of 1%) equal to
the offered quotation rate to first class banks in the London interbank market
by JPMorgan Chase Bank, N.A. for deposits (for delivery on the first day of the
relevant period) in Dollars of amounts in same day funds comparable to the
principal amount of the applicable Loan of Administrative Agent, in its
capacity as a Lender, for which the Adjusted Eurodollar Rate is then being
determined with maturities comparable to such period as of approximately 11:00 a.m.
(London, England time) on such Interest Rate Determination Date, by (ii) an
amount equal to (a) one minus (b) the Applicable Reserve
Requirement.  In no event shall the rate
per annum determined pursuant to clause (i)(a), (b) or (c) above with
respect to any Tranche B Term Loans be less than 4.00%.

 

“Administrative Agent”
as defined in the preamble hereto.

 

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

 

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

 

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

 

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

 

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

 

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

 

“Aggregate Amounts Due”
as defined in Section 2.17.

 

3

 

“Aggregate Payments”
as defined in Section 7.2.

 

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

 

“Aldabra” as
defined in the preamble hereto.

 

“Applicable Margin’’
and “Applicable Revolving Commitment Fee
Percentage’’ mean (i) with respect to Tranche A Term Loans
and Revolving Loans that are Eurodollar Rate Loans and the Applicable Revolving
Commitment Fee Percentage, (a) from the Closing Date until the date of
delivery of the Compliance Certificate and the financial statements for the
period ending June 30, 2008, a percentage, per annum, determined by
reference to the following table as if the Leverage Ratio then in effect were
3.00:1.00; and (b) thereafter, a percentage, per annum, determined by
reference to the Leverage Ratio in effect from time to time as set forth below:

 

	
  Category

  	
   

  	
  Leverage

  Ratio

  	
   

  	
  Applicable Margin for

  Tranche A Term

  Loans and Revolving

  Loans

  	
   

  	
  Applicable Revolving

  Commitment Fee

  Percentage

  	
   

  
	
  Category I

  	
   

  	
  >
  3.00:1.00

  	
   

  	
  3.25

  	
  %

  	
  0.50

  	
  %

  
	
  Category II

  	
   

  	
  < 3.00:1.00 >
  2.25:1.00

  	
   

  	
  3.00

  	
  %

  	
  0.50

  	
  %

  
	
  Category III

  	
   

  	
  < 2.25:1.00

  	
   

  	
  2.75

  	
  %

  	
  0.375

  	
  %

  

 

and (ii) with respect to Committed Swing Line
Loans and Tranche A Term Loans and Revolving Loans that are Base Rate
Loans, an amount equal to (a) the Applicable Margin for Eurodollar Rate
Loans as set forth in clause (i)(a) or (i)(b) above, as applicable, minus
(b) 1.00% per annum.  No change in
the Applicable Margin or the Applicable Revolving Commitment Fee Percentage
shall be effective until two Business Days after the date on which
Administrative Agent shall have received the applicable financial statements
and a Compliance Certificate pursuant to Section 5.1(d) calculating
the Leverage Ratio.  At any time Borrower
has not submitted to Administrative Agent the applicable information as and
when required under Section 5.1(d), the Applicable Margin and the
Applicable Revolving Commitment Fee Percentage shall be determined as if the
Leverage Ratio were in a Category one level higher than the Category in effect
during the immediately preceding Fiscal Quarter; provided, that upon
delivery of such information, if the Leverage Ratio for such Fiscal Quarter is
in a Category two levels higher than the Category in effect during the
immediately preceding Fiscal Quarter, the Applicable Margin and the Applicable
Revolving Commitment Fee Percentage shall be determined, on a retroactive basis
commencing on the date on which the Compliance Certificate was required to be
delivered, based upon the actual Leverage Ratio.  Within one Business Day of receipt of the
applicable information under Section 5.1(d), Administrative Agent shall
give each Lender telefacsimile or telephonic notice (confirmed in writing) of
the Applicable Margin and the Applicable Revolving 

Commitment Fee Percentage in effect from such
date.  In the event that any financial
statement or certificate delivered pursuant to Section 5.1 is shown to be
inaccurate (at a time when this

 

4

 

Agreement is in effect and unpaid Obligations under this Agreement are
outstanding (other than indemnities and other contingent obligations not yet
due and payable)), and such inaccuracy, if corrected, would have led to the
application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for
such Applicable Period, then (x) Borrower shall immediately deliver to
Administrative Agent a correct certificate required by Section 5.1 for
such Applicable Period, (ii) the Applicable Margin shall be determined by
reference to the actual Leverage Ratio for the Applicable Period and (iii) Borrower
shall immediately pay to Administrative Agent the accrued additional interest
owing as a result of such increased Applicable Margin for such Applicable
Period.  Nothing in this paragraph shall
limit the right of Administrative Agent or any Lender under Section 2.10
or Section 8.

 

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

 

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

 

“Arrangers” means GSCP and
Lehman Brothers.

 

“Asset Sale” means
a sale, lease or sub-lease (as lessor or sublessor), sale and leaseback,
assignment, conveyance, Exclusive IP License (as licensor or sublicensor),
transfer or other disposition to, or any exchange of property with, any Person
(other than Borrower or any Guarantor Subsidiary), in one transaction or a
series of transactions, of all or any part of Holdings’ or any of its
Subsidiaries’ businesses, assets or properties of any kind, whether real,
personal, or mixed and whether tangible or intangible, whether now owned or
hereafter acquired, leased or licensed, including the Equity Interests of any
of Holdings’ Subsidiaries, other than (i) inventory (or other assets)
sold, leased or licensed out in the ordinary course of business (excluding any
such sales, leases or licenses out by operations or divisions discontinued or
to be discontinued), (ii) Cash or Cash Equivalents used in the ordinary
course of business, (iii) transactions permitted by Section 6.4 (to
the extent such Restricted Junior Payment involves a sale, transfer or
disposition of assets) or Section 6.6 (to the extent such Investment
involves a

 

5

 

sale, transfer or disposition of assets), (iv) Permitted Operating
Asset Swaps, (v) the disposal or abandonment of property no longer used or
useful in the business of any Credit Party in an amount for any transaction or
related series of transactions less than $100,000, (vi) sales, discounting
or forgiveness of accounts receivables in connection with the collection or
compromise thereof, (vii) the granting of Liens permitted by Section 6.2,
(viii) transfers of property subject to casualty or condemnation
proceedings (including in lieu thereof) upon the receipt of the Net
Insurance/Condemnation Proceeds therefor, provided, that the Credit
Parties shall comply with this Agreement with respect to the application of
such Net Insurance/Condemnation Proceeds, (ix) voluntary terminations of
Hedge Agreements, (x) licensing of Intellectual Property granted by
Holdings or any of its Subsidiaries in the ordinary course of business, or not
interfering in any respect with the ordinary conduct of, or not materially
detracting from the value of, the business of the Borrower or such Subsidiary,
and (xi) sales, leases or licenses out of other assets for aggregate
consideration of less than $1,000,000 with respect to any transaction or series
of related transactions and less than $5,000,000 in the aggregate during any
Fiscal Year.

 

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

 

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

 

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

 

“Bank of America”
as defined in the preamble hereto.

 

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

 

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

 

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

 

“Beneficiary” means
each Agent, Issuing Bank, Lender and Lender Counterparty.

 

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

 

6

 

“Borrower” as
defined in the preamble hereto.

 

“BPH” as defined in the preamble
hereto.

 

“BPH Merger” as defined in the
recitals hereof.

 

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

 

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

 

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

 

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

 

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

 

“Change of Control”
means (i) any Person or “group” (within the meaning of Rules 13d-3
and 13d-5 under the Exchange Act) other than the Permitted Investors (x) shall have

 

7

 

obtained the power (whether or not exercised) to vote a majority of the
shares eligible to vote for the election of the members of the board of
directors (or similar governing body) of Parent or (y) (a) shall have
acquired beneficial ownership of 35% or more on a fully diluted basis of the
voting and/or economic interest in the Equity Interests of Parent and (b) shall
have acquired beneficial ownership of the voting and/or economic interests in
the Equity Interests of Parent on a fully-diluted basis that is greater than
the percentage of the voting and/or economic interests in the Equity Interests
of Parent on a fully-diluted basis then held by the Permitted Investors; (ii) at
any time, Parent shall cease to beneficially own and control, directly or
indirectly, 100% on a fully diluted basis of the economic and voting interest
in the Equity Interests of Borrower; (iii) the majority of the seats
(other than vacant seats) on the board of directors (or similar governing body)
of Parent cease to be occupied by Persons who either (a) were members of
the board of directors of Parent on the Closing Date or (b) were nominated
for election or appointed by the board of directors of Parent, a majority of
whom were directors on the Closing Date or whose election, nomination for
election or appointment was previously approved by a majority of such
directors; or (iv) any “change of control” or similar event under the
Second Lien Credit Agreement shall occur.

 

“Class” means (i) with
respect to Lenders, each of the following classes of Lenders: (a) Lenders
having Tranche A Term Loan Exposure, (b) Lenders having
Tranche B Term Loan Exposure, and (c) Lenders having Revolving
Exposure (including Swing Line Lender) and (ii) with respect to Loans,
each of the following classes of Loans: (a) Tranche A Term Loans, (b) Tranche B
Term Loans, and (c) Revolving Loans (including Swing Line Loans).

 

“Closing Date”
means February 22, 2008.

 

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

 

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

 

“Co-Documentation Agents”
as defined in the preamble hereto.

 

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

 

“Collateral Agent” as
defined in the preamble hereto.

 

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

 

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

 

8

 

“Commitment” means
any Revolving Commitment or Term Loan Commitment.

 

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

 

“Committed Swing Line
Lender” means Bank of America in its capacity as Committed Swing
Line Lender hereunder, together with its permitted successors and assigns in
such capacity.

 

“Committed Swing Line Loan” means
a Loan made by a Committed Swing Line Lender to Borrower pursuant to Section 2.3(a).

 

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

 

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

 

“Consolidated Adjusted EBITDA”
means, for any period, an amount determined for Holdings and its Subsidiaries
on a consolidated basis equal to (i) Consolidated Net Income, plus,
except in the case of clauses (s) and (t) below, to the extent
reducing Consolidated Net Income, the sum, without duplication, of amounts for (a) consolidated
interest expense (net of total interest income), (b) provisions for taxes
based on income, (c) total depreciation and depletion expense, (d) total
amortization expense, (e) lost contribution and incremental costs
associated with Wallula 30 day downtime due to the W-3 conversion in excess of
costs normally incurred during prior periods that include cold outages in an
amount not to exceed $4,000,000, (f) costs associated with the closure and
sale of Jackson Sawmill and the Vancouver and Salem converting facilities in an
amount not to exceed $6,100,000, (g) cost savings resulting from the CTC
acquisition relating to the elimination of the negative impact associated with
a contractual commitment to buy liner and medium from a third party supplier
that was previously in place in an amount not to exceed $300,000, (h) costs
relating to out of the money gas hedges based upon a historical policy of
entering into fixed rate gas hedges in an amount not to exceed $16,800,000, (i) cost
savings relating to the Wallula Hog Fuel Boiler capital project in the event it
is operational as of the Closing Date in an amount not to exceed $2,600,000, (j) costs
and lost revenue associated with the cold outage of the recovery boiler at the
DeRidder Mill,  (k) Transaction Costs, (l) severance
costs, facility closure and related restructuring costs incurred within 18
months of the Closing Date, in an aggregate amount for all periods not to
exceed $10,000,000, (m) any non-recurring costs and expenses related to (1) any
public or private offering of Equity Interests of Holdings or Borrower, (2) any
investment or acquisition permitted by Section 6.6 or (3) recapitalizations
or Indebtedness permitted by Section 6.1, (n) any unrealized
Statement of Financial Accounting Standards No. 133 loss in respect of any
Hedge Agreement, (o) any non-cash losses attributable to the early
extinguishment of Indebtedness, (p) unusual or non-recurring non-cash
losses, (q) other non-cash charges reducing

 

9

 

Consolidated Net Income (excluding any such non-cash charge to the
extent that it represents an accrual or reserve for potential cash charge in
any future period or amortization of a prepaid cash charge that was paid in a
prior period), (r) to the extent covered by insurance and actually
reimbursed or otherwise paid, or so long as the Borrower has made a
determination that there exists reasonable evidence that such amount will in
fact be reimbursed or otherwise paid by the insurer within 12 months of the
applicable liability or casualty event or incurrence of expenses or losses
relating to business interruption, expenses with respect to liability or
casualty events and expenses or losses relating to business interruption, (s) expenses
to the extent covered by contractual indemnification or refunding provisions in
favor of Holdings or one of its Subsidiaries and actually paid or refunded, or,
such expenses so long as Holdings or the Borrower has made a determination that
there exists reasonable evidence that such amount will in fact be paid or
refunded by the indemnifying party or other obligor within 12 months of the
event resulting in such indemnification or refund; (t) all costs, fees,
expenses and any one time payments made related to any Permitted Acquisitions
and (u) all non-cash
losses resulting from any purchase accounting adjustments, amortization,
write-up, write-down or write-off of assets (including intangible assets,
goodwill and deferred financing costs) in connection with the Acquisition and
related transactions thereto, any Permitted Acquisition or any merger,
consolidation or similar transaction not prohibited by this Agreement, minus
(ii) (a) any unrealized Statement of Financial Accounting Standards No. 133
gain in respect of any Hedge Agreement, (b) any non-cash gains
attributable to the early extinguishment of Indebtedness, (c) unusual or
non-recurring non-cash gains, (d) all
non-cash gains resulting from any purchase accounting adjustments,
amortization, write-up, write-down or write-off of assets (including intangible
assets, goodwill and deferred financing costs) in connection with the
Acquisition and related transactions thereto, any Permitted Acquisition or any
merger, consolidation or similar transaction not prohibited by this Agreement, (e) any
amount added pursuant to clause (r) above, but not actually reimbursed to
or otherwise received by the Borrower within 12 months of the applicable
liability or casualty event or incurrence of expenses or losses relating to
business interruption, (f) any amount added pursuant to clause (s) above,
but not actually refunded to or received by the Borrower within 12 months of
the event resulting in such indemnification or refund; and (g) other
non-cash gains increasing Consolidated Net Income for such period (excluding
any such non-cash gain to the extent it represents the reversal of an accrual
or reserve for potential cash gain in any prior period).  For purposes of calculating the financial
covenants in Sections 6.7(a) and 6.7(b), Consolidated Adjusted EBITDA (i) shall
be adjusted in accordance with Section 6.7(d) and (ii) shall be
deemed to be $73,177,000 for the Fiscal Quarter ended September 30, 2007
and $68,949,000 for the Fiscal Quarter ended December 31, 2007.

 

“Consolidated Capital Expenditures”
means, for any period, the aggregate of all expenditures of Holdings and its
Subsidiaries made during such period determined on a consolidated basis that,
in accordance with GAAP, are or should be included in “purchase of property and
equipment” or similar items reflected in the consolidated statement of cash
flows of Holdings and its Subsidiaries; provided that Consolidated
Capital Expenditures shall not include (i) the purchase price paid in
connection with a Permitted Acquisition, (ii) expenditures made pursuant
to any election to apply Net Asset Sale Proceeds or Net Insurance/Condemnation
Proceeds to acquire assets as contemplated by the provisos to Section 2.14(a) and
2.14(b), (iii) the non-cash consideration transferred or disposed of in
connection with a Permitted Operating Asset Swap, (iv) any Specified
Investment, (v) expenditures made in leasehold improvements, to the extent
reimbursed by the landlord, (vi) expenditures to the extent that they

 

10

 

are actually paid for by a third party (excluding any Credit Party) and
for which no Credit Party has provided or is required to provide or incur,
directly or indirectly, any consideration or monetary obligation to such third
party or any other Person (whether before, during or after such period) and (vii) property,
plant and equipment taken in settlement of accounts.

 

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

 

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

 

“Consolidated Excess Cash Flow”
means, for any period, an amount (if positive) equal to: (i) the sum,
without duplication, of the amounts for such period of (a) Consolidated
Adjusted EBITDA, plus (b) the Consolidated Working Capital Adjustment, minus
(ii) the sum, without duplication, of the amounts for such period paid in
cash from operating cash flow of (a) scheduled repayments of Indebtedness
for borrowed money and scheduled repayments of obligations under Capital Leases
(excluding any interest expense portion thereof), (b) Consolidated Capital
Expenditures (net of any proceeds of (y) any related financings with
respect to such expenditures and (z) any sales of assets used to finance
such expenditures), (c) Consolidated Interest Expense, (d) provisions
for current taxes based on income of Holdings and its Subsidiaries and payable
in cash with respect to such period, (e) the aggregate amount of
consideration to be paid in cash during such period for Permitted Acquisitions
to the extent not financed (x) by incurring Indebtedness that, in
accordance with GAAP, constitutes a long-term liability, (y) with the Net
Asset Sale Proceeds or Net Insurance/Condemnation Proceeds of prepayment events
described in Section 2.14 hereof or (z) with the proceeds from the
issuance of Equity Interests, (f) the amount of any expenses related to
severance costs, facility closure and related restructuring costs incurred in
connection with the Acquisition and paid within 18 months of the Closing
Date by any of Holdings, Borrower or its Subsidiaries which expenses are not
otherwise deducted in calculating the Consolidated Net Income of Holdings,
Borrower and its consolidated Subsidiaries as a result of the application of
purchase accounting principles and (g) the amount of any costs, fees,
expenses and one time payments made related to any Permitted Acquisition and
paid within 18 months of the date of consummation of such Permitted Acquisition
by any of Holdings, Borrower or its Subsidiaries which expenses are not
otherwise deducted in calculating the Consolidated Net Income of Holdings,
Borrower and its consolidated Subsidiaries.

 

“Consolidated Interest Expense”
means, for any period, total interest expense (including that portion
attributable to Capital Leases in accordance with GAAP and capitalized
interest), net of total interest income, of Holdings and its Subsidiaries on a
consolidated basis with respect to all outstanding Indebtedness of Holdings and
its Subsidiaries, including all commissions, discounts and other fees and
charges owed with respect to letters of credit and net costs and benefits under
Interest Rate Agreements, but excluding, however, any amount not payable in
cash and any amounts referred to in Sections 2.11(d) and 2.11(e) payable
on or before the Closing Date; provided that for calculations for any
four Fiscal Quarter period ending on or

 

11

 

prior to December 31, 2008, the Consolidated Interest Expense of
Holdings and its Subsidiaries shall be deemed to be the product of (i) such
amounts from and including the Closing Date through and including the last day
of the applicable period, respectively, multiplied by (ii) a fraction of
which the numerator is 365 and the denominator of which is the number of days
elapsed in the period from and including the Closing Date through and including
the last day of the applicable period.

 

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

 

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

 

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

 

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

 

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

 

“Contributing Guarantors”
as defined in Section 7.2.

 

12

 

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

 

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

 

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

 

“Credit Date” means
the date of a Credit Extension.

 

“Credit Document”
means any of this Agreement, the Notes, if any, the Collateral Documents, the
Intercreditor Agreement, any documents or certificates executed by Borrower in
favor of Issuing Bank relating to Letters of Credit, the Post-Closing
Agreement, and all other documents, instruments or agreements (excluding
agreements entered into in connection with any transaction arising out of any
Hedge Agreement) executed and delivered by a Credit Party for the benefit of
any Agent, Issuing Bank or any Lender in connection herewith on or after the
date hereof.

 

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

 

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

 

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

 

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

 

“Default Excess”
means, with respect to any Defaulting Lender, the excess, if any, of such
Defaulting Lender’s Pro Rata Share of the aggregate outstanding principal
amount of Loans of all Lenders (calculated as if all Defaulting Lenders
(including such Defaulting Lender) had funded all of their respective Defaulted
Loans) over the aggregate outstanding principal amount of all Loans of such
Defaulting Lender.

 

“Default Period”
means, with respect to any Defaulting Lender, the period commencing on the date
of the applicable Funding Default and ending on the earliest of the following
dates:  (i) the date on which all
Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (ii) the date on which (a) the
Default Excess with respect to such Defaulting Lender shall have been reduced
to zero (whether by the funding by such Defaulting Lender of any Defaulted
Loans of such Defaulting Lender or by the non-pro rata application of any
voluntary or mandatory prepayments of the Loans in accordance with the terms of
Section 2.13 or Section 2.14 or by a combination thereof) and (b) such
Defaulting Lender shall have delivered to Borrower and Administrative Agent a
written

 

13

 

reaffirmation of its intention to honor its obligations hereunder with
respect to its Commitments, and (iii) the date on which Borrower,
Administrative Agent and Requisite Lenders waive all Funding Defaults of such
Defaulting Lender in writing.

 

“Defaulted Loan” as
defined in Section 2.22.

 

“Defaulting Lender”
as defined in Section 2.22.

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

“Existing Letters of Credit” means letters of credit issued for the
account of a Credit Party pursuant to that certain Third Amended and Restated
Credit Agreement dated as of May 3, 2007 among Boise Cascade Holdings,
L.L.C., Boise Cascade, L.L.C., the lenders and agents party thereto and
JPMorgan Chase Bank, N.A., as administrative agent, as amended prior to the
Closing Date, provided, that (i) all such letters of credit were
issued by a Person who becomes an Issuing Bank after the Closing Date in
accordance with Section 2.4(i), (ii) all such letters of credit were,
as of the Closing Date, supported by a Letter of Credit (the “Backstop Letter of
Credit”) and (iii) the Backstop Letter of Credit has been
terminated or amended to reflect that the Existing Letters of Credit are no
longer supported by the Backstop Letter of Credit.

 

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

 

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

 

“Fair Share” as defined in Section 7.2.

 

“Federal Funds Effective Rate” means for any day, the rate per annum
(expressed as a decimal, rounded upwards, if necessary, to the next higher
1/100 of 1%) equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided, (i) if
such day is not a Business Day, the Federal Funds Rate for such day shall be
such rate on such

 

17

 

transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and
(ii) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate charged to
Administrative Agent, in its  capacity as
a Lender, on such day on such transactions as determined by Administrative
Agent.

 

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

 

“Financial Officer Certification” means, with respect to the financial
statements for which such certification is required, the certification of the
chief financial officer, treasurer, assistant treasurer, principal accounting
officer or controller of Holdings that such financial statements fairly
present, in all material respects, the financial condition of Holdings and its
Subsidiaries as at the dates indicated and the results of their operations and
their cash flows for the periods indicated, subject to the absence of footnotes
(in the case of quarterly financial statements) and changes resulting from
audit and normal year-end adjustments.

 

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

 

“First Priority” means, with respect to any Lien
purported to be created in any Collateral pursuant to any Collateral Document,
that such Lien is the only Lien to which such Collateral is subject, other than
any Permitted Lien.

 

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

 

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

 

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

 

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

 

“Funding Default” as defined in Section 2.22.

 

“Funding Guarantors” as defined in Section 7.2.

 

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

 

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

 

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

 

“Governmental Authority” means any federal, state, municipal,
national or other government, governmental department, commission, board,
bureau, court, agency or

 

18

 

instrumentality or
political subdivision thereof or any entity, officer or examiner exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to any government or any court, in each case whether associated with
a state of the United States, the United States, or a foreign entity or
government.

 

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

 

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

 

“GSCP” as defined in the preamble hereto.

 

“Guaranteed Obligations” as defined in Section 7.1.

 

“Guarantor” means each of Holdings, each Domestic
Subsidiary of Borrower and, to the extent (x) no material adverse tax
consequences to Holdings or Borrower would result therefrom and (y) reasonably
requested by the Administrative Agent, each Foreign Subsidiary of Borrower.

 

“Guarantor Subsidiary” means each Guarantor other than
Holdings.

 

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

 

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

 

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

 

“Hedge Agreement” means an Interest Rate Agreement, a
Currency Agreement or a Commodity Agreement entered into with a Lender Counterparty
and reasonably satisfactory to Administrative Agent.

 

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

 

“Historical Financial Statements” means as of the Closing Date, (i) the
audited financial statements of the Acquired Business, for the fiscal years
ended December 31, 2005 and December 31, 2006, consisting of balance
sheets and the related consolidated statements of

 

19

 

income, stockholders’
equity and cash flows for such fiscal years, (ii) the unaudited financial
statements of the Acquired Business for each fiscal quarter of the Acquired
Business ended after December 31, 2006 and at least 45 days prior to the
Closing Date (other than with respect to the fiscal quarter ended December 31,
2007), consisting of a balance sheet and the related consolidated statements of
income, stockholders’ equity and cash flows for the three-, six-or nine-month
period, as applicable, ending on the last day of the applicable fiscal quarter,
and (iii) the unaudited income statements and balance sheets of Boise
White Paper, L.L.C. and its Subsidiaries and Boise Packaging &
Newsprint, L.L.C. for each fiscal month, together with a summary of
Consolidated Adjusted EBITDA for the last twelve months (including specified
adjustments thereto), in each case ended after the date of the most recent
quarterly financial statements referred to in clause (ii) above and at
least 30 days prior to the Closing Date.

 

“Holdings” as defined in the preamble hereto.

 

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

 

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

 

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

 

20

 

than (A) reimbursement
obligations in respect of letters of credit, the payment of which is either
backed by a Letter of Credit or cash collateralized, (B) commercial
letters of credit (other than, for the avoidance of doubt, any Letter of
Credit) issued in support of accounts payable that do not otherwise constitute
Indebtedness or “timber under contract” agreements entered into in the ordinary
course of business and (C) standby letters of credit (other than, for the
avoidance of doubt, any Letter of Credit) issued in support of operating
leases, insurance premia and other amounts that do not constitute Indebtedness
unless and until the beneficiary thereof has the right to draw on such standby
letter of credit); (vii) Disqualified Equity Interests, (viii) the
direct or indirect guaranty, endorsement (otherwise than for collection or
deposit in the ordinary course of business), co-making, discounting with
recourse or sale with recourse by such Person of Indebtedness of another; (ix) any
obligation of such Person the primary purpose or intent of which is to provide
assurance to an obligee that Indebtedness of the obligor thereof will be paid
or discharged, or any agreement relating thereto will be complied with, or the
holders thereof will be protected (in whole or in part) against loss in respect
thereof; (x) any liability of such Person for Indebtedness of another
through any agreement (contingent or otherwise) (a) to purchase,
repurchase or otherwise acquire such Indebtedness or any security therefor, or
to provide funds for the payment or discharge of such Indebtedness (whether in
the form of loans, advances, stock purchases, capital contributions or
otherwise) or (b) to maintain the solvency or any balance sheet item,
level of income or financial condition of another if, in the case of any
agreement described under subclauses (a) or (b) of this clause (x),
the primary purpose or intent thereof is as described in clause (ix) above;
and (xi) all obligations of such Person in respect of any exchange traded or
over the counter derivative transaction, including any Interest Rate Agreement
and Currency Agreement, whether entered into for hedging or speculative
purposes; provided, in no event shall obligations under any Interest
Rate Agreement and any Currency Agreement be deemed “Indebtedness” for any
purpose under Section 6.7.

 

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

 

21

 

hereby or thereby
(including the Lenders’ agreement to make Credit Extensions or the use or
intended use of the proceeds thereof, or any enforcement of any of the Credit
Documents (including any sale of, collection from, or other realization upon
any of the Collateral or the enforcement of the Guaranty)) or (ii) any
Environmental Claim or any Hazardous Materials Activity relating to or arising
from, directly or indirectly, any past or present activity, operation, land
ownership, or practice of Holdings or any of its Subsidiaries.

 

“Indemnitee” as defined in Section 10.3.

 

“Installment” as defined in Section 2.12.

 

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

 

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

 

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

 

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

 

“Interest Coverage Ratio” means the ratio as of the last day of
any Fiscal Quarter of (i) Consolidated Adjusted EBITDA for the four-Fiscal
Quarter period then ended to (ii) Consolidated Interest Expense payable in
cash for such four-Fiscal Quarter period.

 

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

 

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

 

22

 

calendar month; (c) no
Interest Period with respect to any portion of any Class of Term Loans
shall extend beyond such Class’s Term Loan Maturity Date; and (d) no
Interest Period with respect to any portion of the Revolving Loans shall extend
beyond the Revolving Commitment Termination Date.

 

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

 

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

 

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

 

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

 

“Issuance Notice” means an Issuance Notice substantially
in the form of Exhibit A-3.

 

“Issuing Bank” means Bank of America, as Issuing Bank
hereunder, together with its permitted successors and assigns in such capacity
and together with any additional Persons which become Issuing Banks in
accordance with Section 2.4(i).

 

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

 

“Landlord Consent and Estoppel” means, with respect to any Leasehold
Property that is a Mortgaged Property, a letter, certificate or other
instrument in writing from the lessor under the related lease, pursuant to
which, among other things, the landlord consents to the granting of a Mortgage
on such Leasehold Property by the Credit Party tenant, such Landlord

 

23

 

Consent and Estoppel to
be in form and substance acceptable to Collateral Agent in its reasonable
discretion, but in any event sufficient for Collateral Agent to obtain a Title
Policy with respect to such Mortgage.

 

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

 

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

 

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

 

“Lender
Counterparty” means each Lender, each Agent and each of their
respective Affiliates counterparty to a Hedge Agreement or Treasury Services
Agreement (including any Person who is an Agent or a Lender (and any Affiliate
thereof) as of the Closing Date but subsequently, whether before or after
entering into a Hedge Agreement or Treasury Services Agreement, ceases to be an
Agent or a Lender, as the case may be) including, without limitation, each such
Affiliate that appoints the Collateral Agent as its agent and agrees to be
bound by the Credit Documents as a Secured Party, subject to Section 9.8(c).

 

“Letter of Credit” means (i) a commercial or standby
letter of credit issued or to be issued by Issuing Bank pursuant to this
Agreement and (ii) any Existing Letter of Credit.

 

“Letter of Credit Backstop” means, in respect of any Letter of
Credit, (i) a letter of credit delivered to the Issuing Bank which may be
drawn by the Issuing Bank to satisfy any obligations of Borrower in respect of
such Letter of Credit or (b) Cash or Cash Equivalents deposited with the
Issuing Bank to satisfy any obligation of Borrower in respect of such Letter of
Credit, in each case, in an amount equal to 103% of the undrawn face amount of
such Letter of Credit and otherwise on terms and pursuant to arrangements
(including, if applicable, any appropriate reimbursement agreement) reasonably
satisfactory to the respective Issuing Bank.

 

“Letter of Credit Sublimit” means the lesser of (i) $75,000,000
and (ii) the aggregate unused amount of the Revolving Commitments then in
effect.

 

“Letter of Credit Usage” means, as at any date of determination,
the sum of (i) the maximum aggregate amount which is, or at any time
thereafter may become, available for drawing under all Letters of Credit then
outstanding, and (ii) the aggregate amount of all drawings under Letters
of Credit honored by Issuing Bank and not theretofore reimbursed by or on
behalf of Borrower.

 

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

 

24

 

 

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

 

“Loan” means a Tranche A Term Loan, a Tranche B
Term Loan, a Revolving Loan and a Swing Line Loan.

 

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

 

“Material Adverse Change” means any material adverse effect upon (x) the
financial condition or operating results of the Paper Group (as defined in the
Acquisition Agreement) (and their Subsidiaries) or the Business (as defined in
the Acquisition Agreement), taken as a whole, or (y) the ability of Boise
Cascade, L.L.C. and the Acquired Business to consummate the transactions
contemplated by the Acquisition Agreement, except any adverse effect related to
or resulting from (1) general business or economic conditions affecting
the industry in which any member of the Paper Group, any of its Subsidiaries or
the Business operates, (2) national or international political or social
conditions, including the engagement by the United States in hostilities or the
escalation thereof, whether or not pursuant to the declaration of a national
emergency or war, or the occurrence or the escalation of any military or
terrorist attack upon the United States, or any of its territories,
possessions, or diplomatic or consular offices or upon any military installation,
equipment or personnel of the United States, (3) financial, banking, or
securities markets (including any disruption thereof and any decline in the
price of any security or any market index), (4) changes in GAAP or, solely
as a result of changes in GAAP or SAAP (as defined in the Acquisition
Agreement), (5) changes in laws, rules, regulations, orders, or other
binding directives issued by any Governmental Entity (as defined in the
Acquisition Agreement), (6) the taking of any action contemplated by the
Acquisition Agreement or the announcement of the Acquisition Agreement or the
transactions contemplated thereby, (7) any existing event, occurrence, or
circumstance with respect to which Parent or Borrower has knowledge as of the
date of the Commitment Letter (including any matter set forth in the Seller
Disclosure Letter (as defined in the Acquisition Agreement)) or (8) Parent’s
and/or Borrower’s failure to consent to any of the actions restricted by Section 3B
of the Acquisition Agreement (except in the case of each of the
immediately preceding clause (1), (2), (3), (4) and (5), any such adverse effect which has a
materially disproportionate effect on the Acquired Business and its
Subsidiaries, taken as a whole, relative to the effect on other companies operating in the same
industry).

 

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

 

25

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

26

 

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

 

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

 

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

 

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

 

“Note” means a Tranche A Term Note, a Tranche B
Term Note, a Revolving Loan Note or a Swing Line Note.

 

“Notice” means a Funding Notice, an Issuance
Notice, or a Conversion/ Continuation Notice.

 

“Obligations” means all obligations of every nature of
each Credit Party, including obligations from time to time owed to the Agents
(including former Agents), the Lenders or any of them and Lender
Counterparties, under any Credit Document, Hedge Agreement or (if requested by
Borrower) Treasury Services Agreement, whether for principal, interest
(including interest which, but for the filing of a petition in bankruptcy with
respect to such Credit Party, would have accrued on any Obligation, whether or
not a claim is allowed against such Credit Party for such interest in the
related bankruptcy proceeding), reimbursement of amounts drawn under Letters of
Credit, payments for early termination of Hedge Agreements, fees, expenses,
indemnification or otherwise.

 

“Obligee Guarantor” as defined in Section 7.7.

 

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

 

27

 

any such “Organizational
Document” shall only be to a document of a type customarily certified by such
governmental official.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(v)           Borrower shall have delivered to
Administrative Agent (A) at least 5 Business Days prior to such proposed
acquisition, (i) a Compliance Certificate evidencing compliance with Section 6.7
as required under clause (iv) above and (ii) all other relevant
financial information with respect to such acquired assets, including the

 

28

 

aggregate consideration
for such acquisition and any other information required to demonstrate
compliance with Section 6.7 and (B) promptly upon reasonable request
by Administrative Agent, a copy of the purchase agreement related to the
proposed Permitted Acquisition (and any related documents reasonably requested
by Administrative Agent);  and

 

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

 

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

 

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

 

“Permitted Operating Asset Swap” means any transfer of Eligible Swap
Assets by Borrower or any Subsidiary in which at least 95% of the consideration
received by the transferor consists of Eligible Swap Assets (and any balance of
such consideration consists of cash); provided that (a) after
giving effect to such transfer, the aggregate fair market value of all assets
transferred pursuant to Permitted Operating Asset Swaps (i) during any
fiscal year of Borrower, on a cumulative basis, shall not exceed $20,000,000
and (ii) during the term of this Agreement, on a cumulative basis, shall
not exceed $40,000,000 and (b) all actions required to be taken pursuant
to Sections 5.10 and/or 5.11, as applicable, with respect to any Eligible
Swap Assets so received as consideration shall be taken.

 

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

 

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

 

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

 

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

 

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

 

29

 

actually charged to any
customer.  Any Agent or any other Lender
may make commercial loans or other loans at rates of interest at, above or
below the Prime Rate.

 

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

 

“Projections” as defined in Section 4.8.

 

“Pro Rata Share” means (i) with respect to all
payments, computations and other matters relating to the Tranche A Term
Loan of any Lender, the percentage obtained by dividing (a) the
Tranche A Term Loan Exposure of that Lender by (b) the aggregate
Tranche A Term Loan Exposure of all Lenders; (ii) with respect to all
payments, computations and other matters relating to the Tranche B Term
Loan of any Lender, the percentage obtained by dividing (a) the
Tranche B Term Loan Exposure of that Lender by (b) the aggregate
Tranche B Term Loan Exposure of all Lenders; and (iii) with respect
to all payments, computations and other matters relating to the Revolving
Commitment or Revolving Loans of any Lender or any Letters of Credit issued or
participations purchased therein by any Lender or any participations in any
Swing Line Loans purchased by any Lender, the percentage obtained by dividing (a) the
Revolving Exposure of that Lender by (b) the aggregate Revolving Exposure
of all Lenders.  For all other purposes
with respect to each Lender, “Pro Rata Share” means the percentage obtained by
dividing (A) an amount equal to the sum of the Tranche A Term Loan
Exposure, the Tranche B Term Loan Exposure and the Revolving Exposure of
that Lender, by (B) an amount equal to the sum of the aggregate
Tranche A Term Loan Exposure, the aggregate Tranche B Term Loan
Exposure and the aggregate Revolving Exposure of all Lenders.

 

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

 

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

 

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

 

“Refinance” means, in respect of any Indebtedness,
to refinance, extend, renew, defease, amend, modify, supplement, restructure,
replace, refund or repay, or to issue other indebtedness, in exchange or
replacement for, such Indebtedness in whole or in part.

 

30

 

“Refinanced” and “Refinancing”
shall have correlative meanings. 
All such terms shall include any subsequent Refinancing of any
Indebtedness issued in connection with any Refinancing.

 

“Refunded Committed Swing Line Loans” as defined in Section 2.3(b)(iv).

 

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

 

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

 

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

 

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

 

“Reimbursement Date” as defined in Section 2.4(d).

 

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

 

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

 

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

 

“Replacement Lender” as defined in Section 2.23.

 

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

 

“Requisite Lenders” means one or more Lenders having or
holding Tranche A Term Loan Exposure, Tranche B Term Loan Exposure
and/or Revolving Exposure and representing more than 50% of the sum of (i) the
aggregate Tranche A Term Loan Exposure of all Lenders, (ii) the
aggregate Tranche B Term Loan Exposure of all Lenders and (iii) the
aggregate Revolving Exposure of all Lenders.

 

“Requisite Supermajority Lenders” means one or more Lenders having or
holding Tranche A Term Loan Exposure, Tranche B Term Loan Exposure
and/or Revolving Exposure and representing more than 662/3% of the sum of (i) the
aggregate Tranche A Term Loan Exposure of all Lenders, (ii) the
aggregate Tranche B Term Loan Exposure of all Lenders and (iii) the
aggregate Revolving Exposure of all Lenders.

 

31

 

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

 

“Revolving Commitment” means the commitment of a Lender to make
or otherwise fund any Revolving Loan and to acquire participations in Letters
of Credit and Swing Line Loans hereunder and “Revolving
Commitments” means such commitments of all Lenders in the
aggregate.   The amount of each Lender’s
Revolving Commitment, if any, is set forth on Appendix A-3 or in the applicable
Assignment Agreement, subject to any adjustment or reduction pursuant to the
terms and conditions hereof.  The
aggregate amount of the Revolving Commitments as of the Closing Date is
$250,000,000.

 

“Revolving Commitment Period” means the period from the Closing Date
to but excluding the Revolving Commitment Termination Date.

 

“Revolving Commitment Termination
Date” means the
earliest to occur of (i)  the fifth anniversary of the Closing Date, (ii) the
date the Revolving Commitments are permanently reduced to zero pursuant to Section 2.13(b) or
2.14, and (iii) the date of the termination of the Revolving Commitments
pursuant to Section 8.1.

 

“Revolving Exposure” means, with respect to any Lender as of
any date of determination, (i) prior to the termination of the Revolving Commitments,
that Lender’s Revolving Commitment; and (ii) after the termination of the
Revolving Commitments, the sum of (a) the aggregate outstanding principal
amount of the Revolving Loans of that Lender, (b) in the case of Issuing
Bank, the aggregate Letter of Credit Usage in respect of all Letters of Credit
issued by that Lender (net of any participations by Lenders in such Letters of
Credit),  (c) the aggregate amount
of all participations by that Lender in any outstanding Letters of Credit or
any unreimbursed drawing under any Letter of Credit, (d) in the case of
Swing Line Lender, the aggregate outstanding principal amount of all Swing Line
Loans (net of any participations therein by other Lenders), and (e) the
aggregate amount of all participations therein by that Lender in any
outstanding Swing Line Loans.

 

“Revolving Loan” means a Loan made by a Lender to
Borrower pursuant to Section 2.2(a).

 

“Revolving Loan Note” means a promissory note in substantially
the form of Exhibit B-3, as it may be amended, supplemented or otherwise
modified from time to time.

 

32

 

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

 

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

 

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

 

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

 

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

 

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

 

“Solvent” means, with respect to any Credit Party,
that as of the date of determination, both (i) (a) the sum of such
Credit Party’s debt (including contingent liabilities) does not exceed the
present fair saleable value of such Credit Party’s present assets; (b) such
Credit Party’s capital is not unreasonably small in relation to its business as
contemplated on the Closing Date and reflected in the Projections or with
respect to any transaction contemplated or undertaken after the Closing Date;
and (c) such Person has not incurred and does not intend to incur, or
believe (nor should it reasonably believe) that it will incur, debts beyond its
ability to pay such debts as they become due (whether at maturity or
otherwise); and (ii) such Person is “solvent” within the meaning given
that term and similar terms under the Bankruptcy Code and applicable laws
relating to fraudulent transfers and conveyances.  For purposes of this definition, the amount
of any contingent liability at any time shall be computed as the amount that,
in light of all of the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or
matured liability (irrespective of whether such contingent liabilities meet the
criteria for accrual under Statement of Financial Accounting Standard No. 5).

 

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

 

33

 

following the issuance of
such Equity Interests and (ii) such investment is made within 90 days
of receipt by Holdings of such net cash proceeds.

 

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

 

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

 

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

 

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

 

“Swing Line Lender” means the Committed Swing Line Lender
and any Uncommitted Swing Line Lenders.

 

“Swing Line Loan” means a Committed Swing Line Loan or an
Uncommitted Swing Line Loan.

 

“Swing Line Note” means a promissory note substantially in
the form of Exhibit B-4, as it may be amended, supplemented or otherwise
modified from time to time.

 

“Swing Line Sublimit” means the lesser of (i) $25,000,000,
and (ii) the aggregate unused amount of Revolving Commitments then in
effect.

 

“Syndication Agent” as defined in the preamble hereto.

 

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

 

34

 

any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other
jurisdiction described above.

 

“TD” as defined in the preamble hereto.

 

“Term Loan” means a Tranche A Term Loan and a
Tranche B Term Loan.

 

“Term Loan Commitment” means the Tranche A Term Loan Commitment
and the Tranche B Term Loan Commitment of a Lender, and “Term Loan Commitments” means such
commitments of all Lenders.

 

“Term Loan Maturity Date” means the Tranche A Term Loan Maturity
Date and the Tranche B Term Loan Maturity Date.

 

“Terminated Lender” as defined in Section 2.23.

 

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

 

“Total Utilization of Revolving
Commitments”
means, as at any date of determination, the sum of (i) the aggregate
principal amount of all outstanding Revolving Loans (other than Revolving Loans
made for the purpose of repaying any Refunded Committed Swing Line Loans or
reimbursing Issuing Bank for any amount drawn under any Letter of Credit, but
not yet so applied), (ii) the aggregate principal amount of all
outstanding Swing Line Loans, and (iii) the Letter of Credit Usage.

 

“Tranche A Term Loan”  means
a Tranche A Term Loan made by a Lender to Borrower pursuant to Section 
2.1(a)(i).

 

“Tranche A Term Loan Commitment” means the commitment of a Lender to make
or otherwise fund a Tranche A Term Loan and “Tranche
A Term Loan Commitments” means such commitments of all Lenders in
the aggregate.  The amount of each Lender’s
Tranche A Term Loan Commitment, if any, is set forth on Appendix A-1 or in the
applicable Assignment Agreement, subject to any adjustment or reduction
pursuant to the terms and conditions hereof. 
The aggregate amount of the Tranche A Term Loan Commitments as of the
Closing Date is $250,000,000.

 

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

 

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

 

35

 

“Tranche A Term Loan Note” means a promissory note substantially in
the form of Exhibit B-1, as it may be amended, supplemented or otherwise
modified from time to time.

 

“Tranche B Term Loan” means a Tranche B Term Loan
made by a Lender to Borrower pursuant to  Section 2.1(a)(ii).

 

“Tranche B Term Loan Commitment” means the commitment of a Lender to make
or otherwise fund a Tranche B Term Loan and 
“Tranche B Term Loan Commitments”
means such commitments of all Lenders in the aggregate.  The amount of each Lender’s Tranche B Term
Loan Commitment, if any, is set forth on Appendix A-2 or in the applicable
Assignment Agreement, subject to any adjustment or reduction pursuant to the
terms and conditions hereof.  The
aggregate amount of the Tranche B Term Loan Commitments as of the Closing Date
is $475,000,000.

 

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

 

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

 

“Tranche B Term Loan Note” means a promissory note substantially in
the form of Exhibit B-2, as it may be amended, supplemented or otherwise
modified from time to time.

 

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

 

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

 

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

 

“Type of Loan” means (i) with respect to either
Term Loans or Revolving Loans, a Base Rate Loan or a Eurodollar Rate Loan, and (ii) with
respect to Committed Swing Line Loans, a Base Rate Loan.

 

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

 

36

 

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

 

“Uncommitted Swing Line Lender” means, at any time, any Lender with a
Revolving Commitment or, if the Revolving Commitments have terminated or
expired, a Lender with Revolving Exposure, that holds an Uncommitted Swing Line
Loan outstanding at such time.

 

“Uncommitted Swing Line Loan” means a Loan made by Uncommitted Swing
Line Lender to Borrower pursuant to Section 2.3(c).

 

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

 

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

 

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

 

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

 

1.4.   Intercreditor Agreement. 
All rights and obligations of the Agents and Lenders under this
Agreement shall be subject to the Intercreditor Agreement.  Notwithstanding anything herein to the
contrary, the Liens and security interests granted to the Agents or Lenders
pursuant to this Agreement or any other Credit Document and the exercise of any
right or remedy by the

 

37

 

Agents
or Lenders hereunder are subject to the provisions of the Intercreditor
Agreement.  In the event of any conflict
between the terms of the Intercreditor Agreement and this Agreement, such
conflict shall be resolved in accordance with Section 8.1 of the
Intercreditor Agreement.  Any reference
in this Agreement to “first priority lien” or words of similar effect in
describing the security interests created hereunder or under any Credit
Document shall be understood to refer to such priority as set forth in the
Intercreditor Agreement.  All representations,
warranties and covenants in this Agreement shall be subject to the provisions
and qualifications set forth in this Section 1.4.

 

SECTION 2.   LOANS AND LETTERS OF CREDIT

 

2.1.   Term Loans.

 

(a)   Term Loan
Commitments.  Subject to the terms
and conditions hereof,

 

(i)   each Lender
severally agrees to make, on the Closing Date, 
a Tranche A Term Loan to Borrower in an amount equal to such Lender’s
Tranche A Term Loan Commitment; and

 

(ii)   each Lender
severally agrees to make, on the Closing Date, a Tranche B Term Loan to
Borrower in an amount equal to such Lender’s Tranche B Term Loan
Commitment.

 

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

 

(b)   Borrowing
Mechanics for Term Loans.

 

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

 

(ii)   Each Lender
shall make its Tranche A Term Loan and/or Tranche B Term Loan, as the
case may be, available to Administrative Agent not later than 12:00 p.m.
(New York City time) on the Closing Date, by wire transfer of same day funds in
Dollars, at the Principal Office designated by Administrative Agent.  Upon satisfaction

 

38

 

or waiver
of the conditions precedent specified herein, Administrative Agent shall make
the proceeds of the Term Loans available to Borrower on the Closing Date by
causing an amount of same day funds in Dollars equal to the proceeds of all
such Loans received by Administrative Agent from Lenders to be credited to an
account designated in writing to Administrative Agent by Borrower.

 

2.2.   Revolving Loans.

 

(a)   Revolving
Commitments.  During the Revolving
Commitment Period, subject to the terms and conditions hereof, each Lender
severally agrees to make Revolving Loans to Borrower in an aggregate amount up
to but not exceeding such Lender’s Revolving Commitment; provided, that
after giving effect to the making of any Revolving Loans in no event shall the
Total Utilization of Revolving Commitments exceed the Revolving Commitments
then in effect.  Amounts borrowed
pursuant to this Section 2.2(a) may be repaid and reborrowed during
the Revolving Commitment Period.  Each
Lender’s Revolving Commitment shall expire on the Revolving Commitment
Termination Date and all Revolving Loans and all other amounts owed hereunder
with respect to the Revolving Loans and the Revolving Commitments shall be paid
in full no later than such date.

 

(b)   Borrowing
Mechanics for Revolving Loans.

 

(i)   Except
pursuant to 2.4(d), Revolving Loans that are Base Rate Loans shall be made in
an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000  in excess of that amount, and Revolving
Loans that are Eurodollar Rate Loans shall be in an aggregate minimum amount of
$5,000,000 and integral multiples of $1,000,000  in excess of that amount.

 

(ii)   Whenever
Borrower desires that Lenders make Revolving Loans, Borrower shall deliver to
Administrative Agent by telefacsimile, electronic communication (in pdf format)
or hand delivery a fully executed Funding Notice no later than (i) one
Business Day prior to the Closing Date in the case of any Revolving Loans to be
funded on the Closing Date, (ii) 12:00 p.m. (New York City time) at
least three Business Days in advance of the proposed Credit Date (other than the
Closing Date) in the case of a Eurodollar Rate Loan, and (iii) no later
than 2:00 p.m. (New York City time) at least one Business Day in advance
of the proposed Credit Date (other than the Closing Date) in the case of a Base
Rate Loan.  Except as otherwise provided
herein, a Funding Notice for a Revolving Loan that is a Eurodollar Rate Loan
shall be irrevocable on and after the related Interest Rate Determination Date,
and Borrower shall be bound to make a borrowing in accordance therewith.

 

(iii)   Notice of
receipt of each Funding Notice in respect of Revolving Loans, together with the
amount of each Lender’s Pro Rata Share thereof, if any, together with the
applicable interest rate, shall be provided by Administrative Agent to each
applicable Lender by telefacsimile with reasonable promptness, but (provided
Administrative Agent shall have received such notice by 12:00 p.m. (New
York City time)) not later than 2:00 p.m. (New York City time) on the same
day as Administrative Agent’s receipt of such Funding Notice from Borrower.

 

39

 

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

 

2.3.   Swing Line Loans.

 

(a)   Committed
Swing Line Loans.  During the
Revolving Commitment Period, subject to the terms and conditions hereof,
Committed Swing Line Lender hereby agrees to make Committed Swing Line Loans to
Borrower in the aggregate amount up to but not exceeding the Swing Line
Sublimit; provided, that after giving effect to the making of any
Committed Swing Line Loan, in no event shall the Total Utilization of Revolving
Commitments exceed the Revolving Commitments then in effect.  Amounts borrowed pursuant to this Section 2.3
may be repaid and reborrowed during the Revolving Commitment Period.  Committed Swing Line Lender’s Revolving
Commitment shall expire on the Revolving Commitment Termination Date and all
Committed Swing Line Loans and all other amounts owed hereunder with respect to
the Committed Swing Line Loans and the Revolving Commitments shall be paid in
full no later than such date.

 

(b)   Borrowing
Mechanics for Committed Swing Line Loans.

 

(i)   Committed
Swing Line Loans shall be made in an aggregate minimum amount of $500,000 and
integral multiples of $100,000 in excess of that amount.

 

(ii)   Whenever
Borrower desires that Committed Swing Line Lender make a Committed Swing Line
Loan, Borrower shall deliver to Administrative Agent by telefacsimile,
electronic communication (in pdf format) or hand delivery a fully executed
Funding Notice no later than 1:00 p.m. (New York City time) on the
proposed Credit Date.

 

(iii)   Committed
Swing Line Lender shall make the amount of its Committed Swing Line Loan
available to Administrative Agent not later than 3:00 p.m. (New York City
time) on the applicable Credit Date by wire transfer of same day funds in
Dollars, at Administrative Agent’s Principal Office.  Except as provided herein, upon satisfaction
or waiver of the conditions precedent specified herein, Administrative Agent
shall make the proceeds of such Committed Swing Line Loans available to Borrower
on the applicable Credit Date by causing an amount of same day funds in Dollars
equal to the proceeds of all such Committed Swing Line Loans received by
Administrative Agent from Committed Swing Line Lender to be credited to an
account designated in writing to Administrative Agent by Borrower.

 

40

 

(iv)   With
respect to any Committed Swing Line Loans which have not been voluntarily
prepaid by Borrower pursuant to Section 2.13, Committed Swing Line Lender
may at any time in its sole and absolute discretion, deliver to Administrative
Agent (with a copy to Borrower), no later than 11:00 a.m. (New York City
time) on any Business Day, a notice (which shall be deemed to be a Funding
Notice given by Borrower) requesting that each Lender holding a Revolving
Commitment make Revolving Loans that are Base Rate Loans to Borrower on the
next Business Day in an amount equal to the amount of such Committed Swing Line
Loans (the “Refunded Committed Swing Line Loans”) outstanding on the date such notice is given which
Committed Swing Line Lender requests Lenders to prepay.  Anything contained in this Agreement to the
contrary notwithstanding, (1) the proceeds of such Revolving Loans made by
the Lenders other than Committed Swing Line Lender shall be immediately delivered
by Administrative Agent to Committed Swing Line Lender (and not to Borrower)
and applied to repay a corresponding portion of the Refunded Committed Swing
Line Loans and (2) on the day such Revolving Loans are made, Committed
Swing Line Lender’s Pro Rata Share of the Refunded Committed Swing Line Loans
shall be deemed to be paid with the proceeds of a Revolving Loan made by
Committed Swing Line Lender to Borrower, and such portion of the Committed
Swing Line Loans deemed to be so paid shall no longer be outstanding as
Committed Swing Line Loans and shall no longer be due under the Swing Line Note
of Committed Swing Line Lender but shall instead constitute part of Committed
Swing Line Lender’s outstanding Revolving Loans to Borrower and shall be due under
the Revolving Loan Note issued by Borrower to Committed Swing Line Lender.  Borrower hereby authorizes Administrative
Agent and Committed Swing Line Lender to charge Borrower’s accounts with
Administrative Agent and Committed Swing Line Lender (up to the amount
available in each such account) in order to immediately pay Committed Swing
Line Lender the amount of the Refunded Committed Swing Line Loans to the extent
the proceeds of such Revolving Loans made by Lenders, including the Revolving
Loans deemed to be made by Committed Swing Line Lender, are not sufficient to
repay in full the Refunded Committed Swing Line Loans.  If any portion of any such amount paid (or
deemed to be paid) to Committed Swing Line Lender should be recovered by or on
behalf of Borrower from Committed Swing Line Lender in bankruptcy, by
assignment for the benefit of creditors or otherwise, the loss of the amount so
recovered shall be ratably shared among all Lenders in the manner contemplated
by Section 2.17.

 

(v)   If for any
reason Revolving Loans are not made pursuant to Section 2.3(b)(iv) in
an amount sufficient to repay any amounts owed to Committed Swing Line Lender
in respect of any outstanding Committed Swing Line Loans on or before the third
Business Day after demand for payment thereof by Committed Swing Line Lender,
each Lender holding a Revolving Commitment shall be deemed to, and hereby
agrees to, have purchased a participation in such outstanding Committed Swing
Line Loans in an amount equal to its Pro Rata Share of the applicable unpaid
amount together with accrued interest thereon. 
Upon one Business Day’s notice from Committed Swing Line Lender, each
Lender holding a Revolving Commitment shall deliver to Committed Swing Line
Lender an amount equal to its respective participation in the applicable unpaid
amount in same day funds at the Principal Office of Committed Swing Line
Lender. In order to evidence such participation each Lender holding a Revolving
Commitment agrees to enter into a

 

41

 

participation
agreement at the request of Committed Swing Line Lender in form and substance
reasonably satisfactory to Committed Swing Line Lender.  In the event any Lender holding a Revolving
Commitment fails to make available to Committed Swing Line Lender the amount of
such Lender’s participation as provided in this paragraph, Committed Swing Line
Lender shall be entitled to recover such amount on demand from such Lender
together with interest thereon for three Business Days at the rate customarily
used by Committed Swing Line Lender for the correction of errors among banks
and thereafter at the Base Rate, as applicable.

 

(vi)  
Notwithstanding anything contained herein to the contrary, (1) each
Lender’s obligation to make Revolving Loans for the purpose of repaying any
Refunded Committed Swing Line Loans pursuant to the second preceding paragraph
and each Lender’s obligation to purchase a participation in any unpaid
Committed Swing Line Loans pursuant to the immediately preceding paragraph
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any set-off, counterclaim, recoupment, defense
or other right which such Lender may have against Committed Swing Line Lender,
any Credit Party or any other Person for any reason whatsoever; (B) the
occurrence or continuation of a Default or Event of Default; (C) any
adverse change in the business, operations, assets or financial condition of
any Credit Party; (D) any breach of this Agreement or any other Credit
Document by any party thereto; or (E) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing; provided
that such obligations of each Lender are subject to the condition that
Committed Swing Line Lender believed in good faith that all conditions under Section 3.2
to the making of the applicable Refunded Committed Swing Line Loans or other
unpaid Committed Swing Line Loans, were satisfied at the time such Refunded
Committed Swing Line Loans or unpaid Committed Swing Line Loans were made, or
the satisfaction of any such condition not satisfied had been waived by the
Requisite Lenders prior to or at the time such Refunded Committed Swing Line
Loans or other unpaid Committed Swing Line Loans were made; and (2) Committed
Swing Line Lender shall not be obligated to make any Committed Swing Line Loans
(A) if it has elected not to do so after the occurrence and during the
continuation of a Default or Event of Default or (B) at a time when a
Funding Default exists unless Committed Swing Line Lender has entered into
arrangements reasonably satisfactory to it and Borrower to eliminate Committed
Swing Line Lender’s risk with respect to the Defaulting Lender’s participation
in such Committed Swing Ling Loan, including by cash collateralizing such
Defaulting Lender’s Pro Rata Share of the outstanding Committed Swing Line
Loans.

 

(c)   Uncommitted
Swing Line Loans. During the Revolving Commitment Period, subject to the
terms and conditions hereof, Uncommitted Swing Line Lender may (but shall not
have any obligation to) agree to make Uncommitted Swing Line Loans to Borrower
in the aggregate amount up to but not exceeding the Swing Line Sublimit; provided,
that (x) after giving effect to the making of any Uncommitted Swing Line
Loan, in no event shall the Total Utilization of Revolving Commitments exceed
the Revolving Commitments then in effect and (y) an Uncommitted Swing Line
Loan shall not be borrowed to refinance an outstanding Committed Swing Line
Loan.  Amounts borrowed pursuant to this Section 2.3(c) may
be repaid and reborrowed during the Revolving Commitment Period.  All Uncommitted Swing Line Loans

 

42

 

and all other amounts owed hereunder with respect to the
Uncommitted Swing Line Loans shall be paid in full no later than the Revolving
Commitment Termination Date.

 

(i)   Any
Uncommitted Swing Line Loan may be made pursuant to such procedures as shall be
separately agreed between the Borrower and the Uncommitted Swing Line Lender,
subject to the following provisions in this paragraph.  Uncommitted Swing Line Lender shall notify
the Administrative Agent of (x) the amount of such Uncommitted Swing Line
Loan prior to making such Loan and (ii) any repayment of the principal of such
Uncommitted Swing Line Loan (in whole or in part) and the amount of such
repayment, promptly upon receipt of such repayment.

 

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

 

2.4.   Issuance of Letters of Credit and Purchase
of Participations Therein.

 

(a)   Letters
of Credit.  During the Revolving
Commitment Period, subject to the terms and conditions hereof, Issuing Bank
agrees to issue Letters of Credit for the account of Borrower (it being
acknowledged that in this Section 2.4, any reference to Borrower shall be
deemed a reference to Borrower or any Subsidiary, as applicable, so long as
Borrower is jointly and severally liable for any Obligations incurred by any
Subsidiary under this Section 2.4) in the aggregate amount up to but not
exceeding the Letter of Credit Sublimit; provided, (i) each Letter
of Credit shall be denominated in Dollars; (ii) the stated amount of each
Letter of Credit shall not be less than $100,000 or such lesser amount as is
acceptable to Issuing Bank; (iii) after giving effect to such issuance, in
no event shall the Total Utilization of Revolving Commitments exceed the Revolving
Commitments then in effect; (iv) after giving effect to such issuance, in
no event shall the Letter of Credit Usage exceed the Letter of Credit Sublimit
then in effect; (v) unless a Letter of Credit Backstop is in place, in no
event shall any standby Letter of Credit have an expiration date later than the
earlier of (1) the Revolving Commitment Termination Date and (2) the
date which is one year from the date of issuance of such standby Letter of
Credit; and (vi) unless a Letter of Credit Backstop is in place, in no
event shall any commercial Letter of Credit (x) have an expiration date
later than the earlier of (1) the Revolving Loan Commitment Termination
Date and (2) the date which is 180 days from the date of issuance of such
commercial Letter of Credit or (y) be issued if such commercial Letter of
Credit is otherwise unacceptable to Issuing Bank in its reasonable
discretion.  Subject to the foregoing,
Issuing Bank may agree that a standby Letter of Credit will automatically be
extended for one or more successive periods not to exceed one year each, unless
Issuing Bank elects not to extend for any such additional period; provided,
Issuing Bank shall not extend any such Letter of Credit if it has received
written notice that an Event of Default has occurred and is continuing at the
time Issuing Bank must elect to allow such extension; provided, further,
in the event a Funding Default exists, Issuing Bank shall not be required to
issue any Letter of Credit unless Issuing Bank has entered into arrangements
reasonably satisfactory to it and Borrower to eliminate Issuing Bank’s risk
with respect to the participation in Letters of Credit of the Defaulting
Lender, including by cash collateralizing such Defaulting Lender’s Pro Rata
Share of the Letter of Credit Usage.

 

43

 

(b)   Notice of
Issuance.  Whenever Borrower desires
the issuance of a Letter of Credit, it shall deliver to Administrative Agent an
Issuance Notice no later than 12:00 p.m. (New York City time) at least
three Business Days (in the case of standby Letters of Credit) or five Business
Days (in the case of commercial Letters of Credit), or in each case such
shorter period as may be agreed to by Issuing Bank in any particular instance,
in advance of the proposed date of issuance. 
Upon satisfaction or waiver of the conditions set forth in Section 3.2,
Issuing Bank shall issue the requested Letter of Credit only in accordance with
Issuing Bank’s standard operating procedures. 
Upon the issuance of any Letter of Credit or amendment or modification
to a Letter of Credit, Issuing Bank shall promptly notify the Administrative
Agent and the Administrative Agent shall promptly notify each Lender with a
Revolving Commitment of such issuance, which notice shall be accompanied by a
copy of such Letter of Credit or amendment or modification to a Letter of
Credit and the amount of such Lender’s respective participation in such Letter
of Credit pursuant to Section 2.4(e).

 

(c)   Responsibility
of Issuing Bank With Respect to Requests for Drawings and Payments.  In determining whether to honor any drawing
under any Letter of Credit by the beneficiary thereof, Issuing Bank shall be
responsible only to examine the documents delivered under such Letter of Credit
with reasonable care so as to ascertain whether they appear on their face to be
in accordance with the terms and conditions of such Letter of Credit.  As between Borrower and Issuing Bank,
Borrower assumes all risks of the acts and omissions of, or misuse of the Letters
of Credit issued by Issuing Bank, by the respective beneficiaries of such
Letters of Credit.  In furtherance and
not in limitation of the foregoing, Issuing Bank shall not be responsible for: (i) the
form, validity, sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the application for and
issuance of any such Letter of Credit, even if it should in fact prove to be in
any or all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) the
validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign any such Letter of Credit or the rights or
benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason; (iii) failure of the
beneficiary of any such Letter of Credit to comply fully with any conditions
required in order to draw upon such Letter of Credit; (iv) errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, cable, telegraph, telex or otherwise, whether or not they be in
cipher; (v) errors in interpretation of technical terms; (vi) any
loss or delay in the transmission or otherwise of any document required in
order to make a drawing under any such Letter of Credit or of the proceeds
thereof; (vii) the misapplication by the beneficiary of any such Letter of
Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any
consequences arising from causes beyond the control of Issuing Bank, including
any Governmental Acts; none of the above shall affect or impair, or prevent the
vesting of, any of Issuing Bank’s rights or powers hereunder.  Without limiting the foregoing and in
furtherance thereof, any action taken or omitted by Issuing Bank under or in
connection with the Letters of Credit or any documents and certificates
delivered thereunder, if taken or omitted in good faith, shall not give rise to
any liability on the part of Issuing Bank to Borrower.  Notwithstanding anything to the contrary
contained in this Section 2.4(c), Borrower shall retain any and all rights
it may have against Issuing Bank for any liability arising solely out of the
gross negligence, bad faith or willful misconduct of Issuing Bank.

 

(d)   Reimbursement
by Borrower of Amounts Drawn or Paid Under Letters of Credit.  In the event Issuing Bank has determined to
honor a drawing under a Letter of Credit, it

 

44

 

shall immediately notify Borrower and Administrative Agent,
and Borrower shall reimburse Issuing Bank on or before the Business Day
immediately following the date on which such drawing is honored (the “Reimbursement Date”) in an amount in Dollars and in same day funds equal to the
amount of such honored drawing; provided, anything contained herein to
the contrary notwithstanding, (i) unless Borrower shall have notified
Administrative Agent and Issuing Bank prior to 12:00 (noon) (New York City
time) on the date such drawing is honored that Borrower intends to reimburse
Issuing Bank for the amount of such honored drawing with funds other than the
proceeds of Revolving Loans, Borrower shall be deemed to have given a timely
Funding Notice to Administrative Agent requesting Lenders with Revolving
Commitments to make Revolving Loans that are Base Rate Loans on the
Reimbursement Date in an amount in Dollars equal to the amount of such honored
drawing, and (ii) subject to satisfaction or waiver of the conditions specified
in Section 3.2, Lenders with Revolving Commitments shall, on the
Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount
of such honored drawing, the proceeds of which shall be applied directly by
Administrative Agent to reimburse Issuing Bank for the amount of such honored
drawing; and provided  further, if for any reason proceeds of
Revolving Loans are not received by Issuing Bank on the Reimbursement Date in
an amount equal to the amount of such honored drawing, Borrower shall reimburse
Issuing Bank, on demand, in an amount in same day funds equal to the excess of
the amount of such honored drawing over the aggregate amount of such Revolving
Loans, if any, which are so received. 
Nothing in this Section 2.4(d) shall be deemed to relieve any
Lender with a Revolving Commitment from its obligation to make Revolving Loans
on the terms and conditions set forth herein, and Borrower shall retain any and
all rights it may have against any such Lender resulting from the failure of such
Lender to make such Revolving Loans under this Section 2.4(d).

 

(e)   Lenders’
Purchase of Participations in Letters of Credit.  Immediately upon the issuance of each Letter
of Credit, each Lender having a Revolving Commitment shall be deemed to have
purchased, and hereby agrees to irrevocably purchase, from Issuing Bank a
participation in such Letter of Credit and any drawings honored thereunder in
an amount equal to such Lender’s Pro Rata Share (with respect to the Revolving
Commitments) of the maximum amount which is or at any time may become available
to be drawn thereunder.  In the event
that Borrower shall fail for any reason to reimburse Issuing Bank as provided
in Section 2.4(d), Issuing Bank shall promptly notify each Lender with a
Revolving Commitment of the unreimbursed amount of such honored drawing and of
such Lender’s respective participation therein based on such Lender’s Pro Rata
Share of the Revolving Commitments.  Each
Lender with a Revolving Commitment shall make available to Issuing Bank an
amount equal to its respective participation, in Dollars and in same day funds,
at the office of Issuing Bank specified in such notice, not later than 12:00 p.m.
(New York City time) on the first business day (under the laws of the
jurisdiction in which such office of Issuing Bank is located) after the date
notified by Issuing Bank.  In the event
that any Lender with a Revolving Commitment fails to make available to Issuing
Bank on such business day the amount of such Lender’s participation in such
Letter of Credit as provided in this Section 2.4(e), Issuing Bank shall be
entitled to recover such amount on demand from such Lender together with
interest thereon for three Business Days at the rate customarily used by
Issuing Bank for the correction of errors among banks and thereafter at the
Base Rate.  Nothing in this Section 2.4(e) shall
be deemed to prejudice the right of any Lender with a Revolving Commitment to
recover from Issuing Bank any amounts made available by such Lender to Issuing
Bank pursuant to this Section in the event that the payment

 

45

 

with respect to a Letter of Credit in respect of which
payment was made by such Lender constituted gross negligence or willful
misconduct on the part of Issuing Bank. 
In the event Issuing Bank shall have been reimbursed by other Lenders
pursuant to this Section 2.4(e) for all or any portion of any drawing
honored by Issuing Bank under a Letter of Credit, such Issuing Bank shall
distribute to each Lender which has paid all amounts payable by it under this Section 2.4(e) with
respect to such honored drawing such Lender’s Pro Rata Share of all payments
subsequently received by Issuing Bank from Borrower in reimbursement of such
honored drawing when such payments are received.  Any such distribution shall be made to a
Lender at its primary address set forth below its name on Appendix B or at such
other address as such Lender may request.

 

(f)   Obligations Absolute. 
The obligation of Borrower to reimburse Issuing Bank for drawings honored under the Letters of Credit issued by it
and to repay any Revolving Loans made by Lenders pursuant to Section 2.4(d) and
the obligations of Lenders under Section 2.4(e) shall be
unconditional and irrevocable and shall be paid strictly in accordance with the
terms hereof under all circumstances including any of the following
circumstances: (i) any lack of validity or enforceability of any Letter of
Credit; (ii) the existence of any claim, set-off, defense or other right
which Borrower or any Lender may have at any time against a beneficiary or any
transferee of any Letter of Credit (or any Persons for whom any such transferee
may be acting), Issuing Bank, any Lender or any other Person or, in the case of
a Lender, against Borrower, whether in connection herewith, the transactions
contemplated herein or any unrelated transaction (including any underlying
transaction between Borrower or one of its Subsidiaries and the beneficiary for
which any Letter of Credit was procured); (iii) any draft or other
document presented under any Letter of Credit proving to be forged, fraudulent,
invalid or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect; (iv) payment by Issuing Bank under any Letter
of Credit against presentation of a draft or other document which does not
substantially comply with the terms of such Letter of Credit; (v) any
adverse change in the business, operations, assets or financial condition of
Holdings or any of its Subsidiaries; (vi) any breach hereof or any other
Credit Document by any party thereto; (vii) any other circumstance or
happening whatsoever, whether or not similar to any of the foregoing; or (viii) the
fact that an Event of Default or a Default shall have occurred and be
continuing; provided, in each case, that payment by Issuing Bank under
the applicable Letter of Credit shall not have constituted gross negligence,
bad faith or willful misconduct of Issuing Bank under the circumstances in
question.

 

(g)   Indemnification.  Without duplication of any obligation of
Borrower under Section 10.2 or 10.3, in addition to amounts payable as
provided herein, Borrower hereby agrees to protect, indemnify, pay and save
harmless Issuing Bank from and against any and all claims, demands,
liabilities, damages, losses, reasonable out-of-pocket costs, charges and
reasonable out-of-pocket expenses (including reasonable fees, reasonable
out-of-pocket expenses and disbursements of one counsel) which Issuing Bank may
incur or be subject to as a consequence, direct or indirect, of (i) the
issuance of any Letter of Credit by Issuing Bank, other than as a result of (1) the
gross negligence, bad faith or willful misconduct of Issuing Bank or (2) the
wrongful dishonor by Issuing Bank of a proper demand for payment made under any
Letter of Credit issued by it, or (ii) the failure of Issuing Bank to
honor a drawing under any such Letter of Credit as a result of any Governmental
Act.

 

46

 

(h)   Replacement
or Termination of an Issuing Bank. 
Any Issuing Bank may be replaced at any time by written agreement among
Borrower, Administrative Agent, the replaced Issuing Bank and the successor
Issuing Bank.  An Issuing Bank’s
obligations to issue additional Letters of Credit hereunder may be terminated
at any time by written agreement among Borrower, Administrative Agent and such
Issuing Bank; provided that after giving effect thereto there is at
least one remaining Issuing Bank obligated to issue Letters of Credit.  Administrative Agent shall notify Lenders of
any such replacement or termination of an Issuing Bank.  At the time any such replacement or
termination shall become effective, Borrower shall pay all unpaid fees accrued
for the account of the replaced or terminated Issuing Bank pursuant to Section 2.11(b).  From and after the effective date of any such
replacement, the successor Issuing Bank shall have all the rights and
obligations of the replaced Issuing Bank under this Agreement with respect to
Letters of Credit to be issued thereafter. 
After the replacement or termination of an Issuing Bank hereunder, the
replaced or terminated Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this
Agreement with respect to Letters of Credit issued by it prior to such
replacement or termination, but shall not be required to issue additional
Letters of Credit.

 

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

 

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

 

2.5.   Pro Rata Shares; Availability of Funds.

 

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

 

(b)   Availability
of Funds.  Unless Administrative
Agent shall have been notified by any Lender prior to the applicable Credit
Date that such Lender does not intend to make available to Administrative Agent
the amount of such Lender’s Loan requested on such Credit Date, Administrative
Agent may assume that such Lender has made such amount available to

 

47

 

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

 

2.6.   Use of Proceeds.  The proceeds of the Term Loans
and the Revolving Loans, if any, made on the Closing Date, together with the
proceeds of the loans to be made under the Second Lien Credit Agreement, shall be
applied by Borrower to fund (a) in
part, the Acquisition pursuant to the Acquisition Agreement, including the
refinancing or retiring of certain existing Indebtedness for borrowed money of
the Acquired Business and (b) the payment of fees, commissions and
expenses in connection therewith and in connection with the financing of the
foregoing, including fees under Section 2.11(d).  The proceeds of the
Revolving Loans, Swing Line Loans and Letters of Credit made after the Closing
Date shall be applied by Borrower for working capital and general corporate
purposes of Holdings and its Subsidiaries, including capital expenditures and
Permitted Acquisitions.  No portion of
the proceeds of any Credit Extension shall be used in any manner that causes or
might cause such Credit Extension or the application of such proceeds to
violate Regulation T, Regulation U or Regulation X of the Board
of Governors or any other regulation thereof or to violate the Exchange Act.

 

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

 

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

 

(b)   Register.  Administrative Agent (or its agent or
sub-agent appointed by it) shall maintain at the Principal Office a register
for the recordation of the names and addresses of Lenders and the Revolving
Commitments and Loans of each Lender from time to time (the “Register”).  The Register shall be available for
inspection by Borrower or any Lender (with respect to any entry relating to
such Lender’s Loans) at any reasonable time and from time to

 

48

 

time upon reasonable prior notice.  Administrative Agent shall record, or shall
cause to be recorded, in the Register the Revolving Commitments and the Loans
in accordance with the provisions of Section 10.6, and each repayment or
prepayment in respect of the principal amount of the Loans, and any such
recordation shall be conclusive and binding on Borrower and each Lender, absent
manifest error; provided, failure to make any such recordation, or any
error in such recordation, shall not affect any Lender’s Revolving Commitments
or Borrower’s Obligations in respect of any Loan.  Borrower hereby designates GSCP to serve as
Borrower’s agent solely for purposes of maintaining the Register as provided in
this Section 2.7, and Borrower hereby agrees that, to the extent GSCP
serves in such capacity, GSCP and its officers, directors, employees, agents,
sub-agents and affiliates shall constitute “Indemnitees.”

 

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

 

2.8.   Interest on Loans.

 

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

 

(i)   in the case
of Tranche A Term Loans and Revolving Loans:

 

(1) if a Base Rate
Loan, at the Base Rate plus the Applicable Margin; or

(2) if a Eurodollar
Rate Loan, at the Adjusted Eurodollar Rate plus the Applicable Margin;

 

(ii)   in the case
of Committed Swing Line Loans, at the Base Rate plus the Applicable Margin;

 

(iii)   in the
case of Uncommitted Swing Line Loans, at such rate per annum as shall be
separately agreed by the Borrower and Uncommitted Swing Line Lender; provided
that such rate shall not exceed the rate applicable to Committed Swing Lien
Loans as provided in clause (ii) above; and

 

(iv)   in the case
of Tranche B Term Loans:

 

(1) if a Base Rate
Loan, at the Base Rate plus 2.50% per annum; or

 

(2) if a Eurodollar
Rate Loan, at the Adjusted Eurodollar Rate plus 3.50% per annum.

 

49

 

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

 

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

 

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

 

(e)   Except as
otherwise set forth herein, interest on each Loan (i) shall accrue on a
daily basis and shall be payable in arrears on each Interest Payment Date with
respect to interest accrued on and to each such payment date; (ii) shall
accrue on a daily basis and shall be

 

50

 

payable in arrears upon any prepayment of that Loan, whether
voluntary or mandatory, to the extent accrued on the amount being prepaid; and (iii) shall
accrue on a daily basis and shall be payable in arrears at maturity of the
Loans, including final maturity of the Loans; provided, however, with
respect to any voluntary prepayment of a Base Rate Loan, accrued interest shall
instead be payable on the applicable Interest Payment Date.

 

(f)   Borrower
agrees to pay to Issuing Bank, with respect to drawings honored under any
Letter of Credit, interest on the amount paid by Issuing Bank in respect of
each such honored drawing from the date such drawing is honored to but
excluding the date such amount is reimbursed by or on behalf of Borrower at a
rate equal to (i) for the period from the date such drawing is honored to
but excluding the applicable Reimbursement Date, the rate of interest otherwise
payable hereunder with respect to Revolving Loans that are Base Rate Loans, and
(ii) thereafter, a rate which is 2% per annum in excess of the rate of
interest otherwise payable hereunder with respect to Revolving Loans that are
Base Rate Loans.

 

(g)   Interest
payable pursuant to Section 2.8(f) shall be computed on the basis of
a 365/366-day year for the actual number of days elapsed in the period during
which it accrues, and shall be payable on demand or, if no demand is made, on
the date on which the related drawing under a Letter of Credit is reimbursed in
full.  Promptly upon receipt by Issuing
Bank of any payment of interest pursuant to Section 2.8(f), Issuing Bank
shall distribute to each Lender, out of the interest received by Issuing Bank
in respect of the period from the date such drawing is honored to but excluding
the date on which Issuing Bank is reimbursed for the amount of such drawing
(including any such reimbursement out of the proceeds of any Revolving Loans),
the amount that such Lender would have been entitled to receive in respect of
the letter of credit fee that would have been payable in respect of such Letter
of Credit for such period if no drawing had been honored under such Letter of
Credit.  In the event Issuing Bank shall
have been reimbursed by Lenders for all or any portion of such honored drawing,
Issuing Bank shall distribute to each Lender which has paid all amounts payable
by it under Section 2.4(e) with respect to such honored drawing such
Lender’s Pro Rata Share of any interest received by Issuing Bank in respect of
that portion of such honored drawing so reimbursed by Lenders for the period
from the date on which Issuing Bank was so reimbursed by Lenders to but
excluding the date on which such portion of such honored drawing is reimbursed
by Borrower.

 

2.9.   Conversion/Continuation.

 

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

 

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

 

51

 

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

 

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

 

2.10.   Default Interest.  Upon the occurrence and during the
continuance of an Event of Default under Section 8.1(a), the overdue
principal amount of all Loans outstanding and, to the extent permitted by
applicable law, any overdue interest payments on the Loans or any overdue fees
or other overdue amounts owed hereunder, shall thereafter bear interest (including
post-petition interest in any proceeding under the Bankruptcy Code or other
applicable bankruptcy laws) payable on demand at a rate that is 2% per annum in
excess of the interest rate otherwise payable hereunder with respect to the
applicable Loans (or, in the case of any such overdue fees and other overdue
amounts, at a rate which is 2% per annum in excess of the interest rate
otherwise payable hereunder for Base Rate Loans that are Revolving Loans); provided,
in the case of Eurodollar Rate Loans, upon the expiration of the Interest
Period in effect at the time any such increase in interest rate is effective
such Eurodollar Rate Loans shall thereupon become Base Rate Loans and shall
thereafter bear interest payable upon demand at a rate which is 2% per annum in
excess of the interest rate otherwise payable hereunder for Base Rate
Loans.  Payment or acceptance of the
increased rates of interest provided for in this Section 2.10 is not a
permitted alternative to timely payment and shall not constitute a waiver of
any Event of Default or otherwise prejudice or limit any rights or remedies of
Administrative Agent or any Lender.

 

2.11.   Fees.

 

(a)   Borrower
agrees to pay to Lenders having Revolving Exposure:

 

(i)   commitment
fees equal to (1) the average of the daily difference between (a) the
Revolving Commitments and (b) the aggregate principal amount of (x) all
outstanding Revolving Loans and Committed Swing Line Loans plus (y) the
Letter of Credit Usage, times (2) the Applicable Revolving Commitment Fee
Percentage; and

 

(ii)   letter of
credit fees equal to (1) the Applicable Margin for Revolving Loans that
are Eurodollar Rate Loans, times (2) the average aggregate daily maximum
amount available to be drawn under all such Letters of Credit (regardless of
whether any conditions for drawing could then be met and determined as of the
close of business on any date of determination).

 

52

 

All fees referred to in this Section 2.11(a) shall
be paid to Administrative Agent at its Principal Office and upon receipt, Administrative
Agent shall promptly distribute to each Lender its Pro Rata Share thereof.

 

(b)   Borrower
agrees to pay directly to Issuing Bank, for its own account, the following
fees:

 

(i)   a fronting
fee equal to such percentage as may be agreed between Borrower and the Issuing
Bank from time to time, per annum, times the average aggregate daily maximum
amount available to be drawn under all Letters of Credit (determined as of the
close of business on any date of determination); and

 

(ii)   such
documentary and processing charges for any issuance, amendment, transfer or
payment of a Letter of Credit as are in accordance with Issuing Bank’s standard
schedule for such charges and as in effect at the time of such issuance,
amendment, transfer or payment, as the case may be.

 

(c)   All fees
referred to in Section 2.11(a) and 2.11(b)(i) shall be
calculated on the basis of a 360-day year and the actual number of days elapsed
and shall be payable quarterly in arrears on March 31, June 30, September 30
and December 31 of each year during the Revolving Commitment Period,
commencing on the first such date to occur after the Closing Date, and on the
Revolving Commitment Termination Date. 
All fees referred to in Section 2.11(b)(ii) shall be payable
within 10 days after demand.

 

(d)   Borrower
agrees to pay on the Closing Date (i) to each Lender with a Revolving
Commitment who is a party to this Agreement as a Lender on the Closing Date, as
fee compensation for providing a Revolving Commitment on the Closing Date, a
closing fee in an amount equal to 1.91% of the principal amount of such Lender’s
Revolving Commitment, (ii) to each Lender with a Tranche A Term Loan
Commitment who is a party to this Agreement as a Lender on the Closing Date, as
fee compensation for the funding of such Lender’s Tranche A Term Loans as part
of the initial funding to be made on the Closing Date, a closing fee in an
amount equal to 1.91% of the stated principal amount of such Lender’s Tranche A
Term Loans and (iii) to each Lender with a Tranche B Term Loan Commitment
who is a party to this Agreement as a Lender on the Closing Date, as fee
compensation for the funding of such Lender’s Tranche B Term Loans as part of
the initial funding to be made on the Closing Date, a closing fee in an amount
equal to 5.00% of the stated principal amount of such Lender’s Tranche B Term
Loans, in each case, payable to the applicable Lender from, at Borrower’s
option, the proceeds of the Term Loans as and when funded on the Closing Date,
the proceeds of Revolving Loans made on the Closing Date and/or the proceeds of
loans under the Second Lien Credit Agreement made on the Closing Date.  Such closing fees will be in all respects
fully earned, due and payable on the Closing Date and non-refundable and
non-creditable thereafter.

 

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

 

2.12.   Scheduled Payments/Commitment Reductions.  The principal amounts of the Term Loans shall
be repaid in consecutive quarterly installments and at final maturity (each
such

 

53

 

payment,
an “Installment”) in the aggregate
amounts set forth below on the four quarterly scheduled Interest Payment Dates
applicable to Term Loans and on the applicable Term Loan Maturity Date,
commencing June 30, 2008:

 

	
  Amortization Date

  	
   

  	
  Tranche A Term Loan

  Installments

  	
   

  	
  Tranche B Term Loan

  Installments

  	
   

  
	
  June 30,
  2008

  	
   

  	
  $

  	
  1,562,500

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  September 30,
  2008

  	
   

  	
  $

  	
  1,562,500

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  December 31,
  2008

  	
   

  	
  $

  	
  1,562,500

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  March 31,
  2009

  	
   

  	
  $

  	
  1,562,500

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  June 30,
  2009

  	
   

  	
  $

  	
  3,125,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  September 30,
  2009

  	
   

  	
  $

  	
  3,125,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  December 31,
  2009

  	
   

  	
  $

  	
  3,125,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  March 31,
  2010

  	
   

  	
  $

  	
  3,125,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  June 30,
  2010

  	
   

  	
  $

  	
  6,250,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  September 30,
  2010

  	
   

  	
  $

  	
  6,250,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  December 31,
  2010

  	
   

  	
  $

  	
  6,250,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  March 31,
  2011

  	
   

  	
  $

  	
  6,250,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  June 30,
  2011

  	
   

  	
  $

  	
  12,500,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  September 30,
  2011

  	
   

  	
  $

  	
  12,500,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  December 31,
  2011

  	
   

  	
  $

  	
  12,500,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  March 31,
  2012

  	
   

  	
  $

  	
  12,500,000

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  June 30,
  2012

  	
   

  	
  $

  	
  39,062,500

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  September 30,
  2012

  	
   

  	
  $

  	
  39,062,500

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  December 31,
  2012

  	
   

  	
  $

  	
  39,062,500

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  Tranche A
  Maturity Date

  	
   

  	
  $

  	
  39,062,500

  	
   

  	
  N/A

  	
   

  
	
  March 31,
  2013

  	
   

  	
  N/A

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  June 30,
  2013

  	
   

  	
  N/A

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  September 30,
  2013

  	
   

  	
  N/A

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  December 31,
  2013

  	
   

  	
  N/A

  	
   

  	
  $

  	
  1,187,500

  	
   

  
	
  Tranche B
  Maturity Date

  	
   

  	
  N/A

  	
   

  	
  $

  	
  447,687,500

  	
   

  

 

Notwithstanding the foregoing, (x) such
Installments shall be reduced in connection with any voluntary or mandatory
prepayments of the Tranche A Term Loans or the Tranche B Term Loans,
as the case may be, in accordance with Sections 2.13, 2.14 and 2.15, as
applicable; and (y) the Tranche A Term Loans and the Tranche B
Term Loans, together with all other amounts

 

54

 

owed hereunder with respect thereto, shall, in any
event, be paid in full no later than the Tranche A Term Loan Maturity Date
and the Tranche B Term Loan Maturity Date, respectively.

 

2.13.  
Voluntary Prepayments/Commitment Reductions.

 

(a)   Voluntary
Prepayments.

 

(i)   Any time and
from time to time:

 

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

 

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

 

(3)                                  with respect to Swing Line Loans, Borrower may prepay any
such Loans on any Business Day in whole or in part in an aggregate minimum
amount of $500,000, and in integral multiples of $100,000 in excess of that
amount.

 

(ii)   All such
prepayments shall be made:

 

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

 

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

 

(3)                                  upon written or telephonic notice on the date of prepayment,
in the case of Swing Line Loans;

 

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

 

55

 

(b)   Voluntary
Commitment Reductions.

 

(i)   Borrower
may, upon not less than three Business Days’ prior written or telephonic notice
confirmed in writing to Administrative Agent (which original written or
telephonic notice Administrative Agent will promptly transmit by telefacsimile
or telephone to each applicable Lender), at any time and from time to time
terminate in whole or permanently reduce in part, without premium or penalty,
the Revolving Commitments in an amount up to the amount by which the Revolving
Commitments exceed the Total Utilization of Revolving Commitments at the time
of such proposed termination or reduction; provided, any such partial
reduction of the Revolving Commitments shall be in an aggregate minimum amount
of $5,000,000 and integral multiples of $1,000,000 in excess of that amount.

 

(ii)   Borrower’s
notice to Administrative Agent shall designate the date (which shall be a
Business Day) of such termination or reduction and the amount of any partial
reduction, and such termination or reduction of the Revolving Commitments shall
be effective on the date specified in Borrower’s notice and shall reduce the
Revolving Commitment of each Lender proportionately to its Pro Rata Share
thereof; provided that any such notice delivered by Borrower may state
that such notice is conditioned upon the effectiveness of other financing
arrangements or the consummation of other transactions, in which case such
notice may be revoked by Borrower (by notice to the Administrative Agent on or
prior to the specified effective date) if such condition is not satisfied.

 

(c)   Tranche B
Term Loan Call Protection.  In the
event all or any portion of the Tranche B Term Loans are repaid pursuant to Section 2.13(a),
2.14(a) or 2.14(c) prior to the second anniversary of the Closing
Date, such repayments will be made at (i) 102.0% of the amount repaid if
such repayment occurs prior to the first anniversary of the Closing Date and (ii) 101.0%
of the amount repaid if such repayment occurs on or after the first anniversary
of the Closing Date and prior to the second anniversary of the Closing Date.

 

2.14.                     Mandatory
Prepayments/Commitment Reductions.

 

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

 

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

 

56

 

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

 

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

 

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

 

(e)   Revolving
Loans and Swing Line Loans.  Borrower
shall from time to time prepay first,
the Swing Line Loans, and second,
the Revolving Loans to the extent necessary so that the Total Utilization of
Revolving Commitments shall not at any time exceed the Revolving Commitments
then in effect.

 

57

 

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

 

2.15.   Application of Prepayments/Reductions.

 

(a)   Application
of Voluntary Prepayments by Type of Loans. 
Any prepayment of any Loan pursuant to Section 2.13(a) shall
be applied as specified by Borrower in the applicable notice of prepayment; provided,
in the event Borrower fails to specify the Loans to which any such prepayment
shall be applied, such prepayment shall be applied as follows:

 

first, to repay outstanding Swing Line Loans to the full
extent thereof;

 

second, to repay outstanding Revolving Loans to
the full extent thereof; and

 

third, to prepay Term Loans on a pro rata basis (in
accordance with the respective outstanding principal amounts thereof) and
further applied in direct order of maturity to the Installments due within the
following 12 months after such prepayment and thereafter, applied on a pro rata
basis to reduce the scheduled remaining scheduled Installments of principal of
the Tranche A Term Loans and Tranche B Term Loans.

 

(b)   Application
of Mandatory Prepayments by Type of Loans. 
Any amount required to be paid pursuant to Sections 2.14(a) through
2.14(d) shall be applied as follows:

 

first, to prepay Term Loans on a pro rata basis (in
accordance with the respective outstanding principal amounts thereof) and
further applied in direct order of maturity to the Installments due
within the following 12 months after such prepayment and thereafter, applied on
a pro rata basis to the remaining scheduled Installments of principal of the Tranche A Term
Loans and Tranche B Term Loans;

 

second, to prepay the Swing Line Loans to the
full extent thereof;

 

third, to prepay the Revolving Loans to the full extent
thereof;

 

fourth, to prepay outstanding reimbursement
obligations with respect to Letters of Credit;

 

fifth, if an Event of Default has occurred and is
continuing, to cash collateralize Letters of Credit; and

 

58

 

sixth, to repay loans under the Second Lien Credit
Agreement in accordance with the terms thereof.

 

(c)   Waivable
Mandatory Prepayment.  Anything
contained herein to the contrary notwithstanding, in the event Borrower is
required to make any mandatory prepayment (a “Waivable
Mandatory Prepayment”) of the
Tranche B Term Loans, not less than three Business Days prior to the date (the “Required Prepayment Date”) on which Borrower is required to make such Waivable
Mandatory Prepayment, Borrower shall notify Administrative Agent of the amount
of such prepayment, and Administrative Agent will promptly thereafter notify
each Lender holding an outstanding Tranche B Term Loan of the amount of
such Lender’s Pro Rata Share of such Waivable Mandatory Prepayment and such
Lender’s option to refuse such amount. 
Each such Lender may exercise such option by giving written notice to
Borrower and Administrative Agent of its election to do so on or before 12:00
noon (New York City time) on the first Business Day prior to the Required
Prepayment Date (it being understood that any Lender which does not notify
Borrower and Administrative Agent of its election to exercise such option on or
before 12:00 noon (New York City time) on the first Business Day prior to the
Required Prepayment Date shall be deemed to have elected, as of such date, not
to exercise such option).  On the Required
Prepayment Date, Borrower shall pay to Administrative Agent the amount of the
Waivable Mandatory Prepayment, which amount shall be applied (i) in an
amount equal to that portion of the Waivable Mandatory Prepayment payable to
those Lenders that have elected not to exercise such option, to prepay the
Tranche B Term Loans of such Lenders (which prepayment shall be applied to
the scheduled Installments of principal of the Tranche B Term Loans in
accordance with Section 2.15(b)), and (ii) in an amount equal to that
portion of the Waivable Mandatory Prepayment otherwise payable to those Lenders
that have elected to exercise such option, to prepay the Tranche A Term
Loans (which prepayment shall be further applied to the scheduled Installments
of principal of the Tranche A Term Loans in accordance with Section 2.15(b));
provided that if no Tranche A Term Loans are outstanding at the time of
such prepayment, the amount equal to that portion of the Waivable Mandatory
Prepayment that would have been paid to the Lenders with Tranche A Term Loans
shall be applied first, in accordance with clauses
second through fifth
of Section 2.15(b) and second, to
repay loans under the Second Lien Credit Agreement in accordance with the terms
thereof; provided further, that in the case of prepayments under Section 2.14(d),
if the lenders under the Second Lien Credit Agreement exercise their option
under Section 2.15(b) of the Second Lien Credit Agreement to waive
the repayment of the loans under the Second Lien Credit Agreement with such
portion of the amount of the Waivable Mandatory Prepayment, such amount shall
be applied to the Tranche B Term Loans and Lenders holding outstanding Tranche
B Term Loans shall not have the right to waive such repayments; provided
further, that in the case of prepayments under Section 2.14(a),
Borrower shall have the option, upon notice to Administrative Agent no later
than 5:00 p.m. (New York City time) on the first Business Day prior to the
Required Prepayment Date, to reinvest that portion of the amount of the
Waivable Mandatory Prepayment as to which the Lenders holding Tranche B Term
Loans have elected to exercise the option to waive set forth above within the
later of (x) three months after the Required Prepayment Date and (y) the
latest date permitted for reinvestment of Net Asset Sale Proceeds under Section 2.14(a).

 

(d)   Application
of Prepayments of Loans to Base Rate Loans and Eurodollar Rate Loans.  Considering each Class of Loans being
prepaid separately, any prepayment thereof shall be applied first to Base Rate
Loans to the full extent thereof before application to

 

59

 

Eurodollar Rate Loans, in each case in a manner which
minimizes the amount of any payments required to be made by Borrower pursuant
to Section 2.18(c).

 

2.16.   General Provisions Regarding Payments.

 

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

 

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

 

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

 

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

 

(e)   Subject to
the provisos set forth in the definition of “Interest Period” as they may apply
to Revolving Loans, whenever any payment to be made hereunder with respect to
any Loan shall be stated to be due on a day that is not a Business Day, such
payment shall be made on the next succeeding Business Day and, with respect to
Revolving Loans only, such extension of time shall be included in the
computation of the payment of interest hereunder or of the Revolving Commitment
fees hereunder.

 

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

 

(g)  
Administrative Agent shall deem any payment by or on behalf of Borrower
hereunder that is not made in same day funds prior to 2:00 p.m. (New York
City time) to be a non-conforming payment. 
Any such payment shall not be deemed to have been received by

 

60

 

Administrative Agent until the later of (i) the time
such funds become available funds, and (ii) the applicable next Business
Day.  Administrative Agent shall give
prompt telephonic notice to Borrower and each applicable Lender (confirmed in
writing) if any payment is non-conforming. 
Any non-conforming payment may constitute or become a Default or Event
of Default in accordance with the terms of Section 8.1(a).  Interest shall continue to accrue on any
principal as to which a non-conforming payment is made until such funds become
available funds (but in no event less than the period from the date of such
payment to the next succeeding applicable Business Day) at the rate determined
pursuant to Section 2.10 from the date such amount was due and payable
until the date such amount is paid in full.

 

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

 

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

 

2.18.   Making or Maintaining Eurodollar Rate Loans.

 

(a)   Inability
to Determine Applicable Interest Rate. 
In the event that Administrative Agent shall have determined (which
determination shall be final and conclusive and binding upon all parties
hereto), on any Interest Rate Determination Date with respect to any

 

61

 

Eurodollar Rate Loans, that by reason of circumstances
affecting the London interbank market adequate and fair means do not exist for
ascertaining the interest rate applicable to such Loans on the basis provided
for in the definition of Adjusted Eurodollar Rate, Administrative Agent shall
on such date give notice (by telefacsimile or by telephone confirmed in
writing) to Borrower and each Lender of such determination, whereupon (i) no
Loans may be made as, or converted to, Eurodollar Rate Loans until such time as
Administrative Agent notifies Borrower and Lenders that the circumstances
giving rise to such notice no longer exist, and (ii) any Funding Notice or
Conversion/Continuation Notice given by Borrower with respect to the Loans in
respect of which such determination was made shall be deemed to be rescinded by
Borrower.

 

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

 

(c)   Compensation
for Breakage or Non-Commencement of Interest Periods.  Borrower shall compensate each Lender, upon
written request by such Lender (which request

 

62

 

shall set forth the basis for requesting such amounts), for
all reasonable losses, expenses and liabilities (including any interest paid by
such Lender to lenders of funds borrowed by it to make or carry its Eurodollar
Rate Loans and any loss, expense or liability sustained by such Lender in
connection with the liquidation or re-employment of such funds but excluding
loss of anticipated profits) which such Lender may sustain: (i) if for any
reason (other than a default by such Lender) a borrowing of any Eurodollar Rate
Loan does not occur on a date specified therefor in a Funding Notice or a
telephonic request for borrowing, or a conversion to or continuation of any
Eurodollar Rate Loan does not occur on a date specified therefor in a
Conversion/Continuation Notice or a telephonic request for conversion or
continuation; (ii) if any prepayment or other principal payment of, or any
conversion of, any of its Eurodollar Rate Loans occurs on a date prior to the
last day of an Interest Period applicable to that Loan; or (iii) if any
prepayment of any of its Eurodollar Rate Loans is not made on any date
specified in a notice of prepayment given by Borrower.

 

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

 

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

 

2.19.   Increased
Costs; Capital Adequacy.

 

(a)   Compensation
For Increased Costs and Taxes. 
Subject to the provisions of Section 2.20 (which shall be
controlling with respect to the matters covered thereby), in the event that any
Lender (which term shall include Issuing Bank for purposes of this Section 2.19(a))
shall determine (which determination shall, absent manifest error, be final and
conclusive and binding upon all parties hereto) that any law, treaty or
governmental rule, regulation or order, or any change therein or in the
interpretation, administration or application thereof (including the introduction
of any new law, treaty or governmental rule, regulation or order), or any
determination of a court or Governmental Authority, in each case that becomes
effective after the date hereof, or compliance by such Lender with any
guideline, request or directive issued or made after the date hereof by any
central bank or other governmental or quasi-governmental authority (whether or
not having the force of law): (i) subjects such Lender (or its applicable
lending office) to any additional Tax or changes the basis of taxation of
payments to the Lender (other than, in each case, any Tax on the overall net
income of such Lender) with respect to this Agreement or any of the other
Credit Documents or any of its obligations hereunder or thereunder or any
payments to such Lender (or its applicable lending office) of principal,

 

63

 

interest, fees or any other amount payable hereunder; (ii) imposes,
modifies or holds applicable any reserve (including any marginal, emergency,
supplemental, special or other reserve), special deposit, compulsory loan, FDIC
insurance or similar requirement against assets held by, or deposits or other
liabilities in or for the account of, or advances or loans by, or other credit
extended by, or any other acquisition of funds by, any office of such Lender
(other than any such reserve or other requirements with respect to Eurodollar
Rate Loans that are reflected in the definition of Adjusted Eurodollar Rate);
or (iii) imposes any other condition (other than with respect to a Tax
matter) on or affecting such Lender (or its applicable lending office) or its
obligations hereunder or the London interbank market; and the result of any of
the foregoing is to increase the cost to such Lender of agreeing to make,
making or maintaining Loans hereunder or to reduce any amount received or
receivable by such Lender (or its applicable lending office) with respect
thereto; then, in any such case, Borrower shall pay within 10 days to such
Lender, upon receipt of the statement referred to in the next sentence, such
additional amount or amounts (in the form of an increased rate of, or a
different method of calculating, interest or otherwise as such Lender in its
sole discretion shall determine) as may be necessary to compensate such Lender
for any such increased cost or reduction in amounts received or receivable
hereunder.  Such Lender shall deliver to
Borrower (with a copy to Administrative Agent) a written statement, setting forth
in reasonable detail the basis for calculating the additional amounts owed to
such Lender under this Section 2.19(a), which statement shall be
conclusive and binding upon all parties hereto absent manifest error.

 

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

 

64

 

detail the basis for calculating the additional amounts owed
to Lender under this Section 2.19(b), which statement shall be conclusive
and binding upon all parties hereto absent manifest error.

 

2.20.   Taxes; Withholding, etc.

 

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

 

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

 

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

 

(d)   Indemnification
by Borrower.  Borrower shall indemnify,
without duplication, Administrative Agent and each Lender within ten days after
written demand therefor, for the full amount of any Taxes (other than a Tax on
the overall net income of any Lender) or Other Taxes paid by Administrative
Agent or such Lender on or with respect to any payment by or on account of any
obligation of Borrower hereunder and any penalties, interest 

 

65

 

and reasonable expenses arising therefrom or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority.  A certificate stating the amount of such
payment or liability and setting forth in reasonable detail the calculation
thereof delivered to Borrower by a Lender (with a copy to Administrative
Agent), or by Administrative Agent on its own behalf or on behalf of a Lender
shall be conclusive absent manifest error.

 

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

 

66

 

to such Lender under the Credit Documents, or notify
Administrative Agent and Borrower of its inability to deliver any such forms,
certificates or other evidence.  Borrower
shall not be required to indemnify or pay any additional amount to
Administrative Agent or any Lender under Section 2.20(b)(iii) if such
Lender shall have failed (1) to deliver the forms, certificates or other
evidence referred to in the first or second sentence of this Section 2.20(e),
or (2) to notify Administrative Agent and Borrower of its inability to
deliver any such forms, certificates or other evidence, as the case may be; provided,
if such Lender shall have satisfied the requirements of the first or second
sentence of this Section 2.20(e) on the Closing Date or on the date
of the Assignment Agreement pursuant to which it became a Lender, as
applicable, nothing in this last sentence of Section 2.20(e) shall
relieve Borrower of its obligation to pay any additional amounts pursuant this Section 2.20
in the event that, as a result of any change in any applicable law, treaty or
governmental rule, regulation or order, or any change in the interpretation,
administration or application thereof, such Lender is no longer properly
entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Lender is not subject to withholding as
described herein.  Notwithstanding any
other provision of this paragraph, a Lender shall not be required to deliver
any form pursuant to this paragraph that such Lender is not legally entitled to
deliver.

 

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

 

2.21.   Obligation to Mitigate.  Each Lender (which term shall include Issuing
Bank for purposes of this Section 2.21) agrees that, as promptly as
practicable after the officer of such Lender responsible for administering its
Loans or Letters of Credit, as the case may be, becomes aware of the occurrence
of an event or the existence of a condition that would cause such Lender to
become an Affected Lender or that would entitle such Lender to receive payments
under Section 2.18, 2.19 or 2.20, it will, to the extent not inconsistent
with the existing internal policies of such Lender and any applicable legal or
regulatory restrictions, use reasonable efforts to (a) make, issue, fund
or maintain its Credit Extensions, including any Affected Loans, through
another office of such Lender, or (b) take such other measures as such
Lender may deem reasonable, if as a result thereof the circumstances which
would cause such Lender to be an Affected Lender would cease to exist or the
additional amounts which would otherwise be required to be paid to such Lender
pursuant to Section 2.18, 2.19 or 2.20 would be reduced and if, as
determined by such Lender in its discretion, the making, issuing, funding or
maintaining of 

 

67

 

such
Revolving Commitments, Loans or Letters of Credit through such other office or
in accordance with such other measures, as the case may be, would not otherwise
adversely affect such Revolving Commitments, Loans or Letters of Credit or the
interests of such Lender; provided, such Lender will not be obligated to
utilize such other office pursuant to this Section 2.21 unless Borrower
agrees to pay all reasonable out-of-pocket incremental expenses
incurred by such Lender as a result of utilizing such other office as described
above.  A certificate as to the amount of
any such expenses payable by Borrower pursuant to this Section 2.21
(setting forth in reasonable detail the basis for requesting such amount)
submitted by such Lender to Borrower (with a copy to Administrative Agent)
shall be conclusive absent manifest error.

 

2.22.   Defaulting Lenders.  Anything contained herein to the contrary
notwithstanding, in the event that any Lender, other than at the direction or
request of any regulatory agency or authority, defaults (a “Defaulting
Lender”) in its obligation to fund (a “Funding Default”) any Revolving
Loan or its portion of any unreimbursed payment under Section 2.3(b)(iv) or
2.4(e) (in each case, a “Defaulted Loan”), then (a) during
any Default Period with respect to such Defaulting Lender, such Defaulting
Lender shall be deemed not to be a “Lender” for purposes of voting on any
matters (including the granting of any consents or waivers) with respect to any
of the Credit Documents; (b) to the extent permitted by applicable law,
until such time as the Default Excess with respect to such Defaulting Lender
shall have been reduced to zero, (i) any voluntary prepayment of the
Revolving Loans shall, if Borrower so directs at the time of making such
voluntary prepayment, be applied to the Revolving Loans of other Lenders as if
such Defaulting Lender had no Revolving Loans outstanding and the Revolving
Exposure of such Defaulting Lender were zero, and (ii) any mandatory
prepayment of the Revolving Loans shall, if Borrower so directs at the time of
making such mandatory prepayment, be applied to the Revolving Loans of other
Lenders (but not to the Revolving Loans of such Defaulting Lender) as if such
Defaulting Lender had funded all Defaulted Loans of such Defaulting Lender, it
being understood and agreed that Borrower shall be entitled to retain any
portion of any mandatory prepayment of the Revolving Loans that is not paid to
such Defaulting Lender solely as a result of the operation of the provisions of
this clause (b); (c) such Defaulting Lender’s Revolving Commitment and
outstanding Revolving Loans and such Defaulting Lender’s Pro Rata Share of the
Letter of Credit Usage shall be excluded for purposes of calculating the
Revolving Commitment fee payable to Lenders in respect of any day during any
Default Period with respect to such Defaulting Lender, and such Defaulting
Lender shall not be entitled to receive any Revolving Commitment fee pursuant
to Section 2.11 with respect to such Defaulting Lender’s Revolving
Commitment in respect of any Default Period with respect to such Defaulting
Lender; and (d) the Total Utilization of Revolving Commitments as at any
date of determination shall be calculated as if such Defaulting Lender had
funded all Defaulted Loans of such Defaulting Lender.  No Revolving Commitment of any Lender shall
be increased or otherwise affected, and, except as otherwise expressly provided
in this Section 2.22, performance by Borrower of its obligations hereunder
and the other Credit Documents shall not be excused or otherwise modified as a
result of any Funding Default or the operation of this Section 2.22.  The rights and remedies against a Defaulting
Lender under this Section 2.22 are in addition to other rights and
remedies which Borrower may have against such Defaulting Lender with respect to
any Funding Default and which Administrative Agent or any Lender may have
against such Defaulting Lender with respect to any Funding Default.

 

68

 

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

 

69

 

Lender
hereby authorizes and directs Administrative Agent to execute and deliver such
documentation as may be required to give effect to an assignment in accordance
with Section 10.6 on behalf of a Non-Consenting Lender or Terminated
Lender and any such documentation so executed by Administrative Agent shall be
effective for purposes of documenting an assignment pursuant to Section 10.6.

 

SECTION 3.   CONDITIONS PRECEDENT

 

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

 

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

 

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

 

(c)   Capitalization
of Holdings and Borrower.  On or
before the Closing Date, Holdings or Borrower, as applicable, shall have
received (i) the Equity Contribution and (ii) at least $260,700,000
of gross proceeds from the initial borrowings under the Second Lien Credit
Agreement, and Administrative Agent shall have received executed copies of all
documentation relating to the Second Lien Credit Agreement, in form and
substance reasonably satisfactory to it.

 

(d)   Consummation
of Transactions Contemplated by Related Agreements.

 

(i)   (1) All
conditions (other than those which the failure to satisfy would not have an
adverse effect on the Lenders) to the Acquisition set forth in the Acquisition
Agreement shall have been satisfied or the fulfillment of any such conditions
shall have 

 

70

 

been waived
with the consent of Administrative Agent and Syndication Agent, (2) the
Acquisition shall have been consummated in accordance with the terms of the
Acquisition Agreement and (3) the Acquisition shall have been approved by
the shareholders of Parent in accordance with its certificate of incorporation
and the shareholders of Parent shall not have exercised conversion rights with
respect to more than 40% of the shares issued in Parent’s initial public
offering.

 

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

 

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

 

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

 

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

 

(h)   Real
Estate Assets.  In order to create in
favor of Collateral Agent, for the benefit of Secured Parties, a valid and,
subject to any filing and/or recording referred to herein, 

 

71

 

perfected First Priority security interest in certain Real
Estate Assets, Collateral Agent shall have received from Borrower and each
applicable Guarantor:

 

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

 

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

 

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

 

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

 

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

 

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

 

72

 

able to
obtain ALTA mortgagee title insurance policies in form and substance reasonably
satisfactory to Collateral Agent on the basis of the same.

 

Notwithstanding
the foregoing, with respect to any Closing Date Mortgaged Property with respect
to which the documents, opinions and actions described in clauses (i) through
(vi) above have not been delivered or taken on or prior to the Closing Date,
the delivery of such documents and opinions and the taking of such actions
shall not constitute a condition precedent to the initial Credit Extension, and
Borrower shall deliver or cause to be delivered such documents and opinions,
and take or cause to be taken such other actions, as may be required under
clauses (i) through (vi) above, within the periods set forth in the
Post-Closing Agreement.

 

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

 

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

 

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

 

(iii)   fully
executed Intellectual Property Security Agreements; and

 

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

 

(j)   Financial
Statements; Projections.  Arrangers
shall have received from Holdings (i) the Historical Financial Statements,
(ii) pro forma consolidated balance sheets and related statements of
income and cash flows of Holdings and its Subsidiaries as at December 31,
2007, and reflecting the consummation of the Acquisition, the relating
financings and the other transactions contemplated by the Credit Documents and
the Second Lien Credit Agreement to occur on or prior to the Closing Date,
which pro forma financial statements shall meet the

 

73

 

requirements of Regulation S-X for Form S-1 registration
statements (other than (A) the adjustments to Consolidated Adjusted EBITDA
set forth in clauses (e) through (j) of the definition thereof, (B) as
required by Rule 3-10 of Regulation S-X and (C) other adjustments as
Arrangers and Borrower have agreed are appropriate prior to the Closing Date),
and (iii) the Projections.

 

(k)   Evidence
of Insurance.  Collateral Agent shall
have received a certificate from Borrower’s insurance broker or other evidence
reasonably satisfactory to it that all insurance required to be maintained
pursuant to Section 5.5 is in full force and effect, together with
endorsements naming the Collateral Agent, for the benefit of Secured Parties,
as additional insured and loss payee thereunder to the extent required under Section 5.5.

 

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

 

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

 

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

 

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

 

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

 

74

 

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

 

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

 

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

 

3.2.   Conditions to Each Credit Extension.

 

(a)   Conditions
Precedent.  The obligation of each
Lender to make any Loan, or Issuing Bank to issue any Letter of Credit, on any
Credit Date, including the Closing Date, are subject to the satisfaction, or
waiver in accordance with Section 10.5, of the following conditions
precedent:

 

(i)  
Administrative Agent shall have received a fully executed and delivered
Funding Notice or Issuance Notice, as the case may be;

 

(ii)   after
making the Credit Extensions requested on such Credit Date, the Total
Utilization of Revolving Commitments shall not exceed the Revolving Commitments
then in effect;

 

(iii)   as of such
Credit Date, the representations and warranties contained herein and in the
other Credit Documents shall be true and correct in all material respects
(except that any representation or warranty that is qualified as to materiality
or Material Adverse Effect shall be true and correct in all respects) on and as
of that Credit Date to the same extent as though made on and as of that date,
except to the extent such representations and warranties specifically relate to
an earlier date, in which case such representations and warranties shall have
been true and correct in all material respects (except that any representation
or warranty that is qualified as to materiality or Material Adverse Effect
shall have been true and correct in all respects) on and as of such earlier
date; provided that, solely for the purpose of satisfying this Section 3.2(a)(iii) on
the Closing Date (and not for the purpose of determining whether an Event of
Default under Section 8.1(d) has occurred), any reference to Material
Adverse Effect in Section 4 shall be deemed to mean a Material Adverse
Change.

 

(iv)   as of such Credit Date, no event shall have
occurred and be continuing or would result from the consummation of the
applicable Credit Extension 

 

75

 

that would constitute an Event of Default or a Default; provided
that, solely for the purpose of satisfying this Section 3.2(a)(iv) on
the Closing Date (and not for the purpose of
determining whether an Event of Default under Section 8.1(c) and/or Section 8.1(e) has
occurred), any reference to Material
Adverse Effect in Sections 4 and 5 shall be deemed to mean a Material Adverse
Change; and

 

(v)   on or before
the date of issuance of any Letter of Credit, Administrative Agent shall have
received all other information required by the applicable Issuance Notice, and
such other documents or information as Issuing Bank may reasonably require in
connection with the issuance of such Letter of Credit.

 

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

 

SECTION 4.   REPRESENTATIONS AND WARRANTIES

 

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

 

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

 

4.2.   Equity Interests and Ownership.  The Equity Interests of each of Holdings and
its Subsidiaries have been duly authorized and validly issued and are fully
paid and, with respect to corporate shares, non-assessable.  Except as set forth on Schedule 4.2, as of
the date hereof, there is no existing option, warrant, call, right, commitment
or other agreement to which Borrower or any of its Subsidiaries is a party
requiring, and there is no membership interest or other Equity 

 

76

 

Interests
of Borrower or any of its Subsidiaries outstanding which upon conversion or
exchange would require the issuance by Borrower or any of its Subsidiaries of
any additional membership interests or other Equity Interests of Borrower or
any of its Subsidiaries or other Securities convertible into, exchangeable for
or evidencing the right to subscribe for or purchase, a membership interest or
other Equity Interests of Borrower or any of its Subsidiaries.  Schedule 4.2 correctly sets forth the
ownership interest of Holdings and each of its Subsidiaries in their respective
Subsidiaries as of the Closing Date.

 

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

 

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

 

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

 

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

 

77

 

equitable
principles relating to enforceability, regardless of whether considered in a
proceeding in equity or at law.

 

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

 

4.8.   Projections.  On and as of the Closing Date, the
projections of Holdings and its Subsidiaries for the period of Fiscal Year 2008
through and including Fiscal Year 2012 (the “Projections”) are based on
good faith estimates and assumptions (including estimates from third party sources)
believed to be reasonable by the management of Holdings at the time of
preparation; provided, the Projections are not to be viewed as facts,
and it being understood that such Projections are subject to significant
uncertainties and contingencies, many of which are beyond Holdings’ and its
Subsidiaries’ control, that no assurance can be given that such Projections
will be realized, that actual results during the period or periods covered by
the Projections may differ from such Projections and that the differences may
be material; provided  further, as of the Closing Date, management
of Holdings believed that the Projections were reasonable and attainable at the
time of preparation.

 

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

 

4.10.   Reserved.

 

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

 

4.12.   Payment of Taxes.  Except as otherwise permitted under Section 5.3,
all federal and state income tax returns and all other material tax returns and
reports of Holdings and its Subsidiaries required to be filed by any of them
have been timely filed, and all taxes shown on such tax returns to be due and
payable and all assessments, fees and other governmental charges upon Holdings
and its Subsidiaries and upon their respective properties, assets, income, 

 

78

 

businesses
and franchises which are due and payable have been paid when due and
payable.  Holdings knows of no proposed
tax assessment against Holdings or any of its Subsidiaries except for any such
assessment for which appropriate reserves have been established in accordance
with GAAP or that is being actively contested by Holdings or such Subsidiary in
good faith and by appropriate proceedings; provided, in each case, such
reserves or other appropriate provisions, if any, as shall be required in
conformity with GAAP shall have been made or provided therefor.

 

4.13.   Properties.

 

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

 

(b)   Real Estate.  As of the Closing Date,
Schedule 4.13(b) contains a true, accurate and complete list of (i) all
Real Estate Assets (excluding leases and subleases with rental payments of less
than $100,000 per year), and (ii) all leases, subleases or assignments of
leases (together with all amendments, modifications, supplements, renewals or
extensions of any thereof) with rental payments in excess of $100,000 per year
affecting each Real Estate Asset of any Credit Party, regardless of whether
such Credit Party is the landlord or tenant (whether directly or as an assignee
or successor in interest) under such lease, sublease or assignment.  Each agreement listed in clause (ii) of
the immediately preceding sentence is in full force and effect and Holdings
does not have knowledge of any default that has occurred and is continuing
thereunder, and each such agreement constitutes the legally valid and binding
obligation of each applicable Credit Party, enforceable against such Credit
Party in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to
or limiting creditors’ rights generally or by equitable principles.

 

4.14.   Environmental Matters.  Neither Holdings nor any of its Subsidiaries
nor any of their respective Facilities or operations are subject to any
outstanding written order, consent decree or settlement agreement with any
Person relating to any Environmental Law, any Environmental Claim, or any
Hazardous Materials Activity that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.  Neither Holdings nor any of its Subsidiaries
has received any letter or request for information under Section 104
of the Comprehensive Environmental Response, Compensation, and Liability Act
(42 U.S.C. § 9604) or any comparable state law where the subject of such
letter or request could reasonably be expected to result in a Material Adverse
Effect.  There are and, to each of
Holdings’ and its Subsidiaries’ knowledge, have been, no conditions,
occurrences, or Hazardous Materials 

 

79

 

Activities
which could reasonably be expected to form the basis of an Environmental Claim
against Holdings or any of its Subsidiaries that, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.  Neither Holdings nor any of its Subsidiaries
nor, to any Credit Party’s knowledge, any predecessor of Holdings or any of its
Subsidiaries has filed any notice under any Environmental Law indicating past
or present treatment of Hazardous Materials at any Facility, and none of
Holdings’ or any of its Subsidiaries’ operations involves the generation, transportation,
treatment, storage or disposal of hazardous waste, as defined under 40 C.F.R.
Parts 260-270 or any state equivalent, which, in either case, could reasonably
be expected to result in a Material Adverse Effect.  Compliance with all current or reasonably
foreseeable future requirements pursuant to or under Environmental Laws could
not be reasonably expected to have, individually or in the aggregate, a
Material Adverse Effect.  No event or
condition has occurred or is occurring with respect to Holdings or any of its
Subsidiaries relating to any Environmental Law, any Release of Hazardous
Materials, or any Hazardous Materials Activity which individually or in the
aggregate has had, or could reasonably be expected to have, a Material Adverse
Effect.

 

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

 

4.16.   Material Contracts.  Schedule 4.16 contains a true, correct
and complete list of all the Material Contracts in effect on the Closing Date,
and except as described thereon, all such Material Contracts are in full force
and effect and no defaults exist thereunder as of the Closing Date.

 

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

 

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

 

4.19.   Employee Matters.  Neither Holdings nor any of its Subsidiaries
is engaged in any unfair labor practice that could reasonably be expected to
have a Material Adverse Effect.  There is
(a) no unfair labor practice complaint pending against Holdings or any of
its Subsidiaries, or to the best knowledge of Holdings and Borrower, threatened
against any of them before the National Labor Relations Board and no grievance
or arbitration proceeding arising out of or under any collective bargaining
agreement that is so pending against Holdings or any of its

 

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Subsidiaries
or to the best knowledge of Holdings and Borrower, threatened against any of
them, (b) no strike or work stoppage in existence or threatened
involving Holdings or any of its Subsidiaries, and (c) to the best
knowledge of Holdings and Borrower, no union representation question existing
with respect to the employees of Holdings or any of its Subsidiaries and, to
the best knowledge of Holdings and Borrower, no union organization activity
that is taking place, except (with respect to any matter specified in clause
(a), (b) or (c) above, either individually or in the aggregate) such
as is not reasonably likely to have a Material Adverse Effect.

 

4.20.   Employee Benefit Plans .   Except as could not reasonably be expected to
result in a Material Adverse Effect, Holdings, each of its Subsidiaries and
each of their respective ERISA Affiliates are in compliance with all applicable
provisions and requirements of ERISA and the Internal Revenue Code and the
regulations and published interpretations thereunder with respect to each
Employee Benefit Plan.  Other than with
respect to any retirement plans newly adopted or spun-off as contemplated under
the Acquisition Agreement, each Employee Benefit Plan which is intended to
qualify under Section 401(a) of the Internal Revenue Code has
received a favorable determination letter from the Internal Revenue Service
indicating that such Employee Benefit Plan is so qualified or has a
determination letter request pending with the Internal Revenue Service and
nothing has occurred subsequent to the issuance of such determination letter
which would reasonably be expected to cause such Employee Benefit Plan to lose
its qualified status.  No liability (i) to
the PBGC (other than required premium payments) or the Internal Revenue
Service, in either case, with respect to any Employee Benefit Plan, or (ii) to
any Employee Benefit Plan or any trust established under Title IV of ERISA, in
any case, has been or is expected to be incurred by Holdings, any of its
Subsidiaries or any of their ERISA Affiliates, except as could not reasonably
be expected to result in a Material Adverse Effect.  No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events
for which liability is reasonably expected to occur, could reasonably be
expected to result in a Material Adverse Effect.  The
aggregate liability of Holdings and its Subsidiaries with respect to “expected post-retirement benefit
obligations” within the meaning of the Financial Accounting Standards Board
Statement 106 does not exceed $5,000,000.  The present value of the aggregate benefit
liabilities under each Pension Plan sponsored, maintained or contributed to by
Holdings, any of its Subsidiaries or any of their ERISA Affiliates (determined
as of the end of the most recent plan year on the basis of the actuarial
assumptions specified for funding purposes in the most recent actuarial
valuation for such Pension Plan), did not exceed the aggregate current value of
the assets of such Pension Plan by an amount that, if required to be paid,
would reasonably be expected to result in a Material Adverse Effect.  As of the most recent valuation date for each
Multiemployer Plan for which the actuarial report is available, the potential
liability of Holdings, its Subsidiaries and their respective ERISA Affiliates
for a complete withdrawal from such Multiemployer Plan (within the meaning of Section 4203
of ERISA), when aggregated with such potential liability for a complete
withdrawal from all Multiemployer Plans, could not reasonably be expected to
result in a Material Adverse Effect. 
Holdings, each of its Subsidiaries and each of their ERISA Affiliates
have complied in all material respects with the requirements of Section 515
of ERISA with respect to each Multiemployer Plan and are not in material “default”
(as defined in Section 4219(c)(5) of ERISA) with respect to payments
to a Multiemployer Plan.

 

4.21.   Certain Fees.  As of the Closing Date, no broker’s or finder’s
fee or commission will be payable with respect to the transactions contemplated
by the Related Agreements, except 

 

81

 

(i) as payable to (a) the
Agents and the Lenders and (b) the agents and lenders party to the Second
Lien Credit Agreement and related documents thereto and (ii) as set forth
on Schedule 4.21.

 

4.22.   Solvency.  The Credit Parties are as of the Closing Date
and, upon the making of any Credit Extension, will be, Solvent on a
consolidated basis.

 

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

 

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

 

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

 

4.26.   Patriot Act.  To the extent applicable, each Credit Party
is in compliance, in all material respects, with the (i) Trading with the
Enemy Act, as amended, and each of the foreign 

 

82

 

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

 

SECTION 5.   AFFIRMATIVE COVENANTS

 

Each Credit Party covenants and agrees that, so long
as any Commitment is in effect and until payment in full of all
Obligations  (other than contingent
obligations for which no claim has been made) and cancellation or expiration of
all Letters of Credit (unless a Letter of Credit Backstop is in place), each
Credit Party shall perform, and shall cause each of its Subsidiaries to
perform, all covenants in this Section 5.

 

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

 

(a)   Reserved.

 

(b)   Quarterly
Financial Statements.  As soon as
available, and in any event within 45 days after the end of each of the first
three Fiscal Quarters of each Fiscal Year (or, during any time that Holdings or
Borrower is subject to the periodic reporting requirements of the Exchange Act,
such shorter period as the Securities and Exchange Commission shall specify for
the filing of quarterly reports on Form 10-Q), commencing with the Fiscal
Quarter in which the Closing Date occurs, the consolidated balance sheets of
Holdings and its Subsidiaries as at the end of such Fiscal Quarter and the
related consolidated statements of income and cash flows of Holdings and its
Subsidiaries for such Fiscal Quarter in the form required to be prepared if
such financial statements were included in a Form 10-Q and for the period
from the beginning of the then current Fiscal Year to the end of such Fiscal
Quarter, setting forth in each case in comparative form the corresponding
figures for the corresponding periods of the previous Fiscal Year and the
corresponding figures from the Financial Plan for the current Fiscal Year, all
in reasonable detail, together with a Financial Officer Certification and, at
any time Parent (x) fails to file its quarterly report on Form 10-Q
with the Securities and Exchange Commission, (y) ceases to be required to
make filings with the Securities and Exchange Commission or (z) acquires
any entity other than a Credit Party or a Subsidiary thereof, a Narrative
Report with respect thereto;

 

(c)   Annual
Financial Statements.  As soon as
available, and in any event within 90 days after the end of each Fiscal Year
(or, during any time that Holdings or Borrower is subject to the periodic
reporting requirements of the Exchange Act, such shorter period as the
Securities and Exchange Commission shall specify for the filing of annual
reports on Form 10-K), commencing with the Fiscal Year ended December 31,
2007, (i) the consolidated balance sheets of Holdings and its Subsidiaries
as at the end of such Fiscal Year and the related consolidated statements of
income, stockholders’ equity and cash flows of Holdings and its

 

83

 

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

 

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

 

(e)   Reserved.

 

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

 

(g)   Notice of
Litigation.  Promptly upon any
Authorized Officer of Holdings or Borrower obtaining knowledge of (i) the
institution of, or non-frivolous written threat of, any Adverse Proceeding not
previously disclosed in writing by Borrower to Lenders, or (ii) any
material development in any Adverse Proceeding that, in the case of either
clause (i) or (ii), could be reasonably expected to have a Material
Adverse Effect, or seeks to impose liability on any of the Arrangers, Lenders,
Holdings and/or Borrower in connection with any indebtedness of Boise Cascade,
L.L.C. that is remaining outstanding after consummation of the Acquisition, or
seeks to enjoin or otherwise prevent the consummation of, or to recover any
damages or obtain

 

84

 

relief as a result of, the transactions contemplated hereby,
written notice thereof together with such other information as may be
reasonably available to Holdings or Borrower to enable Lenders and their
counsel to evaluate such matters;

 

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

 

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

 

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

 

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

 

(l)   Information
Regarding Collateral.  (a) 
Borrower will furnish to Collateral Agent prompt written notice of any change (i) in
any Credit Party’s corporate name, (ii) in any Credit Party’s identity or
corporate structure, (iii) in any Credit Party’s jurisdiction of
organization or (iv) in any Credit Party’s Federal Taxpayer Identification
Number or state 

 

85

 

organizational identification number (if any).  Borrower agrees not to effect or permit any
change referred to in the preceding sentence unless all filings have been made
(or have been prepared and delivered to the Collateral Agent for filing) under
the Uniform Commercial Code or otherwise that are required in order for
Collateral Agent to continue at all times following such change to have a
valid, legal and perfected security interest in all the Collateral as
contemplated in the Collateral Documents. 
Borrower also agrees promptly to notify Collateral Agent if any material
portion of the Collateral is damaged or destroyed;

 

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

 

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

 

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

 

5.2.   Existence.  Except as otherwise permitted under Section 6.8,
each Credit Party will, and will cause each of its Subsidiaries to, at all
times preserve, renew and keep in full force and effect its (i) existence
and (ii) all rights and franchises, licenses and permits, and Intellectual

 

86

 

Property
material to the conduct of its business, except in the case of clause (ii) to
the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect.

 

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

 

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

 

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

 

87

 

one
or more of its Subsidiaries shall exercise the reinvestment option described in
Section 2.14(b), the Collateral Agent shall promptly turn over to Borrower
any insurance proceeds received pursuant to this Section.

 

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

 

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

 

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

 

5.9.   Environmental.

 

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

 

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

 

(ii)   promptly
upon the occurrence thereof, written notice describing in reasonable detail (1) any
Release required to be reported to any federal, state or local 

 

88

 

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

 

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

 

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

 

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

 

89

 

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

 

5.10.   Subsidiaries.  In the event that any Person becomes a
Domestic Subsidiary of Borrower, Borrower shall (a) promptly cause such
Domestic Subsidiary to become a Guarantor hereunder and a Grantor under
the Pledge and Security Agreement by executing and delivering to Administrative
Agent and Collateral Agent a Counterpart Agreement, and (b) take all such
actions and execute and deliver, or cause to be executed and delivered, all
such documents, instruments, agreements, and certificates as are similar to
those described in Sections 3.1(b), 3.1(h), 3.1(i), and if reasonably required
by the Administrative Agent, 3.1(l).  In
the event that any Person becomes a first-tier Foreign Subsidiary of Borrower,
and the ownership interests of such Foreign Subsidiary are owned by Borrower or
by any Domestic Subsidiary thereof, Borrower shall, or shall cause such
Domestic Subsidiary to, deliver, all such documents, instruments, agreements,
and certificates as are similar to those described in Section 3.1(b)(i),
and Borrower shall take, or shall cause such Domestic Subsidiary to take, all
of the actions referred to in Section 3.1(i)(i) necessary to grant
and to perfect a First Priority Lien in favor of Collateral Agent, for the
benefit of Secured Parties, in 65% of such ownership interests under the Pledge
and Security Agreement and any local law pledge agreements reasonably required
by Collateral Agent.  With respect to
each such Subsidiary, Borrower shall promptly send to Administrative Agent
written notice setting forth with respect to such Person (i) the date on
which such Person became a Subsidiary of Borrower, and (ii) all of the
data required to be set forth in Schedules 4.1 and 4.2 with respect to all
Subsidiaries of Borrower; and such written notice shall be deemed to supplement
Schedule 4.1 and 4.2 for all purposes hereof.

 

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

 

90

 

5.12.   Interest Rate Protection.  No later than ninety (90) days following the
Closing Date, Borrower will enter into, and thereafter maintain in effect for
the periods specified below, protection against fluctuations in interest rates
pursuant to one or more Interest Rate Agreements in form and substance
reasonably satisfactory to Administrative Agent, the effect of which shall be
that not less than 50% of the Indebtedness for borrowed money of Holdings and
its Subsidiaries outstanding as of the Closing Date (as reduced at or before
the date that such Interest Rate Agreement becomes effective) shall be
Indebtedness that either bears interest at a fixed rate or the interest cost of
which is hedged pursuant to such Interest Rate Agreements as follows (a) for
a period of at least three years after the Closing Date, at least 30% of the
total Indebtedness for borrowed money of Holdings and its Subsidiaries
outstanding as of the Closing Date (as reduced at or before the date that such
Interest Rate Agreement becomes effective) will be Indebtedness that either
bears interest at a fixed rate or the interest cost of which is hedged pursuant
to such Interest Rate Agreements and (b) for a period of at least one year
after the Closing Date, at least an additional 20% of the total Indebtedness
for borrowed money of Holdings and its Subsidiaries outstanding as of the
Closing Date (as reduced at or before the date that such Interest Rate
Agreement becomes effective) will be Indebtedness that either bears interest at
a fixed rate or the interest cost of which is hedged pursuant to such Interest
Rate Agreements.

 

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

 

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

 

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

 

91

 

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

 

SECTION 6.   NEGATIVE COVENANTS

 

Each Credit Party covenants and agrees that, so long
as any Commitment is in effect and until payment in full of all Obligations
(other than contingent obligations for which no claim has been made) and
cancellation or expiration of all Letters of Credit (unless a Letter of Credit
Backstop is in place), such Credit Party shall perform, and shall cause each of
its Subsidiaries to perform, all covenants in this Section 6.

 

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

 

(a)   the
Obligations;

 

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

 

(c)   Indebtedness
and other Obligations under and as defined in the Second Lien Credit Agreement
and related documents in an aggregate principal amount not to exceed
$260,700,000;

 

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

 

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

 

92

 

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

 

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

 

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

 

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

 

(j)   Indebtedness
of Borrower or any of its Subsidiaries with respect to Capital Leases and
purchase money Indebtedness in an aggregate amount not to exceed at any time
$50,000,000; provided, any such purchase money Indebtedness shall be
secured only by the asset acquired in connection with the incurrence of such
Indebtedness;

 

(k)   (i) Indebtedness
of a Person or Indebtedness attaching to assets of a Person that, in either
case, becomes a Subsidiary or Indebtedness attaching to assets that are
acquired by Borrower or any of its Subsidiaries, in each case after the Closing
Date as the result of a Permitted Acquisition, in an aggregate amount not to
exceed $50,000,000 at any one time outstanding; provided that such
Indebtedness existed at the time such Person became a Subsidiary or at the time
such assets were acquired and, in each case, was not created in anticipation
thereof, and (ii) any refinancing, refunding, renewal or extension of any
Indebtedness specified in subclause (i) above; provided, that (1) the
principal amount of any such Indebtedness is not increased above the principal
amount thereof outstanding immediately prior to such refinancing, refunding,
renewal or extension and (2) such
Indebtedness shall not be secured by any assets other than the assets securing
the Indebtedness being renewed, extended or refinanced; and

 

93

 

(l)   senior unsecured
Indebtedness of Borrower or any Subsidiary in an aggregate amount not to exceed
$50,000,000 at any one time outstanding; provided that (A) such
Indebtedness is in respect of promissory notes or other debt securities issued
as consideration for a Permitted Acquisition or is in respect of borrowed
money, the proceeds of which are promptly applied as consideration for a
Permitted Acquisition or to the satisfaction of any obligation permitted under Section 6.1(d),
(B) no Default shall have occurred and be continuing at the time of and
after giving effect to the incurrence of such Indebtedness, and (C) prior
to the incurrence of such Indebtedness Borrower shall have delivered to
Administrative Agent a certificate of an Authorized Officer describing the Indebtedness
to be incurred (and attaching true and correct copies of the documentation
therefor) and the relevant Permitted Acquisition and certifying satisfaction of
the requirements set forth in clauses (A) and (B);

 

(m)   Indebtedness
in an aggregate principal amount not to exceed $100,000,000 that is  (i) subordinated to the Obligations
on terms customary at the time for high-yield subordinated debt securities
issued in a public offering, (ii) matures after, and does not require any
scheduled amortization or other scheduled payments of principal prior to, the
maturity date of the Term Loans (it being understood that such Indebtedness may
have mandatory prepayment, repurchase or redemptions provisions satisfying the
requirement of clause (iii) hereof), (iii) has terms and conditions
(other than interest rate, redemption premiums and subordination terms), taken
as a whole, that are not materially less favorable to Borrower as the terms and
conditions customary at the time for high-yield subordinated debt securities
issued in a public offering and (iv) is incurred by Borrower or a
Guarantor (other than Holdings); provided that (1) both immediately
prior to and after giving effect to the incurrence thereof, (x) no Default
shall exist or result therefrom and (y) Holdings will be in compliance
with the covenants set forth in Section 6.7 and provided further
that  a certificate of an
Authorized Officer delivered to Administrative Agent at least ten days prior to
the incurrence of such Indebtedness, together with a reasonably detailed
description of the material terms and conditions of such Indebtedness or drafts
of the documentation relating thereto, stating that Holdings has determined in
good faith that such terms and conditions satisfy the requirements of this clause
(m) shall be conclusive evidence that such terms and conditions satisfy
the foregoing requirement unless Administrative Agent notifies Holdings within
five days of receipt of such certificate that it disagrees with such
determination;

 

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

 

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

 

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

 

94

 

(q)   commercial
letter of credit facilities in an aggregate amount not to exceed $100,000 at
any time outstanding; and

 

(r)   other
unsecured Indebtedness of Borrower and its Subsidiaries (including Indebtedness
of Foreign Subsidiaries) in an aggregate amount not to exceed at any time
$25,000,000.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

95

 

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

 

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

 

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

 

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

 

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

 

(m)   Liens on
collateral securing obligations under the Second Lien Credit Agreement and
related documents; provided that such Liens are subordinated to the
Liens securing the Obligations in accordance with the terms of the
Intercreditor Agreement;

 

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

 

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

 

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

 

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

 

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

 

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

 

96

 

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

 

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

 

(v)   other Liens
securing Indebtedness in an aggregate amount not to exceed $15,000,000 at any
time outstanding.

 

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

 

6.4.   Restricted Junior Payments.  No Credit Party shall, nor shall it permit
any of its Subsidiaries or Affiliates through any manner or means or through
any other Person to, directly or indirectly, declare, order, pay, make or set
apart, or agree to declare, order, pay, make or set apart, any sum for any
Restricted Junior Payment except that:

 

97

 

(a) Borrower may make
regularly scheduled payments of principal and interest and may make payments of
fees, expenses and any other amount (including, for the avoidance of doubt,
mandatory prepayments required under the Second Lien Credit Agreement to the
extent permitted under Section 2.15(b) or 2.15(c)), in each case, due
in respect of the Indebtedness incurred under the Second Lien Credit Agreement;

 

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

 

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

 

(d) Borrower or any of its Subsidiaries may make
Restricted Junior Payments to Holdings, the proceeds of which will be used by
Holdings for distributions to Parent (i) to pay reasonable and customary
fees payable to any directors of Parent and reimbursement of reasonable
out-of-pocket costs of the directors of Parent in the ordinary course of
business, to the extent reasonably attributable to the ownership or operation
of Holdings and its Subsidiaries, (ii) to pay reasonable and customary
indemnities to directors, officers and employees of Parent in the ordinary
course of business, to the extent reasonably attributable to the ownership or
operation of Holdings and its Subsidiaries, (iii) to pay cash payments in
lieu of issuing fractional shares in connection with the exercise of warrants,
options or other securities convertible into or exchangeable for Equity
Interests of Parent in an aggregate amount not exceeding $50,000 during any
Fiscal Year, (iv) to pay amounts due in accordance with the Acquisition
Agreement, and (v) to the extent necessary to permit Parent to discharge
its other permitted liabilities in an 

 

98

 

aggregate amount not to exceed $1,500,000 so long as
Parent applies the amount of any such Restricted Junior Payment for such
purpose;

 

(e) Borrower and
its Subsidiaries may make Restricted Junior Payments to Holdings, the proceeds of
which will be used by Holdings for distributions to Parent, pursuant to and in
accordance with stock option plans or other benefit plans for management or
employees of Borrower and its Subsidiaries and to fund any repurchase or
redemption by Parent of its Equity Interests from former members of management,
former employees, former consultants, or former directors of the Credit Parties
or their respective estates, spouses, former spouses, family members or other
permitted transferees; provided that the aggregate amount applied for
all such purposes shall not exceed $15,000,000 during any Fiscal Year;

 

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

 

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

 

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

 

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

 

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

 

99

 

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

 

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

 

(a)   Investments
in Cash and Cash Equivalents;

 

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

 

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

 

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

 

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

 

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

 

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

 

(h)   Investments
described in Schedule 6.6;

 

(i)   the
Acquisition;

 

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

 

(k)   Specified
Investments;

 

100

 

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

 

(m)   other
Investments in Subsidiaries or joint ventures other than wholly-owned Guarantor
Subsidiaries of Borrower in an aggregate amount not to exceed at any time
$20,000,000;

 

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

 

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

 

(p)   capital
contributions to Louisiana Timber Procurement, LLC not to exceed $10,000,000 at
any time outstanding; and

 

(q)   Investments
not otherwise permitted by this Section 6.6; provided  that,
the aggregate amount of Investments made on or after the Closing Date in
reliance on this clause (q) (determined on the basis of the fair market
value of the assets invested at the time so invested, in the case of non-cash
Investments) shall not exceed $10,000,000 at any time outstanding.

 

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

 

6.7.   Financial Covenants.

 

(a)   Interest
Coverage Ratio.  Holdings shall not
permit the Interest Coverage Ratio as of the last day of any Fiscal Quarter,
beginning with the Fiscal Quarter ending June 30, 2008, to be less than
the correlative ratio indicated:

 

	
  Fiscal Quarter End

  	
   

  	
  Interest

  Coverage Ratio

  	
   

  
	
  June 30, 2008

  	
   

  	
  2.000:1.000

  	
   

  
	
  September 30, 2008

  	
   

  	
  2.250:1.000

  	
   

  
	
  December 31, 2008

  	
   

  	
  2.375:1.000

  	
   

  
	
  March 31, 2009

  	
   

  	
  2.375:1.000

  	
   

  
	
  June 30, 2009 and
  thereafter

  	
   

  	
  2.500:1.000

  	
   

  

 

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

 

101

 

	
  Fiscal Quarter End

  	
   

  	
  Leverage Ratio

  	
   

  
	
  June 30, 2008

  	
   

  	
  5.00:1.00

  	
   

  
	
  September 30, 2008

  	
   

  	
  4.75:1.00

  	
   

  
	
  December 31, 2008

  	
   

  	
  4.50:1.00

  	
   

  
	
  March 31, 2009

  	
   

  	
  4.50:1.00

  	
   

  
	
  June 30, 2009

  	
   

  	
  4.25:1.00

  	
   

  
	
  September 30, 2009

  	
   

  	
  4.00:1.00

  	
   

  
	
  December 31, 2009

  	
   

  	
  3.75:1.00

  	
   

  
	
  March 31, 2010

  	
   

  	
  3.50:1.00

  	
   

  
	
  June 30, 2010

  	
   

  	
  3.25:1.00

  	
   

  
	
  September 30, 2010

  	
   

  	
  3.25:1.00

  	
   

  
	
  December 31, 2010

  	
   

  	
  3.25:1.00

  	
   

  
	
  March 31, 2011 and
  thereafter

  	
   

  	
  3.00:1.00

  	
   

  

 

(c)   Maximum
Consolidated Capital Expenditures. 
Holdings shall not, and shall not permit its Subsidiaries to, make or
incur Consolidated Capital Expenditures, in any Fiscal Year, in an aggregate
amount for Holdings and its Subsidiaries in excess of $150,000,000 for such
Fiscal Year; provided, such amount for any Fiscal Year shall be
increased by an amount equal to the excess, if any (but in no event more than
$75,000,000) of such amount for the immediately preceding Fiscal Year (as
adjusted in accordance with this proviso) over the actual amount of Consolidated
Capital Expenditures for such previous Fiscal Year.

 

(d)   Certain
Calculations.  With respect to any
period during which any Investment, a Permitted Acquisition or an Asset Sale or
other disposition has occurred (each, a “Subject
Transaction”), for purposes of
determining compliance with the financial covenants set forth in this Section 6.7
(but not for purposes of determining the Applicable Margin or Applicable
Revolving Commitment Fee Percentage), Consolidated Adjusted EBITDA shall be
calculated with respect to such period on a pro forma basis (including (x) pro
forma adjustments arising out of events which are directly attributable to a
specific transaction, are factually supportable and are expected to have a
continuing impact, in each case determined on a basis consistent with Article 11
of Regulation S-X promulgated under the Securities Act and as interpreted by
the staff of the Securities and Exchange Commission, which would include cost
savings resulting from head count reduction, closure of facilities and similar
restructuring charges, which pro forma adjustments shall be certified by the
chief financial officer of Holdings and (y) pro forma adjustments for cost
savings that Holdings reasonably determines are probable based upon specifically
identified actions to be taken within six months of the date of a Subject
Transaction (net of any reduction in Consolidated Adjusted EBITDA as a result
of such cost savings that Holdings reasonably determines are probable) in an
amount not to exceed 10% of the Consolidated Adjusted EBITDA of the entity
acquired or disposed of in connection with such Subject Transaction; provided
that Holdings’ chief financial officer shall have certified in an officer’s
certificate delivered to the Administrative Agent the specific actions to be
taken, the 

 

102

 

cost savings to be achieved from each such action, that such
savings have been determined to be probable and the amount, if any, of any
reduction in Consolidated Adjusted EBITDA in connection therewith) using the
historical audited (if available) financial statements of any business so
acquired or to be acquired or sold or to be sold and the consolidated financial
statements of Holdings and its Subsidiaries which shall be reformulated as if
such Subject Transaction, and any Indebtedness incurred or repaid in connection
therewith, had been consummated or incurred or repaid at the beginning of such
period (and assuming that such Indebtedness bears interest during any portion
of the applicable measurement period prior to the relevant acquisition at the
weighted average of the interest rates applicable to outstanding Loans incurred
during such period).

 

6.8.   Fundamental Changes; Disposition of Assets;
Acquisitions.  No Credit
Party shall, nor shall it permit any of its Subsidiaries to, enter into any
transaction of merger or consolidation, or liquidate, wind-up or dissolve
itself (or suffer any liquidation or dissolution), or convey, sell, lease,
enter into an Exclusive IP License, exchange, transfer or otherwise dispose of,
in one transaction or a series of transactions, all or any part of its
business, assets or property of any kind whatsoever, whether real, personal or
mixed and whether tangible or intangible, whether now owned or hereafter
acquired or leased, or acquire by purchase or otherwise (other than purchases
or other acquisitions of inventory, materials and equipment and Capital
Expenditures in the ordinary course of business) the business, property or
fixed assets of, or stock or other evidence of beneficial ownership of, any
Person or any division or line of business or other business unit of any
Person, except:

 

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

 

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

 

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

 

(d)   Asset Sales
(including Exclusive IP Licenses), the proceeds of which (valued at the
principal amount thereof in the case of non-Cash proceeds consisting of notes
or other debt Securities and valued at fair market value in the case of other
non-Cash proceeds) when aggregated with the proceeds of all other Asset Sales
made within the same Fiscal Year, are less than $50,000,000; provided
(other than in the case of Exclusive IP Licenses that are not fully paid) (1) the
consideration received for such assets shall be in an amount at least equal to
the fair market value thereof (determined in good faith by an Authorized
Officer of Borrower), (2) no less than 80% thereof shall be paid in Cash,
and (3) the Net Asset Sale Proceeds thereof shall be applied as required
by Section 2.14(a);

 

103

 

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

 

(f)   Permitted
Acquisitions, the Acquisition Consideration for which constitutes (i) less
than $125,000,000 in the aggregate in any Fiscal Year and (ii) less than
$200,000,000 in the aggregate from the Closing Date to the date of
determination; provided, in respect of acquisition targets not domiciled within the United
States, the consideration for such Persons or assets shall not exceed more than
$50,000,000 per Fiscal Year;

 

(g)   Investments made in accordance
with Section 6.6;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.10.   Sales and Lease-Backs.  No Credit Party shall, nor shall it permit
any of its Subsidiaries to, directly or indirectly, become or remain liable as
lessee or as a guarantor or other surety with respect to any lease of any
property (whether real, personal or mixed), whether now owned or hereafter
acquired, which such Credit Party (a) has sold or transferred or is to
sell or to transfer to any other Person (other than Holdings or any of its
Subsidiaries), or (b) intends to use for substantially the same purpose as
any other property which has been or is to be sold or transferred by such
Credit Party to any Person (other than Holdings or any of its Subsidiaries) in
connection with such lease, except (i) for any such sale of any fixed or
capital assets by Borrower or any Subsidiary that is made for cash
consideration in an amount not less than the

 

104

 

cost
of such fixed or capital asset and is consummated within 90 days after
Borrower or such Subsidiary acquires or completes the construction of such
fixed or capital asset, (ii) this Section 6.10 shall not prohibit
Borrower or any Subsidiary from engaging in a sale or transfer of property
permitted by Section 6.8(c) and thereafter leasing such property; provided
that (A) such sale or transfer is made solely for cash consideration, (B) any
Capital Lease obligations of Borrower or any Subsidiary created thereby are
permitted under Section 6.1 and (C) any Net Asset Sale Proceeds
received in respect of such sale or transfer shall be subject to the provisions
of Section 2.14(a), provided that the reinvestment provisions of Section 2.14(a) shall
not apply to any such Net Asset Sale Proceeds.

 

6.11.   Transactions with Shareholders and
Affiliates.  No Credit
Party shall, nor shall it permit any of its Subsidiaries to, directly or
indirectly, enter into or permit to exist any transaction (including the
purchase, sale, lease or exchange of any property or the rendering of any
service) with any Affiliate of Holdings on terms that are not arm’s length; provided,
the foregoing restriction shall not apply to (a) any transaction between
Borrower and any Guarantor or between two or more Guarantors; (b) reasonable
and customary fees and indemnitees paid to members of the board of directors
(or similar governing body) of Holdings and its Subsidiaries; (c) compensation
arrangements, indemnities and reimbursement of expenses for officers and other
employees of Holdings and its Subsidiaries entered into in the ordinary course
of business; (d) Restricted Junior Payments permitted under Section 6.4;
(e) transactions entered into pursuant to and in compliance with the
Supply Agreement; (f) any transactions between Holdings or any of its
Subsidiaries and Boise Cascade, L.L.C. or any of its Subsidiaries pursuant to
the Acquisition Agreement and any documents related thereto; and (g) transactions
described in Schedule 6.11.

 

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

 

6.13.   Permitted Activities of Holdings.  (a) Holdings shall not (i) incur,
directly or indirectly, any Indebtedness or any other obligation or liability
whatsoever other than the Indebtedness and obligations under this Agreement,
the other Credit Documents and the Related Agreements, Indebtedness permitted
under Section 6.1, liabilities imposed by law, including tax liabilities,
and other liabilities incidental to its existence; (ii) create or suffer
to exist any Lien upon any property or assets now owned or hereafter acquired,
leased or licensed by it other than the Liens created under the Collateral
Documents to which it is a party or permitted pursuant to Section 6.2; (iii) engage
in any business or activity or own any assets other than (A) holding 100%
of the Equity Interests of Borrower and activities incidental thereto, (B) performing
its obligations and activities incidental thereto under the Credit Documents,
and to the extent not inconsistent therewith, the Related Agreements, (C) holding
the cash proceeds of any Restricted 

 

105

 

Junior Payments to the extent permitted by this Agreement, (D) filing
tax reports and paying taxes in the ordinary course, (E) preparing reports to
Governmental Authorities and to its shareholders, (F) holding directors
and shareholders meetings, preparing corporate records and other corporate
activities required to maintain its separate corporate structure or to comply
with applicable law, and (G) making Restricted Junior Payments and
Investments to the extent permitted by this Agreement; (iv) consolidate
with or merge with or into, or convey, transfer, lease or license all or
substantially all its assets to, any Person; (v) sell or otherwise dispose
of any Equity Interests of any of its direct Subsidiaries; (vi) create or
acquire any direct Subsidiary or make or own any Investment in any Person other
than Borrower; or (vii) fail to hold itself out to the public as a legal
entity separate and distinct from all other Persons.

 

(b)           Boise Hong Kong Limited shall not
account for more than $2,500,000 of Consolidated Adjusted EBITDA during any
Fiscal Year of Borrower; provided that if Boise Hong Kong Limited does
not comply with the foregoing, such non-compliance shall not constitute an
Event of Default so long as 65% of the Equity Interests of Boise Hong Kong
Limited are pledged to Collateral Agent pursuant to documentation reasonably
satisfactory to Collateral Agent at the time that financial statements of
Holdings and its Subsidiaries are required to be delivered pursuant to Section 5.1(c).

 

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

 

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

 

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

 

SECTION 7.   GUARANTY

 

7.1.   Guaranty of the Obligations.  Subject to the provisions of Section 7.2,
Guarantors jointly and severally hereby irrevocably and unconditionally
guaranty to Administrative Agent for the ratable benefit of the Beneficiaries
the due and punctual payment in full of all Obligations when the same shall
become due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise (including amounts that would become due but 

 

106

 

for
the operation of the automatic stay under Section 362(a) of the
Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed
Obligations”).

 

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

 

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

 

107

 

(including
interest which, but for Borrower’s becoming the subject of a case under the
Bankruptcy Code, would have accrued on such Guaranteed Obligations, whether or
not a claim is allowed against Borrower for such interest in the related
bankruptcy case) and all other Guaranteed Obligations then owed to
Beneficiaries as aforesaid.

 

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

 

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

 

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

 

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

 

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

 

(e)  
any Beneficiary, upon such terms as it deems appropriate, without notice
or demand and without affecting the validity or enforceability hereof or giving
rise to any reduction, limitation, impairment, discharge or termination of any
Guarantor’s liability hereunder, from time to time may (i) renew, extend,
accelerate, increase the rate of interest on, or otherwise change the time,
place, manner or terms of payment of the Guaranteed Obligations; (ii) settle,
compromise, release or discharge, or accept or refuse any offer of performance
with respect to, or substitutions for, the Guaranteed Obligations or any
agreement relating thereto and/or subordinate the payment of the same to the
payment of any other obligations; (iii) request and accept other
guaranties of the Guaranteed Obligations and take and hold security for the
payment hereof or the Guaranteed Obligations; (iv) release, surrender,
exchange, substitute, 

 

108

 

compromise, settle, rescind, waive, alter,
subordinate or modify, with or without consideration, any security for payment
of the Guaranteed Obligations, any other guaranties of the Guaranteed
Obligations, or any other obligation of any Person (including any other
Guarantor) with respect to the Guaranteed Obligations; (v) enforce and
apply any security now or hereafter held by or for the benefit of such
Beneficiary in respect hereof or the Guaranteed Obligations and direct the
order or manner of sale thereof, or exercise any other right or remedy that
such Beneficiary may have against any such security, in each case as such
Beneficiary in its discretion may determine consistent herewith or with the
applicable Hedge Agreement and any applicable security agreement, including
foreclosure on any such security pursuant to one or more judicial or
nonjudicial sales, whether or not every aspect of any such sale is commercially
reasonable, and even though such action operates to impair or extinguish any
right of reimbursement or subrogation or other right or remedy of any Guarantor
against Borrower or any security for the Guaranteed Obligations; and (vi) exercise
any other rights available to it under the Credit Documents or any Hedge
Agreements; and

 

(f)  
this Guaranty and the obligations of Guarantors hereunder shall be valid
and enforceable and shall not be subject to any reduction, limitation,
impairment, discharge or termination for any reason (other than payment in full
of the Guaranteed Obligations (other than contingent obligations for which no
claim has been made) and cancellation or expiration of all Letters of Credit
(unless a Letter of Credit Backstop is in place)), including the occurrence of
any of the following, whether or not any Guarantor shall have had notice or
knowledge of any of them: (i) any failure or omission to assert or enforce
or agreement or election not to assert or enforce, or the stay or enjoining, by
order of court, by operation of law or otherwise, of the exercise or
enforcement of, any claim or demand or any right, power or remedy (whether
arising under the Credit Documents or any Hedge Agreements, at law, in equity
or otherwise) with respect to the Guaranteed Obligations or any agreement
relating thereto, or with respect to any other guaranty of or security for the
payment of the Guaranteed Obligations; (ii) any rescission, waiver,
amendment or modification of, or any consent to departure from, any of the
terms or provisions (including provisions relating to events of default)
hereof, of any of the other Credit Documents, any of the Hedge Agreements or
any agreement or instrument executed pursuant thereto, or of any other guaranty
or security for the Guaranteed Obligations, in each case whether or not in
accordance with the terms hereof or of such Credit Document, such Hedge
Agreement or any agreement relating to such other guaranty or security; (iii) the
Guaranteed Obligations, or any agreement relating thereto, at any time being
found to be illegal, invalid or unenforceable in any respect; (iv) the
application of payments received from any source (other than payments received
pursuant to the other Credit Documents or any of the Hedge Agreements or from
the proceeds of any security for the Guaranteed Obligations, except to the
extent such security also serves as collateral for indebtedness other than the
Guaranteed Obligations) to the payment of indebtedness other than the
Guaranteed Obligations, even though any Beneficiary might have elected to apply
such payment to any part or all of the Guaranteed Obligations; (v) any
Beneficiary’s consent to the change, reorganization or termination of the
corporate structure or existence of Holdings or any of its Subsidiaries and to
any corresponding restructuring of the Guaranteed Obligations; (vi) any
failure to perfect or continue perfection of a security interest in any collateral
which secures any of the Guaranteed Obligations; (vii) any defenses (other
than payment in full of the Guaranteed Obligations (other than contingent
obligations for which no claim has been made) and cancellation or expiration of
all Letters of Credit (unless a Letter of Credit Backstop is in place)),
set-offs or counterclaims which Borrower may allege or assert 

 

109

 

against any Beneficiary in respect of the
Guaranteed Obligations, including failure of consideration, breach of warranty,
payment, statute of frauds, statute of limitations, accord and satisfaction and
usury; and (viii) any other act or thing or omission, or delay to do any
other act or thing, which may or might in any manner or to any extent vary the
risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.

 

7.5.   Waivers by Guarantors.  Each Guarantor hereby waives, to the extent
permitted by applicable law, for the benefit of Beneficiaries: (a) any
right to require any Beneficiary, as a condition of payment or performance by
such Guarantor, to (i) proceed against Borrower, any other guarantor
(including any other Guarantor) of the Guaranteed Obligations or any other
Person, (ii) proceed against or exhaust any security held from Borrower,
any such other guarantor or any other Person, (iii) proceed against or
have resort to any balance of any Deposit Account or credit on the books of any
Beneficiary in favor of Borrower or any other Person, or (iv) pursue any
other remedy in the power of any Beneficiary whatsoever; (b) any defense
arising by reason of the incapacity, lack of authority or any disability or
other defense of Borrower or any other Guarantor including any defense based on
or arising out of the lack of validity or the unenforceability of the
Guaranteed Obligations or any agreement or instrument relating thereto or by
reason of the cessation of the liability of Borrower or any other Guarantor
from any cause other than payment in full of the Guaranteed Obligations (other
than contingent obligations for which no claim has been made) and cancellation
or expiration of all Letters of Credit (unless a Letter of Credit Backstop is
in place); (c) any defense based upon any statute or rule of law
which provides that the obligation of a surety must be neither larger in amount
nor in other respects more burdensome than that of the principal; (d) any
defense based upon any Beneficiary’s errors or omissions in the administration
of the Guaranteed Obligations, except behavior which amounts to gross
negligence, bad faith or willful misconduct; (e) (i) any principles
or provisions of law, statutory or otherwise, which are or might be in conflict
with the terms hereof and any legal or equitable discharge of such Guarantor’s
obligations hereunder, (ii) the benefit of any statute of limitations
affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any
rights to set-offs, recoupments and counterclaims, and (iv) promptness,
diligence and any requirement that any Beneficiary protect, secure, perfect or
insure any security interest or lien or any property subject thereto; (f) notices,
demands, presentments, protests, notices of protest, notices of dishonor and
notices of any action or inaction, including acceptance hereof, notices of
default hereunder, under the Hedge Agreements or any agreement or instrument
related thereto, notices of any renewal, extension or modification of the
Guaranteed Obligations or any agreement related thereto, notices of any
extension of credit to Borrower and notices of any of the matters referred to
in Section 7.4 and any right to consent to any thereof; and (g) any
defenses or benefits that may be derived from or afforded by law which limit
the liability of or exonerate guarantors or sureties, or which may conflict
with the terms hereof.

 

7.6.   Guarantors’ Rights of Subrogation,
Contribution, etc.  Until the
Guaranteed Obligations (other than contingent obligations for which no claim
has been made) shall have been paid in full and the Revolving Commitments shall
have terminated and all Letters of Credit shall have expired or been cancelled
(unless a Letter of Credit backstop is in place), each Guarantor hereby waives,
to the extent permitted by applicable law, its right to enforce any claim,
right or remedy, direct or indirect, that such Guarantor now has or may
hereafter have against Borrower or any other Guarantor or any of its assets in
connection with this Guaranty or 

 

110

 

the
performance by such Guarantor of its obligations hereunder, in each case
whether such claim, right or remedy arises in equity, under contract, by
statute, under common law or otherwise and including (a) any right of
subrogation, reimbursement or indemnification that such Guarantor now has or
may hereafter have against Borrower with respect to the Guaranteed Obligations,
(b) any right to enforce, or to participate in, any claim, right or remedy
that any Beneficiary now has or may hereafter have against Borrower, and (c) any
benefit of, and any right to participate in, any collateral or security now or
hereafter held by any Beneficiary.  In
addition, until the Guaranteed Obligations (other than contingent obligations
for which no claim has been made) shall have been paid in full and the
Revolving Commitments shall have terminated and all Letters of Credit shall
have expired or been cancelled (unless a Letter of Credit Backstop is in
place), each Guarantor shall withhold exercise of any right of contribution
such Guarantor may have against any other guarantor (including any other
Guarantor) of the Guaranteed Obligations, including any such right of
contribution as contemplated by Section 7.2.  Each Guarantor further agrees that, to the
extent the waiver or agreement to withhold the exercise of its rights of
subrogation, reimbursement, indemnification and contribution as set forth
herein is found by a court of competent jurisdiction to be void or voidable for
any reason, any rights of subrogation, reimbursement or indemnification such
Guarantor may have against Borrower or against any collateral or security, and
any rights of contribution such Guarantor may have against any such other
guarantor, shall be junior and subordinate to any rights any Beneficiary may
have against Borrower, to all right, title and interest any Beneficiary may
have in any such collateral or security, and to any right any Beneficiary may
have against such other guarantor.  If
any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement,
indemnification or contribution rights at any time when all Guaranteed
Obligations (other than contingent obligations for which no claim has been
made) shall not have been paid in full and all Letters of Credit have not been
cancelled or terminated (unless a Letter of Credit Backstop is in place), such
amount shall be held in trust for Administrative Agent on behalf of
Beneficiaries and shall forthwith be paid over to Administrative Agent for the
benefit of Beneficiaries to be credited and applied against the Guaranteed
Obligations, whether matured or unmatured, in accordance with the terms hereof.

 

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

 

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

 

111

 

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

 

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

 

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

 

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

 

(c)  
In the event that all or any portion of the Guaranteed Obligations are
paid by Borrower, the obligations of Guarantors hereunder shall continue and
remain in full force and effect or be reinstated, as the case may be, in the
event that all or any part of such payment(s) are

 

112

 

rescinded or recovered directly or indirectly
from any Beneficiary as a preference, fraudulent transfer or otherwise, and any
such payments which are so rescinded or recovered shall constitute Guaranteed
Obligations for all purposes hereunder.

 

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

 

SECTION 8.   EVENTS OF DEFAULT

 

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

 

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

 

(b)  
Default in Other Agreements. 
(i) Failure of any Credit Party or any of their respective
Subsidiaries to pay when due any principal of or premium on or interest on or
any other amount in the nature of interest payable in respect of one or more
items of Indebtedness (other than Indebtedness referred to in Section 8.1(a))
with an aggregate principal amount of $15,000,000 or more, in each case beyond
the grace period, if any, provided therefor; or (ii) breach or default by
any Credit Party with respect to any other material term of any loan agreement,
mortgage, indenture or other agreement relating to one or more items of
Indebtedness in the individual or aggregate principal amounts referred to in
clause (i) above, in each case beyond the grace period, if any, provided
therefor, if the effect of such breach or default is to cause, or to permit the
holder or holders of that Indebtedness (or a trustee on behalf of such holder
or holders), to cause, that Indebtedness to become or be declared due and
payable (or redeemable) prior to its stated maturity or the stated maturity of
any underlying obligation, as the case may be; or

 

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

 

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

 

113

 

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

 

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

 

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

 

(h)  
Judgments and Attachments. 
Any money judgment, writ or warrant of attachment or similar process
involving in the aggregate at any time an amount in excess of $15,000,000 (in
either case to the extent not adequately covered by insurance as to which a
solvent and unaffiliated insurance company has acknowledged coverage) shall be
entered or filed against Holdings or any of its Subsidiaries or any of their
respective assets and shall remain undischarged, unvacated, unbonded or
unstayed for a period of sixty days (or in any event later than five days prior
to the date of any proposed sale thereunder); or

 

(i)  
Reserved.

 

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(j)  
Employee Benefit Plans.  (i) There
shall occur one or more ERISA Events which individually or in the aggregate
results in or could reasonably be expected to result in liability of Holdings,
any of its Subsidiaries or any of their respective ERISA Affiliates in excess
of $15,000,000 during the term hereof; or (ii) there exists any fact or
circumstance that reasonably could be expected to result in the imposition of a
Lien or security interest under Section 430(k) of the Internal
Revenue Code or under ERISA; or

 

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

 

(l)  
Guaranties, Collateral Documents and other Credit Documents.  At any time after the execution and delivery
thereof, (i) the Guaranty for any reason, other than the satisfaction in
full of all Obligations (other than contingent obligations for which no claim
has been made) and cancellation or expiration of all Letters of Credit (unless
a Letter of Credit Backstop is in place), shall cease to be in full force and
effect (other than in accordance with its terms) or shall be declared to be
null and void or any Guarantor shall repudiate its obligations thereunder, or (ii) this
Agreement, the Intercreditor Agreement or any Collateral Document ceases to be
in full force and effect (other than by reason of a release of Collateral in
accordance with the terms hereof or thereof, the satisfaction in full of the
Obligations (other than contingent obligations for which no claim has been
made) and cancellation or expiration of all Letters of Credit (unless a Letter
of Credit Backstop is in place) in accordance with the terms hereof or the
termination thereof in accordance with its terms) or shall be declared null and
void, or Collateral Agent shall not have or shall cease to have a valid and perfected
Lien in any Collateral purported to be covered by the Collateral Documents
(other than Collateral not required to be perfected and Collateral with an
aggregate fair market value not exceeding $5,000,000) with the priority
required by the relevant Collateral Document, in each case for any reason other
than the failure of Collateral Agent or any Secured Party to take any action
within its control, or (iii) any Credit Party shall contest the validity
or enforceability of any Credit Document in writing or deny in writing that it
has any further liability, including with respect to future advances by
Lenders, under any Credit Document to which it is a party or shall contest the
validity or perfection of any Lien in any Collateral purported to be covered by
the Collateral Documents;

 

THEN, (1) upon the occurrence of any Event of Default
described in Section 8.1(f) or 8.1(g), automatically, and (2) if
any other Event of Default has occurred and is continuing, at the request of
(or with the consent of) Requisite Lenders, upon notice to Borrower by
Administrative Agent, (A) the Revolving Commitments, if any, of each
Lender having such Revolving Commitments and the obligation of Issuing Bank to
issue any Letter of Credit shall immediately terminate; (B) each of the
following shall immediately become due and payable, in each case without
presentment, demand, protest or other requirements of any kind, all of which
are hereby expressly waived by each Credit Party to the extent permitted by
applicable law: (I) the unpaid principal amount of and accrued interest on
the Loans, (II) an amount equal to the maximum amount that may at any time
be drawn under all Letters of Credit then outstanding (regardless of whether
any beneficiary under any such Letter of Credit shall have presented, or shall
be entitled at such time to present, the drafts or other documents or
certificates required to draw under such Letters of Credit), and (III) all
other Obligations; provided, the foregoing shall not affect in any way
the obligations of Lenders under Section 2.3(b)(v) or Section 2.4(e);
(C) Administrative Agent may cause Collateral Agent to enforce any and all
Liens and security interests created pursuant to Collateral Documents; and (D) Administrative
Agent shall direct Borrower to pay 

 

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(and Borrower hereby agrees upon receipt of such
notice, or upon the occurrence of any Event of Default specified in Sections
8.1(f) and (g), to pay) to Administrative Agent such additional amounts of
cash as reasonably requested by Issuing Bank, to be held as security for
Borrower’s reimbursement Obligations in respect of Letters of Credit then
outstanding.

 

SECTION 9.   AGENTS

 

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

 

9.2.   Powers and Duties.  Each Lender irrevocably authorizes each Agent
to take such action on such Lender’s behalf and to exercise such powers, rights
and remedies hereunder and under the other Credit Documents as are specifically delegated or granted to such Agent
by the terms hereof and thereof, together with such powers, rights and remedies
as are reasonably incidental thereto. 
Each Agent shall have only those duties and responsibilities that are
expressly specified herein and in the other Credit Documents.  Each Agent may exercise such powers, rights
and remedies and perform such duties by or through its agents or
employees.  No Agent shall have, by
reason hereof or any of the other Credit Documents, a fiduciary relationship in
respect of any Lender; and nothing herein or in any of the other Credit
Documents, expressed or implied, is intended to or shall be so construed as to
impose upon any Agent any obligations in respect hereof or any of the other
Credit Documents except as expressly set forth herein or therein.

 

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9.3.   General Immunity.

 

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

 

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

 

(c)  
Delegation of Duties. Administrative Agent may perform any
and all of its duties and exercise its rights and powers under this
Agreement or under any other Credit Document by or through any one or more
sub-agents appointed by Administrative Agent. Administrative Agent and any such
sub-agent may perform any and all of its duties and exercise its rights and
powers by or through their respective Affiliates. The exculpatory,
indemnification and other provisions of this Section 9.3 and of Section 9.6
shall apply to any of the Affiliates of Administrative Agent and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative

 

117

 

Agent. 
All of the rights, benefits, and privileges (including the  exculpatory and indemnification
provisions) of this Section 9.3 and of Section 9.6 shall apply to any
such sub-agent and to the Affiliates of any such sub-agent, and shall apply to
their respective activities as sub-agent as if such sub-agent and Affiliates
were named herein.  Notwithstanding
anything herein to the contrary, with respect to each sub-agent appointed by
Administrative Agent, (i) such sub-agent shall be a third party
beneficiary under this Agreement with respect to all such rights, benefits and
privileges (including exculpatory rights and rights to indemnification) and
shall have all of the rights and benefits of a third party beneficiary,
including an independent right of action to enforce such rights, benefits and
privileges (including exculpatory rights and rights to indemnification)
directly, without the consent or joinder of any other Person, against any or
all of the Credit Parties and the Lenders, (ii) such rights, benefits and
privileges (including exculpatory rights and rights to indemnification) shall
not be modified or amended without the consent of such sub-agent, and (iii) such
sub-agent shall only have obligations to Administrative Agent and not to any
Credit Party, Lender or any other Person and no Credit Party, Lender or any
other Person shall have any rights, directly or indirectly, as a third party
beneficiary or otherwise, against such sub-agent.

 

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

 

9.5.   Lenders’ Representations,
Warranties and Acknowledgment.

 

(a)  
Each Lender represents and warrants that it has made its own independent
investigation of the financial condition and affairs of Holdings and its
Subsidiaries in connection with Credit Extensions hereunder and that it has
made and shall continue to make its own appraisal of the creditworthiness of
Holdings and its Subsidiaries.  No Agent
shall have any duty or responsibility, either initially or on a continuing
basis, to make any such investigation or any such appraisal on behalf of
Lenders or to provide any Lender with any credit or other information with
respect thereto, whether coming into its possession before the making of the
Loans or at any time or times thereafter, and no Agent shall have any
responsibility with respect to the accuracy of or the completeness of any
information provided to Lenders.

 

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

 

118

 

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

 

9.7.   Successor Administrative Agent,
Collateral Agent and Committed Swing Line Lender.  (a) Administrative Agent may
resign at any time by giving thirty days’ prior written notice thereof to
Lenders and Borrower.  Upon any such
notice of resignation, Requisite Lenders shall have the right to appoint a
successor Administrative Agent approved by Borrower (which approval (i) shall
not be unreasonably withheld or delayed and (ii) shall not be required
during the continuance of an Event of Default). 
Upon the acceptance of any appointment as Administrative Agent hereunder
by a successor Administrative Agent, that successor Administrative Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Administrative Agent and the retiring Administrative
Agent shall promptly (i) transfer to such successor Administrative Agent
all sums, Securities and other items of Collateral held under the Collateral
Documents, together with all records and other documents necessary or
appropriate in connection with the performance of the duties of the successor
Administrative Agent under the Credit Documents, and (ii) execute and
deliver to such successor Administrative Agent such amendments to financing
statements, and take such other actions, as may be necessary or appropriate in
connection with the assignment to such successor Administrative Agent of the
security interests created under the Collateral Documents, whereupon such
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder.  If the Requisite
Lenders have not appointed a successor Administrative Agent, Administrative
Agent shall have the right to appoint a financial institution to act as
Administrative Agent and/or Collateral Agent hereunder and in any case,
Administrative Agent’s resignation shall become effective on the thirtieth day
after such notice of resignation.  If
neither the Requisite Lenders nor Administrative Agent have appointed a
successor Administrative Agent, the Requisite Lenders shall be deemed to have
succeeded to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent; provided that, until a successor Administrative Agent is so appointed by
the Requisite Lenders or Administrative Agent, (i) Administrative Agent,
by notice to Borrower and the Requisite Lenders, shall retain its

 

119

 

role as
Collateral Agent under any Collateral Document and (ii) the resigning
Administrative Agent shall deliver the Register to the Borrower on the
effective date of its resignation, the Borrower shall maintain such Register
until a successor Administrative Agent has been appointed, and promptly upon
appointment of a successor Administrative Agent, the Borrower shall deliver the
Register to such Person. 
Except as provided in the immediately preceding sentence, resignation of
GSCP or its successor as Administrative Agent pursuant to this Section shall
also constitute the resignation of GSCP or its successor as Collateral Agent,
and any successor Administrative Agent appointed pursuant to this Section shall,
upon its acceptance of such appointment, become the successor Collateral Agent
for all purposes hereunder.  After any
retiring Administrative Agent’s resignation hereunder as Administrative Agent,
the provisions of this Section 9 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent
hereunder.  Any successor Administrative
Agent appointed pursuant to this Section shall, upon its acceptance of
such appointment, become the successor Collateral Agent for all purposes
hereunder.

 

(b)  
Any resignation of GSCP or its successor as Administrative Agent
pursuant to this Section shall also constitute the resignation of GSCP or
its successor as Committed Swing Line Lender, and any successor Administrative
Agent appointed pursuant to this Section shall, upon its acceptance of
such appointment, become the successor Committed Swing Line Lender for all
purposes hereunder.  In such event (a) Borrower
shall prepay any outstanding Committed Swing Line Loans made by the retiring
Administrative Agent in its capacity as Committed Swing Line Lender, (b) upon
such prepayment, the retiring Administrative Agent and Committed Swing Line
Lender shall surrender any Swing Line Note held by it to Borrower for
cancellation, and (c) Borrower shall issue, if so requested by successor
Administrative Agent and Committed Swing Line Lender, a new Swing Line Note to
the successor Administrative Agent and Committed Swing Line Lender, in the
principal amount of the Committed Swing Line Loan Sublimit then in effect and
with other appropriate insertions.

 

9.8.   Collateral Documents and Guaranty.

 

(a)  
Agents under Collateral Documents and Guaranty.  Each Secured Party hereby further authorizes
Administrative Agent or Collateral Agent, as applicable, on behalf of and for
the benefit of Secured Parties, to be the agent for and representative of the
Secured Parties with respect to the Guaranty, the Intercreditor Agreement, the
Collateral and the Collateral Documents; provided that neither Administrative
Agent nor Collateral Agent shall owe any fiduciary duty, duty of loyalty, duty
of care, duty of disclosure or any other obligation whatsoever to any holder of
Obligations with respect to any Hedge Agreement.  Subject to Section 10.5, without further
written consent or authorization from any Secured Party, Administrative Agent
or Collateral Agent, as applicable may execute any documents or instruments
necessary to (i) in connection with a sale or disposition of assets
permitted by this Agreement, release any Lien encumbering any item of
Collateral that is the subject of such sale or other disposition of assets or
to which Requisite Lenders (or such other Lenders as may be required to give
such consent under Section 10.5) have otherwise consented or (ii) release
any Guarantor from the Guaranty pursuant to Section 7.12 or with respect
to which Requisite Lenders (or such other Lenders as may be required to give
such consent under Section 10.5) have otherwise consented.

 

120

 

(b)  
Right to Realize on Collateral and Enforce Guaranty.  Anything contained in any of the Credit
Documents to the contrary notwithstanding, Borrower, Administrative Agent,
Collateral Agent and each Secured Party hereby agree that (i) no Secured
Party shall have any right individually to realize upon any of the Collateral
or to enforce the Guaranty, it being understood and agreed that all powers,
rights and remedies hereunder may be exercised solely by Administrative Agent
on behalf of the Secured Parties in accordance with the terms hereof, and all
powers, rights and remedies under the Collateral Documents may be exercised
solely by Collateral Agent, and (ii) in the event of a foreclosure by
Collateral Agent on any of the Collateral pursuant to a public or private sale
or other disposition, Collateral Agent or any Lender may be the purchaser or
licensor of any or all of such Collateral at any such sale or other disposition
and Collateral Agent, as agent for and representative of Secured Parties (but
not any Lender or Lenders in its or their respective individual capacities
unless Requisite Lenders shall otherwise agree in writing), shall be entitled,
for the purpose of bidding and making settlement or payment of the purchase
price for all or any portion of the Collateral sold at any such public sale, to
use and apply any of the Obligations as a credit on account of the purchase
price for any collateral payable by Collateral Agent at such sale or other
disposition.

 

(c)  
Rights under Hedge Agreements and Treasury Services Agreements.
No Hedge Agreement or Treasury Services
Agreement will create (or be deemed to create)  in favor of any Lender Counterparty that is a party thereto
any rights in connection with the management or release of any Collateral or of
the obligations of any Guarantor under the Credit Documents except as expressly
provided in Section 10.5(c)(v) of this Agreement and Section 9.2
of the Pledge and Security Agreement.

 

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

 

SECTION 10.   MISCELLANEOUS

 

10.1.   Notices.

 

(a)  
Notices Generally.  Any notice or other communication herein required
or permitted to be given to a Credit Party, Syndication Agent, Collateral
Agent, Administrative Agent, Committed Swing Line Lender, Issuing Bank or a
Co-Documentation Agent shall be sent to such Person’s address as set forth on
Appendix B or in the other relevant Credit Document, and in the case of
Uncommitted Swing Line Lender or any Lender, the address as indicated on

 

121

 

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

 

(b)  
Electronic Communications.

 

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

 

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

 

(iii)  
The Platform and any Approved Electronic Communications are provided “as
is” and “as available”.  None of the
Agents or any of their respective officers, directors, employees, agents,
advisors or representatives (the “Agent
Affiliates”) warrant the accuracy, adequacy, or completeness of the Approved
Electronic Communications or the Platform and each expressly disclaims
liability for errors or

 

122

 

omissions
in the Platform and the Approved Electronic Communications.  No warranty of any kind, express, implied or
statutory, including any warranty of merchantability, fitness for a particular
purpose, non-infringement of third party rights or freedom from viruses or
other code defects is made by the Agent Affiliates in connection with the
Platform or the Approved Electronic Communications.

 

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

 

10.2.   Expenses.  On and after the Closing Date, Borrower
agrees to pay promptly (a) all the actual and reasonable out-of-pocket
costs and expenses of preparation of the Credit Documents and any consents,
amendments, waivers or other modifications thereto; (b) all the reasonable
out-of-pocket costs of furnishing all opinions by counsel for Borrower and the
other Credit Parties; (c) the reasonable fees, reasonable out-of-pocket
expenses and reasonable disbursements of one counsel to Agents and Lenders in
connection with the negotiation, preparation, execution and administration of
the Credit Documents and any consents, amendments, waivers or other
modifications thereto and any other documents or matters requested by Borrower;
provided that, reasonable attorney’s fees shall be
limited to one primary counsel and, if reasonably required by Administrative
Agent, one local or specialist counsel for Agent and Lenders in each relevant
jurisdiction, provided further that if counsel for Administrative
Agent determines in good faith that there is an actual or potential conflict of
interest that requires separate representation for the Agents, Borrower shall
be required to pay for one additional counsel for all such Agents taken as a
whole; (d) all the actual and reasonable out-of-pocket costs and
reasonable out-of-pocket expenses of creating, perfecting and recording Liens
in favor of Collateral Agent, for the benefit of the Secured Parties, including
filing and recording fees, expenses and taxes, stamp or documentary taxes,
search fees, title insurance premiums and reasonable fees, reasonable
out-of-pocket expenses and reasonable disbursements of one counsel to
Collateral Agent and Secured Parties and of counsel providing any opinions that
any Agent or Requisite Lenders may reasonably request in respect of the
Collateral or the Liens created pursuant to the Collateral Documents; (e) all
the actual and reasonable out-of-pocket costs and reasonable fees, reasonable
out-of-pocket expenses and reasonable disbursements of any auditors,
accountants, consultants or appraisers; (f) all the actual and reasonable
costs and reasonable out-of-pocket expenses (including the reasonable fees, reasonable
out-of-pocket expenses and reasonable disbursements of any appraisers,
consultants, advisors and agents employed or retained by Collateral Agent and
its counsel in accordance with the terms of the Credit Documents) in connection
with the custody or preservation of any of the Collateral; (g) all other
actual and reasonable out-of-pocket costs and reasonable out-of-pocket expenses
incurred by each Agent in connection with the syndication of the Loans and
Commitments and the negotiation, preparation and execution of the Credit
Documents and any consents, amendments, waivers or other modifications thereto
and the transactions contemplated thereby; and (h) after the occurrence of
a Default or an Event of Default, all reasonable out-of-pocket costs and reasonable
out-of-pocket expenses, including reasonable attorneys’ fees for one counsel
for Agents and Lenders (unless either (i) the Administrative Agent
determines in good faith that there is an actual or potential conflict of
interest that requires separate representation for the Agents or (ii) the
Lenders, or any of them, request separate counsel, in which case,

 

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Borrower
shall be required to pay for one additional counsel for all such Agents and all
such requesting Lenders, taken as a whole) and costs of settlement, incurred by
any Agent and Lenders in enforcing any Obligations of or in collecting any
payments due from any Credit Party hereunder or under the other Credit
Documents by reason of such Default or Event of Default (including in
connection with the sale, lease or license of, collection from, or other
realization upon any of the Collateral or the enforcement of the Guaranty) or
in connection with any refinancing or restructuring of the credit arrangements
provided hereunder in the nature of a “work-out” or pursuant to any insolvency
or bankruptcy cases or proceedings.

 

10.3.   Indemnity.

 

(a)  
In addition to the payment of expenses pursuant to Section 10.2, on
and after the Closing Date, each Credit Party agrees to defend (subject to
Indemnitees’ selection of counsel), indemnify, pay and hold harmless, each
Agent, Arranger and Lender and the officers, partners, members, directors,
trustees, advisors, employees, agents, sub-agents and Affiliates of each Agent,
Arranger and Lender (each, an “Indemnitee”), from and against any and all Indemnified
Liabilities; provided, no Credit Party shall have any obligation to any
Indemnitee hereunder with respect to any Indemnified Liabilities (i) to
the extent such Indemnified Liabilities arise from the gross negligence, bad
faith or willful misconduct of that Indemnitee or its employees, agents,
directors or affiliates or (ii) to the extent such Indemnified Liabilities
arise out of or are in connection with any claim, litigation, loss or
proceeding not involving a Credit Party or any of its Subsidiaries or
Affiliates and that is brought by an Indemnitee against another Indemnitee
(other than against any Arranger or Administrative Agent in their capacities as
such), in each case, as determined by a final, non-appealable judgment of a
court of competent jurisdiction.  To the
extent that the undertakings to defend, indemnify, pay and hold harmless set
forth in this Section 10.3 may be unenforceable in whole or in part
because they are violative of any law or public policy, the applicable Credit
Party shall contribute the maximum portion that it is permitted to pay and
satisfy under applicable law to the payment and satisfaction of all Indemnified
Liabilities incurred by Indemnitees or any of them.

 

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

 

10.4.   Set-Off.  In addition to any rights now or hereafter
granted under applicable law and not by way of limitation of any such rights,
upon the occurrence and continuance of any Event of Default, each Lender is
hereby authorized by each Credit Party at any time or from time to time subject
to the consent of Administrative Agent (such consent not to be unreasonably

 

124

 

withheld or delayed),
without notice to any Credit Party or to any other Person (other than
Administrative Agent), any such notice being hereby expressly waived, to set
off and to appropriate and to apply any and all deposits (general or special,
including Indebtedness evidenced by certificates of deposit, whether matured or
unmatured, but not including trust accounts) and any other Indebtedness at any
time held or owing by such Lender to or for the credit or the account of any
Credit Party against and on account of the obligations and liabilities of any
Credit Party to such Lender hereunder, under the Letters of Credit and
participations therein and under the other Credit Documents, including all
claims of any nature or description arising out of or connected hereto, with
the Letters of Credit and participations therein or with any other Credit
Document, irrespective of whether or not (a) such Lender shall have made
any demand hereunder or (b) the principal of or the interest on the Loans
or any amounts in respect of the Letters of Credit or any other amounts due
hereunder shall have become due and payable pursuant to Section 2 and
although such obligations and liabilities, or any of them, may be contingent or
unmatured.

 

10.5.   Amendments
and Waivers.

 

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

 

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

 

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

 

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

 

(iii)   extend the
stated expiration date of any Letter of Credit beyond the Revolving Commitment
Termination Date (unless a Letter of Credit Backstop is in place);

 

(iv)   reduce the
rate of interest on any Loan (other than any waiver of any increase in the
interest rate applicable to any Loan pursuant to Section 2.10) or any fee
or any premium payable hereunder (it being understood that any change to the
component definitions of the Leverage Ratio affecting the determination of
interest shall only require the consent of Borrower and the Requisite Lenders);

 

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

 

125

 

(vi)   reduce the
principal amount of any Loan or any reimbursement obligation in respect of any
Letter of Credit;

 

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

 

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

 

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

 

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

 

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

 

(i)   increase any
Revolving Commitment of any Lender over the amount thereof then in effect
without the consent of such Lender; provided, no amendment, modification
or waiver of any condition precedent, covenant, Default or Event of Default
shall constitute an increase in any Revolving Commitment of any Lender;

 

(ii)   amend,
modify, terminate or waive any provision hereof relating to the Swing Line
Sublimit or the Swing Line Loans without the consent of Swing Line Lender;

 

(iii)   alter the
required application of any repayments or prepayments as between Classes
pursuant to Section 2.15 without the consent of Lenders holding more than
50% of the aggregate Tranche A Term Loan Exposure of all Lenders,
Tranche B Term Loan Exposure of all Lenders or Revolving Exposure of all
Lenders, as applicable, of each Class which is being allocated a lesser
repayment or prepayment as a result thereof; provided, Requisite Lenders
may waive, in whole or in part, any prepayment so long as the application, as
between Classes, of any portion of such prepayment which is still required to
be made is not altered;

 

(iv)   amend,
modify, terminate or waive any obligation of Lenders relating to the purchase
of participations in Letters of Credit as provided in Section 2.4(e) without
the written consent of Administrative Agent and of Issuing Bank;

 

126

 

(v)   amend,
modify or waive any provision of this Agreement or the Pledge and Security
Agreement so as to alter the ratable treatment of Obligations arising under the
Credit Documents and Obligations arising under Hedge Agreements or Treasury Services Agreement
or the definition of “Lender Counterparty,”
“Hedge Agreement,” “Obligations,” “Secured Obligations,” or “Treasury Services Agreement” (as defined in any applicable Collateral Document) in each
case in a manner adverse to any Lender Counterparty with Obligations then
outstanding without the written consent of any such Lender Counterparty;

 

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

 

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

 

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

 

10.6.   Successors
and Assigns; Participations.

 

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

 

(b)   Register.  Borrower, Administrative Agent and Lenders
shall deem and treat the Persons listed as Lenders in the Register as the
holders and owners of the corresponding Commitments and Loans listed therein
for all purposes hereof, and no assignment or transfer of any such Commitment or
Loan shall be effective, in each case, unless and until recorded in the
Register following receipt of an Assignment Agreement effecting the assignment
or transfer thereof, together with the required forms and certificates
regarding tax matters and any fees payable in connection with such assignment,
in each case, as provided in Section 10.6(d).  Each assignment shall be recorded in the
Register on the Business Day the Assignment Agreement is received by
Administrative Agent, if received by 12:00 noon New York City time, and on the

 

127

 

following Business Day if received after such time, prompt
notice thereof shall be provided to Borrower and a copy of such Assignment
Agreement shall be maintained, as applicable. 
The date of such recordation of a transfer shall be referred to herein
as the “Assignment Effective Date.”  Any request,
authority or consent of any Person who, at the time of making such request or
giving such authority or consent, is listed in the Register as a Lender shall
be conclusive and binding on any subsequent holder, assignee or transferee of
the corresponding Commitments or Loans.

 

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

 

(i)   to any
Person meeting the criteria of clause (i) of the definition of the term “Eligible
Assignee” upon the giving of notice to Borrower and Administrative Agent; and

 

(ii)   to any
Person meeting the criteria of clause (ii) of the definition of the term “Eligible
Assignee” upon giving of notice to Borrower and Administrative Agent and, in
the case of assignments of Tranche A Term Loans, Tranche A Term Loan
Commitments, Revolving Loans or Revolving Commitments to any such Person
(except in the case of assignments made by or to GSCP or Lehman Commercial
Paper Inc.), consented to by each of Borrower and Administrative Agent (such
consent not to be (x) unreasonably withheld or delayed or, (y) in the
case of Borrower, required at any time an Event of Default shall have occurred
and then be continuing); provided, further each such assignment pursuant
to this Section 10.6(c)(ii) shall be in an aggregate amount of not
less than (A) $2,500,000 (or such lesser amount as may be agreed to by
Borrower and Administrative Agent or as shall constitute the aggregate amount
of the Revolving Commitments and Revolving Loans of the assigning Lender) with
respect to the assignment of the Revolving Commitments and Revolving Loans and (B) $1,000,000
(or such lesser amount as may be agreed to by Borrower and Administrative Agent
or as shall constitute the aggregate amount of the Tranche A Term Loans or
Tranche B Term Loans of the assigning Lender) with respect to the assignment of
Term Loans.

 

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

 

128

 

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

 

(f)   Effect of
Assignment.  Subject to the terms and
conditions of this Section 10.6, as of the “Assignment Effective Date” (i) the
assignee thereunder shall have the rights and obligations of a “Lender”
hereunder to the extent of its interest in the Loans and Commitments as
reflected in the Register and shall thereafter be a party hereto and a “Lender”
for all purposes hereof; (ii) the assigning Lender thereunder shall, to
the extent that rights and obligations hereunder have been assigned to the
assignee, relinquish its rights (other than any rights which survive the
termination hereof under Section 10.8) and be released from its
obligations hereunder (and, in the case of an assignment covering all or the
remaining portion of an assigning Lender’s rights and obligations hereunder,
such Lender shall cease to be a party hereto on the Assignment Effective Date; provided,
anything contained in any of the Credit Documents to the contrary
notwithstanding, (y) Issuing Bank shall continue to have all rights and
obligations thereof with respect to such Letters of Credit until the
cancellation or expiration of such Letters of Credit and the reimbursement of
any amounts drawn thereunder and (z) such assigning Lender shall continue
to be entitled to the benefit of all indemnities hereunder as specified herein
with respect to matters arising out of the prior involvement of such assigning
Lender as a Lender hereunder); (iii) the Commitments shall be modified to
reflect any Commitment of such assignee and any Revolving Commitment of such
assigning Lender, if any; and (iv) if any such assignment occurs after the
issuance of any Note hereunder, the assigning Lender shall, upon the
effectiveness of such assignment or as promptly thereafter as practicable,
surrender its applicable Notes to Administrative Agent for cancellation, and
thereupon Borrower shall issue and deliver new Notes, if so requested by the
assignee and/or assigning Lender, to such assignee and/or to such assigning
Lender, with appropriate insertions, to reflect the new Revolving Commitments
and/or outstanding Loans of the assignee and/or the assigning Lender.

 

(g)   Participations.

 

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

 

(ii)    The holder
of any such participation, other than an Affiliate of the Lender granting such
participation, shall not be entitled to require such Lender to take or omit to
take any action hereunder except with respect to any amendment, modification or
waiver that would (A) extend the final scheduled maturity of any Loan,
Note or Letter of Credit (unless such Letter of Credit is not extended beyond
the Revolving Commitment Termination Date or such Letter of Credit is subject
to a Letter of Credit Backstop) in

 

129

 

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

 

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

 

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

 

130

 

result of any such assignment and pledge, and provided
further, that in no event shall the applicable Federal Reserve Bank or
other pledgee be considered to be a “Lender” or be entitled to require the
assigning Lender to take or omit to take any action hereunder.

 

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

 

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

 

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

 

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

 

131

 

construed
to be a waiver thereof, nor shall it preclude the further exercise of any such
right, power or remedy.

 

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

 

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

 

10.12.   Obligations
Several; Independent Nature of Lenders’ Rights.  The obligations of Lenders hereunder are
several and no Lender shall be responsible for the obligations or Commitment of
any other Lender hereunder.  Nothing
contained herein or in any other Credit Document, and no action taken by
Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a
partnership, an association, a joint venture or any other kind of entity. The
amounts payable at any time hereunder to each Lender shall be a separate and
independent debt, and each Lender shall be entitled to protect and enforce its
rights arising out hereof and it shall not be necessary for any other Lender to
be joined as an additional party in any proceeding for such purpose.

 

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

 

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

 

10.15.   CONSENT TO
JURISDICTION.  ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY
HERETO ARISING OUT OF OR RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY
OF THE OBLIGATIONS, MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF
COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK.  BY EXECUTING AND DELIVERING THIS AGREEMENT,
EACH PARTY HERETO, FOR

 

132

 

ITSELF AND IN CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (A) ACCEPTS
GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH
COURTS; (B) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (C) AGREES
THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE
MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE
APPLICABLE PARTY HERETO AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION 10.1;
(D) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (C) ABOVE IS SUFFICIENT
TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE PARTY HERETO IN ANY SUCH
PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING
SERVICE IN EVERY RESPECT; AND (E) AGREES THAT ANY PARTY HERETO RETAINS THE
RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING
PROCEEDINGS AGAINST ANY OTHER PARTY HERETO IN THE COURTS OF ANY OTHER
JURISDICTION.

 

10.16.   WAIVER
OF JURY TRIAL.  EACH OF
THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL
OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF
THE OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT
MATTER OF THIS LOAN TRANSACTION OR THE LENDER/BORROWER RELATIONSHIP THAT IS
BEING ESTABLISHED.  THE SCOPE OF THIS
WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS.  EACH
PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER
INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN
ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS
WAIVER IN ITS RELATED FUTURE DEALINGS. 
EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED
THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES
ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT
BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER
SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT
DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE
HEREUNDER.  IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

10.17.   Confidentiality. 
Each Agent and each Lender (which term shall for the purposes of this Section 10.17
include the Issuing Bank) shall hold all non-public information regarding

 

133

 

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

 

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

 

134

 

times
been in effect.  Notwithstanding the
foregoing, it is the intention of Lenders and Borrower to conform strictly to
any applicable usury laws.  Accordingly,
if any Lender contracts for, charges, or receives any consideration which
constitutes interest in excess of the Highest Lawful Rate, then any such excess
shall be cancelled automatically and, if previously paid, shall at such Lender’s
option be applied to the outstanding amount of the Loans made hereunder or be
refunded to Borrower.

 

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

 

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

 

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

 

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

 

10.23.   No
Fiduciary Duty.  Each Agent,
each Arranger, each Lender and their Affiliates (collectively, solely for
purposes of this paragraph, the “Lenders”),
may have economic interests that conflict with those of Borrower.  Borrower agrees that nothing in the Credit
Documents or otherwise will be deemed to create an advisory, fiduciary or
agency relationship or fiduciary or other implied duty between Lenders and
Borrower, its stockholders

 

135

 

or
its affiliates.  Borrower acknowledges
and agrees that (i) the transactions contemplated by the Credit Documents
are arm’s-length commercial transactions between Lenders, on the one hand, and
Borrower, on the other, (ii) in connection therewith and with the process
leading to such transaction each of the Lenders is acting solely as a principal
and not the agent or fiduciary of Borrower, its management, stockholders,
creditors or any other person, (iii) no Lender has assumed an advisory or
fiduciary responsibility in favor of Borrower with respect to the transactions
contemplated hereby or the process leading thereto (irrespective of whether any
Lender or any of its affiliates has advised or is currently advising Borrower
on other matters) or any other obligation to Borrower except the obligations
expressly set forth in the Credit Documents and (iv) Borrower has
consulted its own legal and financial advisors to the extent it deemed
appropriate.  Borrower further
acknowledges and agrees that it is responsible for making its own independent
judgment with respect to such transactions and the process leading thereto.  Borrower agrees that it will not claim that
any Lender has rendered advisory services of any nature or respect, or owes a
fiduciary or similar duty to Borrower, in connection with such transaction or
the process leading thereto.

 

[Remainder of page intentionally left
blank]

 

136

 

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

 

 

	
   

  	
   

  	
  ALDABRA SUB LLC, as Borrower prior to the 

  
	
   

  	
   

  	
  BPH Merger

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
   

  	
   

  	
  Name:
  Samuel K. Cotterell

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
  Borrower after the BPH Merger

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
   

  	
   

  	
  Name:
  Samuel K. Cotterell

  
	
   

  	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ALDABRA HOLDING SUB LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
   

  	
   

  	
  Name: Samuel K.
  Cotterell

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  
						

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  BOISE WHITE PAPER, L.L.C.

  
	
   

  	
   

  	
  BOISE PACKAGING & NEWSPRINT, L.L.C.

  
	
   

  	
   

  	
  BOISE CASCADE TRANSPORTATION

  
	
   

  	
   

  	
  HOLDINGS CORP.

  
	
   

  	
   

  	
  BOISE WHITE PAPER SALES CORP.

  
	
   

  	
   

  	
  BOISE WHITE PAPER HOLDINGS CORP.

  
	
   

  	
   

  	
  INTERNATIONAL FALLS POWER

  
	
   

  	
   

  	
  COMPANY

  
	
   

  	
   

  	
  MINNESOTA, DAKOTA & WESTERN

  
	
   

  	
   

  	
  RAILWAY COMPANY

  
	
   

  	
   

  	
  BEMIS CORPORATION

  
	
   

  	
   

  	
  BC CHINA CORPORATION

  
	
   

  	
   

  	
  B C T, INC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Samuel K. Cotterell

  
	
   

  	
   

  	
   

  	
  Name:
  Samuel K. Cotterell

  
	
   

  	
   

  	
   

  	
  Title:
  Vice President

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  GOLDMAN SACHS CREDIT PARTNERS L.P.,

  
	
   

  	
   

  	
  as
  Administrative Agent, Collateral Agent, and a 

  
	
   

  	
   

  	
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Tom Connolly

  
	
   

  	
   

  	
   

  	
  Authorized Signatory

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  TORONTO DOMINION (TEXAS) LLC,

  
	
   

  	
   

  	
  as
  Syndication Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jackie Barrett

  
	
   

  	
   

  	
   

  	
  Name: Jackie Barrett

  
	
   

  	
   

  	
   

  	
  Title:
  Authorized Signatory

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
   

  	
  as
  Issuing Bank, Committed Swing Line Lender,

  
	
   

  	
   

  	
  Co-Documentation
  Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Michael L. Letson, Jr.

  
	
   

  	
   

  	
   

  	
  Name: Michael L.
  Letson, Jr.

  
	
   

  	
   

  	
   

  	
  Title:
  Vice President

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  COBANK, ACB,

  
	
   

  	
   

  	
  as
  Co-Documentation Agent and a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Scott Trauth

  
	
   

  	
   

  	
   

  	
  Name: Scott Trauth

  
	
   

  	
   

  	
   

  	
  Title:
  Senior Vice President

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  LEHMAN COMMERCIAL PAPER INC.,

  
	
   

  	
   

  	
  as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Laurie B. Perper

  
	
   

  	
   

  	
   

  	
  Name: Laurie B. Perper

  
	
   

  	
   

  	
   

  	
  Title:
  Managing Director

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  COÖPERATIVE CENTRALE RAIFFEISEN-

  
	
   

  	
   

  	
  BOERENLEENBANK B.A. “RABOBANK

  
	
   

  	
   

  	
  NEDERLAND” NEW YORK BRANCH, as

  
	
   

  	
   

  	
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Jana Dombrowski

  
	
   

  	
   

  	
   

  	
  Name: Jana Dombrowski

  
	
   

  	
   

  	
   

  	
  Title:
  Executive Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Rebecca O. Morrow

  
	
   

  	
   

  	
   

  	
  Name:
  Rebecca O. Morrow

  
	
   

  	
   

  	
   

  	
  Title:
  Executive Director

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  THE BANK OF NOVA SCOTIA,

  
	
   

  	
   

  	
  as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Chris Osborn

  
	
   

  	
   

  	
   

  	
  Name: Chris Osborn

  
	
   

  	
   

  	
   

  	
  Title: Managing
  Director

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  BANK OF THE WEST,

  
	
   

  	
   

  	
  as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Sean Edwards

  
	
   

  	
   

  	
   

  	
  Name: Sean Edwards

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  AgStar Financial
  Services, PCA/FLCA,

  
	
   

  	
   

  	
  as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Troy Mostaert

  
	
   

  	
   

  	
   

  	
  Name: Troy Mostaert

  
	
   

  	
   

  	
   

  	
  Title: Vice President

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  WELLS FARGO BANK, N.A.,

  
	
   

  	
   

  	
  as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Reginald M. Goldsmith III

  
	
   

  	
   

  	
   

  	
  Name: Reginald M.
  Goldsmith III

  
	
   

  	
   

  	
   

  	
  Title: Senior Vice
  President

  

 

Credit and Guaranty
Agreement (First Lien)

 

	
   

  	
   

  	
  JP MORGAN CHASE BANK,
  N.A.,

  
	
   

  	
   

  	
  as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Peter S. Predun

  
	
   

  	
   

  	
   

  	
  Name: Peter S. Predun

  
	
   

  	
   

  	
   

  	
  Title: Executive
  Director

  

 

Credit and Guaranty
Agreement (First Lien)

 

 

	
   

  	
   

  	
  RZB Finance, LLC,

  
	
   

  	
   

  	
  as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  John A. Valiska

  
	
   

  	
   

  	
   

  	
  Name: John A. Valiska

  
	
   

  	
   

  	
   

  	
  Title: First Vice
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Shirley Ritch

  
	
   

  	
   

  	
   

  	
  Name: Shirley Ritch

  
	
   

  	
   

  	
   

  	
  Title: Assistant Vice
  President

  

 

Credit and
Guaranty Agreement (First Lien)

 

 

APPENDIX
A-1

TO
CREDIT AND GUARANTY AGREEMENT

 

Tranche A Term Loan
Commitments

 

	
  Lender

  	
   

  	
  Tranche A

  Term Loan Commitment

  	
   

  	
  Pro

  Rata Share

  	
   

  
	
  CoBank, ACB

  	
   

  	
  $

  	
  100,000,000.00

  	
   

  	
  40.0

  	
  %

  
	
  Bank of America,
  N.A.

  	
   

  	
  $

  	
  32,500,000.00

  	
   

  	
  13.0

  	
  %

  
	
  Toronto Dominion
  (Texas) LLC

  	
   

  	
  $

  	
  32,500,000.00

  	
   

  	
  13.0

  	
  %

  
	
  Coöperatieve
  Centrale Raiffeisen-Boerenleenbank B.A. “Rabobank Nederland” New York Branch

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  10.0

  	
  %

  
	
  The Bank of Nova
  Scotia

  	
   

  	
  $

  	
  12,500,000.00

  	
   

  	
  5.0

  	
  %

  
	
  Bank of the West

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  4.0

  	
  %

  
	
  AgStar Financial
  Services, PCA/FLCA

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  4.0

  	
  %

  
	
  Wells Fargo
  Bank, N.A.

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  4.0

  	
  %

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  	
  $

  	
  2,500,000.00

  	
   

  	
  1.0

  	
  %

  
	
  RZB Finance LLC

  	
   

  	
  $

  	
  2,500,000.00

  	
   

  	
  1.0

  	
  %

  
	
  Goldman Sachs
  Credit Partners L.P.

  	
   

  	
  $

  	
  12,500,000.00

  	
   

  	
  5.0

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  250,000,000.00

  	
   

  	
  100

  	
  %

  

 

A-1-1

 

APPENDIX
A-2

TO
CREDIT AND GUARANTY AGREEMENT

 

Tranche B Term Loan
Commitments

 

	
  Lender

  	
   

  	
  Tranche B

  Term Loan Commitment

  	
   

  	
  Pro

  Rata Share

  	
   

  
	
  Goldman Sachs
  Credit Partners L.P.

  	
   

  	
  $

  	
  415,000,000.00

  	
   

  	
  87.36842

  	
  %

  
	
  CoBank, ACB

  	
   

  	
  $

  	
  60,000,000.00

  	
   

  	
  12.63158

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  475,000,000.00

  	
   

  	
  100

  	
  %

  

 

A-2-1

 

APPENDIX
A-3

TO
CREDIT AND GUARANTY AGREEMENT

 

Revolving Commitments

 

	
  Lender

  	
   

  	
  Revolving Commitment

  	
   

  	
  Pro

  Rata Share

  	
   

  
	
  CoBank, ACB

  	
   

  	
  $

  	
  100,000,000.00

  	
   

  	
  40.0

  	
  %

  
	
  Bank of America,
  N.A.

  	
   

  	
  $

  	
  32,500,000.00

  	
   

  	
  13.0

  	
  %

  
	
  Toronto Dominion
  (Texas) LLC

  	
   

  	
  $

  	
  32,500,000.00

  	
   

  	
  13.0

  	
  %

  
	
  Coöperatieve
  Centrale Raiffeisen-Boerenleenbank B.A. “Rabobank Nederland” New York Branch

  	
   

  	
  $

  	
  25,000,000.00

  	
   

  	
  10.0

  	
  %

  
	
  The Bank of Nova
  Scotia

  	
   

  	
  $

  	
  12,500,000.00

  	
   

  	
  5.0

  	
  %

  
	
  Bank of the West

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  4.0

  	
  %

  
	
  AgStar Financial
  Services, PCA/FLCA

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  4.0

  	
  %

  
	
  Wells Fargo
  Bank, N.A.

  	
   

  	
  $

  	
  10,000,000.00

  	
   

  	
  4.0

  	
  %

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  	
  $

  	
  2,500,000.00

  	
   

  	
  1.0

  	
  %

  
	
  RZB Finance LLC

  	
   

  	
  $

  	
  2,500,000.00

  	
   

  	
  1.0

  	
  %

  
	
  Goldman Sachs
  Credit Partners L.P.

  	
   

  	
  $

  	
  12,500,000.00

  	
   

  	
  5.0

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  250,000,000.00

  	
   

  	
  100

  	
  %

  

 

A-3-1

 

APPENDIX
B

TO
CREDIT AND GUARANTY AGREEMENT

 

Notice Addresses

 

ALDABRA SUB LLC

BOISE PAPER
HOLDINGS, L.L.C.

ALDABRA HOLDING
SUB LLC

BOISE WHITE PAPER,
L.L.C.

BOISE PACKAGING &
NEWSPRINT, L.L.C.

BOISE CASCADE
TRANSPORTATION HOLDINGS CORP.

BOISE WHITE PAPER
SALES CORP.

BOISE WHITE PAPER
HOLDINGS CORP.

INTERNATIONAL
FALLS POWER COMPANY

MINNESOTA, DAKOTA &
WESTERN RAILWAY COMPANY

BEMIS CORPORATION

BC CHINA
CORPORATION

B C T, INC

 

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

1111
West Jefferson Street

Suite 200

Boise,
ID 83702-5388

Attention: Chief
Financial Officer

Facsimile: (208)
384-4913

Email:
RobMcNutt@BoiseInc.com

 

in each case, with
a copy to:

 

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

1111
West Jefferson Street

Suite 200

Boise,
ID 83702-5388

Attention: General
Counsel

Facsimile: (208)
384-7945

Email:
Legal@BoiseInc.com

 

B-2

 

GOLDMAN SACHS CREDIT PARTNERS L.P., 

as Administrative Agent, Collateral Agent and a Lender:

 

Administrative Agent’s Principal Office:

 

Goldman Sachs Credit Partners L.P. 

c/o Goldman, Sachs & Co. 

30 Hudson Street, 36th Floor 

Jersey City, NJ 07302 

Attention: SBD Operations 

Attention:  Andrew Caditz 

Telecopier:  (212) 428-1243  

Email: gsd.link@gs.com

 

with a copy to:

 

Goldman Sachs Credit Partners L.P. 

1 New York Plaza 

New York, New York  10004 

Attention:  Rob Schatzman

Telecopier:  (212) 902-3000 

Email: rwschatzman@am.ibd.gs.com

 

GOLDMAN SACHS CREDIT PARTNERS L.P., 

As Swing Line Lender

 

Goldman Sachs Credit Partners L.P. 

30 Hudson Street, 17th Floor 

Jersey City, New Jersey  07302 

Attention:  Philip Green

Telecopier:  (212) 357-4597

Email: Philip.F.Green@ny.email.gs.com

 

B-3

 

TORONTO DOMINION
(TEXAS) LLC,

as Syndication
Agent and a Lender

 

TORONTO DOMINION
(TEXAS) LLC

31
West 52nd Street, 22nd Floor

New
York, New York  10019

Attention:
Nicholas Iwanowycz

Facsimile:
(212) 827-7232

 

B-4

 

BANK OF AMERICA,
NA.,

as Issuing Bank,
Committed Swing Line Lender, Co-Documentation Agent and a Lender

 

Issuing Bank’s
Principal Office:

 

BANK
OF AMERICA, N.A.

315
Montgomery Street

San
Francisco, California 94104-1866

Attention:
Mike Balok

Facsimile:
(415) 622-4585

Email:
mike.balok@bankofamerica.com

 

B-5

 

COBANK, ACB,

as
Co-Documentation Agent

 

COBANK, ACB

5500
South Quebec Street

Greenwood
Village, CO 80111

Attention:
Michael Tousignant

Facsimile:
(303) 224-2539

Email:
mtousignant@cobank.com

 

with a copy to:

 

COBANK, ACB

5500
South Quebec Street

Greenwood
Village, CO 80111

Attention:
Beth Johnson

Facsimile:
(303) 740-4021

Email:
Agencybank@cobank.com

 

B-6

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