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WAVER AND FOURTH AMENDMENT TO
  STANDBY PURCHASE AND NOTE SUPPORT AGREEMENT    

        THIS
WAIVER AND FOURTH AMENDMENT (this "Fourth Amendment"), dated as of July 23, 2002, is entered into by and among
LOUISIANA-PACIFIC CORPORATION, a Delaware Corporation ("L-P"), BANK OF AMERICA, N.A., a national banking association
("BofA"), and CANADIAN IMPERIAL BANK OF COMMERCE, a Canadian chartered bank ("CIBC"). 

 
 

RECITALS:    

	A.
	L-P,
BofA and CIBC are parties to a Standby Purchase and Note Support Agreement, dated as of August 16, 1999, as amended by the Waiver and First Amendment to Standby
Purchase and Note Support Agreement, dated as of July 18, 2001, the Second Amendment (the "Second Amendment") to Standby Purchase and Note
Support Agreement, dated as of November 15, 2001 and the Consent and Third Amendment to the Standby Purchase and Note Support Agreement, dated as of December 30, 2001 (collectively, the
"Agreement"), pursuant to which L-P has agreed to purchase certain Installment Notes (as such term is defined therein) from BofA and CIBC
(collectively, the "Standby Lenders") under certain circumstances.

	B.
	L-P
and BofA also executed that certain Collateral Agency and Security Agreement dated as of November 15, 2001 pursuant to which L-P granted to BofA, as
collateral agent (the "Collateral Agreement") for the benefit of the Standby Lenders a security interest in certain assets of L-P to secure
L-P's Obligations under the Agreement (the "Standby Security Agreement").

	C.
	L-P
previously entered into a Credit Agreement, dated as of November 15, 2001 (as amended, modified and supplemented from time to time, the
"Credit Agreement"), by and among L-P, the several financial institutions from time to time party thereto (collectively, the "Banks"), and
BofA, as agent for the Banks, certain covenants of which were incorporated by reference in the Agreement upon the effectiveness of the Second Amendment.

	D.
	Concurrently
with the execution of this Fourth Amendment, L-P, Banks constituting "Required Lenders" under the Credit Agreement, and BofA, as agent for the Banks, are
entering into a Waiver and Second Amendment, dated as of July 23, 2002 (the "US Amendment"), attached hereto as  Exhibit A,
pursuant to which (1) such Banks are waiving defaults and events of defaults arising from (x) unintentional omissions and inaccuracies on Schedules 5.13 and 7.02 of the Credit
Agreement and (y) unintentional defaults and events of defaults under the Permitted Securitization (as defined in the Credit Agreement), and (ii) L-P and such Banks are
(X) amending and restating Schedules 5.13 and 7.02 of the Credit Agreement, and (Y) amending the Security Agreement by L-P in favor of BofA as Agent, dated as of
November 15, 2001 (the "Security Agreement").

	E.
	Because
the Agreement incorporates by reference certain of the provisions of the Credit Agreement, without giving effect to any amendment thereof unless consented to by the Standby
Lenders, L-P has asked the Standby Lenders to consent to the amendment and restatement of the Schedules as referred to above. L-P and the Standby Lenders would also like to
amend the Standby Security Agreement to conform to the amendment of the Security Agreement described in Section 4 of the US Amendment.

	F.
	L-P
has reported to the Standby Lenders that the defaults and events of defaults being waived in the US Amendment result in breaches and defaults under the Agreement.
L-P has asked the Standby Lenders to waive such breaches and defaults. 

 

        NOW,
THEREFORE, the parties hereto hereby agree as follows: 

        1.    Consent and Amendments.    

	(a)
	The
Standby Lenders hereby consent to the amendment and restatement of Schedules 5.13 and 7.02 of the Credit Agreement described in Section 3 of the US Amendment, and
the Standby Lenders acknowledge that such amendment and restatement is effective pursuant to Section 2(a)(i) of the Agreement as an amendment of Sections 5.13 and 7.02 of the
Credit Agreement as incorporated in the Agreement.

	(b)
	Section 4.1(a) of
the Standby Security Agreement is hereby amended to read as follows: 

"(a)    keep
all the inventory (other than inventory sold in the ordinary course of business or inventory in transit in the ordinary course of business to or between the locations of the
Grantor specified in Item A of Schedule I or to purchasers of such inventory) at the
places therefor specified in Section 3.1 and the office(s) where it keeps its records concerning the Inventory located at the addresses set forth on Item
B of Schedule I or at such other places in a jurisdiction where all representations and warranties set forth in
Article III (including Section 3.5) shall be true and correct, and all action required pursuant to Section 4.5 shall have been taken with respect to the Inventory, and to deliver
not more than thirty days after the end of each fiscal quarter a report in form and substance satisfactory to the Collateral Agent which discloses the locations of all places where Inventory is
stored; and" 

        2.    Waiver.    

	(a)
	The
Standby Lenders hereby waive any breach or default of the Agreement existing on the date hereof arising solely from the Existing Defaults (as defined in the US Amendment) (the
"Forex Defaults").

	(b)
	Nothing
contained herein shall be deemed a waiver of (or otherwise affect BofA's or CIBC's ability to enforce) any breach or default (other than the Forex Defaults), including without
limitation (i) any breach or default (other than the Forex Defaults) as may now or hereafter exist and arise from or otherwise be related to the Forex Defaults (including without limitation any
cross-default arising under the Agreement (other than the Forex Defaults) by virtue of any matters resulting from the Forex Defaults), and (ii) any breach or default under the Agreement (other
than the Forex Defaults) existing at any time after the Effective Date (as defined below) which is the same as any of the Forex Defaults. 

        3.    Representations and Warranties.    L-P hereby represents and warrants, as of the Effective Date (as
defined below), as follows: 

	(a)
	Other
than the Forex Defaults, no breach or default has occurred and is continuing under the Agreement.

	(b)
	The
execution, delivery and performance of this Fourth Amendment by L-P have been duly authorized by all necessary corporate and other action and do not and will not
require any registration with, consent or approval of, notice to or action by, any person (including any governmental agency) in order to be effective and enforceable. The Agreement, as amended by
this Fourth Amendment, constitutes the legal, valid and binding obligation of L-P, enforceable against L-P in accordance with its respective terms, without defense,
counterclaim or offset, except as enforceability 

2

 

may
be limited by Debtor Relief Laws (as defined in the Credit Agreement) or by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 

	(c)
	After
giving effect to this Fourth Amendment, all its representations and warranties contained in the Agreement are true and correct as though made on and as  of the Effective Date, as defined below in
Section 4 (except to the extent such representations and warranties specifically relate to an earlier
date, in which case they were true and correct as of such earlier date, and, with respect to Section 5.13(c)(i), except to the extent disclosed on Schedule 1 hereto).

	(d)
	It
is entering into this Fourth Amendment on the basis of its own investigation and for its own reasons, without reliance upon BofA or CIBC (except for the performance of the terms
hereof applicable to them) or any other person. 

        4.    Effective Date.    This Fourth Amendment will become effective as of the date first written above (the
"Effective Date"), provided that (a) the effective date (as defined in the US Amendment) has occurred, and (b) BofA and CIBC have received an original or facsimile of this Fourth
Amendment, duly executed by BofA, CIBC and LP. 

        5.    Reservation of Rights.    L-P acknowledges and agrees that neither the Standby Lenders' forbearance
in exercising their rights and remedies in connection with the Forex Defaults nor the execution and delivery by the Forex Lenders of this Fourth Amendment, shall be deemed (i) to create a
course of dealing or otherwise obligate the Forex Lenders to forbear or execute similar waivers under the same or similar circumstances in the future or (ii) to waive, relinquish or impair any
right of the Forex Lenders to receive any indemnity or similar payment from any person or entity as a result of any matter arising from or relating to the Forex Defaults. 

        6.    Miscellaneous.    

	(a)
	Except
as expressly amended, all terms, covenants and provisions of the Agreement are and shall remain in full force and effect and all references therein to such Agreement shall
henceforth refer to the Agreement as amended by this Fourth Amendment. This Fourth Amendment shall be deemed incorporated into, and a part of, the Agreement.

	(b)
	This
Fourth Amendment shall be binding upon and inure to the benefit of the parties hereto and thereto and their respective successors and assigns. No third party beneficiaries are
intended in connection with this Fourth Amendment (including, without limitation, any holder of Installment Notes other than BofA or CIBC and any trustee under the indenture under which the
Installment Notes were issued).

	(c)
	This
Fourth Amendment shall be governed by and construed in accordance with the law of the State of California (without regard to principles of conflicts of laws).

	(d)
	This
Fourth Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument.

	(e)
	This
Fourth Amendment, together with the Agreement, contains the entire and exclusive agreement of the parties hereto with reference to the matters discussed herein and therein. This
Fourth Amendment supersedes all prior drafts and communications with respect thereto. This Fourth Amendment may not be amended except in accordance with the provisions of Paragraph 3(b) of the
Agreement. 

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	(f)
	If
any term or provision of this Fourth Amendment shall be deemed prohibited by or invalid under any applicable law, such provision shall be invalidated without affecting the
remaining provisions of this Fourth Amendment or the Agreement, respectively.

	(g)
	L-P
hereby covenants to pay or to reimburse BofA and CIBC, upon demand, for all reasonable costs and expenses (including reasonable attorney fees and expenses) incurred in
connection with the development, preparation, negotiation, execution and delivery of this Fourth Amendment, and any other amendments or other documents relating to this Fourth Amendment. 

[REST OF THIS PAGE INTENTIONALLY LEFT BLANK]  

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        IN WITNESS WHEREOF, the parties hereto have executed and delivered this Waiver and Fourth Amendment to Standby Purchase and Note Support Agreement as of the date
first above written. 

	 	 	LOUISIANA-PACIFIC CORPORATION
	

 	
 	

By:	

/s/  CURTIS M. STEVENS      

	 	 	Name:	Curtis M. Stevens
	 	 	Title:	EVP & CFO
	

 	
 	
BANK OF AMERICA, N.A., as Collateral Agent and Standby Lender
	

 	
 	

By:	

/s/  MICHAEL BALOK      

	 	 	Name:	Michael Balok
	 	 	Title:	Managing Director
	

 	
 	
CANADIAN IMPERIAL BANK OF COMMERCE, as Standby Lender
	

 	
 	

By:	

/s/  DAVID WHITE      

	 	 	Name:	David White
	 	 	Title:	Managing Director Executive Director

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SCHEDULE I    
  

        On May 4, 2002, the Company announced a program of facility sales and closures that to the extent implemented may result in a reduction under ERISA
Section 4043(c)(3) of more than 20 percent of the active participants in 2002 or 2003, or more than 25 percent of the active participants in 2002 and 2003, in either or both of
the Louisiana-Pacific Corporation Retirement Account Plan or the ABTco. Inc. Retirement Plan. 

        As
such, it would be a Reportable Event, unless the 30 day notice period has been waived under 29 CFR Section 4043.23(c)(2) or (3). It is not presently known whether either
such waiver will apply and thus it is not presently certain that either such event would be a Reportable Event under the Credit
Agreement. Such participant reductions may constitute a partial termination of either or both such Plans, in which event the affected participants must under tax qualified plan law be vested to the
extent their benefits are funded. The Company has decided to fully vest the affected participants who are not already vested, by Plan amendment, instead of incurring the substantial administrative
expenses and uncertainties of a vesting to the extent funded determination. 

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WAVER AND FOURTH AMENDMENT TO STANDBY PURCHASE AND NOTE SUPPORT AGREEMENT

RECITALS

SCHEDULE IQuickLinks
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WAIVER AND FIRST AMENDMENT    
  

        This WAIVER AND FIRST AMENDMENT ("First Amendment"), dated as of July 23, 2002, is entered into by and among LOUISIANA-PACIFIC CANADA LTD., a
British Columbia Company (the "Borrower"), LOUISIANA-PACIFIC CORPORATION, a Delaware corporation (the "Guarantor"), and ROYAL BANK OF CANADA, a Canadian chartered bank
("Royal"). 

 
 

RECITALS    

        A.    The
Borrower, the Guarantor and Royal are parties to a Credit Agreement dated as of November 30, 2001 (as amended or modified from time to time, the "Credit
Agreement"), pursuant to which Royal has extended certain credit facilities to the Borrower. 

        B.    In
December, 2001 the Guarantor obtained a consent to exclude from the calculation of Consolidated Net Income, for the four consecutive fiscal quarter period ended
December 31, 2001, certain non-cash unusual charges. In order to document such consent the Guarantor has asked Royal to confirm its consent in this First Amendment and Royal has
agreed to do so. 

        C.    The
Borrower and the Guarantor have reported to Royal that Schedule D to the Credit Agreement needs to be corrected and updated due to certain unintentional
inaccuracies on such Schedule. The Borrower and the Guarantor have asked Royal to amend Schedule D to the Credit Agreement to correct and update certain information and, subject to the terms
and conditions of this First Amendment, Royal has agreed to do so. 

        D.    The
Borrower and the Guarantor have reported to Royal that there have been certain unintentional defaults and events of default under the Guarantor Credit Agreement, as
more fully described in the waiver, attached hereto as Exhibit A (the Guarantor Credit Facility Waiver"). Pursuant to the Guarantor Credit Facility Waiver, the administrative agent and the
lenders party to the Guarantor Credit Facility waived certain defaults and events of defaults under the Guarantor Credit Facility (the "Guarantor Credit Facility Defaults"). 

        E.    The
Borrower and the Guarantor have reported to Royal that the Guarantor Credit Agreement Defaults have resulted in defaults and Event of Defaults under the Credit
Agreement. The Borrower and the Guarantor have requested Royal waive any such defaults and Events of Default. 

        NOW,
THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows: 

        1.    Defined Terms.    Unless otherwise defined herein, capitalized terms used herein shall have the meanings
assigned to them in the Credit Agreement. 

        2.    Consent.    Royal hereby confirms its consent, effective as of December 31, 2001, to the exclusion from
the calculation of Consolidated Net Income, for the period ended December 31, 2001 only, of an amount not to exceed US$10,200,000 arising from non-cash unusual charges in the
quarter ended March 31, 2001, and an amount not to exceed US$2,000,000 arising from non-cash unusual charges in the quarter ended June 30, 2001. 

        3.    Amendment to Credit Agreement.    Schedule D to the Credit Agreement is amended and restated as set forth
in Replacement Schedule D attached hereto, 

        4.    Waiver.    Royal hereby waives 

        (a)  any
default or Event of Default arising from the inaccuracies in Schedule D to the Credit Agreement which is being amended and restated by Replacement
Schedule D attached hereto pursuant to this First Amendment, and 

 

        (b)  any
default or Event of Default arising from Guarantor Creditor Facility Defaults, including, without limitation, any Event of Default under Section 8.1(1) of the
Credit Agreement and any default under Sections 7.2(h)(5) and (6) of the Credit Agreement 

(collectively
the "Existing Defaults"). 

        (c)  Nothing
contained herein shall be deemed a waiver of (or otherwise affect Royal's ability to enforce its rights and remedies as a result of) any breach or default of the
Credit Agreement other than the Existing Defaults 

        5.    Representations and Warranties.    Each of the Borrower and the Guarantor, as of the Effective Date (as defined
below), hereby represents and warrants to Royal as follows; 

        (a)  Other
than the Existing Defaults, no default or Event of Default has occurred and is continuing. 

        (b)  The
execution, delivery and performance by the Borrower and the Guarantor of this First Amendment have been duly authorized by all necessary corporate and other action
and do not and will not require any registration with, consent or approval of, notice to or action by, any Person (including any Governmental Body) in order to be effective and enforceable. The Credit
Agreement as amended by this First Amendment constitutes legal, valid and binding obligations of the Borrower and the Guarantor, enforceable against the Borrower and the Guarantor in accordance with
its respective terms, without defense, counterclaim or offset except as such enforcement may be limited by (i) applicable bankruptcy, insolvency, reorganization or other similar laws relating
to or limiting creditors' rights generally; (ii) equitable principles relating to enforceability whether enforcement is sought in a proceeding at law or in equity; and (iii) the
inability of the courts of Canada to give judgement for payment in foreign currencies. 

        (c)  After
giving effect to this First Amendment, all representations and warranties made by it contained in the Credit Agreement are true and correct as though made on and
as of the Effective Date (as defined below)(except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true and correct as of such earlier
date, and except to the extent, with respect to Section 2.21(c)(1), as specifically disclosed on Schedule 1 attached hereto). 

        (d)  It
is entering into this First Amendment on the basis of its own investigation and for its own reasons, without reliance upon Royal (except for performance of the terms
hereof applicable to Royal) or any other Person. 

        6.    Effective Date.    This First Amendment will become effective as of the date first written above (the "Effective
Date""), provided that Royal has received an original or facsimile of this First Amendment, duly executed by the Borrower and the Guarantor. 

        7.    Reservation of Rights.    Each of the Borrower and the Guarantor acknowledges and agrees that neither Royal's
forbearance in exercising its rights and remedies in connection with the Existing Defaults nor the execution and delivery by Royal of this First Amendment, shall be deemed (i) to create a
course of dealing or otherwise obligate Royal to forbear or execute similar waivers under the same or similar circumstances in the future or (ii) to waive, relinquish or impair any right of
Royal to receive any indemnity or similar payment from any Person as a result of any matter arising from or relating to the Existing Defaults. 

        8.    Miscellaneous.    

        (a)  All
terms, covenants and provisions of the Credit Agreement, after giving effect to this First Amendment, are and shall remain in full force and effect. 

2

 

        (b)  This
First Amendment shall be binding upon and inure to the benefit of the parties hereto and thereto and their respective successors and assigns. No third party
beneficiaries are intended in connection with this First Amendment. 

        (c)  This
First Amendment shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein
(without regard to principles of conflicts of laws). 

        (d)  This
First Amendment, together with the Credit Agreement, contains the entire and exclusive agreement of the parties hereto with reference to the matters discussed
herein and therein. This First Amendment supersedes all prior drafts and communications with respect thereto. This First Amendment may not be amended except in accordance with the provisions of
Section 9.2 of the Credit Agreement. 

        (e)  This
First Amendment may be executed in any number of separate counterparts, each of which, when so executed, shall be deemed an original, and all of said counterparts
taken together shall be deemed to constitute but one and the same instrument. 

        (f)    if
any term or provision of this First Amendment is deemed prohibited by or invalid under any applicable law, such provision shall be invalidated without affecting the
remaining provisions of this First Amendment or the Credit Agreement, respectively. 

        (g)  The
Borrower covenants to pay or reimburse Royal, upon demand, for all reasonable costs and expenses (including, without limitation, allocated costs of
in-house counsel) incurred in connection with the development, preparation, negotiation, execution and delivery of this First Amendment. 

[Remainder of Page Intentionally Left Blank]  

3

 

        IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this First Amendment as of the date first above written. 

	 	 	LOUISIANA-PACIFIC CANADA LTD., as the Borrower
	

 	
 	

By:	

/s/  CURTIS M. STEVENS      

	 	 	By:	Curtis M. Stevens
	 	 	Title:	EVP & CFO
	

 	
 	
LOUISIANA-PACIFIC CANADA LTD., as the Guarantor
	

 	
 	

By:	

/s/  CURTIS M. STEVENS      

	 	 	By:	Curtis M. Stevens
	 	 	Title:	EVP & CFO
	

 	
 	
ROYAL BANK OF CANADA LTD., as the Guarantor
	

 	
 	

By:	

illegible

	 	 	By:	illegible
	 	 	Title:	Managing Director

4

 
 
 

EXHIBIT A
  
    GUARANTOR CREDIT FACILITY WAIVER    
  

5

 
 
 

REPLACEMENT SCHEDULE D
  
    UNFUNDED PENSION LIABILITIES    
  

        The Guarantor sponsors the Louisiana-Pacific Corporation Retirement Account Plan. Originally this was a defined benefit pension plan covering certain hourly
employees of LP. Effective January 1, 2000, this was converted to a cash balance plan covering most non-bargained employees. As of January 1, 2002, on an ongoing basis, the
Plan has a surplus of approximately $1,000,000. As of January 1, 2002, on a plan termination basis, the Plan has an unfunded liability of approximately $29,000,000. 

        The
Guarantor sponsors the ABTco, Inc. Retirement Plan. This is a defined benefit plan covering bargained and non-bargained employees of ABTco. As of January 1,
2002, on an ongoing basis, the Plan has a surplus of approximately $1,000,000. As of January 1, 2002, on a plan termination basis, the Plan has an unfunded liability of approximately
$14,000,000. 

6

 
 
 

SCHEDULE 1    
  

        On May 4, 2002, the Company announced a program of facility sales and closures that to the extent implemented may result in a reduction under ERISA
Section 4043(c)(3) of more than 20 percent of the active participants in 2002 or 2003, or more than 25 percent of the active participants in 2002 and 2003, in either or both of
the Louisiana-Pacific Corporation Retirement Account Plan or the ABTco. Inc. Retirement Plan. 

        As
such, it would be a Reportable Event, unless the 30 day notice period has been waived under 29 CFR Section 4043.23(c)(2) or (3). It is not presently known whether either
such waiver will apply and thus it is not presently certain that either such event would be a Reportable Event under the Credit Agreement. Such participant reductions may constitute a partial
termination of either or both such Plans, in which event the affected participants must under tax qualified plan lawn be vested to the extent their benefits are funded. The Company has decided to
fully vest the affected participants who are not already vested, by Plan amendment, instead of incurring the substantial administrative expenses and uncertainties of a vesting to the extent funded
determination 

7

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WAIVER AND FIRST AMENDMENT

RECITALS

EXHIBIT A GUARANTOR CREDIT FACILITY WAIVER

REPLACEMENT SCHEDULE D UNFUNDED PENSION LIABILITIES

SCHEDULE 1

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